Progressive Adam Waldron Now Leading Lump Sanders for 4th Bethlehem Council Seat

Lynn Olanoff has the update. Waldron is now up 70 votes. If this holds once the broken voting machine’s votes are counted, there will be a 5-member governing majority of progressives on Bethlehem City Council. When Bob Donchez gives up his seat to become Mayor, there will be an opportunity to replace Donchez with another progressive member.

Let me just preempt a silly idea that might surface: that Lump Sanders is entitled to the seat because he placed 5th in the election. An appointment is just that – an appointment. The majority is not obligated to appoint anyone other than who they subjectively feel is the most impressive candidate they interview. It should be someone who reflects the governing majority’s views on politics and policy. Bethlehem City Council could potentially have a 6-1 progressive majority, with Eric Evans politically isolated, and Bob Donchez playing a substantially weakened role as Mayor.

Posted in Miscellany

PA House Passes Corporate Tax Cut with Loophole Closure

In Pennsylvania, the state tax code has a notorious loophole that allows corporations to get away without paying millions of dollars in taxes every year, and this is known as the Delaware tax loophole. The PA House recently passed House Bill four-hundred-forty which was allegedly aimed at closing the Delaware loophole, but the bill spends so much money on new corporate tax cuts that it would wind up not adding another penny to the state’s revenue.

According to the Pennsylvania Public Interest Research Group, all it takes is a clever tax attorney and an out-of-state P.O. Box to exploit the Delaware loophole, allowing a whopping seventy-four percent of corporations in Pennsylvania to pay no state taxes at all and letting half a billion dollars of tax revenue go uncollected every single year. Amy Worden of the Philadelphia Inquirer reports that while House Bill four-hundred-forty closes the Delaware loophole, it also reduces the corporate income tax rate from ten percent to seven percent, which eats up all the money saved and makes the bill revenue neutral.

Pennsylvania Budget and Policy Center Director Sharon Ward issued a statement on the bill following its passage in the PA House saying quote, “We are disappointed that the House missed an opportunity to close corporate tax loopholes and level the playing field for all Pennsylvania businesses. Pennsylvania residents and businesses are no closer to having a fair tax system than they were when they woke up this morning. The irony is that this bill will increase property taxes for seniors and working families, and for the very businesses that proponents are trying to help. If signed into law, this bill will come at the expense of investments that really matter to our economy and local communities, including schools, safe streets, and infrastructure.”

Budget choices are moral choices, and here our lawmakers face a choice between investing in people and communities or investing in corporations. If this bill becomes law, it will speak volumes about their values and priorities.

*This is a transcript of a video segment from my new PA politics Internet newscast called Counterpoint PA, you can watch the video here.*

Posted in Budget/Taxes/Spending, Business, House of Representatives, State Government, The Economy

Was It Appropriate for Lisa Boscola to Endorse Bob Donchez From Her State Senator Twitter Account?

Many politicians have separate Twitter accounts, with one account reserved for naked politicking, and one account for matters related to doing the people’s business. Lisa Boscola only has one. Was it inappropriate for Lisa Boscola to endorse Bob Donchez from her state Senate Twitter account? In what capacity was she endorsing?

@SenLisaBoscola I’m supporting Bob Donchez for Mayor of #BethlehemPA. He’ll work hard for our community.

Posted in Miscellany

To Grow Your Tax Base, Allow More Urban Infill

In this era of tight budgets, cities are looking for ways to grow their tax bases without asking individual households to contribute more taxes. Here’s the first place they should look.

Different kinds of buildings yield different amounts of property tax revenue per acre. Many areas limit residential development to just one house per acre. How do the property tax collections from that type of zoning regime stack up to the revenues produced by mixed-use buildings? How do these stack up to big box stores like Wal-mart?

Here is a chart from the new Smart Growth America report, showing the municipal property tax yield per acre from different kinds of development in North Carolina:

Why’s this important? Lots of municipalities think they are doing “economic development” by subsidizing, directly or indirectly, big box shopping centers. But in reality, this is the lowest impact type of development there is. Cities who want to grow the local tax base can hardly do better than to simply allow more multi-story mixed-use buildings in their business districts, and more multi-family buildings in their neighborhoods.

Posted in Miscellany

Get Up to Speed on Bill Peduto’s Reform Agenda

Most political reporters covering the Pittsburgh Mayoral race completely slept on Bill Peduto’s detailed governing platform, and are only now starting to wake up to the idea that he might actually try to do this stuff.

Here’s Tim McNulty giving Post-Gazette readers their first taste of what’s to come:

– Forcing the Ravenstahl-controlled parking authority to finally fork over the $10 million annually that Peduto’s council majority approved in 2010 to help bail out the city pension fund (Look for changes at the Water & Sewer Authority board too, as Peduto supporter Patrick Dowd has long fought for)

– Conducting a neighborhood-by-neighborhood “Pittsburgh Survey” of city residents

Requiring green construction in housing authority construction development

– Changing 1980s-era parking permitting

– Sharing parks, purchasing, fiscal and fleet services with Allegheny County

And on and on . . .

Posted in Miscellany

Raising Wages by Soaking Hotels, Tavern License Owners, Taxi Medallion Owners, Doctors and Land Speculators

Liberals tend to focus too much on nominal wages – the number on your paycheck – and not enough on real wages – how far people’s money goes.

It’s disappointing to see most of the action on the left on wage politics focused on raising the minimum wage. I support raising the minimum wage to $10 an hour or so, but this isn’t going to be nearly as effective as efforts to increase real wages by lowering the prices of everyday goods and services.

Here’s an example where I think most liberals will agree with me: AirBnB.

AirBnB is a service that allows apartment owners to rent out their places to travelers. I’ve done it a few times and it was awesome. I got a nightly rate cheaper than any local hotels, and I was able to stay in smaller neighborhoods rather than the touristy areas of town. While there I bought stuff at neighborhood retail businesses, instead of the big chain restaurants that tend to be close to big hotels.

So there are several positive economic effects of AirBnB. For one thing it puts downward pressure on the price of hotel rooms, raising the real wages of the people who stay in AirBnB apartments relative to a situation where they’d have to pay more per night. And the lower price of hotels means many more people can afford to stay in hotels, increasing tourism and all the good spillover effects tourism has for area businessses.

Unsurprisingly, hotels hate this and have been fighting to get cities to pass anti-competitive regulations that would make AirBnB illegal. Yesterday in New York, the hotels won, and Joey Sweeney thinks they’ll soon win in Philadelphia too. That would be a huge mistake, as it would make it less affordable for people to travel to Philadelphia, and take away a nice source of cash for apartment dwellers.

Liberals are probably primed to side with small apartment owners in a fight against big hotel corporations, but I really urge people to abandon that frame of thinking about issues like this. AirBnB isn’t good because big hotel chains are bad – AirBnB is good because lowering the prices of stuff raises real wages. More competition between service providers means cheaper prices for you, leaving you with more money left over for other stuff.

And it’s the same thing with so many other products and services.

Here’s a great article about how caps on tavern licenses in New Jersey make it really expensive to open new bars, which hurts older downtowns. As I’ve been pointing out, PA has the same problem with the County Quota system, which caps the number of tavern licenses at 1 per 3000 people per County. This ridiculous system has resulted in liquor licenses selling for as much as $200,000 in some places. $200,000 in overhead just to open a bar, before you even buy anything else!

This is a problem because the best use of retail storefronts in older walkable downtown neighborhoods is restaurants and bars. That is what they want to be. And alcohol is the lifeblood of the restaurant market. By creating an artificial scarcity of the ability to sell alcohol, the state is dooming older downtowns with a glut of vacant storefronts. Alcohol reform needs to uncap “R” licenses, increase competition in the bar and restaurant sector, and make it cheaper for everyone to afford to go out to eat. This would be a real wage increase for people who buy food and drinks at restaurants, and it would be a nominal wage increase for servers, since more drink orders equal bigger tips.

The same strategy for increasing real wages can be applied to health care, to the taxi and car rental market, and to the housing market.

Increasing competition in the health care market by expanding scope of practice for nurses or unwinding arbitrary occupational licensing rules, or importing more doctors would lower health care prices, making health care more affordable and increasing real wages.

Increasing the number of taxi medallions and thereby increasing the ratio of taxis to people would lower the cost of a taxi trip, making it more affordable for middle class people to use taxis more often, and increasing real wages.

And lowering the cost of rent and mortage payments through more price competition between landlords and landowners, and direct taxes on vacant land and buildings would have a huge impact on real wages, since housing and transportation costs eat up such a large percentage of people’s income.

In every sector, the goal needs to be to increase competition and root out anti-competitive regulations. Attacking all the sources of unearned rent income that incumbent businesses try to win for themselves through the political and regulatory processes will reduce the cost of living for poor and middle class people, and leave everyone with more disposable income to spend or save as they please.

Posted in Miscellany

Yes, Bill Peduto Has a Mandate to Change Pittsburgh

I genuinely have no idea what reality this talking point is supposed to have a basis in. Here’s Tim McNulty:

Joe Smydo writes that winds of change, exemplified by that street sweeper, carried Peduto into office. It’s hard to know how much of a mandate the Point Breeze policy wonk can claim given the low turnout, however, which is something Wagner hinted at last night. More on turnout later I’m sure.

And here’s Jack Wagner:

“It’s hard to believe in the city of Pittsburgh how few votes it really takes to win the Democratic primary, but the bottom line is that BP has more votes than I do, so he is the winner [...]

Obviously, I’m a realist,” Mr. Wagner said after his concession speech. “Not many people voted.

“Twenty thousand votes, and you win? That’s really unbelievable.”

And here’s Jim Ferlo:

“It didn’t seem to materialize” into turnout in the East End, he said, citing very low numbers in his Highland Park base and in the Homewood area.

“I think the supervoter is still typically the older Pittsburgher,” Sen. Ferlo said. “Older, ethnic … traditional working class kinds of voters” who he thought would favor Mr. Wagner.

The problem with this argument is that the people who Jack Wagner and Jim Ferlo think should have been a majority of the electorate yesterday were not in fact a majority.

The basic fact of the election is that Bill Peduto’s coalition won about 52% of the vote, and Jack Wagner’s coalition could only get about 40%.

I’m not going to read too much into Senator Ferlo’s comment, but it sounds like he’s saying that since your average supervoter fits the profile of a Wagner voter, the Wagnerstahl coalition’s policy preferences should continue to prevail even though they lost. Happy to be wrong, but why else would he bring this up, if not to diminish Peduto’s mandate for policy change?

It doesn’t matter who you thought should have showed up to vote. The people who did show up to vote picked Bill Peduto over Jack Wagner by a fat 12-point margin. That’s all the mandate Peduto needs. Many more people voted for him, and he also has the outline of a progressive governing coalition on City Council. He explicitly ran on his ideas for policy change, and all that matters now is whether a bare majority of City Council members are willing to vote to pass them into law. That’s as much of a mandate as anyone ever needs in politics.

Posted in Miscellany

Munipocalypse 2013 Primary Round-up

There are more posts to be written about a few of these contests, but here’s where things stand with the races we’ve been following.

The Good:

- Bill Peduto beat Jack Wagner in the Pittsburgh Mayoral primary! And by a solid margin of ~52-40. This one makes all the disappointments better. More on this later.

- John Callahan prevailed over Lamont McClure and a reheated Glenn Reibman in the primary for Northampton County Executive, also with over 50%.

- Democrats won two special elections for the state House, in HD-42 and HD-95.

The Bad:

- Bob Donchez narrowly bested Willie Reynolds by about 300 votes for Bethlehem Mayor. Still sore about this one since I was working for Willie yesterday.

- Old-head network favorite Bill Courtwright somehow won over KP favorite Liz Randol for Scranton Mayor

- Eric Papenfuse beat out Equality PA’s preferred candidate Dan Miller for Harrisburg Mayor. I wasn’t really that into any of the candidates, but at least now Harrisburg will have a Mayor who’s not certifiably insane.

- The Philly Shrug beat Brett Mandel for Philadelphia Controller by a 2-1 margin, with shamefully low turnout.

Posted in Miscellany

Stop Posting Pictures of Your Ballot!

Fellow Democrats, I just want to give you a quick Election Day reminder. Please stop posting pictures on social media of your ballot from your voting machine. Why? It’s against Pennsylvania law.

Pennsylvania’s election code prohibits such photos and the sharing them on Facebook may be punishable as a misdemeanor. Here’s the relevant language from the statute:

Article XVIII of the election code states that “[a]ny elector at any primary or election who shall allow his ballot or the face of the voting machine voted by him to be seen by any person with the apparent intention of letting it be known how he is about to vote” is subject to penalty. 25 P.S. § 3530.

The perpetrator “shall be guilty of a misdemeanor, and, upon conviction thereof, shall be sentenced to pay a fine not exceeding one thousand ($ 1,000) dollars, or to undergo an imprisonment of not more than one (1) year, or both, in the discretion of the court.” 25 P.S. § 3530.

Lawyers might make a compelling 1st Amendment challenge, but I’d take down the photos of your ballot to avoid litigation or the accusation of breaking the law.

It’s great that you’re excited about voting, but keep your celebratory Facebook status photo-less.

The more you know!

Posted in Elections

Climate Change & Renewable Energy Projects in Pennsylvania

While there are major solar energy and wind energy projects in Pennsylvania and one school district in the state has won an award for cutting their energy usage by one-third, a new report from the Pennsylvania Environmental Resource Consortium says more radical changes to Pennsylvania’s energy system are needed to prevent catastrophic consequences of climate change.

Unlike the establishment media in Pennsylvania which either does not cover climate change, severely undercovers climate change, or reports on the controversy over whether climate change is real at all, I want to be very straightforward about this on Keystone Politics. A statement from the G8+5 Academies which represents the national academies of science or its equivalent of Brazil, India, South Africa, Canada, Italy, the United Kingdom, China, Japan, the United States, France, Mexico, Germany, and Russia says quote, “Climate change and sustainable energy supply are crucial challenges for the future of humanity. …  large reductions in the emissions of greenhouse gases, principally CO2, are needed soon to slow the increase of atmospheric concentrations, and avoid reaching unacceptable level. However, climate change is happening even faster than previously estimated; global CO2 emissions since 2000 have been higher than even the highest predictions. Arctic sea ice has been melting at rates much faster than predicted, and the rise in the sea level has become more rapid. Feedbacks in the climate system might lead to much more rapid climate changes. The need for urgent action to address climate change is now indisputable.”

So that’s the factual context as established by the world’s science academies. This year, on April 24th, the Pennsylvania Environmental Resource Consortium put out a report entitled On The Need of the Commonwealth of Pennsylvania to Take Certain Actions to Reduce The Threat of Climate Change. It cites a climate change action plan put together by the Pennsylvania Department of Environmental Protection in 2009 that compiled fifty-two recommendations to reduce the state’s greenhouse gas emissions including carbon dioxide from a baseline set in the year 2000 by thirty percent by the year 2020, and laments that the vast majority of the recommendations have not yet been implemented. At the time, the PA Department of Environmental Protection also found that Pennsylvania is responsible for one percent of the world’s greenhouse gas emissions, obviously much greater than the state’s share of the world’s population.

The PA Environmental Resource Consortium now insists that Pennsylvania must establish a legally binding greenhouse gas emissions reduction target that matches Pennsylvania’s share of the world’s emissions. Their report says quote, “Climate change, perhaps more than any other environmental problem facing the world, raises questions of basic fairness because CO2 is well mixed in the atmosphere. In other words, all CO2 emissions are contributing to elevated CO2 atmospheric concentrations without regard to where in the world the emissions come from. Because the level of atmospheric concentrations of GHG will determine the amount of warming that the world will experience and the amount of warming will differentially affect millions of the world’s poorest people most harshly, all emitters of GHG emissions, without regard to where they are located in the world, are threatening people around the world. Thus, a state like Pennsylvania cannot avoid questions of basic justice when establishing a GHG missions target because any GHG emissions target is implicitly a position on Pennsylvania’s fair share of global emissions.”

They also cite a 2008 report by the Union of Concerned Scientists that listed impacts of climate change specifically on the Commonwealth of Pennsylvania. I was going to edit it down for time’s sake, they’re all so serious that I want you to hear them all. “Many Pennsylvanian cities can expect dramatic increases in the numbers of summer days over 90°F, putting vulnerable populations at greater risk of heat-related health effects and curtailing outdoor activity for many individuals. Heat could cause urban air quality to deteriorate substantially, exacerbating asthma and other respiratory diseases. Heat stress on dairy cattle may cause declines in milk production. Yields of native Concord grapes, sweet corn, and favorite apple varieties may decrease considerably as temperatures rise and pest pressures grow more severe. Snowmobiling is expected to disappear from the state in the next few decades as winter snow cover shrinks. Ski resorts could persist by greatly increasing their snowmaking, although this may not be an option past mid-century as winters become too warm for snow – natural or human-made. Substantial changes in bird life are expected to include loss of preferred habitat for many resident and migratory species. Climate conditions suitable for prized hardwood tree species such as black cherry, sugar maple, and American beech are projected to decline or even vanish from the state.” The PA Environmental Resource Consortium adds that because that report is from 2008, quote “it is therefore plausible that climate impacts on Pennsylvania will be less than or greater than those described above … because recent global GHG emissions have recently been exceeding worst case levels predicted just a few years ago, it is more plausible that climate impacts on Pennsylvania could be significantly worse than those described above.”

So it is for our own sake as a Commonwealth as much as for global responsibility and justice that Pennsylvania must address climate change in a much more serious way than it has thus far. One important way to do that is with renewable energy projects. While the new report from the Pennsylvania Environmental Resource Consortium calls for a drastic new plan to reduce our carbon emissions, there are already some major renewable energy projects in the state that could serve as models for such a plan. Solar energy and wind energy are small parts of Pennsylvania’s energy sector, but they are part of it.

One of the largest solar energy projects in Pennsylvania is the Keystone Solar Project in Lancaster County, a joint project of Community Energy Solar, Bright Plain Renewable Energy, groSolar, and Advanced Energy Industries. It provides six megawatts of power. One megawatt is enough to power about nine-hundred homes in the northeastern United States, so this plant is able to power five-thousand-four-hundred homes. A press release from Community Energy Solar says the Keystone Solar Project will quote, “supply the highest-quality green electricity – local solar power – to customers who sign up for a share of the generation.  Several early high-profile customers have already signed up for a share of the output, including Franklin & Marshall College, Eastern University, Clean Air Council, the Philadelphia Phillies, Millersville University, and most recently, Marywood University and Juniata College. ‘This is the greenest of the green — local jobs building fuel-free power that will last for decades,’ said Brent Beerley, Executive Vice President of Community Energy.” In March of this year, the Keystone Solar Project was picked by the Solar Energy Industries Association and the Solar Electric Power Association as a “Project of Distinction” at the 2013 PV America East solar conference. If Pennsylvania got serious about climate change, this is just the kind of project that could be replicated across the state to make solar energy an option for more and more Pennsylvanians.

Wind energy is also slowly making its way into our state’s energy system. The Associated Press recently reported that in 2012 the number of wind installations in Pennsylvania nearly doubled, now providing about one percent of the state’s electricity. That’s far behind Iowa and South Dakota, both of which get over twenty percent of their state’s electricity from wind power, and Minnesota and Colorado that get over ten percent from wind, but out of all 50 states, Pennsylvania is ranked pretty high up as having the sixteenth highest wind energy output in the nation. PA now produces one-thousand-four-hundred-thirty megawatts from wind energy. Again, one megawatt can power
about 900 homes in PA, which means we currently produce enough wind energy to power one-million-two-hundred-eighty-seven-thousand homes in our state. The spokesman for a company that has four wind farms in PA says quote, “‘Long-term, we remain enthusiastic about the future of wind’ in Pennsylvania … adding that while no further winds projects have reached the permitting stage here, various others are in the ‘early planning process.’” Enough to power over a million homes is a huge deal, and that’s how it stands right now. Again, if PA got more serious about climate change, this is the existing framework that could be replicated to make wind power more widely available.

In addition to renewable energy projects like solar and wind, it’s also possible to cut back on our state’s greenhouse gas emissions like carbon dioxide by using energy more efficiently, which would cut back energy usage overall. A school district in Pennsylvania recently won a national award for its successful energy efficiency efforts. North Penn School District in Montgomery County and a small part of Bucks County received an Energy Star Partner of the Year award from the federal Environmental Protection Agency in March of this year. The Alliance to Save Energy, which runs the PowerSave Schools program that North Penn School District participated in, says that North Penn students led a variety of projects including awareness campaigns, websites, performing energy audits, interpreting data, and making recommendations for better energy practices. They quote North Penn District Energy Manager Tom Schneider saying, “Over the past year we were able to save more than $1.1 million in utility costs, an amount equal to the combined salaries of 21 first-year teachers. This was achieved through operational and behavioral changes and with no capital expenditure.” Accomplishments of the district that led to the award include slashing energy use by 20% in 2012 and 35% in 2013, preventing 5,600 tons of carbon dioxide from being released, and conducting 200 student-run classroom energy audits to increase natural light, improve ventilation, and reduce appliance energy use.

Now, student-led awareness campaigns and energy audits may not seem like a huge deal at first, but let me repeat that this year North Penn School District reduced its energy usage by over one-third. That shows a tremendous amount of potential. Imagine if under a new climate change plan for Pennsylvania every school district in the state was required to take the same steps to reduce their energy usage that North Penn took. If one school district could reduce its energy usage by a third, why not try to reduce the energy usage of every school district by a third? That alone would drastically reduce the energy needs of our state, and therefore drastically reduce the new renewable energy projects like solar and wind that our state would need to replace older and dirtier forms of energy production that contribute to climate change. These are all methods we must use to reduce our state’s greenhouse gas emissions. Hanging in the balance are our wildlife, our crops and plant life, our air, our health, and even our capacity for winters where it snows, but also the lives of impoverished people in developing nations who will suffer for our actions. Every year that goes by without Pennsylvania getting serious about climate change puts us that much closer to a time when it will be too late to stop its worst impacts.

*This is a transcript of a video segment from my new PA politics Internet newscast called Counterpoint PA, you can watch the video here.*

Posted in Environment and Energy, State Government