Wednesday, March 31, 2010

3 reasons public sector employees are killing our economy



Reason.tv has put out this three-minute video on the three reasons why public sector unions are killing our economy.

1) They cost too much.
2) We can't fire them.
3) They create a permanent lobby for expanded government and higher taxes.

Watch the video above to learn more.

Tuesday, March 30, 2010

States hiding debt

There was a great article in the New York Times yesterday that discusses the various gimmicks states have tried in order to mask their debt. The article correctly highlights how the increasing debt burden of states will likely cast their future creditworthiness in doubt.

The lesson that should be drawn? Don't spend what you can't afford.

Policing for Profit



Civil forfeiture laws represent one of the most serious assaults on private property rights in the nation today. With civil forfeiture, police and prosecutors can seize your property and use it to fund their budgets—all without charging you with a crime. Americans are supposed to be innocent until proven guilty, but with civil forfeiture, your property is guilty until you prove it innocent—and law enforcement has a huge incentive to police for profit, not justice.

The Institute for Justice's new report, Policing for Profit, ranks Nevada's civil forfeiture law a D+. The Institute for Justice report,

Nevada forfeiture law provides paltry protection for property owners from wrongful forfeitures. The government may seize your property and keep it upon a showing of clear and convincing evidence, a higher standard than many states but still lower than the criminal standard of beyond a reasonable doubt. But the burden falls on you to prove that you are an innocent owner by showing that the act giving rise to the forfeiture was done without your knowledge, consent or willful blindness. Further, law enforcement keeps 100 percent of the revenue raised from the sale of forfeited property. Additionally, the revenue must be spent within the year, because any excess more than $100,000 in a forfeiture account is given to local schools. This provision creates an incentive to rely on new forfeitures each year. Nevada law enforcement officials are supposed to report on forfeiture, but they did not respond to requests for information.

Monday, March 29, 2010

Photos from the Henderson Tea Party

Here are some photos from the Henderson Tea Party. Thanks to the 2,000 people who attended and Grassroots Nevada for putting on such a successful event.

For anyone who was there and wanted a copy of NPRI's Legislative Report Card, click here.




More photos after the jump.










Saturday, March 27, 2010

NPRI's Legislative report card

Thanks to everyone who came to the Henderson Tea Party and was interested in the Nevada Policy Research Institute's Legislative report card. I'm sorry we ran out of hard copies, but as promised, you can read the whole report here.

Or if you prefer, the scorecard by itself is below, but I'd urge you to read the full report (the scorecard is on page 18) as well. It's very informative and fully explains the percentages. The CliffsNotes version is that higher percentages are better and that if a legislator received a score of over 50 percent, he or she is generally considered to be a friend of the taxpayer.

Unfortunately, in the last session, only 11 lawmakers were friends of the taxpayer.



For more information on the Nevada Policy Research Institute, visit our homepage at npri.org. While you're there, sign up for our E-Bulletin (top of the right column) to receive e-mail updates on our research. Also, you can become a fan on Facebook or follow us on Twitter @NevadaPolicyRI.

We're also consistently updating this blog, Write on Nevada, and we look forward to continuing this conversation. Let us know if you have any questions.

Friday, March 26, 2010

School choice developments



Approximately 5,500 parents, students and other Floridians rallied together this week to support expanding the Step Up for Students voucher program, which serves 23,000 low-income children. Meanwhile, the Florida state Senate passed an expansion to the program. The Step Up for Students expansion passed through the Senate, 27-11, with a quarter of Democrats in support. It now goes to the House, where it is expected to pass.

In other news, Illinois state Senator James T. Meeks (D-Chicago) pushed a voucher bill for low-income Chicago students through the state Senate. The bill now has to pass a hostile House to become law.

Thursday, March 25, 2010

We'll have what Florida is having


More great news on the education front ... if you live in Florida. Florida's Hispanic students now outscore Nevada's white students (223 vs. 222) on the National Assessment of Educational Progress fourth-grade reading exam - which, I might add, is in English.

Florida continues to prove that ALL students can achieve. Nevada needs to copy what Florida has done, and quickly!

Read "Failure Is No Longer an Option" to learn more about Florida's reforms.

Wednesday, March 24, 2010

Florida continues the march of success


Political pundit Jon Ralston recently criticized gubernatorial candidate Rory Reid's (D) market-oriented education reform package. Reid correctly identified the problems with public education – it is bureaucratically controlled, micromanaged, uncompetitive and unaccountable.

Basically, Reid proposes addressing the shortcomings by giving schools more autonomy and then holding them accountable to empowered parents, who can pick among competing public schools. It is a plan that Democrats, Independents and Republicans should embrace - the ideas work.

Ralston criticizes the plan because 1) he doesn’t seem to like the idea of empowering parents with choice, and 2) Reid didn't talk about raising taxes. Ralston doesn't seem to want to see policies that stray from his own left-wing orthodoxy.

Frankly, raising taxes is not education reform. Reid is telling us we should use resources more effectively, and Ralston is saying we should simply use more resources. Whether he intends to or not, Ralston basically says, “Oh yes, we can babysit your kids for $11,000 a year, but if you want them to actually get an education, you’ll just have to pay more.”

The fact is, spending more money hasn’t worked in the past, and it won’t work in the future. That is why we need serious reform.

Fortunately, we have as an example the state of Florida, which continues to prove that genuine reform works. The 2009 National Assessment of Educational Progress report shows Florida continues its march of success. Nevada? Err, not so much.

Florida’s Hispanic students now tie or best the statewide average for all students of 30 other states (including Nevada) on the NAEP fourth-grade reading exam – up from 15 states two years ago. Florida’s black students now tie or best the statewide average for all students of eight states (including Nevada), up from two states two years ago. Even Florida’s low-income students best the statewide average of all Nevada’s students and beat or tie students from 13 other states.

Is there any doubt now that education needs to be seriously overhauled?

*Florida's low-income students outscore the statewide average of all Nevada students.

*Florida's Hispanic students outscore the statewide average of all Nevada students.

*Florida's African American students tie the statewide average of all Nevada students.

Learn more about Florida's reform efforts in NPRI's report, "Failure Is No Longer an Option"

Tuesday, March 23, 2010

I'm just a bill



Do you remember the original 1970s Schoolhouse Rock cartoon about how bills get passed into law? Well, that isn't the video above. Watch this cynical Schoolhouse Rock parody about what really goes on in Congress.

Unions KO'd in New York debate



Intelligence Squared held a debate on whether or not unions were to blame for our failing schools. On the pro union side were union bosses Randi Weingarten, Gary Smuts and Kate McLaughlin. On the other side were Stanford professor Terry Moe, former Secretary of Education Rod Paige, and Larry Sand an LA teacher and president of the California Teacher Empowerment Network.

Interestingly, the audience was polled before and after the debate. Before the debate 24% believed teacher unions were not to blame, 43% believed they were to blame, and 33% were undecided. By the end of the evening 25% believed the teacher unions were not to be blamed, 68% believed they were, and 7% remained undecided.

Read the transcript of the debate or visit Jay P. Greene’s blog for some choice quotes.

Monday, March 22, 2010

Obamacare and education reform

*Education or health care? Voting for ObamaCare may be a vote against education funding.

NPRI’s recent summit on education reform treated attendees to a roster of speakers with diverse backgrounds and opinions. Overall, it was a great conference. One speaker, Dr. Jay P. Greene of the University of Arkansas, made an interesting observation concerning the relationship between education and health care.

Dr. Greene noted that education and health care make up the vast majority of expenditures by state governments. He also noted that the Obamacare proposal would raise significant costs on state governments in order to provide the mandated care. This would put an even greater strain on state finances than we see today. Dr. Greene predicted that states will be unable to pay the cost of Obamacare by increasing taxes — the people simply wouldn’t allow it. This means government would have to drastically cut back on services, and education would present itself as the biggest target for financial savings. (Here in Nevada, education is the biggest expenditure item.)

Thus, voting for ObamaCare turns out to be a vote against education funding. So if you think the 2 percent spending reduction education faced in this biennium was devastating, just wait.

Dr. Greene didn’t make this point to scare people away from Obamacare. He was pressing a point about the financial imperative of using existing resources more efficiently to provide a better system of public education. We have to reform, because public education is simply unsustainable in its current form.

Education is already growing in cost at an excessively rapid rate (faster than health care, actually). Passing Obamacare will only make Judgment Day arrive earlier than expected.

The silver lining is that Obamacare may force Nevada to drastically reform its education system, as the clock continues to tick and the “Bank of Nevada Taxpayers” runs out of cash.

If you have time, check out Dr. Greene's blog, too.

State pension plans have $3 trillion deficit...

...and you'll be paying for it.

In the not-too-distant future, your tax dollars will go primarily to public retiree benefits and not to education, health care or public safety. Just check out this column in the Wall Street Journal today.

Don't think it's a problem here in Nevada? Think again. And again.

Boehner vs. Pelosi on healthcare

Why the stimulus isn't working


A year ago, UC-Irvine economist Richard McKenzie predicted that the $787 billion stimulus package wouldn't work. In this Reason.tv video he explains why it hasn't worked.

'A dark day for freedom in America'

Requiring only four paragraphs to do it, the Telegraph's Nile Gardiner offers a sobering breakdown of the parade of horribles that will result from the House's passage of the health bill over the weekend.

An excerpt:
The passage last night of Barack Obama's health care reform bill through the House of Representatives is yet another blow to freedom in America inflicted by the Obama administration. The legislation, which comes at a staggering cost of $940 billion, will hugely add to the already towering national debt, now at over $12 trillion. It is yet another millstone round the necks of the American people, already faced with the highest levels of unemployment in a generation.

It is also a great leap forward by the United States towards a European-style vision of universal health care, which will only lead to soaring costs, higher taxes, and a surge in red tape for small businesses. This reckless legislation dramatically expands the power of the state over the lives of individuals, and could not be further from the vision of America's founding fathers. It has also been rushed through Congress without proper scrutiny, in the face of overwhelming public opposition, and with not an ounce of bipartisan support.

Read the whole thing here.

Thursday, March 18, 2010

How to save our schools



Reason TV hits the road with Drew Carey to figure out what to do about Cleveland's poor-quality schools. Reason recommends school decentralization - something we've called empowerment schools here in Nevada. Under this model, school funds are given to a school once a parent chooses that school, and principals have greater autonomy over how to use those funds while teachers have more control over the classroom. The result is less micromanagement from the central office, less waste, more efficiency, happier teachers and better schools.

NPRI made the same recommendations in our recent series on empowerment schools.

UNLV's love affair with the big, ugly and expensive

*Interior of UNLV's wellness center.
Photo by John Gurzinski/LAS VEGAS REVIEW-JOURNAL

Do you remember the $780-a-square-foot Greenspun Hall? It isn't the only big, ugly (in my opinion) and expensive building on UNLV's campus. Now UNLV needs to fix its student wellness center because it is not up to code to withstand earthquakes. The building will need millions of dollars in repairs on top of the more than $45 million the university already spent in the center's initial construction.

According to the Review-Journal, "The four-story facility houses a running track, two swimming pools, courts for basketball and racquetball, work-out machines, health service, spa, cafe and meeting rooms. Students, not Nevada taxpayers, footed the bill to construct the rec building, through an academic-credit fee."

UNLV shouldn't be running a health and wellness business. It should be educating students. All students at UNLV are forced to pay these fees whether or not they use the facilities, and this is unfair to most students. People should not be forced to pay extra for amenities in education they do not want and do not use.

UNLV and other colleges should sell these facilities - including all the equipment - or rent out the space to private service providers. Las Vegas is NOT short on private gyms, which students can join if they wish.

Wednesday, March 17, 2010

Public-sector unions vs. everyone else

*The state legislature should ban collective bargaining for public-sector unions before we're all squeezed.

Union membership now makes up less than 10 percent of the private-sector workforce, but union membership of government workers – where they are free from the “burden” of having to compete to keep “customers” happy – remains at an all-time high. In fact, government workers now make up more than half of all union memberships nationwide. Nevada ranks 23rd with 37 percent of the government workforce unionized.

The Cato Institute states that “collective bargaining is a misguided labor policy because it violates civil liberties and gives unions excessive power to block needed reforms.” In Nevada, we've seen, during these troubled times, firefighters stubbornly refuse to pay-cut consessions - even though the average firefighter in Las Vegas makes more than a Colonel in the U.S. military.

Unwilling to make meaningful concessions or allow reforms that would use resources more effectively; unions have forced state and local governments to cut back services. Thus, unions position themselves above the very people government workers are supposed to serve – including the elderly, children, and people in need of welfare assistance. The government unions are self-serving special-interest groups, and collective bargaing grants them more power at the expense of the overall health of the state and its people.

The Cato Institute recommends following the lead of Virginia and banning collective bargaining in the public sector.

Obama twists the truth in his latest health care pitch

Just received the latest Organizing for America e-mail urging liberals to support socializing medicine.

This e-mail was even "from" the President himself, and included this sob story, which, unsurprisingly, twisted the truth to support Obamacare.

From the President's e-mail:

During moments like this, I believe it's important to remember why we have worked so hard for so long. That's why I spoke to the country Monday at a gathering in Ohio and said it plainly: I'm here for Natoma.

Natoma Canfield is like most of us: She works hard, and tries to do what's right. Years ago, she had battled back from cancer, so she always maintained health insurance in case she ever really needed it again. But because of her medical history, the insurance company kept raising her deductible and her premiums.

Last year alone, Natoma paid over $10,000 in monthly premiums and co-pays, while her insurance company chipped in just $900. And then they hiked up her rates another 40%. She simply couldn't afford it -- she had to cancel her policy. That's when she wrote to me. I read her letter, and shared her story with insurance company CEOs as another reason why the system has to change.

That was two weeks ago. Then, just last week, the unthinkable happened: Natoma collapsed, and was rushed to a hospital. It's leukemia -- the cancer has returned. Now she's in the hospital, worried sick not just about her condition, but how she'll financially survive.

So why am I still in this fight? Simple. I'm here for Natoma.
But the truth is the system is working for Natoma right now. She's getting treatment at one the best hospitals in the world and she's in the process of qualifying for government or private aid.
Though Canfield's sister Connie Anderson said her sibling is afraid she'll lose her house and Obama warned at an Ohio rally Monday that the patient is "racked with worry" about the cost of tests and treatment, she is already being screened for financial help.

Lyman Sornberger, executive director of patient financial services at the Cleveland Clinic, said "all indications" at the outset are that she will be considered for assistance.

"She may be eligible for state Medicaid ... and/or she will be eligible for charity (care) of some form or type. ... In my personal opinion, she will be eligible for something," he said, adding that Canfield should not be worried about losing her home.

"Cleveland Clinic will not put a lien on her home," he said.

Cleveland Clinic offers personal guides to patients like Canfield who are concerned about payment to try to match them up with programs that can provide full or partial assistance. One option is state Medicaid coverage, which Canfield did not have when she was admitted. Another is charity care that is routinely provided by the hospital, which is a nonprofit. Cleveland Clinic reported providing $99 million in charity care in 2008.
At least he's consistent. He's lied about the stimulus and transparency. Why not health care as well?

Tuesday, March 16, 2010

Ramirez: Obama's latest health care proposal

From Investor's Business Daily:


What's happening right now? No one knows, not even the House leadership, as evidenced by the current Drudge headlines.
Top FOUR Dem Leaders All Disagree...BLOOMBERG: Pelosi Says Dems to Have Votes for Health Bill... THE HILL: Hoyer Shoots Down Larson's Vote Count, Clyburn's Timeline...THE HILL: Clyburn Says Health Vote Could Push Past Easter Holiday...POLITICO: Larson Says Dems Have the Votes...

Charter schools and student performance


Dr. Paul Peterson of Harvard University and the Hoover Institution has a wonderful article in the Wall Street Journal that you should read. Dr. Peterson will be one of NPRI's presenters at this week's education conference at The Orleans (tickets are still available). Learn more about NPRI's education summit, titled "Success for Every Nevada Child."

Here are some select quotes from the article. Peterson on creative destruction in education:
Twentieth century economist Joseph Schumpeter saw it another way. In his view, it is in the nature of markets that middling firms are "creatively" destroyed by good firms, which are themselves eventually eliminated by still better competitors. Ignoring this basic economic principle, critics of charter schools and other forms of school choice see no hope for competition in education. These critics ask us to leave public schools alone apart from creating voluntary national standards—speed zones without traffic tickets, as it were.

Yet few doubt that public schools today are troubled, as the president noted on Saturday. What the president left out is that the performance of American high school students has hardly budged over the past 40 years, while the per-pupil cost of operating the schools they attend has increased threefold in real dollar terms. If school districts were firms operating in the market place, many would quickly fall victim to Schumpeter's law of creative destruction.
Peterson on charter schools:
To identify the effects of a charter education, a wide variety of studies have been conducted. The best studies are randomized experiments, the gold standard in both medical and educational research. Stanford University's Caroline Hoxby and Harvard University's Thomas Kane have conducted randomized experiments that compare students who win a charter lottery with those who applied but were not given a seat. Winners and losers can be assumed to be equally motivated because they both tried to go to a charter school. Ms. Hoxby and Mr. Kane have found that lottery winners subsequently scored considerably higher on math and reading tests than did applicants who remained in district schools.

In another good study, the RAND Corp. found that charter high school graduation rates and college attendance rates were better than regular district school rates by 15 percentage points and eight percentage points respectively.

Instead of taking seriously these high quality studies, charter critics rely heavily on a report released in 2004 by the American Federation of Teachers (AFT). The AFT is hardly a disinterested investigator, and its report makes inappropriate comparisons and pays insufficient attention to the fact that charters are serving an educationally deprived segment of the population. Others base their criticism of charters on a report from an ongoing study by Stanford's Center for Research on Education Outcomes (Credo), which found that there are more weak charter schools than strong ones. Though this report is superior to AFT's study, its results are dominated by a large number of students who are in their first year at a charter school and a large number of charter schools that are in their first year of operation.

Sunday, March 14, 2010

Markets in education work



Dr. Eliot Parker (an economist at the University of Nevada, Reno) says we are undercutting our future with the budget cuts to higher education (less than 3 percent of the overall budgets). He believes we need taxes and government-run schools because markets don't work:

So why do we need public universities in the first place? Free markets are wonderful at giving more to those who already have, and private universities such as Harvard and Stanford are among the best in the world. But as my colleague Maureen Kilkenny, a respected economist in a department slated for elimination, says, “markets can do nothing for people with nothing.” For those who lack education, skills or family wealth, the free market offers little hope for improvement. By paying taxes to provide education, we help to level the playing field.
There is no easier place for Dr. Parker and Dr. Kilkenny to prove their point than by examining the poorest places on planet Earth. If they are correct, we should see the poor either suffering with unaffordable private schools or succeeding with free government-run schools. We'll focus on K-12 education because without a foundation, no one can go to college.

Fortunatly for the poor, Parker and Kilkenny's thesis is incorrect. Dr. James Tooley's work (see the video above) shows that some of the poorest people on the planet are building low-cost private schools to compete with the free public schools. Dr. Tooley has tested the students and found that many of these private schools outperform the public schools, some of which do so for just $1 a week.

The reality is: Markets work. Government-run schools fail precisely because there is a distinct lack of market activity. Higher education (like K-12) needs to emulate the market and adapt, not resist change to sustain an outdated, 19th Century model for education.

Friday, March 12, 2010

Live blogging the Nevada Vision Stakeholder Group meeting March 12

Welcome to another meeting of the Nevada Vision Stakeholder Group. Background here. Basically this is the group that's going to try and justify a tax increase in the 2011 Legislative Session. Watch online here. Scroll for updates...

9:09 Meeting begins with Chairman Lang hawking recent Brooking Institute publications. Most interesting is his take on the federal money Nevada does (or doesn't) receive. Nevada needs to "get in the game" when it comes to federal money.

9:12 Lang still going. We're entitled for this money to be returned to us.

Better idea. Nevada keeps its own money, instead of Washington D.C. taking it and then distributing it as it sees fit.

Lang justifies by saying we've benefited from federal largess before.

9:17 Public comments limited to 3 minutes. A vision for Nevada, eh?

9:19 The rough draft of the NVSG vision for Nevada is read into the record. I will type it up in full later, but it's fairly broad. Basically there is lots of room for liberals to read into this any program they want.

First one that jumps out at me -- Nevadans "are safe and connected -- through communications and transportation." Expect transportation (especially mass transit) to be a focus of this group.

9:20 Donald D. Snyder, Smith Center for the Performing Arts: "Tax structure needs to be reformed."

Snyder: Look at the Sage Commission as well.

9:26 Moody's guy: Competition for federal dollars is heating up. -- Exactly the problem with giving the feds your money and then competing to get it back. Government shouldn't be picking the winners and losers in the economy or in state government.

9:29 Potter: Not enough incentives to get businesses to come here.

This is the other problem when planners attempt to run the economy. They attempt to lure "important industries" with special tax breaks for them. Now I'm all for tax breaks, but they shouldn't be given to a particular business or industry. Nevada should have an equal and low tax and regulatory burden. This would allow individuals to choose the winners and losers in the economy.

9:44 Right now they are rehashing the strengths/weaknesses of Nevada that the NVSG members came up with in last meetings' breakout sessions.

Some things that jump out at me. Strengths: Open government. Really?

Opportunities: Continue NVSG project into future years. Because one tax hike in 2011 won't be enough for state liberals. Don't believe -- look at the tax hikes in 2003 and 2009. If the Legislature has money they will continue to grow government at unsustainable levels, which will always lead to government wanting more money. Don't believe me? Check out California. What tax don't they have?

10:00 Alright, getting onto today's subjects: Transportation and energy.

10:01 Oh wait, Brian Rippet wants to defend the PERS system. Says taxpayer contribution is only 20 percent -- will check with Geoff on this. Teachers/firefighters not eligible for Social Security.

Rippet: Belief that PERS is a threat is without basis.

No there is a basis -- a $9.1 billion unfunded liability.

10:08 Janelle Kraft Pearce references Sherm Frederick's great column on the NVSG. Awesome.

10:15 Allen Biaggi, Director of State Dept. of Conservation and Natural Resources begins his testimony. Says green house gases are the major issue of our time. Reviews EPA's potential regulation of green house gases.

Sorry for lack of updates, I'm not really up to speed on environmental/water issues.

10:29 James Groth, Director of Office of Energy, goes next. Says all of Nevada's problems are paper problems, not physical problems. I think he's talking about energy here.

10:39 Okay, I have no idea what he's talking about. He seems to be trying to cover everything at once.

10:41 Groth says he's currently a Warrant Officer in the Nevada Army National Guard. Hooah! Not sure how that relates to Nevada's energy use, but maybe I'm not just up to speed on all this.

10:46 Groth: Lots of energy supply in Nevada, but prices still high. Nevada has best potential for solar energy in USA. Energy companies will come here without subsidies, because of our resources and location.

Anyone know why this is -- If we have lots of supply, why are prices high? Are they underdeveloped/overregulated?

Groth suggests part of Nevada's problem is that large, large portions of the state are owned by the feds. Yep, that makes sense.

10:54 Lang says Nevada should have access to federal lands.

Ironic that Lang bemoans federal control of Nevada's land, while at the same time advocating more state control of Nevada's citizens' tax dollars (through this "visioning process"). What about liberty and the freedom to set your own vision for your life?

11:10 Groth: Education not a help or hindrance when getting energy to Nevada. Not discussed.

11:12 Nevada is suppose to have 25% renewable energy in its energy portfolio by 2025. Semi-related: California global warming law may lead to job losses, report says.

11:23 Last presenter, Scott Rawlins, Deputy Director of NV Department of Transportation.

11:26 Says NDOT will have $4.7 to 6 billion gap by 2016. Gas tax revenue is down. (Also of note, gas tax revenues being taken for none transportation issues)

11:28 Plugs high speed rail. "Congestion can't be solved just with roads." Suggests gas tax could be going away. Why? Partially, global warming and green initiatives. Potentially replaced by vehicle miles of travel tax.

11:32 Wants alternatives to gas tax model -- Vehicle Miles of Travel Fee Study is currently going on. Did anyone know about this study? I haven't heard about it.

11:38 Here's John Stossel's report on private alternatives to government funded roads.



For more here's Reason's Robert Poole on how to fund new roads.

11:46 Setting the details on the final NVSG meeting (there are still three more meetings until that one, but the details of those meetings have been set for a while). Marsha Irvin wants to talk more about education. I think the final meeting is going to be May 14 at 9 a.m. in Carson City and video conferenced down to Las Vegas.

11:54 Small break. Two breakout groups meeting at noon.

12:08 Breakout groups begin. Obviously I can only cover one. I'm in the one that includes Chairman Lang, since he seems to be controlling/guiding everything.

Doing a SWOT (strengths, weaknesses, opportunities, and weaknesses) analysis on environment, energy, and transportation.

12:09 First comment by Boyd Martin or Boyd Martin Construction. Strength is that construction wants to go green. Really?

12:24 Weaknesses: Water and it's dry here.

12:26 Thomas Perrigo: Weakness is that we built in an auto-centric manner. Auto-dependent.

Wonder if any of these Stakeholders used mass transit to get here this morning. Doubtful.

This is what I don't understand about government officials. People like to drive. They like their cars. It's an issue of freedom of mobility. Why not respect the people's wishes instead of trying to force mass transit down peoples' throats?

12:31 Boyd Martin, of Boyd Martin Construction, wants more funding for construction. Shocking.

12:33 Thomas Perrigo: Weakness is that we haven't invested in light rail.

Reminder: Light rail doesn't work.

12:37 Lang happy Las Vegas is densely built. Says we need to retrofit. "Remake some of the urban space."

Yep, that's their vision. Remaking your life. Idea: Let people make their own decisions or remake urban spaces as a private investor. If it's such a good idea, you'll make bundles of money without infringing on anyone's freedom.

12:42 More talk about high speed rail. Can they name some place where building light rail has worked and hasn't been heavily subsidized by the government?

12:53 Lang: Concern with global climate change. Could dry up Lake Mead.

Good news Chairman Lang: Global warming is a joke and scientists know it.

12:58 Heh. A little power struggle here. Robert Lee Potter, AFSCME (in Carson City), volunteered to do the presenting for the next meeting on this breakout group. He was ignored as the committee "volunteered" Boyd Martin.

1:03 Setting categories for goals: water/energy use for unit of gross domestic product, renewable energy generation, increase in use of alternative forms of transportation (goal for the Sun Belt: above 5%, currently at 3%), increase recycling, fiscal policies that encourage this.

1:08 Meeting ends. Can't wait to get food.

Please forgive any spelling errors or changes, this is a live blog after all and I don't have time to proof read.

Thursday, March 11, 2010

Live blogging the Nevada Vision Stakeholder Group meeting tomorrow

Just a reminder that the NVSG is meeting tomorrow at 9 a.m., and I will be live blogging it right here on Write on Nevada.

Also, you can watch the meeting live here, or attend the meeting at the Grant Sawyer Building in Las Vegas or by video conference at the legislative building in Carson City.

Here's some good background, if you need to get up to speed on what the NVSG is and how it's working to raise taxes in 2011.

I'll see you tomorrow.

To pork or not to pork: That is the question



The Las Vegas Sun once again bemoans the fact that Nevada doesn't get enough federal dollars. But the paper's editors aren't thinking too hard about the issue.

1) Federal dollars are about states suckling from the federal government's proverbial teet, with states treated like little piglets to the federal sow.

2) Nevadans built an oasis in the desert, largly without the federal government's help. We are one of the wealthiest states with one of the lowest poverty rates, no thanks to Uncle Sam. We don't need Uncle Sam and, frankly, that money has always been peanuts, anyway.

3) Taking federal money means accepting dozens of costly strings that restrain OUR freedom to do things OUR way. It means we can't innovate to solve OUR own problems. It means we have to solve problems with the most expensive, one-size-fits-all, government solutions from Washington, D.C.

4) This is nothing more than the federal government robbing Nevadans to pay everyone else. We shouldn't be part of the problem by trying to rob from other states. Nevada should stand up to the federal bullies in court to get OUR money back to spend it how WE see fit.

Should Las Vegas build an arena for a pro sports team?

Easy answer: Definitely not. It's not the government's job to pick the winners and losers in the economy. And yes, professional sports is fundamentally a business.

Better question: Should a private individual build an arena in Las Vegas for a pro sports team without government financing?

Answer: I don't know. It's not my money and I don't know if it would be a good investment. But if, as the Las Vegas Sun reports, a private developer wants to build one without government money or bonds, more power to them. And yes, I'd love to go watch a privately financed professional sports team. (Personal preference, in order: NBA, NFL — which would be first but for the cost and potential blackouts — MLB, Ultimate Frisbee, NHL)
While working with Mayor Oscar Goodman six years ago to finance a baseball stadium and lure the Expos to it, he [Lou Weisbach, CEO of Stadium Capital Financing Group] came up with a stadium financing plan that The Wall Street Journal dubbed a “sports mortgage.”

Weisbach’s financing plan works like this:

His company sells seating and luxury boxes in much the same way developers sell homes.

The buyers are able to finance their purchased seats over several decades, similar to a home mortgage. They, of course, retain the right to later sell their seats for a profit or transfer them to another owner.

“As the value of tickets goes up, that would create value in that seat,” Weisbach said.

Last year, the University of Kansas and University of California, Berkeley, used the “Equity Seat Right” system to pay for expansions and renovations of their football stadiums.

“It would be great to be able to help facilitate an arena in the place where this idea was born,” Weisbach said, referring to Las Vegas.

At Berkeley, 3,000 seats were put up for sale, with the most expensive going for $175,000 to $200,000, financed over 50 years. Other seats were sold for as little as $40,000 over a 40-year term.

In September, Berkeley reported getting commitments from buyers for 2,000 seats…

The two arena plans, as proposed, would require the Clark County Commission to sign off on the sale of bonds or a hike in the sales tax to pay for the projects. But Weisbach’s plan, because it doesn’t require public financing, would require little say from the commission, beyond zoning and other planning-related issues…

Still, some are sure to point to Southern Nevada’s experience with the financially troubled monorail. It was built with private money and might end up being bailed out by taxpayers.

Commissioner Chris Giunchigliani expressed skepticism that an arena could truly be financed without public assistance, saying the “devil is in the details.”

Taxpayer assistance, she noted, isn’t always “a direct dollar” thing. Even if no upfront investment is required, taxpayers could end up paying for it on the back end through dwindling tax collections, tax exemptions or being on the hook for debt if the plan doesn’t work.

“In this business climate, we first need to have a survey of whether Southern Nevadans even want an arena and would use it,” she said.

In response to such questions, Weisbach was firm: “No taxpayer help. None.”
I'm glad Commissioner Giunchigliani is skeptical, because some businesses try to pull a bait and switch when it comes to rejecting and then accepting government handouts. But if it turns out that Weisbach really means, "No taxpayer help. None,” then more power to him.

And since they'd be using private dollars, we shouldn't have any say in the matter, anyway (beyond the planning issues noted above).

Wednesday, March 10, 2010

Tasty animals don't go extinct


I just came across an interesting article from our friends over at the Reason Foundation. It reviews the history of a sea turtle farm in the Grand Cayman Islands while positing that market forces hold the greatest potential for rescuing endangered species.

The premise is that if there is a demand for certain animal goods, then savvy suppliers can and will farm those products as the number of wild specimens declines. In fact, the Grand Cayman turtle farm is now repopulating the wild with farmed turtles as well - all in spite of, and not because of, prohibitive government regulations. It's worth a read.

What's the point of statehood?

Graphic by Alex Richards of the Las Vegas Sun


A new report by the left-of-center Brookings Institution says Nevada is last in the nation in federal funds recieved per capita. We get just $742.42 annually per capita, compared to the national average of $1,469.

First, Nevada is actually a fairly wealthy state with a fairly low poverty rate compared to the rest of the nation. So it is to be expected we would have lower federal funds for welfare expenses. Second, sometimes going after federal dollars is more expensive than the money you get. Those dollars don't come cheap - there are all sorts of strings attached.

Not only do you have to take into account the labor costs associated with recieving Federal grants, you have to take into account the compliance costs of Federal mandates as well.

And with the federal government poised to take over health care and public education, and run the nation into ruinous debt and collapse everyone's social security "account," maybe being a state isn't worth it anymore.

The fact is, we don't have to participate in many federal programs; we can forgo the money and go our own way, and that may actually save us money! For example, we don't have to run a massive bureaucratic welfare state the way the Federal government dictates. If we, as a people of Nevada decided a social safety net was a good idea, we could simply use existing funds and give the people the money they need on a debit card. Complying with federal mandates, however, doesn't allow us to find innovative and smart solutions to social and economic problems - it forces us to find the most expensive and labor intensive solutions.

Unless Nevada's policymakers stand up to the bullies in Washington, D.C., Nevada might as well be just a territory again.

Should Nevada be like California or Texas?

The limited government of Texas beats the overreaching government of CaliforniaNevada has some big decisions to make in the 2010 elections and the 2011 legislative session. Should we rein in spending or maintain an unsustainable rate of spending increases by raising taxes (which will lead to more tax increases in the future)?

The nice thing is that we know what the results of following each path would be 20 years from now. How?

By looking at two states — Texas and California — that went in opposite directions 20 years ago.

Michael Barone provides the telling comparison:

They are lessons that are particularly vivid when you contrast Texas, the nation's second most populous state, with the most populous, California. Both were once Mexican territory, secured for the United States in the 1840s. Both have grown prodigiously over the past half-century. Both have populations that today are about one-third Hispanic.

But they differ vividly in public policy and in their economic progress — or lack of it — over the last decade. California has gone in for big government in a big way. Democrats hold big margins in the legislature largely because affluent voters in Los Angeles and the San Francisco Bay area favor their liberal positions on cultural issues.

Those Democratic majorities have obediently done the bidding of public employee unions to the point that state government faces huge budget deficits. Gov. Arnold Schwarzenegger's attempt to reduce the power of the Democratic-union combine with referenda was defeated in 2005 when public employee unions poured $100 million — all originally extracted from taxpayers — into effective TV ads.

Californians have responded by leaving the state. From 2000 to 2009, the Census Bureau estimates, there has been a domestic outflow of 1,509,000 people from California — almost as many as the number of immigrants coming in. Population growth has not been above the national average and, for the first time in history, it appears that California will gain no House seats or electoral votes from the reapportionment following the 2010 census.

Texas is a different story. Texas has low taxes — and no state income taxes — and a much smaller government. Its legislature meets for only 90 days every two years, compared with California's year-round legislature. Its fiscal condition is sound. Public employee unions are weak or nonexistent.

But Texas seems to be delivering superior services. Its teachers are paid less than California's. But its test scores — and with a demographically similar school population — are higher. California's once fabled freeways are crumbling and crowded. Texas has built gleaming new highways in metro Houston and Dallas-Fort Worth.

In the meantime, Texas' economy has been booming. Unemployment rates have been below the national average for more than a decade, as companies small and large generate new jobs.

And Americans have been voting for Texas with their feet. From 2000 to 2009, some 848,000 people moved from other parts of the United States to Texas, about the same number as moved in from abroad. That inflow has continued in 2008-09, in which 143,000 Americans moved into Texas, more than double the number in any other state, at the same time as 98,000 were moving out of California. Texas is on the way to gain four additional House seats and electoral votes in the 2010 reapportionment.

Nevada needs charter schools



Nevada needs more charter schools (privately operated public schools), whether they are brick-and-mortar schools or cyberschools. Beyond improving student achievement, graduation rates, and the performance of traditional public schools (through competition), charter schools are much cheaper to operate.

Unfortunately, Nevada is behind the curve. Arizona has 1,750 percent more charter schools than Nevada with a population that is just 149 percent larger. Utah, a state with a similar population size, has nearly three times as many charter schools. "Progressive" California leads the nation, with over 800 charter schools - many of which have set up in California's poorest neighborhoods, providing some greatly needed educational choice.

So how can charters lower education costs in Nevada? Nevada has the nation's third-highest level of capital expenditures and debt expenditures per pupil. Yes, we have been the fastest growing state in the nation, but Arizona has been right behind us, and Arizona's capital expenditures and debt are far lower than Nevada's.

*Source: U.S. Census Bureau

It's a good bet that charter schools play a big role in keeping costs down in Arizona. You see, charter schools don't recieve bond money to build their schools. They have to take the per-pupil funds they recieve and hire staff, buy supplies and build their schools.

For example, a charter school in Clark County will recieve about $6,386 per pupil, while the Clark County School District claims its operating budget is $7,617 per pupil. This operating budget doesn't even include capital expenditures and debt repayment, which drive Clark County's expenditures to over $10,000 per pupil.

A rapid expansion of Nevada's charter-school program could literally save us hundreds of millions of dollars in the future. In fact, the difference between Arizona's and Nevada's capital expenditures in FY 2006 (the latest data available) comes to over $300 million (and that is after adjusting for Nevada's lower student population).

Of course, for this to happen, Nevada would have to repeal some very nasty, union-sponsored, anti-charter-school rules ...

Tuesday, March 9, 2010

What can we learn from Sweden?


If you have trouble viewing the video here, watch the video from the Cato Institute's YouTube site.

Frederick rips the Nevada Vision Stakeholder Group

Great column by Sherman Frederick in Sunday's RJ on the sham that is the Nevada Vision Stakeholder Group (NVSG).
It's a ploy by the tax-and-spend crowd to quantify just how crummy Nevada is as a state so that legislators with a public employee union election base can use it to as a fulcrum to raise taxes and waste more of your money.

You think I'm overstating the case? Then take a look at who legislators selected as members of the stakeholder panel. One group, representing about 5 percent of Nevadans miraculously found a way to get appointed to 47 percent of the voting positions. Can you guess what group that was?

Right you are, sir! Ding, ding, ding!

Nine of the 19 "stakeholders" are either government employees, retired government employees or public employee union executives.
Thank you, sir. May I have another?! Why, yes I can.
In the end, there will be a report. Testimony will be heard. And after every last dog and pony dies of exhaustion, the show will provide political cover for the mindless mother of all tax increases in the 2011 Legislature.
Right there — in one paragraph — is the liberals’ game plan for the next 18 months.

If you're interested in letting the Nevada Vision Stakeholder Group know your opinion, its next meeting is this Friday at 9 a.m. at the Grant Sawyer Building in Las Vegas. Or join by video conference at the Legislative Building in Carson City. The agenda is here.

And yes, I will be live-blogging it.

For more information, check out my post titled “Four problems with the Nevada Vision Stakeholder Group” or any of Geoffrey Lawrence's fine work on the NVSG:

Puppetmasters on the throne
Nevada’s future is at stake
A ‘vision’ of extortion and control
IFC to hide behind unelected stakeholders
Nevadans deserve honesty from IFC

Here are the rest of the scheduled meetings of the Nevada Vision Stakeholder Group. Like the meeting this Friday, all meetings begin at 9 a.m. at the Grant Sawyer Building and are videoconferenced to the Legislative Building in Carson City.

Meeting No. 5: March 12, 2010
Meeting No. 6: March 22, 2010
Meeting No. 7: April 6. 2010
Meeting No. 8: April 21, 2010
Meeting No. 9: May 2010 (to be determined)

Monday, March 8, 2010

Crunch time on health care

It appears we are coming down to crunch time in the fight over Obamacare. Here's Jeffrey H. Anderson at National Review's Critical Condition blog:

As the Associated Press reports, President Obama is now running a full-court press to try to get House Democrats to pass the Senate version of Obamacare within the next ten days. The president is leaving for Indonesia and Australia on March 18, and he wants the House to pass his proposed $2.5 trillion, 2,700-page overhaul of our nation's health-care system in time for him to sign it into law before he boards the plane.

The president is also imploring Americans to "Make your voice heard." Never has he given such sound advice.

The health-care debate has now come down to this: Can one man's desires prevail over those of 150,000,000 Americans (the difference between the roughly 225 million who oppose Obamacare and the roughly 75 million who support it)? Can one man — through coercion, threats, and payoffs — prove to be more persuasive to individual Democratic members of Congress than the collective voice of their constituents — expressed through calls, letters, rallies, and marches? Can one man convince Democratic members that their vote on Obamacare doesn't matter (and that they shouldn't care even if it did), or can their constituents convince them that it DOES matter (and that they better care)?

There are only five minutes left in the game. The legs are heavier, the arms wearier, the arc on the jump-shots flatter. And now it's just a question of will.
Read Anderson's full post here.

Higher education - to mislead and misdirect

*Photo by Mona Shield Payne / Special to the Sun


Last week some engineering students and professors at UNLV gathered to protest budget cuts they believed would eliminate their departments. The problem is, no one actually suggested cutting engineering.

The engineering departments were listed as the most expensive, which isn’t surprising. But no one suggested that because they were expensive they should be eliminated. The university simply allowed the media, taxpayers, professors and students to draw their own connections.

Somehow, these students and teachers ended up protesting about nothing and no one bothered to clarify that for them. One of two possibilities explains why this happened. Either the engineering students and teachers need better reading comprehension skills, or the leadership at UNLV needs to have the integrity to explain the situation with some honesty, and to stop misleading and manipulating the already-worried students.

My money is on the latter possibility.

Teacher pay in Nevada



Being a teacher isn't a half-bad job. I should know - I was a history teacher for a short time. The only problem is that you get paid based on how long you've worked, not how good you are at teaching.

Nevertheless, the estimated average salary for a teacher in Nevada is $53,547.

And don't forget about benefits.

Retirement: $10,977
Workers comp: $403
Unemployment insurance: $43
Medicare: $712
Medical Insurance $6,707
Other: $286

That brings the grand total (salary plus benefits) to $72,675 for the average teacher. It also looks like teacher pay will outpace inflation by about three percent since 2008.

Sunday, March 7, 2010

Good government isn't a right-wing issue

*The world has not turned upside down.

At least some conservatives in southern Nevada will be shocked to see that the left-of-center Las Vegas Sun editorialized in favor of reining in government salaries and benefits last week.

The Sun editorial staff wrote,


How many private employers have anything close to these pay-and-benefits packages? Many union contracts require an annual wage increase, which has become a rarity in the past few years outside of government. And although many private employers have cut their match for retirement pay because of the recession, state law requires governments to pay at least half of their employees’ contribution to the state pension fund.

The bottom line is that if the state and local governments are to get a handle on their budget problems, they will have to address the level of pay-and-benefits packages for public employees and reduce costs. Otherwise the level of needed services will decline more as government budgets will unacceptably be eroded by payroll.
While some may be surprised to read these words in the Sun, what the editorial is saying is simply common sense. Controlling government expenditures and eliminating waste shouldn't be a conservative, Republican or libertarian issue - it is an idea all Nevadans can support. Using taxpayer resources effectively allows the state to provide high-quality services at a low cost.

Saturday, March 6, 2010

Facing a budget hole: Government vs. Business

The recession has financially affected both businesses and governments in Nevada. But as a pair of articles from the Las Vegas Sun show, the two institutions are handling difficult decisions quite differently.

First, the free market forces businesses to face reality and make difficult decisions, or they'll go bankrupt.
Gaming giant Harrah’s Entertainment’s ability to steer clear of bankruptcy while carrying massive debt through the Great Recession has many people wanting to know its secret.

But when two key executives gave a Las Vegas business organization an inside look at what Harrah’s did to survive, some of the moves turned out to be surprisingly simple — time-honored formulas of hard-nosed cost-cutting and getting back to basics.

Jan Jones, Harrah’s senior vice president of communications and government relations, recalled how she tried to fight dramatic cuts to her budget in 2008 by arguing her case with CEO Gary Loveman.

“I took all my information to Gary and told him he was putting the business at a huge risk (by cutting her budget). He said to me, ‘If what it takes to save this business means that I have to close the entire corporate office, that is what I will do. These are your numbers. Make them work.’ And then he got up and he left.

“Looking back at it, I know now that it really took a leader who was saying, ‘Hey, get over it.’ ” …

Within nine months, Halkyard said Harrah’s cut $550 million in annual costs. (Emphasis added)
Government institutions, however, react in a much different way when faced with difficult decisions.
During its recent special session, the Legislature cut education funding by 6.9 percent. The higher education system’s presidents are preparing to eliminate certain programs, services and staff as a result.

Eric Sandgren, dean of the College of Engineering, said the five programs could be on the cutting board because they are some of the most expensive programs on campus.

There’s nothing we can sacrifice without damaging the university,” Sandgren said. (Emphasis added)
Now, keep in mind that the NSHE is facing a cut of less than half of the 6.9 percent number that's been reported, as Regent Ron Knecht explains.
The Legislature will be cutting only our general fund allocations, which supply 35 percent of our $1.7 billion operating budget.
(Side note: If you haven't read his entire op-ed, stop reading this and read it now. I'll still be here when you’re done.)

So UNLV is facing some tough choices (especially since it won't touch professor salaries), but these choices have to be made.

The real question is: When will anyone at UNLV or the legislature show the kind of leadership Harrah's CEO Gary Loveman showed?

Citizens are waiting for the innovations and cutbacks in government that will make the numbers work. And yes, NPRI does have a good place to begin.

Friday, March 5, 2010

Harry Reid: Good news! America only lost 36,000 jobs today

The government has just released February's unemployment numbers, so it’s time for your monthly reminder that the stimulus was and is an epic failure.

And as an added bonus, there's video below of how excited Sen. Harry Reid is that only 36,000 people lost their jobs.

The unemployment rate shows President Barack Obama's stimulus is an epic failure



For more, check out the Heritage Foundation's excellent analysis of why unemployment remains so high — it's not people losing their jobs, it's the lack of job creation.

But if out economy is losing fewer jobs this time, then why is our unemployment rate so much higher under President Obama’s stewardship of the economy? The answer: job creation. Or actually the lack thereof. Back to the BLS data: through the first six quarters of the 2001 recession 47.6 million jobs were created, while only 40.3 million jobs have been created through the second quarter of 2009. That’s a 7.9 million jobs gap. The reason our unemployment rate is so much higher now is low job creation, not high job loss. So why aren’t businesses creating jobs? Here is what entrepreneurs have been trying to tell the Obama administration:
· At one of President Obama’s many jobs summits, Fred Lampropoulos told The New York Times that businesses were uncertain about investment because “there’s such an aggressive legislative agenda that businesspeople don’t really know what they ought to do.” That uncertainty, he added, “is really what’s holding back the jobs.”
· Dan DiMicco, CEO of steelmaker Nucor Corp, told the Wall Street Journal: “Companies large and small are saying, ‘I am not going to do anything until these things — health care, climate legislation — go away or are resolved.’”
· Porta-King CEO Steve Schulte told USA Today his company is not investing because “proposals in Congress to tackle climate change and overhaul health care would raise costs.”

Entitled to disaster?

Mark Steyn has a great column in the Washington Times today regarding the degradation that results from the ever-expanding welfare state. Here's my favorite line:

The 20th century Bismarckian welfare state has run out of people to stick it to. In America, the feckless insatiable boobs in Washington, Sacramento, Albany and elsewhere are screwing over our kids and grandkids. In Europe, they've reached the next stage in social democratic evolution: There are no kids or grandkids to screw over.

Video: Greatest Rube Goldberg Machine ever?

Alternate title: How legislation is made.



(h/t The Corner)

Thursday, March 4, 2010

Chicago Tribune makes the case for school vouchers

IL State Sen. James Meeks (D)

The Chicago Tribune has a great editorial today on an education voucher proposal by Illinois state Sen. James Meeks (D) and how it would benefit students.
When state Sen. James Meeks asks fellow Democrats to give education vouchers to kids who attend some of the worst schools in Chicago, the legislators often tell him they don't want to divert dollars from public education.

Meeks' response: "If the public schools are not doing their job, why do you want to continue to reward them with money?"

Good question.

We have yet to hear a good answer.

Meeks is trying valiantly to shake up the status quo in public education, and we stand with him in that effort. He is pushing a solid plan to create a voucher program for Chicago. The Senate's executive subcommittee on education is set to discuss the bill on Wednesday.

A discussion about vouchers always gets the hackles up. It prompts charges that proponents want to abandon public schools.

So we think it's time to frame the question a little differently.

The Chicago Public Schools system isn't failing for lack of trying. The system is in the midst of an ambitious and controversial effort — Renaissance 2010 — to give new options to children in the worst schools. Sometimes, that means taking the dramatic step of closing schools and opening new ones.

This week, President Barack Obama announced a $900 million plan to reward school districts that overhaul or close failing schools and send kids to new public schools.

We're encouraged by the Chicago effort and applaud Obama's aggressive approach to school reform.

But we ask: Why not do more of this, at less cost and with a much larger universe?
Illinois isn't the only state that has public schools that are failing students. Just-released math scores in Clark County leave much to be desired.
First-semester results on the district tests for 2009-10 show 21 percent of high school students passed the Algebra 1 test while 43 percent passed the exam for Geometry.
Fortunately, the Nevada Policy Research Institute has a detailed study on a tax-credit program that would allow parents to choose schools for their children and save Nevada $1 billion in the next 10 years.

Vouchers or tax credits would each allow parents to select the best school for their child and force schools to improve in order to attract students. And the children of Illinois and Nevada all would benefit from adopting one of these reforms.

(h/t Greg Forster at Jay P Greene's blog)

Three reasons why Obama's high speed rail will go nowhere fast



From Reason TV:

President Barack Obama has pledged $8 billion in tax dollars to build a national network of high-speed rail—trains that can carry passengers at speeds in excess of 150 MPH.

But the Supertrain fantasy was a mistake back in the 1970s, when it gave rise to one of the most expensive—and rotten—TV shows in history. And it's just as much of a wreck in the 21st century for at least three reasons:

1. The lowball costs. CNN estimates that delivering on the plan could cost well over $500 billion and take decades to build, all while failing to cover much of the country at all. Internationally, only two high-speed rail lines have recouped their capital costs and all depend on huge subsidies to stay in operation.

2. The supposed benefits. "We're gonna be taking cars off of congested highways and reducing carbon emissions," says Vice President Joe Biden, an ardent rail booster. But most traffic jams are urban, not inter-city, so high-speed rail between metro areas will have no effect on your daily commute. And when construction costs are factored in, high-speed rail "may yield only marginal net greenhouse gas reductions," say UC-Berkeley researchers.

3. The delusional Amtrak example. Obama and Biden look to Amtrak as precedent, but since its founding in 1971, the nation's passenger rail system has sucked up almost $35 billion in subsidies and, says The Washington Post's Robert J. Samuelson, "a typical trip is subsidized by about $50." About 140 million Americans shlep to work every day, while Amtrak carries just 78,000 passengers. There's no reason to think that high-speed rail will pump up those numbers, though there's every reason to believe its costs will grow and grow.