|
| |||||||||||||||||||
|
INSIDER INFO -- JULY 2009
Sentencing light
State Budget Impasse
The Rock: Unified GOP
Hard Place: Gov. Rendell
All in the Family
2010 Political Update
|
We
welcome and appreciate any feedback
you may OPT OUT
The views contained in The Insider are those exclusively of its editor, Al Neri, unless an article is specifically authored by another writer. | ||||||||||||||||||
| Insider's Stories | |||||||||||||||||||
|
Sentencing light
A federal judge, inundated with positive letters for former Sen. Fumo, doles out a punishment prosecutors found too lenient for his crimes
Federals prosecutors won the jury and therefore the conviction of Vince Fumo but Fumo and Friends apparently won the judge.
After a five-month-long trial that ended in the jury returning a guilty verdict on 137 corruption counts, a federal judge on Tuesday sentenced Fumo to 55 months in federal prison and restitution and fines of $2.4 million before a courtroom packed with more than 250 Fumo friends and supporters.
The lighter-than-expected sentence was largely the result of one final political tactic by Fumo and his lawyers. They orchestrated a positive letter-writing campaign from 250 influential supporters that apparently had success with Judge Ronald L. Buckwalter. Among the letters were those from Gov. Rendell, Comcast executive David L. Cohen and U.S. Rep. Bob Brady, D-Phila.
The judge acknowledged he was influenced by the outpouring for the former South Philadelphia state senator and statewide political powerhouse. By contrast, he said, he only got six letters from the public recommending a stiffer sentence.
But Assistant U.S. Attorney John Pease characterized those testimonials as support from “cronies and enablers” of Fumo, who overlooked his corruption out of fear of reprisal or in order to benefit from his power or influence in the Legislature and elsewhere. He said Fumo’s “good deeds” were all financed by taxpayers in one way or another rather than out of any of his substantial personal assets.
Pease and fellow prosecutor, Robert Zauzmer argued during Fumo’s trial that he abused $4 million from the state Senate, the non-profit Citizens Alliance and the Independent Seaport Museum on whose board he sat. Fumo used state staff and resources for personal and political purposes, even hiring a private eye to spy on his ex-wife and ex-girlfriend and having a staffer clean his house. He took tools and vehicles from Citizen’s Alliance for use in his many homes, including a farm in Halifax outside Harrisburg.
Pease revealed that federal authorities could not charge Fumo with extortion for his attempts to get $50 million for Citizen’s Alliance from the communications giant Verizon because Fumo and his staff successfully erased all incriminating e-mails that could have led to that harsher conviction. Fumo’s attempts at cover-up, though, led to a number of obstruction of justice charges.
Pease described Fumo’s crimes were needless because he is wealthy in his own right and “had not need to steal. But he stole because he could. Because he was drunk with power.” Even defense lawyers concede that Fumo has a net worth of $9 million. Fumo’s wealth derives from a family bank, a $1-million-a-year arrangement with a Philadelphia law firm and real estate investments.
As Pease argued with the judge for a stiffer sentence, he received gentle and sometimes forceful pushback from the Lancaster County jurist. Listening to Pease’s tone in an audio of the court proceedings, you can hear his frustration at losing his argument with the judge. He used the word “outrageous” about the actions of Fumo and his allies so many times that the judge rebuked him for hyperbole.
“How do you know what the public thinks?” Judge B said, to an assertion by Pease that 11 million Pennsylvanians were “paying attention to what is happening here.” The judge observed that many in his native Lancaster County where he once served as district attorney and a county judge “never heard of Mr. Fumo. Please, it affects my otherwise mild-mannered demeanor when you indulge in hyperbole.”
Unlike his testimony during his trial in which he came off as defiant, a sorrowful Fumo took the stand Tuesday and made a soft-spoken appeal for mercy prior to his sentencing.
“I did not view my job as just ordinary. I was a political entrepreneur. I got power so I could use that power in a good way,” Fumo told Judge Buckwalter just prior to his sentencing. “I was addicted to my work. I got things done and I’m proud of that. I couldn’t have gotten the things I got if I was meek and a bureaucrat.”
He said he never intended to steal from either the taxpayers or the non-profit Citizens Alliance that he formed and funded with state grants and a $17 million settlement from PECO Electric. “It was the last thing on my mind,” he explained “I made some errors in judgments – such as the tools (taken) from Citizens Alliance.”
After an afternoon of point and counter-point on Fumo and his actions, Judge Buckwalter finally rendered his decision in a long half-hour speech that came after 5 p.m. and said he would depart from sentencing guidelines in Fumo’s favor.
“I’m a human being and I’m moved very much by the appearance of families and conditions they find themselves in, but (judges) have to set aside their emotions,” the judge said.
He praised and then chastised the Philadelphia Inquirer saying its initial investigation that attracted the interest of federal prosecutors was in the best interest of public watchdogs but much of its later reporting was “mean spirited.”
(The Inquirer struck back with a scathing editorial it posted online at Philly.com within minutes of Buckwalter’s decision deriding the sentence as far too light and calling those who wrote letters in Fumo’s behalf “his apologists. . . The losers at this case’s conclusion remain the taxpayers.”)
He chastised voters for returning Fumo to office term and after term for 30 years despite published reports and assessments that he often worked outside the lines of the law. The judge said the voters in Fumo’s South Philadelphia and Center City-based district seemed to adhere to the adage: “He may be a crook. But he’s our crook.”
In sentencing Fumo, he said, of the felonies of which he was convicted: “It’s not murder. It’s not robbery. It’s not the selling of a political office.”
Response to the sentence was quick and often broke along Fumo fault lines. Former U.S. Attorney Pat Meehan, who oversaw the five-year federal investigation until he resigned last year before the trial’s start, said in a prepared statement posted on his political website:
“While I am deeply disappointed in the length of former Senator Vince Fumo’s sentence, we cannot forget that justice was realized and Vince Fumo was soundly convicted for a pattern of criminal behavior. He has been removed from the Legislature and is now going to jail. This is a remarkable event that no one thought would happen.”
Meehan said it was an injustice that Fumo’s sentence was far less than other public officials who committed lesser crimes. “We are sending the wrong message to those in power that if you abuse the public trust, don’t worry because the punishment will be weak,” Meehan said.
Philadelphia Mayor Michael Nutter, a Democrat, pointed to the discrepancy of the sentence to other public officials found guilty of corruption but told the Philadelphia Inquirer: Nevertheless, a simple, yet important, message was reinforced today - those who abuse the trust of the public, especially elected officials, will be caught and punished."
“He was a public person who did some wrong things, but he also did some very positive things for his community," state Sen. Anthony Williams, D-Phila., told the newspaper.
We’ve all heard the expression between a rock and a hard place. Going to the Internet we find its meaning is “difficulty, faced with a choice between two unsatisfactory options.”
Its origin appears to trace back to 1917 and a dispute between mineworkers and copper mining companies in Bisbee, Arizona. The workers, some of whom had organized into labor groups, approached the company management with a set of demands for better pay and working conditions. The demands were refused and subsequently many workers at the Bisbee mine were forcibly departed to New Mexico.
The phrase seems to stem from the two unsatisfactory choices the mineworkers confronted between harsh and underpaid work at the rock-face of the mines and unemployment and poverty on the other hand.
That leads us to a profile of the two “sides” in the current budget battle.
The Rock: Unified GOP The Senate Republicans remain a steadfast bloc against any proposal by Gov. Rendell to raise taxes or fees
With a hefty majority in the Senate – 30 Republicans to 20 Democrats -- the Republicans are in the catbird’s seat in the current state budget impasse.
Put quite simply, a tax increase can not be passed as long as they stand their ground. And they have been sending that message loud and clear for months – even if Gov. Rendell and some of his Democratic allies don’t want to hear it.
But to view how he commands his caucus’s respect and loyalty now you’d have thought the vote was unanimous.
Scarnati, a former small businessman, has built his caucus around this basic policy: We may differ on social, environmental and some other issues depending on where we live in the state but we all share the core principle of fiscal conservatism when it comes to state taxes and spending.
In the past, Republican leaders usually talked tough about holding the line on taxes but ultimately negotiated with the administration and its leaders and then quietly allowed some safe Republican members to put up the necessary votes for revenue increases.
Not this time around. Not this leadership, Scarnati has vowed.
“We are a new leadership since 2007 and we intend to show we are different,” Scarnati said. “We are glad to talk with the governor and the other caucuses any time but we will not compromise on core principles.”
Scarnati has also impressed by being an advocate of open records and transparency. He freely gave reporters a complete list of all salaries on the Senate Republican payroll and has maintained good media relations. And he has been quick to jump on ethical reform.
It’s mostly symbolic but he mandated that all senators and all staff pay one percent of the cost of their health insurance benefits rather than get it entirely free as do other state employees.
Complicating the conflict with the governor’s position – sometimes comically – is the fact that Scarnati if also Gov. Rendell’s lieutenant governor and would succeed him if he resigned, died or otherwise could not serve out his term.
That occurred after Lt. Gov. Catherine Baker Knoll died late last year. Under the state constitution, the president pro tempore of the Senate moves up to the second spot in the executive branch even though that person remains a legislator as well.
Scarnati’s predecessor, Bob Jubelirer, also served in both posts for a 17-month period between 2001 and 2003 but both he and Mark Schweiker, who became governor, were Republicans. Schweiker moved up when incumbent Tom Ridge resigned to take over the nation’s homeland security after the Sept. 11, 2001 attacks.
No such cooperation between Scarnati and Rendell. Scarnati is not consulted on any administration plans or policies. And he’s even joked about how he never gets any invitations to cabinet meetings or administration Christmas parties.
Hard Place: Gov. Rendell Used to his success as mayor, the Phila. Democrat can not believe how dismally he is failing in his efforts to raise state revenues and how he is now demonized by state workers
If someone produces a video reel of bloopers by Gov. Ed Rendell at the end of his tenure in 18 months, this Pittsburgh news clip will surely be in it.
On July 10, a week and a half past the state budget deadline, Rendell stood before WTAE-TV cameras and declared with a straight and serious face: “They (state employees) should put a statue of me up on their mantle places.”
The state workers interviewed in the same news clipping hardly shared that sentiment. They feel they are pawns in the political gamesmanship between Rendell, a Democrat, and Republicans in the state Legislature over a budget impasse that shows few signs of ending soon.
When Rendell appeared on Pennsylvania Cable network earlier this month he was bombarded with calls from state workers lambasting him for their situation.
So how did Rendell, the former popular mayor of Philadelphia who campaigned as a champion of “working Pennsylvanians,” fall into such a morass where his job approval rating is under 50 percent and likely plummeting?
“When will Ed Rendell ever learn that he is never going to get the love and adulation he enjoyed when he was mayor,” one long-time political observer said after viewing the governor’s laughable comment on an Internet posting. “He needs it (adoration) like the rest of us need oxygen. He can’t seem to accept it will never happen for him in Harrisburg.”
In our opening analogy, we referred to a rock and a hard place. If the unified anti-tax increase Republican legislators are the rock, then Ed Rendell is the hard place.
With state revenues plunging in the recession even below spring projections, in mid-June the governor proposed a three-year increase in the state income tax by one-half of one percentage point from the current flat rate on earnings of 3.07 percent to 3.57 percent.
Saying essential state services must be preserved, Rendell has gone around the state saying the increase will cost the average Pennsylvania worker earning $50,000 a year just under $5 a week. He since has started using a $4.50 a week figure.
When Republicans in the state Senate passed a no-tax increase budget in mid-May and sent it to the House, Rendell’s team spent every minute of every day since vilifying it and claiming it will cause catastrophe from creating the need for soaring property tax increases, to closing state parks and furloughing 800 state troopers.
Philadelphia Daily News columnist John Baer coined a term for ringmaster Rendell and his spin machine circus – “EdWorld.” Baer also noted that the chain-sawing of trooper jobs seems to have come off the table since the head of the state police union testified at a Senate hearing dismissing it suggesting, according to Baer, “that its course was on a highway of hyperbole running straight through EdWorld.”
And Baer points out that Rendell refers to his personal income tax proposal as a “modest” hike meaning about $234 a year for the average Pennsylvanian. But when he is doling out property-tax rebates to homeowners from slots parlor profits those are termed “significant,” even though the average is $189 a year.
So the Ed giveth and the Ed taketh away.
Pete DeCoursey of Capitolwire.com said in a televised appearance that Rendell has the much tougher row to hoe in pushing a tax increase in a recession than Republicans do in their no-tax-increase-no-matter-the-cost stance, given the economy.
But despite his passion for its passage, DeCoursey said you can see Rendell’s growing frustration at “losing a policy argument – something that hasn’t happened since he was mayor of Philadelphia”
“He’s like that skit in ‘Saturday Night Live’ where the Mike Dukakis intellectual character exclaims to himself, ‘I can’t believe I’m losing to this guy.’
So far, Rendell’s only public allies in the tax increase battle are a handful of Senate Democrats and the leadership of the Democratic-controlled state House. But even House leaders privately concede that because of “Blue Dog” conservatives in their ranks, the votes are not there for the increase.
Hoping to get state operations moving again, state Rep. Dwight Evans, D-Philadelphia, has proposed a budget that is in balance but leaves out $1.2 billion for higher education which would have to be funded at a later time – presumably with a tax increase.
House Republicans call that a gimmick and have a proposed spending plan that relies on the state’s Rainy Day fund, more federal stimulus dollars and new revenue from a tax amnesty program to achieve balance.
They insist they will try to insert their version in place of Evans’s when debate begins late this week as this edition went into publication.
All in the Family Senate Minority Leader Bob Mellow gets raked across the editorial coals after revelation that he rented district office from his wife, then himself
Anti-corruption crusading fever continues to run strong among Pennsylvania prosecutors and journalists, the latest fuel coming from a Philadelphia Inquirer story this past week that the Senate Democrats’ top leader may have crossed an ethical boundary.
The newspaper reported that state taxpayers have forked out more than $200,000 over a seven-year period for Mellow to rent an office “in a building partly owned by his wife -- and later himself -- in a business she said was largely a mystery to her."
According to the newspaper and other published accounts, the deal appears to violate
A 1978 ethics law that said it was a conflict for a public official to use his office “for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his family is associated.”
Mellow still rents the office on Main Street in Peckville, Lackawanna County, his home town, but the building is now owned by another entity – and the state is being charged a higher rent.
Mellow didn’t reveal the rental arrangement until after his 2006 divorce from his wife, when he took over her 50 percent stake in the building.
He told The Inquirer that a Senate resolution he introduced supersedes the 1978 state law. The resolution, introduced multiple times in each two-year session of the Senate, states that if a senator rents an office from himself of another family member, the Senate clerk must obtain an appraisal to determine if the monthly rental is fair market value to the state.
But the Senate clerk said no such appraisal was ever made of the Peckville property because Mellow never reported to his office that the property fell under the Senate resolution which appears to be in conflict with state law.
Violations of the ethics act of 1978 are subject to both civil and criminal penalties, including a potential felony charge which could carry a sentence of five years imprisonment or a $10,000 fine.
According to the Inquirer story, reported by writer John Sullivan and Mario Cattabiani of its state capital bureau, the ownership history of the building is somewhat murky.
For 20 years prior to 2001, it was owned by a husband and wife named Giordano. The husband worked full-time in the district office for Mellow, who has served 40 years in the Senate, 20 of them as Democratic leader. Mellow is now 66 and intends to run for re-election in 2010.
In 2001, the property was transferred for $1 to a firm named Brad, Inc. It was set up by Pat Mellody, a lawyer who has been deceased since 2002. Mellow said he was unsure how his ex-wife obtained 50 percent ownership in the building but he assumes that Mellody played a role, the newspaper reported in a front-page story on top of the Front Page on July 13.
In an interview with the newspaper, Diane Mellow said she was unaware of how she got ownership but that she just signed paperwork that Mellow put in front of her and that she got $350 monthly from rent receipts from him, a fraction of the building’s actual income since it also housed other businesses, including Mellow’s campaign office and an accounting firm in which he is a partner.
The building was sold in September 2008 for $350,000 to Ibis Realty of Scranton and Mellow’s office rent nearly doubled from $2,400 a month to $4,600 a month under a new six-year lease that will remain in effect as long as Mellow is in office.
The day after its report, the Inquirer’s top editorial, “Rules made to be broken,” derided Mellow’s flaunting of the 1978 ethics law “is not a problem if you lack a conscience and possess abundant gall” as it said Mellow does. The newspaper urged the state Ethics Commission to look into the matter.
On Thursday, Senate President Pro Tempore Joe Scarnati, R-Jefferson, reacted to the Mellow report by promising to introduce a measure that would specifically prohibit rental leases in which a senator or member of his family has an interest.
That same day the Pittsburgh Tribune-Review, commenting on the Inquirer report, said the “Mellow matter is the perfect case for the state Ethics Commission to consider.”
It concluded: “Bob Mellow’s sweetheart deal smells. But we’re not surprised. After all, we’re talking about state government.”
Meanwhile state Capitol gadfly and activist Gene Stilp has written letters to both the state attorney general and the ethics commission asking them to review the Mellow matter, the Inquirer reported Thursday.
2010 Political Update Republican Jim Gerlach becomes the first to formally announce he’s running for governor
U.S. Rep. Jim Gerlach ended the ambiguity this past week.
He is foregoing re-election to his congressional seat to make an underdog run for the Republican nomination for governor.
He became the first of six to seven expected candidates for the state’s top job to make a formal announcement. The others, all expected to enter, have either just declared their interest or have established gubernatorial exploratory committees.
In a conference call with reporters, Gerlach acknowledged that state Attorney General Tom Corbett is the acknowledged GOP front-runner in the race to succeed Democrat Ed Rendell who cannot seek reelection.
"I fully expect to be the nominee," the Chester County Republican told the Pennsylvania political press.
In 2006, when Democrats regained control of Congress by sweeping several Republican seats, including in Pennsylvania, Gerlach was the lone GOP survivor. Interestingly, he started out the election cycle being termed the most vulnerable of five Pennsylvania Republicans, four of whom fell that year.
Republican leaders had hoped to avoid an intra-party primary by anointing Corbett early. Gerlach’s declaration makes that unlikely. Former U.S. Attorney Pat Meehan is also interested in the state’s top job and has formed an exploratory committee.
But many think Meehan might run for an open congressional seat in his native Delaware County. His political gleam may be diminished now that his signature achievement as a top federal prosecutor – the conviction of former state powerhouse Vince Fumo on 137 criminal counts – ended in a prison system of less than five years that many consider underwhelming.
Other items of political interest:
-- Auditor General Jack Wagner announced on KDKA-TV July 10 that he will run for governor, which was expected, although the TV appearance stopped short of a formal announcement. Wagner’s entry into the Democratic primary was expected.
-- “Me too,” said Montgomery County Commissioner Joe Hoeffel, a Democrat who is also a former congressman and state representative, a day earlier to the website, pa2010.com. “I believe there’s got to be southeastern Pennsylvania progressives in these state races in 2010,” Hoeffel said. He added, however, that he is “nowhere near making a (final) decision.” Hoeffel previously ran statewide for the U.S. Senate in 2004 but lost badly to incumbent Arlen Specter, then a Republican.
-- Allegheny County Executive Dan Onorato, who is considered the front-runner for the Democratic nomination, won the endorsement of two suburban Philadelphia state senators, Andy Dinniman of Chester County and Daylin Leach of Montgomery County. Onorato had more than $4 million in campaign cash on hand last month, which his campaign said is significantly more than any other gubernatorial candidate in either party. Wagner, by contrast, only has about $350,000. Onorato raised $200,000 in the weeks after the primary while Wagner only raised $10,000.
-- It was only publicly acknowledged for one week but state Sen. Jane Orie, R-Allegheny, was behind the scenes for several weeks exploring a potential run for GOP defector Arlen Specter’s U.S. Senate seat. She met with both state and national Republican leaders but said on July 13 announced that she will not run, citing the ongoing work to reach a stalled state budget. Orie is the Senate majority whip.
| |||||||||||||||||||