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Friday, June 18, 2010

Should the state sell off the governor's mansion?

That's an idea being floated in a bill filed by Republican Rep. Jim Christiana. From the Tribune-Review:

Selling the mansion won't solve Pennsylvania's $1.3 billion budget deficit, but it would be "a symbolic move" to show taxpayers state officials are willing to tighten their belts, said Republican Rep. Jim Christiana, who suggests reimbursing the governor for lodging.

The Trib tries to nail down what the mansion is worth, and comes up with a bunch of different estimates -- it's assessed at $1.7 million, its "implied market value" is $2.5 million, and one private appraiser puts the mansion's worth at $7.1 million. The Governor's office says a sale wouldn't be cost effective because the residence is used to host "public events, exhibits and celebrations" that would otherwise cost more.

We're believers in the importance of symbolic spending cuts by elected officials (we just made the case in Ben's Council contract story), but this maneuver strikes us as a one-time ploy that the state could come to regret. Thoughts?

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Posted by Doron Taussig @ 11:23 AM  Permalink | 3 comments
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  • 0 like this / 0 don't   •   Posted 12:02 PM, 06/18/2010
    Most governors retain their primary dwelling while they serve, because they cannot remain in office forever. Why not have them live in their primary residence as governor? It's a good idea. Government officials are not kings. PA needs to move away from the idea that being a politician means you get a free ride to the sweet life, and remember that they are first obligated to taxpayer who fund their land of perks.
    — CleanupPhilly
  • 0 like this / 0 don't   •   Posted 12:26 PM, 06/18/2010
    PA has provided a residence to its governors for over 150 years, and should continue to do so if for no other reason than security. I suspect that if Rep. Christiana was running for governor or a member of his political party currently held the job, he'd feel differently. It's empty political posturing, that's all.
    — Speakingtruth
  • 0 like this / 0 don't   •   Posted 2:29 PM, 06/18/2010
    Who would buy it? A Saudi prince? A telecommunications mogul? Here's a good article by sensible economist Linda Bilmes arguing a compelling case for rescuing the states and a practical plan to deal with the unfunded pensions (a widespread problem): "The design of this new round of assistance should be carefully considered. Firstly, it should be temporary, so that it addresses the concerns of the ”deficit hawks” concerned about further permanent increases in federal spending. Second, it should be targeted (like the ARRA funding) primarily at Medicaid (because of its significance in state budgets) and at education (because of its economic importance and the highly job-intensive nature of school spending). Third, eligibility for federal assistance should be conditioned on the states and municipalities putting in place plans to address their long-term structural pension deficits. These would start by quantifying the magnitude of their funding gap using realistic assumptions about future return on their pension fund investments. They would include a long-term plan (say over the next 10 years) to return these funds to health, meaning that they are at least 80% funded. By crystallizing the problem and obliging the states to put in place a plan to address it, a future financial train-wreck could be averted." http://www.newamerica.net/publications/policy/the_fiscal_crisis_in_state_government_and_what_should_be_done_about_it
    — MB6


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