Governor Wolf Losing Crisis War

GOVERNOR  WOLF  LOSING  CRISIS  WAR

IS HE WILLING TO FIGHT TO LAST MAN?

Governor Wolf  has finally relented and released the school hostages. He has now allowed funds to be released for schools and some other services. Interestingly, he and his staff have been paid on schedule through this whole ordeal. This could have happened many months ago, as the legislature proposed many fixes to not put stress on schools and other important funding.

The Governor has in effect lost this battle. It was doomed from the beginning, when he believed that he could put political pressure on his adversaries by creating a fiscal crisis. The economic realities are changing and taxpayers are fed up with tax increases everywhere. Politicians of all stripes must adapt by adopting methods of fiscal responsibility to make due with what is currently available. Harrisburg is long overdue for reform. The tendency to start the budget process by deciding how much they would like to spend is the reverse of good management. How about starting out by determining how much money they can expect to receive and then managing accordingly. I am sorry to say, that there is really very little proper management in government. If they don't have enough money, they just raise taxes...which takes more money out the private sector, so there is less to spend and invest in the economy and then they wonder why we have a stagnant economy at all levels.

How about the Governor and the legislature working together to start an economic revolution in government.  They should spend the next year looking at every program and expenditure and scrapping and eliminating inefficient and wasteful endeavors. Does anyone contend that there is no room for things to be eliminated or re-evaluated?  I would expect that they could find several billion dollars in savings. Then look to the future of the state by making it one of the best states in the nation in which to do business and create wealth. This idea of eating the seed corn, which is the norm, will only lead to a stagnant, declining economy.

Pennsylvania is the 10th highest state in taxes - this is not something to be proud of.  It also is the 11th highest in education spending. More spending is not always an indication of success. The pension system is a real crisis that should be a priority for attention. The real solution is to take the money in the fund and distribute to all in the system, which they can roll over into a 401K-like program. The government bodies and the government employees can then contribute a defined amount to their own pension.  I can hear the wailing and gnashing of teeth now, but the pension is now only earning half of what is needed to make it viable. In the next major downturn, which could very well be on the horizon, many states will be in default and the pensions will not get paid.  It is not possible to tax our way out of this crisis.

While I have not seen Governor Wolf's actual future plan for the budget, it seems he is going to attempt to hold some more items hostage. This plan is over, his troops are in retreat, he has grossly miscalculated the situation. His recriminations to the legislature last week did not help; he needs to make a decision to move on or he will end up politically like Custer.