Category: Taxes

Harrisburg To Spend Twice-Plus What You Might Think

The dying dinosaur media chronicles yet another  Pennsylvania budget crisis in dry wire service reports on inside pages focusing like a laser beam on the $29.03 billion in general fund spending sought by Gov. Rendell — which, btw, would still be $1.04 billion higher than last year — with nary a mention that Harrisburg expects to spend more than twice that — $37 billion to be specific — regardless of what is passed.

This usually unremarked-upon spending is via special funds estimated for next year at $14.4 billion and federal money estimated for next year at $23 billion and which does not include stimulus money which was folded right into the general fund.

The state has 139 special funds to which money is directed from sources specified by law and their disbursements this year range from  zero  for the Energy Conservation and Assistance Fund to $2.58 billion for the State Employees Retirement Fund and $5.36 billion for the School Employees Retirement Fund.

Now, one would think that expenditures for things like pensions are set in stone and must not be considered in resolving the looming shortfalls, but then you would have to say that it is moral and just take from newlyweds, widows and struggling businesses to pay  legislators like state Sen. Robert Mellow (D-22) pensions of $313,000, and bureaucrats like John Winchester salaries of $236,265 to administer the money,

And, of course, it is not.

And I would hope that all would understand it not just kinder but wiser to see government workers take a hit in the pensions bringing them down to $50,000 for the year, than see someone forced from their home or to shut their business, the latter of which would obviously cut the tax base even further  would lead one to wonder how the state would end up funding these Cadillac pensions anyway.

Local government, btw, is expected to spend $67.8 billion on top of that next year in Pennsylvania.

A big hat tip to Nate Benefield and the always excellent Commonwealth Foundation along with PaIndependent.Com

RTMEA Settles

The Rose Tree Media School District announced March 23 that it has settled its contract dispute with the Rose Tree Media Education Association, the union that represents the districts teachers, guidance counselors, librarians and nurses.

The agreement appears to be closer to what the school district was offering namely a three-year contract with raises of 2.55 percent for the first year followed by raises of 2.95 percent and 2.99 percent.

The district also said there would be a switch in health plans for a net savings of $449,000 over the course of the contract.

Hat tip to Kate Rainey and the High Meadow Civic Association of Middletown.

So with the fuss reasonably settled why did the RTMEA choose to torment the parents and teachers with a vote to strike in February?

Anyway, to see what your district’s teachers made in 2009 visit here.

Rendell Tax Would Hurt Pa.’s Surprisingly Large Online Cigar Biz


Pennsylvania is one of two states without a tax on the sale of cigars — the other being Florida — and Gov. Ed Rendell is again attempting to let the Sunshine State own the field with the assumption that it would have no impact on the Pa. economy, as Commonwealth Federation’s Nathan Benefield points out.

However, Pennsylvania’s near unique status has caused it to become the headquarters for a large number of online cigar and smokeless tobacco retailers — such as Famous Smoke Shop, Cigars International, and Holt’s —that do tens of millions of dollars in online business, which is subject to corporate tax, and who employee hundreds of Pennsylvanians  who do pay income, property and sales taxes.

It should be obvious that these companies would not find it that hard to move to the land of orange trees.

Cigar International, a $90 million company with  150 employees, is one that would consider it according to its CEO Keith Meier.

It should be obvious that this would hurt the Pennsylvania economy.

But we are dealing with Democrats, however.

Teacher Salaries Listed For Pa. And N.J.

 

The oppressed masses in the Rose Tree Media Education Association — the union the covers teachers, school nurses and guidance counselors in the Rose Tree Media School District — voted to strike Wednesday.

Obviously, the working conditions in the district must be horrible for these caring professionals to take the drastic step of harming a child’s education.

And they are! Consider the plight of Springton Lake Middle School physical education teacher Stephen Adams. His salary was $87,329 in 2009. And that was for 195 days grueling days of teaching gym class. Granted, he also gets benefits but can’t you understand why he might have to vote to hurt a child with working conditions such as that?

Or consider Indian Lane Elementary School teacher David Woods. He  made a mere $95,817  in 2009. I weep for these people.

BTW, this link can give you the salaries of just about every public school teacher in Pennsylvania.

This one can give you the salaries of just about every public school teacher in New Jersey.

Fleeing Pennsylvania In 2009

Fleeing Pennsylvania In 2009 — The Commonwealth Foundation is noting that Pennsylvania is the third-most fled state on Allied Van Lines 42nd Annual Magnet States Report behind Michigan and Illinois.

Rounding out the top five are California and New Jersey.

The top five with a net in-migration are Texas, Arizona, North Carolina, Colorado and Florida.

Fleeing Pennsylvania In 2009

New York Sought WTC Back Taxes

New York Sought WTC Back Taxes — An attempt by New York City to try to get $34.8 million in back property taxes for the Twin Towers and two nearby buildings was slapped down, Dec. 9,  by Administrative Law Judge Marlene F. Scwhatz of the city’s Tax Appeals Tribunal.

The city claimed the property was subject to 3.9 percent commercial rent tax through 2005, when the state legislature ended the tax for all properties below Canal Street, and that despite the destruction of the buildings by terrorist on Sept. 11, 2001,  “the airspace that had been surrounded by the buildings still existed.”

Property owner Larry Silverstein pointed out that the government seized control of the entire site in 2001.

New York Sought WTC Back Taxes

New York Sought WTC Back Taxes

Pa. House Gives OK To Searchable Database On Spending

The Pennsylvania House, today,  voted to create a searchable online database regarding state spending.  The vote to pass HB 1880 to  establish the operation of the Pennsylvania Government Accountability Portal, or “PennGAP, was unanimous.

Gov. X-Man Rendell is reportedly against the bill citing cost.

The Commonwealth Foundation estimates the cost to operate such a website at $160,000.

How To Find Dollars In Tough Times

The Neshaminy School District is saying it could save nearly $9 million over three years by outsourcing janitorial services. Similiar savings could be found in most school districts.

The Commonwealth Foundation notes that state entities can save $70 million over three years switching to online public notices rather than mandated legal advertising, and HB1757 was introduced in July 2009 by State Rep. Tom Creighton to do just that .

And of course forbidding strikes by public school teachers and transit workers would see major cost savings in those areas — certainly teacher salaries would stop rising 3 and 4 percent per year as they have for the last 3 decades and this of course would mean the home tax levied by your school district would not keep rising $200 to $300 per year.

The owner of a home assessed at $200,000 in at the turn of the millennium would have paid $3,134 to the Springfield School District (Pa.). This year, he would have paid $5,240.

If the tax rate simply matched inflation, however, the bill would have been $3,934. I could use that extra $1,300. And I could have used the extra $900 or so — the difference between a tax bill according to inflation vs. the one that was  — last year.  And I could have used the difference in the previous year and the previous year etc.

Just some things to think about in tough economic times.

Pa. Ponders The Wisdom Of Letting Public Workers Strike

The grasping and gratuitous strike by members of Transport Workers Union Local 234 bringing a stop to bus, trolley and subway service in Southeastern Pennsylvania for a week has Harrisburg considering whether the state should remain one of 10 that allows strikes by some public employees such as transit workers..

If the proposed strike prohibitions were extended to public school teachers, a very real easing of the property tax burden would begin as contracts began to expire.

Regarding SEPTA, I’m still wondering about that forensic audit of the pension plan that was a big issue for a day then disappeared. If I were a TWU rank and filer, I think I’d be a tad concerned about my retirement plans.

Let’s Make It Easier To Rent The Home You Buy

Let’s Make It Easier To Rent The Home You Buy — The New Jersey property tax is a burning issue in that state’s gubernatorial race with incumbent Democrat Jon Corzine and Republican challenger both agreeing it is a big problem.

The Philadelphia Inquirer notes that The Garden State has the highest in the nation albeit TaxFoundation.org says that Texas held the crown in 2008 — note Texas does not have an income tax.

So that brings us to Pennsylvania which is 11th highest in property taxes according  TaxFoundation. The property tax is the cruelest tax. You lose your income you don’t pay an income tax nor would any food or clothing you buy be taxed. The government still, however, wants you to cough up something for your home.

The sad thing is that Pennsylvanians could see a nice cut in their property tax burden with some simple changes to the law, and even though they would be spending less money  they could see services improve.

The first and most profound reform would be to prohibit teacher strikes. Pennsylvania is one of only 13 states to allow teacher strikes. Without this heavy club you would not see 4-5 percent annual raises for PSEA members — who include guidance counselors and nurses along with classroom teachers.

Next would be to repeal the prevailing wage law. The law, passed in 1961, requires that contractors pay wages set by the state Department of Labor and Industry for all public works projects. The Commonwealth Foundation estimates that labor costs for public sector construction jobs in Pennsylvania average 37 percent higher than what the private sector pays for the same work because of this. Nine states have repealed their prevailing wage laws while nine others never had any.

Finally, we repeal the The Pennsylvania Separations Act of 1913, an archaic but expensive law that requires that public entities solicit separate bids and award separate contracts for electrical, heating, ventilating and plumbing work undertaken as part of public construction projects in which costs exceed $4,000.

Bet next year’s tax bill that if these reforms were passed the cost of owning your home — or would that be renting the home you buy? — go down.

Let’s Make It Easier To Rent The Home You Buy