By Dick Miller
WE.CONNECT.DOTS: The heat wave that struck Pennsylvania this summer did not prevent Democrat Gov. Tom Wolf and the Republican-controlled legislature from doing a “snow job” on PA taxpayers.
In early July they declared work finished on the fiscal 2016-17 state budget. They needed to get back to their districts and campaign for re-election.
Action needed to fully implement the budget? They said they would get to it in September when they re-convened for a few weeks before recessing again to campaign for re-election.
For example, both sides originally insisted pension reform must precede a budget. According to experts, the state’s two large retirement funds (one for state employees and the other for public school teachers) are underfunded by $55-60 billion. This shortage has confronted state leaders since the end of Republican Tom Ridge’s performance as governor.
Promises were made each year, but nothing got settled. Huge returns in the market would substitute for state and local school districts kicking in their fair share. Those hopes became another broken promise when the market crashed in 2008-09.
Some 400 of the 500 school districts raised taxes this year. Pension assessments were about 30 percent of payrolls, up from five percent a few years ago.
Then there was the commitment (again by both sides) that this budget would not be balanced by trickery. For example, using revenue sources that would not be available on a sustaining basis going forward.
In ignorance of this promise the new fiscal budget is balanced by “borrowing” $200 million from the medical malpractice fund. Doctors are not happy with this loan. Malpractice insurance premiums will remain high and there is no provision for repayment.
There is more chicanery afoot.
Rather than increase revenues from sales and personal income taxes, your state government leaders decided to expand gambling, raise taxes on cigarettes and privatize the sale of booze. These actions are more detrimental to poor people They don’t write campaign checks and will remain victims to the government sworn to serve them.
But even those budget tactics are headed south.
State budget makers figured there was a quick $62 million to pick up from gambling sources that are now in doubt. Two more gambling licenses have yet to be issued at $50 million each. Budget makers calculated that at least one would be paid in this fiscal year.
A proposed cacino in Lawrence County blew up for financial reasons and a second casino in Philadelphia may be tied up in court over zoning restrictions for several years.
Lawmakers approved casinos serving alcoholic beverages from 2 a.m. to 6 a.m. Other states permit 24-hour drinking and gambling. In PA this feature was to be implemented by the issuance of separate licenses – at $1 million for each casino. To date, none of the 12 PA casinos has applied for such a license. Casinos say they are not looking for those kind of patrons.
Polls show a majority of voters in both major parties support privatization of liquor sales. They believe booze will be available more conveniently and at cheaper prices like in other states. But lawmakers could not agree on a complete privatization act. They couldn’t pass this reform even when Republican Tom Corbett was governor and both houses of the legislature were controlled by his party.
Through expanded wine sales at grocery stores and restaurants, lawmakers budgeted an increase of $150 million in tax revenues. Further research indicates the permitting process will slow the number of grocery stores that comply for shelf sales, slowing income to the state.
Bottom Line: Readers need to look at these situations through the eyes of a legislator.
They hold excellent part-time jobs, fat pensions paying off as early as 55 and lifetime first class health care. Special interest groups provide heaviest campaign financial support to incumbents. Lawmakers work campaign fund raising into their daily duties. Nearly every legislator holds breakfast, lunch or evening fund raisers or overpriced golf outings.
Undocumented “per diems” to cover travel expenses are paid flat rate. If you are able to group together for an apartment and lobbyists pick up your dinner and lunch checks, unspent per diems become additional income.
Two-year budgets are not in the offing because you want campaign checks from lobbyists every year. Back home, you hold health fairs and pass out government pamphlets. You know it has been decades since hometown media has monitored their legislative performances.
Legislators – as a group – rank even lower in public acceptance than either Hillary or Trump, as individual candidates. But fear not. When heat arrives, just blame other legislators.
If reincarnation exists, next outing, be a legislator.
