2011- A Look Back And What's Ahead, Hold Onto Your Wallet

John Cole Times-Tribune Toon

It seems Pennsylvania government can't run from the "pay raise" issue. In 2005 legislators tried to ram through a "pay grab" mistakenly labeled a pay raise. As Pennsylvanians are learning once again legislators already receive an automatic pay increase every year authorized in a 1995 law.

The problem with the automatic pay increase is the index used for its calculation. Instead of the overall Consumer Price Index used for most in private industry and seniors receving Social Security Pennsylvania legislators figured out that the CPI for mid-Atlantic states runs slightly higher. As a result their automatic pay increases since 2003 gave them an additional 10% boost more than if the overall CPI were the benchmark.

In these trying economic times and a bloated, over-staffed state, Pennsylvania lawmakers should reject the pay increase until they resolve the budget deficit and pension crisis issues. As this article by Jan Murphy at PennLive.com points out the costs to Pennsylvanians over the "pension grab of 2001" will escalate due to recent legislation designed to lessen the impact.

The law is aimed at addressing the soaring costs of the state's public pensions systems. Here's a look at what it means: TAXPAYERS: It smooths out the anticipated spike in taxpayer contributions to fund the pension systems. But it costs taxpayers more in the long run. It is akin to refinancing a 15-year mortgage to a 30-year mortgage, which makes the monthly payments smaller but the overall amount paid bigger.

Critics such as the Commonwealth Foundation assail the added debt and say it doesn't address the looming crisis. Supporters say the new law is nonetheless a good start by saving costs on new workers. NEW EMPLOYEES: They now must have 10 years of service to become vested, compared with five for current employees. State employees must work until age 65 (instead of 60); school employees must work until 62 (instead of 60).

New workers receive a 25 percent reduction in retirement benefits. They also are barred from taking a lump-sum payment of their contributions upon retiring. CURRENT EMPLOYEES: These changes do not impact any school or state employees hired before Jan. 1 or incumbent lawmakers. Their benefits remain the same.

As Senator Lisa Boscola points out in her February, 2005 flyer Pennsylvanians have faced the following tax increases since 1997.

• 1995 Automatic Pay Raise
• 1997 Gas Tax Increase
• 2001 Legislative Pension Grab
• 2002 State Tax Increase
• 2003 State Income Tax Increase
• 2004 Occupational Privilege Tax Increase

The tax increases don't include what happened on the county and local level as well as our school district property taxes. In 2002 a COLA was added to the pension benefits as well.

The following stats are from the Berks Patriot Presentation by Nathan Benefield of the Commonwealth Foundation.

Pennsylvania has the 11th highest state and local tax burden, up from 24th in 1990. It is 43rd in job growth, 47th in population growth, and 48th in personal income growth.

People are moving out of Pennsylvania due to this horrendous environment. United Van lines reports 58% of movers are leaving Pennsylvania and Allied Van Lines reports that number at 60%.

As the American Conservative points out Pennsylvania has the highest Corporate Net Income Tax rate in the world.

The Commonwealth Foundation reminds us of the unemployment trust fund debt facing Pennsylvania taxpayers to the tune of $3 billion. Pennsylvanians will also be faced with paying back $800 million to the MCare fund due to a court order.

When the stimulus money runs out in 2011 Pennsylvania's bicameral legislature and Governor Tom Corbett will have a daunting task facing them to fix what is wrong.

Tara Toohil Thinks State Government Is "Broken"

Standard Speaker veteran reporter Mia Light informs her readers about election issues Tarah Toohil feels are the important points of her campaign for State Representative in the 116th district.

"I think the government is broken. I think it has gone so far afield from the way that government was intended to be," Toohil said during a meeting with the Standard-Speaker editorial board recently.

"(The issue of) property taxes is huge."

"People are still so upset about the gambling money. People remember that last year's state budget hinged on that gambling money and senior citizens remember that they were supposed to get a tax break with that money."

She is in favor of term limits. And she believes fiscal responsibility begins with trimming a lot of the government's own fat.

"Government was supposed to have representatives that are just like everyone else in the community. They weren't supposed to be career politicians."

"The legislature we have now, they're always serving themselves with perks and per diems that are out of control to the point of becoming like an additional salary. That's the biggest problem with the legislature. Rather than being an honor and a privilege to serve their community, they feel we should pay them with excessive perks and pensions."

She believes elected officials should liken themselves to the British House of Commons. "The House of Representatives was supposed to be like in the British Parliamentary System, the House of Commons."

Most people aren't familiar with the British system but here are some highlights. Click on this link to see the expense reporting requirements for Members of Parliament(MPs).

Members of Parliament ARE REQUIRED to list ALL their expenses unlike PA legislators and they are published on a free website for public review. Travel costs, stationery and postage costs, details of catering functions and events hosted by Members, repayments made against all claim types, and net totals, reflecting the repayments made against the original claims are searchable on the net for the public's curiosity and right to know. THERE ARE NO PER DIEMS.

In June 2009 more than a million documents and receipts were published online. These related to MPs' claims dating back to 2004/05 and up to 2007/08.

In December 2009 these pages were updated to include information about MPs' claims for costs incurred when staying away from their main home in 2008/09 and the first quarter of 2009/10.

Parliament publishes
"The Green Book" which serves as a guide to MP allowances. Pennsylvania legislators have a $10,000 no receipt expense account, free health care, fully paid vision and dental coverage, free prescriptions, fully paid life insurance and long-term care insurance, and the 50% increase in pension benefits the legislators awarded themselves nine years ago.

In order to see what expenses are reimbursed to Pennsylvania legislators you must submit a right to know request. In Britain all you have to do is boot up your computer and have at it.

If Pennsylvania legislators were truly interested in reform quick adoption of this reporting system would be a start.

One other piece of information. In 2009 Members of Parliament were paid the equivalent of $103,918.00(The current annual salary for an MP is £65,738). Keep in mind that is to run a country. They must account for all of the public funds they spend.

Todd Eachus's salary is over $115,000 and Paul Kanjorski's salary is $175,000 plus. Why voters keep returning them to office is beyond me.