RockTheCapital.org

The Campaign Contributions & Lobbying Expenditures of the Natural Gas Industry in Pennsylvania

 

By Alex Kaplan and James Browning

 

May 11, 2010

 

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Statement by Tim Potts, Co-Founder, Democracy Rising PA
July 6, 2010

 

Tomorrow, July 7, marks the fifth anniversary of the Pay Raise of 2005, a date which will live in political infamy.

I have to confess that I don’t know where I live any more. Republicans are increasing taxes. Democrats are cutting programs.

But that’s because neither party really stands for much that benefits the citizens of PA. Republicans and Democrats alike stand for expanding the size and cost of government with not one but two new and completely unnecessary agencies of the bureaucracy. Democrats and Republicans alike stand for unbridled self-indulgence and their own expanding waste-lines while telling those who pay their salaries to suck it in and do without.

And as they undermine the foundations of families and communities everywhere, they feather their own nests with WAMs in excess of $120 million and capital projects in the hundreds of millions, not out of stimulus envy but as re-election insurance at taxpayer expense, a practice for which some of their colleagues are now in jail.

This commemoration of the Pay Raise of 2005 compels me to recall the seven ways in which the pay raise was scandalous.

1. The Pay Raise of 2005 literally was an act of theft. Lawmakers, judges and the governor took our money for themselves without our knowledge or consent. That's a classic definition of theft.
2. The pay raise was negotiated secretly by the leaders of all three branches of government for a year before its enactment. This was quite a feat, especially since during that year the Supreme Court held secret regional meetings with local judges and district justices updating them on their progress. Ask your local judge or DJ about these meetings. See what they’re willing to tell you, and think about whether their continued silence amounts to a continuing cover-up.
3. The lack of public notice violated the Constitution’s requirement that citizens have the right to know what their legislature is contemplating in time to support it or oppose it. Yet not one word, literally, of the Pay Raise of 2005 was considered on three different days in either the House or Senate. The legislation itself was unavailable to citizens before its passage since this theft, like so many others, occurred at 2:00 a.m.
4. The pay raise also violated the original purpose rule (Article III, Section 1), which prohibits a bill from being amended to change its original purpose. Not one word of the original purpose of the bill survived. In consumer law this is called bait and switch. It is illegal. But thanks to our state Supreme Court, a bunch of unindicted co-conspirators if there ever were any, bait and switch is legally alive in our General Assembly.
5. Speaking of our truly awful Supreme Court, its ruling on the lawsuit against the Pay Raise of 2005 is one of the worst in American jurisprudential history. After casing the public treasury in secret for so long, the court couldn’t force itself to obey the Constitution, give back the money, and try to get a raise the honest way. Instead, its ruling marked only the second time in American history that a court refused to honor a clause in the law that required it to find all of the law unconstitutional if it found any part of it to be unconstitutional. The court’s opinion even misrepresented the truth, citing a law review article in support of its decision when the article said exactly the opposite of what the court claimed.
6. The Pay Raise of 2005 tied state officials’ salaries to those of their federal counterparts. This deprived PA citizens of the right to decide what to pay their own public officials.
7. Historians who want to examine the debate about the Pay Raise of 2005 will find no debate or even discussion on the official record of the House or Senate journals. Once the deal was done, both those who voted for it and those who voted against it filed into their respective chambers and voted in silence. No thief or accomplice wants to leave fingerprints, and there are none.

Ironically, had lawmakers taken the advice of integrity advocates five years ago, they would be one year away at most from their second pay raise since 2005. The advice was to create an independent commission to recommend salaries for public officials, subject to an up-or-down vote by lawmakers without amendment. The commission would recommend new salary levels for one branch each year, meaning that salaries would never be more than three years behind what a free market would provide.

Most recently the process of adopting the budget simply undid everything incumbents bragged about doing in 2007. There was nothing transparent about it. It required suspending rules that were intended to make the process accountable. And it’s fundamentally dishonest, relying on revenue that can only be accurately described as fictitious.

I fully expect people to ask, “What did the past five years really accomplish? And why should we think the next five years will be any better?”

The most important improvement of the past five years has nothing to do with the legislature but with the citizens. When you look at public opinion, the idea of a Constitution convention has taken hold. Five years ago, fewer than one-fourth of citizens thought it was necessary. Today, more than three-fourths do. And then there’s the 28th Statewide Investigating Grand Jury. All of this speaks volumes, but it still hasn’t spoken loudly enough for incumbents to hear.

That brings us to hope for the future. Citizens need a megaphone, and the only one loud enough to do the job is the governor. It’s not yet clear, though, that either candidate is interested in finding the gubernatorial backbone that the past few governors have misplaced when dealing with the legislature.

While only time will truly tell, we will continue to push an integrity agenda. Today we’re sending our gubernatorial questionnaire to Tom Corbett and Dan Onorato. It asks a dozen questions in three categories: the grand jury’s recommendations, WAMs and the legislature’s $180 million – soon to be more than $200 million – surplus.

Perhaps the most important question is whether either or both candidates will declare now their intention to call a Special Session on Public Integrity on their first day as governor. This simple act would put the legislature on notice, perhaps prompting them to do something of value before the new governor arrives. In any event, it is a promise that is useful because every citizen can hold the new governor accountable for keeping it. Either he does it, or not.

Without a Constitution convention in PA, our future as citizens is not our own. We have become a people of the government, by the government and for the government. Until integrity is welcome in this building, those who work here will remind us regularly how little they really care about democracy, honesty, common decency and the people whose money makes their lives so comfortable.

We citizens still have the power to change all this. The question, as always, is whether we will.

 

Download this document as PDF

Download Questionnaire for Gubernatorial Candidates

Download Cover Letter to Dan Onorato

Download Cover Letter to Tom Corbett

RockTheCapital.org released a review of current and former state legislators who accepted an increase in their pay through “unvouchered expenses,” refused to pay the money back and retired or were defeated in 2006 and 2008.

 

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State	Base Salary (annual or daily rate)	Session Per Diem Rate
Alabama	$10/day (C)	$3,958/month plus $50/day for three days during each week that the legislature actually meets during any session (U).
Alaska	$50,400/year	$189 or $234 /day (depending on the time of year) tied to federal rate. Legislators who reside in the Capitol area receive 75% of the federal rate.
Arizona	$24,000/year	$35/day for the 1st 120 days of regular session and for special session and $10/day thereafter. Members residing outside Maricopa County receive an additional $25/day for the 1st 120 days of reg. session and for special session and an additional $10/day thereafter (V). Set by statute.
Arkansas	$15,362/year	$136/day (V) plus mileage tied to federal rate.
California	$95,291/year	$173.00 per day for each day they are in session.
Colorado	$30,000/year	$45/day for members living in the Denver metro area. $99/day for members living outside Denver (V). Set by the legislature.
Connecticut	$28,000/year	No per diem is paid.
Delaware	$41,680/year	$7,334 expense allowance annually.
Florida	$29,697/year	$133/day for House and $133 for Senate (V) tied to federal rate. Earned based on the number of days in session. Travel vouchers are filed to substantiate.
Georgia	$17,342/year	$173/day (U) set by the Legislative Services Committee.
Hawaii	$48,708/year	$150/day for members living outside Oahu during session; $120/day for members living outside Oahu during interim while conducting legislative business; $10/day for members living on Oahu during the interim while conducting official legislative business.
Idaho	$16,116/year	$122/day for members establishing second residence in Boise; $49/day if no second residence is established and up to $25/day travel (V) set by Compensation Commission.
Illinois	$67,836/year	$139/per session day
Iowa	$25,000/year	$137/day (U). $102.75/day for Polk County legislators (U) set by the legislature to coincide with federal rate. State mileage rates apply.
Kansas	$88.66(C)	$116/day (U) tied to federal rate.
Kentucky	$186.73day (C)	$119.90/day (U) tied to federal rate (110% Federal per diem rate).
Louisiana	$16,800/year + additional $6,000/yr (U) expense allowance.	$159/day (U) tied to federal rate (26 U.S.C. Section 162(h)(1)(B)(ii)).
Maine	$13,526/year for first regular session; $9,661/year for second regular session.	$38/day housing, or mileage and tolls in lieu of housing (at rate of $0.44/mile up to $38/day) plus $32/day for meals. Per diem limits are set by statute.
Maryland	$43,500/year	Lodging $96/day; meals $32/day (V) tied to federal rate and compensation commission. $225/day for out of state travel. Includes meals and lodging.
Massachusetts	$58,237.15 /year	From $10/day-$100/day, depending on distance from State House (V) set by the legislature.
Michigan	$79,650/year	$12,000 yearly expense allowance for session and interim (V) set by compensation commission.
Minnesota	$31,140.90/year	Senators receive $96/day and Representatives receive $77/legislative day (U) set by the legislature/Rules Committee.
Mississippi	$10,000/year	$116/day (U) tied to federal rate.
Missouri	$35,915/year	$103.20/day (U) tied to federal rate. Verification of per diem is by roll call.
Montana	$82.64/day (L)	103.69/day (U).
Nebraska	$12,000/year	$109/day outside 50-mile radius from Capitol; $39/day if member resides within 50 miles of Capitol (V) tied to federal rate.
Nevada	$146.90/day maximum of 60 days of session for holdover Senators, $146.29/day for all other legislators.	Federal rate for Capitol area (U). Legislators who live more than 50 miles from the capitol, if require lodging, will be paid Hud single-room rate for Carson City area for each month of session.
New Hampshire	$200/two-year term	No per diem is paid.
New Jersey	$49,000/year	No per diem is paid.
New Mexico	None	$159/day (V) tied to federal rate & the constitution.
New York	$79,500/year	Varies (V) tied to federal rate.
North Carolina	$13,951/year	$104/day (U) set by statute. $559.00/month expense allowance.
North Dakota	$141/day ($148/day effective 7/1/10) during legislative sessions (C)	Lodging reimbursement up to $1,040/month (V).
Ohio	$60,584/year	No per diem is paid.
Oklahoma	$38,400/year	$150/day (U) tied to federal rate.
Oregon	$21,612/yr	$116/day (U) tied to federal rate.
Pennsylvania	$78,314.66/year	$154 GSA Method $163 IRS High/Low Method
Rhode Island	$13,089.44/year	No per diem is paid.
South Carolina	$10,400/year	$131/day for meals and housing for each statewide session day and committee meeting tied to federal rate.
South Dakota	$12,000/two-yr term	$110/legislative day (U) set by the legislature.
Tennessee	$19,009	$185/legislative day (U) tied to federal rate.
Texas	$7,200/year	$168/day (U) set by Ethics Commission.
Utah	$117/day (C)	$106/day (U) lodging allotment for each calendar day, tied to federal rate, $61/day meals (U).
Vermont	$636.62/week during session $118 per day for special sessions or interim committee meetings	Federal per diem rate for Montpelier is $101/day for lodging and $61/day for meals for non-commuters; commuters receive $61/day for meals plus mileage.
Virginia	$18,000/year Senate, $17,640/year House	House - $135/day (U) tied to federal rate. Senate $169 (U) tied to federal rate.
Washington	$42,106/year	$90/day
West Virginia	$20,000/year	$131/day during session (U) set by compensation commission.
Wisconsin	$49,943/year	$88/day maximum (U) set by compensation commission (90% of federal rate). Per diem authorized under 13.123 (1), Wis. Statutes, and Leg. Joint Rule 85. 20.916(8) State Statutes and Joint Committee on Employment Relations (JCOER) establishes the max. amount according to the recommendations of the Director of the Office of State Employment Relations. The leadership of each house then determines, within that maximum, what amount to authorize for the session.
Wyoming	$150/day (L)	$109/day (V) set by the legislature, includes travel days for those outside of Cheyenne.

 

Source: National Conference of State Legislatures

RockTheCapital.org (RTC) announced that it has asked the Internal Revenue Service and the Pennsylvania Department of Revenue to investigate the state and federal tax implications of “unvouchered expenses.” While public pressure forced the repeal of the illegal raises last year, many lawmakers are refusing to return the money to the taxpayers and others have opted to repay it over time.

Eric Epstein, RockTheCapital.org’s coordinator stated, “We should not reward people for doing the wrong thing. The voluntary repayment system is not working and has created disincentives for legislators to pay the money back to the General Fund.”

At issue is how the Internal Revenue Service (IRS) and the Pennsylvania Department of Revenue (PDR) will define, account, assess, monitor and verify the additional income.

 

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Information Letter Request

Response from the Department of Revenue

Letter to Thomas D. Kimmet, Office of the Cheif Counsel, Department of Revenue

Letter to Marilyn Baker, Manager, Customer Account Services, Department of the Treasury

State House Minority Whip David Argall’s (R-Schuylkill & Berks Counties) expense records reveal that the incumbent is collecting an exorbitant amount of supplemental, tax-free income in the form of “per diems.” A thorough review of Rep. Argall’s expenses for the period 2005 through 2007 indicates he routinely collected the maximum per diem allowable even as he assumed his duties on the Speaker’s Commission on Legislative Reform.

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Download Argall’s Expense Report

RocktheCapital.org has prepared a Citizen's Guide to cutting $559,083,601.60 million from the Pennsylvania 2009-2010 fiscal year budget without impacting social services, education, health care or infrastructure.

1. Reduce non-lapsing, leadership accounts by 90%: Estimated annual savings of at least $217.35 million.
2. Allow the Department of Public Welfare to directly purchase prescription drugs for 1.2 million Pennsylvanians receiving medical assistance: Annual estimated savings of $146 million.
3. Eliminate film tax credit and marketing budget: Savings of $75.5 million.
4. Reduce legislative budget by 20% of $350 million: Estimated annual savings of $70 million.
5. Reduce DCED’s budget by amount appropriated to six legislative non-profits: Rebate of $29.6 million.
6. Eliminate tourism promotion WAMS: Estimated savings of $15.6 million.
7. Eliminate the Independent Regulatory Review Commission:
   Estimated annual savings of $2.1 million.
8. Eliminate Public Service Announcements:
   Estimated annual savings of $1.35 million.
9. Require health care contributions by the House of Representatives and their staff of 1% of their gross pay: The estimated annual savings - based on 203 representatives and 2,038 employees - is at least $1 million.
10. Ten percent cut in the salary of the 22 highest paid Penn State vice presidents: Estimated annual savings of $583,601.60.

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Ten Budget Cutting Proposals: 2008

$313,358,707.34

 

1. Liquidate non-lapsing, leadership accounts $241.5 million
2. Reduce legislature spending by 20%: $57.2 million annually.
3. Eliminate BIG: $10.6 million one-time refund.
4. Eliminate PSAs: $1.35 million in annual savings.
5. Reduce PHEAA funding by the amount spent on “lobbying fees:” $1 million.
6. Reduce judicial office space spending by 20%: Minimal annual savings: $684,000.
7. Reduce Penn State University’s annual allocation by the amount of Graham Spanier’s annual base salary: $611, 367.
8. Reduce Turnpike funding by amount spent on “lobbying fees.” Minimal annual savings: $312,000.
9. Refund from Senate members who continue to profit from "unvouchered expenses”: $67,340.34.
10. Rep. Mark Cohen’s refund for using tax payer dollars for his book buying sprees and New York weekends: $34,000.

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Twelve Alternative Budget Cutting Proposals

$300,290,839.54

 

1. Liquidate leadership accounts and refund FYI 2008 appropriations: $219 million + $60.5 million = $279.5 million
2. [Or reduce legislature spending by 20%: $57.2 million annually]
3. Eliminate BIG: $10.6 million one-time refund
4. Eliminate PSAs: $6.24 million in annual savings
5. Reduce PHEAA funding by the amount spent on Board perks and frivolous litigation costs: $1.215 million
6. Reduce PHEAA funding by the amount spent on “lobbying fees.” Minimal annual savings: $1 million
7. Reduce judicial office space spending by 20%: Minimal annual savings: $684,000
8. Reduce Penn State University’s annual allocation by the amount of Graham Spanier’s annual base salary: $545,016
9. Reduce Turnpike funding by amount spent on “lobbying fees.” Minimal annual savings: $312,00o
10. Eliminate John Estey’s part-time job working for the state: $147, 443.
11. Rep. Mark Cohen’s refund for using tax payer dollars for his book buying sprees and New York weekends: $34,000
12. Senator Mellow promised refund of the “unvouchered expenses” he kept: $13,380.54

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The coalition of organizations seeking to improve state government has endorsed the following priorities as a “Roadmap for Reform” in 2006. We expect to see these priorities enacted between now and Election Day.

 

Download the Roadmap for Reform

Download the Reform Coaltion Introduction