Susquehanna Valley Center for Public Policy Urges State to Reject New Taxes, Bureaucracies

HARRISBURG - (November 4, 2003) As the state debates the future of the state’s telecommunications network, lawmakers should resist any expansion of state government – either through new phone taxes or by a new state bureaucracy, said Dr. Charles E. Greenawalt II, the Senior Fellow of The Susquehanna Valley Center for Public Policy.
Lawmakers are currently debating several bills that would extend and change the state’s landmark Chapter 30 legislation, designed to spur deployment of a broadband network across Pennsylvania by 2015. The legislation was enacted 10 years ago, and it sunsets at the end of this year.
Greenawalt said the state’s policy on expanding broadband access to every resident and business should be driven by three core principles.
“First, no new taxes. Second, no new state agencies. Third, let the consumers decide when and where broadband is deployed,” said Greenawalt. “There is plenty of government in Harrisburg already and our residents pay plenty of taxes already. A new phone tax will not help the consumer. It will not help any business and I doubt that any entrepreneur will decide to come to Pennsylvania because we just made our government bigger.”
Greenawalt cited a study of the broadband access published by the Legislative Budget & Finance Committee that concluded that Chapter 30 has “helped facilitate the transition to a competitive market.” Further, the committee’s study that found those companies operating under Chapter 30 are either on or ahead of their network modernization plan schedules.
“There is competition out there. You have the phone companies, the cable companies and customers can now turn to a host of wireless providers,” Greenawalt said. “Would the state benefit from more private sector competition – absolutely. Is there more work to be done to make sure our businesses and residents that want it have high-speed access – yes,” said Greenawalt.
“But, as a matter of public policy, lawmakers need to remember that the private sector drives competition – not the state itself,” he added.
The Susquehanna Valley Center for Public Policy is an independent, non- partisan, non-profit public policy research organization that was established to help Pennsylvanians build a brighter future.
Greenawalt has taught at the university level for the past 15 years, currently teaching courses in public administration, state and local government, American government, and public policy at Millersville University in Millersville, PA.
He also is the Assistant Director of Millersville University's Center for Politics and Public Affairs. Previously, he was the Policy Director for the Pennsylvania Senate for seven years and earlier served as the Director of Community Development for Greene County, Virginia.
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