Groundhog Day Celebration from Punxsutawney from Gobbler's Knob in Punxsutawney
00:10 - Pcn capital preview i'm Francine shirts are
00:13 - today we'll talk about state politics
00:15 - but first we're joined by Angela Columbus investigative
00:18 - reporter for spotlight pa thanks for joining as.
00:21 - The morning
00:22 - you wrote about the sunshine law and the state lawmakers efforts to further clarify
00:26 - when it needs to be enacted for those unfamiliar can
00:28 - explain what the sunshine law is and what purpose it serves.
00:32 - So the sunshine law is basically the open meetings law for Pennsylvania
00:38 - and it requires governmental agencies to conduct their business
00:43 - and their deliberations in public and.
00:46 - Take any official votes in public
00:49 - and it's a very
00:51 - you know
00:51 - very empty current law for transparency
00:55 - because the more the public knows about what it's government is doing
01:00 - and the earlier it knows about what it's government is doing the more it can
01:04 - participate in that decision making.
01:07 - The state supreme court weighed in on circumstances where the sun
01:10 - sunshine light can be exempted what kind of exceptions
01:13 - they do they identify.
01:15 - Well first we should harken back to twenty twenty one that's when the legislature
01:19 - added a provision to the sunshine act which basically said
01:23 - you have to if you're a governmental agency and you're about to have a meeting you
01:27 - have to make your meeting agenda public twenty four at least twenty four hours ahead
01:31 - of time so that the public has time to review
01:34 - what is on the agenda and know what is happening.
01:37 - There are certain exceptions
01:40 - that when the legislature passed that twenty twenty one amendment
01:44 - that they put in there
01:45 - there are exceptions for emergency matters that come up
01:49 - there are exceptions for what is called de minimis
01:51 - matters or matters that are not not significant and don't
01:55 - involve the expenditure of taxpayer money and there there's
02:00 - a third and a fourth exception and this is where
02:02 - the supreme court decision comes in the third x
02:05 - exception is
02:07 - for for instance if a resident brings up a matter during
02:11 - a meeting
02:11 - that requires some sort of have again de minimis action
02:16 - and then there is this word or the fourth exception which
02:20 - is aboard a governmental entity can take up a vote on.
02:26 - A matter that has just been added to the agenda by a majority vote
02:30 - and that is where the rub happens
02:34 - and the supreme court decision in the recent supreme court decision comes in.
02:40 - State represent Bob Freeman is sponsoring legislation that would further clarify the
02:44 - circumstances around sunshine law exemptions and what exactly what is bill to.
02:50 - So the supreme court decision which came out late last year
02:54 - was a forty three decision.
02:56 - The issue was
02:57 - can a board it came down to that fourth exception the majority vote exception can
03:03 - aboard add a last minute vote to an agenda
03:07 - by a majority vote
03:09 - and.
03:10 - The supreme court
03:12 - basically said yes
03:13 - that language in the law allows that to occur
03:17 - and even though the other side had argued that it was bad for transparency and it
03:22 - went against the spirit of the law.
03:25 - The supreme court found that that word or basically
03:28 - allowed it to be a stand alone lone exceptions so
03:32 - representative Freeman's bill would tighten that language and make sure that the
03:37 - fourth exception is not a stand alone exception
03:40 - and instead become sort of a procedural aspect
03:44 - where if you
03:45 - if somebody if a board wants to take a last minute
03:48 - action on an emergency or a dem venomous matter
03:51 - it would have to then first
03:54 - have a majority vote to allow it to come up
03:57 - how are lawmakers reacting to representative Freeman's proposal.
04:01 - It has
04:02 - it has a lot of support it has bipartisan support i don't anticipate that it will be
04:07 - an issue in terms of being approved i think
04:10 - the legislatures intent in twenty twenty one
04:13 - was to make it
04:15 - very difficult for a board to
04:17 - add a last minute measure to an agenda because
04:20 - you know
04:21 - you don't want controversial things that have not been advertised ahead of time to
04:27 - come up and you don't want any government entity to take advantage of that so i don't
04:33 - anticipate that there will be pushback
04:35 - i think the worrisome sometimes in all of these
04:38 - with all of these big bills like the sunshine act is if you open it up to an
04:43 - amendment what else is somebody going to bring up at the last minute.
04:47 - As someone who's made a career in journalism how important is the sun
04:50 - sunshine law to your ability to cover the workings of government.
04:54 - It's huge i mean being able to have access to an agenda ahead of time to study an
04:59 - issue to figure out what the prob pozole is what the potential pitfalls are.
05:04 - Are huge in our ability to inform the public about what is actually happening and if
05:09 - there are any hidden provisions in an issue or a policy that they should know about.
05:15 - Angela Columbus thank you so much for joining us this morning.
05:18 - Thank you for having me
05:19 - more of the pcn capital preview after the sharp break.
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05:55 - Al.
06:16 - Wake up to the pcn capital preview live mondays and Tuesdays at nine am
06:21 - easy and is
06:22 - everything Pennsylvania politics and policy.
06:26 - Welcome back our guests today are Mark single former
06:28 - Pennsylvania lieutenant governor and acting governor
06:31 - and Charlie Jerome ceo of quantum communications
06:35 - the governor's exp
06:35 - to present his state budget address tomorrow we're also heading into a governor's
06:39 - race and midterm elections Charlie will start with you
06:42 - how much of what happens in Pennsylvania will be influenced by what's been happening
06:45 - at the federal level under the trump administration
06:48 - while i think some will be it's always
06:50 - a situation where the state
06:52 - budget and state politics are influenced by the natural level but particularly right
06:57 - now i think it's going to be enhanced.
07:00 - Arc your thoughts.
07:02 - Well without question i think you can't escape what's happening in Washington
07:06 - and in fact i think it shows some very
07:08 - positive signs for democrats
07:10 - in all of the races
07:12 - all twenty five of the special election races
07:15 - have been held in the last couple of months
07:18 - the democrats have over performed and won
07:20 - every one of those seats that we're float i think that
07:24 - jails the jail i think people are tired of the chaos in Washington it's going to
07:28 - impact politics here in Pennsylvania in November for sure
07:32 - Mark Martin editorial
07:33 - that appeared in pen live on January twenty fourth entitled
07:35 - when nobody believes the president anymore and quote
07:38 - you right
07:39 - quote the real damage is that the credibility and moral leadership of the united
07:42 - states of america is declining day by day and quote
07:45 - what has president trump done to make you see him as an incredible.
07:50 - While the most recent example was his performance
07:53 - over in demos.
07:55 - You can't go up in front of all of your allies and attacked
07:58 - viciously like he did
08:00 - and castigate them and then expect for their support
08:04 - and then to top it off he goes on this cockamamie idea
08:08 - about just simply
08:09 - taking Greens
08:10 - Greenland mean there's no
08:12 - possible way that that makes any sense
08:15 - it would be like Canada saying to us hey
08:17 - we're going to attack Montana tomorrow
08:20 - so i think that he's losing credibility on the international stage
08:24 - and i think it translates to a lot of people saying we
08:27 - we might want to rethink whether or not we want anybody like
08:31 - near the presidency again.
08:33 - Charlie that's well marked by friend has suffered from
08:36 - talk trump derangement syndrome for a long time so
08:39 - it's not
08:40 - surprising to me that he would write an editorial like that Francine
08:44 - but i mean
08:44 - what the president did in davos a lot of people think was a good idea to tell some of
08:49 - our allies that they needed to get their act together
08:52 - and many of them have
08:54 - the other response wasn't what
08:56 - have
08:56 - folks
08:57 - on the left are suggesting in fact that was precisely the opposite
09:01 - no we shouldn't invade Greenland
09:03 - but look what the president came up with
09:05 - you know all this rigmarole on the left and
09:08 - he got a working arrangement for
09:11 - the us to get
09:13 - the interest in Greenland that we need and want
09:15 - let's talk a little bit about Pennsylvania's
09:17 - elections president trump into our Stacy garrity
09:20 - republican candidate i
09:21 - anticipated to be running again shapiro in the fall
09:24 - will hit her alliance with president trump help or hurt her campaign
09:28 - i think it helps i mean.
09:30 - It's not surprising that the president of
09:32 - the eight any party he is going to the dorset gubernatorial candidate
09:36 - in any state so i mean that's not really
09:39 - all that newsworthy
09:40 - but the garrity base is
09:43 - largely folks that like Donald trump and that's
09:45 - what she has to secure before she can move into
09:48 - chipping away
09:50 - at Josh shapiro's
09:51 - mile wide and an inch deep
09:53 - support.
09:55 - Maxing out
09:56 - the
09:56 - line
09:57 - of course i disagree with that the fact of the matter
09:59 - is that Josh shapiro has built a very strong following
10:02 - i think his numbers are very
10:04 - strong
10:05 - he has recorded some significant wins
10:08 - economic development and
10:10 - energy develop just recently announced a
10:13 - huge one
10:14 - in the area of life science investments and things like that so.
10:18 - He has been getting stuff done just like he said
10:22 - and people know that
10:23 - and just remember in all twenty five of those
10:25 - races i mentioned previously trump endorsed
10:28 - the loser so the fact of the matter is that his shine is
10:33 - is weakening
10:34 - and i do not think that it's going to help but
10:37 - guarantee very much at all in the fall yet i want to point out that Mark keeps
10:40 - talking about these twenty five races the Republicans
10:43 - didn't lose most of them have talked about
10:45 - out performing well you know that's
10:48 - in the eye of the behold the Republicans won most
10:50 - of those and so president trump endorsed the winner
10:53 - in most of those races.
10:55 - Last week state security also endorsed Jason
10:57 - ricci as her presumptive lieutenant governor
11:00 - running mate
11:01 - Mark
11:01 - he served as lieutenant governor
11:02 - what importance does the lieutenant governor bring to to balancing out the ticket.
11:08 - First of all remember that they have to run
11:10 - separately in Pennsylvania it's very hot the
11:13 - governor can't really select a running mate.
11:17 - They can indicate a preference which has occurred in this case in which Kurt
11:21 - in my case
11:22 - when i ran with the governor
11:24 - Casey
11:25 - but he still has to go on slug it out if there are any other contenders
11:29 - now he has to win that race
11:31 - and in the primary in order to get on the ticket.
11:35 - What the lieutenant governor can do is to provide some energy and fresh legs and.
11:41 - You know
11:42 - getting into areas where the governor
11:45 - and tour probably shouldn't be
11:47 - i mean it's not possible for gubernatorial candidate
11:49 - to be at every chicken dinner in that state
11:52 - during the election season
11:53 - so believe me i ate a lot of
11:56 - chicken and beans all over the smaller counties in Pennsylvania
12:00 - and i would look for the lieutenant governor to play that kind of role the candidate.
12:05 - Well now we know what Mark's problem has been through all the
12:08 - stuff
12:09 - no
12:09 - logic tiley correct
12:11 - because the governor and the lieutenant governor run
12:14 - separately in the primary not the general but in the primary
12:17 - if there are other challengers
12:19 - Jason wish you will have to slug it out without my sense though
12:23 - Francine is that because of Stacey guarantees
12:26 - endorsement the field will likely be cleared
12:28 - there there may be another candidate or two
12:31 - but i don't think it's going to be a
12:33 - serious primary situation.
12:36 - Are you familiar with Jason Richard
12:37 - speak it I'll see what he could bring to the cat to the candidates he
12:40 - yeah Jason is somebody that kind of came out of the blue he ran for governor four
12:44 - years ago and dropped out relatively early
12:47 - but he really didn't have much political IQ experienced prior to that he was a lawyer
12:51 - in Pittsburgh he has since become
12:53 - the county chairman of the allegheny county Republicans.
12:58 - Generally speaking i think Mark would agree with this county chairman don't run for
13:03 - major office so it's going to be kind of interesting to see how all this works out to
13:07 - governor Josh pair of publishers biography where we keep the light last week Mark
13:11 - single what's the purpose of releasing a memoir at this point in his career.
13:15 - He's running for president.
13:17 - It's almost
13:18 - i think it's almost mandatory for a candidate
13:20 - who is being taken seriously nationwide
13:24 - to
13:24 - give a little bit more information
13:27 - and if you want that information to be accurate you want to get it out there yourself
13:31 - so
13:32 - i think it's a
13:33 - smart idea for him to
13:35 - issue something other than auto bio biography at this
13:38 - point although this is right in the middle of his career.
13:41 - So
13:42 - i think that that was a strategic move and
13:44 - i think it also presents
13:47 - some human
13:48 - aspects to the governor that you might not have otherwise now.
13:52 - What stood out about the governor's biography.
13:54 - Josh shapiro surprisingly likes to take credit for a lot of things that he really
13:58 - didn't have that much to do with and this
14:01 - book is replete with those kinds of things
14:03 - he
14:04 - don't want to say milks it but he takes great advantage of the attack on the
14:09 - governor's residence and
14:11 - you know.
14:12 - Read hashes that multiple times as he has
14:14 - throughout the past
14:16 - couple of years.
14:17 - Locks exactly right he's running for president and
14:20 - folks that want to run for president write a book
14:23 - they sometimes vitamin the tale though as you can remember through the years that
14:27 - i'm particularly
14:29 - recalling Steve friend who wrote a book
14:31 - prior to running for the yosemite goes through inspecting all inspector use quotes
14:35 - out of that book throughout the entire campaign
14:37 - where i think.
14:39 - Josh apparel may have a problem
14:41 - is with his constant running for other offices and he
14:45 - recounts the conversation that he had with carmella Harris
14:48 - about how difficult it is
14:50 - to be out on the campaign trail while trying to do job as in her case
14:54 - us senator which is a lot less tough
14:57 - time wise
14:58 - than being governor of a major state
15:00 - think the people of Pennsylvania are going to be and asked that question
15:03 - he wants to run for president
15:04 - why does he run for president why does he run
15:06 - for governor again
15:08 - and then trot around the country on the taxpayer's
15:11 - dime as the highest paid paid governor in the nation
15:14 - to run for president.
15:17 - Well i
15:17 - i
15:18 - reject that notion i think it is possible to
15:20 - walk and chew gum at the same time and he's particularly good at it
15:24 - i think that to
15:26 - Josh shapiro is a
15:27 - really perform well and actually has gotten a lot done
15:32 - and it
15:33 - is very good
15:34 - on the
15:35 - talk show circuit.
15:37 - He makes a lot of appearances and all those cable shows and things like that and
15:41 - i
15:42 - normally
15:43 - it's a
15:44 - it's a high risk
15:45 - kind of thing
15:46 - if you make a misstatement or if you were out of line in any way
15:50 - it's going to be amplified a thousand times
15:52 - that has not happened thus far and it's a
15:54 - testimony
15:56 - to how he can hang bdl the pressure
15:58 - of big time media and the pressures of being governor so
16:02 - if anybody has prepared to make this journey
16:06 - i think it is Josh shapiro so i'm
16:08 - looking forward to him.
16:10 - Jumping into this race
16:12 - at the appropriate time.
16:14 - Within the book Josh shapiro talks a little bit about and
16:17 - his interview for vice president and he questions whether or not his Jewish faith
16:21 - and.
16:23 - Weighed in at all on during those
16:25 - discussions
16:26 - and what does he have to gain by perhaps calling out some national figures
16:30 - within the Democratic party.
16:34 - Well
16:34 - to be honest with you there
16:36 - is one section in the book that i wish would have been
16:39 - dropped on the editor's
16:40 - you know.
16:41 - Table.
16:43 - He didn't need to go there
16:44 - those were private conversations between him and kind of Harris
16:48 - and whatever decision she made and on what basis she made them
16:53 - like
16:54 - really should have been
16:55 - between that
16:57 - so i i don't think there's anything to be gained by.
17:02 - Taking on that part nuclear aspect or any national figures
17:06 - i think what you want to do and this would be
17:08 - very refreshing in today's age if you're going
17:11 - to be a candidate for president or president
17:13 - is be upbeat be visionary be positive
17:16 - and don't
17:18 - don't denigrate other people and
17:20 - don't accentuate the negatives of folks
17:23 - Josh shapiro is
17:25 - a relentlessly positive and that is a
17:27 - direct.
17:29 - Counter
17:30 - to the current regime that's for sure.
17:34 - Charlie he mentioned a moment ago
17:36 - whether or not it might be an issue that Joshua Powell is running for governor and
17:40 - there's an anticipation that he's going to run for president as well
17:43 - Stacy Gary garrity spoke about that during her parents at the press club earlier this
17:47 - early in January
17:48 - would it be a similar concern for her that she is currently serving as treasurer and
17:52 - she would have to leave that office if she were successful it became governor
17:55 - well that's up to her to make that decision i
17:57 - just want to get back to something that my friend.
18:00 - Governor she.
18:01 - Single said
18:03 - i agree with him that you know kiss and tell.
18:07 - Recounts of private conversations are not a good place to go
18:11 - but where i would disagree with him is i think and
18:14 - i'm going to give Josh shapiro little kudo here
18:16 - his calling out the anti-semitism in the democrat party
18:20 - is very important.
18:22 - The far left of the Democratic party has become virulently anti semitic
18:26 - and i think that the American people really need to reflect on that
18:30 - and ask whether or not
18:32 - that's where any of us want to be and i think
18:33 - the ants there should be a resounding no
18:36 - and i will give
18:37 - Josh shapiro credit
18:38 - for calling them out on that.
18:41 - But like
18:42 - he may have called them out on it really certainly
18:44 - didn't suggest that the entire left wing of the
18:47 - Democratic party is anti semitic or not
18:50 - and that is a
18:52 - that's a canard that has been
18:53 - foisted upon the democrats largely coming directly
18:56 - from the white house and from the maga troops
18:58 - and that simply isn't so the democrat
19:01 - remain a
19:01 - party of a big tent
19:03 - and if in fact there are some folks that are saying things
19:06 - that are inappropriate they are a tiny tiny fraction
19:11 - of the
19:11 - thought process of the Democratic party so
19:14 - i just wanted to make that clear
19:15 - well we would disagree on that it's not a tiny
19:17 - tiny fraction i could give you an arm's length list
19:21 - of major democrats who have made a virulently anti semitic comments
19:26 - and who stand for that
19:27 - and
19:28 - Paul suggest
19:29 - that a lot of folks on the Democratic left
19:31 - are
19:32 - at the core
19:33 - anti semitic
19:34 - and Josh shapiro pointed out that
19:36 - in that interview one of the concerns was
19:39 - Minnesota
19:40 - for example where does it go huge Somali
19:41 - population and that would be a problem for him
19:44 - to run as a Jew.
19:46 - Do you think that faith will play a huge role in this in this race.
19:51 - Josh appear clearly wants faith to be
19:54 - a part of this race he's made it very very clear that he's proud of his Jewish
19:57 - heritage and his Jewish faith there's a practicing Jew and
20:00 - a devout one
20:01 - Stacy Garrett he is a devout Christian
20:04 - i don't know how much of a dividing line that is politically
20:08 - but both candidates have evidence that they want there faith to be
20:11 - a part of the discussion i think that's a good thing.
20:18 - Most agree with that but it's twisting the reality a little bit
20:21 - and because there's an entire campaign being launched against people who are not
20:26 - long
20:27 - the normal
20:28 - average
20:29 - white person variety in the united states you mentioned Minnesota
20:33 - i mean the governor has basically envy they did that stayed
20:37 - with with ice agents
20:39 - looking for people who are brown and black and have a latino name
20:43 - ah and
20:44 - this this this ice
20:46 - kind of hook thuggery that is going on across the country
20:49 - is based largely
20:51 - on a a kind of a
20:53 - a
20:53 - racial bias that is simply unacceptable lol in this country
20:56 - this is not about immigration
20:59 - this is about inflicting his
21:01 - will upon people
21:03 - and trying to
21:04 - eliminate
21:05 - the opportunity of people of different colors
21:09 - of voting and it's ridiculous so i'm i'm
21:12 - i'm i really get
21:13 - dirt
21:14 - on
21:14 - a little bit test three when people talk about biases
21:18 - because we're saying bias is coming from the
21:19 - highest level in this country and it's wrong.
21:23 - Well let me speak to that issue as a person of color
21:27 - and as an immigrant somebody who held a green card for many years.
21:32 - It's very very interesting to see that the guy that's being
21:35 - ww vilified
21:36 - is Tom holman.
21:38 - Tom homan was Barack Obama's guy on immigration policy
21:43 - Barack Obama deported many many many many
21:46 - many more people than the trump administration
21:49 - the folks that
21:50 - should be concerned are illegal immigrants not legal immigrants
21:54 - and what has gone on in Minnesota ota
21:56 - that we're not talking about is the incredible fraud
22:00 - that has been perpetrated against the American taxpayers
22:03 - by groups that are affiliated
22:05 - with the far left of the Democratic party it has been an outrage
22:10 - and Tim walz there
22:11 - had to drop out of the race because of what happened on his watch
22:15 - somebody that was arc has been happy to applaud through the months.
22:20 - It's so wrong
22:21 - it's just so wrong and i i
22:23 - i
22:23 - i love and respect my
22:25 - college
22:26 - Charlie drew and i wish him nothing but well
22:29 - in
22:30 - going forward but he's dead wrong about this
22:33 - what happened in Minnesota was that there was
22:36 - some very limited fraud that had to do with welfare payments and things like that
22:41 - happen then one or two of the perpetrators were Somali doctors and so
22:46 - that became the excuse
22:48 - that became the reason for the incursion
22:50 - and for the president
22:52 - to gaslight the entire country and saying there's rampant fraud in Minnesota
22:56 - Minnesota was
22:58 - why
22:58 - they didn't need two thousand
23:00 - ice agents to come in and threatened people
23:02 - and frankly execute two American citizens
23:06 - for no apparent reason
23:07 - this is wrong what's going on in this country and i'm sorry
23:11 - i am not going to be quiet about it.
23:13 - Either if you're seeing evidence of how federal immigration policy is having
23:17 - repercussions here in Pennsylvania and within our legislature
23:20 - i haven't seen that much of it yet Francine if it's there i haven't really seen it
23:26 - but again
23:26 - you know
23:27 - much says it was small fraud in Minnesota there's nobody
23:31 - that's going to make that case there simply is i have
23:34 - great respect from work with that a lot of fun through the years but to say it was
23:38 - was billions of dollars i mean this is this tough
23:40 - you know that Everett dirksen used to say
23:42 - was a million dollars here and a million dollars there
23:45 - doubts a billion dollars here and a billion dollars there and
23:48 - pretty soon you're talking about real money
23:49 - this is the American taxpayers' money
23:51 - that was
23:52 - defrauded criminally they've had criminal
23:54 - convictions over this are going to have more
23:57 - and they should.
23:59 - Let's shift our focus back to
24:01 - the governor's race if i may and
24:03 - is Joshua pair available.
24:07 - Well
24:08 - i always
24:09 - always suggest the candidates run scared
24:11 - you have to assume that your vehicle.
24:14 - Isn't that ratio
24:15 - because it gives you the incentive to put that much more energy into it.
24:19 - So i would never say that any candidate is
24:22 - completely unbeatable
24:24 - however and his numbers are very good good.
24:26 - It looks like they are holding.
24:28 - Your
24:29 - nerve
24:30 - very good fashion
24:31 - and
24:31 - a lot depends on
24:33 - how he
24:34 - interacts with the
24:36 - the legislature
24:38 - what happens with the budget what kind of things develop in the next six months and i
24:43 - think as governor you're holding a lot of cart
24:45 - so i'm pretty confident that he's going to get reelected
24:48 - although i would never ever say it's a slam dunk.
24:53 - What we would agree
24:54 - you know.
24:56 - I would also say you know Stacey guy is going to run from behind i think she
24:59 - understands that most of the Republicans I've talked to understand that
25:03 - the question is
25:04 - how.
25:06 - Quickly can she close that gap
25:08 - you know the polling data that I've seen Francine suggests that while
25:12 - Josh shapiro is quote unquote popular
25:14 - that it's a mile wide and inch deep if you ask people
25:16 - do you like Josh appear they say yes if you say why.
25:20 - You get crickets
25:22 - because there isn't really
25:24 - a
25:24 - defined sense for most voters as to why they like and
25:27 - they just kind of think he's a nice guy and that's true
25:31 - of most incumbent governor she don't need to go very far to find that to be the case
25:35 - in other state so
25:37 - yes he will run from the front
25:38 - he will be better funded
25:40 - he's already
25:41 - amassed a huge
25:42 - war chest from campaigning around the country
25:45 - looking for dollars elsewhere
25:46 - so he will have a decided advantage but
25:50 - the race is anything but over
25:51 - and i think that Stacey guarantee can make it a horse race and
25:54 - potentially could win
25:55 - what to stay i think already offers a candidate.
25:58 - Well
25:58 - a as a candidate
26:00 - separate and apart from her record which is stellar in public office
26:04 - she's somebody that has amassed more votes than
26:06 - any republican ever in the history of Pennsylvania
26:09 - she has beaten democrats that
26:11 - folks thought she would not be able to beat Joe torsella was a
26:14 - widely acclaimed state treasure she beat him
26:17 - and so she's
26:18 - come out of the blue
26:20 - won elections won reelection by a huge margin
26:24 - and as a proven vote getter.
26:27 - Do you think that last year's
26:29 - budget impasse is going to have any influence or impact on this year's
26:32 - race for governor.
26:34 - Relatively small i mean these impasses as you know
26:37 - Francine have become the rule rather than the exception
26:40 - at
26:40 - the hundred days that we went last year was a little longer than most but
26:44 - we've seen it before and i don't think that most people.
26:49 - In everyday life take
26:50 - to too much.
26:52 - Attention to it those of us that deal with these issues on a daily basis
26:57 - take it much more seriously i think.
27:00 - I
27:01 - agree with that except for the fact that
27:04 - the legislature is making a mistake by dragging it out in an election year
27:09 - because i was reading up on this just recently and over the last two decades
27:14 - the polling indicates that when there is a budget impasse
27:19 - population is more much more likely to blame the legislature
27:23 - rather than the governor
27:25 - the reason for that is very simple
27:27 - the governor makes his presentation on say old February
27:31 - three
27:33 - and they don't get around to it
27:35 - to passing it until October.
27:37 - The average voter says what what took you so long what are you doing
27:41 - there in the legislature
27:42 - and it's a legitimate beef
27:44 - here we are in groundhog day and
27:46 - just like the movie it's the same thing over and over again
27:50 - shapiro is going to make his presentation and it's going
27:52 - to take the legislature months to even get around to it
27:55 - i think they're making a mistake i think they
27:57 - should all get together on a bipartisan basis
28:00 - and pass this in a timely fashion
28:02 - so that they can
28:03 - both.
28:04 - Avoid political recriminations.
28:08 - Well i think Mark makes an interesting point and yes voters blame the legislature
28:13 - who they don't blame is their individual legislate
28:16 - tour which is a historic fact this well it
28:18 - always kind of
28:20 - curious to those of us that have to deal with that but i think
28:23 - France a where
28:24 - the discussion is going to center
28:26 - is on the astronomic inc Greece's in spending
28:30 - under the chaparral and wolfe administrations
28:32 - up sixty four per cent
28:35 - from one Tom corbett left office and i'd ask work with the state budget
28:39 - let's what he left office
28:40 - the American people and
28:42 - the American people that Pennsylvania voters in Pennsylvania taxpayers
28:46 - simply can't afford
28:47 - these gargantuan join
28:49 - increases in spending.
28:52 - Charlie always makes the point about.
28:55 - Gargantuan increases in spending but let me remind you that.
28:58 - The Republicans agreed to that spending last year
29:01 - the Republicans agreed to a budget that went over fifty billion dollars
29:06 - that is a huge number there's no question about it
29:10 - the real question is.
29:12 - Are those programs that are funded by that money worthwhile.
29:16 - Should they be cut in some fashion
29:18 - can you be very specific about what should be cut and which should be retained
29:23 - that is the art of good governing
29:25 - the fact of the matter is that shapiro.
29:28 - Rightfully says
29:29 - that even after this fiscal year year is over
29:33 - there will still be seven point six billion dollars
29:36 - in a rainy day fund
29:38 - so we have met the priorities of the state we have spent what we need to spend
29:42 - on economic development and roads and.
29:45 - Education and what have you
29:48 - and there's still a cushion
29:50 - for us
29:50 - should things go wrong
29:52 - now.
29:53 - I don't think you should be frivolous i don't think you should spend
29:56 - no more money
29:58 - than you can afford
29:59 - but i think we're
30:00 - probably right at that right sweet spot right at the moment
30:04 - we already have
30:05 - we already have spent way more
30:07 - than we should have Francine and there is a structural deficit
30:11 - the independent fiscal office says it's somewhere around seven billion
30:14 - there are estimates that it's more than that
30:16 - that not only chews up the rainy day fund
30:18 - but digs into taxpayers' pockets once again
30:21 - if
30:21 - a sixty four percent increase
30:25 - under the administrations of Tom wolfe and Josh shapiro
30:28 - is acceptable
30:30 - while then
30:31 - taxpayers have to ask because my f
30:33 - it gone up sixty four percent in that time is our
30:35 - household income gone up by that
30:38 - we're going to continue
30:39 - just a mama prefers let's give our guests a break
30:41 - while we look at what pcn is covering this week
30:44 - governor Josh shapiro will present his new
30:46 - state budget to a joint legislative session
30:48 - former legislative leaders Jake corman and build a
30:50 - waste will give us a preview of the governor's plan
30:53 - and then after the speech will bring you laugh make a reaction from the state capital
30:57 - it all starts live tomorrow morning at eleven am.
31:00 - On the issues this week burwood used from the Floyd center
31:04 - of opinion research at Franklin and Marshall college
31:06 - gives his analysis of the governor's new budget
31:09 - that's tomorrow at seven pm.
31:11 - Right after that we turned to funding for children's programs with kerry king from
31:15 - Pennsylvania partnerships for children
31:17 - she'll be here Wednesday at seven thirty.
31:20 - Journalists roundtable this week returns with Stephen caruso
31:24 - of spotlight pa Justin schweitzer of city and state pa
31:27 - and Whitney downward from the Pennsylvania capitol star
31:30 - journalists roundtable airs Thursday nights at seven
31:33 - now onto history and culture of programming this morning in punxsutawney the most
31:37 - famous groundhog in the world emerged from his burrow
31:40 - and made his annual weather forecast
31:43 - watch Phil's prediction tonight at eight.
31:46 - America celebration of it's two hundred and fiftieth birthday continues with Alice Paul
31:50 - women's rights activist from the early twentieth century three
31:54 - that's Tuesday night
31:55 - at eight pm.
31:57 - You can watch this show and all of our public affairs
31:59 - programming free of charge by visiting PC and select dot com
32:03 - while you're there you can download our streaming service PC and select.
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32:17 - let's get back into our discussion we were talking about the election and
32:20 - specifically if you're looking at voter registration
32:22 - Republicans are closing the gap on democrats in Pennsylvania voter registration
32:26 - Charlie why do you think that shift is happening
32:28 - well for a variety of reasons it'd be a truly great thing
32:30 - the republican party of Pennsylvania has really become
32:33 - the pa rt of working people
32:35 - and as a result you see
32:37 - massive shifts in the areas that once were Democratic controlled
32:41 - to the republican party both by
32:43 - registration and by voting pattern
32:46 - where you see
32:47 - the trend going the other ways and the very wealthy suburbs around Philadelphia.
32:52 - Mark why do you think this shift is happening and
32:54 - what are democrats trying to do to counteract that.
32:59 - It is happening but i think this goes back a generation there was a time when
33:03 - people would register republican and vote democrat or registered democrat
33:08 - voted republican it was really the Reagan democrat
33:12 - phenomenon
33:12 - that occurred
33:13 - and that kind of to a whole
33:15 - nother was exacerbated by the whole the maga movement
33:18 - where people were robbed
33:20 - or
33:21 - Oklahoma
33:22 - enter religious fervor
33:24 - voting for a Grant.
33:27 - Contributed to it as well
33:30 - but
33:30 - the fundamental reality is that there are differences between
33:34 - Republicans and democrats and no.
33:37 - It's not because the Republicans are on the side of the working men all of a sudden
33:42 - if that were the case
33:43 - we wouldn't have passed the big ugly bill at the federal level
33:47 - that
33:47 - constant legs out from under social programs and
33:50 - things that working Americans need and
33:53 - funding for jobs and great and you know that kind of thing
33:56 - healthcare
33:57 - we're going to have
33:58 - made major
33:58 - on our budget because we don't have the money to pay for snap
34:02 - programs food for children.
34:05 - Supplementing the.
34:07 - Short foliage gonna be made because of the
34:10 - for the inability to extend the tax credit
34:13 - on obamacare
34:14 - so the policies of the Republicans are still
34:17 - very much for the very very wealthy
34:20 - and very much against
34:22 - the poor and working families of this country
34:25 - i think that people have got to come back home to that Riyadh city
34:28 - and i think that's starting to happen.
34:32 - Well the very very wealthy in this country now are largely
34:35 - democrats let's face it that's just a reality in effect
34:38 - and the Republicans
34:40 - programs have been for folks that have to stretch
34:43 - a budget to make ends meet
34:45 - those things have been working well
34:47 - and they have rooted out the
34:49 - mismanagement inefficiency and outright fraud and some of the programs that
34:54 - the
34:55 - former governor
34:56 - just delineated a moment ago i mean these things have not worked well
35:00 - and
35:01 - the Republicans have
35:02 - seen to it that they're working much better
35:05 - in delivering to the American people what they need and deserve
35:08 - without taxing them to death.
35:10 - His voter registration
35:12 - grants
35:12 - please go ahead and
35:13 - search programs like surrogate
35:15 - taking a meat axe to them
35:17 - you know the fact of the matter is that half of the Pennsylvania budget
35:20 - is
35:21 - for education
35:23 - and for medicare
35:24 - for healthcare benefits for people who
35:26 - are not afford them
35:28 - themselves.
35:29 - There are major holes than that caused by this
35:32 - republican.
35:34 - Focus
35:35 - on reducing taxes for the very wealthy
35:38 - while increasing costs to the very poor
35:41 - that's really what's happening here and we're adjusting to it in Pennsylvania
35:45 - because we have to.
35:47 - And that's
35:48 - simply not true i mean
35:49 - it's that's a
35:50 - the
35:50 - canard a democrat talking point for a long time
35:53 - that we're
35:54 - helping out the wealthy at the expense of the poor that's not what
35:57 - the tax policies
35:59 - of the republican administrations recently have done they've been
36:02 - tax cuts for
36:03 - middle class
36:04 - tax payers
36:05 - but.
36:07 - What's the single most mentioned just a moment ago
36:10 - the education component of the Pennsylvania budget the biggest piece in there
36:14 - we have poured
36:16 - millions and billions of dollars into education and the real question is
36:20 - have we gotten commensurate results
36:23 - because we have in
36:24 - our education programs here have lagged behind and
36:27 - the national averages
36:29 - have lagged behind
36:30 - the national standards
36:31 - our kids are having a trouble in many many systems
36:34 - reading and writing at the grade levels they should be
36:37 - and yet we just pour more and more dollars in the question is
36:41 - has there been true accountability
36:44 - for those dollars.
36:47 - If i Grant
36:48 - Charlie the premise
36:50 - that we have spent too much in education over
36:53 - the years and i think you can make that case.
36:57 - The real question is where
37:00 - do you cut
37:01 - how do you go about equalizing payments to districts in Pennsylvania.
37:06 - What are the programs that work what are the programs that don't work
37:10 - it's not
37:11 - practical and it's dangerous simply to say well
37:13 - we're spending too much so we're going to cut.
37:16 - Tell me what the programs are.
37:18 - If somebody makes a case that we're overspending
37:21 - the rational question is
37:23 - what do you want me to cut do you want me to cut daycare
37:26 - do you want me to cut
37:28 - pre.
37:29 - Pre k education do you want me to cut child nutrition
37:33 - programs in schools that have proven to be wildly effective
37:37 - do you want me to cut money to nursing homes
37:39 - so that your parents aren't getting the care they deserve
37:42 - tell me where you're going to cut.
37:45 - When you talk about overspending
37:47 - i think we have to be very specific about those thanks.
37:51 - I would agree with that i think that we do
37:53 - need to be very specific and i think we can be
37:56 - i would love to see a grace commission type of program
38:00 - enacted in Pennsylvania to look at education and particularly but in all programs
38:04 - because the
38:05 - inefficiency and mismanagement and waste
38:08 - an absolute fraud that has been.
38:11 - Endemic in some of those situations
38:14 - needs to be rooted out and then you could say
38:16 - here's where we can
38:17 - recognize significant savings without sacrificing any performance
38:22 - what do you expect to see the governor's budget address tomorrow
38:25 - i think it will be very modest.
38:28 - He got basically what he wanted last year
38:31 - and i i don't disagree with Mark that Republicans
38:33 - were complicit in that it grieves me to say that
38:37 - but they were i think it will be a very modest budget
38:40 - i think he's going to aim to get it passed on time
38:43 - whether or not that happens remains to be seen but
38:46 - as i mentioned earlier i think
38:48 - Mark agreed we've come to expect budgets to run past June though thirtieth.
38:52 - Mark what do you expect to see.
38:55 - Now they're being very
38:56 - close to the vest about the budget to release this year
39:00 - and to me that indicates that Charlie might be right i think that he wants to.
39:05 - Step
39:05 - put it
39:06 - on the first step forward that is very conciliatory
39:09 - and says look folks we can get this done
39:12 - however there are a couple of things that i know.
39:16 - Governor shapiro still has in mind
39:18 - he would like to take another run at raising the minimum wage
39:21 - not just from the perspective of providing a living wage to poor people
39:25 - let because it generates more money in terms of the taxes that that
39:29 - develops
39:31 - he also is talking about enacting a corporate tax reform
39:35 - proposal that would.
39:37 - Tax the conglomerates and the big.
39:39 - Corporations in a fair fashion in Pennsylvania even as we reduce
39:45 - the co corporate net income tax
39:46 - you can adjust
39:48 - the taxes for those who are avoiding tax payments
39:50 - altogether
39:51 - and then third watch for a
39:54 - push
39:55 - to once again.
39:56 - Legalize and tax marijuana legalized
40:01 - i
40:01 - skill games
40:03 - and tax them
40:04 - i think he's going to be looker for economic drivers
40:06 - so he can answer the question right out of the gate
40:09 - where is the money coming from
40:11 - and in terms of programs
40:13 - the only thing new that i'm gathering is.
40:16 - A
40:17 - program to deal with affordable housing
40:20 - it's a crying need in the state and i think he's
40:22 - going to take a shot at dealing with that this year
40:25 - do you think that this being an election year
40:27 - impacts what lawmakers are willing to vote for.
40:31 - Well sure i think politics is always the.
40:36 - The
40:37 - six hundred pound.
40:39 - Gorilla in the room
40:40 - and they've gotta be sensitive to it
40:43 - up but i think that earn it.
40:45 - Pennsylvania
40:47 - is believe it or not
40:48 - has shown some rationality
40:51 - and has shown that they can actually roll their sleeves up
40:54 - and work together and get some things done
40:57 - last year's budget took a long time to get finished but in the end.
41:01 - The Republicans scored a couple of victories on that.
41:05 - Energy either Reggie compaq
41:07 - the governor scored some victories on keeping the
41:10 - level of spending where he basically wanted it to
41:13 - so it is possible to give and take
41:15 - so i think politics.
41:18 - Requires that people act like adults
41:21 - and do their job
41:23 - and i think that it would benefit both parties
41:26 - politically if they do that.
41:29 - It's an election year you're going to have an election budget you're going to have an
41:32 - election budget process Mark is exactly right
41:36 - it's political
41:37 - and
41:37 - i think you'll probably get a budget passed relatively early
41:41 - with all the kind of
41:43 - bipartisan effort that
41:45 - Marc likes to chat about and
41:47 - that folks like to say i i think it will go relatively quickly.
41:52 - I think it is interesting though to note the Reggie thing again
41:55 - this was something that Josh shapiro had his foot in both buckets on
41:59 - from the get go he told business leaders
42:01 - and labor leaders he was against it
42:03 - he told environmentalists he was for it
42:06 - when the rubber met the road he wasn't quite sure what he wanted to do legally
42:10 - the legislature forced them into giving it up
42:12 - but they're going to try to bring it back under some other
42:15 - nomenclature.
42:18 - Remind have his own
42:20 - program to reduce emissions and indeed he's been
42:23 - focusing on that
42:25 - effort
42:26 - through private grants and loans and things like that and it's beginning to pay off.
42:31 - You can achieve a reduction in admissions and an increase in energy.
42:37 - Production
42:38 - without having to be apart of a large regional compact
42:43 - i for one.
42:45 - Always believed that that was simply a a
42:47 - back door tax
42:48 - on consumers
42:50 - and we were going to pay the price for that
42:52 - so i think
42:53 - frankly the Republicans did the right thing.
42:55 - In standing their ground on that and i think shapiro recognized that
42:59 - and said maybe we'll go about it another way
43:02 - that is an example in my view of being rational and
43:05 - working together and finding some common ground.
43:09 - While i give i give
43:11 - the tenant governor
43:12 - single a lot of credit on that because through
43:14 - the years he has been a supporter of the
43:16 - responsible development of natural gas in particular
43:19 - when many in his party
43:22 - wanted moratoriums in that kind of nonsense
43:25 - large single said now we ought to be responsibly developing natural gas
43:29 - it is the goldmine under our feet it would allow us
43:32 - to be a national and international leader in energy
43:35 - particularly at a time when these huge data centres
43:38 - are going to require massive amounts of energy
43:41 - it's a great opportunity for Pennsylvania.
43:44 - Now we talked to
43:45 - quite a bit about this being an election year
43:47 - house democrats have a one seat majority for the last two elections cycles the
43:50 - Republicans in the senate have a three c holds in the senate
43:53 - do you foresee any scenario where power shifts in either of those chambers.
43:58 - I don't think the power will shift in the senate i
44:00 - think there is a scenario under which it shifts in house
44:03 - it's a difficult path for the Republicans
44:06 - because there are so few
44:07 - seats that are actually in play Francine
44:09 - and
44:10 - the.
44:11 - Reinforcement process and other things have
44:13 - given us a legislator it's always going to be
44:16 - very narrowly divided.
44:18 - I think five seats right now that are open
44:21 - and up for special elections
44:22 - those are likely to be decided by the power by the party that held the power before.
44:27 - You
44:28 - are likely going to have a one seat
44:30 - situation going into the November elections
44:33 - you'd probably have a one or two seat.
44:35 - Difference one way or the other come January.
44:40 - I i disagree i think that the early signs are that there is a
44:45 - an awakening.
44:46 - Going on in the country
44:48 - that people are so repulsed by what they're seeing on the streets in our major cities
44:53 - and they're so disturbed by the chaos of somebody who's just changing the names of
44:57 - our monuments and Jerry down the east wing and.
45:00 - I think that it's having a
45:02 - really.
45:04 - Numbing effect on people in there they're just tired of it
45:08 - and i think that that is borne out by these special elections and
45:12 - the over performance of democrats all over the country
45:16 - i think that that number is going to hold in Pennsylvania
45:19 - and you may see some extraordinary results
45:22 - and Democratic when democrats were winning and
45:25 - traditionally republican seats
45:28 - too early to say that it's going to be a blue wave
45:31 - but the early signals are pointing in that direction
45:34 - if in fact national and international events.
45:38 - Continue the way they are
45:40 - i think it's going to have an impact in Pennsylvania in
45:42 - November and it's going to be positive for the democrats.
45:47 - As we head into the midterms what congressional
45:49 - seats are you looking at what looks vulnerable
45:52 - while the seats that folks have talked about are the president hand seat
45:55 - the.
45:56 - Ryan MacKenzie seat.
45:59 - The
46:00 - democrats fool's gold said Brian Fitzpatrick down in
46:03 - bucks county and then Scott Perry here in
46:06 - the midstate
46:07 - those are the four
46:08 - that
46:09 - the democrats are obviously looking at
46:11 - i think there are some democrats seats that Republicans can go after
46:15 - other one in Pittsburgh in particular but we'll have to wait and say
46:19 - i don't see huge shifts in the congressional delegation in Pennsylvania.
46:25 - I think we
46:26 - i think we could pick up at least two out of those four.
46:29 - Democratic seats that.
46:31 - Charlie is talking about.
46:34 - Fitzpatrick
46:35 - and Scott Perry.
46:37 - I think that they
46:38 - the opponents have come close
46:40 - in recent years
46:42 - and the situation has shifted a bit.
46:46 - I think that in a midterm election.
46:49 - For a year
46:50 - and
46:51 - in a party of a president who's increasingly unpopular
46:54 - i think that that makes those Republicans
46:58 - even more vulnerable
46:59 - so watch those two seats very carefully because i think that those
47:03 - get back into the Democratic fold this year.
47:06 - What are the most important issues that you'll be
47:08 - watching as we get closer to the near term elections
47:11 - it's always going to be the economy France saying there's no two ways about it every
47:15 - election ultimately boils down to people's pocketbooks
47:18 - and
47:18 - the economy right now is doing much much better
47:21 - Donald trump inherited a absolute mess from the bite administration
47:26 - and today you look at the
47:27 - stock market it's you know hovering around fifty
47:29 - thousand on the dow and seven thousand on the snp
47:33 - inflation is down
47:35 - prices are coming down
47:36 - and
47:37 - job creation is there
47:39 - i think that the economy is going to be
47:41 - a
47:42 - significant boost for the Republicans.
47:44 - Market get the last word.
47:47 - And
47:47 - i think that the economy is going to matter
47:50 - for sure
47:51 - but i think that the
47:53 - advantage
47:54 - is going to be for the democrats.
47:56 - Because
47:57 - you know notwithstanding what Charlie just told you.
48:00 - Trunk was in a pretty good position
48:02 - because biden had
48:04 - reduced inflation to three percent and it's currently three percent
48:08 - biden had created ten million jobs coming out of the pandemic
48:12 - and handed trump
48:14 - a golden opportunity to move forward
48:16 - so i think that
48:18 - him taking credit for things that happened long before him is
48:21 - inappropriate
48:23 - but when it's going to happen going forward is that Josh shapiro
48:26 - is gone to be able to boost the economy in the state
48:30 - by strategic investments
48:31 - there's already been ten billion dollars worth of investment commitments that the
48:36 - governor has announced in the last year.
48:39 - In things
48:40 - like
48:41 - life sciences and data centers and biotechnology
48:45 - so i think he's got some cards to play that are going to
48:48 - make the economy
48:50 - really hung in Pennsylvania and he will
48:53 - justifiably take credit for it.
48:55 - I guess if Denmark single former lieutenant governor and acting governor and Charlie
48:59 - theresia of quantum communications gentlemen thank you both for your time
49:03 - great to be with you.
49:05 - Thank you
49:06 - earlier case and spoke with me Matthew nettle director of the Pennsylvania
49:09 - independent fiscal office for state revenue update.
49:15 - We're joined today by Matthew nadal director of the Pennsylvania independent fiscal
49:18 - office how was the state's economy performing since
49:21 - your office released it's gin production projections.
49:25 - While i would characterize it as
49:27 - an over performance so back in June
49:30 - we had assumed that the terrorists would
49:32 - take effect and that they would drive up inflation
49:35 - and drive up unemployment
49:37 - wiped out what we're finding is inflation has.
49:40 - Not kicked up as much as we had
49:42 - an appointment didn't increase as much as we got.
49:45 - I would characterize it that things are holding up quite well the
49:48 - consumer spending is very strong our sales tax are up six per cent year over year
49:53 - which is double the growth rate than we had expected back in June.
49:57 - Now you mentioned tariffs already
49:58 - what effect has federal spending cuts and particularly
50:02 - attrition from the
50:03 - federal workforce had on Pennsylvania.
50:07 - Yeah what we observe in the data that there was a
50:10 - decline or reduction of the federal workforce to about nine thousand individuals
50:14 - and most of those are based on data acquired
50:17 - from resignations and most of those
50:19 - appear
50:21 - entered into retirement.
50:23 - Make compensation claims for federal workers did pick up by
50:26 - six hundred
50:27 - but based on what we can see from the data
50:30 - there were about nine thousand deferred resignations
50:32 - most of those individuals retire
50:35 - and those that did not
50:36 - look like most of them did find employment elsewhere so that's a good outcome.
50:41 - Of course on what will happen with the state's rainy
50:43 - day fund by the end of the year what will remain.
50:47 - We're projecting based on our most recent
50:49 - update that revenues which we just put out.
50:53 - Later
50:54 - excuse me earlier last week
50:55 - that the general fund surplus would be about eight hundred million
50:59 - the rainy day fund surplus would be about seven and a half billion
51:03 - at the end of this fiscal year
51:05 - and last year state budget governorship the pair have proposed several new revenues
51:09 - legalizing recreational marijuana
51:11 - taxing skills games are closing the Delaware loophole
51:13 - none of those were approved by the legislature
51:16 - if we are unable to approve new revenues in the next year's
51:20 - budget what happens what remains of the rainy day fund what happens then.
51:25 - There are projections and
51:27 - revenue and spending projections the rainy day fund we think will be cut more than
51:30 - half down to about three point four billion dollars so
51:34 - it will need to be used
51:36 - we think that even with new revenue sources such as the ones you mention that the
51:40 - rainy day fund will need to be tapped to a limited extent
51:43 - how much will depend on me
51:45 - revenues that are approved as you noted.
51:47 - You know that there is an unexpected surge in tax revenues the latter half of two
51:51 - thousand and twenty five what do you think is responsible for that.
51:55 - We think that the stock market in particular is a major contributor to that the stock
52:01 - market was up about seventeen percent on average and
52:05 - it does appear that
52:06 - upper middle income and higher income consumers who are benefiting from
52:10 - the increase in the stock market are driving a lot of
52:12 - the games that we're seeing that's what the data suggest.
52:15 - There's also note your report about sports betting why do you think that revenue from
52:20 - sports betting exceeded expectations this past year.
52:23 - Yeah a very strong increase in sports wagering thirty four percent tax rate
52:28 - a couple of items too in particular we just think it's more prevalent you know
52:32 - download we gotta move the device is a lot of advertising
52:36 - but also in the fourth quarter of last year.
52:40 - Pennsylvania residents of course they'd like to bet
52:42 - on the local teams on the steelers and the eagles
52:44 - there were a couple of tough losses where the
52:47 - house keeps more of the the beddings and then of course they pay tax upon that so
52:50 - it's really a combination of the two
52:53 - just more prevalence and the outcome on some of the games.
52:56 - There's also a sliding report entitled healthcare
52:59 - drives payroll gains can explain what you learned there.
53:02 - Yeah what we're seeing
53:04 - in the jobs gains for Pennsylvania both in the last five or six years and in the
53:09 - immediately preceding year
53:11 - all of the job gains that we're seeing on net
53:14 - are driven by healthcare
53:15 - and there's many different forms it could be outpatient hospitals home healthcare
53:20 - but overall
53:22 - today are contributing to the gains that we're seeing and
53:25 - on that note
53:26 - and these labor market is
53:28 - one of the concerns we have is a bit stagnant
53:30 - we think we're picking up about twenty eight thousand jobs year over year
53:34 - based on the latest data
53:36 - that's a fairly low level so the healthcare sector is doing very well
53:40 - other sectors we think struggling a bit
53:42 - in particular for new graduates coming out of
53:45 - college it is with general degrees we think it'll be
53:47 - very challenging coming up in the spring.
53:50 - You're important that's one point three revenue one point
53:52 - three percent revenue growth but also four point five
53:54 - four point six percent expenditure growth what does that
53:57 - tell you about the future outlook for the state's economy.
54:02 - Yeah i think it will be very challenging the economy even though it's performing
54:05 - i'd say decently
54:07 - there some cost pressures built into the budget in particular healthcare and that's
54:10 - really driving up a lot of the costs of that state's pacing
54:14 - and also some of the federal changes the states will have to pick up more of those
54:17 - costs and backfill down as much as on snap medicaid
54:21 - so definitely a lot of challenges going forward i'm going to spend side.
54:24 - As we speak governor Joshua Perry will be presenting his budget address
54:28 - live on February third
54:29 - what should lawmakers take from this report as they begin
54:32 - considering and crafting the next fiscal year's budget.
54:36 - And i would emphasize is just to to look at the.
54:40 - Resources we have available that is
54:42 - the rainy day fund now and
54:44 - start to think about how we might
54:46 - address the structural deficit we think that structural deficit
54:50 - and asked the devas that's that's permanent that's not affected by the economy
54:54 - is about five and a half billion dollars.
54:56 - So that's what really needs to be addressed long term.
55:00 - Both on the spending and on the revenue side so
55:03 - how will we think about that
55:05 - the last thing that we want to do is to to rush into it and not you know give it some
55:09 - thought and and research it and have discussion about it
55:12 - so now's the time to do that and address that long term deficit
55:16 - we have
55:16 - speaking with Matthew noodle director of Pennsylvania's
55:18 - independent fiscal office thanks for joining us.
55:21 - Thank you.
55:23 - That concludes today's show Jonas smart for reactions to the governor's budget
55:27 - proposal let's say climate of one plus strategies
55:30 - and builds a week former state speaker of the house
55:33 - that's tomorrow alive
55:34 - at eleven am.
55:35 - In France and shirts are thank you for watching.