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Watch Those Pennies
Written by Larry Roeder, Editor
2014-06-18

                The Americanized version of a Benjamin Franklin quote goes: "Take care of the pennies and the dollars will take care of themselves."  Though many attribute it to him, there are some who think the saying originated by somebody else in jolly old England.

                But the message is clear; consistently taking care of the small change will eventually add up to big bucks.

                Another June 30 budget deadline approaches and Pennsylvanians are sweating another year and another deficit that needs to be filled.  This year's amount could end up being anywhere from $1 billion to $1.6 billion. 

                Too many legislators are focused on the two or three big-ticket items that could generate lots of revenue or lots of cost reductions.  After all, saving the budget with the stroke of a pen that reflects hundreds of millions or even a billion dollar positive effect on the balancing the ledger would grab big headlines and could even make one a super-legislator.  This is especially true in an election year or for those Harrisburg headliners seeking loftier positions.

                Trouble is, finding agreement in the state capital or around the Commonwealth on those big-ticket items is a long-term or even impossible project.  Meanwhile Pennsylvanians get to hear the annual billion dollar budget deficit message again and again.   So, why not look to the pennies to save the dollars?

                Last Saturday, the Harrisburg Patriot-News published an article by Charles Thompson that took a look at what could happen if state legislators took the Ben Franklin approach to solving the current budget crises.         

                According to Thompson making changes in smaller budget items, when added together, amount to nearly $1.3 billion.

                Some of those changes include: getting $150 million from shortening the time from five years to three years during which folks can claim unclaimed assets; $75 million from letting gas drillers drill under state forests; $600 million from a severance tax on gas; $66.1 million from taxing candy and gum; $5 million from taxing lottery winnings of more than $600, $110.5 million from freezing rather than cutting the capital stock and franchise tax on businesses; $50 million from raising the cigarette tax by 10 cents; $17 million from taxing e-cigarettes; $26 million from taxing cigars and smokeless tobacco; $161 million from eliminating tax credits to all those connected developers and friends of insiders; and $68 million from allowing internet gambling. 

                Yes, there is a con to every pro and Pennsylvanians won't agree to everything that's on Thompson's list.  But, it lays out the general idea that good things can come in many smaller packages.  Issues that can be easier to find support for, and they're easier to carry.

                We need to encourage our legislators to look for that plethora of little things that can add up to a balanced budget.   If it's good for the budget and good for the people, then dispense with the bargaining (if you support this, I'll support that) and come to an agreement or compromise on both.

                Elected officials on all levels would do well to remember another of old Ben's quips: "He that is of the opinion money will do everything may well be suspected of doing everything for money."

                Keep an eye on those pennies.


 

 

 

 

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