Lehigh Valley Conservative

I received the (see below) e-mail from PA. Rep. Rohrer’s blog site.  I could not agree more with Rep. Rohrer——from were I’m sitting it looks even worse.  So I will carry the situation one step further and say the local governments and school boards must start to feel the pinch on the money supply, within two years and/or as soon as 2011 the first quarter of next year.  As the money dries up, revenues will fall, and budgets can not work and short falls will cause disasters in meeting financial obligations.

We have county budgets that will not be met, a Bethlehem Area School District carrying $295 + million debt and not being able to meet their debt obligation, the city of Bethlehem whose revenues will absolutely fall as their revenue streams dry up.  All will suffer as things start to implode and the life line of taxation, the tax payer, is hurt more and more by job looses and failing family structures and no Church net work to help.

Read Rep. Rohrer assessment—WE SHALL WE—don’t you think?
        
Dear Friends,

I sent this note to my colleagues in the State House this week, and thought you’d be interested in getting my sense of the enormous challenge and opportunity presented by Pennsylvania’s present fiscal situation.  As always I believe a principled approach, not a political one, is our best way forward.

Sam

Dear Colleagues,

As we move forward on the 2010-11 Budget, I thought that the following article would be helpful to understanding the gravity and seriousness of our current fiscal insolvency. I know that “insolvency” is a frightening word, but it is a fact. Most of our states are insolvent including our own Commonwealth. I used this term regularly during the gubernatorial race leading up to our May Primary. To be insolvent means we don’t have the money to pay our obligations - and we don’t. We’re not yet bankrupt but in my judgment, not more than a couple of years behind California.  I am gravely concerned that without a very quick dose of reality where we get serious about fixing our underlying problems with our enormous structural deficit in our General Fund and our obvious Pension fund obligations, we will lose all flexibility.

Spending reductions must occur now and must be significant even including reductions now to offset the anticipated elimination of the stimulus funds.  Adding to the financial reality, almost all the “real world” economists believe, as I do -that we are on the verge of beginning the second dip of a double dip recession. That means current revenues will not be sustainable and we will be on our knees come next year if revenue projections are again overstated. Only serious work now can avert this. An election year or not, this Budget must be conservatively responsible or next year will be a disaster.  Again, please refer to the following article.  http://www.theglobeandmail.com/report-on-business/economy/california-on-verge-of-system-failure/article1609891/

Another consideration is this.  I can affirm that as I travelled this state our taxpayers and businesses are fragile and barely hanging on to their existence.  The continuing failed economic actions of the federal government will only add to our collective fiscal dilemma. We must grip our challenges by the horns now and think in terms of financial independence from the federal government, not plunging ahead expecting some bailout by the Federal Government or by the beleaguered taxpayer.

From a policy perspective, this means:

1)     No tax increases.
2)     No borrowing.
3)     Establishing a budget that spends only what our General fund revenues are currently generating at approximately $25.3 billion.  Apply available funds over this amount to our Pension Fund obligations.
4)     Reducing spending, primarily in Welfare but to a lesser degree in Education and Corrections.

Thank you for your consideration.

Sam

Rep. Samuel E. Rohrer
Member, 128th Legislative District