By Angela Couloumbis, Joseph DiStefano and Craig McCoy, includes “… The documents lay bare the scope of the probe and reveal that prosecutors and the FBI are investigating possible “honest services” fraud and wire fraud. Under a key 2010 U.S. Supreme Court ruling, federal prosecutors would need proof of illegal payments to charge state officials with the crime of not providing honest service, criminal-law experts say.”
By Mary Williams Walsh, includes “The Pennsylvania teachers’ retirement fund put more than half its assets into risky alternative investments. The math didn’t work out, spurring an investigation. ”
Letter to the editor by James Largay, includes “… The article states that PSERS — the teachers’ retirement plan — has unfunded obligations exceeding $40 billion; this amount is much smaller than the true liability.”
By Joseph DiStefano, includes “In Pennsylvania, state lawmakers have had a problem common among politicians. They’ve liked to increase benefits, but didn’t like making anyone pay for them.”
By Kerry Benninghoff, includes “While this latest round of federal relief is an ill-conceived debt undoubtedly to be paid by future generations of Americans through higher taxes, it should not be coupled with an immediate money grab by the very government entities it is designed to help.”
Repost of Altoona Mirror editorial, includes “Pennsylvania’s revenue situation can be likened to what every day can be seen on the Weather Channel. … Regardless of the ‘weather’ forecast, state government, as well as the people whose taxes finance it, need to feel uneasy about what lies ahead on the Keystone State’s money front. ”
Here’s a breakdown of the issues facing the $62 billion pension fund for teachers. They include a botched figure for financial performance and FBI questions and subpoenas.
By Marc Levy (AP), includes “… The calculation — 6.38% growth over the nine years ending last June 30 — was slightly above a 6.36% growth threshold, thus protecting nearly 100,000 active school employees who are retirement system members from seeing a higher risk-sharing contribution rate kick in …”
By Yves Smith, includes “… returns allegedly falsified to avoid increased worker contributions … As the Philadelphia Inquirer, which broke this story, explains, even in the event that the PSERS’ investment performance meets or exceeds its investment target, only taxpayers will be on the hook to make up for a funding shortfall. If it falls below the target, both employees and taxpayers pony up. …”
Includes “The board of Pennsylvania's largest public pension system, the Public School Employees’ Retirement System, said it is investigating a consultant's calculation about the fund's investment performance last year that is apparently wrong.”
Letter to the editor by Libby Hutcheson, includes “I read with great interest the news that our state Senator Mike Regan's wife, Fran, had been appointed to the State Gaming Control Board with an annual salary of $145,000, a six-year term, a $177 per diem rate and a pension based on the $145,000.”
By Tom Davidson, includes “Forty-four Pittsburgh residents have petitioned for a hearing before City Council to ask for a local resolution to support a movement that calls for reduced defense spending."
By Andrew Bankson and Brian Gonnella, includes “Despite the liberal buzzwords and soothing platitudes, the Pittsburgh city budget is a further entrenchment of the same capitalist status quo that has dug in to most American municipalities. It is a status quo defined by austerity policies and increasingly higher investments into the local police state..”
Letter to the editor by Jack Fisher, includes “Did I really read your article ‘Governor seeks overhaul of Pennsylvania’s highway funding’ correctly? Specifically, that our Turnpike Commission paid $652 million in interest and borrowing costs last year — half of its total revenue, and more than its total operating costs for the year? Even worse, turnpike tolls have doubled in the last 12 years. … I really don’t need my accounting degree to figure this one out.”
By Scott Rasmussen, includes “… On a percentage basis, the biggest increases were found in Idaho, Arizona, Nevada, and Utah.”
A new report finds that Philadelphia’s budget deficit would cost each of the city’s 1.5 million residents $27,500 to balance, representing the fourth highest tax burden in the country.
With all the pandemic-related economic disruptions of 2020, many Americans are relying on the federal government — particularly stimulus checks and SBA loans — to offer financial relief.
A new report ranked Pennsylvania 38th in the nation in managing its total debt load, giving the state a “D” grade for its overall fiscal health.
The state Senate Finance Committee unanimously approved legislation that clarifies the treatment of Paycheck Protection Program (PPP) loan forgiveness under the Pennsylvania personal income tax (PIT) law. The measure is supported by the PICPA.
The 2020 Financial State of the States report surveys the fiscal health of the 50 states prior to the coronavirus pandemic. This data is released today by Truth in Accounting (TIA), a think tank that analyzes government financial reporting.