Issues
New Cover Oregon leader promises change
– Saerom Yoo, Salem Statesman Journal, Apr. 22, 2014
Cover Oregon’s new interim director Clyde Hamstreet said the state health insurance exchange he is charged with restructuring has committed employees but suffers from a lack of organization…
Our Response & Your Comments
“[L]ack of organization?” We’re shocked! Shocked!
Is he talking about the crew that promised us last September that the Cover Oregon website would be up and running in October? That blew about $200 million on a website that still can’t directly sign up one person? That spent almost $3 million advertising the “website that wasn’t?” That is planning to spend another million telling Oregonians that they have an extra month to sign up? That can’t pay commissions to brokers?
No – Clyde Hamstreet must be talking about someone else. Right?
Link: New Cover Oregon leader promises change
Governors’ Group, including Kitzhaber, seeking new extension of tax credits for wind farms
– Ted Sickenger, The Oregonian, March 31, 2014
A group of governors including Oregon Gov. John Kitzhaber wrote to congressional leaders Monday urging them to approve a multi-year extension of the federal production tax credit for wind farms as soon as possible…
… The cost of wind energy has come down, and the federal tax credit is a crucial piece in making the projects competitive with other resources, particularly with low natural gas prices. Supporters say it helps level the playing field between wind and fossil fuels, and is a critical piece of the financing package for most wind farms…
Our Response & Your Comments
The pentium processor, Java language, DVDs, Viagra.
These are but a few of the products that came on the market since the Federal Government started shelling out tax breaks for wind farms in 1992. What do they have in common? Simple – between then and now they entered the consumer market, achieved wide and enthused acceptance and, best of all, made their owners zillions of bucks.
Then there’s wind power. In the same 22 years since 1992 the Feds, who are always so great at picking winners (Solyndra, anyone?) have doled out around $24 Billion in tax subsidies for an industry that still creates only 4% of U.S. electricity – not to mention driving up electricity costs for some and carving up PETA-knows how many bald eagles.
Hey, Guv Kitz – Isn’t it about time the wind power industry stands on its own? Or do we have to wait another 22 years and blow another $24 Billion of our bucks for you geniuses to figure out that wind power just ain’t ready for prime time?
Link: www.oregonlive.com/…/governors_group_incl..
The other side of the affordable housing equation: Editorial
– The Oregonian, April 5, 2014
The discussion about affordable housing in the Portland area is evolving in important ways as new voices and new ideas emerge…
All of this is encouraging…But housing prices are rising again and various factors – from green-building requirements to system development charges, to prevailing wages to land values exert upward pressure.
Victor Merced has looked at the affordable housing equation from a number of angles – as a senior program officer at Meyer Memorial Trust, director of housing and community services for Gov. Ted Kulongoski and now as executive director of Hacienda Community Development Corp. He’s convinced that lowering the base cost has to be part of the conversation. A partial list of ideas: build more modular homes; loosen green-building requirements for affordable housing; release projects from the prevailing wage…
Our Response & Your Comments
To their credit, The Oregonian’s editors echo a constant complaint about government: That it causes the very problems that it then taxes us to solve. We could point to the housing crisis, the proliferation of guns, and the increase in the uninsured thanks to Obamacare.
The problem: government too often insists on achieving diametrically opposed goals.
Some government agencies want more “affordable” housing. Others want more green energy. But demands for green fuel raise the cost of housing. Some want limited development. That also drives up the cost of houses. Ditto for “living wages” (whatever that means).
Achieving a balance between opposed goals means that some agencies will have to give up money and staffing – the mother’s milk of government – to other agencies. Bureaucrats don’t like that.
And the temptation is for government to take the easy way out and say, “OK, let’s make everybody happy by giving both sides more. We’ll just raise taxes.” And the beat goes on – and on.
Portland Public Schools superintendent proposes 9 percent staffing increase in ‘reinvestment’ budget
– Beth Nakamura, The Oregonian, Feb. 13, 2014
Portland Public Schools officials plan to increase staffing levels by nearly 9 percent in the next school year under a new budget proposed by Superintendent Carole Smith…
… “This proposal represents a significant reinvestment in Portland’s schools and is my first budget message where we are able to strategically invest without simultaneously cutting programs,” Smith told the board on Monday.
Our Response & Your Comments
Did you ever wonder “What’s the difference between ‘spending’ and ‘investment’?”
Well, here it is: When politicians want to confiscate your money and spend it, they call it “investment.” When they’ve spent all that and want more, they call it “reinvestment.”
To us, “investment” implies some sort of ownership, control over the investment, and an expectation of a rate of return.
When the government, rightly or wrongly, “invests” your money in hiring more people, what exactly do you own? Do you control what they do with your money? How would you measure return on the money you “invested”?
We believe that if you want to truly invest your money, send it to our son in law the stockbroker. He’ll: a) do with it what you tell him to; b) send it back if you want; and c) not send you to jail if you don’t send him more next year.
Baltimore poured $300 million into a hotel that has recorded more than $50 million in operating losses.
Wall St. Journal– Steve H. Hanke, Stephen J.K. Walters, March 21, 2014
…[P]roprietors of a sports-themed chain restaurant called the Greene Turtle recently built a rooftop bar…according to the Baltimore Sun, $505,000 of the $890,000 cost came out of taxpayers’ hides as low-interest government loans, much of which will be forgiven if the enterprise meets modest “employees added” targets and stays open five years…
…[A]t the grand opening on Jan. 2 Maryland’s First Lady, Katie O’Malley, presented a governor’s citation to the bar’s proprietors, who happened to be childhood friends…
…In 2006, Martin O’Malley —then Baltimore’s mayor, now the state’s governor and a presidential aspirant—decided that the Baltimore Convention Center needed an adjoining hotel. Private investors disagreed, so City Hall “invested” $300 million to enter the hospitality industry. Since opening its doors in August 2008, the Hilton Baltimore—city-owned but managed by the global hotelier—has recorded more than $50 million in operating losses…
Meanwhile, the nonpartisan Tax Foundation reports that a net of 66,000 residents and $5.5 billion in taxable income fled Maryland in 2000-10.
Our Response & Your Comments
We rarely venture east for our tales of government buffoonery, but here Baltimore provides lessons for every state, county and city.
Banks are pretty darned good judges of who should get credit and who shouldn’t. That’s because they have skin in the game – their own money. Governments are lousy at it (see “Solyndra”). The only skin they have in the game is yours. Moral: If banks won’t make the loan, government shouldn’t.
Governments are made up of politicians. Politicians need to get re-elected or re-appointed. So they need votes. It takes money to get votes. Moral: even the most honest ones are tempted to give rewards to get money.
For every government winner there’s a loser. Winners are too often “childhood friends” (see above), brothers-in-law or golf buddies. Losers? Whoever didn’t get that contract and,
ultimately, you the tax payer.
Oregon Lawmakers Try To Avoid Another Cover Oregon Fiasco
– Northwest News Network as reported by OPB
March 4, 2014
The website for Oregon’s health insurance exchange still isn’t fully functional.
Oregon lawmakers say they want to avoid another high-profile tech blunder like the problems facing the state’s online health insurance exchange.
There’s an independent review of the beleaguered project under way, but Oregon lawmakers say they want to prevent future problems. The Oregon Senate approved a bill that aims to beef up oversight of IT projects. And the House passed a measure to extend whistleblower protections to Cover Oregon employees. It also expanded the governor’s power to remove Cover Oregon board members.
Democratic state representative Shemia Fagan said the legislation isn’t meant to be a cure-all for Cover Oregon. But, she added, “This bill does create tools so as soon as (we) know what happened and who caused it, swift action can be taken on behalf of Oregonians.”…
Our Response & Your Comments
Our question is, “Why did these geniuses allow this to happen in the first place?”
For nearly $200 Million Oregon built a system where:
No one person was in charge
Decision making was spread out
The many agencies involved didn’t communicate
It wasn’t tested front to back
People misled Oregonians. In late Sept. Cover Oregon managers assured everyone that the site would open Oct. 1.
These are very, very basic principles for doing anything in business.
We have one final question for Guv Kitz: “Did you haul senior execs into your office around Sept. 15 and do a dry run on Cover Oregon? If you did, you knew it wouldn’t work. If you didn’t, it says much about how you manage issues that are of vital importance to you.
Why Lane County Has Cavities & Micronesia Has a Dentist, Part 3
The last two issues of Lane Solutions told the story of local dentist Cedric Hayden, DDS. He spent $200,000 of his and his brother’s money to outfit a mobile dental clinic, which they wanted to park in rural areas of Lane County and offer free dental care to low income residents.
But not a single rural city wanted it. Why? Most thought it was a great idea – just not in their towns.
Connecting the dots, Dr. Hayden saw a sad pattern emerging among the “public servants” who profess to care so very much about their less well off constituents and found a place where his skills and compassion would be welcome.
The place? Chuuk, Micronesia, where around 55,000 people have not one dentist.
Chuuk welcomed Dr. Hayden, offered him a place to park his mobile clinic and a six month license to practice.
His first team of volunteers spent their Christmas vacation filling cavities in Chuuk. Dr. Hayden plans to spend three months each year there offering dental care.
We say, “Dr. Hayden – Thanks for your generosity. Too bad it wasn’t welcome here.”
We’re From the Government – We’ll Say Whatever We Want
The Salem Statesman Journal March 6, 2014
Over the protracted sobs of her mother and maternal grandmother, a Marion County Circuit Court judge Thursday today found no reason to reverse a decision made in January to reunite a 6-year-old girl with her father (Alfonzo Pantoja) in Mexico…
Grandmother Kerrie Lechuga argued that Pantoja’s Salem police record and a domestic violence conviction made him unfit to parent her granddaughter in a foreign country. Lechuga’s own daughter, Gloria Segura, has an admitted methamphetamine problem, is on parole and does not have custody of “Susana.” The child has been living with a foster family in Salem…
…(Judge Jamese Rhoades) acknowledged that sending the child to live in a foreign country might not seem like a perfect solution, but just because it’s not what the child is accustomed to does not make it unhealthy or unsafe. (emphasis added)
Our Response & Your Comments
Forget that this story touches on immigration. Our point is that government will use any argument to justify what it needs to justify.
Think about the last time you read about why we couldn’t deport a child to another country. The argument probably was “America is all she’s known. She grew up here. She doesn’t speak (insert language).” Sounds reasonable. How come it doesn’t apply to the little girl in Marion County?
Because “public servants” will say what they need to say – no matter how contradictory.
Remember when ObamaCare would create jobs? Now it’s causing people to lose jobs. But that’s OK – because they’ll be free to write poetry, start a garage band or otherwise “pursue their passions,” say those in charge.
Remember when ObamaCare wasn’t a tax? At least until the Administration saved it by testifying to the Supremes that it was a tax.
Our point – ignore the, uh, “fluid” arguments and use your common sense to decide if a government action is good or bad.
Where Cover Oregon went wrong: Guest opinion
– The Oregonian, by Charles Jennings, CEO of Swan Island Networks, Inc., February 22, 2014
…I decided to do a rare bit of housecleaning in my home office. As I was tossing out unwanted mail, I noticed the October, 2013, issue of one of the many high-tech trade magazines that periodically show up at my house, unsolicited. What caught my attention was a teaser on the cover about an article inside….
The project? Cover Oregon.
Here are a few choice quotes from the article:
Article subhead: “With the launch of Cover Oregon, state officials expect their commitment to design thinking to pay off.”
“Thanks to design thinking … the Oregon team feels a lot more confident of hitting the mark,” said Cover Oregon CIO Aaron Karjala…
As we now know, the result of all this balderdash was a high-tech train wreck.
But let’s be fair: Cover Oregon is hardly the first big government IT project to fail. The list includes the Affordable Healthcare website and various sustainable energy programs under President Obama; the SBInet border control project under President Bush ($1 billion spent, zero results); and countless others….
Our Response & Your Comments
“Cover Oregon is hardly the first big government IT project to fail. ”We wonder why?
First, There’s a nasty little secret about government. It’s that is sees its first job as (are you ready?)…creating more government. More government means job security, more people to hire who will produce more government and, best of all – more money, which will lead to more governmental functions and (you guessed it) more government.
When you or we need a new sofa, table saw or whatever, our kneejerk reaction is to go to stores, identify the best product for the lowest price and buy it. We don’t start building the sofa or saw ourselves.
Not so with government. Because they know that if they do it themselves they’ll need to hire people, managers to manage them, assistants to serve them and lawyers to defend them. Who will hire more people, etc.
Does it cost more? Sure, but they have an infinite supply – your money. Does it result in “IT train wrecks?” Yeah – but you’ll pay for that, too.
So remember “The Iron Rule of Government:” More government always means even more government – at your expense.”
Why Lane Co. Has Cavities & Micronesia Has a Dentist , Part 2
In Lane Solutions Issue # 58 we introduced readers to Dr. Cedric Ross Hayden, DDS. His goal was simple – he and his brother had spent $200,000 of their money to construct a mobile dental clinic. Dr. Hayden wanted to take it around Lane County, park it in rural, underserved cities and provide free dental service to low income residents. Sounds like a good deal. Right?
Here’s where it all went wrong. Rural cities didn’t want it. One said they had a zoning ordinance prohibiting shipping containers from being parked in town. Yes, Dr. Hayden’s clinic was a reconfigured shipping container. But inside, you could barely tell it from your own dentist’s office. Would the city give a waiver for medical or dental equipment? “Nyet,” ruled the commissars.
According to Dr. Hayden, who only wanted to serve the poor, about whom these cities say they care so much, the typical reaction was “Great idea – just not in my back yard.”
Watch for Lane Solutions Issue #60 and find out why a faraway island country welcomed Dr. Hayden with open arms – and open mouths waiting for a good dentist.