Apr 6, 2012

Cowardice in PA

In early February, I wrote to my local township tax collector complaining about a 13% increase in local school taxes, an 80% increase in township debt service taxes, and a 17% increase in county RE taxes. I asked the tax collector (who obviously has no role in setting rates but is only responsible for collecting the revenue) to pass my concerns on to the township Commissioners and School Board just to see if I got any response. I copied my Ward Commissioner, my three County Commissioners, my State Representative, State Senator, and Gov. Corbett's office.

The responses, or lack of same, were predictable and included: an invitation extended by the Tax Collector to run for Republican Committee Person to represent my ward, no response from the Township Commissioners, School Board, County Commissioners or Governor's Office, an email from the Democrat commissioner representing my ward who quite naturally blamed the Republican dominated township commissioners who are and have been an "old boys club fiefdom" for over 20 years, much like the cross-filed school board members who are more interested in the business connections they develop and nurture while on the board, than on any real representation of the local citizenry. My Republican State Rep. didn't have the gumption to respond to me in writing, rather he had his secretary leave a message on my answering machine thanking me for the email and insisting that her boss remembered me from my previous political activism surrounding "fiscal responsibility" issues some 20 years ago. My Republican State Senator did have the courtesy to respond with a "cut and paste job" of paragraphs lifted from previous constituent newsletters highlighting legislation either introduced, co-sponsored, or voted for that merely nips around the edges of the spending problems and fiscal irresponsibility I see at all levels of government, i.e. "unfunded mandates" and antiquated laws that restrict the "free market" and prevent competition by the non politically connected private sector businesses that could serve the taxpayers at a significantly lower cost than municipal employees.

The problem as I see it is relatively straightforward. In PA we have only one political party: the Big Government party (government of, by and for the political class). it is constituted of liberal Democrats primarily from the cities of Philadelphia, and Pittsburgh and increasingly of the nearby suburbs where former city residents have fled the very problems like crime and joblessness created and exacerbated by the big government policies of high taxes and even higher spending. Sadly, these same folks can't connect two adjacent dots, and have brought their ill-informed urban political views with them. The big city politicos have only one goal: fleece the remainder of the state's taxpayers for every dollar they can to feather the nest of local supporters: buying their votes with the dollars of others. The remainder of the state is dominated by "Republicans In Name Only." Their goal is simply to get reelected and retain their majorities in the House and Senate so as to retain control of Committee Chairmanships and control the purse-strings. Once again, it is the extension of charity with other people's money. Both the Left and Right wings of this predatory bird are happy to accept campaign contributions from teachers unions, municipal workers unions, trade unions, and the legal community from which most of them were spawned. Local trade unions benefit due to antiquated laws requiring that only union contractors be used on all State, Municipal, and School District construction jobs. Lawyers, who are in constant search of new classes of "victims" benefit when laws restricting medical malpractice, or other classes of Tort are not reformed via a "loser pays," or damage cap legislation. Lawyers, who are an inextricable part of the political class, along with many Judges, are professional redistributionists in search of "social justice," not "blind justice."

Part two of the problem in PA is the utter unwillingness of the members of the political class to exhibit any real courage of convictions in support of taxpayer issues that would truly reform "business as usual" which is only beneficial to the interest groups previously mentioned. The professional politicians have made entire careers out of pandering to the connected contributors be they big labor, or big business. This , naturally, is to the detriment of the middle-class private sector worker who pays the bills that buys the slop in the public trough from which the gluttons feast.

Pennsylvania has a disease. One of its symptoms was highlighted in the June 2011 American Legislative Exchange Council (ALEC) "Rich States, Poor States" report that ranked PA 46th in economic performance, 43rd in economic competitiveness, and 41st in outmigration.

Some simple, yet courageous reforms could turn the Commonwealth around rapidly. Pass legislation at least as broad as that in Wisconsin or Indiana: free teachers to decide for themselves whether or not to join a union. Insist, on a personal contributions by all municipal, state, and school district employees towards their health care and pension funds that are comparable to expected contributions by employees in the private sector. It is high time that public sector employees were introduced to the real world where employees earn less than their employers (in this case - the taxpayers). Repeal Act 195 of 1970 which granted the right of Public School teachers to strike. A teachers' strike is the legislatively sanctioned extortion of taxpayers in a particular school district. Public support of HB 1369 and HB 2092 together called the "Strike Free Education Act" would help add PA to the list of thirty seven other states who ban teacher strikes. Since there are more teacher strikes in PA than in any other of the remaining thirteen states that permit them, there is no reason that an informed public shouldn't support these bills.

Another common sense reform would be to repeal the antiquated "Prevailing Wage" Act of 1961. This Act insists on only union contractors and "prevailing wages" on all publicly funded construction projects above a ridiculously low non-inflation adjusted figure of $18,500. This figure was only recently increased from the original $10,000 level first set into the act in 1961. This was of course a time when you could buy a new house for $10,000. How many new gymnasiums, or Olympic sized Public High school swimming pools can you build for $18,500? This arcane law which even in its amended form touted by my State Senator, adds at minimum an 11% premium to each and every public sector construction project, and thus to the debt service and tax rates of the affected community. Additionally, according to Michigan's Mackinac Center, when measuring the value added for each construction dollar, construction workers in market wage states are 6.3% more productive than in prevailing wage states. Having worked on both types of construction sites over the years, and as the son of a lifelong teamster, and former teamster myself, I can attest to the ratio of shovel holders to actual laborers laboring.

Both of these simple but politically courageous positions are long overdue in a state that is mostly stagnant. They are "free market" and "free people" solutions. Personally, I would go one step further and add PA to the 23 other states that are "Right to Work" states. In states like Virginia and Texas the economies are booming and unemployment is at half the National and PA rates. Also, the cost of living is typically lower in free market states. In fact, according to a 2011 report by the National Institute for Labor Relations: "Cost of Living-Adjusted Compensation per Private Sector Employee (2010)" was $56,575 in Free Market States vs. $55,420 in Forced Unionism States." And, due to the earlier date of "Tax Freedom Day" in free market states, the "Cost of Living-Adjusted Per Capita Disposable Personal Income (2010)" was $35,643 in Free Market States vs. only $33,762 in "Closed Shop" States. Lastly, the "Growth in Real Manufacturing GDP between 2000-2010" was 18.6% in Free Market States vs. only 8.3% in Forced Unionism States. Therfore, if more higher paying manufacturing jobs is what we need across America, then National "Right to Work" is the way to grow them.

Sadly, pending the outcome of the immanent recall election of Wisconsin Gov. Scott Walker, a true taxpayer advocate and friend of free markets and the private sector taxpayer, I see little hope of real reform in Harrisburg, our counties, or our townships. Perhaps if Walkers efforts to create sustainable budgets and institute common sense reforms is vindicated by the voters despite the millions of out of state big labor dollars flowing across Wisconsin's borders to preserve labor's grip on power, the political class in PA from the Governor's mansion on down will begin to see that reform is possible and the regular folks will stand up for politicians courageous enough to do the rational thing for once.

I remain skeptical however in view of the manner in which the Big Government RINO party bosses selected its endorsed US Senate candidate: not from the bottom up, but from the top down. It was just another example of political class elitism.

But America is still the land of dreamers, innovators, doers, and inventors. From this land where the "pursuit of happiness" is enshrined in our founding documents, a concept unique in all the world, I am hopeful that there are still enough patriots left willing to do the heavy and unpopular work, take the personal and professional risks necessary to save not only our Commonwealth, but also our Country from the diseases of complacency and dependency.

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