Sobering Talk Concerning Pa

Sobering Talk Concerning Pa

With Matt Brouillette of Commonwealth Foundation (center) are Whitey Coyne, Lisa Esler, Charles Martini and William Lawrence Sr.

Matt Brouillette, president and CEO of the Harrisburg-based Commonwealth Foundation, one of the nation’s top think tanks, gave a sobering talk this evening, April 28, about what taxpayer activists and fighters of corruption face in Pennsylvania.

He said the reform Gov. Tom Corbett is pushing regarding the state-controlled distribution of liquor is “not about getting the government out of the booze business but giving the appearance of convenience.”

The privatization of the state owned “Wine & Spirits Shoppes” is popular with the populace across partisan lines. It’s not going to happen because it is not popular with special interests who send the bucks to legislators.

On a much more frightening note, Brouillette also said critically needed pension reform is not going to happen either.  He said state workers were “circling the wagons” to stop legislation to change their pension from a defined benefit one to the defined contribution one now the norm in the private sector.

He said the largest state-backed pension funds SERS and PSERS, that handle the retirement money for state workers and school teachers respectively, have unfunded liability of $57 billion and it’s “going up”. He noted that local school districts are on the hook for half of PSERS money so expect massive property tax hikes.

“There is a general lack of will to tackle the pension crisis,” he said. He said the solutions being proposed involve the state cutting its regular contributions and will only make things worse.

“If Republicans controlled the governor, house and senate, we might get some resolutions,” he said. After a pause, he said “You are supposed to laugh at that” the punchline being that the Republicans do have complete control in Pennsylvania.

“It’s not funny,” said a woman in the audience.

Brouillette agreed.

“The Big Government Party is the majority party in Pennsylvania,” he said. “And it has both Republicans and Democrats.”

Brouillette said that is the reason why his group is pushing paycheck protection as the priority.

Paycheck protection is found pending legislation HB 1507 and SB 1034 that ban the use of public resources to collect, bundle and transmit public sector union dues and PAC contributions.

“If an elected official tried to have money automatically deducted from an employees paycheck (to use for a campaign) they would go to jail.”

The PSEA and other government unions can do just that legally and without the employees permission as how to use it.

He said this is the main reason why the Big Government Party is in the majority in the state.

Brouillette says the Republicans are two votes shy in the senate of getting the reforms passed.

Brouillette also said that HB 1154, the bill that would end the allowance for union members to stalk, harass and threaten the use of weapons of mass destruction during labor disputes, was amended in the Senate in a way that supporters in the House fear that it was neutered.

In other matters, support was requested for Megan Rath who is taking on Democrat Congressman Bob Brady in Pennsylvania’s 1st District and for Bob Guzzardi who is running against incumbent Gov. Tom Corbett in the May 20 Republican Primary. Guzzardi, who is also a vocal opponent of Common Core, has made fighting for pension reform a linchpin of his campaign.

Lisa Esler noted that the group will be participating in an NRA Women on Target Instructional Shooting Clinic, June 28, at the Northern Chester County Sportsmen’s Club. The cost is $35 and covers the use of firearms, ammunition, shoot supplies, a t-shirt and goodied bag along with snacks. Call Theresa Reynolds at 610-304-5873 for information or email her at theresa6733@gmail.com

Maria Heider announced that there will a Twitter clinic co-hosted by Americans for Prosperity, 6:30 p.m., June 19, at the Marple Public Library. Call 610-572-3442 for information or to register.

 

 

Read more at BillLawrenceDittos.com for Sobering Talk Concerning Pa

 

Legislator Pensions Unconstitutional?

Roger Howard, who is seeking to be the Republican nominee in the 158th District in the Pennsylvania House, is saying that legislative pensions are prohibited by Article II, Section 8 of the Pennsylvania Constitution and has posted the wording on his Facebook page which we repeat here:

The members of the General Assembly shall
receive such salary and mileage for regular and special sessions as shall be
fixed by law, and no other compensation whatever, whether for service upon
committee or otherwise. No member of either House shall during the term for
which he may have been elected, receive any increase of salary, or mileage,
under any law passed during such term.

Seems pretty cut and dry as pensions are certainly not salary or mileage but are clearly compensation.

Of course, don’t expect a state judge happily in bed with those putting an ever tightening yoke on the state’s taxpayers to agree.

Roger has said he will refuse to take a legislative pension if elected.

The primary election is May 20.

Go Roger!

 

Act 75 Bans Triple Dipping

Gov. Tom Corbett has turned HB 421 into Act 75 of 2013 ending the practice of “triple dipping” by state government retirees who return to work  and then collect unemployment benefits, reports State Rep. Jim Cox (R-129).  Act 75 Bans Triple Dipping

In the past three years of the Obama recession, more than 600 state retirees have temporarily returned to work  only to leave and start collection unemployment. They have collected $2 million in benefits while simultaneously receiving a state pension, says Cox.

“Passing House Bill 421 is another example of the Legislature’s efforts to reform the Commonwealth’s unemployment compensation system to ensure the system is benefiting only those who truly qualify,” said Cox.

Act 75 Bans Triple Dipping
 

Pension Bills Introduced In Pennsylvania

Pension Bills Introduced In Pennsylvania — Governor Tom Corbett was joined by several legislators at the Capitol last week for the introduction of his plan to address rising costs associated with the state’s two public pension systems, the State Employee Retirement System (SERS) and the Public School Employees’ Retirement System (PSERS), reports State Rep. Jim Cox (R-129).

House Bill 1350, and its companion Senate Bill 922, are aimed at providing short- and long-term pension relief, Cox said.

The plan would rebalance the state’s obligations to both pension funds and the General Fund, Cox said. It also would provide short-term budgetary relief to avoid deep cuts in core services and programs. Long-term reforms would produce overall savings to the pension systems.

The legislation contains no changes to current retiree pensions; keeps current employees and retirees in a defined benefit plan; automatically enrolls new employees, including legislators, in a defined contribution plan, similar to a 401(k); and limits the amount by which the state’s employer contributions can be increased to provide short-term budgetary relief.

According to the governor’s budget office, new calculations show the current unfunded liability of SERS and PSERS to be $47 billion. If no reforms are made, pension costs will consume an estimated 60 percent of all new state General Fund revenues in the 2013-14 fiscal year.

 

Pension Bills Introduced In Pennsylvania

Freshman Rep. Plans To Tackle Pa. Pension Bubble

Warren Kampf, a Republican who  is serving his first term as state representative from the 157th District, reportedly has a plan to deal with the public employees pension funds which are short about $30 billion, a circumstance that is expected to cause massive tax increases and/or enormous reductions in services next year or soon after.

This underfunding, by law, has to be made up by  government.

Kampf is proposing on introducing legislation that would shift all new state and public school employees into a defined contribution, 401-K type plan, which would free government from having to make good any shortfalls in expectations.

For new employees anyway.

For the old ones? No.

So would this mean the pension bubble problem has been solved? Even a little bit?

Let’s just say we are trying to be positive about this and clapping our hands when we find a penny in the dog poop.

Europes Pension Bombs Heralds USA’s Future

Europes Pension Bombs Heralds USA’s Future — Reader Tom C submitted links — here and here — regarding “pension bombs”  that are about to further ravage Europe’s already sick economy.

Pension bombs are government-backed pension obligations that are basically  impossible to fulfill.

He says look for that to be America within 18 to 36 months.

And did you see where pharmacists in Greece can’t even supply aspirin much less fill prescriptions?

Europes Pension Bombs Heralds USA’s Future

Corbett Budget Ignores The Termites In The Wall


Gov. Tom Corbett, March 8, unveiled a $27.3 billion budget that would be $900 million less than what the state spent last year.

Fine and dandy. The budget means no tax hike. Of course it also means 1,500 state workers  would lose their jobs, some of which are probably waste but some of which are not.

The thing that is going to be overlooked as this drama moves to the legislature is that this general fund budget which will be the cause of much screeching is less than half of what the state is actually going to spend next year.

Pennsylvania spent $28.2 billion in general fund money last year; $23 billion in federal money, which doesn’t include the stimulus money; and $14.4 billion in special fund money, which is money is directed from sources specified by law.

The special funds included the $2.58 billion for the State Employees Retirement Fund and $5.36 billion for the School Employees Retirement Fund.

You know, if public pensions were maxed at $45,000 probably just about all those jobs could have been saved. Now, someone is going to say that that money is allocated by law. Well, laws can be changed. And someone will say but the legislators are among those getting those nice pensions. Well, legislators can be changed. And someone will say but the judges — who are also beneficiaries of those fat pensions — will overturn the new laws saying the pensions were a holy bargain that may never be abridged. Well, judges can not only be voted from office but they can be impeached as well.

Finally, someone will say it’s just not moral. Well, if someone thinks it’s OK to fund fat pensions to unproductive people by making a widow living on a $20,000 fixed income pay a few thousand more in property taxes, that person has no grounds to voice the word “moral”.


Nunn Can Be Better For Fixing Pa Pension Bloat


A scathing critic of the Pennsylvania State Employees Retirement System (SERS) has been tapped by Gov. Corbett for a seat on its board.

Wally Nunn, the Vietnam vet who chaired Delaware County Council at the turn of the millennium, has called SERS “the pension system from hell,” and has called for revamping just about everything about it from union contracts and policies that call for ever increasing support from taxpayer to bail it out of bad investments.

Oh, and he and he wants to cut future retirees’ pensions which include elected officials.

Nunn is a retired Citigroup SmithBarney bond banker.

Some of the state’s highest salaries go to SERS employees.


Rep. Lawrence Nixes Pension, Per Diems

John Lawrence, the Tea Party Republican who beat incumbent Democrat Tim Houghton in November to represent the 13th District in the Pennsylvania House has declared that he will accept neither per diems nor pension.

“The citizens of Chester County are tired of rhetoric and are looking for action,” he said.  “If we are truly going to reduce the financial burden on taxpayers and get a handle on excessive state spending, then it is incumbent upon me as a lawmaker to lead by example.” 

 

Lawrence advocates replacing the current defined benefit plans for government workers with a defined contribution plan akin to the 401(k) of the private sector.

 

“Under the state pension system, if investment returns suddenly drop, as they have during the past few years, taxpayers are responsible for making up the difference.  The citizens of Pennsylvania should not be forced to fund the pensions of state legislators especially while many individuals have seen their personal retirement savings lose value,”  Lawrence said.

While the state’s pension policy is going to have a far greater impact on the lives of Pennsylvanians — the lame-duck bailout is estimated by Commonwealth Foundation to have a cost per household of  $1,360  per year
the $163 per diem policy for state legislators is a far more glaring example is what is wrong with government in the state.

Don’t forget these guys are already getting a base pay of close to $80,000, a great health plan and, of course, a pension to die for.

Lawrence had earlier said he will not accept the cost of living increase .

Hat tip to Bob Guzzardi.

Rep. Lawrence is no relation to the proprietor of this site.

Pileggi Stays To End In Lions’ Den

Pileggi Stays To End In Lions' DenPileggi Stays To End In Lions’ Den — Pennsylvania Senate Majority Leader Domenic Pileggi (R-9) entered the den that was Avondale Presbyterian Church, Dec. 2, to face about 130 lions associated with Chester County Tea Party groups. He answered generally unfriendly questions without getting flustered then stayed long after the event ended to field more.

The event was sponsored by Coalition for Advancing Freedom .

That’s not to say the questions were always answered completely or clearly.

Pileggi began with a description of what to expect in the next legislative session in which the Republicans will control the state house, senate and governor’s office.  He touched on redistricting which would apply to congressional seats and reapportionment which would pertain to state legislative seats. He noted that Pennsylvania is going to lose one congressman. He then went to describe the budget problems the state faces namely that it spends $28 billion while taking in $23 billion in revenue. He noted that Tom Corbett won the governor’s office on a no-tax pledge which was also taken by many winning legislators.

Expect cuts in spending.

Pileggi said that while Gov. Rendell was a major opponent of school choice Gov. Corbett will be a big supporter. He said to expect a major expansion of school choice, charter schools and related programs.

Pileggi said that the privatization of the state stores will be discussed. He said  Marcellus shale drilling will be a big part of the agenda.

Then came questions.

Several involved principles relating to state constitutional matters. Pileggi, in addressing one of them, said that when he votes it’s with the presumption that what he is voting for is in accordance with the state constitution. He noted that he receives few constituent comments regarding whether a particular bill is constitutional. Regarding  how the state’s unbalanced budgets don’t jibe with the constitutional requirement to have one, he pointed out that budget is based on projected revenue the projection of which, by law, comes solely from the governor’s office, which has quite a bit of leeway to fudge things. He noted in response to a question regarding how out  37 of the 68 House members who voted to call the pension bailout bill unconstitutional then went on to vote for the same bill, that what they were voting to call unconstitutional was a provision placed by the senate to provide for independent analysis of budget revenue projections.

Gossip wise he said several Republican senators carry a copy of the Constitution with them while in the Capitol citing by name Mike Folmer and John Eichelberger.

Pileggi said he kept his copy in his desk.

He took quite a bit of grief regarding the pension bailout and legislative and staff salaries.

It was noted that pension costs to the taxpayer will be rising from $500 million per year today to $6 billion in 2015 to $10 billion in 2030.

“We are here to tell you there is no institutional support from the taxpayers to support the existing scheme,” one man said.

Pileggi said that in the next legislative session the issue will be readdressed and he expects an attempt to turn the program into one of defined contributions for new hires. He noted that this will not help the present tax problem, and said that nothing could be done regarding the benefit for existing employees.

A man who had experience in dealing with pension issues in the private sector, however, challenged him on the matter. He told Pileggi that what normally happens is that the trouble plans are terminated and their assets are distributed to beneficiaries who are then placed in plans with defined contributions.

Pileggi asked to speak to the man after the meeting.

And he did.

Pileggi was confronted with the fact that there were 2,200 staffers for 203 house members and 900 staffers for 50 senators and more than 70 of them have salaries of over $100,000.

“We will reduce the number of staffers,” Pileggi promised. “Absolutely.”

Pileggi, when challenged, said his salary as majority leader was $110,000. He attempted to figure his pension but could not remember the formula. According to Commonwealth Foundation it would be 3.3 percent of his last year salary times years in office. Pileggi took office in 2002 so his pension would be $29,040 as of now.

“I’m not in the position for the compensation,” he said.

Regarding a question concerning teacher strikes, Pileggi said he was against the right for teachers to strike but thought that ending it might be complicated. It was pointed out that, that would not be case as most states do not grant teachers the right to strike and in Pennsylvania the teachers had no such right before 1970, a fact of which he seemed unaware. Pileggi said he would look into it.

He was asked by a union member if he supported “right to work” laws. These are laws that would prohibit requirements that one must be a union member to work at a plant organized by a union. Pileggi ducked it in a way that would give Sugar Ray Leonard a case of envy.

He said it was unfair to make a person pay union dues but it was wrong that a person not paying the dues should get paid the rate of a contract negotiated by the union.

He was asked what he thought of the Tea Party movement.

“I think the Tea Party is fabulous,” he said.

 

Pileggi Stays To End In Lions’ Den