Category: Pennsylvania Senate

Pennsylvania Won’t Run Out Of Money

Pennsylvania Won't Run Out Of MoneyBy Sen. Scott Wagner

Over the last few weeks I have repeatedly read articles in various newspapers saying government-funded non-profit organizations and social programs are running out of money because the PA State budget did not pass on June 30.

These articles are misleading and deceptive.

As a small business owner, I know for a fact that cash continues to flow into Harrisburg.

How do I know this?

Since June 30, PA state taxes have continued to be deducted weekly from employee paychecks at my various companies.

In addition, these companies also continue to pay corporate and federal taxes.

I know for a fact that the cash flow into Harrisburg continues to be very strong and has not stopped because we are REQUIRED by the state to wire transfer Pennsylvania state taxes withheld weekly from our employees’ paychecks to Harrisburg.

Last Friday, August 14, one of the businesses I own issued 345 payroll checks and deducted $8,170  in employee withholding taxes.

Those withholding taxes will be wire transferred to the State of Pennsylvania today.

So far for 2015, we have sent $266,177 in employee deducted state taxes to Harrisburg.

In July, we purchased four waste collection trucks for a total of $918,477.

We paid Pennsylvania sales tax in the amount of $53,718  for the trucks which went to Harrisburg immediately.

We also paid $104,540  in federal excise taxes on those trucks.

The misleading information that is being fed to Pennsylvanians by the Wolf Administration makes me extremely angry and is an insult to Pennsylvanians that have payroll taxes deducted from their paychecks and it is also insulting to business owners all across Pennsylvania who continue to generate tax revenue each and every day.

It is a poor attempt to get the general public to think Governor Wolf’s budget proposal is the only option we have.

Guess what – there was another option.

Governor Wolf could have chosen to approve 270 line items for passage so cash flow would have continued to these agencies and organizations – he made the decision to veto the entire budget despite that option.

Governor Wolf made a huge mistake.

It is time Governor Wolf takes responsibility for his poor decision and put an end to the political games.

I’m curious – did you stop paying taxes on June 30?

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

Pennsylvania Won’t Run Out Of Money

Pennsylvania Monopoly Government

By Scott Wagner Pennsylvania Monopoly Government

I have been a private sector business owner for over 35  years– over the span of my business career I have learned many lessons.

Lesson # 1 – The costs for your products or services have to be less than the pricing for your products or services to make a profit.

No profit means you are out of business – thousands of businesses fail every day in America because the owners did not understand the pricing – cost – profit rule.

There is also another very large dynamic in the business world – competition!

Competition is a factor that does not allow a business to just raise prices whenever it feels like it.

Many business owners fail several times before they succeed – success does not happen overnight – success takes hard work, skill and perseverance.

At some point in a small business owners career, he or shee will have spend a large amount of time lying awake at night staring at the ceiling wondering how they are going to solve an issue in their business, obtain financing or just outright survive a recession or fierce competition.

– and you really don’t have to spend much time keeping your costs under control – are you interested?

There is one business that is a monopoly out there and it is called “The State of Pennsylvania”.

The current Governor of Pennsylvania has sent a notice to all Pennsylvanians that he intends to raise prices.

The Governor wants to raise prices on a lot of products in PA and he doesn’t care about controlling or reducing costs.

In April, an article from Watchdog.org reported that “Philly ghost teachers made more than $1.7 Million Dollars last year”.   Click here for the full article.

Last Sunday Philly.com reported that in Philadelphia “No-bid schools contract is costing millions”.   Click here for the full article.

In July of 2014 an article was published “Welfare fraud in Pennsylvania”.  Click here for the full article.

The welfare fraud article states:

According to the Pennsylvania Department of Welfare, 2013 welfare expenditures were $28 Billion Dollars – 44% of the state budget – and are projected to rise to $32 Billion Dollars in 2015.

Welfare costs will grow for the foreseeable future in both dollars and as a percent of total expenditures. This trend must be reversed.

Former Auditor General, Jack Wagner, estimated that welfare fraud represents 10-15% of total state expenditures, or $2.8 billion  to $4.2 billion  of stolen taxpayer funds.

$400 million  to $675 million  annually could be attributed to food stamps and cash assistance program fraud alone.

While there has been some progress over the last three years in reducing welfare fraud, more action is necessary.

WOW………..

On-going welfare fraud, ghost teachers, no bid school contracts in Philadelphia.

So where is our Governor ??

Governor Wolf is running around PA telling everyone that we have to raise revenue by taxing more products and services and by increasing current taxes – “Earth To Governor Wolf – how about resolving the many out of control cost and fraud issues in PA first before you raise our taxes”.

Let me be clear again with the message I have repeated hundreds of times – “Harrisburg does not have a revenue problem – it has a spending problem”.

In the beginning of my email that I talked about competition – Pennsylvania has competition – and a lot of it – South Carolina, North Carolina, Tennessee, West Virginia and Kentucky to name a few.

They have low taxes – lots of undeveloped land for large businesses to locate there and public sector unions do not control their state capitols like they do here in Pennsylvania.

To all Pennsylvania taxpayers who understand my message today, and agree that Pennsylvania must get the out of control costs and fraud under control – I ask that you reach out to the PA State Senator and House member who represents you and tell them to stand tall against Governor Wolf and his budget agenda.

I am fed up and I have had enough of “Tax and Spend”.

Are you fed up also?

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

Pennsylvania Monopoly Government

Pension Cost Rising 800 Percent

By Sen. Scott Wagner Pension Cost Rising 800 Percent

The purpose of this column is to share with you why your school taxes keep going up.

The answer is: INCREASING PENSION COSTS.

The growing pension costs of the ten public school districts that are located within the 28th PA Senate District in York County are staggering.

On June 30th the PA House and Senate passed pension reform legislation and forwarded it to Governor Wolf – Governor Wolf vetoed the pension reform bill within days.

The elephant in the room continues to be the MASSIVE pension crisis facing Pennsylvania taxpayers.

I was recently forwarded the pension information contained in this email for the school districts in the 28th PA Senate District.

Listed below are charts showing the pension costs from the 2008-09 to 2019-20, a span of twelve years.

The first chart shows each school district’s actual pension costs for the 2008-09 year and the second chart shows the projected cost for the 2019-20 year of each school district.

The final chart shows the percentage increase from 2008-09 year to the 2019-20 year.

As you review the charts, please note that for the 2008-09 year the total pension costs for the ten schools districts WERE $12,535,778  , the projected costs for the 2019-20 year WILL INCREASE to $103,057,888  , an INCREASE over a twelve year period of $90,522,110   per year.

Pension Cost Rising 800 Percent

Pension Cost Rising 800 Percent

Pension Cost Rising 800 Percent

The information that I am sharing with you is for ten school districts in York, Pennsylvania – there are over 500 school districts in Pennsylvania.

Please review the charts – I am sure you will agree that the Pennsylvania pension system is a ticking time bomb.

Pennsylvania must join the rest of the real world and go to a 401K retirement system.

History is history – the past is the past – NOW is the time to correct this problem.

By the way, in this email I only talk about school district pensions – there are many other departments affected by this pension mess – State Police, Penn Dot, Judges, State Universities, and workers from all other state agencies.

Over the next 30 days I will be meeting with various people in the private sector – not Harrisburg insiders – to discuss new ideas and options for a plan to move forward to diffuse the ticking time bomb.

To review the year by year details for each school district please click here.

I also want to report that Senate and House leadership have been meeting with the Governor over the 2015 – 2016 budget.

As I have continued to report, the solution cannot be higher taxes and more spending.

In the event that a budget deal would be reached, the Senate is on a 6-hour call – we would promptly reconvene to vote on the budget.

Addendum:  A reader who follows my emails closely sent the following response:
“Scott–You are close to making a key point that appears to be missing in the debate about Wolf’s budget proposal.  He wants to increase the state’s contribution to education.  It sounds nice, like he is trying to help kids.  But the fact is all of that additional funding and more will be poured into the black hole of pension costs.  If he really wanted more for education and to relieve property taxes, he would start by repealing prevailing wage and tackle pension reform.  But his budget shows what he really cares about….not schools and students, but rather the unions and their constituents.”

Great points about where the money is really going.

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

Pension Cost Rising 800 Percent

Wagner Explains How GOP Funds Budget Increase

Wagner Explains How GOP Funds Budget IncreaseBy Sen. Scott Wagner

The question of the week has been – how is the budget coming along?

The budget question has come in by email, telephone calls and by people that I have talked to face to face.

The answer is very simple – the budget process is at a complete standstill.

The Pennsylvania House and Senate passed a balanced budget on June 30th – even before the balanced budget reached the Governor’s desk he was issuing statements that he was going to veto the budget – within two hours of the budget reaching his desk – without any extensive review or discussions with the House and Senate – Governor Wolf vetoed the budget.

For a recap – the 2014-15 budget was $29,142,312,000 (Billion) – the proposed / balanced 2015-16 budget is $30,179,476,000 (Billion) an increase of $1,037,164,000 (Billion) or a 3.6% increase over the 2014-15 budget.

The budget passed was a responsible budget that did not increase taxes.

So one would ask where is the additional $1,037,164,000 (Billion) coming from ?

Here is the answer:

Stronger state revenues of $412.2 Million as of June 30th for the past twelve months, $200 million in additional revenue through liquor reforms, structural reform to the pension system which is the number one cost driver for the state and school districts – a combined total equal to approximately the one billion dollar budget increase.

On Tuesday July 7th John Micek a reporter for the Patriot News wrote a story titled “The PA Budget is among the priciest in the nation” – click on the link for the full story.

There are two bullet points in the article that jump out and grab your attention.

Point #1 – “Despite proposed cuts to some corporate taxes, Wolf’s proposed $4.5 billion tax package is the largest in the nation, the study found. The administration’s plan raises $1.5 billion from a higher personal income tax and $2.3 billion from a higher (and expanded) state sales tax.”

Point # 2 – “While other states consider a host of measures — from workforce cuts to Lottery expansion – to manage costs, Pennsylvania stands nearly alone in not employing any cost-control measures.”

The take away for readers – Governor Wolf’s tax increase is the largest in the nation and Governor Wolf is not doing anything about managing costs.

So what is Governor Wolf doing to solve the budget impasse?

Today as I write this email Governor Wolf is visiting a school district in Southeast PA promoting his budget and more public school spending….and….Governor Wolf is hitting the airwaves via TV ads funded by the National Democratic Governors Association who have in turn received contributions from public sector unions to criticize House and Senate Republicans over the budget.

Let me be loud and clear – “PA DOES NOT have a revenue problem – it has a spending problem.”

Instead of sitting at the negotiating table today with House and Senate leaders Governor Wolf is out of the office acting like he is running a political campaign.

I am a member of the Senate Appropriations Committee – this past March and April I personally sat through 33 budget hearings ranging from 1.5 hours to 3.5  hours – at least 80 – 100 hours of hearings.

As I have stated before, Senate Appropriations Chairman Pat Browne, who is a tax attorney and CPA, has done a commendable job leading the budget process.

I would be remiss if I did not also recognize all Senate Appropriations Committee members and Appropriations staff for their efforts.

In addition – I am a private sector business owner with over 35 years of private sector experience who has survived in business because I had to fully understand the concept of revenue and expenses, and how to read a financial statement inside and out.

Governor Wolf believes the solution to solve the budget issue is to allow his administration to discredit and insult Republicans via TV ads paid for by public sector unions and press releases from his office.

As always – I want feedback from my readers – if you are OK with tax increases please send me an email telling me so.

Thank You,

Scott Wagner

P.S. I just learned in the last 30 minutes that Governor Wolf announced that he intends to veto SB1 – the pension reform bill – so Governor Wolf will be 3 for 3 – he vetoed the budget, liquor store privatization and pension reform is next.

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

Wagner Explains How GOP Funds Budget Increase

Tom Wolf Fiddles While Pensions Explode

By Scott WagnerTom Wolf Fiddles While Pensions Explode
I am writing to respond to the June 25 Op-ed from Frances Wolf, first lady of the Commonwealth of Pennsylvania.

It’s unfortunate that nearly a half-year after his inauguration Gov. Tom Wolf remains in campaign mode, crisscrossing the state with Mrs. Wolf and others making absurd claims about education spending.

Mrs. Wolf writes that King Elementary school, part of the Lancaster Area School District, has a library filled with 30-year-old textbooks and Mrs. Wolf is quoted saying, “They don’t have the funds to replace them with updated versions.” She leads readers to believe it’s the result of “devastating cuts” in state funding.

A quick check by my office reveals that the school district is sitting on a funding balance of $15.24 million.

And while the governor promises a windfall of new spending to help schools, he ducks action on the number one cause of school cutbacks and property tax hikes: skyrocketing pension costs.

That same school district the First Lady visited will see their pension costs go up by $4 million in 2016, which alone wipes out all of the promised new funding from the governor.

The fact is, Pennsylvania spends more on schools today than it ever has in the history of the Commonwealth, $27.4 billion.

That’s more than all but five other states in the nation.  Pennsylvania is ranked 12th in per-pupil spending, at around $15,000, while the U.S. average is $11,300.

Obviously, if commitment to education was measured by dollars spent, Pennsylvania is among the most committed states in America.

But, if we measure that commitment by reining in the skyrocketing costs that are placing a crushing burden on schools, such as pensions and unchecked union dominance, then we have work to do.

Wolf wants to raise taxes – personal income taxes, sales taxes and impose a natural gas extraction tax. But in seeking his tax hikes, he should get off the campaign trail and make an honest appeal for his priorities.

State Sen. Scott Wagner, a Republican, represents the York County-based 28th District.

Tom Wolf Fiddles While Pensions Explode

Pa Stays Open If Deadline Missed

By Sen. Scott Wagner Pa Stays Open If Deadline Missed

Everyone is under the assumption that the state budget MUST be completed by June 30 or the State of Pennsylvania shuts down.

This is an outright lie that has been used in the past and will be used again to intimidate the citizens of Pennsylvania.

Putting on my private sector business owner hat – every Wednesday our payroll departments electronically transfer the deducted employee state taxes to the PA Department of Revenue.

In addition, every day transactions occur throughout Pennsylvania that generate sales tax and other taxes – so the cash flow to Harrisburg does not stop.

Governor Wolf’s budget does not address any cost cutting, expense controls or efficiency projects  – Governor Wolf’s budget is very simple – RAISE REVENUE THROUGH MORE TAX REVENUE.

It is the goal of the PA State Senate to have a balanced budget without tax increases completed by June 30th to be sent to the Governor.

Let me be clear – Harrisburg does not have a revenue problem – it has a spending problem.

Prevailing wage mandates on public school districts, out of control benefit costs, and zero accountability for money being spent are a few examples.

I will be a NO vote on any tax increases – we MUST address the expense side of Pennsylvania Government first.

Governor Wolf continues to beat his drum that he wants to DUMP (and I use the word DUMP) $1 billion  in the public school system.

I am in total agreement that education for our children is the number one priority – the public school system has many components that need to be fixed, changed or eliminated before a billion dollars is thrown at the problem.

In the private sector, throwing money at a problem without stopping the leak that is causing the problem is called throwing money down a black hole.

Until the structural problems in the public school system are fixed – the $1 billion  that Governor Wolf wants to throw at the problem – the money will disappear – next year and every year to follow there will be some group who will be asking for more money to be DUMPED into the public school system.

Enough is enough !

Sen. Wagner represents Pennsylvania’s 28th District.

Pa Stays Open If Deadline Missed

Wagner Sees Little Chance Of June Budget Passage

By Sen. Scott Wagner Wagner Sees Little Chance Of June Budget Passage

Many people are asking me whether I see Governor Wolf’s budget being passed by June 30.

I entered the Pennsylvania State Senate in April of last year, and by that time the majority of the budget process had already taken place, so this is my first real experience with the budget.

This year is also different because I serve on the Senate Appropriations Committee.

I attended 33 of 35 appropriations hearings in March and April with agencies and entities affected by the budget.

This is my prediction – unless lightning strikes the Capitol in Harrisburg I do not see the budget being passed by the June 30 deadline.

Governor Wolf’s budget asks for various tax increases totaling $4.5 billion  for the next fiscal year and $4.5 billion  for the following year for a two year total of $9 billion.

Governor Wolf’s budget does not address any dramatic cost saving initiatives.

The best example of “PA Government Gone Wild” would be benefit costs for public sector employees.

When I identify public sector employees, I am referring to both union and non-union public sector employees.

Benefits for public sector employees are running at a minimum of 60 percent and up to 97 percent for benefits on one dollar of payroll.

The private sector generally runs in the range of 40 percent for benefits for each dollar of payroll.

We have come to a crossroads in Harrisburg.

For at least 25 years, people have been running the State of Pennsylvania with little knowledge of how a budget is balanced in the real world – wage and benefit increases were handed out like they were candy –  public sector union bosses have been demanding more wages and benefits for their members, at the expense of the taxpayers.

From my point of view, virtually every public sector employee is doing well with wages and benefits.

When Senate Bill 1 (Pension Reform) was in the process of being passed two weeks ago my Senate office received over 250 emails from teachers bashing the bill.

Trust me folks – teachers are also doing well – teacher salaries in my home school district average between $85,000 and $90,000 per year for 180 days of work –plus great benefits too.

Governor Wolf wants to dump $1 billion  into the public school system but is unwilling to entertain a discussion to eliminate prevailing wage mandates on public school district projects.

By public school projects, I am referring to new building construction, building renovations, maintenance and repair projects.

The elimination of this ridiculous mandate might very well save $200 – $300 million per year for school districts throughout the state – that is 20-30% of the $1 billion  Governor Wolf is proposing to put into the public school system.

What do my readers think – Am I right or wrong on prevailing wage mandate elimination for school districts?

A few weeks ago I reported in an email blast the outrageous pensions being paid to retired Penn State employees.

During an appropriations hearing almost two months ago I asked the President of Penn State for a balance sheet to be supplied to the appropriations committee so we could understand how much cash they are sitting on – as of today we have not received the information requested.

Penn State could be sitting on billions of dollars for all we know – so here is my question – if outrageous pensions are being paid – plus Penn State has one of the most valuable football franchises in the nation – Why is the State of PA going to give Penn State $400 million  for this upcoming fiscal year – am I right or wrong on this question?

I have a simple suggestion – Why doesn’t the State of PA go to a zero-based budget each year?

It is time to start over and clean out 25 years of excessive costs and stop the mentality that money grows on trees and there is an endless supply.

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

Wagner Sees Little Chance

Senate Passes Pension Reform

The Pennsylvania Senate, this afternoon, May 13, passed SB 1 which would change the  plans for  those in the Public School Employees’ Retirement System (PSERS) and State Employees’ Retirement System (SERS) into defined contribution ones akin to the 401Ks most of us have. Senate Passes Pension Reform

The vote was 28-19 with Stewart Greenleaf of the 12th District being the only Republican voting nay. Dominic Pileggi of the 9th District, who it was surmised would vote against the bill, wound up supporting it.

Not voting were Pat Browne (R-16) and Anthony Williams (D-8).

The bill was introduced May 8 with Jake Corman (R-34) as the prime sponsor.

It now goes to the House.

The reason for the need is explained in the bill’s first section:

Pennsylvania’s retirement systems, SERS for State employees and PSERS for school employees, together have an unfunded liability of $60,121,184,000. The level of payment by the Commonwealth and school districts required to annually address these amounts is staggering, particularly when other state revenues are reduced due to a struggling economy. The current condition of Pennsylvania’s unfunded system combined with the State’s structural deficit threaten the financial well-being of current and future public employees.

In order to fully fund State pensions systems, economists estimate that contributions will continue to require a significant portion of state revenues. In fiscal year 2015-2016, pension expenditures are expected to exceed $4,800,000,000 and $7,300,000,000 by 2025.

The tax increases that would be required to address increasing pension obligations would place a heavy burden on the citizens of this Commonwealth and hamper the ability to provide them with services vital to the public’s health, safety and welfare. Therefore, it is imperative that the Commonwealth adopt reforms that will maintain the financial health of the Commonwealth and its school districts.

Therefore, the reforms contained in this legislation are intended to use resources judiciously and enable the Commonwealth to provide retirement security for Commonwealth and school employees while reducing the burden on taxpayers.

The reforms of the retirement benefits of Commonwealth and school district employees contained in this act are prospective and will not impact benefits earned from services rendered prior to the effective date of this act

Senate Passes Pension Reform

Pileggi Mask Comes Off On Pension Reform

Pileggi Mask Comes Off On Pension Reform
A switch by Sen. Dominic Pileggi on pension reform would certainly explain why the PSEA is pushing for him for Delaware County Common Pleas Court judge in the DEMOCRAT Primary.

State Sen. Dominic F. Pileggi is now actively opposing pension reform, we have been told.

The former Majority Leader who represented the 9th District since 2002 had long given lip service to the need but as he is now on the outs and looking for a Common Pleas Court judgeship, the mask has been removed.

Why?

Was it sour grapes at those who removed him from power? Or was it a a ploy for the registered Republican to win on the Democrat primary ballot for his judicial race hence obviating a campaign for November? Judicial candidates are allowed to cross file in Pennsylvania.

If the latter, it appears to be effective.  He has gotten a rousing endorsement from the PSEA, the teachers union that is biggest obstacle for real reform. The union is asking Democrats to vote for him.

But does it matter? To fail to see the need for drastic changes to our public pension system is political malpractice at the highest level. It is the very definition of injustice to ask a working class homeowner to ante up another thousand or two so someone can keep a $477,591 public pension.

How can anyone be so callous as to be unwilling to fight this corruption?

Pileggi Mask Comes Off On Pension Reform

 

Pedro Cortes Ignored Gosnell

Gov. Tom Wolf’s nominee for Secretary of the Commonwealth will face the Pennsylvania Senate’s State Government Committee at 11:30 this morning, May 12 and Pedro Cortes has serious baggage. Pedro Cortes Ignored Gosnell

Among the agencies for which the post is responsible is the Bureau of Professional and Occupational Affairs which certifies doctors and makes sure they maintain standards.

Cortes had been Commonwealth Secretary under Gov. Ed Rendell from 2003-2010. He pointedly looked the other way while Kermit Gosnell committed his atrocities despite being fully empowered to step in and stop them. He does not deserve a second chance.

The Delaware County Patriots note that the 9th District’s Dominic F. Pileggi, who represents much of Delco, is the committee’s vice chairman and is expected to be a swing vote. They ask that he be contacted and encourage to deny Cortes a second chance.

He can be reached at 717-787-4712 or by email here.

Pedro Cortes Ignored Gosnell