On Saturday Morning the New York Times ran an Opinion segment on Libertarianism, Rand Paul and Civil Rights. The basic premise was that Rand Paul’s statements were proof that the Libertarian model does not work to protect civil rights (and by extension fails at everything) – but is this true?
The most central argument of the piece is this:
“It was only government power that ended slavery and abolished Jim Crow, neither of which would have been eliminated by a purely free market”
Failure #1 and most blatant is that government power created slavery and Jim Crow. Even if you ignore the direct impacts of what the government did, you are still left with the promotion of racism created by having the laws.
Failure #2 is that government did not end slavery and Jim Crow based on reasoned men in Washington coming to its senses – it was the rising up of individuals against the failures of the state that finally stirred them to action (not unlike the Tea Party on a different governmental failure). The individuals such as Martin Luther King Jr. were indeed free market actors. There should be no pomp and circumstance surrounding the passage of the Civil Rights Act – only shame for waiting so long.
Failure #3 is the notion that they could not have been eliminated by a free market – which fails simply because a market cannot make laws only a government can, as such the market cannot eliminate laws. While this is a bit nuanced it is important. Libertarianism is not limited to free-market-fanatics, Federal-reserve-haters and anti-regulation zealots. Libertarianism stems from a simple belief in a few fundamental rights, the chief of which are property rights. Stemming from natural right philosophy it is asserted that property rights apply not only to our physical possessions but our bodies as well. The main aim of libertarianism is to prevent the unjust use of force against property.
Slavery is theft of property. It cannot be allowed to exist in a libertarian society. Similarly, Jim Crow laws would not exist in libertarian society either. Certainly, actions outlawed by the Civil Rights Act could occur in a libertarian society but this deserves closer attention as well as it points to the fundamental flaw in the NYTimes editorial boards thinking.
First, racism was codified into our society by government. By specifically demoting classes of people to subhuman categories government created the hatred, disdain and intolerance that leads to racist behavior. 45 years beyond the passage of the Civil Rights Act we see the tide of racism subsuming as the institutions that supported it are unknown to a grown generation. The New York Times picked up on this in the immigration debate (the parallel being that immigration laws are the systematic denial of a right for one class that is perfectly legal for another class and criteria for denial – place of birth – is arbitrary). Were the government sponsorship of oppression absent the level of racism, and racist activity, would be greatly reduced.
Second, race based discrimination consistent with Jim Crow laws would be faced with the same social stigma that they face today with or without the Civil Rights Act. Augusta National Golf Course, home of the Masters, cannot be compelled to admit women under the CRA but public pressure has at least moved women on to the waiting list. It was not the CRA that demoted Tom Delay from the Speaker of the House all the way down to Dancing with the Stars (no offense to Dancing with the Stars intended) but rather public outcry over his support of Strom Thurmond. Indeed it is the mass market (free market if you will) appeal of Oprah, Tiger Woods, Elton John, Justin Timberlake and, oh yeah that Obama guy – that have moved acceptance of “others” far more than Washinton v. Davis or Swann v. Charlotte-Mecklenburg ever did.
Lastly, the NYTimes position leads us to believe that government sponsored oppression of select groups ended with the passage of the CRA. While I could point out the direct cases, such as immigration laws, drug laws, Patriot Act and others it is far more insightful to look at the indirect cases. No Child Left Behind, TARP, and the new health care legislation all direct government resources (tax dollars taken from you and I as well as minority groups) to maintain the current class structure that leaves African Americans and others on the outside looking in. This is not to say that government should reverse the policies and promote the needs of minority groups it is just necessary to point out that Jim Crow laws are just more nuanced in 2010 than they were in the early 1960’s.
Quite simply the New York Times argument is no different than thanking an arsonist for helping to put out the fire he started while the arsonist continues to fan the flames.
Looking back on the history of mankind the threat to any discriminated group did not come from shopkeepers or even employers it has always been the coercive state (a few might argue that organized religion has played this role but it is only when they have been granted power by the state or indeed was the state). For the New York Times to pronounce government to be a champion of the oppressed is naïve at best and complicit in the continuance of oppression at worst. I tend to believe the latter.
So the study states that it our reliance on LGA and Federal aid will leave us wanting and instead we should look to local sales taxes and extensive "planning" (Mr. Commers of course owns a firm that specializes in "planning for communities"). I do agree with one of his points on building up and in to use the most of existing infrastructure. But the LGA payments are much closer to a credit card that allow us to make bigger purchases. Had we never started receiving LGA would we have subsidized the new Wal-Mart, paid for the waterpark, downtown streetscaping or other projects? None of these are community needs and in many cases benefited specific landowners at the expense of others.
We can see the Taco Johns and the Verizon Wireless building were rehabilitated and improved without a vast program (they may have received some aid funding but I am not aware of it). It appears that the former Happy Chef and the car wash nearby are being developed (last I heard this was going to be new building site for a bank…don’t know if that is accurate anymore). We can also look at the community education funding as well – should we believe that if the City of Waseca does not fund youth basketball leagues that our youth will degenerate into chubby little blobs incapable of hitting a jumper? If adult softball and volleyball can exist without city funding why can’t youth basketball?
There are countless examples of the city doing what the private sector can do for itself, usually to the gain of select groups or at the behest of benevolent citizens looking to save the barbarians from themselves. When we build a community pool we steal business from pool builders, pull members from the Country Club, siphon business from hotels and allow us to not feel so bad about pollution in Clear Lake. When we subsidize Wal-Mart we disadvantage Econofoods and the downtown dollar store. When we provide for “community education” we compete with for-profit and non-profit entities that would gladly enter that field. Even if we are immune to the favoritism and injustice of these decisions we must be at least somewhat outraged at the wasteful costs involved in the government running these programs.
No different at the school and county levels either. All of this hubbub over Styrofoam lunch trays and the quality of the food and my former hometown even extending school lunches into the summer? The maintenance and construction of County ditches to aid farmers? Let us not forget the kind leaders using our tax dollars to tell us not to eat junk food and quit smoking.
So we are left with the taking of tax dollars, either overtly in our property taxes or covertly through government transfers of income and sales taxes, for our local government to lay blessings on those they favor and advance what “community ideals” they see best. Attacks on the funding of these endeavors are portrayed as attacks on the services itself or others unrelated but more inflammatory – anyone who would cut LGA must want less police protection. Anyone opposing the never ending costs of education must favor our children devolving into mouth breathing Neanderthals. If you oppose economic development you are against jobs and growth.
I offer you a snippet from Bastiat’s essay on Law penned some 150+ years ago in France but still relevant today:
“Modern political theorists, particularly those of the socialist school, base their diverse doctrines on a common hypothesis, certainly the strangest, the most arrogant that could ever have entered a human brain.
They divide mankind into two parts. The commonality of men, with one exception, forms the first; the political theorist, all by himself, forms the second, and by far the most important.
In fact, they begin by supposing that men are endowed with neither motivation nor discernment; that they are devoid of initiative; that they are constituted of inert matter, of passive particles, of atoms without spontaneity, at the most a form of vegetation indifferent to its own mode of existence, susceptible of receiving from an external will and hand an infinite number of more or less symmetrical, artistic, and perfected forms.
Next, each of them supposes forthwith that he himself—under the title of organizer, discoverer, lawgiver, or founder—is that will and that hand, that universal mover, that creative power whose sublime mission it is to reunite into society those scattered materials which are men.
Starting from this assumption, just as every topiarist, according to his fancy, trims trees into pyramids, parasols, cubes, cones, vases, espaliers, distaffs, and fans, so every socialist, according to his caprice, prunes poor mankind into groups, series, centers, subcenters, cells, social workshops, harmonized, contrasted, etc., etc.
And just as the gardener needs axes, saws, pruning hooks, and shears to shape his trees, so the proponent of an artificially planned social order needs the forces that he can find only in the laws in order to organize his society: tariff laws, tax laws, relief laws, and education laws.”
What then should we do? If Waseca were to reject LGA we would find ourselves at a disadvantage to our neighboring communities. If the state rejects Federal funds we would see an exodus to Wisconsin and Iowa as the subsidized states grow and we wither. But if this is true why doesn’t every company that is not subsidized wither and die? How does Federal Express perform the same task as the USPS and still produce profits? How does rail with its privately owned and constructed railways compete with trucking that benefits from taxpayer funded roads (of course railroads are still subsidized but the impact is not as significant as it is with trucking)? How has the internet carried by privately owned wires and cables compete with radio and broadcast television and their government provided monopoly status? How has lightly subsidized Phoenix University grown to its current size against heavily publicly subsidized state colleges? For that matter how did the professional Red Army team fall to the ragtag bunch of US kids in 1980 at Lake Placid? Clearly being on the dole does not mean you are competitive.
Maybe more importantly is the very human ability to use moral judgment. We attend churches, donate to charities, help strangers in need. We refuse to extort others when permissible by law, we don’t drink until our blood alcohol is .079 and drive and rarely test the boundaries of other laws for our own personal gain. This weekend, even though I love the beautiful yellow flowers, I will spray my yard to kill the dandelions. Not for my own good but so they do not infest my neighbor’s yard. Yes we are humans that have pledged ourselves to being Baptists, Mormons, Anti-War protestors and countless other ideologies, penchants and hobbies that subordinate our personal interests for what we feel is best. Is it then not logical that even though removing ourselves from the forced redistribution of wealth is indeed consistent with who we are as humanity?
Of course it does not stop with saying no to the governmental bribes it also requires voting for those who stop the plunder. Those people do exist, they want to serve you and in many cases they are in office but our message to them gets distorted and they perceive we approve of what they do. They are Democrats and Republicans, they are on our City Council, School Board, County Commissioners. They serve in St. Paul and in Washington but we fail to speak to them and they only here the voices of the special interest. They have their minds shaped against what they deep down know to be true.
It seems as though we in the US seem bent on fighting symptoms rather than the underlying condition lately.
In health care we passed the “Affordable Health Care Act” so that we could reduce insurance costs…it didn’t really do anything to fix health care it just attempted to reduce insurance costs – a symptom of a broken health care system. Of course we are now finding out that the great bill didn’t even do that so the brain trust in DC is planning a new bill to fix what they just broke.
The State of Arizona is following the crazy train as well with it’s new immigration law that allows police to stop anyone who looks like they might be an illegal immigrant and demand papers. Guess I will have to cancel my visit to the Grand Canyon since my sons are Hispanic. Have the good folks in Arizona thought through the problem at all? Why do we have illegal immigration? The easy answer is “We don’t protect our border” but the complete answer is that there is a demand for labor in the US that exceeds the government determined legal supply. Big labor on the left and xenophobes on the right have dictated immigration quotas to restrict the flow of labor that our economy needs. The impact for us? Labor rates are held higher – not so bad right? Well it is fine until a manufacturer is faced with a decision to expand or contract manufacturing in the US. Off-shoring and out-sourcing are decisions based primarily on labor rates. Eventually, following the current policy, we will end illegal immigration by moving all manufacturing jobs to China. Just remember that when that happens we lose supervisor positions, management positions, and cripple businesses that are supported by local manufacturers (office supply stores, hardware stores). Your 3 step Widespread Panic solution:
Remove the quotas – allow for millions of 9 month work visas.
Stop spending on illusory border enforcement (12-20 million illegal immigrants are here in the US already – we are just pouring money down a drain). Move those funds into speeding up the visa process.
Flat tax of 15% on work visa payroll. Covers the cost of the program and benefits received by workers.
No more illegal immigration, no more identity theft, no more wasting money on porous borders, detention and deportation and you bring jobs back to the US.
…And for the “they are taking our jobs” crowd I offer two thoughts. First you are going to lose your job to China, India or some country if the trend continues at least under this scenario you have a chance to compete for your job. Second, if you get beat out for “your job” by someone who is faced with a 3000 mile journey, doesn’t speak the language and can only stay for 9 months at a time it wasn’t “your job”.
Then we have the folly of financial reform. The simple response from the Washington echo chamber is that all we need to do is regulate banks and we will never have another boom-bust cycle or have to offer up a bailout. The truth is that booms and busts are a natural economic phenomena that isn’t going away, and if you are against bailouts…ummm don’t bailout companies! Financial regulation creates the game that the Masters of the Universe enjoy playing. Government regulation leads to innovation designed to get around and through regulations as the primary goal rather than innovation that serves customers and markets better. We have seen this with our tax code – the home equity loan is great because you get a tax preference on the interest so people over sell their homes to the banks to finance cars, vacations and cute little garden gnomes. The same is done within the confines of Goldman and their ilk. The second failure of regulation is the cost of compliance cements the big banks at the top. The mom and pop financial institution is unable to take the next steps in growth because of regulatory costs. To a Goldman the regulation costs are offset by less competition from below. Look at what Sarbanes-Oxley did to competition in the Accounting industry - small CPA’s can run from audits quick enough. For the flip side look at the largely unregulated electronics industry where quality, innovation, and safety are accompanied by great affordability.
Is there a thread in our misguided battles above? As Ronald Reagan once stated (but never really followed…) “Government is not the solution to our problems, government is our problem.”
Thanks to Marla Rohl for recommending "The Shack <http://theshackbook.com/> " bought it, read it and handed it off to my wife in about 12 hours - great book, a moist eye or two in the process. Best book I have read in at least 10 years.
Went to Center for the American Experiment "WHAT WE’VE LEARNED ABOUT CUTTING BUDGETS <http://www.americanexperiment.org/events/2010/2010-03-02.php> " Featuring Tim Penny and Rudy Boschwitz. Tim's key statements were (paraphrasing here) "The legislative body will never approve a budget lower than what is offered by the Executive" and "Control the process and you can control the budget". Does the new Superintendent count as the equivalent as the executive in a School district? If so a key question in interviewing might be "are you fiscally conservative?". Rudy also stressed process when it comes to budget and wants a two year budget in Washington. Not to pat myself on the back too much but I offered the idea of a two year capital improvement budget for the city of Waseca and I feel we were much more effective. The event was interesting, I sat with Joe Repya who recently suspended his candidacy for Governor in the Independence Party - there seems to be a little infighting there. He is especially unhappy with Barkley courting the Tea-Party movement.
I hate to see Teresa Walters leave - she was a great Finance Director and helped the council stretch budgets more than seemed possible.
Now I get my weekend update from the Waseca County News and they tease that Crystal is a top contender for a position in Arizona? Say it ain't so Crystal!!!
I am working on an LGA piece that I hope will show the effects of LGA changes on total budgets and staffing levels.
1. Restructure teacher positions. There should be 2-3 Master Teachers for each grade K-8, a Master Teacher would an exempt position that would be responsible for providing teaching, coordinating teachers, curriculum development and leadership. A master teacher would a track record of leadership, dedication and performance, accordingly they would be paid a premium salary. Each student in a grade would have a Master Teacher meaning that a Master Teacher would have 50-70 children in their stable. There would still be additional teachers that would be primary educators but they would be positioned under the Master Teacher. At this point an example might be helpful...
According the Hartley website there are currently 5 Third Grade teachers and about 120 students (again I do not have specific numbers and this serves as an example), this would change to 2 Master Teachers and two standard teachers. The Master Teachers would develop tracks for students based on educational needs and assign them to proper teacher (Master or Standard). So instead of a teacher teaching a broad cross-section of 24 kids the same material that regardless of the students ability (Sally may learn the concept in 12 minutes while Dave needs 32 minutes) a teacher would teach 30 kids that are bunched a little more closely together. The end result is more efficient and individualized education for the children and the net saving of 1 teacher per grade. (Another alternative would be making teachers more vertical you would still have Master Teachers at the grade level but standard teachers might become Math teachers for grades K-3).
This change could net a reduction of 10-12 positions, the Master Teachers would absorb a portion of that savings in increased pay but would be worth the additional salary. The expectation is that these positions would be filled by superior teachers, because they are exempt employees they would not be bound by tenure or seniority. These Master Teachers would be tasked with, and supported in their efforts to, raise the overall level of Core subjects (math, reading and communication).
2. Special Education instructors will be stretched - Special education instructors perform a vital service and by no means do they have an easy job but as the budget is tightened they would be asked to help with mainline student education. This may mean grading papers, helping with curriculum development or other activities to ensure that quality is increasing.
3. Reduce athletic programs - Waseca School District does not have the resources to offer the full slate of sports, even moreso it cannot offer the depth and quality in the full slate as each sport fights each other for scarce resources. The District needs to make a conscious choice to specialize and excel in 3-5 sports. More resources would be available to those sports so that they could accommodate the level of interest and be fully supported. Students wanting to participate in other sports would be allowed the opportunity but they would have to bear the expense.
4. Reduce elective programs - Again the idea here would be to select a small number of programs and do them very well and move out of other areas. As with sports there is value in each of the activities but quantity is the enemy of quality given limited resources.
5. Use Community Education to support the core subjects as well as #3 and #4. Offer courses in Vedic Math, number puzzles, Harry Potter reading workshops, pen pal clubs, etc - take the commitment to excel as far as it can be taken. If the District decides Tennis is one of the sports that they will support Community Education can increase their tennis offerings at younger ages to build skills and interest. If French is the foreign language option that is chosen by the district this can be augmented with French Literature courses, French cooking, etc.
6. Actively recruit involvement and volunteerism - give people the opportunity to help in the school, but more importantly let them know that they are welcomed there and critical to the success of education. Talk with area employers about establishing Blue Jay Booster programs that would allow for flexible scheduling to accommodate for volunteering at the school (for parents and non parents!!!). Commercial property owners pay an amazing amount of any levy that is passed, allowing for flex time that reduces district costs is good for the bottom line.
7. Stretch the non-teaching staff - set aggressive goals for administration and support. There is no doubt that the workload is hard and has gotten tougher over the past few years but that is true in every position out there. We are all running lean but we must be leaner. Reduce non-teaching head count by 3 positions district wide.
8. Resist mandates - if you are not being funded start sending communication to St. Paul and Washington stating that you will no longer be able to comply with specific requirements. Tell them what the costs of those requirements are and a deadline by which you will stop complying. Let them respond with waivers or potential sources for additional funding. Squeak loud and often, copy all elected officials.
If, after considering these cuts and others identified elsewhere, there is a need for an additional levy I offer up the following:
1. Do not ask me to support a levy on election day. I do not know if the levy will pass and I do not know who will be spending it. My vote for school board is dependent on the levy, my vote for the levy is dependent on the school board. I realize that there is an additional cost to running the levy referendum separate from the general election but unknowns lead to conservative votes.
2. Talk with the City and County about their plans for tax increases. If you are asking for $400 per student levy, the City is boosting the tax rate by 3% and the County by 4% guess what the vote will be. Figure out what you need, speak with the City and County and all three entities present their needs together. I would offer this to the Council and County Commissioners - shaving your budgets to offset a levy increase would be a great investment in this community.
3. Do not promise cuts if the referendum fails - deliver cuts and allow taxpayers to invest in additions. To put it another way, plan for the referendum to fail. There should be no reacting after the fact, the voters are not taking money away they are just choosing not to add more. Having a business model that can exist without the levy shows that you are doing what is required.
4. Marketing the levy - make they levy short (3 years max), let the public know that if it fails you are committed to the working without it, let others do the talking for you. The economic climate is too uncertain for long term levy, State and Federal priorities and abilities (both on funding and policy) are in flux, committing to a 6 year levy is unreasonable. Let the voters know that you respect their decision on the referendum and that if they vote no that you will not be coming back in 6 months or a year. Most importantly keep the School Board members out of the marketing. If the taxpayers of this community see value in the referendum they will step forward and market the plan, they have the passion and commitment to sell the levy and the School Board doesn't get mired in the politics.
So there it is, my humble solution. It is not offered lightly, advocating for cutting teachers, staff and programming is not something I just toss out there. I have never met a
teacher that wasn't worth more than what they are paid. Sports do so much to build character, leadership and teach life lessons. I am an administrative person and work with administrative people all day - I understand what they do to provide for the success of an organization. I have 5 children that will be in the Waseca School district, one is hearing impaired and requires additional resources. But at the same time there are printers, waitresses, mechanics, machinists and every other occupation that are being squeezed during this time. That doesn't make it right, or make it better, it is just the times we live in.
I do look at these options as providing a step towards leaner more efficient education, there is a lot of technology that can and should be applied to take it from efficient to robust and first class.
And of course something shiny. And a bonus historical shiny .
Below, herein and forthwith is the Widespread Panic solution to the Waseca School District financial woes.
A couple of caveats as I go through my recommendations:
I am not a school board member, I do not have a source in the district offices so I am piecing this together with the information that I am able to gather on the web.
These recommendations may offend teachers, taxpayers, elected officials, and small children but they do reflect what I see as the best solution from my current perspective. I am very willing to debate and extremely willing to adjust my position based on additional information. I am going with what I know.
This is a recommended solution based on getting through the current financial situation and does not equal long term reform - I do plan to address that in the future, if you would like a sense of my long term feelings try here.
It may be painful to some but this will be a two part series with the structure being outlined here and specific steps being laid out in the next post, if you just want that part you will have to wait. I do recommend reading both posts and considering the steps and the structure together to get the most out of the discussion.
My approach on this is to position the Waseca School District to restructure operations and financial position to provide for stability, a value proposition for all stakeholders (District, Teachers, Students, Taxpayers), and provide the best education possible. This is multiple step approach to fixing the problem, while any of the steps can be taken by themselves in my view this does a disservice to the stakeholders. Making a tactical cut today that is not consistent with a longer term strategy inevitably leads to that cut being replaced in the future. Nobody needs those headaches...if the District is not confident that they will have Styrofoam trays for at least 5-7 years the cut is simply a poorly executed accounting shift that undermines their credibility.
So now we start getting into the good stuff - the core principles that will allow the Waseca Public Schools to deliver quality education at a reasonable price while being viewed as a premium choice for teachers and asset to that enhances the City and County of Waseca.
Quality Education - there is a reason we choose Campbell's Soup over the Hy-Vee store brand - it is consistently higher quality. Quality does not always equate to higher costs - "bed and breakfasts" in many cases provide a higher quality sleep/stay experience than the 5 star hotel. Quality is also subjective and depends on which attributes you are looking at - core curriculum, college prep, athletics, school atmosphere etc. My proposal requires that the district focus on the core educational components of Reading, Communication and Math. Everything else is subordinated to those three disciplines. Everything.
Reasonable Price - another gray term, reasonable to me, you, and the State of Minnesota are all very different things. So as I define it here reasonable price is: state funding = per pupil education costs + facilities and administration + cushion. Additionally there is: transition costs = additional levy. So while I do see a need for an additional levy to get the district from where it is to where it needs to be that number should be well defined and of limited duration. While the levy request will be the center of conversation the crux of the strategy lies in getting the per pupil education and facilities and administrative costs low enough that state funding covers them without a need for a levy - this will have an up front cost.
Premium Choice for Teachers - If you are committed to #1 and want to accomplish #2 you must create a district where teachers are viewed as talent. Not coddled, not handed the keys to the kingdom but recognize they are to education what Brett Favre and Joe Mauer are to their respective sports. If the district shows a commitment to quality education we will attract talented teachers. The flip side of that coin is that teachers of lesser quality will be passed by. This is a critical point and none too simple to manage.
Be an asset to the City and County of Waseca - the Waseca School District is not only responsible for educating our children but it also Waseca's second largest employer and in many cases the Waseca Blue Jay stands as our community's ambassador. The district needs to leverage and enhance these qualities. Improving our schools improves economic development and attracts new families. While there is no doubt that the City and County already realize this there is a need for the three to come together on common purpose.
So that is the vision I see for the Waseca School District, you may see a different vision that will lead you to other recommendations for dealing with the budget - I welcome your thoughts and suggestions. In the end however the School District needs to decide what it wants to be and communicate that to its students, teachers, taxpayers and the community. While the district excels in many ways it has failed in this respect and the end result is failed referendums, fiscal distress and a diminished reputation.
I know a gentleman that was opposed to the last referendum (he also doesn't care for my Converse sneakers - so his judgment may be suspect) that seems to be more open to a referendum this fall. What is the district's sales pitch? What is their plan? I would wager that if you can offer him the right value proposition his vote can be won, along with many more.
Non education related notes:
Coming into Waseca Saturday afternoon I spotted Council Member Clemons digging a stuck motorist out - thanks for being a good person John. I enjoyed serving with you.
Steve Conway - it was nice to meet you on Sunday, I enjoy your blog and your passion for local sports!!
Made the final table of an online poker tourney last night and exited in 5th when my pocket Aces fell to an improbable flush.
Somebody stole my shiny from my last post...actually it was prudently censored by the editor, it probably crossed the line of good taste, but if you are really interested search for Dayjoborchestra on youtube.
All right - I got this in the mail yesterday - Waseca's own, and fellow WCN blogger is going to be at Center for the American Experiment luncheon in St. Paul to discuss trimming the budget. I definitely will be going and am wondering if anybody else would like to carpool/caravan. I am thinking it would be even better if we could maybe swing by the Capitol and visit our new Senator and Representative Kath to get their thoughts on trimming the budget as well. Shoot me an email at matthew.johansen@gmail.com if you are interested.
The best band to ever come out of Minnesota is playing at Busters in Mankato tomorrow night (sorry Schmojoes).
Thoughts on the Greek monetary crisis from Mises.org:
"For the member states in the eurozone, the costs of reckless fiscal behavior can also, to some extent, be externalized. Any government whose bonds are accepted as collateral by the ECB can use this printing press to finance its expenditures.[2] money bids up prices throughout the monetary union.
Each government has an incentive to accumulate higher deficits than the rest of the eurozone, because its costs can be externalized. Consequently, in the Eurosystem there is an inbuilt tendency toward continual losses in purchasing power. This overexploitation may finally result in the collapse of the euro.
Any tragedy of the commons can be solved by privatizing the specific resource. But instead of privatization, governments generally prefer regulation.
Such a regulation was installed for the European Monetary Union. It is called the Stability and Growth Pact, and it requires that each country's annual budget deficit is below 3% and its gross public debt not higher than 60% of its GDP. Sanctions were defined to enforce these rules.
Yet the sanctions have never been enacted and the pact is generally ignored. For 2010, all but one member state is expected to have a budget deficit higher than 3%; the general European debt ratio is 88%. Germany, the main country that urged these requirements, was among the first to refuse to fulfill them."
Now consider the US fiscal situation - deficit and debt - along with two failed US Treasury auctions in the last week and there is plenty of reason to get worried. Bernanke will surely inflate his way out of any large scale mess (a tool not available to Greece). In the end the common pays the price for inflation. There is a reason that you are seeing so many commercials for people who want to buy your gold...
Greetings all! I am glad to be back after a brief hiatus and hope to offer a number of posts over the next couple of weeks on all thats going on in Waseca and the nation. We live in exciting times!
To ease us back into the battle of common sense vs conventional wisdom I offer a few random bullets:
President Obama's 2011 budget calls for a deficit equal to 8.3% of GDP. Think about that for a second. The president is proposing that we borrow 8.3% of the nations total economy. Total spending is $3.8 Trillion while income is a $2.5 trillion...now the US has not had its financial house in order for quite sometime so I am not expecting modesty but this is absurd. How can Obama confront the evil risk taking banks for financial skullduggery from this position?
Highway 14 pothole repairs lasted all of 2 weeks. I somewhat understand the dynamics of deteriorating roadbeds and the impact of weather but this is Minnesota we must have something better than that.
Senate 26 campaign was definitely interesting and well contested by all three. I will devote a post in the next couple of weeks based on my view as the treasurer for Mike.
I did attend Mike's swearing in ceremony in St. Paul a very wonderful time, plenty of wonderful Waseca folks there supporting Mike.
I look forward to a new birth at the Old Town Eatery. I have enjoyed that restaraunt for many years - was easily my favorite lunch spot - I am going there on Friday for lunch and you should too - pass it on.
I love the snow this year- city and county have done great jobs on keeping up with snowplowing.
The Letterman, Oprah & Leno was by far the highlight of the Superbowl - other than knowing that the Vikings would have won by at least 3 touchdowns is that idiot Chlildress just would have went for 2 on the last Viking touchdown in the NFC Championship game.
The Citizens United case will unleash a ton of money into politics and will push the American electorate to that amazing point where politicians are elected/relected/unelected based on performance rather than soundbites, party affiliation and incumbency.
I have much more coming in the next few weeks, we shall tackle enviornmentalism as religon, my previously promised education solution, campaign finance and sharpen our focus on local politics.
As a final note I would like to say thank you to the city of Waseca. A little over a year ago my three adopted boys arrived here from Texas, they have been made to feel welcome by so many of you and it is greatly appreciated. The boys have become Wasecans and they love it.
Obviously an interesting week in local/state politics. First things first I am the Treasurer for Mike Parry's State Senate Campaign so expect a little bias in my commentary.
I wish both Roy and Mike the best of luck in their campaigns. Roy has shown that he can be a leader and rally the troops when needed. Mike's strong suit lies in communication/sales (whether it be radio spots, pizza or ideas). Roy has the patience of Job and that is needed at the state level. Mike is never a shrinking violet, you know he is in the room, you know what he wants and why he wants it. They both have other great qualities that will serve them well but I think it is Mike's confident take no prisoners approach that will serve the Waseca district the best. The non metro contingency is often beaten back by the polish and cohesion of the metro legislators. Mike will be a vocal proponent for outstate needs. Good luck gentlemen!
On to other things (but I am sure we will visit on this again before the election Jan 26)
The Waseca School Boards (more precisely Keith Hiller's) proposal to bring TEAM back into the district is interesting. There are redundant costs that create wasteful spending, neither party is being wasteful - just paying for identical resources that could easily be shared is not efficient. To me the interesting question is if you are a TEAM supporter wouldn't you want that approach shared with other students as well? Stated differently what if the merger were seen as TEAM absorbing the district? On a related note I have been working on my "Widespread Panic Education Solution" for a couple of weeks now and hope to have that posted prior to the New Year - yep, I have all the answers.
I read a great article about banking - the jist was that banks have moved from lending primarily to businesses to devoting more of their assets to consumers. Business debt is more productive in that is rolled over several times a year as a business cylces - loan proceeds are used to by inventory, finished goods are sold, debt is paid down begin again. The purchases are capital purchases that add to productivity. Consumer debt is used for finished goods and the cycle ends, the debt stays on the books longer. Banks are able to hold the debt for longer terms because the FDIC program protects banks from bank runs. No bank runs = less need for liquidity = higher fractional reserve lending = higher leverage= too big to fail. Total bank assets have more than doubled in the past decade while business loan totals have only gone up 25%. No we find President Obama calling all the "Fat Cats" on to the carpet for following the road that the Keynesian road (see excessive saving at the link) that has been advocated by the Democratic party (brief rant - if anyone tells you that colleges do not have an agenda when they teach students please see the late Paul Samuelson's quote "I don’t care who writes a nation’s laws — or crafts its advanced treatises — if I can write its economics textbooks". Paul had an agenda to advance Keynsian economics and was very successful as his text is the text of choice at most public colleges. This leads to a whole generation that was taught a slanted perspective that has led to our current economic straits. Admittedly there are other texts that offer their own take but Samuelson's quote is a warning for us all) for decades.
I have to admit the whole health care debate has dampened my spirits lately. So many bright folks in Washington and they seem to be racing for the mediocre (and wrong). It would be like going out for dinner with Emeril Lagasse and Bobby Flay and they say "lets go to Old Country Buffet". This is America give us a little spice!
That is all for now - don't worry I have something shiny for you.
Happy Thanksgiving to everyone and welcome to Widespread Panic,
While it seems rather counterintuitive I would have to say that we are should be remembered as one of the greatest periods in Waseca's history. While the sports scene had been phenomenal and the musicscene is great it is much bigger than that. What makes this time so great is that there is a groundswell of change that has overtaken our community. Some of it is normal constructive change, much more is the result of reacting to outside forces that have reshaped our world.
As I look around I see the institutions that have made this city our choice to live, work and play - the place we chose above all others, those core institutions are changing. Our employers, our schools, our churches, community organizations are remaking themselves to deal with the reality of 2009, but much more importantly they are preparing themselves to deal with the realities of 2010-2019.
I am excited most by those that are going additive changes - those institutions that are asking what is our mission, how do we accomplish it, what do we need to make it happen. Others are going about reductive change, what do I need to cut to get to my number. Both ways can be successful - but only one method moves the ball down the field. The truth is when you are at the bottom or at least a low point the cost of change goes down dramatically. There is no better time for a new hairdo then when your boyfriend just dumped you, no better time to start your own business than when you lose your job, no better time to learn how to swim than when you fall over the side of the boat. It would be great to take a snapshot of where we are today, a copy of the roadmap that folks are putting together to move themselves and us down the road and throw them in a time capsule for 20 years, I suspect they will clearly show this positive pivot in action.
Roy had a great column in last weeks paper about dealing with the tough issues facing us and he was right when he said that some will do the heavy lifting and others will stay home. My nominations for this weeks heavy lifters are Larry Thompson, Brooke Halla and Father Marty even if he did sing Iron Man when I asked for Freebird (...sorry for the inside joke). There are also many unsung heroes who are rebuilding there family budget at a fraction of what it used to be, there are those who are taking on a bigger load at work, and those who let another car out in front of them simply because they realize we are all in this together. Do what you can and take pride in the collaborative work that is being accomplished.
We all know that this Thanksgiving will be a little more introspective than most as we struggle with where we are or appreciate what we have just a little more because we understand that it is much more fleeting than we ever suspected. But I challenge you all to spend 5 minutes considering those long standing institutions in our community - our churches, our schools, our employers, our government our families. Remember how they have stood through much worse trials than this before and take solace in the fact that they are what have held us humans together, enriched our lives, shown us the path through the ages. Give them a plug as you bow your head before the turkey starts flying.
First off it is clear that my prognostication skills are sub-par at best, but anyone in my fantasy football league can attest to that. I did not see that level of turnout coming - I offer a huge round of applause to the citizens of the district for turning out in such huge numbers!
The huge buzz in the WCN comments section continued through the day - the level of involvement from both sides is another testament to citizenry of Waseca. Great thoughts, a few needles and already efforts being launched to deal with the new reality (or is it the same reality - just confirmed via vote?).
A couple of my thoughts:
I had a nice conversation with Cathy Hoy, while not excited about the outcome she is ready to go to work to make the schools function at the funding level we have. Her continued enthusiasm and drive will be crucial - I suspect that is true of the other board members as well. I shared my thought of the board teaming up with Waseca's finest community group to brainstorm and implement changes in the school system, I later had a chance to speak with the president of that group and he was enthusiastic to help and was going to take it to the board - I suspect that this will be HUGE for Waseca!
One asset that the district has that will be crucial is John Huttemier. I had a chance to talk with him for about an hour at a referendum meeting and was so impressed. He spent 90% of the time listening and processing - when he did speak his knowledge of education was very deep. He has innovative ideas, is a critical thinker and tremendous enthusiastic passion. I see him as having the ability to build the consensus necessary to implement the changes needed to deliver the same high level of education and services. So I lobby the board to place him in a position to lead this effort.
My Libertarian rant - While I support teachers unions and credentials I do not support unions being afforded greater rights than other employees to dictate how an operation works and am definitely against state mandated credentials. Given the groundswell of support from online commentors to donate money to the district I suspect that there is equal or greater willingness to donate time in the classroom, coaching and whatever else it takes to maintain the high level of excellence in Waseca schools. What prevents them? Union contracts, and credentialing malarky. So much talent turned away at the door because state and national legislators have bowed to special interests in the name of protecting the public. A fie on all of them. This town is filled with engineers and accountants that would love to teach a section of math. Lots of folks that would love to teach an art or shop class and might even be more qualified than the teachers on staff but are stymied by silly bureaucrats.
My Libertarian ray of hope - a few years ago I was seriously considering a Math Monkey franchise. I suspect that as the gap between the level of education demanded by parents and what is offered by the state grows the private education market will flourish. Hopefully to the point where the state gets out of the business all together. The private market is not just businesses it includes home schoolers, foreign language clubs, boy scouts, soccer leagues, as well as places like Creative Hands and so much more.
Back to the funding issue - had the state kept funding at same level or even increased it through increased property taxes (or other spending cuts) I wonder if Waseca residents would have been concerned with the level of funding to our district. It would still be our tax dollars, the increase would have just been disguised a little better. That is the nefarious nature of government the farther away they are the bolder they act and the less we scrutinize. Give us back the 9th and 10th amendment damn it.
The flip side of the coin if the referendum had passed and then Pawlenty's replacement restored funding in 2011 the district would have been in the catbird seat. My understanding is that while the referendum would allow the district to levy at $1300 per student that can levy below that amount. Perhaps that topic should have been explored addressed a little further - along the lines of "we may need $1300 in years 4-6 but we will cap the levy at $850 in years 1-3". I don't know that it would have swayed enough voters but it may have come across a little more in tune with the economy.
One more thought - the school district owns Trowbridge park. Clearly it is not essential the districts mission of educating students. What would be the community response to the district offering the park for sale? I see this as being very different from Maplewood, and even in line with the vote on the referendum. I doubt that the city is in the position to purchase it - and using tax dollars to purchase it would be an end run.
Well if you bothered to read all of this I thank you. I encourage you to share some feedback in the comments, let me know if I am a quack or if there is a topic you would like to start here. We are not bound by news worthiness, or subject - so if you want to talk poker, music, family, religon, swap Iowa jokes or just about anything else I am always up for it.
In advance of tomorrows vote I present the first (and last) non-annual Referendum Awards
Strategic Planning Award – goes to the school board for holding the big enchilada (6 years $1300 student) referendum in an off election year.
Best Sign Award – Joel Groebner
Best Advocate – Todd Zimmerman narrowly beats out Randy based on quantity.
Best Opponent – Dan Cunningham – He is also a lock for my citizen of the year award, nobody in Waseca has worked harder at bringing about change than Dan has.
Best online comment in favor of: neversaynever 10/28/09 “After reading and listening to many people express concerns on how to vote, I had to add my feelings. I worked in the construction idustry for over 17 years. When the economy crashed so did my job. After appx. 80 applications and resumes sent, I have realized without a good education even the smallest of employers wouldn't consider me. Strong school systems are the foundations for our children. Good education=good decissionssports=challenges=goals=successsame goes for all that is offered in our schools. Lets give our kids a chance. I will vote yes for great teachers to help guide my children to a better future. As far as my taxes, I guess my kids won't get a cell phone or go to the mall. I think if we all(most of us) look deep that 25 to 50 dollars can be found by just staying home and having a little family time once or twice a month.”
Best Online Comment against: leafturner 10/26/09
“Inflation around the corner or is it already here?”
“Our students will get a good education with or without the
referendum. IT'S THE LAW.”
“I am trying to close the zipper on my purse, but to many hands in the way taking my money out.
Thanks for making us spread the wealth that we never had.”
Levy Prediction: Passes by less than 8% - 2300 votes cast
Where will we be in 6 years prediction: State funding will be up 15% and levy request on the referendum will be $900 for 4 years
What categories did I miss? Was onevoice sunubbed? Your predictions?
I normally avoid being a cut and paste type contributor but sometimes the words of another are so spot on that they bear repeating – in this case I feel this article is worth repeating in its entirety.
The reason this article seems important to me is that healthcare and education are both on the same treacherous path – in so many places you can replace the term healthcare with education and the statement rings just as true. So do I advocate privatization of education? 100%! You should never be forced via taxation to pay to educate my children. I choose to have children and thereby accept the responsibility to pay for them. While that is an easy academic conclusion to come to we are stuck with our decidedly non-academic real world where you do pay for my children’s education (not really, they attend Sacred Heart…but they will graduate into the Public School System), and I pay for yours. So until we break free from socialized education we still have a responsibility to make it the best that we can. To that end I support the referendum and the opportunity it brings for reform
Congratulations to Larry on being chosen for the open Council seat. He was a great person to work with while I served with him and will be a great advocate for Ward 1, business owners and fiscal conservatives. I admire his knowledge, savvy and communication skills. And for those who conjectured that this will bring about a new era of water skiing on Loon Lake I suspect that you have not really paid that close of attention to how Larry works on the council.
Thank you to all who wished me well and supported me. I appreciate your support and am glad that I was able to earn your trust. A couple of people have given me the "sorry that you lost" speech and while I appreciate the consideration I really don't feel bad about not being chosen. Sure I would be happier to have been selected but I did not run to win or to beat Larry, I ran because it is something I enjoy doing. You never feel bad for a fellow who went fishing all day and didn't catch anything. He spent his day doing what he loved. Win, lose or draw I enjoyed being part of the political process. There will be many more opportunities, whether it be attending rallies, writing a blog or running for office at some other time.
On to other items - Clear Lake - Gaiter Lake diversion project. I wish the council wisdom on the process. I think that if the project would have moved at a normal speed when it was introduced several years back it would have passed and been implemented with strong support. Any project that sits on the table for too long begins to die for lack of momentum, that has nothing to do with the merits of the project just a fact of political life. For a much more dramatic example see the financial regulation overhaul bill that looked inevitable in the face of the crisis but is all but dead in the water now.
Health care reform - see here for the implications of earning money under the Baucus bill. In a nutshell for a family at the poverty line there is almost no incentive to make more money as the reduction in benefits and tax breaks takes 70 cents of each additional dollar you make.
Have you been following the Pvt Hafterson ordeal? A young Marine from Minnesota deserted his unit claiming post traumatic stress disorder from the atrocities he saw in the war. He was then taken into custody by the Marine Corps, the latest is that he never experienced the horrors that he claimed caused the PTSD. It has been an amazing trip through what war can do to a person. A firm salute to all the folks serving (and backing them up from home) and salute to all those trying to bring them home. 8 years in Afghanistan and still so much to be done.
But hey - Obama has won the Nobel Peace prize! I am sure that it is because he ended the two wars we are in...eh?...whats that?...still going strong in both?...expanding one of them?...okay, it must be for closing Gitmo...oh, not quite done with that yet...what do you mean he has not even started yet?...okay it is because he is backing away from Bush's bellicose nature...oh, I see he is sabre rattling with Iran again. Why not give him the Nobel prize for medicine and economics as well?
Below is a mish-mash of thoughts and links with no necessary connection other than my need to share.
7 Things to read on a regular basis:
Marginal Revolution - a great blog by two economists from George Mason...I know it sounds dull but they cover a lot of important, entertaining and downright strange topics.
Bluestem Prairie - a progressive blog focusing on Southern Minnesota, great writing and easily the best coverage of state and national politics from a local perspective
Mises.org - sorry more economics, this being the Austrian school of economics which has captivated me - they do have a daily email service <http://mises.org/content/elist.asp> to feed your need.
New York Times - especially Paul Krugman and The Ethicist
This chili - I have not made it yet, it sounds awful good though.
Buzzard Billy's in LaCrosse - great cajun/creole
Famous Daves - Famous Salmon and flat bread, quite possibly the modern equivalent of manna from heaven
Kwik Trip Chicken sandwich for breakfast - quick, cheap and I am sure very nutritious.
2 Places to visit within a few hours drive:
Lark Toys in Kellogg - if you have kids or if you were a kid in the last 90 years this place is incredible
Grotto of the Redemption - West Bend Iowa - yes you have to go to Iowa but this makes the trip worth it.
3 Things to avoid:
Cholera
Spinach
Anything released my Metallica after 1992
Follow up:
I did receive a form letter response from Tim Walz on my most recent email to him (the first must not have been worthy). Here is a good piece in support of the Baucus bill. I do not believe that the cost curve bending measures will work nearly as well as predicted and while the collabortive doctoring idea works great at the Mayo Clinic - they have a whole different pool of resources to draw upon than most medical facilities. Creating a cookie cutter approach = FAIL, even if it is a great cookie cutter.
Misc:
I have submitted my application to be considered for the Council seat vacated by Joe Burke.
The Twins are not worthy to make the playoffs, the Vikings are legitimate Superbowl contenders.
I bought the new Pearl Jam cd (yes occasionally I will by old school stuff like cd's - but iTunes is still way better) haven't listened to it yet but will offer a review at some other time.
So I got a mailing from Tim Walz tonight that reads "Congressman Tim Walz wants to hear your opinion on health insurance" - well that's good because I have an opinion, I did send him that opinion twice in an email and spoke to one of his staffers for about 20 minutes at his town hall meeting about my opinion. I am glad he is still open to ideas.
Great! The mailing even has a little card that I can mail back to Tim with my important thoughts! Lets fill it out together shall we? 1. Do you agree with those who believe that access to affordable health insurance is the right of all Americans? Or, do you believe it is a privilege only for those who can afford it?
Okay, put down your pencils for a second - let's not answer yet. Those are the two choices I get? Declare affordable health insurance a right or say that it is a privilege for fat cats? Seems a little narrow to me. Okay lets try an answer.
No, Tim, affordable health insurance is not a right. You cannot have a right that compels somebody else to do something against their will. There is no historical basis for it, it is simply something that has been made up in the last few years. A right is a powerful, dare I say, sacred notion — we cannot apply the status of right to everything that is nice to have. Oh wait, we can't write all that — Tim only allowed us three 2.75" lines to respond to his question. Lets move on for now.
2. Do you believe our health insurance system is in need of reform? Or, do you believe it works well enough as it is?
Another question with two narrow choices phrased to elicit the answer Tim wishes to hear? Again just a small amount of space to write my answer — let's give it a shot...
Tim, our health insurance system is made up of over a thousand insurance companies, Medicare, Medicaid, millions of people who self insure and thousands of companies that self insure for their employees — how can I declare the system in need of reform? Millions of people are very happy with their health care insurance, millions are not happy and most don't have a clue. (we wrote really, really small and fit all that in there)
3. Do you believe we should pay doctors for the outcomes of the medical care they provide or the amount of services they provide?
Okay, that seems a little better — still no room for a well thought out answer that probes at the heart of the economic structure of the doctor patient relationship but at least he didn't pigeon hole us quite as bad this time.
Tim, we live in a free market society we should be free to choose to pay a doctor for outcomes or for services provided and doctors should be free to charge for outcomes or for services. That is the very notion of our contract based economy. Ideally our congressional representatives would be working tirelessly to tear down government regulations that hamper such mutual interaction
4. What is you insurance story? I want to hear from you.
Again only a couple of lines, and of course I have already shared this story but here we go.
Congressman Walz,
Thank you for your service to our country and for representing me in Washington D.C..
I have a very passionate interest in health care reform. In January of this year my wife Stacy and I along with my daughter Josephine and son Isaiah adopted three wonderful boys from Texas. Eddie, Davit and Jose have been a wonderful addition to our family and have fit in quite well.
The boys are the children of illegal immigrants, their father was not a nice person and is either back in Mexico or in prison. Their mother died just a few years ago of a condition called Alports disease. Alports disease attacks the kidneys and eventually people who have this disease will need lifelong dialysis or a kidney transplant in order to survive. The boys father told their mother that if she sought treatment she would be deported, this led to her death.
All three boys have been diagnosed with Alports syndrome, a precursor to the disease. Last month they visited the Mayo Clinic and we received the news that they would likely experience kidney failure somewhere between their teenage years and 30th birthday. The oldest boy, Eddie, already wears hearing aids; hearing loss is common in people with kidney disorders. He is still happy and well adjusted he just has to remember to take them out before swimming.
We are truly blessed to be well insured, I work at Brown Printing Company and they have great insurance. Additionally the state of Texas and Minnesota have an arrangement to provide Medicaid insurance for all children adopted out of foster care. So right now for us the insurance and health care systems are working well.
But then on Monday morning I read an article in the New York Times that made break down in tears — as a former Marine I hate to cry and I hate admitting it even more. The article tells of a young woman with Alports that was able to get a kidney, donated by her mother, transplanted into her body so she would be able to live free of dialysis ($9300/month). Medicare paid for the transplant ($125,000) and covered the medications needed to keep her body from rejecting the kidney ($1000-$3000/month). But sadly, Medicare only pays for 3 years of drugs. The young lady did her best to stretch out the pills but eventually her body rejected the kidney and she went into a coma. Her biggest pain is that it was her mothers only spare kidney that was destroyed. Why does Medicare only pay for 3 years of medication? It costs too much. At some point in time congress made the decision to stop paying for the drugs at 36 months - not based on outcomes, or service or even best practices - just based on cost. Happily the young woman has had a second transplant, again covered by Medicare, and will get 3 more years of drug coverage and then...
Congressman Wilson of South Carolina called President Obama a liar last week, I hope you too have the courage to call the President a liar when he says that death panels are a myth. Under a single payer system when a line is drawn on coverage, which congress has already shown they will do, those who cross the line are damned.
My wife and I have two kidneys between us to share, I have hope that if there is a need that Isaiah or Josephine will step forward to help their brothers in a time of need as well. My brother has already made the offer. Every financial decision my wife and I make is made with an eye towards making sure we can cover the costs of transplants and medication that they boys will need. But it is awful damn hard to stomach the thought that when someone literally gives a piece of themselves that it can be destroyed for something as trivial as money. I use the story of my family not as a plea to solve my problems but as a backdrop to workable solutions to deal with health care.
First - move the health insurance tax incentive from employers to employees. Brown Printing Company has wonderful insurance but they buy a policy for my family, a young person right out of high school, a wise and kind man who just turned 60 and all other shapes and sizes. They cannot tailor the plan to suit us all, in the end they buy a group policy that, while having employees in the front of their mind, is based in their self interest. Let me buy the policy for my family - I know what my needs are better than anyone else. The biggest benefit is continuing coverage, if I am buying the coverage I can cover my children even after they reach 18. Insurance companies have less of an interest to drop sick people when they can count on premiums paid over a longer period. Most importantly it attaches incentives and disincentives much closer to health care consumers.
Second - end patents on drugs. Currently drug companies get 20 years of exclusivity from the date a drug is invented, given that it might take up to 8 years to get the drug approved that means a drug company must capture all the costs and profits of a drug in 12 years. Take away the patent time lines and the drug can be monetized over a much longer time period - this will drive drug costs way down. Generic drug makers will be a thing of the past - Duncan Hines and Betty Crocker do not have a patent on chocolate cake mix - do you by the store brand? Neither do I.
Third - tackle tort reform, we all know that malpractice insurance only constitutes a small portion of the health care economy but fear of a practice ending lawsuit changes the way health care is delivered - not to the benefit of the patient.
Fourth - Congress can finally use the interstate commerce clause for what it was intended for and prevent states from restricting commerce. There should be no barriers between the states on insurance portability.
Fifth - Require Medicare and Medicaid to pay market prices for services rather than shifting costs to others.
That, Mr. Walz, is my health insurance story. I don't suppose it fits into the questions on your questionnaire, it doesn't fit with President Obama's speech, it doesn't fit with Republican head in the sand approach. It is just my story. As I submit this to be published on the Waseca County News website I will submit it to you again. I hope you read it, I hope you read the story in the New York Times. I don't want you to solve my problems, I'll do okay, I'll make sure my boys do well. I ask you to consider the options I laid out above for every other parent with a child facing the same uphill climb. Universal health care sounds good on paper, but none of us live on paper. The real world failures are all to real.
Questions...
If we were to move to the single payer system how does it save money as its proponents believe ? Is the savings the total value of operational costs (employees, technology, janitorial services, etc) + profits of the insurance industry? According to the census bureau there are 6.5 million people employed in the insurance industry - 12% of industry sales is health care insurance - by extension that would be almost 800,000 employees in health insurance. How many of those would be moved to the rolls of government employment (the rest I guess become unemployed...) at what cost? But hey, the real savings comes from the profits right (I'll save you the click health insurance companies profits run close to 5%- far less than Wal-Mart)?
Outside of the single payer debate - How does Obama's proposed market differ from the actual market? Are we not all free to go to the market individually or collectively for insurance now?
To beat an old horse...is the federal government capable of running even a small portion of health care? Can we have an expectation that the government portion is more effective than Medicare and its unfunded costs to the taxpayers? Shouldn't the first step be to for the government to put its financial house in order before taking on more? What about fixing social security? Show me you can do what you have already promised before you take on more.
Diatribe...
The fallacy of 50%+1 and its effects
It is easy to trace the current health care debate back to the policies of Bush. Had Bush not set forward his my way or the highway 50%+1 mandate the resulting shift to Democratic control would not have occurred. Truly the proposed health care reform is the unequal and opposite reaction of the empire wars and is likely to cost our nation just as much if not more.
But the truth is there was no 50%+1 then and there is no 50%+1 now. 80 - 90% of individuals, when considering both the wars and health care reform would come to a very different course of action than the nation did/is taking. The neo-cons used jingoism and fear to promote nationalist fervor to support the wars. The wars were tied to party politics and tax cuts on their own merit they would not have stood. The question we were given is do we go to war or let the terrorists win - clearly there are number of alternatives not presented in the question. Keep alternatives out of the question and you can move more people.
Once the pixie dust wore off the middle moved in reaction to the failures of the Bush administration. Now Obama is using the same tactics as Bush to promote a war on health care costs. The threat is no less real (highly exaggerated for purposes of the discussion but real nonetheless) the solution is partnered with lofty ideals like social justice, combating greed and putting us on par with the rest of the civilized world.
So here we sit with a disproportionate response to a problem that we can never solve. People still hate the US for many reasons (legitimate or not) and will attack us or others in the future. The world is no safer with Saddam dead, a new Saddam has taken his place - in Venezuela, in Iran, in other places off of our radar. Al-Queda still exists, they have moved to Pakistan, Somalia, they are in Sudan. Their successes and failures have inspired more groups with different ideologies that are no less dangerous.
Likewise 10 years after the health care solution is active we will still have disease and unequal access to health care. Sure the cost structure changes appearance but total use of resources necessary to provide the level of health care that we want in the US does not change.
Currently our exploits in Iraq and Afghanistan leave us exposed militarily and have taken a massive economic toll on us. Our war on health care will be just as much a folly with no resulting gain.
The Tea Party activists share so much in common with the anti-war protesters, Obama is the new Bush. Pragmatism has left our nation.
Good Day Widespread Panic readers – below is my first discussion with Cathy Hoy and Randy Zimmerman on the need for the proposed referendum.
I have more questions and, based on what I see here, some comments that I will include in the near future. I encourage you to read on, and if you have questions send them on to me and I will see if I can get some answers.
Thank you very much for taking the time to answer some questions I have about the upcoming referendum and the Waseca School District finances. I hope that through this process I can gain and share the knowledge to make an informed decision in November. To be upfront I would say I am not inclined to vote in favor of the referendum today but admit that is more out of ignorance than opposition. With those formalities out of the way let's get down to business.
I have attached and will make available on Widespread Panic a spreadsheet of revenues and expenditures for the Waseca School District along with two others (Fairmont and Thief River Falls), chosen because of their close match to Waseca in student population. The sheet covers finances for the fiscal years of 2005 - 2008 and is pulled from data posted by the state.
First some observations - General fund revenues and expenditures in total seem relatively flat and in each year for the General Fund revenues (as categorized in the state reporting format) show a surplus:
Based on this it looks like the education portion of the District is doing fine – where is the surplus going to and what is driving the need for the increase in the levy?
Ok Matt here it is I am hoping it is clear as mud and I managed to answers your questions. Let me know how much more convincing I need to do for you to commit to our technology committee
Fiscal year Revenues Expenditures Surplus/ (Deficit)
2008 $20,965,903 $21,115,744 ($149,841.00)
2007 $21,321,192 $21,670,170 ($348,978.00)
2006 $20,985,690 $21,552,760 ($567,070.00)
2005 $20,049,096 $19,394,344 $654,752.00
The totals on your original sheet did not include lines 11-15 for Expenditures.
The only surplus year was in FY 05 this would have been the first year of the current levy.
The dollar amounts above include all General fund revenues.
The General Fund is made up 13 Categories they include:
• Staff Development (RESERVED)
• Deferred Maintenance (RESERVED)
• Health / Safety (RESERVED)
• Severance Pay (RESERVED)
• Operating Capital (RESERVED)
• Learning& Development (RESERVED)
• ALC (RESERVED)
• Gifted & Talented (RESERVED)
• Basic Skills (RESERVED)
• Safe Schools (RESERVED)
• Student Activities (RESERVED)
• WCOC (RESERVED)
• Daily Operations (UNRESERVED)
The accounts in purple are reserved accounts meaning, the dollars in the reserved accounts can only be used for that specified thing.
So for 2007-2008
The general fund (daily operations the unreserved portion of the general fund)
Revenue Expenditures Surplus / (Deficit)
$17,549,860 $17,846,060 ($296,200)
The numbers for 2009 have not been posted to the state website – how do they look?
Our Audit will not be complete until November 2009
We are projecting to have 13 operating days left in our fund balance
(The recommend fund balance is approx 35-45 days)
Is it correct that the referendum is for fixing the FY2010 budget? If so what are you being told are the State and Federal funding levels that you will receive?
The Levy is not to fix the FY2010 Budget. The proposed levy will not go into effect until FY2011
State funds = 72% of our budget
Federal funds = 9% of our budget
We will be receiving flat funding from the state for this year and next (meaning no new dollars)
The state has always done something called a “FUNDING SHIFT”
In previous years it was 90% -10% Shift meaning we would receive 90% of our state allotted funds in the current year and the other 10% the next year. The FY budget will account for 100% of the state dollars even though they come in shifts.
However this year the states shift consists of 73% -27% so we will receive 73% of our State funds in the 09-10 year and we will receive 27% in the 10-11 year.
Some more specific thoughts on the numbers in relation to other schools:
Administration costs in Waseca run much higher! In 2008 the costs in Waseca were $1,227,368 compared to $598,384 in Fairmont and $746,475 in Thief River Falls(TRF), the variance in the districts is the same across all four years. Why the difference? Has anything been done to push these costs down?
It is very hard to compare district to district. Due to the way things are coded for each district. There are different ways to “code” Expenses and revenues. There are some parameters that must be followed however some codes are the discretion /interpretation of the district and each district may code some things differently.
Under District level Administration. The following are included in the Waseca District:
? (7) School board members
? (1) Superintendent
? (2) Directors of instruction
? (1) Business Manager
? (5) District office staff
1. Payroll
2. Insurance / Benefits
3. Accounts Payable & Receivable
4. Mars coordinator and Accounts receivable
5. District office secretary
? Workers comp is paid from this account ($68,000.00)
? Director of Technology
? Technology assistant
? (4) building techs
(This portion is = to $517,000.00 it has been moved to pupil support services – this includes payroll, supplies, and major software purchases for the district)
REDUCTIONS from these costs are as follows:
$51,000.00 08-09 Directors of Instruction
$53,000.00 09-10 Eliminated Directors of Instruction
$45,000.00 09-10 Reduction in technology
We saved approximately $24, 0000.00 in 08-09 Due to putting our Work comp insurance out for bid and going with the most competitive rate with the same quality coverage.
That being said the reported District level Admin from MDE is:
$1,227,368.00 less $517,000.00 (technology move) = $710,368.00 less $51,000.00 (Cut DI)=$659,368.00 less $68,000.00 (Work comp)= $591,368.00
Teacher salaries spiked in 2006 and 2007 (FY05 $8,033,431, FY06 $9,008,310, FY07 $8,822,673 FY08 $7,959,347) the other districts stayed relatively flat over that period. Why the change? Where are they now? What does the union contract hold for future increases?
There are several factors for the so called “Spike” in teachers’ salaries
In FY 05 FY 06 FY07 the Waseca District participated in a program called “TAP” This program was a national education incentive fully funded from a state grant from the Milliken foundation.
The following are the breakdowns per FY of “TAP” money paid out. But remember it was a grant so we were 100% reimbursed on the revenue side for these Dollars. These numbers also include some dollars paid to Special Ed Teachers.
FY05 $697,000.00
FY06 $1,204,700.00
FY07 $589,600.00
Also another factor is that in FY 05-06-07 Waseca Public Schools handled Payroll for team academy.
The following is a breakdown of those dollars. We were reimbursed 100% from team.
FY05 $196,500.00
FY06 $229,500.00
FY07 $436,000.00
The board has verbally accepted that the teachers will work under the same contract meaning 0% increase in dollars on the salary schedule. The teachers that have earned their longevity and level of education increase will receive it.
Special Education costs also are much higher (Waseca $5,083,540, Fairmont $2,663,768 and TRF $2,634,500). Why are these costs so much higher in Waseca? It does look like State funding has been growing to meet these needs does that trend continue?
Waseca’s Special Education population is 15.6%
One reason for the high special Ed dollars is because we are the fiscal host to NRHEG, WEM, JWP & TEAM. Meaning, all of their federal Special Ed Programs run through our district. However their revenues also run through our district. And this is reflected on the revenue side.
? For 07-08 we reported $731,000.00 for the other districts
? We also bill Medical Assistance for the students who have MA. For 07-08 it was $205,000.00 also reported on the revenue side
? For 07-08 we were reimbursed $238,000.00 from the county for the WCOC this is also seen on the revenue side
Another portion of this is something called shared services.
Waseca holds the full contracts for
? Special Ed administration,
? Specialty services
o Autism,
o Speech,
o hearing impaired
o Psychology
o WCOC
Because we hold the full contracts the specialty services are fully paid by Waseca School District. However we bill NRHEG, Waterville, JWP, & team for their portion of the services so this again will be reflected on the revenue side.
Special Education Administration is shared with NRHEG, Waterville, JWP, & team. We pay the full amount but are reimbursed by the other districts.
Waseca’s actual out of pocket costs for Special Education Administration is 36% of the total Salary and benefits. The portion that Waseca covers is then reimbursed 100% through federal special education dollars.
Special Ed is Complex when it comes to State funding. First of all one of the most important thing to realize is that the state government and Federal government have set Mandates. Meaning you are required to provide a service regardless. Just because they Mandate you to do something doesn’t mean they are going to pay for it. It would be great if all mandates were fully funded but that is not the case.
For state Special Education the State of Minnesota contributes:
? 68% Salaries
? 0% Benefits
? 52% Contracted Services ( Occupational / Physical Therapy)
? 47% Supplies (Special student evaluation forms, teaching tools, assistive devices.
(The following dollar amounts are for example only)
EXAMPLE States Contribution Schools Responsibility
Student activities seem to be much higher than the comparable districts as well (Waseca $961,564, Fairmont $641,049, TRF $713,902). What are your thoughts on these disparities?
Again comparing is very hard due to the way each district codes there student activities.
For Waseca schools the student activities consist of the following (some examples, but not inclusive):
? FFA
? Camp Patterson
? Eagle Bluff
? Band Trips
? Choir trips fundraising
? Spanish trips
? Close up
These dollars are from fundraising, fees, donations.
Expenditures for 07-08 $439,511.00
$961,564.00 - $439,511.00 = $522,053.00
On the revenue side – income from local sources is divided into two groups: Property taxes and Other. The state offers this vague definition of other: Revenue from tuition, fees, admissions, interest earnings, rent, gifts, bequests and other miscellaneous local sources. Includes revenue from municipalities for tax increment finance, county apportionment, taconite homestead credit, iron range resource & rehabilitation board grants, taconite levy replacement, taconite general education aid replacement, taconite referendum, medical assistance revenue, revenue from private insurance providers, sale of materials net of cost, insurance recovery, and judgments for the school district. (See Note C) For Waseca the total other is $2,118,736 in FY08 (compared to $1,495,042 in property taxes) where exactly does the district get its “Other” funding?
The “other” funding comes from several other sources some have been briefly described above.
“Other”
? Participation fees for Student Activities (Clubs, Athletics)
? MA billing for Special Ed
? Team Payroll
? Rent from team
? Gate Receipts
? Athletic passes
? WCOC (county)
? Interest from accounts
? Gifts & donations
? Repayment from districts / team for shared services
That does it for this round of questioning hopefully this will help me and the readers and spur some more questions!!!
A whirlwind week in my world and a million things to talk about without time to do them justice.
I have two folks from the School Board answering some of my questions about the referendum and hope to report the whole thing back to you all next week. They are confident that I will be swayed and become an active supporter of the levy increase. The City Council has a bit of an easier job in that the budget is decided upon by the group (decidedly not easy) but once decided it is voted on by the council, the school board has to put the levy portion in front of voters which is no easy task. I salute all who serve and have served on the Board.
War - what is it good for? I take my stand here before you all and demand a withdrawl of all troops from Iraq and Afghanistan. Too many lives, time and money have been thrown down both holes. They both made sense to me at the time and were the right choice. Now considering the costs of staying and achieving an acceptable stability vs. leaving and each time it comes down to our best interest to leave. The gain is not that great, the loss we face each day is. Bring the boys home Barrack. We face a mounting fiscal crisis and have no effective defense against those who may wish to do us harm.
Council gives back water rate increase - thanks!
Great line about accountants from Alain de Bolton in "The Pleasures and Sorrows of Work:
In the wider view of the public, accountancy may be synonymous with bureaucratic tedium, but from close up, this particular conglomeration of numerical talents presents the observer with a case-study of the discrete charms of offices, with their intriguing blend of camaraderie, intelligence and futility.
Yep, thats about the long and short of beancounting.
For all the doubters of the Marketing Steering Committee, stay tuned - I'll have an update for you that I think will leave you pleasantly surprised.
I am off to Chicago for the weekend for a fantasy football draft and a Cubs game - should be a hoot and half.
Tony Cornish advised the readers of the Waseca County News to contact legislators about health care reform and he was right to do so. Based on recent reports that the Democratic majorities in the House and Senate may push through legislation on their own we may have to go back to Mr. Cornish for direct help.
By virtue of the tenth amendment of the Constitution individual states have the ability to nullify Federal laws. This was used to defeat Bush’s Real ID act and several other states have already introduced legislation to nullify nationalized health care.
As we start to see candidates for election to state office in 2010 start to make campaign appearances be sure to question their willingness to stop the unconstitutional takeover of our economy.
I will contact Mr. Cornish, Mr. Kath and Mr. Day to get there stance on nullification and report back to you.
And now for something shiny to look at…okay I admit it – that is just plain absurd.
I made it to the Walz town hall meeting last night - very fun and informative. The event was well attended, saw a Waseca council person and the spouse of a former council person - they shared a different view than me. The number one WEM Bucs football fan was there and TheSchmoejoes were sending out tweets from the floor with their thoughts. I got there at 4:30 and stood next to a line of Teamsters holding signs in favor of the HR 3200. I had a double sided sign:
If you don't know your hamate from your axilla stay away from healthcare
Freedom + choice = reform (also contained a number of my proposals to reform healthcare)
The sign had plenty of people stopping to talk with me and share their thoughts on the way in to the school. This lead me to decision point - do I go in and listen to the ranting and raving from both sides or engage people outside. I chose the latter, I spent the two hours outside of the school speaking with Teamsters, doctors, Republicans, Democrats, a Walz staffer and lots of ordinary people. I was pleased to find that everyone of them shared my thoughts on reform. Nobody that I talked to wanted the public option first.
A few of the doctors challenged my assertion that the AMA is a monopoly and while it is true that membership in the AMA is not mandatory and the states are the actual licensing authorities a quick review of their history proves that they have monopoly power (or ask your chiropractor...).
The Lyndon LaRouche gang showed up with their Obama as Hitler posters and created quite a scene, a veteran with Gulf War Syndrome was also very entertaining (not because of his condition - it was his passion and rhetoric).
The beauty of the whole scene was that about 1,000 people came together to discuss an important issue and advance their propsal for change - democracy in action.
Welcome to the introductory issue of Widespread Panic, home to
philosophical meandering through modern society's unending barrage of
catastrophe. With each episode we can try to determine if the crisis of
the day is indeed a precursor to Armageddon or a garden variety
nuisance. Together we should be able to solve each of the world's
problems in 500 words or less or decide to ignore them and focus on
small shiny objects that catch our eye from time to time.
Without any further delay a double dose of catastrophe on the docket for
August 20 - Waseca School Board meets at 5:30 to discuss the referendum
and Tim Walz holds a town hall meeting in Mankato to discuss health care
at 6:00. The men in the black suits sabotage my time machine each time I
get close to finishing it so I cannot attend both - what to do?
I have great faith in the ability of the Waseca School Board to face the
budget problem that faces them with or without the referendum and they
are very accessible people. I hope to ask my questions and be convinced
to support the referendum and share that journey with you here. Post
your thoughts on what you want the community to know and I will try and
relay some of those answers as I look for facts. I am a numbers guy and
so far I am not sure the numbers add up from what I have seen - the
School Board has seen a lot more than me, so let's open the hood on this
bus and see what is happening.
Tim Walz and his cohorts in DC have not gained my faith on health care.
They seem to be moving from single payer death panels that eat children
to Co-Ops. Co-Ops certainly do not sound very menacing but what are <http://www.washingtonpost.com/wp-dyn/content/article/2009/08/17/AR20090
81702965.html?hpid=topnews> ? Do they already exist (hint - think Blue
and then think Cross)
<http://meganmcardle.theatlantic.com/archives/2009/08/your_daily_omnibus
_health_care.php> ...)? What happens when a mismanaged Co-Op fails? I
suspect that the friendly national government swoops in to save the day
(Fannie Mae ring any bells?). Nope, Co-Ops are more of the same problem
that got us into this mess. Washington can take a few simple steps that
will reform health care:
* Break up the AMA monopoly for licensing doctors - increase
competition
* Encourage states to remove restrictions on insurers - increase
competition
* Move the tax break for insurance from the employers to the
employees - align the interests with where they should be
* Reform Medicare - the current system pushes patients to
specialists who like running tests (no gerontologists around anymore in
spite of our aging population ).
For a good look at the health care problem from a decidedly
non-Washington viewpoint go here.
So that means I will journey over to Mankato and make my voice heard in
that arena instead.
So enough of the impending doom here is your shiny penny
for the day.
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