What's the Real Cost of Privatization?

Privatization is a buzz word in Pennsylvania these days, even if no specific plans were put forth in Governor Corbett's budget proposal last week.

At the Pennsylvania Budget Summit on Monday, I heard from Shar Habibi of In the Public Interest on the broad issue of privatization. She shared some of the experiences of other state and local governments across the U.S. that have tried to sell off public assets or farm out services to private companies, usually for a quick infusion of cash. The D.C-based group's latest report goes through the basics of privatization deals and some of the issues that policymakers should consider before signing on the dotted line.

Budget Summit Recap: A Question of Priorities

If you were one of the 140 people who attended our Pennsylvania Budget Summit on Monday, your head is probably still spinning from an overload of information.

The Pennsylvania Budget and Policy Center (PBPC) has posted PowerPoint presentations and other resources from the Summit online, and we will be posting more, including video highlights, later in the week.

For now, I wanted to share a few thoughts from the Summit.

Fruit Salad, Anyone?

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The Governor's speechwriter appears to love apples to pears comparisons, or maybe bananas to oranges.  But nothing so plain as apples to apples.

I'm referring to the following quote from Governor Corbett’s budget address last week:

In Case You Missed It: Third and State Blog for Week of March 7

This week on Third and State, we blogged about Governor Corbett's state budget proposal, ways to grow the economy and promote broadly shared prosperity, "Mad Men" who like fast trains, and much more!

In case you missed it:

  • On the state budget, Sharon Ward explained why Governor Corbett's proposed 2011-12 budget should worry parents and property taxpayers, and Chris Lilienthal shared some budget resources and information from the Pennsylvania Budget and Policy Center.
  • On wages and the economy, Mark Price challenged the notion that education alone is the cure-all for the economy's woes and instead invokes the employee-focused business model used by The Container Store as an example of how to boost economic growth and broadly shared prosperity. Mark also delved deeper into the U.S. Chamber of Commerce's business climate rankings in a post titled "You Will Never Be Poor Enough."
  • On other economic issues, Mark shared a 60 Minutes segment on homeless children, while Steve Herzenberg passed on a powerful story that conveys one of the most critical roles that unions play.
  • Finally, we continue a new weekly series we're calling "The Friday Funny." This week, "Mad Men" who like fast trains (with a hat tip to PennPIRG's Megan DeSmedt for passing along).

More blog posts next week. Keep us bookmarked and join the conversation!

Friday Funny: 'Mad Men' Who Like Fast Trains

Anyone who has read my blogger's bio knows I'm a huge fan of the AMC series Mad Men. On more than one occasion, I've even requested that the Keystone Research Center hire me a secretary named Miss Blankenship, but I digress.

In the following video, two "Mad Men" stars show what big fans they are of high-speed rail. Hat tip to Megan DeSmedt of PennPIRG for passing it along.

Can Businesses Make More Money by Paying their Workers More?

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We spend a lot time around here worrying about rising profits and stagnant wages, but that doesn't mean we don't want businesses to earn profits. Broadly shared prosperity means growth in productivity, which translates into growth in wages and profits. In short, it means we all prosper together.

The CBS Sunday Morning program ran a great story on The Container Store's employee-focused culture which you can watch below.

Budget Should Concern Parents and Property Taxpayers

I have an op-ed in today's Morning Call of Allentown responding to Governor Corbett's budget proposal. It takes a close look at severe cuts to public schools and support for Penn State and other colleges and universities proposed by the Governor:

If you have children or pay property taxes in Pennsylvania, Gov. Corbett's budget proposal should trouble you. His budget cuts public school aid by a billion dollars, setting funding back three years. Support for Penn State and other colleges and universities is cut in half.

Governor Corbett Unveils 2011-12 Budget Proposal (Updated)

Governor Tom Corbett unveiled a $27.3 billion spending plan for the 2011-12 Fiscal Year. His proposed budget would reduce 2010-11 spending by $866 million, or 3.1%, and cut 1,550 public employee positions.

The Pennsylvania Budget and Policy Center has a full analysis of the Governor's budget proposal and funding levels by department and for specific education, health care and other line items.

You can also read PBPC's media statement on the budget plan.

You Will Never Be Poor Enough

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Last week, I wrote about a U.S. Chamber of Commerce report that ranked the business climate in Pennsylvania as poor.

One of the states the Chamber ranks as having a good business climate is the low-wage and high-poverty state of Florida.

Wages and regulations, it seems, are even too high in Florida.

Hard Times Generation: Homeless Kids

In case you missed it, CBS's 60 minutes ran a truly heartbreaking segment this Sunday on homeless kids. Take a break at some point today and watch the 13-minute segment.

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