Showing posts with label chris Coons. Show all posts
Showing posts with label chris Coons. Show all posts

Tuesday, September 11, 2012

9/11 - A Day to Remember



9/11 is upon us again.  This is usually the time when I tell you about where I was when theworld stopped turning on that September day in 2001.  I explain that as a Marine, stationed in North Carolina on that day, I was instantly imbued with a sense of duty that I had never felt to that time and I tried to explain something that really, only those who remember Pearl Harbor could appreciate.  Today, I’m not going to go through all of that.  9/11 serves as a reminder to all of us that our world is a dangerous place but it should also serve as a reminder of what America is and who we are as individuals.  There were no divisions on that wretched day as twisted metal and crumbling concrete rained down upon NYC, D.C. and as heroic passengers gave their own lives in the last full measure of devotion to their fellow man and their nation in Shanksville, PA.  The terrible cost gave way to a glorious outpouring of love and service.  There were no divisions on that day.  Race, color, creed, even nationality were discarded as a means of disunity and all of us pitched in together to rescue those stranded, to provide life giving blood to those who needed and to support the first responders who rushed headlong into the fray.  It’s time to stop focusing on the tragedies, remember them, and honor those who suffered, but focus on who we were in a time of chaos and confusion.  We were Americans! 
Again, we are being tested although this time there is no foreign terror organization to blame and no enemy to combat.  Our nation faces serious financial troubles and as we close in on yet another election, we are left to ask, where do we go from here?  Who are we now?  Today, as Delaware’s Primary elections are taking place in the Republican and Democrat parties and in the wake of two of the most watched political conventions in history, instead of focusing on where we’ve been, I’m going to tackle the question, are we better off than we were four years ago.  I won’t look at things so much nationally, although we will cover some things nationally but I’ll focus mostly right here, in Delaware.

Are you better off than you were 4 years ago?  That question was circulated around the Democratic National Convention and Delaware’s elected officials were chomping at the bit to answer it.  To a man, they all said, “Yes”.  (Chris Coons) (Joe Biden) (Jack Markell) (Tom Carper) But I’m not so sure that they are right.  Let’s look at a few economic factors and decide if we are better off today than four years ago.

Gas prices
Nationwide, when President Obama took office, after the worst collapse since the great depression, the average price per gallon of regular gas was $1.86 but today, a gallon of gas nationally will average about $3.86.  Here in Delaware, when President Obama took office, we were paying $1.75 and today, the average is $3.79 per gallon of regular gas (although I just paid $3.95 at a Shell outside of Wilmington).  So clearly, by any standard, the price of gas has risen by $2 in 4 years. 
How Do We Fix It?
There’s no sense in simply tearing someone down.  We need a plan to fix the problems we face or we’re just complaining and there’s no sense in that.  So how do we tackle high gas prices?  We embrace safe and responsible fracking operations, open up drilling and stop burning our food supply as fuel (ethanol).  Despite claims by unscrupulous and biased documentary filmmakers, the fact is that even the Obama EPA has had to admit that when done properly, fracking poses almost no danger to ground water, reservoirs or other water sources.  American natural gas and shale oil energy potentials are estimated to provide more than 200 years of clean, affordable energy and could cut our imports from the Middle east by as much as $200 billion per year.  Furthermore, while the administration rightly points out that there is more drilling in the private sector taking place today, what they fail to mention is that there is less private land on which to drill as the federal government has sucked up much of our resource rich ground and refuses to allow safe and responsible U.S. oil producers to use it.  They do however, allow Brazil and China, nations who do not possess the ecological sense of duty that Americans do, to drill on our lands.  Finally, ethanol is consistently touted as the green fuel of the future and it’s been so deeply embraced that it’s hard to find a station that doesn’t have E85 blended ethanol as the standard.  Unfortunately, while it may be greener on a one to one basis, the reality is that ethanol reduces fuel economy and therefore it takes more ethanol burning to go the same distance as it would with gasoline without ethanol.  At best, ethanol is a wash in terms of pollution and at worst, it unnecessarily drives up the prices of both fuel and food (ethanol is commonly made from corn, soybeans, sugar cane and switch grass).

Jobs
In 2009, when President Obama and Governor Markell took office, the national unemployment rate was 7.8% and Delaware’s unemployment rate was 6.9%.  Today, after 4 years of their economic policies, the national jobless rate stands at 8.3% while Delaware is at 6.8%.  These are the U-3 numbers which is the rosiest picture.  This doesn’t include ‘discouraged workers…persons who are not in the labor force, want and are available for work, and had looked for a job sometime in the prior 12 months. They are not counted as unemployed because they had not searched for work in the prior 4 weeks, for the specific reason that they believed no jobs were available for them.”  Nor does it include people who have had to take part time jobs who would otherwise be working full time jobs.  Those numbers are found in the U-6 database and they are staggering.  The U-6 number today is 15.3% (12.1% in 2009) and in Delaware it’s 13.3% (10.7% in 2009).  Nearly 30 million Americans and nearly 60,000 Delawareans are unemployed or underemployed.  You’re not being told the truth by our government.  4 years ago, Delaware maintained one of its two auto plants, the promise of thousands of green energy jobs and hope for those who were being laid off.  Today we’re crippled by the failures of Fisker, Blue Water Wind and the corruption of the Bloom Energy deal that saps money from Delmarva customers to pay for unproven and unrealized potential.

How Do We Fix It?
Even the rosiest of pictures shows that the Obama/Markell jobs plans are simply falling flat.  At the very best, they are maintaining unemployment at ridiculously high levels.  Unfortunately for Delaware, while tackling our energy problems will create millions of good paying, private sector jobs in the energy rich states nationwide, it won’t help us much here in Delaware where we have little square footage and not much energy potential.  Delaware needs to rebuild itself and rebrand itself.  Gone are many of the banks and large enterprises who previously helped Delaware be the corporate capital of the world, gone are the auto plants who employed our blue collar workforce and going are companies like Astra Zeneca and DuPont who have for so long sustained us in tough times and in good times.  There has to be a two pronged approach to job creation in order to make sure that it sticks.  First, Delaware needs a shot in the arm to stimulate the markets.  We can accomplish this through slashing investment and capital gains taxes, reducing our corporate taxes and cutting regulations that choke businesses.  Opting Delaware out of the Obamacare legislation, reducing the power of the PSC and repealing RGGI and the RPS will immediately create opportunities for manufacturing and enterprise businesses to return to Delaware.  Next, Delaware needs to be able to sustain jobs over the long term through serious regulatory reform, tax breaks for companies who hire Delaware residents, incentives for rehabilitation of targeted growth areas including the reuse of existing structures and targeted incentives for companies who invest in Delaware’s infrastructure.  This approach will create long term growth in our state and help to revitalize and rebuild struggling communities while ensuring a fair and open playing field for all businesses.

General Economy
The fact is that the loss of jobs, the skyrocketing price of energy and the lack of confidence in our leaders to fix these problems has led a national economy that is growing in drips and drabs at best and at worst is only giving the false appearance of life.  Despite massive spending on stimulus, bailouts for big banks, a practical takeover of the American auto industry and the passage of the Obamacare bill that was supposed to entice businesses into hiring, our nations growth is barely stagnant at less than 2% growth.  The future is not much brighter with tax hikes looming and businesses still unsure of what employee costs will be.  Here in Delaware, Governor Markell has placed a heavy burden on corporations that had long sustained us while making crony deals with political friends and party backers in Fisker and Bloom.  In short, our leaders in Dover have put politics over people and cronyism over job creation.  Like the nation, our growth rate is below 2% and more and more Delaware residents are turning to social welfare services to try and make ends meet.

How Do We Fix It?
The first step in the process of getting out of a hole is to stop digging the hole.  Delaware’s partisan political class, a group of people largely made up of a single party, must be reigned in and held to account for their action and inaction.  We must replace the single party rule in Dover with new faces and fresh ideas.  Throwing money at our problems hasn’t solved them yet and it’s not for a lack of trying.  Our nation is a nation built around the idea of individualism and service to our communities and we must tap the potential of our unbridled talent by unleashing the power of our people.  First, common sense tells us that in a time of fiscal turmoil, raising taxes is a bad idea.  When people are already struggling, pressing more burdens on them is both unfair and harmful to any chance of a recovery.  Instead, we should lower individual income taxes to put more money in the hands of consumers to stimulate the local economies.  While we’re on the subject of tax cuts for Delaware’s working families, we must recognize that without the means to create jobs, tax cuts to the middle class are a temporary benefit at best.  We must also cut our investment taxes and make it easier for those who have the means to invest in Delaware companies to do so.  Much ado has been made about the “rich” paying their “fair share” and I’d be remiss if I didn’t point out that nationally (even with the “Bush tax cuts” in place), the top 10%, who make over $112,000 per year, pay more than 70% of the entire income tax burden and the top 50%, those making more than $32,000 annual account for almost 98% of our national income tax burden. In Delaware, those with an income of $200,000 or more, the folks that we’ve been told “aren’t paying their fair share” account for just 2.6% of all the tax returns in Delaware.  They also account for 29% of Delaware’s portion of the Federal Income Tax and 33% of Delaware’s State Income Tax revenue.  That means that the other 97.4% of Delaware residents combine to cover 67% of the Delaware State Income Tax.  Any rational view of these numbers would lead one to ask, “What is ‘fair’?”  We can turn our future around but it really requires us to do all of the above.  Address our energy needs by supporting low cost, domestic energy sources that can power us into the next century, creating jobs that are sustainable in the private sector and decreasing the financial burden on our citizens to allow them the opportunity to grow and thrive and lead us out of the recession.   

Thursday, January 20, 2011

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?

Thursday, January 6, 2011

Blaskowitz lays out his report

Yesterday, Dace Blaskovitz, who set New Castle County a buzz with his report on county government finances and their dire situation, wrote an op-ed in which he detailed what he believes is the problem with county government.  His report received lots of attention when columnist Ron Williams wrote his own opinion piece agreeing with Dace.  Blaskovitz states that "NCCo government is simply unsustainable" in his report and points out that "from 2005 to 2010, NCCo property tax rates increased 55 percent. Sewer rates increased more than 60 percent from 2005 to 2011."  Despite these increases, New Castle County government outspent revenues and blew through a previous surplus.  "From 2000 to 2009, pension assets increased $9 million, while the county's unfunded accrued actuarial liabilities increased over $140 million."  This includes problems like "The county pension assets currently total about $350 million", and "The retiree health care cost is a nearly $250 million unspoken future black cloud."

Blaskovitz takes particular aim at the county's pension, retiree health care and the number of employees because the county has let things get so out of control.  He cites an example of retired New Castle County police officers who "receive a never-ending, no-cap 3 percent compounding COLA. Therefore, most NCCo police will average...the same compensation in their retirement as when they were employed. For reference, an NCCo police officer with five years experience is paid around $85,000 a year (in salary alone)."  Dace points out that 75% of the county's spending occurs in the personnel field.  The size of county government is astounding, the county employs around 1,500 people and most are full time employees.  This places New Castle County government in the list as the 5th largest employer in the State of Delaware, with more employees than Barclays Bank and ING Direct combined (state government is the largest).  New Castle County has "Almost 100 full-time county employees are paid close to or more than $100,000. With few exceptions, gold-plated health care extends to the grave."

Blaskovitz smacks readers in the face with his honest assessment of the county financial situation (where was this in October when former County Executive Chris Coons was lying to the public about New Castle County I wonder) when he writes, "after years of delaying executive decisions, hoping an economic bounce would magically undo the dilemma, dwindling reserves are now forcing a day of reckoning."  Dace further points out that the unions aren't done asking for more and more county tax payers.  He doesn't just spotlight the county problems, Dace presents solutions that I for one agree with.  He suggests that "citizens should demand a reduction in head-count. NCCo's actuary has pension and health care proposals waiting for action. Salaries have to reflect the balance sheet. Perhaps a spending oversight board would assist in fiscal restraint."  He even calls for the possibility of merging or consolidating New Castle County, municipal and city infrastructure where practicable which is something that Republican County Council President candidate Tom Kovach has pointed to as an area he would work to attack immediately.  While the Democrats who joined Blaskovitz and Republican Wayne Smith on the committee that put together the report issued a suggestion that the county raise taxes AGAIN, Dace suggests that " it is unconscionable for "revenue enhancements" to even be mentioned in our report."  He calls for county government to tighten its belt instead of heaping their bad financial practices on the people of Delaware.

Wednesday, January 5, 2011

New Report: New Castle County is BROKE!

The News Journal is only 2 months late in reporting a startling fact that may have turned the tide of the November elections.  In an article printed today (January 5th 2011), columnist Ron Williams laid out the news that New Castle County is flat BROKE!  This news did not come from the Caesar Rodney Institute or a conservative think tank but straight from the incoming County Executive Paul Clark’s own transition team.  A report from Dace Blaskovitz, a member of Clark’s transition team, shows that now Senator Chris Coons lied to the citizens of Delaware when he said that New Castle County’s finances were in good shape and misrepresented the job he did as County Executive.  Despite calls by Coons’ opponent, Christine O’Donnell to investigate the actual state of the county’s finances, the Wilmington News Journal ignored the obvious dire straits that New Castle County faces and instead relied on a report by credit rating agencies that New Castle County received a AAA bond rating  as proof of sound fiscal practices.  The same rating agency that gave New Castle County a AAA bond rating failed to anticipate failures at the nation’s top banks, AIG and GM/Chrysler. 

Williams goes on to point out that Clark’s transition team has recommended yet ANOTHER increase in property taxes.  Coons raised them three times during his terms in office including a 25% spike in 2009 coupled with a 5% pay cut for County employees.  The alternative to another tax increase is a combination of leaving open vacant positions and/or the laying off of more than 120 workers.  Blaskovitz confirmed what Ms. O’Donnell and her campaign staff had been saying though out the campaign, that the County’s fiscal situation was much worse than Coons was admitting to.  According to the report filed by Blaskovitz and former House Majority leader Wayne Smith, the county’s debt has more than doubled in the last 5 years while property taxes went up 55% and sewer fees went up 60%.  These numbers are in line with what the O’Donnell campaign had told the public and what the News Journal had refused to point out throughout the election.   Despite claims by Coons that he had cut hundreds of millions of dollars from the county budget, Blaskovitz points out that “government spending outpaced revenues”.   Blaskovitz writes, "while the county's unfunded accrued actuarial liabilities increased over $140 million. Retiree health cost is nearly $250 million," and he points out that pension assets went up by $9 million since 2000 when Coons took over as County Council President under Tom Gordon.

Coons had spent the campaign telling Delawareans that he had managed to keep New Castle County’s head above water despite a tumultuous economic time period.  In retrospect, Coons succeeded at simply burying the problems NCC faces.  Blaskovitz goes on to say, "So after years of delaying executive decisions hoping an economic bounce would magically undo the dilemma, dwindling reserves are now forcing a day of reckoning."  As O’Donnell had pointed out repeatedly throughout the campaign, much to the chagrin of those listening, Blaskovitz (whose financial resume is extensive), suggests that these problems cannot (and never could) be solved by raising taxes and fees but instead by “immediate belt-tightening”.   This report shows that Chris Coons and his Democrat comrades lied to the people of Delaware during the campaign and it shows what Coons will do as a U.S. Senator.  At a time when we need MORE fiscal responsibility, we have sent someone with less.  At a time when we need MORE openness and transparency in Washington, Delaware has added more deception and “creative accounting”.  At a time when we need real leadership in Washington, we have sent a man who buckles under pressure, lies to his constituents and buries the truth.  In the end, this may have been averted if the people of Delaware had heard this kind of unbiased information from an independent source like, the Wilmington News Journal.  Unfortunately, this information came 2 months too late for Delawareans to really understand the man they sent to Washington.  Perhaps they should have sent a woman.