Senate Committee Votes to Legalize Payday Loans in Pennsylvania

Editor’s note:  Many thanks to PJ McGill for forwarding us this important information!  Two Roy’s Rants thumbs down those Senators who helped move this bill out of committee.

HARRISBURG, PA — In a closely divided 8 to 6 vote today, the Senate Banking and Insurance Committee approved Senate Bill 975 legalizing payday loans with annual percentage rates of upwards of 300%. The bill moves to the Senate floor, despite the opposition of veterans, seniors, faith groups, and a majority of Pennsylvanians.

The Keystone Research Center issued the following statement on behalf of the Coalition to Stop Predatory Payday Loans in Pennsylvania:

“Senate Bill 975 rolls back the state’s longstanding protections against predatory payday loans. Pennsylvania has been recognized by both the Pew Charitable Trusts and the U.S. Department  of Defense for having among the strongest laws in the nation to keep out predatory payday lenders. A 2010 Pennsylvania Supreme Court case held that loans made in violation of existing law are illegal, even when made online.

“Senate Bill 975 would undo those protections, harming working families across the state. With this bill comes a higher likelihood of bankruptcies in Pennsylvania, and payday lenders gaining direct access to borrowers’ bank accounts. These are just some of the reasons that the bill faces opposition from a majority of Pennsylvanians.”

The Coalition thanks those Senators who stood with Pennsylvanians to oppose this bill: Senators Michael Stack, Lisa Boscola, Larry Farnese, Anthony Williams, Patricia Vance, and John Rafferty. Democratic Chairman Stack made a passionate plea for the committee to do what veterans and others have asked: to reject this bill and keep our existing, strong consumer protections in place.

We are disappointed in those Senators who stood with payday lenders by voting yes on this bill: Senators Pat Browne, Don White, Mike Brubaker, Kim Ward, Jake Corman, John Eichelberger, Joseph Scarnati, and Jim Brewster.

Richest 7 Percent Got Richer During Recovery, Report Says

English: Map of the United States. (Photo credit: Wikipedia)

WASHINGTON, D.C. – The richest Americans got richer during the first two years of the economic recovery while average net worth declined for the other 93 percent of U.S. households, says a report released today.

The upper 7 percent of households owned 63 percent of the nation’s total household wealth in 2011, up from 56 percent in 2009, said the report from the Pew Research Center, which analyzed new Census Bureau data released last month.

The main reason for the widening wealth gap is that affluent households typically own stocks and other financial holdings that increased in value, while the less wealthy tend to have more of their assets in their homes, which haven’t rebounded from the plunge in home values, the report said.

Tuesday’s report is the latest to point up financial inequality that has been growing among Americans for decades, a development that helped fuel the Occupy Wall Street protests.

Read more:  http://readingeagle.com/article.aspx?id=471710

Luzerne County Officials Take Another Look At Gnat Problem

Map of Pennsylvania highlighting Luzerne County (Photo credit: Wikipedia)

The Luzerne County administration is rethinking plans to cancel participation in a state bug spraying program, sources say.

County management eliminated $75,000 from the 2013 budget for blackfly spraying because the state did not supply documentation showing the program has proven results.  The administration had planned to conduct spraying in-house if problems surfaced.

However, some County Council members and citizens expressed concern about pulling out of the program.

Prior commissioners considered a similar spraying cancellation on the advice of an outside financial recovery consultant in 2010, but they reversed their decision after the state warned the Susquehanna River generates “tremendous numbers of adult gnats that will adversely impact outdoor recreation activities throughout the county.”

Read more:  http://www.timesleader.com/news/local-news/423374/Officials-take-another-look-at-gnat-problem

Free Workshops

Genesis Housing Corporation

Banking Basics - Tuesday, April 16th, 10am, Pottstown Regional Public Library, 500 East High St.

Banking for Seniors - Tuesday, April 23rd, 10am, Jefferson School Apartments, 250 Hale Street, Pottstown

For more information and to register call 610-275-4357.

State Puts Reading School District On ‘Financial Watch’

Map of Berks County, Pennsylvania, United States Public School Districts (Photo credit: Wikipedia)

The state has officially labeled the Reading School District as being in “financial watch status,” a step away from state intervention.

The Department of Education announced Friday that the district has hit several financial-difficulty indicators in the Act 141 early warning system. Passed last year, Act 141 is the state’s law to help financially distressed school districts.

Four districts – Harrisburg, Duquesne, Chester-Upland and York – already have been placed in Act 141 financial recovery and have state-appointed recovery officers overseeing their finances, something Reading officials are hoping to avoid.

Dr. Carlinda Purcell, superintendent, said she sees the designation as a positive step toward dealing with the chronic financial struggles.

Read more: http://readingeagle.com/article.aspx?id=460369

New York Parks In Less Affluent Areas Lack Big Gifts

When Frederick J. Kress, who sits on the board of the Flushing Meadows-Corona Park Conservancy, heard about it, he had only one thought: What about us?

Flushing Meadows-Corona, which has been the setting for two World’s Fairs, is considerably larger than Central Park, at 1,225 acres, compared with 843. Last year, its conservancy attracted $5,000 in donations.

The park’s bicycle and walking paths are cracked and pitted, Mr. Kress said, and its natural areas are overgrown with invasive species.  “Central Park is doing pretty well,” said Mr. Kress, who is also president of the Queens Coalition for Parks and Green Spaces, noting that though Mr. Paulson’s home on Fifth Avenue overlooks Central Park, he grew up in Queens.  “I’m not saying he owes anyone anything, but how about you give Central Park $98 million and Flushing Meadows-Corona $2 million?  That two million would have gone so much further in an underappreciated park.”

Read more:  http://www.nytimes.com/2013/02/18/nyregion/new-york-parks-in-less-affluent-areas-lack-big-gifts.html?hp&_r=0

Retailers, Consumers Take Swipe At Credit Card Surcharge

English: Old Visa logo. (Photo credit: Wikipedia)

Charles Griesemer says there’s no way he would pay a fee to use his credit card at the gas pumps or in checkout lines, calling such a surcharge unfair.

“That would be ripping off the working man,” the Oley Township man said recently while gassing up his pickup truck. “I’d rather go to the bank and get cash.”

For those like Griesemer, who would balk at credit card fees, there is good and bad news.

The bad news is that credit card surcharges of up to 4 percent are now allowed on retail purchases in 40 states, thanks to a settlement retailers reached in July with MasterCard and Visa.

Read more:   http://readingeagle.com/article.aspx?id=453496

Theaters, Playhouses Fear Financial Problems And Technical Demands Will Lower Their Curtains

At Oyster Mill Playhouse, the aging rooftop heating and air conditioning system is threatening to stage a death scene worthy of “King Lear.”

With audiences — and therefore revenues — down, there’s no money for a replacement, so managers of the not-for-profit community theater in East Pennsboro Twp. are hoping the community will donate about $25,000 to keep Oyster Mill going for another year.

“Like many other theaters, we are having our financial problems,” said Howard Hurwitz, vice president of the 91-seat theater’s board of directors. “This year has been kind of a bad year. We just haven’t been getting the attendance. We used to sell out on opening nights, but now we are lucky if we get the theater half-full.”

Oyster Mill is far from alone.

Read more:

http://www.pennlive.com/midstate/index.ssf/2012/11/oyster_mill_playhouse_theaters.html

City Of Reading Hires Montgomery County Firm For Payroll

At Mayor Vaughn D. Spencer’s request, City Council on Monday awarded data processing giant ADP a $214,100 contract to take over the city’s payroll operations.

The move will get rid of an error-prone, in-house system for which the IRS has fined the city more than $100,000.

“We’re not payroll experts; we’re getting out of the business,” said Christopher Zale, acting director of administrative services.

The IRS fines - $50,400 each for tax years 2007 and 2008 because the city’s W-2 forms weren’t compatible with IRS computers, and weren’t re-filed properly until months after the deadline – were levied in 2010.

Read more: http://readingeagle.com/article.aspx?id=378811

Moody’s Investors Service Reviewing Penn State Bond Rating For Possible Downgrade

More bad news for Happy Valley!

Due to the charges against Jerry Sandusky, a major credit agency is reviewing Penn State’s Aa1 bond rating for a possible downgrade.  Moody’s Investors Service stated on Friday they have put Penn State’s bond rating under review due to the damage of the university’s reputation by the child sexual abuse scandal.

Moody’s will assess things like lawsuits brought against the university, enrollment decline, loss of donations and any change in the university’s status with the Commonwealth of Pennsylvania.

Needless to say, this action could negatively impact Penn State and the university’s ability to recover from the scandal.  Penn State is a major employer in Pennsylvania.  According to Wikipedia,”The university is now the largest in Pennsylvania, and in 2003, it was credited with having the second-largest impact on the state economy of any organization, generating an economic effect of over $17 billion on a budget of $2.5 billion.”

HSBC To Slash 30,000 Jobs Worldwide

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UK banking giant HSBC is now focusing on fast-growing emerging markets and plans to sell about half of its US Retail Bank Branches (195) to First Niagara for about one billion dollars.  The branches up for sale are mainly in New York and six are in Connecticut.

HSBC lost billions in the financial crisis of 2008; however HSBC reported a 3 percent increase in pretax profits for the first half of 2011.  The increase exceeded forecasted expectations.

HSBC is shifting their focus by expanding in emerging markets and reducing headcount in tougher markets.  A company official failed to give details on specifically where the 30,000 job cuts would be made.

Why Is It Important For Pottstown Residents To Be Informed And Proactive?

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Code Blue is asking Pottstown Borough residents to make themselves aware of the current issues facing our borough and school district.  We here are Roy’s Rants agree!  The borough and school district occupy the same five square miles.  Therefore, it is crucial that the borough and school district work harmoniously and with the one vision for our community.  Your tax dollars support the borough government and the education of our children.

We believe the school district and borough are working more closely together.  A new spirit of cooperation is evolving since Dr. Lindley has become Superintendent of Schools.  We applaud the effort that the borough and school district are making to this end.  We encourage the borough and school district to continue working together and defining a common mission and vision to move Pottstown forward.

As a resident, the decisions that the Pottstown Borough Council and the Pottstown School Board make have a direct impact on your wallet.  Therefore, it is critical that taxpayers are educated consumers.  There are 22,377 Pottstown borough residents (2010 census).  Residents need to make fact-based decisions and not make decisions based the opinions of one or two outspoken people.

You are encouraged to attend school board and borough council meetings to gain first-hand knowledge of what goes on and see who is making decisions on your behalf and spending your money!  Knowledge is power.

Upcoming Pottstown School Board meetings are:

March 31^st, April 14^th, May 5^th and May 19^th

Upcoming Pottstown Borough Council meetings are:

April 11^th and May 9th

There are some big decisions coming down the road about the number of elementary schools Pottstown really needs and can afford.  The school district is facing a large budget deficit due to funding cuts from Harrisburg and a declining tax base.  The teaching staff is without a contract and negotiations are not going well.  If you do not think these issues will impact your wallet, guess again!  If you are unhappy with your child’s education, your tax bill or have concerns with any of the issues I mentioned above, come to a school board meeting and let your feelings be known.  We elected these people into office and their job is to serve the taxpayers of this community.  They will welcome your comments.

http://www.pottstownschools.com/pottstown/Our%20District/Board%20of%20Education/Board%20Members.html/_top  Click this link to see who is on the school board if you are unsure.

The borough government is constantly grappling with decisions that affect your daily life at every meeting.  Sadly, a handful of people attend these meetings and offer little citizen advice.  Council needs to hear from the citizenry of this community.  Complaining that Pottstown sucks to everybody you know is not helpful and accomplishes little more than further damaging our community’s image to the outside world.  If you want to express your dissatisfaction about how this town is run, COME TO A COUNCIL MEETING and tell the people who can do something about it.  There are seven councilors making decisions for 22,377 people.  We voted them into office and they serve at our pleasure.  The taxpayers of this community put them in these positions.  Do you know who your councilor is?   http://www.pottstown.org/about_council.htm  Click this link to see who represents your Ward.

Do not be swayed by propaganda and skewed facts.  Make informed decisions by coming to meetings and asking questions from our elected officials.  Just because someone writes an opinion piece and publishes it in the newspaper does not mean it is 100 percent accurate.  It is an opinion.  An opinion can be defined as:  A belief or conclusion held with confidence but not substantiated by positive knowledge or proof. 

Knowledge is power!

Camden Layoffs Become Reality

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After months of talking about layoffs and balancing the budget, Camden now has far fewer municipal employees.  168 police, 67 firefighters and 100 other city workers were let go last week. (That represents about 25% of the city’s employees)  This is an effort to close Camden’s $26.5 million dollar budget deficit. (For a point of reference, Norristown’s entire 2011 budget is $25.5 million dollars).

The good news is that no spike in crime has occurred, yet.  However, as one astute online commenter pointed out, wait until summer.  It is too cold out now and people are staying indoors.  This summer, when it hot and people are outside, things will get dicey.  There is certainly something to be said for that theory.

Camden can not be compared to other suburbs their size.  Generally, suburbs do not have the inner city problems that Camden does.  Camden is certainly in a class by itself when you study their demographics and crime statistics.  The crime rate and abject poverty are startling. 

Another well made point was that Camden is not an island.  It is surrounded with other suburbs and criminals are not stopped by the city line.  Not good news for Camden’s affluent neighbors like Cherry Hill and Haddonfield, to name a few.           

Let us hope that a solution can be found to resolve Camden’s budget problems before the warmer weather hits!

Pottstown Borough Council Meeting, January 10, 2011

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Call To Order – President Toroney.

Invocation – given by Mayor Heath.

Pledge of Allegiance

Roll Call – all Councilors present.

Approval of minutes was given.

Comments from Citizens Present

Bob Leaming – spoke against parking restrictions on S. Hanover St. that are being proposed as a way to combat increased traffic due to the Keim St. bridge closure.  Bob did an impromptu traffic study on the proposed parking restricted area.  Approximately 20 cars went through each green light.  12 went straight, 7 turned left and 1 turned right, on average.  Banning or restricting parking will not solve the traffic problem.  A longer green light is needed at Hanover and High so more northbound traffic can get through that light. (This plan should also include the light at King and High)

(Jason said a traffic count is being proposed by PennDot to get an accurate handle on the situation.  Jason recommended the motion be tabled to give PennDot sufficient time to conduct a study.)

Nancy Leaming – is the owner of AVJ Natural Cat at 6 S. Hanover St.  Nancy stated a large percentage of her customers come into the store between 4 – 6 p.m. (when the proposed restriction would be in place) and customers can not be lugging huge bags of cat food and litter across the street or around the corner.  Such a parking restriction would kill her business.

Burt Meyers – spoke against the proposed parking restriction as well.  Burt owns Meyers Automotive Repair at 8 S. Hanover.  He stated the four businesses on that side of the street already have a huge parking problem.  The light is also a problem at High and Hanover.  It only stays green approximately 35 seconds.  The restriction would be a great hardship on Burt’s business.

Melissa Braunsberg – is an AVJ Natural Cat customer who also echoed the sentiments of the other speakers and was not in favor of parking restrictions on S. Hanover St.  Parking is already a huge problem and she does not want anything to jeopardize this store because she gets a lot of products from there.  She normally comes into the store between 5 – 6 p.m. (after work) and would have no where to park.  She also feels the light and High and Hanover is a problem.

Don Read – made an impassioned plea to Council to give him another term on the Borough Authority.  He said he realizes many people do not like his personality and that he “speaks about issues” which some do not appreciate.  He feels personality should be removed from the decision-making process and that he has done a good job on the Authority if you look at is record.  Don stated he enjoys being on the Authority.

Mayor’s Report – Bonnie thanked the S. Hanover St. business owners for addressing Council.  She also read part of an email sent out from Anna Johnson of Citizen’s For Pottstown’s Revitalization extolling recent successes and stating that despite our differences, we all share the same goal for a safer Pottstown and encouraged people to stay involved! (You can read that entire email right here on Roy’s Rants).  Bonnie also thanked the Police Department for doing a good job last year.

Manager’s Report – Jason talked about the Community Development Block Grant and a project for Washington Street. 

Jason is working with FEMA regarding data on Pottstown’s flood plain.

The Pottstown Traffic Group is discussing following items: the new signal at Industrial Hwy. and Moser Rd., the Route 100 construction (lane reductions) that will last for 12 – 18 months, the Hanover Street parking and signals, the High Street Bridge closure and rebuilding, the Keim Street bridge project will take 3 – 4 years to get through the design stage, the Armand Hammer Boulevard Interchange on 422 is slated for construction and the Industrial Hwy sewer line replacements and paving needs to be coordinated.

On 01/20/2011 there will be an overview meeting about Pottstown’s Code Enforcement software.

Jason talked about the 22 East Second Street project.  Students from the Votech will be rehabbing that property for resale.  The cost of the project will be recouped from the sale of the property.

Montgomery Planning Commission’s northwest transit plan will involve Pottstown Area Rapid Transit (PART) for 3 of 7 new routes they are recommending be established to service this part of the county, in places where access to mass transit does not currently exist.

The 2010 audit will be completed by May.

Jason talked about Pottstown’s drastic improvement with its finances.  Our cash flow as of 12/31/10 was $1.7 million, compared to 2008 when it was -$136,000!  Liabilities as of 11/31/2010 were $72,000, compared to 2008 where they were $740,000!  We should give Jason, Janice and the Finance Committee a medal!

New Business

Mayor Heath presented a civilian service award to a borough resident who helped Pottstown Police apprehend a drug dealer!  The gentleman got a standing ovation from all present!

Council authorized the application to the 2010 PECO Green Region Space Program for Memorial Park Phase II projects.

Council approved the submission to the Montgomery County Revitalization Board for the following projects: Skyline Lighting, Gallery on High and the Western Gateway.

Council approved an Agreement of Cooperation between the Borough of Pottstown and the Redevelopment Authority of Montgomery County for support of the Village Productions/TRIPAC application to the Department of Community and Economic Development.

Council approved a motion to grant the YWCA of Pottstown a reduced rate on 15 parking spaces in the King Street Lot and to provide 5 spaces at the regular rate.

The motion to prepare an ordinance restricting parking on S. Hanover Street was tabled. (Council is concerned about impacting our downtown businesses)

Don Read was not reappointed to the Borough Authority.  Councilor Kirkland spoke on his behalf.  However, when a roll call vote was taken, only Councilor Kirkland voted to reappoint Mr. Read.  Someone felt the need to clap after the vote was taken.  David Wren was then appointed to serve on the Borough Authority to replace Mr. Read.

Sheila Dugan and Mr. Heisey were appointed to PDIDA.

Council voted to reappoint the four existing members of the Blighted Property Review Committee.

Mark Patrizi was reappointed to the Zoning Hearing Board.

Gail Yoder was appointed to serve on the Vacancy Board.

Council endorsed the concept of the Citizen Education Program, the Pottstown Academy, and the Citizen Codes Inspector Program.  Jason has been given the green light to implement these programs.

Council approved the demolition of the former Frederick Mill Building at 527 N. Hanover St.  Thank you!!!!!!!!!!!!!!!!!!!!!!!!!

A few contracts were awarded for Public Works, Streets Division.  Some certificates of appropriates were approved from HARB and the bills were paid.

Councilor Weand commended the Finance Staff for their fantastic work on getting our financial house in order.  Councilor Weand is head of the Finance Committee and should get a shout-out for all his hard work as well!

Meeting was adjourned so Council could go into Executive Session.

Citizen’s Bank To Abandon Downtown Norristown – Will Leave Huge Empty Building

Citizen’s Bank is not renewing their lease in a large downtown Norristown commercial building, leaving borough and county officials scrambling to find a new tenant!

http://eyescoop.blogspot.com/2010/12/citizens-bank-withdrawing-from.html

Why I Voted No For A 3.1% Tax Increase For Pottstown Borough! By Sixth Ward Councilor Jody Rhoads

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Councilor Rhoads cast the only NO vote at last night’s Pottstown Borough Council meeting for a 3.1% tax increase.  Councilor Rhoads had previously stated he would not vote for any tax increase for Pottstown. 

Evan Brandt and I were handed a list of reasons why Councilor Rhoads chose to cast a NO vote.  Here is the complete list of why Jody voted NO:

Ask the person who just lost his job.

Ask the person who can’t find work.

Ask the person who had his pay cut.

Ask the person who had his hours cut.

Ask the person who is on a fixed income.

Ask the person who cannot pay his bills.

Ask the person who lost his house to Sheriff Sale.

Ask the person who lost his health insurance.

Ask the person who is in financial trouble due to severe health issues.

Ask the person who is just plain struggling.

 ————————————————————————————————————–

Councilor Rhoads is a friend of the working class citizen.  He is not a politician.  He fights for the rights of all Pottstown residents.  That is the platform he campaigned on and that is what he has done while in office.  Fight when you’re right.

Pottstown Borough Budget Meeting

Today, November 30, 2010 at 6:00 pm, Pottstown Borough Council and borough staff discussed the proposed 2011 borough budget.

I must commend Jason, Janice, Councilor Weand, the Finance Committee and our borough staff for the effort they put into finding ways to cut costs and maintain services.  I do not think it is possible to ask Jason a question he can not answer.  Janice Lee has more than earned her salary by walking into the abyss aka borough finances and taking the bull by the horns!  So much has been accomplished to get our financial house in order.  As I said in an earlier post, accounting is boring to write about however, the changes implemented by Jason, Janice and Finance will pay huge dividends down the road.  We now have a clearer financial picture than ever before.  Frankly, things are not all that bleak now that Generally Accepted Accounting Principals have been returned to borough hall.

Council asked some tough questions of Jason, Janice and the department heads.  I was impressed with how well the questions were answered and the manner with which our borough staff handled themselves.

The bottom line is that council unanimously approved the 2011 budget with a 3.1% tax increase.  The increase equates to $25.66 per year on a home assessed at $85,000.  We have a $177,000 deficit that unfortunately makes this necessary.  The increase can go down if more spending cuts are found or unexpected revenue comes in before the end of the year.  However, the increase can not go any higher than 3.1%.  The projected property tax collection rate is 92% for 2010.

Getting to a zero tax increase would mean selling a park, laying off Parks and Recreation staff, cutting programs or messing with the paid driver’s health benefits in the Fire Department.  Our parks are a big plus for existing borough residents and attracting new residents.  We can barely maintain our parks system with the staff we have and cutting programs affects the quality of life for our residents.  Fire Department drivers can not afford to pay their health benefits at their current salary levels.  It is not their fault costs are skyrocketing.

The assessed value of all Pottstown real estate came in a million dollars higher than projected which also helped the process.  The rate of decline in assessed property value seems to be leveling off and council is hopeful that this trend may reverse itself as some development projects in the pipeline are completed.  Unfortunately, the assessed property value of Pottstown still declined $1.9 million dollars from last year.  This brings in less tax revenue. 

PCTV has agreed to reduce their management fee to $331,000.  The borough can ill afford to absorb their $147,000 revenue shortfall so going forward they need to break even.  PCTV has lost revenue because of the recession and now when FIOS comes to Pottstown, Verizon will not allow PCTV to be a for-profit community access channel.  PCTV could potentially lose 25% of their viewers as residents switch from Comcast to Verizon.  Council will be scrutinizing PCTV very closely in 2011.  PCTV is trying to get grant money, however, until such time as a grant is received, they will still continue to struggle.

It Could Be A Shoppers Market This Holiday Season

With the Christmas shopping season fast approaching, it appears that consumers may be in the driver’s seat this year.  Retailers are positioning themselves to offer deep discounts in an effort to lure recession-weary consumers into parting with their cash.

Economic jitters are making people hold on to their money and only spend on essentials.  Back-to-school sales were great for the first two weeks of September, but then sales trailed off after consumers felt they had spent enough.  This is a sign that people are holding on to their money and resisting the temptation to spend excessively.

We are looking at a 2 - 3 percent sales growth this season.  4 percent is considered healthy, if inflation is low.

Many people are sticking to necessities and practical gifts this year.  Wal-Mart is following that trend this season.

Look for big sales and deep discounts this holiday season!

Merry Recessmas.