Time to show appreciation for public servants

Snow and icicles outside my office window from the January 2012 snow and ice storm

The aftermath of the snowstorm from my office window.

Hopefully by now you’ve dug yourself out of the snow/ice mess we found ourselves in this week. While I enjoy it from time to time, I think it should know its place and not interfere with our lives and important business.

But when it doesn’t, I’m reminded of the incredible job done by our public servants. While most people were bundled up at home with their families, our public works crews were out plowing, de-icing, and sanding the roads. When trees gave way to the weight, they were there to remove them. Despite the very real danger they faced in such conditions, they had a job and did it well.

Unfortunately emergencies also don’t stop when weather attacks. Police and fire units were still out keeping us safe from more direct harm during the storm. I know I felt better  that despite conditions, someone would get to my pregnant sister should she need medical assistance. When even the Narrows Bridge posed a mortal danger to the lives of commuters, state troopers and transportation workers were there to assess the threat and take action.

Like so many of our weather events, utility workers at public and quasi-public companies had to fight the elements to keep our power on. This isn’t just a personal comfort issue any more, our economy depends upon it.

Even people you’d traditionally associate with office work had to be called into service with emergency management, disseminating important information, and just being there to pick up the phone.

In the end, a lot of very long hours and hard work by our public servants was the difference between inconvenience and disaster.

What’s my point? Since the start of this recession, attacks on public employees have grown rapidly – particularly in and around the Tea Party. They’ve portrayed our public servants as lazy or thuggish and living off the “productive class” in the private sector. We’ve balanced our budgets on their backs but some people still seem to take joy in laying-off even more. The implicit and sometimes explicit assumption is that they’re not worth the money we pay them as taxpayers.

Even though our employee guilds could probably tell you I’ve disagreed with them at the margins, by and large we get enormous value from the job they do. We might notice it more in weeks like this, but people don’t really think about it when they turn on their faucet on or flush their toilet and water comes out.

We even see it in our newspapers demanding that government tighten its belt just like families have had to. With apologies to journos, who happen to be another underpaid and under-appreciated class of workers, this analogy is idiotic. Cutting a government budget is nothing like eating out less or cutting your cable bill. These are services we need as a society. Some of them are even the result of people being unable to keep up with their own family budget. In fact, in most cases the cuts just do more economic damage. Most people aren’t even aware that it’s largely been government cuts holding our economic growth back.

For some reason the people who actually are overpaid, actually did cause this recession, and provide our economy with little value – Wall Street – have managed to turn regular workers against each other. That’s not to say that we should ever hand public unions and guilds the keys to the treasury. There are isolated examples of this around the country and it never ends well for anyone. It’s important that we compensate fairly within market – not more or less. But the demonization of the people who serve us that has to stop.

We’ve been buried recently in studies of Finland’s education system because ours is rapidly decaying while theirs is ostensibly the best. Groups with varying agendas have learned a lot of lessons, usually that suit their agenda, but there is one critical difference between their schools and ours that is pretty simple. They treat their teachers with more respect.  People aspire to become teachers in Finland, not just because of the pay, but because it is a high status job. As a result, their “best and brightest” become educators.

If we want to have great government, we can’t continue to treat the people who work in it as though they are burdens on society. Thank them for their hard work, or maybe share how it made a positive impact on your life. I guarantee they’ll appreciate it.

Update 1/21 11:01am: My friend Andrew Austin from the Transportation Choices Coalition noticed a rather obvious omission…. transit workers. It wasn’t meant to be an exhaustive list, but public transit is always bailing commuters out when the weather gets nasty and manage to keep people safe in the process.

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Rick Perry wants to re-invade Iraq to defend it from light speed Persians

Rick Perry has had a lot of weird debate moments but I think this answer last night might be the coup de grâce for his limping campaign.

When asked a question about Iraq, from which we recently withdrew our last troops after an 8 year war, Perry said that he’d redeploy them there. Hawkish positions aren’t unique in the GOP, but his rationale is pretty odd. He says he doesn’t want to let the Iranians to come back into Iraq and take it over.

Perhaps he’s thinking of the Persian Empire, but I can’t think of a time more recently where Iran had taken over Iraq. He goes on to say that it would waste all that blood and treasure we’ve spent in Iraq, apparently forgetting we invaded to get rid of WMD that never turned up. However, it was precisely our invasion of Iraq that has allowed Iran to increase their influence there. The country is dominated by their Shi’a brethren. Many of their leaders even lived in Iran in exile under Saddam. So he wants to invade Iraq again to stop the thing that our invasion caused.

Don’t spend too much time trying to untangle that logic spaghetti.

According to Perry, all this is being done by Obama to placate his “liberal leftist” supporters. But I seem to recall the President winning an election based in part on his promise to withdraw. In fact, 75% of Americans support the decision. Even within the GOP Rep. Ron Paul has drawn a large following that helped him kick Rick Perry’s rear in Iowa based on a non-interventionist foreign policy platform.

But the final flourish was magnificent craziness. While repeating his claim that Iran will move into Iraq, he says that they will do it “literally at light speed.” I think one of two things could be going on here.

  1. Rick Perry has no idea what “literally” means.
  2. Rick Perry thinks Persians are able to bend the laws of physics and/or they’re from the future.

It also leaves me with a final question. Do they let just anyone be governor in Texas?

Check out the video here.


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QOTD: Can an elected hold two offices at once?

An interesting “question of the day” has popped up over in our neighboring City of University Place. Like cities all over Washington, these first weeks of the year are time to swear in new and returning electeds. Last night in UP, newly elected Councilmember Chris Nye was one of them.

What made this interesting is that he announced this morning that he would also be running for the County Council district 4 seat that now covers UP. You may recall from a previous discussion that the district maps were redrawn and UP was removed from our 7th district. District 4 will be open next year with Councilmember Tim Farrell of Tacoma term-limited, so people are lining up to replace him.

After some initial confusion that he planned to abandon his City Council seat so shortly after winning it, Nye told the UP Patch:

“There is no state law that says I can’t do both,” Nye told Patch today. “Until the state Legislature says I can’t, I’m going to try.”

——————————————————————

“There is a lot of synergy between the two positions,” he said. “That will work well.”

Nye is correct that the Legislature is fairly silent on the matter. He says that he had lawyers look into it and came up with nothing, but I think it’s likely he still could not hold both positions. The reason is an old but little known matter of common law called the “doctrine of incompatible offices.”

Before I go on, here’s the reminder that I’m not an attorney and nobody should rely on my opinion, blah blah blah.

Basically the doctrine of incompatible offices means public officials cannot hold more than one office when their nature and duties prevent the performance of those duties faithfully and IMPARTIALLY at all times. Unlike normal conflicts of interest that might arise from the officeholders private life, recusal is not a cure. So the standard set by the courts is whether or not they ever come into conflict. Based on my experience in dealing with the County as one of its municipalities, the answer is unquestionably yes.

In addition to governing the unincorporated areas of the county, the Council functions as a regional planning authority ultimately approving of our comprehensive plans, establishing common land use policies, and even has final say on our boundaries. Just this year UP has been working to become a “center” which steers regional transportation dollars in exchange for adopting employment and housing targets. While requested by the city, ultimately the county would make the decision.

Our interactions with the county are near constant; some issues are relatively routine, but others are not. Consider the subject of police in UP and Lakewood where they contracted with the Sheriff to provide police services. Those types of agreements would inevitably create a conflict.

In 1978 Senator Slade Gorton, then Washington’s Attorney General, wrote an opinion on the subject. Attorney General opinions are not law, but an estimate of how courts would rule from our state’s legal experts, and therefore frequently cited. In this case the conflict was much more remote and asked if a small town mayor could serve on a port commission that encompassed their boundaries. But they cite a case with an even more remote interest.

For a previous example of this latter application of the doctrine we would refer you to AGO 65-66 No. 7 [[to R.A. Hensel, Prosecuting Attorney of Douglas County, on February 9, 1965]], a copy of which is also enclosed, where we concluded that in a county in which federal forest funds are dispersed to the school districts therein the offices of county commissioner and school district director are incompatible.

Keep in mind, these federal pass-through funds are typically distributed automatically and don’t involve their respective political bodies. Even still the court saw it as an untenable conflict.

For a county and city, the real problem relates to land use where the county and its cities have overlapping jurisdiction and statutory responsibilities.

it is now clear that to the extent they are territorially situated within the boundaries of an incorporated city or town, the various public port districts in our state are now subject to both the zoning codes and the building codes of those municipalities.  They thus may make only such use of lands owned by them within those municipalities as is permitted by the zoning ordinances of the latter ‑ and they may only construct their necessary buildings or other structures upon those lands in accordance with the applicable building codes.

This is just saying that the mere possibility of one governing body building something in the other, creates an irreconcilable conflict. Now imagine what they might say if one jurisdiction operated a regional sewer system, golf course, and park facilities in the other. Ironically this is exactly what Nye says has drawn him to this idea, a desire for greater coordination in use of these facilities during the upcoming US Open.

Obviously Councilmember Nye and his constituents will deal with this as they wish, but it’s important that everyone go into it with their eyes open.

 

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Gig Harbor 2012 Event Calender

Our fabulous Marketing Director Laureen Lund has put out this press release that I thought you all might be interested in. It’s our event calender for 2012.

Make sure to visit www.GigHarborGuide.com for details and sign up for newsletter updates.

 Gig Harbor, Wash. – January 3, 2012 – The new year is here and Gig Harbor is ready with a full calendar of events each month.  This small town offers big entertainment options with the wide variety of events, festivals, runs and performances throughout the year.  Below is a list of the main events for 2012.  Information on these events as well as many more events can be found by visiting Gig Harbor’s community website www.gigharborguide.com;

January 14th Race for the Heroes

January 28 & 29th Steppin Up Women’s Conference

February 4th The Art of Chocolate

February 12th Knock Your Socks Off Run

April 7th Gig Harbor Farmers Market Opens

April 21st Parks Appreciation Day

April 28 & 29th Gig Harbor Paddlers Cup and Expo

April 28th Splash Arts Event, Harbor History Museum

May 26th Gig Harbor Street Scramble

June 2 & 3rd Maritime Gig Festival and Blessing of the Fleet

June 26th – Aug 28th Summer Sounds at Skansie Outdoor Concerts (Tuesdays)

June 30 & July 1st Gig Harbor Garden Tour

July 6th – Aug 25th (every other weekend) CinemaGig Outdoor Movies

July 12 & 13th Blue Willow Lavender Fest

July 14th Harbor Wine and Food Festival

July 21 & 22 Gig Harbor Summer Arts Fair

July 29th Cruise the Narrows Classic Car Show

August 18th Olalla Bluegrass Festival

September 1st Over the Narrows 10 mile Run

September 15th Harbor Hounds Walk the Town

September 15th Salute to First Responders

September 15th & 16th Open Studio Tour

September 23rd Race for a Soldier Half Marathon

September 29th Donkey Creek Chum Festival

October 6th Scarecrow Festival and Dirty Dash 5K

October 19th – 21st Gig Harbor Film Festival

October 27th Monster Dash

October 31st Trick or Treat on Harborview

November 22nd Turkey Trot

November 24 & 25 Winterfest Arts and Crafts Fair

December 1st Gig Harbor Annual Tree Lighting

December 1 & 2 Tidefest Art Fair

December 7 – 9th Candlelight Christmas in the Harbor 

Gig Harbor – Washington’s Maritime Village. www.gigharborguide.com

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Putting politicians in charge of revenue forecasts

Economic and Revenue Forecast Council General Fund Chart

This is what the state's Economic and Revenue Forecast Council's reports have looked like for a while.

In this morning’s TNT editorial there is a line that surprised me, putting the blame for the City of Tacoma’s revenue shortfall squarely on the shoulders of their City Council. It’s surprising because it seems to find fault in the Council for trusting their staff’s faulty revenue forecast.

Ultimately, responsibility for this debacle all falls back on the City Council, eight of whose nine members bought into former City Manager Eric Anderson’s bizarrely optimistic expectations about sales tax revenue and union docility.

It’s worth noting that Mr. Anderson is referred to as the “former” City Manager because he was fired by the Council not long ago. No particular reason was given but I wonder if these “bizarrely optimistic expectations” were a part of it. In that case it appears they HAVE taken corrective action.

The point of this post is not to weigh in on Tacoma’s budget, or to absolve their council from any budgetary responsibility. The cuts that need to be made to employee salaries and/or staffing levels are brutal and I’m certainly in no position as an outsider to say what the right decisions are. That said, the health of Tacoma is certainly on my mind. It is the center of Pierce County’s economic world and therefore critical to the region – not to mention my sentimental attachment growing up just across the bridge. As goes Tacoma, so goes the rest of us.

However, I do think it’s an odd position for the TNT’s editorial board to take since they have praised the legislature for putting revenue forecasts in the hands of staff.

Unlike most other states where revenue forecasts are up for debate and negotiation by their respective legislative bodies, Washington has a bipartisan Economic and Revenue Forecast Council. Created in 1984, the ERFC consists of two appointments by the Governor, and one from each caucus in the Legislature, typically their top budget writers. Recommendations are made by their staff of economists which is led by the Chief Economist, Dr. Ahun Raha. As I understand it, the staff’s recommendation is almost always accepted by the ERFC. At the least, they don’t seem far apart. Once agreed upon by the ERFC, the Legislature is bound by law to use this revenue forecast to develop their budget.

Typically this is seen as a more logical way of approaching a budget as revenue estimates can otherwise dissolve into partisan squabbling with more liberal members hoping to spend  imaginary revenue, or conservatives urging more austerity than is necessary. On the flip side, the impact of tax cuts/increases can also devolve quickly. Who can forget our Republican Congressional leaders making the absurd claim that the Bush tax cuts paid for themselves?

Given how difficult these last few budgets have been, I cannot even fathom how awful they would have been if revenue estimates were up for debate by legislators. Politicizing revenue forecasts could turn an already paralyzed legislature into a farce.

Now also consider that throughout this recession, Mr. Raha’s forecasts have almost always been overly optimistic. That’s not to say he’s a bad economist – the length and depth of this recession has surprised almost everyone. We’ve also hit some unforeseeable catastrophe’s like the earthquake & Tsunami in Japan, a huge trade partner for Washington.

The point being, the Legislature has frequently written badly out of balance budgets based in large part on these forecasts. So why is the TNT giving them a pass while heaping blame on the Tacoma City Council?

The reality is that elected officials are poorly equipped to second-guess the expert opinions provided by our staffs, whether it’s the state economist or a city finance director. We’re supposed to be in tune with the spending priorities of our constituents, but not necessarily their collective income/spending habits. We can give them direction on policy, but not how to carry it out.

Imagine a world where a politician redesigns an overpass because they think the engineer did it wrong.

Politician A: I say we cut the amount of rebar back by 10%. This is over-engineered.

Politician B: Well I was going to say that 20% would fit this project well under budget so that we can afford my other priority.

Politician C: Would you both settle for 15%?

Scary right?

In Gig Harbor’s case we rely on the estimates of our Finance Director Dave Rodenbach who in turn, relies on the work of the state economist. It’s true that we were a little slow to react to this downturn, but that’s in part due to history. This was my third recession on the Council but the first that Gig Harbor was not immune to. Once action was taken to right-size spending, this Council has accepted zero growth projections that have been right on target.

This year, for the first time really, I put up something of a challenge to that projection. Staring at the abyss of a possible Eurozone meltdown, I thought it better to lower that to a negative growth projection. It turns out we’ve left enough in reserve that it was not necessary, but this points to the informational disadvantage we as councilmembers have compared to professional staff.

But let’s say that wasn’t the case. Should the rest of the Council trust my judgement over a professional? I’m just basing my opinion on a gut feeling and the estimates of other economists on the impact to our economy. I have no special ability to predict what will really happen. So it seems like that my colleagues on the Council would be more likely to trust that our Finance Director took these concerns into account and move on to appropriations.

Ultimately electeds need to depend on the advice of their staffs for information like this. If they turn out to be spectacularly wrong, replace them. It’s easy to say that their council should have done more and flogging electeds is never unpopular, but in practice, it’s kinda terrifying to put this particular jobs into the hands of politicians rather than leaving it to professionals.

Follow me on Twitter.

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Pierce Transit boundary possibly shrinking

Just sent this press release below. Pour yourself a cup of coffee, tea, or whatever you like to sip on while reading blog posts, I’ll be waiting at the end with an explanation of what it all means.

For Release:  Immediate

Media Contact: Derek Young

Date: Tuesday, December 20, 2011

Phone:  (253) 225-5878

Public Transportation Improvement Conference

Pierce County, WA – On Friday, December 16, 2011, the first meeting of the Public Transportation Improvement Conference was held at the Puyallup Public Library.

The Public Transportation Improvement Conference as outlined by RCW 36.57A.020 was convened by resolution of the Pierce Transit Board of Commission on November 14th 2011. The Conference membership is comprised of one elected official from each city and town within Pierce County and the Pierce County Council. The purpose of this conference is to consider changing the current boundaries of the Pierce Transit Public Transportation Benefit Area.

Councilmember Derek Young of Gig Harbor was selected as Chair and Councilmember Javier Figueroa of University Place as Vice Chair. It was determined that changes in the Pierce Transit Public Transportation Benefit Area (PTBA) boundaries should be considered. The Conference put forward a preliminary delineation that will be sent to each jurisdiction and the Pierce County Council for initial reaction.

The next meeting will be held Friday, January 20, 2012 at 9:00am located at Clover Park Technical College, 4500 Steilacoom Blvd, Lakewood WA, 98499, Building 3, Rotunda Room.   Please visit www.piercetransit.org/ptic.htm for information regarding the Public Transportation Improvement Conference including a map the preliminary delineations, meeting materials and how to make comments to the Conference.

###

All done? Good.

When last February’s vote to increase sales tax and save Pierce Transit service failed, their board was forced to make significant cuts. In some areas, like Eastern Pierce and the Key Peninsula, that means elimination of service. In others, service was reduced.

Understandably, some of these communities were not thrilled with the idea that they would be included in Pierce Transit’s taxing district but wouldn’t have regular service. With that in mind, Pierce Transit’s board convened a Public Transportation Improvement Conference which is tasked with deciding whether or not the boundaries should change.

As noted above, I’ll be representing Gig Harbor and will serve as chair as well.

Here’s a first idea of what a new service area might look like.

Public Transportation Improvement Conference Map

This is the first attempt by the Public Transportation Improvement Conference at creating a new service area for Pierce Transit

As you can see, it removes nearly all of the unincorporated areas of the peninsulas which reflects the new service area on this side of the bridge.

While I represent the City, please don’t hesitate to contact me if you live in those areas and have comments or questions. I should note, however, that our charge is strictly about the boundaries of their service area. I’m not on the Pierce Transit board so I can’t negotiate for service but I can certainly pass those comments to the board.

What do you think?

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Flood control & transit

Puyallup River

Puyallup River

In this morning’s TNT you’ll find an article about the City of Gig Harbor appealing a Determination of Non-Significance (DNS) on Pierce County’s flood control plan. Don’t worry, that’s as much governmentese as I’ll expose you to today.

I wrote about this issue a couple times last year but the basic issue is this – Pierce County has a huge flood control problem along its rivers. It’s adopted a flood control plan that identifies the unfunded yet critical projects in these watersheds while simultaneously pushing creation of a Flood Control Zone District (FCZD).

Pierce County would have you believe these are totally seperate events. We think that’s as absurd as the name of the district. Seriously, zone district? It’s one or the other, not both.

Anyway, it’s an issue of fairness to the Key and Gig Harbor Peninsulas to include in the plan how you intend to pay for it, particularly when you are preparing to tax us to do so.

What do we hope to gain from the appeal? Without going into legal strategy or outcomes, we’re trying to protect the peninsulas from more money crossing the bridge and never coming back.

It is true that the flooding problems in this County are massive and their costs commensurate. But we have a long established principle in this state that if we are going to tax an area, they must have a direct benefit from the services or projects it funds. That’s why we have Local Improvement Districts, Transportation Benefit Districts, water-sewer districts, etc. That’s also why I mentioned transit in the title of this post.

On Friday I’ll represent Gig Harbor at a Public Transportation Improvement Conference. Basically this is a what the law requires to shrink Pierce Transit boundaries, a move precipitated by elimination of service to areas like Bonney Lake and the Key Peninsula. The idea is to tax only those areas that will continue to have service which coincidentally, also show the highest level of support for transit.

Whether we use transit or not, we all benefit indirectly from it existing. It gets people to jobs, reduces congestion and emissions, and helps avoid costly expansion of our roads. But most seem to agree that this indirect benefit would not be enough to include unserved areas in the taxing district.

For reasons I can’t comprehend, that same logic does not seem to apply to flood control as evidenced by the TNT’s approach to the transit issue versus their support for a countywide flood control district.

In fairness to County Executive McCarthy, she has worked hard to find a solution for the peninsulas. Cutting us out means that rather than the County Council serving as the flood control district commission, they’d have to create another special purpose district with its own board and bureaucracy. Sub-zones with different taxing responsibilities were looked at but have been a nightmare to handle in other areas and ultimately undermine the goal.

Potential mitigation for this impact could come in the form of guaranteed representation on the advisory board and an “opportunity fund” which returns a percentage of the taxes to their source that could help us with stormwater projects. These are just ideas that have been floated and nothing is committed, but our frustration has been heard loud and clear by Executive McCarthy.

If this were the only unfair burden put on the peninsulas it might not be a big deal. But it’s hard to not remember the history for the west side of the Narrows in these situations. Nobody at the County raised their hand to help with the construction of the second Narrows Bridge – that’s all on those of us who use it on a day-to-day basis even though the whole region benefits from it existing. When peninsula residents demanded Pierce County parks actually provide some parks out here, the response came to form our own taxing districts to pay for it and we did so with the Gig Harbor Peninsula and Key Peninsula Metropolitan Park districts.

It seems that every time we need something it’s a local problem, but every time the problem is on that side of the bridge, the hand goes out for the peninsulas to pay. I don’t think anyone should be surprised we finally said “Enough!”

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Giving thanks on Evacuation Day

Occupy Wall Street

Occupy Wall Street protesters defying stereotypes.

This year instead of celebrating Thanksgiving, my family is honoring Evacuation Day today. All the same food but with the focus on an entirely different event.

Ok, that’s not really true. My sister’s family went to her in-laws yesterday so I have to wait until tonight for turkey.

But there’s a happy coincidence in that it happens to fall on the 25th of November, a date previously saved for remembrance of the withdrawal of British troops from our soil. Thus the term “evacuation.”

It actually used to be quite the deal until Honest Abe decided to make Thanksgiving a national holiday which always fell around the same time. In fact I didn’t learn of it until I saw Sarah Vowell historian/humorist on the Daily Show. Here’s the clip, but be ready to cover childrens ears if you wach.

I think it’s nice to remember the sacrifice made in the name of freedom, not just by the Founding Fathers, but by the regular Yankee Doodle on the street, or Continental POWs rotting away on British prison ships in New York Harbor. The people of New York lived in misery for the liberty of an entire nation.

How many people camped out at Best Buy and Walmart thought about that before stepping on each other to get a great deal on a flat screen TV this morning? Probably none.

It makes me think about the contrast in spirit with the Occupy Wall Street protestors who are sleeping in the cold for an entirely different and more noble purpose. To focus our country’s attention on the cause of its economic problems and demand action be taken by Congress against it. Wall Street.

I haven’t been to an OWS protest except for a quick visit while in Seattle to check things out. It’s not that I’m not supportive, but more in respect for their desire to not be hijacked by politicians. (Editors note: Derek has a bad habit of using double and triple negatives, but can’t think of a better way to put that sentence while his stomach is growling) It’s a leaderless movement by design and sometimes electeds showing up has a way of focusing attention away from that. Not that my presence would do so, I just didn’t want anyone to get the impression that was my intent.

I do share their frustration in our government’s lack of action. There is no question that deregulation of Wall Street directly lead to our current economic condition. We cut whole sections of code that had prevented once common financial crises from happening since the Great Depression. We even let new and exotic markets like derivatives open up without any effort to regulate them whatsoever. All of this in the absurdly mistaken belief that markets regulate themselves. When the totally predictable outcome occurred, you’d expect Congress to do the sensible thing and re-regulate them. The problem being that they’re so bought and paid for with Wall Street money, they passed a milquetoast version of financial regulation called Dodd-Frank. They didn’t even bother to break up the very banks they called “too big to fail” just months earlier.

Even still, the GOP desperately wants to repeal Dodd-Frank falsely claiming it hurts community banks. I guess it’s easier to develop sympathy for your local banker rather than the guy in New York who made a billion destroying his company.

But OWS is about more than just regulation. They are speaking out about the concentration of money and power into the hands of a few. They think it’s absurd that we are slashing education and infrastructure while keeping the Bush tax cuts for billionaires. They rightfully draw attention to corporate management compensation and its distorting affect on the economy and against shareholders interest. They want prosecutions for the crimes committed on Wall Street that continue to go unpunished.

Young people are particularly invested in the cause because the cuts are coming at their expense. At a time when tuition and student debt are exploding, jobs and income for entry-level workers has disappeared. They have more debt but less money to pay it with. Ironically the most coherent response from the GOP Presidential candidates to OWS comes from Newt Gingrich who said “Go get a job right after you take a bath.” What jobs are you talking about you smug, corrupt, example-of-everything-that-is-wrong-with-this-country?

While some object to OWS tactics, and I agree they cross the line on occasion, until this started nobody in media or politics paid the least bit of attention to these issues despite their popularity among average citizens. How could that be? How could 70% of the country favor raising taxes on the rich back to levels that saw the economy hum along yet be ignored at a time when deficits are exploding? How could they ignore the cause of this catastrophe? How could they ignore the fact that it’s now legal for a corporation to dump unlimited secret funds into campaigns despite repeated attempts by the people to limit and expose that behavior?

It’s simple – institutional corruption. From Capitol Hill to corporate owned media, everyone who has a financial interest in making these subjects go away also happens to have the power to do exactly that. That is unless the other 99% of the country stands up and says “Enough!”

These people out in the cold are fighting for you and me, but more importantly, they’re winning. They finally made these issues impossible to ignore. They’ve embedded themselves so much into our national discussion I’ve seen bank ads using a play on their name. Think about that for a minute. This movement is just a couple months old and the very people who once ridiculed and fought against OWS are now using them to sell stuff.

That’s power.

So on this Evacuation Day, I say thanks to the people who have put our national interests ahead of their comfort; I wish them well, and our nation renewed success.

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Lots of anger on Washington state budget

Nobody is happy about the cuts being made to the state budget. Well I should say, almost nobody. There are some bloviating right-wing talk show hosts who claim you could cut half the budget with no consequences. Since they’re always short on details to these “common sense” plans, I think we can set their claims aside for the moment.

People with actual budget responsibilities from both parties show genuine concern because they know these cuts will do real damage. The only real debate seems to be whether or not that damage will be worse than an offsetting tax increase might be.

After seeing the Governor’s proposal I think the answer to that question is clear. These cuts will do severe and long-lasting harm to our state. Simple as that.

To understand the problem, take a look at the chart below. The light blue section of this chart are protected funds. That means the Legislature is obligated to fund that portion of the budget for some reason like Federal Government mandate, the Constitution, or other legal obligations. The dark blue is “discretionary” but hardly optional when it comes to building a modern civil society. However, it’s from that $8.7 Billion that another $2 Billion and possibly more, must be cut.

Washington State Budget Discretionary Spending Chart

Washington State Budget Discretionary Spending Chart

Here are the lowlights of the Governor’s proposed alternatives:

  • Eliminate the Basic Health Plan, ending subsidized health care to 35,000 low-income individuals.
  • Cut off medical services to 21,000 people enrolled in the state’s Disability Lifeline and ADATSA (Alcoholism and Drug Abuse Treatment Support Act) programs.
  • Trim 15 percent from the support we provide to our colleges and universities.
  • Reduce levy equalization, which helps property poor districts, by 50 percent.
  • Cut the length of supervision for all offenders, based on severity of offense. Sex offenders will be supervised for 24 months, and all other offenders, for 12 months.

That’s just to start. There are more cuts expected to care for the elderly and disabled, early learning, and perhaps capital construction projects planned just a couple months ago. In reality, not one of these cuts will save Washington taxpayers any money, it just shoves it off onto someone else’s budget, or puts a much greater cost off for another day.

People always say government should run like a business so let’s run through that exercise. What do you think would happen to a business if it stopped marketing, replacing equipment, or spending on R&D? In the short term it’d save a few bucks and maybe even eek out a slightly larger profit. Perhaps an unscrupulous CEO with a bonus plan heavily weighted towards short term gains would take such a risk, but they do so at the cost of long term prosperity. Washington does the same thing by refusing to make investments in its future.

Poor children won’t stop being sick or injured, their hospital bill will just be tacked onto the cost of insured people’s bills. Addicts who want to clean up and become productive members of society won’t be able to and will continue to drain the system. Reducing college enrollment will ensure we have fewer qualified workers to grow the economy or that workers in industries that have disappeared cannot retrain. Children who happen to live in school districts with less affluence will be further trapped in the cycle of poverty. Criminals will be less supervised upon their release, trying to start over in an economy that has far fewer opportunities for them to do so.

I understand some of you are thinking that the state just needs to “tighten its belt.” I’d argue that was definitely in order during the first round of cuts. But at this point, we’ve cut well into the bone. Take a look at this chart and tell me that the state hasn’t become more efficient over the last 10 years.

Washington State Employee Population Ratio

Washington State Employee Population Ratio

Local government has done its part soaking up huge cuts over the last several years – some Pierce County cities losing more than 1/3 of their budget – but according to Peter Callaghan at the TNT, the Governor is upset we haven’t shared the pain more. So local governments will need to fill the hole caused by cuts to reduction of our share of liquor tax and other revenue. Meanwhile, the state and federal government pass us more and more of their responsibilities.

The worst part of these cuts is that most of them are avoidable. Yes the recession forces some level of austerity, but they would be far less severe had we not been cutting taxes over the last decade.

Tim Eyman promised Washington pain-free tax cuts, even mocking those who warned of dire consequences to our future as “Chicken Little.” Well the sky did fall Tim, and you are directly to blame.

Now our legislature is handcuffed and unable to do the sensible thing – raise taxes. Eyman’s I-1053 requires that the Legislature have a 2/3 majority for all tax increases. Unless Republicans suddenly do an about-face on tax hikes, the votes simply are not there.

Nevermind that the Constitution clearly sets the number necessary for a majority not Eyman’s initiative. I made this point, probably a little too emphatically, at a recent meeting of local government executives (filling in for Mayor Hunter) that County Executive McCarthy hosts each month.

Rep. Laurie Jinkins (D-Tacoma) was there along with a representative from the Governor’s office whose name I did not catch. Basically my thinking is that they should just pass a new tax and let the law be challenged then taken to the courts. According to Rep. Jinkins, a similar startegy is already underway but a verdict from the Supreme Court is not expected until 2013. Even sending something to the voters would take a while so these cuts still need to be made.

The result of Mr. Eyman’s profitable career selling you “free” tax cuts is that we’re stuck with this vicious, immoral, and illogical budget. Remember that the next time you see one of his initiatives on the ballot.

 

 

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We’ve Achieved Peak Lunacy

Joker Burning Money

"Some men just want to watch the world burn"

Politicians with crazy ideas are nothing new. They’re usually an aberration that the public and their leadership quickly puts in a corner where they belong. But I’m afraid, after watching the GOP’s Presidential Primary debate last night, we’ve achieved new heights of insanity at a time when the United States can least afford it.

I won’t go into every issue raised, and there was some good with the bad – but one moment made my jaw hit the floor. Attempting to find a place where compromise with Democrats on the deficit was possible, these candidates for President of the United States were asked about a hypothetical deal and said that they were so opposed to any tax increases, they would not support a deal that was 10 to 1 cuts to revenue. EVERY SINGLE ONE OF THEM. Even Fox News’ Bret Baier was so shocked he asked again just to clarify they meant it.

This is simply an extremism not seen in American politics since the Civil War, and that’s not just the Democrat in me talking. Even some right-wing pundits are offering to pelt them with rotten vegetables if such a deal was actually turned down.

Every modern Republican President, including conservative deity Ronald Reagan, relented on taxes when deficits grew to irresponsible levels. Contrary to current GOP mythology, they did not kill the economy… not even ones in recovery. What they did do was quickly stabilize the budget and return us to a more responsible fiscal path.

In fact, as Reagan economist Bruce Bartlett points out, we currently have the lowest taxes in the last 60 years. 

Despite these facts, every single Republican member of Congress has pledged to not support ANY new taxes – constant use of the Senate filibuster making it even less likely. Now all their Presidential candidates have joined the chorus. Under normal circumstances these are people who are usually more likely to be voices of reason compared to their more radical Congressional counterparts.

This wouldn’t be so frustrating were the problem not so clear. When President Bush took over he had a surplus. While the 2001 recession likely would have changed this outlook, at the time things looked so good that the Congressional Budget Office (non-partisan budget scoring agency) projected ALL American debt being paid off by 2006 and have $3.2 TRILLION in positive assets which could be drawn on to pay Baby Boomers entitlements as far as the eye could see.

What changed is that Bush made a case that the surplus indicated the government was taking in too much money and pushed through then very popular tax cuts. He followed that up with a new Medicare entitlement, just as Baby Boomers were reaching retirement age, two wars, and another round of tax cutting. The CBO predicted at the time dire fiscal consequences but we were famously told by Vice President Cheney that “deficits don’t matter.”

Fast forward to the end of his term in office and now we face the most serious economic crisis since the Great Depression. The government hasn’t been alone in running up the credit card and massive amounts of personal debt must be socialized to prevent the economy from completely collapsing. To help replace cratering demand newly elected President Obama pushes through, with zero Republican help, an economically textbook stimulus program. We now know that the economy was much worse than he knew at the time and that the stimulus actually worked quite well despite Republican protestations to contrary. Even still, it was arguably too small given the enormous liquidity trap we found ourselves in.

This chart is the best visual I can think of to demonstrate the problem

New York Times - How the Deficit Got This Big

New York Times - How the Deficit Got This Big

Despite the fact that Obama’s policies have had a fraction of the deficit impact of Bush’s policies, and that they largely aren’t ongoing, for some reason the blame all falls on him. Republicans claim its entirely a spending problem yet they don’t want to address the source of growth in spending, entitlements and defense. Instead they want all the cuts to come from non-defense discretionary spending which isn’t even remotely the problem.

The rest of the revenue problem comes from the recession that President Obama inherited and would be made far worse by drastic reductions in spending today. Even more absurd is that the very last time it makes economic sense to balance the budget is during an economic crisis. In fact we know what happens simply by looking at the last time we had a crisis this bad and austerity measures were enacted. It’s called the recession of 1937 and it stalled the previously rapid recovery from the Depression until the US entered WWII.

This is also no longer an internal political squabble. The whole reason for the S&P downgrade was Republican refusal to even consider new revenue and the fact that they appear to even think default would be no big deal. The Bush tax cuts are scheduled to expire in 2012 yet they don’t even have faith that the GOP will just do nothing, let them expire, and solve our deficit problem.

That any developed nation would have such screwed up politics during a crisis is unnerving. When it’s our country, the sole remaining superpower and largest economy on Earth (for the time being), the whole world has reason to be angry with us.

 

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