Posts Tagged 2016

Winners and Losers


One of the many quirks of our political system is that each year there are winners and losers among politicians whose names are not actually on the ballot.  This year is no exception.  Neither Governor Tom Wolf nor State Senator Scott Wagner was up for election this year, but results of the balloting sent their career paths in opposite directions.

Governor Wolf has had a tough first two years in office dealing with a Republican-controlled legislature. His efforts to dramatically expand government spending, and to implement the historic tax hikes needed to pay for that agenda resulted in the longest budget stalemate in state history.  Legislative Republicans won.

Tuesday voters rewarded the GOP with even larger legislative majorities. Democrats in the state senate are now on life support.  Two Democratic incumbents were defeated by challengers; a third Democrat seat went Republican after the incumbent gave up several months ago and resigned from the ballot.  Combined, the three seats give Republicans a 34-16 edge and something rarely if ever seen in state government: a veto proof majority.

Meanwhile, across the rotunda in the House of Representatives Republicans saw their already historically high majority expand by three seats as four incumbent Democrats and one incumbent Republican lost.  The Republican pick-ups came in southwestern Pennsylvania which has been trending toward the GOP for several election cycles.  In fact, the most endangered species in Penn’s Woods might well be the non-urban legislative Democrat, with only a handful of Democratic lawmakers representing districts outside of the state’s urban cores.

All of this matters because next year’s state budget battle is shaping up to be even tougher than the first.  Republicans caved into Governor Wolf’s spending demands this year, but failed to fully fund the budget.  That coupled with revenue sources that either never materialized or have failed to meet projections presages a major fiscal fight next year.

Not only have Republicans added to their numbers, but this year’s legislative elections moved both chambers further to the Right.  Moderate state senators like Cumberland County’s Pat Vance and Lancaster’s Lloyd Smucker have been replaced by far more conservative legislators.  The continued drift of the House GOP caucus from moderate southeastern dominance to conservative central and western Pennsylvania influence means tougher sailing for those wanting to raise either taxes or spending.

Governor Wolf also saw his agenda rejected in another race; that the battle for Pennsylvania’s U.S. Senate seat.  The Democratic nominee, Katie McGinty, was Governor Wolf’s first chief of staff and architect of the tax and spend plan that triggered the epic budget battle.  Incumbent U.S. Senator Pat Toomey made hay of that effectively painting McGinty as out of touch with the financial needs of average Pennsylvanians. He won, she lost.

How then do the fortunes of one state senator rise on all of this? Senator Scott Wagner was an establishment pariah when he ran for an open seat in York County in 2014.  Shunned by his own party Wagner accomplished an historic first in Pennsylvania: He won a special election on a write-in defeating both party nominees.

The upstart senator has quickly gained clout and was tapped by his colleagues to lead the Senate Republican Campaign Committee.  The SRCC as it is known is tasked with recruiting, funding and electing Republicans to the state senate.  After playing a major role in helping to win several seats two years ago, Wagner effectively recruited candidates like Senator-elect John DiSanto of Dauphin County who upended Democratic incumbents last week.  Much of the credit for the senate’s now veto-proof majority goes to Wagner.

This is important because Scott Wagner has made no secret of his desire to run for governor in 2018 and is widely expected to announce his candidacy within weeks.  Having built a strong senate majority gives him a leg up both on the Republican nomination and on a grassroots organization for the battle against Tom Wolf who is expected to seek re-election.

Thus the 2016 election has set the stage for the beginning of the next big electoral battle in Pennsylvania. Political fortunes have risen and fallen. And the never ending cycle of campaigns has already begun anew offering no respite for weary voters.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

Stagnation: PA business climate remains sluggish


Pennsylvania’s business climate remains sluggish as the commonwealth continues to struggle in the aftermath of the Great Recession.  Business conditions, employment levels and sales have all backslid over the past six months with owners blaming high taxes, government regulation and a lack of skilled workers for the malaise.

The Fall 2016 Keystone Business Climate Survey conducted by the Lincoln Institute of Public Opinion Research found half of the business owners and chief executive officers survey saying the state’s economy has gotten worse over the past six months, only five percent felt Pennsylvania’s business climate had improved during that time frame.

Comparatively, one year ago 42% felt the business climate had gotten worse, while six percent at that time said it had improved.  There is little optimism that business conditions will improve soon. Forty-four percent say they expect the state’s economy to continue getting worse over the upcoming six months, five percent expect to see an improvement in the business climate.

Along with that pessimistic overall prognosis twice as many businesses report having reduced their workforce as say they have added jobs.  The majority of businesses – 66% – reported that employment levels remained about the same over the past six months.  But, 21% said they have reduced their employee compliment while 11% added employees.  The picture improves slightly as the owners/CEOs look ahead to the coming six months.  Sixteen percent say they plan to add employees, 12% expect to reduce their workforce.

Sales have also taken a hit over the past six months.  Thirty-nine percent said their sales remained about the same from March thru September.  But, 39% reported decreased sales and were off-set by only 21% having reported sales increases.  Looking forward, 51% expect sales to remain stable.  Twenty-Four percent forecast an increase in sales, 23% are braced for a sales decrease.

Factors Impacting Business Growth

Among the factors cited by businesses for why they considered expanding their businesses over the past two years, but decided against expansion taxes and regulation topped the list of barriers.  Onerous federal regulations were cited by 41% of the businesses that considered, but rejected, expansion plans.  Coming in a close second was Governor Tom Wolf’s proposed tax increases cited by 40% as a reason why they did not expand. Pennsylvania’s tax structure was listed by 29% as having frustrated expansion plans.

Thirty-six percent cited onerous state regulations as a barrier to expansion, while another 35% cited the lack of a skilled work force.  Nearly half of the businesses surveyed said they currently have open positions for which they have been unable to find qualified applicants. Forty-two percent say they have been unable to fill one to five jobs; 2% have six to ten open positions; one percent has more than ten jobs unfilled due to lack of qualified applicants.

State Issues

Pennsylvania fiscal condition continues to be of concern to the business owners and CEOs participating in the Fall 2016 Keystone Business Climate Survey.  Eighty-five percent disagreed – 70% strongly so – with Republicans in the General Assembly having agreed to a $1.4 billion spending increase and then raising taxes to enact the current year’s state budget.

Looking ahead to what will likely be another epic budget battle next summer, 92% say the General Assembly must address cost drivers such as pension reform before considering an increase in taxes.  In fact, 34% said the state’s massive unfunded pension liability has caused them to not consider expanding in Pennsylvania.

Among pension reforms being considered is moving state employees from the current defined benefit pension system to a defined contribution plan. Thirty-nine percent of the businesses surveyed said they offer employees a company administered defined contribution plan to which the company contributes.  Only 3% of the private businesses surveyed continue to offer a defined pension plan.  Another 40% offer employees no retirement plans at all.

Earlier this year the General Assembly did pass, and Governor Tom Wolf signed into law, some modest changes to the state’s century-old liquor laws. Business owners/CEOs said those reforms did not go far enough.  Fifty-two percent would like for the state to completely privatize both retail sales and wholesale distribution of alcoholic products.  Another 26% would like to see just retail sales privatized.  Twelve percent said the recent changes were sufficient.

Pennsylvania has an abundant supply of natural gas, but additional pipelines are needed to get that gas to market.  Eight-nine percent agree – 60% strongly agree – that this resource should be developed and more pipelines built.  Nine percent disagree.  Twenty-five percent said easier access to natural gas would be a benefit to their business with an additional 14% saying it would be a major benefit.  Thirty percent said they do not utilize natural gas in their business.

Over the past nine years since the passage of Act 44 the Pennsylvania Turnpike Commission has diverted $5.2 billion to PennDOT to help pay for state highways and public transit.  This has resulted in annual fare increases for turnpike travelers.  Sixty-three percent of those participating in the Fall 2016 Keystone Business Climate Survey said this should end and fare revenue be used only to maintain and improve the turnpike.  Twenty-nine percent felt the sharing of revenue should continue.

Job Approval Ratings

President Barack Obama and Governor Tom Wolf continue to suffer from significantly low job approval ratings among the business community.  Eighty-four percent have a negative view of the President’s job performance; 86% disapprove of the job being done by Governor Wolf.

U.S. Senator Pat Toomey, who faces re-election in November, received a 50% job approval rating against 23% with a negative view of his job performance.  The job being done by U.S. Senator Robert P. Casey, Jr. is viewed negatively by 56% of the business owners/CEOs, 18% give him positive marks.  Likewise, 54% say Federal Reserve Chair Janet Yellen is doing a poor job, 15% approve.

Pennsylvania has three statewide constitutional or “row” offices. Two are serving by appointment, their elected predecessors having resigned after being convicted of crimes.  Auditor General Eugene DePasquale is the surviving official elected in 2012 still in office.  Seventy-three percent have no opinion of his job performance, with 14% saying he is doing a good job and 14% having a negative opinion of his job performance.  Likewise about two-thirds offered no opinions on state Treasurer Tim Reese or Attorney General Bruce Beemer.  Of those who did, 18% give Beemer a negative rating, 6% a positive one while 15% hold a negative view of Reese, 5% a positive view.

As has been the case throughout the Keystone Business Climate Survey’s 22-year history the owners and chief executive officers hold the federal congress and the state legislature in very low regard.  Just 8% approve of the job being done by the United States Senate, 11% approve of the job being done by the U.S. House of Representatives.  Seventeen percent approve of the job performance of the Pennsylvania Senate; 19% approve of the job being done by the Pennsylvania House of Representatives.

Finally, the Lincoln Institute asked participants in the survey who they support for President of the United States and United State Senator from Pennsylvania in the upcoming November General Election.  Seventy-three percent said they will vote for the Republican nominee Donald Trump, 12% support the Democratic nominee Hillary Clinton and 6% say they will vote for Libertarian Gary Johnson.   Republican incumbent U.S. Senator Pat Toomey has the support of 81% of the owners/CEOs, Democratic challenger Katie McGinty has 12% support.

Methodology

The Fall 2016 Keystone Business Climate Survey was conducted electronically by the Lincoln Institute of Public Opinion Research, Inc. from September 13 through October 5, 2016.  A total of 370 businesses responded to the survey invitation.  Of those 81% are the owner of the business, 14% are the CEO/COO/CFO and one percent a business manager.

Twenty-five percent of the responses came from the Philadelphia/southeastern part of the state; 18% from Pittsburgh/southwestern Pennsylvania; 16% from south/central Pennsylvania; 13% from northwestern Pennsylvania; 11% from northeastern Pennsylvania; 10% from north-central Pennsylvania; 4% from the Lehigh Valley and 3% from the Altoona/Johnstown area.

Complete numeric results are posted on-line at http://www.lincolninstitute.org

, , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

What’s My Line?


There is an old television game show entitled “What’s My Line?” The game featured celebrity panelists questioning contestants to determine their occupations.  Let’s play a Pennsylvania version of the show: Who are Otto Voit, Joe Torsella, John Brown, John Rafferty and Josh Shapiro?  The answer is they are all currently running for statewide office in Pennsylvania.

Next question: Can you correctly identify the office for which they are running?  The answers are Voit and Torsella are running for state treasurer; Rafferty and Shapiro for attorney general; and John Brown, along with incumbent Eugene DePasquale are running for auditor general.

When it comes to statewide offices in Pennsylvania it is either feast or famine.  This year’s ballot will feature a veritable buffet for voters from President of the United States to U.S. Senate to the already mentioned three statewide constitutional offices. But next year statewide politics goes on a strict diet with only appellate court seats on the menu.

Voters respond accordingly.  Turn-out for the 2012 election topped 58% in Pennsylvania.  The following year, 2013 sported only one statewide race – a seat on the state superior court – and voter turn-out plummeted to less than 17%.  As a side note, that 2013 judicial race was won by Victor Stabile who has the distinction of being the only Republican to win a statewide election in the past four years.

In 2012, President Barack Obama powered a sweep of statewide offices as Democrats were elected state treasurer, auditor general and attorney general. It was the first time since attorney general was made an elected position back in 1980 a Democrat won that office. Four years later, however, former Attorney General Kathleen Kane and former state Treasurer Rob McCord have been convicted of high crimes and await sentencing.  Auditor General DePasquale, it should be noted, has served scandal free.

Corruption in these statewide constitutional or “row” offices is unfortunately not uncommon in Pennsylvania.  Former state Treasurer Barbara Hafer was recently indicted for alleged improprieties dating to her time in office.  Going back a bit further, former Auditor General Al Benedict and former state Treasurer R. Budd Dwyer were convicted of crimes. Benedict admitted his guilt, Budd Dwyer died proclaiming his innocence.

Of course it is impossible to know whether or not a candidate will be honest in advance, but it is clear the currently system has not provided voters with the opportunity to learn enough about the candidates.  While tens of millions will be spent on this year’s U.S. Senate race between Pat Toomey and Katie McGinty, candidates for the row offices will likely be lucky to have a couple of million to present their credentials to voters.

It is unreasonable to expect voters to pay attention to who will be state treasurer, auditor general or attorney general in a year when a presidential campaign dominates the news.  You aren’t going to see Otto Voit and Joe Torsella on the front page of the paper every day – in fact they’ll be lucky to be in the paper at all.  And no television station is going to go live and lead from an appearance by these candidates.  Many voters will go to the polls not even knowing their names, much less with a full understanding of their credentials and plans for the offices they seek.

This will continue to be the case for however long these offices are filled in a presidential election year.  So here is a thought: move the election of these three offices to the year following the presidential election.  In the four year cycle of elections the “off year” following presidential balloting is the lowest profile year.  Only statewide appellate court seats are on the ballot, and – except for home rule counties – there aren’t even county commissioner races to capture voter interest.

By moving the election of the treasurer, auditor general and attorney general to the off year they would become the marque races.  The news media could devote more attention to the candidates.  Fundraising would be easier.  Party activists could devote more time to their campaigns. Voters would be able to focus.  They would go from being a side salad in the electoral buffet to the main course.

With a brighter spotlight on these offices we would hopefully end up with more voters at the polls, and fewer of the officials elected in jail.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

Bellwether: PA Again the Keystone State


If early polls are any indication, Pennsylvania is posed to be one of the major battleground states as Donald Trump and Hillary Clinton enter the final months of the 2016 presidential campaign. Some polls give Mrs. Clinton a one to three point edge; others place Mr. Trump in the lead by the same margin.  Both campaigned here pre-convention and voters likely will see a lot of the candidates and their running mates now that the general election phase of campaign is underway.

In political parlance Penn’s Woods can be viewed as one giant focus group.  We are, in many ways, a microcosm of America.  Philadelphia is a large eastern city; Pittsburgh is a mid-sized, mid-western city, with smaller cities like Erie, Harrisburg, Scranton and Allentown dotting the map.  We have thriving suburbs in the collar counties outside of Philadelphia and in places like Washington and Westmoreland counties near Pittsburgh. And, of course we have vast rural expanses.

Pennsylvania is economically diverse as well.  Manufacturing has struggled – as it has nationwide, but the commonwealth is home to high tech industries, pharmaceutical research, world-class medical centers, and thriving retail centers.  We have abundant natural resources, especially gas reserves and coal and fields overflowing with everything from apples to corn.

The diversity of our state’s economy has shielded it from the outer fringes of economic booms and busts, but for a variety of reasons having to do with both federal and state public policy our business climate remains stagnant with slow growth causing frustration across the economic spectrum.

A rare point of agreement is that the nation is sharply divided on how to proceed.  At times we can’t even agree on what the problems are, much less arrive at a consensus on solutions.  Against this backdrop, the Lincoln Institute of Public Opinion Research surveyed delegates and alternate delegates to the Republican and Democratic national conventions to determine how big of a divide separates the two parties.

The delegations begin with polar opposite views on the role of government itself.  When asked whether the federal government is an adversarial force when it comes to helping to solve problems, or is it a positive force in helping people 97% of the Republican delegation said government is an adversarial force.  Democrats were almost evenly split on the question, with 52% viewing government as a positive force, and 48% saying it is adversarial.

There is disagreement on an even more fundamental question: whether we as Americans have natural rights that are God-given, or are our rights granted to us by government.  Again, Republicans were nearly unanimous with 97% saying our rights come from God. A majority of Democrats – 61% – think our rights are granted to us by government; 39% say our rights are God-given.

Pennsylvania’s delegations to the Republican and Democratic national conventions have vastly different views as to which issues should top the national agenda with one exception: Supreme Court nominations.  Both delegations place the selection of nominees to the Supreme Court of the United States on their lists of top three important issues.  From there the delegations diverge.  Republicans place the protecting of constitutional rights and ISIS/terrorism in their top three; Democrats are concerned about income inequality and the development of alternate energy sources.

As could be expected, the delegations have sharply different views on the impact of the Obama Administration.  For example, 70% of the Democratic delegation believes the administration’s foreign policies have made America more secure; 99% of Republicans say they have made the nation less secure.  Ninety percent of Democrats say the Obama approach to ISIS/international terrorism is on the right track; 100% of the Republican delegation said it is on the wrong track.

Republican nominee Donald Trump has made illegal immigration a cornerstone of his campaign for the presidency.  Twenty-six percent of the Republican delegates/alternate delegates backed his call for banning all Muslims from entering the country; 64% support banning entry from countries that are hotbeds of terrorist activity.  Not a single member of the Democratic delegation backed banning all Muslims with 97% saying current laws are sufficient.

Do the two delegations agree on anything?  The closest they come to agreement is on the proposed Trans Pacific Partnership.  Here Democrats disagree with President Obama, who is the main proponent of the deal, with 69% opposing TPP.  Sixty-one percent of the Republican delegation also oppose the free trade agreement.

The deep ideological and policy divisions among the state’s delegations to their respective national conventions reflect the electorate at large.  The battle for Pennsylvania will be hard fought between two vastly different views of where the nation is today and of America’s future.

(Lowman S. Henry is Chairman/CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

When in the Course of Human Events


This is the time of year when Americans celebrate the anniversary of our declaration of independence from Great Britain.  It is ironic that the United Kingdom itself a few days ago found it necessary “for one people to dissolve the political bands which have connected them with another.”  By leaving the European Union the British people have reconfirmed that the longing for liberty is an eternal emotion.

Meanwhile, here in the colonies, the very document that ensured our rights as a free people has been under relentless attack.  The Constitution of the United States has withstood the test of time. After the Articles of Confederation failed to provide the framework for an effective federal government delegates from the 13 colonies met in Philadelphia and in September of 1787 put their signatures to the document which, at least theoretically, remains our nation’s ultimate authority.

On June 21, 1788, New Hampshire became the ninth state to ratify theConstitution which then took effect on March 4, 1789.  The document was, however, viewed as incomplete and several states insisted on the inclusion of ten amendments, which became known as the Bill of Rights.  Those amendments were ratified and became effective on December 15, 1791.

That the Bill of Rights was necessary is evidenced by periodic efforts throughout our nation’s history to disregard, water down, or remove them entirely.  Perhaps no amendment has been so violated as the tenth which limits the power of the federal government.  Congress and the president, frequently with complicity by the Supreme Court, have consistently throughout the ages infringed on this right.  Today the assault continues, especially upon the second amendment governing our right to keep and bear arms.  The non-existent “right” of freedom from religion has replaced the “free exercise of religion” guaranteed in the first amendment.

It is safe to assume that the founding fathers would place in the first amendment those rights that they viewed as most vital to a free people.  It is here that the Constitution guarantees our right to freedom of speech and of the press.  Now obviously there was no electronic media or internet back in 1787, but freedom of speech and of the press clearly applies to all means of communication.

A free press was instrumental in our nation’s founding.  The only method of mass communication was through the printing press producing formal newspapers, pamphlets, and broadsides.  From Thomas Paine during the revolution to the Federalist Papers, the expression of opinion via the printed word was a vital means of exercising free speech.  Throughout our history we have depended on a free press to keep government in check, such as it did during the Watergate scandal of the 1970s.  So vital is a free press that it is often referred to as the “fourth estate,” or fourth branch of government.

It is therefore disturbing to see candidates and elected officials from the national to the local level trampling this vital right.  In just the last few weeks, Republican presidential candidate Donald Trump has banned the Washington Post from covering his campaign events.  Here in Penn’s Woods, the Democratic mayor of Harrisburg, Eric Papenfuse, has revoked the credentials of the capitol city’s newspaper the Patriot News/Penn Live. Papenfuse’s actions are especially curious in that he is the owner of a prominent bookstore, so you would think he might have some loyalty to the unfettered circulation of the printed word.

My goal here is not to defend the content of these publications – whose left-wing ideology frequently taints their reporting of the news – but to stand up for their right to do so.  If elected officials, from mayors to presidents can decide who can cover the news they can also then control the news.  This is not only a violation of the media’s constitutional rights, but an existential threat to our democracy and ultimately our individual liberty.

As we celebrate our freedom with fireworks and back yard barbecues let us always remember that the trampling of one right is the trampling of all rights.  The loss of any one right puts us on a very slippery slope which will ultimately lead to the loss of all rights.  From freedom of the press, to freedom of religion, to our right to keep and bear arms, we must fight to protect our God-given rights against those who would take them away.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

Déjà vu All Over Again


‘Tis budget season again in Harrisburg.  Governor Tom Wolf and the state legislature face a June 30th deadline for enacting the 2016-17 spending plan. If it seems like we just finished the budget; that is because it took until April for the longest fiscal stand-off in state history to be resolved.  And now, it is time to begin anew.

Hopefully, not the lengthy stand-off part.

June is typically when the heavy lifting on crafting the new budget is done, particularly the last week of the month when legislators act like college students pulling an overnighter to get their assignments finished.  In this case though, there is no penalty for tardiness.

The big question under the capitol dome is will there be a summer re-run of the 2015-16 budget drama, or will the state budget actually get done relatively close to the constitutional deadline?  So far, the signals are mixed – but ominous.

Will it be, as Yogi Berra once said, “déjà vu all over again?”  Two factors point to another epic battle.  First, Governor Wolf’s “budget address” last winter lacked any content actually pertaining to the budget. Instead, he unleashed a tongue lashing at the legislature for failing to approve his historic tax and spending increases.  This was as well received as an illegal alien at a Trump rally.  Second, not a single legislator lost in April’s primary as a result of the budget battle.

That second factor is significant.  With all House members and half of the Senate up for re-election this year pressure is normally on to avoid anything even remotely controversial so as not to upset the electorate.  However, Republicans in particular are emboldened because they stood their ground, bested Governor Wolf in round one, and were rewarded by voters.  This gives them no incentive to cave to the governor’s tax hike demands.  Quite the opposite, voters in their districts clearly don’t want expanded state spending and the taxes needed to pay for it.

Conversely, Democrats – who have become essentially an urban party in Pennsylvania – represent districts that benefit from state taxpayer largesse.  Their constituents want more spending because they are on the receiving end, thus those voters returned their representatives to office as well.

Stuck in the middle are the endangered species of suburban Democrats who represent so-called “swing districts.”  Largely located in western Pennsylvania, these districts have been flipping from Democrat to Republican in recent cycles.  This is where the biggest electoral battles of 2016 will be fought, and those Democrats are on the hot seat.

This brings us to the one factor that could bring about a prompt budget resolution: Democratic desires not to lose even more of their seats.  Already Republicans hold legislative majorities not seen in over a half century.  The electoral map does not offer Democrats much hope.  At least three Senate Democrats are imperiled while the GOP faces no significant opposition to holding their seats.  In the House, most battles will again be fought on the little remaining Democrat turf in the western part of the state.

In each of those districts the trend line has been favorable for Republicans, and the Democrat constituencies are far more conservative than those found in urban areas.  Thus, Democratic candidates in each of those districts can ill afford to be tagged with supporting Governor Wolf’s tax and spend agenda.  This is incentive for Democratic leadership to postpone until next year any epic battle over the budget.

Should that occur Pennsylvania taxpayers will have only a brief respite.  Governor Wolf must stand for re-election in 2018 meaning his last shot at enacting his bold plans to expand the size and scope of state government will come next year.  Lose, and his image as an isolated and ineffective chief executive will be cemented into place.  But for Tom Wolf, even winning comes with some risk: will statewide voters actually reward a governor who just imposed upon them a historically large tax hike?

The only thing we can say for sure is it will be interesting to watch.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

It’s the Delegates, Stupid


As the lengthy presidential primary and caucus season moves into its end stages the electorate is beginning to realize that winning delegates is more important than winning states.  The value of delegates is rising in both the Democratic and Republican contests as Bernie Sanders’ victories fail to translate into delegates and the GOP race has become so fragmented a contested convention is now a very real possibility.

Not since 1976 have Americans witnessed a contested convention.  When the GOP met in Kansas City that year incumbent President Gerald R. Ford entered the convention just short of having a majority of delegates.  He ended up beating Ronald Reagan for the nomination before losing the General Election to Jimmy Carter.

In recent decades presidential nominating conventions have been little more than three or four day infomercials.  The primary and caucus system determined nominees well in advance of the conventions which then were heavily scripted to establish campaign themes and play to a television audience.  As a result voters have lost sight of the fact that primaries and caucuses do not pick the nominee – delegates do.

That is not to say voting in a primary or a caucus doesn’t matter.  It does as many delegates are bound – at least on the first ballot – to the outcome of a primary or caucus win.  Most, but not all, will be so encumbered.  But, should it take more than one ballot many of those delegates become unbound and are then free to vote for whomever they choose. There are also “super delegates” on the Democratic side: party officials who are not bound to any specific candidate, and uncommitted delegates on the Republican side who are similarly unfettered.

The race for the Republican presidential nomination began with 17 candidates competing creating an environment which raised the potential for a contested convention.  Looking at the math it will be difficult for any candidate to secure a majority of committed delegates prior to the convention, but Donald Trump and Ted Cruz still remain mathematically viable.  Ohio Governor John Kasich has been mathematically eliminated, but is pinning his hopes on winning over delegates in a contested convention.

As if this were not confusing enough for the average voter, Pennsylvania Republicans will face a challenge when they step into the voting booth on April 26th.  The first step is simple enough: voters can cast their ballot for the presidential candidate of their choice.  The winner of the statewide presidential primary will then get 17 at-large delegates committed to him on the first ballot in Cleveland.  If the convention takes more than one ballot to arrive at a nominee, those 17 may then vote as they see fit.

Now for the complicated part: Three delegates will be elected from each of Pennsylvania’s 18 congressional districts.  The names of the delegate candidates will appear on the ballot, but the word “uncommitted” will appear under each.  This means the voters will not be able to tell by looking at the ballot for whom each delegate candidate is committed – or if they are committed at all.  Thus, to make your vote really matter you must go into the polls knowing not only which presidential candidate you will vote for, but you must also know which delegate candidates are supportive of your presidential candidate.

Some delegate candidates say they will vote for whichever presidential candidate wins their congressional district.  You therefore have no way of knowing whether or not that delegate candidate will support your choice for president until after all of the votes are counted.

Presidential campaigns will be working to elect their delegates, but this year’s primary requires voters themselves to do a bit of homework before going to the polls.  To effectively support a presidential candidate the voter must vote not only for that candidate, but also for three delegates pledged to him.  And they must know who those delegate candidates are before going into the polling place, otherwise their delegate votes are a shot in the dark.

Famed political consultant Jim Carville once put a sign on the wall of Bill Clinton’s campaign headquarters that read: “It’s the economy, stupid.”  That was to keep the focus on the campaign’s central message to voters.  This year the presidential primary in Penn’s Woods will actually matter.  We can update the old Carville saying to: It’s the delegates, stupid.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

An Alternate Universe


News Item: “A cosmologist from the California Institute of Technology (Caltech) believes he may just have found proof that an alternate and parallel universe does indeed exist.”  — Tech Times, November 5, 2015

The existence of an alternate or parallel universe has been the subject of scientific curiosity almost since the beginning of civilization.  But, the Caltech “proof” aside, recent statements by Left wing politicos does indeed prove that there is an alternate universe – because they are living in it.

Here in Penn’s Woods Philadelphia’s new progressive mayor, Jim Kenney made his first trip into the alternate universe within days of taking office.  City police officer Jesse Hartnett was shot point blank while sitting in his patrol car by one Edward Archer.  Archer was dressed in Muslim garb and said he shot the officer because “police bend laws that are contrary to the teachings of the Quran.”

Kenney immediately took to the podium to proclaim: “In no way shape or form does anyone in this room believe that Islam or the teaching of Islam has anything to do with what you’ve seen . . .”   Thus, Kenney continued the great tradition of the Left denying that radical Islam is at the heart of the terror assaults sweeping the globe.  Even when faced with an individual directly linking his actions to radical Islam, Kenney felt compelled to contradict the perpetrator’s own declaration of his motives.

In doing this Kenney takes his cue from President Barack Obama who refuses to even utter the words “Islamic extremism,” and as recently as his State of the Union message a couple of weeks ago continues to pretend the Islamic State of Iraq and Syria, commonly known as ISIS, does not pose a significant threat to our national security.  In fact, just days before the Paris terrorist attacks he emerged from the Left’s alternate universe to proclaim that ISIS had been “contained.” Since making that comment ISIS sympathizers have carried out numerous attacks including the massacre of 14 people in San Bernardino, California.

Also spending time in the alternate universe of the Left is Pennsylvania Governor Tom Wolf.  One of the biggest planets in that alternate universe is the one on which dwells the fiction of public education spending cuts under former governor Tom Corbett.  Governor Wolf has made reversing those non-existent cuts his number one priority.  But when Republicans in the state legislature passed a budget giving him $400 million more in education spending, Wolf applied Common Core math to proclaim it was a $95 million funding cut.

Lest I be accused of lacking diversity, female politicians also populate the Left’s alternate universe.  Commenting on the selection of South Carolina Governor Nikki Haley to deliver the Republican rebuttal to President Obama’s State of the Union Address Democratic National Committee Chair-human Debbie Wasserman Schultz said: “It’s pretty clear that Nikki Haley is being chosen because the Republican Party has a diversity problem.”  Of course you demonstrate a lack of diversity by having a female of Indian background represent your party.

Days later, the white Democratic presidential candidates – which are, well, all of them, debated.  The GOP field has included an African-American, two candidates of Cuban descent, an Indian-American, a woman, and one guy who is good at getting people off beaches in a storm.

That brings us to Hillary Rodham Clinton’s alternate universe in which she claims that GOP presidential front-runner Donald Trump has a “penchant for sexism.”  In making that statement Mrs. Clinton opened a black hole to that universe into which the outspoken billionaire poured the reality of former President Bill Clinton’s well-known dalliances with various women, one of which got him impeached.

And so, with all due respect to Caltech and the scientific community, the Left-wing of American politics has already pretty much proven the existence of an alternate and parallel universe.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

Harrisburg, We Have a Spending Problem


Pennsylvania state government has a structural budget deficit of $1.2 billion dollars.  This somewhat mystical figure is agreed upon by just about everyone.  Given this rare point of agreement, why then is the ongoing budget impasse focused on spending increases rather than spending cuts?

When the working families of Penn’s Woods sit down to pay their monthly bills and income is less than expenses then the family cuts back on spending.  That is because ordinary people can’t just walk into the boss’s office and say “I don’t have enough money to pay my bills so you will pay me more next month.”  And certainly, faced with a deficit, working families – and even most businesses – don’t go out and spend more.

But, that is exactly what Governor Wolf is proposing.  He wants a $4.7 billion increase in state taxes.  If you accept that there is a $1.2 billion structural deficit, then he also wants to increase spending by $3.5 billion.  It is an unrealistic proposal and the reason why the state budget impasse has dragged on for five months.

The governor, however, has won on this front: Republican counter-proposals have focused not on spending cuts, but on increasing spending by less.  Given everyone has bought into the structural deficit number the goal should be to reduce spending to bring actual income and expenditures into balance.  That is what happens in the real world.

Government, however, does not live in the real world.  At no point has a budget been put forward that would even slow the growth of state government let alone cut spending.  The battle has been all about how much bigger state government will become, not about living within our means.

Driving this irrational approach to budgeting is spending on K-12 public education.  The biggest lie since “if you like your health insurance you can keep your health insurance” is that Governor Tom Corbett took a meat axe to education spending.  A cabal of Democratic politicians, labor unions and their media apologists perpetrated that lie during last year’s gubernatorial campaign even though actual spend numbers prove state tax dollars spent on public education increased to record levels under the former governor.

Governor Wolf has never shifted out of campaign mode, and in an effort to repay the unions who financially backed his campaign has made historic increases in education spending a key demand.  Education is a motherhood and apple pie issue.  After all, who doesn’t want our children to have the best education possible?  We all do.  The rub is little of the increases in spending actually benefit children, going instead to pay for bloated administrative bureaucracies and skyrocketing pension expenses.

To their credit, legislative Republicans are insisting on structural reforms to the state’s pension system before agreeing to any spending increase.  But, they have accepted without as much as a whimper the governor’s premise that spending must go up.  Wolf is already crowing that he has gotten Republicans to agree to a “historic” (meaning massively large) increase in state spending on education.

Yet even today, as the budget that should have been done before Independence Day fireworks remains unresolved as we shop for Thanksgiving dinner, not one single party to the budget debate has put on the table any serious menu of potential spending cuts.  Even the GOP’s on-time, no tax hike budget which the governor vetoed included significant spending hikes.  No effort was made to cut spending to match projected income.

There is an old saying in sports that you can’t win by simply playing defense.  That is what has happened as the budget game goes into triple overtime.  At no point has there been an offense designed to cut spending, just defense over spending increases.  So the taxpayers of Pennsylvania have already lost the game, the only hope now is that the final score is not too lopsided.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal.  His e-mail address is lhenry@lincolninstitute.org.)

 

Permission to reprint is granted provided author and affiliation are cited.

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment

Governor Wolf Posts 82% Disapproval Rating


Malaise: Business Owners Turn Deeply Negative

Governor Wolf posts 82% disapproval rating

Governor Tom Wolf, who owned and operated a mid-sized business before running for office, has become enormously unpopular with his former peers posting the second highest negative rating for a governor in the 20-year history of the Keystone Business Climate Survey.  The September poll of business owners and chief executive officers found 82% hold a negative view of the governor’s job performance while 12% say he is doing a good job.

The governor’s budget proposals lie at the heart of the business community’s disapproval. Eight-one percent say the Wolf tax and spending plans would harm Pennsylvania’s business climate, 64% say they would do significant harm.  Further, Wolf gets the lion’s share of the blame for the budget impasse.  Fifty-eight percent say the budget stalemate is the governor’s fault, just 6% blame legislative Republicans.  Another 32% say both the governor and the legislature are to blame for the lack of a state budget.

Business Climate

One year ago, for the first time since the Fall of 2004, more of the business owners/CEOs participating in the survey said that business conditions in Pennsylvania had gotten better (20%) during the preceding six months that felt it had gotten worse (19%).  By last Spring those number had slipped significantly into negative territory with 13% saying business conditions had improved and 33% saying the state’s business climate had gotten worse.  In the current (September 2015) survey, 42% say the business climate in Penn’s Woods got worse over the past six months, 6% say it has improved.

Optimism for improvement of the state’s business climate in the coming six months has faded since last Spring.  Only 6% expect business conditions to improve headed into the new year, down from the 12% who expressed optimism last Spring.  Those who expect the business climate to get worse rose from 44% in March to 49% in the September survey.

Employment levels are also slipping.  Fifteen percent of the owners/CEOs said they have increased the number of employees in their business over the past six months, 21% said they now employ fewer people.  Looking ahead, 14% plan to add employees in the coming six months, 16% expect to have fewer employees.

Sales are also down.  Twenty-eight percent of the businesses participating in the survey say their sales have decreased over the past six months, 27% say sales are up.  There is a bit of optimism for the future, however, as 25% project an increase in sale over the upcoming six months while 18% are bracing for a decrease.

State Issues

The ongoing state budget impasse remains a top issue. Governor Wolf has put the biggest proposed tax hike in the nation on the table, the Republican-controlled legislature refuses to go along. Owners/CEOs participating in the Fall 2015 Keystone Business Climate Survey are not willing to see a resolution of the budget stalemate at any cost. Ninety percent said they do not want a new state budget if it will result in a significant increase in their taxes.  Nine percent say they are willing to pay significantly higher taxes if it would result in an immediate budget resolution.

Education spending is one of the sticking points in the budget.  Governor Wolf is demanding significantly higher spending.  But the poll found business owners disagree with the need to spend more on K-12 public education.  Forty-four percent say the state already spends too much on public education and another 30% feel current spending levels are about right.  Twenty-two percent agree with the governor that too little money is spent on education.

There is strong agreement with the Republican legislative position that the public education pension system must be reformed before any increase in spending is approved. Eighty-seven percent see pension reform as a prerequisite to spending more on education, 10% disagree.

Looking at the budget generally, 69% agree that any resolution to the state budget impasse must include a plan to privatize Pennsylvania’s state-run liquor store system.  Twenty-two percent do not link liquor privatization to a budget resolution.

Asked which statement most closely describes Governor Tom Wolf’s budget proposal 45% said it is a significant increase in spending, 21% identified it as the biggest spending increase in state history and 15% correctly identified it as a tax and spending increase greater than that proposed by all 49 other states combined.  Two percent termed the budget a “modest increase” in state spending.

By some estimates Pennsylvania spends about $700 million a year on individual grants or tax breaks to certain companies or industries. Such grants are viewed by some as “economic development,” by others as “corporate welfare.”  Thirty-two percent of the business owners/CEOs said such grants should be eliminated entirely and taxes reduced on all businesses.  Eleven percent favor the elimination of such grants with the savings used to balance the state budget.  Forty percent would reduce, but not eliminate economic development grants, and 4% think more money should be spent on such projects.

Job Approval Ratings

Eighty-two percent disapprove of the job being done by Governor Wolf, up from the 70% who held a negative view of the governor in the March 2015 poll.  That number is the second highest disapproval rating for a governor in the 20-year history of the Keystone Business Climate Survey surpassed only by the 86% negative rating received by Governor Ed Rendell in September of 2009. The only elected official with a lower job approval rating that Governor Wolf is President Barack Obama. Eighty-eight percent of those participating have a negative view of the President’s job performance, 10% view him in a positive light.  U.S. Senator Pat Toomey received a 47% positive job approval against a 28% negative rating.  U.S. Senator Robert P. Casey, Jr. didn’t fare as well, 64% disapprove of the job the senior senator from Pennsylvania is doing, 15% approve.  The business leaders are also not pleased with the job being done by federal fiscal officials.  Forty-four percent disapprove of the job being done by Federal Reserve Board Chairman Janet Yellen, 21% approve.  U.S. Treasury Secretary Jack Lew is viewed negatively by 42%, while 11% approve of his job performance.

Pennsylvania Attorney General Kathleen Kane is under indictment for allegedly leaking secret grand jury information.  Sixty-eight percent disapprove of her performance in office, 8% approve.  However, 43% say she should not resign from office and is innocent until proven guilty.  Forty percent think she should resign and 10% want her to be impeached.

Legislative chambers continue to be viewed negatively by the business owners/CEOs.  Only ten percent have a positive opinion of the job being done by the United States Senate, 15% approve of the job being done by the U.S. House of Representatives.  The state legislature fared better: 31% approve of the job being done by the Pennsylvania Senate, the Pennsylvania House of Representatives earned a 34% job approval rating.

Presidential Race

Business community support for presidential candidates closely mirrored current nationwide polls. Donald Trump leads the pack at 26% followed by Dr. Ben Carson at 23%.  Carly Fiorina registered 7% followed by Ted Cruz at 7% and Scott Walker (who has since exited the race) at 6%.  The rest of the field, including all of the Democratic candidates, scored at 5% or less.

Methodology

The Fall 2015 Keystone Business Climate Survey was conducted electronically between September 14, 2015 and September 21, 2015.  A total of 324 business leaders responded.  Of those 80% are the owner of a business; 14% are the CEO/COO/CFO; 2% a local manager and 1% a state manager.   Twenty-nine percent of the respondents have businesses based in southeastern Pennsylvania, 21% in southcentral Pennsylvania, 17% in southwestern Pennsylvania, 9% in northwestern Pennsylvania, 7% in northeastern Pennsylvania, 5% in the Lehigh Valley, and 5% each in north central Pennsylvania and the Johnstown/Altoona area.  Complete numeric results of the poll are available at www.lincolninstitute.org.

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a comment