Pa. House Members Use Per Diem To Buy Houses

Pennsylvania state representatives  who don't live within 50 miles of Harrisburg are eligible for a $163 per diem when in the state capital on legislative business. The money is supposed to be used for food and board -- $111 for housing and $52 for meals.

It turns out some of members of our legislature are using it to solve the housing crisis.

For instance Jim Wansacz (D-114), rather than stay at hotels, bought a three-story row home at314 S. Second St. on Oct. 2, 2003, for $72,000, and is using the per diem to pay off his 30-year mortgage. Pretty clever.

He acknowledges he also rents to other legislators.

Now you might wonder why our representatives need the stipend since they are already getting a base pay of $78,000 along with a lot of really great benefits, but that would just show your insensitivity and intolerance to the important work they do.

For a list of other houses being bought by House members see this story from the Scranton Times-Tribune.

For solution to the problem, see this.

Kudos to Nathan Benefield of Commwealth Foundation for the tip.


 

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  • 2/23/2010 2:42 PM PhilMB wrote:

    I frequently had Per Diem or Reasonable and Actual in private industry, and the PD was always below the R&A costs for room and board. As noted, you can get PD without receipts, whereas R&A requires them, along with the attendant logging and reporting. Looks to me that our vaunted 'leaders' are skimming the trough! That said, I have no problem with their purchase of investment properties, but I believe the IRS regs stipulate you can only claim it as a Rental Property if you yourself live there for less than 30 Days per year.

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