PAWaterCooler.com

I can’t believe my eyes are seeing this.

It can’t be right.

From the recovery.gov website…. here are Pa’s figures…

I plug these numbers into Excel… and behold.

I’m not really clear on how the fractional jobs are computed, but really now…. is the Obama administration telling us that each job “created or saved” in Pa cost US taxpayers an average of $613K?

Four and a half billion dollars, and that’s all we have to show for it? Seventy-five hundred jobs?

To put it another way, you could have used all $4.5 billion and written a check for Pa’s median household income of $48,000 to 95,000 of Pennsylvania’s households… or written a check for $48,000 for each of those 7500 jobs “saved or created” and only spent $360 million dollars.

Not surprisingly, the page is titled, “where is the money going?”

I have some idea.

Update: Here’s the breakdown by Congressional District.

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Well, they gotta pay for their viagra somehow.

A fare increase of that size could mean the cost of a token would go from the current $1.45 to about $1.60, and a weekly Transpass from the current $20.75 to about $22.75.

But nothing’s certain.

“If there is a fare increase, we don’t know how much it will be,” said SEPTA chief press officer Jerri Williams today. She said it would depend on inflation, ridership, the overall economy, and SEPTA’s effort at “fare simplification.”

Williams was quick to say the new contract agreed to today for bus drivers, subway and trolley operators, and mechanics was not to blame for a fare hike.

No not at all.

Because you know, what you pay your employees is completely and utterly disconnected from what you charge your customers… (or bilk from the state)

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Don’t know if they got their Viagra, but I know they got their bonus.

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I guess they got their Viagra after all.

No word on details.

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For realz.

Yes, it appears that labor issues are not the only dysfunction troubling SEPTA workers. The Daily News reported that some are unhappy that their current health-care plans cover – and here it’s important to use caps for emphasis – ONLY 10 VIAGRA PILLS A MONTH.

Some union members want the pill – again, excuse the shouting – DAILY, which makes you worry that every bus, trolley, and subway route has the potential to turn into an express, particularly during those problematic four-hour peaks in service.

Not safe for work commentary below:

(more…)

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Ed, my read on this situation is that this is not a failure of Rendell’s or Nutter’s, for that matter; this is an instance of Union bullying. Here’s this morning’s Inky:

A tentative agreement to end the strike by SEPTA workers collapsed in acrimony yesterday, leaving prospects slim for a quick resolution to the six-day walkout.

Gov. Rendell, who tried to broker a settlement, blamed the leadership of Transport Workers Union Local 234 for the breakdown and called for a direct vote by union members on the proposed contact. If such a vote isn’t taken by tomorrow, the governor said, he will withdraw nearly $7 million in state funding offered to pay for worker bonuses.

What’s that? $7 million in WORKER BONUSES???? I hope Rendell is serious when he says it comes off the table if there is no vote tomorrow. Here’s Brown about taking that vote directly to the Union members:

“We’re not going to take it to a vote,” he said. “For the same reason the president of the United States would not bypass Congress and go directly to the people.” He dismissed Rendell’s demand as an effort to divide the union.

Referring to Rendell’s vow to withdraw the state funding, Brown said, “I am not for sale.”

Right. Because Obama does not have nearly the leverage with the general public as a whole as he does to those wimps representing us in congress. We read you loud and clear, Willie.

Here’s Nutter and Rendell responding:

Rendell, who described himself as “entirely frustrated,” called the failure to reach an agreement “nuts,” and said he had “never seen anything like it in 32 years in government.”

Nutter echoed Rendell’s call for a vote on the proposed contract: “I agree with the governor – the members would vote for this deal. It’s a good deal.”

It does look like a good deal:

The proposed five-year contract would have provided a $1,250 bonus upon ratification, a 2.5 percent raise in the second year, and a 3 percent raise in each of the final three years. It would have increased workers’ contributions to the pension fund from the current 2 percent to 3.5 percent and would have increased the maximum pension to $30,000 a year from the current $27,000.

The union, which represents about 5,100 bus drivers, subway and trolley operators, and mechanics making an average of about $52,000 a year, went on strike at 3 a.m. Tuesday.

So why did it fall apart?

Brown said that he had agreed to a settlement only in principle and that late “smoothing” by SEPTA of financial details had upended the deal. Rendell and SEPTA officials said the union at the last minute had asked for nine changes in the proposed agreement that would have increased costs by $7 million.

(…)

Rendell said the union made new demands yesterday after a handshake agreement with U.S. Rep. Bob Brady (D., Pa.) was announced Friday. The new requests included an independent audit of the SEPTA pension plan, which the union says is underfunded and mismanaged.

The Union wants it’s own audit of the fund, which they say they will pay for; they say since they will now be paying more into their pension that they have a right to know where that money is going. The fund is already independently audited every year and there are two union members on the pension board. So here’s what I dont get: If part of the Union’s demands were to increase the pension contributions, why the last minute demand for the audit? Why was this the sticking point that made the deal fall apart? There may be more to this than meets the eye:

The union has made the health of the pension fund a central issue in the strike. The SEPTA pension fund for TWU workers is funded at about 53 percent of total liabilities, compared with 65 percent for the SEPTA managers’ pension fund.

Union leaders have said the fund has been mismanaged and underfunded for years and is at risk of not being able to meet its obligated pension payouts in the future. SEPTA officials say the fund is sound and has always met its pension obligations.

SEPTA officials said the union was already involved in management of the fund, as it has two representatives on the eight-member board that oversees the fund. Brown said the members were not permitted to vote; SEPTA said they were allowed to.

SEPTA general manager Joseph Casey called the pension audit request a red herring. He said all the pension board members, including the union representatives, had access to an independent annual audit by national actuarial firm Milliman Inc.

Brady said the union’s audit demand “is just purely the trust factor.”

“They don’t trust SEPTA on this,” he said, adding that he was disappointed the deal broke down but would keep working to resolve the matter. “It’s a shame. It’s just a shame.”

I reiterate my earlier thoughts: the Union is tone deaf. This is a good deal, especially in these economic times. This is not a failure of government leaders; it’s unreasonableness on the part of the Union.

Get back to work.

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Just to be clear, I was not inclined to indulge the Septa strike from day one. Now, hearing TWA union boss Willie Brown whine about how he’s the “most hated man in Philadelphia” and listening to him call Mayor Nutter “Little Ceasar” for “bringing nothing to the table” and claiming “He has destroyed any good faith we had to try to negotiate a contract,” I’m really done with this tone deaf union.

Does the TWA remember remember the tears of Philadelphians as the city was forced to close the libraries? How about the city pools? How about closing some of the city’s fire stations, for God’s sake?

Maybe you think that this is all about power hungry unions who are feeling their oats in a Democratically controlled union sympathetic national leadership. Or perhaps you are thinking that that they are just being greedy, looking to secure their pensions and a 4% raise in an age when most private sector employees have seen their pensions frozen or eliminated and have seen cuts in their pay (if they are lucky enough to still be employed).

You are missing one important subtlty.

As with seemingly everything these days, race is, of course, a factor:

Observers familiar with the delicate, racially tinged interplay between SEPTA and the TWU see more at issue than money. Brown is a first-term president facing an election in 10 months. In taking his membership out on strike, observers said, he shows he’s tough enough to stand up to SEPTA.

Many union workers are African American, the agency managers largely white. Everything between the sides filters through a prism of suspicion and distrust. Last year, Brown said contract negotiations would center on getting workers “the respect and dignity they deserve.”

Yesterday, he hammered at what he said was an unfair disparity in how SEPTA funds pensions for managers and workers.

“We were forced into a strike,” he said. “We will stay out as long as it takes to secure our pension.”

“Forced into a strike,” indeed. They held the city hostage over the weekend with the threat of transportation shortage during a potential World Series victory. They are blocking service at those suburban bus and rail stations that are running and what public transportation is running is running with heavy delays. Traffic for commuters is a nightmare not only in the city, but in the surrounding counties. A train fire on the R5 Paoli Thorndale line shut the line down yesterday; Septa claims this was an electrical fire; however, most of the public’s initial reaction was suspicion that this incident was union mischief. What does that thought process say about the relationship between the TWA and the City they serve?

But back to those “racially tinged” negotiations. I’m not sure I can see how race plays into this, other than as a another bludgeon the union is using in order to guilt money out of the government where there is none. I’m done with this overplayed strategy, too.

As this strike rolls on, let’s not forget one important thing: Septa survives only because they are heavily subsidized by tax payer money. If they win, we lose. And the longer they don’t win, we lose. The union knows this and they don’t care.

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The southeast region’s transit authority is on strike.

Buses, Trolleys & Subways are sitting idle as their operators hold their breath.

SEPTA’s largest union has gone on strike after talks broke down with the transportation authority early Tuesday morning leaving hundreds of thousands of residents out in the cold without a way to work and school.

SEPTA urged riders to consult the SEPTA Strike Guide for how to navigate the shutdown. Riders can also call SEPTA customer service at 215-580-7800.

Reps for the Transport Workers Union, Local 234 walked out of negotiations just after midnight after almost a week of talks. Workers took to the picket lines at 3 a.m.

The strike virtually paralyzes transport within the city of Philadelphia idling all city buses and trolleys, the Market-Frankford El and Broad Street Subway as well as its Frontier Bus Lines, which serve Bucks, Montgomery and Chester counties.

Humor me for a moment.

The Phillies win the ALCS, SEPTA’s union threatens a strike. Local politicos including Governor Rendell mobilize to talk them down from the edge.

Phillies go down 3 games to 1.

The strike seems to be averted.

The Phils win game 5 at 11:30, the President of the union walks out of negotiations at 11:45. Everything stops at 3am.

Companies get in to trouble all the time for bad faith negotiations, clearly the TWU is doing the same. Working the clock, Iran style, to get what they want.

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Friends,

I am pleased to inform you that Philadelphia has been selected to host a monthly Center-Right Coalition meeting, following the hugely-successful model of Grover Norquist, President of Americans for Tax Reform (ATR). We will be one of the few non-state capital cities to have such a gathering.

The kick-off meeting, which I will be hosting, will be Thursday, November 12 at the Union League in Philadelphia, with Mr. Norquist in attendance. Light refreshments will be served at 7:00 AM, with the program going from 7:30 to 9:00. The Union League is located at 140 S. Broad Street, just two blocks south of City Hall.

In Grover’s words, the objective is “to get everybody who is center-right to tell each other what they are doing, to share technology and tactics, and to tell stories” regarding issues facing Pennsylvania and the nation.

One key function, according to ATR, is to facilitate collaborative activities of coalition members, many of whom may have not previously known one another, and foster the potential for mutual cooperation.

The rules are simple: Anyone who so desires may speak for three minutes on current initiatives, answer questions, and pass the microphone to the next speaker.

The only prohibition is whining. It is a positive meeting, one that will unify southeastern Pennsylvania.

Attendees will typically include influential political, business, policy and grassroots leaders.

If anyone who would like several minutes on the agenda, please let me know.

You are encouraged to bring any literature for distribution.

I hope to see you next Thursday.

For future reference, the monthly meetings will be held on the FIRST THURSDAY of each month at the Union League, with the same time format as above.

Feel free to invite colleagues and associates. All meetings are off the record.

Steadfast,

Christopher Freind
“Freindly Fire”
Audaces fortuna iuvat
610-659-0098
christopherfreind@hotmail.com (E before I in Freind)
CF@FreindlyFireZone.com

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Toll Roads News:

A number of Pennsylvania Turnpike officers have lost computer hard drives to the Federal Bureau of Investigation. Last Thursday morning Oct 22, FBI officers showed up unexpectedly at the Turnpike offices in Harrisburg and apparently presented their authority (subpoena) to impound, examine and confiscate equipment and records as part of a criminal investigation. The agents returned and spent most of Friday at the Turnpike also. Nothing has been announced by either the FBI or the Turnpike.

A week went by an no one leaked that?

INSERTION: Wednesday morning a public affairs officer for the FBI denies FBI agents were at the Turnpike offices Thursday or Friday. Also a Turnpike spokesman calls our story “a total fabricaton,” and adds “It never happened.” He suggested we “take the story down.” We are checking further – editor. 10:35

(tip to PolicyBlog)

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Perfect timing, btw.

SEPTA workers will go out on strike later this week after a Sunday strike vote.

The strike vote was nearly unanimous and the strike will start later this week, unless union and management negotiators can reach a deal.

Mass transportation to the Philadelphia sports complex may be shut down for the World Series and the Eagles-Giants game if SEPTA workers remain out next Sunday.

The striking union represents bus, trolley and subway drivers, as well as mechanics.

Regional rails would be unaffected. Other than massive overcrowding.

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The Pennsylvania Guardian makes a very good point with a comment below on my post about how the various images used to criticize Obama are supposedly racist:

Bob Casey is being beat up in the press also, why?, is that because he is Catholic ???

If the various images of Obama are all racist, then I guess when Casey was portrayed as a Duck…

…and when Casey was portrayed as “Wanted”…

…and when Casey was portrayed as cardboard…

…that it was all anti-Catholic bigotry!

Or, not.

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LEGISLATOR ANNOUNCMENT as received from Representative Michele Brooks and Representative Brad Roae

Several local lawmakers – including Reps. Michele Brooks (R-Crawford/Mercer/Lawrence), Dick Stevenson (R-Mercer/Butler), Brad Roae (R-Crawford) and Scott Hutchinson (R-Venango/Butler) – are encouraging residents to renew their fight against a plan to toll Interstate 80 as state officials are beginning discussions to resubmit their proposal to the federal government.

Just this week, Secretary of Transportation Allen Biehler, who was recently named as chairman of the Pennsylvania Turnpike Commission, said both PennDOT and the commission plan to meet with the Federal Highway Administration (FHWA) to review the failed application from last year in hopes of resubmitting it. Last September when the revised application was denied, the FHWA said the turnpike commission’s application did not meet requirements of a federal pilot program that would have made the tolling possible.

The subject was raised Tuesday at a hearing of the House Democrat Policy Committee, where testimony was only offered by Biehler and other top officials from the Turnpike Commission. The committee neglected to include residents, businesses and organizations that would be directly impacted.

“At a time when we are working toward rebuilding and strengthening our economy, there are plans moving forward that would destroy it,” Brooks said. “As billions of taxpayers’ dollars in federal stimulus funding are coming to Pennsylvania, including hundreds of millions for highway projects, I am disappointed that the Turnpike Commission would continue to advocate for a plan that is contrary to stimulating our economy by placing yet another financial burden on our local taxpayers.”

With a new administration in Washington, local lawmakers are not surprised talk is resurfacing on resubmitting the application. However, they are concerned that such a tolling policy would be contrary to all of the economic recovery efforts advanced by President Barack Obama.

“Tolling I-80 would not only be devastating to our businesses and residents, but it also places a heavier financial burden on local municipalities that must address problems caused by traffic diverting from the highway,” Stevenson said. “Ultimately, local taxpayers are the ones shouldering this burden on multiple levels, not out-of-state trucking companies and tourists that the plan’s proponents would have people believe. Due to the change in our economy since the application was submitted, I urge the Turnpike Commission to listen to the people and businesses that will be directly impacted by this decision before resubmitting its application.”

“Tolling Interstate 80 is nothing more than a tax increase on local residents and businesses,” Roae said. “In light of our current economic situation, Iurge taxpayers, business owners and motorists to join us in fighting this new tax.”

“The recent history of the Pennsylvania Turnpike Commission has been plagued with questionable actions and it would be irresponsible to allow the tolling of Interstate 80 to take place under anyone’s watch, especially theirs,” Hutchinson said. “The responsibility of our Commonwealth’s roadways should not be in the hands of a dysfunctional commission and I ask the people of Pennsylvania to take a stand and advocate for not tolling I-80.”

The lawmakers are encouraging residents, travelers, businesses, organizations and others to contact their federal representatives and voice their opposition to tolling I-80, as the federal government will make the final decision on whether or not to toll the highway. Those representatives include Sens. Arlen Specter and Bob Casey, along with Congresswoman Kathy Dahlkemper (D-Erie) and Congressmen Jason Altmire (D-Aliquippa) and Glenn Thompson (R-Bellefonte). They can be reached through the following contact information:

Sen. Arlen Specter, 711 Hart Senate Office Building, Washington, DC 20510. Phone: (202) 224-4254. Web site: http://specter.senate.gov/. His regional office in Erie, located in Suite B-120 of the Federal Building at 17 South Park Row, can be called at (814) 453-3010.

Sen. Bob Casey Jr., B-40 Dirksen Senate Building, Washington, D.C. 20510. Phone: (202) 224-6324. Web site: http://casey.senate.gov/. His regional office in Erie, located in Suite B-150 of the Federal Building at 17 South Park Row, can be reached by calling (814) 874-5080.

Rep. Kathy Dahlkemper, 516 Cannon House Office Building, Washington, DC 20515. Phone: (202) 225-5406. Web site: http://dahlkemper.house.gov/. Her full-time local office is at 208 E. Bayfront Parkway Suite 102, Erie, PA 16507. Phone: 877-528-4948.

Rep. Jason Altmire, 1409 Longworth House Office Building, Washington DC 20515. Phone: (202) 225-2565. Web site: http://altmire.house.gov/. His regional, full-time office is at 2110 McLean Street, Aliquippa, PA 15001. Phone is (724) 378-0928.

Rep. Glenn “GT” Thompson, 124 Cannon House Office Building, Washington DC 20515. Phone: (202) 225-5121. Web site: http://casey.senate.gov/. His local office is located at 127 West Spring Street, Suite C, Titusville, PA 16354. Phone: (814) 827-3985.

Since the application was first submitted in 2007, local lawmakers have sent numerous letters and spoken with federal officials on how tolling I-80 does not meet standards set by federal law.

Rep. Michele Brooks
17th District
(724) 588-8911

Rep. Dick Stevenson
8th District
(724) 458-4911

Rep. Brad Roae
6th District
(814) 827-6054

Rep. Scott Hutchinson
64th District
(814) 677-6363

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Rep. John Murtha’s (D, Corruption) porktacular airport gets $800k in stimulus money.

Chester County, one of the Commonwealth’s key tax revenue generators, gets some trails, a little resurfacing, and a single bridge. This is also known as the shaft. Nice work, Rep. Drucker (D, Chesco), and Ed Rendell!

Rep. Curt Schroder’s (R, Chesco) legislation to force the funds to be productively used, and if not, declined, appears to be stalled, although Fast Eddie appointed a Stimulus Czar to potentially obviate the need for this legislation.

I have an inquiry in to the stimulus Czar and his team to learn how Murtha International happily rolls in pork, while Chester County’s infrastructure remains about a generation behind where it needs to be.

Contact information for the members of the Stimulus Oversight Commission can be found here. Please, have at them.

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Does anyone else see the stupidity here?

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Written by Roberta Biros

In 2008 we all heard plenty about the possible tolling of I-80. It was on TV . . . it was in the papers . . . it was on political buttons. It was a great issue during an election year, so it received lots of attention. We were all made to believe that the issue of tolling Interstate 80 was ‘squashed’ by the Legislature ensuring that access to the highway would remain free . . . but, Don’t Believe Everything You Read.

We all know what we were told in 2008, but let us review the facts.

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Port Authority: $11 Million in Non-Bridge Projects

DRPA Still Can’t Afford to Repair Bridges, but Funds 2008 Army-Navy game and historic house

BY CHRIS FREIND

The Delaware River Port Authority (DRPA) resumed its controversial “economic development” program yesterday, doling out millions of dollars to projects having nothing to do with the Authority’s primary mission of operating and maintaining the four major bridges in Philadelphia. Many politicians in Pennsylvania and New Jersey have close affiliations with these projects.

At its Thursday board meeting, the DRPA Projects Committee approved $11 million in grants to be spent on numerous initiatives in the cities of Philadelphia and Camden. The full board is expected to approve the expenditures at its Feb. 18 board meeting.

In Pennsylvania, the authority will spend $3.5 million for the restoration of an historic house in Philadelphia. An additional $2.5 million was allocated for several initiatives in the historic section of Philadelphia, including the development of a “permanent food structure” in Franklin Square and a technology update for the “Lights of Liberty” show. Lights of Liberty was the idea of then-mayor Ed Rendell to add an evening attraction to the historic district’s landscape.

The DRPA also authorized a resolution to give $250,000 to the Philadelphia Convention and Visitor’s Bureau “for expenses incurred hosting the 2008 Army-Navy game.” The military academies played the game almost two months ago.

According to the DRPA, Philadelphia hosted its eighth straight sellout Army-Navy game, had a national television audience of three million, and was the recipient of $35 million in “total economic output.” When questioned about why the DRPA felt it necessary to pay out a quarter-million dollars given the game’s economic success, the answer given by CEO John Matheussen was that the Army-Navy game was good for the Philadelphia region.

In New Jersey, the authority passed a resolution to spend $5 million for “educational and infrastructure improvements” in Camden. Projects include the demolition of a city-owned downtown building and recreational improvements related to Roosevelt Park. The DRPA will also be involved in the “site acquisition, demolition, relocation, and other costs in connection with the University of Medicine and Dentistry of New Jersey (UMDNJ)’s development of an Academic Research Facility.” According to discussions at the DRPA press conference, however, the decision by the UMDNJ to move forward with the research facility has not yet been approved.

A significant portion of the New Jersey economic development funds will be allocated to public infrastructure improvements along Admiral Wilson Boulevard in connection with the expansion of the Campbell Soup Company, a business with a market value of $11 billion.

The DRPA will also fund the West Jersey Line, a 17 mile private railroad in Salem County. It will primarily serve two companies in that region.

Port Authority Vice Chairman Jeffrey Nash, who voted in favor of these projects, also serves as an elected Camden County Freeholder. With the exception of the railroad, all of the New Jersey economic development projects approved at the board meeting are located within Mr. Nash’s district.

Commuters became enraged last year when tolls increased by 33%, a measure taken because DRPA didn’t have the $1.1 billion it needed for bridge repairs. While tolls will rise another 33% next year, the Authority will also be issuing bonds later this year to raise additional revenue for capital improvement repairs. The total bond amount could exceed $500 million.

The Port Authority’s nearly $400 million in economic development grants have come under intense scrutiny in recent months as politicians, the media, and watchdog organizations have increasingly questioned why the Port Authority continues to spend money on non-bridge related projects, especially in difficult economic times.

The Authority has a debt of more than $1.2 billion, and 76 per cent of every dollar is allocated to salaries, benefits and debt service.

Pennsylvania state senator John Rafferty, R-44, Chester and Montgomery Counties, expressed his concern regarding economic development spending by the DRPA.

“They can say all they want that they had this economic development money in reserve, but it should be allocated to rail lines and transportation. The purpose of the DRPA should be to fulfill the same mission of every other government agency— to provide safety, health and welfare to the people for whom they are responsible,” he said. “And you do that by having bridges and rail lines that are up to code and meeting the needs of the consumers. It’s not investing in all these other projects!”, he added.

Sen. Rafferty discussed how much the DRPA changed after being granted economic development authority in the early 1990’s. “We’ve gotten so far away from the scope of what was intended for that agency, that I think the best way to (rectify the situation) is have the federal government eliminate the economic development authority and give us (the state legislatures) the authority to start looking into this,” he stated.

“The DRPA should stop being a wish-list for governors to pull money for projects,” Sen. Rafferty stated.

A spokeswoman for United States Senator Arlen Specter, R-Pa, told The Bulletin that Mr. Specter is aware of concerns regarding the DRPA’s use of funds and is monitoring the matter.

The relationship of Pennsylvania Governor Ed Rendell, the Port Authority’s self-appointed Chairman, to his former law firm Ballard Spahr has also been called into question, as Ballard has received nearly $3 million in legal fees from the Authority since Rendell’s election in 2002. In the three years prior to that election, Ballard received only $25,000 from the Port Authority.

John Estey, former chief of staff to Gov. Rendell who routinely chairs board meetings on the governor’s behalf, is a partner at Ballard. He regularly votes to receive and authorize the DRPA’s monthly bills, including those from his own firm. Ballard’s invoice from December was over $33,000.

Chris Freind can be reached at cf@thebulletin.us

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Legislators, Citizens React to Ballard’s “No-Contract” Work

By: Chris Freind

Pennsylvania state legislators and community activists expressed outrage this week in response to the Bulletin’s Jan. 9 revelation that the politically connected Ballard Spahr law firm performed $773,000 of legal work for the Pennsylvania Turnpike privatization plan without a contract.

Chester county Republican state legislator Curt Schroder stated, “I can’t understand what was so urgent to the public’s interest that the attempted privatization of the Turnpike suddenly merited that a large no-bid contract be awarded. And that prior to that, why 2300 hours of work was done by Ballard with NO contract.” Mr. Schroder added, “At the very least, the Administration owes the public a complete explanation. Leasing the Turnpike has been a politically dead issue, regardless of its merits or lack thereof.”

Wally Zimolong, a center city attorney and Republican activist, was equally skeptical, stating that questions need to be answered about why Ballard performed work without a contract, and how they knew they would receive compensation.

“This whole thing reeks. I see several red flags. First, no reasonable business, particularly top notch attorneys like those at Ballard, performs work without a contract, unless they know they are getting paid, especially when the work performed is worth close to a million dollars,” Mr. Zimolong said. “So the question is how did Ballard know it would get paid? Was it the result of some back room deal with Mr. Rendell?,” he asked.

Companies performing state work normally negotiate a contract before commencing any activity. Without a contract, Ballard could not be compensated for its work, and was therefore required to sign a “Compromise, Settlement and Release” agreement initiated by the state Department of Transportation to receive payment retroactively.

Authorization to pay Ballard in this manner was justified “due to the extreme urgency of the work required,” according to the document.

The Bulletin has repeatedly illustrated the intimate relationship between the Governor and Ballard (see sidebar).

“The Bulletin article describes an incestuous and tangled web of relationships that can only be helpful in attracting no bid contracts from the administration,” Mr. Schroder added.

The legislator explained that this situation exemplifies the need to prevent big donors from obtaining no bid contracts. “I will be re-introducing legislation to place strict limits on campaign contributions for those who receive such government contracts. Anyone exceeding the low limits would not be eligible to receive such contracts,” he said.

Reform legislation sponsored by Republican Majority Whip Jane Orie, Allegheny, will be introduced in the state Senate next week; a similar bill passed 50-0 last session, but it was stifled in the Democratic-controlled House.

The Pennsylvania General Assembly should do all it can to eliminate the appearance of impropriety in regards to “Pay-to-Play” in Commonwealth government. This can be done by creating an open bid process and providing for transparency in regards to who is receiving state contracts and their political contributions,” Senator Orie said. “This issue is receiving an enormous amount of national coverage at the current time and there is no better time than now to adopt legislation to restore integrity as to how public dollars are spent,” she added.

Mr. Zimolong questioned the fiduciary duty the Governor owes to the taxpayers. “Ballard could have run up the bill as much as they wanted to, as this was open-ended. Theoretically, nothing prevented them from doing that, unless there was a gentlemen’s agreement of which we are unaware. Also, the hours worked are absurd,” he said. “Remember this was proposed legislation. Essentially, the Commonwealth paid to set up an outside law firm with 55 attorneys working 27 hours per 24 hour day, for 84 straight days, to perform due diligence for proposed legislation,” he added. “Setting aside that it is doubtful these Ballard attorneys worked 24/7, doesn’t the Commonwealth have a large number of attorneys among all state agencies? What do they do?,” he asked.

“While it’s true the Procurement Code allows services to be obtained in urgent cases without competitive bidding, the Code does require a written basis for the emergency, and why the particular party was selected for the work, to be included in the contract file. Taxpayers should demand to see that written basis in this case,” Zimolong said.

“Whether or not ‘pay to play’ can be proven in any particular situation, the appearance is certainly a big problem and continues to erode trust in government. It is time we take a strong stand against this continued practice,” stated Rep. Schroder.

Chris Freind can be reached at CF@TheBulletin.us

The Bulletin has published an ongoing series detailing the frequency and high-dollar amounts of no-bid state contracts doled out to Gov. Rendell’s political donors and friends. Please see the website for reference. www.thebulletin.us

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