Archive for June 16th, 2009

Representative Michele Brooks is Against Increased Taxes

LEGISLATOR ANNOUNCEMENT
with commentary by Roberta Biros

In a press release this evening, Representative Michele Brooks (R-17-Mercer, Lawrence, Crawford) made her thoughts clear about the current 2009-2010 budget negotiations. In her official release, Representative Brooks states:

“I am strongly opposed to a plan announced this week by the administration that would raise the Personal Income Tax from the current rate of 3.07 percent to 3.57 percent to fill the state budget hole. “

“Hard-working families all across Pennsylvania are struggling to make ends meet, and they cannot afford to lose additional money from their paychecks. Unfortunately, some in government think that they can overspend and then turn to the taxpayers to pay the bill. That’s not responsible government. We need to prioritize and control spending, and allow families to spend their money how they see fit.”

In addition to her clear stand on the proposed tax increase, Representative Brooks also offers the following explanation regarding other proposed budget issues:

Tax Increase = Lost Jobs

The Commonwealth Foundation and the National Federation of Independent Businesses has estimated that an increase in the Personal Income Tax will cost 24,000 jobs in Pennsylvania. Hard-working families are being hit in the wallet from all different directions, and state government should not be adding to that burden.

State Parks Should Not Close

Also at issue during state budget negotiations has been the threat of closing state parks as leverage for the administration to gain support for its spending increases. State parks are a valuable resource to our residents and the local economy, and with a $94 million line item for the Department of Conservation and Natural Resources, there is no reason why they should be closed.

In closing, Representative Brooks explains her position on the budget through the use of a simple common-sense statement as follows:

“To help reach a responsible budget, we’re asking that government tighten its belt during these difficult financial times, just like families in the 17th District have been doing. We cannot ask these families to shoulder a larger burden. “

My Commentary:
Some might say that Representative Brooks’ stand is not cutting-edge or particularly creative. I would agree. I would also point out that as a fiscal conservative, I’m not always looking for cutting-edge. Difficult situations often require simple and time-proven solutions. The current fiscal outlook for the Commonwealth of Pennsylvania is not particularly bright and sunny. If lawmakers don’t take fiscal responsibility seriously sometime soon, we will find ourselves in a hole that is too deep to escape.

Fiscal conservatives (like Rep. Brooks) need to stand firm on the basic fundamentals right now. In this case, her statements come straight from the “Fiscal Conservative Handbook” (of which I have two copies . . . one for each hand). It will only be by sticking close to our principles that we have a chance of getting out of this mess.

I’m counting on the lawmakers that are listed on my “Directory of Fiscal Conservative Pennsylvania State Legislators” to watch out for our best interests during the current budget talks in Harrisburg. I’m hopeful that Representative Brooks (and the others from the list) can talk some ‘common sense’ into their colleagues in the House in order to keep spending down and maintain a ‘tight belt’.

As always, just my opinion.

REFERENCE: To view Representative Brooks press release, CLICK HERE. To access her website, CLICK HERE. To sign up for email updates, CLICK HERE.

BLOG POST UPDATE

The issue of potentially raising the Personal Income Tax was also covered by WFMJ today. They include footage of the Governor, they have a brief interview with Rep. Brooks, and they discuss the proposed tax hike with locals. View the video by clicking HERE.



In a front-page story in The Herald, Reps. Stevenson and Longietti also oppose the proposed tax increase. Rep Longietti “called Rendell’s proposal premature, and still believes enough savings can be found in the budget to close the gap”, according to The Herald.
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What are the Possible State Budget Outcomes?

G. Terry Madonna & Michael L. Young published a great overview and summary of the Pennsylvania State Budget situation in their latest article titled “Déjà Vu All Over Again”. The article is a wonderful summary from start to finish and I suggest reading the full article HERE. They provide a wonderful simplified overview of some of the possible outcomes of the budget negotiations as follows:

  • Probably the really bad news is that state fiscal conditions are likely to grow worse before they improve. In fact, they may be worse than we know. Historically, states have been poor at estimating future revenues. A recent report issued by the National Conference of State Legislatures asserts that some 30 states had overestimated revenues from their income tax or sales taxes in the current year. Moreover, state fiscal conditions typically worsen as the economy begins to recover. That’s because job creation lags other economic events, placing heavy burdens on the states for aid to those without employment or health insurance. Bottom line: if you think this year is bad, wait until next year.
  • An income tax hike in 2009 is likely if not certain. That pattern was firmly established during the last three recessions (1983, 1991, and 2003) when the Pennsylvania legislature raised the state income tax to balance the budget. Since this budget deficit is substantially larger than the three previous ones, a tax hike is all but inevitable. To make it palatable to legislators, it will probably be proposed as temporary and include a rescission component that will reduce the new rate after the emergency is over.
  • There will be significant expenditure cuts before a new budget is inked. Rendell has already announced major cuts from his original budget, and Republicans who control the state Senate have already proposed even deeper cuts. Where the final reduction will be made is not yet clear, but in other states education, corrections, and health care, including Medicaid, are bearing the brunt of the cutbacks.
  • Many painful concessions will have to be made to settle this year’s budget. Senate Republicans have their own budget – a $27.3 billion spending program passed along party lines. Meanwhile, House Democrats can neither get the Rendell budget adopted or an income tax increase passed without Republican votes. The Democratic House and the Republican Senate seem hopelessly divided, but inevitably, time worn Pennsylvania horse-trading tactics will be on display. But even that may not be enough. The rhetoric coming from both sides this year is sharp and divisive. Unusual political leadership will be needed to broker the necessary compromises.

The budget deadline of June 30th is looming. The next few weeks will prove to be very interesting as Republicans and Democrats wrestle with the budget (and each other) as they attempt to finalize the 2009-2010 budget.

The article quoted above was published in Politically Uncorrected, which is published twice monthly. Dr. G. Terry Madonna is Professor of Public Affairs at Franklin & Marshall College, and Dr. Michael Young is Managing Partner of Michael Young Strategic Research. CLICK HERE to read the full article.

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Juneteenth Celebration in Farrell, June 20, 2009

The Juneteenth Celebration will be held in Farrell on Saturday, June 20, 2009. It is suggested that attendees bring their own chair for the parade that is scheduled for 10:30am on Saturday. The parade will proceed down Roemer Blvd. from Indiana Avenue.

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Using Budget Negotiations to Push Through Legislation

Written by Roberta Biros

With the budget deadline of June 30th only two short weeks away, the negotiations should start getting very interesting, and I’m hopeful that ALL options will eventually make their way to the table. Perhaps this is the time for forward-thinking legislators to start pulling out the stops . . . bring out every cost saving measure now while they have a chance of receiving public attention. Use the budget crisis (and panic) to bring attention to legislation that has the capability of cutting costs in other ways. It is going to happen on both sides of the aisle, so EVERYONE should exploit this opportunity.

This morning I heard that the issue of expanding casino gambling in Pennsylvania into table games has been thrown out as a possible income generator (in lieu of tax increases). Another idea that is being tossed around nationally is the legalization of marijuana as a possible new tax revenue for States. These are just two of MANY ideas that will float around Harrisburg over the coming weeks. Perhaps fiscal conservatives need to take advantage of the dire situation to come up with a few solutions of their own.

One particular issue comes to mind for me . . . the elimination of COLAs for lawmakers. I know . . . I’ve been beating this ‘dead horse’ for months, but maybe now is the time that ‘this horse’ gets up and starts running again. There are a number of House Bills floating around that outline the elimination of cost of living adjustments (COLAs), and I’ve written extensively about all of them HERE. House Bill 633 (my personal favorite), has been sitting in the House RULES Committee for months. This might be the perfect time to resurrect a cost cutting measure like the limitation of future raises for lawmakers in an effort to trim a little more spending from that bloated budget.

This might be the perfect time to pull out any issue that cuts costs . . . no matter how much. Why? Because EVERY LITTLE BIT WILL HELP. Even minor cost cuts add up when they are combined together. I’ve heard numerous suggestions of ways that Legislators could cut costs within their own offices, and maybe now is a time to make all of those ideas public too. I always hear constant complaints that individual cost cutting ideas only account for some “minimal” amount of money, but if you implement enough of them you can make a significant impact across the board. Besides, it would be great to see some good will gestures coming from Harrisburg too.

I’ve said it before, and it doesn’t cost me anything to repeat it again . . . NOTHING SHOULD BE OFF THE TABLE during this budget negotiation. EVERYTHING should be up for discussion! Democrats and Republicans are going to use the budget to negotiate all of their pet projects, so I see no reason why fiscal conservatives shouldn’t jump on the bandwagon in an effort to push through some of their “pet projects” too.

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2nd Annual Wing Cook-Off Sharon PA, June 18 2009

ACCORDING TO THE ADVERTISEMENT IN THE HERALD

Come vote for the best wings in Mercer County at the Second Annual Wing Cook-Off on Thursday, June 18, at Tully’s Restaurant in Quaker Steak & Lube, Sharon.

The event, a benefit for United Way of Mercer County, lasts from 5pm to 8:30pm. Tickets cost $15 per person, with the first 100 attendees receiving a FREE Wing Cook-Off t-shirt. In addition to trophies for the winners, the Wing Cook-Off will feature drink specials, restaurant mascots, games and prizes.

You will be judging the restaurants’ wings in categories including: Hottest Sauce, Most Creative Sauce, Best BBQ Sauce and Traditional Sauce. Come be adventurous and try every sauce, even the hottest and most creative ones! At the end of the event trophies will be awarded to the winners and one restaurant will be crowned 2009 Wing King!

The 2009 event will feature over thirty different kings of wings from Our Gang’s Lounge, Quaker Steak & Lube, Tony’s, Cianci’s, Hickory VFW, Marchelloni’s, Thelma’s Sports Nook, Legends Sports Pub & Grille, Nick’s Inn 62, Nittany Pub & Grille, and Billy’s Black & Gold. The event is sponsored by Quaker Steak & Lube, Greenville Savings Bank, The Herald, WPIC & WLLF the River, WFMJ, and First National Bank. All local restaurants are invited to participate. For tickets or more information contact the United Way of Mercer County at 724-981-1884.

Personal Note:

I’ll be there. How about you? This is a great evening out . . . especially if you like great wings. It is good fun for a worthy cause . . . the United Way of Mercer County. Tickets can be purchased in advance, but they will also be available at the door. It is great use of a Thursday Night!

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