Pennsylvania American Water announced two of twenty recipients, each receiving $2500 in special grants. Amazingly enough, Josephine Posti presented checks to Girl Scouts of Western Pennsylvania and Mt. Lebanon Foundation of Education (MLFE). Does MLFE sound familiar? It should. MLFE helped to fund Josephine's pet project, a feasibility study done by Pursuant Ketchum. Did our water bills help to fund this? Here is the article from the Almanac.
Josephine Posti's Girl Scout Troop led the Pledge of Allegiance at a recent school board meeting.
Nice picture of Matt Smith with Josephine. Doesn't he realize there is a conflict of interest? I know...
12 comments:
Really, does anyone know how the water company comes up with this money?
According to the article, I believe it is through a tax credit. http://www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/opportunity-scholarship-tax-credit-program
Elaine
From Pennsylvania American Water website http://www.amwater.com/paaw/customer-service/rates-information.html
"Rates Information
Pennsylvania's American Water’s rates are based on the true cost of providing water service to our customers."
So, you mean instead of returning the "tax credit" to PAWC's customers it gave gifts to personnel having conflicts of interest?
Why is a utility not retuning the excess dollars to customers? Aren't they under a different regulatory mandate than private enterprises?
PAWC is a private company. They can do whatever they want with their profits.
Yes it is a private company, but it is not like the consumer can go out and buy their tap water from another company, can they? in effect it is a monopoly.
While I appreciate PAW's generosity by selecting two fine organizations, I do question Ms. Posti's allegiance to both groups. Furthermore, is this money from the state? Why is Senator Smith involved?
I found this article on the PSBA website.
http://www.psba.org/issues-advocacy/issues-research/eitc/PBPC-EITC-Analysis-6-25-2012-Final.pdf
Their conclusion:
"The EITC allows corporations to support favored schools and educational activities but provides little accountability for how funds are used. Because the EITC is both a tax credit and a contribution, many, if not most, companies receive tax reductions worth at least $9 for every $10 dollars they pay out to eligible organizations. This forces individual and family taxpayers to fill in the gap in state revenue and drains state resources away from public schools at a time when many are laying off teachers and cutting programs to make ends meet amid state cuts."
Elaine
PAWC is a division of American Water, which is a publicly traded for-profit corporation (NYSE symbol AWK) whose last stock price was $37.05 per share. As such it is not a "private" company. An example of a private for-profit company is Cargill, a food, drink and tobacco company based in Minnesota. Private companies do not offer stock to the general public and therefore do not answer to shareholders concerning their profits. Shareholders of American Water may certainly call in question what PAWC is doing with its profits, although its management does not have to listen to them.
Although sending $2,500 to MLFE might raise some eyebrows, given Mrs. Posti's position with both PAWC and the MLSB, I'm more interested in American Water's position on Marcellus Shale drilling for natural gas. Marcellus has been an economic boom for this area.
Silly me, but I see eight other school board directors who can get their employers to kick in $2,500 each to MLFE and Mt.Lebanon Community Endowment (MLCE). In fact we can all ask our employers to take advantage of this tax loophole and avoid a second bond.
I reread the findings of the PK study, but don't see anything like this recommended. http://www.mtlsd.org/District/Stuff/Mt_%20Lebanon_%20Exec_Summary.pdf
Mine was free.
Elaine
Does affluent Mt. Lebanon's Foundation for Education really need PAWC money? Sure, it's wonderful that Ms. Posti has delivered a grant here but...Wouldn't this grant money serve a loftier purpose supporting Meals on Wheels, the Salvation Army, Secret Santa or LiHeap? Or perhaps a struggling school district, that has laid off teachers and can't afford books and supplies. Shouldn't it go to an organization that is truly needy?
Of the $5,000 donated to the two organizations, $4,500 is rebated to PAWC through a PA state tax credit that comes from taxpayers because the gift goes to qualifying-tax-free organizations. That leaves a $500 contribution out of your water bill.
Of course, the whole $5,000 is on top of the 25%- assessment tax increase in Mount Lebanon.
If you don't understand this post, you will when your assessment increase comes.
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