In the Minnesota gubernatorial election, it seems that an almost-concluded recount will confirm that the Democratic-Farmer-Labor candidate Mark Dayton has beaten Republican Tom Emmer. By a very, very narrow margin, mind you, but still, by enough.
Why does this matter to New Jersey? Because this race decided who was to succeed Tim Pawlenty as Governor. Like Chris Christie, Pawlenty is a conservative Republican who governed a blue state. Pawlenty and Christie have pursued similar agendas -- alleging to have balanced budgets without raising taxes and catering to social conservatives. So, if history is unkind to Pawlenty's legacy in Minnesota, it may give Christie pause in pursuing the same policies as Pawlenty. Or at the very least provide Christie's detractors with some grist for their mills.
And Pawlenty leaves some pretty big issues on the table. For example, although Pawlenty claims to have balanced Minnesota's budget and to actually have a $399 million surplus, he did so in part by deferring some payments to the next 2 year budget cycle, such as K-12 education expenses. So not only does Minnesota's structural deficit remain, but overdue bills from the Pawlenty administration are driving the deficit for the next budget cycle to $6.2 billion. Which echoes Governor Christie's refusal to put aside money for public employee pensions and the State's structural Transportation Trust Fund deficit.
Interestingly enough, Dayton confirmed that, if elected, he would raise taxes on Minnesotans. Kind of like that other famous Minnesotan, Walter Mondale. But apparently, Minnesotans like hearing the truth (it was the only state to go for Mondale in his 1984 presidential campaign against Reagan). So if Pawlenty leaves office and the new Minnesota Governor starts saying that Pawlenty's policies were so much smoke and mirrors, leaving Minnesota in a worse state than before, so that tax increases are the only solution, it could be a message that resonates with moderates.
There may yet be some drama left for Minnesota as a result of this year's gubernatorial election. If Emmer challenges Dayton's win in court, Dayton may not be confirmed by January 3. In which case Pawlenty says he will stay on.
Minnesota has until January 15 to decide whether or not to accept $1.4 billion in Medicaid funds tied to the new federal health care law. If Pawlenty is governor on January 15, he will decline the money -- even though this was a big issue in the campaign and the candidate who said he would accept the money, Dayton, won. The reason Pawlenty won't accept the money is because he personally does not believe in big government and thus must decline the money -- which translates into a statement that accepting ObamaCare money will anger the tea party activists Pawlenty needs to survive the 2012 Republican presidential primaries.
So stay focused on Minnesota is you want some help reading New Jersey's political tea leaves.
Monday, December 6, 2010
Sunday, December 5, 2010
Finally, Democrats Say It Out Loud: It's About Jobs, Stupid.
I heard Senators Reid and Kerry both say, on Meet The Press, that tax cuts for the rich have not created any jobs over the past ten years, and thus it is foolish to continue to lower taxes on the rich for the purpose of creating jobs.
Says Senator Kerry, we cannot "cut" our way to competitiveness, we need to invest in our future.
Here in New Jersey, Steve Sweeney and Sheila Oliver are promoting a "Back To Work NJ" legislation program of about 30 bills. These bills include reforming business tax codes to base corporate business taxes on a company's sales in New Jersey (called "single sales factor"), eliminating a company's share of employees and physical assets in New Jersey as factors in determining a tax bill; a job training program for the unemployed which allows for up to 24 hours a week of workplace training from a potential employer for up to six weeks; and giving senior citizens whose total earnings fall under $100,000 an exemption from state income taxes on any income from a pension or deferred compensation plan.
Finally, a major political party recognizes that there is more to this debate than discussing how much to tax and how much to spend. Like the recent debt commission report, there is the understanding that strategic tax changes, strategic spending and fresh ideas are what we need. Please, can we stop having the same discussions we've been having since Reagan's first term.
I can only hope that this is the beginning of some adult conversations in the run-up to 2012.
Says Senator Kerry, we cannot "cut" our way to competitiveness, we need to invest in our future.
Here in New Jersey, Steve Sweeney and Sheila Oliver are promoting a "Back To Work NJ" legislation program of about 30 bills. These bills include reforming business tax codes to base corporate business taxes on a company's sales in New Jersey (called "single sales factor"), eliminating a company's share of employees and physical assets in New Jersey as factors in determining a tax bill; a job training program for the unemployed which allows for up to 24 hours a week of workplace training from a potential employer for up to six weeks; and giving senior citizens whose total earnings fall under $100,000 an exemption from state income taxes on any income from a pension or deferred compensation plan.
Finally, a major political party recognizes that there is more to this debate than discussing how much to tax and how much to spend. Like the recent debt commission report, there is the understanding that strategic tax changes, strategic spending and fresh ideas are what we need. Please, can we stop having the same discussions we've been having since Reagan's first term.
I can only hope that this is the beginning of some adult conversations in the run-up to 2012.
Saturday, November 27, 2010
Biting The Hand That Feeds
Hoboken has decided to join Parsippany in bringing suit to challenge the Governor's alleged right to limit superintendent pay.
At issue is local rule. Municipalities have control over their schools, not the State. And the legal challenges assert that the State lacks the authority to limit superintendent pay.
As a matter of political reality, the Governor seems to have peed in his own backyard. Rich Republican towns know that high school quality maintains property values, and these towns do not like being told that they cannot decide to hire top-notch talent for their school systems. And so it would seem that the Governor's supporters are none too pleased with this particular policy.
Since Chris Christie is first and foremost a fundraiser, it is truly unusual for him to be at odds with his financial backers.
At issue is local rule. Municipalities have control over their schools, not the State. And the legal challenges assert that the State lacks the authority to limit superintendent pay.
As a matter of political reality, the Governor seems to have peed in his own backyard. Rich Republican towns know that high school quality maintains property values, and these towns do not like being told that they cannot decide to hire top-notch talent for their school systems. And so it would seem that the Governor's supporters are none too pleased with this particular policy.
Since Chris Christie is first and foremost a fundraiser, it is truly unusual for him to be at odds with his financial backers.
The 2012 Election Begins
The Republican Presidential primary has begun. Sarah Palin and Mitt Romney are at the head of the pack. Republican Governors Mitch Daniels and Tim Pawlenty are also frequently mentioned.
And then there's Haley Barbour. In truth, Barbour's candidacy is at least one major factor influencing Chris Christie's decision not to run. As head of the Republican Governors Association, Haley Barbour funneled about $7 million into Christie's gubernatorial campaign. Since Christie has a policy of rewarding those who help him, he raised over $8 million for the RGA and will not run against Barbour.
As Republican governors, Haley and Christie have a lot in common. Both have been lobbyists and fundraisers. Under cover of the economic downturn both slashed state spending while remaining popular with voters. Both men criticize the Federal government's excessive spending while accepting Federal stimulus dollars.
And as candidates, both men promised not to raise taxes. Barbour, however, broke that pledge. He reinstated a hospital tax used to fund Medicaid and increased cigarette taxes.
So it would seem that the reception Barbour gets on the campaign trail will inform Chris Christie's decisions as governor. If Barbour is pilloried by conservatives in the primary race for raising taxes, then certainly Christie will stand firm on his pledge. But if Barbour gets a pass on his tax increases, it creates a window of opportunity here in New Jersey.
Let the games begin.
And then there's Haley Barbour. In truth, Barbour's candidacy is at least one major factor influencing Chris Christie's decision not to run. As head of the Republican Governors Association, Haley Barbour funneled about $7 million into Christie's gubernatorial campaign. Since Christie has a policy of rewarding those who help him, he raised over $8 million for the RGA and will not run against Barbour.
As Republican governors, Haley and Christie have a lot in common. Both have been lobbyists and fundraisers. Under cover of the economic downturn both slashed state spending while remaining popular with voters. Both men criticize the Federal government's excessive spending while accepting Federal stimulus dollars.
And as candidates, both men promised not to raise taxes. Barbour, however, broke that pledge. He reinstated a hospital tax used to fund Medicaid and increased cigarette taxes.
So it would seem that the reception Barbour gets on the campaign trail will inform Chris Christie's decisions as governor. If Barbour is pilloried by conservatives in the primary race for raising taxes, then certainly Christie will stand firm on his pledge. But if Barbour gets a pass on his tax increases, it creates a window of opportunity here in New Jersey.
Let the games begin.
Monday, November 15, 2010
So Much For Smaller Government
New Jersey's Casino Control Commission is an independent agency which is in, but not of, the Department of Treasury. The CCC is responsible for administering the Casino Control Act and its regulations, and for supporting the tourist and convention capabilities of Atlantic City. The 5 members of the independent CCC are appointed by the Governor and confirmed by the Senate, and no more than 3 members may be from any given political party. The CCC shares its regulatory authority with the Division of Gaming Enforcement, which is a division within the office of the Attorney General.
The Christie administration has prepared draft legislation which would limit the role of the CCC to casino licensing, and consolidate all other CCC functions within the Division of Gaming Enforcement. Thus, in large part, the CCC would join the Inspector General and the Medicaid Inspector General as independent agencies which have been brought under the control of the executive branch. Governor Christie has also proposed bringing all county prosecutors under the jurisdiction of the Attorney General and eliminating the sole remaining independent investigative agency, the State Commission of Investigations.
At what point do people start to notice that the man who campaigned for smaller government is intent on expanding the executive branch at every turn?
The Christie administration has prepared draft legislation which would limit the role of the CCC to casino licensing, and consolidate all other CCC functions within the Division of Gaming Enforcement. Thus, in large part, the CCC would join the Inspector General and the Medicaid Inspector General as independent agencies which have been brought under the control of the executive branch. Governor Christie has also proposed bringing all county prosecutors under the jurisdiction of the Attorney General and eliminating the sole remaining independent investigative agency, the State Commission of Investigations.
At what point do people start to notice that the man who campaigned for smaller government is intent on expanding the executive branch at every turn?
Monday, November 8, 2010
State Commission of Investigation in the Cross-Hairs Again.
Ted Sherman of the Star Ledger reports that "some" are suggesting that the State Commission of Investigation has outlived its time. Yes, the SCI was central in investigating organized crime, especially in Atlantic City. But that was 40 years ago, which has lead "some" (including Dem. Sen. Richard Codey) to question whether or not the SCI model is outmoded.
The reasons? The number of annual SCI reports has dropped precipitously -- from 3 to 2. This year it put out only 1. And that 1 wasn't about organized crime, it was about the State's governing body for high school athletics. And 20 staffers at SCI make more than $100,000 a year. And the Inspector General, Medicaid Inspector General and State Comptroller also investigate corruption.
Of course, the SCI is the sole investigative body in the State not under the control of the Governor. Which is why Senate Majority Leader Barbara Buono says the SCI is an absolutely necessary independent check on the executive branch. As Governor Christie plans to take control of the Atlantic City casino district, the elimination of the SCI would be ironic at best.
However, the true agenda has nothing to do with whether or not the SCI is outmoded, or duplicative. Since he was a U.S. Attorney, Chris Christie has shown a willingness to politicize the investigative powers of government. While other U.S. Attorneys serving under Alberto Gonzalez were fired for their refusal to bring political prosecutions against Democrats, Christie launched a major sting operating against Democrats in New Jersey and leaked an indictment involving Senator Roberto Menendez during the 2006 campaign.
Christie intends to draw all of the State's investigative power under his control, and then use that power to further his agenda. Attorney General Paula Dow has already said that political prosecutions are a priority for this administration, even though such cases are usually handled by the U.S Attorney's office. Already, the Christie administration has launched voter fraud investigations in Atlantic City and Essex County.
So, who are these "some" with questions? Other than Senator Codey, the only person cited by the article is Michael Herbert, the attorney for the New Jersey State Interscholastic Athletic Association -- i.e., the subject of the SCI's 1 report this year. And, BTW, that report was a doozy, highlighting the NJSIAA's profligate spending and perks.
Which strongly suggests that some of those "some" are speaking without attribution, laying the groundwork for the Governor's 2011 budget axe.
Truly, the only surprising part of this whole story is that the Christie Administration would even try to sway public opinion against the SCI before lowering the boom.
The reasons? The number of annual SCI reports has dropped precipitously -- from 3 to 2. This year it put out only 1. And that 1 wasn't about organized crime, it was about the State's governing body for high school athletics. And 20 staffers at SCI make more than $100,000 a year. And the Inspector General, Medicaid Inspector General and State Comptroller also investigate corruption.
Of course, the SCI is the sole investigative body in the State not under the control of the Governor. Which is why Senate Majority Leader Barbara Buono says the SCI is an absolutely necessary independent check on the executive branch. As Governor Christie plans to take control of the Atlantic City casino district, the elimination of the SCI would be ironic at best.
However, the true agenda has nothing to do with whether or not the SCI is outmoded, or duplicative. Since he was a U.S. Attorney, Chris Christie has shown a willingness to politicize the investigative powers of government. While other U.S. Attorneys serving under Alberto Gonzalez were fired for their refusal to bring political prosecutions against Democrats, Christie launched a major sting operating against Democrats in New Jersey and leaked an indictment involving Senator Roberto Menendez during the 2006 campaign.
Christie intends to draw all of the State's investigative power under his control, and then use that power to further his agenda. Attorney General Paula Dow has already said that political prosecutions are a priority for this administration, even though such cases are usually handled by the U.S Attorney's office. Already, the Christie administration has launched voter fraud investigations in Atlantic City and Essex County.
So, who are these "some" with questions? Other than Senator Codey, the only person cited by the article is Michael Herbert, the attorney for the New Jersey State Interscholastic Athletic Association -- i.e., the subject of the SCI's 1 report this year. And, BTW, that report was a doozy, highlighting the NJSIAA's profligate spending and perks.
Which strongly suggests that some of those "some" are speaking without attribution, laying the groundwork for the Governor's 2011 budget axe.
Truly, the only surprising part of this whole story is that the Christie Administration would even try to sway public opinion against the SCI before lowering the boom.
Friday, November 5, 2010
That's So Rude It's Unconstitutional
The Commissioner of Education traditionally addresses the NJEA convention every year. But not this year. Acting Education Commissioner Rochelle Hendricks declined to take the opportunity to address tens of thousands of teachers on the grounds that the union has shows itself unwilling to work with Governor Christie to effect reform. Hendricks says her door is open if the union wants to discuss rewarding good teachers and replacing bad teachers.
On its face, this is just silly. Somehow, an invitation to talk is evidence of a refusal to work together. Truth be told, Governor Christie wants the NJEA as a political foil and not a partner in reform; Hendricks is merely following the Governor's lead.
Says union head Barbara Keshishian: "Acting Commissioner Hendricks’ refusal to engage in a discussion with professional educators in a professional development setting is astounding. The tone of Hendrick's e-mail is consistent with prior statements from the Christie administration: filled with political rhetoric and inaccurate characterizations of NJEA."
Not only is it astounding, it may be unconsititional. The New Jersey Constitution provides, in relevant part, that "[p]ersons in public employment shall have the right to organize, present to and make known to the State, or any of its political subdivisions or agencies, their grievances and proposals through representatives of their own choosing."
In other words, the Governor and his administration have a Constitutional duty to work with the NJEA.
Truly, this is just another example of the Christie administration's willingness to ignore the law when it suits the Governor. Like the Governor's refusal to fund the public employee pension fund, even though he is legally obligated to do so. or the Governor's failure to balance the State budget (despite his claims to the contrary.)
Apparently, respect for the rule of law is no longer a conservative value.
On its face, this is just silly. Somehow, an invitation to talk is evidence of a refusal to work together. Truth be told, Governor Christie wants the NJEA as a political foil and not a partner in reform; Hendricks is merely following the Governor's lead.
Says union head Barbara Keshishian: "Acting Commissioner Hendricks’ refusal to engage in a discussion with professional educators in a professional development setting is astounding. The tone of Hendrick's e-mail is consistent with prior statements from the Christie administration: filled with political rhetoric and inaccurate characterizations of NJEA."
Not only is it astounding, it may be unconsititional. The New Jersey Constitution provides, in relevant part, that "[p]ersons in public employment shall have the right to organize, present to and make known to the State, or any of its political subdivisions or agencies, their grievances and proposals through representatives of their own choosing."
In other words, the Governor and his administration have a Constitutional duty to work with the NJEA.
Truly, this is just another example of the Christie administration's willingness to ignore the law when it suits the Governor. Like the Governor's refusal to fund the public employee pension fund, even though he is legally obligated to do so. or the Governor's failure to balance the State budget (despite his claims to the contrary.)
Apparently, respect for the rule of law is no longer a conservative value.
Monday, November 1, 2010
Team Christie Long On Public Corruption Experience
Mark Lagerkvist of New Jersey Watchdog thinks he has uncovered a scandal pertaining to Lieutenant Governor Kim Guadagno.
In September, 2008, when she was Monmouth County Sheriff, Guadagno hired Michael W. Donovan, Jr. to replace John Cerrato as Sheriff's Chief, a job which paid $87,500 a year. However, Donovan was already receiving more than $85,000 in retirement benefits from the State, and he would be required to give up that pension to become Chief.
So, Guadagno officially hired Donovan as Chief Warrant Officer. While the Sheriff's Chief oversees the day-to-day operations of the 145 officers and civilians in the Law Enforcement Division, the Chief Warrant Officer is a civilian position responsible for community relations. Donovan would be able to serve in a civilian capacity without giving up his State pension.
In fact, the Chief Warrant Officer position is so non-essential that, two weeks before hiring Donovan, Guadagno said she was eliminating the position. And this is the scandal New Jersey Watchdog is breaking.
What Lagerkvist failed to take into account is that, prior to becoming Monmouth County Sherriff, Kim Guadagno was an Assistant U.S. Attorney in the District of New Jersey. In fact, she was responsible for corruption prosecutions. So it's safe to say that Guadagno knows how to tapdance her way through legally getting the State to pay a pension to someone working for the State full-time.
Lagerkvist has, however, hit on a pattern. Not an illegal pattern, mind you, not a RICO violation, but something significant. He found Guadagno using her knowledge of political corruption law and her power as Sheriff for her own benefit. In other words, Lagerkvist found out why Guadagno is perfectly qualified to serve in the Christie administration.
For example, in addition to Guadagno, Attorney General Paula Dow was a former A.U.A. before becoming Essex County Prosecutor. In fact, from 2002-2003, Paula Dow served as counsel to District Attorney Chris Christie.
In a recent interview on New Jersey Capital Report, Dow stated that her top priorities as Attorney General will be violent crime and public corruption Says Dow, "Public corruption has got to play a key role."
Dow acknowledged that the Christie administration would be focusing on public corruption more than previous administrations. Previous administrations left public corruption investigations to the U.S. Attorney, because of the potential conflict of interest inherent when one political appointee uses the power of the State to investigate other politicians.
But, reasons Dow, since the old U.S. Attorney is now the Governor "[W]e have a big role to play" in political corruption investigations.
Dow claims the Governor played a role in the 2008 indictment of Joe Vas. Vas was a Democratic boss in Perth Amboy and Middlesex County running for re-election as Mayor of Perth Amboy. His 2008 defeat was shocking, and ultimately he was convicted.
Dow also claims that the Attorney General's office is investigating election fraud in Atlantic City (a Democratic stronghold) and Essex County (another Democratic stronghold).
So, what Lagerkvist has stumbled onto is the Governor's intention to use the investigative power of this office willing to use their political power and their expertise in political corruption to attack Democrats.
In September, 2008, when she was Monmouth County Sheriff, Guadagno hired Michael W. Donovan, Jr. to replace John Cerrato as Sheriff's Chief, a job which paid $87,500 a year. However, Donovan was already receiving more than $85,000 in retirement benefits from the State, and he would be required to give up that pension to become Chief.
So, Guadagno officially hired Donovan as Chief Warrant Officer. While the Sheriff's Chief oversees the day-to-day operations of the 145 officers and civilians in the Law Enforcement Division, the Chief Warrant Officer is a civilian position responsible for community relations. Donovan would be able to serve in a civilian capacity without giving up his State pension.
In fact, the Chief Warrant Officer position is so non-essential that, two weeks before hiring Donovan, Guadagno said she was eliminating the position. And this is the scandal New Jersey Watchdog is breaking.
What Lagerkvist failed to take into account is that, prior to becoming Monmouth County Sherriff, Kim Guadagno was an Assistant U.S. Attorney in the District of New Jersey. In fact, she was responsible for corruption prosecutions. So it's safe to say that Guadagno knows how to tapdance her way through legally getting the State to pay a pension to someone working for the State full-time.
Lagerkvist has, however, hit on a pattern. Not an illegal pattern, mind you, not a RICO violation, but something significant. He found Guadagno using her knowledge of political corruption law and her power as Sheriff for her own benefit. In other words, Lagerkvist found out why Guadagno is perfectly qualified to serve in the Christie administration.
For example, in addition to Guadagno, Attorney General Paula Dow was a former A.U.A. before becoming Essex County Prosecutor. In fact, from 2002-2003, Paula Dow served as counsel to District Attorney Chris Christie.
In a recent interview on New Jersey Capital Report, Dow stated that her top priorities as Attorney General will be violent crime and public corruption Says Dow, "Public corruption has got to play a key role."
Dow acknowledged that the Christie administration would be focusing on public corruption more than previous administrations. Previous administrations left public corruption investigations to the U.S. Attorney, because of the potential conflict of interest inherent when one political appointee uses the power of the State to investigate other politicians.
But, reasons Dow, since the old U.S. Attorney is now the Governor "[W]e have a big role to play" in political corruption investigations.
Dow claims the Governor played a role in the 2008 indictment of Joe Vas. Vas was a Democratic boss in Perth Amboy and Middlesex County running for re-election as Mayor of Perth Amboy. His 2008 defeat was shocking, and ultimately he was convicted.
Dow also claims that the Attorney General's office is investigating election fraud in Atlantic City (a Democratic stronghold) and Essex County (another Democratic stronghold).
So, what Lagerkvist has stumbled onto is the Governor's intention to use the investigative power of this office willing to use their political power and their expertise in political corruption to attack Democrats.
Chris Christie Gives Back
Chris Christie has been travelling the country supporting Republican gubernatorial candidates on his own personal "I'm not running no matter what it looks like" tour.
Here's how the Wall Street Journal describes it. The Republican Governor's Association spent $7 million to get Chris Christie elected. And now Chris Christie's advisors are letting it be known that Chris Christie has raised about $7 million for Republican governor races across the country.
And this is an essential part of the Chris Christie brand. Chris Christie rewards those who help him.
For example, many cited Christie’s appointment as a Federal prosecutor by President Bush as little more than political payback. However, Herbert Stern supported Christie’s appointment. Stern had previously held the job of U.S. Attorney for the District of New Jersey, before becoming a respected jurist and ultimately returning to private practice.
For his support, Herbert Stern’s law firm was later awarded a no-bid monitor contract by U.S. Attorney Christie, which paid $500 an hour and ultimately netted the firm over $8 million. Also, when Sam Stern, Herbert’s son, applied for a position as an Assistant U.S. Attorney in the District of New Jersey and was turned down, Christie personally intervened and Stern the younger was ultimately hired. Such intervention in personnel matters is against the regulations governing the hiring of Assistant U.S. Attorneys.
And John Ashcroft, the Attorney General when Chris Christie was appointed U.S. Attorney, was also rewarded. When Ashcroft returned to private practice, Christie appointed John Ashcroft’s firm to a Federal monitor position which paid more than $52 million over 18 months, one of the highest payouts ever to a Federal monitor.
Now, the good people at Reform Jersey Now are spending a lot of money to push forward the Christie agenda. One wonders how the good Governor will pay them back.
Here's how the Wall Street Journal describes it. The Republican Governor's Association spent $7 million to get Chris Christie elected. And now Chris Christie's advisors are letting it be known that Chris Christie has raised about $7 million for Republican governor races across the country.
And this is an essential part of the Chris Christie brand. Chris Christie rewards those who help him.
For example, many cited Christie’s appointment as a Federal prosecutor by President Bush as little more than political payback. However, Herbert Stern supported Christie’s appointment. Stern had previously held the job of U.S. Attorney for the District of New Jersey, before becoming a respected jurist and ultimately returning to private practice.
For his support, Herbert Stern’s law firm was later awarded a no-bid monitor contract by U.S. Attorney Christie, which paid $500 an hour and ultimately netted the firm over $8 million. Also, when Sam Stern, Herbert’s son, applied for a position as an Assistant U.S. Attorney in the District of New Jersey and was turned down, Christie personally intervened and Stern the younger was ultimately hired. Such intervention in personnel matters is against the regulations governing the hiring of Assistant U.S. Attorneys.
And John Ashcroft, the Attorney General when Chris Christie was appointed U.S. Attorney, was also rewarded. When Ashcroft returned to private practice, Christie appointed John Ashcroft’s firm to a Federal monitor position which paid more than $52 million over 18 months, one of the highest payouts ever to a Federal monitor.
Now, the good people at Reform Jersey Now are spending a lot of money to push forward the Christie agenda. One wonders how the good Governor will pay them back.
Monday, October 25, 2010
The Tea Party War On Publicly Funded Media
Senator Jim DeMint, Republican of South Carolina, has introduced legislation which would end taxpayer funding of the Corporation for Public Broadcasting, which operates National Public Radio and the Public Broadcasting System. The alleged impetus for this is NPR's firing of Juan Williams for his comments on The O'Reilly Factor. In so doing, DeMint joins a veritable "Who's Who" of tea party stars.
This strikes an odd parallel with Governor Christie's plan to de-fund New Jersey Network, New Jersey's public broadcaster. New Jersey Network is a public broadcast network owned by the State of New Jersey. It was originally formed because New Jersey, sandwiched between the media markets of Philadelphia and New York City, did not have any local network with Jersey-centric programming.
Christie's alleged motivations are budgetary and operational. However, it was NJN News that disclosed then U.S. Attorney Christie’s secret loan to Assiatant U.S. Attorney Michele Brown during the 2009 gubernatorial election. The fate of NJN remains to be seen.
Since I don't believe in coincidences, I have to believe that the tea party wants to escalate the Republican war on the "liberal" media be eliminating publicly funded broadcasting. Maybe they don't want anyone in the media smart enough to ask Sarah Palin embarrassing questions. Because she really CAN see Russia from her house.
This strikes an odd parallel with Governor Christie's plan to de-fund New Jersey Network, New Jersey's public broadcaster. New Jersey Network is a public broadcast network owned by the State of New Jersey. It was originally formed because New Jersey, sandwiched between the media markets of Philadelphia and New York City, did not have any local network with Jersey-centric programming.
Christie's alleged motivations are budgetary and operational. However, it was NJN News that disclosed then U.S. Attorney Christie’s secret loan to Assiatant U.S. Attorney Michele Brown during the 2009 gubernatorial election. The fate of NJN remains to be seen.
Since I don't believe in coincidences, I have to believe that the tea party wants to escalate the Republican war on the "liberal" media be eliminating publicly funded broadcasting. Maybe they don't want anyone in the media smart enough to ask Sarah Palin embarrassing questions. Because she really CAN see Russia from her house.
Wednesday, October 20, 2010
MIchelle Rhee Will Not Be Newark's Next Superintendent
OK, I admit it, I was wrong. Michelle Rhee will not be coming to Newark as the new superintendent. She may, however, become the State's new Education Commissioner -- but probably not.
The unofficial "official" story is that Rhee does not want to come to New Jersey for family reasons -- her husband, Kevin Johnson, is the mayor of Sacramento, CA. Something else is in play here, clearly, as it is nonsensical to assert that D.C. was not too far from Sacramento but Newark and Trenton are. My gut tells me that Ms. Rhee wants to be the only superstar in town, and that sharing the stage with Chris Christie and Cory Booker is not optimal in her view.
So now we wait to see who Booker and Christie tap for the highest profile superintendent gig in the nation, and who Christie gets to sit on the Commissioner hotseat formerly belonging to Bret Schundler.
UPDATE -- The Wall Street Journal reports that Ms. Rhee is engaged to the mayor of Sacramento, not married -- so my dismissal of the "family time" discussion above doesn't actually hold water. The Journal also reports that Governor Christie says he never offered Ms. Rhee a job, despite reports to the contrary in the national press.
At this point, this whole story reminds me of 6 year olds playing soccer. You know there has to be a ball in there somewhere, because everyone's kicking at something, but clearly no one has a grasp on the game.
The unofficial "official" story is that Rhee does not want to come to New Jersey for family reasons -- her husband, Kevin Johnson, is the mayor of Sacramento, CA. Something else is in play here, clearly, as it is nonsensical to assert that D.C. was not too far from Sacramento but Newark and Trenton are. My gut tells me that Ms. Rhee wants to be the only superstar in town, and that sharing the stage with Chris Christie and Cory Booker is not optimal in her view.
So now we wait to see who Booker and Christie tap for the highest profile superintendent gig in the nation, and who Christie gets to sit on the Commissioner hotseat formerly belonging to Bret Schundler.
UPDATE -- The Wall Street Journal reports that Ms. Rhee is engaged to the mayor of Sacramento, not married -- so my dismissal of the "family time" discussion above doesn't actually hold water. The Journal also reports that Governor Christie says he never offered Ms. Rhee a job, despite reports to the contrary in the national press.
At this point, this whole story reminds me of 6 year olds playing soccer. You know there has to be a ball in there somewhere, because everyone's kicking at something, but clearly no one has a grasp on the game.
Friday, October 15, 2010
The Wall Street Journal Says Liberals Killed The ARC Tunnel
According to the editorial page of the Wall Street Journal, "Chris Christie sure has a knack" for shocking the political class on behalf of taxpayers. Christie struck a blow for taxpayers by cancelling the ARC Tunnel because of cost overruns. Transportation Secretary Ray LaHood was "stunned."
States the Journal:
"The [ARC] tunnel flap is a microcosm of the crowding out of public works caused by liberal governance around the country. In New York State, bridges like the Tappan Zee over the Hudson River are in desperate need of repair . . . The 6th Street Bridge in Los Angeles needs repair and earthquake retrofitting, but Sacramento is busted."
First of all, New York had a Republican governor from 1995 to 2007, and the mayor of New York City before independent Mike Bloomberg was Rudy Giuliani. And California has had Republican governors since 1991. So how can this be a liberal phenomenon?
It's the public employee unions, of course. The public employee unions have a stranglehold on state government, and are sucking the transportation infrastructure repair money out of the states in the form of pensions and health benefits and wage increases. See, it's public employee unions against taxpayers again -- that's the underlying meaning.
Second of all, the taxpayers whose property values will rise as a result of the ARC Tunnel are not being well served by the Governor. The taxpayers who pay for road maintenance are not being well served by the Governor, who is doing nothing to get cars off of the road. The taxpayers who breathe the air are not being served, either.
Third of all, Chris Christe cancelled the ARC tunnel to pull the press out of the room where Bret Schundler was throwing the Governor under the bus. Basically, Christie panicked and killed a deal with the NJEA that he knew about because he did not like the press he was getting. Then, when he was about the get more bad press about his previous panic, Christie panicked again and prematurely pulled the plug on the ARC Tunnel. And somehow that's a model of good choices in government.
It seems Chris Christie can't pass gas without the Wall Street Journal finding the Governor refreshing.
States the Journal:
"The [ARC] tunnel flap is a microcosm of the crowding out of public works caused by liberal governance around the country. In New York State, bridges like the Tappan Zee over the Hudson River are in desperate need of repair . . . The 6th Street Bridge in Los Angeles needs repair and earthquake retrofitting, but Sacramento is busted."
First of all, New York had a Republican governor from 1995 to 2007, and the mayor of New York City before independent Mike Bloomberg was Rudy Giuliani. And California has had Republican governors since 1991. So how can this be a liberal phenomenon?
It's the public employee unions, of course. The public employee unions have a stranglehold on state government, and are sucking the transportation infrastructure repair money out of the states in the form of pensions and health benefits and wage increases. See, it's public employee unions against taxpayers again -- that's the underlying meaning.
Second of all, the taxpayers whose property values will rise as a result of the ARC Tunnel are not being well served by the Governor. The taxpayers who pay for road maintenance are not being well served by the Governor, who is doing nothing to get cars off of the road. The taxpayers who breathe the air are not being served, either.
Third of all, Chris Christe cancelled the ARC tunnel to pull the press out of the room where Bret Schundler was throwing the Governor under the bus. Basically, Christie panicked and killed a deal with the NJEA that he knew about because he did not like the press he was getting. Then, when he was about the get more bad press about his previous panic, Christie panicked again and prematurely pulled the plug on the ARC Tunnel. And somehow that's a model of good choices in government.
It seems Chris Christie can't pass gas without the Wall Street Journal finding the Governor refreshing.
Thursday, October 14, 2010
Michelle Rhee Officially Looking For A Job
As anticipated, Michelle Rhee has resigned as D.C. Chancellor of Schools. Rhee backed incumbent mayoral candidate Adrian Fenty in a Democratic primary largely seen as a referendum on Rhee's educational reforms. Fenty lost to Vincent Gray, who intends to pursue more incremental reforms than those adopted by Ms. Rhee -- e.g., no more mass teacher firings, no more mass school closures.
The Wall Street Journal editorial page cited Ms. Rhee's departure as an "Education Reform Setback," and noted the fact "[t]hat one of the nation's most talented school reformers was forced out does not bode well for students, or speak well of the man likely to become D.C.'s next mayor."
But I say, "Fear not, WSJ." Michelle Rhee is the most famous education reformer in all the land, and after Mark Zuckerberg's $100 million dollar gift to the Newark School System -- announced on the Obama-friendly Oprah Winfrey Show, no less -- Newark is the most famous school district in the world in need of reform. Surely, destiny will not keep these two apart, especially since Chris Christie and Cory Booker are ardent fans of Ms. Rhee's.
In the movie version, I want Meg Ryan to play Ms. Rhee and Tom Hanks to play Newark. And they can meet at the end of the movie on top of the Prudential Center.
The Wall Street Journal editorial page cited Ms. Rhee's departure as an "Education Reform Setback," and noted the fact "[t]hat one of the nation's most talented school reformers was forced out does not bode well for students, or speak well of the man likely to become D.C.'s next mayor."
But I say, "Fear not, WSJ." Michelle Rhee is the most famous education reformer in all the land, and after Mark Zuckerberg's $100 million dollar gift to the Newark School System -- announced on the Obama-friendly Oprah Winfrey Show, no less -- Newark is the most famous school district in the world in need of reform. Surely, destiny will not keep these two apart, especially since Chris Christie and Cory Booker are ardent fans of Ms. Rhee's.
In the movie version, I want Meg Ryan to play Ms. Rhee and Tom Hanks to play Newark. And they can meet at the end of the movie on top of the Prudential Center.
The Midtown Direct Effect
The Wall Street Journal reports that certain New Jersey communities have seen housing prices recover faster than in other communities. Houses in good condition in bedroom communities with good public schools and short commutes to Manhattan are seeing housing prices rebound. Apparently, the Wall Street recovery is fueling the housing market boomlet.
Jeffrey Otteau of Otteau Valuation Group, a New Jersey appraisal firm, says that New Jersey towns with short, direct train rides to Manhattan outperformed the rest of the State during the first half of 2010. Says Otteau, "We have seen the effects of the Manhattan rebound in the market we describe as Midtown Direct," a corridor with direct commutes to Manhattan of 35 minutes or less.
I hope someone flags this information to the Christie advisors reviewing the ARC Tunnel. That project would create a new Midtown Direct corridor and increase property values -- it would create wealth.
I also hope someone flags this information to the Governor himself the next tome he discusses pulling money out of suburban school districts to send to private, parochial and charter schools. Good public school districts add to home value -- they create wealth.
I had a lot of time to ponder this information last night during my 2.5 hour commute (normally 35 minutes. Aging Amtrak infrastructure cannot handle the volume of traffic our economy requires. Doing nothing is not an option -- either we act affirmatively to improve the infrasrtucture or we react when that infrasrtucture crumbles beneath our feet.
Jeffrey Otteau of Otteau Valuation Group, a New Jersey appraisal firm, says that New Jersey towns with short, direct train rides to Manhattan outperformed the rest of the State during the first half of 2010. Says Otteau, "We have seen the effects of the Manhattan rebound in the market we describe as Midtown Direct," a corridor with direct commutes to Manhattan of 35 minutes or less.
I hope someone flags this information to the Christie advisors reviewing the ARC Tunnel. That project would create a new Midtown Direct corridor and increase property values -- it would create wealth.
I also hope someone flags this information to the Governor himself the next tome he discusses pulling money out of suburban school districts to send to private, parochial and charter schools. Good public school districts add to home value -- they create wealth.
I had a lot of time to ponder this information last night during my 2.5 hour commute (normally 35 minutes. Aging Amtrak infrastructure cannot handle the volume of traffic our economy requires. Doing nothing is not an option -- either we act affirmatively to improve the infrasrtucture or we react when that infrasrtucture crumbles beneath our feet.
Wednesday, October 13, 2010
Where's PETA When You Need Them?
I know this is picky, but why is the Governor belittling pet sterilization?
The Governor has been saying that the legislature has been wasting its time on bills such as a pet sterilization bill rather than working on the Governor's tool kit. Speaking as someone who has taken in shelter animals and strays, there is nothing frivolous about the humane treatment of animals. And, quite frankly, I don't trust people who aren't kind to animals.
Man, this Governor has a tin ear.
The Governor has been saying that the legislature has been wasting its time on bills such as a pet sterilization bill rather than working on the Governor's tool kit. Speaking as someone who has taken in shelter animals and strays, there is nothing frivolous about the humane treatment of animals. And, quite frankly, I don't trust people who aren't kind to animals.
Man, this Governor has a tin ear.
Monday, October 11, 2010
Bret Schundler Gets To Say The Obvious
Although it came as no surprise, it is still worth noting Bret Schundler's confirmation that Chris Christie killed Schundler's deal with the NJEA, which would have brought $400 million to the State, merely because Christie did not want to make peace with the union.
And it's worth noting that the decision to provide annual cost information different from the requested information in the State's Race To The Top application was not an oversight, not a careless error, but instead a conscious decision based on a political calculation.
This information may seem lost in the noise of the ARC Tunnel collapse today, but in the future elections Chris Christie plans to run in, this information will speak loudly about how idealogues function. Future elections won't be run on the premise that there are 2 classes of people, public employees and the taxpayers who pay for them.
And it's worth noting that the decision to provide annual cost information different from the requested information in the State's Race To The Top application was not an oversight, not a careless error, but instead a conscious decision based on a political calculation.
This information may seem lost in the noise of the ARC Tunnel collapse today, but in the future elections Chris Christie plans to run in, this information will speak loudly about how idealogues function. Future elections won't be run on the premise that there are 2 classes of people, public employees and the taxpayers who pay for them.
Mr. Right or Mr. Right Now?
Congratulations to Michael Aron, senior political correspondent at NJN. With the Governor's cancellation of the ARC Tunnel project, Mr. Aron is ready to conclude that Chris Christie is making decisions with national office in mind. According to Mr. Aron, Mr. Christie wants to run in 2016 as the Republican who cancelled the largest public works project in the nation on grounds of fiscal responsibility.
Why 2016? Because the Governor has gone out of his way to make it clear that he is not running in 2012. He may be able to explain away a Vice Presidential bid in 2012, but not a presidential bid.
But here's the thing. 2016 is a political lifetime away. Hell, 2006 was the year the Democrats swept into Washington, and 2010 is the year they get swept out (although I am not convinced that Democrats will lose the House -- I will be surprised if it happens).
In 2016, the economy will be back on track, people will be back to work. And the lack of adequate public transportation infrastructure will probably be seen as a bad thing. And the ARC tunnel will not be 2 years away from completion, if it ever gets started at all. My money says that in 2016 the cancellation of the ARC Tunnel will be seen as penny wise and pound foolish, an act of political cowardice and a failure to invest in New Jersey.
Such is the fate of idealogical demagogues. They are creatures of their times, and as they build track records of accomplishments they prove themselves of limited appeal.
For example, in 2004 the top issues were terrorism and the war in Iraq; swing voters were focused on "values." In 2008, candidate's support for the war in Iraq was a big litmus test. In 2004, you weren't a viable candidate unless you supported the war; in 2008 support for the war was a detriment.
Maybe this all speaks to where Chris Christie expects New Jersey to be in 2016. Apparently, he's not planning on a robust economic recovery anytime soon; apparently, he's planning for 6 more years of recession.
Why 2016? Because the Governor has gone out of his way to make it clear that he is not running in 2012. He may be able to explain away a Vice Presidential bid in 2012, but not a presidential bid.
But here's the thing. 2016 is a political lifetime away. Hell, 2006 was the year the Democrats swept into Washington, and 2010 is the year they get swept out (although I am not convinced that Democrats will lose the House -- I will be surprised if it happens).
In 2016, the economy will be back on track, people will be back to work. And the lack of adequate public transportation infrastructure will probably be seen as a bad thing. And the ARC tunnel will not be 2 years away from completion, if it ever gets started at all. My money says that in 2016 the cancellation of the ARC Tunnel will be seen as penny wise and pound foolish, an act of political cowardice and a failure to invest in New Jersey.
Such is the fate of idealogical demagogues. They are creatures of their times, and as they build track records of accomplishments they prove themselves of limited appeal.
For example, in 2004 the top issues were terrorism and the war in Iraq; swing voters were focused on "values." In 2008, candidate's support for the war in Iraq was a big litmus test. In 2004, you weren't a viable candidate unless you supported the war; in 2008 support for the war was a detriment.
Maybe this all speaks to where Chris Christie expects New Jersey to be in 2016. Apparently, he's not planning on a robust economic recovery anytime soon; apparently, he's planning for 6 more years of recession.
Tuesday, October 5, 2010
Children Are New Jersey's Future Profit Centers
Last week the Governor announced his school reform agenda. He wants merit pay for teachers, and he wants student test scores to count for 50% of a teacher’s evaluation (as it is in Chancellor Rhee’s D.C. schools). And he wants changes in tenure, a statewide data system than tracks student achievement, a teacher evaluation task force, the ability to designate “master” teachers and alternate route certification for principals.
Merit pay and tenure reform require the legislature to act.
Money for merit pay increases would come from firing bad teachers. Says the Governor:
“Any type of compensation that allows for anything but merit – gone.”
Seniority and graduate degrees (outside of math and science) would not affect pay.
But it is the Governor’s own plan that should fail any test based on merit. It ignores every major study on the issues. For example, a study recently released by Vanderbilt University and the Economic Policy Institute shows that merit pay simply does not work. The studies showing the unreliability of the use of student test scores in teacher evaluations have been discussed on this blog previously. This is not fact-based policy, this is politics.
According to NYU professor Diane Ravitch, “One of the signature issues of business people and conservative Republicans for the past 30 years has been merit pay. They believe in competition, they believe that financial rewards can be used to incentivize better performance, so it seems natural for them to conclude that merit pay or performance pay would incentivize teachers to produce better results.” Kind of like telling your kid they get $10 for an A and $5 for a B on their report card.
The last piece of economic reform proposed by the Governor would be to allow private companies to operate charter schools. Christie also called for swift passage of the Opportunity Scholarship Act, which would provide corporate dollars as scholarships to low income students who want to attend private or parochial schools.
So, connecting the dots, here’s the Governor’s plan. First, the Governor delivers a budget that diverts more tax revenue away from suburbs and into urban school districts than ever before. Second, the Governor announces a voucher lottery where 24,000 of the kids in the districts that got all the money can apply towards private school tuition. In New Jersey, educational funds follow the student, not the school. So when a student leaves a public school and goes to a private school, the state money also leaves the public school and goes to a private school. So, in reality, the Governor is taking taxes from the suburbs and giving them to private schools.
Another piece of the Governor's plan is that corporations will provide the scholarships that allow students to use their lottery vouchers and attend private schools. In exchange, the corporations get a tax break. So now the Governor is taking corporate income taxes away from the State and giving them to private schools.
So, in the final analysis, this is classic Chris Christie. Use educational policy to reward those who support him – private business and those who favor parochial schools – and punish those who oppose him – teachers. And the inner city kids who don’t get scholarships and have to stay in even less functional schools? Collateral damage. Acceptable losses.
I guess we should be grateful that the Governor is unwilling to take these policies to their fullest potential. For example, the school voucher program could set the scholarships at 75% of the price of private school tuition, creating a market for a new student loan program.
So Junior wants to go to school? Here's his first lesson -- nothing is free. Here's his second lesson -- in order to be a productive citizen, Junior must carry debt. Yes, we must start teaching Junior that the American way of life requires borrowing to live beyond your means. America doesn't actually produce that much anymore, so the only truly reliable source of revenue for corporate American is interest income on debt. So how better to teach Junior to be patriotic than to start him accumulating debt and paying interest at the earliest possible age? Because only when the middle class is completely strapped by debt and has no choice but to work at whatever job they can get can government pursue its true purpose -- servicing corporations.
Let's say Junior doesn't have the money to start repaying his loans when they come due in the sixth grade. Well, then we create a "work-study" program. Junior will spend 10 hours a week working either for the private bank that provided his student loan or the corporation that provided his scholarship. Because we have to support the student's right to make choices with respect to his or her education.
Perhaps the company has to pay its janitors too much money because of a pesky union. No problem -- send in Junior and the rest of the sixth grade class from Our Sister of Perpetual Debt. Or, maybe one day you will be driving down the Garden State Parkway and see a sign that says "The next mile of this road is maintained by Generic Bank", and there will be Junior and the sixth grade class cleaning up the highway wearing bright orange vests that read "Another Proud Private School Student."
But even this does not go far enough. To truly squeeze the full potential out of this school voucher program, we have to think of New Jersey's children as not just our future but as our future profit centers.
We can start small, auctioning off advertising space on the lapels and ties of the new mandatory private school uniforms. Nothing garish. The kids will just look like they are playing at the Masters or at the U.S. Open.
But the real money comes from all of that glorious debt the kids are generating. The State could take all of that debt, lump it together, then carve it up into little pieces and sell it as asset-backed securities (the assets are the loans, not the actual students -- at least at first). And, of course, the State will then sell credit default swaps so that the people buying the student loan backed securities can insure themselves against student loan defaults. The State will then start a program where, if you move your company into the State, you get to pick all of the student loans that go into a given asset-backed security -- then the State will go out and sell that security while the relocating company and the State sell the security short. It's win-win!
Of course, there is an inevitable end-game. Ultimately, the churches become ever more reliant on State-sponsored vouchers and loans. Then, when the market for student-loan backed securities goes bust and companies stop providing scholarships, the churches will become insolvent. And at that point, the State will swoop in and acquire the churches in a pre-negotiated bankruptcy, achieving the ultimate Church-State which has been the dream of the religious right since the invention of birth control.
Lucky for us Chris Christie isn't this ambitious.
Merit pay and tenure reform require the legislature to act.
Money for merit pay increases would come from firing bad teachers. Says the Governor:
“Any type of compensation that allows for anything but merit – gone.”
Seniority and graduate degrees (outside of math and science) would not affect pay.
But it is the Governor’s own plan that should fail any test based on merit. It ignores every major study on the issues. For example, a study recently released by Vanderbilt University and the Economic Policy Institute shows that merit pay simply does not work. The studies showing the unreliability of the use of student test scores in teacher evaluations have been discussed on this blog previously. This is not fact-based policy, this is politics.
According to NYU professor Diane Ravitch, “One of the signature issues of business people and conservative Republicans for the past 30 years has been merit pay. They believe in competition, they believe that financial rewards can be used to incentivize better performance, so it seems natural for them to conclude that merit pay or performance pay would incentivize teachers to produce better results.” Kind of like telling your kid they get $10 for an A and $5 for a B on their report card.
The last piece of economic reform proposed by the Governor would be to allow private companies to operate charter schools. Christie also called for swift passage of the Opportunity Scholarship Act, which would provide corporate dollars as scholarships to low income students who want to attend private or parochial schools.
So, connecting the dots, here’s the Governor’s plan. First, the Governor delivers a budget that diverts more tax revenue away from suburbs and into urban school districts than ever before. Second, the Governor announces a voucher lottery where 24,000 of the kids in the districts that got all the money can apply towards private school tuition. In New Jersey, educational funds follow the student, not the school. So when a student leaves a public school and goes to a private school, the state money also leaves the public school and goes to a private school. So, in reality, the Governor is taking taxes from the suburbs and giving them to private schools.
Another piece of the Governor's plan is that corporations will provide the scholarships that allow students to use their lottery vouchers and attend private schools. In exchange, the corporations get a tax break. So now the Governor is taking corporate income taxes away from the State and giving them to private schools.
So, in the final analysis, this is classic Chris Christie. Use educational policy to reward those who support him – private business and those who favor parochial schools – and punish those who oppose him – teachers. And the inner city kids who don’t get scholarships and have to stay in even less functional schools? Collateral damage. Acceptable losses.
I guess we should be grateful that the Governor is unwilling to take these policies to their fullest potential. For example, the school voucher program could set the scholarships at 75% of the price of private school tuition, creating a market for a new student loan program.
So Junior wants to go to school? Here's his first lesson -- nothing is free. Here's his second lesson -- in order to be a productive citizen, Junior must carry debt. Yes, we must start teaching Junior that the American way of life requires borrowing to live beyond your means. America doesn't actually produce that much anymore, so the only truly reliable source of revenue for corporate American is interest income on debt. So how better to teach Junior to be patriotic than to start him accumulating debt and paying interest at the earliest possible age? Because only when the middle class is completely strapped by debt and has no choice but to work at whatever job they can get can government pursue its true purpose -- servicing corporations.
Let's say Junior doesn't have the money to start repaying his loans when they come due in the sixth grade. Well, then we create a "work-study" program. Junior will spend 10 hours a week working either for the private bank that provided his student loan or the corporation that provided his scholarship. Because we have to support the student's right to make choices with respect to his or her education.
Perhaps the company has to pay its janitors too much money because of a pesky union. No problem -- send in Junior and the rest of the sixth grade class from Our Sister of Perpetual Debt. Or, maybe one day you will be driving down the Garden State Parkway and see a sign that says "The next mile of this road is maintained by Generic Bank", and there will be Junior and the sixth grade class cleaning up the highway wearing bright orange vests that read "Another Proud Private School Student."
But even this does not go far enough. To truly squeeze the full potential out of this school voucher program, we have to think of New Jersey's children as not just our future but as our future profit centers.
We can start small, auctioning off advertising space on the lapels and ties of the new mandatory private school uniforms. Nothing garish. The kids will just look like they are playing at the Masters or at the U.S. Open.
But the real money comes from all of that glorious debt the kids are generating. The State could take all of that debt, lump it together, then carve it up into little pieces and sell it as asset-backed securities (the assets are the loans, not the actual students -- at least at first). And, of course, the State will then sell credit default swaps so that the people buying the student loan backed securities can insure themselves against student loan defaults. The State will then start a program where, if you move your company into the State, you get to pick all of the student loans that go into a given asset-backed security -- then the State will go out and sell that security while the relocating company and the State sell the security short. It's win-win!
Of course, there is an inevitable end-game. Ultimately, the churches become ever more reliant on State-sponsored vouchers and loans. Then, when the market for student-loan backed securities goes bust and companies stop providing scholarships, the churches will become insolvent. And at that point, the State will swoop in and acquire the churches in a pre-negotiated bankruptcy, achieving the ultimate Church-State which has been the dream of the religious right since the invention of birth control.
Lucky for us Chris Christie isn't this ambitious.
Wednesday, September 22, 2010
Chris Christie, Culture Warrior
It's clear -- the Wall Street Journal hearts Chris Christie. Last week, a lead editorial crowed that "New Jersey Governor Chris Christie has become the national pacesetter in state fiscal reform. . ." The Governor got his picture in the Wall Street Journal two times in one day within the past two weeks, once in connection with a lawsuit in Minnesota that had nothing to do with New Jersey (I'm sure Tim Pawlenty was none too pleased).
The focus of this love-fest is the Governor's on-going war against public employee unions, the latest salvo of which was launched a few weeks ago. The Governor unveiled a plan to reform public employee pensions by rolling back a 9% increase negotiated in 2001, eliminate cost of living adjustments for both current and future retirees, raise public employee contributions to retirement plans, make it harder to get disability benefits and lower the expected return on pension benefits from 8.25% annually to 7.5%. State workers would pay 30% of health costs, up from about 8% now, and retirees would face higher co-pays.
All of this moves State public employee health and retirement benefits closer to a private industry model, which the Wall Street Journal says is the right way to go. In fact, the Journal thinks the Governor does not go far enough, and should replace government pensions with 401(k) plans.
In an earlier op-ed, Steve Malanga of The Manhattan Institute discussed Governor Christie’s successful election campaign and the role of the NJEA. By way of reminder, the Manhattan Institute is the right-leaning think tank that issued a study showing that New Jersey’s Millionaire’s Tax caused wealthy citizens to flee the State. According to Malanga, the NJEA polled its own membership and found its members supported John Corzine by only a slight majority. Malanga posits that Christie has positioned himself on the right sife of a national anti-union culture war that has Republicans and Democrats alike distancing themselves from public employee unions.
Writes Malanga:
"Still, what we are seeing this year may mark a historic shift in American politics. If candidates around the country can repeat Mr. Christie’s strategy of winning office by taking on public unions, we could be witnessing a change akin to what happened in the late 1970s, when tax revolts in a handful of states created a nationwide momentum that eventually reflected Ronald Reagan.
The early 21st century version of tax rebellion is a head-on collision between over-burdened taxpayers and public sector unions. The many signs of union weakness suggest that after decades of expanding power, government-worker unions have met their match."
And interestingly, an article on a Minnesota court case which ran the same day as Malanga's op-ed featured a photograph of Chris Christie. The article discussed a law suit questioning whether or not Minnesota can curtail pension benefits for current retirees from state jobs. The article cited a February report from the Pew Center on the States estimates that, in the aggregate, the states face a trillion dollar gap between the pension, health care and other retirement benefits owed to public employees and the money states have set aside to pay for them. But since New Jersey is one of those states considering cuts to pension benefits for retired government workers, the outcome of the Minnesota case may impact plans in New Jersey and other states, so of course the only picture would be of Chris Christie.
So it would seem that the Wall Street Journal, now a part the Rupert Murdoch/ Fox News/ right wing echo chamber, is selling us a culture war which pits overburdened taxpayers against teachers, judges, police officer, firefighters and the like. The middle class against the middle class. And the solution is to turn state pensions over to Wall Street.
The focus of this love-fest is the Governor's on-going war against public employee unions, the latest salvo of which was launched a few weeks ago. The Governor unveiled a plan to reform public employee pensions by rolling back a 9% increase negotiated in 2001, eliminate cost of living adjustments for both current and future retirees, raise public employee contributions to retirement plans, make it harder to get disability benefits and lower the expected return on pension benefits from 8.25% annually to 7.5%. State workers would pay 30% of health costs, up from about 8% now, and retirees would face higher co-pays.
All of this moves State public employee health and retirement benefits closer to a private industry model, which the Wall Street Journal says is the right way to go. In fact, the Journal thinks the Governor does not go far enough, and should replace government pensions with 401(k) plans.
In an earlier op-ed, Steve Malanga of The Manhattan Institute discussed Governor Christie’s successful election campaign and the role of the NJEA. By way of reminder, the Manhattan Institute is the right-leaning think tank that issued a study showing that New Jersey’s Millionaire’s Tax caused wealthy citizens to flee the State. According to Malanga, the NJEA polled its own membership and found its members supported John Corzine by only a slight majority. Malanga posits that Christie has positioned himself on the right sife of a national anti-union culture war that has Republicans and Democrats alike distancing themselves from public employee unions.
Writes Malanga:
"Still, what we are seeing this year may mark a historic shift in American politics. If candidates around the country can repeat Mr. Christie’s strategy of winning office by taking on public unions, we could be witnessing a change akin to what happened in the late 1970s, when tax revolts in a handful of states created a nationwide momentum that eventually reflected Ronald Reagan.
The early 21st century version of tax rebellion is a head-on collision between over-burdened taxpayers and public sector unions. The many signs of union weakness suggest that after decades of expanding power, government-worker unions have met their match."
And interestingly, an article on a Minnesota court case which ran the same day as Malanga's op-ed featured a photograph of Chris Christie. The article discussed a law suit questioning whether or not Minnesota can curtail pension benefits for current retirees from state jobs. The article cited a February report from the Pew Center on the States estimates that, in the aggregate, the states face a trillion dollar gap between the pension, health care and other retirement benefits owed to public employees and the money states have set aside to pay for them. But since New Jersey is one of those states considering cuts to pension benefits for retired government workers, the outcome of the Minnesota case may impact plans in New Jersey and other states, so of course the only picture would be of Chris Christie.
So it would seem that the Wall Street Journal, now a part the Rupert Murdoch/ Fox News/ right wing echo chamber, is selling us a culture war which pits overburdened taxpayers against teachers, judges, police officer, firefighters and the like. The middle class against the middle class. And the solution is to turn state pensions over to Wall Street.
Sunday, September 19, 2010
Prediction: Michelle Rhee Coming To Newark
This week, the District of Columbia held a momentous Democratic mayoral primary. Incumbent Adrian Fenty lost the nomination to challenger D.C. Council Chairman Vincent Gray. As Schools Chancellor Michelle Rhee was vocal in her support of Fenty over Gray, scuttlebutt is that Ms. Rhee, widely seen as the national face of education reform, will soon be looking for a new job.
Governor Christie has publicly announced that he will be using Newark as a testing ground for his views on education reform, and that he will be replacing Clifford T. Janey as Newark Schools Superintendent. Ms. Rhee succeeded Mr. Janey as Chancellor in D.C., and my bet is that she will be succeeding him as Newark Superintendent as well.
My biggest question is whether or not Ms. Rhee will get a bigger salary than the Governor. Fortunately for both Ms. Rhee and Governor Christie, the Newark Superintendent position is exempt from the new $175,000 salary cap.
Governor Christie has publicly announced that he will be using Newark as a testing ground for his views on education reform, and that he will be replacing Clifford T. Janey as Newark Schools Superintendent. Ms. Rhee succeeded Mr. Janey as Chancellor in D.C., and my bet is that she will be succeeding him as Newark Superintendent as well.
My biggest question is whether or not Ms. Rhee will get a bigger salary than the Governor. Fortunately for both Ms. Rhee and Governor Christie, the Newark Superintendent position is exempt from the new $175,000 salary cap.
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