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INSIDER INFO -- JULY 2008
Short takes
After the storm
Calling the signal
Reform after scandal
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The views contained in The Insider are those exclusively of its editor, Al Neri, unless an article is specifically authored by another writer. | ||||||||||||||||||
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Short takes
Our quick observation of some of the high profile and lower-profile people who figured into the Bonusgate investigation that rocked the state capital
Even in their hour of shame, some of the key figures in the Bonusgate scandal showed their arrogance and their enjoyment of the spoils of their alleged ill-gotten gain.
House Minority Whip Mike Veon left his July 11 hearing in the passenger seat of a big, black Cadillac Escapade. Annamarie Peretta-Rosepink, his Beaver Falls district office administrator, left in "a waiting BMW." It resembled former Enron executives leaving a federal courthouse in Houston.
Veon's only comment to reporters after being charged with more than 65 counts of theft, deception and conspiracy that carry up to 381 years in prison and a fine of $805,000: "Not today. Not here. Maybe another time, another place."
Hey, doesn't someone out there in that crowd have a Ford Escort they could lend Veon for a few hours? Didn't Veon learn anything about PR in his 24 years in Harrisburg?
Not that state Attorney Tom Corbett's crew got everything exactly right. In what appeared to be a serious case of overkill and playing to the TV cameras, the state attorney general agents handcuffed Veon and the others who were indicted even though all the suspects had turned themselves in as the AG requested and these alleged white collar criminals were no danger to the officers, the reporters or the public.
The supervisor in charge of the agents, Deputy Attorney General James Reeder, said that handcuffs were required under regulations because the suspects were all being charged with felonies, rather than misdemeanors. Still, it appeared to be a blatant play to the TV cameras for which Corbett was duly scolded by some newspapers.
Other media observances of the fallout from Bonusgate was that one player was still on the payroll after her reported misdeed while another, a whistle-blower, is out of a job and facing foreclosure on his home.
Bertugli was 21 back in 2004 when she met the married Manzo, than 35, in a Harrisburg bar while she was a summer intern for the caucus. They shared drinks that first night and then reportedly had their first sex in his car. Manzo arranged for her to have a little-work taxpayer job when she returned to school in Pittsburgh. But her main duty was to have sex with him when he was in town, Bertugli reportedly told the attorney general's grand jury. By 2006, her salary had risen 42 percent to $30,000 and she got a $7,000 bonus to boot.
Later, when she transferred to Widener Law School in Harrisburg, Manzo secured for her a job in the caucus as a research analyst under Jennifer Brubaker, another of those charged in the scheme. DeWeese has defended her continued employment, noting that she cooperated with authorities and told the truth.
Meanwhile, Terry Shaffer, an aide to former state Rep. Frank LaGrotta, is unemployed after blowing the whistle on his boss's putting his sister and niece on his staff in do-nothing jobs - ghost pay rolling. He left the state payroll in late 2006 after LaGrotta lost re-election.
After Shaffer fingered LaGrotta for ghost pay rolling of his relative, LaGrotta found himself in the hot seat. At that point, he apparently pointed them to the larger scandal that had already started to emerge in newspaper exposes - Bonusgate - the payment with taxpayer money of bonuses and regular salary for campaign work for the Democratic House caucus.
It's two years later and in job-strapped Lawrence County where Shaffer worked he has not found new employment and his house is about to be foreclosed on. Still, Shaffer is proud of his whistle-blower role and has "absolutely no regrets" about coming forward, he told John Baer of the Philadelphia Daily News who first reported the saga.
"If people don't step up now and work for change, they don't deserve good government," Shaffer told Baer.
Since criminal charges were filed in the legislative Bonusgate probe two weeks ago, House Majority Leader Bill DeWeese has widely proclaimed that the grand jury reports in that wide-reaching investigation have vindicated him of any wrongdoing.
All along, the Greene County Democrat has said that he was unaware of any link between caucus staff bonuses and campaign work, despite a letter going out under his signature to staffers in 2006 to keep their bonuses secret because others did not receive one.
On July 10, Attorney General Tom Corbett charged DeWeese's closest legislative ally, former House Minority Whip Mike Veon, D-Beaver, and DeWeese's former chief of staff Mike Manzo, along with 10 others, for allegedly using millions of dollars of official work hours for campaigns and paying taxpayer-funded bonuses to staffers for campaign work.
Fifty-nine counts were alleged against Veon, and 47 counts against Manzo.
The 10 others charged in Corbett's probe include Rep. Sean Ramaley, D-Beaver, who is running for an open state Senate seat in Beaver County, and 10 former or suspended House Democratic staffers.
So far, the fallout from those charges has landed heavily on DeWeese, as some House Democrats began publicly questioning whether he should continue leading their caucus.
Ramaley has also felt pressure from Western Pennsylvania Democratic insiders to relinquish the Democratic nomination for his Senate race but so far he has firmly refused. He is accused of taking a no-work job in 2004, under Veon's supervision, as Ramaley campaigned for his House seat.
Western Pennsylvania Democrats worry that those charges could hurt Ramaley's chances in a reliably Democratic Senate district, if negative publicity from the Bonusgate charges taint voters' views of him. After all, the success rate of candidates running while under indictment is, well, not very good.
DeWeese has maintained that Veon, Manzo and the other staffers acted behind his back, without his knowledge of the alleged illegality.
DeWeese was downright jubilant in a conference call with his fellow Democratic leaders on the day the charges were announced. According to a report last week from Capitolwire.com., the Harrisburg-based Internet news service, DeWeese on a conference call the afternoon of July 10 with other caucus leaders, said it was "one of the best days of my life!"
The weeks since then have been anything but the best of days for DeWeese.
So far, five House Democrats have publicly called for his resignation or ouster as House Democratic leader.
DeWeese's response is a familiar one: "I feel this report vindicates me and I really believe that our leadership team for the last 17 months has handled this terrible crisis in the best way conceivable," he told The Associated Press last week.
In the Capitolwire story, he wrote in an e-mail that his comments about July 10 being "one of the best days of my life!" were taken out of context.
"That is a mischaracterization of what I said!!!" DeWeese wrote to Capitolwire. "What I did say was taken completely out of context and that was that the grand jury confirmed what I had been saying for months and months and months - that the scheme was carried out behind my back and without my knowledge. In fact, it was one of the saddest days of my life."
Three of the five House Democrats to call for DeWeese's removal from leadership so far actually took that position months ago in a private caucus retreat back in January.
Two of them are longtime DeWeese critics - Reps. Bill Keller, D-Philadelphia, and John Yudichak, D-Luzerne - while the third - Rep. Dan Frankel, D-Pittsburgh - has had no history of animosity with DeWeese but was concerned then that his continued leadership could hurt the caucus's efforts to hold onto the majority.
Rep. Harry Readshaw, D-Allegheny, another longtime DeWeese critic, wrote an open letter last week also calling for DeWeese to resign.
The fifth House Democrat to call on DeWeese to step down, Rep. Matt Smith, D-Allegheny, like Frankel, has had no history of ill will with DeWeese. Smith is the only House Democratic freshman so far to publicly call for DeWeese's ouster or resignation.
Yudichak told Capitolwire last week: "If [DeWeese] does not do the right thing, and step aside, then we come back in the fall, there will be an effort to reorganize. Keller and Frankel and I made our piece known several months ago. Now it is clear there is no other course than to call for reorganization if he will not do the right thing."
Readshaw wrote in his open letter: "Where does the ultimate responsibility for the fostering of such an atmosphere lay? ... In the House Democratic Caucus that responsibility lays with the Democratic Leader - at least it should, but in this instance, the buck is being passed. Whether the Democratic Leader was knowledgeable of the alleged corruption or (was) ignorant of it, he should be held accountable that it evolved under his leadership. The most honorable approach would be for the leader to acknowledge that gross error and step down.
"... I have consulted with enough of my Democratic colleagues to know that the failure to recognize the facts will only exacerbate the damage."
Smith, who discussed the situation at a press conference in suburban Pittsburgh last week, said in a statement: "The time has come for Rep. DeWeese to relinquish his post as Majority Leader for the good of the caucus, the Democratic Party, the General Assembly, and most importantly Pennsylvania taxpayers."
And more House Democrats say privately that DeWeese has become a distraction for the caucus and should step down.
The problem for House Democrats is figuring out how to make that happen.
DeWeese is refusing to give up his leadership post, and many in the caucus are reluctant to start, in the words of Rep. Mike McGeehan, D-Philadelphia, an inter-caucus "civil war."
"This is not the time for a civil war among Democrats, in my view," McGeehan told Capitolwire. "... With gas and milk at $4 a gallon, we should be attacking Republicans, so we can help working people by keeping the majority and adding more House Democrats."
Meanwhile, Corbett has said he expects to file more charges in the ongoing probe. When asked whether DeWeese knew about any of the activities at the center of the more than 100 pages of grand jury reports, Corbett said two weeks ago: "The investigation is ongoing."
And then there is DeWeese's re-election challenge from Republican Greg Hopkins, who came within just over 1,000 votes of beating DeWeese in the 2006 election, when DeWeese was under fire for his role in the pay raise of 2005. (See accompanying story this issue.)
Now, Hopkins, a former Arena Football star, believes that voters are ready for a change - despite DeWeese's having 100 times as much campaign cash on hand than Hopkins, $202,000 to just over $2,000 for the Republican, according to the Pittsburgh Tribune-Review.
The challenge, of course, is for Ramaley to introduce himself to voters in three-fourths of the Senate district, beyond the quarter of that district where voters already know him as their state representative. With Bonusgate headlines and perp walk photos of him in handcuffs, the question is just how much that will color voters' impression of him.
But Ramaley maintains his innocence and plans a vigorous fall campaign. And despite any pressure from the Democratic powers that be, the decision to stay in the race or to bail out is his alone. They can not force him to relinquish his nomination.
Calling the signal Former Arena League football hero and Greene County native is taking on Bill DeWeese again after near-victory in 2006
When you talk to House Democrats, even many who publicly support House Majority Leader Bill DeWeese, D-Greene, they wonder if he can withstand a challenge from a little-known Republican who came within five points of beating him last time and is in for a rematch this fall.
So who is this potential GOP giant-killer?
He is a former minor league football star and a Hollywood-handsome male model, whose family runs the biggest - and only - business in Ninevah, Pennsylvania: a country store. And he has the all-American name of Greg Hopkins.
Hopkins scored a game-winning touchdown after catching a ball off a net - hey it's the Arena Football League, the rules are different - and that feat was voted the 19th greatest play in Arena Football League history. Now he is trying to make House history, as the first challenger to knock out the leader of a House caucus in the memory of Capitol insiders.
Hopkins likes to say of his political views: "I am a moderate Republican who shares many of the ideals set forth in the Democratic Party's platform. However, I am a fiscal conservative, first and foremost."
A self-described "Specter Republican," Hopkins came close to defeating DeWeese in 2006, getting 47 percent of the vote and losing by about 1,000 ballots in 2006. Now, after Attorney General Tom Corbett has filed hundreds of felony charges against DeWeese's top deputy, former House Minority Whip Mike Veon, D-Beaver, a sitting state representative and ten suspended or former top staffers who directly reported to DeWeese, this election is widely viewed as a referendum on DeWeese.
Certainly Hopkins' campaign sees it that way. On July 24, Hopkins website listed 10 news articles: all were about DeWeese and Bonusgate and mentioned Hopkins barely or not at all.
DeWeese doesn't see it that way. He says the grand jury report that led to the indictments was a "vindication" for him, telling the news service Capitolwire that: "the grand jury confirmed what I had been saying for months and months and months - that the scheme was carried out behind my back and without my knowledge."
He out-spent Hopkins $40,000 campaign kitty 25-1 in 2006 and so far this year leads Hopkins $200,000 to $2,000, or 100-to-1 in the latest campaign finance reports. And DeWeese reports he is working hard and will win again.
But after persuading his constituents narrowly last time to re-elect him after the Pay Raise of 2005 scandal, DeWeese now has Bonusgate tied to his tail by Hopkins at every opportunity.
Hopkins told the Pittsburgh Tribune-Review: ""The claim (that) he knows nothing about it. He's either not telling the truth or he's an incompetent leader. If he didn't know what was going on, it's like he was driving the car from the trunk."
DeWeese believes the polls will turn around when he tells voters his story of economic development. His backers even deny the poll ratings are as bad as House Democrats and two groups who commissioned them insist they are.
But DeWeese starts off with a high hurdle to surmount: DeWeese was the only Democrat on the fall ballot not to win Greene County in 2006 and that is his home county: Sen. Barry Stout was unopposed, U.S. Sen. Bob Casey Jr. rolled up 64 percent of the vote, Gov. Ed Rendell? 55 percent of the vote while U.S. Rep. Jack Murtha got 59 percent of the vote.
DeWeese lost to Hopkins, 48 percent to 52 percent in their shared native county, which makes up about 70 percent of the district. Only by winning Fayette County by 1,000 votes, 63 percent, and Washington County by nearly 600 votes, 64 percent, did DeWeese hang on to his office. And polls show Bonusgate could hurt him there if Hopkins can run an effective campaign.
But while the focus in Harrisburg is on whether DeWeese will lose, little focus has been put on Hopkins, and that is the main job DeWeese has now: as Specter has done over the years: define his opponent so negatively that swing voters abandon that candidate.
He is the rare bi-coastal resident of Greene County, a former linebacker and star wide receiver with Los Angeles Avengers of the Arena Football League. He retired at the end of the 2006 season after racking up 11 years in the league.
Hopkins remembers distinctly the first time he met DeWeese. It was at a local hair salon. "I knew he was our state rep, and I went to the barbershop, and he was coming out of his chair as I came in, I figured I would introduce myself, I was in high school or my first year in college, I walked over and introduced myself and said 'How you doing"?'
"He beamed and said 'I'm benevolent!' "Ever since, I wondered: who talks like that? It left a weird impression."
Now, as Hopkins plans his second campaign against DeWeese, he says the district is hardly "Benevolent." Greene County and Fayette County make up most of the district, and they are the second and third poorest counties in the state after DeWeese's 30-plus years in office and more than 15 years in leadership. "All the money he says he brought here and could have brought here instead of piling it up in his leadership accounts. Benevolent? I think not."
Each of the years after Hopkins finished his season in the Arena Football League, he returned to Ninevah, where his family owns the Hopkins Family Country Store, with 16 flavors of ice cream.
He said his roots in the community and the pay raise of 2005 cause him to run as a reformer in 2006, and Bonusgate has redoubled his resolve to run again now.
"I have never been one to sit on the sidelines when I was needed to get in the game and make a difference," Hopkins said in a 2006 interview.
Hopkins believed strongly in 2006 that DeWeese was vulnerable to a challenge because of newspaper stories about DeWeese's using state funds for his travel, and DeWeese's strong support of legislative perks and pay.
Now, after Bonusgate, Hopkins recently told one major reform donor: "Bill DeWeese is making it clear this district needs reform. He couldn't make it any clearer.
DeWeese is still attacking the athlete/model for not living in the district.
His website in 2006 answered that question by asserting: "I promise you I am a lifelong resident of Nineveh, which is in Morris Township. I have been a professional football player in the Arena Football League (AFL) for the past eleven years. I went straight to the AFL after I graduated from Slippery Rock University. Our season is approximately six months long, and my team provides the players with apartments while we are away from home. Every month that I am not playing football is spent living in Nineveh, working on the family farm and supporting community activities.
"Now that the football season is over, you can rest assured that I am back in Nineveh, where I hope to dramatically expand my role as a community activist by becoming State Representative for the 50th District."
Hopkins said he has his own credentials for leadership. He said they were developed as a team captain for the Los Angeles Avengers and then as the lead plaintiff in a class action lawsuit that created the Arena League Players Association. Hopkins said that legal action resulted in a tripling of player salaries in the league and additional benefits.
Hopkins said that while football tested his "manhood and physical abilities, but nothing tests your decision-making and leadership than leading a group like a players association." Hopkins said the association was a relatively small group of about 500 players with a 50-50 split on whether I was doing the right thing by advocating an association. The way I saw it, there were 500 families depending on me to make the right decision.
"Now if you go back to those 500 families, they know what we did for them, and I think they would all say we made decisions that benefited them."
DeWeese in 2006 said of Hopkins that his football association kept him away from the community, including on Election days: "My opponent refused to vote in 15 elections, half and half between primaries and general elections, I believe, and I think that voters will not be impressed by that."
Hopkins responded: "My family has been here for years and so have I, and people know us and that we want serve and help the people of this region."
Hopkins also clearly regards his party label as something to overcome and prefers the term "moderate" or "Specter" Republican.
But even conservatives are lining up behind him. Pittsburgh Tribune-Review columnist Eric Heyl recently wrote that while Hopkins has some of the same challenges that Republican Lynn Swann had in losing to Gov. Ed Rendell, transitioning from wide receiver to candidate against a savvy, energetic veteran incumbent, that: "Hopkins has an advantage that Swann did not: a scandal-tinged opponent attempting to pass off the scent of skunk as an alluring cologne."
Heyl also wrote that Hopkins, whose Arena team retired his number last year: 'He certainly is catching DeWeese at the right time."
On his campaign Web site, Hopkins appeals to Democrats who want to know why they should vote for him: "I'll answer you straight up. Because voting for our 31-year incumbent Democrat isn't working. If he was a Republican, I'd give you the same answer; vote him out of office. It isn't working!
"Under his reign, our district has REMAINED the second and third poorest counties in PA. Under his reign in 2004, Greene County was found to be one of the dirtiest counties in the entire U.S. in a study done by the National Resource Defense Council. Under his reign, pollution rated cancers are 100 times higher in Greene, than averages set by federal policy.
"He was at the center of the pay raise fiasco. He is in the midst of Bonusgate. He represents what is wrong with Harrisburg-party bickering, the blame game, corruption and entitlements.
"I will represent you. We are community. We are families. We deserve better representation. Party affiliation is last on my list of reasons to vote or not vote for someone. Vote the person, not the party.
Hopkins says when he goes door to door now he finds, "people are ready for a new direction. It is not hard to get a smile out of people now, the way it was last time, when they saw (my) party first and he (DeWeese) survived because they were Democratic loyalists, who stuck with him through thick and thin. Now they are open to what I have to say, people who were not supporting my campaign last time are with me this time."
Why? Hopkins says that while DeWeese feels "vindicated" by Corbett's filed charges, voters and Hopkins believe that it just proves Hopkins charges of 2006: that DeWeese had become a perk-greedy Harrisburg insider.
"He has even said 'I was asleep at the switch,' but then he wrote a memo saying these bonuses are of an extreme nature and you should not discuss it with any of your co-workers," Hopkins said. "If he did know anything that is an incompetent leader. How can you be the CEO of a company that has a $28 billion budget and didn't know where the money was going? If you are designated leader, it is your job to know what is going on. For him to say he delegated authority that is difficult for me to believe."
Reform after scandal Some lawmakers are pushing it but it faces an uphill climb in an entrenched legislative environment that resists change
Whenever a big legislative scandal emerges, through newspaper exposes or, as happened in Bonusgate, through criminal charges a wave of reform sweeps over the Capitol.
Traditionally, the reforms are aimed at the problems exposed. For instance, the corruption charges brought against Sen. Frank Mazzei, D-Pittsburgh, Speaker Herb Fineman, D-Philadelphia and Sen. Buddy Cianfrani, D-Philadelphia, in the 1970s led to lobbying disclosure laws, campaign finance reform and other reforms.
More recently, the pay raise scandal of 2005 led to a series of legislative reforms, including an 11 p.m. House curfew on floor action, 24-hour-delays before a bill can be voted, and the requirement that bills be amended then voted upon at least 24 hours later. Plus House and Senate and other government records are far more available on the web, and expenditure records of each member are available upon e-mail request.
But as House Majority Leader Bill DeWeese, D-Greene, said recently, all of the things that lawmakers and staff allegedly did in Bonusgate were already illegal. DeWeese said that in response to Sen. Jeff Piccola's call for a special fall session on government reform.
Piccola is not only pushing now for a Special Session on government reform, but outlining an ambitious agenda and an unheard-of five-day-a-week schedule for that special session.
Piccola's homework list for the special session includes a bill sponsored by Sen. John Eichelberger (R., Blair), that would ban bonuses for virtually all state employees. A news release was issued after the indictments urging swift House passage of the legislation.
Piccola said if a special session is held the Legislature should:
Piccola, 60, is himself a career legislator having served 32 years in the state House and the state Senate representing Dauphin County. He lost the top leadership post in the state Senate to Joe Scarnati, R-Jefferson, by one vote in January 2007. But he is getting strong support for his caucus on his reform agenda.
Senate GOP leaders called upon House Democrats to return this summer and have a reform session now, but DeWeese resisted, as much to avoid bringing his roiling caucus back together before he had to in the fall, as well as to avoid angering members by forcing them to cancel vacation plans and trips.
How fully invested in the reform movement is Piccola? He held an event calling for the special session and included as a featured speaker Eric Epstein, The Democrat who ran against him in 2004 and has criticized him since. Epstein runs a reform group called Rock the Capitol.
Piccola's position as the chairman of the State Government Committee gives him a good perch from which to promote and move reform bills.
And a good way to contrast his activity with the bills stalled in the House State Government Committee, led by Rep. Babette Josephs, D-Philadelphia, a liberal in philosophy but one who loyally follows whatever course is set by DeWeese and House Appropriations Chairman Dwight Evans, D-Philadelphia, at least where reform bills are concerned.
Josephs has been hammered most recently in the press by Sen. John Eichelberger, R-Blair, who unseated Senate President Pro Tem Robert Jubelirer, R-Blair, in 2006, after the pay raise scandal of 2005 soured voters on Jubelirer. While Josephs and DeWeese say they don't oppose a bill by Eichelberger banning bonuses, they say his bill will ban bonuses for all of state government and may violate contracts, and end programs that pay employees bonuses for saving the state money.
Eichelberger said: ""The people of Pennsylvania expect to have this issue addressed in law, not by the often unkempt promises of lawmakers who claim that it will never happen again," referring to the fact that while caucuses say they will not pay bonuses, there is no law to prevent them from doing so in the future. He said of House Democrats: "Their lack of action under the current circumstances is truly unbelievable."
But while DeWeese says he will decide the House Democratic reform agenda, other House Democrats are actively proposing more reforms.
In the fall, look for reform legislation involving the scandal-plagued Pennsylvania Higher Education Assistance Agency (PHEAA). Those bills have not yet been enacted but there will be a renewed push by Reps. Josh Shapiro, D-Montgomery and Mike Gerber, D-Montgomery.
Also, Shapiro will again press his plan - shared by Scarnati - to spend down the legislative surpluses of more than $200 million that are held in reserve by all four caucuses of the General Assembly.
York state Rep. Eugene DePasquale, a Democrat who joined with Piccola to sign the special session petition, will also be active, as will Sen. Mike Folmer, who like Piccola and Eichelberger, favors a smaller Legislature, with term limits.
Will any of this happen? Maybe? But Pennsylvania has a Legislature that is entrenched in its ways and reform comes slowly and more slowly.
But it sure will be talked about and it could dominate the fall session which is one reason Gov. Ed Rendell is so lukewarm on the idea.
The governor is rightly afraid that this will give the GOP an excuse to avoid working on his priorities - expanding health insurance and energy rate abatement. He fears they will spend the eight to 12 legislative days remaining in this session on reform issues rather than the legislation Rendell cares about.
Philadelphia Daily News columnist had an alternative suggestion for reforming the state Legislature: flame-throwers and then fire hoses!
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