Showing posts with label per diem. Show all posts
Showing posts with label per diem. Show all posts

Saturday, February 27, 2010

Toohil Goes After Eachus On Per Diem Scam

In yesterday's Standard Speaker an article appeared by Jim Dino where Tara Toohil, announced candidate for Pennsylvania's 116th legislative district, takes on Todd Eachus over the statewide abuse of per diems paid to legislators.

Certain legislators including Eachus are using their own rules which they pass to justify a practice as "legal" to collect per diem payments even though they don't have to produce receipts for any expenses. In turn those payments which are meant to reimburse for food and lodging appear to subsidize, tax-free, the purchase of second and third homes in Harrisburg for legislators. There is no question that per diems on a national level were meant to reimburse employees for expenses they incur, not mortgage payments they want to make.

Here's what House Rule 14 states in part:

A member who attends a duly called meeting of a standing or special committee of which he or she is a member when the House is not in session or who is summoned to the State Capitol or elsewhere by the Speaker, or the Majority or Minority Leader of the House, to perform legislative services when the House is not in session shall be reimbursed per day for each day of service, plus mileage to and from the member's residence, at such rates as are established from time to time by the Committee on Rules but not in excess of the applicable maximum mileage rate authorized by the Federal Government.

An employee of the House summoned by the Speaker or the Majority or Minority Leader of the House to perform legislative services outside of Harrisburg shall be reimbursed for actual expenses and mileage to and from the employee's residence. Such expenses may be paid by the Speaker, Majority or Minority Leader, if they agree to do so, or shall be paid by the Chief Clerk from appropriation accounts under the Chief Clerk's exclusive control and jurisdiction, upon a written request approved by the Speaker, or the Majority or the Minority Leader. District office employees are only permitted to be reimbursed from an account under the control of the Chief Clerk when traveling to Harrisburg for a training program sponsored by either caucus or for travel to a legislative conference approved by the Speaker, the Majority Leader or the Minority Leader. All other travel by district office employees may be reimbursed from the member's accountable expenses or an account under the control of the Speaker, the Majority Leader or the Minority Leader.


Basically the employees of the Commonwealth must abide by the same rules private industry establishes for employee expenses but their bosses chose to make their regulations circumvent the true intent of per diems.

"This abuse of the system is another reason why I'm running for office," Tarah Toohil, Eachus' likely GOP opponent in the November general election, said in a statement this week. "It is wrong for Todd Eachus to collect per diem money while owning a home in Harrisburg. It is wrong for him to use per diems to pay his mortgage and make a property investment for himself. This money must be repaid to the taxpayers."

After addressing a Greater Hazleton Chamber of Commerce contingent Thursday, Eachus defended his actions, and criticized Toohil for what he called a negative campaign.

"I've filed all of the information required by the Internal Revenue Service," Eachus said. "Everything has been done to the letter of the law in the 14 years I've been a state representative.

"I'm hoping not all of this campaign will be mudslinging," he continued. "Who this young attorney is, to me, is unclear. But so far, this campaign has been negative. I'm hoping in this campaign, she can focus on the real issues, like what she proposes to do about jobs, health care, and access to health care for seniors, not just a negative campaign. People are sick of the negativity."


Mudsling to one person is accountablity to another. The issue of unaccountable per diems is not a negative campaign. It is highlighting the need for more government reform.

Here's what Todd Eachus had to say in a story by Robert Swift back in November, 2009 about the per diems he racked up during the budget debacle.

Eachus pointed out that lawmakers - unlike the governor - don't have a taxpayer-funded residence to stay in when they are in Harrisburg.


"These (per diems) are real expenses," he added. "It's a federally allowable expense. Many people think it's income, but it's not.

Well, Todd, who is funding your home in Harrisburg that you paid for with per diem money? If they are real expenses please provide the taxpayers with receipts for the lodging and the meals you claim are real.

Per diems are meant to reimburse for actual expenses. Legislators are treated to meals by lobbyists where no need for reimbursement can be justified in most people's minds. According to the Bureau of State Employment nearly 80,000 people are employed by Pennsylvania government. It's a shame that 253 of them want to abide by a different rule than the rest.

To Eachus's claims of negative campaigning legislators in Alaska are facing the same tough questions regarding per diems.

Hard-working House Speaker Mike Chenault, R-Nikiski, led all legislators last year in collecting out-of-session per diem, an extra pay boost that lawmakers get while working on legislative business when not in session.

Empire calculations from Legislative Affairs Agency data show that Chenault was paid $89,250 last year for serving as a legislator, tops among his peers.

Among the factors that go into total pay are last year's official salary of $24,012 for most legislators, per diem paid during the session of $189 a day for most legislators, and per diem paid for days worked outside session of $150. Some legislators, such as Chenault, took their office expense accounts as salary as well.

That brought average legislator pay last year to $65,400.


NOTE: In Pennsylvania the House Speaker made $122,254.00 this year and legislators are paid $78,315.00 this year as a base salary plus all the perks and benefits.

Mr. Eachus is so quick to call for public hearings. Why doesnt' he call one on the per diem issue? Or better yet look at what happened in Massachusetts over legislative per diems.

Legislators to file per diems as taxes
By Bob Katzen/Beacon Hill Roll Call
GHS
Posted Oct 05, 2009 @ 01:17 AM

Beacon Hill Roll Call has learned that for at least several decades, the W2 tax forms received by thousands of former and current legislators have not included millions of dollars in state money used to pay per diems to these legislators.

This all changed when the state and the IRS hammered out an agreement that beginning in 2008, the state would include the per diem income on legislators' W2 forms. The state went further and in 2009 began withholding taxes each pay period on the per diems just as it does on legislators' regular income. The agreement did not include going back to any prior years in which a legislator might not have paid any state or federal taxes on the per diems.

Defenders of the per diem agreement with the IRS say that the snafu was the fault of the state and not of individual legislators. They argue that many legislators have diligently paid taxes on their per diems for the past several decades. They say that the state should not go on a witch hunt and start tracking down the tax returns of thousands of legislators to see who, if anyone, did not paid taxes on the money.

Barbara Anderson, executive director of Citizens for Limited Taxation has a different idea. She said, "As so many of these tax-avoiders like to tell us, taxes are the price we pay for civilization. Those who did not declare the per diems as income and who did not pay taxes on it should estimate what they owe the IRS and the state, and pay it."


Mr. Eachus & Company should be thankful they don't work for the state of Missouri.

Sen. Kurt Schaefer, R-Columbia, has proposed freezing the expense allowances of state legislators for two years, although state law would give them an 18 percent raise.

The daily allowance is used to cover lodging and meals in the capital and equals 80 percent of the federal per diem for Jefferson City.

In an interview, Schaefer reprimanded federal officials for accepting increases in their daily allowances while many Americans are losing jobs.

“In dealing with an extremely tight budget at a time when there are so many people who have lost their jobs or have the threat of losing their jobs, it’s inappropriate at this time to take an automatic increase,” Schaefer said.

Schaefer said he drafted the bill as a signal that legislators are serious about tightening the state’s budget. With the federal per diem increase, Missouri’s lawmakers will receive $103.20 each day they are in session, on top of their base salary of $35,915 a year.

If the bill becomes law, per diem would remain at $87.20 per day, the same amount legislators received during the 2009 legislative session.


Mr. Eachus and Company should be thankful Pennsylvania isn't Tennessee.

Lawmakers have claimed more than $1 million in daily pay for their work during the first half of 2009 — over and above their $19,009 annual salary — and with the decline in state tax receipts, some are calling on Tennessee's 132 senators and representatives to curb expenses.

In just the first three months of the year, state representatives collected an average of $6,300 in daily payments for their work. Over that same period, senators received roughly the same amount, plus $8,200 in the second quarter, records show. House records for the second quarter are to be released soon.

These "per diem" payments, purportedly for expenses such as hotel rooms, food and other incidentals, serve as a backdoor salary for legislators who are supposed to work only part time, critics say. This is especially true for Nashville-area lawmakers, who often spend the night at home.


Pennsylvania Legislators= $78,315.00
Massachusetts Legislators= $65,400
Missouri Legislators= $35,915.00
Alaska Legislators= $24,012.00
Tennessee Legislators= $19,009.00

Todd, about that public hearing???

Monday, February 22, 2010

Per Diems- Legislators Abuse The System And Flaunt It

If any Pennsylvania legislator wanted to peer into the future read the comments posted at this Times Tribune atricle concerning their use of per diem payments to fund second home purchases in Harrisburg. This issue portends to be a hot topic this election season.

Here is an article that appeared in the Tribune Democrat highlighting the fact that Senator John Wozniak received almost $38,000.00 in per diem payments from January, 2008 through October, 2009. He received that amount on top of his $78,314.00 salary. It is amazing that any legislator can receive that amount of money without a requirement to produce ONE receipt. As the article points out there are no checks and balances.

In this Opinion from The Mercury of Pottstown the editor makes a point that our legislators can collect the per diem for any "day" they are in Harrisburg on state business — even if that "day" is one minute within the city limits. And they can claim "reimbursement" even though they don't need to produce receipts. If they say they paid for breakfast, they get reimbursed for breakfast — even if some lobbyist actually paid for breakfast. They can attend lobbyist receptions at night and never spend a dime on dinner but get reimbursed.

It appears Harrisburg is a free for all money grab as far as our legislators are concerned. Legislators claim their practices are legal. However, what is the impact to the state?

If the legislators were required to rent a hotel room and purchase meals which is what a true per diem is meant to reimburse how many jobs would be saved? The front desk clerk, the cleaning lady, the linen service, the coffee service, the grounds maintenance, the building maintenance, the chef, the waiter or waitress, the bus boy, the food vendor personnel, the kitchen equipment personnel- all depend on the room bookings and restaurant operations.

Instead legislators are trying to tell us it is okay for them to receive an unaccountable per diem, purchase a second home with the money, rent it out to fellow legislators, sell the home and make a profit that only benefits one person. Talk about abuse of the system.

As far as what the $158 per diem rate can purchase read this editorial by Chris Kelly of the Times-Tribune from last year. At least some homeless and families who are struggling benefited unlike our carnivorous legislators who wine and dine on only the finest.

Ohh,,,lest we forget..the legislators received the per diem the whole time they didn't pass a budget..I mean didn't do their job. During the budget impasse lawmakers racked up $532,000.00 in per diem payments according to the Tribune Review....in just the months of July and August. The payments to legislators during the budget impasse "make me sick," said Judy Kandel, 67, a Canonsburg retiree.

"I think since they are getting their pay, they don't give a hoot. They're looking out for themselves, not the people," she said.

Brett Marcy is great on putting spin on this issue for Todd Eachus.

"I never take them," said Sen. Kim Ward, R-Hempfield, who said she claims actual reimbursement for a $62 hotel room and mileage but no meals.

"I ran on a platform of accountability and being careful with tax dollars," Ward said. "I wanted to live up to those words. Don't let anyone kid you; you don't have to buy a meal in Harrisburg."

Brett Marcy, a spokesman for Eachus, defended the payments as a cost of getting the budget done.

"These have been difficult times for all Pennsylvanians, but Rep. Eachus and House Democrats refuse to give up until the commonwealth has a fiscally responsible budget that remembers those who need help the most," Marcy said. "We're happy to report that we're very close to finalizing that budget. The per diems were reimbursements for expenses incurred during the course of that work."

It never dawned on Mr. Marcy that if they didn't receive the reimbursements maybe that would have reached their epiphany on the budget sooner. BTW, Brett, the ones who needed it most were the homeless and struggling families, just in case you forgot them.


A similar practice is occuring out west in California so it isn't just our legislators who lost touch.

As Natahan Benefield suggests over at Commomwealth Foundation why doesn't the state build a dormitory for lawmakers?

Thursday, December 3, 2009

Todd Eachus-Why Do You Need A Per Diem When You Own A Home In Harrisburg?

According to Dauphin County Courthouse records located in the Recorder of Deeds office Todd Eachus and his wife, Ellen, purchased a home at 225 South Street in Harrisburg on August 30, 2005 from Anthony DiSanto. The records also indicate that they took out a mortgage from Wachovia Mortgage Company on the property for $100,000.00.

The interesting part is that according to records located in Luzerne County Eachus and his wife took out a mortgage with Pinnacle Residential Mortgage, Inc. a little over one year previous on April 8, 2004 for $136,600.00. It appears that this instrument may have been a refinance of their home located in Wyeth Place, Drums.

The Eachuses took out a mortgage on their home located at Wyeth Place on April 5, 2001 for $138,500.00 with Principal Residential Mortgage, Inc.
Previous records indicate that they satisfied a mortgage with Atlantic Financial Federal that was eventually assigned to Principal Residential Mortgage on July 31, 2001. Eachuses originally borrowed $156,900.00 on June 16, 1989 when they purchased their home at Wyeth Place for $189, 900.00.

A research of Pennsylvania legislator salaries indicate that Todd Eachus's base salary was $66,203 for 2004 and $69,647.00 for 2005.

Latest property reassessment figures for Luzerne County show that the Eachus property in Wyeth Place has a total tax liability of $3,660.00 per year.

Usually a per diem is a sum of money given to an employee to cover daily expenses associated with one's job by the employer. It is given for lodging, meals, and other expenses incurred while traveling.

Since Mr. Eachus has chosen to purchase a "Second Home" as defined in his mortgage on file in Dauphin County one has to wonder whether the travel expense is justified. Most companies pay per diem based on actual expenses incurred. But not our legislators in Pennsylvania.

Brad Bumsted of the Pittsburgh Tribune-Review wrote a great article last December titled "Probing the per diem scam". The NewsItem.com published an Opinion back in September called 'Per-diem' payments should require proof'. As highlighted in the opinion legislators are paid the per diem whether they incur actually any expenses or not.

It would seem to SightsOnPennsylvania that if Mr. Eachus has the wherewithall to purchase a second home he should get off the backs of Pennsylvania taxpayers and forgo the per diem payments. The Newsitem opinion points out that Harrisburg legislators are not entitled to per diem. Since Mr. Eachus made a declaration on his Dauphin County mortgage of a "Second Home" rider it seems he should not be entitled to per diem. A home is a home is it not?

Per diems include expenses for lodging and meals. Since Mr. Eachus already has lodging then the per diem must be for meals. At a rate of $163.00 per day that would seem to be alot for food for one person. If that is not the case then is the per diem being misappropriated to pay for a second home? Are Pennsylvania legislators using per diems to purchase property and thus raise their net worth?

Mr. Eachus has made the assertion that lawmakers ought to be compensated for their time in Harrisburg. Great point. Todd, that is why you get paid your $113,000.00 salary. Mr. Eachus claims that the per diems are not income. Well, Todd, if you take more that you actually incurred what would you call that?

Evidently taxpayers are paying enough for legislators to financially fund the purchase of two homes and their associated expenses including heat, light, electricity, cable, insurance, property taxes, mortgage payments, etc. I wonder how those taxpayers feel who lost their homes this past year. Todd, those may be real expenses but there are those who suffered a real tragedy. Keep reminding us why we need to rid Harrisburg of the "stinkin thinkin".

I've got to pick out whats in the pocket So I can leave these pockets clean ....An' I know how your mind works Open your eyes and watch the roadworks Come on out It cant get much worse.

Wednesday, September 30, 2009

The Body Politic



The body politic by John Cole

The on-going budget stalemate in Harrisburg highlights the power wielded by the four party caucuses that run the show in the state legislature. Operating on their own terms, accountable to almost no one but their own leaderships and broaching no dissent from junior members, they consume millions in tax dollars and produce little in return.

Legislators Rack Up $532,000 In Per Diem Bonuses While Failing To Pass A Budget

Here is the latest legal scam of taxpayer money. Brad Bumsted at the Pittsuburgh Tribune-Reivew highlights the per diems paid to state legislators as they continue to fail in their duties to pass a state budget.

During July and August, the first two months of the state's budget impasse, lawmakers in the House and Senate collected $532,585 in per diems for food and lodging payments, records show.

Records filed with the House comptroller and Senate chief clerk show 107 Democrats and 74 Republicans collected per diems in July and August. The $158 daily allowance — a flat payment for which legislators don't need receipts — is part of the cost to taxpayers for the unresolved budget that was due July 1.

The taxpayers' costs for per diems would not be incurred if a budget was completed by June 30, as required by law. In the past, the Legislature recessed for 2 1/2 months, starting on or about July 1. They have approved budgets late for the seven years under Gov. Ed Rendell, resulting in some July per diems. But the costs during this budget impasse are the highest since at least the 1970s.

The payments to legislators during the budget impasse "make me sick," said Judy Kandel, 67, a Canonsburg retiree.

"I think since they are getting their pay, they don't give a hoot. They're looking out for themselves, not the people," she said.
The House records cover per diems submitted as of Sept. 8; the Senate records, through Aug. 31. Not all legislators claimed their per diems for the two-month period.

But based on available records, Democratic Reps. John Galloway of Bucks County and Ron Waters of Philadelphia collected the most — $7,426 for 47 per diems.

Galloway claimed 30 per diems for days when the House was not in session.

"I thought it was important to be in Harrisburg while this was going on," Galloway said. "I got a lot of questions from people, 'Why aren't you in Harrisburg working on the budget?' "

Waters did not return phone calls or e-mails seeking comment.


The top 3 in the House stack up this way:
Waters, Ron D Philadelphia $7,426
Galloway, John D Bucks $7,426
Eachus, Todd D Luzerne $7,010

As opposed to the bottom three:
Sturla, Mike D Lancaster $720
Pallone, John D New Kensington $474
Saylor, Stan R York $109

Here's a link to SOP's column about collecting per diems while generating significant catering bills. Lobbyists take legislators out to dinner while they are collecting per diems. State employees for the Attorney General must provide receipts to collect their per diem. Legislators are not under the same requirements.

Speaking of questionable ethics. Here is a link to the House Ethics Committee. Click around, they do NOTHING.

Sunday, September 20, 2009

Per Diem, I Just Came To Get My Per Diem

At a time when a budget deal is announced in Harrisburg you have people like Brad Bumsted over at the Pittsburgh Tribune-Review highlighting legislative excesses costing taxpayers big time. In this article he chronicles the catering bills paid for our legislators while they collect their per diem, an allowance part of which is to pay for meals. It's not only double dipping but it demonstrates the audacity of our legislators to lavish themselves while people are losing their jobs or going without health insurance.

Try $680 at Papa John's on March 10, 2008.

That same day, the House spent $4,612 on food from Zia's catering.

They spread the pizza purchases around.

On March 17, 2008, the House spent:

• $160 at Monte Carlo's Pizza

• $1,351 at Brother's Pizza

• $690 at Papa John's

• and $936 at Mama's Pizza, according to House records.

That's $3,137 worth of pizza -- in one day.

At an average, say, of $12 per pizza, that's 261 pies.

For opening-day ceremonies on Jan. 1, 2007, the catering tab was $15,000 from Our Daily Bread in Harrisburg. Of course, a lot of family and friends were fed that day as well.

Catering from Cantone's restaurant in July 2007 was $9,750.

Zia's catering was paid $5,150 on July 16 of that year.

The cost of per diems for the House then was about $29,000 per day.

During the 2008 budget impasse (very short by this year's standards), the House fed lawmakers on June 29 and 30, and July 2, 3 and 4.

On June 29, there were catering tabs for $6,175 from C & J Catering and $6,964 from Zia's.

That was $13, 319, or $65 per member.

Staffers undoubtedly take their share, so the per-member figure probably was a lot less.

On July 4, 2008, the House splurged -- if that's possible.

Because lawmakers had to work on Independence Day, they pulled out all stops with a $20,550 tab from Premier Catering. There are part-time workers in the commonwealth who would like to make that much in a year.

It's double dipping, pure and simple.

On many other days when they receive per diems now worth $158, lawmakers eat on the lobbyists' dime.

Very few if any legislators reduce per diems because they're getting free chow.

The House comptroller has said that if lawmakers eat meals provided by the chief clerk, they don't have to deduct that from their per diems. If they eat out, they are supposed to do so.

Lawmakers who eat free are pocketing lots of money.

On former Rep. Frank LaGrotta's blog (lagrottablog.blogspot.com), the Lawrence County Democrat recently recalled a song sung regularly by former Rep. Gerard Kosinski, a Philadelphia Democrat, whenever the House took the master roll call, to the tune of "Maria" from "West Side Story":

Per diem,

I just got another per diem.

For coming to the floor.

And doing nothing more,

All day ...

Per diem ...

My goal is to save my per diem.

To eat and drink all day,

While lobbyists, they pay,

For me ...