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. 

Hillary Clinton Exposes yet another plank in U.S. foreign policy

U.S. foreign policy has consistently changed over the last few years since Obama/Biden/Clinton took over. We saw it in Egypt where not only did President Obama and the U.S. government verbally support the political uprising but they assisted, along with big Tech, in perpetuating the events and called for a U.S. ally in the Middle East to relinquish power while simultaneously ignoring a similar uprising in Iran. In fact, Obama administration fingerprints are all over many of the events in the Middle East and his speech before the visit by Israeli leader Bibi Netanyahu, pronouncing it U.S. policy that the negotiations start at the 1967 Arab-Israeli lines with land swaps, signified a massive shift in U.S. policy in the Middle East.  But yesterday, while watching the dreaded "Fox News Channel" I witnessed a pool video of Hillary Clinton speaking on the topic of the uprising in Yemen (ABC News Story here) where she said the following:

“We cannot expect this conflict to end unless President Saleh and his government move out of the way to permit the opposition and civil society to begin a transition to political and economic reform,”

Now, this struck a cord with me.  I wasn't sure why at the time but the phrase "civil society" sent up red flags in my mind.  Just a few short clicks later and I realized why I was thinking this way.  It turns out that the definition of Civil Society varies slightly but the one most used is the one from the London School of Economics Centre for Civil Society (closed in Septe,ber 2010) which describes it as:

Civil society refers to the arena of uncoerced collective action around shared interests, purposes and values. In theory, its institutional forms are distinct from those of the state, and market, though in practice, the boundaries between state, civil society, and market are often complex, blurred and negotiated. Civil society commonly embraces a diversity of spaces, actors and institutional forms, varying in their degree of formality, autonomy and power. Civil societies are often populated by organizations such as registered charities, development non-governmental organizations, community groups, women's organizations, faith-based organizations, professional associations, trade unions, self-help groups, social movements, business associations, coalitions and advocacy groups.

So basically, Civil Society refers to Community Organizations and unions (ACORN, SEIU, etc.) who operate independent of government and independent of the market systems.  They are groups (non-profits, NGOs, faith based groups, etc.) that the left has used to advance their agenda over the years.  So, Hillary Clinton is calling for Yemeni President Saleh to step down so that the community organizations and unions can begin to take over and reshape the country.  The same unions and community organizations that have instigated revolts all over the Middle East.  They are a mix of Socialist and Islamist groups with differing end goals who are uniting for the short term.  Hmm...that sounds oddly familiar.... but I digress. 

In Yemen, the groups vary from Al-Qaeda and Houthis, rival islamic jihadist groups to The South Yemen Movement and the Yemeni chapter of The Muslim Brotherhood.  There are also influences from Middle Eastern, European and American left wing Socialist groups as there are in almost all of the Middle Eastern movements.  Fundamental transformation indeed. 

What's all the Wisconsin fuss about anyway?

For a few weeks now, our TV news has been inundated with video and images from the protests in Wisconsin and with talking heads constantly battling over whether the public employee unions have a natural right to band together, buy some politicians and then bargain with them over taxpayer money. Most Americans inherently know that this concept is wrong, even the ultra-liberal President FDR stood up against public sector unions. With that said, a favorite lie of the union apologists is that: "Public sector workers get paid less than private sector workers in exchange for better benefits." This is an argument that they use especially with teachers to explain how underpaid they are. Well a friend of mine has provided me with the following information about Wisconsin teachers (and select public employees) and their salary/benefit packages. Underpaid? You be the judge.... Continue reading on Examiner.com: What's all the Wisconsin fuss about anyway? - Wilmington Education | Examiner.com

While the Unions March...we call

Delaware public employee unions march on Wilmington tomorrow, getting paid to protest...paid with our tax dollars.  Let's call into the local radio shows and let them know that we support Gov. Walker, we stand with the taxpayers of Wisconsin who want fiscal sanity and we want the same kind of deal in Delaware.  We want public employee unions to understand that the time for sweetheart deals is over and that it is time for them to share the sacrifice that regular WORKING FAMILIES have made.  Some of us have taken pay cuts, lost more than 60% of our 401k savings and pay exorbitant amounts for healthcare coverage.  No more sweetheart deals on the taxpayer dime.  Let's show the unions that "working people" doesn't just apply to people in the unions.  WE WORK FOR A LIVING TOO...

Here are the call-in numbers for local shows:

1450 WILM
Host - John Watson - 302-395-9456
Hours: 9AM-Noon
http://www.wilm.com/

1150 WDEL
Host - Al Mascitti - 302-478-9335
Hours: 9AM-Noon
http://www.wdel.com/

1150 WDEL
Host - Rick Jensen- 302-478-9335
Hours: 1PM-4PM
http://www.wdel.com/

92.7 WGMD
Host - Dan Gaffney - ON AIR TALK SHOW LINE 302-945-9292, or 1-800-518-9292
Hours: 5:30AM-9AM
http://www.wgmd.com/

92.7 WGMD
Host - Jared Morris- ON AIR TALK SHOW LINE 302-945-9292, or 1-800-518-9292
Hours: 9AM-Noon
http://www.wgmd.com/

92.7 WGMD
Host - Bill Colley - ON AIR TALK SHOW LINE 302-945-9292, or 1-800-518-9292
Hours: 3PM-7PM
http://www.wgmd.com/

Indiana Dems have joined Wisconsin Dems in running for Illinois to hide out.  Below you can see a video of them leaving for Kentucky and Illinois.

Please read my full Examiner article which contains the excerpt below:


What does this all mean for Delaware? Well, as I've mentioned in previous posts, the personnel costs in Delaware are 30% of the total budget. Meanwhile, the leadership of Delaware's public employee unions say:

In Delaware, public employees' health insurance and pension programs do not constitute a huge "budget buster," as they do in other financially troubled states. Our budget woes result primarily from the continuing effect of the Great Recession on state revenues.

Well there must be a fundamental disconnect her because I see 30% of the budget being devoted to employee costs as a "budget buster". The slide show on the left contains a couple of charts that show the benefit packages that state workers recieve and the current underfunding of Delaware's state worker pension packages. Also, let's keep in mind that Delaware state workers contribute 3% to their pension accounts while the state contributes 7.5% to that plan over and above. Add to that the fact that state workers are becomming more brazen and demanding to know "When am I going to get a raise..." even as the Governor is looking at the budget and seeing a nearly $300 million shortfall (almost twice what Wisconsin is closing with their bill). At some point, Governor Markell is going to have to face the facts that DSEA, AFSCME and other unions MUST have their deals restructured to ensure that out state remains solvent. That doesn't mean that we have to destroy the current way of life of union workers. We can institute changes that affect new hires, we can offer early retirement to those who are at the end of their careers and we can make minor changes to the current benefit packages (like increasing employee contribution by 2% and decreasing State contributions by the same amount making the contributions equal at 5% each).

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?

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.