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Conservative Reform Network

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The Conservative Reform Network

The Newsletter for Independent, Conservative Political Activists

In This Issue

Conservative Reform Network
Fiscal Madmen in PA
Budget Out of Balance
Where Does it Go?

Conservative Reform Network

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The Defining Difference. Pennsylvania is, like other states, is headed toward
Faced with this problem of declining revenues, the common sense approach is to reduce
expenditures as revenues decline; the other approach is to deny the problem and
conduct business as usual. The defining difference is expressed, publicly, by General
Assembly's votes on Appropriations Bills, most especially, the Budget Bill.


You can view more posts on my blog.

Fiscal Madmen in PA: 2010 Budget Deal Fails to Plan for Future

The Defining Differences November 2d in State House, Senate and Gubernatorial elections
will be policies onJobs and The Budget -expenditures exceeding income, Pension Funding,
Taxes and the impact of government's ever increasing takeover of the private,
economy and small businesses and the hammering The Forgotten Taxpayer. Fiscal madmen
are in leadership of both parties. Tom Corbett has taken the NO NEW TAXES pledge
as have many .

difficult to negotiate a sane budget with a fiscal madman seated at the
other side of the bargaining table. Gov. Rendell was fiscally
irresponsible to seek a $1.2 billion spending increase of taxpayer
money during the Great Recession,

Who's the more convincing showman? And we commend those Democrats and Republicans
who forced him to stop his economic insanity. However, this 2010 spending plan of
$28 billion merely puts off the day of financial reckoning caused by years of
It does not put Pennsylvania's fiscal house in order. In fact, higher spending this
year will only exacerbate our financial problems next year.

Rep. Sam Rohrer: Budget Out of Balance and Unconstitutional

Real Deal Sam Rohrer makes the case that the State Budget is Out of Balance
and ,therefore, Unconstitutional
Not only is this budget illegal, it makes no fiscal sense. Expenditures exceeding
revenues cannot be sound basis for budgeting.

"On June 30, a truly unconstitutional, out-of-balance $28.04 billion state budget
was passed through the Legislature.
This budget is, ultimately, a set-up for an enormous tax increase next year. This
budget grossly overstates revenue, depends on $850 million in federal Medicaid funding
that has not yet been approved, and refuses to plan for the upcoming fiscal shortfalls.

This budget expects the state's economy to grow - grow! - by 3 percent this year,
when most economists are predicting at best 0 percent growth and as much as a 2
percent decline. That gap is between $750 million and $1.25 billion. Next year,
Pennsylvania loses federal stimulus funds. We will likely have to cope with the
raiding of the MCare fund to the tune of $800 million. And the state's unemployment
compensation debt it owes to the federal government could top $4 billion. Everything
is being pushed off until next year.

Read More

Where Does it All Go? Mysterious Millions in PA Capital Budget

Another installment in never ending series: Getting Rich from Growing Government

Pennsylvania's Bankruptcy Budget - $300,000,000 of mysterious
spending. Did our elected Representatives and Senators read this
Appropriations bill before voting to spend our money? $600 Million New
Borrowing, which has to be repaid, authorized. Who is going to repay
this? The Forgotten Taxpayer and the job creating, productive small
businessman is forced to.

Mysteriously, millions of dollars of tax money produced by the
productive sector will be spent by the wise and virtuous Ed Rendell,
both Governor and Venture Capitalist in Chief for Pennsylvania, whose
political self-interest is more noble than any small business person's economic
self-interest. One might think, although there is no evidence
because legislators do not seem to know the reasoning that led to this
$300 million, that the Governor is rewarding those connected to the
elected. One wonders if they read the bill before voting on it.

Ed Rendell plans to shower $300 million in development grants before
leaving office in January, including $10 million to try to lure an
unnamed "Fortune 100" company to the Lehigh Valley.
Also planned: $4.5
million to convert a former Dixie Cup factory in Wilson into an
apartment and condominium complex and $2.5 million for a
waste-to-energy plant in Allentown.

As the details of the $600 million economic development bill, funded by additional
and approved by the General Assembly emerge, it appears that Democratic
Governor Ed Rendell will handpick $300 million in projects. One key
detail remained a mystery: the identity of the Fortune 100 Company. The
bill doesn't name the company, and government bureaucrats would not
name a name, only that it is a large company the bureaucrats are trying
to lure to the Valley, but can't name because no deals have been
signed. Local state lawmakers are unaware of.

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