Lawmaker's house profit makes strong case for per diem reform
If you’re a Pennsylvania taxpayer, here’s a sweetheart of a deal you should know about. After all, you paid for it.
A former Pennsylvania state legislator who used per diem payments to buy a rental house while still living in his own home has now sold that house for a profit, according to the CBS television news affiliate in Harrisburg.
The case of former state Rep. James Wansacz presents a stunning example of the abuses possible under the current legislative per diem system — and why reform is long overdue.
Wansacz, a Democrat, was a state representative from 2000 to 2010, representing the 114th House District, near Scranton, 130 miles north of Harrisburg.
According to previous news reports, Wansacz bought a house in Harrisburg in 2003. The sale price was $72,000.
Even though Wansacz continued to live in his own home back in Scranton, he was paid a per diem whenever he came to Harrisburg.
A per diem is a tax-free payment received as reimbursement for business expenses. Our elected officials get per diems for lodging, food and other travel expenses.
And they don’t even have to prove they spent the money for travel, while most businesses require their employees to turn in receipts.
In the real world, accountants and bookkeepers wouldn’t put up with such shenanigans as reimbursement claims without receipts.
During his time in office, Wansacz collected $162,904 in per diems to cover expenses, which included his mortgage.
According to Tuesday’s news report, Wansacz, now 42 and a Lackawanna County commissioner, has sold the home for $115,000. That’s $43,000 more than he paid for it — or rather, we paid for it.
Wansacz apparently also received income from renters. The report cited his real-estate agent saying Wansacz has rented the home to many tenants, including other legislators.
An online listing for the home said the first floor rented for $525 a month and the upper apartment for $825 a month — and if other legislators were renting it, then we no doubt paid per diems for that, too.
The evidence suggests former state Rep. Wansacz used per diems to buy a house he didn’t live in and rented it to other lawmakers who probably used per diem money to pay Wansacz, their landlord — and our public servant. Then he made a cool $43,000 on the sale of the property. And don’t forget to toss in his salary, health benefits and generous pension.
That’s a pretty sweet deal, and apparently legal. But it shouldn’t have been legal. Pennsylvania taxpayers should be howling mad about it.
