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INSIDER INFO -- JUNE 2009
Budget Deadline Near
Another Democrat out
Mayor’s Waiting Room
Specter slips
Four Corners of Pennsylvania and more
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Budget Deadline Near
The battle lines for the state budget have been set for months but with two polar viewpoints a compromise by June 30th appears impossible
Harrisburg – Five days to go and there is no solution in sight.
That about sums up the situation regarding the state’s 2009 -2010 spending plan which currently has a $3.2 billion deficit because of declining state tax revenues due to the recession.
So far, Rendell has been met by stone wall opposition from Republicans and resistance even some of his own Democrats, especially a “Blue Dog” caucus of 20 conservative House Democrats from Western Pennsylvania.
Rendell is proposing that the tax sunset after three years, meaning that if would revert from 3.57 percent back to the current rate of 3.07 percent at the end of three years. By then, the state should be out of the recession and well on its way to financial recovery and growth, the governor said.
Appearing on a public television show about the budget, Rendell said the choice for lawmakers is basic: Either pass his proposed personal income tax increase or pass the buck to county governments and school districts which will have to levy higher property taxes on everyone, including senior citizens, to compensate for reduced state funding.
“You’re basically saying that they are being cowardly,” asked hostess Nell Abom of WITF-TV, Harrisburg.
Rendell didn’t want to go that far but he went on to say that if lawmakers don’t accept his challenge they are “basically passing the buck” to other taxing entities further down the line.
Scarnati said that Rendell was using scare tactics to get votes for his tax increase, which he said is an even worse idea during an economic crisis. He noted that many small businesses pay their tax obligation through the personal income tax and said that when the state has raised taxes at the expense of business in previous economic downturns, the lack of stability has hurt the state in attracting new business and jobs.
Of Rendell’s dire warnings, he said: “When you’re selling snake oil, you need to really up the hype and he has upped the hype to the point where this is a like a nuclear doomsday,” Scarnati said.
Rendell is proposing a $29 billion budget and the budget passed by the Senate Republicans in May is $27.3 billion – a $1.7 billion difference.
“That’s still an awful lot of money,” Scarnati said. “So for the governor to be talking about laying off state troopers, closing state parks and other calamities if our budget passes, is just not true.”
He compared the situation to a family that was planning to use its annual income to pay bills, feed itself, provide for the children and remodel the house. Then one parent’s income suddenly drops.
“Gov. Rendell makes it out to be that you take away food from the children instead of that you put off the remodeling,” Scarnati said.
Republicans hold a strong 30-20 majority in the state Senate so a budget must be approved by that chamber to become law. In the past, Scarnati said, Republicans talked tough about holding the line on taxes but ultimately negotiated with the administration and its leaders and some safe Republican members voted for increases.
“We are a new leadership since 2007 and we intend to show we are different,” Scarnati said. “We are glad to talk with the governor and the other caucuses any time but we will not compromise on core principles.”
It was almost anti-climatic.
It’s no surprise that Don Cunningham, the ambitious Lehigh County executive, dropped out of the 2010 governor’s race – acknowledging the daunting challenge of running two campaigns simultaneously while governing a growing county.
In an e-mail he sent out Thursday afternoon, Cunningham said he is leaving the race and the exit is not a bid to run on the eventual ticket as lieutenant governor. He did not endorse another candidate.
In modern politics,” Cunningham said, “the successful pursuit of higher office demands a complete and consuming devotion of time and energy often at the expense of all current commitments and responsibilities, both personal and professional.”
The website, www.pa2010.com, on Thursday wrote that in recent weeks, Democratic insiders had determined that Cunningham’s candidacy might soon be ending.
His fund-raising was anemic compared to undeclared candidate, Allegheny County Executive Dan Onorato. He did not have great personal wealth as does Tom Knox, the Philadelphia millionaire considering a run. And he never ran statewide as has another potential candiate, state Auditor General Jack Wagner.
So the Democratic gubernatorial race, which began 2009 with five hopefuls, is down to three potential candidates, all men. Earlier this year, York businessman Tom Wolf left the race in order to salvage the kitchen cabinet company his family had founded a century ago and that Wolf had sold to another interest before becoming state revenue secretary for two brief years.
It now remains to be seen if the exit of Cunningham and Wolf will make it more inviting for another eastern candidate, possibly a woman, to take a second look at the contest.
“I am very fortunate to hold a position that I enjoy and find rewarding in my community. The people of Lehigh County made a commitment to me and I have a responsibility to them. This year I seek a second and final term as their county executive. These are particularly challenging times for all local and county governments and I’ve decided it’s not the time to have an ‘absentee’ county executive.
"The timetable of politics is earlier and earlier,” he continued. “Now is the time for anyone that wants to run for governor to go 'live on the road' and, frankly, to focus almost exclusively on raising money.
"We have come to know that money is the only real prerequisite for the media, the punditry and the insider community to assess candidates. Personal wealth and/or access to wealthy donors are more important than a textbook full of ideas in the insider world. Those are simply the ground rules of the game."
So the Democratic gubernatorial race is down to three hopefuls at the moment when it started out the year with five potential candidates, all men.
It now remains to be seen if the exit of York businessman Tom Wolf earlier this year and Cunningham now, will make it more inviting for another eastern candidate, possibly a woman, to take a second look at the contest.
Mayor’s Waiting Room After primary loss, supporters of long-time Harrisburg Mayor Steve Reed await word from their leader on his next move while media questions his sudden silence
It’s a summer of uncertainty in the capital city.
Reed, who in his long mayoral tenure has been confident, even cocky, about what is best for his beloved city, is in a personal quandary about what to do next. It’s a political purgatory that Reed supporters are finding hard to endure.
The only thing known is that Reed has not offered a concession to primary winner, Linda Thompson, currently city council president, and an outspoken critic of the mayor. She won the May primary by roughly 3,500 votes to 2,500 for Reed.
Worsening the situation is that the city has entered an early summer wave of violence and the usually outspoken mayor has been strangely silent and unavailable to the media. As of Thursday, June 25, there have been 11 shooting incidents in 18 days, several of them resulting in killings, including some that appear to be execution-style.
The local print and broadcast media, which has been mostly kind to Reed over the years, is befuddled and irritated by his unavailability.
Under a headline that reads, “For city’s sake, Reed must stop sulking,” Patriot-News columnist Laura Vecsey argued that the mayor is not doing justice to his legacy of single-handedly reviving the city from distressed status in 1982 when he took office to a thriving metropolis that often makes national most livable cities’ lists.
Reed broke his silence Thursday night with an appearance on the local ABC affiliate in which he denied he was sulking but just busy with city work seven days a week.
In response to the rash of violence, Reed ordered all police on 12-hour shifts to deal with the problem. That, he said, will increase by 50 percent the number of officers on the street, but will cost the city considerable overtime.
He said he was not hiding from the media. “We’re not going to stand up there before cameras every five hours and give blow-by-blow updates on active police investigations,” he explained. “We’ll give updates after we make arrests.”
Despite the mayor’s denials, some of his supporters told the newspaper columnist he went into seclusion with a depressive funk after the election loss. But his supporters hope to give him some polling information that might boost his spirits and even induce him to try and get that one more four-year term he wants to serve.
So after taking a primary victory too much for granted in the spring, does the mayor or his team have a secret plan that he will enact before the fall general election?
Speculation has settled on two possibilities, one of which sounds plausible but would be hard to implement on Election Day – a write-in campaign in the November election. Reed said on the Thursday night newscast that he will make that decision later this summer.
(Editor’s note: Under state law, Reed is not eligible to run an independent candidacy because that would have to have been declared and filed before the major party primaries.)
Even Reed’s most ardent supporters acknowledge the difficulty in getting thousands of voters to master the complicated process of doing a write-in in the age of modern electronic voting.
“We remain hopeful that the mayor will favorably consider a write-in bid,” said Randy King, the former mayoral spokesman who has been organizing efforts by “three or four groups” throughout the city to fund such a campaign. King noted that phone calls and e-mails continue to come in daily urging Reed to fight on.
The other option is if Reed could somehow become the Republican candidate. The obstacle there is that the mayor lost the Republican primary too.
While his name was only on the Democratic ballot, Reed did mount a write-in campaign for the GOP nod. But it went to Nevin Mindlin, a former legislative staffer and currently a lobbyist for the Pennsylvania Bar Association.
Reed got about 325 write in votes but Mindlin, who was listed on the GOP ballot, captured the nomination with 423 votes.
For Reed to have the Republican nomination, Mindlin would have to resign from it – something he is adamant he will not do.
Reed supporters are unlikely to do that. Most of them are Democrats and well aware of the city’s overwhelming Democratic registration. At the same time, they are unlikely to move their support to Thompson until they are certain Reed is out of it.
Thompson has made moves to close Democratic ranks. She held a post-primary fund-raiser at $1,000 a person and solicited many of the mayor’s supporters and large donors.
Republican leaders in Dauphin County, in which Harrisburg is located, are also not prone to intervene and nudge Mindlin out of the race.
At stake are two of the three countywide Common Pleas Court seats to be decided in November. While one of the three endorsed judicial candidates won both parties’ nominations and is a shoo-in for election, two candidates won only the GOP nod while their non-endorsed Republican rivals won the Democratic nomination because cross-over filing is allowed in judicial races.
Republicans are reluctant to “gin up” voter turnout in the Democratic city, lest if upset its two vulnerable judicial candidates who only have the GOP nomination. While the courthouse is still solidly Republican, voter registration flipped last year to a very narrow edge to Democrats so the concern has some validity.
The wave of new Democratic registrants was prompted by the fierce primary battle in April 2008 between Hilary Clinton and Barack Obama. While Clinton won the county, Obama overwhelmingly won the city, whose population is majority African-American.
It was that font of new African-American voters that Thompson’s campaign skillfully tapped with a targeted Get-Out-The-Vote effort. Thompson is African-American.
Although the city has been majority minority for two decades or longer, Reed, who is white, has been able in the past to count on a core base of white voters and educated middle-class blacks who supported his candidacy over any African-American rival.
While the city has about 2,500 strong Republican voters and 2,000 independents that Reed has been able to count on in past elections, the newly energized black vote in the city may be too powerful to overcome. That may be giving Reed pause about a second potential election embarrassment in the fall.
So what would become of Reed if he did decide to step aside and graciously transition to Thompson?
He could find a place in the private sector. His mostly smooth and effective operation of the city for nearly three decades is a skill that he brings to any private enterprise.
He also could end up being a cabinet member in state government in the lame-duck Rendell administration or he could transition to Washington, D.C., where he would be ideal as a deputy secretary for the U.S. Department of Housing and Urban Development or the Federal Emergency Management Agency.
(Until recently, Reed has been infamous for showing up at every emergency, major fire, police situation or other calamity in his city. He also led the city through at least two major floods caused by the Susquehanna River rising during his tenure.)
“It might do Steve some good to get out of town for a little while,” said one Reed supporter, who noticed that despite the disappointment of the election loss, “a certain weight appears to be lifted from his shoulders.”
Specter slips Party switch costs him support among the GOP but he still has lead over Democratic rival
While President Obama, Gov. Rendell and freshman U.S. Sen. Bob Casey Jr. all welcomed U.S. Sen. Arlen Specter into the Democratic Party fold, the transition hasn’t been as smooth with the public at large.
That’s according to the latest Franklin & Marshall College poll taken last week among 580 Pennsylvanians. The survey was co-sponsored by the Philadelphia Daily News and the Pittsburgh Tribune-Review and the following TV stations: WTAE of Pittsburgh; WPVI of Philadelphia and WGAL of Lancaster.
The veteran senator’s favorable numbers are slipping and not just among Republicans who had a strong negative reaction when Specter in February became one of just three Republicans in the entire Congress to vote for the president’s $780 billion stimulus plan.
Specter’s favorable job approval among Republican voters dropped by 31 percentage points since his switch. In March, his job performance was rated good or excellent by 49 percent of Republican voters; in the latest poll, he had only 18 percent favorable rating with those same GOP voters.
Specter’s precipitous drop among Republicans led to an overall drop in support for his re-election to an unprecedented sixth term in the Senate from Pennsylvania from 40 percent in March to 28 percent in the June poll.
Despite the slump, Specter still handily beat his only probably major opponent, U.S. Rep. Joe Sestak, D-Delaware, in a hypothetical match-up, with Specter having 33 percent support, Sestak 13 percent but 48 percent undecided.
Poll director G. Terry Madonna said Sestak’s low numbers are likely based on his name recognition being restricted to just part of the Philadelphia region. Sestak is just in his second term in his suburban district covering Delaware County after a military career in which he rose to the rank of admiral in the U.S. Navy.
By contrast, Specter is a household name after seven statewide campaigns – in which he was successful in the last five to become the state’s longest serving U.S. Senate. Through his long career since that 1980 election, he has at times riled supporters on both sides of the political spectrum with many of his major votes, including judicial selections.
Specter revels in his independence and embraces the label “moderate,” which he says is no longer acceptable in the Republican Party of the 21st Century which has become narrower of other viewpoints and those who are not socially conservative.
Still, Madonna said, the contest is Specter’s to lose and he likely will have sufficient financial backing to take on both Sestak in the primary and Toomey in the general election.
Other elected officials also suffered more minor setbacks in public popularity:
Four Corners of Pennsylvania and more Regional political news you can use
Southeastern Pennsylvania
Congressman Jim Gerlach told the Morning Call of Allentown this week that he will make a decision before the end of July whether to continue his quest for the GOP gubernatorial nomination or pursue re-election to his U.S. House seat. In the same interview, Gerlach, a moderate Republican from Chester County, closed the door on a potential bid for the U.S. Senate nomination. That is good news for Republican senatorial front-runner Pat Toomey, who also coincidently had been considering a run for governor. With incumbent Arlen Specter switching in April to the Democratic Party for the 2010 race and moderate Republicans, first former Gov. Tom Ridge and now Gerlach, declining to seek the Senate seat held by Specter Toomey is the clear front-runner and favorite to win the GOP nod. A second candidate, Johnstown activist Peg Luksik, is also in the race.
Southwestern Pennsylvania
It was all smiles when Dan Rooney, Steelers owner and son of its late founder Art Rooney, appeared before a Senate committee to a hearing on his nomination as ambassador to Ireland. He got no tough questions during his one-hour hearing except for one: “I’m not going to ask you whether it’s better to win the Super Bowl or be nominated to be an ambassador,” said U.S. Sen. Jeanne Shaheen, D-N.H. Rooney replied with a chuckle, “I’m not sure I can answer that.” Rooney was a lifelong Republican but he saw Barack Obama campaigning on television early last year and became a supporter even though most of the powerful Democrats in Pennsylvania supported his main rival, Hilary Clinton. Rooney said he hoped to further the bond between Ireland and the 44 million Americans of Irish descent.
Northwestern Pennsylvania
Former Superior Court Judge Michael Joyce is serving a 46-month federal prison for insurance fraud but unlike other Pennsylvania elected officials he won’t be losing his state pension. The Pennsylvania State Employees Retirement System determined in May that Joyce’s complicated insurance fraud conviction determined that it did not involve his public employment and therefore he is entitled to an $81,800 annual pension. The pension revelation was the result of a right-to-know request filed by the Erie Times-News.
Northeastern Pennsylvania
While Joyce may have lucked out, such is not the case with two former Luzerne County judges who plead guilty in a kids-for-cash kickback scheme in which the two judges sentenced juveniles to specific detention centers, even for minor infractions. Former Judges Michael T. Conahan and Mark A. Civarella were deemed to be eligible until they plead guilty in February to fraud and conspiracy.
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