Harrisburg Shareholders Report Is Bleak

Harrisburg Shareholders Report Is Bleak  By Sen. Scott WagnerHarrisburg Shareholders Report Is Bleak

I would like to give everyone an end of year report on Harrisburg and some observations I have made since I joined the PA State Senate in April of 2014.

My belief as a private sector business owner is that it is critical to tell people what they need to hear, not what they want to hear.

In other words, this is my report to the shareholders of PA.

I have 35 years experience in the private sector so I feel I have a high level of common sense.

I tell people I have been in the Harrisburg sausage factory for 20 months.

I have searched high and low to find the health department inspection report to tell me when the last health inspection took place (I think it has been some time since the last health inspection – possibly over 25 years ago).

Sausage routinely drops on the floor in Harrisburg.

The standard practice is to pick up the sausage on the floor and put it back on the packing line.

What the heck…. no one will notice.

For almost 40 years things have been done in Harrisburg the same way – so why change?

Or more simply put…..Harrisburg is a rudderless ship without a real captain.

In the private sector business world the owner is usually in the building – this is not the case in Harrisburg.

I want to be clear to everyone……people from both political parties are responsible for the current mess in Harrisburg.

There are countless things that are simply wrong.

For example, there are almost 1,000 people receiving annual state pension payouts that are over $100,000 per year ………..in fact the top two pension recipients are both former Penn State Administrators.

The top person receiving a government pension gets $477,000 per year.

The number two person receiving a pension gets $455,000 per year.

Even more disturbing is that of the top 25 people on the list of almost 1,000 people receiving annual state pensions of $100,000 or more per year, 13 are former Penn State employees.

This year’s budget is expected to give Penn State – $263 Million Dollars.

Last year Penn State received $214 Million Dollars.

The current practice in Harrisburg is to give Penn State more money each year so the fat cats get fatter.

Does anyone see this as simply wrong?

Here is another example – In the last 12 months two former Senate employees left the Senate and cashed in on unused vacation days, sick days and personal time – the first person walked away with a check for $112,000 and the second person walked away with $110,000.

In the private sector business world most companies have a use it or lose it policy.

Does anyone think this policy is being abused and wrong …….and should the current Harrisburg policy be stopped?

Everyone is watching the current budget disaster.

In this year’s budget, the Philadelphia school district will receive $101 Million Dollars more in funding than they received last year.

I can absolutely guarantee you that not one nickel of the additional $101 Million Dollars will find its way into the classroom.

Did you know that Philadelphia school teachers do not pay anything toward their health insurance?

In the private sector business world most employees pay 23 -25% of their monthly health care costs.

Some private sector employees pay more than 25% toward their monthly health care costs.

The additional $101 Million Dollars going to the Philadelphia Schools will get sucked up by rising health care costs and wage increases and step up salary adjustments that the union will demand.

Of course the rest will go toward pensions…..simply put….. the children in Philadelphia that this money is to help….. …..get shafted once again!!

Harrisburg has given truckloads of money to Philadelphia Schools over the last 12 years.

Have the drop-out rates fallen? Have graduation rates risen? The answer is NO!!

For almost 30 years I have collected phrases that have been helpful to me in business.

Here are a few – if only they could be applied in Harrisburg.

1. My Favorite – “Align your expectations with reality”.

2. “You don’t know what you don’t know.”

3. “If it doesn’t get measured – It can’t be managed!”

4. “If you don’t give enough attention to what deserves attention – at some point it will take a lot of attention.”

No one takes ownership in Harrisburg – why would they – it’s just a job.

There is zero accountability.

When I say you don’t know what you don’t know, it applies to many people in the Capitol who come out of high school or college and got a job in government without any real world experience……it also applies to many elected officials.

These same people are inside the Capitol cooking up regulations and policies.

These same people are working on the budget and calculating tax increases.

These same people have never experienced a recession in the private sector business world when major cutbacks and decisions had to be made to survive and not end up in bankruptcy.

On measuring – I can tell you this – not ONE single thing is measured in Harrisburg like we do in the private sector business world.

Harrisburg is a monster that will continue to eat money by the truckloads and will get fatter if we continue to feed it!

I have been through at least five recessions over my private sector business career – surviving a recession meant cutting expenses and making tough decisions including layoffs of personnel – it was not a time when price increases could be passed on to customers.

Harrisburg needs to…..and must go on a diet.

The time is now to trim the trees in Harrisburg.

Everyone talks about corruption, disclosure and conflict of interest in Harrisburg – here is an example of one of the worst cases and it is state wide.

In PA we have 500 school districts.

Each school district has an independent volunteer school board. Most school boards have nine members. These school boards negotiate wage increases, benefit increases and finally the same school boards set the step up program.

What is the step up program? It works like this.

– A teacher comes out of college and receives a starting salary of approximately $50,000 per year
– This teacher needs additional education credits to advance their career
– The number is around 24 credits
– As credits are earned the teachers annual salary goes up

In my home district after filing right to know requests, I discovered one teacher who started with an annual salary of $50,000 and within five years earned all 24 credits and fast tracked to a $90,000 annual salary.

And by the way the costs for the extra credits are paid for by the school district.

I will wrap up on this point.

As I mentioned earlier most school boards have nine board members. I can guarantee you this – at least one third of the members and maybe up to two thirds of the members on the school boards state wide are either teachers, married to a teacher, have children who are teachers, or have a brother or sister who are teachers.

The PSEA (Pennsylvania State Education Association) has a tremendous amount of power and influence in Harrisburg……they have been very clever to make sure that friends of teachers are loaded on school boards across PA.

Does this smell like corruption and conflict of interest to you?

You tell me….
Sen. Wagner represents the 28th District in the Pennsylvania Senate.

 

Harrisburg Shareholders Report Is Bleak

Chesapeake Energy Bankruptcy Seen With Tax

Chesapeake Energy Bankruptcy Seen With TaxBy Sen. Scott Wagner: Chesapeake Energy Bankruptcy Predicted With Wolf Tax

Last Friday, Dec. 4, PennLive.com published a story titled “Severance Tax ‘100 percent guaranteed’ to be in next PA budget, Wolf policy secretary says”.

I have a prediction that Governor Wolf and his policy secretary, John Hanger, might find interesting.

I consider myself to be a fairly qualified and experienced investor – I regularly go on Yahoo Finance and check out financials and news of public companies.

Here is my prediction: I predict that Chesapeake Energy (NYSE Symbol – CHK) will file for bankruptcy protection within the next 12 months.

Here is my reasoning:

#1 Natural gas prices are at historic lows – natural gas companies are not able to cover their fixed costs and cover debt payments at the current price – to simplify this – if gas is selling for $2  per gallon and your fixed costs are $3  per gallon the company is losing $1 per gallon, and as a result the company will burn through massive amounts of cash quickly – in business when you run out of cash – you have a HUGE problem.

I researched Chesapeake’s most recent financials – just in the quarter ending September 30, 2015 – their third quarter revenue was $2.893 billion   – after paying ALL expenses they lost $4.695 billion  – that means just in the third quarter alone Chesapeake would have burned through $1,802 billion  of cash. They cannot continue at this rate. Chesapeake will run out of cash.

#2 Natural gas pricing is not going up for quite some time because the natural gas supply is far GREATER than demand – in addition, there are almost 1100 gas wells in PA that have been drilled, and are capped, and are not producing gas. Almost all of the 1100 wells do not have pipe lines in place to carry the gas to the main transmission line so there is still a lot of infrastructure that needs to be installed. This infrastructure costs money. Gas companies do not have the cash to install these pipe lines at the current low natural gas prices.

#3 Another large issue is that oil and natural gas companies routinely hedge their prices to protect for a price collapse – this is a type of insurance – typically these hedges only go out for two years. In simple terms, many of the natural gas companies had hedges in place when prices were a lot higher that paid them double or triple the current market rate for their gas supply. When prices are as low as they currently are, hedging is not an option.

#4 Chesapeake Energy had a class action lawsuit filed against them last week by Pennsylvania landowners because they are deducting from royalty payments the cost to transport the gas from the wellhead to the main transmission line.

Many landowners  receive zero royalty payments after Chesapeake deducts the transport costs, and some land owners have received invoices to back bill for prior years transportation costs.

The class action lawsuit will be settled for cash that Chesapeake is running out of.

#5 If you are familiar with stock market investing there is term called margin. This term means that you can buy a stock for cash and the brokerage house will lend you money to buy more stock – this is called buying stock on margin. SEC rules do not allow a stock to be purchased on margin if it is under $5  per share. Last Thursday at the close of the New York Stock Exchange, Chesapeake stock closed under $5  per share. This means that any investor who used margin or borrowed money to purchase Chesapeake stock had a margin call which is a demand to sell the stock immediately so the loan is repaid. When a stock drops under $5  per share large investors flee. Investors will shy away from Chesapeake because their future does not look good.

This morning as I am writing this  ( 10:10 a.m. Dec. 7) Chesapeake stock is trading at $4.17 per share, down almost $.40 since the open of the stock market.

Chesapeake is one of several companies in Pennsylvania that are choking financially because natural gas prices are so low – there may very well be more companies than just Chesapeake Energy that will be forced to file for bankruptcy protection.

So what is my point? It’s this:  Governor Wolf ran his campaign for Governor telling everyone that he was going to get $1 billion dollars in severance taxes from the natural gas companies. With  current natural gas prices a severance tax would yield $100 million dollars at best.

There is currently an impact fee – tax in place – so the severance tax would cost the gas companies more money, which they do not have.

The reality is that the gas companies will pass any taxes on to consumers – which means YOUR gas bill will go up if there is a severance tax imposed.

Don’t believe me?

Read York Daily Record’s latest article, “Columbia Gas Gets Smaller Rate Hike Than Sought” which talks about the gas company passing on the costs.

And by the way, this morning the price for a barrel of oil dropped under $40 – it is currently at $38.71 at 10:20 a.m..

Oil companies are facing the same challenges as the natural gas industry because the price of oil is at historic lows.

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

Chesapeake Energy Bankruptcy Predicted With Wolf Tax

Katie McGinty Experience Described

By Scott WagnerKatie McGinty Experience Described

Every now and then there comes a time when I must stand up for a friend who is being attacked because of someone’s political agenda.

I consider Senator Pat Toomey a friend and a colleague.

Senator Pat Toomey is being attacked by Katie McGinty, a candidate who is running for the Democratic nomination for the United States Senate representing Pennsylvania.

Every day, I receive at least two emails from Katie McGinty’s campaign either attacking Pat Toomey or asking for a campaign contribution.

I know both Senator Toomey and Katie McGinty personally.

For six years I served on the board of a privately held company in South Central Pennsylvania – during my time on that board Katie McGinty was a colleague and served for two years.

In the two years she served on the board, she brought no value or ideas to assist the company in her board position.

Katie McGinty is the same person who, just last year, had an unsuccessful run for governor and was hired by Governor Tom Wolf to be his Chief of Staff.

I had many conversations with Katie during her tenure as Chief of Staff to Governor Wolf.

Katie McGinty is a climber – always looking for the next opportunity instead of taking ownership of what she’s already responsible for.

In addition to the less than impressive interactions I had with Katie in the private sector, Katie has a failed candidacy for governor under her belt, Tom Wolf then made a job for her as his Political Action Committee Chair on June 14, 2014 which she served briefly as until Tom Wolf once again gave her a job as his Chief of Staff on November 10, 2014, Katie McGinty then resigned from her position on July 22nd – 22 days after Governor Wolf vetoed a responsible budget sent to him by the House and Senate.

Click here for a link to an article on PennLive regarding her resignation –
http://www.pennlive.com/politics/index.ssf/2015/07/gov_wolfs_chief_of_staff_resig.html
It is my opinion that Katie McGinty is at least 1/3 responsible for the budget mess that we are in now and partially responsible for the budget veto.

As Governor Wolf’s Chief of Staff, Katie McGinty would have been the first person in line advising Governor Wolf to veto the budget sent to him on June 30, 2015.

Katie McGinty’s continued campaign attacks on Pat Toomey are without any merit.

Katie McGinty does not have a clue that the Environmental Protection Agency (EPA) is waging an all out war on the coal industry which is effecting thousands of coal miners in Western Pennsylvania.

Effectively, the EPA has waged a war on industrial America.

Katie McGinty is attacking Pat Toomey – someone who has stood up for American citizens repeatedly during his time in office.

In the last two weeks, two people I know have received their health insurance renewal pricing for the 2016 year – the first person with a college age child is seeing their premium go from $720 to $1195 per month.

The second person is seeing their family coverage go from $1028 per month to $1750 per month.

Both people have opted to use high deductible insurance plans to keep their monthly premiums at a range that is affordable.

Millions of people are being negatively affected by Obamacare and their monthly health insurance premiums are sky rocketing.

Senator Pat Toomey voted against Obamacare.

What is even more disturbing to me is in the wake of the bombed Russian airliner and the ISIS attacks in France that claimed the lives of countless innocent victims, is how anyone in their right mind could have supported and endorsed the Iran Deal – yet Katie McGinty endorsed the Iran Deal on September 9, 2015.

Katie McGinty has been pounding the pavement attempting to gain every union endorsement she can receive.

In addition, in the last two weeks Katie McGinty has added raising the minimum wage to $15 per hour as another one of her campaign platforms.

I am sorry if this  is perceived as a personal attack on Katie McGinty, but the public needs to know who the real Katie McGinty is – an extremely liberal candidate who failed in her candidacy for governor and does not deserve to serve as a United States Senator.

I am very concerned with the direction of our country – the last seven years of President Obama’s presidency has set America back 30 to 40 years.

In closing, I fully support Pat Toomey and, as my friend, I stand by him.

Pat Toomey is a United States Senator who cares deeply about America and Pennsylvania.

I will not and cannot stand by and watch a candidate who is uninformed and not qualified for the position of a United States Senator take shots at my friend.

I hope you will do the same.

Katie McGinty Experience Described

SB76 End Run Failure Explained

By Sen Scott Wagner SB76 End Run Failure Explained

After much debate and discussion on Monday in the Senate caucus, Senator Dave Argall later on the Senate floor offered an amendment to House Bill 683 that contained language that was similar to the language in Senate Bill 76.

The amendment was voted on by the full Senate – the vote was 24 – yes votes ( 18 Republicans – 6 Democrats ) and 24 – no votes ( 12 Republicans – 12 Democrats)  – Lt. Governor Stack cast the tie breaking vote of no – so the amendment failed.

While the no vote might be viewed as a defeat – I see progress – # 1 – the issue of school tax elimination made its way to the Senate floor for a vote – I personally, along with other Republican Senators, had many unanswered questions but I voted yes to get the ball on the field – I give our Senate Majority Leader Jake Corman credit for allowing the amendment to the Senate floor for a vote – # 2 – I am reaching out to many of the Republican Senators who voted no to ask what their concerns and reasons for voting no were.

The reasons for the no votes by some of my Republican colleagues are understandable and deserve a chance to be addressed.

Some of the reasons I heard from my colleagues who voted no on the bill were as follows:

– No cost containment is taking place in the schools – increasing wages and benefits, not tied to CPI Index
– Cannot support raising the sales tax to 7% when their Senate district borders Delaware where there is zero sales tax
– Issues with how the funds controlled by the state would flow to their school districts

Another large issue is the current “Hold Harmless” agreements– this means no school district would receive less funding next year than they received the previous year – some school districts are receiving $8-10,000 per student and some districts receive $20-25,000 per student – we need to completely rework the funding formula.

I am fully aware of the school property tax burden on many working families – I am also a private sector business owner.

When I received the tax rates proposed in the amendment on Monday I did a back of the napkin calculation of what the increased personal income tax and sales tax would cost my company and me – the result would be a minimum of  $200,000 per year (personal income tax and sales tax) – I am watchful of how the new taxes that are intended to eliminate school taxes on real estate would also impact businesses.

My calculation for the increased taxes my company and I would pay are the gross taxes that would apply –  we would see eliminated school taxes of approximately $60,000 on our various properties, which I would deduct from the additional taxes, but at the end of the day the increased tax impact would be in the $140,000 per year range – I am also aware that any additional sales tax that my business would pay would be deducted as a business expense and would reduce our federal tax liability.

For readers who understand different tax categories, my company is a Sub-S Corporation so pass through income would be taxed at the higher rate.

I can assure you of this point –  the “Property Tax Ball” is out on the field and is not going away – until it gets resolved.

This past April I circulated a memo proposing a piece of legislation called the “Taxpayer Fairness in Compensation Act” asking for co-sponsors.

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

SB76 End Run Failure Explained

SB76 Free Lunch Not

By Sen. Scott Wagner SB76 Free Lunch Not

This week has been busy with many people visiting my Senate office in Harrisburg and many emails received regarding Senate Bill 76 – The Property Tax Independence Act.

If SB76 is passed it would eliminate school taxes on all real estate.

To be clear – local county and municipal taxes would remain in place.

The elimination of school taxes would apply to all real estate in Pennsylvania – residential, commercial and industrial.

To completely eliminate school taxes on real estate in PA the legislature has to find between $12-14 Billion Dollars of revenue from other sources.

Other sources mean new taxes, increased taxes, and lifting exemptions on goods or services not currently taxed.

There is no free lunch – money is not falling out of the sky – so everyone has to have realistic expectations.

I have been a private sector business owner for over 35 years and I learned over 20 years ago this bit of wisdom from a business associate – “Begin with the end result in mind.”

So here is how we begin the task of eliminating school taxes on real estate – we have to identify the actual dollar amount that is needed to cover the school tax elimination – that is the easy part.

Here is the hard part of SB76 – we currently have 500 school districts in PA – each school district has a school board – to be clear there are 500 different school boards that are comprised of volunteer board members.

Each school district negotiates teacher contracts for wages and benefits without any input from the legislature.

Currently there are many school districts renewing teacher contracts with annual salary increases of anywhere from 2% to 3.5% increases – these increases are being given in a period when the CPI index is less than 1%.

The private sector business world is seeing dramatic health insurance increases – in the private sector it is customary for employees to pay for between 20% and 30% of their monthly health insurance costs.

In the Philadelphia School District teachers pay zero toward their health insurance – many teachers throughout PA pay a lower percentage toward their monthly health insurance costs than private sector workers.

We still have not fixed the pension crisis in PA.

Prevailing wage mandates are still required for construction and maintenance projects at school districts.

In my own school district in York this past summer the school district replaced roofs on several buildings – the school finance director requested two bids to replace the roofs, the first bid required using prevailing wage labor and the second bid did not require prevailing wage labor.

The prevailing wage labor price was $2.8 Million Dollars – the non-prevailing wage price was $2.2 Million Dollars a difference of $600,000 – Six Hundred Thousand Dollars – the district had no choice but to award the contract using mandated prevailing wage labor.

I call school districts the “Hungry Monster” that needs to be put on a diet – until we solve salary and health insurance increases – SB 76 will be a disaster – we MUST get school costs under control first.

Another very large issue with school boards is that I estimate that between 25% and 50% of volunteer school board members are married to a teacher, have a son or daughter who are teachers, the board member may be a teacher at another school or the board member may have been a former teacher – My point is that there is a large amount of conflict on school boards – these conflicts must be resolved and eliminated.

The conflict of interest on school boards is similar to the fox guarding the chicken coop.

So here is the dilemma that I face when voting on SB 76 – have spiraling costs been contained or eliminated – and where is replacement revenue coming from?

Here is another bit of wisdom I heard over 20 years  – “Align your expectations with reality.”

In reality the SB 76 issue is front burner for everyone – it must be done correctly or three years from now what was a good intention will explode.

That leads me to my closing comment –  “I am a person that will tell you what you need to hear – not want you want to hear.”

SB 76 must be done with great thought, planning and precision – My colleagues in the Senate are committed to getting this issue to the finish line.

I intend to vote for SB76 but it is important that it be done properly and not just jammed through.

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

SB76 Free Lunch Not

Wagner Explains Budget

Wagner Explains BudgetBy State Sen. Scott Wagner

A week ago (Nov. 3) voters across Pennsylvania elected three new Pennsylvania Supreme Court Justices to the PA State Supreme Court.

The three new Justices elected were all Democrats – many parties consider this a blow to the Republican Party – Philly.com reported that as much as $16 million was spent on this race.

In reality, the Democrats raised approximately three quarters of the $16 million – the majority of the money the Democrats raised came from unions and trail lawyers – the Republican candidates were outspent four to one – the Democrats resorted to many negative and inaccurate ads about the Republican candidates.

The PA State Supreme Court is now five Democrats and two Republicans.

This week is a new week – it is time to move on.

I would offer this advice to the new Justices – you can either choose to be a mediocre Judge or be a great Judge.

To be a great Judge will require you to not be influenced by unions and special interests – history, your actions and decisions will judge you.

The election also added a 31st Senator to the Pennsylvania  Senate – Republican Guy Reschenthaler won a seat representing the 37th Senate District (Pittsburgh Area).

The  State Senate is now 31 Republicans and 19 Democrats.

When the  State Senate reaches 34 Republicans we will have veto over-ride power over the Governor – I predict that will occur with the 2016 elections.

The Republican Party is strong in the Pennsylvania House and Senate – Republicans continue to gain seats in both chambers.

Second Subject:

On Oct. 19 The Wall Street Journal published an op-ed titled “Washington’s Revenue Windfall.”

An op-ed could be written about Pennsylvania that would be identical to the Washington article.

It boils down to this  –  “Give government more money and we can be guaranteed they WILL spend more money.”

I continue to pound on the table that “Harrisburg does not have a revenue problem – it has a spending problem.”

I serve on the  Senate Appropriations Committee – as a member I am supplied massive amounts of financial information.

The two most important lines on this report – Sales and Use Tax, and Personal Income Tax tell the revenue story.

The General Fund Summary shows that the 2013-14 year had $28.6 billion  received – from 2013-14 to 2019-20 (estimated) each year has $1 billion  or more being added in revenue.

Personal income taxes and sales taxes continue to grow each and every year.

What does this mean?

It means wages are going UP, so people are paying more income taxes – last month at one of my companies we purchased a new Chevrolet Silverado pickup truck – the final price was $43,000 – sales tax of 6 percent was assessed ($2,580), I went back to 2005 at the same company and pulled the invoice for the same model truck purchased in 2005 for $29,000 and sales tax paid was $1,740.

The price of the truck purchased in 2005 went up 50 percent over a 10 year period and the sales tax went up almost 50 percent over 10 years – the sales tax increase is approximately 5 percent per year – the rate of inflation from 2005 to 2015  was anywhere from 1 percent to 2.5 percent per year – in fact, the 2008 year had negative inflation.

It is important to note that Harrisburg has a number of expenses that are eating money like a monster – pensions and healthcare – currently there is no end in sight – below is an expense summary.

Harrisburg only understands two words – “more money” – not the same – not less, but always “more money.”

Governor Wolf has not presented one single idea or initiative to reduce waste or spending.

It is time to have a financial day of reckoning in Pennsylvania – we need a Governor who has the guts and backbone to put Harrisburg on a serious diet – Tom Wolf is not the man for the job.

I have been meeting with and having conversations with non-profit leaders over the last several weeks – they are running out of money, many are on their lines of credit.

The general fund budget for the 2014-15 year was $29.1 billion.

The budget presented to Governor Wolf by the Republican House and Senate for the 2015-16 year was for $30.1 billion , an increase of $1  billion.

Governor Wolf wanted a budget passed of $33.5 billion, an increase of $4.5 billion.

The $1 billion increase over last year’s budget is an increase of 3.5 percernt – the current rate of inflation is almost flat.

Here is another fact – From July 1 until Oct.  31, the state has collected $8.9 billion  in various taxes, and this money is sitting in the state’s bank account earning virtually zero interest.

As a result of the budget impasse, entities across Pennsylvania are forced to borrow money, which may be approximately $2 billion  as of Oct. 31.

The monthly interest cost to borrow $2 billion  is approximately $6 million  per month borrowing at the prime rate of 3.5 percent.

I have been a private sector business owner for over 35 years, so I consider my experience in finances to be strong.

The budget impasse and the pain that everyone is feeling is because of one person’s ego, and that is Governor Wolf.

I voted for a responsible budget on June 30  – to be clear I will not be voting for any tax increases – it is time for accountability for the money we already send to Harrisburg.

Sen. Wagner represents the 28th District.

Ed note: Yesterday, Nov. 10, State Rep. Mike Vereb posted this on Facebook:

So by now you have heard there is framework agreed to on the budget. I caution that framework means the parties agree on major issues but the next 72 hours are important to keep it together. I myself am not committing either way and will await more details. So far we know they want to increase the sales tax to 7.25 from 6 on items already taxed. They also want to add to the cigarette tax as well as tax e cigarettes and hand rolled cigarettes. In exchange there is also framework on pensions and property tax relief (not elimination which I favor and apparently liquor modernization. That’s what I know tonight. More details to follow. Because of house and senate rules, if a bill was ready to go tonight, it will still take two weeks to get it to the governor. As of right now I favor overriding the Govs veto if the democrats would come on board. But again when more details become available I will let you know.

 

Wagner Explains Budget

Unions, Trial Lawyers Push Dems In Court Race

Unions, Trial Lawyers Push Dems In Court RaceBy Sen. Scott Wagner

Three seats on the Supreme Court are up for election and it is extremely critical for the Republican Party to maintain control.

I highlighted on Oct. 7 how important this race is and now I will show you why.

Union contributions to the three Democratic candidates ($2.1 million of their $5.9 million total) equal about $500,000 more than all contributions to Republican candidates.

It is important to note: The “Committee for a Better Tomorrow” – which is the Pennsylvania Trial Lawyers Association’s political action committee contributed $375,000 to the Democratic candidates in comparison to the $10,000 they gave to the Republican candidates.**

I have been reporting over the last two years that the public sector unions are choking off any meaningful reforms in Harrisburg.

It is imperative for everyone to understand that even if we have a Republican majority in the Senate, House, and a Republican governor, any meaningful reforms we pass over the next 20 years could be challenged and overturned.

Do not expect pension reform or property tax reform to be passed if the Supreme Court has a Democratic majority because someone could file a legal action and challenge the reforms.

A similar situation recently happened in Illinois – the Governor of Illinois signed pension reform legislation in 2013 which was overturned this year by the Illinois Supreme Court.

The union influence in Harrisburg is staggering and it is the number one reason why we cannot get financial reforms passed.

I cannot reinforce enough how critical it is for you to get out and vote on Tuesday, Nov. 3.

While there are other important races on the ballot, this is the most important race we will see in our lifetime.

Judges on the Supreme Court serve for 10 years and then they can run for retention – another 10 year term – which is a simple vote and judges rarely lose retention.

We must rally around our Republican candidates and get them over the finish line on Tuesday, November 3rd!

Please support Republicans Ann Covey, Mike George, and Judy Olson. Click on each of their names to learn more about them.
Sen. Wagner represents the 28th District in the Pennsylvania Senate.

Unions, Trial Lawyers Push Dems In Court Race

Vincent Hughes Part Of Pa. Problem

Vincent Hughes Part Of Pa. Problem. Vincent Hughes is the problem.By Sen. Scott Wagner

This is in response to an email sent out by my Democratic colleague Senator Vincent Hughes (D-7) on Oct. 15 from his official Senate website.

The title of the email was, “Pennsylvania Needs a Budget, So GOP Must Compromise.”

His closing line in the email was “Let them know it’s time to end the political games, and it’s time for them to compromise.”

In my short 18 months in the PA State Senate I continue to be entertained and amused by what Senator Hughes says.

It is important for everyone to know that Senator Hughes has served in the PA Legislature since 1987 – he served in the House from 1987 to 1994, and he has served in the Senate from 1994 to today.

Do you think Senator Hughes has looked in the mirror recently and said to himself, “Wow – I have been in Harrisburg for 28 years – is it possible that I am part of the problem ?”

Do you think Senator Hughes realizes that he has been in Harrisburg for over one-quarter of a century ?

Would you agree that Pennsylvania has a pension crisis?

Does Senator Hughes remember casting his “yes” vote in the Senate on May 8, 2001 for Senate concurrence on House Bill 26 of 2001.

For those who do not know – Senator Hughes “yes” vote increased his own pension by 50 percent, increased other state pension participants by 25 percent, increased his own and others pension multiplier from 2.0 to 2.5, and  the changes he voted “yes” for made his pension changes and others pension changes retroactive back to when he joined the legislature.

In addition, Senator Hughes voted for the infamous midnight pay raise on July 7, 2005 which took place at 2 am without public review or commentary.

Depending on position, the raise increased legislators’ base pay anywhere from 16 percent  to 34 percent.

Senator Hughes continues to beat on the GOP over the current budget impasse.

Several months ago during an appropriations meeting I asked Senator Hughes to respond to the “no bid contracts” that were entered into by the Philadelphia School district that have caused the district to spend approximately $4 Million dollars in legal fees to defend the “no bid contracts”.

I also asked for a response to the “ghost teachers” in the Philadelphia School District who were paid $1.7 Million Dollars in salaries and never stepped foot in the classroom, but in fact were working for the Philadelphia teachers union.

Below are links to each of the news stories referenced above.

No Bid School Contracts Is Costing Millions – http://articles.philly.com/2015-07-20/news/64599372_1_ibs-communications-inc-contractors-eligible-dougherty-case

Philly Ghost Teachers Made $1.7 Million Last Year – http://watchdog.org/213400/philly-ghost-teachers-made-1-7m-last-year/

It seems Senator Vincent Hughes doesn’t want to talk about corruption in the Philadelphia School District – so why should I as a Senator vote for a ridiculous budget when everyone who receives money from Harrisburg should be held accountable first – enough is enough – it is time for accountability and not more money.

How do you feel about the suggestion of accountability?

By the way – I would like to know what Senator Hughes’ annual pension amount will be when he leaves the Senate.

It is time for Senator Vincent Hughes, and many others, to be held accountable for the votes they made in the past which have resulted in the poor financial situation Pennsylvania is in today.

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

Vincent Hughes Part Of Pa. Problem

PSEA Owns Gov Wolf

Scott Wagner (cropped) By Sen. Scott Wagner

I reported in my Oct. 14 email blast that the Pennsylvania State Senate passed SB 501 – Paycheck Protection – to not allow deduction of union dues by state agencies from public sector union employee paychecks for political purposes.

Passing SB501 in the Senate is the first hurdle – the second hurdle is to get it passed by the State House.

Upon passage by the House, SB 501 will go to Governor Wolf’s desk for passage or it will be vetoed.

I have reported repeatedly that public sector unions are controlling Harrisburg, specifically the PSEA – (Pennsylvania State Education Association) – The Teachers Union.

Last evening reporter Mark Hall with ABC27 did a story on the Paycheck Protection issue….and…..who do you think is squawking the loudest…..the PSEA….Not a surprise !

Click here for the full report.

Mark Hall also reported that Governor Wolf does not support SB501 – Paycheck Protection – Not a surprise !

Does anyone remember when Governor Wolf was campaigning and he stated that he wanted more transparency and more government and political reforms?

Governor Wolf accepted large contributions from public sector unions and the PSEA was one of the largest contributors during his campaign for governor.

Fact #1  – Governor Wolf is owned by public sector unions.

Fact #2   – The public sector unions will do anything to protect their gravy train method of collecting dues for political purposes.

Fact #3  – If paycheck protection does not become reality then forget pension reform and property tax reform or elimination.

Fact #4 – The PSEA will put severe pressure on any elected official who has ever accepted a political contribution from them to defeat paycheck protection legislation.

Legislature Passed Budget, Blame Wolf

By Sen. Scott Wagner Legislature Passed Budget, Blame Wolf

It appears that newspaper editorial departments across the state are offering their opinion on the state budget.  Let me set the record straight — the legislature met its obligation to pass a balanced budget by the constitutionally required deadline.

The budget sent to Gov. Wolf on June 3 included $1 billion more for spending than the previous budget.  Gov. Wolf chose to veto a budget that was balanced, did not raise taxes, and provided increased education funding. Notably, two-thirds of the line items were funded at or above the amount that the governor requested.

Gov. Wolf had the power to use what is called a line-item veto — he could have approved approximately 270 items, and he could have vetoed the rest. Instead he has left organizations in our communities scrambling to stay afloat because he insists on a tax-and-spend budget that exacerbates the problem that I continue to call attention to — Harrisburg does not have a revenue problem, it has a spending problem.

Gov. Wolf claimed during his political campaign that he turned around his family business, which meant reining in costs and reducing waste. Unfortunately, we haven’t seen him show a willingness to perform his private sector business magic on Pennsylvania.

Our state is financially distressed and needs a turnaround governor, not a tax-and-spend governor.

I take my role as a state senator seriously. I serve on the Senate Appropriations Committee. I sat through 33 hearings on the budget covering 80 hours.

I have considerable private-sector business experience. The various companies that I own, along with thousands of other businesses in Pennsylvania, continue to withhold weekly payroll taxes from employee paychecks and send those taxes to Harrisburg weekly along with other taxes the companies pay, so the cash flow to Harrisburg continues.

Let me be crystal clear: I will not be voting for any additional tax increases. I will continue to beat on the table demanding accountability for the taxes everyone already pays.

I would ask editorial writers to do everyone a favor and stop blaming the legislature and point the blame to Gov. Wolf.

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

Legislature Passed Budget, Blame Wolf