Recent Reports
Pennsylvania Legislators Flying a Too-Friendly Sky?
Taxpayers pick up tab for conferences in California, union meetings
August 16, 2010 | Investigative Report by DARWYYN DEYO
Between 2007 and 2009, Pennsylvania’s state legislators spent $52,564.80 on flights within the state and to special legislative conferences and presentations around the country. Some waited until the day beforehand to book their flights, and some lacked receipts for flights costing hundreds of dollars. Of the 59 state legislators who requested reimbursement, more than $42,000 was spent by 42 Democrats in the House and Senate, and 17 Republicans spent a little under $12,300.
Barnes Foundation Moving with RACP Funds
Concerns over national heritage site status persist
July 13, 2010 | News Release by DARWYYN DEYO
The art collection of the Barnes Foundation, valued between $25 billion and $30 billion, is being moved to Philadelphia from Lower Merion Township with the use of taxpayer dollars, even while opponents argue the current location, over 80 years old, is eligible for national heritage status. “They're starting to build a replica of the Barnes foundation, a school for art appreciation that has an immensely valuable art collection, but it's a national heritage site,” said Evelyn Yaari, a member of the Friends of the Barnes Foundation. “[Gov. Ed Rendell] has seen fit to apply public money.”
Five Years Later, Pay Raise Legislators Still in Office
Moving onwards and upwards to Senate, Congress
July 7, 2010 | Investigative Report by DARWYYN DEYO
Five years after the Pennsylvania General Assembly passed the controversial pay raise in the middle of the night, more than half of the 119 state representatives who voted in favor of the bill are still serving in state government or higher. In the 2006 election following the pay raise, 45 of those who voted for the pay raise lost their seats, and since then 14 more have given up their seats through retirement or lost elections. But five years after the pay raise, 59 representatives still retain their House seats. Two more have gone on to seats in the state Senate.
Recent News Stories
State Treasurer McCord Files Brief Against Gaming Control Board
Cites Gaming Act, Sunshine Act in support of his board meeting attendance
September 3, 2010 | by DARWYYN DEYO
Early Friday afternoon, Treasurer Robert McCord filed a brief against the state Gaming Control Board (GCB), the latest move in an ongoing fight over whether the Treasurer is allowed at board member meetings under the Sunshine Law.
As state Treasurer, Mr. McCord first tried to attend board meetings in June 2009, to which he was denied access by the GCB. Though an ex officio “non-voting” member of the board, Mr. McCord maintains he has the right to be present at board meetings.
In July the GCB argued Mr. McCord, as an elected official, could taint the board with “an appearance of corruption and could erode public confidence in the oversight of gaming” because Mr. McCord is “an elected official dependent on campaign contributions.”
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All state GCB board members are appointed by elected officials, including Gregory Fajt, executive director.
In a statement Friday, Mr. McCord said the board is illegally trying to limit his participation in its meetings as they consider gaming licenses for the state’s casinos.
“These gaming licenses are valuable Commonwealth assets and the public deserves the strongest possible returns on its investment. This requires expert and independent oversight – both of which I can provide. I didn’t come into office looking to pick this fight, but the Board has left me no choice and it is a fight worth fighting,” said the treasurer.
Mr. McCord’s brief lists as the primary argument the Pennsylvania Gaming Act, which directs that the state Treasurer shall serve as a member of the GCB. His presence at the meetings may also be supported by the Sunshine Act, and the brief states “the declared objective of the Sunshine Act is to enhance the democratic process by ensuring the right of citizens to notice and access to all meetings of public agencies.”
The treasurer also notes the Sunshine Act states no official action may be taken by an agency unless done “at an open meeting” and argues in the brief the board’s exclusion of him as a non-voting member is an “unprecedented” use of the act.
Mr. McCord also argues the GCB’s claim to a quasi-judicial status does not necessarily mean it enjoys quasi-judicial immunity from federal claims, citing six factors from a federal district court ruling against the board. The board’s claim to a quasi-judicial status went to Mr. McCord’s presence, as an elected official, during licensing deliberations.
Thursday afternoon, state Rep. Curt Schroder (R – Chester), minority chair of the House Gaming Oversight Committee, released an amicus brief filing in support of Mr. McCord’s case against the GCB.
Mr. Schroder cited provisions in the Statutory Construction Act and the Gaming Act arguing the treasurer’s presence at the board meetings would be appropriate.
The brief states “underscoring the importance that the General Assembly places on the involvement of an ex officio PGCB members, and to encourage the active participation of the Treasurer, as well as other ex officio members, in 2006 the legislature amended the Gaming Act to allow ex officio members to have designees serve on the PGCB.”
Quoting from the gaming statute, the brief lists those elected officials who may serve as ex officio members of the board and may attend, or have a designee attend, meetings including: the secretary of revenue, the secretary of agriculture and the state treasurer.
The Gaming Control Board filed its initial brief August 5 and had no comment in response to Mr. McCord’s filing Friday.
Darwyyn Deyo is a reporter for PA Independent. She can be reached at darwyyn@paindependent.com
Governor Announces 40 New Green Energy Projects
Argues for legislative amendment to increase solar requirements
September 1, 2010 | by DARWYYN DEYO
Gov. Ed Rendell announced 40 new alternative energy projects at a Wednesday press conference and argued government investment in the new energy sources was necessary to incentivize growth, slamming conservatives who suggest otherwise.
“In seven and a half years, our administration has made significant investments in the green energy field, starting with the Alternative Energy Portfolio Standards (AEPS) we passed in 2004, our strategic investments in cellulosic ethanol and biodiesel and our investments in clean energy projects including the 2007 $650 million alternative energy investment fund,” said Mr. Rendell.

He also claimed $1 billion in government investment attracted $5 billion dollars in private investment, leading to the creation of nearly 10,000 jobs, an average cost of $100,000 per job.
The 40 projects announced today, using $20.5 million in state and federal investments, are expected to create 1,400 jobs, an average cost of $14,642 per job.
Mr. Rendell touted the projects and said “the state is now purchasing 40 percent of its electricity needs from renewable energy sources including biomass and wind energy which means 160 million of our 400 million kilowatts of energy are green, making us the number one state in the nation in terms of energy that we purchase that is renewable.”
According to the Pew Charitable Trust, Pennsylvania is third in the nation for creating green energy jobs, just behind California and Texas, which also have alternative energy portfolio standards.
The governor also suggested the state legislature should take up the amendment to the Alternative Energy Portfolio Standards act to increase the mandate on solar energy purchased by energy companies from 0.5 percent to 1.5 percent of total energy purchased.
“If we do that we remain competitive and grow that industry,” said Mr. Rendell. “You can see the innovation and if you just look forward, five ten years, the potential for capturing forms of energy production that never existed is almost unlimited.”
But the reports on the alternative energy standards released by the state Public Utility Commission (PUC) indicate solar energy is more expensive today than 2007, using information from the U.S. Energy Information Association. In 2007, solar cost 41.25 cents per kilowatt and in 2009, it costs 67.8 cents per kilowatt, a 65 percent increase.
Andrew Place, acting deputy secretary for the state Department of Environmental Protection, said the size of the cost increase is due to a change in the baseline the PUC uses to compare the cost of alternative energy and traditional energy. As a result, data from previous reports could not be used to accurately predict the cost of alternative energy. Mr. Place insisted the cost of solar energy is going down over time, citing falling installation costs.
“That’s a snapshot; they are trending downwards,” said Mr. Place. “The solar companies will recoup their costs two, three, four years from now. You’re driving the market, you’re investing in technology that only gets cheaper by greater installation, more companies innovating. We’ve seen a 35 percent drop in the install cost of solar since the governor instituted much of what you’re doing here.”
And Mr. Rendell further argued for government intervention and investment where private investment already exists, suggesting it will create more jobs and tax returns down the road.
“If you worry about that, we will never produce new forms of energy. Every new business in its incipient stages is more expensive,” said Mr. Rendell. “That’s what the conservatives don’t grasp about government money going into economic development. The conservatives don’t get it or, if they get it they don’t want to admit it.”
Darwyyn Deyo is a reporter for PA Independent. She can be reached at darwyyn@paindependent.com
House Legislation Would Add Text Ads to Do Not Call List
Creates state version of federal regulations
August 31, 2010 | by DARWYYN DEYO
A Pennsylvania state lawmaker wants to stop a new form of nuisance advertising in its tracks by adding text message advertisements to the state’s Do Not Call list.
Sponsored by state Rep. Seth Grove (R-York), House Bill 2675 adds cell and smart phones and text messages to the state’s Telemarketer Registration Act. However, the would-be revised Do Not Call list would not apply to political candidates and parties, non-profit organizations, or businesses that have established relationships with the consumer.
Mr. Grove said the bill was a preventative measure against the next wave of nuisance advertising, even though such messages are already investigated at the federal level.

“It’s more effective than email, so I can really see this as being the next nuisance consumer issue,” said Mr. Grove. “Really, try to be a little proactive and stop this before it begins. Text message advertisements can be a huge win for ad agencies and so forth. A little proactive government.”
He said exceptions for non-profits and politicians have been included since the original telemarketer Act 147, passed in 1996, but he would have no issue with those stipulations being amended in the future, but said telemarketers outside of the U.S. were another issue.
“Someday maybe we’ll have a U.N. Do Not Call list,” said the representative.
While Pennsylvania is only just moving to add text message advertisements to the Do Not Call list, federal agencies already manage a Do Not Text list and investigate complaints and violations of the list. The Federal Trade Commission (FTC) handles robo calls and unsolicited calls and the Federal Communications Commission (FCC) handles unsolicited text message advertisements.
In Pennsylvania, the Bureau of Consumer Protection under the Office of the Attorney General manages the Do Not Call list, which is sent out to telemarketers on a quarterly basis.
“The reality is there are existing federal regulations that address these things, there are existing federal agencies that already take complaints, and the majority of text spam matters originate outside Pennsylvania and from far outside the United States,” said Nils Frederiksen, spokesperson for the Office of the Attorney General. “Trying to address those things on state level would be extremely challenging.”
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As far as privacy law goes, Andy Hoover, legislative director of the Pennsylvania ACLU, said as long as the bill includes the exceptions for politicians and non-profits, it remains a non-issue.
“They cannot do a total ban on political marketing or nonprofit telemarketing because that is protected speech,” said Mr. Hoover. “A few years back there was an attempt to do that.”
Mr. Frederiksen explained the majority of telemarketing business in Pennsylvania are legitimate and have a vested interest in continuing to operate, and so follow regulations and purchase call information legally.
“We’ll certainly review anything the General Assembly considers and we’ll move forward from there but as of now unsolicited advertisements, text message ads are already addressed by the FCC,” said Mr. Frederiksen.
“As it stands right now, text messages are outside Pennsylvania Do Not Call law, and any complaint we get goes to the FCC.”
The FCC and FTC did not return requests for comment.
Darwyyn Deyo is a reporter for PA Independent. She can be reached at darwyyn@paindependent.com
Recent Multimedia
AUGUST 24, 2010 | by DARWYYN DEYO
VIDEO: Pennsylvania Investments - A Special Report
Still recovering from recession, Pennsylvania’s Treasury is diversifying investments to offset painful losses, even investing in a federal program to bail out securities markets.
But with state revenues lower than expected, the outcome stands between Pennsylvanians and legislators’ calls for new taxes.
A PA Independent video report by Darwyyn Deyo.
Pennsylvania Investments - A PA Indy Special Report from PA Independent on Vimeo.
Darwyyn Deyo is a reporter for PA Independent. She can be reached at darwyyn@paindependent.com





