Irey Vaughan Plan for PA
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Transcript of Irey Vaughan Plan for PA
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Standing in at 5 tall, Diana Irey Vaughan isnt what youd expect in
a fierce champion offiscal responsibility and good government. Butfor nearly two decades, she has proven herself as afiscal watchdog
in southwestern Pennsylvania and led the charge for reining in waste
and excessive public spending. In the following pages, learn about
Dianas plan to preserve and responsibly grow Pennsylvanias future.
Inside the Plan
Can Pennsylvania return to fiscal sanity? 2
Can Harrisburg really be so ignorant to its
own hypocrisy? 4We deserve more from our state treasurer 5
Are taxpayers paying too high a price
for its growing debt? 6
Is Pennsylvania gambling with
taxpayer dollars? 8
How can we ensure a healthy pension system
into the future? 10
A Plan that Makes Sense 12
A Leader for Pennsylvania 13
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Can Pennsylvania ret urn t o fiscal sanity?
Recently, the U.S. debt hit the $16 trillion mark. Rather than chart a more
responsible course for taxpayers in the Commonwealth, Pennsylvania
followed Washingtons lead
by recklessly increasing
our state debt over the last
decade. During his two terms
in office, Governor Ed Rendell
increased Pennsylvanias general
obligation debt by 28%, even inthe face of economic recession
and a shrinking private sector.1
Our state and local debt is
now $38,000 per family and
growing.2
Add this to our growing pension obligations, and today, Pennsylvania finds
itself in a very deep hole.
In just a few short years, Pennsylvania has gone from a pension surplus to
a system under threat from ballooning unfunded liabilities. We are already
behind in funding our long-term pension promises by a whopping $40
billion, and the gap is widening. Soon, state and local taxpayers will be on
the hook for a $4 billion payment into the states public pension system that
we simply cannot afford.
Our mounting debt puts every Pennsylvanian at risk. Eventually, debts
come due, and well have to pay them, whether to our retired state workers
and teachers or to other creditors. Our state leaders have a responsibility to
take action now to avoid piling on more financial burdens for our children
and grandchildren.
In 1999, Pennsylvanias
pensions were 120%
funded. Eleven years
later, PA pensionsplunged to 75% funded,
below the 80% funding
level considered a
healthy benchmark.3
Today, the Public
School Employees
Retirement System
(PSERS) is only 69%
funded.4
Our state and local
debt is now
$38,000 per f amil y
and growing.
- Commonweal t h Foundat ion
Sou
rce:2008-09GovernorsExecutiveBudget
Source: State Fact Sheet, The Trillion Dollar Gap,Pew Center on the States, 2010.
1 Commonwealth Foundation2 Commonwealth Foundation
3 Pew Center on the States4
PSERS Budget Hearing Information (FY2012-13)
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Are taxpayers paying too high a pri ce for it sgrowing debt?
Pennsylvania taxpayers currently spend more than $1 billion a year on debt
service. That is $1 billion of taxpayer money each year just to pay for past
debt and reckless
borrowing. It
means less of
our government
dollars are going
to vital servicesour citizens
depend on daily.
Over the
past decade,
Pennsylvania debt
service payments
have increased at
a staggering rate.
In homes all around the Commonwealth, Pennsylvanians already know
that finance charges on credit cards and bank loans can quickly eat away at
family budgets necessary to pay for mortgages, utilities, and food. We need
our government leaders to understand this, too. It is irresponsible to take
on more debt and to increase the costs of paying for it during lean economic
times. In the long-term, endless borrowing is simply unsustainable.
As our next state treasurer, Diana Irey Vaughan will:
Say NO to additional state borrowing when we cannot afford
it. Diana will have the courage to do what is right for Pennsylvanians
and reject unnecessary increases to our debt load. She wont saddle
Pennsylvania with higher debt service payments that further strain our
states already tight financial situation.
Support common-sense reforms to fund programs with statetax dollars. Diana will advocate for reforms to programs like the
Redevelopment Assistance Capital Program (RACP) that institute a more
transparent, accountable, and streamlined process to the awarding of these
funds. By implementing these reforms and introducing a merit-based
selection process, Pennsylvania could reduce its debt by 63% over next 20
years.5
5 Estimated impact of RACP reforms from HB 2175 from House Finance Committee (R).
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