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CapitalWatch
VOL. 3 NO. 9 SEPTEMBER 2010 CAMPAIGN 2010—PAGES 8-9

inside PA beats August tax revenue


Tolling interstates
could be part of
future transportation
collection estimates
Pennsylvania collected more August 2010 take coming in
sales tax revenue than expected $8.1 million below the August
funding bill in August, helping to break a 2009 revenue total - $42.1
PAGE 4 streak that has lasted for more million in 2010 compared to
than two years. $50.2 million in 2009.
According to monthly Last month’s realty transfer
tax collection information tax revenue also dropped from
Creedon leaves state released by the state Revenue the August 2009 revenue
post; O’Reilly named Department, Pennsylvania total - $23.3 million compared
collected $1.8 billion in General to last year’s $29.1 million –
as successor Fund revenue in August, which indicating the real estate market
PAGE 6 was $7.1 million more than in the commonwealth has yet
anticipated. The last month to adequately recover from its
revenues exceeded estimates extended downturn.
was April of 2008. Despite those areas of concern,
You can go home And although the fiscal year this year’s total General Fund
again only began in July, General collections are $200 million, or 6
Fund collections thus far for the percent, ahead of where they were
PAGE 10 year total $3.5 billion, which is a year ago: $3.5 billion compared
$6 million above estimate. to $3.3 billion last year.
Sales tax receipts totaled Gov. Ed Rendell said it was
EDITORIAL: $700.9 million for August, $34.5 too early to declare victory, but
million above estimate. Year- it was good to have a month
Sometimes you to-date sales tax collections above the revenue estimates,
can’t see the forest total $1.5 billion, which is particularly since the 2010-11
also $34.5 million more than state budget is predicated on
for the trees expected. August 2010’s sales 3-percent revenue growth.
PAGE 14 tax revenue also represented a Senate Republican caucus
$38.2 million improvement over spokesman Erik Arneson
August 2009’s $662.7 million in responded by e-mail about
collections. the new revenue figures:
But Pennsylvania’s personal “Being slightly above estimate
income tax revenues illustrate is certainly better than the
Check us out online at that problems still exist in the alternative, but the governor
state’s economy. is correct when he says it is too
www.capital-watch.com Compared to August 2009, early to declare victory. The
the state took in $32.6 million national economy remains weak,
Have a news tip or story less in PIT revenue last month: some economists are predicting
suggestion? New hires? Births, $650.9 million in 2010 versus a double-dip recession, and
engagements, sightings? Got a $683.5 million in 2009. consumer confidence remains as Pennsylvania is seeing signs that growth has returned to state
better idea? Know of an interesting And the commonwealth’s low as it was a year ago. Those revenue streams. The state Department of Revenue released August’s
state or local government program corporation tax showed a similar factors do not seem to bode well collections showing that state revenues came in at $1.8 billion for the
that addresses a real need or solves weakness, with the state’s for future months.” CW month, or $7.1 million more than anticipated.
a problem in an innovative —
and widely replicable — way?
Know of a study, report,
guidebook, website or other
PennDOT denies problems exist with device used to catch speeders
By Jim Quirk,Capitolwire
resource that would be helpful
to your peers in state or local A man who avoided a speeding answers to the questions raised PennDOT says it is satisfied the several basic questions he and
government? Tell us about it. ticket fine by showing that a by that engineer, Earle Drack. non-radar device operates correctly others have raised.
E-mail the information to device to catch speeders could The dispute is about a and was properly approved. Drack, an electrical engineer
be inaccurate is now raising Pennsylvania Department of But Drack, a trained engineer from Chester County who holds
goodwinpin@comcast.net.
questions about it that PennDOT Transportation-approved device who studied up upon the device a Master’s degree in engineering
Anonymity is assured. waves off or declines to answer. used by local police departments to fight traffic tickets in court from Cornell University, told
Lawmakers are also looking for to catch speeders. says PennDOT is ignoring the Senate Transportation
see penndot page 3

LANC., PA 17604
PERMIT 280
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Pennsylvania’s #1 Online Source for Political, Legislative and Public Policy News
For a free trial subscription, please visit our web site at www.capitolwire.com.
PRSRT STD
Stop the bleeding from all the cuts.
As a desperate and misguided measure, When times are hard and lives hang in the
our legislators and Governor Rendell balance, Harrisburg can’t afford to make
continue to cut critical programs and such short-sighted cuts that will prove
services for seniors and people with costly in the long run, both in human and
disabilities in an attempt to balance the in fiscal terms.
state’s budget. Use your voice. Call your legislators and
Meanwhile, our seniors and people the Governor today and tell them to raise
with disabilities, many of whom struggle state revenue instead of cutting programs
against limited access and a lack of and services for our seniors and people
opportunities that force them to subsist with disabilities.
on meager State Supplementary Call Governor Rendell’s office now at:
Payments, find the little assistance they (717) 787-2500
receive threatened by further cutbacks.
To find and contact your legislators, visit:
www.libertyresources.org/takeaction
and call, write, e-mail, or fax them today!

www.libertyresources.org
SEPTEMBER 2010 CAPITAL WATCH
news 3

CapitalWatch
www.capital-watch.com
PennDOT denies problems exist
with device used to catch speeders
PUBLISHER/AD DIRECTOR
Jim Laverty
(717) 233-0109, ext. 122
EDITORIAL continued from page 1
Editor-in-chief
Jacqueline G. Goodwin, Ed.D. Committee during a hearing in August
goodwinpin@comcast.net that ENRADD has accuracy issues.
(717) 418-3366 ENRADD, which stands for Electronic
Non-radar Device, is a speed-timing device
Contributing Writers used by some local police departments in
Peter L. DeCoursey lieu of radar. Local police departments use
Deena C. Malley ENRADD because Pennsylvania remains
Laura Olson the only state in the country that does not
Jim Quirk allow them to use radar. Only state police
News Service are allowed to use radar to catch speeders
Capitolwire in Pennsylvania.
PennDOT originally approved the use
Graphic Design of ENRADD – which is manufactured by
Lisette Magaro York firm YIS/Cowden Group, Inc. – in
Production 1996. In 2003, PennDOT approved a
Shawn Skvarna wireless version of the device, which has
become “the system of choice” for local
departments ever since, YIS owner Jim PennDot says it is satisfied the non-rader device, ENRADD, operates correctly.
Capital Watch is published every month.
Reproduction of this publication in whole Cowden said in a recent interview.
or part is prohibited except with the He said about 45 departments are hidden away from traffic, while the Mark Meyer, spokesman for committee
written permission of the publisher. Capital using wireless ENRADD systems now. speeds of passing vehicles appear on a Chairman John Rafferty, R-Montgomery,
Watch is non ideological and nonpartisan. The ENRADD wireless device uses digital screen before him that is part of said recently the committee only planned
infrared beams to determine vehicle the ENRADD unit. to submit a copy of Drack’s testimony to
speeds. Three-foot-long bar-like devices In addition to pointing out accuracy PennDOT for review.
affixed with beams on either end are problems, Drack also raised issues Drack became interested in ENRADD
placed alongside a roadway. Speed is with PennDOT’s approval process for after getting pulled over for speeding
determined by the time it takes for a ENRADD, and that there are potential in Chester County in 2007. He did not
moving vehicle to pass by the first beam calibration problems with the device. believe then that he was speeding, so dug
and hit the second beam. Whether the committee decides to up information on the device and went to
(717) 233-0109, ext. 114 The officer who operates the device, investigate the concerns with the device court prepared to fight the ticket. Only
meanwhile, is able to sit in his vehicle, further, however, remains to be seen. one of the two officers who ticketed
Drack showed up to court, however, so
Drack did not have to pay the fine.
In 2009, Drack said he was cited for
speeding again in Chester County, and
received a ticket that indicated he was
traveling 69 miles per hour in a 55 mph
zone. Drack claimed he did not exceed the
speed limit, so fought the matter in Common
Pleas Court, where he successfully pointed
out accuracy and calibration issues with
ENRADD, and was found not guilty.
Drack told the committee that the
accuracy of ENRADD is “dependent on
the distance traveled between the beam
breaks to be known accurately.”
The distance of the ENRADD device
is assumed to be three-feet “since that is
the beam separation on the roadside set
by the mechanical support.”
“It is easy to see, however, that if
beams are triggered by two different
points on the car, say by the tires for
the start beam and the bumper for the
stop beam, then the distance traveled is
not three feet but less, resulting in an
artificially high speed reading,” Drack
stated in written testimony.
He said that it has been “implied that a
test-drive of the police vehicle through the
ENRADD is a good way to ensure proper
alignment and thus avoid bad tickets.”
However, “if the beams are set to a
height that corresponds to the center
of the police vehicle bumper, the device
could read correctly for that vehicle
even if there are several inches of height
difference between beams.”
With that in mind, according to
Drack, “the reading will be correct
for the police vehicle but may have
large errors for vehicles with different
bumper heights/profiles like SUVs or
pickups,” Drack testified.
see penndot page 6
4 news SEPTEMBER 2010 CAPITAL WATCH

Tolling interstates could be part of future


transportation funding bill By Jim Quirk, Capitolwire

Tolling Interstate 80 in Pennsylvania is still a possibility after all. The secretary of the Federal Highway Administration might
The state could update its rejected application and resubmit it take into account tolling facility locations in deciding whether
to the Federal Highway Administration, according to federal and to approve an application to the program, he said.
state officials during a Sept. 1 hearing.But the state’s top trans- But Holian said states seeking to toll highways near borders
portation officials told members of the Senate Transportation has been approved by the highway administration in the past.
Committee and the Senate caucuses’ policy committees that “Tolling frequently occurs in locations that are fairly
he’s skeptical whether the Legislature would support the nec- close to the border,” he said.
essary changes to make the application succeed. Rafferty also asked whether money from tolls could be used
The hearing was to allow lawmakers to learn more to pay for the police costs associated with interstate highways.
about different tolling options the state could consider Holian said the federal statute indicates money from tolls are
in the effort to close Pennsylvania’s huge transportation for “the operation and maintenance” of interstate highways.
funding hole. The state had submitted an application to the “So, if the state determines that [police] is necessary for
Federal Highway Administration to toll I-80, but that was the operation and maintenance … we would end up deferring
rejected earlier this year. to the state,” he said.
If the state’s application was approved, tolling I-80 would have One of the other tolling options the state could consider,
generated $472 million per year that would have been used for road Holian said, is seeking federal permission to toll High Occupancy
and bridge projects across Pennsylvania, as well as for mass transit. Vehicle [HOV] lanes – also known as High Occupancy Toll [HOT]
Thomas Holian, the highway administration’s acting chief counsel, lanes. The state would not be allowed to toll vehicles that meet a “high
and state Department of Transportation Secretary Allen Biehler told the occupancy” requirement, motorcycles or public transportation vehicles that use
committees the application failed because federal law requires that the toll money HOT lanes, he said.
collected from drivers on I-80 to only be spent on that interstate. However, it would be able to toll vehicles that do not meet the required occupancy
Sen. Michael Stack, D-Philadelphia, asked whether the “defect in our application requirements to use HOV facilities, Holian said.
could be fixed somehow so that we would be able to toll I-80, or are we truly dead To toll HOV roads, the state would first have to enter into a toll agreement with
in the water?” the administration, he said. “Such an agreement must require that all toll revenues
The state would have to amend Act 44 – which was adopted in 2007 and autho- received from the operation of the facility will first be used for debt service, reason-
rized the tolling of I-80 – and change the fund distribution if it wanted to resubmit able return on private investment, and the costs necessary for the proper operation
its proposal, Biehler said. and maintenance of the facility,” Holian said in written testimony.
“My sense is you could cure it [application], but I think the recipe for curing it Another tolling route the state could consider is the Express Lanes Demonstration
would be, number one, you’d have to change Act 44 to not [state] that some of that Program, he said.
revenue will go elsewhere other than Interstate 80,” Biehler replied. “Next is, would Under this program, the state could toll certain express lanes, but the money
the Legislature agree to that? … Would you get the same voting support that you collected could only be used for maintenance, debt service and the operation of the
had when it was originally passed?” particular lanes, Holian said.
Holian said federal law has prohibited states from charging tolls on federal high- The Interstate System Construction Toll Pilot Program is another option the state
ways since 1916. However, Congress since that time has allowed some tolling to be could consider, he said.
allowed under special programs, he said. It is similar to the ISRRPP, but it is limited to new interstate construction, and
One of those programs – the Interstate System Reconstruction and Rehabilitation money cannot be used for maintenance of highways, Holian said.
Pilot Program [ISRRPP] – is what the state applied for in its quest to toll I-80, Unlike the ISRRPP, which requires the interstate to be located in three separate
Holian said. There are three openings under that program, and two of them are states, the Interstate System Construction Toll Pilot Program “may span two or more
already reserved for Interstate 81 in Virginia and Interstate 70 in Missouri, he said. states and may be operated and administered through an interstate compact,” he said.
That leaves one slot remaining, meaning Pennsylvania could correct its application Rafferty said after the hearing he doesn’t expect any bills to be brought forward
and resubmit it, Holian and Biehler said. this session that seek to toll Pennsylvania highways. He said a comprehensive trans-
Biehler said the annual funding need for I-80 is $100 million, which only scratches portation funding bill could be considered next year that includes some of the tolling
the surface of Pennsylvania’s overall $3.5 billion transportation funding hole. options discussed Wednesday.
Gov. Ed Rendell spokesman Gary Tuma said after the hearing that tolling I-80 just for Rendell and the House Democrats believe a bill providing some kind of transporta-
projects on that highway “could be a small piece of the transportation funding solution.” tion funding should be passed before the November election.
“It could no way be the entire solution,” Tuma said. Rendell and Biehler last week unveiled a proposal to raise transportation revenues
Senate Transportation Committee Chairman John Rafferty, R-Montgomery, asked by $1 billion per year by increasing the tax on oil company profits and increasing fees
Holian whether it is possible for the state to place tolls on interstate highways at for driver’s licenses, vehicle registrations and inspection stickers.
Pennsylvania’s borders. Brett Marcy, spokesman for House Majority Leader Todd Eachus, D-Luzerne, said last
Holian said federal law does not state anything about the placement of toll facili- week the caucus is working on a bill that will contain elements of Rendell’s proposal.
ties. But one of the factors the federal government considers in weighing an applica- Tuma said all of the potential tolling options discussed by Holian could “be helpful
tion to the same program Pennsylvania applied to “is the state plan for implementing in the long run, but they are not immediate or short-term solutions to the funding
those tolls, taking into account local, regional and interstate travelers,” Holian said. needs.” CW

Dichter to leave post as Public Welfare Secretary


Pennsylvania Department of Public Programs, will become acting secretary Medicaid directors nationwide chosen years, Dichter’s primary role has been
Welfare Secretary Harriet Dichter will beginning Sept. 16. to be a fellow in the 2011 class of the in early childhood education, and she
resign her post, effective Sept. 15, to Nardone oversees Pennsylvania’s Medicaid Leadership Institute. served as the commonwealth’s first-ever
open the Washington, D.C., office of the Medicaid program, which serves more Dichter assumed the responsibility as Deputy Secretary of the Office of Child
First Five Years Fund, an early educa- than 2 million Pennsylvanians, and has Acting Secretary of the Pennsylvania Development and Early Learning for
tion advocacy organization. more than three decades of experience Department of Public Welfare at the the Departments of Public Welfare and
Gov. Ed Rendell has announced that in the health and human services field on beginning of 2010 and was unanimous- Education. CW
Michael Nardone, deputy secretary for the state and national level. ly confirmed as secretary by the state
DPW’s Office of Medical Assistance In June, Nardone was one of six Senate on April 20, 2010. In recent
September
SEPTEMBER 2010
2010 CAPITAL
CAPITAL WATCH
WATCH NEWS 11 5
news
advertorial

Policy Roundtable Spotlight


The PBC Policy Roundtable, like its national counterpart in Washington, is a forum in which CEOs meet on a peer-to-peer basis to formulate public
policy proposals to the most pressing issues of competitiveness. The Policy Roundtable provides senior managers the opportunity to interact exten-
sively with policymakers, policy experts, media, and other stakeholders; participate in policy evaluation; vote on long-term public policy strategy; and
guide policy education/advocacy efforts. Corporate Chairpersons, CEOs, COOs, CFOs, and Presidents (or the most senior person in Pennsylvania
for a firm with an out-of-state HQ), are invited to become members of the PBC Policy Roundtable.

CW: What are your major products/ than 2.8 million Medicare and Medicaid important to me that I continue to give
services? members handling over 20 million health back to the state and especially the
claims; up to one million enrollments; and Scranton area that gave me my start.
TMG Health provides services for a vari- 1.5 million service calls annually. Having said that, we’re running a for-
ety of government healthcare products profit business and so making sure that
including: Medicare Advantage; Medicare CW: How did you grow the firm? Pennsylvania has a competitive business
Supplement; Medicaid Managed Care; Part climate is very important to me.
D (drug) and Children’s Health Insurance During the first several years after the
plans. firm's founding, we overcame the chal- One of my priorities at the Pennsylvania
lenges of competition, healthcare regula- Business Council is the long-term devel-
We offer up to and including full business tion changes, and exponential growth to opment and application of a data analy-
process outsourcing (BPO) services which become the country’s leading BPO com- sis and benchmarking project that com-
include: managed care IS systems, data pany serving the Medicare and Medicaid pares Pennsylvania’s business climate to
management/reporting; enrollment and markets. that of other states. We believe policy-
John T. Tighe, III eligibility processing; premium billing and makers should measure on an annual
Founder & CEO reconciliation; claims processing; member Now we share the same challenges as other basis whether the actions the Common-
and provider call center services; printing firms — finding customers and finding wealth is taking are resulting in im-
TMG Health good employees to serve them.
and fulfillment; health risk screening, provement to its job creation climate.
A graduate of the University of Pittsburgh’s School of working aged and Part D COB surveys; We’re not going to become a stronger
Pharmacy, John T. Tighe III has played a pivotal role medical management system support and CW: How do you continue to innovate? state for job growth unless we make an
ensuring the people of this country receive quality consulting; and support marketing ser- honest assessment and publish a score-
health care. He began his career working for the vices. In 2008, I sold TMG Health to Health Care card of where we are relative to compet-
American Society of Health-Systems Pharmacists Service Corp. This move allowed TMG ing states and nations, and understand
(ASHP), National Association of Retail Druggists Health to remain its own entity while gain-
CW: Tell us a little bit about the history the direction in which we’re moving.
(NARD) and the Parenteral Drug Association (PDA).
of your firm? ing the resources and support of the fourth
In 1987, Tighe took over as newly elected Governor largest health insurer in the country. CW: Are there policy changes your
Robert Casey’s Secretary of Administration, the The idea to start TMG Health originated firm is advocating? If so, what and
youngest in the history of Pennsylvania. There, he co when I was working at Independence Blue TMG Health continues to reorganize itself how?
-founded the Pennsylvania Employee Benefit Trust Cross. I was responsible for the develop- in response to industry and regulatory
Fund (PEBTF), a $400 million fund that administers ment and operation of IBC’s Medicare and changes in order to continue its record of Our business is driven by healthcare
health care benefits for 330,000 active and retired Medicaid HMO businesses. I realized that quality services while strengthening its policy and insurance issues so that’s the
state employees and their dependents. He quickly role in improving the ability for Americans
there was a great opportunity in the indus- most important area of policy for us.
moved up to Deputy Chief of Staff and was the prime
staff architect of Pennsylvania's Children’s Health try for a BPO that specialized in govern- to get quality Medicare, Medicaid and Part TMG Health isn’t advocating policy
Insurance Program (CHIP), which served as a model ment healthcare administrative services. D services. change in healthcare, but always works
for the popular Federal program. hard to stay on top of the regulations to
The idea percolated in my head for six or CW: Where else does the firm have ensure the compliance of our firm and
Upon leaving the Governor’s office, Tighe worked at seven months. Finally, in 1988, with some business locations? our customers. We are working hard to
Independence Blue Cross (IBC) where he developed encouragement from my wife, I decided to monitor the implementation of the new
the nation’s first Medicare PPO health plan under a take the leap. I left Blue Cross, raised the We currently have four offices. Our corpo- healthcare reform law.
CMS demonstration program in 1997. He was also rate headquarters is located in King of
venture capital, and launched TMG Health.
responsible for the development and operation of
IBC’s Medicare and Medicaid HMO businesses. The “TMG” represents the initials of my Prussia, Pennsylvania and we have two TMG Health has established a relation-
wife and children. We set out to do the operations centers in Scranton and Dun- ship with the Centers for Medicare and
Tighe started TMG Health, Inc. in 1998, providing basics excellently and to make compliance more. We recently celebrated the one-year Medicaid Services (CMS) through years
Business Process Outsourcing (BPO) services to with government regulations easy for our anniversary of our latest office and call of experience. We will continue to en-
government healthcare plans. Today, TMG Health is clients. center in Amarillo, Texas which allows gage them to be sure we keep our many
the nation’s leading BPO company serving the Medi- TMG Health to remain operational across clients in compliance with the changing
care and Medicaid markets. The universal appeal and application of time zones and ensures the company’s rules and regulations.
this approach to “the basics” was soon quality control in the case of disaster re-
Through his career and community outreach efforts,
Tighe has dedicated his life to improving the health evident. We envisioned focusing on small- covery. CW: What are your expectations or
care sector, government programs and non-profit and medium-sized government health hopes in the next elections?
organizations. He has been a model for generosity plans, but with our first five or six clients, TMG Health also offers the exciting
within his own organization, bringing attention to each was bigger than the last, and we real- opportunity to many employees to work For the last 12 years that TMG Health
people in need, young and old, and volunteering with ized our system was applicable to the big from home. We have strong compliant has been in the business of government
his employees in the local community. In 2009, Tighe guys. We’ve been operating nationally standards with an efficient monitoring healthcare administration, I have seen
was elected Chairman of the Pennsylvania Business since 2003. system that provides the company and its various political landscapes and as a
Council. He is currently on the Board of Directors of
clients quality services while offering em- company, we have met all the chal-
the United Way of Lackawanna County, and served
on the Robert Wood Johnson Foundation’s National Today, TMG Health administers services ployees flexibility in their schedules. Many lenges presented as opportunities to
Advisory Committee for its new Communities in for more than 30 separate health plans and stay-at-home moms take advantage of this grow.
Charge initiative. This $16.8 million initiative provided insurers with members in all 50 states. career opportunity.
grants to support local planning and implementation This includes 14 Blue Cross Blue Shield . PBC’s affiliated political action commit-
of proposals for improving access to health care for plans; one of the largest PBMs for Part D CW: Would you invest more in Pennsyl- tee — PEG PAC — gives all of its
the uninsured. administration; the largest and fastest vania? If not, what has to change to im- members great insight to elections and
growing Special Needs Plans in the coun- prove Pennsylvania’s competitive busi- probable outcomes. I rely on the organi-
Tighe resides in Merion with his wife Mary Grace. His
son Tommy is currently attending Southern Methodist
try; and more than 125 retiree groups for ness climate? zation’s guidance to give my manage-
University in Dallas, Texas while his daughter Maggie Medicare Advantage, Part D, and Prescrip- ment team a sense of what the future
is pursuing a degree of her own from Tighes' alma tion Drug Plan products. Over the course I grew up in Pennsylvania and TMG holds for us.
mater, the University of Pittsburgh. of each year, TMG Health supports more Health has its roots in state funding. So it’s
6 news SEPTEMBER 2010 CAPITAL WATCH

PennDOT denies problems exist with device


used to catch speeders continued from page 1

“The manufacturer is aware of this designed, PennDOT publishes notice in that model number, he said. that are calibrated for three-foot spacing
problem, going so far as to tell officers via the Pennsylvania Bulletin that the device The manufacturer’s specifications for are in violation of the code?
the training manual to ‘avoid triggering is approved for use.” the wired ENRADD device included “No,” she responded, “Section 105.56(f)
in the middle range ... because you may Melton, however, said he sent the calibrating it assuming a five-foot clearly defers to the manufacturer’s
trigger off different points on the car,’” lab results only to YIS. PennDOT spacing between strips. The state code, guidelines in calibration and testing.”
Drack testified. “The problem, of course, would not comment on why it accepted in recognizing the original wired version, Klinger was asked in a subsequent
is that what is ‘middle range’ for one the lab results even though they were was written with a five-foot spacing in e-mail message that if the contention
vehicle is not ‘middle range’ for another.” submitted to the department by YIS mind, Drack said. that section 105.56(f) governed the main
Road unevenness and slight changes instead of ESI. The manufacturer apparently calibration of ENRADD was true, why
to vehicle height between the ENRADD PennDOT was asked if it could started calibrating using a three-foot would the earlier sections exist? Klinger
start and stop beams could also cause confirm whether the lab results were ever spacing wih the introduction of the was also asked whether PennDOT would
erroneous readings, he testified. reviewed for accuracy, and if so, whether wireless version, Drack said. The state go on the record to say it does not
PennDOT spokeswoman Danielle the person had the technical background code, however, was never amended to believe the earlier sections applied to the
Klinger said in a recent e-mail message to understand the results? PennDOT recognize this change, he said. ENRADD calibration?
to Capitolwire that PennDOT is “satisfied was also asked if the independent lab Drack, in his testimony to the committee, Klinger did not provide answers to
that when set up and operated as directed, results showed whether the ENRADD said, “If the calibrations currently being those particular questions in her final
the unit will perform as designed for the device would be accurate on state roads? done assume a three-foot spacing, then e-mail response, which ended with,
law enforcement officials who use them.” Klinger, in her e-mail response, wrote: this violation of the [state] code would “We have no further comment on this
Cowden said that, “if you use the unit “The Division Section Managers at the presumably invalidate all such ENRADD matter.”
wrong, you could have problems.” time or their staff would have received the calibrations and render the citations on The committee hearing in August
“If you use them improperly, you could test results and reviewed them or have which they were based invalid.” where Drack testified was mostly held
get a false or inaccurate reading,” he said. had them reviewed within the extent/ PennDOT, however, does not believe to hear from representatives of local
“All of these devices have a human factor limitation of Department expertise; that the calibrations being used now for police departments on the importance of
to them.” the Department reviews the results the wireless ENRADD devices are in allowing them to use radar.
He said that when his company sells for compliance with the appropriate violation of the state code. Elam Herr, assistant executive
ENRADD units to police departments, procedures; with regard to the actual Klinger pointed to section 105.56 9(f) director of the Pennsylvania Association
it requires that police officers receive science and technology, the Department of the code as PennDOT’s reasoning of Township Supervisors, and David
proper training on how to use them. relies on the expertise of the independent on why the current calibrations are not Eshbach, police chief for Springettsbury
“We as a manufacturer won’t sell them testing lab, but can certainly determine if a violation. The section states: “The Township in York County, were two that
without training,” Cowden said. the test results appear to be fundamentally calibration and testing of equipment, testified in favor of radar.
The independent lab that conducted faulty. The Division Section Managers timing strips and other devices actually Both were asked in subsequent
testing on the wireless ENRADD system who were responsible for authorizing used with a particular electronic interviews whether they were aware of
for PennDOT could not guarantee the publication of the approval of the device – nonradar – shall be performed accuracy problems with ENRADD?
that the device would be accurate on device in the Pennsylvania Bulletin are under specifications provided by the “No one indicated to me that there was
Pennsylvania roadways. no longer with the Department.” manufacturer of an approved device using an excessive problem with it,” Herr said.
Tom Melton, of Maryland firm She also wrote that PennDOT “is equipment specified by the manufacturer “But like anything, no matter how good
Electronic Services and Instrumentation, satisfied that the test, conducted in a or equivalent substitute equipment.” ENRADD is, radar is better. If somebody
said recently when he tested the wireless controlled, simulated environment, was Klinger wrote that the code “was not does not follow the directions to set it up,
ENRADD in 2003, it was inside a sufficient to demonstrate the device would intended to restrict the calibration and there could be problems, but no one indicated
laboratory and not on actual roads. perform according to specifications on testing to 5 foot spacing, especially where to us they had excessive problems.”
“It’s really a good system,” he said. “It the highways in the Commonwealth.” the manufacturer provides a different Eshbach said his department uses
could transmit the speed to a policeman When it was pointed out that Melton specification for calibration.” ENRADD, but “I don’t know of any
a quarter-mile down the road instead of could not guarantee the device would Section 105.56 (e) 2 (ii) of the code, issues with it. I’m not aware of any of the
them hiding in the bushes.” be accurate on state roads, Klinger only however, seems clear that the actual issues [Drack] brought up.”
PennDOT’s policy for having a wrote that PennDOT is satisfied with ENRADD device – the part that calculates Drack said during the hearing,
speed-timing device tested requires the test results for both the 1996 wired speeds - shall to be calibrated assuming however, that he believes many of the
the manufacturer to identify three version of ENRADD, and the 2003 a five-foot spacing. That section of the people who receive bad speeding tickets
independent labs. PennDOT then wireless kind. code states: “The elapsed time between end up paying them because they don’t
chooses the lab, and the manufacturer Drack pointed out to the committee the pulse on Outputs 1 and 2 is measured know how else to fight it.
pays to have the tests conducted. in August that the Pennsylvania Code by the ENRADD using the formula V x Herr said it would be cheaper for
The manufacturer, under PennDOT’s “is very clear that all ENRADD EJU-91 T = 3408. 3408 is the proper constant departments, however, to use radar than
policy, is required to provide a procedure devices must be calibrated assuming a for a 5-foot timing strip spacing.” ENRADD. The cost for a radar device
for the lab to test a particular device. five-foot spacing.” Using information from Drack, it costs about $2,000, while an ENRADD
The procedure for the ENRADD unit, ENRADD EJU-91 is the technical was pointed out in an e-mail message wireless device costs about $4,000.
Melton said, involved conducting tests name for the wireless speed-timing device to Klinger that calibrating other As for why the state doesn’t allow local
inside the ESI laboratory. as listed in the state code, according to components of the ENRADD device for police to use radar, Rafferty said in August
Klinger, in an e-mail message, wrote, Drack. However, the previous, wired a three-foot spacing would by default that one of the concerns lawmakers had
“The lab sends the results directly to version of the device went by the same calibrate the main ENRADD device for in the past is a fear that many small
PennDOT. If the lab results indicate model number in the code, as YIS a three-foot spacing. Klinger was asked communities would use radar to generate
the device operates accurately and as upgraded its creation but never changed again whether using ENRADD devices revenues via speed traps. CW

Creedon leaves state post; O’Reilly named as successor


Jim Creedon, secretary of the Department tration in 2002. He became DGS secre- Infrastructure Committee consistently ment and procurement, to public works
of General Services (DGS) has resigned tary in 2005. ranked Pennsylvania among the best projects, are running more efficiently
and is leaving to start a management “Jim Creedon has done an extraor- states for rapid progress in allocating its and are costing less,” Rendell said.
consulting firm in the Lehigh Valley. dinary job in leading Pennsylvania’s Recovery Act transportation funds. We O’Reilly has been in her post since
Rendell has appointed Elizabeth federal stimulus effort,” Gov. Ed appreciate the hard work he has done for October 2007 and served in the General
O’Reilly, currently the deputy secretary Rendell said in a statement. Since the Pennsylvania. Service’s Office of chief counsel since
for public works, to succeed Creedon. beginning of the stimulus initiative, “Under his leadership, state govern- 1987. CW
Creedon joined the Rendell adminis- the U.S. House Transportation and ment operations, from energy manage-
SEPTEMBER 2010 CAPITAL WATCH news 7
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and behavior of participants

State Police want amendments to bill to nab cop killers


By Jim Quirk, Capitolwire

Pennsylvania State Police are on board police would send out alerts to the media an officer. He said there are some cases officials to decide on when to issue the
with a proposed bill to catch cop killers and other outlets when a dangerous when police might not want the public alerts, he said he’s “comfortable” with that.
– as long as the legislation is amended criminal who killed or injured a police to know right away about a particular “I don’t want these things [alerts]
slightly. officer is at large. suspect because that could hinder the flashing on the screen like the daily lot-
A state police official told the House Costa said that if a suspect is “going to investigation. tery or something,” Costa said.
Judiciary Committee during a roundtable take on one of our guys, there’s no limit It would not be a good idea to turn to Bivens said state police already have
discussion some changes should be made of what they could do,” so people should the alert every time an incident involv- an alert system in place. “We do have
to a proposed bill to catch criminals who be alerted immediately. ing an officer occurs because that could the ability now to notify law enforce-
seriously injure or kill police officers. Information released to the public and de-sensitize the public to the system, ment [about an officer getting injured or
House Bill 2629, sponsored by Rep. media through the system would provide Bivens said. killed],” he said after the meeting. “But
Dom Costa, D-Allegheny, calls for creat- the suspect’s description, his last known He also said the system should not be we have not formalized it yet with local
ing a statewide system called Blue Alert. location and, if applicable, information called Blue Alert because many people departments.”
The system would assist federal, state about the suspect’s vehicle, according to would not know what it means. Instead, Bivens said local departments could
and local law enforcement authorities to the bill. it should be called something like the use the state police system to send out
capture suspects quickly that allegedly Maj. George Bivens, director of “Pennsylvania Officer Down Advisory alerts about suspects who kill or injure
killed or injured police officers. the state police Bureau of Criminal System,” Bivens said. police officers, “but we’re just looking to
The system would be similar to Amber Investigation, said the bill should be Costa, a former police investigator, formalize the process,” Bivens said.
Alert, a system police use to let the pub- amended so law enforcement agencies said he sees no problem with making the Committee Chairman Tom Caltagirone,
lic know when children are kidnapped or could decide whether to send out an alert suggested changes to the bill. D-Berks, said he’s hopeful the House
missing. Under the Blue Alert system, about a suspect who killed or injured Regarding allowing law enforcement passes the bill this session. CW
8 news SEPTEMBER 2010 CAPITAL WATCH

oooooooooooo

Campaign
2010
Neither candidate for governor is telling us
what they will do By Peter L. DeCoursey, Capitolwire

Two days after Democratic gubernato- enues later disapproved by the federal gov-
rial nominee Dan Onorato said “I’m not ernment. But that funding was for transpor-
raising income tax, I’m not raising the tation, not part of the general fund budget.
sales tax” if elected, his Republican rival Its loss has so far mostly resulted in
said he still had not ruled either out. cuts in planned funding for highways,
“He has refused to say he won’t raise roads, bridges and mass transit. Rendell
the sales or income taxes,” Attorney and some lawmakers have been trying to
General Tom Corbett, the Republican pass a bill to replace that funding.
nominee for governor said Friday, after So where are we, after all of this?
touring ASK Foods Inc. here. ASK is an Both Onorato and Corbett have said,
assembler of ready-to-eat foods for vari- even as they prepare next year to take
ous chains and groceries. over a budget that will be about $4 bil-
But after he was reminded of Onorato’s lion in the red, that they will not raise
remarks, Corbett conceded that the income or sales taxes. Both say they will
only tax Onorato supports and Corbett make tough cuts, but neither will say
opposes, “that I can name,” is a proposed what they will cut. And Corbett won’t
tax on national gas extraction. even commit to cutting his own office
Onorato has also said repeatedly he budget by 2 percent this year.
would sign a state tobacco tax on cigars Basically, both candidates for gover-
and smokeless tobacco, another proposed nor, on taxes and fees, are playing “I’ll
levy Corbett opposes. Corbett also said Tell You Later.”
he had signed the Americans for Tax Onorato is saying he won’t raise taxes
Reform pledge, and again challenged most legislative leaders say he will have
Onorato to do the same. to raise. Corbett is pledging he won’t
Onorato has said the proposed natu- Dan Onorato Tom Corbett raise taxes most legislative leaders say
ral gas extraction levy is important to he will have to raise.
preserve the state’s environment, and to cuts if he was elected, Corbett also said make “tough cuts in state government.” And each is accurately saying the
ameliorate the effects on drilling on the those tax cuts would not come in his first But when asked if he had yet agreed other will raise taxes as governor that he
environment and communities where it year, when he would instead be cutting to Gov. Ed Rendell’s request to cut his will not admit to as a candidate.
takes place. the state budget. budget by 1.9 percent, along with other And Corbett keeps making a mix
Corbett said taxing “a brand new If elected, Corbett promised to cut the independent agencies and many state of minor errors on topics like his own
industry” would ensure fewer job results following business taxes: departments, Corbett at first misunder- position and his office budget that are
from drilling in Pennsylvania, and that it • The corporate net income tax, stood. surprising at this stage in the race.
showed unemployment would continue from 9.9 percent to 6.9 percent; He said he would abide by whatever While the more-disciplined Onorato
to rise under Onorato. budget the Legislature passed. Then, says very little, very often, and smiles
Onorato replies to such criticisms that • Eliminating restrictions on the told the Legislature had no plans to confidently, while making fewer errors.
unemployment during his tenure run- net-operating loss carry-forward act on this set of cuts, that Rendell had Last week, Onorato said to reporters
ning the state’s second largest county provision, which allows businesses frozen 1.9 percent of the budget of many in a conference call while trying to slam
is consistently better than the state or to claim early losses against departments, and asked the independent Corbett for a property tax hike vote as
national average. later profits; elected officials and independent agen- a Shaler Twp. Commissioner 22 years
Corbett also said “I did not explain • Phase out the business assets levy cies to do the same, Corbett said: “Our ago: “I don’t sign pledges as political
myself fully” or make himself clear in an and change it to taxing only sales, goal would be to meet that, but I am not gimmicks. But I’m telling you verbally,
interview with KDKA-TV this spring not equipment or property; making any pledge” to do so. yeah, you’re hearing me say that - I’m
about whether his anti-tax pledge includ- • Eliminating the state Corbett also attacked Rendell for rely- not raising income tax, I’m not raising
ed fees. In that interview, Corbett said inheritance tax. ing on budget funding that did not later the sales tax.”
the pledge did include fees. In July, he materialize. So he won’t pledge it, but he will say
said it did not, and his campaign spokes- Asked how many hundreds of mil- “He has done this now in two budgets,” it? And Corbett and his staff have to keep
man Kevin Harley said it did not. lions of dollars it would cost to make said Corbett. He referred to the cur- correcting what he said.
Corbett said he was sorry if anyone his proposed tax cuts, Corbett declined rent budget, that relied on $850 million Right now, how could a voter could
got the wrong impression, but that he to answer. in then-yet-be-approved federal fund- judge these two?
was not forestalled by the pledge or any Corbett said Onorato was responsible ing. When a lesser amount of funding This race could get very interesting
campaign promise not to raise state fees. for the largest tax increase in Allegheny arrived, the state had to cut $285 million in the fall, if Corbett can’t stop bobbling
He added: “Do we have any intention of County history, with levies he backed on from its budget, Corbett noted. easy balls, and Onorato can figure out
increasing the fees? No.” rental cars and alcohol-by-the-drink. Corbett also criticized Rendell, saying a theme, because most of his summer
After promising the audience of senior Corbett also told the audience the in 2007 that” the state budget” that year has been taking effective pot-shots at
staff at ASK various major business tax next governor needed to be ready to depended on $450 million in tolling rev- Corbett’s various errors. CW
SEPTEMBER 2010 CAPITAL WATCH news 9

oooooooooooo
Onorato pledges to redirect Corbett’s first TV ad of fall
natural gas tax to match his campaign, defends tax pledge,
funding plan By Laura Olson, Capitolwire attacks doubters By Peter L. DeCoursey, Capitolwire

If the natural gas extraction tax expected to be A web ad by Democratic gubernatorial nominee Dan
approved this fall doesn’t fully fund Democratic guber- Onorato’s campaign is being answered by the first
natorial nominee Dan Onorato’s priorities, his first broadcast TV ad of the campaign by the Republican
move as governor will be to redirect those dollars. nominee, Attorney General Tom Corbett.
Onorato reiterated during a news conference that he While mere thousands saw Onorato’s campaign ad,
proposes using revenue from a tax on Marcellus Shale which claimed “Tom Corbett’s Republican allies don’t
drilling to restore recent cuts to the Department of believe he can keep his budget promises,” millions of
Environmental Protection, create drilling impact Pennsylvanians will see Corbett’s response ad as their
funds for local infrastructure and environmental introduction to this issue.
remediation, and to provide a Growing Greener III Speaking pugnaciously to the camera, in an ad released
fund for environmental programs. statewide and already airing Tuesday morning, Corbett
He also said his opponent, Republican Attorney says: “When I announced my pledge that as governor, I
General Tom Corbett, who has opposed a levy on natural would oppose all new tax increases, the response from
gas, would not be able to afford to regulate the drilling the politicians was quite predictable. Ed Rendell said I
industry and get timely permits to industry without one. should have my head examined. Dan Onorato called any
Previous extraction tax plans from Gov. Ed Rendell Dan Onorato promise to not raise taxes ‘a gimmick.’” Tom Corbett
and House Democrats have divided potential dollars The ad then pictures the heads of Gov. Ed Rendell
among the state’s general fund, local governments, and Onorato in a “Hollywood Squares” type of
and a variety of environmental programs. arrangement, then shows black-and-white pictures of politicians with cigars in a
Legislative leaders have been meeting over the summer to work on a compro- smoke-filled room, while Corbett continues speaking.
mise tax plan that could be passed by their self-imposed deadline of Oct. 1. If the “The politicians were just as skeptical when I promised to fight corruption in
revenue distribution in that approved tax does not include Onorato’s proposed Pennsylvania, and boy, were they wrong. So if any of them truly believe we can’t
funding areas, he said he would swiftly propose changes after taking office. stop Harrisburg’s reckless spending and high taxes, just watch me.”
“The first thing I will do as governor, in the first days, first week in office, I will Onorato spokesman Brian Herman responded: “Tom Corbett can make all the
have bills in front of the House and Senate redirecting where I think the money promises he wants in a TV ad, but his record speaks for itself. He has requested
should be spent, based on the plan I just told you,” Onorato said. more tax dollars for his office every year since being elected Attorney General,
Senate President Pro Tem Joe Scarnati, R-Jefferson, said that approach from a refuses to cut his current office budget by just two percent and the one time he
new governor would ignore the work that has been underway to craft an equitable voted on a budget he chose to raise taxes rather than cut spending.
tax: “Every governor has his priorities and prerogatives, and nothing ever says we “He contradicts himself at every turn, suggesting that he doesn’t even under-
get every distribution exactly right. stand his own economic policies; but, the one area where he is consistent is his
“But when we have all of the stakeholders at the table as we do now, … to try support for big business over average Pennsylvanians. … Dan Onorato is the only
and undo that, that’s not good governing,” Scarnati said. candidate with proven experience turning around an economy, controlling spend-
Onorato said he believes lawmakers should continue their work this fall, but ing and balancing a budget without raising property taxes. Tom Corbett named
that he “will make moves” after the Nov. 2 election if he wins “based on what they his ad “Predictable” – an appropriate description for thirty seconds of the same
did or did not do.” empty promises he lacks the experience to fulfill.”
Onorato declined to say how much he would like to spend on his three initia- The Onorato web ad attacked Corbett for having to correct himself on his
tives, saying that it will depend on how much gas is being produced. position on taxes, on whether he would raise state fees if elected, and noted that
Rendell said there has been “significant progress in the House,” and that he Republicans lawmakers have publicly questioned if he can balance the state budget
expects that chamber to pass a bill shortly after they return to session on Sept. without a tax hike, as he has pledged.
13. He said there have been talks and progress with the Senate, but did not say While Corbett pictures and names only Rendell and Onorato among his tax-
the Senate had agreed to assess the higher rate and higher state budget share for pledge critics, their ranks also include Senate Majority Leader Dominic Pileggi,
the tax sought by Rendell and House Democrats. R-Delaware, and Senate Transportation Committee Chairman John Rafferty,
Rendell chief of staff Steve Crawford said he met with Scarnati, “and there was prog- R-Montgomery.
ress. I believe they are going to keep their commitment” of passing a tax by Oct. 1. Asked if Rafferty and Pileggi were meant to be represented by the pols in the
As to whether Scarnati and his caucus would back a rate higher than the lowest- smoke-filled room who questioned Corbett’s commitment to fighting corruption
in-the-nation effective rates of Texas, Arkansas and Louisiana, Crawford said he and taxes, Corbett campaign spokesman Kevin Harley did not reply.
was optimistic they would, based on his talk with Scarnati. The ad accurately presents the tax-pledge criticisms Rendell and Onorato
Scarnati said they have not committed to anything except “moving a product made, but leaves out what Pileggi and Rafferty said.
forward to the governor by Oct. 1.” In June, asked if Corbett could live up to that no-tax-hike pledge, Pileggi said
He said his caucus would like to see “a fair tax and an equitable tax” that at the Pennsylvania Press Club: “It will be an extremely challenging year next
addresses concerns from the drilling industry and from local and environmental year, and to get through that year without any sort of a tax increase,” Pileggi’s
groups. “The goal is a tax rate that doesn’t prohibit the industry growing and voice trailed off, then said: “Maybe that’s the next major policy announcement that
investing here,” Scarnati said. General Corbett will be making to show us how we do that. He hasn’t shared it
Despite the on-going discussions about a potential tax rate and distribution, with us in this budget cycle.
the Senate will wait to see what the House passes before moving any legislation, “I’m hoping that he has some ideas. I don’t see how he can do it, frankly.”
Scarnati said. When Rafferty was asked last week if transportation tax hikes had to be enacted
“I think a compromise could be in sight but, of course, nothing’s a deal until this year while Rendell remained governor, because of Corbett’s pledge, Rafferty,
everything’s a deal,” Scarnati said. “It could get derailed by some who want a who believes some transportation tax hikes may be necessary, said when it comes
higher tax, by some who want a lower tax. There are a lot of forces out there to to such pledges, he has “heard of people run for office before and get in and say,
derail this process.” ‘Jeez, it’s different than what I ever envisioned it to be.’”
Scarnati declined to discuss any specifics of the current discussions, but he So while Corbett’s ad addresses “politicians” in general who don’t believe in Corbett’s
and other Senate Republican leaders have cited states like Arkansas as examples tax pledge, it actually is an attempt to inoculate him from the charge of Onorato’s cam-
of what could be acceptable. Arkansas has a lower tax rate than those proposed paign and web ad: that even Republicans don’t believe his campaign promises.
so far in Pennsylvania, and offers a steep discount to drillers during a well’s first So by picturing Onorato and Rendell as the doubting politicians, Corbett is
years of production. dismissing this as a partisan political jab voters will ignore. That is harder to do
Onorato has said he too would be open to discussing various phase-in or capital when you face up to the fact that Rafferty and Pileggi, hardly Rendell fans, have
recovery options in order to craft a “competitive” rate. During Wednesday’s news said similar things.
conference, he said earlier references to Arkansas and other states were examples, By making the two Democrats into poster boys for doubting Corbett, the
and he has not committed to any particular phase-in on the tax rate. Corbett camp is trying to take the sting out of the forthcoming ad when the
“It’s not just the rate itself, but it’s about how we implement it and what’s the way Onorato team trots out Pileggi and Rafferty’s quotes.
we can raise revenues to do what I’m talking about and let the industry also grow While it seems like an odd move to respond to a web ad with a statewide ad, it
at a reasonable rate,” Onorato said. see onorato page 15 is actually smart. see corbett page 15
10 feature SEPTEMBER 2010 CAPITAL WATCH

Contrary
to the old
Cliché
you can go home again By Deena C. Malley

September marks a homecoming for the Pennsylvania Association of Community Bankers as it welcomes its new leader,
Nick DiFrancesco, as its president and chief operating officer. Well-regarded throughout the capital region for being
part of a successful trio of commissioners who led Dauphin County through some difficult days, a lesser known fact is
DiFrancesco had a very successful nine year career with the organization he will now lead.
For Frank Pinto, the highly respected
and long time leader of PACB, the choice
was obvious. “Nick is a natural fit. We
conducted a nationwide search for this
position and there were a lot of high
powered people from the political arena
who applied as well as others who all
had exceptional skills and credentials,”
Pinto explained. “For me, it was more
about maintaining the culture and family
atmosphere of this organization. Nick
was the obvious choice. He conducts
himself with integrity and respect in
every aspect of his life whether it’s with
his family or his career.”
Pinto will remain as the organization’s
chief executive officer for one year, but
makes it clear that he is there to just be a
guide and a mentor and Nick is in charge
from day one. Looking up to Pinto as a
mentor is nothing new for DiFrancesco.
“I remember when I first worked here
and I was a little younger then. It was the
days when I was still filled with a lot of
fire and vinegar and I’d get all upset over
an issue or a letter someone wrote and I’d
fire back a response and take it into Frank
for his approval. He would read it, sit
back in his chair and say, “Let’s just see Frank Pinto says his successor Nick DiFrancesco is a “natural fit” for the job.
how this looks in a few days.” Sure enough
a few days later, my outlook would be a his experience having a swimming change with it,” Pinto states. that Pinto comments, “who knows I
little different,” explained DiFrancesco. pool installed at his home would solicit Already leading by example, might even get one.” While the new
“I learned that patience and sometimes comments with such a diverse crowd of DiFrancesco is the epitome of a mobile technologies may change and help
taking a step back is the best approach.” people all with different views and filled leader. He carries around a black advance the association, DiFrancesco
DiFrancesco will bring other lessons with suggestions and good ideas. backpack, which he calls his office. It is agrees with Pinto that one thing that will
he has learned along the way to his Social media infusion into the PACB fully equipped for the on-the go, tech never change is the importance and value
new role. One such lesson will be one is one of his top priorities. DiFrancesco savvy executive. A peek inside and you of long-term relationships.
he learned while on the campaign trail sees the opportunity to connect with will find his laptop, cables, cell phones, “There are a lot of new faces in the
this spring exploring a bid for lieutenant and communicate with everyone in his and his favorite gadget - his iPad. legislature since I worked here nine years
governor in the Republican primary. He members’ organizations from the bank Pulling out his iPad, DiFrancesco ago,” said DiFrancesco. Building these
explains that during that time is when president down to the teller. He explains gets exuberant talking about how he relationships are key to any association
he first started his blog and started that in the past doing a printed publication uses it throughout his day. He starts and DiFrancesco hopes to maintain the
connecting with people of Facebook. would rely on people passing it through his day with his favorite app, The New solid reputation of PACB.
“My blog gave me the opportunity the organization and sometimes it might York Times, and reads this as well as “Most elected officials understand
to really sit down and share who I am never get past the president’s desk. other international, national and local small business is the engine of our
and why I believe what I believe. It DiFrancesco also sees the power social publications. His calendar is synced and economy and community banks help
really helped me connect with people,” media will have for members to connect is updated anytime he or his staff adds those small businesses grow and expand
said DiFrancesco. His experience using and share ideas unlike ever before. Pinto or changes an appointment. Even at in every community across our state,”
Facebook was eye opening. What agrees with this assessment. “Technology meetings, it has become his replacement DiFrancesco said. “We need to make
impressed him most was that posting will play a big role going forward. Our for pen and paper. sure small businesses do not continue to
anything from a policy position to sharing membership is changing and we have to The excitement is so contagious decline in this economy.” CW
SEPTEMBER 2010 CAPITAL WATCH
Feature 11

The Lafayette Club:


fine dining • great service By Jackie Goodwin

The building that houses the Lafayette Club in York, PA is non-descript on the outside but elegant on the inside. It’s just one
of those historic looking old buildings that line many of the downtown streets. So if you’re new to the area or if don’t know
about the club, then you might not have a clue that one of the best places to have a romantic dinner is located there.
While The Lafayette Club was orga- Marquis de Lafayette proposed a toast Adding to the mystique are rumors their guests with the best dining experi-
nized in 1858, its life as an eating, drink- “to our Commander-in-Chief General of Stuart’s ghost, a “gentlemen’s gentle- ence possible.
ing and club establishment was formed Washington. May he remain at the head men” in past life—who lived and worked “We carefully selected affordable
in late 1898 by prominent men of the of the army until independence is won.” at the hotel upstairs. In addition to wines and spirits, and have created a
community - county judges, bankers, This effectively ended any threat to sightings of Stuart, waiters and chefs diverse menu which can be paired with
industrialists, and merchants - as an General Washington. at the Lafayette Club also believe the our wine list, “says Lincoln. “If you
exclusive social club. In early 1912, the Today, the Lafayette Club continues establishment is haunted by a young girl have any dietary restrictions or special
members of the Lafayette Club pur- its tradition as the premier business club who reportedly calls “hello” down the requests, we are happy to accommodate
chased a federal period residence one of York, offering fine food, beverage and upstairs hallway. your needs.”
block east of Center Square at 59 East fellowship to ladies and gentlemen in a While the Lafayette Club is an official The Lafayette Veal, thin slices of veal
Market Street, York, PA. congenial atmosphere. The four-story club, requiring paid membership, the stuffed with lobster and crab salad rolled
Although there is no record of how clubhouse offers its members and guests dinning room is available to non-mem- and baked, served with a golden truffled
the members decided on the name an outstanding facility. Features include bers and requires a 24-hour advance res- saffron buerre fondue is excellent. Paired
Lafayette Club, there is reason to a formal parlor, reading room, main ervation for two or more. Executive Chef with a glass of Domaine Trois Colombes
believe that it comes from the Conway dining room with fireplace and stained John Stull, Chef Andrew Barnes, and Les Rameaux Chardonnay 2007 and you
Cabal plot to depose General George glass windows, and a rich wood paneled General Manager Edward Lincoln, Jr. have the perfect duet.
Washington. At a dinner in York given tavern/grille room with painted murals are here to fulfill all your dining needs, The Lafayette Club, 59 East Market
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Washington as Commander-in-Chief, the Lafayette’s final visit. Flamé and are committed to providing www.lafayetteclub.net
12 OPINION SEPTEMBER 2010 CAPITAL WATCH

Let’s re-evaluate the way we approach local


government By Dennis Yablonsky

Many of Pennsylvania’s municipal laws larly sized communities with fragmented merger process.
are based on a 100 year old model of service delivery. The Commonwealth For municipalities that want to improve
local government that has become dated, ought to give municipalities tools that efficiency and effectiveness through con-
inflexible and uncompetitive and pre- make exploration of such governmen- solidation, but do not want to be stuck
vents municipal leaders from approach- tal improvements less difficult and time with one of the existing forms of munici-
ing problems in innovative and better consuming. pal government, the answer is to design
ways. These laws date to before inter- The situation we have now is that a home rule government that fits their
state highways, broadcast TV, computers when citizens decide to change the way needs. Moving to a home rule govern-
and the internet. Life has changed a lot they are governed at the local level – to ment requires several additional years of
since the early 1900’s. It is high time for exercise their local control over their government study, deliberation and cost.
us to re-evaluate the Commonwealth’s governments – our state laws limit their This puts additional, sometimes insur-
way of approaching local government ability to create the better future they mountable time pressure, on civic leaders
and the critical services that they deliver envision for themselves and their fami- willing to volunteer their time and ener-
to citizens across Pennsylvania. lies. Citizens are ready to change but gy in municipal affairs. SB 1429 clarifies
The recent global economic down- they cannot get the change they want in the authority of municipalities to vote on
turn, tax base losses and crushing legacy a straightforward or timely manner. New adoption of a consolidation or merger Dennis Yablonsky
health care and pension liabilities strain approaches are needed to help munici- and adoption of a home rule charter in
the financial capacity of many local gov- palities exercise local control over their the same ballot. These are voluntary efficiency and effectiveness, and thus
ernments. Pennsylvania municipalities governments. This requires changes to local actions. SB 1429 strengthens and hold down taxes and improve the local
are facing real financial challenges and existing laws. clarifies local control and municipal self- environment for business. Municipal
need new tools to meet them. Four out Several years ago, the State Planning determination. mergers or consolidations cut costs and
of ten Pennsylvania residents live in Board took a detailed look at state laws SB 1429 also grants municipalities improve services, and Home Rule makes
a financially stressed municipality. An and policies governing municipalities greater freedom of choice in how they government work more smoothly and
analysis by the Pennsylvania Economy and brought forward a series of carefully initiate consolidation or merger, replaces appropriately for local conditions.
League of Southwestern Pennsylvania considered recommendations. These rec- vague timeframes with specific ones and These changes represent the ultimate
(PELSW) has shown that this distress ommendations will help municipalities provides a clearer transition process. in local control – these amendments
is not limited to the urban areas around adapt and thrive in the years ahead. The Allegheny Conference on would assist local communities who have
Philadelphia and Pittsburgh, but rather Though we support all measures pro- Community Development, the Greater already decided to change their gov-
can be found in every corner of the state. posed by the Board, we believe SB 1429 Pittsburgh Chamber of Commerce and ernments and build a different future
It is not a localized issue. is in the best position for movement by the Pennsylvania Economy League of together – to get on the road to that
But the situation is not intractable, the legislature right now. Southwestern Pennsylvania along with future more quickly and effectively. With
provided Pennsylvania municipalities are SB 1429 amends the Merger and a dozen other state and local chambers this legislation municipalities will have
given the tools necessary to tackle the Consolidation Act. Enacted in 1994, the of commerce, public policy and research new tools to work through challenges
problems. PELSW benchmarking data Act provides legislative direction for organizations, local government asso- such as fiscal stress and expanding ser-
suggests that municipalities that have voluntary consolidation and merger of ciations, and young professional orga- vice demands. CW
integrated functions spend less per capi- municipalities. SB 1429 adds flexibil- nizations support government reforms Dennis Yablonsky is CEO of the Allegheny
ta on a range of core services than simi- ity and clarity to the consolidation or such as SB 1429 because they promote Conference on Community Development.

Ruling the world in Jefferson County By Deena C. Malley

Fresh out of college as a young journal- reading the posts and comments about technologically advanced?
ist, I was sent to cover the Indiana Coun- the trip. First, there was the usual com- What if the state actually helped these
ty annual prayer breakfast. The idea plaining about having to travel over hill areas get not only high speed internet ac-
behind it was to was to bring together and dale to get there. Quel dommage you cess but the equipment and training need-
the area’s business, political and religious get paid to golf as part of your job. Have ed to be more competitive in a world that
leaders to gather and work collectively to you not noticed or heard of the millions is powered by information technology?
achieve greater success for the county. of people who are unemployed? The bright light of economic devel-
Luckily for me, the speaker that year Putting all that to the side, the remarks opment would shine so brightly on this
was Norman Vincent Peale. World re- quickly turned to snide quips about the state that its beam would blind us all.
nowned for his book, the Power of Positive area’s lack of internet access and how the Pennsylvania would become so attrac-
Thinking, I can still remember this small people are so backward they probably did tive to companies willing to invest in a
statured man with a big voice that echoed not even own a computer. trained and advanced workforce even ru-
throughout the conference room as he Huh. All my joy was gone now. ral Pennsylvanians that live in areas like
declared, “Thinkers Rule the World.” While I will be the first to admit maybe Jefferson County would have equal foot-
This memory came to mind a few the area does not have the frills of Pitts- ing at taking a bite of the economic de-
weeks ago while I was perusing social burgh, Philadelphia or even Harrisburg, velopment apple. Imagine the growth.
media updates and noticed a number of that does not mean it is less. And it is Look folks, there is nothing greater
Harrisburg folks were heading to Jeffer- true that many people leave in pursuit of and more empowering than giving peo-
son County for a golf outing in DuBois. a bigger life and bigger dreams, includ- ple access to the world’s most powerful
It caught my eye having been raised in ing myself. knowledge base and giving them the
neighboring Punxsutawney. So I thought back to that prayer break- tools they need to make a better living
Being one who is a big believer that fast many years ago and wondered what Mr. for their families.
policy makers and policy influencers Peale would have to say about all of this. So the next time, all you folks who Deena C. Malley
need to spend more time in other parts of My bet is he would advise a big change feel burdened or put upon to make
Pennsylvania than just Harrisburg, I was in thinking. the long arduous journey to Jefferson Deena C. Malley is a technology and
excited to see so many people making the Can you imagine how changed Penn- County, please stay home. We only business consultant with more than 20 years
trek to my old stomping grounds. sylvania would be if people would stop want Thinkers, because Thinkers Rule experience. Her website can be found at
My joy soon turned to disappointment poking fun at those areas that are less the World. CW www.deenamalley.com.
SEPTEMBER 2010 CAPITAL WATCH
OPINION 13

Conserve aquatic resources with severance tax


By John A. Arway, Executive Director

If I were still in school and had to write Most people do not realize that the Marcellus gas well development projects
a “How I Spent My Summer Vacation” Fish and Boat Commission relies almost and, perhaps even more importantly,
essay, the story would begin and end entirely on fishing licenses, boat registra- to get into the field to help companies
with the Marcellus shale severance tax. tions, and federal funding tied to fishing design and implement their projects in
Since the General Assembly and and boating to pay for everything we do. ways that have the least impact on our
Governor expressed their intent to enact This includes trying to keep pace and Commonwealth’s natural resources.
a severance tax with a portion to be stay ahead of the curve on the current We are glad that DEP has added staff
allocated to “environmental initiatives” and projected impacts of Marcellus shale to deal with the challenges of Marcellus
as part of the FY 2009-10 budget deal, I development to fishing, boating, and the development, and we support any efforts
have been traveling the Commonwealth resources we are entrusted to protect. to get them and other agencies the
explaining the Pennsylvania Fish and We want to help the industry protect funding and staff they need to do their
Boat Commission’s (PFBC) role with our waters and habitats and comply with jobs. Without a legislative change, the
Marcellus. This message includes the the environmental laws that the General Commission does not have the author-
need to dedicate a portion of severance Assembly promulgates. Industry repre- ity to charge fees to support the work
tax proceeds to the Commission to help sentatives have told us that they would we do to assist gas companies and other
us ensure that this incredible resource is welcome the chance to work more pro- developers in reviewing and implement-
developed with as little impact as pos- actively with us in areas such as avoiding ing their projects in ways that pro-
sible on the Commonwealth’s aquatic sensitive rattlesnake habitats, insuring tect, conserve, and enhance our natural
resources and fishing and boating rec- water quality protection for sensitive resources.
reation. Everywhere I go – whether it aquatic life uses, and avoiding Exceptional If we received a portion of a sever- John Arway
is with newspaper editorial boards or an Value wetlands. Unfortunately, we sim- ance tax, we could take a collaborative
evening meeting of a local fishing club – ply do not have the resources (staff and approach with both the industry and To that end, we ask the General
I explain that the Commission is about a funding) to adequately and proactively the other agencies that are reviewing Assembly and the Governor to live up
lot more than just stocking trout. assist the industry, DEP, and the River and advising on projects. Ultimately, to the promise they made at the begin-
In 1909, the General Assembly passed Basin Commissions with controlling the we would like to have Commission staff ning of their summer vacation to enact
a law forbidding the emptying of any impacts of Marcellus development. in position to spend the necessary time a severance tax by October 1, allocate
waste deleterious to fish into any waters Good fishing requires healthy func- reviewing and commenting on projects, a portion of severance tax proceeds
of the Commonwealth and assigned the tioning ecosystems comprised of a wide working in the field with developers and to conservation, and dedicate fund-
responsibility to enforce that law to the diversity of aquatic organisms, and other agencies, and enforcing the water ing to the Pennsylvania Fish and Boat
PFBC. Commission staff work daily our staff review thousands of permit pollution laws of the Commonwealth to Commission to make sure that natural
with Department of Environmental applications to prevent and minimize make sure our resources are protected. gas is developed with as little impact
Protection (DEP) staff to try to insure the impacts to species that comprise I truly believe that the public expect as possible to aquatic resources, fishing,
that fish and aquatic life uses of streams those communities. We just do not have that service from us, and the resources and boating. CW
are protected before DEP issues drilling enough people or enough hours in a day under our jurisdiction depend upon it to John A. Arway is Executive Director of the
permits for Marcellus wells. to adequately keep up with the volume of survive. Pennsylvania Fish and Boat Commission.
14 editorial SEPTEMBER 2010 CAPITAL WATCH

Stay Informed, editorial

Sometimes you can’t see


Subscribe Today! the forest for the trees
If you listen to the conversations around you in restaurants and bars, you can figure
out pretty quickly that people have no idea just how big government really is in the
Capital Watch United States. If they did have a clue, they wouldn’t spend so much time complain-
provides me ing about why the cost of government can’t be cut significantly. As Pogo, the near-
forgotten 1960s comic strip possum from the pen of the late Walt Kelly said: “We
with what I need have met the enemy and he is us.”
All this became crystal clear late last month when USA Today published a story
to know about the about the federal government reaching a new milestone: 50 million Americans are now
receiving Medicaid benefits. Sure, this is a commentary about the state of the economy
inner workings of and perhaps a statement about why Obamacare is a good idea, not a bad one. But it
also brings home the realization that one in six Americans is now already covered by
state government government health care. When you add the other 50 million who are mandated as eli-
gible for Medicare, the OTHER government health care plan, you are up to 100 million
without having Americans – just about one out of every three men, women and children.
to be there. All those people you overheard in restaurants talking about Obama pushing social-
ized medicine? Guess what, for all intents and purposes, that horse already has left
the barn – although, in the true American way – we run it in a pretty haphazard and
fragmented way.
This caused us to wonder about just how many other Americans get government
checks of some kind or other each month – which led us to our trusty computer, the
Wikis and the U.S. Census from which we synthesized the following table (rounding
up numbers to the nearest thousand for those of us possessing only the normal number
of fingers and toes):

AMERICANS RECEIVING GOVERNMENT CHECKS MONTHLY

Federal civilian work force................................................................ 2,747,000


ORDER NOW BY VISITING CAPITAL-WATCH.COM Active duty military............................................................................ 1,478,000
717.233.0109 (x115) Military reserve................................................................................... 1,458,500
State and local payroll (including public education)................... 3,818,000
State/local part-time payroll............................................................ 1,457,000

YES! Send me 12 Issues of Capital Watch


for this low, low price of $9.60!
Subscribe online at www.capital-watch.com using offer CW901
Social Security..................................................................................... 58,500,000
Medicaid............................................................................................... 50,000,000
TOTAL.................................................................................................. 119,400,000

Name Estimated U.S. population................................................................. 306,000,000


Estimated U.S. active work force..................................................... 154,000,000
Address

Apt. (or Office) Stay tuned: we haven’t figured out the numbers yet for Pennsylvania specifically,
but we thought it would make your next barstool debate more productive if you car-
ried with you this little table printed above.
City/State/Zip It doesn’t prove much of anything other than just how big government already is
in our daily lives – and it suggests that it would be very difficult (and very painful) if
Telephone (Home) we were just to run off willy-nilly cutting out programs and services. These numbers
above don’t even take into consideration the number of paychecks that are partially
or wholly dependent on local, state or federal government funding – like the weapons
(Office) and armaments industry. Also not included are government-related checks like those
drawing down from federal, state, local and military pension plans.
Email We’re not passing judgment whether this is right or wrong. It is what it is.
Somebody you know – likely somebody close to you or even you, yourself – is a ben-
eficiary of the government. Human nature dictates that most of us would respond
Payment Enclosed Please Bill Me Later to this realization with, “Yeah, but I earn my check” or “I contributed to that pension
plan” or “I’m getting a lot less than most people and I haven’t had a cost-of-living
increase in years. I’m overdue.”
Our main point is – if we have a main point other than providing you with factoids
for your use in your next barroom debate – is that those who propose drastic cuts in
C/O Benchmark Group Media government spending just don’t realize how many of their friends and family they
Attn: David Fitzkee will be hurting (and maybe even themselves).
3400 N 6th St Sometimes, you can’t see the forest for the trees – in this case, the trees cut down
Harrisburg, PA 17110 each month to make paper for all the government checks going out to people. CW
SEPTEMBER 2010 CAPITAL WATCH
news 15

Corbett’s first TV ad of fall campaign, defends tax pledge, attacks doubters


continued from page 9
It allows Corbett to boast about his and I don’t think they can back it up, is ad. And if Pileggi or Rafferty were pub- if any of them truly believe we can’t stop
pledge, imply that Onorato will raise when Corbett says believe him on taxes licly skeptical about Corbett’s integrity Harrisburg’s reckless spending and high
taxes, and link Onorato to the extremely because “the politicians” doubted him on or investigations or commitment to cor- taxes, just watch me,” he is snarling that as
unpopular Rendell. Right now, if Rendell corruption-probing too. ruption probes, I never heard it, and no much at Republican House and Senate mem-
touted kindness to animals, three-fifths of He says in the ad: “The politicians one I know has. bers who think what Pileggi and Rafferty
the state would at least consider kicking were just as skeptical when I promised I asked Harley also for any quotes by said, as he is at Rendell and Onorato.
their cat. Still popular in southeastern to fight corruption in Pennsylvania, and those four that back up the “politicians It is a skillful ad, and in that last topic
Pennsylvania, he is radioactive in the rest boy, were they wrong.” were just as skeptical” claim. Or quotes pivot, an ad that stretches the facts to
of the state, according to poll after poll. Well, of the four politicians who by any other politicians to back up that portray Corbett as Eliot Ness.
So this ad at least tries to muddy are out there publicly raising doubts claim, from before Corbett started the Let the fall campaign begin. And we
the waters before an Onorato “even the about his tax pledge – Rendell, Pileggi, prosecutions or just after. will see if this attempt to inoculate
Republicans don’t believe Tom Corbett” Onorato, Rafferty – I have never heard of I am still waiting, because, I think, Corbett from the Pileggi-Rafferty Don’t
ad hits, it links Onorato to Rendell, and it any of them utter a skeptical word about there aren’t any such public comments, Trust Him virus works, once Onorato
touts Corbett’s strongest credential: his Corbett’s commitment to prosecuting apart from the wails of the prosecuted. starts his air war.
Bonusgate convictions. corruption. Rendell has treated him with So the ad hits a fact gap in that pivot Because if, as the Onorato camp says,
The problem is, it does so in an unfac- kid gloves, and Onorato has critiqued from “Trust me on taxes” to “I delivered they have really caught up to Corbett in
tual way. The only claim this ad makes some of the actions of the investigation. on my promise to fight corruption.” cash-on-hand, and Corbett is on the air,
that the Corbett camp has not backed up, But that isn’t what Corbett says in the Also, when Corbett says in the ad, “So what are they waiting for? CW

Onorato pledges to redirect natural gas tax to match his funding plan
continued from page 9
Onorato continued: “I’m for a com- [Corbett’s] going to protect the envi- “dictate to the industry on how things oversee the drilling industry, Onorato
petitive severance tax and here’s how ronment when he’s cutting everything are supposed to be.” also said that’s something he will review
I’m going to spend it. My opponent and he doesn’t want to have a severance “We have to make sure we have the if elected.
isn’t, so there’s no way he’s going to be tax like the other states do?” appropriate level of inspectors to ensure “I will do a total overview and eval-
able to watch the environment, there’s Corbett campaign spokesman Kevin that the industry is adhering to the uation of what we have in place,”
no way he’s going to be able to regulate. Harley said Corbett has a record of regulations,” Harley said. “To the extent said Onorato, noting that the drilling
He’s basically saying, ‘I trust you indus- protecting the environmental as attor- that that isn’t being done, he’ll re-adjust industry is expected to continue grow-
try, you do it on your own.’ That’s not ney general. Harley added that if elect- priorities once he takes office.” ing rapidly. “We will make sure DEP
my position.” ed, Corbett would develop a plan with Asked if he believes the state cur- is properly positioned to deal with
He later added: “I’d like to know how industry and environmental groups, not rently has proper regulations in place to industry.” CW

McCord files legal


brief in closed
meeting lawsuit
State Treasurer Rob McCord has filed a
legal brief as part of his lawsuit against
the Pennsylvania Gaming Control Board
for excluding him from closed meetings.
Under state law, the treasurer is a non-
voting member of the board that regu-
Highly recommended
b y p e o p l e w h o e a t.
lates Pennsylvania’s gambling industry.
McCord says his presence at the meet-
ings offers “independent oversight.” The
gaming board contends that, as a non-
voting member, he does not have a right
to attend.
McCord, who filed the lawsuit in May,
believes state law permits him to attend
board executive sessions.
The board, however, believes McCord’s
presence during closed meetings could
compromise confidential information
discussed during the sessions. The board
points to political contributions McCord
has received from gambling interests as
one of the reasons the treasurer should
be excluded from executive sessions.
Rep. Curt Schroder, R-Chester, has
sided with McCord, and this week
filed an amicus brief, also known as a Inspired. Cuisine.
friend-of-the-court brief, that supports
McCord’s position. briccopa.com | Downtown Harrisburg | 717.724.0222
McCord, meanwhile, is slated to
L U N C H - / . & 2 )      ! -     0 - s D I N N E R M O N - S AT 5 : 3 0 P M - 1 0 : 0 0 P M
present his arguments on the board’s
preliminary objections Sept. 16 in S U N D AY 3 : 0 0 P M - 8 : 0 0 P M
Commonwealth Court. CW
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