Capital Rants

A potentially ugly $75 million

The Commonwealth Foundation, which tends toward the conservative, has dissected the state budget deal, breaking it down into the good, the bad and the ugly.

You’ll be surprised to find out what tops the list of “the ugly.” None other than the governor’s $75 million pre-kindergarten initiative, designed to provide free pre-school programs to 11,000 children across Pennsylvania.

How could that possibly be ugly?

Well, according to the Commonwealth Foundaton, “the eventual expansion of universal preschool throughout Pennsylvania will cost taxpayers billions of dollars in higher property taxes, while simultaneously running private and religious pre-schools out of business.”

Wow.

In truth, this pre-kindergarten initiative isn’t ugly yet. But the Commonwealth Foundation analysis is a reminder that it’s an issue worth watching in the years to come.

Consider:

The program starts with $75 million this year. That means subsequent state budgets will have to include at least $75 million to maintain the new pre-K classes. Otherwise the programs shut down, or the costs shift to the local levels.

Any effort to expand the program to include more children will drive up the annual cost. Can you imagine Gov. Ed Rendell not wanting to expand the program in subsequent years?

Applicants for the funding in York County include the York City School District, which would like to start a class for 20 kids, ages 3 and 4, in each of the district’s six elementary schools. Who can argue with that? Free pre-school programming for at-risk students in the county’s poorest school district. Wonderful.

But does that mean we’re going to see pre-school programs pop up in other public school districts? And is that really a direction we want to head in?

Remember, these are school districts with elementary schools already bursting at the seams. These are school districts that haven’t hestitated to raise taxes well above the rate of inflation, year after year, to educate kids in grades K-12.

And, remember, it wasn’t too long ago that the state used grant funding to entice school districts to expand kindergarten classes to full day for at-risk students. Now full-day kindergarten for all students, at taxpayer expense, is becoming more and more common.

A Pre-K Counts Q&A on the state Department of Education Web site promises the program won’t impact local taxes. But it certainly will funnel a substantial amount of education funding in a new direction.

And that means the money won’t be available to help district’s cover current costs. Wouldn’t that have been the best form of tax relief possible?

Ugly?

Not yet.

But the potential is there.
 

Mitrick, Kilgore belong on the ballot

My advice to commissioners Lori Mitrick and Doug Kilgore. Go for it. Run a write-in campaign for the November election. You belong on the ballot anyway.

I’m not saying that because I think the outcome of the May primary wasn’t a true reflection of voters’ sentiments.

And I’m certainly not saying that because I think the park project Mitrick and Kilgore support is a grand idea. Seizing Highpoint and part of Lauxmont Farms is a misuse of eminent domain. The public has been misled about how much it will cost. And, given the county’s other needs, a new park should be low on the commissioners’ list of priorities.

So why should they run?

Because without Mitrick and Kilgore as candidates, thousands of voters will go to the polls in November to select candidates for commissioners. They will have four choices. They will have three seats to fill.

And that’s simply not enough choice.

State election law is crafted to ensure the board of commissioners has a representative from each party. That’s nice for the parties. That’s unfair to voters who want a say on who should hold the county’s highest elected positions.

Who should be more important? Voters, of course.

Voters had plenty of choices for commissioners in the primary — seven Republicans and three Democrats. But voter turnout is poor in municipal primaries. This year, 19 percent of eligible voters turned out. So we wind up with commissioners essentially being elected by 19 percent of voters.

Even that number is deceiving. Remember, voters who aren’t affiliated with a major party can’t vote in a primary. They’re the ones really cheated under current law. They have no say in whittling the field of commissioner candidates. They get to the poll in November and have four choices for three seats. Why bother?

State election law needs to be changed so that the number of candidates advancing from the primary is twice the number of available seats. Let three Repulbicans advance. Let three Democrats advance. Who cares if the board of commissioners winds up with three Republicans or three Democrats? These aren’t partisan positions.

Under that arrangement, Mitrick and Kilgore would already be on the ballot in November. Mitrick finished third among Republicans in the primary. Kilgore placed third among Democrats.

So run as a write-in, Lori. Go for it, Doug.

Voters deserve the choice.

Besides, it will make for a far more entertaining commissioners’ election.

High price for a tantrum

Let July 9, 2007, forever go down in Pennsylvania history as Gov. Rendell Throws a Tantrum Day.

That, of course, was the day Rendell furloughed 24,000 nonessential state government workers because Republicans wouldn’t cave to all his budget demands.

After all, how could he possibly authorize paying all those nonessential state workers without the prospect of a budget deal in place? So what if the state enjoyed a $650 million surplus.

Now, the good folks in the governor’s office are doing their best to make us forget that day. The governor’s press office is churning out the press releases, touting how wonderful the new state budget is on all sort of fronts.

And, guess what? The 24,000 nonessential state workers will be paid for being off on Gov. Rendell Throws a Tantrum Day. To the tune of about $3.5 million.

Which is only fair. Because it wasn’t the employees’ idea to stay at home and enjoy a three-day weekend. It was all the governor’s doing.

And what about all those visitors who had their vacation plans ruined on Gov. Rendell Throws a Tantrum Day when they were kicked out of state park campgrounds?

Well, you’ll be happy to know the state Department of Conservation and Natural Resources is busy refunding their money, according to department spokeswoman Christine Novak.

Those campers who paid by credit card have probably already received their refunds, she said Thursday. The department is processing refunds for those who paid by check as quickly as possible. And anyone with a question about a refund is encouraged to call a toll free number: 888-PA-PARKS.

Of course, while DCNR is paying out refunds, the governor’s office is sending out a press release boasting how great the new budget is for tourism. In it, the governor talks about the state’s commitment “to provide a world-class experience for people looking to get away for a day or a week or longer.”

Some world-class experience. Visit a state park campground and get kicked out because the governor is bickering with Republicans over a budget when the state enjoys a $650 million surplus.

So perhaps the governor would like to send out a personal message with those refunds. He could apologize for the furlough. He could explain that he’s merely committed to making a great state greater. (He is, you know. It’s just that his spending sprees make fiscal conservatives very, very nervous.) He could explain that, as a result of the budget deal, visitors to Pennsylvania should have better roads and bridges to travel over in the future.

And, on top of all that, he could include a coupon for a free one-week stay at a state campground sometime in 2008. That might entice some of those disgruntled campers back to our state parks.

Capital Rants would add this P.S.: Please avoid the month of July when scheduling your next visit. After all, Mr. Rendell will be our governor for three more years.

Plenty of money, but not for growing schools

The vote was symbolic because Democrats control the state House, and there was no way they weren’t going to pass a state budget Monday night.

But York County’s Republican delegation in the House took a united stance by voting against the budget. Then they repeated what’s become their mantra: Our growing school districts need more money.

While Gov. Ed Rendell and lawmakers far and wide pat themselves on the back for all the education funding in the budget, local lawmakers once again find themselves in the position of questioning priorities.

The budget includes $90 million to put laptops in classrooms. It includes $75 million for a brand new program designed to give parents access to free pre-kindergarten programs.

The state is spending $225 million to provide the Pittsburgh Penquins with a new arena. And the budget paves the way for a $75 million tax credit for companies that want to make movies in Pennsylvania.

“Meanwhile, they tell us – we’re dealing with a basic education formula based on student head counts from 1991 and we’re trying to get it updated — they tell us there’s not enough money for growing school districts,” said state Rep. Steve Nickol, R-Hanover, who described education funding as a “huge factor” in his decision to vote against the budget.

In truth, the state didn’t say there wasn’t any money for growing school district. The budget includes a $2.5 million growth supplement.

Of course, that’s a whopping 2.8 percent of what we’re spending on laptops. And amounts to next to nothing when split among the state’s growing school district.

The result: When calculated on a per student basis, 25 school districts will receive less money this year than last year, according to Nickol. That includes the Dallastown Area School District.

State Rep. Ron Miller was scathing in his criticism of the state budget the morning after the vote. State Rep. Beverly Mackereth took the same tone in a statement released yesterday about the state education bill.

“York County is experiencing an incredible rate of growth, and this funding does nothing to help districts keep pace,” Mackereth said, adding the $225 million for an arena in Pittsburgh does “nothing to dispel” the belief that “athletes get undeserved special treatment in our society.”

Mackereth’s comments are undercut somewhat by the fact that the school district in her own back yard — Spring Grove — is squandering $9 million in taxpayer money to build a new football stadium and upgrade atheltic fields.

But the question posed by local lawmakers is legitimate. How do growing school districts miss out when there’s so much new spending in the state budget?

And I’d add a second question. The governor and many of the lawmakers who voted for the budget would also tell you they support a fairer system for school property taxes. That being the case, how can they continue to support a state school funding formula that’s blatantly unfair?

Playing the numbers game

Numbers can be twisted to say just about anything you want. The debate over the state’s still incomplete budget is a classic example of that.

Late last week, before the furloughs, while the sides were trading barbs, the governor’s supporters were pointing to a new report by the National Association of State Business Officials.

The report indicated state spending would jump 3.6 percent under the governor’s plan. That ranked 33rd in the country, below the national average of 4.2 percent, the report said.

Ah, but numbers can be twisted, and we soon learned that millions in transit funding was being removed from the state’s general fund budget. So the true increase in state spending is 4.5 percent. Even the governor has since been quoted using that figure.

That means the state leapfrogs Nebraska, Colorado, South Carolina, Indiana, Washington and even New York on the least frugal list. And 4.5 percent is, one will note, above the national average of 4.2 percent.

That’s, of course, if the other percentages in the study can be trusted.

I could do the opposite of the governor’s supporters, casting the 4.5 percent in the worst possible light. After all, the state assigns inflation indexes to school districts and tells them to try to hold tax increases under those indexes. Twelve of York County’s 16 school districts were given indexes of less than 4.5 percent this year. So the state can’t do what it asks school districts to do?

But that would be ignoring the fact that the state has far more than 16 school districts, and more than half of those listed on the state Department of Education Web site were assigned indexes of more than 4.5 percent. What’s more, lots of districts were granted permission to raise taxes more than 4.5 percent because of rising health care and pension costs.

Those are costs facing state government, too, making a 4.5 percent spending increase look more palatable.

But will it be palatable enough for Senate Republicans?

We still don’t have an official budget. And the $27.5 billion plan we were hearing about earlier this week is a whole lot closer to the budget House Democrats passed last month than to the $27 billion budget Senate Republicans wanted.

Sen. Gib Armstrong, whose district includes a portion of York County, was among the loudest proponents of less spending. The Republican plan, he said, held the state spending increase to 2.7 percent. He boasted about how it included no costly new or expanded programs. 

He also said this: “This document will not be encouraging to the groups seeking additional state funding for a variety of purposes. But it will be greatly encouraging to the taxpayers who have long wanted to see fiscal restraint be a reality, not just rhetoric.”

Given that type oF rhetoric, it will be interesting to see which side our Republican lawmakers fall on when the state budget finally comes up for vote.

Good news for taxpayers, so far

As details of the state budget deal trickle out, let’s review what seems certain at this point.

For the most part, it’s good news for residents adamant that state lawmakers hold the line on taxes, and on taxes disguised as fees.

* Gone is a proposal to tax oil company profits – a proposal Republicans said would surely raise the price we pay at the gas pumps. It’s been replaced by future tolls on I-80, if federal approval is granted.

* Gone is a proposal to raise the sales tax from 6 to 7 percent to help fund this year’s budget. The governor pulled that proposal because the state’s fiscal situation turned out to be rosier than he expected. We can expect the sales tax debate to be revived at a later date under the guise of property tax relief.

* Gone is a proposal to increase trash tipping fees to replenish the state’s fund for cleaning up hazardous sites. Proposed at $2.75 per ton, the new fee would surely have trickled down to consumers in the form of higher trash bills.

* Gone is a proposed electricity surcharge proposed by the governor as a way to fund his energy plan. The governor’s office estimated the surcharge would cost the typical household $5.40 per year. But the proposal might only be gone temporarily. The governor plans to call a special session to consider his energy proposals in September.

But while some Republicans are thumping their chests and proclaiming victory about beating back the governor’s push for higher taxes, let’s not forget that the devil is in the details, and those truly are still trickling out.

And let’s not forget that the governor seems to have gotten his nearly $1 billion in new transportation funding per year. Decisions on many of the other issues have merely been postponed, not settled.

Baffled by the shutdown

I’m baffled.

Thousands of state workers have been furloughed, supposedly because the state has lost the authority to pay nonessential employees since a new fiscal year started July 1 and lawmakers still haven’t passed a budget.

If that’s the case, why were state employees still on the job July 1? July 2? July 3? July 4? July 5? July 6? July 7? July 8?

I’m baffled.

Money to pay state workers can’t be an issue. When I did some shopping over the weekend, I still paid sales tax. When I get my paycheck tomorrow, I’m sure state taxes will be taken out.

Clearly, revenue is still flowing to the state in the new fiscal year, budget deal or not. So why is it state workers aren’t on the job and aren’t being paid?

I’m baffled.

Last week, Gov. Ed Rendell was quoted as saying the following about state Sen. Gib Armstrong’s unwillingness to bend on proposed spending in the state budget. Armstrong is a Republican, and represents a portion of York County.

Said the governor: “I was stunned. How can any decent and honorable man say there is not enough money for pre-kindergarten funding when there is a $600 million-plus surplus. Of course, we have the money. Politics and posturing shouldn’t be driving this train.”

So the state’s flush with cash. And it’s dishonorable not to spend that money on pre-kindergarten programs in our schools, according to our governor.

But it’s honorable to furlough state employees when the state is flush with cash? And politics isn’t behind that decision?

I’m not that baffled. 

Priorities out of whack?

Anyone reviewing the list of what will close and what will remain open if thousands of state government workers are furloughed Monday might think the state’s priorities are out of whack.

State driver’s license centers will close, so if you need a photo taken for your driver’s license, you’re out of luck. But if you’re feeling lucky even after 7-7-07, feel free to snatch up a few lottery tickets. The state lottery will keep humming along, budget deal or not.

So, you say you’ve reserved a campsite at a state park next week? After all, July is one of the busiest months for tourism in a state always anxious to promote itself as a tourist destination.

Too bad. State parks are on the list of closures if the budget stalemate continues. But while recreation at a state park might be out of the question come Monday, state liquor stores will stay open. So you can buy all the booze you want while you’re stuck at home.

There’s actually logic to this seeming lack of logic.

Only functions of state government paid for out of the general fund would be affected by the furloughs. The state lottery and the state liquor stores are self supporting, so they get to stay open.

Less logical is the fact that, for a fifth straight year, the state’s elected officials failed to meet the July 1 budget deadline.

Think about that for a moment. There are 501 public school districts in the state. Each faces a July 1 budget deadline. Each managed to adopt a budget by July 1. If school districts failed to do so on a regular basis, you can be sure state lawmakers would be drafting legislation to make sure they snapped into line.

Seems like state officials might need more incentive to meet their own budget deadline. Or more disincentive to make sure the budget deadline isn’t missed.

Perhaps the state sales tax should expire when the budget isn’t completed on time. One hour of no sales tax revenue, and here’s betting we’d have a budget deal.

Anyway, this inability to complete a budget on time seems like a perfect topic for the reformers in Harrisburg to tackle.

The big, bad budget bully

Gov. Ed Rendell is doing his best to play the big, bad budget bully.

And as strange as it might sound, news that state government employees are being furloughed Monday might be the best news of all for taxpayers.

We’ve already dodged a couple of bullets this budget season.

The need for a sales tax hike to balance the state budget has disappeared. And the proposed tax on oil company profits — a tax likely to bite us at that gas pumps — has vanished from a pared-downed plan for new transportation spending.

But Rendell apparently isn’t satisfied that lawmakers are ready to concede to more than $700 million per year in new transportation spending. He wants more, linking progress on his energy and health-care reform packages to approval of the state budget.

The governor’s so-called Energy Independence Strategy legislation includes a tax hike under the guise of a “systems benefits charge” on our electric bill. The estimated cost, according to the governor’s office: 45 cents per month for the average residential property. (The actual charges is $0.0005 per kilo Watt hour of electricity used).

That doesn’t seem too steep a price to pay for a program that provides rebates for folks who purchase energy-efficient appliances and incentives to companies developing plans on ways to save energy. Besides, the gov assures us, 15 other states already impose such a fee and 13 charge more than what he’s proposing.

But one suspects the administration’s claims that this will save consumers $10 billion in energy costs over the next 10 years is more propaganda than truth.

As for the budget itself, there’s a $300 million gap between the version approved by the House and the version approved by the Senate. Guess which version Rendell supports?

The governor, clearly, figures he has little to lose in this budget showdown. He has run for office for the last time in Pennsylvania. If thousands of state government workers are furloughed, if parks and casinos are shut down, the political fallout will fall on Republican lawmakers, he figures.

Maybe. Maybe not.

Republicans aren’t the ones pushing for an extra $300 million in state spending in a year when even the governor thought we might have to raise the sales tax to help fund the state budget.

Republicans aren’t the ones tying unrelated initiatives to the budget debate.

And Republicans won’t be the ones sending out the furlough notices.

And, remember, this is the first budget of Rendell’s second term in office. If Republican lawmakers cave in to the governor’s demands this year, what do taxpayers have to look forward to? Three more years of tax-and-spend budget bullying?