Thursday, May 28, 2009

Talk on Nevada: Dissecting the Legislature's tax hikes



Talk on Nevada interviews NPRI Fiscal Analyst Geoffrey Lawrence on the secret, job-killing, record billion dollar tax increase the legislature approved last week and the Governor has promised to veto right about now.

Andy references an op-ed Geoff wrote for the RGJ. Follow the link to read that commentary, Lawmakers don't understand "essential" services.

TEA Party Friday in Carson City

The TEA Party's tomorrow and going to be right outside the legislative building on the day when the legislature will receive the vetoed budget and record-breaking tax increases. It's also the deficit-inclusive Tax Freedom Day.

If you're close, you should go. I wish I could be there.

A group of nonpartisan Northern Nevada residents, upset with what they say are the state Legislature’s harmful tax increases, will gather Friday in Carson City for the second TEA Party in as many months.

Organizers for the Anger is Brewing group said they expect about 2,000 people will participate in the peaceful Tax Freedom Day event in the square in front of the Legislative Building. “TEA” stands for “Taxed Enough Already” …

“We want to make the legislature understand that we’re deeply, deeply concerned about what’s happening and what’s going to happen with the budget and the effect it will have on hardworking Nevadans,” event organizer Debbie Landis said.
The rally is from 3 to 6 p.m., and organizers are asking participants to bring a non-perishable food item as well. Additional details can be found at Anger is Brewing, the website of the group that is organizing the rally.

If you attend, feel free to drop links to pictures or videos of the event in the comments and I'll do a recap post.

(h/t Desert Conservative, Tea Party Event in Carson City)

Wednesday, May 27, 2009

Bailout Funnies

128 Days Later



Las Vegas Sun editor Brian Greenspun says it’s too early to criticize President Obama. But most Americans know it’s never too early to criticize the government.

Video: Explaining Card Check; Update

If you've ever struggled to explain or understand the Employee Forced, err, Free Choice Act (or Card Check), here's a video that can help.



Now, that video is very straightforward and doesn't even mention how Card Check will lead to increased intimidation of employees. Fortunately, this short and funny video does.



And here is a former union organizer talking about what the intimidation will look like if the Employee Forced Choice Act is passed.



(h/t Liberty Live, Card Check educational video)

Update: Thanks to Needs of the Many (If Card Check Has Confused You, You Need To See This Video) for the link. You'll should check out that blog regardless. It's good stuff.

Tuesday, May 26, 2009

Government vs. private-sector jobs

*Nevada's legislatively approved plan for pension reform.

Las Vegas Sun journalist Patrick Coolican spells out the difference in today’s paper. In the private sector, workers receive good salaries in exchange for little stability. If workers are inefficient, they get fired, while the best workers see promotions and more pay. This provides private-sector employees a strong incentive to be productive and innovative workers.

Historically, government workers started with low salaries but greater stability. Bad government workers often keep their jobs while still getting pay increases each year. Private-sector workers are risk takers while government workers are risk averse. As Matthew Murray, an economist with the Brookings Institution, noted:

What you get with government employees, by virtue of these steady jobs, you get risk-averse people. They may be good solid employees, but they may not be very innovative. Safe jobs attract people who want a safe environment.

I might add that while private-sector jobs have considerably less stability than governments jobs, the average American is far more confident of finding a new job, should he or she become unemployed, than is the average worker in France, Italy or Germany, according to Olaf Gersemann, author of “Cowboy Capitalism.” In fact, the average American spends considerably less time being unemployed as jobs are found far more quickly.

Coolican raises a meaningful point about reforming government pension plans:

The idea of paying teachers or social workers high starting salaries seems wishful thinking. But what if long-term pension liabilities could be sharply reduced by forcing those young workers, many or most of whom won’t make the cut after a few years, into a defined contribution plan, say a 401(k) with an employer match? The savings could go to higher salaries.

A defined contribution plan would help get Nevada taxpayers off the hook of expensive defined benefit plans — plans which are always insolvent in the long run. But it could also help produce a better retirement plan for government employees.

At the very least, moving more people onto sound economic principles for their retirement and wealth — rather than continually increasing taxes — would be far more equitable for all citizens.

Senate Republicans cave, help pass largest tax increase in Nevada's history


Even though you knew it was going to happen — the Senate Republican leadership had been wobbly for months — it was still disappointing.

The Legislature passed a $781 million tax increase and delivered it to Gov. Jim Gibbons on Friday, barely meeting a 5 p.m. deadline and setting the stage for Gibbons' expected veto.

After intense negotiations between Republicans and Democrats, the tax package finally came to a vote in the state Senate late Friday afternoon, winning approval by a 17-4 margin. All 12 Democrats plus five Republicans voted for the bill.
Along with the over $200 million room-tax increase legislators have already passed, that's a cool billion dollars in tax increases. And every dollar the government takes is a dollar that could have, should have been spent by private individuals and businesses looking to improve their own welfare. All the record tax increase will do is further prolong and deepen the recession. From the RJ:
"A billion-dollar tax increase in a recession is the worst thing we can do for the American and the Nevada people, and most of all for the hard-working families of this state," Gibbons said. "I intend to veto this bill."
Exactly. And the sad thing is that even the politicians who voted for the tax increase know it will hurt Nevada's citizens. Enjoy the hypocrisy revealed by Glenn Cook of the RJ:
"I won't support tax increases -- not when the private sector is losing revenue and losing jobs," Horsford told the Review-Journal's editorial board in September.

"The general fund needs to be managed in a way that doesn't allow growth beyond population growth and inflation."

Horsford, a Las Vegas Democrat, went on to become the Senate's majority leader and one of the Legislature's most important figures in cobbling together the nearly $800 million in tax increases that will allow the state's general fund to grow by about 10 percent, significantly more than the combined rates of population growth and inflation.

"This is not the time to start talking about raising taxes," Raggio, the Reno Republican, said last summer during a bruising Republican primary.

"It is something that we can't even consider."

Raggio didn't merely consider raising taxes -- he worked tirelessly to deliver the Republican votes needed to provide a constitutionally mandated two-thirds supermajority.

That's some mandate for tax hikes. The two men who control the Legislature's upper chamber campaigned in opposition to tax increases and then went about a months-long process of increasing them.

They weren't alone.

"I really have no appetite for raising taxes," Assemblywoman Marilyn Dondero Loop, D-Las Vegas, said during last year's campaign. "Let's look at our spending priorities and be like any other household going over its own budget."

If only households could vote for a bigger budget and the seizure of the money to fund it -- like Dondero Loop did.

"I won't vote for tax increases next session," Assemblyman James Ohrenschall, D-Las Vegas, said last year. He voted for all of them. Higher sales taxes. Higher payroll taxes. Higher vehicle registration taxes. Higher business license fees.

"There's no appetite for new taxes," Assemblyman Paul Aizley, D-Las Vegas, said before his election last year. Lawmakers got plenty hungry for more of your money, and Aizley was with them in the chow line.

"I don't see increasing taxes as an option," Assemblyman Mark Manendo, D-Las Vegas, said during the campaign. He eventually saw differently.

Assemblyman Mo Denis, D-Las Vegas, said, "I'm not hearing a lot of interest in raising taxes this session." Plenty of interest now -- especially his.

"I can't see the people of Nevada being able to afford tax increases," said Assemblywoman April Mastroluca, D-Henderson. She thinks we can afford it now. She voted for the whole package.

"The economy is the most important issue for my constituents," Assemblyman Ruben Kihuen, D-Las Vegas, said last year. "They are losing their jobs or are afraid of losing their jobs." Kihuen allayed their fears -- and improved his job security at the College of Southern Nevada -- by voting for higher taxes…

Among other legislators who opposed tax increases as candidates but voted for them anyway: Sen. Warren Hardy, R-Las Vegas, and Assembly members Morse Arberry, D-Las Vegas; Joe Hogan, D-Las Vegas; Marilyn Kirkpatrick, D-North Las Vegas; and Ellen Spiegel, D-Henderson.

Candidates opposed tax increases last year on the grounds that the economy was too weak to sustain them. The economy has since become even weaker. And now they think tax hikes are OK? The expediency unfolding in Carson City isn't courage -- it's shameful.

Bailouts for newspapers?



Should newspapers get a government bailout? In light of fewer and fewer subscribers to traditional print media, plus the explosion of online media journalism, bloggers, freelance investigative journalists, think tanks and magazines, that would be a waste of money. But that is what government does – force people to pay for things they don’t want.

Friday, May 22, 2009

Harry Reid demonstrates why government can't run a business

government fails, makes problems worse
An excellent op-ed from the Wall Street Journal yesterday details why the government and specifically the Obama administration can't run a business. Politicians and businessmen have different priorities.

Politicians need headlines. And this means they have a deep need to do something ("Sen. Snoot Moves on Widget Crisis!"), even when doing nothing would be the better option. Markets will always deal efficiently with gluts and shortages, but letting the market work doesn't produce favorable headlines and, indeed, often produces the opposite ("Sen. Snoot Fails to Move on Widget Crisis!").
And responding to the news that Nevada's unemployment rate reached 10.6 percent, here's our own Sen. Harry Reid releasing a statement to get a headline.
Weve been working hard over the last few months to take steps to create jobs, protect consumers from abusive lending practices and restore consumer confidence. Were just now starting to see signs that this is working. In recent weeks, casino executives have talked about the increase in hotel occupancy rates and a rise in convention bookings. In fact, earlier this month, major corporations including IBM and Southwest Airlines brought thousands of employees to Las Vegas for employee appreciation and business events.

While the coming months still present challenges, I will continue fighting to create good-paying jobs by making Nevada the nations renewable energy leader, keep struggling Nevadans in their homes and strengthen the national economy so people can have more money in their pockets to travel to Nevada.
Don't worry, Sen. Reid and the other politicians in Washington, D.C., and Carson City are working to solve our problems. Unfortunately, their intervention is what led to the problems in the first place.

What will be the results of these well-intentioned, government interventions? History shows us they will fail and we'll be stuck with the bill.
In 1913, for instance, thinking it was being overcharged by the steel companies for armor plate for warships, the federal government decided to build its own plant. It estimated that a plant with a 10,000-ton annual capacity could produce armor plate for only 70% of what the steel companies charged.

When the plant was finally finished, however -- three years after World War I had ended -- it was millions over budget and able to produce armor plate only at twice what the steel companies charged. It produced one batch and then shut down, never to reopen.

Senate Republicans going wobbly

It looks like some of the Republicans are going to cave on tax increases.

But Sen. Randolph Townsend, R-Reno, said Thursday that he thought the sides were close to a deal, with only two small issues standing in the way of an agreement on public employee benefit and bargaining changes.

“It sounds like everything is coming together,” said Assembly Speaker Barbara Buckley, D-Las Vegas.

Democrats had agreed to dial back pensions and retiree health benefits for new public employees. Firefighter, police, teacher and other public employee unions — some of the party’s key constituencies — gave the legislators heat for bending during negotiations.

Meanwhile, Republicans said their votes on taxes — two are needed to pass a tax package and override a Gibbons veto — were contingent on those changes.
The only question left is whether the Republicans will defend their anthill — minor reforms in the state's employees retirement system — or give that up as well.
Some Senate Republicans, though, say they'll go along with the higher taxes if Democrats agree to support minor reforms to the state's generous public employee retirement benefits.

Yet the reforms currently being advocated go nowhere near this far. Rather than move all new hires onto a 401(k)-style, defined contribution plan, legislation introduced Tuesday in the Senate requires future employees to put in a few more years before cashing their golden ticket, among other small tweaks. It does next to nothing to shrink those massive unfunded liabilities.

This is the GOP's puny price for going along with massive tax increases.
The reports aren't promising.
Oceguera said the tentative agreement does not include a requirement demanded earlier Thursday by Senate Minority Leader Bill Raggio, R-Reno, that no pensions should be given to public employees before they turn 62.

“He may have budged on that,” Oceguera quipped.
As I've said before, these last few hours will beat anything you'll see at the box office all summer. But with a secret, job-killing, record billion dollar tax increase on the horizon, it looks like this show will end badly for Nevada's businesses and families.

Tax increases kill Nevada jobs

Thursday, May 21, 2009

Horsford holds Senate hostage for 3 a.m. session

As those of us in Las Vegas know, people make their best decisions at 3 a.m.

Senate Majority Leader Horsford's decision to force the Senate into session at 2:45 a.m. last night/this morning wasn't a sign of panic. No, no, it was a shrewd decision to ensure that the Senate acted in the wisest possible way.

Horsford had convened the senators around 2:45 a.m., invoking a rule that trapped them in the chamber and allowed absent members to be tracked down and rounded up. The upper house had been in recess since 11 p.m.

During the hours of recess, yet another round of closed-door talks seeking accord on a package of tax hikes and public employee benefit reforms had broken down.

Senate Minority Leader Bill Raggio, R-Reno, called Horsford’s action a “threat.”

“I think it is very inappropriate and imprudent if it’s to hold us hostage here until we cave in,” he said.
Sen. Horsford even tried an "enhanced" negotiating technique.
Sen. Warren Hardy, R-Las Vegas, got up to leave. "Anyone have a tea cup? I have to use the bathroom."

Senate sergeants at arms staff didn't move or respond.

Hardy turned to Horsford. "Can I use the bathroom?"

Horsford said, "I'm just following the rules."
So we've got potential ethical conflicts that no longer exist thanks to a politically motivated rule change, and now this. Oh, the drama. Any bets on what will happen next?

As I've said before, these last few days will beat anything you'll see at the box office all summer — if it doesn't end with a secret, job-killing, record billion dollar tax increase.

Shocker: Now California wants "free" government money

government's free money is a trap, but politicians want more

If the federal government is giving away money, why would any business/organization/state not try to get in line?

First came the banks and insurance companies. Then the auto industry. Now, with California on the verge of financial collapse, state leaders are demanding an unprecedented federal rescue of their own.They say they need the Obama administration to step in and back billions of dollars in emergency loans. If Washington fails to do so, the state could start running out of cash in July and then would have to stop paying huge amounts of its bills. That, in turn, could set off dangerous ripples throughout the economy, state officials say.

The argument is familiar. Just like AIG and General Motors, California says it is too big to fail.
This wouldn't be the first time the federal government has given away money to states, either.
We had a situation in 1932, with America’s first federal welfare program, where we allowed states to come to Washington seeking “their share” of the $300 million in federal aid that Congress made available. The result was that Illinois politicians practically ran to Washington to grab more that $55 million – almost 20 percent – of the national total, while Massachusetts, Connecticut, and Nebraska received nothing. Once we open the federal treasury to states with alleged needs, then some states will rush to Washington with all sorts of needs, real and imagined, and ask for all U. S. taxpayers to contribute.

How much better it is for each state to clean up its own problems, as the Constitution requires.
When will it end? If the government stays involved, it won't. Government intervention in the economy keeps growing and growing.

This is exactly why the government shouldn't pick the winners and losers — be they businesses, states or individuals. Individuals and organizations need to face the consequences of their bad decisions, not be rewarded for them. If the government rewards bad decisions, all we'll end up with is more bad decisions.

Horsford says ethics aren't important

After revelations yesterday that Senators Raggio and Hardy had been advised that they could not vote on the legislature’s proposed tax hikes due to possible ethics violations, Senate Majority Leader Steven Horsford introduced a resolution that would put political expediency ahead of ethical concerns. The resolution would remove the restraints of the legislature’s ethics rules in order to allow all legislators to vote on “legislative measures of immense statewide importance which globally impact all citizens of this State.”

Essentially, Senator Horsford’s resolution would change hard ethics rules into more of a limp array of suggestions for legislative behavior. According to this thinking, while ethics are good some of the time, they can be discarded at will when politicians really, really want to.

The resolution makes a mockery of the state’s ethics rules. If ethics rules can be discarded arbitrarily when legislators consider it to be politically convenient, then there is no point to having ethics rules in the first place.

Nevada’s Legislative Counsel determined that Senators Raggio and Hardy should not vote on the measures because individuals with whom they have close private business ties have testified, lobbied and taken strong positions on the measures. As such, there is legitimate concern that these two Senators face conflict between their duty to serve the public interest and their private interest in the success of their business partners. And this is not a new issue for Senator Raggio. A check of the Legislative website reveals at least four times earlier in this very session where Raggio recused himself from votes because his law-firm partners were vigorously active on the particular issues in question.

Senator Horsford would like to suddenly remove these ethics rules so that the votes of Senators Raggio and Hardy can help him pass the nearly $800 million in new taxes that Horsford wants as a central component of his government-growth package.

Yet, any attempt to sidestep these legitimate ethical concerns in service to political convenience is, in itself, unethical. And certainly those concerns do not go away, merely because the money at stake is much greater.

Such actions should not be permitted regardless of what type of bill is being voted on.

Wednesday, May 20, 2009

Talk on Nevada: Straight talk on Nevada's budget situation



Talk on Nevada host Andy Matthews interviews Geoffrey Lawrence, NPRI's fiscal policy analyst, on Nevada's budget situation. Geoffrey is the author of Nevada's Freedom Budget: 2009-2011, which would fund priorities, eliminate waste and save Nevada over $1.7 billion compared to the legislature's budget.

Andy and Geoffrey also talk about legislature's proposed job-killing, record-setting, billion dollar tax increase, but the details are continually changing.

Anjeanette Damon of Inside Nevada Politics reports that the total tax increase will be $781.2 million.
-Sales tax increase of 0.35 percent: $280 million
-Tiered Modified Business Tax rate: $346 million
-Doubling of the business license fee: $61 million
-Changes to governmental services tax on vehicles: $94 million

Sun headline: GOP leader out as negotiator over ethics threats; Update: Another conflict?

And the plot thickens. I won't keep you in suspense, the GOP leader is...

Sen. Hardy. And just to be clear, Sen. Hardy is withdrawing as a negotiator and will abstain from voting on the bills because of a potential ethics complaint if he did vote.

I'm sure there will be more surprises to come. As I've said before, the drama would be much more enjoyable to watch if it doesn't end with a secret, job killing, record billion dollar tax increase.

Update: Does Sen. Raggio have a conflict as well?

Public school teachers unhappy


A new study from the Friedman Foundation, “Free to Teach: What America’s Teachers Say About Teaching in Public and Private Schools,” conducted by Dr. Greg Forster and Christian D’Andrea, has found that “public school teachers are currently working in a school system that doesn’t provide the best environment for teaching. Teachers are victims of dysfunctional government schools right alongside their students.”

Ironically, those who claim to speak for the teachers, the unions and policymakers, oppose nearly every reform to improve education — for students and teachers alike. So long as public teachers remain miserable, the union has power.

Using the survey data on teachers conducted by the U.S. Department of Education, Forster and D’Andrea find:

  • Private school teachers are much more likely to say they will continue teaching as long as they are able (62 percent v. 44 percent), while public school teachers are much more likely to say they’ll leave teaching as soon as they are eligible for retirement (33 percent v. 12 percent) and that they would immediately leave teaching if a higher paying job were available (20 percent v. 12 percent).

  • Private school teachers are much more likely to have a great deal of control over selection of textbooks and instructional materials (53 percent v. 32 percent) and content, topics, and skills to be taught (60 percent v. 36 percent).

  • Private school teachers are much more likely to have a great deal of influence on performance standards for students (40 percent v. 18 percent), curriculum (47 percent v. 22 percent), and discipline policy (25 percent v. 13 percent).

  • Public school teachers are much more likely to report that student misbehavior (37 percent v. 21 percent) or tardiness and class cutting (33 percent v. 17 percent) disrupt their classes, and are four times more likely to say student violence is a problem on at least a monthly basis (48 percent v. 12 percent).

  • Private school teachers are much more likely to strongly agree that they have all the textbooks and supplies they need (67 percent v. 41 percent).

  • Private school teachers are more likely to agree that they get all the support they need to teach special needs students (72 percent v. 64 percent).

  • Seven out of ten private school teachers report that student racial tension never happens at their schools, compared to fewer than half of public school teachers (72 percent v. 43 percent).

  • Although salaries are higher in public schools, private school teachers are more likely to be satisfied with their salaries (51 percent v. 46 percent).

  • Measurements of teacher workload (class sizes, hours worked, and hours teaching) are similar in public and private schools.

  • Private school teachers are more likely to teach in urban environments (39 percent v. 29 percent) while public school teachers are more likely to teach in rural environments (22 percent versus 11 percent).

  • Public school teachers are twice as likely as private school teachers to agree that the stress and disappointments they experience at their schools are so great that teaching there isn’t really worth it (13 percent v. 6 percent).

  • Public school teachers are almost twice as likely to agree that they sometimes feel it is a waste of time to try to do their best as a teacher (17 percent v. 9 percent).

  • Nearly one in five public school teachers has been physically threatened by a student, compared to only one in twenty private school teachers (18 percent v. 5 percent). Nearly one in ten public school teachers has been physically attacked by a student, three times the rate in private schools (9 percent v. 3 percent).

  • One in eight public school teachers reports that physical conflicts among students occur everyday; only one in 50 private school teachers says the same (12 percent v. 2 percent).


Read the full report here: http://www.friedmanfoundation.org/downloadFile.do?id=367.

And for a synopsis from Dr. Forster, go here: http://jaypgreene.com/2009/05/20/free-to-teach-what-americas-teachers-say-about-teaching-in-public-and-private-schools/.

Tuesday, May 19, 2009

Are Senate Republicans holding the line?

Is watered-down PERS reform enticing enough for Senate Republicans?

The core meeting to finalize a tax plan for the coming two years was canceled this morning with neither side willing to give any more.

In addition to the ongoing battle over how much of the burden should be carried by sales tax versus the business tax, a separate meeting was still unable to resolve disagreement over changes to employee retirement and benefits.

Sen. Warren Hardy, R-Las Vegas, the top GOP negotiator over benefits changes, left the meeting at one point red faced and muttering under his breath.

Also in that mix are proposed changes to allow collective bargaining for state workers and a business plan to relax prevailing wage requirements on public construction projects.

With nothing to present, the 10 a.m. scheduled Senate Floor Session didn't happen. Neither did the 11 a.m. Assembly Floor Session.
Hmmm. But wait. The Senate version of the Assembly's watered-down PERS reform bill just dropped.
SB427 will slow the rate at which state workers earn their retirement, including police-fire employees, and make younger retirees work longer before they can leave with full retirement benefits. Changes would apply only to public workers hired after Jan. 1, 2010.

But it’s not a done deal.

Republicans still want more concessions in those two areas. But Sen. Warren Hardy, R-Las Vegas, agreed there is general agreement on the other provisions in the bill.
The changes the Republicans want are the same ones they want in the Assembly bill.

Over the next few days we'll probably see more drama in Carson City than there will be at the box office all this summer. It'd be much more enjoyable to watch if it didn't end with a secret, job killing, record billion dollar tax increase.

Picture: How a billion dollar tax increase would affect Nevada

Taxes will kill Nevada jobs

And don't take my word for it. Speaker Barbara Buckley admits that raising the Modified Business Tax will kill jobs.

Feel free to pass this photo on or use it on your blog.

Breaking: Watered down PERS reform bill dropped

Now the question is will Senate Republicans sell out on tax increases for watered down PERS reform? Sadly we already know the answer for some Assembly Republicans sans the PERS reform, of course.
Among the key provisions is reducing the benefit multiplier to 2.5 percent from 2.67 percent. This change increases to 30 years from 28 years the time it takes for an employee to fully vest in the retirement plan. Republicans said yesterday they would not agree to a multiplier less than 2.35 percent, which increases the vestment period to 32 years.

The bill also increases the retirement ages for police and firefighters as well as state workers. Police and firefighters will need 20 years to retire at 55 instead of 50 and 10 years to retire at 60 instead of 55. State workers will have to work 10 years to retire at 62 instead of 60.

The early retirement penalty also would be increased to 6 percent from 4 percent and the bill includes "anti-spiking" language designed to keep public employees from increasing their pay in their final years.

Monday, May 18, 2009

Buckley admits raising Modified Business Tax will kill jobs

No joke.

Last week Speaker Buckley proposed increasing the Modified Business Tax from .63 percent to between 1.2 and 2 percent for payrolls over $250,000, and lowering the MBT to .5 percent for the first $250,000 in payroll for all companies. Why the distinction?
“If we’re considering raising more revenue, not only should we exempt small businesses from those increases, we should provide them some tax relief,” she said. “These are businesses that employ a handful of people. Raising taxes on them could be the difference between laying people off.”
That's right, Buckley said that raising taxes on small businesses could cause layoffs. Note to Speaker Buckley: Many businesses in Nevada — small and big — are suffering. Just last week, the M Resort announced it was going to lay off 5 percent of its workforce. What happens if the MBT doubles for the M Resort? The government will have given M Resort a reason to conduct more layoffs, reduce wages or implement a hiring freeze.

You can read more about how raising taxes will kill jobs in Nevada from NPRI Fiscal Policy Analyst Geoffrey Lawrence.

Speaker Buckley, why is it OK for employees at large businesses to lose their jobs, but not for employees at small businesses to lose theirs?

It's not.

Government should provide a uniformly low tax and regulatory burden for all businesses, not try to pick the winners and losers. Buckley's admission that her tax increase will kill jobs at larger businesses is another reminder that whenever the government picks the winners, there are always losers.

Pork Spending Flu

Nevada Legislature: Oh, that secret tax increase

After weeks of secret meetings, the Nevada Legislature has finally, finally, unveiled its plans for a record tax increase.

The tax plan was discussed Saturday during a joint Senate-Assembly taxation meeting.

Assembly Taxation Chairwoman Kathy McClain, D-Las Vegas, said an actual bill to increase the taxes could be ready Monday and legislators hope to adopt it by Wednesday.

And yep, the plan is a dozy. It would double the modified business tax, raise the state sales tax, increase the business license tax and raise motor vehicle taxes. As Steve Wynn said, anyone who would raise taxes in this environment is "psychotic."

And the legislature is going to try to pass the largest tax increase in state history (when combined with the room tax) 48 hours after the bill is ready.

In light of this kind of action, it's no wonder the legislature excluded itself from the open meetings law.

Citizens should just hand over their wallets and shut up ─ it'd make the lives of legislators so much easier.

Friday, May 15, 2009

Nevada FOIC calls for transparency with bonus controversy



Yesterday, Thomas Mitchell, president of the Nevada Freedom of Information Coalition, held a press conference and called on lawmakers to sign a pledge committing to greater transparency. Video above.

The pledge includes a commitment to pass a "Google" for government that would allow anyone to search government spending and contracts. A similar bill at the federal level was co-sponsored and passed by Sen. Tom Coburn and then-Sen. Barack Obama. Many states are also debating and passing similar bi-partisan "Google" government bills.

The transparency pledge also calls for more openness in legislative deliberations.

Mitchell said Nevada legislators showed they understood the concept of open government when they passed the open meeting law.

"They specifically exempted themselves, knowing full well this is a good law," he said.

Mitchell said Nevadans cannot reasonably evaluate their lawmakers without knowledge of what they have done.

"They are not our masters," he said. "They are our servants."
Well, if legislators believe voters would be upset if their actions were known, that sounds like reason enough to find out. As Mitchell said, they are supposed to be our servants, not our masters.

Now, transparency usually isn't controversial ─ outside of Carson City, at least ─ but apparently Jon Ralston either was feeling feisty today or just wanted to take a cheap shot at the competition.
No one, many elected officials and lobbyists excepted, is against more openness in government.

And no one had been more critical of the legislative non-process than I over 20 years of covering the special-interest-drenched, faux-deliberative body that has too few bold leaders and too many hapless followers. But rarely have I have been as infuriated as I was this week to see the eleventh-hour stunt put on by some of my media colleagues to try to pressure lawmakers to be more transparent by importuning them to sign a vapid pledge that doesn’t even address what ails the system.
So Ralston is calling out Mitchell for publicly supporting something Ralston agrees with? Usually when someone is supporting something I agree with, I'm happy, not infuriated. But that's just me.

The most interesting thing to note is that Ralston says he supports transparency in general, some of the things in the pledge specifically ─ "there is some good stuff in there about putting government contracts and expenditures online" ─ and even offers suggestions for further ways to increase transparency.

And the pledge isn't vapid. It's a commitment to the principle of transparency, to passing legislation like the "Google" government bill, and to removing the legislative exemption from the open meeting law.

Nevada is the next California

*California's public employee union members protesting for tax increases.

Just six years ago, Arnold Schwarzenegger ran for governor of California and promised to smash big government and high taxes. But just a few years later, California’s spending binge under Schwarzenegger dwarfed the spending spree under Gray Davis, Schwarzenegger's predecessor who had been recalled by the people of the state.

Rent-seekers and public employee unions continually raid the coffers of the state for their own gain at the expense of the state's well-being. Rather than slash taxes and spending, it is much easier just to give the rent-seekers and unions what they want. This has put California on the brink of bankruptcy.

Ironically, California’s politicians are claiming that they have already cut their budget to the bone. Interesting ... we’ve heard that same refrain here in Nevada. It's total nonsense - there is plenty of fat to cut.

Watch this Reason.tv video on the Governator and the union raiders here: http://reason.tv/video/show/783.html.

Talk on Nevada: An interview with Patrick Gibbons



Talk on Nevada interviews Patrick Gibbons about his new study, Funding Fantasies: Nevada K-12 education spends more than you think.

Talk on Nevada is a new show we're going to be featuring regularly here at NPRI. Feel free to let us know what you think.

Thursday, May 14, 2009

Nevada's budget: Cuts? What cuts?

That's the Las Vegas Review-Journal's take on Nevada's budget situation.
We'll say it again: There will be no cuts in the 2009-11 budget -- only more spending increases.

It's so simple even a liberal blogger can understand it.

The Legislature passed a $5.9 billion, two-year budget in 2005. Lawmakers passed a $6.8 billion budget in 2007, but revenue shortfalls caused by the recession forced lawmakers to modify those spending increases. When the current biennium ends June 30, the state will have spent between $6.2 billion and $6.3 billion on general fund programs, about 7 percent more than the budget before.

If Sen. Horsford's math is correct, and the Legislature ends up passing a $6.9 billion budget for 2009-11, state spending will increase 10 percent over current levels. That's right: State government will grow by double digits under the new budget when compared with the current, modified one -- the one that's 7 percent bigger than the one before.

But those facts won't get in the way of the nonsense that continues to come out of Carson City. You'll still hear and read the word "cut" a few hundred times before lawmakers adjourn in early June.

Those "cuts" will represent imaginary reductions from one of two bogus figures: the huge funding increases authorized in the 2007 budget that were never met because of the revenue shortfalls, and the pie-in-the-sky, what-we-wish-we-could-spend amounts most agencies requested for 2009-11 but knew they had no chance of getting.

Thus, anyone who claims the general fund should be about $8 billion to "maintain current services" (whatever that means) can say the budget reflects across-the-board cuts of 12 to 13 percent. Still a bit foggy on the math? Imagine a 10-year-old asking for a 50 percent increase in his allowance, but upon getting only a 10 percent boost, crying that his pay had been cut 40 percent.
"So simple even a liberal blogger can understand it." Unfortunately, some of our legislators don't get it. I watched the joint meeting of the Senate and Assembly taxation committees and the chair specifically asked someone giving testimony if the legislature had made cuts — "painful" cuts — unlike what the RJ said. He dutifully agreed.

So let's check the RJ's math. Nevada spent $5.9 billion from 2005-07. Nevada spent $6.2 billion from 07-09. And Nevada is now poised to spend $6.9 billion.

Cuts? What cuts? At least the politicians' motivation is clear. They want even more of your money.

If the public can be tricked into thinking that state government is being drastically cut back, even with a 10-figure tax hike, they'll be more likely to support the, ahem, "revenue enhancements."

But if they're made wise to the fact that state government will continue growing at a healthy clip when household budgets, businesses and the economy as a whole are contracting -- if they feel like they're being tricked -- they might say no.

Which is exactly why you'll hear about nothing but "cuts, cuts, cuts."

Buckley finally reveals a tax proposal

So, Speaker Buckley, was letting the public know about your tax proposal really that hard?

Buckley said under the plan businesses with payrolls of less than $250,000 would see their modified business tax rate drop from 0.63 percent to 0.5 percent. Larger businesses would see their rate rise to between 1.26 percent and 2 percent, she said.

“If we’re considering raising more revenue, not only should we exempt small businesses from those increases, we should provide them some tax relief,” she said. “These are businesses that employ a handful of people. Raising taxes on them could be the difference between laying people off.”
This isn't even a specific plan, but a range of options. And in eight days the legislature is going to have to vote on it. So much for her "commitment" to transparency.

Why is the legislature even in session for 120 days if it is going to wait until the last minute to unveil the most controversial piece of legislation? If the session were only 30 days long, at least lawmakers would have an excuse for the secret meetings.

Meadows School forces teachers to work in unstable, favoritism-heavy environment

OK, so that's not true at all. But that's my best guess as to how the Nevada State Education Association and other teacher unions would react if public schools instituted one-year contracts for everyone, like the Meadows School in Las Vegas has.

Why are one-year contracts so important to Meadows?

For Meadows teacher Kim Cagle, in her 17th year at the school, the one-year contracts make sense because you should have to continually prove yourself.

“This is the first job I had out of college,” said Cagle, a 1987 Chaparral High School graduate. “I never presumed to be offered anything more than a year from anywhere. It’s a little bit pompous to expect more from anybody.”
Exactly. One-year contracts force employees to be their best and ensure that the employees are a good fit at their schools as well. And better teachers lead to better educated students, which is the point of either private or public education.

At a time when the teacher union is threatening to sue for more education funding, one-year teacher and administrator contracts wouldn't cost anything, but could substantively increase teacher quality and, as a result, student achievement.

And then we would start hearing the talking points about favoritism or unstable working environments. But not from Meadows, the school that actually has one-year contracts.
Good luck firing bad teachers

Wednesday, May 13, 2009

$5.4 billion budgeted for K-12 Education



In case you missed it, Nevada’s school districts budgeted a combined total of $5.4 billion for the 2008-09 school year. That comes to a little more than $13,000 per pupil.

Read the full story here.

Ralston agrees with NPRI on problem with legislature's secret meetings

I call this look Blue SteelAs I've written before, regarding the secrecy with which Nevada legislators are crafting our state's budget, "[i]f this were February, March or even early April, these closed-door meetings wouldn't be so significant, because there would still be plenty of time for the public to debate whatever the legislative leadership ultimately proposed." The problem with these secret meetings is that the legislature is going to pass Nevada's budget and a record or near-record tax increase in fewer than nine days, and citizens won't have time to learn about the details of the plan before it is voted on.

And today, Jon Ralston agrees:

The issue with these core group meetings is not that they exist but that they don’t form earlier. This silly conceit that putting a tax package out early creates more opposition and a chance to shoot down ideas is an abdication of responsibility by the leadership. Did they have so little faith in their ability to sell what they believe is right — preserving essential services by funding them with taxes — that they have to ram and jam in the final days?
Yesterday, we found out that the secret core group of legislators finally reached an agreement on the amount of higher education funding they want to pass. Which means citizens can now find out exactly how much the legislature wants to spend in the next two years. Oh, wait. We still don't know that. After all, there's no time like later to clue the public in on the crisis budget.

It's not yet known precisely how much spending legislators have approved, but Senate Majority Leader Steven Horsford, D-Las Vegas, estimated it at "just south of $7 billion."

Just another reason not to trust politicians ─ or, as Ralston describes them, that "collection of irredeemable nincompoops, borderline criminals and self-interested cowards" ─ with more of your hard-earned money.

Irony: Old man wants to ration healthcare for old people



If the U.S. passes socialized medicine, individuals like that gentleman will decide if you, your friends or relatives get medical care or are denied life-saving treatment options.

That's not hyperbole, as this video shows.



Watch more videos of how socialized healthcare has prevented people in other countries from getting life-saving treatment and opportunities for early detection at http://www.facesofgovernmenthealthcare.com/.

(h/t Hotair)

Take your stinking paws off my Cheerios!


Taxes are bad enough, but now the government is going after Cheerios. The FDA is now claiming that Cheerios is a drug.

According to a letter from the FDA General Mills' advertising violates the federal Food, Drug and Cosmetic Act. The agency said claims that Cheerios ingredients can lower cholesterol within a certain amount of time, all while providing cancer-fighting and heart-healthy benefits, essentially makes Cheerios "a drug" by their definition. And no drug in this country can be legally marketed without an approved new drug application.
These people should be laughed into the nut house, not given the authority to control what we eat or take more of our money in taxes.

Maybe Tea Party 2.0 should be renamed the Cheerios Party. I'll bring some Honey Nut ones to share.

(h/t Drudge)

Broad-based business taxes haven't prevented other states from running budget deficits


"Shhh ... don't let those pesky citizens find out we want to take more of their money."

Right now Nevada's legislators are engaged in secret meetings to decide how much more money Nevada should spend ─ money, mind you, that it doesn't have. Once they've come to an agreement, they'll immediately start debating — in secret, of course — a tax package rumored to be worth about $800 million or more. There will be many arguments made to support this record or near-record tax increase.

One of the loudest will be that Nevada needs a broad-based business tax, because right now the state is too dependent on sales and gaming taxes. The implication is that if Nevada just added another leg to its tax "stool," revenues would even out over the years and Nevada wouldn't have these budget problems in the future.

The great thing about this argument is that it's easy to test. As big-government types like to point out, Nevada is one of only a handful of states without a broad-based business tax. Let's look at other states and see if having such a tax prevented them from running budget deficits.

The answer: Nope. And it's not even close. In fact, 47 states are running budget deficits this year.

Let's use California as a case study. Right now California is teetering on the edge of bankruptcy and losing hundreds of thousands of jobs to lower-tax states like Nevada.

What's California's problem? Let's look more closely.

California, like Nevada, has a sales tax. Would adding a broad-based business tax solve the Golden State's dilemma? No, it already has the ninth-highest corporate income tax in the nation. Maybe its stool just needs another leg. What about adding an income tax? Nope, California already has one of the most progressive income tax structures in the country.

The problem is that higher taxes lead to higher spending levels, which lead to deficits when the economy goes south (like Nevada's is now), which lead to higher taxes, which lead to higher spending levels when the economy improves, which lead to deficits when the economy goes south again … and on and on.

This is exactly what California has done over the last 20 years and what Nevada is starting to do. Here's a pictorial illustration of Nevada's recent overspending.

Nevada doesn't have to end up like California though. There is still time for Nevada's politicians and its people to reject the secret tax increases.

Tuesday, May 12, 2009

Freedom of appropriate speech and correct thoughts


When our nation was founded our leaders saw fit to protect, forever, the right of the people to speak and think freely — in the press, in the public, in church and in the privacy of our own homes.

In those early years James Madison wrote, "We have in this country extinguished forever ... making laws for the human mind." Nevertheless, over the last 200 years our government has regularly worked to extinguish those rights, in order to control our thoughts and our words.

It wasn’t long after the signing of the U.S. Constitution that federalists passed the Alien and Sedition Acts, which forbid “seditious” speech against the president or the country. Even the giants of the American left, such as Woodrow Wilson and Franklin D. Roosevelt, have been guilty of violating the freedom of speech of all Americans, as both jailed dissenters by the thousands.

Nevada has seen its share of problems with speech and thought codes as well. Now-departed University of Nevada, Las Vegas economist and Professor Hans Hermann-Hoppe pointed out in a classroom lecture that one reason homosexuals have a higher disposable income is because they are less likely to have children. A thin-skinned student took offense, and UNLV launched a hostile investigation into the professor. Rightly, the Nevada chapter of the American Civil Liberties Union defended Professor Hoppe.

The ACLU again stood against UNLV when Christine Clark, vice president for “diversity and inclusion,” released a proposed “bias” policy which allowed “victims” of bias to call the police. Yes, the police would literally be required to investigate thought crimes.

On the national scene, Congress declared it had the power to regulate speech if it was political in nature. In the name of “campaign finance reform,” regulators banned the viewing of a negative documentary on Hillary Clinton as she ran for President. Federal regulators went so far as to claim that the “printed press,” not the people, had the freedom-of-speech protection. This meant they could regulate any broadcast media, including books when published online or viewed electronically on a Kindle. Basically, the government wants to prohibit private citizens from badmouthing politicians when the latter run for re-election.

These broad-reaching powers are gross, but they are just the first step. Recently the U.S. House of Representatives passed a hate-crimes (read: thought crimes) bill providing to certain groups of people special protections not given to other races, ethnicities, sexes or sexual orientations in this country. It codifies additional penalties for people committing acts already illegal — crimes such as robbery, rape, torture, kidnapping and murder — so long as the victim was of one of the special protected classes. But are not all such crimes committed in hatred?

Remarkably, the left keeps forgetting that the 14th Amendment requires equal protection under the laws. But the bad news about thought-crime legislation doesn’t stop there. The bill, according to Cato Institute scholar Nat Hentoff, also allows federal prosecutors to try defendants in federal court, even if they have been found innocent in a state court! This directly violates the Fifth Amendment of the Bill of Rights, which says "… nor shall any person be subject for the same offence to be twice put in jeopardy…."

Sadly, as Hentoff points out, the American Civil Liberties Union has remained silent on this latest gross violation of our rights. So, too, has most of the fifth estate.

As the core group turns: Drama from Carson City

Headline from Inside Nevada Politics: Core group meeting melts down again.

Legislative leadership's core group meeting disbanded again without an agreement on how much to fund higher education, the last remaining budget lawmakers must settle in their alternative to Gov. Jim Gibbons' $6.2 billion budget.

Several lawmakers left the meeting visibly upset as a deadline for finishing the budget in time to override Gibbons' veto looms.
Senate Majority Leader Steven Horsford seems to be the cause of the frustration.
Democrats in the state Assembly and Republicans in both houses agree on a plan to cut higher education by 13 percent, but Senate Majority Leader Steven Horsford, D-Las Vegas, wants a cut of just 12 percent, according to Assemblywoman Sheila Leslie, D-Reno.

That disagreement amounts to just $14 million out of the multibillion-dollar budget, she said.

"Steven Horsford has drawn a line in the sand," Leslie said. In the group of a dozen key lawmakers negotiating the matter, "the majority of people have come to conclude that 13 percent is as far as we can stretch on the revenue side."

Horsford said the amount in dispute was "silly" but that his priority is protecting education and he has gone as far as he is willing to go.
Is Sen. Horsford right or wrong? No one knows because these negotiations are all taking place behind closed doors and the average citizen is only able to get information from the media, which is also being denied access. The Review-Journal had an excellent editorial today calling out the legislature for hiding their plans for a record or near-record tax increase.

It's time to open the doors on the Nevada Legislature's secret tax meetings. After all, the politicians are going to open your wallets to pay for it.

An open letter to state lawmakers

Dear Nevada Legislator,

Saturday I walked through my local neighborhood shopping center and then through the residential streets nearby. It was disconcerting to see, in my own neighborhood and among my own neighbors, the ravages of a busted economy.

All the empty stores, and the increasingly run-down condition of numerous houses for sale, reminded me of visits, over the years, to Nevada ghost towns. As Westerners know, when gold or silver was found, the towns would pop up virtually overnight. Then, when the minerals were gone, almost everyone would leave. Only the town’s skeleton would be left behind.

What is happening to Las Vegas, while not quite at that destructive level, is still of that family. The money that was making the town boom (funny-money from a national economic bubble) has disappeared, and so what has followed is the Southern Nevada economic bust.

In short, the level of prosperity we thought we’d achieved here in Nevada wasn’t actually real. To an unfortunate degree, the housing and tourist booms were just part of a financial mania that resulted from years of spectacularly bad Federal Reserve monetary policy — the same policy that caused the worldwide economic meltdown.

It’s not that surprising that the 2007 Nevada Legislature over-estimated the state economy’s capacity to sustain a higher level of services and spending than ever before. After all, even major Nevada business figures, like Kirk Kerkorian and Sheldon Adelson — their near-bankruptcies have shown — also got caught up and confused in the economic frenzy.

However, the situation today facing you and the other members of the 2009 Nevada Legislature is quite different. You now know things that state lawmakers in 2007 did not. You now know that the livelihoods of a record number of Nevadans hang by a thread. You also now know that the state’s economy is not, in reality, up to funding the level of services and spending that state lawmakers erroneously thought it was back in 2007.

Yet, even though it will mean harm to thousands of families in Nevada’s private sector, powerful interest groups are pressuring you to continue expanding spending.

But to do so — to increase taxes in the midst of the widespread economic carnage in our state — would be an act of serious irresponsibility.

The voters are trusting you to do what’s best for the state. And what’s best for the state is to make it the best environment possible for working families and their breadwinners. That means placing no more burdens on the companies that create the jobs these families need.

Sincerely,

Steven Miller

Parents, Students, Citizens for Choice in Education



Hundreds came out to protest the Democrats’ plan to kill the D.C voucher program — a program that awards scholarships to low-income children to attend a private school of their parents’ choice.

You already know the program works, helping to improve the reading skills of the students it allows to enroll in private schools. But do you know how parents, children and the program’s supporters really feel? Watch the video above and find out for yourself.

Monday, May 11, 2009

Media not happy with Nevada Legislature's secret tax and budget meetings, either

Last week, I wrote about how select legislators were meeting in secret to craft a record or near-record tax package.

Yesterday, both the Review-Journal and the Sun wrote on the secret meetings.

The Review-Journal explains why it's so important to keep the public out of the negotiations:
The (tax) package might be common knowledge to insiders, but not having a formal proposal allows lawmakers to avoid attacks for their plans, and to build consensus behind the scenes so that a proposal can be presented as a done deal.
From the Sun:
The big legislative news last week came when subcommittees voted to set spending levels for sections of the budget.

The votes happened in public, but with little drama. The real work to build the consensus had taken place in hours of closed-door meetings.

The public never sees the true debate over Nevada’s future, which has occurred this ession in “core group” meetings, where legislators of both parties hammer out deals.

In Carson City, cries for openness are often met with eye rolls. (Emphasis added.)
Yep, those pesky citizens are such a pain. It's outrageous that they want to know how the legislature is going to spend taxpayer dollars. How generous of legislators to put up with the sniffling, insufferable normal people.

Oh wait, we live in America? Scrap that. Open the doors on the Nevada Legislature's secret tax meetings, because legislators are abusing the privilege for political convenience.

Legislators might have had good intentions in exempting themselves from the state's open meeting law, "but they're abusing it," said Barry Smith, executive director of the Nevada Press Association.

"Obviously, the most important discussions going on this session we're not getting to hear, and people are left hanging as to what's going on and what those discussions are. The whole future of the state is hanging on it, and the public is not being allowed to be part of the process."

Smith said the solution lies not in a policy change, but in lawmakers "just upholding their own ideals."

Saturday, May 9, 2009

Reminder: Whenever the government picks winners, there are always losers



Those who want the government to "fix" their mortgage problems should remember that one person's problem is another person's opportunity. Consider the news that home prices in Las Vegas have fallen by 40 percent.
Whether this news is good or not depends on your point of view, she (Greater Las Vegas Association of Realtors President Sue Naumann) added.

"Sellers obviously don’t want to see prices keep falling," Naumann said. "But buyers are taking advantage of historic bargains, with mortgage interest rates at an all-time low, and home prices now more affordable than they’ve been in a generation."
Every time the government uses the force of law to declare someone a winner, it takes something ─ money, time, opportunity ─ from someone else.

And individuals, being self-interested, realize that if the government is rewarding "bad" behavior, they should start to engage in that behavior as well. And then everyone is much worse off. Especially when the government comes in and tries to "fix" the "problem" it created.

Just another reason why government shouldn't pick the winners and losers in an economy.

Friday, May 8, 2009

Free market at work: Nevada home sales up over 7 percent

From the Las Vegas Sun:

Driven by a whopping 40 percent reduction in prices, home sales soared in April in the Las Vegas area, the Greater Las Vegas Association of Realtors reported today.

The Realtors said single-family home sales in April totaled 3,198 -- up 7.3 percent from 2,980 in March and up 78.3 percent from 1,794 sales in April 2008.

Condominium and townhome sales totaled 727. That’s up 20.4 percent from 604 such sales in March and up 242.9 percent from 212 one year ago.

The median price of a single-family home sold in the Las Vegas area decreased by 4.9 percent during the month, from $149,000 in March to $141,720 in April. This current median price is down 39.9 percent compared to $235,875 in April 2008.
This is the free market at work. It punishes those who take out mortgages they can't afford and rewards those who work hard, save up and live within theirs means. Unlike, say, the government.

Teacher union wants to place teachers above "normal" citizens

The Nevada State Education Association has already announced that the four percent pay cut passed by the legislature won't apply to teachers in Clark and Washoe county and will be passed on to students.

The union wants to avoid the economic realities facing others in Nevada, excluding firefighters, who also want to place themselves above "normal" citizens.

First, all individuals see a fluctuation in their wages or job security. Washoe County employees recently voted for a 20 percent wage reduction. It is profoundly unfair to try to make teachers immune from what is happening to individuals in the rest of the state and then make those individuals who are dealing with economic uncertainty pay for it.

Second, teachers are rewarded, not for their ability to teach, but for longevity and post-undergrad education that doesn't impact most teachers' instructional ability. If you're a good teacher reading this, take a close look the next time you see an underachieving teacher. You're subsidizing his or her salary. If the teachers union didn't have such influence and power, you would make more money.

Wage fluctuations and compensation based on ability are easy concepts for most citizens to understand. We should force the teachers union to learn them as well.

We will spend more money, but we still won't spend it effectively

*The sports car equivalent of Nevada's K-12 education: expensive and non-functional.

The Nevada Legislature has “restored” some “budget cuts” to Nevada’s K-12 education. Among them was $81 million for the Distributive School Account (DSA), which covers the state obligation on the guaranteed student support to the local school districts.

With this spending “restored,” the DSA now looks like this:

FY 2008: $1.27 billion
FY 2009: $1.19 billion
FY 2010: $1.29 billion
FY 2011: $1.29 billion

While these numbers are in nominal values (not adjusted for inflation), we note that we’ve been in a deflationary period since 2008. Even assuming low-to-moderate inflation, the values won’t change significantly.

Additional expenditures include $28.4 million for pensions for teachers in at-risk schools. However, this is a one-time expenditure, meaning more money will be needed next year to continue the program.

The legislature added in $30 million for teachers who earn advanced degrees, a meaningless bonus that does not appear to benefit students. Rather than paying bonuses for degrees earned, Nevada and the local school districts should pay teachers based on how much value they add to student learning. Dr. Matthew Ladner of the Goldwater Institute presents a merit-pay plan in his latest report, “New Millennium Schools

According to the Las Vegas Review-Journal, the legislature has added in $271 million in education spending on top of Gov. Gibbons' proposed budget. This triggers an additional $162 million in support from the federal government, bringing spending for education up by $433 million. In short, Nevada is spending $271 million to get $162 million.

Now, will policymakers follow up on these spending increases by requiring school districts to prove that their programs work? After all, how much we spend matters much less than how effectively we spend the money. To put it another way, we can spend millions of dollars on programs that don’t work, or spend money on programs that do work.

Carson City has yet to prove the spending works.

Unions vs. students: Teachers get paid not to work

From California:.

About 160 teachers and other staff sit idly in buildings scattered around the sprawling district, waiting for allegations of misconduct to be resolved.The housed are accused, among other things, of sexual contact with students, harassment, theft or drug possession. Nearly all are being paid. All told, they collect about $10 million in salaries per year ─ even as the district is contemplating widespread layoffs of teachers because of a financial shortfall.
Some of these teachers have been on the dole for years. That's teacher unions for you: Make sure alleged misbehavers keep getting a paycheck so the union can keep collecting its union dues.

And why aren't the former teachers doing something, anything?
Former union leaders say teachers in the Los Angeles district used to be assigned non-teaching jobs when they were housed. "They should not just sit there like zombies," said Hank Springer, United Teachers Los Angeles president from 1975 to 1980.

But the practice has changed in the last dozen years or so. Now, district officials say, they are prohibited from assigning chores under the contract with the teachers' union. Although there is no specific reference in the contract to housed employees, an attorney for L.A. Unified pointed to Article 9, Section 4.0, which defines the "professional duties" of a teacher, such as instructional planning and evaluating the work of pupils.

With no mention of photocopying, stuffing envelopes or answering telephones in the contract, the district and union have interpreted this provision as prohibiting clerical duties.
Just another example of teacher unions putting their own interests before everyone else's.

(h/t Michelle Malkin)

Thursday, May 7, 2009

Anti-smokers still shoot blanks



The Las Vegas Sun published an article on the effects of second-hand smoke in casinos, writing,

Anti-smoking advocates hailed the results of the long-awaited study, which mirror previous government and privately funded research on secondhand smoke and are expected to provide ammunition to those pressuring the gaming industry to implement smoking bans.

But if it is ammunition the anti-smoking zealots are after then they’re still left firing blanks

The report concludes:

[Non-poker] casino dealers reported higher prevalence of respiratory symptoms compared to administrative and engineering employees, but the differences in the prevalence between the groups were not statistically significant.

Translation: There was no statistically significant difference in respiratory symptoms between those who worked in the smoking areas and those who worked in the non-smoking areas. Scientifically speaking, there is a good chance those respiratory problems occurred at random, too strong a chance to lay the blame on second-hand smoke.

Unfortunately, the Las Vegas Sun missed this key finding in the report.


Yes, smoking can be harmful, but so can driving to work, swimming in your pool or eating food that actually tastes good. Next on the list of things for do-gooders to ban:

Hamburgers
Pizza
Trampolines
Pools
Scooters
Skateboards
Gassy foods
Water guns
Sushi
Mongolian BBQ
Cooking at home
Pogo Sticks
Fun

The study can be found here:
http://www.cdc.gov/niosh/hhe/reports/pdfs/2005-0201-3080.pdf



Stop the surprises: Open the doors on Nevada Legislature's secret tax meetings



You can say one "nice" thing about politicians. They are full of surprises. Consider this session.

Sen. Coffin proposed taxing illegal activities. Speaker Buckley spent months talking about transparency before the session and then forgot all about it once real decisions had to be made. Nevada System of Higher Education Chancellor Rogers threatened suicide. Sen. Horsford almost had an emotional breakdown. Gov. Gibbons was against taking strings-attached stimulus fund before he was for it. And Nevada's teachers union announced it is just fine with larger class sizes after all.

That's what's so disturbing about the secret tax increase being negotiated by a dozen legislators behind closed doors. Politicians aren't exactly easy to predict, and they're going to spring a record or near-record tax increase on Nevada that would have to be passed no later than two weeks from tomorrow.

As I wrote yesterday for npri.org:
Probably the most controversial thing the legislature will do this year will be to propose record or near-record tax increases. But average Nevada citizens don't know which taxes are going to be increased, how much they'll go up, or whether entirely new taxes will be created.

Nevadans remain in the dark because Buckley and a dozen or so other lawmakers are holding closed-door meetings to discuss how they are going to raise taxes. Apparently, Buckley's commitment to transparency is so shallow that it doesn't even extend to the entire legislative body, nor does she even recognize how inconsistent her own behavior is…

Some citizens will think that the final tax package is much too large. Some will think it's too small. Some will think that different taxes should have been increased or lowered, and still others will argue that Nevada didn't need to raise taxes at all. But since the process of crafting the package has been so opaque, Nevada's citizens will barely have time to learn about the bill, let alone share their opinions with their elected officials, before the bill goes to a vote. Let's at least hope that, unlike with the federal stimulus bill, legislators themselves will have time to read this one before they vote on it.
Tyrus Cobb also makes this point today in the Nevada Appeal:
Discussions are apparently ongoing behind closed doors in something called the “core group.” It is not, we are assured, a “secret group.” However, neither the Legislature nor the public have had the opportunity to see, hear or subject these budget proposals to debate and analysis.We are dismayed that after promising a fresh slate of new ideas and new taxes, none has appeared and we, the public, after waiting so long, will have at best 10 days to scrutinize the final budget.
These secret meetings should be open and transparent. Those politicians are playing with our money, and we deserve to know all of the surprises they have up their sleeves.

Bonus question: How embarrassed should our legislature be that NPRI has publicly released a state budget before they have? I'm just saying.

And it's in line with current tax-collection projections without the room tax, stimulus funds or selling off the tobacco settlement.

Maybe that's why NPRI isn't elected to any office. We've got no surprises — just a consistent application of the principles of limited, accountable government, free enterprise and individual liberty.