(Undated) -- High gas prices may not have as much of a negative impact on Memorial Day weekend travel as analysts previously thought.  AAA is projecting a slight increase in travel for Pennsylvanians, since gas prices are nearly 25 cents lower this year than last.  Spokeswoman Jenny Robinson says the organizaton is seeing mixed messages about how gas prices have affected vacation plans.  "A little over half say no, it hasn't impacted their plans, and a little under half say that yes, they have been affected by gas prices in terms of their travel plans," she says.  Robinson says 55 percent of people responding to AAA's survey say they're traveling to see family or friends.  Forty-four percent plan to go shopping this weekend, 42 percent will dine out and 35 percent plan to visit historic sites.

(Harrisburg) -- State regulators worry the growing popularity of so-called "crowd funding" could open up Pennsylvanians to excess risk and fraud. Crowd funding happens when large groups pool their money to invest in small businesses, arts projects, and other ventures. State Securities Commissioner Steve Irwin says new federal legislation makes crowd funding available to more people, and that worries him. "What's missing here is an investment advisor or a broker's advice to an investor on whether this type of investment is suitable to them based on what their investment objectives are and their ability to withstand the loss," he says. Irwin warns more than half of small businesses fail, and a great number of start ups don't become profitable. He says the new federal law keeps states from reviewing crowd funding offerings. The new crowd funding rules will not go into effect until the federal Securities and Exchange Commission signs off on regulations.

In a Capitolwire column yesterday, Pete DeCoursey argues the departure of Gov. Corbett’s top aide, alone, won’t mark the new direction donors and advisers are hoping to see.  Republican candidate for state attorney general Dave Free has a huge financial edge over his Democratic opponent, Kathleen Kane, reports the Associated Press.  Harrisburg got its second receiver yesterday, along with reasons the first one quit. 

(Harrisburg) -- The commonwealth's overseer of Harrisburg's Act 47 fiscal plan isn't happy with some major players in the capital city's recovery process. The state Department of Community and Economic Development has one major message for Harrisburg's City Council and Controller: Do what the city's Act 47 plan tells you to do, or Commonwealth Court will make you. DCED has filed a so-called "notice of non-compliance" against the city, citing City Council's refusal to raise the earned income tax, among other things, as a violation of the court-ordered plan. But Councilman Brad Koplinski says he's not on board with the entire plan just yet. "It appears to sell assets before negotiating with creditors," he says. "Putting the cart before the horse in selling the assets before negotiating with creditors does not seem like the correct option for us." Koplinski says he's open to creating a county-wide sales tax or other measures that could help bring in revenue. The latest snag in Harrisburg's fiscal recovery process comes just as former city receiver David Unkovic appeared in Commonwealth Court to explain why he left his post so unexpectedly. Unkovic has said he felt "boxed in" by creditors overseeing the city's debt-riddled incinerator. He's also testified the state told him he'd be let go after a press conference in late March where he criticized many of the key players involved in the recovery. DCED Spokesman Steve Kratz says that's not true. "At no point in time did anyone from the administration say that he would be removed, nor was there any intention to remove him. We were as surprised as anyone else," Kratz says. He does concede that some of Unkovic's remarks were troubling. "Granted, there were some outbursts that he had had recently, in recent weeks, that were concerning, that we felt could be detrimental to the overall recovery process," Kratz says. He adds Governor Corbett and his administration had faith Unkovic could help turn Harrisburg's finances around up until the day he resigned. Now the Commonwealth Court has approved a new city receiver: retired Air Force Major General William Lynch. Attorney Neil Grover, with Debt Watch Harrisburg, says it's up to the court to see that Lynch doesn't become frustrated in his new position. "They shall make sure that the office of receiver and Mr. Lynch have the independence needed to do this job and the resources to do this job. That's not an insignificant thing." All parties involved say they ultimately want Harrisburg to emerge from the Act 47 plan as a financially stable city. But getting there may take some time.

Governor Corbett’s top aide has left his post.  Chief of staff Bill Ward is stepping down to become a judge in the Allegheny County Court of Common Pleas.  Ward’s departure comes in the wake of published reports the administration is shuffling its staff to weather a drop in popularity and appease unhappy GOP donors and advisers urging the governor to improve how he deals with the Republican-controlled legislature.  Corbett’s spokesman has denied such claims.

(Harrisburg) -- An advocacy group is teaming up with lawmakers to push for changes to the state law that oversees financially distressed cities like Harrisburg and Reading.  The Coalition for Sustainable Communities says changing Act 47 would be a step toward improving the fiscal health of struggling municipalities.  Lancaster Chamber of Commerce & Industry President Tom Baldridge is a member of the group.  He says numbers alone make the case for reforming the program.  "Forty-one percent of Pennsylvania residents now live in what is considered a distressed community by Pennsylvania standards.  That, I can assure you, is a number that is going up, not down.  It's a trend we simply have to stop for our economic prosperity in the future," Baldridge says.  The coalition wants a re-write of the law to allow it to trump previously negotiated deals with public worker unions.  It's a response to a state Supreme Court ruling last year that Act 47 recovery plans could not hold sway over a contract with Scranton's firefighters' union.

The Associated Press reports Gov. Corbett’s top aide is leaving his job.  The Philadelphia Inquirer writes that supporters fed up with the pummeling the administration is getting from critics are prodding the administration to make staff changes.  The state’s beer wholesalers have come out against a proposal to sell off the commonwealth’s wine and spirit stores.  And Corbett announces he'd like to pass prison reforms by the end of June.

More than half of the state’s school districts expect to scale back their offerings as schools grapple with low tax revenues and limited government funding, and new study shows.

The third annual school budget survey conducted by the Pennsylvania Association of School Business Officials and the Pennsylvania Association of School Administrators received responses from 281 of the commonwealth’s 500 school districts.  

Of the schools surveyed, 60 percent are increasing class sizes, 58 percent are offering fewer electives like arts, physical education, and advanced classes.  11 percent of respondents are reducing full-day kindergarten, and eight percent are eliminating it.  A majority of the surveyed districts said they’re planning to furlough employees and not fill empty positions next year.

Speakers from the two groups behind the report said Tuesday that unless state and federal education spending increases, there’s little relief in sight for school districts.

Jay Himes, executive director of PASBO, said the “fiscal deterioration” is severe.  School districts are suffering for a number of reasons, he explained: the poor economy has hampered local revenue sources, state and federal funding is down, and state-mandated pension costs are rising.

“48 percent of the respondents to the PASBO-PASA survey say their districts will be in fiscal distress in three years if state funding and local revenues do not improve,” said Himes. 

Despite recent claims from state lawmakers that schools should be spending down their savings to weather the storm without cutting instructional programs, speakers from PASBO and PASA cautioned against relying on savings to balance school district budgets.

More than 20 percent of the school districts participating in the survey said they had spent more than half of the uncommitted funds in their savings accounts in the last two years to cover costs.

Eric Eshbach, superintendent of the Upper Adams School District in Adams County, said it’s a bad idea for schools to do that repeatedly when rising pension costs loom on the horizon. 

“The contention is out there that it’s a rainy day and we need to use our rainy day fund,” said Eshbach.  “I would contend that it’s a rainy decade, and for most school districts, we have about three days worth of rainy day fund to get through that decade.  What do we do when it’s over?”

The state Attorney General’s office is charging four southeastern Pennsylvania men for leading an alleged financial fraud scheme that targeted seniors throughout the commonwealth.  Attorney General Linda Kelly said her office claims to know of 218 seniors who were bilked out of hundreds of thousands of dollars for services they never received.

Four men have been charged and arrested for selling bogus safety equipment, shopping services, and even assistance with insurance: Bruce Cherry and Robert Lerner, both of Philadelphia; Ross Rabelow of Bucks County, and Thomas Muldoon of Delaware County.

State Attorney General spokesman Nils Frederiksen said that two of the men had worked previously in a legitimate insurance company together, which was how they knew some of the seniors they allegedly targeted.  But many cases document the men simply canvassing neighborhoods for clients, according to Frederiksen.  “There are a number of different forms of contact but most of it we believe was simply cold calls, just approaching seniors directly in their home, to see if they were interested in buying these services,” he said.

The average age of the alleged victims was 83 years.  Kelly’s office has also found victims in New York, New Jersey, and Maryland – and it is keeping the investigation open to find other potential victims, and encouraging those with information to call the Office of the Attorney General’s units for Insurance Fraud and Elder Abuse.

Most of the services were sold under the names of two companies, called American Comfort Home Care Services and Global Services for the Home.  

Frederiksen said alleged victims, all told, have lost more than $700,000 for services that were never provided.  “Things like shopping or house cleaning, helping them get dressed, helping them get organized, anything that they would need around the home if they became sick or disabled or injured or were recovering from medical procedures,” he said.

Radio Smart Talk for Wednesday, May 23:

If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?  The answer is typically bond prices will fall when interest rates rise.  Less than one-third of Americans answered that question correctly in a New York Times Economix quiz testing financial literacy.

As a nation, we aren't very knowledgeable about mortgages, retirement savings, credit card debt and other money matters. 

The same survey showed the group that fares the worst is 51-56 years old, which is a bit of a surprise since that age group has more experience with maintaining a family budget.

The age group that scored the highest on the survey was 23-28 year olds.

Here's another tidbit from the Times survey-- the strongest tie between someone who is financial literate is their parents' education, especially the education of their mother.

On Wednesday's Radio Smart Talk, we'll look at financial literacy and what we don't know but should, as well as answer any questions you may have.