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February 8, 2012 | Commentary by NATHAN BENEFIELD
Fireproofing Pennsylvania's Economy
It doesn't take a crystal ball to see that without swift action Pennsylvania's fiscal house will soon burst into flames. State lawmakers have adequate warning about the threats to our economy, but business as usual will leave taxpayers and future generations with a four-alarm inferno.
December 22, 2011 | Commentary by NATHAN BENEFIELD
Why Gov. Corbett Didn't Get His Christmas Wish List
For Christmas this year, Gov. Tom Corbett hoped the legislature would gift wrap three things he could tie a bow on: An education reform package that included school vouchers, state liquor store privatization and legislation addressing gas drilling in the Marcellus Shale.
October 17, 2011 | Testimony by NATHAN BENEFIELD
Inheritance Tax Reform
Testimony of Nathan A. Benefield, Director of Policy Analysis, Commonwealth Foundation for Public Policy Alternatives, Pennsylvania House Finance Committee
Recent Blog Posts
FEBRUARY 8, 2012
5 Facts about Gov. Corbett's Budget Proposal
Here are five things everyone should know about Gov. Corbett's proposed Pennsylvania state budget.
- Reduces overall spending. Both the General Fund and the total operating budgethave been cut - for the 2nd consecutive year, and only the second time in more than 40 years.
- Spends more than revenue. The state began this fiscal year (2011-12) with a $1 billion General Fund balance, but spending will be $1.2 billion more than expected revenues. The 2012-13 proposed budget continues this trend, spending $79 million more than forecasted revenues.
- Debt and pension payments continue to rise. Debt payments will increase by $73 million. Pension payments for school districts will increase by $316 million, and pension costs for state workers will grow by more than $200 million.
- Corrections spending is level funded. Corrections spending grew 17-fold since 1980, fueled by a 500 percent increase in the number of prisoners. Gov. Corbett's budget begins the systemic reform needed to slow that trend without compromising safety.
- Welfare spending is reduced. But Medical Assistance (the largest share) increases by $210 million, while other programs are cut by $300 million.
Click here for more on the Pennsylvania state budget.
posted by NATHAN BENEFIELD | 10:29 AM | 0 comment
FEBRUARY 3, 2012
Largest Growth in Pennsylvania Private Sector Jobs Since 1999
The Bureau of Labor Statistics has updated their employment data by state through the end of 2011 (subject to revision).
Looking at December job data ("not seasonally adjusted") over the past couple decades reveals some interesting trends:
- 2011 saw the largest one-year growth in private sector jobs in Pennsylvania since 1999, according to Bureau of Labor Statistics data.
- Manufacturing job growth in Pennsylvania was higher than any year since 1990.
- From 2000 to 2010, the private sector lost 116,400 jobs, while government jobs grew by 30,800.
- In 2011, government jobs declined by 20,200, but the private sector grew by 79,000 jobs.
posted by NATHAN BENEFIELD | 00:44 PM | 0 comment
FEBRUARY 2, 2012
Yes, Welfare is for Poor People
The Department of Public Welfare announced its plan to impose an asset test for food stamp recipients. The proposal would limit food stamps to most households with under $5,500 in assets, or $9,000 in assets for anyone over age 60 or with a disability (see below for clarification of "assets"). Elizabeth and Jay wrote on the merits of asset testing last week.
In a Capitolwire (subscription) piece, Rep. Mike Sturla lashes out at the administration's policy saying,
"We're going to take the concept of the safety net and flip it and tell people they have to impoverish themselves before they get the benefits."
Just to make sure I wasn't misunderstanding the outspoken representative, I Googled the definition of impoverish and came up with "To reduce to poverty; make poor."
Indeed! Welfare programs like food stamps were designed to help poor people, and the administration's policy will work to ensure it serves only poor people.
Here is another important bit of information in the Capitolwire piece, namely, what isn't counted as "assets" under the standard:
- Homes and surrounding land and buildings which are not separated by property that is owned by others;
- A home temporarily unoccupied because of employment, training, casualty, illness or natural disaster if the household intends to return;
- A second home if it is up for sale;
- A lot on which a household which currently does not own a home intends to build a permanent home;
- Personal effects and burial plots (clothing, jewelry, gift cards);
- Household goods;
- Life insurance and pension plans;
- Income producing property and equipment;
- One vehicle per household, vehicles under $4,550 in value and any vehicles used to generate income;
- Government payments;
- Inaccessible resources (e.g. frozen bank accounts);
- Installment contracts;
- Resources previously prorated as income;
- Non-liquid resources with liens;
- Disaster and emergency assistance payments;
- Certain government resources such as tax refunds, federal child tax credits, earned income tax credit, WIC, and education assistance;
- Indian funds and lands;
- German reparation payments;
- Education savings accounts;
- Family savings accounts; and,
- Seed accounts.
posted by NATHAN BENEFIELD | 02:25 PM | 0 comment
