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PSU Partners with PCAR, More Scrutiny

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Penn State will tap its share of this year’s Big Ten bowl revenues to fund a new partnership with the Pennsylvania Coalition Against Rape.  PSU has committed $1.5-million dollars for the partnership, which will focus on everything from professional development for employees to developing research on child sexual abuse.  “Our own experience shows that child sexual abuse greatly impacts individuals and entire communities,” university president Rodney Erickson said in a statement.  “It is now our responsibility to assist in raising awareness and in helping fight this insidious and often secret crime.” 

PCAR reached out to Penn State almost immediately after the news of the Jerry Sandusky child sex abuse scandal broke.  PCAR CEO Delilah Rumburg is pleased with the new partnership.  “It shows strength to take a tragic situation and turn it into an opportunity to grow and learn,” she says. 

News of the new partnership comes amid continued scrutiny of Penn State.  Auditor General Jack Wagner, Wednesday, said he wants to ensure that taxpayer dollars aren’t used in the defense of any individuals charged in the sex abuse scandal:WAGNER4

 

PA’s Fiscal Watchdog Opposes Liquor Privatization Bill

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Auditor Genral Jack Wagner

Auditor General Jack Wagner addressed the media on Wednesday.

The proposal to privatize Pennsylvania’s wine & spirits stores is a bad deal for taxpayers and customers alike, according to Auditor General Jack Wagner.   “Would you sell a reliable asset that brings in a profit of at least $100-million dollars a year… losing 5,000 jobs during tough economic times?”  Wagner asked.  “I don’t think so.”  Wagner shared his concerns with reporters in Harrisburg before traveling to Philly to testify before the state House Liquor Control Committee. 

Wagner calls the Pennsylvania Liquor Control Board one of the few profit-making ventures in state government, and balked at estimates that Pennsylvania could generate an up-front windfall of $1 – $2-billion dollars by divesting its liquor stores.  “Wouldn’t it be an embarrassment if this legislation passed and we got virtually nothing for the LCB?”

While he’s not opposed to the concept of privatizing certain state operations, Wagner doesn’t think it makes sense in the case of the state-run liquor stores.  Wagner suggests modernizing the system as the preferred option, noting that state lawmakers need to take the handcuffs off of the PLCB. 

While the Auditor General doesn’t see the logic behind this privatization movement, Governor Tom Corbett says it starts with philosophy.  He says the LCB’s dual role of selling and regulating alcohol is a conflict of interest.  “We are enforcing the liquor laws, we are enforcing the drunk driving laws, we are enforcing the drinking laws, yet we have the main agency when it comes to liquor saying drink more,” Corbett told a recent Pennsylvania Press Club luncheon.  “Get out of the business.” 

The state House Liquor Control Committee is in the midst of two days of hearings on the privatization bill in Philadelphia.  HB 11 is scheduled for a committee vote in mid-December.

PA School Districts

Auditor General Says School District Misspent Thousands in Federal Funds

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The Pennsylvania auditor general says a school district misspent thousands of dollars in federal grant money.  The special audit was requested by the U. S. Department of Education

Auditor General Jack Wagner says the audit has found that the York City School District misspent over 800 thousand dollars in money from the 21st Century Community Learning Centers Grant program.  He called it a blatant misuse of tax dollars.

Wagner says the district spent taxpayer dollars without a purpose.  He says the money was used to buy equipment that’s sitting in storage rooms.  He says that includes laptop computers, athletic equipment, putting greens, stop watches  and other items that have never been used.

Wagner   pointed blame at both the school district and state education department. He says   the U. S. Department of Education should help determine what to do with the equipment and decide if the money should be paid back.   He adds the case raises concerns about other school districts and how they’re spending grant monies.

Wagner says school district employees interviewed for the audit indicated they felt pressured to spend the entire amount of the grant rather than return some of the money. He says the number of children the district indicated would be part of the program were one-third less of projections.  He says they knew factually they did not need this much equipment to meet the requirements of the grant that serves children in need with special programs before and after school and in the summer months.

Wagner says this mentality of spend it or lose it must change.

New Law Puts Veteran on Civil Service Commission

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Ron Marsico

State Rep. Ron Marsico speaks in the Governor's Reception Room.

The latest law signed by Governor Tom Corbett requires that at least one member of the Civil Service Commission be a veteran of the United States Armed Forces.  “This legislation will say that Pennsylvania’s veterans will finally have what they deserve, a constant representation on the state’s Civil Service Commission,” says State Rep. Ron Marsico (R-Dauphin), the bill’s prime sponsor. 

 “We discovered that the Pennsylvania Civil Service Commission has not always met its goal of seeing that the veterans get the extra consideration that they earned,” Governor Corbett said as he thanked Auditor General Jack Wagner for calling attention to the problem. 

It was a 2008 audit that first found that state agencies skirted veterans’ preference requirements and failed to consider eligible veterans for 569 vacant positions.  The state’s Veterans’ Preference Program provides that veterans who pass the civil service exam receive 10 additional points, and have mandatory hiring preference if they have one of the top three scores for the position being considered. 

Auditor General Jack Wagner says the new law is especially important during a time when the unemployment rate among returning Iraq and Afghanistan veterans is now 10.9% in Pennsylvania.  That’s much higher than the statewide unemployment rate of 8.2%.  “A veteran on the commission will ensure that the civil service system works properly for all of Pennsylvania’s veterans,” Wagner said in a written statement. 

Just before signing the new law, Governor Corbett announced that he’s nominated John Stevens to the commission.  “He is a man who knows both the purpose of civil service and the needs of our veterans,” Corbett says.   Stevens, a Centre County resident, is a veteran of both the Pennsylvania National Guard and US Army.  His nomination is subject to Senate confirmation.

Cash

Auditor General Questions Oversight of Public Assistance Benefit Cards

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Auditor General Jack Wagner

The state Auditor General is questioning the oversight of public assistance that’s distributed through electronic benefits transfer cards.   Jack Wagner says he can’t say with assurance that the cards are being used properly and only for their intended purposes. He says that’s because the Department of Public Welfare has not provided enough records and supporting documentation for a proper review by his office.

Wagner says 5.2 million dollars in cash for welfare benefits was used for out-of-state purchases or cash withdrawals in May of 2010.  He says 80% of the transactions occurred in bordering states.  Beyond that, he says his department known nothing about the types of purchases that were made.

Wagner says they want to make sure in these tough economic times; all available resources are there for those in need.  He says  his intent is not to raise unfair suspicions about welfare recipients.  He says his concern is over DPW’s refusal to properly administer programs to prevent the system from being “gamed”.

In a special report, Wagner says DPW needs to develop an internal review process to monitor transactions made with the cards, to make sure funds are spent in accordance with their intended purpose. Wagner says that oversight should include confirmation that a recipient still resides in Pennsylvania and should restrict access to ATMs in establishments that are inconsistent with the intent of the program.

In a written statement, the Department of Public Welfare responded to Wagner’s special report on the EBT cards. The department says that it takes its responsibility to make sure benefits are provided only to those eligible very seriously. Steps have been taken to review out-of-state transactions and potentially questionable benefit usage.

The statement says with respect to the Auditor General’s request, Secretary Alexander is very interested in open and transparent government.  DPW plans to accommodate the Auditor General to the fullest extent permitted by law.

Auditor General’s Report Critical of Wine Kiosk Program

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There has been more criticism of the PLCB‘s wine kiosk program, this time from a special performance audit.   Auditor General Jack Wagner says the program does not meet the goals of greater convenience or increased profitability, or reaching under-served areas.  He says unless there are radical changes in the contract with the vendor, the LCB should terminate the contract.

Wagner says there are still 22 kiosks operating at supermarkets in Pennsylvania since Wegman’s pulled out of the program, but sales at those stores are running far below the LCB’s original projections.

Wagner the kiosks were not even open on Sunday. He adds the General Assembly needs to take the handcuffs off the LCB, permitting all of the state stores to be open seven days a week, 12 hours a day.   

Joe Conti, CEO of the Pennsylvania Liquor Control Board, says the future of the kiosk program depends on the resolution of a financial dispute with the vendor over cost reimbursement.  The vendor was declared in breach of the contract.  There is a 45 day cure period which expires September 19th.

Conti agrees with Wagner that the state stores should be able to change their hours of operation.  He says they need a legislative amendment to the liquor code to expand those hours.  He says one was adopted last session but vetoed by then-Governor Ed Rendell.  Conti says there is legislation moving again to expand the hours.

Conti called Wagner’s report very fair and balanced.  He says they will certainly review the recommendations.

Wagner’s report recommends that if the contract for the kiosks is not terminated, the LCB should explore other options for testing blood alcohol concentrations at the kiosks and be more aggressive in holding the vendor accountable for ensuring the kiosks are fully functional at all times.

It recommends the LCB work with the General Assembly to pass legislation that would allow all stores and kiosks to be open seven days a week, with state stores open from 9 a.m. until at least 9 p.m. and kiosks available from 9 a.m. until midnight if they are housed in stores open during those hours.   It also recommends the kiosk offer liquor sales as well as expand wine offerings.

The report finds the kiosks had more than 900 malfunctions before they were shut down last December for repairs.  Even after they were brought back on line in January, there were more than 100 malfunctions reported from late January into late February.

The report also finds that the LCB has spent 1.12 million dollars more than it took in over two fiscal years on the program. The board has billed the vendor for the costs, but the vendor has not paid, resulting in the breach of contract situation.

Pennsylvania Finance Building

Auditor General Raises Red Flag on Tobacco Settlement Fund

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Jack Wagner

Jack Wagner meets with the news media on Thursday

Fresh off of a series of five statewide public hearings, Auditor General Jack Wagner has delivered a special report to state lawmakers.  “It’s about time the General Assembly steps to the plate and listens to what the public is talking about in relation to their dollars, these tobacco settlement dollars,” Wagner said at a Thursday news conference.  “Overwhelmingly, in 99.9% of all the testimony we heard, the public wants these dollars to be spent for health-related purposes.”  Wagner says that was the intent behind the Tobacco Settlement Act of 2001, but about $1.3-billion dollars has been quietly diverted to other budget purposes over the past six years. 

Pennsylvania has been receiving $350-million tobacco settlement dollars a year, and is expected to continue to receive that money for at least the next 15-years.  Two of the high-profile uses spelled out in Act 77 of 2001 were the adultBasic health insurance program, and tobacco use prevention and cessation programs.  The adultBasic program expired earlier this year due to a lack of funds, but Wagner says it can still be salvaged with a combination of public and private financing.  “There is a significant need for it to continue,” Wagner says.  “There were 42,000 people on the rolls of adult basic and there were almost 500,000 on the waiting list.” 

When it comes to tobacco cessation programs, Wagner was flanked by a chart that shows they received $50.5-million dollars in funding for fiscal year 2003, but only $14.7-million in FY2011.  He says 20,000 Pennsylvanians die of smoking-related illnesses each year.  “We are hopeful that what has happened over the last five or six years does not continue to happen in this budget,” Wagner said, upon delivering his special report to legislative leaders and Governor Tom Corbett.  A Senate Republican spokesman confirms that the Tobacco Settlement Fund will be discussed during the upcoming budget negotiations, but he could not speculate as to the result of those talks.