#254 on the Liberty Index lives up (down?) to his ranking

Philly Democratic Senator Vince Fumo (who scored the worst on our Liberty Index) has proposed a graduated income tax to further punish the producers in Pennsylvania. Nevermind that the "rich" currently pay more under PA's flat tax rate ($30K = $921 in income taxes; $250K = $7,675 in income taxes), Fumo wants even more wealth redistribution.


AP: Latest property tax idea would raise taxes on rich.

By MARC LEVYAssociated Press Writer

HARRISBURG, Pa. (AP, Jan. 30) - The wealthiest 1.5 percent of Pennsylvania households would pay more state income tax under a proposal made Monday by a Democratic state senator to cut property taxes in most of the state, and wage taxes in Philadelphia.

The proposal to shift $750 million in school funding onto the state income tax is the latest of many as the Legislature searches for common ground on the hot-button issue of how to slow the rising cost of property taxes before this year's elections.

Sen. Vincent Fumo, D-Philadelphia, said his fellow Senate Democrats support the proposal, but it had not been discussed with Gov. Ed Rendell or Republicans, and a senior GOP Senate aide raised doubts over whether such a tax code change could be made this year.

While some lawmakers have advocated raising the state sales tax to offset property tax cuts, Fumo said raising income taxes on the wealthiest makes more sense because it does not hurt renters, the fixed-income elderly and people with the lowest incomes.

"We should raise (school funding) from people who can afford to pay it," Fumo said.

Creating a graduated income tax takes a constitutional amendment, Fumo said. The quickest way to amend the constitution is to secure a two-thirds vote in both houses of the General Assembly before putting the measure to voters, ideally on the May 16 primary ballot, Fumo said.

However, that process is reserved for emergencies, and Erik Arneson, the chief of staff to the Senate's Republican leader, David J. Brightbill, disputed whether the issue meets that definition. Otherwise, a constitutional amendment is a multiyear process that requires majority votes in two successive two-year legislative sessions and approval in a statewide referendum.

Under Fumo's proposal, the state income tax rate of 3.07 percent would rise to 4.57 percent on any income earned above $250,000, but not more than $400,000. The tax rate on any income earned above $400,000 would rise to 6.07 percent.

The proposed tax increase would raise $750 million to offset property tax cuts. A subsequent tax write-off on state income taxes would mean the affected taxpayers would receive $262 million of it back from the federal government, Fumo said.

When combined with $1 billion in anticipated revenue to be generated by slot machines for property tax cuts, the owner of a home at the average assessment would receive about $580, or about one-third of the average property tax bill.

-30-

More Turnpike News

Pittsburgh Tribune-Review on the draw of investors to a Turnpike lease. They also heavily quote Turnpike Commission vice chairman Tim Carson (who they also identify as a bond lawyer, relevant given he is pushing for the Turnpike Commission to be authorized to issue billions in new bonds):

Carson conceded that the Turnpike Commission has a reputation for patronage and financial boondoggles, but insisted that image is based on practices that ended decades ago.

"We're not your father's turnpike," he said

Oh, really?

From Toll Road News:

A 272 page federal indictment of state Senator Vincent Fumo (Dem) for corruption details involvement of the Pennsylvania Turnpike Commission and implies the Turnpike's chairman, Mitchell Rubin collaborated in some of Fumo's thievery. The indictment says (p43 #83) that between April 2003 and December 2004 the Turnpike paid $220,000 in checks of $10,000 a month to a man identified as Senate Contractor #4 (SC4) under a phony contract as a consultant. The indictment says that the man worked on Sen Vincent Fumo's Harrisburg area farm in return for the payments he was getting from the Turnpike.

And more from Toll Road News:

The chairman of the Pennsylvania Turnpike Commission, Mitchell Rubin is accused in the US indictment of Senator Vincent Fumo and three associates of multiple counts of defrauding the state of Pennsylvania.
...

The fraud charged against Mitchell Rubin is that he provided no work product in return for a contract providing "professional services to the (Senate) Democratic Appropriations Committee to include, but not be limited to research, analysis, and make recommendations on legislative matters, assist on constituent services." (p45 #90) The contract arranged with Rubin by Sen Fumo paid him $150k or $30k/year for five years 1999 to 2004 (when the feds were well into their investigation of Fumo).

The indictment states: "Neither the Senate nor (Rubin's) firm possesses any documentary evidence, such as notes and reports, showing that he or his firm ever provided any 'research, analysis (or) recommendations on legislative matters' or anything related to constituent services...(Rubin) did little or no actual senate work at all." (p45 #91)

I would hate to see my "father's Turnpike".

Fumo still doesn't like Turnpike Lease idea

Patriot News article cites Vince Fumo as evidence that legislators don't like the idea of a Turnpike lease.

As Fumo put it, the turnpike "is what it is, and I think it works very well, and I think it runs better than any foreign company would run it."

I'm sure Fumo's opposition has nothing to do with the fact that the Turnpike Commission pays $100,000 per year for the manager of Fumo's Harrisburg area farm - something a "foreign company" (or, I'm sure a US-based company, or even a government agency that wasn't wantonly corrupt) would never do.

Tax Increase Coming to Pennsylvania

State Senators Gib Armstrong and Vince Fumo are both projecting a massive budget deficit ($2.5 billion according to Fumo) and believe that the only way to pay for it is with a tax increase next year. 

Armstrong and Fumo - who negotiated the current budget, voted for it, urged others do so are, and are also retiring at the end of the year - added "HA HA suckers, good luck cleaning up our mess."

Amazingly, Armstrong and Fumo use two ridiculous arguments to justify increasing taxes:
1) "I don't know what else to cut": The Commonwealth Foundation has identified $6.6 Billion in programs outside the proper scope of government.
2) There is "not nearly enough time to make substantial changes" in the legislative session: That is entirely by choice - and I'm not even talking about the lame duck session, but the rest of October.  We have nearly one month before the election, but legislators are taking the next three weeks off to campaign.   There is plenty of time to restrain spending now, delaying until January means higher taxes on an already over-taxed state.

Fumo wants to expand Turnpike Commission

To the suprise of no oneVince Fumo has supported the plan of the Turnpike Commission to expand their authority - raising tolls, taking over (and tolling) I-80, and issuing debt tied to the gas tax.

Fumo's allegiance to the Turnpike Commission has been well document - as without Turnpike contracts, he might have to pay out of his own pocket to hire someone to run his 100-acre farm.

Read more on Fumo's ties to corruption at the Turnpike Commission in When the Levee Breaks and Helping Hands.

As Sentor Fumo's Trial Begins the Spending Continues

Senator Vince Fumo's trial began yesterday with the first day of jury selection. In the days leading up to the trial the senator was doing what he does best: doling out taxpayers’ hard-earned money for corporate welfare projects, including a new produce distribution center ($150 million of the $280 million project is subsidized with tax dollars).

You would think any politician with a 139-count indictment would have few friends but apparently 30 years of handing out other people's money buys you a lot of support. Fumo is accused of misallocating pubic funds for private gain, but supporters last week said, "Sen. Fumo was not just a savior on this job . . . [he] also made sure that not one nickel of taxpayer money was misspent."

How in the world could a part-time legislator receiving full-time pay be misspending taxpayer money?

Oh I don't know, maybe by neglecting his duties and not returning to Harrisburg during September's limited session while collecting his full salary of $76,613.

Read the Philly Inquirer and the Post-Gazette for details.

Vince & Anchorwomen

Another reason to privatize the turnpike: to derail Vince Fumo's efforts to use the Turnpike Commission to hook up with attractive Philadelphia news anchorwomen. From the Philadelphia Daily News:

On Thursday, we reported that the embattled state senator once tried unsuccessfully to court CBS 3 anchor Alycia Lane. We have since learned that Fumo had previously shown an interest in Fox 29 beauty Kerri-Lee Halkett.

Fumo and FHM magazine seem to be on the same page. Both Halkett and Lane were featured in the magazine's sexy newsladies online poll.

Shortly after Halkett started at Fox 29 in 2002, she was invited by her neighbors Ruth Arnao and Mitch Rubin, the state Turnpike Commission chief, to join the couple and Fumo for dinner at the Capital Grille.

More Vinsanity

A press release from Senator Vince Fumo's office dismisses any notion that Pennsylvania business taxes are too high, citing select data showing Pennsylvania has merely a mediocre economic record (not "an oppressive and tyrannical business-tax purgatory").

As far as the minimal tax cuts included with the 2006-07 budget, Fumo states:

"Once some people start receiving help from the government, they never seem to be satisfied unless they get more."

Fumo equates tax cuts with "help from the government." I'm sure all businesses are thanking Mr. Fumo and the General Assembly for agreeing to not take as much of their money next year. Thanks for the help.

FYI, I helped millions of Americans today -- I didn't rob them.

Cut Legislature First

The Philadelphia Inquirer editorializes that the first item to be cut from the budget should be the legislature's budget, noting this is the source of funding for bonuses, no-work jobs for mistresses, and Fumo's posse (not to mention the legal fees tied to Bonusgate and legislators' promotional calendars).

For the past two months, the public has been treated to daily allegations in federal court of how State Sen. Vincent J. Fumo (D., Phila.) spent "other people's money" - including taxpayer dollars - on himself. Prosecutors say he misused more than $2 million in Senate funds.

Attorney General Tom Corbett is prosecuting a dozen current and former House Democratic staffers and officials in a scheme that allegedly paid aides $1.3 million of taxpayers' money for campaign work. One aide, the former chief of staff to House Majority Whip Bill DeWeese (D., Greene), earned $42,000 in bonuses over three years while allegedly hiring a beauty queen with taxpayer money so she could become his paramour.

Republicans also spent hundreds of thousands of dollars from state coffers on staff bonuses, although apparently not for campaign work. Either way, the habit was an extravagant use of tax money. And a grand jury is examining whether the House GOP improperly used a $9 million taxpayer-funded database for political purposes.

The Inky could have added that the legislative leadership accounts currently have an estimated $250 million in reserve that they are sitting on, and that Sen. Fumo and Rep. Mike Veon have also, allegedly, been illegally using the several hundred million in legislative-controlled WAMs.

Perzel, Fumo at Secret Budget Negotiations

John Micek reports on the details of the secret budget negotiations:

The players last night:
House Dems: Majority Leader Bill DeWeese, Whip Keith McCall and Appropriations Chair Dwight Evans.
House Republicans: Minority Leader Sam Smith, Appropriations Ranking Member Mario Civera, and, for reasons that continue to elude us, Rep. John Perzel.
Somewhere In The Middle: Speaker Dennis O'Brien.
Senate Dems: Minority Leader Bob Mellow and Sen. Vince Fumo.
Senate Republicans: [Majority Leader Dominic]Pileggi and Appropriations Chairman Gibson Armstrong.

I too am perplexed as to why someone who was voted out of leadership by his own caucus (Perzel) and someone who resigned his leadership position as he is under indictment for misspending taxpayers' money (Fumo) are negotiating how to spend taxpayer money on behalf of their caucus.

I also fail to understand the justification for subverting the normal legislative process to negotiate the budget in secret meetings. Furthermore, the Open Meetings/Sunshine Act - which requires every other type of meeting among state and local government bodies - has a loophole for "unofficial meetings" like the secret budget negotiations.

But for a body that already has a reputation for corruption, is circumventing the Open Meetings law to negotiate the most important piece of legislation really a good way to show how reformed you are?

Government Ethics: Alaska vs. Pennsylvania

Amanda Carpenter writes about a report that Alaska Governor Sarah Palin may be cited (though no penalties would be attached) for ethics violations for ... wait for it ... using her fame to raise fund for her legal defense against other nuisance complaints.

Contrast that with the case of Vince Fumo, who not only did the same (using his status to raise legal defense funds), but also used his clout to get legions of politicos and business leaders to write letters to the judge, asking for lenience, since Fumo had done good when he other people's money legally. None of this is considered unethical in Pennsylvania. Of course, stealing millions of dollars is frowned upon in Pennsylvania, but only deserving of a slap on the wrist.

With little indication of a sense of irony, Rep. Mark Cohen has made a few comments on Twitter about Gov. Palin's ethics accusations (and about Mark Sanford). Naturally, the guy who spent $30,000 of taxpayer money for books for personal use would want to chime in on whether Palin may or have not benefited from her office. The guy who let taxpayers foot the bill for his trips to New York (even while other lawmakers paid their own way) sees fit to comment on Mark Sanford's travel habits. Of course, Cohen also sees no need to adopt good-government reforms in Pennsylvania.

Another Pennsylvania House Democrat staffer also saw fit to post on the Palin story, again with an amazing lack of self reflection. After all, it is his caucus (two members and several staff) who have been indicted in "Bonusgate" for using tax dollars for bonuses for campaign work, political polling, and no-work jobs for candidates and mistresses. And one of those indicted members - Mike Veon - has implicated his boss and others for doing the same sort of illegal activity. Of course, they aren't merely using "fame" to raise money to defend these charges, they are using taxpayer dollars.

And I'd be remiss if I failed to point out that former Pennsylvania lawmaker Frank LaGrotta - also a convicted felon - is now blogging about Pennsylvania politics. In his latest, he longs for the good old days, when folks like Fumo, Veon, and he ran the show.

Pennsylvania may not be the most corrupt state in the union (what will Illinois having back-to-back Governors heading off to prison), but it's got to be close. Could you imagine what Pennsylvania would be like with Alaska's ethics laws?

Turnpike chairman Rubin under fire as "ghost employee" of federal defendant Fumo

TOLLROADSnews, the toll road industry's news website, highlights the connections between the Pennsylvania Turnpike Commission and Sen. Vince Fumo's upcoming federal trial.

We're still scratching our heads as to why the media is not investigating the "no-work" job of the currently sitting chairman, Mitchell Rubin, and the connections to his wife who is a co-defendant in the Fumo trial.

And Gov. Rendell and the General Assembly allowed the Turnpike Commission to EXPAND it's corruptive power?

Hopefully the Federal Highway Administration will see the Turnpike Commission for what it is and deny it the ability to toll Interstate 80. (Read our letter to the FHWA here.)

Then we can finally rid ourselves of this patronage cesspool by leasing the Turnpike for $12.8 billion to a private operator who will give us better service and save us from the "power, patronage, and politics" of the PTC.

Is PA Government the Worst?

Pittsburgh Tribune-Review story on a Tim Potts presentation on taking Pennsylvania from "worst in the nation" to "best in the nation" in terms of good government.

Unfortunately, spokesmen for the Governor's Office, House Republicans, and Senate Republicans defend Pennsylvania, as not being "the worst". While it is true that a lot of other states have had some corruption problems, here is some of Pennsylvania's recent dirty laundry:

• PA Senate investigating Gov. Rendell and Lionsgate for violation of (weak) state lobbyist law.
• Attorney General's Office investigating House Democrats (and possibly other caucuses) for illegally awarding taxpayer-funded bonuses to staffers for campaign work.
• 100+ count indictment against Senator Vince Fumo for a variety of misusing taxpayer funds.
• Corruption and Nepotism at the Turnpike Commission, including ties to Sen. Fumo
• Vince Fumo crafting legislation to expand the Turnpike Commission, which passed much as did the pay raise of 2005.
• Former Senate GOP staffer Mike Long lobbying for the Turnpike Commission, and though legally barred from lobbying the Senate, still serves on the Senate Republican Campaign Committee.
• Representative Mark Cohen's book binge.
• Use of "public service ads"
• Taxpayer-funds being used to lobby for more taxpayer funds, and for more power and authority.
• Bonuses at PHEAA
• PHEAA's legal fees to avoid open records.
• WAMs
• Two Rendell cabinet members awarding taxpayer funds to companies with financial ties to their spouses, then being confirmed by the Senate.

As Tim Potts frequently points out, there has only been one reform law passed since the pay raise - the weak lobbyist disclusure law. So despite ending session at 11 and using the internet to post legislation and video (welcome to the 1990s) and though the Senate is still working on that Open Records bill (if only they had worked as long on Act 44), Pennsylvania has to be pretty low - if not rock bottom - when it comes to cleaning up state government.

I will concede the point to Ardo, Arneson, and Miskin; we may not have the most corrupt state government. Just a pretty awful one.

Will Fumo Conviction Deter Public Corruption?

Alex Charyna mocks Governor Rendell's ridiculous statement that Sen. Vince Fumo (sentenced to 55 months in prison, or about 12 days for each felony conviction), should only spend one year in prison, because that "would have been a sufficient warning to any potentially corrupt politician."

Truly, any observer of Harrisburg, or Philadelphia, or Luzerne County politics must find that laughable.  As Alex notes,

I’m curious though…. have one year sentences in the past deterred any political corruption?

How many Pa politicians were in jail ahead of Senator Fumo?

He’s not the first, and he wont be the last.

Perzel Turned Away From Budget Meeting

Capitolwire story on John Perzel's quest to be included in the budget negotiations, see summary on GrassrootsPA.com. Three things about are troubling:

1) That John Perzel is trying to ensure the budget negotiations fail, until he comes in to "make a deal" with Rendell that will help to return him to the Speaker's chair (I thought last time he ran for speaker he promised to promote fiscal responsibility and oppose Rendell's initiatives - at least, that is what he promised Daryl Metcalfe.

2) Vince Fumo was allowed to participate, despite no longer being Appropriations Chair. This was justified because while Perzel lost his leadership post because the members didn't vote for him, Fumo merely had to resign because he was under indicted for (among other things) mis-appropriating state money for personal use. Exactly the guy you want in the budget negotiations.

3) That they are already holding closed doors meetings to discuss the budget - I guess that vote in the House on the budget and on Rep. Civera's alternate budget was, as well as any work done in the Senate, is all just for show.

Fumo's still a force despite legal woes

Sen. Vince Fumo tells the Patriot-News that "I'm not afraid of [a trial] ... I think when everyone hears our case, they'll be very impressed."

"Impressed"? That's an interesting characterization. Usually those who have been unfairly indicted (139 counts, mind you) will claim that their case will exonerate them because of the facts. Who knows, maybe "very impressed" will work again to help us "see the facts in a different light" ... as was done the other two times he has escaped the long arm of the law.

Taxpayers Spend $2.3 Million to Defend Fumo

ABC 27 has a story on the amount of OPM - "other people's money," i.e. taxpayers - used to defend former Sen. Vince Fumo, who was convicted of illegally using OPM: $2.3 million.

That's quite a bit of money, to put it in perspective (and to give some ammunition to Kevin Bacon and the "Save the Govies" cause): it would nearly be enough to fund the Governor's Schools of Excellence program for a year.

Legal fees double taxpayers' cost in bonus scandal

Tribune Review story highlights the millions of taxpayer dollars spent on legal fees - the bulk by House Democrats - in response to the bonusgate investigation.

Taxpayers picked up the nearly $2 million tab the House Democratic Caucus paid private lawyers during the past 18 months, state records show. ...

It's not uncommon for state employees and elected officials to received taxpayer-funded legal aid for costs arising from questions associated with official duties. Typically, that support ends when an employee or official is charged criminally.

For example, state Sen. Vincent Fumo, D-Philadelphia, billed taxpayers more than $1 million for
attorneys' fees between 2003 and 2006 while federal authorities investigated him. His tax-funded legal aid ended in February 2007 when a federal grand jury issued a 139-count public corruption indictment against him. He is scheduled to go to trial in September.

Official duties? This isn't a lawsuit alleging a law was passed unconstitutionally - such as the Pay Raise (Stilp v. Jubelirer, Perzel, et. al. and other suits) or the Gambling Law (Pennsylvanians Against Gambling Expansion, et. al., v. Rendell, Jubelirer, Perzel, et. al.) - but a criminal case alleging theft, as is the Fumo case.

Is theft an official duty of lawmakers? That is, theft they haven't made legal.

And this time, Bill DeWeese can't claim "I know nussing"

Budget Updates

Some stories on the state budget negotiations:
Patriot News
Post-Gazette
Inquirer/AP
AP on tolling I-80, quoting PennDot study from two years ago:

"Based on the long timetable to realize benefits, the high cost of converting the road to toll, and the fact that a financial break-even point is decades away, it is recommended that converting I-80 to a toll road not be pursued at this time," the study reported.

Patriot News on Turnpike Tolls (also see our News Release from early Saturday)

And this gem from Capitolwire.com:

Sen. Vince Fumo, D-Philadelphia, who backs Rendell’s attempt to win passage of the energy bill, said Pileggi and Scarnati “were still representing their caucus, not leading their caucus. Neither of them have ever done this before. They are new leaders.”

So Scarnati and Pileggi are, in fact, listening to the opinions of others, being rational, and "representing their caucus" instead of "leading", like Vince Fumo does? I say Bravo! There is a reason there are not "Be like Vince" commercials.

Will taxpayers get their share of "The Fumo Mansion"?

Editorial from the Philadelphia Inquirer on the sale of Senator Vince Fumo's $7 million mansion.

The Inky hopes he gets the full price so that the taxpayers might get their cut of the house sale proceeds ... particularly since we paid for his vacuum cleaners!