Pennsylvania
David McCormick claims he created ‘hundreds of jobs’ in Pa. Records say otherwise
The merger
In June 2003, McCormick initiated discussions with Robert Calderoni, chairman and CEO of Ariba, a Palo Alto-based FreeMarkets competitor, about the possibility of a “strategic relationship of some form” and potentially a “business combination.” After more discussions, McCormick approached his board about the idea in September.
From the beginning, the company made clear its intent was to save money by reducing “redundancies,” including those resulting from duplicative jobs. According to SEC filings, FreeMarkets told its shareholders that a benefit of the merger would lead to “at least $25 million in annual potential cost savings, through the consolidation of redundant facilities, personnel and overhead.” Jim Frankola, chief financial officer for Ariba at the time, told analysts on a January 2004 conference call, “Of those savings, we anticipate approximately one-third to come from duplicative G&A functions, plus the one-half from redundant R&D efforts, and the remainder from other functions.”
Later that month, Michael Schmitt, Ariba’s executive vice president and chief marketing officer, told San Jose Mercury News that FreeMarkets would consolidate its headquarters into Ariba’s, with the companies trying to “eliminate redundant jobs.” That same day, the Pittsburgh Post-Gazette quoted an analyst saying it was likely “a lot of people in Pittsburgh will lose their jobs,” adding “that’s certainly what typically happens” with a merger.
McCormick told the Pittsburgh Post-Gazette, “There will certainly be redundant functions and consolidation of those functions.” In a July 2004 deposition regarding the merger, he told the court that job losses were expected “particularly in our technology development organization where our plan as part of the merged company is to eliminate that completely.” The next month, McCormick told Ariba shareholders what they “accomplished” leading up to the merger: “We have already eliminated 150 positions and have plans to eliminate another 100 positions over the next two quarters.”
Indeed, by the time the merger was complete, in July 2004, FreeMarkets had laid off or eliminated 150 positions. By December 2005, the combined company had reduced its workforce by an additional 100 employees, for a grand total of 250 lost jobs. At least 100 of those jobs were in Pittsburgh.
Calderoni defended McCormick in an interview with the New York Post, saying, “When we bought FreeMarkets, Dave insisted on keeping jobs in Pittsburgh. It really mattered to him as part of the transaction. In fact, he pushed for us to move jobs from California to Pittsburgh.”
It was a difficult time to run a startup tech company. The early aughts saw the bursting of a tech bubble that had grown during the late 1990s thanks to easy access to capital but started to pop in the early 2000s. As the Pittsburgh Gazette reported, the merger married “two unprofitable online business-to-business software and service firms that made names for themselves at the height of the dot-com boom, only to see their fortunes turn sour with the industry, forcing them to struggle to grow.”
McCormick wrote in his book that “creative destruction along with the bursting of the tech bubble eventually found its way to our sector as well.” However, he also admitted, “We didn’t move fast enough to become one of the true ‘software as a service’ companies that would eventually dominate the landscape. As CEO, I hadn’t built a team around me capable of evolving our business model quickly enough,” leading to the decision to merge with Ariba.
The merger, however, profited McCormick quite well. He became president of Ariba and a member of its board of directors, drawing $500,000 in annual salary, compared to the $350,000 he made at FreeMarkets, and was eligible for an annual bonus targeted at $300,000. He was also awarded 83,333 shares in Ariba, valued at $921,663, and 500,000 shares of stock options that had a potential realizable value between $3.4 million and $8.8 million. In September 2005, McCormick resigned as president of Ariba to work in the George H.W. Bush administration and received another $1,701,699 in severance.
McCormick spokesperson Elizabeth Gregory told WHYY News in a statement, “Dave is proud to have helped create hundreds of jobs in Western Pennsylvania during his time at FreeMarkets.”
Pennsylvania
Sen. John Fetterman receives no support for re-election from Pennsylvania House Democrats: report
Pennsylvania Democrats are reluctant to support Sen. John Fetterman, D-Pa., for re-election, according to a new report.
Punchbowl News spoke to several Pennsylvania congressional members on Monday about whether they’d be willing to endorse Fetterman for another term in 2028 despite the backlash he’s been facing for opposing the Democratic Party.
“Want a sense of how tenuous Sen. John Fetterman’s (D-Pa.) position is with Pennsylvania Democrats? Not a single Pennsylvania House Democrat in the delegation will say Fetterman should run for re-election as a Democrat,” the report said.
Though the House members did not explicitly reject the idea of Fetterman running again, they avoided answering whether they believed Fetterman should seek a second term as a Democrat, often focusing instead on the 2026 midterm elections.
“My focus right now is on 2026, but I would just say I’d be very surprised if he ran in the Democratic primary for the U.S. Senate,” Rep. Brendan Boyle said.
Rep. Chris Deluzio also answered that he would see what happens after 2026, though Punchbowl News acknowledged both he and Boyle are rumored to be launching their own Senate bids in 2028.
Rep. Mary Gay Scanlon added that she was interested in “getting through 2026 first.”
“I’ll hold my tongue so I don’t get in trouble,” Scanlon said.
Rep. Summer Lee told Punchbowl News the decision was “up to him” whether Fetterman should run, though she added that he would do so “at his own peril.”
Others were more vocal about their disagreements with Fetterman, though they stopped short of rejecting the idea of Fetterman running again.
“My concern is entirely about him and his health, and I’ll let 2028 take care of itself,” Rep. Madeleine Dean said.
“I disagree with many of his votes.”
“It’s no secret that I’ve been disappointed with some of his votes and that I’m confused by it,” Rep. Chrissy Houlahan added.
“But I’m not responsible for deciding whether he runs again.”
Fox News Digital reached out to Fetterman’s office and the other Pennsylvania Democrats mentioned in the report for comment.
Fetterman has publicly spoken out against his party on several issues, particularly its growing hostility against Israel.
The Pennsylvania senator has also supported President Donald Trump in his ongoing war against Iran and strict border policies.
Though strategists have suggested Fetterman could switch parties because of his bipartisan stance, he previously ruled out leaving the Democratic Party last year.
“I’m not going to switch. I’m just going to be an independent voice in the Democratic Party. I’m not going to be afraid of people,” Fetterman said.
“CBS Mornings” exclusively revealed Pennsylvania high school teacher Leon Smith as the 2026 National Teacher of the Year, which is selected by the Council of Chief State School Officers’ National Teacher of the Year program.
Smith, a social studies teacher at Haverford High School in Havertown, Pennsylvania, said the honor “just means everything.”
“It’s just such an honor to be able to represent teachers all over the country and really stand on the shoulders of so many others that have come before me that have done just such great work,” Smith said in an interview with “CBS Mornings” on Tuesday.
Smith, who teaches AP U.S. history and AP African American studies, was previously named the 2025 Pennsylvania Teacher of the Year.
In a video, students at Haverford High School and colleagues described Smith as passionate, caring, charismatic and engaging.
“He is everything you want in a teacher,” principal Pete Donaghy said in the video. “He relates African American studies or U.S. history to his students.”
Smith reflected on the difference teachers can make in the lives of their students. For him, his favorite teacher was his first grade teacher, Ms. Mason.
“Just how she made me feel,” Smith said. “So I just think that’s the power of a teacher, that it’s not always the content but it’s how you make the students feel is what they remember.”
Smith said he thinks it’s crucial to let students “know that you care.”
“And also just being able to see things in students that they cannot see in themselves.”
Smith is also a longtime basketball coach, coaching the freshman team at Haverford High School.
“I was one of his players and he made sure that I felt seen,” a former player told “CBS Mornings.” “He made me feel like I actually had a purpose.”
Smith’s love for basketball started when he was young. His favorite player ever is Julius Erving, known as Dr. J., who Smith said made him “fall in love” with the game.
Erving surprised Smith on “CBS Mornings” by congratulating him in person on being named the National Teacher of the Year.
“When I got the notification about Leon, I realized that his school Haverford is literally right around the corner from a house that I lived in for 11 years,” Erving said. “So there was a connection … I said, ‘Well, let’s go and be on the show. Go see some people. Spread some joy. Spread some love.’”
Erving recalled a teacher who had an impact on his life.
“The most significant was Mr. Ray Wilson, who actually taught special ed in my high school, but he was also my basketball coach,” Erving said, describing Wilson as a lifelong mentor.
“He lived until he was in his 80s, and he was always there. He was always my first call anytime anything came up. Big or small, I could always call him, anytime, day or night. That was special.”
Smith called meeting Erving an honor and said he’s thankful for a moment that he’ll never forget.
A Pennsylvania court ruling is reshaping abortion access in the state, striking down a decades-old ban on using Medicaid to pay for abortions and declaring that the Pennsylvania Constitution guarantees a right to abortion.
The decision came Monday from the state’s Commonwealth Court. In a 4-3 vote, judges ruled in favor of abortion rights in Pennsylvania and invalidated the state’s restriction on Medicaid-funded abortions.
Local abortion-rights advocates praised the ruling as a major step toward protecting access for low-income residents. Adrienne Daily, co-founder of Johnstown for Choice, said, “Everybody should have the right to that. If you restrict the coverage, you’re obviously discriminating against those that have lower income.”
Opponents of abortion rights called the decision a dramatic expansion of the court’s power and warned it will force taxpayers to pay for procedures they oppose. Michael Geer, president of the Pennsylvania Family Institute, said, “Taxpayers now in Pennsylvania will have no choice under this court ruling to fund abortions. And there are many, many millions of Pennsylvanians who think abortion is wrong. It’s the taking of an innocent human life and to force taxpayers who conscientiously object to abortion to then fund it is just plain wrong.”
Abortion-rights advocates pushed back, arguing abortion access is healthcare and a personal decision. Daily said, “This is a family issue. This is a personal issue. This is a bodily autonomy issue.”
Pro-life leaders also warned the ruling could have broader implications for other abortion-related laws. Geer said, “It is sweeping and there’s no question it’s judicial overreach.” He added, “If this ruling stands, it will invite attacks on every remaining pro-life safeguard that has been put into law by lawmakers at the behest to the people of Pennsylvania over decades.”
The case could still be appealed to the Pennsylvania Supreme Court. That decision lies with Republican Attorney General Dave Sunday. His office has not provided a response, but the Associated Press reported a spokesperson said the office is reviewing the decision and did not say whether it will appeal.
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