PhiladelphiaDaily Record

Vol. II No. 112 (272) Keeping You Posted With The Politics Of Philadelphia August 1, 2011

TENTH Council District Democrat candidate Bill Rubin gets campaign tips

from former City Controller Jonathan Saidel at fundraiser at Riversharks.

(More Page 3)

Raising FundsWith Riversharks

2 | THE PHILADELPHIA DAILY RECORD 1 AUGUST, 2011

T h e P h i l a d e l p h i a P u b l i c R e c o r d C a l e n d a rAug. 2- Democrat Party Chairman Con-gressman Bob Brady, elected De-mocrat officials and UnionLeaders host Cocktail receptionfor Bill Rubin, District 10 Coun-cil candidate, at AFSCME DC 33Ballroom, 3001 Walnut St., 6thFloor. RSVP 215-671-Vote. Mini-mum suggested $500 per person. Aug. 5-

Swedish Museum hosts SummerCrayfish Party in FDR Park at1900 Pattison Ave. Tickets $50.Call (215) 389-1776 for details.Reservations end Jul. 29.Aug. 6-

Friends of Bill Rubin present Dis-trict Council 33 Members Nightwith Camden Riversharks (vs.Road Warriors at 5:35 p.m. atCamden’s Campbell Field) as DC33 members work 3rd and 1st

Base concession stands. Tickets$12. Proceeds to Bill Rubin. Forinfo contact Joan Gallagher at(267) 438-6998, Irene Snyder,(215) 582-8611 or Sylvia Bullock(215) 471-6469.Aug. 6-

Johnson House, 6306 German-town, will host 11th annual JazzIn The Garden summer benefit, 4to 7 p.m. feauring John Blake, Jr.,Jazz violinist, and the Alan SegalQuartet. Admissions from 30. Forinfo call 215-438-1768.Aug.11-

Friends of Ron Donatucci movedtheir annual Delaware RiverCruise to the Independnece Sea-port Museum, Columbus andWalnut Streets from 6:30 TO 9:30in the Terrace Ballroom. $145 perperson. call 215-271-1667 forinfo.

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1 AUGUST, 2011 THE PHILADELPHIA DAILY RECORD | 3

CANDIDATE BILL RUBIN and volunteers line up to take care of customers at Riversharks game.

VOLUNTEERING for 10th Democrat Council District fundraiser for candidate Bill Rubin were

Brian Eddis, Bill Rubin, Sr., candidate Bill Rubin, Mark Evans, Diane Caruso, and Fred Mari.

4 | THE PHILADELPHIA DAILY RECORD 1 AUGUST, 2011

Santorum Announces

Senior Policy AdvisorFormer Senator Rick Santorum

has picked Iowa native Jennifer

Vesey Rossman to serve as his

presidential campaign’s Senior

Policy Advisor for Healthcare Pol-

icy and Entitlement Reform.

Jennifer Vesey Rossman previ-

ously served as Legislative Assis-

tant for Health Policy and as Di-

rector of the Senate Finance Com-

mittee’s Subcommittee on Social

Security and Family Policy for

Senator Santorum from 2004 to

2007. Prior to joining Santorum’s

Senate staff, Rossman worked in

various capacities for hospitals,

medical groups, and healthcare

consulting companies. Since 2007,

Rossman has served as a Washing-

ton, DC-based consultant for na-

tional medical device and

pharmaceutical manufacturers. A

native of Muscatine, Iowa, Ross-

man is a graduate of the University

of Northern Iowa and the Univer-

sity of Iowa.

Green Party Files Sheriff CandidateGreen Party Candidate Cheri

Honkala has filed nomination pa-

pers with Philadelphia’s City Com-

mission.. The petitions already

filed contained 3,751 signatures of

registered voters who want Cheri

to appear on the ballot as the Green

Party candidate for Philadelphia

Sheriff. Additional signatures later

filed will increase the total to

4,300 signatures. Candidates who

want to appear on the ballot out-

side of the Republican or Demo-

cratic parties must collect at least

1,845 signatures to be nominated.

Jason Bosch is chief of staff for the

Cheri Honkala campaign.

Her son, actor/director Mark Web-

ber (Explicit Ills, Scott Pilgrim vs.

The World) endorses his mother’s

bid for Sheriff of Philadelphia.

Foundation Report Hits PLCBThe Commonwealth Foundation

strongly condemned the Pennsyl-

vania Liquor Control Board today

for systematic waste and abuse of

taxpayer money and assets follow-

ing a scathing Pa. Auditor General

audit report that found rampant

agency mismanagement of inven-

tory and finances.

Among the findings in the most re-

cently released 48-page 2009-2010

audit, now quietly buried within

the AG Web site without public

comment or recommendations, AG

investigators found:

The agency spent more than $66

million taxpayer dollars on the En-

terprise Resource Planning system

(ERP), a computerized inventory

management tool that caused wide-

spread shortages at PLCB distribu-

tion centers and cost

two-and-a-half times the original

plans. According to the report, “re-

tail store managers began hoarding

some merchandise items, leaving

other retail stores without that mer-

chandise. This exacerbated the ex-

isting inventory shortages at stores;

items were out of stock and un-

available to customers.”

Compounding the problem, PLCB

management then demanded pur-

chasers order excessive inventory

due to the shortages. The report

found, “In addition to acknowledg-

ing that it tried to buy itself out of

the out-of-stock and hoarding situ-

ations, management also indicated

that it could not change the volume

of inventory coming into the distri-

bution centers even though they

were overflowing with excess

product because vendors had al-

ready processed these orders.”

These decisions resulted in more

inventory than space, a situation

made worse by the fact that, de-

spite already having excess, the

PLCB couldn’t stop the ERP sys-

tem from ordering more. Due to

1 AUGUST, 2011 THE PHILADELPHIA DAILY RECORD | 5

the mismanaged inventories, the

PLCB then spent approximately

$500,000 for trailer rentals and ad-

ditional security guards. Accord-

ing to investigators, “The trailers

containing the merchandise were

located off site and were in use for

at least six weeks when our audi-

tors uncovered the PLCB’S use of

these non-temperature controlled

trailers.”

Scranton: Inventory more than

doubled to 606,383 cases in 2010,

causing additional warehouse

space to be acquired.

Pittsburgh: Inventory jumped from

300,000 cases to 575,000 cases in

2010, exceeding storage capacity.

PLCB management decided to put

72,277 cases of excess merchan-

dise in 57 non-temperature con-

trolled trailers.

Philadelphia: Inventory reached

763,470 cases. 20,240 cases were

moved to non-temperature con-

trolled trailers.

Moreover, investigators found

PLCB management claimed stor-

ing excess inventory in non-tem-

perature-controlled trailers, despite

heat exceeding 100, did not put in-

ventory at risk of spoilage. Audi-

tors found this to be false,

observing, “merchandise stock-

piled in the non-temperature con-

trolled trailers such as wine and

champagne actually was more sus-

ceptible to high heat.” Contrary to

the finding, the PLCB continues to

deny widespread spoilage and an

accurate account of money lost due

to overheating remains unreported.

Of the systemic problems, the

audit went on to conclude, in part,

that auditors, “received little re-

sponse from management to

demonstrate its follow up and reso-

lution to ensure that store invento-

ries are properly accounted for.”

“This fiasco is just the latest in a

series of failures by the PLCB to

be good stewards of taxpayer

money, and clearly illustrates why

legislators should be shouting ‘last

call’ for government in the booze

business,” said Matthew J. Brouil-

lette, Commonwealth Foundation

president and CEO. “It’s uncon-

scionable that Pennsylvania gov-

ernment continues to protect and

promote a Prohibition-era monop-

oly so antiquated and inept that it

has taken basic freedoms from

consumers and robbed taxpayers

and businesses of free-market ben-

efits.”

The report comes just weeks after

PLCB Chairman P.J. Stapleton III

publically boasted about record-

setting sales, but neglected to cite

the AG audit that found that while

overall sales have increased, net

revenues from store operations

have declined nearly 47 percent,

from FY June 30, 2008 to FY June

30, 2010. The PLCB release also

failed to cite salaries, benefits and

pension costs of more than $215

million last year or the millions

spent each year to advertise and

promote liquor sales.

“In order to keep themselves in

business, the PLCB is only giving

taxpayers and consumers a glass-

half-full spin, when in reality the

glass is nearly empty,” said Brouil-

lette. “This proves once again that

monopolies, whether public or pri-

vate, fail to meet consumer and

taxpayer needs.”

CF is calling for an immediate end

to the PLCB’s role as seller and

distributor of wine and spirits, a

system of full government control

that now sees Pennsylvania as one

of only two remaining states in the

nation (the other is Utah) with

such draconian measures.

“The people of Pennsylvania know

this issue isn’t about just about

liquor and money, it’s about free-

dom and ridding ourselves of gov-

ernment monopolies, manipulation

and mediocrity,” said Brouillette.

“It’s time our leaders listen to the

demands of their constituents who

want government to butt out of the

booze business.”

In a June Quinnipiac Poll, Penn-

sylvanians overwhelmingly called

for the sale of 644 state-run stores,

with broad-based bipartisan sup-

port reaching more than 69 per-

cent.