Pennsylvania State Budget Deficit

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Welcome to “Mike’s Memo,” an update on what’s happening in the 48th Legislative District, the State Capitol, and the progress on my "Promise to Pennsylvania,” a pledge to advance government reforms, enact meaningful lawsuit abuse reform, eliminate wasteful state spending, and cut taxes. If you haven’t done so already, please take a few moments to visit my website at www.senatorfolmer.com <http://www.senatorfolmer.com/>  to learn more about issues that may affect you and your family.

 

 

 

 

 

- Senator Mike -

 

Week of January 26, 2009

 

 

 

Report Proves Need for Reform

 

     Auditor General Jack Wagner recently released a report <http://www.senaterepublicannews.com/news/archived/2009/StateCarsAudit.pdf>  on the Department of General Services’ (DGS) management of state’s 16,637 fleet vehicles, which details the current system’s lack of accountability to Pennsylvania taxpayers. According to the report, “DGS did not have mileage totals for all employees, much less a breakdown in miles driven for official use versus personal use.” The report also indicated that DGS could not provide “sufficient, appropriate, and verifiable audit evidence to show how state cars were assigned and used.” Perhaps the most staggering finding in the report is the fact that the lack of central management of the state fleet costs taxpayers approximately $72 million a year! 

 

     This scathing report demonstrates an appalling disregard for taxpayers. More importantly, it proves the need for reform and transparency in the management of state vehicles.  Clearly, the time is right to enact my Senate Bill 104 (formerly Senate Bill 1499 <http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2007&sind=0&body=S&type=B&BN=1499>  of the 2007-2008 Session), which would put common-sense restrictions on the use of state vehicles and establish a much more transparent reporting system.  Specifically, the bill would:

 

*         Require employees assigned the use of a state vehicle to drive 1,200 miles or more per month on average on official business (excluding travel to and from work);

 

*         Require state employees using a state vehicle to maintain a monthly mileage log;

 

*         Require DGS to post logs online with the employee’s name, his/her department, and the vehicle make and model;

 

*         Require state employees assigned a state vehicle to reimburse the Commonwealth for insurance and gasoline for personal use; and

 

*         Require assigned vehicles to bear an “official use” license plate (unless the employee performs undercover law enforcement duties).

 

 

 

     Given the Auditor General’s report, we need to look for ways to strengthen my bill so we can establish strong leadership in the way state vehicles are managed, establish more accountability, and better protect taxpayers’ interests and dollars.  Inaction simply cannot be tolerated.

 

 

 

Education Hearing Focuses on Improving School Safety

 

     The Senate Education Committee, of which I am a member, will hold a public hearing this Wednesday on improving safety in Pennsylvania schools.

 

     The hearing will be used to gather information on Senate Bill 55 <http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2009&sind=0&body=S&type=B&BN=0055> , strengthening and expanding criminal background checks for public school employees, and Senate Bill 56 <http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2009&sind=0&body=S&type=B&BN=0056> , expanding the duties of the Office for Safe Schools.

 

 

 

For more information on these issues or other legislative and state topics, or if you are unable to open the bill links, visit the Pennsylvania General Assembly website at www.legis.state.pa.us <http://www.legis.state.pa.us/> .  

 

 

 

 

 

Please feel free to contact me at any time on state-related issues that are of concern to you.  I may be reached through e-mail at mfolmer@pasen.gov, my website <http://www.senatorfolmer.com/connect.htm> , or any one of my offices listed below. 

 

  

Mike Folmer

 

 

Letter to the Editor: State Budget Deficit

 

HOUSE OF REPRESENTATIVES

Commonwealth of Pennsylvania

Phone: (610) 524-5595

 

Rep. Curt Schroder                

155th Legislative District

          

To The Editor:

 

The news is going from bad to worse for the state Treasury. Gov. Rendell recently announced that Pennsylvania’s budget deficit could exceed $2 billion by the end of this fiscal year.  Now, House Appropriations Committee Chairman Dwight Evans (D-Philadelphia) is traveling across the state telling citizens that lower than projected sales and income taxes, and the rush of newly unemployed citizens taking advantage of state-sponsored relief programs, are to blame.

 

Not so fast.

 

For Rep. Evans to suggest that the nation’s economic downturn is the primary reason for our state’s budget crisis is disingenuous. It is, however, accurate to say that it is the result of the Rendell administration’s propensity to over spend. In fact, Rendell’s budgets have routinely increased spending beyond the rate of inflation.

 

From 2002 to the current 2008-09 budget, state spending increased by 38.6 percent while the rate of inflation rose by only 19.5 percent. Even before the state budget was passed in July, there were signs that revenues were not coming in according to Rendell administration projections. Several House Republicans strenuously objected to spending increases and the expansion of programs supported by one-time revenues, and Senate analysts were warning of deficits reaching into the billions. Inflated revenue projections and the use of one-time revenue sources are a prescription for fiscal disaster. Just weeks after the budget passed, Pennsylvania was in a financial crisis.

 

For eight straight months, the administration’s revenue projections have been well below estimates. By the end of December, the state’s revenue shortfall exceeded $814 million. Rep. Evans is telling citizens he will rely on federal economic stimulus money, the state’s Rainy Day Fund and tax and fee increases to bail out the Commonwealth.

 

Economic stimulus money and the Rainy Day Fund would provide only temporary relief. What Pennsylvania really needs are meaningful spending cuts and sound and sustainable fiscal policy. We cannot allow the mismanagement of the budget to be the excuse for a new tax increase.   

Contact Information    

Exton Mailing Address:

      Harrisburg Office:     

315 Gordon Drive

Exton, PA 19341

Phone: (610) 524-5595

Fax: (610) 524-5667

Hours: M-F 9:00 - 4:30  41A East Wing, Capitol Complex

P.O. Box 202155

Harrisburg, PA 17120-2155

Phone: (717) 783-2520

Fax: (717) 705-1994    

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The Patriot's Voice -2009