Harrisburg, PA — Tom Corbett’s new ad highlights his hypocrisy and many inconsistencies on important economic issues. Tom Corbett says that he will oppose a tax increase, but in his only budget vote he raised property taxes by 20 percent. Tom Corbett also flip-flopped on including fees in his no tax pledge, first saying he would not raise fees and later putting fee increases on the table. Corbett talks tough on spending, but he has drastically increased the budget in his department during his tenure.

“Tom Corbett has a long record of hypocrisy and inconsistency. How can Pennsylvanians trust anything he says when he has increased taxes and refused to cut spending?” said Mark Nicastre, spokesman with the Pennsylvania Democratic Party. “Tom Corbett drastically increased taxes in his only budget vote, and now he’s flip flopped on increasing fees. While he talks about spending cuts, he refuses to cut spending for his department. How can Pennsylvanians trust anything Tom Corbett says?”

“Just like national Republicans, when it comes to fiscal responsibility Tom Corbett is all bark and no bite. Pennsylvania families know that the economic policies of George W. Bush and Tom Corbett brought our economy to the brink of collapse, and we can’t risk putting them back in charge.”

Corbett has supported massive tax increases. As a Shaler Township Commissioner, Tom Corbett raised property taxes by 20 percent in his only budget vote and earlier this year Corbett flip flopped on tax increases. In January, Corbett said tax increases were “a last resort” but he refused to rule them out. Only a month later, he signed the no tax increase pledge that he touts in his new ad. [Capitolwire, 1/9/2010 and Associated Press, 8/24/10]

Corbett has been inconsistent on fee increases. In March, Corbett told KDKA that his no tax pledge prevented him from increasing fees, but just last week a Corbett staffer told reporters that fees were not included in the pledge. [KDKA, 3/8/2010 and Capitolwire, 8/25/2010]

Corbett has a hypocritical record on spending. As Attorney General, Corbett has asked for an increase each year in office, including a 12 percent increase this year. At the same time, he has called for “across the board” spending cuts while promoting a campaign plan to cut spending in all agencies by 10 percent. [Harrisburg Patriot-News, 6/11/2010 and Capitolwire, 3/22/2010]

Today, State Senator Jane C. Orie (R-40) called on Governor Ed Rendell to suspend funding for the Keystone Exams, the Administration’s controversial end-of-year testing scheme.

In a letter to the Governor, Sen. Orie stated, “With federal rejection of our Race to the Top application, the $250 million shortfall in federal funding, and the fact the Administration’s chief advocate for the Keystone Exams (former Secretary of Education Gerald Zahorchak) is now rejecting them, I believe now is the right time to halt their development, particularly as a new Administration will soon be taking office.”

*One of the selling points of the Keystone Exams was the potential for Pennsylvania to win $400 million federal Race to the Top Funding.  Despite the Exams being adopted, Pennsylvania lost out on Race to the Top Funds.  With only 122 of 500 school districts on board, there was not sufficient local support for Pennsylvania application.

*The Commonwealth’s 2010-11 Budget was predicated upon the federal government enacting legislation appropriating $850 million in FMAP funding.  While federal legislation was passed and Pennsylvania will receive $600 million in FMAP funding, the Commonwealth will need to identify $250 million in spending reductions to truly balance our budget.

*According to the July 26^th Morning Call: “(Former Secretary and current Allentown Superintendent Gerald) Zahorchak will not use the new Keystone graduation exams for 11^th-graders that the state is paying an outside firm to develop. Instead, Zahorchak will use a different standards test, University of Cambridge International Examinations, to measure graduation preparedness.  Zahorchak said the Keystone exam will be a good test when it is complete, but he prefers to use a test 71 other countries use.”

Kim Geyer, President of Mars Area School Board stated, “Former Secretary Zahorchak’s decision not to utilize the Keystone Exams for Allentown School District flies in the face of hundreds of school districts statewide who fought in opposition to their being imposed as a one size fits all assessment system.  Secretary Zahorchak fought against local control.  Is it not ironic he has chosen at his own discretion to become the exception one of his own rules?”

20 Members of Congress Urge Action by USDA to Ensure That RuralAmericans Can Use Homebuyer Tax Credit and Complete Home Purchases WASHINGTON – Today, Congressman Paul E. Kanjorski (D-PA), Congressman Rubén Hinojosa (D-TX), and Congressman Travis W. Childers (D-MS) released a letter to Secretary Thomas J. Vilsack calling on the U.S. Department of Agriculture (USDA) to take all necessary steps to immediately implement each of the changes to the Section 502 Guaranteed Loan Program recently authorized by Congress to ensure the continued access to affordable mortgages for low- and moderate-income rural households.  As a result of the economic turmoil of the past two years, there has been a significant increase in demand for USDA’s Section 502 home loan program, and federal funding has failed to keep up with demand.  Congress responded in July by increasing the resources of the Section 502 program, and the correspondence comes in response to initial reports that USDA’s Office of Rural Development might be unable to implement modifications to the program until the next fiscal year.  In all, 20 Members of Congress joined in sending the letter, including House Financial Services Committee Chairman Barney Frank (D-MA), Housing Subcommittee Chairwoman Maxine Waters (D-CA), and Housing Subcommittee Ranking Member Shelley Moore Capito (R-WV). “USDA must quickly implement the changes to the rural program recently authorized by Congress,” said Congressman Kanjorski, Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises.  “Many families recently bought homes in anticipation of using the homebuyer tax credit, but USDA’s work to upgrade its information technology systems and sluggish efforts to execute recent changes to the affordable rural loan guarantee program could place these contracts in limbo.  Particularly during these difficult economic times, many rural homeowners have needed to use these guarantees to help them buy homes.  USDA must pick up its pace.” “Affordable rural housing is needed now more than ever as job losses and home foreclosures reduce the already inadequate housing options for rural Americans,” said Congressman Hinojosa, Chairman of the Congressional Rural Housing Caucus.  “Congress has provided USDA with the tools to resume the Section 502 Guaranteed Loan Program and given USDA Rural Development the authority to waive up to $697 million in fees for low-income borrowers.  USDA’s inaction is unacceptable, particularly as our economy begins to emerge from a very serious recession.”   “During today’s tough economic times, rural communities like those in North Mississippi have been hit especially hard.  It’s essential that rural homebuyers have immediate access to the increased resources and additional modifications that Congress approved this summer.  The fact that loan guarantees may otherwise be put at risk is deeply concerning to me, since this would jeopardize rural homebuyers’ ability to take advantage of the first-time homebuyer tax credit, which has given a significant boost to hard-working families, the housing market, and our economy. We simply cannot afford to slow down the implementation of these critical rural housing changes,” concluded Congressman Childers, an active Member of the House Financial Services Committee with a deep interest in rural housing issues. The text of the letter follows: Dear Secretary Vilsack: We are writing to request that the Department of Agriculture (USDA) fully restore the Section 502 Single Family Housing Guaranteed Loan Program for Fiscal Year 2010 by taking all necessary steps to immediately implement each of the changes to the Section 502 Guaranteed Loan Program authorized in H.R. 4899, the Supplemental Appropriations Act of 2010, which the President signed into law on July 29, 2010 (P.L. 111-212). As you know, the House passed H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010 in April in response to being notified that the Section 502 Program would exhaust its funding in May 2010.  The bill was drafted to ensure that the program continued to remain operational throughout the remainder of the fiscal year.  It authorized USDA to assess an upfront fee of up to 4 percent and increased the program’s loan commitment authority to $30 billion.  Although the Senate failed to act on this important legislation, Congress authorized additional credit authority, premium changes and fee waiver authority for low and very-low income borrowers as part of H.R. 4899 to restore the program and ensure its availability to homebuyers in need. Shortly after the President signed H.R. 4899 into law, we began to hear reports that USDA’s Office of Rural Development (RD) would not be prepared to implement the changes to the program until the beginning of the next fiscal year and in response we set up a call with Rural Development staff to discuss efforts thus far.  We were advised that due to the new provisions in H.R. 4899 that provided USDA with authority to increase the upfront fee to 3.5 percent, assess an annual fee of up to 0.5 percent and waive fees for low and very low-income homebuyers, the Department’s information technology (IT) systems would have to be upgraded.  Staff was further informed that these systems would not be fully operable until the middle of November, which is well into the new fiscal year.  This is simply unacceptable, particularly given that that the Department had ample opportunity to prepare for any needed changes to its IT systems well before the bill was enacted and given that prior changes to the upfront fee have taken only a few weeks to implement.  Additionally, we are deeply troubled that such a delay would effectively nullify USDA’s ability to waive fees for low and very-low income homebuyers for Fiscal Year 2010.  Consequently, we strongly urge you to implement this authority before the fiscal year ends or examine ways to implement this authority retroactively. We understand that RD is re-examining its decision to issue conditional loan commitments pending completion of the IT system upgrades.  We commend the Department for reconsidering its approach to implementing the new law.  As you know, the issuance of conditional loan commitments that includes a proviso making it subject to appropriations or subject to changes to the IT systems is problematic because it has caused many lenders to opt out of the program.  Indeed, several large lenders including Bank of America, Wells Fargo, and US Bank left the program in May when appropriated funds were exhausted.  We cannot afford to let rural America remain in limbo while RD updates its IT systems.  This is neither a viable nor an acceptable excuse. In addition, issuance of actual rather than conditional loan guarantee commitments is critical because many rural homebuyers finalized contracts on their homes before April 30, assuming they would be able to take advantage of the homebuyer tax credit.  They can only utilize that benefit if they can close on their loan by September 30.  While it is true that lenders can theoretically close these loans even with a conditional commitment that is subject to future action, we have been informed by lenders that in practice they will not close on these loans absent a firm federal government guarantee because of the credit risk associated with a conditional commitment.  Consequently, it is imperative that RD work with lenders to ensure that these homebuyers are able to close on their loans by September 30, 2010. In sum, we urge you to make every effort to fully re-establish this important federal program to provide rural homebuyers access to financing they are otherwise unable to obtain.  We thank you for your attention to this important matter and request a prompt response with a status update on the Section 502 Program.

Statute Used to Disqualify Independent Candidate’s Petition Signatures Was Declared Unconstitutional By A Federal Court In 2002

FOR IMMEDIATE RELEASE
August 31, 2010

ALLENTOWN, PA – The American Civil Liberties Union of Pennsylvania has appealed to the Pennsylvania Supreme Court a Commonwealth Court decision removing from the ballot Carl Stevenson, an independent candidate running for a state House seat in the 134th district (parts of Berks and Lehigh counties). Earlier this month a Commonwealth Court judge disqualified 97 of his petition signatures because they were obtained by someone who did not reside in the district. The statute requiring petition circulators to reside in the electoral district was declared unconstitutional by a federal court in 2002.

“Requiring petition circulators to be residents of the election district is a serious burden on independent and minor party candidates’ ability to gather the signatures necessary to get on the ballot, and there is no good reason for the requirement,” said Witold “Vic” Walczak, legal director for the ACLU of Pennsylvania, who is representing Stevenson.

Walczak noted that every federal court that has considered a challenge to residency requirements for petition circulators has declared them to violate the First Amendment’s guarantee of freedom of speech.  In 2002, a federal judge ruled in Morrill v. Weaver that Pennsylvania’s residency requirement for nominating petition circulators violated the First Amendment. As part of the ruling, the judge issued a permanent injunction preventing the commonwealth of Pennsylvania from enforcing the law.

Under Pennsylvania law, as an independent candidate Stevenson was required to collect 577 signatures from registered voters in the district to appear on the ballot. Nowhere in the materials provided to him by the Pennsylvania Department of State did it require that the people obtaining the signatures needed to be residents of the district; they must simply be “qualified electors,” which has been interpreted to mean eligible voters in Pennsylvania.  In fact, Department of State personnel advised Stevenson that the district-residency requirement had been declared unconstitutional.

Alburtis Mayor Robert Mader and Michael Gibson of the Emmaus Republican Committee challenged Stevenson’s nominating petitions on behalf of the Republican candidate and incumbent in the race, Doug Reichley. Without the 97 signatures gathered by the individual from outside his district, Stevenson would not have enough signatures to appear on the ballot.

In its ruling against Stevenson, the Commonwealth Court refused to respect the federal court’s injunction in Morrill v. Weaver, writing that “decisions of the federal district courts and courts of appeal … are not binding on Pennsylvania courts, even when a federal question is involved.”

“It’s disturbing that the major parties will spend so much money, time, and effort in their efforts to maintain a stranglehold on our political system,” said Stevenson, who is also the president of WK3C Wireless, a consulting firm.  “If they only worked half as hard listening to the people instead of trying to run our lives for us, the world would be a better place.”

“Pennsylvania is one of the toughest states for independent and minor-party candidates to get on the ballot because they require such a high number of signatures,” said Walczak.  “The state shouldn’t be able to further handcuff candidates by imposing unwarranted and unconstitutional restrictions on who can collect petition signatures.”

In addition to Walczak, Stevenson is represented by ACLU-PA staff attorney Mary Catherine Roper.

More information, including a copy of the Commonwealth Court’s decision, the appeal, and the Morrill v. Weaver decision, is available at:
http://www.aclupa.org/legal/legaldocket/nominatingpetitionofcarlst.htm

Highlight Need to Support Vital Social Services during Recession

PHILADELPHIA, Pa. – U.S. Senate candidate Joe Sestak and his wife Susan Clark-Sestak visited Philadelphia-area social services today where they called for more support for these vital resources.

Meeting with staff and patients at the Woodland Avenue Health Center, Joe said that programs like these have been an essential lifeline for those hit hardest by the recession, requiring leaders to not just support medical programs but also to ensure that everyone has access to comprehensive and affordable healthcare.

“Greater Philadelphia Health Action has served over 80,000 patients in the Delaware Valley – and that’s something to be extremely proud of,” said Joe. “Access to quality health care should be a right, not a privilege. That’s your mission here – and that’s the cause I will continue to work toward in the U.S. Senate”

Access to healthcare has been a deeply personal issue for Admiral Sestak and Susan since their daughter Alex was diagnosed with a brain tumor five years ago. Thanks to the health coverage provided by the Navy, Alex was able to get the treatment she needed to recover, but Susan said many more families are faced with the daunting challenge of how to provide for their children’s health.

“We want to be sure that people in Washington are looking out for our interests,” said Susan. “We need leaders who will take care of people who are working hard or looking for work and struggling to make ends meet, and fight for our values like access to health care.”

Susan said Joe helped take the country one step closer to guaranteeing the same kind of coverage they received in the Navy with the passage of the healthcare reform bill earlier this year, a law Congressman Toomey opposes.

“I am against an opponent who wants to stop progress dead in its tracks,” said Joe. “What doesn’t he like about what we passed? Is it that a woman can’t be discriminated against in coverage because she can do something a man can’t? Is it the free preventative screenings for seniors? Is it the fact that children like my daughter can’t be denied for pre-existing conditions? Is it the fact that small businesses get tax credits to pay for health care for employees? Or is it the fact that we decrease the national debt?

“Not only was the health care effort the right thing to do, it was an economic necessity,” said Joe.

Prior to their stop at the Woodland Avenue Health Center, Susan visited the Maternity Cares Coalition’s Early Head Start location in South Philadelphia, where she visited with young parents and their children. She later went to the Community Women’s Education Project where she spoke with students in a career coaching class about the unique challenges they face entering a job market still in the midst of recession. She said her husband is working to expand job opportunities with more job training programs and a 15 percent tax credit for small business that hire new workers.

“Joe will do whatever it takes to create jobs, so you can put the skills you develop here to good use,” said Susan. “He’ll always stand on the side of those who work, and those who want to work.”

At both events, Susan spoke of the necessity of a good education from Head Start to college that places an emphasis on preparing students for the 21st century workforce they will enter. Susan noted that while her husband voted to boost funding for Head Start by $2.1 billion and helped expand access to college financial aid, Congressman Toomey voted to slash the education budget by $3 billion and even to allow Head Start to practice discrimination while hiring staff.

After her stop with Joe at the Woodland Avenue Health Center, Susan will make a final stop at Anna’s Place in Upper Darby. The site is used for a number of programs geared toward women and children, including support groups, language classes, legal and other help.

Joe and Susan’s stops through Philadelphia mark the last day of Admiral Sestak’s Jobs and Opportunities Tour, during which he visited small businesses, community centers and housing projects to discuss the struggles urban areas like those in Philadelphia have faced and the need for practical solutions that will help turn the economy around.

Joe Sestak was elected to Congress in 2006 after a distinguished 31-year career in the United States Navy, and he is honored to represent the Southeastern Pennsylvania district where he was born and raised. He is a Democratic candidate for the U.S. Senate seat from Pennsylvania.  During his Navy career, Joe attained the rank of 3-star Admiral, served in the White House as Director for Defense Policy on President Clinton’s National Security Council, served in the Pentagon as Deputy Chief of Naval Operations, and led a series of operational commands at sea, culminating in command of the USS George Washington Aircraft Carrier Battle Group (30 ships, 100 aircraft, and 15,000 sailors/marines/aviators/SEALs) during combat operations in Afghanistan and Iraq. In our nation’s time of crisis in the immediate aftermath of 9/11, the Navy turned to Joe Sestak to serve as the first Director of “Deep Blue,” the Navy anti-terrorism unit formed in response to the attacks. Joe is the highest-ranking former military officer ever elected to either branch of Congress. He graduated second in his class from the U.S. Naval Academy and holds a Master’s in Public Administration and a PhD in Political Economy and Government from Harvard University. Joe lives in Delaware County, Pennsylvania, with his wife, Susan, and daughter, Alex, and proudly represents the 7th District, where his mother and many of his seven siblings still reside.

Allentown –  Toomey Communications Director Nachama Soloveichik released the following statement in response to Congressman Setak’s anti-jobs attack ad: “Joe Sestak has had all summer to think of something to say about his record in Washington, and he couldn’t come up with one thing that Pennsylvanians would like.  After Sestak voted 100% with Nancy Pelosi, and voted for the disastrous Obama health care bill, for the Wall Street bailouts, and for record national debt, it’s no surprise that his first television ad is 100% negative.”  “Like he has done so many times before, Congressman Sestak takes Pat Toomey’s comments out of context.  In the 2007 video, Pat was merely trying to explain that consumers ultimately pay for taxes on businesses through higher prices.  Pat agrees with President Obama’s own expert tax panel which proposed cutting the tax on businesses to make U.S. companies more competitive.  Pat understands that a zero tax rate on businesses is impractical for a host of reasons, and that’s why he has consistently argued for lowering taxes on businesses to create jobs, and that’s a major difference between Pat and Joe Sestak.  Pat believes jobs comes from cutting taxes and reducing deficits and Sestak believes jobs come from more Washington spending and a failed stimulus bill.” Background President Obama’s Expert Panel Supports Lower Taxes on Businesses President Obama’s own expert tax panel argued that the country’s business tax was “deeply flawed and in need of reform,” and proposed cutting the business tax rate. (Reuters, 8/27/10) Congressman Sestak’s Appalling Record on Job Creation Setak voted for cap-and-trade legislation (RC #477, 06/26/09) that would kill tens of thousands of Pennsylvania jobs.  44 Democrats voted against it, including 4 Pennsylvania Democrats.  Sestak even said the legislation didn’t go far enough. Sestak: “I was disappointed in this bill because I thought it was eviscerated during the process too much.  I did vote for it however because it’s better than not having it done. (Netroots Nation, 08/14/09)Sestak: “I pushed hard for the cap-and-trade bill.  The one the House passed should have been even more.” (Senate Forum Urban Issues, 05/03/00)According to the Pennsylvania Public Utility Commission: The Cap and Trade Bill will have a “profound adverse impact” on the Commonwealth.  It will also results in a net loss of as many as 66,000 jobs and a sizable hike in electric bills of residential consumers. (Letter to PA Congressional Delegation, 05/07/09)According to the Beacon Hill Institute, Pennsylvania will lose 47,549 jobs by 2020 and 480,852 by 2050. (The Beacon Hill Institute, June 2009)According to projections by the Energy Information Administration and the nonpartisan CBO, the net effect of the cap-and-trade bill will likely be to slow future job growth. (Factcheck.Org, 10/27/09)Sestak voted for a government-run health care bill that would impose billions of dollars in taxes on small businesses (Energy and Commerce Committee, 07/17/09) (RC #887, 11/07/09) (H.R. 3590, CQ Vote #165, 3/21/10)The CBO said about the health care bill that: “A play-or-pay provision would reduce the hiring of low-wage workers, whose wages could not fall by the full cost of health insurance or a substantial play-or-pay if they were close to the minimum wage.” (CBO, 07/13/09)Middle-income taxpayers will be hit with $3.9 billion in new taxes in 2019 alone according to the Joint Committee on Taxation. (The Hill, 04/12/10)The President/CEO of the Greater Pocono Chamber of Commerce said the health care law “will be catastrophic to the business owner.” (Pocono Record, 03/21/10)The Pennsylvania chapter of the National Federation of Independent Business called the new health care law “devastating” and criticized the legislation for being “paid for on the backs of small business.” (NFIB)Medical equipment companies in Pennsylvania are being hit with a new tax because of the health care bill. (The Times Leader, 03/28/10, Morning Call, 03/26/10)Sestak supported irresponsible bailouts at the expense of taxpayers on Main Street.Sestak voted to bail out Wall Street (RC #674, 09/29/08, RC #681, 10/03/08).  He even said, “this was the most consequential vote I have taken these two years.” (09/30/08)Sestak voted to release the second round of bailout funds for Wall Street. (RC #27, 01/22/09)Sestak voted to bail out Fannie Mae and Freddie Mac. (RC #519, 07/23/08)Sestak is sponsoring The Home Ownership Vesting Plan Act of 2009 (HR 1356) that would force hardworking homeowners to bailout other people’s mortgagesSestak voted to bail out the auto companies. (RC #690, 12/10/08) Sestak co-sponsored and is a current cosponsor of Card Check (HR 800, RC #118, 03/01/07) (HR 1409)According to a study done by the Alliance to Save Main Street Jobs, the unionization of 1.5 million existing jobs under EFCA in year one would lead to the loss of 600,000 jobs by the following year. (“An Empirical Assessment of the Employee Free Choice Act: The Economic Implications,” Alliance to Save Main Street Jobs, 03/05/09)Many groups like the Chamber of Commerce and the National Federation of Independent Business oppose the legislation

Will NYS leverage the potential of the Marcellus Shale into jobs and revenue during tough economic times? Or will it continue to hide behind the “Marcellus Maginot Line”?
Everyone’s heard of the famous Mason-Dixon line that separates the commonwealth of Pennsylvania from the state of Maryland (and Delaware too, incidentally). But what do you call the thing that separates the Northern Tier of Pennsylvania from the Southern Tier of New York? Ask any cartographer, and she’ll tell you it’s known as the “42nd parallel,” the same latitudinal line that extends west to set the boundary between Oregon and California as well.
Now ask that question of the 8,000 people in Broome Co., N.Y. who currently find themselves unemployed during one of the most difficult economic periods in recent history. Ask the 4,100 in Steuben Co who are without work. Or the 3,300 in Chemung Co. Or the 2,000 in Chenango. Ask what the northern border between New York and Pennsylvania symbolizes to them — and a good many will tell you it’s a brick wall keeping the jobs and revenue being generated in Pennsylvania’s portion of the Marcellus from crossing the border and getting into the hands of folks who need those things just as much in New York.
Want to know how badly the region’s economy can use a good shot in the arm right now? We’ll leave it to New York’s State Department of Labor to apply the proper perspective on what continues to be a very difficult time for residents in the Southern Tier who actually make stuff for a living: Manufacturing accounted for about 65% of the [Southern Tier’s] job losses in 2009.  Last year, total factory jobs dropped to 40,800, an all-time low.  From 1990 to 2009, manufacturing jobs in the region fell by 26,000 (-39%). … Manufacturers continue to shed jobs.  Lockheed Martin laid off over 1,000 highly paid workers in Owego (Tioga County, N.Y.). Of course, in Pennsylvania, the state’s manufacturing industries are headed in the right direction these days thanks to the “Marcellus Multiplier” — a phenomenon that has spurred a revival up and down the natural gas supply chain thanks to $1.90 in direct economic output being generated for every $1 invested in the state by Marcellus producers. But here’s a question: What should we call the wall that denies thousands of New York residents access to those same opportunities? It certainly deserves a name. “Marcellus Meridian” immediately comes to mind, but alas, meridians are lines of longitude — not latitude. “Tropic of Cancel”? Let’s not take this thing too far, huh? How about the “Marcellus Maginot Line” – a 250-mile barrier set up to defend the Southern Tier from an influx of jobs, revenue and energy security? Unfortunately, unlike the real Maginot Line, you can’t just cut through northern New Jersey to outflank it — this one actually works. Just take a look at recent proceedings up in Broome Co., N.Y. for proof of that: Broome County has decided to pass on a deal to lease thousands of acres of land to … Inflection Energy. The announcement was made Tuesday afternoon, less than 24 hours after a public hearing on the issue. … Broome County Executive Barbara Fiala says she met with the legislature and found out that only four of 15 people were planning to vote in favor of the plan. Inflection Energy had given the county until Thursday to decide whether or not it would lease 5,600 acres of land in exchange for about $15 million. Actually, the case of Inflection Energy and its months-long conversation with officials in Broome Co. over leasing opportunities in the Marcellus represents an interesting example of how one state’s failure to decide can be another’s opportunity for action. In a proposal sent to officials earlier this year, Inflection Energy offered to pay Broome Co. more than $15 million for the leasing rights to 5,600 acres of county-owned land – non-refundable money it was prepared to send without any guarantee that the de facto statewide moratorium would be lifted, and without any assurances from its geologists that the acreage it was considering actually contained natural gas. How much is $15 million? Five percent of the entire county budget, for starters – and nearly $10 million more than the total budget shortfall currently facing local residents. But that deal’s still not sweet enough for you, is it? Fair enough. How about a 20 percent royalty stake guaranteed by the company — regardless of how low natural gas prices may dip in the future? How about a three-year option that would translate into a doubling of lease payments at the end of the initial five-year lease window? Worried about sensitive acreage? How about a responsible development plan furnished by the company that would ensure the vast majority of land up for consideration never actually sees a drill bit? That, in effect, was the offer county officials had in-hand and under advisement at the end of last month. Unfortunately, they said no. And exactly who ended up benefiting from that decision? Certainly not the state of New York, currently living under the strain of a $9 billion gap in the state budget. Certainly not Broome and its county seat of Binghamton, where one study compiled last year predicted responsible Marcellus development could create more than 15,000 high-wage jobs. Nope. But you know who made out just fine? Pennsylvania did – with Inflection Energy just this week announcing its plans to expand its operations there, and open up a brand new office in Pittsburgh to boot. This from Inflection’s press release: Energy. The opening of the Pittsburgh office signals Inflection’s intentions to become more active in northern Pennsylvania, given that shale gas development has been placed on hold in New York State.  Although we have substantial land holdings in New York, the de facto moratorium on the issuance of permits, as well as the negative messages coming from the New York State Legislature, have led us in this direction.
Walk around the halls in Albany long enough, and more than one “expert” will tell you that just as soon as New York lifts its backdoor ban on the Marcellus, all will be well, swell and forgotten – with companies from far and wide making the move to the Empire State overnight, bringing with them billions of dollars in capital currently being spent on projects in Pennsylvania, West Virginia and even Texas. That, and jobs. Lots and lots of jobs. And who knows? Maybe they’re right. But whereas it’s easy to transport people and money from place to place, it’s a lot harder to relocate infrastructure. A lot harder to move the bricks-and-mortar service and training facilities currently preparing workers in Pennsylvania to deliver on the promise of the Marcellus for New York – should it ever decide it wants it. A lot harder to convert a permanent job in one state into a permanent one in another. Especially when those states share a border. We know, New York: You’re worried that all these high-wage, family-supporting Marcellus jobs will be snapped up by carpetbaggers from Texas and Oklahoma. Worry no more. The longer the delay continues, the greater the likelihood these jobs will be claimed by a different group of foreign labor altogether. They’re called Pennsylvanians.

WASHINGTON – National Republican Senatorial Committee (NRSC) Press Secretary Amber Marchand issued the following statement and fact check today in response to liberal U.S. Representative Joe Sestak’s (D-PA) misleading new TV ad today.

“Joe Sestak’s liberal rhetoric simply doesn’t match reality. Sestak’s misleading ad conveniently fails to mention the fact that the tax cuts he attacks were supported by experts who were appointed by his own party leaders. Sestak also fails to mention that he voted for Washington bailouts and took money from the financial industry. Pennsylvanians can see through Joe Sestak’s hypocrisy, which is why they will elect a real leader in Pat Toomey this November.”

Notably, Sestak’s ad comes on the same day that a new Reuters/Ipsos poll shows Republican Senate nominee Pat Toomey (R-PA) maintaining a strong 10-point lead over Sestak, despite the fact that national Democrats have spent over $1 million. Clearly, Keystone State voters aren’t buying the misleading attacks that Sestak and his party leaders in Washington are attempting to sell just 63 days from the midterm elections.

Background Information:

Experts Appointed By The Obama Administration And At Key Think Tanks Have Advocated For Cutting The Corporate Tax Rate:

An Expert Tax Panel Named By President Obama Recommended Cutting The Corporate Tax Rate. “An expert panel named by President Barack Obama spelled out ideas to clean up the byzantine U.S. tax code, including sending a pre-filled-out return to some individuals and paring the corporate rate while cutting loopholes.” (Kim Dixon, “Tax Code Panel Suggests Cutting Corporate Rate,”Reuters, 8/27/10)

• “Still, The Report Outlines The Benefits Of Cutting The Corporate Rate, Including Encouraging Savings And New Investment. It Did Not Recommend A Specific Figure.” (“Tax Code Panel Suggests Cutting Corporate Rate,” Reuters, 8/27/10)

The Report Called The Corporate Tax System “Deeply Flawed And In Need Of Reform.”“The U.S. corporate tax system is ‘deeply flawed and in need of reform,’ according to a report released Friday by an advisory panel to the White House led by former Federal Reserve Chairman Paul Volcker.” (Martin Vaughan and Jared A. Favole, “Corporate Tax System Flawed, Report Says,” The Wall Street Journal, 8/27/10)

“The Report Puts Forward Several Proposals Aimed At Improving Corporate Taxes, Including Cutting The Corporate Tax Rate . . . .” (Martin Vaughan and Jared A. Favole, “Corporate Tax System Flawed, Report Says,” The Wall Street Journal, 8/27/10)

The Heritage Foundation: “The United States Has The Second Highest Corporate Tax Rate Of Any Of The 30 Countries In The Organization For Economic Cooperation And Development.” “The United States has the second highest corporate tax rate of any of the 30 countries in the Organization for Economic Cooperation and Development (OECD) – a collection of the most economically developed countries in the world. The federal rate is 35 percent. Add on the average state corporate income tax and United States businesses pay a top rate over 39 percent. This is just below Japan which has a rate slightly over 39.5 percent.”  (The Heritage Foundation, “High Corporate Income Tax Rate Driving Jobs Overseas,” http://blog.heritage.org, Posted 5/5/10)

The CATO Institute: “The U.S. Corporate Tax System Has Become Unwieldy, Inconsistent With World Practice, And Highly Anticompetitive.” (Duanjie Chen and Jack Mintz, “U.S. Effective Corporate Tax Rate On New Investments: Highest In The OECD,” The Cato Institute, May 2010)

Sestak Voted For Washington Bailouts:

Sestak Voted Twice In Favor Of Appropriating Funds For TARP. (H.R. 3997, CQ Vote #674: Rejected 205-228: R 65-133; D 140-95, 9/29/08, Sestak Voted Yea; H.R. 1424, CQ Vote #681: Agreed To 263-171: R 91-108; D 172-63, 10/3/08, Sestak Voted Yea)

• Sestak Voted Against Denying The Further Release Of TARP Funds. (H. J. Res. 3, CQ Vote #27: Passed 270-155: R 171-4; D 99-151, 1/22/09, Sestak Voted Nay)

Sestak Voted In Favor Of The Mortgage Bailout Bill. (H.R. 3221, CQ Vote #519: Adopted 272-152: R 45-149; D 227-3, 7/23/08, Sestak Voted Yea)

Sestak Voted For A $14 Billion Bailout Of The Auto Industry. (H.R. 7321, CQ Vote #690: Passed 237-170: R 32-150; D 205-20, 12/10/08, Sestak Voted Yea)

Sestak Voted For The “Stimulus” Bill, Which Allowed For AIG Bonuses. (H.R. 1, CQ Vote # 70: Adopted 246-183: R 0-176; D 246-7, 2/13/09, Sestak Voted Yea)

• The “Stimulus” Bill Allowed For Huge Bonuses To AIG Executives. In Mid February 2009, Politico Reported “Executive Bonuses Doled Out In Contracts Signed Before February 11 Would Not Be Impacted.” “[T]he rules in the stimulus bill apply not only to companies that receive bailout funds in the future, but also to those that have received TARP money in the past – although executive bonuses doled out in contracts signed before February 11 would not be impacted.” (Carol E. Lee, “Dodd Banker Pay Cap One-Ups Obama,” Politico, 2/14/09)

AIG, Which Received Nearly $200 Billion In Federal Bailout Funds, Paid Bonuses To 418 Employees, Including $1 Million Each To 73 People. “The bonuses that the American International Group awarded last week were paid to 418 employees and included $33.6 million for 52 people who have left the failed insurance conglomerate, according to the office of the New York attorney general. The company paid the bonuses, including more than $1 million each to 73 people, to almost all of the employees in the financial products unit responsible for creating the exotic derivatives that caused A.I.G.’s near collapse and started the government rescue to avoid a global financial crisis. A.I.G. has received nearly $200 billion in federal bailout funds.” (Jackie Calmes and Louis Story, “418 Got A.I.G. Bonuses,” The New York Times, 3/18/09)

Sestak And His Fellow Democrats In Congress Have Taken Money From The Securities & Investment Industry:

Over His Career, Sestak Has Taken At Least $385,376 From The Securities & Investment Industry. (Center For Responsive Politics, www.opensecrets.org, Accessed 8/31/10)

Over His Career, Obama Has Taken The Most Money Of Any Politician From The Securities & Investment Industry Totaling At Least $16,041,389. (Center For Responsive Politics,www.opensecrets.org, Accessed 8/31/10)

Over Her Career, Pelosi Has Taken At Least $596,450 From The Securities & Investment Industry. (Center For Responsive Politics, www.opensecrets.org, Accessed 8/31/10)

Over His Career, Biden Has Taken At Least $ $927,825 From The Securities & Investment Industry. (Center For Responsive Politics, www.opensecrets.org, Accessed 8/31/10)