Pennsylvania- Maybe Government Needs To Go On A Diet

Three days ago the Pittsburgh Tribune published this article about tax revenue by Thomas Olson.

Pennsylvania tax revenue increases 6.2% over last year

If Pennsylvania's tax collections are any guide, the state's economy is starting to pull out of its recessionary slump, according to experts in Harrisburg.

Overall tax receipts from individuals and companies in Pennsylvania for the fiscal year ended June 30 increased 6.2 percent to nearly $26.5 billion, according to the state Department of Revenue. And taxes of $194 million collected in July and August, the first two months of the current fiscal year, were 5.9 percent ahead of last year's pace.

Today the Times Leader features this article.

Pa. state tax revenues lag expectations by $215M


HARRISBURG, Pa. (AP) — Pennsylvania tax collections are lagging $215 million behind projections after the first three months of the state government's fiscal year.

State Revenue Secretary Daniel Meuser announced Monday the state general fund brought in $5.8 billion from the start of July through the end of September. That's 3.5 percent below expectations.

September collections were $152 million less than had been estimated. Major categories contributing to the shortfall are corporate and personal income taxes.

However, taxes on liquor, cigarettes and table games are running ahead of expectations.

What a beautiful dysfunctional state.  Jobs and sales of goods aren't leading us out of the recession.  The vices are.  They should just legalize prostitution and get it over with.

Maybe this is what they mean by tolling 80!!!

To WAM or Not To WAM - My Dear Watson

To WAM or Not to WAM in Pa. Budget by KYW's Tony Romeo

Pennsylvania Lawmakers haggle over pet projects in stalled budget negotiations. So much for Monty Hall's Lets Make a Deal.

A spokesman for the Senate Republican leader insists there will be no WAMS in this tight budget year. But Tim Potts, co-founder of the good Pennsylvania government group “Democracy Rising,” says he believes there is probably more than $100 million tucked away for WAMS:

“The problem is that there’s never been an accurate accounting for WAMS. They’re never told us where they are, how much they are, what the process is used to get them.”

Keep in mind that the tax on arts, music, and theatre is meant to bring in $120 million. Guess they will be funding the WAMS if they are in the budget.

Here's what happens when government geniuses pick on an industry and depend on its tax revenue. Hotel Taxes Down In Lancaster

Fast Eddy Rendell's battlecry was that revenue projections were phony. In a tight state budget how does Rendell justify offering a job to the soon to be ex-mayor of Harrisburg? Tony Phyrillas previously reported that Rendell hired 110 employees, many high salaried where the pay is at least $100,000.00, on his own after he announced a hiring freeze. I guess the state budget crisis and revenue projections affect everyone except Rendell.

Let's finish up with John Baers' column in the Philadephia News that takes a semi-satirical look at the confusion over what is and what is not in the current proposed Pennsylvania State Budget.

WITH A $28 billion seemingly shaky budget deal now being explained to the rank-and-file lawmakers whose votes are needed to enact it, here's a peek at how that process might be moving along.

Picture closed meetings: many lawmakers, a few legislative leaders.

LEADER: OK, you've all seen or heard some details. Questions?

LAWMAKER #1: Yeah, explain why we should vote for $700 million in new taxes if there's a $450 million surplus in here and another $100 million in WAMs.

LEADER: We need, um, a cushion for next year. And it's probably best not to mention cushions or WAMs in your next taxpayer-financed constituent newsletter home.

LAWMAKER #2: Why are we canceling the scheduled cut in the Capital Stock and Franchise Tax for business given that the national, nonpartisan and venerable Tax Foundation just reported our ranking among states "best for business" has slipped from 22nd in 2006 to 27th now.

LEADER: Well 27th is like halfway to best, right? Next question.

LAWMAKER #3: What's the reasoning behind a new 25-cent tax on cigarettes and little cigars that look like cigarettes, but at the same time we remain the only state not taxing real cigars and chewing tobacco?

LEADER: Perhaps you are unaware of U.S. Department of Agriculture forecasts released Sept. 1 saying our state, our people, our constituents will produce 19.2 million pounds of tobacco this year, up from 6.8 million in 2002, making us one of only three states, along with Kentucky and North Carolina, with a higher yield than last year. It's a grower's market, baby. Plus, remember our motto: "Gutless on Smokeless."

LAWMAKER #4: I don't see anything in here about taxing gays for access to restaurants, concerts, pro sports, public restrooms, churches and rural counties.

LEADER: No, Daryl, we took that out.

LAWMAKER #5: Speaking of concerts, why are we taxing concerts, performing arts, museums, zoos and such and not pro sports games?

LEADER: You really think the Big Guy, OK the formerly Big Guy, wants to anger owners of the Phillies and Pirates while angling to become Major League Baseball commissioner? Come on.

What I think of Ed Rendell: (I think state outrage over him is on par with the outrage against George Bush as the end of his term)

How Do You Make Democrats Smile- Raise Taxes!!!

WSJ Photo

From The Wall Street Journal:

Pennsylvania state Rep. Todd Eachus, from left, Philadelphia Mayor Michael Nutter, Rep. Keith McCall and Rep. Dwight Evans are all smiles Thursday in Harrisburg, Pa. The legislature approved a plan to help close Philadelphia's budget shortfall by raising the sales tax and deferring some pension obligations.

Just like Pennsylvania, Philadelphia is bloated with employees hired to secure votes.

City governments have also expanded during the past 15 years. While local-government payrolls, excluding teachers, have been flat for the past 12 months, according to Bureau of Labor Statistics figures, the number of employees soared by more than 743,000 to 6.49 million over the past decade, an increase of nearly 13%.

Could part of the pension problem be due to this.

In 2006, there were more city pension recipients (33,900) than city workers (28,700) and the gap is expected to widen in coming years.

The amount of city employees' pensions, ranging from around $29,000 to $40,000, are similar to other cities, but Philadelphia city workers contribute less of their own money than workers in other cities. For example, municipal employees in San Francisco contribute 9 percent to their own pension plans, compared with 1.85 percent for Philadelphia city workers.

The report's authors place much of the blame on the city's paltry contributions to the pension fund during the 1970s and 1980s and what they call a "poorly timed" decision to issue $1.2 billion in bonds to reduce unfunded liability.

Regarding health care, Philadelphia's situation is extreme even compared to other big cities grappling with similar challenges, according to the report.

Health care for municipal workers cost the city more than $9,800 per employee in fiscal 2006 , a figure second only to Detroit. When it comes to health care costs for retirees, Philadelphia tops the list of 10 cities studied at more than $9,100 per retiree.

But the Democratic answer is to raise more taxes. It should be noted that Philadelphia hasn't had a Republican Mayor since 1952.

Mayor Nutter why don't you take these ideas and implement them before you raise taxes. The full text of those ideas are viewable here. To the Pennsylvania legislature, why didn't you force Nutter to implement these ideas before you granted his tax hike?

Here's a look at one of them.

The City Controller and the Mayor’s Office aren’t expected to be best buddies. But in the midst of this city’s fiscal crisis, Controller Alan Butkovitz identified $300 million in one-shot savings and roughly $185 million in annual savings over five years, including a proposal to get many millions more in revenue out of the city’s emergency medical services (EMS) operations. The Nutter administration ignored most of his ideas.

According to this article that appeared in the Philadelphia Inquirer written By Patrick Kerkstra the sales tax hike from 7 to 8 percent will raise $10 million a month or $120 million for the year. The City Controller identified over 4 times that much in savings without a single tax increase. But whoever said government was smart. And we should keep electing the same legislators for what reason???

Luzerne County Should Take A Lesson From Allegheney County

Mark Moran Citizen's Voice Photo
Caption- "I wonder if I am going to be next??"

In today's Citizen's Voice Michael Buffer reports on the sad state of financial affairs facing Luzerne County. The county is considering a 33% tax hike to make ends meet. According to Buffer the county will be able to pare that down to 22% if they lay off 150 people.

The reality is that we are in the midst of a restructuring of Luzerne County whether "they" want to believe it or not. I call it the "Southerton" effect. Except for that PizzellaFella I believe the next set of office holders WILL GET IT.

They will understand that the people are damn angry with government. Speaking of Pizzella, dude, did you not see what happened to Ciavarella when his arrogance ran about ten feet in front of him? Seriously, think about this. You couldn't walk in Conahan's shadow and you believe you are going to do what? Gort has a great post about the PizzellaFella. Frank...ly speaking if you were a pilot you would know it is a dangerous game to get caught in the propwash.

Anyone who has encountered the federal system will give you the following rundown. The Feds are not Keystone cops. The problem with the Feds is you are already caught when they come for you. When they want to talk to you they already know what they need to know. They just want to talk to tidy up a few details before they lock your ass up. Ohh off subject, sorry. Back to Luzerne County.

Commissioner Petrilla and Urban. Take a page from the Allegheny County playbook. Start with this paper written by Christopher Briem of the University of Pittsburgh that details how Allegheny County came to its breaking point of change. Efficiency in consolidation is no different for government than it is for private industry.

In line with consolidation look how Allegheny County was able to extract savings and install efficiency into its government structure by eliminating Row Offices. Allegheny County's efforts to terminate duplication saved residents millions. Although Dan Onorato doesn't stand a chance against Tom Corbett shoud the race for governor shape up that way I want to give him credit for his plan outlined in this article. Yes, not all Democrats are bad.

But the effort should not stop there. Many local governments should be looking at consolidation. The state should be mandating enrollment in the Pennsylvania Council of Governments to effect a statewide savings for each and every taxpayer.

Jim Dino of the Standard Speaker writes:

Councils of governments are meant to act as a conduit among an area's municipal governments, so that they can try to address common problems together - and perhaps save money doing it.

The Mountain Council of Governments represents 13 municipalities in the Hazleton area, including municipalities in Luzerne, Schuylkill and Carbon counties. There is no membership fee to belong to the Mountain COG.

For more information on the M-COG contact Dan Guydish, executive director, at 455-1509 or at www.hazletonchamber.org.

I know,,time to take my Prozac. Nobody will ever go for it.

Open Response To The Standard Speaker Editorial Department

Editors- Who Is In Charge Of These Editorials? I want to comment on this editorial that appeared in today's paper. It is titled "Move would help shift away from taxing property."

Folks, you can read it for yourselves. The question I have centers on the premise for the article. If you want to replace one tax for the other, why aren't you asking the legislature to reduce its size so that no matter what tax it won't be such a burden on the taxpayers? Pensions, healthcare premiums, car payments, per diem, office space rentals, light, heat, office staff...ohhh I could go on and on. Get them off our backs first before asking us to pay a tax...Sheeezzze... Any lightbulbs needed down there????

Rendell's proposal doesn't make sense when he refuses to address the problems inherent with our government in Harrisburg. Before he asks for more money from us why doesn't he reduce the money he needs, again, from us???

Once Again Barack Obama Plays Wag The Dog

Guess Who Really Pays The Most Taxes In America? Read this article from 2007 by Stephen Moore over at American.com.

What income group pays the most federal income taxes today?

The latest data show that a big portion of the federal income tax burden is shoul­dered by a small group of the very richest Americans. The wealthiest 1 percent of the population earn 19 per­cent of the income but pay 37 percent of the income tax. The top 10 percent pay 68 percent of the tab. Meanwhile, the bottom 50 percent—those below the median income level—now earn 13 percent of the income but pay just 3 percent of the taxes. These are proportions of the income tax alone and don’t include payroll taxes for Social Security and Medicare.

Don't be distracted by Obama when he says the rich are not paying their fair share of taxes. Look at the real effect of tax cuts under Bush and how much more that was paid. The source is the U.S. Treasury. PBO will wag the dog when you're not looking.