May 30-31, 2011
May 30 00:38 Gov. Dayton's Budget: Who Pays for the Waste? May 30 11:43 Dayton's Agenda: Killing Minnesota's Economy, Chasing Jobs to North Dakota May 30 14:23 Lori Sturdevant: Let's Ignore North Dakota, Economic Competitiveness May 30 18:35 This Isn't Serious May 30 23:54 Winner of the 'You've Gotta Be Shitting Me' Award May 31 05:13 Propagandist Alert May 31 14:26 Sen. Chamberlain Is Right May 31 16:38 Exposing the DFL's Debauchery
Prior Years: 2006 2007 2008 2009 2010
Propagandist Alert
For at least the third time since Gov. Dayton vetoed the GOP's balanced budget, the St. Cloud Times published this LTE that's long on propaganda and devoid of rational thought. These paragraphs are particularly annoying:
Certain politicians would rather keep their donors happy than request them to also pay their fair share of taxes. It is simply unfair.
A state shutdown not only affects more than 10,000 state employees, but many businesses that depend on those people being employed and spending their money at their businesses.
I wonder which "certain politicians" Ms. Hoagland is refering to. Rather than be put on the defensive, let's ask why DFL legislators have refused to reform higher ed. The MnSCU headquarters in St. Paul is particularly overbloated. The IT department employs 174 people, many of which would be considered upper or middle management if they were employed in the private sector. I'm guessing that at least 20% of IT's employees fit that description. According to the first page of this organizational chart , 2 people are employed as vice-chancellors. Four people are directors in the IT department. On the third page of the organizational chart, there are 5 directors. According to the fourth page, 9 supervisors report to two directors.
That's before talking about MnSCU's Academic and Student Affairs Department having 7 vice chancellors, 22 directors and 11 administrators amongst its 80 employees. In other words, 50% of MnSCU's Academic and Student Affairs personnel are either upper management or middle management positions. How much money is enough to finance the MnSCU office's cronyism? Why don't DFL activists complain about that type of cronyism?
All because no one can agree on a good budget that will serve all Minnesotans equally. We are a middle class family, and according to recent studies, we pay the highest percentage of our income in taxes here in Minnesota, yet we seem to have the smallest voice.
Thoughtful people have agreed on a "good budget." Gov. Dayton vetoed it because the DFL's special interest groups won't let him cut their sacred cow budgets. Why isn't Ms. Hoagland complaining about the DFL's Texas-sized ranch filled with their special interest sacred cows? Apparently, that's ok with Ms. Hoagland.
What's disappointing is that Ms. Hoagland hasn't figured out that raising taxes hurts Minnesota's ability to compete with neighboring states. Protecting sacred cow special interests limits Minnesota's ability to compete with neighbors, too.
Gov. Dayton vetoed 9 budget bills, most of which contained reforms that would've put Minnesota on the glidepath to sustainable budget surpluses. When Gov. Dayton shuts down the state while he holds us hostage for his tax increases, the simple inescapable truth will be that the legislature did their job. Another inescapable truth will be that Gov. Dayton will have vetoed a balanced budget.
Shame on Gov. Dayton for his reckless decision. Shame on Ms. Hoagland for her propagandizing.
Posted Tuesday, May 31, 2011 5:13 AM
No comments.
Gov. Dayton's Budget: Who Pays for the Waste?
There are many flaws with Gov. Dayton's budget but the thing I'm waiting to hear is an explanation for why a tax increase on productive people is needed to pay for extending a government model that's filled with wasteful spending.
This morning on @Issue With Tom Hauser, Matt Entenza and Ember Reichgott-Junge argued that Gov. Dayton's positions were likely to prevail because a) he's got the bully pulpit and b) Republicans will change their evil ways the minute the public starts criticizing them.
NEWSFLASH TO ENTENZA AND REICHGOTT-JUNGE: The public weighed in last November on this. That's why Republicans control both chambers of the legislature for the first time since senators started disclosing their political affiliations.
I've been digging into MnSCU's programs, its bureaucratic infrastructure, its campus locations and numbers. Gov. Dayton, Rep. Thissen, Sen. Bakk and Rep. Winkler insist that there isn't a ton of unjustified replication in MnSCU. The unjustified replication translates into unjustified spending in the Higher Ed budget.
When I scrutinized MnSCU, I found a substantial amount of questionable policies and expenditures. Why do we need a gazillion schools scattered throughout the state? Why do a bunch of community colleges have multiple campuses offering identical degree offerings? Why does the MnSCU HQ need the staffing levels they've currently got?
The DFL is playing its annual inane game of saying Republicans are fighting to protect "the rich" who "aren't paying their fair share" while never defining what a fair share is.
It's time to tell Minnesotans that the DFL is the defender of a) status quo policies, b) cronyism in St. Paul government and c) unjustifiable spending within the MnSCU and Higher Ed budgets and throughout the various departments.
The Republican Party of Minnesota started going on the offensive this week. It's off to a strong start, especially with the drubbing that Michael Brodkorb put on DFL Party Chair Ken Martin on Almanac Friday night. That's when Michael told the watching audience that the Republicans had a) raised spending by $4,000,000,000 for the 2012-13 biennium and b) passed the biggest budget in state history.
Spinmeisters like Rep. Thissen, Rep. Winkler and Sen. Bakk continue to call the Republicans' budget an all-cuts budget while ignoring statements made by Rep. Winkler, Sen. Cohen and Sen. Bakk that Republicans substantially increased spending after making their initial budget proposal.
Rep. Winkler chided Republicans because their budget changed from spending $32,000,000,000 early in the session to $34,000,000,000 after the February forecast. It's impossible to credibly say that Republicans haven't moved from their initial proposal, though that's what Rep. Winkler, Ms. Reichgott-Junge, Mr. Entenza and Chairman Martin are saying now.
Chairman Martin still hasn't lost his ABM touch, saying on Almanac that "Republicans started with a $34,000,000,000 budget and ended with a $34,000,000,000 budget." That's the dishonesty that ABM is famous for. Republicans started at $32,000,000,000 because the November forecast predicted a $6,200,000,000 deficit.
Let's remember the relative jubilation caused by the improvement reported in the February forecast. That's when it was announced that the deficit was 'only' $5,030,000,000.
The next step in the GOP's campaign is to start highlighting the flood of reforms that Gov. Dayton vetoed. When Gov. Dayton vetoed the GOP budget, he didn't just veto the appropriations. Gov. Dayton vetoed those important reforms when he vetoed those bills. That's unconscienable.
Let's remember that the DFL fought against downsizing government, saying that downsizing proved that the GOP hated working families. Republicans don't hate working families. They just aren't willing to give public union employees special treatment that hurts the rest of Minnesota's pocketbooks.
During her debate against Matt Entenza, Laura Brod highlighted something that can't be overemphasized, namely that it isn't possible to continue increasing spending by 15+ percent per biennium. The taxpayers won't put up with that type of raiding of their wallets.
Make no mistake about this: The DFL's claim that they're only taxing the "richest 2%" is hogwash. Their tax increase will affect workers, too. These workers will either get hit with paying a greater share of their health insurance premium, accept a lower pay increase or get told that their employer won't be offering as good a health insurance policy as before.
That's how businesses operate during struggling times.
The DFL knows that but doesn't have the guts to tell people that their tax-the-rich scheme will hurt the middle class more than it'll hurt "the rich."
The DFL apparently doesn't unnderstand that we're competing with other states, especially North Dakota. If we don't reform government and eliminate the waste from our budget and reduce taxes, there will be a serious brain drain over the next 10-15 years.
Posted Monday, May 30, 2011 12:38 AM
Comment 1 by walter hanson at 30-May-11 10:41 AM
I think we need to do a reverse LA Law negoiation. In one episode a lawyer demanded a certain settlement by noon and said it will increase by $100,000 every day.
The legislature should tell Dayton today the budget is $34 billion. Tomorrow it will be $33.9 billion and dropped by $100,000 every day. That means if Dayton doesn't deal quickly we'll be bellow $32 billion and have lots of money for a tax cut.
Walter Hanson
Minneapolis, MN
Dayton's Agenda: Killing Minnesota's Economy, Chasing Jobs to North Dakota
If competing states were to draw up a plan that chased jobs and companies from the state, the Dayton budget and Gov. Dayton vetoing key reforms would certainly be part of that plan. Let's start with Gov. Dayton's vetoing GOP reforms. A good place to start is examining Rep. Rich Murray's op-ed :
We continued to get the sense that Gov. Dayton and his staff had refused to even read the bills we'd crafted over the past few months. Lawmakers were especially disappointed that all of the common sense reforms that we worked hard to enact, provisions that would not only make government more efficient but would save Minnesota's taxpayers millions of dollars, were basically ignored.
Keith Downey's 15 by 15 legislation was criticized as proof that Republicans hated "working people." The DFL knows that that isn't even remotely close to the truth but that's their lie and they've stuck with it.
The DFL's opposition to Rep. Downey's legislation was predictable. The DFL had to oppose Rep. Downey's legislation to please their union special interest allies. If Gov. Dayton signed that into law or if DFL legislators supported that legislation, union support would evaporate. That's something that the DFL can't afford ever.
King Banaian's priority-based budgeting reform legislation was vetoed, too. King's bill would've dramatically improved Minnesota's budgeting process, both from a taxpayer standpoint and from a getting-government-spending-under-control standpoint.
King's legislation has the audacity of telling Minnesota government that they have to justify the spending that they're requesting. They're being told that autopilot budgeting is over, that the bureaucrats will be reminded at budget time that they work for Minnesotans, not vice versa.
At the beginning of the year, the Legislature began session with the goal of proposing a nearly $32 billion budget, which is what Minnesota spent during the last budget cycle. Gov. Dayton responded with a budget that spent more than $36 billion and included a multi-billion dollar tax increase to pay for it.
The Legislature later responded with a compromise move to the middle of both proposals by passing a balanced budget of $34 billion that does not raise taxes.
Gov, Dayton moved his number down to $35.8 billion and insisted the Legislature pass a $1.8 billion tax increase on Minnesotans to make his numbers work. The full House debated his proposal, and opposed it by a 73-60 margin. Despite this, the Governor is criticizing the Legislature for not compromising further and for refusing to raise taxes on Minnesotans.
During his Friday night debate with Michael Brodkorb on Almanac , DFL Chairman Ken Martin said that "Republicans started with a $34,000,000,000 budget and finished with a $34,000,000,000 budget." To put it gently, Rep. Norton's op-ed shows that the DFL chairman didn't get his details right. I'm shocked.
Gov. Dayton insists on a major tax increase. He's said that the Minnesotans he knows are "better than that", inferring that it's patriotic to pay higher tax rates. Let's highlight the fact that North Dakota is recruiting workers from Minnesota :
North Dakota's governor and commerce and tax commissioners, among other state officials, recently launched a full-scale recruiting mission in the North Star state. They are seeking engineers, electricians, IT pros, machine operators, health care experts and anyone else who wants a job, so long as they don't mind relocating.
"We are in such a wonderful position over here right now," said North Dakota Commerce Commissioner Alan Anderson. "But we have a 3.3 percent unemployment rate ...So we have to either get some more folks coming back home or get more coming across the state line to share in the opportunities."
In the Twin Cities, North Dakota officials have dined with business leaders and brought in 40 businesses to interview 350 Minnesotans at a job fair in Minneapolis. They also have tapped Minnesota's colleges and universities for hiring leads.
Look at the list of jobs that North Dakota's employers need: engineers, electricians, IT professionals, machine operators and medical experts. Those aren't low-end burger-flipping placeholder jobs. I'm certain that most of those jobs pay at least $25 per hour, with engineers and medical experts making well in excess of that.
The current DFL legislature insists that raising taxes won't hurt Minnesota's competitiveness. They're either lying or they're incredibly ignorant. In addition to the great jobs available in North Dakota, there are other things that will appeal to Minnesotans:
North Dakota's ambassadors dangle carrots, emphasizing their state's budget surplus and recent cuts the governor made to personal, corporate and property taxes.
I can't argue that the oil, natural gas and coal-mining booms haven't had a tremendous impact on North Dakota's economy. That's obvious. What's equally obvious, though, is that North Dakota's economic blueprint extends far beyond those industries.
I wrote months ago that 13 of North Dakota's 15 biggest employers are in the health care industry. That's very forward-looking. By comparison, Gov. Dayton's and the DFL's plan looks to the 1970s and 1980s for its blueprint.
It's impossible to think anything other than that North Dakota's commitment to mining is the exact opposite of Minnesota's ongoing hostility to PolyMet and its past hostility to Big Stone II power plant.
In North Dakota, they're committed to building a multi-faceted, mining- and technology-based economy. Minnesota isn't. North Dakota's legislature and governor are committed to limited government that's cut income, corporate and property taxes. Minnesota's governor isn't.
How can the DFL and Gov. Dayton say that they want to raise taxes on Minnesota's job creators when North Dakota will gladly welcome them with lower income, corporate and property taxes? Raising taxes isn't just stupid economic policy. It's economic suicide.
If Minnesota wants to see its economy dramatically shrink over the next decade, they should rally to Gov. Dayton's and the DFL's budget while rejecting the GOP's reforms. They should raise taxes on Minnesota's employers. They should remain hostile to Minnesota's mining companies while partnering with militant environmentalist organizations like MEP and the MCEA.
Maintaining Minnesota's environmental policies while raising taxes and running multi-billion deficits for the forseeable future should make North Dakota awfully appealing.
On the other hand, if Minnesota wants to become economically viable again, Minnesotans have to reject the DFL's hostility to industry, the DFL's free-spending habits and their tax-first mentality. Most importantly, they must embrace the GOP's commitment to limited, reformed government that's friendly to entrepreneurs and low taxes.
Finally, I'll just ask this: How many North Dakota residents are worried whether businesses are paying their fair share? I'm betting that North Dakotans couldn't care less about that. I'm betting that they only care that their economy is booming and their bank accounts are bulging.
Posted Monday, May 30, 2011 11:43 AM
Comment 1 by M Hanson at 30-May-11 01:36 PM
North Dakota has been looking for workers for a long time before their recent development of the oil sector. We now have more rigs operating than at virtually any time in our history.
You do have to live in those vacant northern plains. Many folks couldn't survive the winters nor the open space.
Comment 2 by M Hanson at 30-May-11 02:22 PM
Or maybe the fact Washington send ND four-five bucks for every dollar they send to Washington. Minnesota got 72 cents.
Comment 3 by eric z at 01-Jun-11 03:59 PM
If North Dakota is so attractive, why are the Republicans not leaving here for there in droves? They are market driven, aren't they?
Let them pass stupid amendments instead of legislating there, and leave here alone for the DFL you say is problematic.
If the right people leave for North Dakota, the Republicans, bless them.
Response 3.1 by Gary Gross at 01-Jun-11 05:15 PM
No thanks. We'd rather live in Minnesota but that isn't etched in stone. Besides, this isn't just about R's & D's. If Republicans leave, independents will get crucified while the DFL spends everyone, themselves included, into oblivion.
It's a shame that the DFL hasn't figured it out that if they keep spending on one supposed good cause after another, sooner rather than later, they'll run out of other people's money to spend. Gov't jobs don't create wealth. Gov't jobs just keep a specific group of people employed. Wake up & realize that that isn't how to grow prosperity. It's the way to grow deficits & shrink the economy.
Lori Sturdevant: Let's Ignore North Dakota, Economic Competitiveness
The first thing I thought after reading Lori Sturdevant's latest column is that she's as oblivious to maintaining economic competitive with our neighboring states as Gov. Dayton is. She's also willing to take MMB's projections as though they were etched in stone tablets atop Mount Sinai.
Based on this information , that's rather foolish:
The MMB spreadsheet 'reports' that the House GOP budget calls for 10% across-the-board reductions. Further, the MMB spreadsheet 'reports' that the Senate GOP budget calls for 9% across-the-board reductions. This spreadsheet isn't saying that about specific departments. It's saying that each line item is getting hit with a 10% cuts. K-12 education gets hit with a 10% cut, as does Corrections, the MPCA, the PUC, Agriculture, DEED or any other department.
Now that we've recorded Commissioner Showalter's incompetence, let's look at Ms. Sturdevant's column, starting with this:
Despite all the talk about reforming government operations to 'bend the cost curve down,' the GOP-approved budget would lead to a $1.2 billion state deficit in 2014-15.
Let's remember that this MMB said that Minnesota would sign contracts with companies to find unpaid taxes, then have those companies not find any unpaid taxes. Why on God's green earth would the state sign contracts that paid these companies whether they find additional taxes or not? Clearly, those contracts would be performance-based. If they don't find the money, they don't get paid.
That's just one example of how the MMB is corrupt. Another example is their claim that Rep. Keith Downey's 15 by 15 legislation, which would reduce Minnesota's state workforce by 15% by 2015, would actually cost, not save, money.
Here's what MMB projects the 2014-15 deficit to be if Gov. Dayton's budget is enacted:
But the GOP budget's deficit in 2014-15 is slightly larger than the $1 billion that would remain under Gov. Mark Dayton's original budget plan.
First, Gov. Dayton's original plan was scrapped minutes after the February forecast was released. Next, MMB is scoring the tax increase as though companies' and individuals' behaviors won't be affected by Gov. Dayton's tax increases or by real world factors like North Dakota telling Minnesota's workers and businesses that they've cut income, corporate and property taxes and that their budget is running a surplus because their unemployment is 3.3%.
Thinking that Minnesota's companies can't be enticed by North Dakota's low taxes, booming economy and limited government is foolish. Likewise, it's foolish to think that Minnesota's entrepreneurs won't flinch when faced with Gov. Dayton's major tax increase, Minnesota's floundering economy and the Dayton administration's hostility towards mining and energy concerns.
Everything about North Dakota tells entrepreneurs that they're open for business. Almost everything about the Dayton administration's approach says the opposite.
The Republican method involves capping government spending and issuing vouchers for the purchase of private health insurance to low-income people. That method would reduce state spending. But it does little about medical prices or the number of people needing care.
The GOP plan is strikingly similar to the Medicare Advantage plan that's coming in way under budget than regular Medicare is doing. If the DFL wants to argue that Medicare Advantage isn't positively affecting health care costs, let's have that debate.
The vetoed GOP health care spending bill cuts a big $1.6 billion from the forecasted health and human services (HHS) base for 2012-13, and would take another $1.1 billion from the forecasted base in 2014-15.
The key word in that paragraph is forecasted. The DFL made a habit of writing budget bills with outrageous budget tails that didn't have anything to do with reality.
Let's remember that the budget tails included in the last budget Gov. Pawlenty signed called for a budget of $39,000,000,000. That's a shockng budget after the 2010-11 budget spent $30,171,000,000 according to Sen. Cohen. For those keeping score at home, that represents a 22.6% increase in state spending. That's before factoring in that the HHS budget was given a substantially bigger increase than the rest of the budget.
Driving much of this debate is the DFL's insistence than any cut or any reform would destroy the finely-tuned, smooth-running machine that is Minnesota state government.
The thought that Minnesota state government is a finely-tuned, smooth-running machine isn't absurd. It's utterly laughable.
Posted Monday, May 30, 2011 2:23 PM
Comment 1 by M Hanson at 31-May-11 02:51 PM
ND is well compensated by the feds. Time to get those ag subsidys under control.
Seems like maybe those Louisianna pols should be carging royalties for drillin oil.
You gotta live in ND and once more people move in problems will follow.
This Isn't Serious
While reading the first few paragraphs of Dane Smith's op-ed , I thought he was just being sarcastic. Unfortunately, that's not the case. He's totally serious about this policy perscription:
Here's the deal: Rather than raising "taxes," we establish a major new "impact fee," a creative variation of Pawlenty's health impact fee (HIF) on cigarettes in 2005.
We could call this new revenue source the "inequality impact fee" (we could nickname it the "Iffy").
Or perhaps something that produces a friendly and lovable acronym, such as the "Saving Minnesota's Unity and Reinvestment Fee" (SMURF).
As much as I appreciate sarcasm, it's impossible for me to think that this solution has a snowball's prayer in hell of garnering serious support.
One of the things that Smith isn't factoring in is that 2005's political landscape is dramatically different than 2011's. The TEA Party didn't exist. The deficit that year was $160,000,000,000. This year's deficit will hit $1,650,000,000,000 , ten times the size of 2005.
Playing too-clever-by-half games like Mr. Smith's proposal aren't popular. We The People want to be treated like adults, not like children deserving to be there there'd.
Another feature that would sweeten the appeal would be earmarking SMURF proceeds to schools and public education, from early childhood through college and workforce development, freeing up money to help avoid the deep proposed cuts for other programs, such as health care and economic security for the aged and for low-income families.
Education arguably is not only the most popular and sacred function of state government for moderates and progressives, but it's also a clear benefit to business owners, and conservatives have vowed to hold overall education funding harmless.
Mr. Smith's attempt to persuade us that MnSCU is a fine-tuned, smooth-running machine doesn't fit with the facts. MnSCU is riddled with troubling facts, starting with poor decisionmaking, then continuing with an overbloated headquarters staff payroll, then finishing with missed opportunities caused by the poor decisionmaking by MnSCU presidents.
If Smith wants to revise his comments to say that a properly run higher ed system benefits business owners, then I'll agree with him. Until then, I couldn't disagree more forcefully.
Growing consensus exists, led by business thinkers, that our future economic health depends on better early childhood education, on more widespread higher-education completion by young adulthood, and particularly on reducing the gap in education achievement between racial groups and income groups.
This sounds identical to the stuff I heard when I was in high school. The theory then was that those who didn't get their degree were destined to earn hundreds of thousands of dollars less over their lifetime.
While it's true that people who got degrees in hard subjects like economics, business, chemistry and similar subjects, it's equally true that those whose degrees in soft subjects like Social Responsibilities, Multicultural or Women's Studies are trapped as degreed unemployables.
Until MnSCU starts eliminating the soft degrees and starts emphasizing the types of degrees that add value to Minnesota's, and the nation's, economies, people defending 'higher ed' from a generic standpoint should be ridiculed by the general population.
Rest assured that I'll consistently highlight the foolishness embedded in the MnSCU and the U of M systems. Free passes are for hallways and lectures, not for college degrees or academic decisions.
Mr. Smith should visit MnSCU headquarters, scrutinize their organizational charts and decide whether MnSCU is a help or a hindrance. The professors that I've talked with think MnSCU is either ineffective or that it's a joke.
If Mr. Smith wants higher ed to have a greater impact on Minnesota's economy, which I'd totally welcome, then it's time for both sides to work together to fix a broken system that isn't helping students, businesses or taxpayers.
It's long past time to eliminate many of the bricks and mortar higher institutes of education and replace them with online campuses. It's only a matter of time. Minnesota should be at the leading edge of both offering online degrees and eliminating bricks and mortar campuses.
Posted Monday, May 30, 2011 6:35 PM
No comments.
Winner of the 'You've Gotta Be Shitting Me' Award
I hadn't thought about giving out this award prior to this article , but if ever there's a justification for creating a 'You've gotta be shitting me award', this is it. First, it's important to hear what caused the disagreement:
"We always keep our trees trimmed back because you don't want to worry about them hanging down in the way," said Sales, a church member.
The church was fined $100 per branch cut for excessive pruning, bringing the violation to $4,000 .
"I just couldn't believe it when I heard about it," Sales said. "We trim our trees back every three years all over our property, and this is the first time we have been fined."
I was going to post a photo of these beautifully manicured trees but the newspaper was selling them for a minimum of $3.95. That's when I invoked the universally-recognized BITE ME clause. Just to prove that they're a benevolent bunch, the city of Charlotte gave the Albemarle Road Presbyterian Church this option:
The fine will be dropped if the church replaces each of the improperly pruned trees, said Tom Johnson, senior urban forester for city of Charlotte Land Development Division.
Excuse me? Charlotte has an urban forestry department? Charlotte must've properly funded the city's functions like public safety, maintaining roads and keeping the roads repaired. Charlotte must've still had money left over after all that. Otherwise, they'd never have paid for a fully staffed urban forestry department. Governments never spend money on frivolous things, right? It's not like other cities have spent $500,000 on artistic drinking fountains , right?
UPDATE: Follow this link to get the Lady Logician's take on the matter.
Posted Monday, May 30, 2011 11:54 PM
Comment 1 by Rex Newman at 31-May-11 07:09 AM
I like the remodel here at LFR, but not the new speech code, especially over at True North where it hurts the brand. And this story doesn't really rise to this level, since the people of Charlotte can solve this problem next election at the latest.
Comment 2 by eric z at 01-Jun-11 03:51 PM
Overregulation you say?
City of Ramsey passed an ordinance lowering the allowable height of grass from twelve to eight inches. Does that strike you as government wasting time? Overreaching and wasting time. The county is allowing violation of the ordinance on almost all the county highways. Bureau vs bureau, with the -crats winning.
The Ramsey guys did the grass ordinance as taking a break from wanting to bankroll an apartment developer. They are thinking of spending-bonding for a second position eight million, behind a bank's eight-figure millions.
That would put them junior in line, behind a quite large first lien position of an institutional lender - although city of Ramsey, is an "institution" in a sense.
Now they want to mutate our good taxpayers into an a high-risk low reward institutional lender.
Any thoughts about the proper role of government?
Gary, readers?
Any thoughts about restraint and fiscal prudence?
(PS - The apartment promoter had two very recent and substantial bankruptcies in North Carolina, on similar deals; and that's probably why private sector lenders are being duly conservative about this plunge into the abyss.)
Response 2.1 by Gary Gross at 01-Jun-11 05:30 PM
Eric, Ramsey's city council is weapons-grade stupid. If it isn't a public safety issue, what's the beef? I guess they're making the case that unkept lawns are dropping property values or the city's image.
I'd have to know more about the lending thing but I suspect the people are taking it in the shorts on that, too. I'll ask King to look at that.
Eric, the proper role of gov't is to do the things that their charter/constitution instructs them to do. At the city/county commissioner level, that's mostly public safety. Fixing potholes, deploying & employing firefighters, police officers, public health, education decisions fit into their mission. So does zoning, building inspections & area planning. At the state level, transportation, highway & bridge maintenance must be top priorities, transit definitely a lower priority. Setting taxation & regulation rates, too. Education funding, too.
Comment 3 by eric z at 01-Jun-11 03:54 PM
Gary - Can you give the council brain trust in Ramsey your in-state version of that award? It would mean a lot.
Comment 4 by eric z at 02-Jun-11 09:59 AM
Gary - We differ on my view of government having a redistribution dimension; protecting the poor from the wealthy and the wealthy from each other - the latter being bank regulation, securities disclosure and transparancy law, and throwing Madoff in jail and throwing away the key. Bernie did not fleece the poor, because they have no discretionary money.
Yet we agree, that the government is not to build competitive railroads, housing, or other things - although I approve of low-income housing planning and spending. But certainly not subsidizing luxury living investments. If the project has market worth, the market will carry it, without boosting or undue hindrance from the government.
And your saying the planning function ends before any actual or potential long-term co-investment in a private sector for-profit plan, if I read you correctly, is a line I would also draw.
City of Ramsey is not a bank. It does not lend cash to private parties. It is a city. It governs, as you say, within generally acceptable parameters. Public goods, such as water supply, roads, things where private sector turnpikes and water works have been problematic, that's government.
Owing utilities, such as water and sewer, or making arrangements on shared right-of-way with private ventures such as Xcel or a co-op like Connexus or the gas company or cable firms, is probably as far as mixed public-private co-involvement is justified. There is no commingling of cash and venture risk.
I believe that TVA and BPA during the last prior depression were beneficial, building infrastructure which during the Manhattan Project was utilized, etc. Whether we think it good or bad policy, (we can disagree), the fact is BPA has been privatized, and TVA probably too. The fact is all those aluminum plants using electrochemical refining along the Columbia river basin disappeared years ago is proof they were there only when there was a cheap electricity subsidy. With BPA on the grid powering nationwide, it is one more genco vendor. It is not still providing local business-risk subsidy.
On the length of lawn grass, curbing nuisance IS a government need, but it can be carried to too great an extreme to become folly. As with the tree trimming regulation about which you posted.
Comment 5 by Bob Ramsey at 02-Jun-11 02:02 PM
Gary, weapons grade stupid is, blindly accepting the words of a Socialist that is attempting to discredit a Conservative city council, by lying!
If you want the facts call me.
Bob Ramsey
Mayor of Ramsey
763-286-0171
Sen. Chamberlain Is Right
Thanks to Mitch's post about Sen. Chamberlain's email exhortation, we now have a clear picture of what's at stake with this budget. We also have the facts that the DFL haven't gotten right since the budget debate started. Here's the statistics that the DFL haven't used but that MMB has confirmed:
Some facts:
1. $30.1 billion - Mn dollars spent during 2010-2011 biennium
2. $34 billion - Our balanced budget proposal to the governor. this is the amount in the checkbook.
3. $37 billion - the governor's budget proposal
4. Revenue projected to increase by 8.5% next budget cycle
5. $400 million increase in K-12
6. Almost $600 million increase HHS spending
7. All other areas receive CUTS and reforms
Mitch makes this important observation:
The worst thing is that his budgets will continue the 'autopilot' for budget increases, with no end in sight.
Which means that in the next biennium, 'the rich' will be everyone earning over, who knows, maybe $75,000? There will be no way for revenue to keep up with spending:
I agree with Mitch's observations because that's the conclusion that simple math directs you to. In years watching the DFL in St. Paul or Democrats in DC, one inescapable truth is evident: that the gap between more and enough doesn't shrink. In fact, it seems at times that it widens.
There's another important point that's important to make. The DFL merry-go-round of raising taxes to pay for more spending is like watching a short-tailed dog chase its tail. The harder it tries, the more elusive its objective seems to be.
That translates to Minnesota's budget battles. California, Illinois, Michigan, New Jersey and New York tried the path that Gov. Dayton wants to take us down. The good news is that Michigan, New Jersey and New York decided to get off that path. The bad news for their people is that California and Illlinois haven't learned that lesson yet.
It's tragic that Gov. Dayton hasn't figured out basic economics. Especially in a recession, imposing confiscatory tax rates to close a deficit never works. How many times has California raised its tax rates? How's that worked in solving their budget crisis?
Mark Dayton wants to raise the top tax bracket by 40%. Raising the top rate from 7.85% to 10.95% represents a 39.49% increase. At a time when our neighboring states are holding tax rates steady or cutting taxes, Gov. Dayton is insisting that Minnesota implement a major tax increase. In fact, Gov. Dayton's insistence is so vehement is so steadfast that he's willing to shut the government down into 2012 :
Dayton said Tuesday that he will not 'surrender' to Republicans' demand that he cut the budget down to their level, and he was 'pessimistic' about a resolution. Republicans got the word at the private breakfast.
'He [said he] would hold out through a special session, through a shutdown, for a tax increase,' said Deputy Majority Leader Geoff Michel, R-Edina. He said Dayton told them 'he would hold out until 2012 for a tax increase: that's exactly what he said.'
Thus far, the DFL's argument has been one of fairness. They haven't talked about how raising taxes will strengthen Minnesota's economy. They've also argued that raising taxes will balance Minnesota's budget.
It's imperative that Republicans continue to fight against Gov. Dayton's tax increases and expose the truth about the DFL's policies and the DFL's lies.
Yes, I intentionally said lies. A perfect example is Ken Martin's lie last Friday night on Almanac. During a heated back-and-forth between Chairman Martin and Michael Brodkorb, Martin repeated the DFL's oft-repeated lie about the Republicans' all-cuts budget.
Michael's response was like that of a mongoose killing a cobra. He demolished Martin's lie by highlighting the fact that Sen. Cohen said in late March that the GOP budget is the biggest in state history :
SEN. COHEN: We're going to be passing a budget that it billions and billions and billions and billions of dollars and at a level that we've never done before in the history of the state. The 12-13 budget will be $34.33 billions of dollars in general fund dollars taxed to the citizens of Minnesota. The 10-11 budget two years ago was $30.171 billion, I believe.
So the difference is over $4 billion, I believe. The largest state general fund budget ever, ever, ever, in the history of the state of Minnesota.
As Michael highlighted with his reply, it's impossible to cut yourself to the biggest budget in state history. It's mathematically impossible.
Thus far, the DFL's legislative 'plan' has been to sit on their hands while complaining that the GOP's budget doesn't properly fund [fill in the blank] and it doesn't make "the rich pay their fair share."
In the final debate of the 2004 presidential election, the moderator asked Sen. Kerry how his foreign policy would be substantively different from President Bush's. He used his alloted time complaining. President Bush waited patiently for Kerry to finish his reply before nailing Sen. Kerry. President Bush said that "a laundry list of complaints isn't an agenda."
The DFL is following in Sen. Kerry's footsteps almost step-by-step. They didn't put a budget together. They refused to support Gov. Dayton's budget. Minnesota's taxpayers were sent a massive bill by the House and Senate DFL for redistricting hardware, software and personnel. Minnesota's taxpayers got ripped off because the DFL didn't even bother putting a redistricting map together even though it's part of their constitutionally mandated responsibilities.
To add to the irony on redistricting, Sen. Bakk waited until the last Saturday of the session to announce that DFL legislators wouldn't be creating a set of redistricting maps. Sen. Bakk then said that the legislature should scrap the work that the GOP had done, hold public hearings across the state, then drawing maps "that have bipartisan support" when they return in February.
The inescapable lesson from this session is that, for the most part, the DFL refused to live up to its responsibilities, whether we're talking budgets or redistricting.
Let's use Sen. Chamberlain's budget statistics, Sen. Bakk's and Sen. Cohen's statements on redistricting and the budget respectively to make the case that the DFL is the party of whining do-nothings who refuse to live in the 21st Century.
Shame on the DFL for their inaction and their ideological rigidity. Following their lead isn't just foolish. It's irresponsible and possibly dangerous.
Posted Tuesday, May 31, 2011 2:26 PM
Comment 1 by IndyJones at 01-Jun-11 04:03 PM
Actually, if Dayton chooses to shut government down then their is no reason that the budget shouldn't shrink an equal amount each month it is shut. Now that would be real progress in cutting the budget.
Exposing the DFL's Debauchery
What DFL activists did after the final Saturday of the session was despicable. What they did after the marriage amendment is described in this email:
What became unnerving was that last night as we moved closer to the vote they got louder and faster. There was one woman who screeched every time the main doors opened. Made me long for a pair of socks. It was an experience I will remember a long time. Especially seeing the backs of the state troopers--as they lined up shoulder to shoulder to keep the crowd from touching us. And the screaming, "Shame! Shame!" at us. Doesn't really go with earlier in the evening when they were singing Amazing Grace, and shouting "No Hate". Of course, they seemed to think it was perfectly loving to scream "Bigot" 10 inches from my face and spit on one of the other reps. (By the way, he has MS, walks with a cane and is a little slower. No hate, right?
I've omitted the name of the legislator because they've received tons of venomous emails. I won't add to this legislator's hate mail.
The Republican legislator in question is Rod Hamilton. As described in this email, Rep. Hamilton walks with a cane because he has MS. Because of his MS, he couldn't follow the path that the other GOP legislators took because his knees can't bend enough to take the steps. Because of his MS, Rep. Hamilton must take the elevator to go from the House Chamber to other meeting rooms on other floors.
This is disgusting and then some. Let's remember that Rep. Hamilton was the sole Republican legislator to walk that hall, that Rep. Hamilton walks with a cane and with a noticeable limp. That's the man that these DFL activists spat on.
That wasn't enough for these DFL activists. Instead, they got the other GOP legislator's face and screamed "Bigot!!! Bigot!!!"
If there's anything that's almost as despicable as DFL activists spitting on Rep. Hamilton over a policy dispute, though admittedly a deeply personal policy dispute, it's the way DFL that DFL legislators came and left the House floor.
Because of the DFL activists' noisemaking, the doors were shut to allow debate. I've learned from several other GOP legislators that DFL legislators made a habit of leaving the House Chamber by way of the closed doors. When those doors opened, which is mandated when a legislator leaves the Chamber, the DFL legislators would take their sweet time walking through the door.
I'm told that the reason why DFL legislators did that was to give the DFL's activists plenty of time to hurl invectives at GOP legislators. I'm told that this went on throughout the debate.
Let's be clear about things.
1. The DFL's activists' actions were the most vile actions of this sordid episode. Their actions will be remembered years from now as the actions of lunatics and hatemongers.
2. The DFL legislators' aiding the DFL activists' actions were despicable, too. These legislators should be criticized and rebuked on the House Floor for assisting lunatics spew their hate. There is no place in politics for the DFL's craven actions.
3. The DFL's media apologists should be ashamed for not reporting the DFL's despicable behavior.
Finally, when talk started over putting a question on the ballot on Minnesota becoming a right to work state, Gov. Dayton told rabid crowds that he wouldn't let Wisconsin come to Minnesota, refering to Gov. Scott Walker's stand against public employees' excessive pensions.
Gov. Dayton was partially right in that the right to work constitutional amendment didn't make it onto the 2012 ballot. He couldn't be further from the truth, though, in that the intimidation tactics utilized by Wisconsin's union thugs were used by the DFL gay rights activists the night of the traditional marriage debate.
In that very real sense, Wisconsin's disgusting behavior moved to Minnesota. The DFL should be very ashamed of themselves for their behavior and the behavior of their activists.
Originally posted Tuesday, May 31, 2011, revised 01-Jun 4:55 AM
Comment 1 by Representative at 31-May-11 04:54 PM
As a member of the MN Legislature and one who voted for the amendment, I too am appalled at the behavior from that night. I am still processing that night and I partially blanked out leaving the Chamber. Never have I thought I would have witnessed such disgusting behavior. Every email I get that talks about Love I want to reply saying there was no love that night.
Go to uptake and watch the video of when the debate got over. I would bet my life I saw Rep. Hayden shouting Shame. It's a quick shot but non the less....the DFL were acting mean and spiteful at their so called rally.
Comment 2 by Bill C at 01-Jun-11 09:47 AM
"The DFL should be very ashamed of themselves for their behavior and the behavior of their activists."
They should be, but they have none. I'd use the term "whores" but this is a family channel.
Comment 3 by eric z at 01-Jun-11 03:38 PM
New blog layout. Done over the weekend, or earlier?
You put that "Donate" button right at the top. Thinking like a Republican, ya sure.
It looks good, Gary, spoofing aside.
Response 3.1 by Gary Gross at 01-Jun-11 05:17 PM
Thanks Eric. I finished the main part of it Sunday night. I did some re-jiggering today. All that's left is a little tweaking & fine-tuning.
Comment 4 by Alan at 01-Jun-11 10:51 PM
It's apparent to me that the DFL and their allies HATE the idea that Minnesotans will have a chance to vote on the marriage amendment. Their darkest fear will come true . . . Minnesotan's will vote for a constitutional amendment to support marriage between one man and one woman.
Response 4.1 by Gary Gross at 02-Jun-11 12:39 AM
Alan, I think it's wrong to believe that the DFL hate putting THIS issue up for a vote. In talking with several DFL activists, I'm convinced that they view this issue as a civil rights issue.
I agree that the DFL won't hesitate in voting against the will of the people. I'll further agree that DFL legislators too often are central planning control freaks. This time, though, I think they're genuinely motivated by the belief that people shouldn't get a vote on a human rights issue.
