Today we'll explore the WEAC insurance companies called WEA Insurance Group.

The WEA Insurance Group is composed of five organizations:

• WEA Insurance Trust
• WEA Insurance Corporation
• WEA Tax Sheltered Annuity Trust
• WEAC Member Benefit Trust
• WEA Property & Casualty Insurance Company

These organizations are used to provide coverages such as health insurance, dental insurance, long term disability insurance, long term care insurance, automobile insurance, homeowners insurance and tax-sheltered annuities.

This is a spectacular picture from the WEA Trust that was created in 1970 with initial capitalization of $5,000 that was provided by WEAC.  By 1977, this Trust had become the thirteenth largest health insurer in Wisconsin.  By 1989, it employed 140 people, and now employs some 500 people and serves over 200,000 public school employees and family members.

It, as is its parent, is the 800 lb. gorilla so far as insurers providing coverage to school districts in Wisconsin.  It takes pride in the ways in which it developed new coverages for its members and in its record of few member complaints.

Among the breakthroughs it claims credit for are these:

• The trust was the first in the state to offer a disability plan that replaced 90% of a disabled employee's income.  (Typical insurance policies offer up to two-thirds of the employee's compensation to encourage those who are able to return to work as soon as possible, and to help hold insurance premium cost down for employers.)
• The Trust was the first insurer in Wisconsin to cover transplants as a standard benefit.  (Such breakthroughs have had to add costs to these plans that caused increases in premiums to employers.  Most insurers were hesitant to offer such coverage unless and until forced to do so by state mandate since they would've been priced uncompetitively with other insurers.)
• The Trust health plan covered psychiatric and chiropractic services "long before the law required insurance companies to offer such benefits".  (Again, we see marketplace differentiation that made it nearly impossible for other insurers to compete for school district business while it made the employers pay more due to these increased levels of service.)

We discussed Jane Doe's coverage cost to the district in a recent Blog.  Jane's cost to the district was $19,279 during the most recent school year, and she paid another 3% of the premium from her pocket as her contribution toward that cost.  Given the coming school year and plan changes that have been made by WEA Insurance Trust, the cost to the district for the most comparable program will go up to some $22,400 for an increase of about 16% in its cost.  (This is contrasted with an average increase in Wisconsin for other employers of about 4% this year according to a survey by the Mercer consulting firm released today.)

That same announcement based on the Mercer survey pointed out that $1,000 deductibles are now commonplace across America.  I would be amazed if a single school district in Wisconsin could be identified that has such a deductible in place.  Premium sharing by employees is often done on a 25%-75% or a 50%-50% basis in Wisconsin's workplaces, but in Jane's case there is a 3%-97% sharing arrangement.  It is not at all uncommon for employees of firms with fewer than 50 employees to have no health insurance coverage provided by their employer today.  That percentage is in the range of 50% to 60% in Wisconsin today.

WEA Insurance Trust points to its success with the following statistics:

• Health plan enrollment was 138,024 for 2007, or 71% of eligible school districts.
• Dental plan enrollment was 149,961 for 2007, or 78% of eligible school districts.
• Long term disability enrollment was 60,063 for 2007, or 75% of eligible school districts.
• Life plan enrollment was 36,237 for 2007, or 46% of eligible school districts.
• Long term care enrollment was 21,251 in 2007, or 23% of eligible school districts.

This is what the insurance industry calls "penetration" of a marketplace, and it points to the dominance that WEAC has in negotiating on behalf of its insurance companies.  I have spoken with people who have attempted to compete against the WEAC/WEA Insurance Trust insurance programs.  They have made presentations to Boards showing significant decreases with relatively little in the way of plan benefit reductions and few are ever successful in getting the business.  The union dominates this world.  Some question why the teachers would permit this to happen since the premium costs impact their pay due to the QEO rules, but I suspect any teacher who would voice his or her concern might feel uncomfortable in his or her peer group as the result.  And, it is great if you're in the cat bird's seat with the 'Cadillac' coverage.

If you read yesterday's piece, you may've noted that WEAC has universal health care as one of its legislative goals.  That would be great since they could then shift costs to all the state's citizens instead of just to those citizens in a district they provide coverage for.  And, most interesting of all is this overlooked fact:  WEAC had already obtained favorable treatment for its members in the Healthy Wisconsin program that was defeated last year.  Universal health care is great but they must still have better coverage for their members...and the party in control of state government was willing to cause that to happen.

Some have questioned the people costs of a school district but this kind of information helps us better understand where some of those costs originate. 

I want to shift the focus now to the Wisconsin Education Association Council, or WEAC as it is commonly known.  Following this, we'll look at the WEAC affiliate that delivers health and other insurance coverages.

WEAC is among the state's 800 lb. gorillas so far as labor organizations are concerned.  It touts having some 98,000 members.  Its history shows a start in 1853, some 8 years after Wisconsin became a state.  It became known as WEAC in 1972 following adoption of collective bargaining laws for public employees in Wisconsin.

WEAC represents the following segments of education today: teachers, education support professionals, custodians, university students, state education employees, paraprofessionals, retired education support professionals, retired educators, library media specialists (one of whom, Mary Bell, is the current WEAC President), nutrition employees, school safety personnel, Wisconsin Technical College faculty and support staff, clerical staff, counselors, secretaries, teacher aides, bus drivers, cooks and state-employed education and information professionals.

WEAC's structure begins at the local level with the local unions such as the Germantown Education Association (GEA).

The local unions are members of a unified services unit, or UniServe unit, in their local area.  That unit includes the professionals required to support the locals, and is typically limited to some 1,200 to 1,500 individual union members.  Five of the largest school districts have their own UniServ units (Milwaukee, Madison, Racine, Kenosha and Green Bay).  The staffs of each UniServ provide locals with collective bargaining, member rights, public relations, professional development, and political action assistance.

The UniServ entities are tied to WEAC in Madison and WEAC is a member of the National Education Association, or NEA located in Washington, D.C.

It is easy to see that this organization is very well developed for the functions it has carved out for itself.  That is among the reasons that education is such an effective political force.  I have made earlier references to the fact that WEAC has spent millions of dollars to assure an attentive audience in the halls of Wisconsin government and in the Governor's mansion.

WEAC has identified its major initiatives for the period 2008-2010 and those are:

School Funding  They state: "It is evident that school funding is broken.  It is at the center of discussion from local to local.  The WEAC Board of Directors has identified measures of success for school funding reform, and they are offering a comprehensive education to kids and fair compensation for members."

Health Care  They state:  "We know that under the Qualified Economic Offer we've been sacrificing salary increases for health insurance.  But WEAC's commitment to health care reform is much bigger.  We care deeply for kids and their families because we all know that health care is also a learning issue."

Professional Development & Licensure  They state:  "Educators are required to focus more attention than ever on licensing and professional development, and WEAC is stepping up to provide quality support and services.  You are the best person to manage your professional development, with support from your union and financing from your district."

Achievement Gaps  They state:  "This issue is very close to the hearts of WEAC members.  The frustration of not being able to meet the needs of all our students drives us to do more - demanding needed resources and bringing the issue forward into a public conversation.  We will continue our work to involve communities, corporations and government in closing the achievement gap."

Membership  They state:  "We are listening to what you need and value, and connecting your union to your daily work.  We are focusing on groups who are already organized - and those who are not yet - in order to fulfill the promise of public education for future generations."

I'll close this piece with the 2009-2010 WEAC legislative agenda.  Their printed material says:

"WEAC Supports Legislation To:

• Repeal the Qualified Economic Offer law.
• Repeal revenue caps.
• Make preparation time for educators a mandatory subject of collective bargaining.
• Increase funding for SAGE to provide $2,500 per low income pupil beginning in the 2009-2010 fiscal year.
• Implement voucher accountability.
• Make attendance of 5-year-old kindergarten mandatory and a prerequisite to admission to first grade.
• Treat education support professionals the same as teachers under the Wisconsin Retirement System in terms of qualifying for coverage and for early retirement calculations.
• Establish WTCS pay equity by requiring that the salary and fringe benefits of part-time technical college instructors be prorated based on the salary and fringe benefits of full-time staff.
• Create a loan forgiveness program for teaching math, science, special education and ELL in high-poverty districts.
• Repeal residency requirements.
• Provide a tax deduction for non-reimbursed classroom purchases.
• Adopt the 'Wisconsin Indoor Environmental Quality in Schools Act' for public school buildings.
• Require school boards to adopt anti-bullying policies.
• Allow parents to take leave time from work to attend school conferences and activities."

~~~~~~~~~~

Several things jump out at me as I write this but I'll use another piece to explore those.  The one major thing that occurs is that virtually everything about WEAC means higher costs of education which translates into restructuring school financing laws and that will ultimately translate into more tax dollars.

A few short weeks ago, our governor mentioned that we would be contending with as much as a $3 billion budget shortfall in the next biennium.

A few days ago, that number was escalated to as much as $4 billion.  At that time, the governor was quoted as saying that he would do everything possible to avoid having to increase taxes.

Today, we appear to be staring a $5 billion budget shortfall in the eye, and, while he says he will do everything possible to avoid tax increases, there is some mention of income tax and sales tax.

I am reminded of that age old 'frog in the water' story.  We're the frog and the State of Wisconsin is the water and the elected masses will prove to be the hand that turns the heat up so that we boil under the strain of tax increases.

In the intervening few weeks, there has been no talk about how the budget can be cut to accomplish the magic 'balancing' act.  The state budget has been rigged for this failure for awhile.  Handy dandy accounting games have been used to continually push a significant shortfall into the next biennium in order to help "balance" the current biennium. 

That and the use of funds 'stolen' from every little rainy day money pot the governor could find have, to mix metaphors, kept the wolf from the door; but the 'big, bad wolf' has just huffed and puffed and the door is about to cave in on top of us taxpayers.

There is no other money available.  There are only budgetary cuts or tax and fee increases.  Guess which will be used to get the majority of the shortfall covered.  Oh, there will be some marginal cuts for our consumption but nothing even approaching what is required.

What will they cut?  Education?  Are you joking?  The new health care program they're trying to foist on us?  Are you joking?

I'm sorry to tell you that I think we all better buckle our chinstraps; we've a rough ride ahead and the Democrats are in control.  They haven't been too anxious to reduce spending as I recall.

Maybe I'll be surprised; I certainly hope so.  I'd love to take a bite of that crow!

The voters in Wisconsin have decided that the Democrats are going to run the state for at least two years.  They control state government and can, if they choose, push their way past any Republican opposition.  That remains to be seen, however I suspect the power vested in the Democrats will be too much for them to resist.  Just as there is a 'pent-up demand' in the Democrat majority in Washington, there is also that same force at work in Madison.

Some of the things I expect we'll see include (in spite of my protestations):

• Smoking Bans that apply to all public buildings, and some outdoor public spaces across the state...
• These bans will follow the patterns set by some municipalities and counties that have taken action already.  The ban will probably include taverns and gaming establishments.  The ban will not attempt to outlaw tobacco products but could also include additional taxation above and beyond that we've seen in the recent past.
• These bans will, unfortunately, trample on the property rights of business owners.  Tavern owners should be given the right to determine if they will appeal to non-smokers or to smokers.  Cigar bars and retail smoking parlors should be permitted to continue to exist.  Second-hand smoke and its dangers to employees will be the mantra and "property rights be damned" will be the battle cry.
• Expansion of state-funded health care plans...
• There will be little or no opportunity for a rational discussion of those already existing programs where lessons could be learned because the controlling party members want no such 'light of day' to shine on their ideas.  That proved too damaging in the past, and they have the raw power to ram this through.
• We risk moving too far down this slippery slope so as to inhibit a return in the future as this behemoth proves to have been the wrong decision.  These incursions in the 'free marketplace' will carry a dastardly price tag.
• There will likely be more 'mandated benefits' than in the past in spite of the fact that a significant part of our cost issues can be laid at the feet of existing over-zealousness on this front.
• Education Economics...
• I am convinced that the QEO (qualifying economic offer) provisions in place now will be eliminated or significantly altered and that this will lead to higher taxes within a year.
• I expect that there will be a significant change in the manner in which education is funded and there is a present danger that, without adequate debate, those results will be skewed toward the establishment and not the students and taxpayers.
• I expect to see limitations on alternative forms of education such as home schooling, Internet Schools, school choice and on and on.  WEAC owns the Democrats and it will demand its payback.
• Increased Taxes...
• At the very time when our state should be cutting expense to reduce the tax burden, it will add expense.  The state budget is already some $3 to $4 billion underfunded.
• Mandated programs implemented at the state level are unlikely to be adequately funded, so localities will be forced to increase their taxes to comply.
• Caps on local tax increase rates will be lifted or significantly modified so that property taxes can and will increase more often and at higher amounts.  There is never 'enough' money and there are always 'good programs' that really need to be enacted.

My concern is that the controlling party will be unable to keep itself from making too many things on its 'wish list' reality, and we will all suffer as the result.

I really hope that I am wrong

Wow, voting day is finally here and my telephone will quit ringing so much, my mailbox will be less cluttered and I can either celebrate or cry in my proverbial beer.  This election 'season' has seemed to go on forever.  Several things are at top of mind this morning...

Milwaukee Police Unit Disbanded...

The special investigative unit of the Milwaukee Police Department that generated the 67 page election fraud report has apparently been disbanded some five days prior to today's election.  The detective who led that operation has, according to the Wall Street Journal, been relegated to the sidelines today.  John Fund of the Wall Street Journal reported this morning that Detective Michael Sandvick had predicted that Wisconsin could see as many as 55,000 illegal votes cast.  He cited the cross-border flow from Minnesota and Illinois since Wisconsin is one of only eight states that have 'same day' registration coupled with the weak verification of eligibility.  His estimate was that as many as 30,000 votes could be cast today in that manner. 

There are only two people of whom I'm aware who could've caused this 'stand down' and those are Milwaukee Mayor Tom Barrett and/or Police Chief Flynn.  Neither has been available for interviews today to my knowledge.

~~~~~~~~~~

My Voting Site...

I drove past the site where I vote at about 7:20AM today and was astounded at the number of vehicles parked and at the length of the line of people waiting to move into the building to vote.  I plan to vote in the 9:00AM range and we'll see if this surge was simply caused by people on their way to work as I suspect.

At any rate, it certainly seems that our voter turn-out will be in the range predicted by the Village Clerk's staff which I recall was in the 73 percent range.

On top of this was an inordinately high number of absentee ballots being cast based on my casual observations of parking lot loads during the preceding couple of weeks and of anecdotal comments from people working in village hall.

UPDATE:  I voted at about 9:20AM and was number 580.  The people were still streaming in and there was about a ten minute wait at that time.

~~~~~~~~~~

Media Hype...

I am angered with what now seems to pass for the mainstream media so far as their seeming promotion of Obama's 'inevitable' victory.

We have been fed the 'facts' for many days that there is no way for McCain to win.  There are, unfortunately, too many voters who are swayed by this 'stuff' and who don't think for themselves.  If just 1% of potential voters were dissuaded from 'wasting' their time voting, the swing could become a 'self-fulfilling' prophecy.

~~~~~~~~~~

Direct Legislation...

Finally, we are witnessing direct legislation in Milwaukee concerning mandatory sick days from employers.  This would create a burden for many businesses that would force them to close or move thus negatively impacting the residents.  But, there are too many who can't or won't think these issues through and simply vote because they like the idea that they can have sick days. 

We are witnessing some 25 to 30 communities across the state that have ballot questions concerning 'mandatory health care plans similar to those afforded state employees'.  These types of issues are done at the state level but grass roots groups have begun to work at the local levels to bring some pressure to bear on state legislators.  The simple fact is that there isn't enough money in the state to provide that level of health care coverage for all the residents.  We would bankrupt ourselves.

Having family members in Colorado, I am reminded of the folly that those voters are subjected to in the form of ballot initiatives.  There are something on the order of fifty individual questions on ballots in Colorado today that require some real effort to understand.  The majority of voters do not take the time to do their own research and, instead, follow the direction of their associations or unions or professional affiliations.

This is a very dangerous thing, in my opinion, that lends some credence to the old saw about us voters getting the government we deserve.

There is more and more speculation as to the potential that we'll see a 'clean sweep' by Democratic candidates on Tuesday, November 4th at both the state and federal levels.  I hope that isn't the way it turns out, but I'm tiring of being beaten about the head and shoulders every time I read a newspaper article or watch the bulk of the television news items.  Maybe that is the intent.  If us conservatives can be sufficiently demoralized, maybe we'll just stay home.  Not this conservative!

What do I mean by 'clean sweep'?  I refer to the potential that both the Assembly and the Senate in Wisconsin will see a sufficient Democratic majority that will be able to pass anything they wish in spite of the number of Republican votes that could be massed, with assurances on most such items that those will be signed into law by the Democratic Governor Doyle.

Similarly, I refer to Democratic victories in both the U.S. House and Senate that will be Republican-proof and that will likely find favor with a Democratic President Obama.

Jay Weber has done a good job on setting forth 23 items that could be part of the triumvirate of Sen. Harry Reid (D), Rep. Nancy Pelosi (D) and a President Obama and you can find those by clicking here.  Things included on Jay's list include renegotiating NAFTA, ending secret ballots in union organizing, government-run healthcare encroachments, reintroduction of the 'Fairness Doctrine' to control conservative access to the airways, and so on.

At the state level, we could easily see state-run health care, the increase in costs of education, ever larger portions of our income going to state and local taxes,  more and more loss of personal freedoms and so.

There has been, in most of our history, a certain "check and balance" relationship in most of our governments so that not everything that was proposed was ever likely to be passed.  That 'protection' could disappear for years if we see the 'clean sweep' at the state or federal levels, or both, as the result of our national election on November 4th.  Our country tends not to flourish well under such governments regardless of party in power.

Vote your conscience next Tuesday!

I had intended to scan a copy of the sample ballot for Germantown however that wasn't sufficiently legible.  So, we'll list the offices for which there are candidate selections to be made by all of us who are registered to vote in the village.

You may elect to vote a straight ticket including, in the order found on the ballot:

• Democratic
• Republican
• Wisconsin Green
• Libertarian

The race for President and Vice President, in the order found on the ballot:

• Barack Obama/Joe Biden (Democratic)
• John McCain/Sarah Palin (Republican)
• Cynthia McKinney/Rosa Clemente (Wisconsin Green)
• Bob Barr/Wayne A. Root (Libertarian)
• Brian Moore/Stewart A. Alexander (Socialist Party USA)
• Gloria LaRiva/Robert Moses (Party for Socialism, & Liberation)
• Ralph Nader/Matt Gonzalez (Independent)
• Chuck Baldwin/Darrell L. Castle (Constitution Party)
• Jeffrey J. Wamboldt/David J. Klimisch (We, the People)
• Write-in________________

Representative in Congress District 5, in the order found on the ballot:

• F. James Sensenbrenner, Jr. (Republican)
• Robert R. Raymond (Independent)
• Write-in________________

State Senator District 8, in the order found on the ballot:

• Sheldon A. Wasserman (Democratic)
• Alberta Darling (Republican)
• Write-in________________

Representative to the Assembly District 24, in the order found on the ballot:

• Charlene S. Brady (Democratic)
• Dan Knodl (Republican)
• Write-in________________

District Attorney:

• Todd K. Martens (Republican)
• Write-in________________

County Clerk:

• Brenda J. Jaszewski (Republican)
• Write-in_________________

Treasurer:

• Janice Gettelman (Republican)
• Write-in_________________

Register of Deeds:

• Sharon Martin (Republican)
• Write-in_________________

Referendum - Germantown School District

Question #1:

Shall the following Initial Resolution be approved?

INITIAL RESOLUTION AUTHORIZING GENERAL OBLIGATION BONDS IN AN AMOUNT NOT TO EXCEED $22,500,000

BE IT RESOLVED by the School Board of the Germantown School District, Washington County, Wisconsin that there shall be issued pursuant to Chapter 67 of the Wisconsin Statutes, general obligation bonds in an amount not to exceed $22,500,000 for the public purpose of paying the cost of constructing a new elementary school on school district property next to Kinderberg Park; technology, safety and security initiatives District wide; and acquiring furnishings, fixtures and equipment.

Yes ____

No   ____

Question #2

Shall the following Resolution be approved?

RESOLUTION AUTHORIZING THE SCHOOL DISTRICT BUDGET TO EXCEED REVENUE LIMIT BY $500,000

FOR RECURRING PURPOSES

BE IT RESOLVED by the School Board of the Germantown School District, Washington County, Wisconsin that the revenues included in the School District budget for the 2010-2011 school year and thereafter be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $500,000 a year, for recurring purposes consisting of costs associated with the new elementary school.

Yes ____

No   ____

~~~~~~~~~~

The ballot is two-sided as you would expect from the many questions.

Bus Instead of Drive...

The Riteway/WCCE bus to and from the State Fair is a great deal in my estimation.  I have become a convert after this my third year of using this service.  A pleasant ride down and back.  Buses every half-hour.  Clean.  Relatively inexpensive.  And, discounted State Fair tickets courtesy of All American on Mequon Road in G'town.

Future Drop-Out?

Soon after arriving, I had an experience that has haunted me since.  I do not mean to be offensive, but I suspect some will be offended.  I heard a man hollering and saw, some distance ahead, a mother and son (about 5 years old).  All were well-dressed and neat in appearance.  They were working on some problem the son was having and the son had dropped a near-life size Spiderman game prize on the street while this went on.  That father was furious that 'Spidey' was on the street (although the street was clean and dry for a street).  The mother, who had been quiet until the hollering began, also commenced to scream and berate the boy.  The boy looked bewildered and then began to cry, only provoking more hollering and the use of epitaphs that refer to one's mother derogatorily.  Both mother and father used this term in addition to telling the boy that he was "stupid".  Then, the father, apparently having done his duty, turned and left to go back in the direction of the inner fairgrounds eating his 'blooming onion' while the mother and son walked toward the exit on 84th street.  Mom continued to berate the son verbally.  I didn't see any physical involvement.  There was no intervention by fairground security if they were even aware.

This was a 'stomach-turning' display.  There is no other way to describe it.  It was so out of the ordinary for me that I was dumbfounded.  It was over very quickly for me (except for the images in my mind) but the little guy lives in that world 24/7.

Frankly, this immediately brought to mind another drop-out at the age of fourteen or so adding to the woes of the Milwaukee Public School system and society some nine years from now, if it takes that long, and if he survives that long.  What kind of future does that young man have if he continues to be raised and educated in his current environment?  Where did society take the wrong turn that created the environment that produced Mom and Dad?

Economic/Political Indicator?

There seemed to be less lugging of mops and brooms and other 'fair goodies' this year than last.  The hawkers had smaller audiences, if an audience at all.  I saw two political party booths: Democrat and Libertarian.  I may've missed the other major party's booth but I don't know where it was.  If it is any consolation, neither were over-populated at the time I passed them.  To think the people were all at the other party's booth is, however, to be naive.  I saw one Obama button being worn and that was by a person who had boarded the bus in West Bend.

That was it for this year's fair experience other than to say the weather couldn't have been better.  We again saw Rhonda and her husband performing at Rupena's renewing a friendship of my wife's.  I guess my overall experience of the fair was over-shadowed by that early encounter with the highly dysfunctional family.  That was a 'downer', to borrow a term from a younger generation, that I'll carry for some time.

The Milwaukee Journal Sentinel featured an editorial this morning concerning the possibility that Germantown will pursue the secession effort from the Milwaukee Area Technical College district.  They spoke of 'outreach' by MATC and re-established their position that Germantown should remain in the MATC district.

The 'outreach' they spoke of consisted of the appointment of Victor Rossetti (then Superintendent of Germantown Schools) to a MATC Board vacancy, meetings held with Germantown officials, contribution of laptops to the library and a couple of 'free' programs.

This so-called 'outreach' seemed a lot like a feeble attempt to head off an embarrassing situation.  The addition of Mr. Rossetti did nothing to alter the course of MATC.  It continues to be, in my opinion, an out-of-control institution that answers to no one.  Germantown pays millions annually and we are supposed to take thirty laptops and shut our collective mouth.

The editors finally get to the last paragraph of this piece where they seem to catch a glimmer of a major reason for our angst.  They state, "And our guess is that until MATC does something to reduce its tax levy, not only will Germantown's efforts continue, but other communities may also start seriously considering secession."

The school board is scheduled to discuss this subject tonight.  I hope that it moves with all deliberate speed to push the secession from MATC.

MATC has now ended the suspense.  Whew!  It has officially increased its tax take by the 4.9% that it miraculously managed to get down to from the original 'straw man' of 6.4%.  This codifies the fact that MATC's appetite for tax dollars has risen by some 30% over the past five years.  MATC's leadership, if it can be called that without demeaning the word, just can't seem to understand that, while it is impervious to the wants and needs of the citizenry it serves, it really has permitted its reach to exceed our grasp.

MATC strikes me as an iceberg looking for a ship to sink.  It is floating along with the tip showing while the bulk of the 'bloat' lies just under the waterline, out of sight and, too often, out of mind.  Until it hits the ship of taxpayers yet again.  The taxpayers on this 'ship of fools' have finally come to understand, at least in Germantown, that they would be better-served if they were permitted to disembark from the current ship that continues to be victimized by the MATC iceberg...year after year after year after year!

That disembarkation is, however, contingent on so many disparate factors as to seem nearly unachievable.  First and foremost is that failure to make the petition to the state technical college board seeking a move from MATC to another contiguous tech college district renders all the other points moot.  If that is filed, then we wait and see what the august state tech college board members decide is to be our fate.  The last such application was made in 2004 and was denied.  That doesn't necessarily mean that this petition would suffer the same fate...but it is probably a decent precursor.  The only other successful action of this nature involved Germantown's petition to be moved into the MATC district back in the early 1970s.  (Ironic, isn't it?)

Back to the basics, however.  This rate of increase could've been far better controlled if the governing board for MATC were subject to re-election.  It isn't.  It is subject only to the parochial appointment desires of MATC.  Talk about a great deal, huh?  If I'm going to be governed by someone, I'd love the opportunity to pick the person without any outside interference over things such as how effective they'd be in administering their responsibilities.  If I 'accidentally' picked someone that was in lock-step with my positions and goals, could I possibly be faulted?  Sure, but it would be meaningless because no one could do anything about it except maybe move away to escape.

Maybe more to the point, I could've used the euphemism of a polar ice mass, a glacier, grinding everything in its path into submission.  Pretty soon there'll be nothing left here to tax.  It'll have been destroyed by the taxes rendered.

I guess the good news is that you can't tax the same dollar for more than 100 cents, so there is some ultimate end point.  Yet, there are so many taxes being levied against each of our dollars that we get less and less while everything costs us more and more.

Maybe, IF we pursue the change in tech college districts, and IF the state tech college board approves, we can rid ourselves of MATC President Cole, his board and his kingdom of fire-breathing dragons that burn everything of value they can identify in their domain.

I believe a full scale audit of that institution is called for and I believe one or more of our elected officials at the state level needs to pick up that banner and carry it high for all to see.  This is way past the point of being mere Blog fodder, although it sure has been good for that!

In keeping with the protocol we have established, we'll lead with the response of Senator Darling to each question in this chapter.

 * * * * * * * * * *

What is your position on Ethanol mandates in Wisconsin?

Darling:  I oppose ethanol mandates!  I have asked our federal lawmakers to repeal the federal renewable fuel mandate and eliminate tax credits for ethanol production.  I have also asked the Environmental Protection Agency (EPA) to lift the reformulated gas (RFG) blend mandate.

Wasserman:  I am against Ethanol mandates.

* * * * * * * * * *

Wisconsin is now listed as only the 11th highest taxed state in the union.  Is this appropriate given the services we receive?  Are there ways that taxes can be reduced further and, if so, where do you think that can be accomplished?

Darling:  For way too long, Wisconsin was among the top ten of most highly-taxed states.  Wisconsin is now out of the top ten because legislative Republicans have successfully defeated billions in Democrat-backed tax hikes over the years.  While I am pleased that our tax rank is dropping, the state must start to spend less too.

Wasserman:  Based on the services we receive, I think we could be more in the middle of the pack.  We can do that by restructuring government and eliminating unnecessary layers of bureaucracy.  We also need to stop giving tax breaks to every individual who comes to Madison with a paid lobbyist.  Instead of increasing the complexity of our tax code and favoring the few instead of helping the many, taxes should be cut across the board.  We can all share in tax breaks.

* * * * * * * * * *

Is the UW system working as it should or are there problems that need resolution?  If problems, what do you see those as being?

Darling:  As a proud alumna of UW-Madison, I think it is important that our UW-System remain a top notch higher educational system that is a major driver of our state's economy.  That said, there have been far too many examples where the UW-System has wasted taxpayer dollars.  Everyone remembers examples like the $26 million spent on a new computer payroll system that didn't work and the $700 per month automobile allowances for chancellors.  While the UW-System is very important to our state, it needs to eliminate wasteful spending.

Wasserman:  The overall UW system is the third largest in the country, and I'm proud of it.  I graduated from the University of Wisconsin Milwaukee, and I'm very proud of my education and what it's done for me.  One area of concern is the administrative system for the UW itself, which needs to be cut.

* * * * * * * * * *

As always, our thanks go to both contributors for taking the time to respond to our questions.  And, we again encourage readers to pose their questions for future chapters in this 'debate'.

The move toward filing the documents necessary to seek secession from the Milwaukee Area Technical College tax district has begun to draw some debate amongst the politicos in Germantown.

Village President Kempinski has been quoted as being concerned with the seemingly slow movement in this process, and School Board President Erdmann says that we shouldn't worry because it is being taken up in July for ultimate filing in August.

Some have pointed to the earlier appointment of Superintendent Victor Rossetti as the death blow to any secession movement since Germantown is now directly represented on the MATC Board.

Mr. Rossetti will serve his last day as superintendent on June 30th.  What happens then?  Does he have to step down or is he permitted to serve out his term since he is then a 'former' superintendent.  What happens if he moves from the MATC district?  Is he immediately susceptible to removal if he doesn't resign?

Interesting questions all.  I have written earlier of some concern since the MATC discussion had been quiet for a seemingly long period of time.  Then we were advised that we shouldn't worry since the school board would resume its discussion in July. 

We are still a long way from the actual filing of documents and then we must await the decision of the state technical college board that is due within ninety days of the filing.  Then, even if we were to be successful...and that is far from a certainty...the actual secession wouldn't occur until the start of a new fiscal period for technical colleges.

And, of course, while this all plays out, we are being over-taxed and under-served by the money-eating monster that we know as MATC.

What we don't need are any artificial obstacles cropping up along the pathway to change.

MATC students along with all technical college and two-year college students in Wisconsin have a more difficult time gaining their education as the result of lenders leaving this marketplace.

MATC has nearly 5,300 students now at risk due to the fact that several lenders have decided to pull out of this market stating that it is unprofitable.  That supposedly is caused by too little money being borrowed for too short a time.

The total of loans that are affected by these pull-outs is more than $18 million, and involves five lenders for MATC students.

Several thoughts occur:

What other programs are available to these 5,300 students?  Supposedly there are from six to twenty other lenders available to the students if we are to believe the technical college system president, Daniel Clancy.  If that is the case, why would some big names pull out?  Those names included Chase, Citibank and TCF.  If there is money to be made, wouldn't they still want some of it?  Or is this indicative of some other more pervasive problem?

Will they qualify for replacement loans or is that really part of the problem that causes the lenders to want out?  Many of the students relying on these loans are low income people as you would presume could be the case.  It may not be possible for them to apply to other lenders and expect to be granted access to credit.  The federal government passed the College Cost Reduction and Access Act of 2007 and, contrary to what the name might suggest, this limited federal subsidies to those who lend money to students, and more than fifty such lenders left the market.  This suggests that we're talking about marginally-viable loans and that, without government guarantees, there will be fewer dollars available and those will go to better credit risks.

If there is a loss of significant numbers of MATC students, will MATC face up to the need to reduce budget?  There are nearly 5,300 students affected by this situation.  If half of those are unable to obtain different loans, there will likely be a similar number dropping out of MATC.  I don't know what the 'full time equivalent' student number is, but let's assume that these students are half-time.  So we would have a loss of half of the 5,300, or 2,650 and those would equate to 1,325 full time equivalent students.  That is about ten percent of the current total FTE students now attending MATC.  Will we see a ten percent reduction in the MATC budget?

Or, will MATC see this as forcing it to actually increase its tax take in order to offset the loss of student tuition?  Your guess is as good as mine, but I'll be amazed if we see a budget reduction as the result of this situation.  One cannot simply reduce staff because the student load has dropped, can one?  How does one manage to down-size when there are so many fixed costs, so many people relying on MATC for their livelihoods, so much left to do in the building of the empire?

What seems more likely is that this will be dragged out as alternatives are sought, and it will be talked about for awhile until we lose track of the issue.  Maybe state legislators will step up up and recommend new state guarantees.  After all, military veterans are given 100% tuition credits so it is only fair to begin providing everyone with 100% tuition to attend MATC.  It is only fair that MATC have this kind of support since the Milwaukee Public Schools are generating so few qualified graduates any longer.

The last paragraph was intended as 'tongue in cheek' in nature but I fear that it might be closer to reality than not. 

The president of the MATC teachers union, Michael Rosen, says he'll be in contact with Representative Gwen Moore (D-Milwaukee) to seek her help in assuring that students still have access to federal loans.  The dominoes have begun to fall and they threaten to crush us taxpayers yet again.  Why do they never topple in the other direction?

The UW Board of Regents decided that tuition had to go up 5.5% for students at the four-year universities.  They laid the blame in large part (3% of the 5.5%) at the feet of the legislature that mandated free tuition for veterans.  There are some 3,200 veterans now registered as students under this program; the program was originally intended to pay 50% of the tuition and that was raised to 100% last fall.

The UW and the legislature have been at odds for a long time.  This is likely just the next salvo to be fired in this long battle.

The Regents recently made their selection for the new head of the UW system and she will get a boost in what seems an already hefty salary.  That may be offset in small part by contributions from the UW Foundation as has been the past habit since the legislature has attempted to rein in the spending at UW.  She was reported to have stated her desire to see salaries increased soon to bring the UW system up to the standards of the large universities across America.  She also wants to see 'domestic partners' covered by the benefit programs made available to system employees.  Sounds as though this is going to be a costly hiring decision.

There is concern on the part of some students and the administration over the cost of the veteran's program being shouldered by the students.  Maybe that wouldn't have had to be the case had the Regents learned better how to live within their means. 

There was little hue and cry from the student body when the UW-La Crosse tuition was increased by some $1,300 per year with those funds to be used to support the tuition of more disadvantaged students attending that institution to better reflect the needs of that community.

The military has never been a 'favorite' of the UW system, so I guess we should expect that kind of differentiation.  The students' attitudes tend to reflect that of the institution in which they are immersed. 

There is a very real problem with the UW system.  We see out-of-state students being rewarded with reduced tuition rates at the expense of Wisconsin students.  We see the administration expense running at very high rates with no checks and balances apparent.  We see ever-increasing pay ranges for staff, and yet we understand there are many hangers-on that are not earning their keep.  Have costs ever been reduced in the UW system?  Are shrinking programs ever eliminated?  Are these concepts foreign to the Regents?

The system seems to have its own political beliefs and those do not fit in an institution of higher learning.  Schools should be apolitical, but that seems to have been forgotten completely over the past four decades.

The UW system begs for a thorough house-cleaning and some solid oversight with enforcement teeth.  It has become a significant part of the education industry in our country.

The MATC has developed yet another draft budget after the first such exercise produced the need for a 6.4% property tax increase (see Blog of April 23rd).  At the time of that budget draft, the governor apparently said he would not countenance such an increase.  MATC announced then that it would go back to the old drawing board and see what could be done to get down into the range of 'as little' as a 5.0% to 5.5% property tax increase.

Guess what?  They can now apparently declare victory in this onerous task since the finance committee is only proposing a revised draft budget that would consume another 4.9% increase in property taxes.  The proposed draft will come to a vote by the full board on May 27th.

MATC has developed budgets since 2004 that will have caused property tax increases of more than 30% if this draft is ultimately approved.

Has your personal income increased by 30% in the past four years?  Has your savings account grown by 30% in the past four years?  Has yours become a single income family instead of a dual income family in the past four years?  I doubt it.  But, if so, congratulations!  Even with such an increase, if that has happened for you, I'll wager that you have better places to put your hard-earned money.

The MATC finance committee says it has cut all it could cut from the budget.  Jeannette Bell, committee member and former West Allis mayor, was in favor of not only this 4.9% property tax increase, but also favors reducing the reserve account held by MATC which has been done as part of this draft. 

People costs are budgeted to increase significantly.  Wages and salaries will go up about $1.5 million.  Health care costs will rise by some $2 million.  Other 'fringe' benefits will add another $4.5 million, including  $2 million required to bring the recognition of accrued benefits onto the MATC books like any other 'business' must do today.  That is $2 million of 'funny money'; where else would we find accounting tricks employed if we were to subject this institution to the standards maintained by businesses?

I cannot accept the statement that MATC has cut 'everything possible' and still needs this kind of increase budget over budget.  The paragraph above suggests to me that people costs are way too high, and a very quick way to achieve reductions there is to have fewer people.  Maybe MATC should think about outsourcing certain functions.  Maybe they should think about 'tough love' negotiations with union representatives.  There are or ought to be limits even for tax-funded entities.

Maybe MATC needs to review its class demand and determine the bottom third by attendance and end those classes.  If there is insufficient demand, there is apparently not an identifiable 'significant' need.  MATC cannot be providing services to a market that doesn't exist in sufficient numbers to show demand.  That would free up space for other uses, and it would, or should, enable staff cuts that will reduce costs.

It is impossible to forget, in this debate over MATC, that there is a very real problem with the Milwaukee schools system and we must recognize that some of MATC's costs should rightfully be paid for by the Milwaukee school system since MATC is mopping up after that dismal performance.  Adult high school education classes and GED classes are an example of how the public education structure in Milwaukee fails its students and the residents of the community.  Interestingly enough, this may well be an intended consequence rather than an unintended consequence.  It gets non-Milwaukee taxpayers to pay more of the Milwaukee education costs than is already done through state tax distribution formula.

Finally, I suggest once again that MATC needs to clean up its many acts.  It needs to get out of the failed business incubator function.  It needs to quit building physical monuments to itself and its leaders.  It needs to look at sale and lease-back arrangements.  It needs to reduce staff. 

Frankly, it is becoming more and more apparent that significant leadership changes may be required, as well.  MATC leadership seems to be ignorant of the public's needs.  This is an institution answerable to no one other than the governor through his ability to appoint members to the state technical college board.  The state legislature and the governor must act to bring this renegade system under absolute control.  There must be a change in the manner in which the state board and the district boards are created; voters need to determine who sits on those boards.  The current incestuous approach simply doesn't work...for anyone other than the leaders and those who sit on the rubber stamp boards.

All this brings me to the next obvious question:  Where do we stand in the quest for permission to move to another technical college district?  There seems to have been a long delay in the process; maybe it is justified.  I hope it doesn't mean that the movement has been quietly put to sleep.

It appears that the Assembly and Senate have reached sufficient agreement to bring a budget repair bill to a vote later this week.

Word available indicates that there may have been a few actual budget reductions while the bulk of the heavy lifting is being done on the back of money being pulled from the transportation fund and money being pulled from the 'rainy day' fund.

Additional tactics reportedly include pushing some school funding into the next budget period and adding some additional taxes that were overlooked before this.

The long and short is that we'll be borrowing more money to replace the tax collection shortfall that will be used for transportation expenses.  Some cookies have been included that don't seem to have anything to do with the budget dilemma so those must've been payment for votes promised by some of the politicians.

We will be looking at the same set of issues next budget at this rate since we're not fixing the problems by reducing expenditures.  Except those issues will very likely have bigger teeth.  Our elected officials are being asked to vote in favor of a deal that pins its hopes on an improved economy by the next time the 'problem' pops up on radar screens.

What will it take to get actual budget reductions approved?  Apparently more people in office with the fortitude to stand up against the tax and spend crowd that sits in far too many chairs today.

We've gone a long time between Blogs centering on MATC, but it is again time to take a critical look.  A 'headline' from some time ago suggested that MATC just can't help itself.  That seems to be the case.  They certainly don't seek out the kind of news coverage they tend to generate.  No organization would want to be in this type of 'limelight' and yet they do it to themselves over and over and over again.

Yesterday we learned that poor old MATC was being chastised by the 'state' for having proposed a budget that would require a property tax increase of some 6.4%.  It seems that even Governor Doyle thought that was too high, and that is going some when you think about all the tax increases and fee increases he has dumped in our laps.

So, having had their knuckles rapped with a ruler, they are being forced to the unthinkable...they may have to make some cuts in their expenses!!

They are now talking about cuts that will get the property tax increase down to as little as 5% to 5.5%.  These people do not live in the world that you and I populate.  They must breath some other life giving gas other than oxygen.  Maybe they're actually in a different orbit.  It seems obvious that they are not bound by the same life rules that we, the taxpayers, are bound to follow.

Hammering at an old theme again, if you and I have too little income for our expense load, we usually will look at our expense first and make the necessary adjustments.  In the world occupied by MATC, it seems that you first look at raising your revenue before you even give any thought to reductions in budget.

An article today centers upon the 'incubator boondoggle' that MATC created for itself many years ago.  We've Blogged about that before, as well.  Some of the businesses aren't real businesses with any hope of survival in the real world.  Many are considerably behind in their rent payments.  Now MATC is looking at actually closing or modifying the two incubators but it may have to give some money to those businesses that are to be displaced apparently according to some language in their agreement with each.  I've not seen those agreements, but I can't imagine that even MATC would give money away, much of it probably to those same businesses that are behind in their rent payments, if it were not bound to do so by the agreements.  Let's hope that MATC is sharp enough to hold back funds from this payment to at least recover the rental payments owed to it and to us taxpayers.

I have a high degree of difficulty in imagining that there is nothing else that can be cut out of the MATC budget.  How is it that MATC will cut expenses and still have to take us taxpayers to the cleaners for 5% to 5.5% more property taxes than we paid last time?  There are things that can be cut.  Let's talk about staff positions to begin with.  Let's look at the benefits next.  Let's review the travel expenses; it seems to me that was sort of a bloated area the last time we went down this pathway.  Maybe they need to sell off property and lease back the portions they actually need.  Maybe they need to shake up the status quo and actually take some real action like ending the deal with the current 'King' and getting a replacement that doesn't suffer from such egotism and illogical sense of institutional direction.  The Board should be capable of changing this direction unless it also suffers from something similar.

In the meantime, maybe the petitions to be removed from this system should be filed quickly and the case pressed while this iron is still hot enough to burn some sense into the directors of the state technical college system. 

By the way, Waukesha County Technical College has solidified its budget with a 3% increase in property taxes.  It is in the same geographic area, and faces most of the same issues.  What is the difference?  It seems to be leadership from my perspective.

The Center on Wisconsin Strategy and the Wisconsin Council on Children & Families, both found in Madison, have released a report that reaches the startling conclusion you see in the headline above.

Wow!  What a surprise!  Further into the article in today's Journal Sentinel that discussed this amazing statistic, we find out that Wisconsin actually ranks quite well so far as this measurement is concerned...but apparently not well enough to make these groups comfortable.  The report shows that the gap in Wisconsin is actually smaller than on average across the country.  The report found that Wisconsin actually ranks 11th out of the 50 states in this regard, and that means the gap between top and bottom fifths of the population are lesser.

But, there are the usual suggestions made to 'correct' this terrible situation:

• Increase the minimum wage and then index it to inflation.
• Improve worker skills and education.
• Expand subsidized childcare and health care for low-income workers.
• 'Update' unemployment insurance.
• Make taxes 'more progressive'.

This 'minimum wage' canard is so old and tiresome but it just keeps coming back.  There are positions in the workforce that do not command more than the current minimum wage.  Every time the minimum wage is increased, it displaces workers at the bottom end of society because the jobs simply go away. The majority of minimum wage jobs are held on a part-time basis by students and homemakers, and not be sole bread winners.

Improving worker skills and education is a noble undertaking, it is one that we are engaged in already, and it speaks to the need to get MPS working since it seems intent on not graduating 53% of its students thus relegating them to those minimum wage jobs and/or welfare programs (except that you have to read for many of those, so I guess that is out).

I don't know where the people have been who built this study, but every time we turn around, we are expanding childcare and health care for low-income workers.  Look at BadgerCare and BadgerCare Plus.  Listen to the radio commercials begging people to come in to sign up for welfare programs.

Apparently unemployment insurance should be 'updated' (read increased) so the people who are unable to hold jobs get more money until the benefit runs out.  Maybe a better tax climate in our wonderful state would prompt the creation of more jobs and remove the increasing need for the unemployment insurance program 'update'.

Finally, the ultimate liberal solution for every ill to be found in society:  let's take more money away (tax increases) from 'the rich' and give it to the poor.  This class warfare shot is being heard all too often in the current presidential campaign, and it fails to define just who the 'rich' are; be careful middle class; you may be rich.  We don't need to resort to the use of this class warfare tactic in Wisconsin.  In case the 'ruling class' hasn't figured it out, our taxes are already too progressive.

These studies drive me nuts (as is plainly seen from this Blog).  Lower our taxes as Texas has done for its citizens and employers, and watch what happens to unemployment, etc.

What a surprise.  The rich get richer faster than the poor.  The real surprise is that liberals have yet to figure out how cause and effect function in this equation!

Governor Doyle signed the bill that permits continued funding of virtual schools, with a relaxed cap on enrollments while a study is being conducted to determine their effectiveness on several different fronts.  This is a temporary 'fix'.

This represents a real victory for those parents who have enrolled their children in these educational institutions and who love the result.  Yes, these are educational 'institutions' even though it is difficult to see the walls.  Yes, the students do seem to thrive in this setting.  Yes, union teachers are involved in the instructional process.  Yes, they do seem more efficient in some ways than the typical brick and mortar schools with which we are all familiar.

But, they are different...and they are frightening to some...and threatening to others.  Certainly some students would not fare well in this environment.  Certainly some teachers would not fare well in such an environment.  So, maybe over the next couple of years, we'll have the opportunity to learn a lot more about this approach to education of our children.

Lest we forget, there is still the drive to end most forms of 'outside the box' education.  California's court system recently held that parents in that state are not fit to teach their children in a 'home school' setting.  Milwaukee Public Schools graduate less than 50% of their students but school choice is not looked upon with favor. 

Our system of education is in a state of flux.  Taxpayers are not happy about spending more money on buildings as we saw recently in Germantown.  Maybe all this will prove to have been part of a healthy debate as to just how our educational system of the future will look and function.

It seems obvious that we do need to have such a debate.  It seems obvious that we do need to get 'outside the box' as we discuss the future of education.  But, how are we going to do this?  Where will this debate be conducted?  Who will participate?  Will this be structured or will it simply be done through the free flow of ideas?  We have much greater communications abilities today than ever before. 

Will the debate be done at community levels, then county and state levels?  Or will it be done at the state level and then be pushed down to the place where education really happens?

Sadly, if there is to be such a debate, it will probably happen at the federal and state levels and be force-fed to the communities.  It will probably be done in courts of law with attorneys crafting the future of our educational system.  It will probably be funded by unions with their own agenda that may or may not look like the agenda of a community or of a parent.

I have no answers to these questions.  It might be better if we simply have a lot of questions and then seek the right answers...rather than to have th