Tuesday, March 27, 2007
More Useless Studies
Over the weekend three separate studies were released by three separate organizations purporting to document issues affecting Pennsylvania. The Brookings Institution looked at population and demographic issues, the Center for Rural Pennsylvania examined, appropriately, rural issues, and the Pennsylvania Economy League tackled fiscal health in the state’s municipalities. This blog entry looks at the Economy League study.
Noting that fiscal health in many of the state’s 2,500 municipalities are in decline or beyond repair, the study calls for changes to state laws like Act 111 (binding arbitration for public safety workers) and Act 511 (the local tax code) in order to prevent more municipalities from heading into financial distress under Act 47 (the study asked for changes in that law as well). Though some communities—primarily small, rural/suburban townships—are OK now, it is only a matter of time before the roof comes crashing down.
The diagnosis is not in dispute, just the suggested cure. While we argue for imposing government spending limits, referenda for all local tax increases, outsourcing non-core services, the report suggests giving municipalities more revenue options to choose from (a la the school referendum under Act 1), shared expertise amongst communities, enhanced state-level programs, and, of course, further study of the problem.
Pennsylvania’s problems are not on the revenue-side. Philadelphia has a tax system envied by officials in this part of the state as they can tax non-residential income, yet the study does not see the City as healthy. Ditto for Pittsburgh, which has a pretty extensive menu of tax choices, more than the typical southwestern PA community, yet still is in distress and under state oversight.
The problems here are too much government spending, too much one party control of major metropolitan areas, and a subservience to public sector unions that defies common sense and good government practices.
Noting that fiscal health in many of the state’s 2,500 municipalities are in decline or beyond repair, the study calls for changes to state laws like Act 111 (binding arbitration for public safety workers) and Act 511 (the local tax code) in order to prevent more municipalities from heading into financial distress under Act 47 (the study asked for changes in that law as well). Though some communities—primarily small, rural/suburban townships—are OK now, it is only a matter of time before the roof comes crashing down.
The diagnosis is not in dispute, just the suggested cure. While we argue for imposing government spending limits, referenda for all local tax increases, outsourcing non-core services, the report suggests giving municipalities more revenue options to choose from (a la the school referendum under Act 1), shared expertise amongst communities, enhanced state-level programs, and, of course, further study of the problem.
Pennsylvania’s problems are not on the revenue-side. Philadelphia has a tax system envied by officials in this part of the state as they can tax non-residential income, yet the study does not see the City as healthy. Ditto for Pittsburgh, which has a pretty extensive menu of tax choices, more than the typical southwestern PA community, yet still is in distress and under state oversight.
The problems here are too much government spending, too much one party control of major metropolitan areas, and a subservience to public sector unions that defies common sense and good government practices.
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No the problem is having a different government entity for each square mile of Allegheny County. There should be but a few different entities in the whole county, not a 130.
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