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!

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.

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.

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!

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 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.

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?

Seemingly everytime we pick up a newspaper or periodical we see that health care costs have risen again.  The only real question anymore is 'How Much?'.  Of course, if we still have health insurance, the premium rates continue to go up and up.  What in the world can we do about this?  Would statewide mandatory insurance coverage do the trick?  Can we somehow legislate lower insurance premiums?  Are the drug companies really the culprits?  Maybe we simply need to move to Canada or Europe.

Recent studies show that our national health care spending increased in 2006 by 6.7% to $2.1 trillion.  That means that one out of every six dollars spent in our national economy goes for health care.  The 'good news' in this staggering number is that this is actually slower growth than we saw for 2005.  Apparently we're going in the right direction, even if too slowly.

Another amazing fact, to me at least, is the amount of 'out-of-pocket' spending each of us averages after insurance premiums, etc.  In 2006, we spent, on average, 12% out-of-pocket for our health care expenses.  Know what we spent out-of-pocket in 1960?  We spent 47% out-of-pocket for health care expenses. 

That means that we are shielded to a much greater degree today from our real health care costs than we were in 1960.  Our out-of-pocket costs have decreased steadily since 1960.  We are often at the point today where we think of the cost of health care as being the $10 or $20 co-pay we have to come up with when we go to see the doctor.  Or, the $20 or $30 dollars we have to cough up for medicines.  Those amounts are very small percentages of the total costs.

Why is this important?  It is important because we need to think about what we're spending if we're ever going to be able to bring this cost spiral under control.  If we come to understand that the real cost of the doctor visit is in the range of $125 to $150 or more, we can begin to understand that maybe we shouldn't be running to the doctor everytime we have a runny nose or a cough.

Another very interesting fact is this:  more than 50% of all health care claims costs in America today are to cover lifestyle-related illnesses.  Those are the things that you and I can control to one degree or another.  But, we can't control them if we don't know about it or if we choose not to do anything about it.  What are 'lifestyle' issues?  Smoking, alcohol use, obesity and simply laying around doing no exercise.

Does this apply to us?  Here are the most current facts:  One in every four Americans eat fast food every day!  Six of ten Americans do not exercise or seldom exercise!  Two of every three Americans are classified as either overweight or obese!

This is the real source of our health care cost crisis.  We have met the enemy and it is us!

No mandatory state programs, or profit controls on drug companies or anything else is going to solve this problem.  The simple truth is that this is up to us.  All the rest of these proposals are simply pablum calculated to make us feel good.

That is why this 'stuff' is flowing from the mouths of politicans.  And it does nothing to solve the problem!

Let your politicians know that you understand this.  If they really want to help us, they'll begin an educational program using some of the 'smoker money' to get the true message out.  And, be sure to tell them we do not want laws banning fast food or drinking or smoking.  We need to take responsibility for ourselves.  No one else can do that for us.  The marketplace will make its own corrections just as you've begun to see with the menu changes going on in the world of fast foods, for example.

Maybe if insurance companies were permitted to charge people what we deserve to be charged based on our lifestyle habits, we'd begin to see these changes occur.  If I smoke, I pay more.  If I'm overweight, I pay a surcharge.  Make me feel my wallet lightening up if I don't take personal responsibility (just don't think this is your new way to raise taxes). 

Don't just continue to blame big health, or big drugs or big insurance!  You are doing nothing but pandering when you resort to this, and we're on to you!

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!

"Timing of gift questioned" was the headline of Tom Kertscher's column in the morning Journal Sentinel.  That may well be a classic understatement, although I'm sure Mr. Kertscher needs to remain less 'curmudgeonly' than do I.

This is a blatant attempt to grease the skids for the denial of Germantown's soon-to-be-presented petition to the state technical college board.  MATC has not presented "free" computers to any other community and yet it has done so twice now for Germantown.  This coupled with the recent appointment of Germantown's Superintendent to the MATC board certainly shows that MATC is where we need to be sending our money.  This provides the technical college board a 'hidey-hole' from which they can summarily dismiss our petition.

These so-called "free" computers carry a very heavy price in my opinion.  The property tax increase alone to be collected from Germantown citizens will be in the hundreds of thousands of dollars.  Let's say, for argument, that the increase in MATC's property tax collection will be $300,000.  If that were the case, then the "free" computers cost only about $15,000 each.  Too tough on MATC?  Okay.  Let's say they'll gather only $200,000.  Then each "free" computer will have only cost us about $10,000.  If we add the historic annual over-payment extracted from us without a voice, the cost is in the millions of dollars for "free" laptop computers.

Then there is this whole question of accountability.  Actually, there is a question as to UNaccountability.  How in the world is it that this frugally-run institution can come up with this kind of money when we didn't even request their assistance?  How is it that this appropriation didn't even require board approval?  How is it that WCTC actually sells its used computers at the end of their useful lives, let alone not giving "free" computers to communities in its district?

It appears this could well be validation that the inmates run this asylum.

No connection?  Please spare us the obvious truth-stretching.  Why else would we receive this largess at this time without knowing it was coming or even having made a request for such consideration?  Of course there is a connection.  To try to convince us otherwise gives us a very real look into the utter disregard with which us taxpayers of Germantown are held. 

We not only have no voice, we deserve no voice because we don't know enough to come in from the cold!

The CRG study published last year raised some additional points that suggest serious issues.

The composition of the board lends itself to decisions that do not reflect the circumstances of the general populace.  Two members are elected officials, three members are in the public sector heavily represented by unions, another is a business manager for a union local, one is a lawyer and and another is a consultant for a firm representing special interests.  The vast majority of the board at that time, seven members, came from the public sector and/or an environment tied to organized labor.  Many have personal wage and benefit packages that are similar to those found at MATC.  Given their perspective, it seems clear why special interests are better represented than is the average taxpayer.

Board member e-mails were obtained through open records requests.  Following are highlights:

In discussing financial decision-making, then board member Dr. William Hughes (Superintendent of the Greendale School District) writes to fellow board member Mark Maierle (Business Manager of Operating Engineers Local 317) on March 30, 2005 at 7:54AM: "In the end, a budget with over 90% perhaps as high as 94% of funds going to payroll, benefits and pensions MATC will need all the revenue it can generate."  Dr. Hughes continued at 9:31AM that morning: "the general public does not pay attention to the goings on at MATC"

The focus is obviously that of generating more revenue, and not that of managing costs.  MATC revenue comes from the taxpayers and the students.  The implication is that taxes and tuitions can be increased since the public pays no attention.

On May 23, 2005 at 10:13AM, board member Lauren Baker (program coordinator with Milwaukee Public Schools) writes to Mark Maierle regarding MATC child care expenditures: "Jeskiewitz (State Representative Sue Jeskiewitz) thought it was OK when we explained that the centers were used as learning labs.  The administration has not pursued that line of reasoning.  Craig P. thought we should charge the child care expense to teaching and learning, thus making the centers run as a learning lab...Remember, Jeskiewitz is a Republican and needs to be vocal on these issues.  I've never felt compelled to set policy based on what Alberta (State Senator Alberta Darling) and Jeskiewitz tell us...We need to have a sophisticated view of the politics in Madison or we will be jerked around"

The apparent philosophy is that lying to politicians is "political sophistication".  The Board promotes funneling "Child Care" into another budget, thus representing it as something other than babysitting at taxpayers' expense.

On March 31, 2005 at 8:45AM, Mark Maierle writes to board member Peter Earle (Lawyer) about a person's observation that Darnell Cole (MATC President) is tight with the union, and the union holds an axe over the Board's head.  "I believe his criticism of Cole came from his perception that Cole was in the union's pocket.  It sounds like the union is again threatening a no-confidence vote.  The Board has had this ax held to our heads long enough." It seems as though the special interests get their way, and the taxpayers get stuck with the bill.

This simply continues the process of establishing that MATC is poorly managed and unlikely to change of its own volition.  Germantown's petitions are not simply driven by taxes.  The state technical college board must come to grips with this rogue operation for which it has responsibility.  We citizens of Germantown cannot possibly be compelled by the state board to continue to support this abomination...unless that board and the Governor who appoints it are to be held equally complicit.

The Perspectives page of the October 10th Journal Sentinel contained an Op-Ed by Bob Herbert, columnist for the New York Times, titled "Gaming the system presents illusion of success".  Beneath that was an Op-Ed by Elizabeth Burmaster, Wisconsin's superintendent of public instruction, titled "Accountability and flexibility are important".  As you would suspect, this was a "Point/Counter-Point" approach to a topic I Blogged about under "Quick Hits" on October 4th.

Bob Herbert raised some very important issues.  Among those were:

• It is questionable if tests such as these are anything more than a 'shell game'
• If teachers, administrators, politicians and others have a stake, they can raise test scores by any number of means
• You can raise test scores the hard way, or you can figure out ways to 'game' the system
• Of the six 'good studies' conducted since the 1970s as to whether the test scores could be believed, all found really substantial inflation of test scores
• One big problem with the No Child Left Behind law is that it permits the states themselves to define 'proficiency' and to create the tests
• That is absurd; with no guiding standard, the states' tests are without meaning
• The people in charge of most school districts would rather jump from the roof of a tall building than allow an unfettered study of their test practices
• By not rigorously analyzing the phenomenon of high-stakes testing, "we're creating an illusion of success that is really nice for everyone in the system except the kids"

Elizabeth Burmaster opined along these lines:

• Raising student achievement for all students must be our No.1 priority in Wisconsin
• This is more than an education issue; it is a moral and social justice issue
• A  federal education law is only as effective as its credibility at the local level
• Educators are committed to the intent of the law but are distracted by its complexity and burdensome requirements
• The greatest problem with this law is that people feel it is a punitive law more concerned with sanctions and labels for schools than with helping all children learn
• The law mandates how states and school districts are held accountable for student achievement in reading and mathematics on statewide standardized tests
• But, Wisconsin citizens expect more than just good test-takers
• A quality education is one that addresses the social, cognitive, emotional and physical needs of diverse learners
• While state standardized tests have a role in accountability, they are not adequate in providing parents a clear picture of how well schools are doing
• The current law does not recognize student growth in achievement from year-to-year
• The reauthorized law must allow multiple measures of student achievement; it must encourage innovation without reducing accountability for results
• Congress has the opportunity through reauthorization of this law to strengthen public education by moving from overly prescriptive compliance to community-based innovation and accountability that makes sense

On the one side, we see a discussion of how the law, No Child Left Behind, can be manipulated to show states as being accountable when that may not be true.  On the other side, we see a very defensive discussion, using high-sounding phrases, of why states ought to be given every opportunity to do things in a way that will make them seem successful.

The standardized results testing showed us at a significant deficit compared to what the Wisconsin-created tests showed.  Can we rely on the pontification of 'Queen' Elizabeth or should we heed the warnings of Bob Herbert?  Who has the most to gain personally in this debate by relaxation of testing standards?  Queen Elizabeth. 

Who has the most to lose by relaxation of testing standards?  Our students.