Auditor General Jack Wagner has warned against misspending in Pennsylvania’s Department of Public Welfare for years. But the Democrat has concerns about the House Republicans’ plan to cut $470 million dollar from the department’s budget.
The budget passed by the House last month slightly increases DPW spending over last year’s levels, but trims nearly 5$00 million dollars from Governor Corbett’s initial plan. The cut was based on a four percent error rate in department spending.
Even though Wagner’s audits have pointed to a double-digit mistake rate, he said setting a monetary goal for savings isn’t the right approach. “We think there’s some good ideas for annual, sustainable savings. However, when it comes to welfare you just can’t cut the budget,” he said.
“You have to make administrative changes in how the programs operate.”
Wagner’s worried a simple financial savings goal could have unintended consequences. “During this entire discussion, we have never suggested that one single person who deserves to be part of that program be knocked off that program. We simply want the programs run more efficiently. And they have not been run efficiently in recent years,” he said.
Wagner insisted he still “commends” the House GOP budget, but he urged lawmakers to work with the Corbett Administration to ID specific waste and abuse. Corbett’s DPW Secretary, Gary Alexander, has expressed doubt about finding 470 million dollars in savings.
Showing posts with label Jack Wagner. Show all posts
Showing posts with label Jack Wagner. Show all posts
Tuesday, June 7, 2011
Friday, June 3, 2011
PA Surplus and Debate Grows
Pennsylvania’s tax surplus grew by another $34 million dollars in May, and now sits at nearly $540 million. Strong sales and corporate tax revenue came in well over projections, augmenting a deficit in personal income tax returns.
Democratic lawmakers say the increase gives added momentum to their argument for a larger budget.
Governor Corbett and House Republican leaders want to hold the extra cash in reserve, while most Democrats, including the party’s Appropriations Chair, Joe Markosek, have argued for months that it should lessen proposed cuts. He’d use the money for “Education, certainly,” but also, “Long-term care for our frail and chronically ill senior citizens. And certainly additional restoration of the funding cuts for the handicapped population in Pennsylvania.”
Not every Democrat agrees, though. Auditor General Jack Wagner said the Republican plan to put the money in the depleted Rainy Day Fund is the right call, pointing to billions of dollars in debt and overdue bills. “Our commitment – our additional commitment to SERS and PSERS going forward is simply in the next couple years – is in the billions of dollars. The Pennsylvania Employee benefit trust fund is owed two to three billion dollars,” he said, warning other “fiscal unknowns” may rise in the coming year, as well.
Marksosek is confident the surplus will grow even larger, once June revenue comes in. “We still have one month to go, and my econometric staff folks tell me that all expectations, based on past history, etc, is the June is shaping up to be at least a fairly strong month. So I don’t think the $540 million figure will shrink,” he said.
The House passed its budget next week, and the next round of action will come in the Senate. Markosek says he’s been in touch with Senate leaders, but no formal budget negotiations have been scheduled.
Democratic lawmakers say the increase gives added momentum to their argument for a larger budget.
Governor Corbett and House Republican leaders want to hold the extra cash in reserve, while most Democrats, including the party’s Appropriations Chair, Joe Markosek, have argued for months that it should lessen proposed cuts. He’d use the money for “Education, certainly,” but also, “Long-term care for our frail and chronically ill senior citizens. And certainly additional restoration of the funding cuts for the handicapped population in Pennsylvania.”
Not every Democrat agrees, though. Auditor General Jack Wagner said the Republican plan to put the money in the depleted Rainy Day Fund is the right call, pointing to billions of dollars in debt and overdue bills. “Our commitment – our additional commitment to SERS and PSERS going forward is simply in the next couple years – is in the billions of dollars. The Pennsylvania Employee benefit trust fund is owed two to three billion dollars,” he said, warning other “fiscal unknowns” may rise in the coming year, as well.
Marksosek is confident the surplus will grow even larger, once June revenue comes in. “We still have one month to go, and my econometric staff folks tell me that all expectations, based on past history, etc, is the June is shaping up to be at least a fairly strong month. So I don’t think the $540 million figure will shrink,” he said.
The House passed its budget next week, and the next round of action will come in the Senate. Markosek says he’s been in touch with Senate leaders, but no formal budget negotiations have been scheduled.
Thursday, June 2, 2011
Wagner: Use Tobacco Payments for Original Purpose
Pennsylvania Auditor General Jack Wagner says the General Assembly should stop diverting money from a tobacco lawsuit settlement away from health programs.
Wagner held a series of hearings on the use of Tobacco Settlement Act revenue, and he says the public wants it to be used for health-related purposes.
In 2001, tobacco companies were required to pay $350 million in annual compensation for public health problems caused by smoking. Governor Tom Ridge and the legislature decided that money should be used to fund programs for smoking cessation and prevention.
But Wagner says in the past six years, the funds have been put toward gaps in the budget rather than used for their intended purpose. He says smoking cessation and prevention programs have seen funding drop about $35 million per year and should be fully funded.
Wagner says the money could also be used to reinstate adultBasic state health insurance.
“It’s not in existence today; it ended in February of this year,” says Wagner. “We think it should be reinstituted, so that 42,000 Pennsylvanians can get basic health care; so that colon cancer can be detected, breast cancer, prostate cancer; so that these cancers don’t develop into serious health problems and serious public cost issues.”
The use of the settlement funds will be decided in the budget process.
Wagner held a series of hearings on the use of Tobacco Settlement Act revenue, and he says the public wants it to be used for health-related purposes.
In 2001, tobacco companies were required to pay $350 million in annual compensation for public health problems caused by smoking. Governor Tom Ridge and the legislature decided that money should be used to fund programs for smoking cessation and prevention.
But Wagner says in the past six years, the funds have been put toward gaps in the budget rather than used for their intended purpose. He says smoking cessation and prevention programs have seen funding drop about $35 million per year and should be fully funded.
Wagner says the money could also be used to reinstate adultBasic state health insurance.
“It’s not in existence today; it ended in February of this year,” says Wagner. “We think it should be reinstituted, so that 42,000 Pennsylvanians can get basic health care; so that colon cancer can be detected, breast cancer, prostate cancer; so that these cancers don’t develop into serious health problems and serious public cost issues.”
The use of the settlement funds will be decided in the budget process.
Tuesday, May 24, 2011
Audit: Pgh Pension Plan Needs Funding Now
Pennsylvania Auditor General Jack Wagner is releasing an audit of Pittsburgh’s pension plan for police, firefighters, and non-uniformed city workers today.
The document says the plan is only 34% funded, or $650 million short of its total $990 million, as of the last day of 2009.
Wagner says although City Council has already implemented a “bailout plan” that would divert parking tax revenue to the pension fund, that ordinance has not been adopted by the Pittsburgh Parking Authority.
Wagner says the city must boost its total pension assets to the halfway mark before September 1, or the Pennsylvania Municipal Retirement System will likely force the city into making higher yearly payments -- no matter where the money comes from.
“It may be done with parking revenue; it could be done with increased taxes; it could be done by the city cutting services in one area,” says Wagner.
Wagner says in the meantime, the continuing pension gridlock is creating problems.
“The image of Pittsburgh is very important, and the longer this discussion ensues, the more negative impact it has on Pittsburgh in a real and a perceived way,” says Wagner. “In a real way in terms of the bond rating [dropping].”
Wagner says Pittsburgh’s pension fund is one of the worst-off in the state, and funding it to 50% will be only a small step in covering the $650 million deficit.
The document says the plan is only 34% funded, or $650 million short of its total $990 million, as of the last day of 2009.
Wagner says although City Council has already implemented a “bailout plan” that would divert parking tax revenue to the pension fund, that ordinance has not been adopted by the Pittsburgh Parking Authority.
Wagner says the city must boost its total pension assets to the halfway mark before September 1, or the Pennsylvania Municipal Retirement System will likely force the city into making higher yearly payments -- no matter where the money comes from.
“It may be done with parking revenue; it could be done with increased taxes; it could be done by the city cutting services in one area,” says Wagner.
Wagner says in the meantime, the continuing pension gridlock is creating problems.
“The image of Pittsburgh is very important, and the longer this discussion ensues, the more negative impact it has on Pittsburgh in a real and a perceived way,” says Wagner. “In a real way in terms of the bond rating [dropping].”
Wagner says Pittsburgh’s pension fund is one of the worst-off in the state, and funding it to 50% will be only a small step in covering the $650 million deficit.
Monday, April 25, 2011
Tobacco Money at Center of Auditor Hearing
A diabetic calling for better state supported health insurance, a researcher highlighting the need to fight the illnesses caused by tobacco use and a public health advocate looking for more funding for smoking cessation programs were among a long list of individuals giving testimony today at a hearing focused on how to best spend the tobacco settlement money still coming into Pennsylvania.
The hearing in Pittsburgh was convened by State Auditor General Jack Wagner who contends the state legislature and the governor are diverting the $370 million annual payment to Pennsylvania without getting the proper public input. When the fund was first established in 2001, Governor Tom Ridge and the state legislature held public hearings and decided to dedicate all of the funds to health related issues. Percentages were laid out FOR health care, cancer research, senior care, tobacco use cessation efforts and to build a public health endowment fund. In recent years the state legislature has been diverting those funds to the general fund and non-health related causes. A large portion this year will go to an economic development loan fund.
The shift was brought into the spotlight when funding for the adultBasic program was cut. Wagner wants lawmakers to either be put back the funds or hold public hearings on the reallocation. “We again want a public discussion, because your opinion has always been important in terms of the use of public money,” said Wagner.
Last week the state received $370 million from the tobacco settlement fund. Over the next 15 years the payments will slip to an estimated $355 million a year.
About 40,000 Pennsylvanians lost their low cost healthcare in January when the adultBasic program was ended. The state continues to offer the Special Care program but recipients complain it comes with higher costs and fewer benefits. Former adultBasic recipient Cynthia Brazen of Overbrook is 53-years old and has been fighting diabetes for more than 40 years. “I am a responsible citizen, tax paying, working home owner,” said Brazen, “I have checked my options and I have none, therefore I will rely on the charity of doctors, hospitals and pharmaceutical companies and, of course, soon the state of Pennsylvania.” Brazen believes that if she does not get the treatment she needs she will go blind due to complications from her diabetes and will be forced to go on welfare.
Nick Balandiat says he has a hereditary blood condition that requires frequent lab tests and trips to the doctor. After losing adult Basic he bought into Special Care but says he is worried about the limits on office visits and a cap on spending on lab fees. “I just want insurance that is decent that I can afford,” Balandiat told the Auditor General.
Catholic Charities downtown says it has seen a 25% increase in the number of calls it gets from individuals trying to find out if they are eligible for the group’s free health care. They have also seen a 10% increase since January in people coming through their doors for treatment. The Consumer Health Coalition is reporting similar increase in calls for help in finding free and low cost care. “There is no worse job right now than to work on our help line,” said Coalition Executive Director Beth Heeb, “nine times out of ten they can’t help [the caller].” Heeb says the best they can do is send the caller to an already overwhelmed clinic.
United Way of Allegheny County Executive Director Bob Nelkin went before Wagner to express his belief that funding for tobacco use cessation programs must be restored if not increased. When the tobacco fund was first approved more than $51 went to those programs, now, that number is down to $14 million. Nelkin says the money should be seen as an investment in the future that will, “pay off in a big, big way for Pennsylvania taxpayers, and people paying health care premiums.” Nelkin says a recent study by the CDC shows Pennsylvanians spend more than 5 billion dollars a year on tobacco related illnesses.
The hearing in Pittsburgh was convened by State Auditor General Jack Wagner who contends the state legislature and the governor are diverting the $370 million annual payment to Pennsylvania without getting the proper public input. When the fund was first established in 2001, Governor Tom Ridge and the state legislature held public hearings and decided to dedicate all of the funds to health related issues. Percentages were laid out FOR health care, cancer research, senior care, tobacco use cessation efforts and to build a public health endowment fund. In recent years the state legislature has been diverting those funds to the general fund and non-health related causes. A large portion this year will go to an economic development loan fund.
The shift was brought into the spotlight when funding for the adultBasic program was cut. Wagner wants lawmakers to either be put back the funds or hold public hearings on the reallocation. “We again want a public discussion, because your opinion has always been important in terms of the use of public money,” said Wagner.
Last week the state received $370 million from the tobacco settlement fund. Over the next 15 years the payments will slip to an estimated $355 million a year.
About 40,000 Pennsylvanians lost their low cost healthcare in January when the adultBasic program was ended. The state continues to offer the Special Care program but recipients complain it comes with higher costs and fewer benefits. Former adultBasic recipient Cynthia Brazen of Overbrook is 53-years old and has been fighting diabetes for more than 40 years. “I am a responsible citizen, tax paying, working home owner,” said Brazen, “I have checked my options and I have none, therefore I will rely on the charity of doctors, hospitals and pharmaceutical companies and, of course, soon the state of Pennsylvania.” Brazen believes that if she does not get the treatment she needs she will go blind due to complications from her diabetes and will be forced to go on welfare.
Nick Balandiat says he has a hereditary blood condition that requires frequent lab tests and trips to the doctor. After losing adult Basic he bought into Special Care but says he is worried about the limits on office visits and a cap on spending on lab fees. “I just want insurance that is decent that I can afford,” Balandiat told the Auditor General.
Catholic Charities downtown says it has seen a 25% increase in the number of calls it gets from individuals trying to find out if they are eligible for the group’s free health care. They have also seen a 10% increase since January in people coming through their doors for treatment. The Consumer Health Coalition is reporting similar increase in calls for help in finding free and low cost care. “There is no worse job right now than to work on our help line,” said Coalition Executive Director Beth Heeb, “nine times out of ten they can’t help [the caller].” Heeb says the best they can do is send the caller to an already overwhelmed clinic.
United Way of Allegheny County Executive Director Bob Nelkin went before Wagner to express his belief that funding for tobacco use cessation programs must be restored if not increased. When the tobacco fund was first approved more than $51 went to those programs, now, that number is down to $14 million. Nelkin says the money should be seen as an investment in the future that will, “pay off in a big, big way for Pennsylvania taxpayers, and people paying health care premiums.” Nelkin says a recent study by the CDC shows Pennsylvanians spend more than 5 billion dollars a year on tobacco related illnesses.
Thursday, March 3, 2011
PA Auditor: Stop Raiding Tobacco Funds
A Special report out of the Pennsylvania Auditor General’s office today outlines how state lawmakers have diverted $1.3 billion in Tobacco Settlement funds in recent years without asking for any public input. In 2001 the General Assembly mandated that annual tobacco settlement payments be divided by set percentages among several accounts. Eight percent was to be deposited to an endowment account for the future, 30 percent for adultBasic and Medicaid for workers with disabilities, 18 percent for health research, 13 percent for home and community-based services for the elderly, 12 percent for tobacco prevention and cessation programs, 10 percent to reimburse hospitals for uncompensated care, eight percent to expand the PACENET prescription drug program, and one percent for cancer research. Wagner says in recent years those ratios have been ignored.
Wagner says the legislature has diverted funds to pay for Medicaid and to prop up the general fund. He says the endowment that was to provide for health needs in the future will be completely drained later this year.
Since 1998 the state has received $4.4 Billion in tobacco settlement funds. Payments to the state over the next seven years are expected to average $370 million. Between 2019 and 2025 they are expected to average $355 million a year.
Wagner is calling on the state legislature and the governor to immediately use all incoming funds to reopen the low income health insurance program adultBasic and then hold a series of public hearings on the allocation of future funds. “Things may have changed over time and maybe more funds should be directed to one program or the other,” says Wagner “but those decisions should be made in a public process, with public input. Something that has not happened since the inception of tobacco settlement funds.”
Wagner says, “It’s about time there is a little bit of sunshine into this process.” He says it is not too late to rebuild the endowment fund and it is not too late to save adultBasic for the more than 40,000 individuals who lost coverage this week.
Wagner says the legislature has diverted funds to pay for Medicaid and to prop up the general fund. He says the endowment that was to provide for health needs in the future will be completely drained later this year.
Since 1998 the state has received $4.4 Billion in tobacco settlement funds. Payments to the state over the next seven years are expected to average $370 million. Between 2019 and 2025 they are expected to average $355 million a year.
Wagner is calling on the state legislature and the governor to immediately use all incoming funds to reopen the low income health insurance program adultBasic and then hold a series of public hearings on the allocation of future funds. “Things may have changed over time and maybe more funds should be directed to one program or the other,” says Wagner “but those decisions should be made in a public process, with public input. Something that has not happened since the inception of tobacco settlement funds.”
Wagner says, “It’s about time there is a little bit of sunshine into this process.” He says it is not too late to rebuild the endowment fund and it is not too late to save adultBasic for the more than 40,000 individuals who lost coverage this week.
Thursday, February 10, 2011
Call for Change from Equalization Board
Pennsylvania State Auditor General, Jack Wagner, said that his auditors found significant flaws from the State Tax Equalization Board's revised property market values for 2008.
The State Tax Equalization Board (STEB) was formed to balance disparities in county property market assessments. Because counties reassess market values themselves, some not since 1986, STEB yearly calculates county market values. Those values are then used by the Department of Education and other state agencies to distribute over nine billion dollars in aid.
Auditors reviewed records from a sample 70 municipalities using the same information and resources STEB has access to and found a 65% error rate. Among the errors were 21 municipalities were credited with sales of properties that did not exist, and market value calculations for 15 municipalities used incorrect property sales ratios.
Wagner says that because of human error combined with a flawed computer system county property market values increased in some cases, leading to increased taxes in some municipalities. Because school districts rely on the funding that comes from STEB reviews, if property values increase funding to districts decreases. This could cause municipalities to raise taxes to make up for the loss.
Wagner says that even though STEB tried to fix the problems that occurred in 2008 and attempted to revamp the computer system, he believes that not all of the mistakes were solved. "I also call on STEB to immediately, and I repeat immediately, implement all of the recommendations contained in our audit. If they don't, STEB should be abolished and its responsibilities should be given to another state agency, such as the Department of Revenue."
STEB will install a new system in June of 2011, but Wagner says that they still need to go back to redo the 2008 and other reports because it effects the calculations for future reports.
The State Tax Equalization Board (STEB) was formed to balance disparities in county property market assessments. Because counties reassess market values themselves, some not since 1986, STEB yearly calculates county market values. Those values are then used by the Department of Education and other state agencies to distribute over nine billion dollars in aid.
Auditors reviewed records from a sample 70 municipalities using the same information and resources STEB has access to and found a 65% error rate. Among the errors were 21 municipalities were credited with sales of properties that did not exist, and market value calculations for 15 municipalities used incorrect property sales ratios.
Wagner says that because of human error combined with a flawed computer system county property market values increased in some cases, leading to increased taxes in some municipalities. Because school districts rely on the funding that comes from STEB reviews, if property values increase funding to districts decreases. This could cause municipalities to raise taxes to make up for the loss.
Wagner says that even though STEB tried to fix the problems that occurred in 2008 and attempted to revamp the computer system, he believes that not all of the mistakes were solved. "I also call on STEB to immediately, and I repeat immediately, implement all of the recommendations contained in our audit. If they don't, STEB should be abolished and its responsibilities should be given to another state agency, such as the Department of Revenue."
STEB will install a new system in June of 2011, but Wagner says that they still need to go back to redo the 2008 and other reports because it effects the calculations for future reports.
Wednesday, December 22, 2010
Wagner: Keep Turnpike Toll Notifications
Pennsylvania Auditor General Jack Wagner says the Turnpike Commission’s plan to stop printing toll amounts on tickets should be reversed.
Wagner says because tolls will increase 10% on January 1, removing the prices from the tickets on January 2 is dishonest to the public.
Wagner says drivers also wouldn’t know if a tollbooth operator was charging them too much or too little for their trip, and tollbooth transactions would take longer and increase Turnpike congestion. He adds that the tickets themselves would still need to be printed, so tollbooth operators know how much to charge.
The Auditor General wrote to the Turnpike Commission, saying the $100,000 it can save each year is not enough to justify the confusion and lack of transparency caused by omitting the prices.
However, Wagner says he received an “encouraging” email from the Commission saying it would probably nix the plan to stop printing prices. He says he is still waiting for a formal reply.
Thursday, December 16, 2010
PA Auditor Finds Gaming Board Problems
Pennsylvania’s fiscal watchdog says the Pennsylvania Gaming Control Board is in violation of the state’s Sunshine Act. Auditor General Jack Wagner says the board failed to issue the proper approvals for $7 million in contracts for legal and other professional services.
Wagner says of the 23 contracts he audited, 19 of them were not awarded through competitive sealed bids, were not emergency contracts and often were not the subject of board votes during public meetings. "The single most important mission of the Gaming Control Board is to reassure the public that the gaming industry in Pennsylvania is being professionally run and to protect its integrity," Wagner says. He says for many there is a perception that gaming and criminal activity go hand in hand so the board should “bend over backwards” to make sure there is no appearance of impropriety.
The audit found that the board's regular meeting minutes gave no sign as to whether the members knew about the details of the contracts, or how the board may or may not have been involved in the decision-making and deliberations. "The absence of documentation to support claims made about selected vendors is a serious problem,” says Wagner, "Without such documentation, the board cannot assure the public, the General Assembly, gaming entities or other service providers, that it selected the service providers in the commonwealth's best interest." He says if the board is not getting the best deal it means the property owners of Pennsylvania are not getting the highest rate of tax relief possible.
The audit also found questionable activity when it comes to travel expense and miscellaneous purchases. The audit found “Governing board members and some top staff unnecessarily claimed meal reimbursements at two and one-half times more than the state's standard reimbursement rate… Four governing board members and a staff executive spent at least $33,000 for a trip to Rome… Governing board members did not justify their stays at expensive hotels, and received reimbursements for rooms of guests who traveled with the Gaming officials.” The report goes on to say, “Auditors found that 39 of 135, or 28.8 percent, of meal vouchers were submitted for reimbursements at the maximum enhanced rate that was as high as $152.50, compared with the maximum standard rate of $61.” Wagner says there is no way to match the claims with the actual spending because the board did not require receipts.
Wagner has turned the audit over to the Attorney General’s office for review and has called on the board to change its rules and practices.
UPDATED 12/17/10
Gaming Board Spokesperson Doug Harbach says, "We take the Auditor General’s findings on our procurement seriously. We’re practical. In the future we’re looking at approving all contracts with a public vote. This is simply a difference of opinion on how we conduct our contracting and how the Auditor General believes it should be done."
Wagner says of the 23 contracts he audited, 19 of them were not awarded through competitive sealed bids, were not emergency contracts and often were not the subject of board votes during public meetings. "The single most important mission of the Gaming Control Board is to reassure the public that the gaming industry in Pennsylvania is being professionally run and to protect its integrity," Wagner says. He says for many there is a perception that gaming and criminal activity go hand in hand so the board should “bend over backwards” to make sure there is no appearance of impropriety.
The audit found that the board's regular meeting minutes gave no sign as to whether the members knew about the details of the contracts, or how the board may or may not have been involved in the decision-making and deliberations. "The absence of documentation to support claims made about selected vendors is a serious problem,” says Wagner, "Without such documentation, the board cannot assure the public, the General Assembly, gaming entities or other service providers, that it selected the service providers in the commonwealth's best interest." He says if the board is not getting the best deal it means the property owners of Pennsylvania are not getting the highest rate of tax relief possible.
The audit also found questionable activity when it comes to travel expense and miscellaneous purchases. The audit found “Governing board members and some top staff unnecessarily claimed meal reimbursements at two and one-half times more than the state's standard reimbursement rate… Four governing board members and a staff executive spent at least $33,000 for a trip to Rome… Governing board members did not justify their stays at expensive hotels, and received reimbursements for rooms of guests who traveled with the Gaming officials.” The report goes on to say, “Auditors found that 39 of 135, or 28.8 percent, of meal vouchers were submitted for reimbursements at the maximum enhanced rate that was as high as $152.50, compared with the maximum standard rate of $61.” Wagner says there is no way to match the claims with the actual spending because the board did not require receipts.
Wagner has turned the audit over to the Attorney General’s office for review and has called on the board to change its rules and practices.
UPDATED 12/17/10
Gaming Board Spokesperson Doug Harbach says, "We take the Auditor General’s findings on our procurement seriously. We’re practical. In the future we’re looking at approving all contracts with a public vote. This is simply a difference of opinion on how we conduct our contracting and how the Auditor General believes it should be done."
Thursday, December 9, 2010
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.”
Thursday, December 2, 2010
Wagner: Billion $ Bond Sale "Inappropriate"
Two top Democrats may be preventing Pennsylvania Governor Ed Rendell from issuing a billion-dollar bond sale during his final days in office.
The governor needs approval from either the Auditor General or Treasurer to issue a bond offering, but Democrat Jack Wagner says he won’t sign off on Rendell’s proposed billion dollar sale.
The Auditor General says the issue is “inappropriate” in the final days of Rendell’s tenure.
"Taking on an additional one billion in debt means for the next 20 years we will have to pay an annual debt service of approximately 82 million dollars a year, beginning next year – 2011. That’s another 82 million added on to the deficit that’s projected to be 4 to 5 billion dollars."
Rendell’s spokesman, Gary Tuma, says Pennsylvania needs the bonds, because most of the money will go toward construction projects already underway....
"We have little choice but to raise this money. If we don’t fund these projects, construction will stop, jobs will be lost. And in many cases, the builders, the contractors, the developers, could have grounds to sue the commonwealth."
Treasurer Rob McCord, another Democrat, hasn’t decided whether or not to approve the bonds.
He’s sent a letter to Governor-elect Tom Corbett asking for the Republican’s input. A Corbett spokesman says McCord will get a response later this week.
The governor needs approval from either the Auditor General or Treasurer to issue a bond offering, but Democrat Jack Wagner says he won’t sign off on Rendell’s proposed billion dollar sale.
The Auditor General says the issue is “inappropriate” in the final days of Rendell’s tenure.
"Taking on an additional one billion in debt means for the next 20 years we will have to pay an annual debt service of approximately 82 million dollars a year, beginning next year – 2011. That’s another 82 million added on to the deficit that’s projected to be 4 to 5 billion dollars."
Rendell’s spokesman, Gary Tuma, says Pennsylvania needs the bonds, because most of the money will go toward construction projects already underway....
"We have little choice but to raise this money. If we don’t fund these projects, construction will stop, jobs will be lost. And in many cases, the builders, the contractors, the developers, could have grounds to sue the commonwealth."
Treasurer Rob McCord, another Democrat, hasn’t decided whether or not to approve the bonds.
He’s sent a letter to Governor-elect Tom Corbett asking for the Republican’s input. A Corbett spokesman says McCord will get a response later this week.
Wednesday, November 10, 2010
Auditor General: Waste in DPW Medicaid Payments
With the incoming administration open to his ideas, Auditor General Jack Wagner is laying out ways he thinks Pennsylvania can save money and bridge a likely multi-billion dollar deficit next year.
Governor-elect Tom Corbett is a Republican and Wagner is a Democrat, but again and again during the campaign, Corbett said he’d look at Wagner’s audits for ways to save money.
The Auditor General says he believes the Department of Public Welfare (DPW) is wasting 15 percent of the monthly payments it makes to healthcare providers on behalf of Medicaid patients, by using out-of-date information.
"If, in fact, their status changes and there’s no notification or use of data to update the change in status, the managed care organization continues to receive the monthly payment for months or for years."
Wagner says DPW typically only updates information once a year. He says relevant data can be refreshed quarterly or even monthly.
However, a DPW spokesman tells the Harrisburg Patriot-News federal regulations restrict how often state officials are able to update their information about Medicaid patients.
Wagner stresses he’s not talking about money going directly to patients.
"90 percent of the people receiving medical assistance are getting that not through a fee for service, when they show up at a doctor or hospital and there’s a direct reimbursement. It is through a managed care organization and a monthly capitation payment."
The Auditor General points out a ten percent reduction in Medicaid payments could save more than 400 million dollars.
Governor-elect Tom Corbett is a Republican and Wagner is a Democrat, but again and again during the campaign, Corbett said he’d look at Wagner’s audits for ways to save money.
The Auditor General says he believes the Department of Public Welfare (DPW) is wasting 15 percent of the monthly payments it makes to healthcare providers on behalf of Medicaid patients, by using out-of-date information.
"If, in fact, their status changes and there’s no notification or use of data to update the change in status, the managed care organization continues to receive the monthly payment for months or for years."
Wagner says DPW typically only updates information once a year. He says relevant data can be refreshed quarterly or even monthly.
However, a DPW spokesman tells the Harrisburg Patriot-News federal regulations restrict how often state officials are able to update their information about Medicaid patients.
Wagner stresses he’s not talking about money going directly to patients.
"90 percent of the people receiving medical assistance are getting that not through a fee for service, when they show up at a doctor or hospital and there’s a direct reimbursement. It is through a managed care organization and a monthly capitation payment."
The Auditor General points out a ten percent reduction in Medicaid payments could save more than 400 million dollars.
Friday, October 29, 2010
Historic Artifacts Missing
Auditor General Jack Wagner audited the 23 locations that house Pennsylvania’s historic artifacts and found at least 1800 missing or unaccounted for. He says the audit shows lax oversight that demonstrates the need for a complete inventory and upgraded barcode system.
Now that the Ft. Pitt Museum is being managed by the Senator John Heinz History Center, Wagner says its artifacts are in good hands, but the other venues need improvement to safeguard the state’s historic treasures that are of such great national significance: the signing of the Declaration of Independence, the battle of Gettysburg, etc.
Wagner says the Pennsylvania Historical and Museum Commission’s budget has been cut drastically over the last four years, and this audit should say to the governor and future governor and legislature that a new security system must be given priority for the state’s valuable historic resources.
Now that the Ft. Pitt Museum is being managed by the Senator John Heinz History Center, Wagner says its artifacts are in good hands, but the other venues need improvement to safeguard the state’s historic treasures that are of such great national significance: the signing of the Declaration of Independence, the battle of Gettysburg, etc.
Wagner says the Pennsylvania Historical and Museum Commission’s budget has been cut drastically over the last four years, and this audit should say to the governor and future governor and legislature that a new security system must be given priority for the state’s valuable historic resources.
Tuesday, July 27, 2010
Wagner: Educate Public on Electric Deregulation
Pennsylvania Auditor General Jack Wagner says the state’s Public Utility Commission (PUC) and electric utility companies should step up efforts to educate the public on the effects of deregulation.
Since 1997, rate caps have prevented electricity suppliers from raising their prices beyond certain levels. Rate caps have since been lifted gradually to ease the state into the competitive electricity market.
Wagner says while 40% of Pennsylvanians have already seen their providers’ rate caps expire, the remaining 60% won’t have their rates uncapped until January 1. Wagner says in areas where rate caps have already expired, prices have risen an average of 25%, with increases ranging from zero to 70%.
Though the PUC has already held some town hall meetings on the issue, Wagner says more should be done to inform consumers about these likely increases.
The Auditor General says consumers can shop the market, but it takes six to eight weeks to switch from one provider to the next. Wagner urges Pennsylvanians to call the PUC or their local electric supplier to find out more. The Public Utility Commission website can be found here.
Since 1997, rate caps have prevented electricity suppliers from raising their prices beyond certain levels. Rate caps have since been lifted gradually to ease the state into the competitive electricity market.
Wagner says while 40% of Pennsylvanians have already seen their providers’ rate caps expire, the remaining 60% won’t have their rates uncapped until January 1. Wagner says in areas where rate caps have already expired, prices have risen an average of 25%, with increases ranging from zero to 70%.
Though the PUC has already held some town hall meetings on the issue, Wagner says more should be done to inform consumers about these likely increases.
The Auditor General says consumers can shop the market, but it takes six to eight weeks to switch from one provider to the next. Wagner urges Pennsylvanians to call the PUC or their local electric supplier to find out more. The Public Utility Commission website can be found here.
Wednesday, June 23, 2010
Wagner: Better Photos of Offenders Needed
Auditor General Jack Wagner says Pennsylvania’s Megan’s Law website needs to become more user-friendly.
Wagner’s special report gives the Megan’s Law website, which is operated by the State Police, a C minus.
The Auditor General says the site’s search engine needs to allow more flexibility, so misspellings and typos don’t prevent people from accessing needed information.
He’s also calling for higher-quality photographs of offenders.
"You see many examples in this report of sex offender photographs that are grainy, that are blurry. That are too light, that are too dark. The offender’s eyes are closed, offenders are wearing hats. You really can’t identify."
Wagner says the website should have multiple color photographs including profile views, of each offender, that include the date in which the photograph was taken.
Wagner’s report also recommends incorporating mapping software into the website, so users can pinpoint the exact location of sex offenders’ homes.
The State Police did not respond to calls for comment.
In a letter to the Auditor General’s office, a State Police official says the organization is working on including mapping features, but the effort has been held up by budgetary restraints.
Wagner’s special report gives the Megan’s Law website, which is operated by the State Police, a C minus.
The Auditor General says the site’s search engine needs to allow more flexibility, so misspellings and typos don’t prevent people from accessing needed information.
He’s also calling for higher-quality photographs of offenders.
"You see many examples in this report of sex offender photographs that are grainy, that are blurry. That are too light, that are too dark. The offender’s eyes are closed, offenders are wearing hats. You really can’t identify."
Wagner says the website should have multiple color photographs including profile views, of each offender, that include the date in which the photograph was taken.
Wagner’s report also recommends incorporating mapping software into the website, so users can pinpoint the exact location of sex offenders’ homes.
The State Police did not respond to calls for comment.
In a letter to the Auditor General’s office, a State Police official says the organization is working on including mapping features, but the effort has been held up by budgetary restraints.
Monday, May 17, 2010
Onorato Holds Lead Heading To Primary
Allegheny County Executive Dan Onorato says he’s got the best executive track record of the Democrats running for governor.
He gave a Steelton, Dauphin County crowd a second reason to support him, during a Friday campaign stop.
"There’s only one of us running out of the six who has nothing to do with Harrisburg, and that’s me. I’m an outsider. Every one of those candidates running for governor are part of the problem."
One of Onorato’s opponents, State Senator Anthony Williams of Philadelphia, may have gotten a boost from Governor Rendell in the days leading up to the primary.
Rendell says he’s remaining neutral, but he heaped praise on Williams at a Philadelphia press conference, calling the senator “visionary” and “innovative.”
"He has earned the support of people in Philadelphia, and throughout the entire southeast. And for that matter, throughout the state. Because of the innovative campaign where he’s really talked about issues and change."
According to the final Quinnipiac poll released today, Onorato remains far ahead of the field for the Democratic gubernatorial nomination with 39 percent, more than his three major competitors combined, although 31 percent of voters remains undecided.
Among the likely voters surveyed, Williams received 11% support, Jack Wagner 10% and Joe Hoeffel 9%.
He gave a Steelton, Dauphin County crowd a second reason to support him, during a Friday campaign stop.
"There’s only one of us running out of the six who has nothing to do with Harrisburg, and that’s me. I’m an outsider. Every one of those candidates running for governor are part of the problem."
One of Onorato’s opponents, State Senator Anthony Williams of Philadelphia, may have gotten a boost from Governor Rendell in the days leading up to the primary.
Rendell says he’s remaining neutral, but he heaped praise on Williams at a Philadelphia press conference, calling the senator “visionary” and “innovative.”
"He has earned the support of people in Philadelphia, and throughout the entire southeast. And for that matter, throughout the state. Because of the innovative campaign where he’s really talked about issues and change."
According to the final Quinnipiac poll released today, Onorato remains far ahead of the field for the Democratic gubernatorial nomination with 39 percent, more than his three major competitors combined, although 31 percent of voters remains undecided.
Among the likely voters surveyed, Williams received 11% support, Jack Wagner 10% and Joe Hoeffel 9%.
Tuesday, May 11, 2010
Interview With Candidate Jack Wagner
The Pennsylvania Primary is one week from today. There are four Democrats and 2 Republicans seeking their parties’ respective nominations in the gubernatorial primary.
This week we are featuring one-on-one interviews with each of the candidates.
Jack Wagner is the only one of the Democratic candidates to hold a statewide elected office. He’s serving his second term as Pennsylvania Auditor General. Prior to that he was a member of the State Senate and before that, he served on Pittsburgh City Council.
He spoke with DUQ’s Scott Detrow.
Listen to the interview.
This week we are featuring one-on-one interviews with each of the candidates.
Jack Wagner is the only one of the Democratic candidates to hold a statewide elected office. He’s serving his second term as Pennsylvania Auditor General. Prior to that he was a member of the State Senate and before that, he served on Pittsburgh City Council.
He spoke with DUQ’s Scott Detrow.
Listen to the interview.
Thursday, May 6, 2010
Negative Ads Increasing In Dem Gubernatorial Primary
As polls show Allegheny County Executive Dan Onorato moving away from the pack, his opponents in the Democratic gubernatorial primary are sharpening their attacks against the frontrunner. The latest Muhlenberg College tracking poll gives Onorato a 21-point lead over his closest challenger, Joe Hoeffel, who registered just 11 percent support.
Anthony Williams and Jack Wagner are in single digits.
The other three candidates have begun attacking Onorato by saying he’s overstating his track record in Allegheny County.
This week saw the first round of negative ads in the Democratic primary.
Tony Williams criticized Onorato for inflating his economic record, and Joe Hoeffel began airing a commercial charging the county executive with “flip flopping” on abortion.
Jack Wagner joined in the chorus during a Harrisburg event.
"I know what’s going on in Allegheny County. And if you look at Allegheny County from January 04 to March ’10, there are 6,100 less jobs. They are the facts. And they should be reported accurately."
Onorato has argued the county’s unemployment rate has stayed below the state average.
Wagner also pointed out Onorato has overseen tax increases, including a controversial drink levy.
The latest Muhlenberg College tracking poll gives Onorato a 21-point lead over his closest challenger. Poll director Chris Borick says the other three Democrats are trying to bring Onorato back to the pack – though he notes that will be tough to do, with less than two weeks to go before the primary.
"And I think the ads that, in particular, Williams has put out, and where he’s targeting those, are aimed directly at bringing Onorato’s numbers down. At the same time they hope their numbers will increase as election day approaches."
Borick says Onorato’s support is soft – but he’s still built up a substantial lead.
Anthony Williams and Jack Wagner are in single digits.
The other three candidates have begun attacking Onorato by saying he’s overstating his track record in Allegheny County.
This week saw the first round of negative ads in the Democratic primary.
Tony Williams criticized Onorato for inflating his economic record, and Joe Hoeffel began airing a commercial charging the county executive with “flip flopping” on abortion.
Jack Wagner joined in the chorus during a Harrisburg event.
"I know what’s going on in Allegheny County. And if you look at Allegheny County from January 04 to March ’10, there are 6,100 less jobs. They are the facts. And they should be reported accurately."
Onorato has argued the county’s unemployment rate has stayed below the state average.
Wagner also pointed out Onorato has overseen tax increases, including a controversial drink levy.
The latest Muhlenberg College tracking poll gives Onorato a 21-point lead over his closest challenger. Poll director Chris Borick says the other three Democrats are trying to bring Onorato back to the pack – though he notes that will be tough to do, with less than two weeks to go before the primary.
"And I think the ads that, in particular, Williams has put out, and where he’s targeting those, are aimed directly at bringing Onorato’s numbers down. At the same time they hope their numbers will increase as election day approaches."
Borick says Onorato’s support is soft – but he’s still built up a substantial lead.
Tuesday, May 4, 2010
Onorato Widens Lead, Specter Margin Shrinking
Two weeks before the Pennsylvania Primary, a new Quinnipiac University poll was released today amid heavy TV advertising.
The survey of likely primary voters shows that Allegheny County Executive Dan Onorato is widening his lead in the race for the Democratic gubernatorial nomination. In the four-way race, Onorato received 36% support....up from 20% a month ago. Montgomery County Commissioner Joe Hoeffel received 9% and Auditor General Jack Wagner and State Senator Anthony Williams 8% apiece. 37% of those surveyed are still undecided.
Peter Brown, assistant director of the Quinnipiac Polling Institute, says in the Senate Democratic Primary, 5-term incumbent Arlen Specter leads Congressman Joe Sestak 47% to 39%. A month ago, Specter led 53% to 32%.
"The Senate race is closing and could be headed for a close finish."
Brown says the narrowing of the Specter/Sestak race is confirmed by other factors.
The narrowing of the Specter/Sestak race is confirmed by other measures as well:
* Democrats trust Specter more than Sestak to do what he says he will do 42 - 31 percent, compared to 43 - 26 percent April 7;
* Voters give Specter a 57 - 31 percent favorability, compared to 60 - 26 percent;
* Sestak gets a 43 - 11percent favorability, compared to 33 - 6 percent.
However, Democrats say 60 - 23 percent that Specter is more likely to win in November.
The survey of likely primary voters shows that Allegheny County Executive Dan Onorato is widening his lead in the race for the Democratic gubernatorial nomination. In the four-way race, Onorato received 36% support....up from 20% a month ago. Montgomery County Commissioner Joe Hoeffel received 9% and Auditor General Jack Wagner and State Senator Anthony Williams 8% apiece. 37% of those surveyed are still undecided.
Peter Brown, assistant director of the Quinnipiac Polling Institute, says in the Senate Democratic Primary, 5-term incumbent Arlen Specter leads Congressman Joe Sestak 47% to 39%. A month ago, Specter led 53% to 32%.
"The Senate race is closing and could be headed for a close finish."
Brown says the narrowing of the Specter/Sestak race is confirmed by other factors.
The narrowing of the Specter/Sestak race is confirmed by other measures as well:
* Democrats trust Specter more than Sestak to do what he says he will do 42 - 31 percent, compared to 43 - 26 percent April 7;
* Voters give Specter a 57 - 31 percent favorability, compared to 60 - 26 percent;
* Sestak gets a 43 - 11percent favorability, compared to 33 - 6 percent.
However, Democrats say 60 - 23 percent that Specter is more likely to win in November.
Monday, May 3, 2010
Gun Control Group Grades Candidates
Officials with the advocacy group CeaseFirePA say they're pleased with the Democratic gubernatorial candidates' support for gun control measures.
Joe Grace, the executive director of CeaseFirePA, says all four Democratic candidates supported a majority of the 18 reform issues they were asked about in the questionnaire.
"Two candidates are from western Pennsylvania, where it's particularly said that you can 't ever talk about gun violence prevention. And they are Jack Wagner and Dan Onorato. Both of those candidates support a majority of reforms proposed by CeasefirePA."
Those reforms include increasing penalties for the illegal possession of a handgun, requiring gun owners to report lost or stolen firearms, and banning assault weapons.
The group graded the candidates on their support for gun issues.
Joe Hoeffel received an A, and Anthony Williams was given an A-.
Dan Onorato got a B+, while Jack Wagner received a C+.
Republican Tom Corbett was given an F, since he didn't fill out the survey. President Phil Goldsmith says he's disappointed Corbett didn't respond to the questionnaire.
"And frankly, I think it's inexcusable that here, the state chief law enforcement officer - obviously a leading candidate for governor, basically was not willing to share his views with the people."
Corbett's GOP rival, Sam Rohrer, didn't do much better, in CeasefirePA's minds - he disagrees with them on every issue, and was given a D.
Joe Grace, the executive director of CeaseFirePA, says all four Democratic candidates supported a majority of the 18 reform issues they were asked about in the questionnaire.
"Two candidates are from western Pennsylvania, where it's particularly said that you can 't ever talk about gun violence prevention. And they are Jack Wagner and Dan Onorato. Both of those candidates support a majority of reforms proposed by CeasefirePA."
Those reforms include increasing penalties for the illegal possession of a handgun, requiring gun owners to report lost or stolen firearms, and banning assault weapons.
The group graded the candidates on their support for gun issues.
Joe Hoeffel received an A, and Anthony Williams was given an A-.
Dan Onorato got a B+, while Jack Wagner received a C+.
Republican Tom Corbett was given an F, since he didn't fill out the survey. President Phil Goldsmith says he's disappointed Corbett didn't respond to the questionnaire.
"And frankly, I think it's inexcusable that here, the state chief law enforcement officer - obviously a leading candidate for governor, basically was not willing to share his views with the people."
Corbett's GOP rival, Sam Rohrer, didn't do much better, in CeasefirePA's minds - he disagrees with them on every issue, and was given a D.
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