Irey Vaughan Plan for PA

7/31/2019 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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Documents

Irey Vaughan Plan for PA