Who's Telling Half-Truths on Pennsylvania Budget?

Chuck Ardo, the Governor’s spokesman, became incensed (as reported by John Micek) when Sen. Piccola made a strong comment against the governor. During last night’s Senate debate on a new budget plan, Piccola accused, Gov. Ed of having been "despicable in the way he's handled this budget impasse" concerning payment for state workers.

When asked for a comment Ardo replied, "Nothing that comes out of these guys' mouths is a surprise. They have resorted to misinformation, disinformation and half-truths in an attempt to sell their budgets."

Maybe Ardo forgot that he and the Governor have repeatedly reported lies and half-truths to scare the public into accepting their budget plan"

• The Governor said that school districts would be forced to raise property taxes if they did not receive the amount of funding he called for. He forgot to inform the public that schools are to receive an average of 12% more in funding than last year.
• Rendell has claimed half of all Pennsylvanians don't pay state income taxes.  This appears to be a fabricated statistic.
  
• The Governor said that 800 state police would have to be laid off if the Senate’s budget was passed. Even the head of the Pennsylvania State Troopers Association called Rendell’s claim a deliberate scare tactic.  Later, in testimony, state police admitted that Rendell's office gave the talking points, and the Governor himself has control over the funding formula. 
• Rendell has repeatedly claimed Pennsylvania has one of the lowest top personal income tax rates, but Rendell's tax rhetoric ignores states with no rate, that Pennsylvania has a flat rate with few deductions, and has local income taxes.  All total, Pennsylvanians pay 16th most per capita in state and local income taxes, and have the 11th highest tax burden.
  

Even Ardo himself admitted the Governor does not always tell the whole truth:

"The governor uses numbers to make a point," he said. "His numbers are not inaccurate, although sometimes they do not tell the whole story."

Furthermore, Ardo suggests that Piccola went "beyond the line" by calling the Governor’s behavior despicable.

Of course, it was Ardo who called  Matt Brouillette a "flaming a$$hole." And it was Ardo's boss, Gov. Rendell who calls the Commonwealth Foundation "imbeciles."  But apparently that doesn't "cross the line."  Or when Rendell called a group of Republicans a "cavemen caucus," and when the Governor says that Mike Folmer is certifiable, or compares Eric Epstein to Hannibal Lecter, that's all in good taste.

In terms of both truth telling and name-calling, Rendell seems to hold himself—or perhaps just those demi-gods deserving of a statue on every mantle—to a different standard than everyone else.

Will "State-Related" Universities Get Stimulus Funding, No Stimulus Funding, or No Funding at All?

On June 26th the Governor submitted his application for federal stabilization funds, including the following phrase:“The Commonwealth’s “state-related universities” are excluded from all calculations for purposes of the State Fiscal Stabilization Fund." While these four institutions (Penn State, University of Pittsburgh, Temple and Lincoln University) receive limited taxpayer support, they do so through a non-preferred appropriation which is defined as “an appropriation to any charitable or educational institution not under the absolute control of the Commonwealth”.

On July 7th, Rendell told (1:10:50) the US House Republican Committee on Oversight and Reform,"Understand, the four state-related schools, Penn State, Pitt, Temple, etc., are getting stabilization money. The cuts that they are receiving would be much worse without the stimulus. Much worse."

Confused? So are we.

In reality, an 18% cut in state subsidies should not dictate a necessary increase in tuition given that the subsidies make up a small part of the universities' overall budgets, and as we note in our policy brief on higher education - increased government subsidies are partly to blame for tuition increases.

Yesterday the House Democrats threw another monkey wrench into this, when they tweaked the Governor's budget proposal to take higher education out of the state budget entirely, until a new revenue source is found.

Gov. Rendell: "State Workers Should Put a Statue of Me on Their Mantles"

In each of the past seven years, under the leadership of Gov. Rendell, Pennsylvania has failed to pass a state budget by the start of the fiscal year (July 1), putting state workers in the middle of the budget debate as hostage in a negotiating ploy.  Next Friday, July 17, state workers will (barring an expedited passage of the budget, which has yet to be agreed upon) forgo their paycheck.

How does Governor Rendell think state workers should feel about all of this?  He says, "they should put a statue of me on their mantle place." (HT Capitol Ideas).

WHAAAT!?  This is as stunning as finding out Bruce Willis was Ed Rendell the whole time.

Do Rendell's Budget Numbers Add Up?

Mario Cattabiani and Angela Couloumbis take a look at some of Gov. Rendell's latest budget rhetoric, namely his claim that 50% of Pennsylvanians don't pay the Personal Income Tax, which he is planning to increase.

They find that statement might be technically true, if you count all the children who don't pay the income tax, or folks in prison, or (as discussed before) the growing number of unemployed, who don't currently pay the income tax, but would really like to (i.e. if they had a job).

They also question Rendell's claims that everyone can easily pay higher taxes without hardship, that 800 troopers would have to laid off, and that his $2 billion in "cuts" has resulted in a $1 billion increase in spending

Rendell's spokesman, Chuck Ardo, admits Rendell isn't telling the whole story on the budget:

"The governor uses numbers to make a point," he said. "His numbers are not inaccurate, although sometimes they do not tell the whole story."

Is Rendell Lying About State Police Layoffs?

Gov. Rendell has been quoted on numerous occasions claiming the budget passed by the Pennsylvania Senate last month would result in the layoff of 800 state police.  We pointed out last week that the head of the State Troopers Association called it a scare tactic, but a Senate hearing yesterday with the Pennsylvania State Police (PSP) revealed some very interesting details Rendell has omitted.

The Rendell administration claims that a $16 million reduction in General Fund PSP funding -- it is actually a $4 million cut from what was spent this year, the $16 million is a reduction from Rendell's proposed budget -- would result in an additional $43 million reduction in funding from the Motor License Fund, because of a 27%/73% split in how PSP is funded.

But as PLS points out on their blog, "that the cut would not be necessary because there is nothing in statute or in the constitution that forces the PSP to cut funds from the Motor License side."  That is, that ratio is determined by the Rendell Administration.  It is true that the Motor License Fund monies can only be used to fund highway patrols, but there is no reason why there should be any less funding for that purpose.

The full summary from PLS is for subscribers only, but here are some gems:

Chairman Rafferty asked who wrote the testimony. Lt. Col. Kurtz said that the presentation was prepared himself with the PSP Policy Office. Chairman Rafferty questioned who the PSP Policy Office reports to. Lt. Col. Kurtz responded "the Governor's policy office."

Chairman Rafferty inquired if PSP and the Governor are preparing for 800 furloughs and asked if PSP has ever furloughed troopers. Lt. Col. Kurtz responded "no" to both questions. Chairman Rafferty indicated that in 2005 the General Assembly and the Governor cut funding from the PSP budget and asked how many layoffs that resulted in. "None," Lt. Col. Kurtz said. ...

Chairman Rafferty said the hearing today established that there is no statutory or constitutional requirement that provides for the 27/73 split in funding and asked if Lt. Col. Kurtz agrees with the Governor when he said that sex offenders will be running rampant on the street. Lt. Col. Kurtz said the statements are sensationalizing the issue for the budget negotiations between the Governor's office and the Senate.

Capitolwire (also a subscription service) writes this about the hearing:

“There is no statutory requirement” that the 73-27 ratio be observed, he [Kurtz] said, later adding: “The percentages aren’t written in law.”

[Mark] Infanti [of State Police] testified that Rendell’s proposed $5 million in cuts for next year could be absorbed without layoffs or cuts that would affect tracking sex offenders, although they meant no new cadet class could be scheduled to replace the 150 or so expected retirees. But the additional $11 million in cuts proposed by the Senate would require layoffs, Infanti said.

Committee Chairman John Rafferty, R-Montgomery, asked Kurtz where “the magic line” is between Rendell’s $5 million in cuts and the Senate’s total of $16 million.

"At what point do budget cuts require layoffs or cuts in valuable programs like tracking sex offenders?" Rafferty asked.

Kurtz replied: “I can’t answer that.”

Rafferty also played a video clip of an interview Gov. Ed Rendell gave to WITF-TV’s “Smart Talk” in which Rendell said the Senate-GOP-proposed cuts would hamper the computerized tracking of sex offenders. ...

Responding to Rafferty expressing outrage at the governor’s comments, Kurtz said: “That is sensationalizing for both the governor’s office and the Senate. Those are all political statements that are being made for a purpose.”

Rendell's propaganda machine

Brad Bumsted's latest column wraps up some of the more absurd rhetoric coming from the Rendell administration about the Senate version of the Pennsylvania budget:

• The bill "threatens juvenile delinquency and crime prevention efforts," the Pennsylvania Commission on Crime and Delinquency said.
• It would "cripple production in agriculture," Agriculture Secretary Dennis Wolff said.
• Pennsylvania communities "face the prospect of dirtier water, weakened flood protection, and swarms of biting inspects that could potentially carry the deadly West Nile virus," the Department of Environmental Protection said.
• The bill "would wreak havoc on (the) veterans' home system," displace 300 veterans and "possibly" force closure of a veteran's home, the Pennsylvania National Guard warned. (Sen. Lisa Baker, a Republican, responded it was "completely out of line with the fiscal facts" and "needlessly alarmed veterans and their families.")
• SB 850 would "cripple the tourism industry," DCED said in a curtain call.
• It would lead to the closure of at least 35 state parks, the Department of Conservation and Natural Resources said. ("Scare tactics," the GOP said.)
• The most sweeping indictment came from the Department of Health, warning the bill "threatens the health of millions of Pennsylvanians" by restricting or eliminating vital health care.
• And it would be "devastating" for school districts, students and taxpayers, Education Secretary Gerald Zahorchak warned.

Who's Really "Nuts" on Economic Policy?

We posted yesterday on the Turzai-Quigley proposal to cut state spending and tax rates.  Today Governor Rendell called Turzai "nuts" and his plan "ludicrous". 

Rendell has previously lambasted critics of his spending, calling the Commonwealth Foundation "imbeciles", Sen. Mike Folmer "certifiable", and Eric Epstein "as mentally stable as that guy who ate all those people."  In response to Rendell let me say - I'm rubber, you're glue, whatever you say bounces off me and sticks to you.

Perhaps a more serious response to Rendell's rhetoric is in order.  Rendell comments "It's about creating more jobs and putting more money back into the economy" - referring to spending taxpayer money.

But Governor, taking money from taxpayers to give to special interests isn't putting money back into the economy,  it is simply shifting money around.  It is like taking water from one end of the pond to another, and claiming success for "putting water back into the pond." 

We have written over, and over, and over again how Rendell's "economic development" spending has resulted in stagnant economic growth in Pennsylvania.  If such spending "stimulated" the economy, both Pennsylvania and the U.S. should be in fantastic shape now, as government has done nothing but expand in recent years.

As Einstein said, insanity is doing the same thing repeatedly and expecting a different result.  So who's nuts now, Governor?

Funding Loans While Facing a Deficit?

The day after announcing more budget cuts, including a wage freeze, Governor Rendell announced $2 million in new state funded loans.

So let me get this straight, one day he’s decrying revenue shortfalls saying, “Everything is on the table for consideration and review. We have to balance our budgetary restraint measures with our obligation to provide quality public services to the citizens of the commonwealth.”And the next day he’s handing out millions in taxpayer funds?

Here’s an idea, don’t loan money when your running a $625 million deficit. If these projects are really that great they’ll attract private lenders- which brings me to the governor’s announcement today. This afternoon the Governor announced that global manufacturing firm Vacon Inc. will establish their North American headquarters in Pennsylvania, and it only cost taxpayers $657,000, what a bargain.

Government Health Care Kills

Pennsylvania Governor Ed Rendell is calling on the Pennsylvania Senate leadership to break their pledge not to hold a lame duck session. Among Rendell's rhetorical arguments is that "nearly two people a day die in Pennsylvania because of a lack of health insurance."

The Commonwealth Foundation's response, tongue-in-cheek, is that 10 Pennsylvanians die every day because of government involvement in health care.

Of course, no one really dies because they lack insurance or because they enroll in Medicaid, but the point (besides exposing Rendell's demagoguery) is that government health insurance—which Governor Rendell sees as the solution—is worse than the disease.

Instead, we should look to options that allow more individuals to enroll in private coverage.

Rendell lies on Social Security

A few days ago, Governor Rendell complained that the McCain campaign was "deplorable" and "despicable" for trying to scare voters by painting an inaccurate portrait of "spreading the wealth" (which Rendell thinks is a good idea).  Rendell added "I want to crush them."

If I was naïve, I might have been surpised when Rendell appeared on PCN last night and tried to scare voters (especially older ones), saying that McCain would take away their Social Security.  Rendell's words (or close to it, as I don't have a transcript):

Personal Accounts would have been great if you had retired in 2006... but if you turned 65 and were due to receive Social Security today, you'd have nothing left.

First off, anyone with any experience investing - about 60% of Americans - know that you should diversify: as you get closer to retirement, you should invest in safer return (i.e. bonds) that don't lose value.

Second, the stock market losses are large, but would not wipe out your savings.  For the year to date, the Dow is down about 29% - this is a huge loss, but hardly means "you'd have nothing left" (which would take 100% losses).

If that were true - pension funds for state workers would also "have nothing left," and Governor Rendell should propose a plan to put pension money under a mattress in the Governor's Mansion, rather than invest that money in the stock (and bond) markets.

Finally, didn't I just post a link to Michael Tanner's analysis on how personal accounts are still a good idea?  If you've forgotten, that analysis concluded that the stock market - even after its recent drubbing - would have returned four times the amount of money as Social Security (since Social Security has a minimal rate of return).  Surely someone in Rendell's staff reads this blog and prints it out for him.

Bailout Bandwagon - The Rendell Plan

As hope for the proposed Turnpike Lease dwindles, Pennsylvania Governor Ed Rendell is asking Congress to add $100 billion in transportation money to the $700 billion bailout deal.

The Democrat said his infrastructure initiative would help recharge the American economy by improving public facilities and creating nearly 5 million good-paying jobs.

The Heritage Foundation strongly disagrees:

Ronald Utt points out, “the vast majority of independent academic and federal government studies on the relationship between infrastructure spending and economic activity have found that the impact is very modest and long in coming.” Highway spending simply transfers jobs from one part of the economy to the other. This plan hardly stimulates the economy.

When will they learn that governments redistribute wealth but private business actually create wealth. For more on why governments should partner with private businesses click here.

Nate Benefield adds:

Members of Congress might want to note that tacking on a laundry list of other proposals to "must-pass" legislation (e.g. the state budget), is Rendell's go to play.  It also explains why the state budget has never passed on time under Rendell's tenure.  That is to say, it's a dumb idea.

Extending Rate Caps is Not the Answer

Yesterday, Govenor Rendell declared he would have "no choice" but to support an extension of the rate caps if the legislature fails to act on rising electricity rates. This effort to bully the legislature into action will only make things worse.

Failure is an attractive option compared to the passage of any mandate forcing companies to offer energy conservation progams. In the end, the cost of implementing these programs will be paid by consumers anyway.

The Governor said, "We (the state) have the power to keep prices in check if we choose to do so," I don't think so.

We (the rate payers) have the power to keep prices in check if we choose to do so. It's up to us. If we want competition we have to shop for cheaper electricity. If we want to continue to pay the 1996 rate then get ready for more government subsidies.

"Stupid Hicks" Oppose Big Government

I wasn't going to post anything on Barack Obama's comments about people "clinging" to guns and religion, until Philadelphia Daily News columnist John Baer offered his Obama can do no wrong defense.

Baer contends that:

1. He (Baer) is a small town guy at heart, because he enjoys the music of John Mellencamp, and wasn't offended by Obama's comments (I won't debate him on that).
2. Many people are frustrated with government - particularly the pay, benefits, abuses of power, etc (I concur).
3. People often express their frustration by illogical policy stances (I don't disagree).
4. Issues like the "defense of marriage amendment", gun rights, abortion, and religious freedom are meaningless.
5. Anyone who doesn't support Obama's agenda is naive. (Obviously, I take issue with the latter two points.)

Essentially Baer - like Governor Rendell when he declared "Jesus would support my health care plan" - is calling on "small town folk" to stop being Conservative, to support gay marriage, abortion, gun control (though it is Philadelphia Democrats who seem "bitter" and "cling" to guns as an issue), and above all, fixing health care.

Of course, when Baer says "fixing" health care, he means support RendellCare (or Obama/Hillary's plan). He, and others, argue that the debate is between "fixing health care" and not. He pretends the debate over how to fix health care does not exist, or that Rendell/Obamacare might make things.

Though I think those of us "bitter" and frustrated with government have a better plan.

Are You Nuts Governor?

Governor Ed Rendell goes ballistic on KDKA reporter Jon Delano, asking "Are you nuts, Jon? Are you nuts?" (watch the incredible Video Clip)

Delano's sanity is in question because he is calling Governor Rendell's tax increases "tax increases", when, according to the Governor, "it isn't a tax, it's only 42 cents a year." Apparently the definition of tax has changed since Noah Webster's day. He also refers to another "non-tax" of "only" 50 cents/month. Of course that tax - on electricity use - would be $10,000 per year for many businesses, or 1 Million Pennies.

Last year, it was several months into the budget process before Governor Rendell resorted to name calling, calling the Commonwealth Foundation "imbeciles" and Sen. Folmer "certifiable" and comparing Eric Epstein to "that guy who ate all those people."

Governor Rendell goes on to blast "terrible reporting by the press" and claims his critics "can't stand success".

Here is Governor Rendell's measure of success:

• Beacon Hill Institute 34th out of 50, State Competitiveness Report 2007
• ALEC-Laffer State Economic Competitiveness Index - 44th on Economic Performance; 37th for Economic Outlook (1 is best)
• Alliance for Worker Freedom Index of Worker Freedom - F (Tied for worst)
• Small Business and Entrepreneurship Council Policy Environment for Entrepreneurship. - 24th (1 is best)
• Tax Foundation State Business Tax Climate Index - 27th (1 is best).
• Tax Foundation State and Local Tax Burden - 24th (50 is best)
• CEO Magazine Best States to do Business - 37th (1 is best)
• Forbes Magazine Best States For Business - 39th (1 is best)
• During his tenure as Governor, ranking
• 38th in job growth,
• 40th in personal income growth, and
• 42nd in population growth among the 50 states.

Jesus: Roman Empire Should Provide Universal Health Care

Remember the passage in the Bible where Jesus called upon the Roman Empire to provide universal, government-run health insurance? Well, Governor Rendell says it is there:

Rendell criticized politicians who talk about "morals" and "family values," yet refuse to support his plan for covering the uninsured.

If they care about what's right morally, Rendell shouted, they should heed the Bible's advice to "heal the sick" or stop claiming to support such values.

New taxes to provide government-run health care does not equate to "healing the sick". To paraphrase Ronald Reagan, "The size of the state budget is not an appropriate measure of social conscience or charitable concern."

If Governor Rendell wants to be truly charitable why won't he support ending laws that prevent people from buying lower-cost insurance from other states.

What about repealing mandates which drive up the cost of insurance and makes it too expensive for many familes?

Is it charitable to tax individuals for the cost of their health insurance? If, as we think it is not, then the Governor should support equalizing the tax code for those who buy insurance.

Instead, the Governor proposes a 3% payroll tax on businesses that "don't provide health insurance" (yet to be defined) to employees. As anyone can tell you, a payroll tax is essentially the same as a wage tax (or a pay cut) - meaning that employees who don't get insurance from their employer will get a 3% salary cut. Is this charitable?

How about creating a tax credit for charitable contributions to HSAs for low income families?

As Governor Rendell's plan essentially expands Medicaid, shouldn't we be talking about the negative effects of Medicaid, include the low quality care provided to Medicaid recipients.

What about considering the long waiting lists for medical care in countries with socialized medicine. Is moving us toward that model to be considered charitable?

Governor Rendell obviously confuses health "insurance" with health care, and confuses government spending with altruism.

Here are some other policy changes to free the market to reduce the uninsured and to help reduce the cost for those already insured. Jesus, Moses, and Muhammad would support that, wouldn't they? Of course the insurance companies and the unions backing Rendell's plan might not.

At Least We're Not Cannibals

After we accurately pegged the tentative budget deal to a 5.3% increase, Gov. Rendell decides to call us imbeciles.

As hurt as I was, I think we come off looking pretty good - the Governor called Sen. Mike Folmer "certifiable" and yesterday said Eric Epstein is "as mentally stable as that guy who ate all those people."

At least we are just stupid, not crazy.

Click here for an explanation of how we got to 5.3%, and here for how Gov. Rendell is in fact, trying to hide the actual spending increase.

Watchdog’s remark sends Rendell on a tear

Governor Rendell talking about Rock the Capital's Eric Epstein to the Philadelphia Inquirer

"Eric Epstein," boiled Rendell, "is about as mentally stable as that guy who ate all those people."

That is exactly why we love having Eric as a frequent guest on THE BOX.

More Rendell Rhetoric

Governor's latest news release:

“Hundreds of thousands of Pennsylvanians are without health insurance, roads and bridges are crumbling, public transit services are being cut and medical research facilities are being lured by other states,” Governor Rendell said. “And, the lack of a clear energy strategy is driving up our demand for foreign oil and, consequently, gas prices. "

He forgot to mention that Jesus wants lawmakers to pass his budget. Oh, and you need to stand up and fight the powers of evil.

I am reminded of The Office episode where Jim convinces Dwight that all great orators pound their fists and yell loudly (he give him excerpts of Mussolini to read). Maybe Gov. Rendell needs to practice this speech:

Rendell as Aragorn

Philadelphia Daily News compares Rendell to Aragorn (of the Lord of the Rings), in his speech to the SEPTA board:

A day may come when the courage of men fails!" Rendell's Aragorn told a startled-looking SEPTA board of directors. "But it is not this day! This day, we fight!"

What Rendell wants the SEPTA board to do is "aggressively lobby state legislators to pass his proposed excess-profits tax on oil companies". In other words, he wants the taxpayer-funded board to lobby for more taxpayer funds for themselves. Very courageous.

Don't let them buy you off for 12 pieces of silver!" Rendell said, abandoning "Lord of the Rings" for his own interpretation of Judas' betrayal price, which was actually 30 pieces of silver.

So to avoid getting "bought off" by legislators, ask them for more money?

Jesus would back my plan, Rendell says

Ed Rendell cites the Holy Bible to support his government-run health care plan, reported in the Patriot News.

He is referring to Matthew 22: 37-39 - Jesus replied: " 'Love the Lord your God with all your heart and with all your soul and with all your mind.' This is the first and greatest commandment. And the second is like it: 'Love your neighbor as yourself.' And the third is 'Implement a payroll tax on businesses to offer government-managed health insurance to a fraction of those well above poverty currently choosing to go without.'"

If your Bible doesn't have the last verse, then obviously you are using the wrong translation.