Nice to see Wisconsin prominently featured on the Wall of Shame resulting from 67 House Republicans who voted against giving aid to the victims of Hurriacane Sandy in the Northeast. 4 of the 5 House Republicans from Wisconsin voted against the $9 billion in aid, and the 5th, Congressman Reid Ribble, didn't vote on the measure at all, meaning WisGOP went 0 for 5 in voting to help victims of the hurricane.
It's especially sickening to see Rep. Sean (from the Real World) Duffy be one of the "no" votes, given that FEMA gave his Northern Wisconsin district nearly $13 million in flood aid last Summer after historic floods, with Duffy accompanying Gov. Walker on a tour of the flooded areas in preparation to ask for the flood aid.
But somehow the millions of people in the Northeast affected by their historic storm weren't worth the money, eh Sean? Guess he was sleeping in CCD when they taught about Jesus discussing "those who are least.". But GOPs like Sean from the Real World and other House Republicans who begged for disaster aid in the past while voting down aid for Sandy victims aren't as much about the words of Jesus as they are the words of Trent Reznor
"There is no you, there is only me."
All of us may pay their salaries, but only a few of us really matter to these sociopaths. As George Carlin said "it's a big club, and you're not in it."
Saturday, January 5, 2013
Friday, January 4, 2013
Logisticare- keep plucking that costly unaccountable chicken
Hidden in the start of the new year was the state's release of the RFP for its statewide brokerage system for Medicaid-funded transportation to non-emergency treatment and appointments (click here if you want to read the whole thing).
This is the state's second try at finding a vendor to set up the appointments to transport people on Medicaid after Atlanta-based Logisticare terminated its contract with the state this November. The move followed a slew of negative PR since Logisticare became the state's only NEMT broker July 2011 - PR so bad that Logisticare said the Wisconsin experience caused the company "irreparable damage."
This is despite the Journal-Sentinel report that was released this evening, which said DHS officials refused to step in and tell Logisticare to shape up despite the history of underperformance.
And much like what the Walker Administration has chosen to do with the corrupt and money-losing WEDC, they're going to stick with this losing system. Although the DHS does claim they've taken some steps to improve the Medicaid brokerage this time.
I'd say having an online reservation and complaint system is a good step up, as is allowing for the provider to have to pay for damages associated with screwing up, but it begs the question- Why the hell wasn't the Walker Administration demanding these sorts of things in the 18 months that Logisticare was in the business? Who's minding the store up there?
And several Democratic lawmakers have taken a look at the new Medicaid NEMT services RFP and see the same types of costly mistakes coming on the horizon. First up is State Sen. Lena Taylor, who sees an attempt to give the contract back to Logisticare at a much higher price tag, and fears much of the same gaps in services, particularly givwn that you're dealing with a poor population that is less liklely to have Internet access.
1. The RFP deadline for submitting bids is February 21, which is 5 days after Logisticare says it would end its contract. And then there's going to be time to decide who gets the bid, as well as the transition time to set up a new vendor and to get people hired up to handle the calls and contracting with the local providers. What happens in those weeks in between the end of Logisticare's contract and the new provider getting up to speed? Are these Medicaid recipients just SOL? I haven't seen any interim plan to handle this situation with the transition to a new vendor....unless the plan is to not have a new vendor and bring back Logisticare (nahh, that can't be it.)
2. Logisticare's CEO said last month that the same contract would cost around $75 million a year, nearly $40 million above the maximum they could have received under the old contract. Not surprisingly, this $40 million is not included as part of the DHS's Medicaid budget request for the upcoming budget, and that money's got to come from somewhere. So chalk that up as yet another reason that the Walker Adminstration's claims of a budget surplus is bullshit.
Much like other state privatization initiatives, keep an eye on this as the bidding process continues, particularly as mid-February's deadline for Logisticare's termination approaches. I got a feeling there are quite a few more surprises waiting to pop up. Hold onto your pocketbooks, and give your best wishes for our most vulnerable, because I fear they're going to need them due to this ongoing Logisticare fiasco.
This is the state's second try at finding a vendor to set up the appointments to transport people on Medicaid after Atlanta-based Logisticare terminated its contract with the state this November. The move followed a slew of negative PR since Logisticare became the state's only NEMT broker July 2011 - PR so bad that Logisticare said the Wisconsin experience caused the company "irreparable damage."
This is despite the Journal-Sentinel report that was released this evening, which said DHS officials refused to step in and tell Logisticare to shape up despite the history of underperformance.
Over the past four months, LogistiCare has received more than 7,000 valid complaints about rides not showing up or arriving late to take Medicaid patients to dialysis, cancer treatment and other medical appointments.In other words, the DHS felt it couldn't crack down on Logisticare and pull its funding because it believed that doing so would cause Logisticare to stop trying altogether, and leave even more Wisconsinites out in the cold. So the state was stuck between overpaying for bad service, or cutting costs and get even worse service. Tell me how that made us better off than the delgated, county-by-county Medicaid NEMT service we had in the past?
Hold times on LogistiCare's hotlines have exceeded the time allowed under the company's state contract more than 60% of the time.
Yet, state officials didn't assess any penalties, partly out of consideration for LogistiCare's bottom line and partly for fear that service would get worse, an official said Friday.
LogistiCare's two contracts generally give the state the right to withhold or deduct money if the company didn't live up to the terms of the contract.
The company has terminated its contracts with the state, effective Feb. 16. The firm says it was losing money on the deal.
"The department's principal focus is the long-term viability of having a nonemergency medical transportation manager," Department of Health Services spokeswoman Claire Smith said in an email. "As LogistiCare indicated in its termination letters, the two contracts currently in place were not financially viable and the company was continually operating at a loss by serving as the manager and providing those services. We monitored both performance and financial aspects of the contracts closely and were ultimately concerned that financial sanctions would result in further decline in quality of service."
And much like what the Walker Administration has chosen to do with the corrupt and money-losing WEDC, they're going to stick with this losing system. Although the DHS does claim they've taken some steps to improve the Medicaid brokerage this time.
Changes to the RFP made based on feedback and suggestions include:
•A requirement that members and providers are able to create reservations online;
•A requirement that members have the ability to submit complaints online;
•A clarification and implementation of member appeals and fair hearing process; and
•Establish liquidated damages for issues such as:◦Failure to provide transportation;
◦Transportation providers arriving late;
◦Transportation providers use of vehicles that do not meet established vehicle standards;
◦Transportation providers failure to transport members to dialysis and cancer treatments and
getting members there on time; and
◦Ensure call hold times are in compliance.
I'd say having an online reservation and complaint system is a good step up, as is allowing for the provider to have to pay for damages associated with screwing up, but it begs the question- Why the hell wasn't the Walker Administration demanding these sorts of things in the 18 months that Logisticare was in the business? Who's minding the store up there?
And several Democratic lawmakers have taken a look at the new Medicaid NEMT services RFP and see the same types of costly mistakes coming on the horizon. First up is State Sen. Lena Taylor, who sees an attempt to give the contract back to Logisticare at a much higher price tag, and fears much of the same gaps in services, particularly givwn that you're dealing with a poor population that is less liklely to have Internet access.
Citizens in Wisconsin rejoiced when the announcement came that LogistiCare was ending its contract with the State. Today those same citizens should cry. I have rarely seen such a blatant effort by the state to provide a contract back to the same company that has so woefully failed at the job.Four of Taylor's fellow Dems from all corners of the state also jumped on the flaws they saw in the RFP with a release this afternoon, particularly the fact that the NEMT provider and DHS aren't going to be kept in line.
This RFP allows the department to accept service that is worse than they are getting with LogistiCare, there is zero effective oversight over this massive contract to make sure state tax money is well spent and accounted for, and there is absolutely no automatic penalties for the company failing to meet quotas.” Sure sounds like WEDC, doesn't it?
While the addition of a mandatory on-line reservation system is helpful, this new RFP ignores the fact that low-income communities rarely have enough access to web resources to use this function. Instead the poor in Milwaukee get sent back to the phone where the state will now allow the company to keep citizens on hold for longer!”
This RFP smells as bad as the place it belongs. Gov. Walker should pull it back and start over.
The legislators agree that although the new RFP includes increased penalties for missed rides and a clearer appeals process, the RFP does not address some of the biggest concerns brought to their attention by those who rely on these services to get to medical appointments. The RFP fails to create an independent complaint process, leaves enforcement up to the Department, and establishes little to no legislative oversight. In addition, the RFP prohibits Wisconsin-based entities from bidding on the contract. I'm not sure Wisconsin companies are prohibited, but the RFP asks the bidder to show it can handle a statewide NEMT system, and obviously no such company exists inside the side since no state company has ever had this contract.Especially with the sketchy Dennis Smith in charge, that does seem to be a legit concern, Rep. Schaber. And I have a couple of other ones.
Since implementation of the Non-Emergency Medical Transportation program, there have been serious problems with the program’s reliability, performance, and finances. In November 2012, LogistiCare abruptly canceled their contract with the Department of Health Services (DHS). The new RFP was issued earlier this week.
“The first contracts allowed DHS to fine the contractor or terminate the contract if the company was not living up to their end of the bargain,” said Rep. [Penny] Bernard Schaber. “If the Department didn’t enforce the protections in the current contract, I am very skeptical that a new contract with some increased protections will make much difference unless DHS does its job of enforcing it.”
1. The RFP deadline for submitting bids is February 21, which is 5 days after Logisticare says it would end its contract. And then there's going to be time to decide who gets the bid, as well as the transition time to set up a new vendor and to get people hired up to handle the calls and contracting with the local providers. What happens in those weeks in between the end of Logisticare's contract and the new provider getting up to speed? Are these Medicaid recipients just SOL? I haven't seen any interim plan to handle this situation with the transition to a new vendor....unless the plan is to not have a new vendor and bring back Logisticare (nahh, that can't be it.)
2. Logisticare's CEO said last month that the same contract would cost around $75 million a year, nearly $40 million above the maximum they could have received under the old contract. Not surprisingly, this $40 million is not included as part of the DHS's Medicaid budget request for the upcoming budget, and that money's got to come from somewhere. So chalk that up as yet another reason that the Walker Adminstration's claims of a budget surplus is bullshit.
Much like other state privatization initiatives, keep an eye on this as the bidding process continues, particularly as mid-February's deadline for Logisticare's termination approaches. I got a feeling there are quite a few more surprises waiting to pop up. Hold onto your pocketbooks, and give your best wishes for our most vulnerable, because I fear they're going to need them due to this ongoing Logisticare fiasco.
Wednesday, January 2, 2013
Now, thoughts from the other side of the cliff
I'm not overjoyed with the deal that was hurried through Congress while we were ringing in 2013, but I'll give it a lukewarm "OK." Getting capital gains and dividends slightly higher is a start, as is raising taxes on the Super-rich. I'm even OK with the payroll tax increase, as it'll shore up Social Security, and including a one-year extension of the Farm Bill keeps food prices from going nuts in a few months- both definitely help the everyday person. But I think more could have been done on the loophole side and made the tax code more progressive, and I'm definitely worried about the looming budget cuts and debt ceiling fight that'll hit in March.
I wanted to go back to the CBO's discussion of the fiscal cliff and the effects on the economy, and compare it to where we stand today after this week's votes.
If you remember, the CBO report said if all aspects of the fiscal cliff hit, and were not modified throughout the year, the deficit would be cut by about 40% to $641 billion, but the economy would fall into recession and unemployment would go up to 9.1%. It would also make it likely the U.S. would fall into the cut-recession-deficit-cut-recession-deficit cycle that is currently grinding much of the Eurozone to a halt. Fortunately, it doesn't look like we're heading that way (barring a massive cut in spending).
So let's look at where we ended up instead, and let's use the CBO's scoring for both deficit and GDP for these measures.
The CBO says this deal would add nearly $330 billion to the deficit for 2013, with the split being about $280 billion in tax cuts, and $50 billion in increased spending (mostly through $22 billion in extended unemployment benefits, $10 billion in Medicare payments to doctors, and a 2-month delay in the sequester). It probably means the deficit may get below $1 trillion for next year, but not by that much.
On the flip side, the deal works when it comes to keep the economy going. I'd mentioned before that the CBO report showed lowering taxes on the rich had the smallest bang-for-the-buck when it came to increasing GDP, and that passage also gives you an idea what effect these tax measures may have.
So put those two items together, and you'd have GDP increased by about 1.55%, and the lack of the sequester for 1/6 of the year and a year of "doc fix" conservatively gives you another 0.25% of GDP. So let's figure about 1.8% of increased GDP over the "totally over the cliff" scenario (which was -0.5% GDP for 2013), and the baseline results for 2013 become:
GDP +1.3%, deficit just under $1 trillion
Basically it would continue where we're at- slow but sure growth, and slow but sure cuts into the deficit. Probably not enough to really get things back into balance, but something we could live through. And the extra progressivity in the tax code could lead to more GDP and profit growth going to middle and lower-income workers, much as it did in the '90s, and much as it hasn't done since the tax cuts for the rich were put in for 2001.
So I'll take this deal for the time being, but I certainly hope it is followed by standing up to the GOPs who will be for March, when the debt ceiling and the automatic budget cuts will have to be dealt with. You know they'll have their eyes on Social Security (even though it's now firmed up with the end of the payroll tax cut) and will try to mess with the Medicare age and level of benefits to our most vulnerable. And hearing President Obama last night erroneously calling the rising cost of Medicare "our biggest contributor to our deficit" set off major red flags to me. Health care costs aren't adding to our deficit- it's the damage from the recession, underemployment, low wages, and historically low tax revenues that don't even reach 17% of GDP.
I'm glad that we took a step toward solving that low-revenue problem by taxing the rich and their capital gains more, and the continued growth should also add to those revenue figures. But there are many other places we can cut or modify that doesn't screw over millions of people who have worked hard,paid into the system and rely on that aid to survive. We can take our small victory for January, but also we should gird for the bigger fight that's coming.
I wanted to go back to the CBO's discussion of the fiscal cliff and the effects on the economy, and compare it to where we stand today after this week's votes.
If you remember, the CBO report said if all aspects of the fiscal cliff hit, and were not modified throughout the year, the deficit would be cut by about 40% to $641 billion, but the economy would fall into recession and unemployment would go up to 9.1%. It would also make it likely the U.S. would fall into the cut-recession-deficit-cut-recession-deficit cycle that is currently grinding much of the Eurozone to a halt. Fortunately, it doesn't look like we're heading that way (barring a massive cut in spending).
So let's look at where we ended up instead, and let's use the CBO's scoring for both deficit and GDP for these measures.
The CBO says this deal would add nearly $330 billion to the deficit for 2013, with the split being about $280 billion in tax cuts, and $50 billion in increased spending (mostly through $22 billion in extended unemployment benefits, $10 billion in Medicare payments to doctors, and a 2-month delay in the sequester). It probably means the deficit may get below $1 trillion for next year, but not by that much.
On the flip side, the deal works when it comes to keep the economy going. I'd mentioned before that the CBO report showed lowering taxes on the rich had the smallest bang-for-the-buck when it came to increasing GDP, and that passage also gives you an idea what effect these tax measures may have.
Extending all expiring tax provisions other than the cut in the payroll tax and indexing the AMT for inflation—except for allowing the expiration of lower tax rates on income above $250,000 for couples and $200,000 for single taxpayers—would boost real GDP by about 1¼ percent by the end of 2013. That effect is nearly as large as the effect of making all of those changes in law and extending the lower tax rates on higher incomes as well (which CBO estimates to be a little less than 1½ percent, as noted above), primarily because the budgetary impact would be nearly as large (and secondarily because the extension of lower tax rates on higher incomes would have a relatively small effect on output per dollar of budgetary cost).So given the $400,000 single/ $450,000 married couple threshhold, we'll put that number in between at 1.35% or so. That same report also gave good marks to the extension of unemployment benefits as a stimulus policy, along with the Social Security cuts (which were not continued).
The estimated economic impact of those policies per dllar of budgetary cost is larger than that of extending other expiring tax provisions and indexing the AMT for inflation because a larger share of the additional unemployment benefits and extended payroll tax cut would be spent by the recipients in 2013. As a result, the short-run increase in aggregate demand and output would be greater.The unemployment benefits are expected to cost $22 billion this year, and $31 billion if moved into 2014, but a rough estimate also has it increasing GDP by about 0.2% this year.
So put those two items together, and you'd have GDP increased by about 1.55%, and the lack of the sequester for 1/6 of the year and a year of "doc fix" conservatively gives you another 0.25% of GDP. So let's figure about 1.8% of increased GDP over the "totally over the cliff" scenario (which was -0.5% GDP for 2013), and the baseline results for 2013 become:
GDP +1.3%, deficit just under $1 trillion
Basically it would continue where we're at- slow but sure growth, and slow but sure cuts into the deficit. Probably not enough to really get things back into balance, but something we could live through. And the extra progressivity in the tax code could lead to more GDP and profit growth going to middle and lower-income workers, much as it did in the '90s, and much as it hasn't done since the tax cuts for the rich were put in for 2001.
So I'll take this deal for the time being, but I certainly hope it is followed by standing up to the GOPs who will be for March, when the debt ceiling and the automatic budget cuts will have to be dealt with. You know they'll have their eyes on Social Security (even though it's now firmed up with the end of the payroll tax cut) and will try to mess with the Medicare age and level of benefits to our most vulnerable. And hearing President Obama last night erroneously calling the rising cost of Medicare "our biggest contributor to our deficit" set off major red flags to me. Health care costs aren't adding to our deficit- it's the damage from the recession, underemployment, low wages, and historically low tax revenues that don't even reach 17% of GDP.
I'm glad that we took a step toward solving that low-revenue problem by taxing the rich and their capital gains more, and the continued growth should also add to those revenue figures. But there are many other places we can cut or modify that doesn't screw over millions of people who have worked hard,paid into the system and rely on that aid to survive. We can take our small victory for January, but also we should gird for the bigger fight that's coming.
Monday, December 31, 2012
See you on the other side of the cliff
Well, this'll wrap it up for 2012 here at the Funhouse. Yes, I'm aware there's some work to be done over in D.C, but from what I can tell, we won't see any real action on this before the new Congress comes in on Thursday. This is fine with me, as a lot of the members of the lame-ass current Congress are either gone or will have new constituencies due to redistricting, so why have these people make decisions when they won't have to face the voters for the consequences of their actions? Plus, any moves made in January can be made retroactive to January 1, and if played right, could be given out as a tax rebate check that people can see and will spend.
I really haven't changed my mind on the way I think this should be resolved. I'll forward to you the CBO report that was released going over the various parts of the fiscal changes, which not only shows the effects on the deficit, but (more importantly to me) shows the changes in GDP that would happen as a result of all these measures. And those figures estimated the drop in 2013's GDP that would result from keeping the tax cuts on the rich vs. getting rid of them to be all of 0.1%. Add to the fact that the lowering of tax rates for the rich has led to stangnant wages for most Americans, larger amounts of inequality, and profit-hoarding, and letting these taxes go up is a no-brainer to me.
I'm even a bit perturbed at the possibility that the Dems and Obama may allow the tax cuts to stay for the $250K-$450K wage group, although if they raise cap gains and dividends and don't touch Social Security and Medicare benefits, I'd live with that compromise. It'd be even better if they kept the 4.2% Social Security tax rate, but extended it to every dollar instead of capping it at $113,000 or so, (the current system is really a back-door tax cut for the upper incomes that most of us don't get, and getting rid of it would make Social Security be fully funded). But failing that, I'd live with going back to 6.2% if it keeps Social Security on the level for the next generation (which it would).
Otherwise, I basically said what I needed to say in detail last month, and I'm sticking with it. Keeping the economy growing still needs to be our priority, and doing so will reduce the deficit every bit as much as cutting spending on needed domestic programs and keeping our safety nets and economic security in place. And it would prevent us from falling into a constant austerity cycle that continues to plague Europe, resulting in the Eurozone falling back into recession with record un-employment. This recession was brought on by deficit-based budget cuts, which led to slower growth, which led to more deficits and cuts, and basically everyone gets screwed except the lucky few who have the right connections to the people in power.
Because I don't see us falling into the austerity-cycle trap, I'm not fearing the fiscal issues in early 2013- and I'm fairly certain something will get passed before the damage gets too great (though it'll be fun to see CNBC and co. freak in the next few weeks as their gravy train ends). And if the Dems play tough and expose the GOP as the clueless fiscal fools they reall are, it could set the stage for "Wipeout 2014," which could make 2006's wave look small.
See you on the other side of the cliff in 2013. I'm off to prepare for the festivities to kiss this year good-bye.
I really haven't changed my mind on the way I think this should be resolved. I'll forward to you the CBO report that was released going over the various parts of the fiscal changes, which not only shows the effects on the deficit, but (more importantly to me) shows the changes in GDP that would happen as a result of all these measures. And those figures estimated the drop in 2013's GDP that would result from keeping the tax cuts on the rich vs. getting rid of them to be all of 0.1%. Add to the fact that the lowering of tax rates for the rich has led to stangnant wages for most Americans, larger amounts of inequality, and profit-hoarding, and letting these taxes go up is a no-brainer to me.
I'm even a bit perturbed at the possibility that the Dems and Obama may allow the tax cuts to stay for the $250K-$450K wage group, although if they raise cap gains and dividends and don't touch Social Security and Medicare benefits, I'd live with that compromise. It'd be even better if they kept the 4.2% Social Security tax rate, but extended it to every dollar instead of capping it at $113,000 or so, (the current system is really a back-door tax cut for the upper incomes that most of us don't get, and getting rid of it would make Social Security be fully funded). But failing that, I'd live with going back to 6.2% if it keeps Social Security on the level for the next generation (which it would).
Otherwise, I basically said what I needed to say in detail last month, and I'm sticking with it. Keeping the economy growing still needs to be our priority, and doing so will reduce the deficit every bit as much as cutting spending on needed domestic programs and keeping our safety nets and economic security in place. And it would prevent us from falling into a constant austerity cycle that continues to plague Europe, resulting in the Eurozone falling back into recession with record un-employment. This recession was brought on by deficit-based budget cuts, which led to slower growth, which led to more deficits and cuts, and basically everyone gets screwed except the lucky few who have the right connections to the people in power.
Because I don't see us falling into the austerity-cycle trap, I'm not fearing the fiscal issues in early 2013- and I'm fairly certain something will get passed before the damage gets too great (though it'll be fun to see CNBC and co. freak in the next few weeks as their gravy train ends). And if the Dems play tough and expose the GOP as the clueless fiscal fools they reall are, it could set the stage for "Wipeout 2014," which could make 2006's wave look small.
See you on the other side of the cliff in 2013. I'm off to prepare for the festivities to kiss this year good-bye.
Hoosiers show Wisconsin the way...down
As a former resident of the state of Indiana, I still keep tabs on how that place is doing. It was part of the reason I didn't want to miss yesterday's amazing tribute to Colts coach Chuck Pagano as he returned to the sidelines after being treated for cancer, and the Colts then hammering the Texans and knocking J.J. Watt and company out of home-field advantage for the playoffs.
But it also gives me a bit of insight on the policies of one of Scott Walker's political idols- Mitch Daniels (you can read the J-S's 2011 profile of Mitch and his influence on Walker here). Mitch is leaving the governorship of Indiana this week after serving two terms, and this story in the Indianapolis Star is a good indication of what'll happen if we allow the age of Fitzwalkerstan to continue.
It doesn't take long for you to see who benefitted from Mitch's 8 years in office- and it wasn't most Hoosiers.
And oh yeah, Scott Walker designed the money-wasting and corrupt WEDC on Daniels' IEDC. Well before we knew just how screwed-up WEDC was and still is, I was pointing out the problems and corruption at IEDC. This included inflated jobs numbers, numerous failed ventures, the unaccountable handing out of tax credits to bankrupt companies, and bullying local governments who were skeptical of these companies following through on their promises.
And 7 years after creating IEDC, Mitch Daniels' pet project still wasn't working, as even his own party was demanding more controls over it. Check out this article from last week.
The bottom line here is this. If you think Mitch Daniels' Confederate-style legacy of corporate cronyism, lower incomes, higher poverty and lower service levels is what Wisconsin should shoot for, then by all means, let's continue in the direction that we've been going under Scott Walker, because this is clearly what Scotty (and those who pull his strings) wants.
Me, I prefer a place with better wages, better living standards, more transparency in government, and a higher quality of life, and I'd highly recommend a change from the Hoosier-influenced leadership we've had here in America's Dairyland. There's a reason I wanted to move back to Wisconsin after 5 years in Indiana in 2005, and given that more than half of people getting bachelor's degrees in Indiana leave the state within 5 years, it looks like I'm hardly alone. Having a corporatist with backward-ass policies like Mitch Daniels will lead to that type of brain drain.
But it also gives me a bit of insight on the policies of one of Scott Walker's political idols- Mitch Daniels (you can read the J-S's 2011 profile of Mitch and his influence on Walker here). Mitch is leaving the governorship of Indiana this week after serving two terms, and this story in the Indianapolis Star is a good indication of what'll happen if we allow the age of Fitzwalkerstan to continue.
It doesn't take long for you to see who benefitted from Mitch's 8 years in office- and it wasn't most Hoosiers.
During his 2004 campaign for governor, Mitch Daniels repeatedly slammed Democratic incumbent Joe Kernan for Indiana's economic decline, citing one statistic in particular in stump speeches, debates and essays.And that's just the beginning. The article goes on to note-
"The average Hoosier now earns 88 cents for every dollar the average American earns," he often said.
To attack that problem, Daniels flung open the doors for business in Indiana. He reduced regulations, privatized some government services, balanced the state budget, reduced corporate taxes, improved infrastructure and supported "right-to-work" legislation -- all in the name of spurring economic development. (Sound familiar, folks?)
Those efforts have helped Indiana earn a reputation as one of the most business-friendly states in the country. The high mark: Honda's decision to build an auto manufacturing plant in Greensburg, where it now employs about 2,300 workers.
"He was tremendous in attracting business to the state. Everyone wanted to come," said U.S. Chamber of Commerce President Thomas Donohue. "Why do you think a lot of people wanted him to be president?" (Note: Tom Donohue does not live in Indiana)
This year alone, the governor said at a recent event, 251 companies have said they plan to invest $6.57 billion in Indiana and create 27,858 jobs, setting a record. (Buuuuuut...) Still, the total number of private-sector jobs in Indiana has declined by 1.3 percent during Daniels' eight years in office as the U.S. total rose.
While the state has boosted its job-creation efforts, average per-capita personal income for Hoosiers has not budged when compared with other states -- and actually declined slightly during the Daniels era.Green eyeshade "making your numbers" mentality over service, results and better standards of living. Sound familiar? Here's some other Mitch statements from his first winning campaign in 2004 that should sound familiar to us that have observed Scott Walker in Wisconsin- heck, Walker probably plagiarized from it for his run in 2010.
The average Hoosier now earns 86 cents for every dollar the average American makes, according to statistics from the U.S. Bureau of Economic Analysis. ....
Since Daniels was elected, Indiana has lost 50,000 private-sector jobs while the nation has added such jobs; gross domestic product and income growth have lagged the nation; unemployment is higher than the U.S. average; and the state's poverty rate has risen....
Private-sector jobs in Indiana have grown 6.2 percent since the low point of the recession in July 2009 -- faster than all other states except North Dakota, Texas and Utah. And state government is in strong fiscal health, unlike some of Indiana's neighbors.
"We will rebuild state government around the objective of income growth and new hope for Hoosiers," [Daniels] wrote in a guest column published in The Indianapolis Star. "We will measure, set aggressive targets for improvement, and drive relentlessly for results."Yep, sounds like the direction Wisconsin is going, lower incomes, and poor economic performance compared to your peers.
Daniels won the election by an eight-point margin.
But since he took office, Indiana's median household income growth has been slower than that of 37 other states.
Daniels downplayed such statistics during a recent interview, arguing that they don't take into account Indiana's low cost of living.
"The measure ought to be adjusted for the cost of living," he said. "The question is: How well are Hoosiers living? And what can Hoosiers' money buy?" (If that statement doesn't define the "race to the bottom" mentality, what does?)
By that measure, Indiana has lost even more ground, according to data compiled by the Indiana Office of Management & Budget. In 2004 -- the year Daniels was elected -- the average Hoosier earned 99 cents for every dollar the average American earned, based on after-tax income adjusted for cost of living. In 2011, that measure had dropped to 95 cents.
The state's poverty rate also has grown to nearly 16 percent from nearly 13 percent since Daniels took office. In 2005, Indiana was the 18th-poorest state in the nation. In 2011, it was 16th.
And oh yeah, Scott Walker designed the money-wasting and corrupt WEDC on Daniels' IEDC. Well before we knew just how screwed-up WEDC was and still is, I was pointing out the problems and corruption at IEDC. This included inflated jobs numbers, numerous failed ventures, the unaccountable handing out of tax credits to bankrupt companies, and bullying local governments who were skeptical of these companies following through on their promises.
And 7 years after creating IEDC, Mitch Daniels' pet project still wasn't working, as even his own party was demanding more controls over it. Check out this article from last week.
Two Indiana Senate Republicans are joining the growing, bipartisan chorus of state officials seeking more transparency at the Indiana Economic Development Corp. amid lingering questions about how many jobs the semi-private agency actually creates and its endorsement of ventures that have not panned out.Again, this should be familiar to us in Wisconsin, especially with the revelation from last week that WEDC hadn't shown full financial statements to the WEDC Board, and that its audit committee had only met twice in 18 months.
Sen. Mike Delph, R-Carmel, has introduced a bill that would require companies that receive tax incentives to provide an annual tally of how many jobs they have created. The bill also would require the IEDC to make that information public under open-records laws.
State law currently exempts the IEDC from disclosing much of that information on the grounds that doing so could harm negotiations with prospective employers....
[Delph] cited several news investigations that raised his concerns, including stories in The Indianapolis Star on tax incentives offered to projects around the state that never materialized, and an investigation by WTHR-13 that raised questions about whether the agency created as many jobs as it claims.
The bottom line here is this. If you think Mitch Daniels' Confederate-style legacy of corporate cronyism, lower incomes, higher poverty and lower service levels is what Wisconsin should shoot for, then by all means, let's continue in the direction that we've been going under Scott Walker, because this is clearly what Scotty (and those who pull his strings) wants.
Me, I prefer a place with better wages, better living standards, more transparency in government, and a higher quality of life, and I'd highly recommend a change from the Hoosier-influenced leadership we've had here in America's Dairyland. There's a reason I wanted to move back to Wisconsin after 5 years in Indiana in 2005, and given that more than half of people getting bachelor's degrees in Indiana leave the state within 5 years, it looks like I'm hardly alone. Having a corporatist with backward-ass policies like Mitch Daniels will lead to that type of brain drain.
Sunday, December 30, 2012
Two graphs continue the economic #Walkerfail
A couple of reports over the last few days give some good benchmarks for where the state of Wisconsin stands compared to its neighbors as 2012 ends. And the news continues to be bad.
The first look was the state-by-state job reports from the BLS. And given that Wisconsin benefitted from seasonal adjustments and reported strong job gains in November, you'd think this would make the state look good compared to its Midwestern neighbors. But as a chart of the Midwest Fitzwalkerstani era shows, Wisconsin is the only state that has lost jobs in the BLS reports, and is far behind any other state in the area, as well as the country as a whole.
Job index, Jan 2011- Nov 2012
(Jan. 2011 jobs amount = 100)
In fact, this chart shows that Wisconsin would have had to have gained 49,000 MORE JOBS JUST TO GET OUT OF LAST PLACE. That's a massive job hole to get out of, and it's not hard to pinpoint how we got there.
And the recently-released Philly Fed coincident index of states tells the same story. If you take this index and draw it back to Scott Walker's inaguration in January 2011, it tells a similarly ugly story.
Even if Wisconsin's coincident index's had grown FIVE TIMES FASTER since the start of 2011, they'd still be bringing up the rear in the Midwest, and the U.S. as a whole has grown at a rate 6 times faster than the state of Wisconsin.
But let's give Gov. Walker the benefit of the doubt, and maybe all the upheaval since he dropped the bomb with Act 10 was holding businesses and consumers back. So let's look at how Wisconsin has done since the end of May, when Walker predicted the floodgates would open with job growth once the recall "uncertainty" was over.
Job change, May 2012-Nov. 2012
Ohio +40,000 (+0.78%)
Ill. +33,400 (+0.59%)
Minn +26,900 (+0.94%)
Ind. +14,700 (+0.51%)
Iowa +500 (+0.03%)
Mich -1,100 (-0.03%)
Wis. -4,400 (-0.16%)
So much for that. In fact, if you follow Walker's belief that businesses were "waiting and seeing" due to the recalls, I guess they decided they didn't want to be a part of a state that had Scott Walker and the WisGOPs running it.
(also note how Ohio has jumped ahead and stayed ahead of everyone in the Midwest. Guess restoring collective bargaining rights in the public sector didn't destroy their economy, did it?)
So we're still stuck in neutral in Wisconsin as the U.S. and the rest of the Midwest continues to advance. The sample size is large enough that you can't call it a fluke either. So as go intom 2013, let's see if our media catches on to the huge failure that has resulted from Scott Walker's regressive policies. And I'll make damn sure I'll do my part to keep it in front of your attention.
Maybe that critical mass will happen when Dem-run Minnesota passes Wisconsin some time next year for total jobs- there's only a 7,100-job difference between the 2 states right now. While Wisconsin football teams may pound Minnesota ones on the field (I anticipate that continuing this afternoon - little would make me happier than seeing the Pack break the Vikes' hearts and end their season), the Mud Ducks are beating our asses in the job front. Keep an eye on it as we go forward.
The first look was the state-by-state job reports from the BLS. And given that Wisconsin benefitted from seasonal adjustments and reported strong job gains in November, you'd think this would make the state look good compared to its Midwestern neighbors. But as a chart of the Midwest Fitzwalkerstani era shows, Wisconsin is the only state that has lost jobs in the BLS reports, and is far behind any other state in the area, as well as the country as a whole.
Job index, Jan 2011- Nov 2012
(Jan. 2011 jobs amount = 100)
In fact, this chart shows that Wisconsin would have had to have gained 49,000 MORE JOBS JUST TO GET OUT OF LAST PLACE. That's a massive job hole to get out of, and it's not hard to pinpoint how we got there.
And the recently-released Philly Fed coincident index of states tells the same story. If you take this index and draw it back to Scott Walker's inaguration in January 2011, it tells a similarly ugly story.
Even if Wisconsin's coincident index's had grown FIVE TIMES FASTER since the start of 2011, they'd still be bringing up the rear in the Midwest, and the U.S. as a whole has grown at a rate 6 times faster than the state of Wisconsin.
But let's give Gov. Walker the benefit of the doubt, and maybe all the upheaval since he dropped the bomb with Act 10 was holding businesses and consumers back. So let's look at how Wisconsin has done since the end of May, when Walker predicted the floodgates would open with job growth once the recall "uncertainty" was over.
Job change, May 2012-Nov. 2012
Ohio +40,000 (+0.78%)
Ill. +33,400 (+0.59%)
Minn +26,900 (+0.94%)
Ind. +14,700 (+0.51%)
Iowa +500 (+0.03%)
Mich -1,100 (-0.03%)
Wis. -4,400 (-0.16%)
So much for that. In fact, if you follow Walker's belief that businesses were "waiting and seeing" due to the recalls, I guess they decided they didn't want to be a part of a state that had Scott Walker and the WisGOPs running it.
(also note how Ohio has jumped ahead and stayed ahead of everyone in the Midwest. Guess restoring collective bargaining rights in the public sector didn't destroy their economy, did it?)
So we're still stuck in neutral in Wisconsin as the U.S. and the rest of the Midwest continues to advance. The sample size is large enough that you can't call it a fluke either. So as go intom 2013, let's see if our media catches on to the huge failure that has resulted from Scott Walker's regressive policies. And I'll make damn sure I'll do my part to keep it in front of your attention.
Maybe that critical mass will happen when Dem-run Minnesota passes Wisconsin some time next year for total jobs- there's only a 7,100-job difference between the 2 states right now. While Wisconsin football teams may pound Minnesota ones on the field (I anticipate that continuing this afternoon - little would make me happier than seeing the Pack break the Vikes' hearts and end their season), the Mud Ducks are beating our asses in the job front. Keep an eye on it as we go forward.
Thursday, December 27, 2012
Privatization failures keep piling up
Here are a couple more reasons why farming out government services might not always work out for you.
The first is the latest article on the WEDC debacle in today's Journal-Sentinel. It includes some beautiful quotes from a professor who deals with corporate and financial oversight.
Another story that came out in the last week included the revelation that the state DOA was firing a cleaning firm that damaged the Capitol's marble floor through negligence. This comes a year after Walker and DOA chose to use prison labor to put up the state's Christmas tree in the Capitol Rotunda. Naturally, the Walker DOA is not deciding to take the cleaning and Capitol maintenance duties in-house, but instead will hand out another contract to another private company to help clean up the damage from the first company.
And lastly, we'll take you to the hallmark of bad crony government service contracting- Chicago - where the city's privatized parking meters are now slated to become the most expensive in the country.
I'm not saying that all privatization is bad or doesn't work- some of it does. But when you see Republicans and corporate Dems trying to say that selling off services is a magic pill that saves taxpayers money and delivers better services, that's absolutely not true. And in all cases, privatization schemes should be closely monitored with the same level of tight oversight of taxpayer dollars that exists with the services done in-house by government workers.
This has consistently not been the case in Fitzwalkerstan, and you see the disasters that result.
The first is the latest article on the WEDC debacle in today's Journal-Sentinel. It includes some beautiful quotes from a professor who deals with corporate and financial oversight.
If they were in my class, they'd get a big 'F,' " said Paul Lapides, a business school professor who directs the Corporate Governance Center at Kennesaw State University in Georgia.In other words, the Walker Administration and GOP Legislature didn't think of the most basic oversight and accounting measures when they created WEDC in 2011. Now whether the Fitzwalkerstanis are at "unfit-for-office" levels of incompetence, or desired that part of WEDC's structure, I'll leave up to you to decide.
"Every single adult citizen in the state should be saying, 'Wait, you have people on this board of directors who aren't reading financial statements and don't have a clue about how internal controls work?' " Lapides added.
He said the board could be viewed as having a "reckless disregard for their duties." Like public company directors, members of boards such as the WEDC have a duty to act in the best interest of the company and are subject to the same liability, Lapides said.
As Wisconsin's flagship jobs agency, the WEDC must prepare numerous re ports for state officials on its job creation programs and its tens of millions of dollars in taxpayer subsidies to businesses. But unlike nearly every other quasi-public authority at the state level, the corporation is not required by law to report yearly on its finances.
Before Dec. 14, WEDC's audit committee of one businessman and two lawmakers had met just twice, and neither they nor the entire volunteer WEDC board had seen full financial statements.
Another story that came out in the last week included the revelation that the state DOA was firing a cleaning firm that damaged the Capitol's marble floor through negligence. This comes a year after Walker and DOA chose to use prison labor to put up the state's Christmas tree in the Capitol Rotunda. Naturally, the Walker DOA is not deciding to take the cleaning and Capitol maintenance duties in-house, but instead will hand out another contract to another private company to help clean up the damage from the first company.
And lastly, we'll take you to the hallmark of bad crony government service contracting- Chicago - where the city's privatized parking meters are now slated to become the most expensive in the country.
On New Year's Day, meters in the city's downtown Loop area will begin charging $6.50 an hour — up from $5.75.As someone who worked for the City of Milwaukee as Chicago made this deal in 2008, we took a look at it as a possible direction to take to handle the City's revenue issues, and our analysis showed that it was a bad idea for Milwaukee. So we chose to keep Milwaukee's parking in-house, and it continues to be checked by city-accountable Milwaukee parking officers. The Milwaukee parking operation's "profits" will reduce the City's property tax levy by over $60 million between 2011 and 2013, and without the loss of future revenues that Chicago is facing because of it being sold off to Wall Street financiers.
A report from the San Francisco Municipal Transportation Agency says the rate change will make Chicago the city with the most expensive metered parking.
The company that operates the meters plans to have all machines set to the new rates by the end of February.
Former Mayor Richard Daley got the City Council to approve the company's 75-year contract in 2008. In return, the city got a $1.1 billion payment — much of which has already been spent.
Current Mayor Rahm Emanuel has ordered an independent audit of the deal, which is now largely viewed as a financial disaster.
I'm not saying that all privatization is bad or doesn't work- some of it does. But when you see Republicans and corporate Dems trying to say that selling off services is a magic pill that saves taxpayers money and delivers better services, that's absolutely not true. And in all cases, privatization schemes should be closely monitored with the same level of tight oversight of taxpayer dollars that exists with the services done in-house by government workers.
This has consistently not been the case in Fitzwalkerstan, and you see the disasters that result.
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