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MARCH 8, 2010 | Commentary by MATTHEW BROUILLETTE
Rendell’s War on (Some) Special Interests
Gov. Rendell, of course, didn't declare war on all special interests - only those who oppose his tax-borrow-and-spend agenda. For example, while he lambasts the natural gas industry for opposing yet another tax upon the several it already pays, he gives a pass to the special interests clamoring for more of its money.
MARCH 2, 2010 | Policy Points by COMMONWEALTH FOUNDATION
Pennsylvania Deficit Watch: March 2010
The Pennsylvania Department of Revenue reports that through the end of February, state General Fund revenues are $477 million below estimate for the 2009-10 fiscal year.
FEBRUARY 23, 2010 | Policy Points by COMMONWEALTH FOUNDATION
Budget Facts 2010: Pennsylvania State Budget Overview
Pennsylvania faces a projected General Fund tax revenue shortfall of at least $500 million. Governor Rendell proposed a $29 billion General Fund budget for 2010-11, that increases businesses taxes, imposes new taxes on natural gas and tobacco products, and expands the sales tax to many goods and services currently exempt. This is the f
Recent Blog Posts
MARCH 11, 2010
Need for an Independent Fiscal Office in PA?
A new Pennsylvania Independent Fiscal Office was the subject of a recent legislative hearing this week, with several lawmakers arguing the need for the office (which was included in last year's budget deal, but still requires enabling legislation).
On the other hand, the Rendell administrations says its not needed. Pennsylvania Budget Secretary Mary Soderberg says the office is unnecessary, because "there is no disagreement about the numbers". Pete Decoursey of Capitolwire makes a mockery of this statement (subscription).
What? This is a woman who is regularly, reliably $300 million or more wrong, nearly every year, on the amount of welfare spending the state does. Pennsylvania’s annual negative welfare balance, usually $300 million or more in the red, is the most regular ‘surprise’ in state government.
...During budget negotiations, her predecessor, Mike Masch, used to tell legislative leaders that he could justify whatever percentage increase of the budget they wanted, once they agreed on the overall increase in budgetary spending for the coming year.
The dollar amount wouldn’t change, neither would the actual cost of running state government. But you move a program back to last year, take another one off-budget, and presto, a 5-percent budget increase is down around 3-percent. As long as nobody paid close attention, anyway.
Besides possibly correcting bad numbers, and Independent Fiscal Office would do a number of things the administration does not do now. As pointed out in our Policy Points, the office would conduct dynamic analysis of tax proposals and their effect on the economy. The new office would also provide evaluations of programs based on their established goals and measures - not just "look at all the good I've done" press releases typically put forward by politicians.
This was the subject of a recent episode of the Tempo program on WLVT Allentown, on which I made a brief appearance (via phone).
posted by NATHAN BENEFIELD | 02:03 PM | 0 comment
MARCH 9, 2010
Will History Vanish Without State Spending?
It is an oft-disseminated lie that the government is the needed guardian of our historic sites and museums. Just as the private sector has begun to save our state parks from closing, it too can keep our treasured historic sites alive.
Last year, private donors stepped in to save the site of Washington's Crossing; this kept the re-enactment of the event alive. Boyd Theater was listed as one of America's 11 Most Endangered Historic Places until a private developer purchased and revitalized the building, turning it into part of a hotel. Dickson Tavern, one of the oldest structures in Erie, was vacant for five years until a private architecture and design company purchased the property from the city to renovate it, use it for offices to preserve its history.
As state and federal financial support continues to dwindle, it becomes more and more obvious; the future of our historic sites is not in the government. If the places are valuable to Pennsylvanians, they will be preserved without government support. Private philanthropy and admission fees can and should take the place of government funding.
posted by KATRINA CURRIE | 08:21 AM | 0 comment
FEBRUARY 26, 2010
Tax Foundation Analysis of Rendell's Tax Proposals
Joe Henchman of the Tax Foundation has put together a Fical Fact looking at Gov. Rendell's tax increases in the proposed Pennsylvania state budget. Here is the quick overview:
The budget includes significant tax proposals.
- Broaden the state sales tax and lowering the rate from 6% to 4%. The change would eliminate many unjustified exemptions but would double-tax some retail items by taxing business-to-business transactions. The largest unjustified exemptions (most groceries, clothing, legal and medical services) would remain. The change would be a net revenue increase despite the rate reduction.
- Eliminate sales tax vendor compensation.
- Reduce the corporate income tax rate from 9.99% to 8.99%, eliminate the cap on net operating loss carry-forwards, but impose combined reporting and single-sales factor apportionment. The net result of this package of positive and negative reforms would be an increase in business tax burdens, particularly for out-of-state businesses.
- Impose a new severance tax on natural gas extraction.
- Seek federal aid by increasing unemployment benefits and exploit the federal Medicaid matching fund system.
Click here for the full PDF.
posted by NATHAN BENEFIELD | 11:57 AM | 0 comment
