Fisker is the Second Shoe to Drop

A story on Delaware Online today (sorry, I refuse to subscribe to the death of another tree in order to boost News Journal sales so I am not sure if it was actually printed in the paper version) displays the folly of American green energy policy.  Just a month after Blue Water Wind failed and cost us untold millions of dollars and just over a month after Fisker announced that their car faced similar battery problems as the Chevy Volt, the embattled car company, who has pushed back their production dates more than 2 years, has laid off 25 workers and cut contracts with a number of subcontractors.  Fisker has been touted as the next big thing to prove that the government's green energy strategy works.  Yet from it's inception it has needed massive government subsidies and government assistance in the form of sweetheart land deals to stay afloat.  After promising Delaware's largely union autoworkers big payouts if they could just hold on through the retooling of the former GM plant, the company has all but dashed those hopes.  Thousands of Delaware autoworkers who have been home after being laid off by GM and Chrysler and waiting for Fisker to start up now have little hope for a return to automobile manufacturing in Delaware.

On this blog back in September, we talked about Delaware's Solyndra lesson.  We pointed out the problems with Fisker's numbers and we referenced a number of other articles that had similar concerns.  The bottom line, many of us saw this coming but the government ignored us at best and made fun of us at worst.  They called us crazy and yet here you can see the results of government attempting to pick winners and losers.  In the end the taxpayers lose when their money is taken and wasted, the employees lose when they end up out of work and the communities lose when businesses close their doors and the ancillary jobs leave town. 

Mark this date.  In December of 2011, I gave a talk at a meeting of concerned citizens where we covered a range of topics including green energy, fracking and the cost of our government's green waste.  You can see the presentation from that meeting here.  The next green energy disaster to rock Delaware will be Bloom Energy who is relying on Delmarva Power to subsidize its Bloom Boxes by tacking on a $2-$4 charge to each bill.  Government cannot and should not pick winners and losers.  This is yet another reason why we simply MUST put people who understand our markets and the design of our government in the places currently occupied by corrupt officials more interested in cronyism than their constituents. 

New Castle County/ public employees reach sweet deal with taxpayer dollars

Readers of this blog will remember back in January when we did a story on a report from the Wilmington News Journal confirming an allegation made during the 2010 U.S. Senate campaign that New Castle County was broke.  Dace Blaskowitz, a political independent, found that the "NCCo government is simply unsustainable" and that the answer to their rampant overspending has consistently been higher and higher property taxes and sewer fees.  You may also remember that Mr. Blaskowitz found that 75% of New Castle County government costs are tied up in personnel and that is after a 2.5%paycut in 2009 and anotherin 2010.

Blaskowitz suggested a reduction in staff levels and contraction of benefit obligations yet New Castle County has gone on a hiring spree lately.  He also suggested some minimal concessions from the unions with regard to pay/benefits might be necessary to close the gap between revenue and expenditures.  The Clark Administration has said that it will work with the unions but that it is getting serious about the County finances.  Today however, sources within the County unions confirm that a deal has been reached and will be signed tomorrow.  The deal is reported to be a two year deal with county employees contributing $1200 per year to a healthcare savings fund.  In exchange for this surcharge payment, county employees will get a 5% increase (covering their two 2.5% reductions in the past 2 years) plus 3 new paid fulough days each year.  County employees will not have any holidays or current off time taken away.  Sources say that County Council Executive Paul Clark will sign the deal tomorrow afternoon.

Does this mean that our County finances are back in order?  Just a month ago when County Council passed the FY 2012 budget, Clark was talking about another 2.5% cut and other concessions from the unions.  In fact, his budget passed, despite strong opposition from Council President Kovach with the specific plan to make those cuts.  Kovach cited concerns that the budget did not properly address the current debt and also questions as to how unions would rollback 5% of their pay and then agree to ANOTHER cut of 2.5%.  Also, is it possible that the 3 extra paid furlough days are equal to that 2.5% cut?

The News Journal Strikes Again

Last night Founders Values had our annual membership meeting.  This meeting revolved around the 2nd Amendment and that is always a good draw.  Even with the expectation of poor weather and some late notices, we had a good turn out.  One of our members, Bob Wilson, approached me before the meeting and asked where I found some information that I had written about concerning Delaware's pension and retiree health care benefits.  I told him that I had taken my information from a Pew Center Study that was done in 2008 about our state of underfunding.  As you may note, the Pew Center is no right wing think tank, this isn't information from the Heritage Foundation, Americans for Prosperity or some other such conservative organization.  The Pew Center leans left and is far more optimistic about governments deficit spending than even most Americans are.  That's why when they say that our State Employee Pensions are underfunded to the tune of $600 million and our retiree health care plan is unfunded to the tune of $5.4 billion, I take notice.  When they post a study that says we should be concerned about the retiree plan that is LESS THAN 2% funded, I think it's worth citing. 

I soon found out why he was so interested in my source.  Bob had written a letter to the editor of the News Journal.  He's written letters before and almost always received a verification call from the same person.  This time the call came from a different person, John Sweeney.  Sweeney is the editor of the News Journal editorial pages so it's understandable that he might jump in and make a verification call on an editorial submission.  The problem comes when you read the letter Bob submitted, and the one that was printed.  I'll start with the version the News Journal printed:

In the March 11 News Journal, the spokeswoman for the Delaware State Education Association stated that it has a history of collaboration with the state government. My question would be, “Who are they collaborating against?” In this situation, it could only mean the taxpayers of Delaware. Is this a good thing?
The executive director of the American Federation of State, County and Municipal Employees said that any kind of effort to change the status quo would cause the unions in Delaware to unite.

The only reasonable conclusion would be that they would unite against the taxpayers and citizens of Delaware.

You know, the ones who have to pay for all of this.

Does anyone think that all of the unfunded liabilities may have come from this type of cooperating and collaborating?

Bob Wilson, Newark

And here is what Bob ACTUALLY wrote:

According to the Common Sense Communities Society, Delaware's public employee pension fund is underfunded by $600 Million dollars and the public employee retirement health care fund has an unfunded liability of $5.4 Billion dollars.  Now what can possibly go wrong here?

In the March 11th News Journal the spokeswoman for the Delaware State Education Association stated that they have a history of collaboration with the state govt.  My question would be who are they collaborating against?  In this situation it could only mean the taxpayers of Delaware.  Is this a good thing?

In the same piece the Executive Director of the AFL-CIO, who happily is also a member of the state House of Representatives, stated that the Unions have been so successful in the political process that they don't even have to negotiate with the state.  What!!  All they have to do is tell the state what they want and they get it?  That's a sweet deal!

The executive director of AFSCME said that any kind of effort to change the status quo would cause the Unions in Delaware to unite.  The only reasonable conclusion would be that they would unite against the taxpayers and citizens of Delaware.  You know the who have to pay for all of this.

Does anyone think that all of the unfunded liabilities may have come from this type of cooperating and collaborating?

Nah, nothing to see here, just keep on moving.

Bob Wilson
Newark

Now, I understand that the editorial pages retain the right to edit submissions, but to TOTALLY change it in such a drastic way by omission is rather pathetic.  I'm urging you to call the News Journal and demand an answer as to why this letter was edited to such an enhanced degree.  The removal of all of the facts make the op-ed almost entirely incoherent.  You can call the News Journal at the number below:
302-324-2500
Be sure to mention that John Sweeney should apologize for his actions publicly.

Delaware GOP filed lawsuit against wrong Republican candidate for U.S. Senate

That's a big oops. It turns out that there was some funny business when it came to campaign finance in the Delaware Republican Party but it wasn't committed by Christine O'Donnell. Instead the violations were committed by none other than former Congressman Mike Castle. The Delaware GOP overtly claimed that O'Donnell used campaign funds for personal expenses in a suspicious pattern in 2009-2010. This argument is largely based on the idea that she had not filed a Statement of Candidacy (the form required by federal election law for a candidate to be official). The following is information that has recently come to light:

Yet O'Donnell's "pattern" was similar to Mike Castle's "pattern" of campaign spending, except that O'Donnell declared herself a candidate (technically, exploring a candidacy for office) in January 2009, whereas Mike Castle did not actually become a candidate until October 2009. (Actually, O'Donnell's pattern of campaign spending in early 2009 is more obviously proper than Castle's.)

The DEGOP's lies were based upon the falsehood that O'Donnell was not a candidate for office at the time the expenses were incurred. In fact, she undeniably was.

From January 2009 through June 2009, Mike Castle used campaign funds for:

$587.64 for food & beverage at CAFE GELATTO, paid on February 6, 2009. (Remember: Castle's Statement of Candidacy was filed October 19, 2009.)

$2,588.88 for food & beverage at the Capitol Hill Club restaurant in Washington, DC, paid between March and May 2009. Again, Castle filed his Statement of Candidacy in October 2009. The U.S. Senate campaign was up in Delaware, not in Washington, D.C. However, Castle was a Congressman in D.C., eating out in Washington, D.C. off of campaign contributions.

$245.77 at WHO'S COOKIN' for FOOD & BEVERAGE, paid on 3/27/2009

$594 at FLOWERS BY YUKIE between January and March 2009.

$219.80 at HAPPY HARRY'S on 1/14/2009

$13,499.35 in unspecified credit card charges, creating a "slush fund" for Mike Castle's expenses that are not identified on FEC reports.

$873.70 at the TIMBERLAKE restaurant down in Washington, D.C., not in Delaware where the campaign was, paid on 12/19/2008. Castle was of course a sitting Congressman at the time. However, his personal expenses for food down in Washington, D.C. should not be paid out of his campaign funds up in Delaware. Congress was in its Christmas recess on December 19, 2008. Food related to either Castle's Congressional activities or personal living in Washington, D.C. should not be paid out of campaign funds for the election up in Delaware.

$120.00 at GALLAGHER & GALLAGHER for food & beverage paid on 4/29/2009.

$1,298.67 to COMCAST cable from January 2009 through June 2009 -- again months before Mike Castle was actually a candidate.

$500 for gala tickets to the Chowder & Marching Club -- IN MARYLAND! This was not an event in Delaware.

$546.25 to AMTRAK for travel from March 2009 to May 2009 - before Castle was a candidate.

Mike Castle -- although an elected official for almost 40 years -- has somehow amassed a personal fortune worth over $3.5 million. Perhaps we've discovered part of Mike Castle's road to riches: Pocket his congressional salary, then live off of campaign donations for his personal living expenses? At least if those accusations are hurled without any foundation at O'Donnell, might we ask the same questions about Mike Castle? Or are questions about certain people off limits?

While Christine O'Donnell was clearly a candidate for U.S. Senate in January 2009, so that all of her campaign expenses are legitimate, it is Mike Castle who fails the very same test advanced by the Delaware Republican Party. The smears spread by the DEGOP were then handed to Ginger Gibson at the Delaware News Journal, who published a March 2010 hit piece smearing O'Donnell. These charges were later picked up by Citizens for Responsibility and Ethics in Washington in a criminal complaint based on David Keegan's affidavit.
On March 20, 2009, O'Donnell filed a "Statement of Candidacy" for the 2010 U.S. Senate race with the Federal Election Commission.

In December 2008, O'Donnell posted a message on her 2008 campaign website urging volunteers to keep their campaign signs for probable use in 2010. In January 2009, O'Donnell began informing supporters privately of her status as an exploratory candidate for the 2010 U.S. Senate race. Her campaign finance reports show trips to Washington, D.C., to meet with donors and potential supporters, as well as meetings in Delaware with potential donors and supporters.

The Statement of Candidacy is normally filed only after a person has been a candidate for a while, and exceeded a $5,000 threshold of donations or expenses. So O'Donnell was a candidate prior to March 20, 2009. Castle, however, exceeded the $5,000 donation / expenditure threshold very early in 2009, but Castle did not file his Statement of Candidacy until October 2009. Therefore, Castle did not have the intent to be a candidate until October, and from January through September 2009 was using campaign funds for personal purposes. At least, that is the very same argument used by insiders in attacking Christine O'Donnell.

The Delaware Republican Party started in December 2009 -- weeks after Karl Rove's attempts failed at co-opting the tea party movement for Mike Castle -- to circulate smears, likes, and slander against Christine O'Donnell. The "DEGOP" was obligated to remain neutral among primary candidates for the Republican nomination until the State GOP endorsing convention held March 13-14, 2010, in Rehoboth Beach. Instead, the DEGOP not only launched assaults to sabotage Christine O'Donnell to help left-wing Mike Castle (a fiscal liberal and social liberal), but did so with savage personal attacks which were lies and slander.

With this kind of dishonesty by Tom Ross and the Delaware Republican leadership, it is time to start over with a fresh team of leadership for Delaware's Republican future.

With these new revelations about the 2010 Republican candidates for Senate, I hope that intelligent moderate Republicans, who were sucked in by the lies of Tom Ross, Priscilla Rakestraw and Mike Castle will hold them accountable by their own standards and call for their removal and dismissal. Ross, Rakestraw and Castle have done damage to the party that will linger for many years. Their plan appears to have been to burn the party down if they couldn't maintain control. I sincerely hope that the next chair of the Delaware GOP, whomever they may be, moves forward and brings along people Like Glen Urquhart and Christine O'Donnell who energized and revitalized the Delaware GOP in 2010. They deserve not only our thanks but our apologies for the way they were treated.

New Castle County Democrats on the Lamb Wisconsin Style

I received an email last night from a good friend in the Delaware conservative movement who was warning about an impending power play by the New Castle County Council.  This is the message:

Tue March 1st at the New Castle County Bldg at 800 N. French Street at 4:30pm New Castle Council meets.  The New Castle Council will meet to try to strip Tom Kovach of some of his powers and undo rules of order that address the corruption in bidding and development.

We need you there. 

I immediately thought that I should go to this.  It was last minute, and with 4 kids, last minute sometimes just doesn't work out.  My wife and I scrambled to make sure we had kid coverage and I was able to leave (albeit a little late) for Wilmington.  I walked in about 25 mins late and was greeted by an almost empty room.  Well, almost empty of legislators.  By the time I arrived only Council President Kovach and Councilman Weiner were still in the room.  I later found out that of the 13 members of council, the following showed up:

1. Councilwoman Diller (D)
2. Councilman Powers (D)
3. Councilman Tackett (D)
4. Councilman Weiner (R)
5. Council President Kovach (R)

Councilwoman Kilpatrick called in sick and Councilman Cartier was out of town, both announced their intent not to show.  The rest of County Council were no shows.  They'd pulled a Wisconsin.  Why?  Well they'd gotten word that THE PEOPLE had been notified that there was to be a vote to strip the Council President of some of his powers.  Word got out that we would show.  And so the Democrats (minus the few good government supporters above) decided since we WERE going to show, that they would not. 

But their motion is not going away.  Instead they are going to wait until the next Finance Committee meeting to bring it up.  That meeting takes place next Tuesday at 1:30PM.  They're doing it then because they figure that many of us who came, wanted to come or tried to come tonight will not be able to come then.  They don't want the public to know what is going on in County Council.  People like Tim Sheldon and George Smiley are neck deep in some serious corruption when it comes to land use and they've been using suspect methods to pass their bills.  Kovach has called them out on their misdeeds and now Council is reacting viciously.  Adam Taylor over at the News Journal (one of the few good guys) has an EXCELLENT piece on the moves Council has made to restrict Kovach's ability to check the Democrats.

I say we show up enmasse on Tuesday at 1:30PM at the City County Building on the 8th Floor.  It's time we stood up for the people attempting to stand up for us.  In addition, if any of the following are your councilmembers, please send them an email about being absent from their duties today:

1st District - Joe Reda

4th District - Penrose Hollins

7th District - George Smiley

8th District - John Cartier - he was excused from the meeting but is in favor of changing the rules because Kovach is calling the Dems bluff

9th District - Tim Sheldon

10th District - Jea P. Street

12th District - Bill Bell