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Conservative Reform Network Newsletter

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Conservative Reform Network
The Newsletter for Independent, Conservative Political Activists

In This Issue
Conservative Reform Network

Part 1

Part 2

Part 3

PA Budget Borrowing

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Dear Lowman,

Enjoy this Issue which focuses on "hammering the homeowner and households on fixed income". You can view more posts on my blog. Have a safe holiday weekend.

Part 1

The City of Chester's $77 million dollar soccer stadium subsidies are a prime example of State subsidies that hammer the fixed income, taxpaying homeowner, usually, a senior citizen who has worked and saved all their lives to pay off the mortgage and now live on fixed income in their single largest asset, their home and now are forced to pay for a stadium they don't want and don't need.

Key phrases in Soccer Stadium: No Goal

Governor Rendell and the legislature promised $47 million out of the state taxpayers' wallets for the stadium, and Delaware County residents will be forced to give another $30 million. Team investors will thus only cover half the costs ($80 million) of the new stadium, and pay next to nothing in exchanges for these government hand-outs

Yet economic research finds that athletic stadiums do not result in economic growth. Economist Phillip Miller demonstrated in his empirical study of St. Louis that stadium construction has no net effect on employment. Miller concluded that stadium construction shifts employment from other projects, and fails to create any new net jobs. Economics professor Ian Hudson found similar evidence .
Part 2

In addition to $47 million of state subsidies (and another $30 million local subsidies), the State budget proposes another $63.7 million taxpaying subsidies for projects that taxpayers can't and won't use, and don't want and don't need, and, most importantly, can't afford. The beneficiaries: consultants and contractors and their political allies, not the resident and taxpayer.

Budget deadline is today, June 30th.

Key phrases from Commonwealth Foundation press release June 16, 2008

* $21 million for Community Revitalization
* $19.5 million for Urban Development
* $10 million for Local Government Resources and Development
* $8.5 million for the Regional Development Initiative
* $2.7 million for Community and Business Assistance
* $2 million for Cultural Exhibitions and Exhibits

"Despite their seemingly merit-worthy names, these programs are really for political and personal development of elected officials," said Matthew Brouillette, president and CEO of the Commonwealth Foundation.

Part 3

In addition to soccer stadium subsidies and 'economic development' subsidies, borrowing increases and, instead of paying down debt, debt increases prolonging the burden for many years. The total proposed state General Fund budget is $28.5 billion dollars, a 4.9% increase over last year's spending.

Budget votes kick the can down the road by borrowing now and paying later, although they never seem to pay down the debt.

Key phrases from Stop the Borrowing: $110 billion is enough

Recently, the state House voted to borrow $980 million for the state FY 2008-09 Capital budget, while also approving a plan to borrow an additional $240 million to pay for projects incurred last year. The Senate voted for a $400 million borrowing scheme to be placed on the November ballot, while Governor Rendell continues to push his Energy Independence Fund-which entails an additional $850 million in new borrowing.

And when we look at the true costs of this borrowed money, Pennsylvania taxpayers owe almost $9,000 per person in state and local debt-or $36,000 for the typical family of four."

Some of the most costly and wasteful off-budget programs include the Commonwealth Financing Authority, the Economic Development Financing Authority, the Energy Development Authority, the Housing Finance Agency, and the Turnpike Commission. Governor Rendell's proposed $850 million Energy Independence Fund would also be entirely off-budget debt. Moreover, programs like the Energy Independence Fund discourage innovation and encourage corporate lobbyists to focus more on fighting for political hand-outs than on providing the best service to consumers.

...taxpayers pay $93.5 million annually just on the official state debt on interest alone.

PA Budget Borrowing Details

The Commonwealth Foundation details $2.9B borrowing.