I had a very strange dream last night. I dreamed that I had awakened in 2048, exactly 40 years into the future.
My surroundings were fairly familiar, but cars and storefronts looked quite different -- definitely futuristic. Wal-Mart and McDonald's were pretty much the same, only bigger. McDonald's, for example, had a food section chock full of ready-to-eat meals. All the customers had to do was bring plates or trays and fill them with whatever entrees and sides they preferred.
In the future, there are no refrigerators. Irradiation and preservatives are so effective that food won't spoil for at least three months. One shopper told me that she preferred some dishes, like corned beef and cabbage, to get "tangy" before she served them. She was shopping for Easter (2049) dinner when I met her at Mickey D's.
Politics had changed a little, but there were still plenty of familiar names on the ballot. Ruprecht Gainer Jr., son of the esteemed Wirt County proctologist, was running unopposed for state auditor, thus making 80 consecutive years of somebody named Gainer holding that office.
West Virginia had lost population, so much so that we were down to one congressional district. In 2048, Shelley Capito-Underwood (granddaughter of Shelley Moore Capito) was unopposed. However, she would only serve until 2050, when Charles Mollohan (grandson of Alan Mollohan) would take over. And then in 2052, Glenn Bob Rahall (grandson of Nick Joe Rahall) would return to serve for a term.
The voters had approved the Ambassador Amendment in 2016 to protect the three political families who had so dominated House of Representatives races. In their off years, the Congressmen served as official ambassadors to Washington, were paid a generous stipend and allowed to maintain a district office.
It was no surprise then that "Rocky 7" (John D. Rockefeller VII) was the favorite to win the Senate seat previously held by Rockies 4 through 6.
Gus A. Douglass was still the incumbent agriculture commissioner, although he had threatened to retire a decade earlier saying the job was too much work for him. The voters responded by approving the Agricultural Stabilization Amendment, which reduced the duties of agricultural commissioner to maintaining the grassy areas around state office buildings.
Commissioner Douglass was running unopposed in the general election. He had survived a challenge in the primary election from Devil Anse "Jesco" McGraw, an itinerant leaf-blower from Mingo County.
Sen. Robert C. Byrd had unexpectedly retired in 2047, which left the state's Democratic Party in a quandary. Because the name "Byrd" was so synonymous with the Senate seat, the party chairman, Ralston P. Caperton, insisted on appointing someone named Byrd to it. After an exhaustive search of coalfield Democratic voter rolls, no Byrds turned up. The closest match was Kermit Bird from Glen Jean, and he received the appointment to fill Robert Byrd's seat until the next election.
Now this race was interesting because Piper Palin, the youngest daughter of former president Sarah Palin, had moved to West Virginia in 2025 and was running well ahead of Sen. Bird. Piper Palin was best-known around the state as a champion ATV racer. She lived in a tent on Spruce Knob.
During the summer, Piper Palin had scored points by running a negative ad that featured background music from the movie "Dumb and Dumber." Voters apparently took a liking to Jim Carrey and Jeff Daniels singing "Mockingbird" because most of them referred to Kermit Bird simply as "Ing."
Joe Manchin Il was certain to win the governors race. He defeated Joe Manchin V (grandson of former Gov. Joe Manchin III) in the primary election.
It came as a shock to me when the lady I was talking with at Mickey D's explained that Joe Manchin Il was actually Kim Sam Il, a Korean immigrant who changed his name. Voters had mistaken "Il" as "II" and assumed that they were voting for the elder Manchin.
I asked the lady if Kim Sam Il was from North Korea, and she replied: "No. It's even worse. He's a successful businessman from South Korea!"
In 2048, West Virginia is not ranked 50th on the economic indicator lists. Unfortunately, West Virginia drops to 56th behind the new states of Iraq, Bahrain, Kuwait, Cuba, Puerto Rico and Grenada.
I am now awake, and I know it's 2008. I am writing this column from Mickey D's in Clarksburg. My Egg McMuffin tastes a little tangy, but I am not sure if it's the food or my imagination.
Showing posts with label wv politics. Show all posts
Showing posts with label wv politics. Show all posts
Friday, September 26, 2008
Friday, December 1, 2006
For Government, Trailers Make Sense
Ten years ago, I attended a meeting at Jackson’s Mill. One member of our group arrived a few minutes late. He entered the meeting room with a panicked look on his face and asked us if we had heard about the fire at the Governor’s mansion. Before we could collect ourselves from news of this tragedy, he uttered the punch line, "It burned to the axles before the fire crews got there!"
Well, it was funny and we all laughed. But we knew in our hearts that the Capitol complex was run like a rundown trailer park.
When the late Bill Ritchie was re-appointed Highway Commissioner in 1985, one of his first tasks was to repair the fountain in front of the DOH office tower on Washington Street. In its less than 20-year life, the fountain hadn’t worked for years because of lack of maintenance. The empty concrete vessel had become a joke. State workers called it the "Yeti trap" and chirped that, sooner or later, we would finally catch the elusive abominable snowman.
Upon taking office, Gov. Bob Wise learned that the Capitol’s priceless chandelier nearly fell from its haunt because of "lack of maintenance." The lamp’s support cable had frayed to its last strands. Shortly thereafter, we also learned that structural steel in the dome had cracked. And we also learned that the dome itself needed extensive work.
Then, we learned that the Capitol’s roof leaked. The reason? Once again, a "lack of maintenance." Money for repairs was not forthcoming, so the job was initially recommended as an Economic Development Grant project.
And since, we have learned that the Capitol complex elevators failed to meet building and safety code requirements. The answer to that "lack of maintenance" question was to quit inspecting the elevators all together.
What started out as a redecorating project at the Governor’s mansion in 2005 quickly ballooned into a structural repair nightmare after the contractor removed the tarpaper. Again, a "lack of maintenance" had allowed little problems to fester into big ones. We have coughed up $3 million to rehab an 80-year-old building that could have been razed and built new for less money. But then again, it wouldn’t have the charm and ambiance of Tom Hank’s money pit, would it?
And now for the pièce de résistance-the Capitol cafeteria. This eatery gave new meaning to La Cuillère Grasse (The Greasy Spoon.) In fact, if the kitchen grease had caught fire, then the Capitol would have burned to the axles before fire crews got there! Fortunately, nervous cockroaches drew attention to the fire hazard which, in turn, prompted the health department to close the cafeteria. I am told that cockroaches are sensitive to fire hazards and need no special training to alert humans that danger is at hand.
Don’t laugh. The two prior state capitol buildings weren’t lousy with cockroaches and they each burned to the ground!
To blame government workers or elected politicians for failing to maintain government buildings is pointless and irrelevant. Unlike homeowners, government workers have no ownership interest in government-owned real estate. Unlike homeowners, the government has no interest in creating equity because the property will likely never be sold. Unlike homeowners, government never dies nor does government ever move to another state. And government is never financially at risk for its farm-the taxpayers and their grandkids are.
The run-down condition of our most majestic buildings is a story that clearly defines the difference between individual property rights in a democracy and government control of property. When government is in sole charge of property, the decline begins. And then political leaders ceaselessly solicit more and more tax money to address the needs of the state.
"Give us $3 million and we’ll fix the mansion once and for all."
"Give us $15 million and we’ll fix the roof leaks once and for all."
And so goes the begging until you are mentally conditioned to expect such cycles as inevitable. Then they become so.
State workers and elected leaders can do no better than they have done in the past. But the fault is not theirs. It is ours.
We should never have expected them to take care of fountains, elevators, crystal chandeliers, or gilded domes in the first place. If these people wanted to manage real estate, they would have hired on with Donald Trump, not the state.
We should have bought each agency its requisite number of trailers and, when they were trashed, replaced them with new trailers.
As for the governor’s residence, we’d probably be obliged to buy him a nice double-wide. (Without a fire place, of course.)
Well, it was funny and we all laughed. But we knew in our hearts that the Capitol complex was run like a rundown trailer park.
When the late Bill Ritchie was re-appointed Highway Commissioner in 1985, one of his first tasks was to repair the fountain in front of the DOH office tower on Washington Street. In its less than 20-year life, the fountain hadn’t worked for years because of lack of maintenance. The empty concrete vessel had become a joke. State workers called it the "Yeti trap" and chirped that, sooner or later, we would finally catch the elusive abominable snowman.
Upon taking office, Gov. Bob Wise learned that the Capitol’s priceless chandelier nearly fell from its haunt because of "lack of maintenance." The lamp’s support cable had frayed to its last strands. Shortly thereafter, we also learned that structural steel in the dome had cracked. And we also learned that the dome itself needed extensive work.
Then, we learned that the Capitol’s roof leaked. The reason? Once again, a "lack of maintenance." Money for repairs was not forthcoming, so the job was initially recommended as an Economic Development Grant project.
And since, we have learned that the Capitol complex elevators failed to meet building and safety code requirements. The answer to that "lack of maintenance" question was to quit inspecting the elevators all together.
What started out as a redecorating project at the Governor’s mansion in 2005 quickly ballooned into a structural repair nightmare after the contractor removed the tarpaper. Again, a "lack of maintenance" had allowed little problems to fester into big ones. We have coughed up $3 million to rehab an 80-year-old building that could have been razed and built new for less money. But then again, it wouldn’t have the charm and ambiance of Tom Hank’s money pit, would it?
And now for the pièce de résistance-the Capitol cafeteria. This eatery gave new meaning to La Cuillère Grasse (The Greasy Spoon.) In fact, if the kitchen grease had caught fire, then the Capitol would have burned to the axles before fire crews got there! Fortunately, nervous cockroaches drew attention to the fire hazard which, in turn, prompted the health department to close the cafeteria. I am told that cockroaches are sensitive to fire hazards and need no special training to alert humans that danger is at hand.
Don’t laugh. The two prior state capitol buildings weren’t lousy with cockroaches and they each burned to the ground!
To blame government workers or elected politicians for failing to maintain government buildings is pointless and irrelevant. Unlike homeowners, government workers have no ownership interest in government-owned real estate. Unlike homeowners, the government has no interest in creating equity because the property will likely never be sold. Unlike homeowners, government never dies nor does government ever move to another state. And government is never financially at risk for its farm-the taxpayers and their grandkids are.
The run-down condition of our most majestic buildings is a story that clearly defines the difference between individual property rights in a democracy and government control of property. When government is in sole charge of property, the decline begins. And then political leaders ceaselessly solicit more and more tax money to address the needs of the state.
"Give us $3 million and we’ll fix the mansion once and for all."
"Give us $15 million and we’ll fix the roof leaks once and for all."
And so goes the begging until you are mentally conditioned to expect such cycles as inevitable. Then they become so.
State workers and elected leaders can do no better than they have done in the past. But the fault is not theirs. It is ours.
We should never have expected them to take care of fountains, elevators, crystal chandeliers, or gilded domes in the first place. If these people wanted to manage real estate, they would have hired on with Donald Trump, not the state.
We should have bought each agency its requisite number of trailers and, when they were trashed, replaced them with new trailers.
As for the governor’s residence, we’d probably be obliged to buy him a nice double-wide. (Without a fire place, of course.)
Friday, November 3, 2006
The Best-Paying Jobs That Your Taxes Can Buy
Ever since the time of Pharaoh, government has felt the need to create jobs for the people. Only now, we don’t build pyramids. We are much too modern for that notion. We are high tech workers; we build airplanes by decree of economic development committees.
Europe organized Airbus in 1970. The company is mostly owned by France and Germany with smaller shares being held by England and Spain. Russia, the grandmaster of government boondoggles, recently bought a 5% share of Airbus.
To justify the way that Airbus bleeds European taxpayers for subsidies, the company has built 16 plants in its member countries. I am sure that each plant has a sign in its front yard that reads, "Jobs for Your Community." Of course, there is no mention of the cost to taxpayers to create those jobs. Socialist ventures are exempt from truth-in-investing disclosures.
Airbus is currently building the 555-seat A380-the world’s biggest passenger plane. The A380 is the most ill-conceived invention of the post-9/11 era. But it is huge, like the Great Pyramid of Giza and the Aswan Dam, and that is its attraction to the bureaucrats who manage the government-owned consortium.
The future of the Airbus A380 is beginning to resemble that of the Concorde SST. England’s BAE and France’s Aerospatiale built that marvel before both government-owned companies became founders of Airbus. Airbus learned from the Concorde’s mistake. The Concorde carried too few passengers to ever make a profitable flight. Therefore, Airbus designed the A380-the behemoth which is too big for any airport terminal in the world to load and unload.
Government squabbling has now left Airbus’ top management in disarray. Delivery of the A380 is still two years away. Orders have stagnated. And Boeing has taken the lead in the long-haul market with its new 787 Dreamliner.
Writing in the Wall Street Journal, Holman Jenkins compared Airbus’ current state to that of the Concorde as a "Rip Van Winkle moment." Yogi Berra would say, "It’s déja vu all over again!"
Just like the socialist governments of Europe, we West Virginians own an interest in a government-run aircraft consortium. And somewhere in Martinsburg, there is a sign that reads, "Jobs for Your Community."
According to press reports, West Virginia loaned Swearingen Aircraft Co. $4 million to build small business jets. Apparently, the company could only repay half the loan, so our state took a 2% interest in the company in lieu of the $2 million outstanding debt.
Later on, the Republic of China (Taiwan) invested $500 million in the project through its state-owned Sino Aerospace Investment Corporation, and the resulting company is Sino-Swearingen Aircraft Corp. (SSAC) of which Taiwan owns 90%. Thus, I assume that we own 2% of 10% of a company capitalized at $500 million. That’s one million dollars. Our investment appears to have lost half its value.
I was unable to find any publicly-available financial information for the company. As investors, our state should make that information available. For example, do we own common stock or preferred stock? Does the stock pay a dividend? Has the stock split? Does the stock trade on an exchange? Are our shares restricted?
In late June, we received some bad news about our aircraft investment. SSAC is headquartered in San Antonio and the city offered the company a $70 million development package to expand its plant facility. San Antonio has upped the "Jobs for Your Community" ante. We cannot match its offer.
I do hope that SSAC builds jets or jet components in Martinsburg someday. But the reality is this-thirty other companies (including Airbus, Boeing, Bombardier, Learjet, and Embraer) have new business jets in development. It’s always tough for a start-up company to match the competition from industry veterans.
Sino-Swearingen’s website boasts that "SSAC's goal is to become the world's leading aircraft producer…" And therein lies a good lesson for businessmen wanting to secure government welfare: If you can’t build Pharaoh the biggest pyramid, then do the next best thing and promise to build him the most.
Europe organized Airbus in 1970. The company is mostly owned by France and Germany with smaller shares being held by England and Spain. Russia, the grandmaster of government boondoggles, recently bought a 5% share of Airbus.
To justify the way that Airbus bleeds European taxpayers for subsidies, the company has built 16 plants in its member countries. I am sure that each plant has a sign in its front yard that reads, "Jobs for Your Community." Of course, there is no mention of the cost to taxpayers to create those jobs. Socialist ventures are exempt from truth-in-investing disclosures.
Airbus is currently building the 555-seat A380-the world’s biggest passenger plane. The A380 is the most ill-conceived invention of the post-9/11 era. But it is huge, like the Great Pyramid of Giza and the Aswan Dam, and that is its attraction to the bureaucrats who manage the government-owned consortium.
The future of the Airbus A380 is beginning to resemble that of the Concorde SST. England’s BAE and France’s Aerospatiale built that marvel before both government-owned companies became founders of Airbus. Airbus learned from the Concorde’s mistake. The Concorde carried too few passengers to ever make a profitable flight. Therefore, Airbus designed the A380-the behemoth which is too big for any airport terminal in the world to load and unload.
Government squabbling has now left Airbus’ top management in disarray. Delivery of the A380 is still two years away. Orders have stagnated. And Boeing has taken the lead in the long-haul market with its new 787 Dreamliner.
Writing in the Wall Street Journal, Holman Jenkins compared Airbus’ current state to that of the Concorde as a "Rip Van Winkle moment." Yogi Berra would say, "It’s déja vu all over again!"
Just like the socialist governments of Europe, we West Virginians own an interest in a government-run aircraft consortium. And somewhere in Martinsburg, there is a sign that reads, "Jobs for Your Community."
According to press reports, West Virginia loaned Swearingen Aircraft Co. $4 million to build small business jets. Apparently, the company could only repay half the loan, so our state took a 2% interest in the company in lieu of the $2 million outstanding debt.
Later on, the Republic of China (Taiwan) invested $500 million in the project through its state-owned Sino Aerospace Investment Corporation, and the resulting company is Sino-Swearingen Aircraft Corp. (SSAC) of which Taiwan owns 90%. Thus, I assume that we own 2% of 10% of a company capitalized at $500 million. That’s one million dollars. Our investment appears to have lost half its value.
I was unable to find any publicly-available financial information for the company. As investors, our state should make that information available. For example, do we own common stock or preferred stock? Does the stock pay a dividend? Has the stock split? Does the stock trade on an exchange? Are our shares restricted?
In late June, we received some bad news about our aircraft investment. SSAC is headquartered in San Antonio and the city offered the company a $70 million development package to expand its plant facility. San Antonio has upped the "Jobs for Your Community" ante. We cannot match its offer.
I do hope that SSAC builds jets or jet components in Martinsburg someday. But the reality is this-thirty other companies (including Airbus, Boeing, Bombardier, Learjet, and Embraer) have new business jets in development. It’s always tough for a start-up company to match the competition from industry veterans.
Sino-Swearingen’s website boasts that "SSAC's goal is to become the world's leading aircraft producer…" And therein lies a good lesson for businessmen wanting to secure government welfare: If you can’t build Pharaoh the biggest pyramid, then do the next best thing and promise to build him the most.
Friday, March 10, 2006
Road Projects Defy Both Description and Explanation
The year was 1961. President John F. Kennedy rewarded West Virginia for its role in his bid for the White House by drawing a line from Pittsburgh to Charleston and calling it I-79. The road had not been contemplated when America laid out its version of the German Autobahn-the Interstates. But that oversight mattered little. Our stretch of I-79 was a political payback, pure and simple.
My father’s construction company won the contract to build the first section of I-79, essentially the South Fairmont interchange at exit 132. The interchange had already been planned as part of the new US250 bypass. In fact, one of the Tygart’s Valley River bridges had been completed before the groundbreaking for I-79 took place. And what a groundbreaking it was!
Gov. W. W. Barron, U. S. Senator Jennings Randolph, and JFK’s Commerce Secretary, Luther Hodges, were just three of the dignitaries who spoke to a crowd of several hundred. The highlight of the day’s activities was the actual groundbreaking. My father had purchased a new bulldozer for the occasion and the aforementioned dignitaries all took turns at the controls scraping away a few tons of earth. Screw the hand shovels! This was a big deal!
For those of you who live in Fairmont and have wondered for 45 years about the US250 bypass around your town, you now know that it was given up for a higher purpose. For everyone else, this "groundbreaking" vignette provides an informed look at how roads get built in West Virginia. Always remember this: The new king doesn’t have to finish what the old king started. The new king can do as he pleases.
In Morgantown, over a quarter-century has lapsed since an old king started building Route 705. But Route 705 has yet to be linked with I-68. During this interlude, other kings spent money on the Mon-Fayette Expressway. It, too, is unfinished. Morgantown is booming and desperately needs a completed 705 as well as a north bypass highway and a widened Beechurst Avenue in the downtown. How many more kings will it take to finish this patchwork quilt of a road map?
Clarksburg was promised a south bypass (Route 98) by the mid-1980’s. United Hospital Center fronts on that road. But rather than wait for another unfulfilled decade to pass, UHC decided to move out of the city to Jerry Dove Drive-a road that a former king built for the FBI center.
West Virginia has had a long history of changing its road priorities. You can see that history in the old two-lane primary roads. After negotiating miles of curves, you’ll come upon two miles of fairly straight road and then it’s back to the chicanes.
The West Virginia Turnpike best defines our highway metamorphosis-not even Charles Darwin could tell you what it’s supposed to look like when it’s full-grown. The Turnpike began as a two-lane, driver’s survival course but has morphed into a regional tourism commission that operates a flea market for the well-to-do traveler. What’s next? That much-needed horse center? Or the Glade Springs exit?
From my perspective in the northern part of the state, the King Coal Highway and Coalfields Expressway look like payoffs for the glory days of 120 per cent voter turnout. Had these roads been built in the 1950’s or 1960’s, there’s a good argument that they would have spurred regional commerce. Building them now is too little, too late for the coalfields economy and too bad for Jefferson and Berkeley, two growing counties that actually need better roads.
Well, at least our Interstate highways are complete. Unfortunately, the Interstates are designed to move people and goods from one end of the nation to the other. They are not local development highways, regardless of how many businesses locate at the exits.
In this century, West Virginia politicians need to forget about grandiose highway schemes and concentrate on improving the primary highway system. And to entice our future kings and their knaves to pursue that course of action, I recommend using this sure-fire approach-let them ride on the bulldozer at the groundbreaking ceremony.
My father’s construction company won the contract to build the first section of I-79, essentially the South Fairmont interchange at exit 132. The interchange had already been planned as part of the new US250 bypass. In fact, one of the Tygart’s Valley River bridges had been completed before the groundbreaking for I-79 took place. And what a groundbreaking it was!
Gov. W. W. Barron, U. S. Senator Jennings Randolph, and JFK’s Commerce Secretary, Luther Hodges, were just three of the dignitaries who spoke to a crowd of several hundred. The highlight of the day’s activities was the actual groundbreaking. My father had purchased a new bulldozer for the occasion and the aforementioned dignitaries all took turns at the controls scraping away a few tons of earth. Screw the hand shovels! This was a big deal!
For those of you who live in Fairmont and have wondered for 45 years about the US250 bypass around your town, you now know that it was given up for a higher purpose. For everyone else, this "groundbreaking" vignette provides an informed look at how roads get built in West Virginia. Always remember this: The new king doesn’t have to finish what the old king started. The new king can do as he pleases.
In Morgantown, over a quarter-century has lapsed since an old king started building Route 705. But Route 705 has yet to be linked with I-68. During this interlude, other kings spent money on the Mon-Fayette Expressway. It, too, is unfinished. Morgantown is booming and desperately needs a completed 705 as well as a north bypass highway and a widened Beechurst Avenue in the downtown. How many more kings will it take to finish this patchwork quilt of a road map?
Clarksburg was promised a south bypass (Route 98) by the mid-1980’s. United Hospital Center fronts on that road. But rather than wait for another unfulfilled decade to pass, UHC decided to move out of the city to Jerry Dove Drive-a road that a former king built for the FBI center.
West Virginia has had a long history of changing its road priorities. You can see that history in the old two-lane primary roads. After negotiating miles of curves, you’ll come upon two miles of fairly straight road and then it’s back to the chicanes.
The West Virginia Turnpike best defines our highway metamorphosis-not even Charles Darwin could tell you what it’s supposed to look like when it’s full-grown. The Turnpike began as a two-lane, driver’s survival course but has morphed into a regional tourism commission that operates a flea market for the well-to-do traveler. What’s next? That much-needed horse center? Or the Glade Springs exit?
From my perspective in the northern part of the state, the King Coal Highway and Coalfields Expressway look like payoffs for the glory days of 120 per cent voter turnout. Had these roads been built in the 1950’s or 1960’s, there’s a good argument that they would have spurred regional commerce. Building them now is too little, too late for the coalfields economy and too bad for Jefferson and Berkeley, two growing counties that actually need better roads.
Well, at least our Interstate highways are complete. Unfortunately, the Interstates are designed to move people and goods from one end of the nation to the other. They are not local development highways, regardless of how many businesses locate at the exits.
In this century, West Virginia politicians need to forget about grandiose highway schemes and concentrate on improving the primary highway system. And to entice our future kings and their knaves to pursue that course of action, I recommend using this sure-fire approach-let them ride on the bulldozer at the groundbreaking ceremony.
Friday, April 1, 2005
Running Government As A Business
Bob Graham, Executive Director of the Wyoming County Council on Aging, made headlines last year when his lucrative compensation package was revealed. The snorts of moral indignation could be heard everywhere and echoes are still bouncing off the hills. And the question still being asked is how could Bob Graham earn nearly $500,000 in a poor little place like Wyoming County ?
The answer to that question is simple-he had an employment contract. It was spelled out-in English.
What is amazing, to me at least, is that Bob Graham could manage all of the programs under his control with such economy that he could pay himself in Enron dollars instead of West Virginia dollars. From what I have read, Mr. Graham earned $460,000 in 2003 and the agencies under his control took in combined revenues of $5.3 million. His compensation package, then, was close to 9% of gross revenue. $4.3 million of that revenue came from Medicaid. Yet we repeatedly hear from health care experts that Medicaid reimbursements don’t cover the cost of service. Go figure.
Wyoming County ’s revelation leads me to believe that there are some significant efficiencies yet to be discovered in running senior centers and home health programs. Even if Mr. Graham had been paid $100,000, then that still leaves almost 7% of gross revenue which could have been shaved from the budget. Applying a 7% reduction to senior programs in all 55 counties would certainly add up to a big savings. And our seniors in the other 54 counties would be able to lounge in hot tubs just like Wyoming County seniors do!
If I were dictator of this state, I’d hire Bob Graham as a consultant. He can milk cows better than the Amish. (As talented as he is, though, he should not have milked sacred cows outside of Hindu territory.)
I’d pay Bombay Bob $1 million a year and give him 20% of all the money he’d save the state during years one and two of his contract. I’d bet that he could save the taxpayers tenfold or more over what he charged.
As your dictator, I’d also consider hiring former Randolph County Clerk Rose Lloyd as a consultant. Ms. Lloyd recently resigned her office over accounting irregularities. She’s agreed to make restitution to the county in the amount of $48,000 over five years.
Given her years of experience in county government, I think Ms. Lloyd could make a valuable investigator with the State Tax Department. Ms. Lloyd would not be relegated to adding columns of numbers. Her contribution would be in recommending tighter financial and accounting controls. She knows how the system works and where the weaknesses are. In that regard, her experience, although tainted, is invaluable.
What I have just suggested might sound like heresy. It is. But on Scout’s honor, I promise that I would be a benevolent dictator!
All kidding aside, the rerouting of public money by Mr. Graham and Ms. Lloyd is nothing new. These two culprits just happen to be the names in the news right now.
Government financial systems are ripe for finagling. Across the state, there are thousands upon thousands of accounts and funds which receive and disburse tax money and few of them ever get as much as a cursory audit. Using the case of the Randolph County Clerk’s office as an example, the state’s auditor discovered some $13,000 missing over a three-month period. The $48,000 settlement to which Ms. Lloyd agreed was a number pulled out of thin air. Auditors have not thoroughly examined Randolph County financial records to determine the actual embezzlement. For all we know, ten million dollars could be missing.
Each government grant is supposed to be accounted for as well. But as we recently learned in Hampshire County, education grant money was misdirected-deliberately, no less.
Gov. Joe Manchin has taken the first step toward improving financial accounting in West Virginia. He deserves a commendation for his initiatives to modernize the State Tax Department’s computer system. But this first step, as big as it is, is not going to solve all of the problems.
Whether it’s county governments, boards of education, councils on aging, or the myriad of other entities that receive and spend taxpayer money, the state needs to rein in their ability to operate as personal fiefdoms. Giving a checkbook to every Tom, Dick, and Boss Hogg is what causes these problems in the first place.
Gov. Manchin is doing his best to apply good business practices to running state government. That said, we should consider requiring each and every government spending unit to provide us, the shareholders, with audited financial statements. And along the lines of the Sarbanes-Oxley Act, we should get serious about holding the chefs who cook the books liable for their acts.
The answer to that question is simple-he had an employment contract. It was spelled out-in English.
What is amazing, to me at least, is that Bob Graham could manage all of the programs under his control with such economy that he could pay himself in Enron dollars instead of West Virginia dollars. From what I have read, Mr. Graham earned $460,000 in 2003 and the agencies under his control took in combined revenues of $5.3 million. His compensation package, then, was close to 9% of gross revenue. $4.3 million of that revenue came from Medicaid. Yet we repeatedly hear from health care experts that Medicaid reimbursements don’t cover the cost of service. Go figure.
Wyoming County ’s revelation leads me to believe that there are some significant efficiencies yet to be discovered in running senior centers and home health programs. Even if Mr. Graham had been paid $100,000, then that still leaves almost 7% of gross revenue which could have been shaved from the budget. Applying a 7% reduction to senior programs in all 55 counties would certainly add up to a big savings. And our seniors in the other 54 counties would be able to lounge in hot tubs just like Wyoming County seniors do!
If I were dictator of this state, I’d hire Bob Graham as a consultant. He can milk cows better than the Amish. (As talented as he is, though, he should not have milked sacred cows outside of Hindu territory.)
I’d pay Bombay Bob $1 million a year and give him 20% of all the money he’d save the state during years one and two of his contract. I’d bet that he could save the taxpayers tenfold or more over what he charged.
As your dictator, I’d also consider hiring former Randolph County Clerk Rose Lloyd as a consultant. Ms. Lloyd recently resigned her office over accounting irregularities. She’s agreed to make restitution to the county in the amount of $48,000 over five years.
Given her years of experience in county government, I think Ms. Lloyd could make a valuable investigator with the State Tax Department. Ms. Lloyd would not be relegated to adding columns of numbers. Her contribution would be in recommending tighter financial and accounting controls. She knows how the system works and where the weaknesses are. In that regard, her experience, although tainted, is invaluable.
What I have just suggested might sound like heresy. It is. But on Scout’s honor, I promise that I would be a benevolent dictator!
All kidding aside, the rerouting of public money by Mr. Graham and Ms. Lloyd is nothing new. These two culprits just happen to be the names in the news right now.
Government financial systems are ripe for finagling. Across the state, there are thousands upon thousands of accounts and funds which receive and disburse tax money and few of them ever get as much as a cursory audit. Using the case of the Randolph County Clerk’s office as an example, the state’s auditor discovered some $13,000 missing over a three-month period. The $48,000 settlement to which Ms. Lloyd agreed was a number pulled out of thin air. Auditors have not thoroughly examined Randolph County financial records to determine the actual embezzlement. For all we know, ten million dollars could be missing.
Each government grant is supposed to be accounted for as well. But as we recently learned in Hampshire County, education grant money was misdirected-deliberately, no less.
Gov. Joe Manchin has taken the first step toward improving financial accounting in West Virginia. He deserves a commendation for his initiatives to modernize the State Tax Department’s computer system. But this first step, as big as it is, is not going to solve all of the problems.
Whether it’s county governments, boards of education, councils on aging, or the myriad of other entities that receive and spend taxpayer money, the state needs to rein in their ability to operate as personal fiefdoms. Giving a checkbook to every Tom, Dick, and Boss Hogg is what causes these problems in the first place.
Gov. Manchin is doing his best to apply good business practices to running state government. That said, we should consider requiring each and every government spending unit to provide us, the shareholders, with audited financial statements. And along the lines of the Sarbanes-Oxley Act, we should get serious about holding the chefs who cook the books liable for their acts.
Friday, July 16, 2004
What We Have Here Is A Failure To Communicate
If you’ve read your local newspaper lately, then you are aware that the Budget Digest is out in print. The Budget Digest is a popular way for a select group of legislators to micromanage every department of government. Because the Budget Digest recommends a spending plan to the Executive branch rather than direct it, the Digest is able to skirt the constitution’s budgeting and spending requirements.
Although the Digest is the most unrestrained form of government spending that we have, none of the line items are particularly large when compared to line items in the state budget. In fact, most Digest grants seem trivial, ranging from $500 to $10,000. But as long as checks are written, the money has to be accounted for.
In the July 1 edition of The Exponent Telegram, staff writer Jennifer Biller reports on Budget Digest allocations for Harrison County schools. Here is an excerpt:
"Robert C. Byrd High was awarded $10,000 in Budget Digest funds. But it’s unclear how the funds will be used. Neither [Harrison County Schools Superintendent] Friebel nor Principal Leon Pilewski requested the money and are not aware of who did."
This transaction defines micromanagement better than Webster’s.
mic-ro-man-age: verb, to control or direct every aspect or detail of a situation
The school system has extensive management. From the State School Superintendent at the top and all of the way down to each school’s Principal, there exists a sophisticated management structure. The professional administrators that we pay to run the system also receive extensive public input.
The parents and teachers who form each school’s PTO are invaluable. Their wisdom comes from being in the trenches. The publicly-elected county Board of Education was conceived to balance the taxpayer’s interests with the school system’s wish list, and while these Boards have lost much of their original authority, their oversight is still important for the community as a whole.
With this structure in place, you would think that the entire budgeting system for public schools would start at the Principals’ offices rather than in a committee room in the capitol building. Unfortunately, the Budget Digest tells us different story. Although the Digest is just an asterisk to the budget bill, that asterisk looms large and highlights who really makes spending decisions, both large and small.
There is a great story that gives credence to the notion of running public education from the bottom up rather than from the top down. Homer Hickam tells it in Rocket Boys, his best-selling book about growing up in Coalwood.
In case you haven’t read Rocket Boys, here’s a synopsis. Homer and his friends-Sherman, O'Dell, Sonny, Quentin, and Roy Lee-started building model rockets. They kept improving with each model. But then the team, known as the Big Creek Missile Agency, came to the point where they could progress no further. The rocket boys needed to learn calculus, a course not offered at Big Creek High.
Because a teacher, Miss Riley, and her principal lobbied on their behalf, the calculus course was taught. The rockets got better and flew higher once the boys learned this new kind of math. And in the end, Homer took their model rocket to the 1960 National Science Fair where it was awarded the top prize.
When you read the Budget Digest to learn if its largesse benefits your school, I hope you will remember the rocket boys. Then ask yourself how the Miss Rileys of today can inspire and teach the next generation of rocket boys when even the most trivial of spending decisions are made behind closed doors in Charleston. Just who would Miss Riley lobby to request a calculus class if she were teaching in today’s environment? Apparently not her principal or county superintendent.
The legislature should concern itself with solving big problems like paying off the $5 billion pension debt. The debt is, after all, the cumulative result of past legislatures trying to micromanage the state.
Although the Digest is the most unrestrained form of government spending that we have, none of the line items are particularly large when compared to line items in the state budget. In fact, most Digest grants seem trivial, ranging from $500 to $10,000. But as long as checks are written, the money has to be accounted for.
In the July 1 edition of The Exponent Telegram, staff writer Jennifer Biller reports on Budget Digest allocations for Harrison County schools. Here is an excerpt:
"Robert C. Byrd High was awarded $10,000 in Budget Digest funds. But it’s unclear how the funds will be used. Neither [Harrison County Schools Superintendent] Friebel nor Principal Leon Pilewski requested the money and are not aware of who did."
This transaction defines micromanagement better than Webster’s.
mic-ro-man-age: verb, to control or direct every aspect or detail of a situation
The school system has extensive management. From the State School Superintendent at the top and all of the way down to each school’s Principal, there exists a sophisticated management structure. The professional administrators that we pay to run the system also receive extensive public input.
The parents and teachers who form each school’s PTO are invaluable. Their wisdom comes from being in the trenches. The publicly-elected county Board of Education was conceived to balance the taxpayer’s interests with the school system’s wish list, and while these Boards have lost much of their original authority, their oversight is still important for the community as a whole.
With this structure in place, you would think that the entire budgeting system for public schools would start at the Principals’ offices rather than in a committee room in the capitol building. Unfortunately, the Budget Digest tells us different story. Although the Digest is just an asterisk to the budget bill, that asterisk looms large and highlights who really makes spending decisions, both large and small.
There is a great story that gives credence to the notion of running public education from the bottom up rather than from the top down. Homer Hickam tells it in Rocket Boys, his best-selling book about growing up in Coalwood.
In case you haven’t read Rocket Boys, here’s a synopsis. Homer and his friends-Sherman, O'Dell, Sonny, Quentin, and Roy Lee-started building model rockets. They kept improving with each model. But then the team, known as the Big Creek Missile Agency, came to the point where they could progress no further. The rocket boys needed to learn calculus, a course not offered at Big Creek High.
Because a teacher, Miss Riley, and her principal lobbied on their behalf, the calculus course was taught. The rockets got better and flew higher once the boys learned this new kind of math. And in the end, Homer took their model rocket to the 1960 National Science Fair where it was awarded the top prize.
When you read the Budget Digest to learn if its largesse benefits your school, I hope you will remember the rocket boys. Then ask yourself how the Miss Rileys of today can inspire and teach the next generation of rocket boys when even the most trivial of spending decisions are made behind closed doors in Charleston. Just who would Miss Riley lobby to request a calculus class if she were teaching in today’s environment? Apparently not her principal or county superintendent.
The legislature should concern itself with solving big problems like paying off the $5 billion pension debt. The debt is, after all, the cumulative result of past legislatures trying to micromanage the state.
Friday, April 2, 2004
History Repeats Itself. First As Tragedy, Second As Farce.
In West Virginia, the 1960s are often referred to as the Barron Era. Several prominent members of Governor Barron’s administration, Attorney General Robertson, and State Treasurer Kelly were all convicted on kickbacks or extortion charges. Governor Barron was acquitted at his trial but only because he bribed the jury, the crime for which he was later convicted. During this era, every possible way of trading government service for under-the-table payments was exploited. Even state employees were given coupon books and "asked" to contribute (in cash) two percent of their salary to the flower fund.
If state government ran like an organized crime syndicate in the 1960’s, the wide-open corruption of the 1980s took the form of Haitian looting. The players went their separate ways to find storefronts of their liking. Governor Moore, Attorney General Brown, three Senators and two Delegates were prosecuted by the Feds. The reason I refer to this period as "Haitian looting" is that the US Attorney’s office convicted nearly 100 public officials for various crimes. And beyond that, you can add the impeachment of State Treasurer Manchin.
It can be claimed, then, that West Virginia politicians fulfilled at least one of Karl Marx’s philosophies-that of history repeating itself. The Sixties were tragedy, the Eighties farce.
Though the Eighties may seem ancient, it would do well for us to remember that only a decade has passed since the last round of public corruption trials concluded. We are a long way from being out of the woods. Nevertheless, we have arrived at a turning point and the time is right to ask ourselves, "Are we due for another embarrassing, bidecadal housecleaning?"
I posed this question to my 8-ball and the black orb cautiously replied, "Better not tell you now."
One could argue that my trusty psychic errs because democracy is alive and well in the state. There are record numbers of candidates running for office in the upcoming primary election and, on its face, broad competition for public office is a good thing. But are a multitude of candidates, by themselves, enough to avert another disaster? Not unless they are nearly unanimous in overhauling state government.
Our state has used the same business plan since anyone can remember. Government has grown despite promises to shrink it and taxes have soared to unimaginable heights. Next year, over $8 billion will be spent on a population that has shrunk to fewer than 2 million. Yet the answers given for our current problems are the same as they were for our past problems-grow the government by taxing or borrowing and all will be well.
When it comes to funding a centrally-planned society, all roads lead to Rome. And like the Roman model, our capitol has sucked dry the lifeblood of the provinces in order to maintain its grip on power. Our cities risk bankruptcy because of antiquated taxing authority and growing pension debts. Our counties are relics from antebellum days and, aside from their judicial function, courthouses are not much more than clerical offices that cost a small fortune to operate. In the mean, the powers to tax, to spend, and to decide the fate of the economy are concentrated at the state level in the hands of a select few autocrats. The provinces be damned, render all tribute unto Rome!
Lord Acton said, "Power corrupts and absolute power corrupts absolutely." His observation is as timeless as it is true. And it is this very same observation that Hayek used to introduce the chapter, "Why The Worst Get On Top."
What more could I add other than "Three strikes and you’re out."?
If state government ran like an organized crime syndicate in the 1960’s, the wide-open corruption of the 1980s took the form of Haitian looting. The players went their separate ways to find storefronts of their liking. Governor Moore, Attorney General Brown, three Senators and two Delegates were prosecuted by the Feds. The reason I refer to this period as "Haitian looting" is that the US Attorney’s office convicted nearly 100 public officials for various crimes. And beyond that, you can add the impeachment of State Treasurer Manchin.
It can be claimed, then, that West Virginia politicians fulfilled at least one of Karl Marx’s philosophies-that of history repeating itself. The Sixties were tragedy, the Eighties farce.
Though the Eighties may seem ancient, it would do well for us to remember that only a decade has passed since the last round of public corruption trials concluded. We are a long way from being out of the woods. Nevertheless, we have arrived at a turning point and the time is right to ask ourselves, "Are we due for another embarrassing, bidecadal housecleaning?"
I posed this question to my 8-ball and the black orb cautiously replied, "Better not tell you now."
One could argue that my trusty psychic errs because democracy is alive and well in the state. There are record numbers of candidates running for office in the upcoming primary election and, on its face, broad competition for public office is a good thing. But are a multitude of candidates, by themselves, enough to avert another disaster? Not unless they are nearly unanimous in overhauling state government.
Our state has used the same business plan since anyone can remember. Government has grown despite promises to shrink it and taxes have soared to unimaginable heights. Next year, over $8 billion will be spent on a population that has shrunk to fewer than 2 million. Yet the answers given for our current problems are the same as they were for our past problems-grow the government by taxing or borrowing and all will be well.
When it comes to funding a centrally-planned society, all roads lead to Rome. And like the Roman model, our capitol has sucked dry the lifeblood of the provinces in order to maintain its grip on power. Our cities risk bankruptcy because of antiquated taxing authority and growing pension debts. Our counties are relics from antebellum days and, aside from their judicial function, courthouses are not much more than clerical offices that cost a small fortune to operate. In the mean, the powers to tax, to spend, and to decide the fate of the economy are concentrated at the state level in the hands of a select few autocrats. The provinces be damned, render all tribute unto Rome!
Lord Acton said, "Power corrupts and absolute power corrupts absolutely." His observation is as timeless as it is true. And it is this very same observation that Hayek used to introduce the chapter, "Why The Worst Get On Top."
What more could I add other than "Three strikes and you’re out."?
Friday, October 24, 2003
Peter Robbed Again! Capitol Cops Clueless.
I know that you have an opinion of the coal industry. Please put it aside for a moment.
The Coal Workers’ Pneumoconiosis Fund, commonly called the Black Lung Fund, has been around for thirty years. During that period, politicians have changed eligibility requirements. Initially, a claimant needed only to prove employment in coal mining and then have a doctor certify that black lung was present. In the program’s second decade, eligibility rules were tightened considerably by the Reagan administration and afterwards the claims approval rate dropped to about 7% of claims filed. Then, on his way out the door, Bill Clinton loosened the cuffs with a last minute order. It is now projected that 12 claims per hundred will be approved-an increase of 71%.
Regardless of how you vote, you need to realize that the black lung benefit program has always been about political expediency. It is not a humanitarian effort to aid and comfort miners who will die from this horrible occupational illness. It’s just a government program that is periodically massaged to curry favor.
Coal companies that are participating members in the Black Lung Fund (BLF) fund the plan by paying a percentage tax on gross payroll. While eligibility requirements for black lung benefits have ebbed and flowed, the payroll tax rates have remained constant. This anomaly allowed the BLF to grow substantially beyond its initial payout projections.
In 1990, the WV Legislature smelled the giant truffle growing in the BLF. They rooted out $210 million of overfunding and transferred it to the Workers’ Compensation Division. Yes, Workers’ Comp needed a slug of money even back then. There was a proviso in that legislation that Workers’ Comp could only invest the $210M and spend only the income that it earned.
This year, the legislature faced the ignominy of placing Workers’ Comp in receivership and was once again in crisis mode. As expected, they went sniffing for truffles. They found that the BLF was again overfunded and ordered a transfer of $170 million to Workers’ Comp.
But the 2003 Workers’ Comp bill took a different turn when it came to spending the BLF money. Not only does the law allow the new and improved Workers’ Compensation Commission to spend this current transfer of $170M but it also frees the restriction on the 1990 transfer of $210M. Thus, $380,000,000 of coal industry payroll taxes are being spent to stem the growing Workers’ Comp unfunded liability which is $7 billion.[1]
The black lung tax is a specific tax levied on a specific group of taxpayers to redress a specific problem. By rights, the money should either be paid out to black lung claimants or else be refunded to the companies that overpaid the tax.
Failing that, let’s be practical. You might argue that the BLF surplus be used to build new coal-hauling highways or to repair existing roads damaged by overweight coal trucks. You might argue that the surplus be used to reclaim abandoned coal mines. You also might argue that the surplus be used to abate acid water drainage. These damages are, at the least, coal-related.
However, to argue that the BLF surplus be used to subsidize the Workers’ Comp deficit is very wrong.
The WV Legislature created the Coal Workers’ Pneumoconiosis Fund in 1973 to allow coal companies to comply with federally mandated requirements. The Fund is required by law to be, and has always been, separate and distinct from the Workers’ Comp fund, not an adjunct to it. This distinction needs maintained for either plan to have legitimacy.
Whether you call this a "commingling" or a "confiscation" makes little difference. The safe has been cracked, the money is gone. If the taking of BLF surplus is deemed acceptable for this purpose by the citizenry, then what is to prevent the legislature from seizing other trust funds and spending them on the Comp debt?
We are just one step away from making Workers’ Comp a general obligation of the taxpayer. If that step is taken, then the ultimate trust fund is tapped-your individual savings. The road to serfdom is shorter than you had hoped.
There is a great political irony playing out on our mountain stage. Ronald Reagan’s policy changes created the giant BLF surplus. But now that the money has been spent, Bill Clinton’s reversal of fortunes might actually cause the BLF to develop an unfunded liability in future years.
Wouldn’t that just be West Virginia’s luck?
You may now return to your previously-held opinion of the coal industry.
[1] From interview with WV Worker Compensation Commission Director Greg Burton in the State Journal, October 3, 2003
The Coal Workers’ Pneumoconiosis Fund, commonly called the Black Lung Fund, has been around for thirty years. During that period, politicians have changed eligibility requirements. Initially, a claimant needed only to prove employment in coal mining and then have a doctor certify that black lung was present. In the program’s second decade, eligibility rules were tightened considerably by the Reagan administration and afterwards the claims approval rate dropped to about 7% of claims filed. Then, on his way out the door, Bill Clinton loosened the cuffs with a last minute order. It is now projected that 12 claims per hundred will be approved-an increase of 71%.
Regardless of how you vote, you need to realize that the black lung benefit program has always been about political expediency. It is not a humanitarian effort to aid and comfort miners who will die from this horrible occupational illness. It’s just a government program that is periodically massaged to curry favor.
Coal companies that are participating members in the Black Lung Fund (BLF) fund the plan by paying a percentage tax on gross payroll. While eligibility requirements for black lung benefits have ebbed and flowed, the payroll tax rates have remained constant. This anomaly allowed the BLF to grow substantially beyond its initial payout projections.
In 1990, the WV Legislature smelled the giant truffle growing in the BLF. They rooted out $210 million of overfunding and transferred it to the Workers’ Compensation Division. Yes, Workers’ Comp needed a slug of money even back then. There was a proviso in that legislation that Workers’ Comp could only invest the $210M and spend only the income that it earned.
This year, the legislature faced the ignominy of placing Workers’ Comp in receivership and was once again in crisis mode. As expected, they went sniffing for truffles. They found that the BLF was again overfunded and ordered a transfer of $170 million to Workers’ Comp.
But the 2003 Workers’ Comp bill took a different turn when it came to spending the BLF money. Not only does the law allow the new and improved Workers’ Compensation Commission to spend this current transfer of $170M but it also frees the restriction on the 1990 transfer of $210M. Thus, $380,000,000 of coal industry payroll taxes are being spent to stem the growing Workers’ Comp unfunded liability which is $7 billion.[1]
The black lung tax is a specific tax levied on a specific group of taxpayers to redress a specific problem. By rights, the money should either be paid out to black lung claimants or else be refunded to the companies that overpaid the tax.
Failing that, let’s be practical. You might argue that the BLF surplus be used to build new coal-hauling highways or to repair existing roads damaged by overweight coal trucks. You might argue that the surplus be used to reclaim abandoned coal mines. You also might argue that the surplus be used to abate acid water drainage. These damages are, at the least, coal-related.
However, to argue that the BLF surplus be used to subsidize the Workers’ Comp deficit is very wrong.
The WV Legislature created the Coal Workers’ Pneumoconiosis Fund in 1973 to allow coal companies to comply with federally mandated requirements. The Fund is required by law to be, and has always been, separate and distinct from the Workers’ Comp fund, not an adjunct to it. This distinction needs maintained for either plan to have legitimacy.
Whether you call this a "commingling" or a "confiscation" makes little difference. The safe has been cracked, the money is gone. If the taking of BLF surplus is deemed acceptable for this purpose by the citizenry, then what is to prevent the legislature from seizing other trust funds and spending them on the Comp debt?
We are just one step away from making Workers’ Comp a general obligation of the taxpayer. If that step is taken, then the ultimate trust fund is tapped-your individual savings. The road to serfdom is shorter than you had hoped.
There is a great political irony playing out on our mountain stage. Ronald Reagan’s policy changes created the giant BLF surplus. But now that the money has been spent, Bill Clinton’s reversal of fortunes might actually cause the BLF to develop an unfunded liability in future years.
Wouldn’t that just be West Virginia’s luck?
You may now return to your previously-held opinion of the coal industry.
[1] From interview with WV Worker Compensation Commission Director Greg Burton in the State Journal, October 3, 2003
Subscribe to:
Posts (Atom)