The president of Reading Anthracite wants to take his business acumen to Harrisburg and apply it to the commonwealth's money woes.
"The motivation behind the campaign is that Pennsylvania is broken. Systemically broken. Financially broken," Brian Rich said at a meeting with The Republican-Herald editorial board. "The real problem with Pennsylvania is the defined pension system. That is the hole in the boat. Everyone focuses on property taxes as a significant issue, but the reason we are having such a hard time dealing with property taxes is that the drain on revenue is so dramatic as a result of the pension systems that we can't address the property taxes. We need to fix the hole in the boat."
Rich is seeking to oust incumbent state Sen. Dave Argall, R-29, in Tuesday's Pennsylvania primary. The senatorial district includes all of Schuylkill and parts of Carbon, Monroe, Lehigh, Northampton and Berks counties.
Rich believes the state's pension commitments will be the ruin of Pennsylvania and it is a familiar pattern.
"The basis for me knowing this is history. Bethlehem Steel, one of the greatest companies in American history, built the Empire State Building, Golden Gate Bridge, won World War II, was bankrupted in short order when businesses started relying on the promises of the defined pension system."
He said that if Argall retired now, he would be entitled to a pension of $110,000 a year with benefits. The pension has a $3.4 million annuity value alone without the Blue Cross/Blue Shield coverage.
However, the state can't declare bankruptcy. "It will just spread the pain to the taxpayer," Rich warned.
"The first thing that needs to happen, is the legislators have to vote themselves a 401(k)-style plan and lead by example. Once we do that, we can begin to ask new hires to take a 401(k)-style pension plan."
Rich believes fiscal reform is the first step to improving the state's business climate.
"Without corporate growth, there are no jobs, there is an explosion of welfare and entitlement," he said, complaining about the state's poor ranking in job growth (citing a common figure of 46th in the nation) and having the highest corporate income tax (it is actually second, behind Iowa according to the Tax Foundation.)
As an example of what the state is missing out on, Rich cited Caterpillar's February announcement of a $200 million plant to be built in Georgia. Businesses build job-creating facilities elsewhere "because we are not financially responsible."
The race between the Republicans has treated potential voters to attack ads and accusations. He faulted Argall for voting for a gas tax increase, 80 percent of Democratic former governor Ed Rendell's budgets, and opposing legislation to limit liability to agriculturalists for runoff from their farms. He raised the spectre of the historic 2005 General Assembly pay raise, with a 51 percent increase in pensions and 34 percent increase in pay.
Of Argall's attempt to unseat U.S. Rep. Tim Holden, D-17, in the 2010 election, Rich said: "That was a slap in the face to his personal pledge to fulfill Jim Rhoades' unfulfilled legacy."
Rich said Argall asked him for support in that race and he refused because he didn't think Argall could succeed and he didn't want Holden unseated.
He said Tim is a "great guy, an advocate of our area and coal."
Rich said Argall was going after Holden because Holden was weak in the polls. Rich said he told Argall he needed something "meaningful" to campaign on and he brought up the war in Iraq and the need for energy independence.
"The ads that he has taken are outlandish," Rich said.
Argall's campaign called for an investigation of Rich family company WMPI paying for ads countering Argall ads saying the company received government money.
"I don't think it was a political ad. The company had to defend itself. He attacked the company with false allegations," Rich said.
Argall said Ultra Clean Fuels, a WMPI project to make liquid fuel from coal, received $147 million in taxpayer money. Rich said the state Legislature awarded a $47 million tax credit, and Holden secured a U.S. Dept. of Energy $100 million loan guarantee. That was 10 percent of the project value and the private sector needed to come up with the rest of the investment. However, when Congress changed hands from Democrats to GOP they re-evaluated it and the funding was evaporated, Rich said.
He denied taking $5 million in stimulus money for a wind farm project in northern Schuylkill County. He said he applied for it, but when he learned about many requirements, he changed his mind.
"To not apply for different opportunities that the government makes available for you is foolish because my competition is applying. People are applying for these things," he said. "The strings were too lengthy in that respect."
He believes property taxes cannot be reformed until the pension issue is resolved, after which he would like to see people only pay property taxes while they have children in the school system. He would like to make up the difference with an increase in the flat sales tax that excludes food and clothing. He also supports term limits, mentioning two terms.
"When you lead 620 employees and you build the kind of business that we have built, I think that speaks for itself," Rich said summarizing his qualifications as a candidate.