Category: Pennsylvania Governor

Wolf Ego Wasted 6 Months

By Leo Knepper Wolf Ego Wasted 6 Months

On Tuesday (Dec. 29), Governor Wolf used  his line-item veto on the budget lawmakers sent him right before Christmas. He could have and should have done the same thing back in June. However, he was more interested in holding state funding hostage to apply maximum leverage through the negotiation process.

In his address on the line item veto, Wolf continued to repeat the lie that the budget as passed would result in a cut to education funding. First and foremost, Pennsylvania already has the eleventh highest spending per pupil in the country. The argument that taxpayer need to continue to put up more money without seeing any improved results is absurd. However, that is Wolf’s demand; he is more than willing to play fast and loose with the facts and math to make that happen.

During his press conference announcing his decision to exercise the line-item veto, Governor Wolf continued to repeat the lie that the budget on his desk would cut education funding. In fact, as noted by the Commonwealth Foundation the only “cut” one might be able to identify would be the difference in spending between what the Governor wants and what the legislature sent him. When you compare the 2015-2016 budget to the 2014-2015 budget, this year’s proposed education budget outspends last year’s budget when you look at the totals.

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania

Wolf Ego Wasted 6 Months

 

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

ISIS Refugees Pennsylvania Bound

ISIS Refugees Pennsylvania Bound
There is no danger you narrow-minded bigots. At least to me anyway, I live in Harrisburg. Who wants to attack Harrisburg?

Fifteen states — including some of the largest like Texas and Michigan, and the most liberal like Massachusetts and Illinois —have announced that they will refuse to allow the Syrian refugees President Obama is insisting on importing.

Do you know what that means? That’s right MORE FOR PENNSYLVANIA as  Tom “I Don’t Care What You Think, I’m The Governor” Wolf has just declared that the Keystone State won’t turn them away.

Hey they don’t pose any security risk. Really.  LOL. Gov. Wolf fully understands that when it comes to priorities your safety just has to take a back seat to being patted on the head at a wine and cheese fundraiser.

ISIS Refugees Pennsylvania Bound

Wolf Delco Rally Dem Fiasco As Budget Becomes Issue

Wolf Delco Rally Dem Fiasco As Budget Becomes IssueGov. Tom Wolf this Halloween afternoon came to Media, Pa. to try to get a Philly union boss’ brother elected to the Pennsylvania Supreme Court but was instead met with a crowd demanding he  “sign the budget” and “give us books.”

The Democrat rally held on Veterans Square was probably more than half Wolf opponents. At least 100 persons attended.

One protester from Saint Dorthy’s School in Drexel Hill noted that the children have no textbooks and teachers are mimeographing lessons.

Penn Delco School Director Lisa Esler expressed anger and disgust with the governor’s political actions.

“I don’t think it’s fair  or even ethical for state law to require a school district to pass a budget on time, collect our money and then hold the money hostage,” she said.

That’s what your ego has wrought Governor.

The state legislature passed $30.179 billion budget on June 30 that was a 3.6 percent increase over the previous year and would have increased education spending by $100 million.

Wolf Delco Rally Dem Fiasco As Budget Becomes Issue
Little children plead for Gov. Tom Wolf to set his ego aside and get them school books.

Wolf vetoed it.

He also rejected a recent proposal to increase education spending by $400 million if he agrees to liquor privatization and pension reform.

He also has refused to use line-item veto power to make changes that he doesn’t want and, most tellingly, arrogantly refused to sign temporary spending measures.

Wherever one stands on the political spectrum one must be ashamed of this governor and his ego-driven agenda.

Attending the rally with Wolf and those seeking local office were the Dem Supreme Court ticket and U.S. Senator Bob Casey Jr. significantly adding to the embarrassment.

It should be noted that Wolf was the only speaker that got significant grief from the crowd.

Wolf Delco Rally Dem Fiasco As Budget Becomes Issue

 

Family Services Group Sues Wolf

Family Services Group Sues Wolf Think of the children, Governor, and stop playing politics.
Think of the children, Governor, and stop playing politics.

The Pennsylvania Council of Children, Youth and Family Services has filed a lawsuit against Pennsylvania Governor Tom Wolf and the Pennsylvania Department of Human Services seeking to compel them to perform their duty to continue to fund the critical and essential services necessary to care for and protect the most vulnerable populations of this Commonwealth – abused, neglected and dependent children, their at-risk families and juvenile offenders.

The legal action, filed today, Sept. 15, with Commonwealth Court by Lamb McErlane, PC, seeks to ensure that child safety and community protection services are designated as being essential even during budget disputes. PCCYFS, which represents more than 100 private providers of child welfare and juvenile justice services in Pennsylvania, believes that children, youth and their families must be able to access needed and defined services without fear of delay or disruption, even in the absence of state budget decisions.

“Since July 1, PCCYFS has tried to work in a proactive and positive manner with the Wolf Administration to have the state’s child welfare and juvenile justice services designated as essential services to ensure that public dollars flow despite the current budget impasse,” said Bernadette Bianchi, Executive Director of PCCYFS. “Unfortunately the Governor’s Office has failed to acknowledge the Commonwealth’s responsibility to financially support funding for these mandated services. We wish we did not have to take this legal action, but it is necessary to ensure that children, who are entitled to these services, continue to have uninterrupted access to these crucial services.”

“In the vast majority of cases, these child welfare services – which include in-home supports, foster care, and residential placements – are court-ordered. Children requiring placement out-of-their own homes due to abuse or neglect need protection, but the Administration has nonetheless refused to classify these interventions as ‘essential’,” said attorney Joel L. Frank, legal counsel for PCCYFS.

“Juvenile offenders requiring rehabilitation to keep communities safe are also not included on this essential services list,” Frank said. “That the state receives federal money for many of these programs, but the Administration is refusing to make those existing federal funds, or the necessary state funds, available to counties to pay counties and service providers is frustrating, improper and violates a comprehensive federal and state statutory scheme enacted to protect and serve this specific population”.

“The state has a responsibility and a duty to fund these critical, essential programs,” said Alex Rahn, Wanner Associates and Government Affairs Consultant for PCCYFS. “The Administration’s failure to fund these programs – while at the same time claiming that child daycare subsidies are “essential” — is unacceptable and irresponsible public policy. This court action is designed to protect these vulnerable and at-risk populations. We will not stand by and allow the safety of children or our communities to be held hostage in this budget debate.”

Federal and state laws define the entitlements of children who have been abused or neglected. Services to ensure their ongoing safety, as well as the supports to be available to their families, are often also put into court orders. Many of these supports, including programs offered in the child’s home, foster family care and residential placement, are delivered through contracts between counties and private provider agencies. These services are clearly intended to be funded with designated public tax dollars.

Juvenile offenders who have been declared by the court to be in need of rehabilitation are another population of youth with entitlements to interventions. Those youth who present a threat to the safety of their community require placement interventions and are again primarily served through the private provider network. Although funding continues for some youth served in the State Youth Development Centers, services for youth presenting the same behaviors placed in private facilities are not.

Private agency staff are working every day to meet these legal and ethical expectations – many programs are staffed round the clock, seven days a week. The additional pressures of worrying about how to pay for the care, supervision, food and transportation for these children and youth by exhausting agency resources, taking out loans and staff layoffs are an unfair consequence to the agencies committed to this work. These services are absolutely essential to the health, safety, and protection of Pennsylvania’s children, are certainly required by federal and state laws and must be funded. PCCYFS is confident the Commonwealth Court of Pennsylvania will agree.

Hat tip Pete Peterson

Family Services Group Sues Wolf

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

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

Wolf Launches Stealth Attack Against Adolph

Wolf Launches Stealth Attack Against Adolph
State Rep. Bill Adolph

A flyer has been mailed to homes in Pennsylvania’s 165th Legislative District accusing its representative,  Bill Adolph, of all sorts of vile things like keeping $183,650 i.e. chump change from the Marple Newtown School District and keeping $268,807 from the Springfield School District.

Yes it is chump change.  The Marple Newtown money would not  cover the cost for a year of some Delaware County public school superintendent pensions. And the Springfield money could only keep former Penn State Vice President Gary Schultz living in the style to which he has become accustomed through  late September.

Wolf Launches Stealth Attack Against Adolph
Gov Tom Wolf, trying not to get his hands dirty

The flyer  was produced by America Works USA which is a non-profit group that works in the shadows of the Democratic Governors Association to keep the fingerprints of people like Tom Wolf off the dirty deeds.

Gov. Wolf is trying to pressure Rep. Adolph to help him in his plan to put a crushing tax burden on the gas drillers responsible for whatever economic sunshine that has come Pennsylvania’s way over the last seven years.

All, of course, without recognizing that the state has a major spending problem, not a revenue one. Pennsylvania already taxes the drillers 2.7 percent — on top of salaries, sales and the other usual economic activity that occurs during production. Increasing the taxes will either mean more cost passed onto the consumer — how much was your electric bill last month? — or curtailing production.

Adolph is working hard to fix the pension crisis and recognizes the burden Wolf’s tax plan will place on the citizens of his district. He needs their support.

Addendum: The $268,807 Adolph allegedly kept from the Springfield School District would not be a blip on the radar concerning lessening the impact of   the recently approved $140 million new Springfield High School. On the other hand, repealing the state’s prevailing wage law could see a 20-percent cost drop i.e. $28 million i.e. not chump change  in the price. If you are inclined to contact Adolph about something contact him about that. You would actually see your standard of living improve — or at least not drop so much — if that law was gone.

Note the matter of the Springfield High School now goes to the township for approval of construction. Springfield School Director Bruce Lord said at the final Town Hall, March 19, the process of construction will take years not months.

Wolf Launches Stealth Attack Against Adolph

Wolf Tax Plan Rejected Unanimously

Gov. Tom Wolf has a tax plan that would place an additional $4.7 billion burden on Pennsylvania’s citizens.  Wolf Tax Plan Rejected Unanimously

Yesterday, June 1, legislation went before the State House that would have started the process of enacting it.

It failed 193-0. Yes, not one Democrat could bring himself or herself to vote for it.

The Democrat leadership is angry. They are calling the legislation “gamesmanship.” Maybe they should ask instead that government officials like Wolf  refrain from pandering and making impossible promises and seriously consider the effect of what they propose.

Of course, that would mean that a Democrat would never again get elected.

Wolf Tax Plan Rejected Unanimously

Wolf Wants Funeral Tax

Wolf Wants Funeral Tax
Gov. Wolf wants to tax funerals

For Pennsylvania’s unthinkers who punched button for Tom Wolf last November, be told: Our new governor wants to tax funerals.

That’s right, he wants to expand the sales tax to previously exempt items including caskets, burial vaults, services provided by funeral homes and grave stones.

This would raise the cost of the average funeral, which is $6,500, by $429.

Wasn’t Gov. Corbett’s historic gas tax enough to solve our money problems? It would have been if the goal wasn’t to create a feudal system were we serfs are expected to support lifestyles of wealth and leisure for the lords and ladies in the political class.

Has there been any talk of cutting public spending? LOL.

How about a tax on public pensions? That’s a tax we can support.

Wolf Wants Funeral Tax