Category: Pennsylvania Senate

More Budget Hearings Reveal More Waste by Sen. Scott Wagner

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

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

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

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

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

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

7 Employees made more than $100,000 in overtime

130 employees made more than $50,000 in overtime

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Click here to view diesel taxes.

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

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

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

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

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

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

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

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

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

More Budget Hearings Reveal More Waste

Pennsylvania Appropriations Hearings Day 3 by Sen. Scott Wagner

Yesterday, Feb. 24, we completed the third day of Pennsylvania Senate Appropriations hearings.

Here is the schedule of hearings held so far:

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

Tuesday:
Judiciary
Treasury Department

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

Here is what I learned yesterday:

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

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

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

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

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

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

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

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

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

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

Dear Colleague:

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

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

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

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

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

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

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

I will report more on Friday.

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

Pennsylvania Appropriations Hearings Day 3

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

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

Click here for the story.

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

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

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

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

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

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

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

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

I responded that his answer was unacceptable.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

West Chester Swim Coach Makes $420,172

Wagner Describes Budget Reality — For those who missed state Sen. Scott Wagner’s interview with Robb Hanrahan on CBS21’s Face the State, Sunday, it can be found here or below.

Wagner is an excellent legislator and the interview is worth watching.

“If there is anything that I want to say today, that I want people to hear, we have a pension crisis. It’s a $60 billion crisis,” Wagner told Hanrahan. “We have no way of getting out of that crisis. We cannot change benefits for people in the system. Constitutionally, we cannot do it. Yeah, we can try. It will go to the state Supreme Court and get kicked back.”

Obviously, the Senator has looked into the matter. What likely motivated him do so was this revelation he reported back in May that there were those in the state getting $400,000-plus public pensions.

We would like to point out that whatever ink has been placed on paper by politicians working corruptly with lobbyists enough wind caused by cold, honest anger can blow those words away.

And yes, someone with a $477,591  pension– that’s you former Penn State president Rodney Erickson — asking a family with an income of $45,000 to bail him out, is something to be coldly and honestly angry about. It is the epitome of immoral indifference and injustice. It is something you would think would be more fitting of a French nobleman circa 1788 rather than an American.

By the way, Gary Schultz of Jerry Sandusky scandal fame has a publicly guaranteed pension of $330,699. Yes, working guy and gal, the powers-that-be want you to cover it.

We would like to also point out that the mild pension reforms being pushed by the decent Republicans in the legislature such as Wagner and which have been shot down time and again by the not-so-decent powers-that-be do not concern existing pensions and would be unarguably constitutional.

Also in the interview, Wagner said that Pennsylvania’s true spending is about $99 billion of which the widely discussed general fund budget consists of  about $31 billion or less than a third.

Wagner described the state’s twisted budget process in which department heads expect automatic increases of up to 5 percent and say their funds have been cut if the hike is less. The commonsense business practice that Wagner advocates is reviewing for places were cuts can be made and existing funds better allocated.

Wagner noted that the state government is filled with what he termed “Swiss bank accounts” some of which are called Ledger 5 funds and are accessed at the discretion of the governor.

“There’s not a lot of transparency,” Wagner said. “. . . I asked our appropriations staff have we ever asked what what’s in those accounts.”

The staff said that they had asked.

So how did the governor reply?

“We never got an answer,” he said.

Wagner said he filed a “right to know” request 30 days ago and he is still awaiting a response.

Wagner said that among the money Gov. Wolf cut when he finally signed a budget on Dec. 29 was about $6 million for critical access hospitals, which are small 25-bed or less hospitals that serve rural districts and are now endangered.

“The Governor has $6 million in his grocery account,” Wagner said.

For some reason, though, he is holding these rural hospitals hostage.

“If these hospitals close, where do the people go?” Wagner said.

Wagner Describes Budget Reality