Delaware Health Security Act – Obamacare…Locally

That’s right folks, you thought Obamacare was about to die a brutal partisan death at the hands of the 5 “conservative” Justices on the Supreme Court?  You thought America was going to be spared the pain of trillions of dollars in healthcare costs thanks to the monstrosity that is Obamacare?  You thought that single payer healthcare was about to be defeated?  You thought that finally, public dislike for the healthcare law had won out?

Wrong!  Now, with Obamacare dying a brutal death nationally, the states are taking up the cause and rallying to make sure that if Obamacare is defeated by the High Court, that it will still be implemented.  In a move that can only be described as brazen and a direct show of force, the Delaware Democrat Party, led by Jack Markell (who like Obama, has hidden behind a prominent Democrat Representative with regards to sweeping healthcare legislation) has pushed out House Bill 392, the “Delaware Health Security Act” with just 7 days left in session.  HB 392, is universal healthcare coverage just like Obamacare except, the Delaware Democrat Party isn’t shying away from something that Obamacare had to hide, it’s a single payer system.  In fact, the law specifically calls itself a single payer system a number of times.

What is a single payer system?  A single payer system is where all the citizens are lumped into a single large insurance pool, regardless of medical status and pay into the pool.  The pool owner (in this case the State of Delaware) then becomes the “insurance provider” and replaces any and all private insurance companies.  That’s right, I said REPLACES ALL PRIVATE INSURANCE PROVIDERS.  So if you like your insurance…oh well.  Think of it as if all of Delaware, every person in the state, was suddenly thrust onto Medicare/Medicaid.  That’s basically what single payer is.

It sounds like single payer could reduce costs, has it been tried anywhere else and how did it work?  Like many progressive utopian ideas, single payer healthcare does SOUND great, that is until you look at how it actually works and how implementations around the world have worked – or – well, not worked so well.  See, the large pool of Delaware citizens (900,000+) would cost a lot of money to insure.  Money we don’t have today.  Delaware already has the 8^th highest Medicaid expense per capita in the country according to the Kaiser Family Foundation.  More money is spent today on Medicaid than on education in Delaware which means that Medicaid occupies more than 1/3 of the entire state budget.  This is with 1 in 4 Delawareans receiving Medicaid assistance.  Now imagine if you multiplied that to 4 of every 4 Delawareans on Medicaid.  The budget would explode.  Of course, the folks in Dover do have a remedy for this.  Their plan is to create an additional 4%-9% tax (and we all know that “planned taxes” are always MORE than we’re told) on Delawareans and Delaware businesses.  As healthcare costs rise, so will the tax burden.  Just to make sure we’re not taking this out of context, let’s look at the wording of the bill itself:

§1606. Purpose of the Delaware Health Security Act.

The purposes of this Chapter are to:
(1) Guarantee every Delaware citizen, and out-of-state citizens who receive health care coverage from Delaware employers, all necessary health care services offered by the provider of each citizen's choice;

Where else has this been tried and how has it worked?  The single payer system, also known as “Socialized Medicine” is the system in use in many European nations and in Canada.  Canada is the source most often cited case and so let’s take a look at the Canadian model:





Reuters reported that back in 2010, Canada began to reassess its healthcare system as costs soared.  In the piece, medical costs for Canada’s single payer system ate up 40% of the budgets for provincial governments (similar to our states) and that was at a total cost of $174 billion.  At the end of last year, the Canadian Institute for Health Information issued a report that health spending in Canada topped $200 billion.  They listed three main things as major contributing factors to the increase in costs.  Compensation of healthcare providers, increased use of services and an evolution in the types of services were at the top of the list.  This is an interesting problem because on one hand, you want doctors to be well paid so that the smartest and most talented people will seek out that role as a career, on the other hand, when you’re a government and spending tax dollars, you have to maximize your savings.  This is why government sponsored medicine is such a slippery slope.  How does Canada’s compensation for doctors compare to the U.S.?  Well, recent studies have found that U.S. doctors make far more than Canadian doctors and there are more doctors in the U.S. per capita than in Canada.  The question comes down to this, would you prefer a public system where doctors are paid less and less each year (unless spending soars with the salaries of doctors) and see more and more talented individuals not choose a career as a physician or would you prefer a private market solution where the cream of the crop rises to the top and we get the best care available?  Increases in the use of services, especially as the population gets older (as it is here in America) rose dramatically.  The types of services that Canadian patients are receiving is also a part of that cost increase.  Now, it should be pointed out that routine treatments received here in the U.S., such as CT scans and MRI machines are new technology in Canada.  How much different?  There are nearly 8,000 MRI machines active in the U.S. today while just 281 devices are active in Canada.  To put that in perspective, for every 1 million Americans, there are 26.5 active MRI machines while in Canada there are just 6 for every 1 million people.  The numbers are staggering and if healthcare costs are soaring in other countries who employ socialized medicine with inferior and less costly treatments, what can Delaware expect?

Ok, so costs will rise but what about the quality of care?  Canadians wait for their healthcare.  Today, in Delaware, if you are sick, you can see your family doctor in a matter of a few days or even a few hours based on where you live and the severity of your illness.  Hospital visits are often complained about for wait times in the scope of hours and wait times to see specialists are again days to perhaps a couple of weeks.  A 2009 study by Merritt Hawkins in 15 major U.S. cities found that the longest wait time to see a family doctor or a specialist in the U.S. was 49.6 days in Boston (Massachusetts already practices a form of socialized medicine similar to Obamacare) .  That’s a maximum of 7 weeks and the next closest city, Philadelphia clocked in at just over 3 weeks.  These are maximum wait times.  In Canada, general surgical specialty patients are experiencing average wait times of 11.3 weeks.  That’s nearly double the longest wait times experienced in the U.S.  For neurosurgery, Canadians can expect to wait almost 32 weeks or 7 months and for orthopedic surgery, the wait is expected to exceed 8 months.  These are median actual wait times in Canada.  To put this in perspective, the overall median wait time for specialty treatment, from primary care physician to treatment is 17.3 weeks or 4 months.  That’s almost three times the clinically reasonable wait time of 6 weeks and almost 4 times the wait in Boston.

So, after reading this, are you excited about the new single payer healthcare system, matching Canada’s system that is coming to Delaware?  No?  Me either.  Folks, now is the time to make your voice heard.  Now is the time to stand up for yourselves and tell the politicians in Dover that enough is enough.  Delaware might not be in the same fiscal condition as California (yet) but we’re definitely not helping ourselves by continuing to tax and spend like our economy isn’t in crisis.  More than 30,000 Delawareans are out of work today and our fiscal stability is teetering on the brink of disaster.  We HAVE to stand up and step out of our comfort zones.  It’s time to show these politicians in Dover that we’re not going to keep sending them back to Dover to make things worse.  Send a message, send John Kowalko, Earl Jaques, Ed Osienski, Bruce Ennis and Tony DeLuca home. 

Senator Ennis is facing T. Scott Unruh this November…support him by clicking here and let’s make sure Bruce Ennis goes home.

I am opposing Senator DeLuca this November…visit my website by clicking here and tell the Dover elite that we’re not going to accept the same old thing anymore.

Kowalko, Jaques and Osienski are currently unopposed.  I challenge you to find someone to take on these brazen characters.  Who’s going to stand up and be counted?

The News Journal Dutifully Defends Fisker

The News Journal has a story yesterday on Fisker Automotive's survivability.  In it they defend the start-up against every question and call any comment that questions the ideas of the company and the  government "politically motivated".  I'm sorry News Journal, but what's politically motivated, is your fish wrap paper.  This is the longest government propaganda piece I have ever read.  When the Caesar Rodney Institute looked at the Fisker business model, it questioned whether or not the company could meet rather lofty sales goals.  Since then, Fisker has twice drastically revised their sales goals as production delays, cash flow problems and problems with the vehicles battery system.  I wouldn't call that "politically motivated" questioning.  I'd call it looking at the facts and asking questions that make sense instead of blindly buying whatever line of bull that the government throws at you.  Let's tackle some of the problems with the News Journal's defenses of Fisker (why a NEWS organization can't just report the facts and call a spade a spade, I'll never understand).

Fisker's Funding

One of the knocks against Fisker is that it has drawn more support from the government than from private capital.  The News Journal claims in their piece that Fisker has raised $850 million in private capital compared with $528 million in Federal loans, $21.5 million in Delaware direct aid (grants that will not be paid back), a sweetheart no bid land deal on the old GM Boxwood Road plant (saving them tens of millions of dollars on property costs) and untold amounts in California state aid to the start-up company.  USA Today however, gathered different information from the Department of Energy who reviews the funding of companies to whom they give grant and loan money.  They say that Fisker has only brought in $650 million in private equity compared to at least $550 million in government promised aid.  That's a 54% private funding ratio which no other industry could survive under.  That means 46% of the company is subsidized by government funding.

Talking Points

As is typical from the News Journal, they sought out as many left wing sources as they could.  Not hard in Delaware where the far left has bought up every office they can find.  In fact, the only alternative voice they found was Delaware GOP Chairman John Sigler and they took his quotes out of context.  Let's cover some of the more ridiculous statements:
Josh Freed - The Third Way (Progressive Soros funded group)

“Frankly, it would be the equivalent of the Internet sector finding themselves under political attack in the early ’90s as they emerged or automobile companies coming under attack in the early 1900s as they were becoming competitive with horse-drawn carriages and trains as a mode of transportation,” said Josh Freed, vice president for clean energy at Third Way, a centrist Washington, D.C., think tank.

Now this sounds incredibly thought provoking but it's not the first time we've heard it...Obama's Delaware bred messaging czar David Plouffe said this:

“Well, let’s step back for a minute. We have to win this race, you know, we–if we don’t win the clean energy race in terms of technology, innovation, and jobs, and cede it to other countries, we’re not going to have the century–we need this. It’d be like us ceding the automotive industry race or the Internet and computer race.”

Similar points, same problems.  Here they are.

1. Auto companies - The automobile industry wasn't subsidized by the government in the 1900's.  Henry Ford didn't get government help to develop the assembly line and even the oil and gas industry didn't receive government tax breaks until 50 years after it launched.  So if we want to treat the green energy industry like the auto companies, we should remove all funding.
2. Internet - The internet's backbone was indeed created by the government but that was in the 50's and 60's when the government was using it as a defense network.  By the 1990's, the backbone existed and there was little to no government funding for private internet companies.  In fact, the 90's internet boom was such a boom because the government WASN'T pocketing profits.  The money was changing hands in the private sector.

Senator Anthony DeLuca

Senator DeLuca was quoted as saying that "tax incentives and government backed loans are not new" concepts.  Well Senator DeLuca is right but that doesn't mean that tax incentives and government backed loans are right and proper simply because we've been doing them for a while.  Holding individuals as slaves wasn't any more right in 1860 than it was in 1776 simply because it wasn't a new idea.  It was wrong all along the way because it's wrong.  The government picking winners and losers is simply a losing proposition and Delaware has proven that first with Blue Water Wind and now with Fisker.  Both are government supported programs and both have or are failing.

Alan Levin

Alan Levin, DEDO Chief and resident Markell Administration "Republican" whose very presence on the staff deflects most criticism of the Markell Administration's failed economic policy from Republicans, said that the "shortest way to fail is to not try".  An awesome bumper sticker for sure but light on substance.  In this case, you don't have people saying do nothing.  You have people saying that what you're doing doesn't make sense and that you should look to solid, tried and true methods to lift us out of the depression we are in.  You have people who understand that when the chips are down, every dollar counts.  You don't spend your last dollar on a lottery ticket.  Mr. Levin is known locally for creating "Happy Harry's" a discount drug store that was eventually bought for millions of dollars by Walgreens.  Mr. Levin knows better than anyone, how businesses should work.  It's curious then, that someone so steeped in business acumen would not understand the simple fact that a start-up company with no name recognition, no long term reputation and little to no advertising who plans to immediately leap frog two well funded, long established rivals and capture 20% of  the market within 2 years is a little far-fetched.  Either Mr. Levin isn't as smart as we think he is (unlikely) or he's schilling for the Governor to score political points.

The above points are just a few examples of truth over the fiction of the News Journal puff piece.  Folks, we're dealing with a lack of responsibility here.  From the top of our government to the media who props them up we have a machine that just keeps wasting more and more money, time and prosperity on their friends and campaign donors.  We've got to wake up.  Here's an exercise for you, read the News Journal piece and see if you can find the inconsistencies with reality then post them here.

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. 

Obama's SOTU as compared to Emperor Palpatine

Emperor Palpatine in italics
Barack Obama in Bold

Citizens of the civilized galaxy, on this day we mark a transition. For a thousand years, the Republic stood as the crowning achievement of civilized beings. But there were those who would set us against one another, and we took arms to defend of way of life against the Sepratists. In doing so, we never suspected that the greatest threat came from within. 

 
The greatest blow to confidence in our economy last year didn’t come from events beyond our control. It came from a debate in Washington over whether the United States would pay its bills or not. Who benefited from that fiasco?
I’ve talked tonight about the deficit of trust between Main Street and Wall Street. But the divide between this city and the rest of the country is at least as bad – and it seems to get worse every year.

The Jedi, and some within our own Senate, had conspired to create the shadow of Separatism using one of their own as the enemy's leader. They had hoped to grind the Republic into ruin. But the hatred in their hearts could not be hidden forever. As last, there came a day when our enemies showed their true natures.
The Jedi hoped to unleash their destructive power against the Republic by assassinating the head of government and assuming control of the clone army. But the aims of the would-be tyrants were valiantly opposed by those without elitist, dangerous powers. Our loyal clone troopers contained the insurrection within the Jedi Temple and quelled uprisings on a thousand worlds.
The remaining Jedi will be hunted down and defeated. Any collaborators will suffer the same fate. These have been trying times, but we have passed the test.
The attempt on my life has left me scarred and deformed, but I assure you my resolve has never been stronger. The war is over. The Sepratists have been defeated, and the Jedi rebellion has been foiled. We stand on the threshold of a new beginning. 

 We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world. For the first time in nine years, there are no Americans fighting in Iraq. For the first time in two decades, Osama bin Laden is not a threat to this country. Most of al Qaeda’s top lieutenants have been defeated. The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home.
These achievements are a testament to the courage, selflessness, and teamwork of America’s Armed Forces. At a time when too many of our institutions have let us down, they exceed all expectations. They’re not consumed with personal ambition. They don’t obsess over their differences. They focus on the mission at hand. They work together.

In order to ensure the security and continuing stability, the Republic will be reorganized into the first Galactic Empire, for a safe and secure
society, which I assure you will last for 10,000 years. An Empire that will be continue to be ruled by this august body and a sovereign ruler chosen for life. An Empire ruled by the majority, ruled by a new constitution.
By bringing the entire galaxy under one law, one language, and the enlightened guidance of one individual, the corruption that plagued the Republic in its later years will never take root. Regional governors will eliminate the bureaucracy that allowed the Separatist movement to grow unchecked. A strong and growing military will ensure the rule of law.

The executive branch also needs to change. Too often, it’s inefficient, outdated and remote. That’s why I’ve asked this Congress to grant me the authority to consolidate the federal bureaucracy so that our Government is leaner, quicker, and more responsive to the needs of the American people. 

Under the Empire's New Order, our most cherished beliefs will be safeguarded. We will defend our ideals by force of arms. We will give no ground to our enemies and we will stand together against attacks from with or without. Let the enemies of the Empire take heed: Those who challenge Imperial resolve will be crushed.

We have taken on a task that will be difficult, but the people of the Empire are ready for the challenge. Because of our efforts, the galaxy has traded war for peace and anarchy for stability. Billions of beings now look forward to a secure future. The Empire will grow as more planets feel the call, from the Rim to the wilds of unknown space.

And we will safeguard America’s own security against those who threaten our citizens, our friends, and our interests. Look at Iran. Through the power of our diplomacy, a world that was once divided about how to deal with Iran’s nuclear program now stands as one. The regime is more isolated than ever before; its leaders are faced with crippling sanctions, and as long as they shirk their responsibilities, this pressure will not relent. Let there be no doubt: America is determined to prevent Iran from getting a nuclear weapon, and I will take no options off the table to achieve that goal. But a peaceful resolution of this issue is still possible, and far better, and if Iran changes course and meets its obligations, it can rejoin the community of nations.
The renewal of American leadership can be felt across the globe. Our oldest alliances in Europe and Asia are stronger than ever. Our ties to the Americas are deeper. Our iron-clad commitment to Israel’s security has meant the closest military cooperation between our two countries in history. We’ve made it clear that America is a Pacific power, and a new beginning in Burma has lit a new hope. From the coalitions we’ve built to secure nuclear materials, to the missions we’ve led against hunger and disease; from the blows we’ve dealt to our enemies; to the enduring power of our moral example, America is back. 

Imperial citizens must do their part. Join our grand star fleet. Become the eyes of the Empire by reportingsuspected insurrectionists. Travel to the corners of the galaxy to spread the principles of the New Order to barbarians. Build monuments and technical wonders that will speak of our glory for generations to come.
The clone troopers, and proudly wearing the name of Imperial stormtroopers, have tackled
the dangerous work of fighting our enemies on the front lines. Many have died in their devotion to the Empire. Imperial citizens would do well to remember their example. 

Which brings me back to where I began. Those of us who’ve been sent here to serve can learn from the service of our troops. When you put on that uniform, it doesn’t matter if you’re black or white; Asian or Latino; conservative or liberal; rich or poor; gay or straight. When you’re marching into battle, you look out for the person next to you, or the mission fails. When you’re in the thick of the fight, you rise or fall as one unit, serving one Nation, leaving no one behind.
One of my proudest possessions is the flag that the SEAL Team took with them on the mission to get bin Laden. On it are each of their names. Some may be Democrats. Some may be Republicans. But that doesn’t matter. Just like it didn’t matter that day in the Situation Room, when I sat next to Bob Gates – a man who was George Bush’s defense secretary; and Hillary Clinton, a woman who ran against me for president.
All that mattered that day was the mission. No one thought about politics. No one thought about themselves. One of the young men involved in the raid later told me that he didn’t deserve credit for the mission. It only succeeded, he said, because every single member of that unit did their job – the pilot who landed the helicopter that spun out of control; the translator who kept others from entering the compound; the troops who separated the women and children from the fight; the SEALs who charged up the stairs. More than that, the mission only succeeded because every member of that unit trusted each other – because you can’t charge up those stairs, into darkness and danger, unless you know that there’s someone behind you, watching your back.

The New Order of peace has triumphed over the shadowy secrecy of shameful magicians. The direction of our course is clear. I will lead the Empire to glories beyond imagination.
We have been tested, but we have emerged stronger. We moved forward as one people - the Imperial citizens of the first Galactic Empire. We will prevail. Ten thousand years of peace begins today.

 
So it is with America. Each time I look at that flag, I’m reminded that our destiny is stitched together like those fifty stars and those thirteen stripes. No one built this country on their own. This Nation is great because we built it together. This Nation is great because we worked as a team. This Nation is great because we get each other’s backs. And if we hold fast to that truth, in this moment of trial, there is no challenge too great; no mission too hard. As long as we’re joined in common purpose, as long as we maintain our common resolve, our journey moves forward, our future is hopeful, and the state of our Union will always be strong.

Solyndra should wake up Delaware

Delaware must learn a lesson from Solyndra that even Spain couldn’t teach us.  A study of Spain’s focus on “green jobs” found that for every “green job” created, it cost Spain more than 2.5 jobs.  The study also found that the “green jobs” plan in Spain added so much to the debt that it actually delayed their exit from the economic crisis.  Spain’s model of green job creation is the model that President Obama used to create his plan for a new green economy.  This is the model that Jack Markell has embraced here in Delaware.

Delaware is seeing the effects of this policy although the blame is being laid on the economy.  The truth is that “green jobs” and alternative energy are nothing more than limited alternatives to be added to the arsenal of energy alternatives for a nation.  Solyndra is a perfect example of a “green jobs” company that could not compete within the market place.  The Obama touted company brought in $1 Billion (including $535 million in taxpayer funds) from investors and employed 1100 workers (that’s just over $909,000 per job) yet the solar power manufacturer failed and filed Chapter 11 bankruptcy this week.  The results of the Spanish policy show why this occurs in the alternative energy market.

The climate change and alternative energy supporters often clamor for more subsidies for their products and they complain about the massive payouts to fossil fuel companies.  The truth is that solar and wind each receives more than 50x the amount of subsidies as the coal industry does yet coal provides more than 43% of America’s power while alternatives muster just over 5% of our needs.  So we see that alternatives are far better funded than admitted and for far less output.  Where is the money going?  Well the answer is that not all of it is graft or misuse but some of it is.  Alternative energy, despite its lifespan to date, is still lacking some technological breakthroughs that would make it more viable.  These include finding a way to create a long term power storage plan and finding more effective ways to transport the energy to the places that need the power.  Offshore and onshore wind farms can generate massive amounts of energy but that energy is short term kinetic power that must be used right away or lost.  They are also built far away from the place where the power is needed and much of the energy is lost in the transmission of the energy.  So these logistical problems contribute to the trouble that alternative energy has with becoming a competing source of power.  Massive wind and solar farms must be constructed to provide even the most basic power needs in order to compensate for the unreliable and ineffective power generation.  Remember this, the wind is not always blowing nor the sun always shining and so even in places like Delaware, where we have a Renewable Portfolio Standard that mandates usage of a certain percentage of renewable energy, we also have 100% of that alternative power backed up by conventional sources (nuclear, coal, natural gas).  Sort of defeats the purpose and it greatly increases the cost.

It’s also worth pointing out that the Spanish study found subsidies “multiplied by five” in Spain between 2004 and 2010 while the companies charge 12x what it costs conventional energy to make the same power.  Government subsidies in the alternative energy field are direct payouts, not “tax breaks” as they are in conventional energy sectors.  You see, oil, gas and coal companies are allowed to write off the depreciation of equipment and land as the real value of those assets decreases (this is a standard deduction for any business from the local bakery to Exxon/Mobil) while Solyndra and Fisker receive checks from the government to subsidize the cost of their products.    These direct subsidies actually COST the American taxpayer while tax breaks simply allow the company to keep more of what they earned based on a loss of value in another area. 

A perfect example is Fisker.  When GM closed their Boxwood Road plant in Wilmington, Delaware leaders scrambled around for a replacement.  While companies like Hyundai, Nissan and Toyota expressed interest in the plant, Delaware’s alliance with the autoworker’s unions and the added costs scared them off but not Fisker.  Fisker is a 4 yr old auto company that only recently built and delivered the first of its all electric plug in vehicles.  The first thing that Fisker did is to design plans for a the plug in vehicle and the second was to begin begging the government for subsidies and look for places where they could get free room and board.  They found Delaware and our government was all too willing to accommodate them.  All told, Fisker has gotten more than $1 Billion in state, local and federal subsidies to build their cars.  Their first car, rumored a year ago to be set around $80,000 is priced from $96,850-$109,850 which makes it about as affordable as a home in the Greenville hills.  These will of course, be snapped up by environmentally conscious uber rich folks who can afford to have the charger installed at home and at their office but that won’t work for the average Joe which makes Fiskers plans to build an “affordable” version (rumors had it retailing around $40,000 last year but it’s more likely to be near $60,000) that Fisker plans to take over the car market with.  The problem, as noted by the folks at the Caesar Rodney Institute is that the numbers don’t quite add up for Fisker, especially in this economy.  Fisker is relying on their vehicle getting “98 miles to the gallon” to justify the cost of the car and the charging system (which we hope will be installed everywhere we park otherwise we might not make it home) and also hoping that you don’t notice the $1 Billion that you the taxpayer have already given them to build this car that they will now charge you a year’s salary to own.  The problem with that is that there are now DOZENS of high quality hybrids like the Hyundai Sonata Hybrid, the Prius and the Leaf at nearly half the cost who get similar mileage out of gas/electric engines.  That makes it unlikely that Fisker will own as much of the market as they expect to.  Hybrid sales average around 300,000 cars per year and Fisker plans to sell 100,000 of their electric cars in a year.  That means commanding 1/3 of the American hybrid market with a vehicle that is more than twice the cost of the hybrid sales leader, the Toyota Prius.

Any business owner can tell you, as a new company, expecting to compete with a well-known and well respected existing company right away is a fools folly.  This is especially true when your product is more expensive and less proven than the competitor.  Yet this is the “investment” that Obama/Markell’s “green energy” plan makes.  A company with no evidence that their product is viable in the long term or in the long run is given $1 Billion to produce it.  Meanwhile, conventional vehicles are being forced into higher costs to allow this new “investment” to compete.  The truth of the American car market is that fuel efficiency is important but American families are large and we enjoy comfort which means we like our vehicles larger than Europeans for instance.  The most recent list of top selling Ford vehicles did include the Fiesta but it also included the Explorer and the F-150.  Instead of driving these vehicles out of existence, we should be looking at ways to make them more efficient.

Delaware had a unique opportunity to lead in the auto market when Chrysler and GM closed their doors.  Both plants were setup to manufacture cars and SUV’s that Americans want to drive and both would have taken minimal effort to adjust for companies like Hyundai and Toyota to begin producing those vehicles with hybrid engines right here in Delaware.  It’s time for new leadership in Dover that will use common sense when confronted with these kinds of problems and that will look for ways to create jobs for Delawareans regardless of the effect on unions.  Delaware has turned away more jobs because we refuse to be a right to work state than we’ve lost due to the economic crisis.  This has to stop.  We need LEADERS in Dover who understand what the people want and need, not puppets who are beholden to special interest groups.  When I get to Dover, I’ll make sure that we get government out of the way so that businesses can thrive and create jobs.  Delaware deserves no less than that.

Reference:
http://pajamasmedia.com/blog/leaked-spanish-report-obamas-model-green-economy-a-disaster-pjm-exclusive/ - Spanish government documents show that study of Spanish green jobs initiative was generous, damage to Spanish economy worse than previously thought.

http://www.eia.gov/cneaf/electricity/epm/epm_sum.html - energy sources

http://www.cato-at-liberty.org/stifling-innovation-with-subsidies/ - Fisker shenanigans

http://www.caesarrodney.org/pdfs/Fisker_revisited.pdf - Fiskers numbers don’t add up

DelDOT thugs like Bad Santa's

Families in Radnor Green/Ashbourne Hills, a blue collar community in Claymont, Delaware are surveying the damage caused by DelDOT employees who, in Grinch like fashion ripped their recreation literally from the ground.  Like the little town of Whoville that was terrorized by a Grinch whose heart was an empty hole, residents in Claymont were terrorized by a nanny state run amuck.

Sure, the month was March and DelDOT uses trucks not sleds, but the song below accurately describes the actions of the State of Delaware's Department of Transportation and their feelings on the situation:

While it might seem funny when you read comments like those above, the real facts and the lives affected by the actions of an oppressive government don't leave much room for laughter.  While there have indeed been dissenting opinions on this, most rational people agree, government was in the wrong.  Some have blamed the owners for not complying with the government order to move their property (some of these poles had been in place for 40+ years) despite the fact that the families had followed the correct process to challenge the law, while others have insisted the blame rests with the government but that it should be limited to those who passed the law and passed along the work order to the ground workers.  Normally I would agree with that second group but I have had a week to see what the DelDOT ground workers actually think. 

The link above will take you to a Facebook page I created for discussion about the incident.  I expected the DelDOT workers to defend their actions but I was not prepared for the utter contempt they held for the property owners or for the legal process that made their enforcement questionable.  Further discussions would show the true colors of Delaware's public workforce: It doesn't matter what they do, what they say or how they affect your life because THEY are union and THEY enforce the law, no matter how wrong or unconstitutional it is. 

You need to keep that mindset in mind when you read the rest of this story.  To government workers, WE THE PEOPLE are not their bosses, we are the sheep that they must corral.  They don't care that we, the larger populace, provide their salaries because they see it as "earned" and they don't see the need to answer to US because they have Union leaders and government management and bureaucrats telling them that they don't.  They feel untouchable because laws are written to protect them.

That's why they felt no remorse in turning Radnor Green upside down last week.  You see, until last week, when DelDOT stormed the neighborhood with dump trucks, pickups, flatbeds and front end loaders on a mission to rip out basketball poles that were too close to the road according to a questionable law passed in 2005, the neighborhood kids had enjoyed playing on their hoops almost every day.

Last week, all that changed when DelDOT employees stormed the neighborhood and yanked the poles.  Despite the plea's from the owners to leave the pole on their property, and a promise from a State Police Officer to the contrary, DelDOT workers removed the poles to their service center and demanded that residents (some of whom were not home when their property was taken) pick up their property from the DelDOT yard.  DelDOT is facing a $1 Billion shortfall within the next 5 years without spending cuts or revenue enhancements (toll/tax/fee increases) but for some reason, this was seen as a good use of tax payer dollars:

While this issue is FAR from over, this is likely the last time you will see much in the mainstream media about it.  Yesterday afternoon, the McCafferty family, who has led the charge to get their pole and hoop returned to them, discovered the grim reality.  Not only did the DelDOT workers lie, cheat and steal to get the poles, they also decided to destroy them.  Every single backboard was in one piece when it was PLUCKED from the neighborhood yet, every single one of them now is destroyed.  Here are some images of the poles as we found them yesterday:

Every single backboard has a hole in it, poles were damaged and the DelDOT employees couldn't care less.  As you'll see in the video below, they stood on the other side of the yard, smugly video taping as Rep. Bryon Short and I used our personal pickup trucks to transport what it took them 2 dumps, a front end loader, a flat bed, 3 pickups and 5 police officers to transport.  But then again, I do always say that the private market is more efficient than government almost 100% of the time.  I'll leave you with this final video from the crew over at the News Journal:


Update: Pastor Dowell is standing up to show that this is a national movement!  We've had ENOUGH of government employees taking liberty and property from people...and then pretending like it's just their job.

Hoopgate: What it all comes down to...

Here we are, almost a week after news broke that DelDOT was out snatching basketball hoops.  The story has gone international, viewed in countries around the world (the only countries who haven't viewed it are in Africa and the Middle East) and picked up by national news agencies.  There is a Facebook page (which I administer by the way) dedicated to getting DelDOT to replace the poles and to have all of their regulations reviewed.  People from all over the world are commenting on the story with many in support of the family and some against them.  So far I have boiled down the argument to a couple of basic premises: safety and bad experiences.

Argument: Safety - Typical response: "Well, I mean the kids playing in the street is dangerous.  They could get hit by a car!"

The problem here is that this argument has absolutely NOTHING to do with safety and everything to do with convenience.  Even with the kids in the street, if a motorist is driving at the reasonable and safe speed limit which is posted (or assumed) they will be able to stop in the case of a child or small animal running into the road.  In fact, children playing IN the street on a basketball hoop are less of a danger because they are in more plain sight than children playing on a driveway court whose ball may accidentally bounce into the street and encourage a child to run out quickly from the driveway to get it.  Children in the street will move when they see a car coming.  This may require the driver to slow down or potentially stop but if the driver observes the speed limit and safe driving practices, there is little danger to children.  The "Hoopgate" incident is one in which the danger is even less of a real factor.  The hoop in question was positioned in a cul-de-sac and not on a "right of way".  In fact, had the hoop been on a main thoroughfare, a main artery or even a through road, one could understand the concern.  In this case, none of those things were occurring.
If the problem was indeed the safety of the children, then these concerned motorists would realize that the safest place in the world for a kid is their home (and the next safest in front of it).  They would understand that the parks (especially in Claymont) are actually not so safe.  The parks in this area are often frequented by drug users (teens and adults), gang members and at times child molesters (they like to hang out at parks, where kids play without parents).  So, if we really care about the safety of the kids, why not let them play there in the street where people can see them and where they are able to call for help from people who know them or escape quickly into the safety in their home.

Argument: Bad Personal Experience - Typical Response: "Look, these kids are rude, they cuss, they fill the street and they have no respect."

This one is understandable.  Everyone has (or has had) a neighbor whose kids are rude or disrespectful at times.  In some cases, "at times" can be more often than not but in others it's rare.  We all understand it.  A basketball incessantly bouncing "thump...thump...thump...thump" at 2AM, whooping and shouting at midnight, waking up at 7AM to the sound of a basketball setting off a car alarm, these are all valid complaints...that should be made to the parents of the offenders.  However, America (specifically New Castle County Delaware) has apparently become a nation where we don't talk to one another anymore. The simple fact is that just because your neighbors have crappy kids who don’t have any respect, that doesn’t mean that every hoop owner should be punished. What happened to the days when people would go to their neighbors and ask them questions like:
     a. Can you have your kids not smack into my car?
     b. Can you have your kids play after 9AM and be done by 8PM?
     c. You know, your kid cussed me out when I asked him not to do [insert here]…can you talk to him about that?

In this case, the neighborhood is fairly close knit.  There may be a few people who stick out but by and large the people get along.  This particular hoop is one of the places the neighborhood kids go to hang out, they shoot hoops, chat and most importantly stay out of trouble.  There are a few places in the neighborhood where they leave the basketballs out in the yard for the neighborhood kids to play on their baskets.  This was one of those places.  Remember the days when mom or dad would leave the hose out front (before we knew how "nasty" it was...weird that I never got sick from it...*shrugs*) so the kids could grab a drink if they needed to?  That's kind of how this neighborhood worked.  They love each other, they care for each other.  They even defended and came to the aid of an older gentleman who had not made the complaint, but agreed with the concept when his home was vandalized by overzealous and criminal individuals.  This includes the owners of the hoop who were on video.  Their daughter went down and helped the guy clean up the mess. 

So what happened to those days?  What happened is that morality and the idea of "community" has been stripped away.  Some people are afraid to make contact with their neighbors or question the behavior of their kids because the parents are equally rude and disrespectful, others simply don't want to bother with a potential confrontation.  Most people aren't rude or disrespectful, but because some are, it's frightened others.  Because of folks like those found in this earlier post about our nations loss of morality, people are worried about simply MEETING a neighbor.  Because of folks like those found on the comment pages at the DelawareOnline website, people find communicating with others, challenging.  Instead, they turn to local, state or the federal government to resolve disputes or mediate simple discussions that 15+ years ago would have been handled at the neighbor level.  Until we get back to a moral high ground, whether through religion or some other manner, we're going to continue relying on government to solve our problems through one size fits all laws that punish those who abide by the law in the same ways as those who break it.

Community Crossfire Welcomes the TEA Party to Wilmington

Stormin' Norman Oliver, a well respected man from Wilmington hosts as 9PM Sunday cable access TV show called "Community Crossfire".  He has had Governor's, Mayor's, Senator's and some of Delaware's most influential people on his show which is heavily watched especially in the city of Wilmington.  His shows are often controversial and always entertaining.  Last night's program was no different and if you missed it, you missed A LOT.

Oliver is not one to shy away from confrontation which is what made him a great Councilman for more than 10 years.  His callers are not afraid to mix it up either.  I joined Lee Tirado, a fellow member of Founders Values, on the show which was already recieiving plenty of attention.  In addition to blog posts asking people to "ask some wingnut related questions", Mr. Oliver recieved a number of emails and phone calls questioning him having on members of the "racist" TEA Party.  Needless to say, we understood what we were up against.  Lee and I were steeled in the fact that most of the people calling us "wingnuts" and "racists" had never met us, knew nothing about us and relied on a heavily biased media for their information.  This is the same media that has constantly and consistently demonized the TEA Party without substantive proof.  And yes, the issues of the "spitting" incident during the healthcare debate passage when Democrats mocked Dr. Martin Luther King's march by nearly skipping through the protestors with glee, which not one media outlet can produce proof of, was brought up. 

Mr. Olivers phone began ringing before the phone number came up on the screen and we knew that we were in for quite a ride.  There were so many calls in fact, to the live pick up show (there's no call screener) that it was difficult to expound on points being made.  We were able to dicuss who the TEA Party is, what it stands for and what it does.  While we were asked to define the number of African-Americans and militia members in our group, there was also thoughtful commentary on education, job creation and limiting the size of government.  Mr. Oliver was fair and in conversation before and after the show there was much common ground between us.  While both Lee and I wish we had a little more time to get our points across, I think that people realized we had a difficult task to overcome months of mainstream media angst. 

In the end we made our case for a voucher system that allows parents to control where their kids go to school and that includes vocational, private and public schools.  We talked about how to create jobs in the city and turn the economy around and we made our case for limited government.  We plugged our website, our meeting and our candidates for school board.  We also asked that people try coming to a meeting before they make a decision.  Response after the fact has been positive by and large and we're looking forward to going back on the show in the near future.  Also, a little bit of interesting information, Mr. Oliver is fair and and he has invited the NAACP on his show as well, to give their side.  They have so far declined or not taken his calls.  Lee and I thought it was interesting that the TEA Party went on a show that broadcasts to a large segment of the African-American community to discuss the media attacks against them and the outrageous claims of racism but the NAACP wouldn't appear.  That alone should prove that these allegations are completely baseless.

We discussed the reality that faith plays an important part in fixing much of what is wrong with our state and our nation. I am proud to be part of this enlightenment that I see happening around the country and I hope that more, across the spectrum, will come to realize that we can disagree on some things, but that there are certain basic truths and basic ideals, like freedom, liberty and opportunity that we all hold dear.  We're thankful for the opportunity to be on Mr. Oliver's show and we recommend that more of us watch Community Crossfire every Sunday night at 9PM to gain perspective.

The New York Times Proves Me Right

I have pointed out that Wisconsin is not the only state to see their pension/healthcare benefits become unsustainable. The same thing is happening all over the country, especially here in Delaware. Local union leaders and public employees have called me crazy, they've attacked me, they've insisted I was lying, that public employees are not paid as well as private sector workers and that they simply planned better than the rest of us. They have defended collective bargaining as "a human right" (we'll get to that later). Today, the New York Times did a story and released a study that shows that in fact, as a whole, public sector employees are better paid than private sector workers. They do downplay the numbers as you would expect a left wing "news" outlet to do but the facts are even undeniable for them. They point out that state and local government salaries w/benefits nationwide average $70,000 while private sector workers average just $61,000 and that gap isn't shrinking, it's growing. The NYT tempers this analysis by pointing out a discrepency in the TYPE of worker (blue collar vs. white collar) but what they don't point out is that the private sector salary includes the $58 million per year CEO and the $13 per hour retail salesperson. The next stat is stunning, public sector workers put in FAR fewer hours per week than private workers and they cost 70% MORE than private sector workers. While the NYT makes an argument defending public workers for having higher degrees (doesn't seem to help with the way our government runs), it fails to point out that their study includes young workers in the private sector who are either in college and working full-time or simply haven't gone to school. In addition, the Times breaks down individual sectors (a favorite of union leaders since salaries fluctuate based on occupation type) and finds descrepencies among service jobs (which they explain away with the caveat that it includes Police, Fire and Rescue workers) and clerical jobs (where they point out a slightly less obvious gap). The average private sector clerical worker costs their employer about $24 per hour while public sector clerical workers average about $29 per hour. The picture on the left details the unfunded retiree healthcare liabilities (not pensions, wages or active worker healthcare costs) for the U.S. as a whole. What about Delaware? Our retiree healthcare costs (not pensions) are only 1.45% funded. That's right folks, as of 2008, the Pew Research Center found that Delaware owed 5.4 BILLION in retiree healthcare and more than $100 million in pension benefits (to give an idea of the current levels, TODAY our pensions are underfunded by $700 million).

Continue reading on Examiner.com: New York Times Proves That Public Sector is Paid More Than Private Sector - Wilmington Education |

Job Losses and Toll HIkes: Markell's legacy of pain

Since Jack Markell took office in 2008, following 8 years of the most corrupt administration in Delaware's modern history, Delaware has indeed experienced "change".  Both Governor Markell and President Obama promised a healthy dose of change in their 2008 campaign.  For my money, I'd trade all of the change they gave us for some jobs.

Since Jack Markell took office and named Alan Levin as Secretary of the Delaware Economic Development Office, Delaware has experienced a net loss of 36,000 jobs.  That means that today, there are 36,000 Delawareans who cannot find work.  Meanwhile, as the layoffs keep coming, Markell and Levin do nothing.  Markell just inked a deal with China, the largest foreign holder of U.S. debt, to invest in Delaware bio tech.  In reality, this deal doesn't do squat to create jobs.  It provides Markell with a photo op and a favorable news story which gives the appearance of him actually doing something.  If anything does come of it, Markell has just invited China, America's largest debt holder, to purchase their way into the Delaware economy.  Since Markell took office, Delaware's industrial footprint has died.  Some may think that is by design, and while that might seem outrageous, there certainly has been a real and wholesale loss of blue collar jobs in Delaware's private sector.  I find it difficult to believe that Markell and Levin don't WANT to create jobs but I submit to you that GM and Chrysler (closed in 2008 under the Minner Administration where Markell served as Treasurer) left the state which left thousands of Delaware Autoworkers without jobs, Valero closed and shed nearly 1000 jobs, HSBC and Wilmington Trust cut more than 1200 jobs, DuPont and AstraZeneca have laid off more than 1,000 workers and scores of small businesses around the state have closed.  Even with the purchase of the Chrysler plant by U of D, Fisker moving into the GM Plant and the new owner of the Valero plant moving in, Delaware faces a net loss of 36,000 jobs.  In January alone, Delaware shed 700 jobs and the unemployment percentage stayed flat at 8.5%.  Even the News Journal, not known for displaying the failures of Delaware Democrats, has had to admit that the employment picture in Delaware is not good.  The Markell Administration has consistently talked about the budding Delaware bio tech industry, green energy jobs, healthcare and financial services as being Delaware's economic future yet the only thing materializing in those areas is government spending and job cuts.  Healthcare dropped 600 jobs in January while banks and finance companies have been shedding Delaware jobs by the thousands since the passage of the financial regulatory bill. 

Regulations, especially as they pertain to the environment in Delaware have increased and so has Delaware's spending.  In fact, Delaware's personnel costs and the cost of government services are so high that there isn't an opportunity for the state to commit to creating a pro-business climate.  Markell and the General Assembly have been content to focus on social issues like homosexual equality and gimmicks like Markell's bottle bill rather than to address Delaware's problems with job creation and spending.  In 2011, Delaware faces a $377 million budget shortfall that must be closed by the General Assembly and the Markell Administration.  This is the 3rd straight increase in budget gaps under Markell and his accounting gimmicks and tricks will only work for so long before it becomes undeniable that Delaware has a spending problem.  I only hope that enough of us wake up by 2012 to stop this train before it totally derails.

Speaking of shortfalls, DelDOT (whose budget is a mere 8.5% of the entire Delaware budget...dwarfed by education and health and social services) is facing a shortfalls totalling "$1 Billion over the next 5 years and more than $3.7 Billion through 2023" says Jeff Montgomery of the News Journal.  State Senator Robert Venables from Laurel doesn't think the General Assembly understands the severity of the problems (and he's a Democrat by the way) and outgoing DelDOT head Carolann Wicks says that "We're now down to the core programs, primarily,".  Still, the following excerpt from Jeff's story is chilling:

Filling the budget gap without cutting back on projects would require more than $169 million in new revenue just for the budget year that begins July 1, an amount DelDOT officials said could be raised with $85 million in new taxes or fees and an additional $85 million in borrowing.

By 2023, however, the single-year shortfall could grow to nearly $498 million.

Confining DelDOT spending only to "core" maintenance, safety, operating and vehicle replacement spending would still leave a $125 million gap next year that would rise to a cumulative $545 million by 2016 and nearly $1.4 billion by 2023, officials said.

State officials have blamed a combination of rising costs, growing demand for services, inadequate funding and rising debt-service payments for the trust fund's quandary. Payments on past loans and interest alone now amount to about $123 million a year.

Folks, this is STAGGERING.  Even if we ONLY spent money on core services from DelDOT, we're looking at a $125 million gap in 2012.  That's no new roads, no updates that aren't critical, no new bus routes, etc.  The blame from the state officials goes not on poor planning, excessive borrowing and administration failures but on the INTEREST for the debt they ran up.  Folks, the payments for the past debt alone total $123 million per year.  So next time you hear that Delaware's financial situation is better than the federal government and that we have nothing to worry about, remember that DelDOT...who makes up just 8.5% of the state budget pays out an amount equal to about 1/3 of the FY2012 budget shortfall.

There is an interesting sidebar in Jeff's story:

TOP REVENUE-GENERATING OPTIONS

Impose $1 per barrel fee for crude oil barge transfers in Delaware Bay: $100 million

Raise Del. 1 weekday toll to $2, weekend toll to $3: $36.4 million

Raise all I-95 tolls by $1: $24.5 million

Shift DelDOT operating funds from Trust Fund to General Fund: $14.1 million yearly for 10 years
Eliminate trade-in discount for new vehicle document fee: $12.2 million
Charge toll for new Indian River Inlet bridge: $7.6 million
Hike vehicle registration fee by $10: $6.7 million
Raise Del. 1 commercial vehicle toll by $1: $4.5 million
Increase gas tax by 1 cent: $4.5 million
Shift Paratransit service costs to General Fund: $4.3 million yearly for 10 years 

 

HIGHEST-RANKED TRANSPORTATION TRUST FUND REVENUE OPTIONS

$1 increase in Del. 1 commercial tolls: $4.5 million

10 percent fee on sale of Delaware tags: $15,000

Illegal sign fees: $9,000

Shift Paratransit service costs to General Fund: $4.3 million yearly for 10 years

Double current $25 fee for driver's license suspension reinstatement: $510,000

$10 additional for driver's license permanent renewal: $87,000

Increase revocation reinstatement to $200 from $143: $230,000

Double late registration renewal fee to $20: $831,000

Double over-size vehicle permits to $40: $903,000

Double fee for paratransit trips outside regular transit corridor: $2.1 million

These are the ways that the special planning board that the Markell Administration created has come up with to "fix" the problems.  You'll notice that there are a lot of fee increases and toll charges but no real cuts.  Oh, and you'll see that they recommend shifting costs...which only hides the costs in the General Fund budget instead of spotlighting it like the rest of the transportation spending.

This is how Delaware Democrats deal with our problems.  They bury them.  We saw it with Chris Coons in New Castle County as we are finding out, his accounting gimmicks masked the fact that our County is bankrupt and in danger of becoming insolvent and we've seen it now at the state level.  The only way we're ever going to fix our problems is to make big changes in the way we do things.  Delaware is in trouble.  We've got to cut spending, cut regulations to bring jobs back to the state immediately and reduce the size and scope of government at all levels.  If we don't make some real changes, face some pain today and get our house in order, we're going to face FAR worse pain in the future. 

Senator Carper upset over House plan to cut rail funding

Amtrak costs taxpayers more than $1.5 BILLION each year.  That means that once all the bills are paid, Amtrak brings in $1.5 Billion LESS than it spends.  This is not a new occurrence either.  Amtrak has lost money every year (since 1970) it has been in operation.  I can certainly understand Senator Carper's concerns over cutting funding to Amtrak, which he uses to go back and forth to D.C. everyday with Chris Coons and John Carney.  Also, the union membership of the Amtrak employees is a key voting bloc for Delaware's congressional delegations.  Without Amtrak, Carper would either have to get an apartment in D.C., sleep in his office or pay more than $3.20 per gallon for gas to drive (or be driven) to D.C. and back everyday. 

The reality is that Amtrak is a drain on America's pocketbook and for those who are VICIOUSLY attacking the Army, National Guard and the Air Force for spending $10 million sponsoring motor sports to boost recruiting, perhaps we can also look at saving a much larger amount through Amtrak.  To look at the nuts and bolts of Amtrak, you can see that only 4 out of the 45 active lines make a profit.  In any business, the 41 lines losing money would be cut back, eliminated or otherwise reformed to ensure a profit.  Our government, is content with just sticking you and I with the bill.  Further, if someone suggests privatizing the service, the left HOWLS about how horrible it would be for the people.  Yes, I guess it would be terrible if we had to actually break even through Amtrak.  5 people travelling from Los Angeles to Houston might have to fly (and spend less money to arrive sooner) instead of take the train.

Liberals will point to Japan, England, Germany and other European nations as proof that rail works.  I wonder if they know that each of those nations employees various degrees of private rail ownership.  Further, you might look at those nations and see how many of them you can fit into the United States.  The answer, all of them.  America is a big country and rail, even high speed rail, will not work everywhere but it does have it's advantages in some places.  What about the rail lines?  Surely the government must own and protect those lines right?  Well, currently, most of the rail lines in America are owned by private freight rail companies.  With that said, those places where highspeed rail DOES work would easily attract private investors who could fund the projects and make them profitable (and perhaps pay off the debt Amtrak has racked up).  The eastern corridor, from Boston to D.C. and the western coast from San Francisco to San Diego are two areas where high speed rail would be very effective.  There may also be some use for a line from San Antonio to Orlando (or Atlanta) but studies would have to determine the effectiveness.

So, Senator Carper, why exactly should we keep pouring money into a venture that has never made money...EVER?  The bottom line is that privatizing our nations rail system would save us more than $1.5 Billion and could possibly increase our GNP by hundreds of millions more or even billions more with highspeed rail.  From a practical standpoint it's a no brainer.  The question isn't IF...it's WHEN...and hopefully the answer is sooner...rather than later.

Wisconsin shows Delaware how it's done

Delaware Governor Jack Markell was acosted by a state worker at a townhall this week who asked "When am I going to get a pay raise?"  Markell answered, "I don't know...I don't know..."  With everything going on in Wisconsin with the public employee unions protesting Gov. Scott Walker's decision to close the state's $1.8 Billion shortfall by asking the public employees to...*GASP* contribute to their retirement plans, healthcare and the bill would " make various changes to limit collective bargaining for most public employees to wages. Total wage increases could not exceed a cap based on the consumer price index (CPI) unless approved by referendum."  In addition, Walker's bill cuts elected official and political appointee retirement calculations down to public employee levels.  Currently, those officials are given higher payouts.  Another contention with the bill is the removal of collective baraining for certain state workers such as family child care workers,  University of Wisconsin Hospital and Clinic employees, University of Wisconsin faculty and academic staff.  In short, "This bill limits the right to collectively bargain for all employees who are not public safety employees (general employees) to the subject of base wages. In addition, unless a referendum authorizes a greater increase, any general employee who is part of a collective bargaining unit is limited to bargaining over a percentage of total base wages increase that is no greater than the percentage change in the consumer price index."

You can read the bill summary here and the full bill here.

The bill calls on public sector employees to up their healthcare contribution from 6% to 12% (the average private sector employee contributes 24% to their plan) and it calls on them to contribute 5% to their pensions while the average private sector worker contributes just over 50% to their plans.

Walker's bill has led to teachers unions and other employees unions staging walkouts, using CHILDREN as protest tools (despite the fact that most of the children have NO IDEA why they are protesting).  It has led to teachers and other union members carrying signs depicting Scott Walker as Hitler, placing bullseye targets on him and even calling Gov. Walker, a dictator.  The video below depicts some of the scenes from the Wisconsin protests and the rhetoric (that I remember the left BLASTING the TEA Party for after a left leaning psychopath shot a Democrat Congresswoman):

So what does this have to do with Delaware?  Well, as I mentioned, state workers (and their union leaders) right here in Delaware are beginning to call for pay raises and they have been resistent to any changes in their current compensation package.  Delaware is facing a $280 million budget shortfall and since Delaware has a balanced budget amendment that gap must be closed.  Delaware's largest employer is the state of Delaware which is followed by New Castle County government and therefore, government workers are one of the greatest costs to the state.  This includes police, EMS, teachers, inspectors, clerks, mechanics, electricians, construction workers, drivers, office managers, etc. and is not limited to public safety employees despite the fact that the left will point to teachers, police and EMS technicians as the only people affected.

I want the people at the top to take the cuts first like everyone else.  I want to see our politicians and public servants sacrificing FIRST.  Governor Markell likes to talk about the 20% paycut he took but he fails to mention that the office of the Governor had an 18% pay INCREASE when he was elected.  He then took a 10% pay cut right off the top, meaning that the office of the Governor actually got an 8% pay INCREASE when he took office.  Now he has taken another 20% pay cut after his 8% raise.  So he has now finally taken a 15% pay CUT from where he SHOULD have been when he was elected.  So while I would like the cuts to come from the top, there comes a point where we have to realize that cutting the pay at the top will not solve all of the budget problems.  There also comes a point where the state has to recognize that it is living beyond its means and needs to change the way it does business. It’s time to make cuts and these unions and state workers with these incredible compensation plans to recognize that they have been living beyond their means: http://sunshinereview.org/index.php/Delaware_state_government_salary

State workers and their union leadership are beginning to spend time and money pointing out that the state workers are being punished for planning for their retirement and that they are the scapegoats for the economic disaster.  They are saying that state workers make less in pay than those int he private sector in exhcange for better benefits.  I decided to look into these "facts" and what I've found is a bit disturbing.  The average salary for FT state workers in Delaware is $50,124.  The average Delaware worker’s salary (including public AND private sector employees is $46,270. Some simple math helps you find out that the average private sector worker makes $42,416 which is almost $8,000 LESS than state workers. Not to mention, we private sector workers pay for our medical plans…which the state workers don't.  State workers (as illustrated below) pay nothing for their healthcare or their family's healthcare unless they want the ultra-high end plan with little to no office co-pays and other "perks" that many private sector employees don't even have the option to purchase. The chart below details the payouts from the state and from the state employees per month in order to receieve the plans.  You will also notice that they pay a whopping $193 per mth for the highest end plan.  The average private sector worker pays around $250 per mth for a MUCH less comprehensive plan.  In fact, the avg private sector worker pays $250 per month for the same plan that the Delaware state workers pay $82.44 per month for.

Oh and their definied benefit package which they call "prudent planning"?  They contribute 3%. jus like the average private sector employee.  So what is the difference?  The state contributes 7.5% MORE to that plan but in the private sector you MIGHT get the 3% matched by your employer if you are lucky.  The real problem is that the average private sector employee contributes to a defined CONTRIBUTION plan that grows as you contribute which is called a 401(k) whereas the state workers contribute to a defined benefit package that grows at an ASSUMED rate (meaning it could grow less or more) of 8% per year.  NOTHING is growing at 8% per year right now and that is why these plans are rarely offered in the private sector.  These plans are usually only seen in industries where unions control the collective bargaining and negotiations.  Unions have such a stranglehold on political candidates and wield so much power today that they often have a TREMENDOUS advantage over corporations and even governments.  Let's remember here that While that doesn't mean we shouldn't honor the committments we've made in the past, these are CLEAR reasons why we should follow the example of Gov. Walker in Wisconsin and restructure the deals going forward.  A final look over the pension funding shows that Delaware has about $700 million in unfunded liabilities.

It's pretty clear from our look over the FACTS that the union leaders and their spokespersons are at best misleading Delaware citizens and at worst, out right lying to the people.  I will leave it to you to decide which it is but the facts are unmistakeable.  State workers make more than private sector workers on average, they pay less for their healthcare benefits and they contribute far less than the average state worker to a pension plan that most people couldn't even dream of.  It's time to fix our fiscal house and it's time to decrease the size and scope of our government.  Noone wants to see people unemployed but unfortunately, that means we have to look into how to make government more efficient and how to transition public employees to private sector employment.  Of course, that means that the government will have to actually help the private sector create jobs, something Alan Levin and Jack Markell can't seem to wrap their arms around...but that's for another post.

New Castle County is more BROKE than we thought

Recently, the News Journal broke stories (2 months too late) that prove Chris Coons is nothing short of a liar.  Both were from a report by Independent observer Dace Blaskovitz.  Coons spent more than 6 months telling Delawareans (especially New Castle County residents) that he was responsible with the County finances and that it was not in trouble.  He told us that everything was fine and that he was able to save the county from the brink of a fiscal meltdown.  Today, the News Journal's Chad Livengood has another story on the fiscal woes of New Castle County.  The new County Executive, Paul Clark (the man of a thousand ethics problems), has put in place a 30 person transition team ($$$$) to figure out how to get the county out of the HUGE hole it's in. 

What hole you ask?  If you've only been listening to Chris Coons, Paul Clark, Tim Sheldon and the rest of the Democrats in New Castle County government you would be unable to see the huge hole in county finances that they were hiding.  If County Council did not know the MASSIVE gap between spending and revenue existed then it is time to fire every single one of them (and this includes Councilman Weiner if he knew and was silent).  Folks, this is an absolute TRAVESTY of justice.  New Castle County began the new millennium with a $200 million SURPLUS and by 2015, if nothing changes, we will be $68 million in debt.  It will have swung 134% in the opposite direction.  This is DESPITE an increase in sewer fees of more than 60%, increases in other fees including the introduction of a new fee on contractors and a 54% increase in property taxes.  Does this sound like fiscal responsibility to you?  Could you do this at home?  Let's say you already had a huge savings account but were spending more than you made and you asked your boss for a raise of more than 60% and got it.  Now your pay has increased by more than 60%, you are spending all of your income and you still are eating into your savings account at more than 6% per year . You are to the point where you will be IN DEBT within 4 years.  Would it be time to go your boss for another raise or perhaps to address your spending habit?

Well according to Clark's transition team ($$$$) it's time to come to you for a raise.  Oh, Clark doesn't think that you property owners can afford more property taxes.  Instead he and his team will focus their "revenue enhancements" on "raising sewer bills to pay for federally-mandated improvements, charging for inspections of rental homes, cutting grass in county parks less frequently and county-wide reassessment of property values."  No mention of selling county land BACK to the private individuals who managed it before (like Carousel Park which was a net PLUS before the County took it over).  The report also calls for personnel cuts but it does not get specific except to say that the county should hire MORE employees in key areas.  In fact, the finance committee ($$$$) stated that it did not want to recommend specifics to actually FIX the structural problems with County government yet later in the report they call for Clark to lobby the General Assembly for the same 911 tax that Chris Coons lobbied for in 2007. 

The countywide reassessment of property values would be painful to some and easing on another.  The fact is that it MUST be done.  Homeowners today have their land values assessed at the 1983 level.  That's the same value as houses built almost 30 years ago.  Also addressed by the transition team is the suggestion that Clark address the county employee pay and benefits.  Currently many (mostly union members) county employees are receiving step increases annually and have MASSIVE pensions that are coming due more and more rapidly.  About 45% of the 1,400+ full-time county employees currently receive "step raises".  On the pension front, the report calls for the county pensions to be rolled into a more manageable 401(k) plan that is in line with private sector benefits.  This has of course, set the public employees unions into a tizzy.  Some of the county leaders have shouted that Coons and Clark have filled vacancies and then forced current employees to take pay cuts thereby punishing current employees.  ENOUGH!  I'm sick and tired of this stupid argument, hurting current employees by hiring new ones.  FOR YEARS the suggestions from every transition team and independent audit has been to deal with two things:

1. Public employee Pensions
2. The cost of the size of government (a.k.a. personnel costs)

And for years the unions and county managers have screamed that the county politicians are hiring new people and screwing current employees.  Meanwhile politicians have asked for the unions to take pay cuts.  Folks, they are both right!  The bottom line is that vacant positions must be eliminated and public sector employees must take cuts to pay and benefits.  It's unsustainable as it stands and the people don't want the cost for the services they are provided.  It's THAT simple.  That may mean we have to cut services or do more with less.  That is an issue that private companies face every single day.  It's called a tough choice and these politicians claim that they make them every day.  They are lying to us.  Their answer is to raise fees, that's the easy way out.  It's like us telling our bosses that we are going to TAKE a raise and not simply asking for it.

Folks, how long will we continue to sit back and let these people take every dollar we make in taxes?  When is enough going to be enough?  A sewer fee is no different than a property tax folks.  It's a tax in a different area of our life but it is a tax.  Are we that STUPID New Castle County?  Where is the line?  Please tell me, comment here, let me know, where do we draw the line?  When do we hold Chris Coons, Paul Clark, Tim Sheldon and the rest of these people accountable?  Electing Tom Kovach doesn't hold them accountable, Tim Sheldon is still on County Council.  Electing Tom Kovach is a STEP in the right direction but folks we need to elect people who will actually TAKE these steps that need to be taken.  We need to stop the union control of the county and work to bring the county back in line.  By balancing county government we will be able to focus on job creation in the private sector, returning companies like Dupont and others to prosperity by opening up new opportunities to bring their business efforts BACK to Delaware.  I say the time is now, what say you?