Meals, Trips, Gifts on Disclosure Forms

Financial disclosure forms filed by state officials this week show how Pennsylvania is behind the pack, when it comes to restrictions on gifts and perks lawmakers receive.

There’s no limit on the amount of gifts and travel perks Pennsylvania officials can receive. They just need to report presents worth more than $250, and disclose cumulative travel, lodging and meals costs once they exceed $650. That means it was perfectly fine for House Speaker Sam Smith to accept more $1,000 in meals from Harrisburg lobbying firm Greenlee Partners, to name one of many disclosures from legislative leaders.

Peggy Kerns, the director of the National Conference of State Legislators’ Center for Ethics in Government, said more states are toughening their ethics laws, with ten now banning gifts altogether. “It’s really to put this strong line of demarcation between the making of public policy, and the influencing of public policy,” she said. “And it’s really geared toward the public perception. … These states that pass these strict laws are really trying to say to the public, we’re not influenced by them. And we want to make sure that you know we’re not influenced by sitting in the skybox of some professional football game, or going on a trip or outing, or repeatedly having nice dinners bought by lobbyists.”

Kerns, who spent eight years in the Colorado House of Representatives, added, “I don’t know any legislator who could be bought for a steak dinner, or anything like that. However, that’s almost beside the point, because the public looks upon, sometimes, the perks that lawmakers get as meant to influence them.”

Senate Majority Leader Dominic Pileggi took a 2,147 dollar trip to Ireland with the State Legislative Leaders Foundation. Governor Corbett received a 530 dollar trophy from the Pittsburgh Penguins, to mark the opening of their new arena. He also accepted a $275 “welcome basket” from the Republican Governors Association, including a tie and cuff links. Governor Rendell may not have worked for NBC News yet in 2010, but he racked up more than $2,000 in hotel room bills while appearing on Meet the Press and Morning Joe.

Corbett Gets Rid of Bus

Governor Tom Corbett is kicking “Commonwealth One” to the curb. He’s auctioning off the tour bus Governor Ed Rendell used to travel the state, pitching his budget plans, transportation initiatives and other legislative priorities. “It has required $66,000 just to maintain this bus,” said Corbett at a Tuesday morning Harrisburg press conference. “In 2008, this bus cost taxpayers $18.84 per mile. In 2009, it cost $19.93 per mile. Last year this bust cost us $25.99 per mile. …It has cost us $1,336 for batteries. We spent $550 dollars having it towed. The taxpayers paid to have its windows tinted. This is one bus we can do without.”

Speaking on an unrelated conference call, Rendell declined to weigh in on the sale, but pointed out the bus was donated, and not purchased, in 2003. “I hope it will make money, because it didn’t cost us anything to purchase it, so it will be a net gain,” he said. While Rendell didn’t leap to Commonwealth One’s defense – after three or four bus questions, he told reporters he refused to answer any more -- some of his former staffers were quick to support the coach. “I think you have to keep this in context,” said former Rendell spokesman and self-described “bus-keteer” Chuck Ardo. “Was it expensive? Sure it was expensive. Does the governor have a responsibility to go out there and be seen, and listen to the people of the commonwealth? I think that’s clearly a responsibility the governor has. … [Rendell] went to more places that no other governor had gone before. They should have called the bus the Enterprise.”

Corbett’s office claims Commonwealth One traveled just 26,000 miles during its eight-year lifespan. “This…represents everything wrong with state government,” he said. “It’s out-dated, inefficient and broken down.” Rendell’s top policy advisor, Donna Cooper, disagreed. “I don’t think it represents what’s wrong with government. Because that bus took Ed Rendell and many members of his cabinet to every one of the 67 counties nearly every year,” she said. “Particularly in the rural counties, that bus represented the first time a governor or a cabinet secretary had ever been to their county and worked with them on those problems. So if Corbett thinks that represents a bad way to govern, then I think a lot of Pennsylvania’s counties are going to be more disappointed in this administration than they already are.”

The bus goes to auction in May or June.

Rendells to Split

Less than a month after leaving office, former Pennsylvania Governor Ed Rendell and his wife have announced that they are separating. U.S. Circuit Judge Marjorie Rendell and Ed Rendell have been married for 40 years. The two made the announcement by sending out an email to friends.

Rendell and his wife say it was a difficult decision but that they decided it was the right thing to do. The email says the breakup as "amicable" and they told friends to not worry about inviting them to the same social functions. They also asked their friends to respect their privacy and their decision.

Ed Rendell’s faithfulness to the marriage has been the subject of the Harrisburg rumor mill for years and was the subject of several news reports last year when allegations of a romantic relationship with a state employee surfaced.

PA's Mid-Year Budget Update

Governor Ed Rendell says Pennsylvania will likely face a modest deficit next year.
But that won’t make life any easier for Governor-elect Tom Corbett and incoming legislative leaders.
Halfway through the fiscal year, the estimated budget deficit is just 63 million dollars, compared to the hundreds of millions and billion-plus shortfalls predicted halfway through the last few budget years.
Rendell points out next year’s budget will still be a financial minefield, though.

"Mandatory costs for health care, prisons and debt service will continue to increase. Contractual salary increases and pension funding obligations will continue, and there’s no way those can be legally terminated. There was a contract salary increase in October, and one in January this year."

Not to mention more than two billion dollars in stimulus money that will disappear. Sales tax and corporate tax revenue is up, but income tax figures are lower than expected.
Pennsylvania added jobs last month, but Rendell says the growth is likely coming too late in the fiscal year to turn around income tax figures.

Rendell’s budget secretary, Mary Soderberg says the Corbett Administration will need to come up with a lot of money, just to produce a status quo budget.

"It’s going to be somewhere between 3.2 to 3.8 billion, depending on what their assumptions are on the expenditures side."

Republicans say they plan on cutting spending when they take power next year.

Rendell to Dems: Lay Off Corbett

Over the past few weeks, the Pennsylvanai Democratic Party has sent out press releases blasting Governor-elect Tom Corbett for naming a major campaign donor to his cabinet and putting a Tea Party activist on his transition team. Democrats have also criticized Corbett’s staff for avoiding reporters’ calls, and earlier this week, Chairman Jim Burn told the Pittsburgh Tribune-Review incoming Lieutenant Governor Jim Cawley is “about as qualified to lead as Sarah Palin.”

Rendell says the attacks need to stop. “Partisanship is ruining the effectiveness of government all over America. And that’s…a perfect example of what that is,” he said at a Pennsylvania Society event in New York City this weekend. “Let’s give him (Corbett) some breathing space. To attack him at this point comes with ill grace.”

Party spokesman Mark Nicastre respectfully disagrees with the outgoing governor’s take, arguing the Democrats are simply raising legitimate concerns about Corbett’s judgment, and providing a counterweight to the incoming Republican administration. “Tom Corbett has made several questionable decisions” – appointing Alan Walker, who gave more than $80,000 to his gubernatorial campaign; putting Tea Partier Ana Puig, who has called President Obama a communist, on his transition team – “These are things people should know…and [Corbett] can expect that for the duration of his term.”

For his part, Corbett says the aggressive Democratic attacks don’t bother him. “I didn’t see them complaining about anybody that Ed put on his transition team, obviously. I don’t know whether they did about Tom’s (former Governor Ridge) transition team. If they want to be partisan about this, they’ll be partisan,” he said in New York. “I think you heard me on Election Night saying we’re not going to be partisan about this.”

Don’t expect too many intra-party fireworks about the aggressive press releases. I asked Rendell whether he’ll talk to Burn or other party officials about the campaign. “In the next five weeks? Probably not,” Rendell said.

PA Politicians, Business Leaders, Lobbyists Meet in NY

The state’s politicians take Manhattan this weekend for the annual Pennsylvania Society gathering. Every December, Pennsylvania’s lawmakers, donors, movers and shakers migrate east for a weekend of parties at the Waldorf Astoria and other high-end New York City hotels.
Friday and Saturday’s agendas are filled with fundraisers and cocktail receptions hosted by lobbying firms, businesses and other political groups.
Longtime attendee Terry Madonna, a political scientist at Franklin and Marshall College, says this year’s events will have a different focus.

"The PA Society that accompanies the inauguration of a new governor is particularly important, because of the little gems of information that folks hope to glean about the new direction of new administration appointees, policy direction."

A centerpiece of the event is a Saturday morning forum sponsored by the Pennsylvania Manufacturers Association.
Governor Ed Rendell, Senator-elect Pat Toomey and Governor-elect Tom Corbett will speak at the event, along with other legislators and officials.
Not everyone’s a fan of the event.
Eric Epstein of the government reform group Rock the Capital says legislators have better ways to spend their time.

"We’re in a crisis mode. We’re experiencing a fiscal meltdown. It sends the wrong message to go hobnobbing in New York with power brokers. Right now, everybody’s asking to make sacrifices. It’s not a sacrifice when you’re going to the Waldorf Astoria to cut deals with the new administration."

Over the years, politicians have gotten in trouble for using public finances to attend the event.
Many use campaign funds to cover their travel and expenses.

Rendell's Bond Sale Cut By 35%

Pennsylvania Treasurer Rob McCord (photo) is reining in Governor Ed Rendell’s plan to borrow one billion dollars for construction projects.
McCord has approved a 650-million dollar bond sale.
Either the treasurer or auditor general needs to sign off on a bond sale. Usually, both officials okay the paperwork, but Auditor General Jack Wagner rejected Rendell’s proposal last week, saying Pennsylvania is “drowning in debt.”
After talking to Rendell staffers, as well as members of the incoming Corbett Administration, McCord says he’s approving 650 million dollars in borrowing for various construction projects across the state.

"We’ve been given firm assurances that this money is for already contracted, ongoing projects. And that this will fund their cash flow needs until June."

Rendell’s spokesman, Gary Tuma says the bonds were a “matter of the state paying its bills” on preexisting projects and predicts the funds will run dry in April....

"The next administration is going to have to borrow money and do its bond issues sooner than it otherwise would have, if we had borrowed the full billion. It’s important for everyone to understand that this is not a matter of approving new projects. This is simply a matter of the state of Pennsylvania paying its bills. "

Auditor General Wagner calls the bond sale a bad deal for Pennsylvania taxpayers.....
"With Pennsylvania facing a $4 billion to $5 billion budget deficit next year, now is not the time to increase the state’s debt. “Americans hold 8 million fewer credit cards than they did a year ago, because they understand that debt is a bad thing,” Wagner said. “It’s time that state government listened to the public.”

Senate Could Override Rendell Veto Of Education Bill

Governor Ed Rendell is facing the first veto override of his administration during his final months in office.
In October, Rendell vetoed a wide-ranging education bill because of language granting tax exemptions to groups and people who rent out space to charter schools.
The House overrode the veto Monday, and the Senate may do the same today.
Rendell is urging Senators to vote “no.”

"Again, not for any personal reasons, but because it’s wrong. It will increase property taxes for local taxpayers. They should have no doubt about that. When you raise your hand and vote to override this veto tomorrow, you are voting to increase local property taxes."

Senate Republican leaders had ruled out a lame duck session, but a spokesman says they hadn’t expected the House to successfully override the veto.
In other veto news, Rendell says he’s not sure whether or not he’ll sign a bill expanding the right to self defense with deadly force.
Rendell says he’s in favor of the existing “Castle Doctrine” – but doesn’t want to see people shooting others on public streets without first attempting to retreat.

"I think it would precipitate additional violence. And generally, I am against things that would precipitate or open the door to additional violence. We are far too violent as a society as it is. But I have to weigh all of the equities in making my decision."

The governor says he doesn’t like language in the bill, but he’s still weighing his options.

Outgoing, Incoming Govs Differ Over Debt

Governor Ed Rendell announced more than 40 million dollars of state investments in rail and airport projects across Pennsylvania this week.
However, it appears those types of debt-funded grants will likely be few and far between under the next administration.
Rendell is a strong defender of using state grants to fund both public and private projects, saying Pennsylvania earns back the money it invests through tax revenue and new jobs.
Governor-elect Tom Corbett is much more hesitant to dole out borrowed money, as he explained during an October debate.

"I think it’s a very risky situation. We have increased our debt here in Pennsylvania. Particularly in a time when our budget is suffering. Our spending has increased in the same amount of time by 40 percent. Our revenues have come down."

Corbett warned of long term implications...

"What we are doing is burdening our future generations with these kind of debts that are going to go forward until they’re all paid off. If we would stop right now, it’d be decades before we would pay off the money that’s been borrowed under the RACP fund."

Corbett’s policy paper on transportation issues leaves the door open for what it calls “the prudent use of debt to fund projects.”
But he’s said he’d be very hesitant to finance private projects, like the retail developments and hotels funded in this year’s major capital development bill.
However, Governor Rendell defends debt-financing for projects.

"Investment in transportation infrastructure, investment in infrastructure period is good for our economy. These are investments that come back to us in the taxes that are generated in a few short years, and most importantly, create jobs and create a better economic climate for our companies."

The so-called RACP debt limit increased from 1.5 to 4 billion dollars during the Rendell Administration.

Rendell Comments On GOP Wins

Analyzing last week’s elections, Governor Ed Rendell credits Republicans Pat Toomey and Tom Corbett for appealing to Pennsylvania’s moderates and independents.
The Democrat says Toomey and Corbett did a good job marketing themselves to suburban voters. Rendell explains why he thinks Senate candidate Joe Sestak came closer to winning than gubernatorial candidate, Dan Onorato.

"Joe did better in the suburbs than Dan did. And I think – when I said that Pat Toomey isn’t a scary person and didn’t say scary things. But Pat Toomey was viewed, I think, by Democratic voters as a lot more conservative than Tom Corbett. I’m not sure that’s accurate, but that was the view."

Reflecting on what the big losses mean for Democrats, Rendell says a Corbett Administration could help his party, by showing the consequences of across-the-board budget cuts.
The governor says he’s run a “progressive” and “activist” government.

"That I think has attacked problems, and attacked them fairly successfully. By using the government as a vehicle to create opportunity to protect our most vulnerable citizens. Now you’re going to see a government without any impediment that is going to essentially reduce or eliminate spending in most areas, and retrench."


Giving some advice to his successor, Rendell urges Corbett not to sell off state liquor stores.
He argues the multi-billion dollar one-time revenue boost isn’t worth the loss of a steady 300 million dollar annual revenue stream.
House Republicans say selling state stores will be a top priority next year.

Shale Tax All But Dead Until 2011

The Pennsylvania Senate’s top Republican says the chances for a natural gas severance tax bill “diminish by the hour.” Senate President Pro Tem Joe Scarnati (photo, on right; Senator Dominic Pileggi to his left) says Republicans and Democrats are “worlds apart” on a compromise severance tax. He argues even if a deal is reached, the Senate may be legally barred from voting on the House bill by the Pennsylvania’s constitution. All tax proposals in Pennsylvania must start in the House but the severance tax language was tacked onto an insurance regulating bill introduced in the Senate. House Speaker Keith McCall concedes Scarnati may be right about the measure’s viability, but offers another solution. He says the Senate can insert new tax language into one of two energy bills the House has already passed. “They have a lot of very smart people over there,” says McCall, “They know how to craft and put together amendments to the two bills we have over there that will, in fact, pass constitutional muster. This is a delay, dodging tactic to put this issue off.” Governor Rendell agrees, “I am extremely disappointed. To tell you the truth, the idea that we can’t get this done procedurally because of infirmities is a red herring. It’s frankly a bunch of bull. “ Senate Republican leaders met with Rendell this morning to negotiate a compromise rate between the House bill’s 39 cents per thousand cubic feet, and the initial 1.5 percent tax proposed by Scarnati’s staff. Scarnati says, “We continue to negotiate in good faith. We have lived up to our intent. And it’s just unfortunate that we have a flawed vehicle that has come from the House with a tax rate that, quite frankly, the House tax rate might just as well have been a moratorium bill to drive the industry out of the state. Maybe that was their intent.” The Senate has until Thursday to pass a bill.

Rendell Says No to Utility Merger, Companies say Yes

In a letter to the Pennsylvania Utility Commission PA Governor Ed Rendell says the proposed merger of FirstEnergy and Allegheny Energy would kill 980 jobs in southwestern Pennsylvania and harm competition in electricity markets. He says the move is especially troubling because it comes at a time when prices are rising due to the expiration of rate caps. Rendell directed the Department of Environmental Protection to file a brief on behalf of the commonwealth with the PUC urging the commissioners to deny the merger request. "This merger would be a great deal for Wall Street and Ohio, but terrible for Pennsylvania's workers and consumers," says Rendell. He says the merger would create an “electrical behemoth” that would “further increase the already-rising electric rates paid by families, employers, local governments and schools.” The governor says he reviewed the application and feels it, “lacks any positive environmental effects, energy efficiency incentives or increases in renewable energy.”

In a joint statement from FirstEnergy and Allegheny Energy, the companies say, "We respectfully disagree with Governor Rendell's position on our proposed merger. The merger will create a stronger company, better positioned to deliver significant immediate and long-term benefits to the Commonwealth of Pennsylvania, including operating efficiencies that would result in better service reliability and prices for customers.” The statement goes on to point to several organizations have come out in support of the merger including the International Brotherhood of Electrical Workers, the Utility Workers Union of America and “economic development and chambers of commerce groups, such as the Butler, Pa. County Economic Development Corp., Greater Johnstown-Cambria County Chamber of Commerce and the PA Economic Development Association.” The heads of the two power companies say a merged company provides the best opportunity for employment and economic growth in Pennsylvania.


I an effort to address Governor Rendell’s concerns over job losses, FirstEnergy says it has, “delayed hiring in order to accommodate Allegheny Energy employees, and will look for ways to provide additional career opportunities.” Rendell also voiced concerns that Pennsylvania would lose the Allegheny Energy headquarters office in Greensburg because the merged company will operate out of Akron, Ohio. FirstEnergy says it has, “committed to locate a regional headquarters in Greensburg.” The company says it also plans to work with local community colleges to establish a Power Systems Institute program. FirstEnergy has three other such institutes where it educates and trains future utility workers.

In closing the two companies say, “While we are disappointed that Governor Rendell does not recognize the many benefits of the FirstEnergy and Allegheny Energy merger, we will continue to work through the process to secure the needed regulatory approvals. The process remains on track. We are confident that the Pennsylvania Public Utility Commission will look at the record of the case and base a decision on the merits.”

Rendell: Tax Oil Company Profits

Governor Ed Rendell has presented a two-pronged plan for generating about $1 billion dollars to fix up Pennsylvania's ailing roads and bridges. But neither part of the plan
is particularly surprising. Rendell and Transportation Secretary Allen Biehler are
proposing a new tax on oil company profits designed to bring in $576 million in the first year.
They also want to raise all motor vehicle fees, noting many of those costs have held steady for years while road construction prices have soared.
The governor says he's not married to the plan -- just to filling the gap left when the federal government shot down tolling Interstate 80. The state's transportation budget was counting on $492 million from tolling I-80.
As for the oil company tax, Rendell insists the state would be able to ensure that companies don't saddle consumers with the new levy through the use of forensic audits and market comparisons. Critics have indicated that trying to block oil companies from passing on the tax through increased prices at the pump might be illegal.
Absent from the proposal is hiking the state's gas tax, though
the governor says he would still support such a move.
It's not clear if the legislature will act on transportation funding before the November election, or even before Rendell leaves office in January.

'Only' 100 State Jobs to be Cut

Governor Rendell began the summer by warning of a budget “Armageddon,” with up to 20,000 state employee layoffs. He gathered reporters yesterday to say he has whitled than number down to about 100. In order to get to that number Rendell has trimmed an additional 1.9% from state department budgets and he is counting on the state legislature passing a Marcellus Shale gas extraction tax. Some lawmakers do not want to create such a tax at all and others are looking to hold off until a new governor takes office in January. Rendell says he thinks he can get his version through the legislature, “This assumes that there’ll be a significant 40, 50 percent share going to the locals. And yes, if it will assuage their consciences, that’s less money we would have had to cut from the environmental budget.” Rendell says he was also helped by an unusual amount of employee retirements, as well as a hiring freeze. Rendell says he’s keeping a $200 million education increase in place, and is ignoring Senate Republicans’ suggestion to shift the money to the state’s pension fund. “Rather than cut education, and I don’t mean to be cavalier about this, but there is easily $200 million in legislative balances,” says Rendell, “If the legislature cares about the pension fund they can use that $200 million, rather than education funding, to buttress the education fund.” In the past, House and Senate leaders have been hesitant to use those funds contending that it is their hedge against a governor who is unwilling to spend on high priority issues.

Plan to Connect 80% of US with High-Speed Intercity Rail

The nation's top transportation official used an event outside Harrisburg to detail plans by the Obama administration to build a high-speed intercity rail network, though plenty of questions remain about how the project would be funded.
U-S Transportation Secretary Ray LaHood was among the high-ranking officials who took part in a wide-ranging discussion about infrastructure.
He joined in on the event at Central Pennsylvania College in Cumberland County by satellite.
LaHood says the Obama administration is committed to bolstering investment in high-speed rail -- even though he concedes it's not clear where the routes will go or where all the money will come from...
"We don't know where all the lines will be on the map, we don't know where all the money will come from. But I promise you in less time than it took to create our interstates, you'll start to see high-speed intercity trains carry sufficient numbers of Americans from the Northeast south along the Atlantic Seaboard and west across the Sunbelt."

Following up on LaHood's comments, Governor Rendell said a proposal for northeastern Pennsylvania demonstrates the commonwealth's interest in the concept...
"The Scranton through the Poconos through New Jersey to link up with the tube going into New York is a project that has a tremendous amount of regional support and we're looking to the next reauthorization of ISTEA to see where that goes, no question about it."

LaHood says the ambitious 500-billion-dollar plan is designed to unfold over the next 25 years. As for regional rail, the secretary says those projects could receive federal backing if state and regional officials make it clear that they're a priority.

PA GOP: Cut Education Funding Increase

Republicans are pressuring Governor Ed Rendell to bridge a gap in federal funds to Pennsylvania by eliminating an increase in the budget line item he cares about the most. Rendell will need to trim about 250 million dollars from the state budget, if a federal funding bill passes the US House without any changes. That measure will provide Pennsylvania about $600 million. The new state budget passed 5 weeks ago was counting on $850 million.
Senate Majority Leader Dominic Pileggi and other Republicans want that money to come from the basic education subsidy line, which was bumped up by that same amount in this year's spending plan.

"It would seem that the most logical and common-sense approach would be to reduce dramatic increases in funding, rather than to further reduce funding levels for lines that have already been reduced substantially."

Pileggi says the basic education line item has been increased by hundreds of millions of dollars over the last two budget cycles, even though most state departments suffered several rounds of cuts and layoffs.
Basic education money supplements school districts' operating costs.
Rendell says he's "open" to cutting money from the line item, but would rather re-introduce revenue boosters like eliminating the vendor sales discount, and taxes on smokeless tobacco. Rendell pushed for those initiatives earlier this year, but neither was included in the state budget.

Little Traction for Rendell's Transportation Funding

Pennsylvania Governor Ed Rendell continues to beat the drum for transportation funding, but his statewide media blitz has had little impact on legislators.
House and Senate leaders say they're still not returning to work until mid-September.
Rendell spent last week touring the state in a bus, visiting structurally deficient roads and bridges to make his case for increased transportation funding.
He wants lawmakers to boost the state's gas tax, bump up vehicle registration fees, or pass any other law filling a 500 million dollar infrastructure funding gap.
Rendell said taxpayers support his initiative.

"It's the one thing, I think, in government spending, in this era of people saying, no, don't spend on this, don't spend on that. It's the one thing that I think transcends the public's general feeling that we're spending too much money. People don't believe we're spending enough to keep our infrastructure safe."

He said a 3.5 cents per gallon increase in the gasoline tax would be negligible.
"The average cost to the average driver, who drives 12-thousand miles a year, would be 67 cents a week. 67 cents a week. I think that would not hurt the economy. I don't mean to be a -- I know we're in tough times, but 67 cents a week I don't think is going to hurt anybody, or cause anybody not to hire anybody."

Rendell initially wanted lawmakers to return to Harrisburg in mid-July to pass transportation bills, then changed his stance and urged them to come back in late-August. Leaders in both chambers say they won't return to the Capitol until mid-September, and some are privately predicting not a single transportation measure will be called to a vote this year.
Rendell admits he's lost some clout.

"I'm like that football coach who's been around year after year, and the players are sort of a little tired of the coach. Number 1. Number 2, they know they can wait me out now. I've got five months to go. So I know I don't have a lot of leverage."

Rendell: PA would “hardly notice” Fee Increase

Governor Ed Rendell spent four days this week touring the state in a bus trying to drum up support for increasing revenue for transportation. He started his day today in Pittsburgh. The transportation budget had a $472 million dollar hole put in it when the federal government refused a request to toll I-80. A subsequent study found the state is billions of dollars behind when it comes to making bridge and road repairs. Rendell says the legislature must find new revenues during a special session on transportation later this month, otherwise bus service across the state will be crippled and bridge and road repairs will fall even more behind. Rendell has put three ideas on the table for the legislature to consider. He says hardly anyone knows how much he or she pays in state gas taxes. The tax has not been raised since 1997 and Rendell says to keep up with inflation it could be increased by 3.5 cents. He says that will net $240 million dollars a year. Rendell also suggests increasing driver’s licenses and vehicle registration fees to keep pace with inflation. He says that would add another $327 million. Rendell’s third suggestion is to change the way big oil companies that sell gas in Pennsylvania pay taxes. He says those companies pay little or no corporate net income tax due to well known loop holes. He says he would like to make those companies exempt from the 9.9% CNI and instead create an “Oil Company Net Profits Tax of 6.9% with no loop holes. Rendell says that will net the state another $800 million a year. When the governor entered and left the PNC First side building, where he made his Pittsburgh stop, he was greeted by a small group of protesters asking him to not raise taxes until he gets discretionary capital spending under control. Rendell says the money spent on transportation and infrastructure creates jobs and helps the economy grow. Rendell called on everyone in the audience to contact their state legislators asking them to finding new sources of revenue for transportation. He says, “It is time for the legislature to suck it up and consider raising revenue.”

PA Asks Feds To Help Exand Rail Freight Corridor

Touting a study predicting increased congestion on Pennsylvania’s highways over the next two decades, Governor Ed Rendell called for more federal dollars to improve freight railway infrastructure.
Standing under the blazing sun in a Harrisburg rail yard, Governor Rendell predicted truck traffic will increase by 50 percent along Interstates 81 and 95 between now and 2030.
The governor says that stat, which comes from a new American Association of State Highway and Transportation Officials Study, underscores the need to invest in rail infrastructure.
He says Pennsylvania and four other states will apply for a 115 million dollar federal grant this month to expand the Crescent Corridor rail line, which would run from Louisiana to New York.
Rendell argues the freight line would create 26-thousand Pennsylvania jobs, and take trucks off the state’s highways.

"So the benefits from this project are not just economic. They’re not just jobs. They’re environmental. They have indirect benefits for Pennsylvania taxpayers. And they relieve congestion for all of us. The less trucks on the road, the less congested our roads are for a passenger traveling, as well."

Tennessee, Alabama, Virginia and North Carolina are joining Pennsylvania in the application.

Rendell Questions If Legislature is Working Fulltime

After passing budget bills this weekend, both the Pennsylvania House and Senate adjourned until September.
Governor Ed Rendell wants lawmakers to return this summer to address transportation funding, but Senate Majority Leader Dominic Pileggi has indicated that won’t happen.
Rendell says the General Assembly is shirking its responsibilities.

"Either they come back or they tell the people of the state of Pennsylvania that they don’t take their job seriously. We pay the legislature full time. When the pay scale for the legislature is justified, by members of the legislature and legislative leaders, the justification is they’re a full-time legislature, right?"

Rendell called a special session earlier this year, to address the funding gap that was created when federal officials rejected Pennsylvania’s application to toll I-80.
Lawmakers say they can deal with transportation in September and October.
The fall will be busy. Leaders have also vowed to pass a natural gas severance tax, and to create a new legislative fiscal office.