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INSIDER INFO-FEBRUARY 2003 Political VIP Interview Political Analysis and Reports The Four
Corners of Pennsylvania and More |
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Political VIP
Interview Anyone who has spent any time walking the halls of the state
Capitol has heard the name, Steve MacNett, spoken with mixtures of
reverence, respect and fear. Without being elected to any public office himself, MacNett has
held a position of trust and authority in the corridors of power for more
than two decades in his role as senior advisor to the Senate Republican
caucus. His specific title is General Counsel to the Senate Majority
leader or the caucus's top lawyer. But he is more than that. He is the
senate's top staffer. MacNett has served several senators who served in
that floor leader position, the latest being David "Chip" Brightbill of
Lebanon County the past two years. MacNett has seen governors and their
chiefs of staff come and go. He remains master of his domain. We interviewed MacNett for his perspective on Jan. 20, the eve of
Governor Rendell's inauguration as Pennsylvania's 45th governor. This is
what he had to say: INSIDER: At this point, you've gotten some
look at some of Governor Rendell's Cabinet and staff appointments. Any
initial thoughts? MacNett: Right now, we're just
watching it shake out. I was struck that there seemed to be some layering
in of a national political apparatus with some of the appointments such as
McGinty, Oliver and the deputy chief of staff from Maryland.
(Editor's note: the
references are to Kate McGinty, Secretary of Environmental Protection
designee and formerly a senior advisor to President Clinton and Vice
President Al Gore; Rendell Communications Director Ramona Oliver, formerly
holding the same post for the Democratic Governors Association and Rendell
Deputy Chief of Staff Roy Kienitz, formerly the Secretary of Planning for
the State of Maryland.) They are all national Democratic operatives. Now that may be a
natural place for him to draw on, given his travels over the last couple
of years when he was Democratic National Chairman but at the same time it
struck me that he was building in an apparatus to be certain that he kept
track of and kept on the move for whatever future venture he might have.
INSIDER: I take it you're not expecting
this Pennsylvania governor (Rendell) to stop his political climb at
Pennsylvania governor. MacNett: No Pennsylvania governor
plans on stopping at governor. At least no governor who got there by
election (rather than succession). They all at one stage or another,
seriously or a little less seriously, explore the national tickets.
INSIDER: Has Ed Rendell reached out to
your leadership in the Republican Senate? MacNett: Yes, I think there's
been some outreach. I know he and Senate Brightbill (Senate Majority
Leader Chip Brightbill) have had at least one extended conversation and
some other more subject-specific discussions. It's clear that the door is
open. He seems to want to receive input. His transition office has been
open to contact. INSIDER: With the various projections of
the budget deficit, have the Senate Republicans begun to make their own
assessment? MacNett: We've begun a process
but we have some time. Obviously the numbers change every month. We're
looking at the situation and minimally it's going to be at the $650-700
million range. I don't know if we believe that it's going to run to the
kind of numbers that Rendell and some of the others are talking about,
like $1.5 or $2 billion. Those numbers would seem to be unrealistically
large. But it may also be a situation of apples and oranges. I'm talking
about the actual revenue shortfall. Others may be talking about program
overruns or places where they'd like to layer in a new level of funding. I
wouldn't doubt that $1.5 billion would be a real number if you were
funding much in the nature of the Rendell initiatives. INSIDER: Is the fact that Governor Rendell
has appointed some Republicans to his Cabinet, including (former Governor
Schweiker Chief of Staff) David Sanko to PEMA a positive sign?
MacNett: I didn't expect him to
reorganize government along strictly partisan lines. How that really plays
out is what happens at the deputy secretary level, at the chief counsel
level, what happens on the boards and commissions. That's the real test.
INSIDER: But he's mainly installed
Democrats in the positions where real policy is affected, is that
right? MacNett: Yes, there's been some
anxiety about (Education Secretary-designee) Vicki Philips (the former
Lancaster Schools superintendent). Obviously the nomination of (former
Clinton-Gore environmental advisor Kate) McGinty has people talking. There
may be others but those are two big ones. INSIDER: Do you think the confirmation
hearing for those two will be contentious. MacNett: I think they will be
interesting. I think there will be a real effort to explore the range of
the plan (for those two departments). INSIDER: There are very deep philosophical
differences between the Senate Republicans and this governor, not just
partisan politics but deep differences of opinion about how state
government should be run. How will it play out? MacNett: I think we'll find out.
Certainly that potential is there . . . But I think we have to find a way
to work through these issues. With both houses in the opposition party
hands if you were-or maybe the governor's office in the opposition
hands-you can get into a dynamic where you have no achievement, no
progress, no results unless you find a way to work things out. Hey, our
members are result oriented; by and large they are not ideologues. They
have a history of resolving issues, whether it's with (Democrat) Bob Casey
or a governor of our party. One of the things I'm encouraged by is that
Rendell, if anything seems to be results oriented. So I presume we'll find
ways. Obviously there will be some places where there will be some real
differences, perhaps some sharp battles. But nothing is achieved unless
people come together. That kind of structural gridlock that you saw in
Washington in 1995-96 is something that there's no glory in that for the
governor, no glory in that for our members. INSIDER: What do you see as the big issue
in 2003 other than the budget. The medical malpractice situation? MacNett: Obviously, the medical
malpractice thing. It remains at a crisis level, so that is going to be
one. Restructuring of school finances is another. They are by and large
the issues the governor has been talking about. A new state lobbying law
is an issue. The tort reform issue-there's some linkage to medical malpractice-has a fair amount of energy of its own in the business community.
Those are the major starting points. INSIDER: The Senate Republicans did okay
in last fall's elections, despite the threat of a Rendell landslide in the
Philadelphia suburbs. MacNett: All those races are relatively independent these days. The media buy in those competitive races was really high so those candidates were well defined and stood out despite how people in southeastern Pennsylvania voted on Ed Rendell. The kind of numbers Ed Rendell got in Bucks and Montgomery counties goes to show the caliber of the races that Tommy Tomlinson and Rob Wonderling ran to win their Senate seats. They were swimming up streams like salmon. We're pretty proud of them.
Political Analysis and Reports The Capitol is once again atwitter with rumors of House Speaker Matt Ryan's retirement due to the illnesses that Ryan has battled for years, but which have increasingly sidelined him during the last 12 months, including treatment for stomach cancer. Insiders say Ryan wants to return, but has given himself a short time span to determine if it's time for him to go. While many are saddened by the idea of the potential departure of the popular lawmaker-the longest-serving speaker in state history-more are fixated on what will happen next if he does decide to go. Two ideas predominate, each predicated on whether House Majority Leader John Perzel takes a "promotion" to speaker or whether he stays in his current head gladiator role. First, if Perzel would choose to move to speaker, he likely would retain many of his present powers, following the "strong speaker" pattern of the legendary late Jim Manderino of Westmoreland County. If Perzel chooses the speakership, it is possible someone in the GOP caucus could emerge to challenge House Minority Whip Sam Smith, R-Jefferson County, for the majority leadership. Second, if Perzel would choose to remain in his present position of power, there could be an election for speaker, not majority leader. If the election is for majority leader, Smith has a clear advantage on his obvious challengers, most notably House Appropriations Chairman David Argall, R-Schuylkill. But if instead, it's the speakership that is open, other candidates with more elder statesmen or stateswoman profiles will emerge, including Rep. Patricia Vance, R-Silver Spring Township. The biggest losers if Ryan steps down:
If there's such a thing as a Corman Caucus, it may hold the key to Governor Rendell's legislative success or failure The Corman caucus, named for the young state senator from State College, got its name from an off-handed joke by a top lobbyist. But it's no comedy how this group of mostly moderate Republicans might figure into the success or failure of Governor Ed Rendell's reform plans this year. This loose grouping of mostly newer senators includes Senators Charlie Dent (R-Lehigh), Tommy Tomlinson (R-Bucks), Don White (R-Indiana), Mary Jo White (R-Venango), Ted Erickson (R-Delaware), Rob Wonderling (R-Montgomery) and its namesake, Senator Jake Corman (R-Centre). Corman is the son of former state Sen. Doyle Corman who was the longtime holder of the seat until he retired and his son ran. Other than Mary Jo White and Corman, this is a newer group of moderate senators many of whom uttered campaign promises similar to Rendell's, regarding education spending and property tax reform. Sen. Jim Rhoades (R-Schuylkill) while not close to the Corman caucus, is another moderate, pro-education Republican who has his roots as a teacher and school administrator. Like Tomlinson and the more conservative Corman, he has already publicly said that he would vote to increase taxes for educating spending, if Rendell and the Senate GOP can agree on how the money is spent. Corman is at the center of this group partly due to his people skills and a natural ability to lead. Praised by Senate leaders as a good vote-counter with already-good relationships on both sides of the aisle, Corman could end up helping Rendell strike a deal. Two hurdles await any such deal: First, Corman politically and personally, is a lot closer to U.S. Sen. Rick Santorum, the once conservative firebrand, than he is to Ed Rendell, the former two-term mayor of liberal and Democratic Philadelphia. Corman has the nickname Santorum's "Little Brother" because his parents are close to Santorum (dad, Doyle, employed Santorum on his Senate staff in the 1980s and mom, Betsy, helps run the Santorum statewide campaigns) and the younger Corman was on Santorum's payroll for a period. So if Corman ends up being a key player for Rendell's programs, he can expect a fair degree of telephone flack from Santorum. The toughest part for Corman would be the potential of having to vote for a higher personal income tax, which he, Rhoades and Tomlinson all conclude is probably necessary to do property tax reform. So while some moderates believe Corman is a responsible leader who is getting ready for an education-boosting compromise, some conservatives believe he is simply offering a cooperative tone now, only to make his later rejection of Rendell's plan seem more newsworthy. Corman is bright enough to make either of these theories come to pass, but it is unlikely he is intentionally setting Rendell up for failure. At his heart, Corman has a strong conservative ideological core, and it's not certain whether Rendell will bend far enough to bring along the votes of Corman, the Whites and others who might put enough pressure on the Senate leadership to get a bill passed. Governor
Rendell hints at higher taxes in talk to newspaper editors Governor Ed Rendell generally has
good press relations with reporters, but more importantly with their
bosses So it came as no surprise that the newly minted Democratic governor would come into the newspaper crowd and start to drop broad hints about the potential need for a tax increase to make the numbers work in his first budget. We will know for sure on March 4, when Rendell is scheduled to release his first budget to cover the fiscal year from July 1, 2003 to June 30, 2004. To nearly everyone present at the Jan. 28 speech, Rendell appeared to be setting the stage for the introduction of a tax increase both to balance a deficit-ridden state budget and to pay for the education and property tax reform proposals on which the Philadelphian campaigned for governor. Rendell used the phrase, "grim and grimmer" to describe his staff's assessment of the latest budget numbers. "Now don't go writing or saying that I'm going to raise taxes, because I'm not sure yet," Rendell scolded the collective journalists. "I just got here, folks. I inherited this mess." State Sen. Vince Fumo, Rendell's fellow Philadelphia Democrat and head of the Appropriations Committee for the Senate Democrats, didn't mince words like the governor did. He held a news conference Feb. 4 and told reporters, "I see no other way to solve this problem but for a tax hike. This is going to be solved, and it's going to be solved with a tax increase and Republicans are going to vote for it." A new state budget is supposed to be passed by the legal deadline of June 30 but Fumo went so far as to advise his fellow lawmakers not to schedule vacation time or trips in July. The last time there was a large state budget crisis in 1991 a new state spending plan was not passed until early August, weeks after the June 30 deadline. Rendell told the newspaper editors that the deficit could grow as high as $2.3 or $2.4 billion by June 30, the end of the fiscal year. But House Majority Leader John Perzel told the same group a day later that the mess is not that bad. The Northeast Philadelphia Republican claimed the deficit is closer to $600 or $700 million-a gap that he insisted could be closed without raising taxes. Other Republican legislative leaders put the gap at closer to $1.5 billion. Whatever the size of the gap, if taxes have to be raised to close it, Perzel suggested that Republicans, who control both chamber of the Legislature, would be more prone to put up a temporary tax increase, perhaps for one year, rather than establishing new higher levels of taxation. The most likely target for a tax increase would be the state's personal income tax, which at a flat rate of 2.8 percent regardless of income is fairly low by the standards of other northeastern states. While Rendell made a conscious effort during last year's campaign to say he would not take a pledge not to raise taxes, he always followed up that statement by pointing to his record in Philadelphia where he tamed another large structural deficit without raising taxes. By later in his tenure as mayor, Rendell was able to lower taxes five times by small increments. Rendell said that in addition to stopping the red ink, he believes it's time for the state to take economic recovery into its own hands. During the campaign, he said Pennsylvania does far less borrowing than other states such as New York. So he is proposing that the state do more bond financing which, he said, would be leveraged with private investment and federal funding for projects that would provide both construction jobs and long-range permanent jobs. Rendell is proposing that if there are any business tax cuts next year, they should be tax cuts that are specifically linked to job creation. Poll finds
Pennsylvanians concerned about economics and accepting of slots at
racetracks as a short-term fix The first statewide poll taken since Governor Rendell
took office found Pennsylvanians concerned about the state's economy and,
by larger numbers than expected, supporting the extension of gambling to
slot machines at the state's horse racing tracks. The poll of 702 registered Pennsylvania voters was conducted from Jan. 21 to Jan. 23. And while those surveyed seem to know that the state is facing a major budget crisis, they are in no mood for higher taxes, according to the survey conducted by Harrisburg-based Susquehanna Polling and research on behalf of the Lincoln Institute, a conservative state think tank. Perhaps the most surprising finding in the survey was the extent of support for legalized gambling, which Pennsylvanians apparently see as the least harmful way to raise additional state revenue. Sixty-six percent of those polled said they would support slots at the racetracks and an almost equally high number, 60 percent, said they would allow other forms of gambling, such as riverboat casinos. In other findings, Pennsylvanians by an overwhelming margin would like to vote on any increase in school property taxes, they support the enactment of a "Right to Work" act by a nearly two-thirds margin and they are split on the quality of the state's public schools-40 percent calling their schools good while 31 percent said they were mediocre and 16 percent poor. For more information on the poll and the Lincoln Institute go to www.lincolninstitute.org. The Four Corners of Pennsylvania and More Regional political news you can use. Central Pennsylvania Fumo,
who is a self-made millionaire, has purchased a 100-acre farm on the
Susquehanna Three-term
Dauphin County Democratic Commissioner Anthony Petrucci won't seek a
fourth term. He has thrown his support to George Hartwick, the mayor of
blue-collar Steelton, just south of Harrisburg. Also in the Democratic
race is Sandra Mosten, a former Harrisburg city councilwoman and
unsuccessful mayoral candidate. The
Republican field is unclear at this writing. First-term incumbent Lowman
Henry plans to run for re-election but it's uncertain if he'll run with
Jeff Haste, his newly installed fellow Republican commissioner. Haste was
appointed by the county's judges to fill the remaining year of the term of
John Payne. Payne of Hershey resigned in order to take the seat he won
Nov. 5 to the state House of Representatives. Haste irked Henry and some
other factions of the county Republicans when he sided with Petrucci to
appoint himself as chairman of the commissioner board over the more
veteran Henry. It remains to be seen if the rift can be repaired. Southeastern
Pennsylvania Even though
he only started raising money about a month ago, Republican Sam Katz is
Katz,
until the end of last year, was remaining nonpartisan in his role as the
head of Greater Philadelphia First. But that business organization merged
with the Philadelphia Chamber of Commerce and former Governor Mark
Schweiker now heads up the larger organization. Katz lost the 1999 mayor's
race to Street by less than two percentage points. Faced
with a well-financed challenger in Katz, Street's spokesman is arguing
that Katz is unelectable, noting that he lost primaries for mayor and
governor in 1991 and 1994 This
time around Katz has added advertising/public relations maven Brian
Tierney to his team as general manager and recently retired Verizon
Pennsylvania CEO Dan Wheelan as his finance chairman. Southwestern Pennsylvania The stage was set Feb. 1 for a
Democratic unity rally for Dan Onorato in his bid to unseat
For
his part, Roddey made his re-election bid official Jan. 27 at a rally
attended by several Republican luminaries, including U.S. Sens. Arlen
Specter and Rick Santorum as well as U.S. Reps. Melissa Hart and Tim
Murphy. A former businessman and civic activist who won his first bid for
public office in 1999, Roddey defended his record on economic development,
maintaining that the county made some modest strides despite a national
economic downturn that especially affected the county's largest private
employer, US Airways. Roddey also oversaw the implementation of a
controversial property tax reassessment process that has resulted in howls
from a number of county Northeastern
Pennsylvania Mayors of two of the Lehigh Valley's
largest cities, Bethlehem and Easton, have been affected by the election
of Democrat Ed Rendell as governor. Both Democratic Mayor Don Cunningham
of Bethlehem and Republican Mayor Tom Goldsmith of Easton were supporters
of Rendell, who is himself the former mayor of Philadelphia. Cunningham
has already gotten his telephone call from the new governor: he is
Rendell's designee to be state Secretary of the Department of General
Services. Goldsmith is still officially awaiting his call. Cunningham
has three years remaining in his second term as Bethlehem's mayor. For
now, he is not officially resigning as the city's mayor, pending
confirmation of his appointment by the State Senate. Efforts are underway
to speed that process along so that Cunningham can resign before March 4,
the deadline cited by Northampton County for advertising the mayoral
vacancy and having sufficient time, about a week, for prospective
candidates to circulate petitions to get on the May primary ballot. In
Easton, meanwhile, where the mayor's job is on the ballot this year,
Goldsmith has Northwestern
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