Category: Pennsylvania Budget

Pension Debt Grows $15M Per Day

Pension Debt Grows $15M Per Day

By Rep. John D. McGinnis
$15 million of new pension debt each and every day over the last 15 years! That’s what our state government has dumped on the taxpayers of the Commonwealth, all the while falsely claiming to have had balanced budgets and making Pennsylvanians some of the highest taxed and most debt burdened citizens in America. No wonder the demographic projection for Pennsylvania’s future is dire.

The new pension bill that passed the House on June 14th does nothing to stop the increasing pension debt and, frankly, is a joke, albeit a cruel one. Even if all the assumptions baked into this convoluted plan hold true (and none of them likely will), the total present value of taxpayers’ “savings” over the next 35 years is about $1 billion. Compare that to the present value of the unfunded liabilities of the state pension systems, which is $70 billion and grows $1 billion every ten weeks, and you get an idea of how unserious elected officials are at addressing the single worst financial calamity in the history of Pennsylvania. Pension Debt Grows $15M Per Day

It is particularly disappointing that rank-and-file members were excluded from trying to improve the bill through the amendment process on the House floor. Using sleight-of-hand parliamentary maneuvers that would have impressed David Copperfield, and manipulating the requirement for actuarial analysis of all pension bills, House leadership shut out all meaningful reform. No House member even had a chance to look at the actuarial analysis for the stacked hybrid pension amendment before they voted on it. All other amendments were ruled out of order because the House wouldn’t wait two weeks (or two hours for that matter) to review legislation that will have a fiscal impact on the Commonwealth for more than 80 years.

In 2001 and 2002, legislators expropriated for themselves and other public sector employees a $15 billion pension surplus that belonged to taxpayers. In 2003 and again in 2010, legislators voted to divert taxpayer dollars intended for pension funding to other line items in the budget. These acts would be called theft and misappropriation of funds if it weren’t for the folks writing the law.

The upshot is that taxpayers, still shackled with paying for and indemnifying exceedingly costly public sector retirement plans, are also stuck with paying off $70 billion of pension debt. As private sector employees struggle to fund their own modest retirements, public sector employees are guaranteed the most generous retirement benefits anywhere. Who’s the master and who’s the servant in this relationship?

Supporters say the new pension bill is a step in the right direction. Folks, if you are on a beach when a tsunami is about to hit and you take one tiny step away from the ocean, it’s not going to make any difference. It is past time for the incremental approach to fixing the financial house of our state pension systems.

Supporters also say the bill will slow the deteriorating financial condition of the state pension systems. That’s not true, but even if it were, what difference would it make to drive off a cliff at 55 m.p.h. instead of 60 m.p.h.?

The governor and supporters of the stacked hybrid plan will claim that bipartisanship is alive and well in Harrisburg. The sad fact is it always has been with respect to public sector pensions. The party of stupid and the party of evil always find a way to agree to do what is both stupid and evil. Taxpayers today and into the distant future will have a hard time appreciating this “spirit” of cooperation. Or, as growing numbers of citizens are already doing, they will just leave the state.

John D. McGinnis represents the 79th District in the Pennsylvania House

Pension Debt Grows $15M Per Day

Pennsylvania Baseline Budgeting Must End

Pennsylvania Baseline Budgeting Must End

By Leo Knepper Pennsylvania Baseline Budgeting Must End

Some Pennsylvania legislators are proposing revolutionary changes to the state budget process.

And, by revolutionary we mean doing something that the private sector has been doing for decades.

On Tuesday, the “Taxpayers Caucus” released a report highlighting over $3 billion dollars in potential savings this year. Many of the items have been discussed separately in the past, but this is the first time anyone has compiled them in one place. In reviewing the report, there were items related to the budget process that stood out in terms the scope of the changes proposed.

The most interesting thing was the proposal to modify the budget process completely. Although this change did not have a dollar amount attached to it, following the report’s recommendations could save taxpayers billions over the medium term. Specifically, the report called for Pennsylvania to shift from “baseline budgeting” to a hybrid budget process comprised of performance-based budgeting and priority-based budgeting. Discussions about budgeting processes are usually enough to make one’s eyes glaze over, but switching to a hybrid budgeting process would represent a radical shift in how the Commonwealth spends your money.

Baseline budgeting is a simple (and terrible) way to allocate resources. What it means is that an agency or department looks at what their budget was this year and assumes that they will get a certain percentage more next year. Baseline budgeting means that spending will essentially never decrease. Furthermore, it is how agencies can claim that their funding got cut even though they got more money year over year.

Let’s say Agency X received $1 million last year. Their assumption is that they will get 5 percent more this year, or $1.05 million. Instead, the legislature increases Agency X’s budget by “only” 3 percent, to $1.03 million. Under baseline budgeting Agency X would now state that their funding was “cut”, but in reality, they just got a smaller increase.

In contrast, performance- and priority-based hybrid system eliminates the assumption that Agency X will automatically get more money, and more importantly it raises the possibility that the funding might go away entirely if the programs it administers aren’t performing as well as alternatives or if the priorities of the Commonwealth change. Most programs run by the state and federal government do not have a clear objective, or if they do there is very little information available on what progress is being made to achieve that goal. Economic Development, i.e. corporate welfare, and social welfare programs are notoriously bad at setting objectives and measuring performance. A real world example would be for a business to invest in all new servers to reduce downtime, but never measuring the downtime to see if it worked.

Priority-based budgeting is what CAP called for during the last few budget cycles. It is similar to how families budget. They know their income and make financial decisions based on the amount of money they have, which is a stark contrast to how government typically operates. The government generally decides how much to spend and then tries to figure out where to get the necessary money.

The changes proposed by the Taxpayer Caucus would drastically alter the culture of government from one of entitlement to one of results. The budgeting process is not particularly exciting and does not make good headlines. However, the basic assumptions underlying the allocation of resources affects Pennsylvanians in a profound way, and it is worth examining carefully.

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania.

Pennsylvania Baseline Budgeting Must End

Wolf Ignores Budget Restrictions

Wolf Ignores Budget Restrictions By Leo Knepper Wolf Ignores Budget Restrictions

Included in the 2014-2015 budget was $200 million in additional funding for schools. The budget also included language that required “enabling” legislation to spell out how the new funds would be distributed. That enabling legislation was the “Fiscal Code”, which the governor vetoed. In other words, Governor Wolf is breaking the law in spending the money.

Adding insult to injury, the Governor is spending the money according to a formula he essentially made up on his own without input from the legislature. The Fiscal Code included changes recommended by a bipartisan education funding reform commission. Governor Wolf ignored those recommendations in determining how he was going to distribute the funds illegally.

The Harrisburg Patriot-News highlighted some of the discrepancies between the Governor’s distribution and the distribution spelled out in the vetoed Fiscal Code:

“Philadelphia’s share of the $200 million in new education funding is $76.8 million – a full 38 percent – under the restoration formula, wheras [sic] under the bi-partisan-backed formula, it would have received $42.4 million.
“Pittsburgh receives $7.5 million under the governor’s formula; $3.1 million under the one lawmakers would prefer be used. Chester-Upland receives $16.3 million under the restoration formula compared to $2 million under the other distribution system. ”

The changes in those three school districts’ funding levels under Wolf’s illegal plan, consume over $53 million in funding designated for other schools. The Governor’s decision to redirect a quarter of the new money to three schools districts, without legislative authorization, is one more example of Wolf’s “my way or the highway” approach to governing.

It is worth noting that according to the news article mentioned about, the legislature is looking into taking legal actions against the Governor to stop his latest executive overreach.

Wolf Ignores Budget Restrictions

Pennsylvania Taxpayers Win, Wolf Loses

Pennsylvania Taxpayers Win, Wolf Loses

By Sen. Scott Wagner

Pennsylvania Taxpayers Win, Wolf LosesGov. Tom Wolf announced today, March 23, that he will allow the spending plan for the 2015 – 2016 budget year that Republicans put on his desk last week to become law.

Gov. Wolf is refusing to sign the bill which means it will become law automatically.

Gov. Wolf has said repeatedly and emphatically this week and last week that he would veto the plan.

Let me be clear – this is a victory for Pennsylvania taxpayers and a setback for Gov. Wolf. He was forced to allow the spending plan to become law because Democratic Senators and House members were going to vote with Republicans to override his veto of the spending plan.

It will be interesting to see what Gov. Wolf does moving forward.

It is important to understand that Gov. Wolf’s 2016 – 2017 budget proposal is based on his original 2015 – 2016 spending plan.

Now that Gov. Wolf has had to accept a more responsible spending plan that doesn’t raise taxes, he will also have to be much more realistic about his 2016 – 2017 budget.

Today is a good day for the taxpayers of Pennsylvania.

Sen. Wagner represents the 28th District in the Pennsylvania Senate.

Pennsylvania Taxpayers Win, Wolf Loses

Destructive Wolf Off Rocker Says Senator

Destructive Wolf Off Rocker Says Senator

Destructive Wolf Off Rocker Says SenatorBy Sen. Scott Wagner

Yesterday (March 17) I updated you on votes in the Pennsylvania State House and Senate on HB 1801, which would end the 2015-16 Budget impasse.

I also reported that Governor Wolf had stated that he would veto the budget bill.

Late yesterday it was reported that Governor Wolf was making statements that he was willing to close schools.

Click on this link and please read the story – I recommend viewing the video by Courtney Brennan.

Governor Wolf has gone off his rocker. Governor Wolf will go down as the most destructive governor in Pennsylvania history if he allows schools to close.

I see first-hand every single day how Governor Wolf has absolutely zero interest in cutting costs, cutting waste, and putting Pennsylvania on a diet.

As a matter of fact, Governor Wolf is committed to growing Pennsylvania government to reward his public sector union friends.

The best example of Governor Wolf growing government would be the 400 new employees hired at the Department of Corrections in 2015, which I feel confident saying are now dues-paying union members.

Click on this link to see which Democrat’s voted no on HB 1801 in the state House and Senate.

(Under “Floor Roll Call”, click on the word “Vote” to pull up the House votes and the Senate votes.)

To end your week, here is a great example of the irrational thinking of Senate Minority Leader Vincent Hughes from Philadelphia on the budget.

Stay tuned – I will have more to report next week.

Destructive Wolf Off Rocker Says Senator

Partisan Democrats Hurt Children

Partisan Democrats Hurt ChildrenPartisan Democrats Hurt Children

By Sen. Scott Wagner

This  is an update on the latest budget vote in the Pennsylvania Senate that occurred yesterday (March 16) at approximately 2 p.m.

The words swirling around in my head as I write this email are – upset, angry, disgusted, disappointed and irresponsible, for starters.

The State Senate voted on House Bill 1801 yesterday – HB 1801 is a supplemental appropriation bill for the 2015-16 year which provides $6.05 Billion  to restore line items vetoed by Governor Wolf in December.

HB 1801 passed with  30 Senate Republicans and one Senate Democrat voting yes.

Eighteen Senate Democrats voted no.

Governor Wolf has repeatedly stated he will veto HB 1801.

If three\more Senate Democrats had voted “yes” then we would have had 34 “yes” votes – enough to override Governor Wolf’s veto.

There are at least six Democratic Senators who represent school districts and non-profit agencies in their districts that have borrowed money and have serious financial challenges.

What is upsetting to me is that these Democratic Senators are being intimidated by Governor Wolf and the Senate Democratic Leadership, which is dominated by Pittsburgh and Philadelphia members.

My question is very simple to my Senate Democratic colleagues – how can you come to Harrisburg and complain about how bad things are back in your Senate District and then proceed to not vote to restore funding for the schools and non-profits in your district?

How can you go back to your Senate Districts and face your constituents?

Last week the State House of Representatives held Appropriation hearings – Budget Secretary Randy Albright stated during a hearing that budget vetoes by Governor Wolf on June 30  and Dec. 23 of last year for the 2015-16 budget packages sent to him by the House and Senate were  “to make the clear statement that it (the overall amount of funding earmarked for state aid to public school in the GOP crafted budget) is not enough.”

To be clear the statement made by Budget Secretary Albright as to why Governor Wolf vetoed budgets sent to him means “leverage” over conservative and responsible Republicans. In my private sector business world this is similar to being backed into a corner – and I don’t like being backed into a corner.

After several weeks of Senate Appropriations meetings starting on Feb. 22 and lasting until March 8, it is even more apparent than ever to me that Pennsylvania State Government is out of control.

Here is a great example: Seven State Corrections Officers made over $100,000 just in overtime alone in 2015, the overtime earned is on top of their base wages which can range from $60,000 to $85,000.

During last year’s Appropriations hearings the Secretary of Corrections stated that he did not anticipate any new hires, but in fact some officers may work some additional overtime to avoid having to hire additional employees.

The 2015 records show that overtime has skyrocketed and the Department of Corrections has hired 400 new employees.

As a sitting Senator,  do I have the authority to question the Secretary of Corrections on the excessive overtime being reported and the new hires?

Almost every agency that appeared in front of the Senate Appropriations Committee reported that for every $1 of compensation that is paid, an additional $0.80 to $1 is spent covering benefits.

In the private sector the percentage ratio of benefits to compensation is typically under 50 percent.

At my various companies the benefit percentage is around 45 percent.

What does this mean? It means that benefits for state employees are two to three times more generous than the private sector.

If Governor Wolf chooses to veto HB 1801 and inflict more financial pain on Pennsylvanians it is time to recognize just how irresponsible this Governor really is.

Governor Wolf is Pennsylvania’s CEO. He needs to start acting like it.

He needs to hold every agency secretary accountable for their budgets.

Partisan Democrats Hurt Children

More Budget Hearings Reveal More Waste

More Budget Hearings Reveal More Waste by Sen. Scott WagnerMore Budget Hearings Reveal More Waste

Last week, Governor Wolf disclosed that he has been diagnosed with prostate cancer – Governor Wolf reported that his cancer was detected in the early stages and that he would be under-going treatments – although Governor Wolf and I do not agree on many issues – I want to take this opportunity to wish Governor Wolf a full and speedy recovery.

Yesterday (Feb. 29) the Pennsylvania Senate Appropriations Committee held budget hearings for the Department of Corrections, Department of Transportation (PennDOT) and the Department of Labor & Industry.

The first hearing held was for the Department of Corrections. For the 2016-17 budget year the Department is looking for a $200 million  increase in funding.

Within the $200 million request are $73 million that will be used for pension obligations.

Most troubling is to learn that overtime at Corrections facilities is out of control.

A review of last year’s over time records reveal that:

7 Employees made more than $100,000 in overtime

130 employees made more than $50,000 in overtime

Nearly 1,000 employees made more than $25,000 in overtime

More than 3,700 employees made more than $10,000 in overtime.

The total of all of the categories listed above is $69.2 million for overtime. Factor in benefits of dollar to dollar of actual pay and the total cost of the overtime is almost $140 million.

Consider the request in funding of $200 million — $73 million for Pensions and $140 million for overtime with benefits  equals $213 million.

It is important to note that personnel earning large amounts of money working overtime fully understand that by driving their full annual earnings as high as possible will result in a greater payout for their pension when they retire. Annual pension payouts are based on a percentage of earnings at the time that the person retires.

The overtime cost is particularly troublesome because the Department of Corrections has increased it’s staffing by more than 400 positions over the last year.

During the hearing we challenged the Secretary of Corrections by asking what can be done to control the Correction Department’s spending on overtime.

The Department continues to hire more staff and overtime costs continue to skyrocket.

It is important to point out that inmate population has decreased over the last four years. Total employees within the Department of Corrections as of the 2014-15 year was at 17,259. Of the total number at least 14,000 employees are unionized. It is my opinion is that the Department of Corrections has become so large that it has become unmanageable and must be reined in quickly.

The second hearing was for the Department of Transportation (PennDOT).

A major finding reveals that the Pennsylvania State Police receive funding through Gasoline and Diesel Fuel taxes collected by PennDOT.

If you recall in November of 2013 the legislature increased the gasoline and diesel taxes to fund more road and bridge construction projects.

History reveals that in 2001 a change was made to fund the State Police out of fuel taxes. A cap was to be put in place. It never was. In the 2001-02 year funding to the State Police from fuel taxes was $351.8 million. For the 2016-17 year it is projected to be $813.9 million.

The funding the State Police will receive from Penn-DOT in 2016-17 over the 2015-16 year is a 7.2-percent increase.

Using the current funding scenario where Pennsylvania motor fuel taxes fund the State Police – 11.7 cents on every gallon of motor vehicle fuel goes toward State Police funding.

Another large challenge Pennsylvania faces is that cars and trucks continue to get greater fuel efficiency – meaning more miles per gallon as the EPA mandates that car and truck manufacturers increase fuel efficiency.

As electric cars and vehicles powered by natural gas become more popular — they do not pay fuel taxes – there will be less tax revenue to fix roads and bridges.

In addition, as our population continues to age, people in their 70’s and up are driving less. Many millennials that grew up in Pennsylvania that live in large cities are choosing not to own a ca. Many people are also using Uber instead of owning car. This again also means less motor fuel taxes generated.

It is important to point out that Pennsylvania has one of the lowest passenger vehicle registration fees in the nation. I continue to be very aware of the thousands of trucks that enter Pennsylvania every day from Maryland on I-83, travel to I-81 and other routes through Pennsylvania without purchasing diesel fuel in our state because fuel taxes in surrounding states are anywhere from 20 to 30 cents less.

A large over the road truck can hold up to 200 gallons or more of diesel fuel – if they re-fuel in MD or NY the savings in fuel taxes over PA could be $40 to $60 per re-fuel.

The Pennsylvania State Police serve a critical function and it is important that we find a way to fund them without using liquid fuel taxes.

Fuel taxes were increased to rebuild Pennsylvania’s roads and bridges – the budgeted amount of over $800 million should be going to road and bridge construction, not funding the State Police.

Pennsylvania has the highest fuel taxes in the nation – click here for a chart of nationwide gasoline taxes.

Click here to view diesel taxes.

The last hearing was for the Department of Labor and Industry (L&I).

The number of employees with L&I as of 2014-15 was 5,902 – the Department is looking for an increase from the General Fund of 8.2 percent.

The Department of Labor & Industry is also a critical department of the Commonwealth of Pennsylvania and it provides critical functions such as elevator inspections, fuel tank inspections, and provides workers compensation insurance through the SWITF Fund (State Workers Insurance Trust Fund).

As I sat through all of the budget hearings last week and so far this week my brain remains focused on this:

It was reported last week during the hearing for the Treasury Department that the rate of inflation as reported by the Philadelphia and Pittsburgh CPI indexes was a negative number (0.02 percent for the 2015 year – so if inflation is negative and revenue coming into the state is growing at approximately 3 percent per year (mainly through Personal Income Taxes and state Sales Tax) and each agency in Pennsylvania is looking for funding increases greater than 3 percent  additional money over and above 3 percent must come from somewhere. Governor Wolf has a solution for the somewhere answer – increase taxes on Pennsylvanians.

It is very clear that state employee benefit costs coupled with the current pension crisis are now approaching one dollar  for every dollar  of pay — if this trend was taking place in the private sector business world it would mean CODE RED to do something — Pennsylvania is about to get buried in the dust.

I have a solution. We must get Pennsylvania State Government spending under control and go on a diet. It will require many tough decisions and will require making changes and getting away from the status quo.

Governor Wolf. it is time to act. Every day we delay  the pain will increase for Pennsylvanians.

Raising taxes is not the answer. Taking action on spending is the answer.
Sen. Wagner represents the 28th District in the Pennsylvania Senate.

More Budget Hearings Reveal More Waste

Pennsylvania Appropriations Hearings Day 3

Pennsylvania Appropriations Hearings Day 3 by Sen. Scott Wagner

Scott Wagner (cropped)Yesterday, Feb. 24, we completed the third day of Pennsylvania Senate Appropriations hearings.

Here is the schedule of hearings held so far:

Monday:
Governor’s & Executive Offices – Budget Secretary Randy Albright
Independent Fiscal Office

Tuesday:
Judiciary
Treasury Department

Wednesday:
Department of Conservation & Natural Resources
State Police- Homeland Security
Department of Drug and Alcohol Programs

Here is what I learned yesterday:

1. During the Department of Conservation & Natural Resources hearing I learned that the Department had entered into a lease to lease land under the Allegheny River for 80 acres at a cost of $4,000 per acre for an approximate total cost of $320,000.

Here is my question to the department – Is $4,000 per acre for one year or multiple years?

Keep in mind – this is high priced swamp land – I want to meet the genius who entered into this deal.

2. The Pennsylvania State Police have between 135 and 145 full time personnel permanently assigned to casinos throughout the Commonwealth – the total cost without vehicle costs for the personnel is $28,491,000 (Million Dollars) – almost $200,000 person.

3. The State began the upgrade of a state-wide radio system approximately 10 – 12 years ago and the State Police use this system. Here is the bad news – the total cost spent so far is approaching $1.0 Billion Dollars and it does NOT work.

Recently a roll-off truck from my waste company was in the Pittsburgh area and our dispatcher in York was able to communicate to the truck via our radio system that costs less than $3,000 for the radio in the truck.

How many radios that cost $3,000 could be purchased for $1.0 Billion Dollars? The radio system sales rep who sold the system to the State is most likely retired and lives on a Caribbean Island from their commission.

Below are two articles that were reported in the last 48 hours –

The first from Bloomberg.com is  Saudi Arabia to US Oilmen: Cut Costs or Exit the Business

I forwarded it to my Colleagues in the state House and Senate – with this message:

Dear Colleague:

This story was published yesterday.
The message is very clear – Saudi Arabia has declared war on the US Oil Industry.
This price war is spreading to the Pennsylvania oil and gas industry.
Pay close attention – more layoffs are coming, banks will be writing off bad debt from the energy industry.
Saudi Arabia has around $650 Billion  in cash on hand so they have at least five years of staying power burning $100 Billion  per year. (Cash Burn)
Pennsylvania’s golden goose is about to get cooked.

The other is this: Teachers Union Head Paid $1.3 Million Dollars Not to Teach, Suit Claims

I can assure you that corruption, stupidity, lack of accountability, waste, fraud and abuse and past bad decisions made over the last 30 years are getting exposed.

In closing – I want to thank York County Voters who came out on March 18, 2014 and cast a write-in vote for me and sent me to the PA State Senate.

For me to serve in the Pennsylvania State Senate is an honor that I consider priceless and a huge responsibility – you may not agree with me on everything or may not like my style but I can assure you this – I will tell the truth and report what I find – Pennsylvanians deserve better from our state government.

I will continue to lead and be out front to change Harrisburg – and I am happy to report that the number of House and Senate Members right beside me that also want change is growing fast.

What I have seen over the time since I joined the PA State Senate in April of 2014 is simply breathtaking and makes me angry.

I will report more on Friday.

Sen. Wagner represents the 28th District in the Pennsylvania Senate.

Pennsylvania Appropriations Hearings Day 3

West Chester Swim Coach Makes $420,172

West Chester Swim Coach Makes $420,172 by Sen. Scott Wagner

West Chester Swim Coach Makes $420,172
State Sen. Scott Wagner

Good news was delivered last week – John Hanger, Governor Wolf’s Policy Chief resigned on Friday.

Click here for the story.

John Hanger resigning is good for Pennsylvania. John Hanger was not a nice guy and it was either his way or the highway. It was very clear that John Hanger’s personal beliefs had become a large part of Governor Wolf’s agenda.

Even better news – John Hanger is moving to Massachusetts to join his wife.

Second Subject – PA Senate Appropriations Committee hearings began yesterday (Feb. 22) and go on for the next six weeks.

Governor Wolf has an unfinished budget from last year and delivered his 2016 – 2017 budget address two weeks ago.

Governor Wolf is again asking Pennsylvanians to pay more taxes while continuing to use the “more money for students” line.

I reported in an email blast several weeks ago that the PA Auditor General completed an audit on the Pittsburgh School District and found $129 million that was not being reported.

The first budget hearing that took place yesterday was with staste Budget Secretary Randy Albright.

I asked Secretary Albright if he was aware of the Auditor General’s report on the Pittsburgh School District and was if he was aware of the missing $129 million. He replied that he was not aware of the missing $129 million.

I responded that his answer was unacceptable.

My question is this: How could the PA Budget Secretary who represents the Governor’s Office appear in front of the Senate Appropriations Committee to ask for more money and not be aware of the $129 million  that our own PA Auditor General found in a public school district audit?

Within the next month the Auditor General will be issuing the results of an audit that was recently performed on the Philadelphia School District. I predict the findings will reveal massive financial mismanagement in the Philadelphia School District.

Patriot News reporter Jan Murphy published a story, Feb. 16, titled – “$100,000 Club – Search the database of PA state government top 2015 earners.”

The story noted that in 2013 there were 4,822 people who earned $100,000 per year or more in state government. In 2014 the number grew to 6,356 people earning over $100,000 per year or more. It grew again to 7,692 people in 2015 earning $100,000 or more.

As a member of the Senate Appropriations Committee I will be participating in budget hearings with agencies that are all looking for increased funding. At the same time, Governor Wolf is again looking for Pennsylvanians to pay more in taxes. With that in mind and after reading Jan Murphy’s story I have to ask myself this question….when is enough money enough?

Ms. Murphy asks a great question in her story: “Take a guess at which person in all of state government made more money last year: The Governor, A Supreme Court Justice, A Legislator, A Professor, or a swimming coach.”

“There’s little chance the swimming coach would be the one you’d pick.”

The swimming coach at West Chester University had earnings of $420,172 last year.

I believe that Pennsylvania is in the beginning stages of a recession.

Many elderly homeowners living on fixed incomes cannot afford their school – property taxes and are faced with selling their homes.

Many businesses linked to the energy industry are laying off employees in droves because of historic low gas and oil prices.

Still Governor Wolf wants more money from the people I just mentioned?

The answer is simple for me – Absolutely Not – it is time for Pennsylvania Government to immediately go on a diet – and that means now.

To be Crystal Clear – I will NOT be voting for any tax increases for the 2016-17 budget and I fully intend to educate and lobby my Republican colleagues to also vote for zero tax increases.

Since I joined the PA State Senate in April of 2014 I have seen firsthand, examples of waste, fraud, abuse and financial mismanagement. It is time to clean house and restructure the mess in Harrisburg and get our financial act together.

Stay tuned – I will be asking many questions during the Senate Appropriations Hearings – one of my questions for each agency head will be – “You need to figure out how to live on less funding from Harrisburg – are you capable of doing that?

Sen. Wagner represents the 28th District in the Pennsylvania Senate.

West Chester Swim Coach Makes $420,172

Money Floats Around In Pa

Money Floats Around In Pa — By Leo Knepper

A couple of weeks ago, Sen. Scott Wagner pointed out the $129 million “Swiss Bank Account” operated by the Pittsburgh Public Schools. The massive cash reserve was brought to light by a report from the Auditor General just in time to avoid an unnecessary tax increase. It is reasonable and prudent for school districts to maintain a rainy day fund. However, Pennsylvania school districts are ready for a biblical flood. They have a combined $4 billion in reserves socked away, but that doesn’t prevent them from crying poverty at every opportunity.  Money Floats Around In Pa

There are other, more disturbing, examples of off the books pools of money that came to light during the budget “crisis”. Even in the absence of a budget, Governor Wolf managed to spend over $30 billion. This spending got the attention of several Representatives last year and what they found was eye-opening. One of the accounting tricks employed by the Governor was the use of waivers:

“Their digging uncovered that $2.7 billion in waivers, which is money left over from previous budget years, had been spent in the four months after the 2014-15 fiscal year ended at the end of June.”

As we enter another budget season, Representatives and Senators need to determine how much more money is floating around off the books. Money left over from previous budgets does not belong to government agencies, it belongs to the taxpayers. Having an accurate assessment of the amount of unspent, previously allocated funds could save taxpayers billions of dollars going forward and plug that “structural deficit” the Governor keeps mentioning.

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania.