PA DIET PLAN: Pork-Barrel Projects Take Taxpayers to Slaughterhouse…
‘almost $3,300 in additional debt per family of four in Pennsylvania’…
GOP-Controlled Senate votes 47-2 to approve $12.9 billion in capital projects, mostly to be financed by debt…
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53 Comments
What a bunch of spineless wimps the Pennsylvania Republican Party has become. Eddie must have pictures of them in comprimising positions because he sure does own their behinds.
This is an election year “bipartisan” vote to buy the electorate. A RINO-Democrat feast of spending that according to the story can only go so far because of debt spending limits anyway.
All this spending and debt is to be expected by Democrats. That’s what Democrats do. But,,,, for the Republicans to go along with this is disgraceful. It makes me sick to see what is happening to Pennsylvania and our whole country and it’s all happening because Republican office holders have no backbone. I’m thoroughly disgusted with the Republican Party, both the National and here in Pennsylvania.
Some would say the Republicans are still the lesser of two evils but I refuse to support a party that won’t stand for their principles. Over 1 Billion Dollars peed down a rathole and before this week ends we will be hearing how there is no money for infrastructure without more taxes and fees. How much longer are the people of Pennsylvania going to stand for this giving away of money that should be used for infrastructre?
The worst part of all this is, we have our young people fighting and dying in Iraq, trying to bring those people the same type of government we have. Talk about hypocrisy!
There may be some legitimate spending in this bill(i.e., proper role for government involvement in infrastructure), but I’m guessing that very little of it should be paid for by STATE taxpayers. If it is indeed the proper roll for government to fund soccer and baseball stadiums (which it is not), then they should be funded locally, not by the whole Commonwealth.
Send notes of praise to Eich and Mike for doing the right thing.
Send balls and spines to all the rest of the GOP sell-out pigs.
This is the result of RINOs running the show. Look at the list…see where they rank on the Liberty Index. This is no surprise.
Moderates and liberals are rejoicing. These senators are the people that they work so hard to elect.
Another reason why the Republicans are going to get their a$$es handed to them in the next election.
Way to go boys. Have a nice retirement. Oh, that’s right, you will.
Who were the no votes?
I’d like to give the GOP Senate a bigger shovel – So they can dig their hole faster. They keep violating the voters trust and wonder why Republicans are turning away from the GOP. Yes, Republicans are becoming D’s to mess with the D primary, but some are leaving for good because, like me, they’ve had enough of the BS and the spinelessness. These type of people aren’t becoming D’s, they are becoming Independents and members of third parties. I’m tired of being told one thing and then the politicians go and do the exact opposite. I don’t believe them anymore and have no reason to believe them. I see no willingness to change their ways – they have become arrogant.
To everyone who is upset by the article, do something – work to unseat an incumbent. Those are the only races I work on anymore. My warning is this – you won’t be popular with the insider/establishment circles. So if popularity and being liked is more important than making change, I suggest you just keep voting for these weenies. If you’ve had enough, then learn how to effectively run a campaign, join a campaign, or run yourself if you have a reasonable shot at winning.
Eichelberger and Folmer
Gingrich, Santorum, and Norquist committed political suicide and no doubt Toomey is just about finished too. R’s are becoming D’s in droves. In the 10th, the corrupt Meuser beats Hackett and Carney is ultimately in back congress for the next 20 years, and maybe we’ll have the conservative hating John McCain if we don’t get Obama.
Hunker down and expect a rough ride the next few years!
With interest, we’ll pay almost double this estimate. The three thousand dollar hit to every family will actually take about five thousand dollars from every family.
The list of pork not only spends this, but will also add onto it the ongoing salaries of the employees whose connections with legislators will allow them to get jobs “working” at these monuments to uselessness.
Take a look at the list of pork projects in the above article. None are necessary, all are expensive, and all will have overruns of at least fifty percent, taking the cost to us even higher.
There’s even a bio-fuels plant, despite the utter waste of such faddy projects.
What’s your evidence that Toomey is “just about finished” like those other sell-out power-mongers? He’s no friend of the Establishment. Just look at his primary endorsements in PA in both state and national races.
As a common sense moderate I have been posting here for two years that the GOP will simply abuse and spend your tax dollars far worse than any other party. History and facts play that out, whether some here want to believe it or not.
Lets face it, it is the Democrats who always put the fiscal house in order after Republicans drive us into bankruptcy. How many times does this have to happen before the conservative fringe of the party realizes this reality?
This is precisely why registered Democrats increased 230,000 in just the past few months and that tens of thousands of registered Republicans are switching over as well. The Republican party is a complete mess.
You’re right PA Moderate. I’m glad Democrat Governor Rendell and the Democratic-controlled House are fighting to cut back on all this wasteful spending.
April Fools!
Link to the 297 page Bill: http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2007&sessInd=0&billBody=H&billTyp=B&billNbr=1589&pn=3496
Quick Itemization:
Public Improvements: 5.12 BILLION
Furniture and Equipment: 166 Million
Transportation Assistance: 750 Million
Redevelopment Assistance: 6.5 BILLION
Flood Control: 75 Million
Recreation: 28 Million
Environmental Stewardship: 143 Million
Forestry: 8.3 Million
General Fund 29.6 Million
Manufacturing Fund: 3.0 million
Fish and Boat Fund: 79.1 Million
Motor License Fund: 24.1 Million
I wish I had time to read this whole thing……..
these projects are merely being put on a list at this time. the list carries over from year to year and session to session. some projects, like flood control, have been on this list for years and years and gotten nothing. the real crime is that that there is no selection process or merit basis for which of these projects will actually receive funding and no list of which ones do or don’t, leaving it to the politicians to make presentations with those large photogenic checks
There are a number of primary races where a few dollars now can make a difference. Doug McLinko, Steve McDonald.
Russ Diamond…send $25 http://www.russdiamond.org I have asked about the contribution list and it is disappointing. With, at least, a 1000 viewers, I would have more of you would contribute. This is why we lose. You complain and don’t contribute strategically. Now is your chance.
I doubt very much if Meuser can beat Hackett. It sounds like this is just a wish list of yours…
It would appear that every Democrat voted for it.
And a Democrat governor will sign it.
The ones who voted against it? Yup, conservatives.
Bob, thanks for the reminder. Russ’s site works very well, and it just takes a minute to make a contribution.
If we don’t make some sacrifices to get better people in office, we can’t really complain.
Russ’s record is impeccable, and he deserves our support.
All votes and versions of the Bill available from this page:
http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2007&sind=0&body=H&type=B&BN=1589
Bob is 100% right. We need Russ Diamond in the legislature. I am planning to take a vacation day to go to his district to help on election day, and if possible, the weekend before the primary. I urge everyone here to please consider doing the same. We also need help electing real conservative state house candidates Tim Krieger in the 57th and Susanna Lisotto in the 56th districts (Westmoreland). Fortunately, neither Susanna or Tim are opposed in their primaries, but will face big government Democrats in the fall.
http://www.timkrieger.com/
http://www.lisottoforleadership.com/
Matthew
You are right about getting out and doing something to stop Rhinos and get good conservatives elected. Tim Krieger is running for the open seat in the 57th state district. (Tangretti’s old seat) He was just endorsed by Pat Toomey. Anyone interested in helping go to
http://www.timkrieger.com where you can learn about Tim then decide to volunteer to help/donate, etc. Look forward to working with many of you that can pitch in.
So, if Eich and Mike were the only “no” votes, that means “conservative” stalwarts like Piccola, Armstrong, Punt, and Pilleggi voted for it?
Where’s that big pink pig?
Most of you are like abused wives. You get dumped on time and again and again and again and complain and complain and complain….and then keep coming back to the GOP. Foolish.
As if the Democrats are an option?
No, grassroots conservatives need to get fired up and start taking back the GOP from the inside.
The grassroots republicans I know all say the republican party has deserted them. “Tax and Spend” used to be a label for liberal democrats only. While the democrats have shifted to the extreme left, republicans running things at the state and federal level have been shifting left too. But part of that problem has happened with democrats switching to republican in areas where democrats can’t get elected (RINOs). Of course all the mucky-mucks tell us we have to support the RINOs because they have “R” by their names. A conservative republican party can win elections.
Wow is right. For a group of people who like to wax authoritative about Pennsylvania government on this website, it seems that none of you actually know anything about how it works (as required by law, not politics). The Capital Budget is NOTHING like the General Fund Budget. Very little of that $12Bn will get funded, ever.
There is a very good reason why this story does not rate major coverage in the press: EVEN IF HB 1589 BECOMES LAW, IT DOES NOT PERMIT PENNSYLVANIA TO SPEND $12 BILLION.
HB 1589 merely is a Capital Budget Project Itemization Act (a version of the Capital Budget is signed into law every 18 months or two years). As a technical matter, the Capital Budget does not authorize the state to spend money (as is the case with the General Fund Budget). Instead, the Capital Budget merely confers eligibility on authorized projects to receive state funding ONLY IF the Commonwealth has enough room to issue bond debt and decides to release that funding (or a portion of it).
To receive capital funding through the RACP, a project must first be authorized in a Capital Budget Project Itemization Act (e.g., HB 1589). However, merely authorizing a project certainly does not fund it, let alone for the maximum dollar amount authorized. Additionally, if a project is listed in the Capital Budget for $10Mn, that does NOT mean the project will receive $10Mn in state funds. The $10Mn figure is a MAXIMUM amount. That project merely is eligible to receive between $0 and $10Mn in RACP funds. THE VAST MAJORITY of authorized projects receive $0, and most projects receiving RACP funding do NOT receive the maximum authorized amount.
To fund ANY of these projects, the Commonwealth must have the ability to issue enough debt to cover its contribution to the project(s). Currently, the Commonwealth’s maximum bonded indebtedness for RACP projects is $2.65Bn. The Commonwealth is at (or very close to) that maximum level of indebtedness right now. So, BEFORE funding any additional major capital projects through RACP, the Commonwealth must increase its debt ceiling by amending the Capital Facilities Debt Enabling Act. To that end, HB 2231, increasing the debt ceiling by $750Mn, has been introduced, and must be enacted before any funding is released for authorized projects. HB 2231, NOT HB 1589, is the legislation that would permit the Commonwealth the spend additional dollars on capital projects (and only the amount authorized in HB 2231). Therefore, even if the debt ceiling is increased, THE COMMONWEALTH WOULD BE PERMITTED TO INCUR ONLY AN ADDITIONAL %750 MILLION IN BOND DEBT, NOT THE $12 BILLION FIGURE.
The truth of the matter is that only a SMALL FRACTION of authorized projects actually get funded. Every version of the Capital Budget includes billions of dollars of project authorizations. That is billions of dollars in projects that never will be funded by the Commonwealth. More than %30Bn in projects are on the current authorization list. However, the state cannot fund any of these projects right now, let alone any of the additional $12Bn in HB 1589. Therefore, any claim that state spending will increase is INCREDIBLY DECEITFUL AND DEMONSTRATES A TREMENDOUS LACK OF KNOWLEDGE ABOUT HOW PENNSYLVANIA GOVERNMENT ACTUALLY OPERATES.
If you are going to criticize something, make certain you know what you are talking about. It is so sad that so many people think they are experts on state spending in Pennsylvania merely because they read newspaper articles. THAT is pathetic.
But the caPITAl budgte is a reflection of the inept fiscal management of the state as a whole. Can’t split hairs on this because they’re two sides of the same coin.
Stallone,
We know exactly what we are talking about. You miss the point entirely!
1) Many of those projects – in fact the entire RACP program – are not proper roles for state government. Yet only two Senators stood up and said “No. I cannot vote for a bill that authorizes funding (if available) to go to a soccer stadium, et. al.).
2) The RACP program is simply borrowing for corporate welfare. Do you really think that, after adding $8 billion to a “wish list” ($6.5 billion from RACP)the Senate will vote against increasing the debt limit to fund these projects, or will vote to repeal RACP program?
3) A bill that actually mandated that money be spent would be better. By creating a “wish list” legislators have basically given Governor Rendell and leadership a list of how they can be bought off. Instead of requiring spending on a project approved by legislative debate, the capital budget allows Governor Rendell to spend or withhold funds in exchange for votes on other legislation, and gives him (and the leadership) far greater leverage.
SO….in other words……..we should turn a blind eye to the stupidity contained herein simply because most of it will never be funded?!?!?!? Is that your argument?!?!?!?! Puh-lease.
Why allow even the first tentative step in the process if the proposed expenditure falls outside the legitimate function of government? Why allow the stupidity to incubate for a later day? Why postpone the fight for a later day? KILL THE STUPIDITY IN THE CRIB!!!!!
For those who are interested, HB 2231 is available here: http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2007&sessInd=0&billBody=H&billTyp=B&billNbr=2231&pn=3191
If you think that funding projects through RACP and similar programs is an ultra vires problem, get some cojones and file a taxpayer lawsuit. It is within your legal rights to do so.
Let me give you some legal advice free of charge though: you will lose in every court. Pennsylvania case law (and the case law of almost every state and the federal system) has an overabundance of unsuccessful ultra vires challenges to funding capital projects.
Is it the federal judiciary and every state judiciary that is wrong? Or could it be that perhaps you are wrong? It occurs to me that there are at least a few people in the federal judiciary, and the judicial systems of the several states, that might know a little more about constitutional law than you. Just a thought. By the way, what are the legal bona fides of those making the ultra vires argument?
Why don’t you answer Nathan’s points above?
That’s because most media outlets are just mouth-pieces for these kind of pork barrel projects; as neo-marxists they embrace the idea that government spend money on projects that should be funded by prviate enterprise.
AGREED! We need to hit the streets with our feet and aid the campaigns with cash.
Open the wallets, people!
“Possession is 9/10ths of the law.”
Anyone bent about the GOP needs to start running for local committee and state committee; start giving the hacks something to sweat about.
“Is it the federal judiciary and every state judiciary that is wrong?”
Hm. Lemme think about that for a minute.
To paraphras Slick Willie: “It’s the judges, stupid!” Why should anyone presume the judges are getting anything right? Remember Dred Scott?
LOLOLOL…….Pennsyltucky……”served” by the best Justices money can buy. Pfft.
Thanks Nathan for helping Russ out; thanks Bill Adams for sending money.
Russ will make a difference in the House; can anyone doubt that?
I wrote my local senator as well as Eich and Folmer. I also called the local talk show to complain about it on the air and educate other taxpayers about their RINO’s colluding with Rendell.
Stallone – saying it is ok to have this budget because most of it will never happen anyway sound a lot like Steve Capelli when answering why he voted to toll I-80 – because he knew it would never pass the Federal Gov.
Bottom Line – Are you for tolling I-80 or are you against it? Are you for wasteful spending or are you against it? It is not oversimplification to say that a principled persons votes reflect their views.
Stallone If this vote is for projects that won’t happen, then why did 47 Senators vote for it? Votes to nowhere?
Let me explain this like I am speaking to my 4th grader, since my first explanation apparently was over your heads.
Fact: In order to fund a project with RACP money, the project first must be authorized by inclusion in a Capital Budget.
Fact: Every Senator (including your heroes Eichelberger and Folmer) have projects located in their district included in the Capital Budget (and I’m sure they will support releasing funds for these authorized projects, as they have supported such projects recently, AND supported the distribution of CRP/WAM $ to organizations in their districts).
Fact: Senators vote to authorize projects en masse rather than on a project-by-project basis. A Senator cannot vote for only the projects in his/her district (or for project he/she believes are worthwhile) while voting against the other projects. A Senator either votes agains authorizing all projects (including his/her own) or votes for authorizing all projects.
Fact: HB 1589 merely authorizes state funding for certain projects, but it does not fund them — it does NOT spend even one dime of taxpayer money.
Fact: The Governor and the legislature must increase the debt ceiling to fund any of these projects. The projects can be funded only to the extent that the aggregate amount is equal to or less than the debt ceiling increase.
Fact: Governor Rendell wants to increase the debt ceiling by only $750Mn, NOT A PENNY MORE (and certainly not $12Bn).
Fact: If the $750Mn debt ceiling increase is approved, the Governor and the four legislative caucuses will be able to fund only $750Mn worth of authorized projects (that is only the value of the state funding of the projects – RACP requires a match of at least 1:1, so that $750Mn state investment will generate more than $1.5Bn in total project spending).
Fact: In order to fund all of the projects in HB 1589, the state would have to increase its debt ceiling by $12Bn. To fund all previously authorized projects, the state would have to increase the debt ceiling by more than $40Bn (since they will increase it by no more than $750Mn, they are more than $40Bn short of funding all projects).
The short answer to Bob Guzzardi’s question is that Senators cannot pick and choose which projects to authorize, they do it en masse.
Are you trying to make the serious argument that Pennsylvania should not provide funding assistance to ANY projects included in the Capital Budget? OK, so the state should not provide any funding assistance to any of your local hospitals…that should be great for health care costs? So Pennsylvania should not spend any money to fund capital projects that would increase port security or ther security?
That is absurd. If the state did not provide ANY capital investment, no businesses would ever locate here (I’m sure you will complain about business taxes, but most reputable non-partisan studies of the corporate world have discovered that taxes are not even close to the highest consideration in relocation and new expansion). Other states already are leaving us in the dust with respect to capital investment. If we don’t do this, we will lose population and businesses at a far faster clip than we are right now.
Certainly you can argue with my opinions, you are entitled to do that. However, do not try to argue with my explanation of the process, for it is correct (and it is not an opinion).
You should probably learn something about the Commonwealth’s process for approving projects and providing funding before you criticize it.
The arrogance and smug sense of superiority just drips off you, doesn’t it? Even if you are correct (I’m not inclined to check), your attitude makes it very difficult to bother reading your posts. A little less condescension and more politeness in explaining the intricacies of the Commonwealth budgeting process would make you less of a jerk, frankly.
Of course Piccola voted for it. He’s the Mitt Romney of the Midstate. Pork-Barrel Piccola also needs to explain his 2003 vote for Rendell’s tax hikes, or his 2001 vote for the pension hike, and more!
If you live in the 15th Senate District (most of Dauphin, part of northern York), do yourself and your wallet a favor — send a message — this November, vote for whichever Dem emerges from the primary, or at least skip that line on the ballot. Apparently Piccola had the local GOP too intimidated for someone to challenge him in the primary, but us pesky voters still have other options.
What the #$%^ are you talking about???
The Senate voted to spend taxpayer dollars on pet projects that should not be getting financed with public money – MY MONEY! Period. End of discussion.
Why are you bent on justifying that which is wrong? Is this Mike Long, or Adam Gingrich or Eric Arensen? C’mon. Come clean!
Stallone -
A few points:
1. Why don’t you tell us 4th graders the Original intent and history behind Article 8 Section 8 of the PA Constitution?
2. Why don’t we attract businesses to PA by lowering the corporate tax rate? We have one of the worst. We would generate less revenue, but we could handle less revenue if we stopped giving tax breaks and other monies to CERTAIN businesses. Then PA consumers could decide by their private spending which business should survive in PA and which can’t. I think that’s called free markets. How many businesses would be attracted to PA if we eliminated corporate taxes? Not the few that Harrisburg finances but the many that consumers finance.
3. In response to the argument that if we don’t subsidize them then businesses will go to the states that give them the most money – so be it! If the taxpayers of OH and NJ and NY and WV don’t resist being raped by their governments for Fascist government/business interest, that is their choice. At least Pennsylvanians will still have free markets.
Stallone, thank you for your thoughtful posts. The difference between you and those of us who disagree is not the immediate fundability of these projects within current budget constraints, but the fact that all spending for any project begins with having that project put on a wish list for which spending is desirable.
Seeing the endless list gives us an idea of the vast amount of both debt and taxation necessary to put these projects into effect.
That is a good thing, because it lets us clearly see the fevered fervor of the ravenous appetite that seeks to devour us.
An historical analogy: When Napoleon was unleased upon the world to fund the French Revolution by looting the rest of Europe, the Italians knew he was coming, and had time to hide at least some of their valuables.
Thank you Stallone for your insight into the debt ceiling issue…….
This I believe, is the crux of why the Governor so desperately wants to lease the PA Turnpike.
Correct me if I’m wrong, Stallone, but borrowing against future tolls by issuing BONDS would be open, transparent, and subject to the debt ceiling, correct?
Borrowing via a “lease”….a silk slip-cover used to obscure the true nature of the transaction…….hides the cost of the borrowing AND evades the debt ceiling, correct?
CG,
Good observation as an accoutant.
Is this is the kind of accounting shellgames that Enron had before they went belly up?
Bean counting and tormenting the comfortable…..my calling in life.
The Enron debacle grew out of tax avoidance motives. Once they started down the path to hiding things…..well, it kinda grew.
And the notion that tax rates do not impact business decisions is absurd. Professor Mihir Desai of the Harvard Business School has written several papers on the subject. “The Demand for Tax Haven Operations” is but one:
http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID690821_code57621.pdf?abstractid=593546&mirid=1
EXCELLENT paper on the lease question here:
http://www.fhwa.dot.gov/PPP/fhwa_publicworks_financing_0906.pdf
Selected quotes:
“We shall all consider ourselves unauthorized
to saddle posterity with our debts, and morally obligated
to pay them ourselves within what may be
deemed to be the period of a generation”—Thomas
Jefferson.
“…And the major related question:
is interstate commerce being taxed to serve more
local intra-state investment needs? Challenges have
been raised in the past to these kinds of arrangements
on just such constitutional grounds….”
“…John Schmidt puts the point nicely (on p. 9):
“One of the things that happens in a privatization
transaction is a shift of control to a non-political
entity that is capable of behaving over time in an
economically rational manner—and that opens up
financial possibilities that depend on the financial
markets’ recognition of that reality.”…” [I find this absurd. We should EXPECT our elected representatives to act in accordance with ECONOMIC REALITY. But....they've made their living telling everyone they can expect a free lunch, so I guess this is too much to ask.]
“The question for public policy makers is whether
ceding control of toll road assets to the private sector
for extremely long periods of time is in the best
interest of the public sector or should the public
sector seek to raise capital on its own.”
“…The expected increase in toll rates is the primary
driver in establishing value, not the expected
growth in traffic. Thus the buyer heavily discounts
traffic growth in their pricing model and
establishes a cushion that allows them to reduce
risk and earn outsize returns on equity when traffic
growth comes to fruition. It is important to
note that variable operating expenses are a very
small portion of overall costs.
3. Turning control of toll roads over to the private
sector deprives the public transportation funding
network of very large and much needed
future revenues to pay for capital projects both
on and off the toll road. Instead these revenues
are directed to private corporate profits and
shareholders. If road users are willing to pay
higher tolls why not capture those funds for the
public good. Use of bridge and tunnel tolls by the
Port Authority of New York and New Jersey for
mass transit and port operations is one example
of how this can be achieved.
4. Projected returns on equity in the Chicago
Skyway transaction are extremely high as a
result of the toll increase regime, the limited capital
requirements and the highly leveraged
nature of this transaction. Like any innovative
transactions there is always additional profit
potential in something unproven and this transaction
follows that trend….”
“…7. A hidden cost of the privatization approach is the
increased cost of future capital improvements at
either higher taxable borrowing rates or equity
return rates. This will increase the financing cost
of future capital expenditures by at least 60%
over the tax exempt rates available to a publicly
owned toll road.
In conclusion, the Chicago Skyway transaction
has opened the door to new funding structure
for transportation by monetizing future
cash flows based largely upon known increases
in toll rate user charges. The question for
the public sector is:
Should the public sector capture the excess revenues
generated for public transportation purposes, or
should they allow the private sector to capture those
revenues?…”
CG, we cannot think of you as you describe yourself, “tormenting the comfortable”. I see it more like “comforting the tormented”.
Thank you, Bill. Heaven knows I try to cut through the smoke and mirrors to expose the realities. I’ve had an epiphany with respect to the lease…..or I’m missing a piece of information. I’ll send you an e-mail.
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$13 Billion capital budget flies under radar…
The $12.7 billion in borrowing for the state Capital Budget has become a hot topic on GrassrootsPA. Otherwise, it has merited a blurb in the Patriot News, and a Capitolwire story for insiders….