Panto to NorCo Council - Stay Out of our Business

The Commuter

Last week, Northampton County Council unanimously adopted a resolution condemning Easton's proposed commuter tax, which is scheduled for a vote on July 25. It's a non-binding resolution, and appears to have succeeded only in annoying Easton Mayor Sal Panto, Jr.

Panto has objected to "County Council's injecting their nose in city affairs." But since the County's Easton workforce is at least 700, this is very much a County issue, too.

Most of these people are modestly paid. Some are on food stamps. County Council and the Exec have a duty to look out for them. If not them, who else? Based on Panto's remarks, it would not be him.

Nonresidents already pay Easton a 1% earned income tax, although that money is shared with their hometown. Easton wants to hike that tax to 1.75%, and keep the entire increase to pay into its underfunded pension plans. The commuter tax, if enacted, will pay for less than half of what Easton needs to pay for its pensions.

According to Panto, the real culprit is Act 111, a state law that provides binding arbitration for police and firefighters, who are then prohibited from going on strike.

The issue with the public unions that most individuals here fail to see is that cities must negotiate within the framework of Act111 adopted by --- you guessed it, the state. Join us in getting this 50 year old bill amended to include just a few things like "ability to pay." Chambers of Commerce have joined our effort in pension and Act 111 reform. I support our city employees and I support their need for retirement planning, just not at 75% of compensation while paying into a plan that is based on a lot less. Where does the 75% come from ------ state Third CLass City Law and Arbitration awards by a neutral that doesn't take into account the "ability to pay."

Without question, Act 111 is unfairly slanted in favor of public sector unions. The Coalition for Sustainable Communities claims that binding arbitration is "strangling" Pennsylvania communities, and is the reason that 41% of Pennsylvanians live in financially distressed municipalities. "Prosper or Perish," a Study commissioned by the City of Lancaster, reaches the same conclusion.

Here's some of the changes proposed:

* Ensure that standards for awards include a justification of the award based on the evidence presented and a calculation of new costs – a municipality’s ability to pay;
* Prohibit post-retirement health care and pension benefits not required by statute from being the subject of collective bargaining;
* Penalize either party for failing to engage in good faith bargaining;
* Start the collective bargaining process earlier in the year and require arbitration to be requested earlier;
* Expand the list of arbitrators to 7 instead of 3;
* Require the cost of arbitration be shared equally between both parties;
* Require arbitration sessions be open to the public; and
* Broaden avenue for appeal process and for municipal relief when the Auditor General identifies an illegal pension benefit.

Senator Jane Earll (R-Erie) is currently seeking co-sponsors for a bill to reform Act 111. Police and fire unions have already called it an "attack."

if I were King - or the Governor of Wisconsin - I'd just refuse to collectively bargain with the public sector, who needs no union. But absent this drastic and possibly incorrect approach, these reforms seems entirely reasonable.

We fought a civil war to abolish slavery, even if it is at the hands of public sector unions who are shackling the rest of us.

We also fought a revolutionary war to end taxation without representation, and that is what Easton's commuter tax means.

Until Act 111 is reformed, what can Easton do?

First, it can pressure state representatives, who are notorious for failing to take positions on anything until they are backed against a wall. It's election time, which might be a good time to get some movement.

Second, Easton could at least ask Northampton County and Lafayette College, the City's largest employers, for some kind of help. But that won't happen if you tell them to stay out of city affairs.