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Coming Winners & Losers...

By Al Campbell
Saturday, Dec 20 2008, 11:03 AM

I do not intend to take any sides in this piece, but to simply state the facts as I see them.  If you feel that I stray, please express your thoughts in a comment.

~~~~~~~~~~

We are about to inaugurate the 44th President of the United States.  He, in this case, has much on his platter and has already taken quite a few steps in a relatively short period of time.  All this would indicate that his will be a well-organized administration and that things we see transmitted by picks, statements, leaks and so on are things of which we should take note.  I doubt that there will be a lot of 'wasted motion' from the Obama administration.  That does not appear to be President-Elect Obama's style nor does it appear to be the style of Rahm Emanuel who will be the back-seat driver, and the outspoken commenter when occasions require.

Among his early challenges is that of our economy.  I am reminded daily of just how intertwined our economy is with that of the world at large.  I am reminded daily that there is no such thing as an invincible company or institution.  The most revered names of my time, such as GM and GE and FedEx and Ford are being pummeled in the marketplace.  For example, $1,000 invested in GM at the end of 2007 is now worth $184 according to the Wall Street Journal this morning.  Similarly, $1,000 put into 3M is now worth $690.  That same $1,000 put into GE is worth $460 today.  A similar investment in Alcoa is now worth $273.  All these are the big industrial entities with which I grew up. 

There have been some indications that the Obama administration may well take the view that more government control is the desirable course at this point in our country's existence.  That suggests that our industrial model may see more governmental control over the products that are manufactured, the services that are offered, and the relationships of one with the other.  The buzz word has been "socialism".  That may well be too strong a term, and it was obviously designed to give people pause for thought when introduced by those on the right side of the aisle.

It is valid, I think, that we recognize there will be winners and losers as the new administration assumes its position and begins to guide the country.  There have essentially been two classes of appointees announced so far.  There have been the more conservative announcements such as that concerning defense, and there have been some liberal announcements such as that concerning the EPA.  This suggests that we'll likely be on a dual track from January 20th forward, at least for the foreseeable future.

If I knew who/what would be winners, I'd try to align myself as much as possible; similarly, if I knew the losers, I'd try to take the proper defensive measures.  But, I know neither with certainty.  I can only speculate.  And my speculations lead me to expect some of the following:

    • Health care will not be as severely remade as had earlier been indicated since there are many impediments to wholesale change, with the economy and the country's finances being the chief reasons I see.  We just don't have the money to do wholesale change.
    • Organized labor will be a beneficiary given the solid support received from those quarters by the incoming administration.  The labor department pick appears as though it could've been hand-selected by labor, for example.
    • Our country will be driven to be 'greener' whether or not that is indicated by thoughtful consideration.  The Browner selection virtually assures this direction.
    • Education will continue to be driven from the top down rather than from the bottom up.  Choice and charter will not be in much favor so far as I can determine.
    • Stimulus packages will be aimed at infrastructure projects thus being of significant benefit to the trades and unions, and with much longer payback periods for the rest of us.  Those projects will be as 'green' as possible given the Browner appointment.
    • Foreign policy will be a bit softer around the edges than during the past eight years, I suspect.  We'll be more concerned with what others think of us and that will drive changes.

We're in for an interesting ride into the future, and there will be some new winners and some new losers.

Above all this, my one hope is that you and me will be winners as the citizens of this 'changed' America, and not just those who wield the power.

Time will tell.


 

$5 Billion? From Whom Will That Come?

By Al Campbell
Wednesday, Nov 12 2008, 11:34 AM

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!


 

Further Glimpse At Our State's Future...

By Al Campbell
Friday, Nov 7 2008, 09:53 AM

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


 

Clean Sweeps On November 4th?

By Al Campbell
Tuesday, Oct 28 2008, 09:19 AM

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!


 

Village Buzz - July 16th: Road Referendum This Fall?

By Al Campbell
Wednesday, Jul 16 2008, 08:48 AM

News reports indicate that Village President Tom Kempinski is considering asking the Board to approve a referendum that would appear on either the September ballot or the November ballot.  This referendum would deal with just how Germantown voters desire to fund some $2,000,000 per year in road repairs, if they desire to do so.  The choices apparently would be borrowing, increasing property taxes or a combination of both or none.

The referendum could be advisory or binding in nature.  Obviously, if advisory, the Board would then decide what, if any action it would take, but it would do so with some idea of the public's mood.  If binding, the results would stand as the electorate decided at least until the Board was reconstituted or until the Board found some other approach to achieve the end if that were possible.

If property taxes were increased by $2,000,000 annually, the increase in village taxes over 2008 would be some 20.5% without consideration for any other line item increases in the village budget. It is unrealistic to assume that all other expenses will remain constant.  If the amount were to be borrowed, the debt service would be part of the tax increase each year so that both the amount spent each year plus interest would be added to the tax bills over a number of years.

The village's portion of our total tax bill in 2008 was 24.52%; that share would climb to 30.67% if all other taxing units remained at 2008 levels which, unfortunately, is very unlikely.  The actual increase in total property taxes due to the village's portion of the total could be something in the range of 1% to 2% I would suspect.

Use of a referendum will please some people and anger others.  Some will say that this gives the voter the direct voice on specific items that they otherwise lack in representative government.  Others will say the referendum gives the Board a place to hide; still others will say that there should be no referendum.

There are several questions that come to mind about which you may wish to make your views known:

1.  Do we need $2 million worth of road repair every year?  For how many years?

2.  What portion of the village's road surfaces need to be repaired today? 

3.  Have past Boards avoided their responsibilities and not funded road repairs properly?

4.  Is a referendum a good idea or is it a convenient tool for a Board that doesn't wish to stake out a position that may be very unpopular?

5.  If this referendum appears on the ballot, what impact will that have on any issue the School Board may advance at the same time?

6.  If we are to see a referendum, should it be simply an advisory referendum or should it bind the Board to a specific direction?

What think you G'town?


 

State Senate 'Debate'...Chapter Four

By Al Campbell
Friday, Jun 20 2008, 08:35 AM

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'.


 

Germantown School District...

By Al Campbell
Friday, May 16 2008, 08:29 AM

I received an email from a regular reader this morning asking me what my opinion was concerning the announcement that the elementary school bond issue will be back on the November ballot.  He forced me to give thought to something I had managed to push from my mind for about a week, but that hiatus is over.

First, let me say that I think the district has had a poor public relations week.  The announcement that the bond issue, apparently unchanged, is expected to be on the ballot in November was probably awkward enough.  Then, we learn of the expected budget deficit for the current year, and we learn that the proposed budget will require a property tax increase if approved as explained.

I've not engaged anyone from the district on the subject of the reappearance of the bond issue, and have had no contact regarding budget shortfalls.

There was some analysis done as the result of the spring election where the bond issue was defeated.  That apparently showed some interesting results when reviewed area by area.  Remember that the Germantown School District encompasses more than simply the Village of Germantown.  The most recent election apparently showed results indicating that some non-village areas were quite opposed while the village proper was more evenly split, or at least that is my recollection.

My supposition, and it is only that, is this:  November will see a significantly higher turn-out of voters.  The district may have reasoned that this will be a 'fairer' review of the proposal and it may have reasoned that the outlying non-village areas' votes might be outweighed by greater village turn-out, desiring to take its chances on that populations' decision this time around.

Beyond this, the budget deficit is understandable given the economic conditions we're experiencing.  Energy and food costs are up significantly and those are the primary areas identified as the 'culprits' in the budget shortfall.  The fact that preliminary budget numbers for the next period are reflecting the need for greater revenue is not surprising on its face.  The amount of the deficit and the amount of the need for the next period will be of more interest.  The tactics employed by the school board and the district administration in meeting these issues will be very informative.  We are in a superintendent 'lame duck' position and the new person selected will have had little, if any, substantial input by the time hiring decisions have been taken.

I must say that I'm disappointed with this confluence of events.  I don't know what, if any, press releases may have been issued on the bond issue decision.  If there were such releases, there is little indication of that fact since the news was simply dropped in our laps without forewarning or preparation for receipt of the news.  Then, to see the news about the current and prospective budgets pop up within days, citizens were subjected to what in our small world is tantamount to a 'media blitz'.

I fear that some significant damage has been done to the district's credibility on both issues whether or not deserved.  Those opposed to the bond issue have a ready-made counter offensive dropped into their laps.  Those who favored the bond issue have been embarrassed, self included.

All the old bromides about school boards being more interested in buildings than students, etc., etc. will be front and center during the election season.  And, frankly, the district has brought that unto itself whether through arrogance or ignorance or simple mishandling.


 

Budget Bill Repairs To Be Voted...

By Al Campbell
Monday, May 12 2008, 03:38 PM

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.


 

Good Old, Reliable MATC...

By Al Campbell
Wednesday, Apr 23 2008, 08:58 AM

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.


 

Surprise! Rich Get Richer Faster Than Poor...

By Al Campbell
Wednesday, Apr 9 2008, 08:32 AM

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!


 

Assembly & Senate Finished Except For Budget Repair...

By Al Campbell
Monday, Mar 17 2008, 09:29 AM

This is one of the periods that are often joked about by the citizenry.  With no sessions being conducted in Madison, we all can feel a little less threatened.  The major snag in that logic at the moment is that both houses will continue to debate the budget repair needs given the anticipated revenue shortfall of some $650 Million.  I have discussed the primary differences between the Governor and his Democrats and the Republicans often in past Blogs. 

What got done and what didn't get done during the session now ended?

    • We are still without a photo ID law to assure that only Wisconsin citizens who are entitled to vote are voting.
      • Thank the Democrats for blocking this necessary legislation again.
    • Our elected officials at the State level continue to enjoy the largess of Sick Leave accumulation.
      • Thank the Democrats for continuing this little 'cookie jar' benefit at our expense.
    • Cell phones are not part of the do-not-call list in Wisconsin.
      • Thank the Republicans for mysteriously not taking this up in the Assembly.
    • Economic development proposed by Governor Doyle was killed.
      • Thank his fellow Democrats in the Senate for this being killed because it supposedly cost too much.
    • The gun database still does not carry information about involuntary mental health commitments.
      • Thank the Senate Democrats for killing this common sense initiative; maybe they want to simply ban all guns.
    • Psychological examinations for new full-time police officers still not a requirement.
      • Thank the Republican Assembly for not even debating this change even though it makes sense.
    • Property rights won a victory over the anti-smoking groups.
      • Thank both the Assembly and Senate for not giving away our personal rights and for letting merchants decide if they will be smoke-free.
    • Virtual schools will be permitted to exist after heated arguments for and against.
      • Thank both the Assembly and Senate for reaching a compromise that Governor Doyle dared not kill off even though his WEAC money machine dearly wanted this dead.
    • The 'Frankenstein Veto' provision will be put to the citizens as a proposed Constitutional Amendment.
      • Thank the Democrat-controlled Senate for finally agreeing to let this pass after the Assembly gave it bipartisan support.
    • Healthy Wisconsin was defeated.
      • This is a great victory of common sense over politics thanks to all elected officials who voted against it, and that is primarily the Republicans in both the Assembly and Senate.

So, how do we grade the overall efforts and results of the Assembly and Senate?  It has to be a mixed grade at best.  Maybe in the 'C+' to 'B-' range.  Our state budget spends too much money even though Republicans did their level best to reduce it even more than they did. 

The two branches again showed us how dysfunctional our government can be.  The bad side of that is that things of value to the citizenry were lost.  The good side of that is that a lot of bad 'stuff' got tossed in the garbage can.

Maybe we can get a decent budget repair bill put together and lessen the hit on the taxpayers' wallets and purses.  That would raise my grade by nearly a full point.


 

Exasperated?

By Al Campbell
Friday, Feb 15 2008, 09:46 AM

Am I the only person who is exasperated with our state and national political/tax scene?  I doubt that very much. 

As I watch the 'Amazing Obama' versus 'Deserving Hillary' race unfold, I see a real race as to which can promise greater tax increases/profit confiscation to the tune of TRILLIONS of dollars.  What is even more amazing to me is the blatant approach both are taking...coupled with the seeming lack of perception their two groups of supporters have of what they're getting into.  These two people are socialist/populists so far as I can see.  There is the inevitable class warfare coupled with promises that neither will ever be able to keep...thank goodness!  And, it seems, with every passing day, that Barack Obama will wrest this nomination away from Hillary Clinton unless the Clinton 'machine' is able to do him in...and that cannot be discounted.

Then, I read of our state's revenue collection shortfalls totaling something in the range of $650 Million by the middle of next year.  And, I hear the 'solutions' offered by Governor Doyle and by the Republicans.

On the one hand, we are collecting $650 Million less than projected due to an economic downturn.  That economic downturn is, in large part, caused by heavy taxation in our state.  We have all learned, if we'll admit it to ourselves, that lower tax rates increase revenue collections since they stimulate the economy.  Let us keep more of what we earn, and we'll find ways to earn even more than we were before, and tax collections increase.

Governor Doyle would combine his already once-defeated tax on hospitals (which will exacerbate the health care cost crisis), and delay some of the tax decreases that were part of the so-called 'bipartisan' budget passed just a few short months ago.  In essence, his solution is to raise taxes to get us out of our economic slump.

Fortunately, the Republicans are, so far at least, saying there can be no new taxes and there must be spending reductions instead.  Sen. Alberta Darling is releasing today her "Stay In Wisconsin" program.  That program represents her agenda aimed at keeping seniors, students and working families in Wisconsin.  We talked just days ago about Wisconsin's outflow of population.  Her package of proposals would eliminate the Estate Tax, increase the Property Tax Credit for seniors, eliminate tax on Social Security income, increase Tax Exemption limits, make Student Loan interest fully deductible, along with a few other things including evidenced-based health care reform. 

Probably the biggest boost would come from what Sen. Darling calls 'Invest Wisconsin 2.0'.  That includes the following:

  • a 1% across the board income tax cut for all Wisconsin taxpayers
  • Capital Gains reinvestment
  • Angel Investment tax credit
  • Education tax credit
  • Green Data Center tax credit
  • NanoSTEM research initiative
  • Nanotechnology tax credit
  • Product liability reform
  • Expert Witness reform
  • Jobs Preservation

The Governor seems intent on raising taxes to increase revenue while many Republicans are pointing in the direction of economic stimulation as the solution. 

I don't know about you, but I am just about at my tax paying limit.  I'd much rather help pay for a new elementary school in Germantown than add more money to the state's tax collection coffers.  The return on investment seems much better if we invest locally while our state stimulates the economy instead of increase taxes.

By the way, the idea of reducing expenditures when income lags is something that just about everyone of us has had to to do at one time or another.  Isn't it the state's turn to practice that simple budget technique for awhile?


 

Plethora Of Points...

By Al Campbell
Monday, Jan 28 2008, 09:41 AM

Earmarks...

The Republicans are fighting amongst themselves over whether or not to try to control their budget 'earmarks', and if so, how to proceed.  The party's elected members met over the week-end and failed to take any real steps to end earmarks.  The President is expected to address earmarks in his State of the Union address this evening.  It is reported that he will tell Congress that he'll veto any appropriation bills for 2009 that have greater than 50% as much in the way of earmarks as the same bill in 2008 carried.

That is a start, but until we have convinced our elected officials that they are spending our money and not their money, we will make little if any real progress.

And, this may well be the only true bipartisan area we have.  It is an affliction of both major parties as well as the small group calling themselves independents.

Limits On The WCCA...

WCCA stands for Wisconsin Consolidated Court Automation and it has a website that you can access here.

This site permits any citizen to locate information about court decisions, charges filed, cases scheduled and so on by county.  If you have an interest in where the case involving John and Jane Doe stands, you would access the site, pick the county (if you know it) and key in one of the names.  You'll then see the actions that have been taken, dismissals if that is the case, etc.

For some strange reason there have been two recent attempts to limit public access.  Last summer, two Democrats (Schneider of Wisconsin Rapids and Kessler of Milwaukee) mounted such an effort.  They would've permitted access only for court officials, law enforcement personnel, attorneys and journalists.  Now Rep. Vos (R-Racine) and Sen. Lassa (D-Stevens Point) want to limit access by removing certain cases from this site.  Those cases or charges would include a civil forfeiture or misdemeanor within 90 days after dismissal, a finding of not guilty or if the case has been overturned on appeal and then dismissed.  Felonies would carry the same requirement except the time frame would be extended to 120 days.

Both of these efforts are misguided at best and an assault on our rights at worst.  Wouldn't the accused rather have the information there for all to see if he or she had been absolved or if the case had been dismissed.  Why would we be concerned about those convicted? 

An example of the significance can be found in articles now running in the Journal Sentinel concerning physicians who have been involved in numerous complaints alledging malpractice over the course of time.  Many of those records would become unavailable under these efforts to wipe the slate clean.  This is not only an assault on our rights but it is also potentially going to endanger lives.

Anti-Gun Proposals...

Many in the group that would outlaw ownership of guns, or the group that wants to ban the carrying of guns (that is legal in 47 other states) would have us believe that their solution is the answer.

Here are some snippets that seem to point in the other direction:

  • New Jersey adopted a very strict gun law in 1966 and by 1968 the murder rate was up 46% and the robbery rate was up nearly 100%.
  • Hawaii adopted a series of anti-gun laws and its murder rate tripled over the next ten years.
  • Washington, D.C. imposed strict gun control laws in 1976; its murder rate has grown by 134% since.
  • England banned handgun ownership in 1997, and the number of citizens injured by firearms has more than doubled since.
  • Prior to these actions, the statistics cited had been falling.

When guns are banned, only the bad guys have guns.  In states where concealed carry laws are in place, the bad guys really have to think hard about trying anything.

Miller Executive Dies In Walkers Point Shooting...

The Director of Compensation and Benefits for Miller Brewing was killed at about 1:10AM on Sunday morning after leaving a bar in Walkers Point.  He was accosted by a robber, gave the person his wallet and was then shot to death as he sat in his auto.

The concern immediately arose over whether Milwaukee would suffer as the result of this in the process that is now ongoing as to where the headquarters of the new combined Miller Coors will be located.  It is reported that crime and homicide rates rank first in the equation that most corporations use to determine quality of life rankings.  The Journal Sentinel reported this morning, and I paraphrase, that Milwaukee is 2.3% larger in population than Denver, has 228% more violent crime including 263% more homicides.  This is extrapolated from the FBI's statistics for the first half of 2007 that were recently released.

Would you think about that if you were making the decision?  Would you add in the fact that MPS is graduating 50% or fewer of all students that start as freshmen?


 

Bold 2008 Prognostication...

By Al Campbell
Sunday, Dec 30 2007, 09:55 AM

Maybe bold is a bit overdramatic; these things are almost certainly going to occur during the next twelve months...and probably during the next twelve months after that.

HEALTHCARE COSTS CONTINUE TO RISE...Of course that will happen as it has been happening for a long, long time now. 

We'll know what our healthcare delivery landscape will look like as we move through 2008.  We will be in the process of building too many facilities and that will ultimately drive costs up at an even greater pace.  We'll see the consolidation wave cresting and then we'll effectively have a couple of behemoths.  And that will ultimately drive health care costs up at an even greater pace.  We'll have continuing debate over the governmental control of our healthcare; and that holds within it forebodings for us all if we take the seemingly 'easy' pathway to universal coverage.  Government will continue to blame health insurance companies while it meddles in the free marketplace to the detriment of us all.  Will we be able to work our way through this coming year in healthcare?

TAXES WILL CONTINUE INCREASING...Again, of course this will happen as surely as the sun rises in the morning.

Our governmental bodies from village to state to federal continue to spend at a pace that simply cannot be sustained without damaging the economy.  Programs once instituted never die.  If funding channels go away (read cigarette taxes), the programs are simply shifted to using 'general purpose funds'.  And, as if the idea of never killing off useless tax-funded programs isn't bad enough by itself, our various government bodies add new tax-funded programs willy-nilly.  Our state budget just approved carries with it unfunded future obligations of something in the range of a billion dollars for the next biennium.  Our federal budget carries within it the same type of mischief.  Our politicos are absolutely addicted to 'earmarks' and those infect state budgets as well as federal budgets.

EDUCATION WILL CONTINUE TO BE DEBATED...And this, too, is a virtual given.

The primary state teacher's union, WEAC, has still not extracted its payback for the massive support provided to the Governor and many elected representatives.  Look for the QEO provision to be attacked and possibly thrown out if Democrats gain control of the Assembly in addition to the Senate and Governor's mansion.  Milwaukee's system will continue to move in precisely the wrong direction so far as numbers of graduates, test scores and almost every other measurable area.  Germantown's petition to move from MATC to another technical college district will be heard by the state technical college board, and only a miracle will see that petition granted.  We will have been accorded our 'due process' but come to realize that appointed boards do not provide 'due process'.  Virtual schooling will continue to be assailed by the teachers' unions...even though union member teachers are employed in those programs.  Why you ask?  Competition seems to be a great idea in everything but education, where the establishment simply cannot tolerate the possibility that we'll come to realize the king has no clothes.  There will be more referenda, and those that are properly presented will be voted on their merits from the electorates' perspective.  'Properly presented' means that the referenda are scheduled during an existing election, and not on some obscure date calculated to bring out only the 'right' voters.  'Properly presented' means that teachers and administrators are not employing taxpayer money to make their case, and that all the facts are presented well in advance to permit reasoned public debate.

ELECTIONS WILL DETERMINE THE WILL OF THE PEOPLE...And that is truly the hallmark of our country.

Our state government will be re-shaped and a Democrat sweep, should that occur, will virtually assure the we'll have universal health care called 'Healthy Wisconsin Two', higher taxes across the board, and fewer freedoms as government sucks up more of the available air.  We'll have more tax and spend programs that will take on lives of their own, and conservatives will trudge through the political wilderness for another decade or two.  Our Governor, who promised this would be his last term, has apparently decided that we need him for another term of four years.  Of course we expected that since other promises like 'no tax increases' have been conveniently forgotten, as well.

The federal scene holds a similar scenario.  People will need to evolve beyond the still-controversial 'hanging chad' feelings.  There was no Supreme Court fiat involved in the Florida race; that was a contrived attempt by the loser to fan the flames and get into office because he 'deserved it'.  So, he then went on to exploit the 'global warming' thing instead, while emitting more pollution that a thousand or more normal folks.  We'll have a new President-Elect by year-end.  The Iraq war seems to be less and less an issue as the press finally tells a more positive story...that has been going on for much longer than has been told.  The attempt to convince people that we're in a recession seems to be failing, but Congress still tries to make that happen with tax legislation.  For the first time since 1952, we have a wide-open race on both sides of the aisle.  What will happen if a strong third party candidate 'suddenly' emerges...like the 'sudden' emergence of Mayor Bloomberg of New York (as has been rumored for months now)?  That will throw everything into the proverbial 'cocked hat' on both the Democrat and Republican sides.  Yet another reason why congressional seats are so important.

2008 promises to be a very exciting and rewarding year, just as all the other years I remember have held great promise coupled with the aura of excitement...if we can but sieze those opportunities.

May you and yours enjoy a most healthy, happy and prosperous 2008...no matter your politics!


 
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