House Democratic leaders say they are voluntarily giving up this year's 2.8 percent pay hike in light of the faltering economy and the state's dire financial situation.

And they are encouraging all rank and file in the 203-member House to pay back their own $2,151.35 raises — a move that would save taxpayers about $450,000 at a time when Pennsylvania faces a potential $2 billion deficit.

"Our members are keenly aware that we're in a crisis situation," Johnna Pro, spokeswoman for Appropriations Chairman Dwight Evans, said today. "The numbers just aren't good, and don't appear to be getting any better."

Democratic state Rep. Mike Sturla, recently elected to a leadership role in the caucus, did not return calls for comment. But a spokesman for House Speaker nominee Rep. Keith McCall, a Carbon County Democrat, said all eight members of leadership are on board.

"The speaker and majority leader spoke to all members of the leadership team," said the spokesman, Bob Caton. "We are confident that (Sturla) is standing with the rest of leadership."

Republican House members from Lancaster County said they are willing to consider paying back the raise this year as long as Democrats agree to also consider scrapping per diems, car leases and secretive legislative grant accounts, known as "walking around money," totaling several hundreds of millions of dollars.

They also said the move is a political ploy by a caucus tarnished by the so-called Bonusgate scandal that led to indictments of a Democratic lawmaker and several staffers. And they are especially miffed because leaders make far more money than rank and file, and in this case the Democrats returning the raises voted for the notorious and now-repealed pay raise of 2005.

"This is all for show, but so be it," said Rep. Katie True, a Republican from East Hempfield Township. "I'll give the COLA back as long as they're going to pull all that other money out and put it toward the budget.

"You want to do something, Democratic leaders? Give all that WAM money back. Put it on the table. The governor has to do so, too. They will fight and kick and scream before they have to do that, though."

As of Monday, when the raise — or cost-of-living adjustment, as it is called in the Legislature — took effect, rank-and-file members such as True are paid $78,314.66. Their previous salaries were $76,163.31.

Members of leadership are paid far more. Sturla, recently elected by his caucus to serve as policy chairman, makes an additional $10,985.71 in that position, bringing his total salary to $89,300.37.

It is unclear whether Sturla will return just the cost-of-living adjustment of $2,151.35 on his base salary or this year's $301.78 raise for the policy chairman position as well.
Early this afternoon, Senate Republican leaders said they, too, would return the pay raises. "As we have said consistently, everything is on the table in terms of spending cuts as we address the state budget deficit," said Senate President Pro Tempore Joe Scarnati in a prepared statement. "Government must live within its means, and this announcement is part of our commitment to do exactly that."

Along with Scarnati, Majority Leader Dominic Pileggi, Majority Whip Jane Orie, Appropriations Committee Chairman Jake Corman, Caucus Chairman Mike Waugh, and Caucus Secretary Bob Robbins said they would not accept the cost-of-living adjustment and instead return the money to the Treasury.
The House Democrats, in a prepared statement, said they are giving up the raises "in light of a worsening financial picture for Pennsylvania." Gov. Ed Rendell was holding an afternoon news conference at which he was expected to propose $100 million more in spending cuts from next year's budget.

Chuck Ardo, Rendell's spokesman, could not confirm the amount this morning but said Rendell will indeed call for further cuts from agencies in the executive branch.

"The governor has consistently said that he would do whatever it takes to keep the budget in balance," Ardo said. "He has previously announced cuts totaling approximately $350 million and will announce further cuts as the need arises."

November was the seventh straight month that state revenue collections fell short of expectations. The Revenue Department reported this week that November collections totaled $1.6 billion — more than 5 percent less than projections.

That leaves the state nearly 7 percent, or $658 million, behind for the five-month-old fiscal year. Collections of sales taxes are 3 percent behind, personal income taxes are 2 percent behind and corporation taxes are more than 15 percent behind.

Some project the budget shortfall could be about $2 billion by the end of the fiscal year, on June 30, as the economy slides.

"With so many working families facing difficult decisions this winter, we will lead by example and make deep cuts to our operation and encourage all members to say 'no' to this COLA," McCall said in a statement.

Members who forego the raise will actually have to write checks every month to the Treasury Department. "You can't refuse to accept the cost-of-living adjustment," said House Chief Clerk Roger Nick. "That was determined both by legal counsel and confirmed by the Supreme Court.

"We've told members who don't want the COLA they can either contribute it to charity — it's their money; they can do whatever they want with it — or we've had some members return it to Treasury," Nick said.

Pro said House Democratic leaders will be returning the money to the state. "They're going to actually write checks back to the Treasury," she said.

Rep. John Bear, a Lititz Republican, said he's heard some constituents voice displeasure with the automatic raises, put in place in 1995 so lawmakers would not have to deal with the controversy of voting for them every few years.

He said he would be willing to give up the raise if the entire Legislature is, too.

"Everybody's taking a hit in this environment," Bear said. "I don't think it's unreasonable for the Legislature as a whole to take a hit with the COLAs as well. I think everyone's hurting right now. I'd be open to it. If we do it, everybody should do it as a whole."

Rep. Dave Hickernell, a Republican from the Elizabethtown area, said he too is willing to consider giving up the raise as long as other spending reforms are considered as well. 

"Certainly this is real money but it doesn't get to the $1 billion to $2 billion deficit we're looking at," he said. "I think we ought to put everything — legislative grants, per diems, state-leased cars — on the table. We're talking hundreds of millions of dollars.

"I'd also like to ask Dwight Evans and Democratic leaders who are making tens of thousand of dollars more than rank and file, are they willing to forego their leadership salaries?" said Hickernell.

Democratic leaders have given no indication they plan to do so.


Staff writer Tom Murse can be reached at tmurse@LNPnews.com or 481-6021.