Archive for the ‘Budget’ Category

Instapundit’s Favorite Word

Tuesday, February 19th, 2013

See if you can fill in the blank for the following headline:

“Homebuilder Confidence in U.S. BLANK Fell in February”

Having trouble? Try again with the first sentence

“Confidence among U.S. homebuilders BLANK dropped in February from a more than six-year high, a sign the real-estate market will take time to accelerate.”

If you’ve been reading Instapundit for any length of time, you know exactly what the word replaced with BLANK is. And that word is “unexpectedly.”

Gee, how could anyone possibly have seen that continued high unemployment and an economy that is shrinking might negatively impact the housing market? (And of course, when the economy shrank, the shrinkage happened “unexpectedly.”)

Obama and friends keep trying and trying neo-Keynesian pump-priming and keep getting the same results: economic stagnation. While trying the same thing over and over again and expecting different results is the definition of madness, that doesn’t matter to them, since it allows them to continue the payoffs to cronies and interest groups that keep the Big Government Class in power (and rolling in taxpayer dough). Germany and Estonia performed no or minimal “stimulus” deficit spending and their economies are growing again. Obama and congressional Democrats have taken the opposite tack: Keep pouring money down the big government rathole and hope that results this year won’t be identical to the last four. My prediction: higher deficits, continued high unemployment and continued economic stagnation.

And each and every negative economic indicator the media will report as arriving “unexpectedly.”

Expect it.

Texas vs. California Update for February 13, 2013

Wednesday, February 13th, 2013

Busy day! Here’s a quick Texas vs. California roundup:

  • Texas economic success is no mirage.
  • More on Rick Perry’s California raid. “I’d take free-market capitalism over socialism any day, and that was the decision that we made,” said Waste Connections Inc Chairman and CEO Ron Mittelstaedt. “He added that it took Waste Connections 16 months to design and build a new, 11-story building in Texas, including eight weeks for permits. He estimated it would have taken three years just to get the permits in California. The California Environmental Quality Act is often cited by critics as a major cause of pointless delays on construction projects in particular.”
  • California’s aversion to both nuclear power and fossil fuels will probably cause blackouts in the state this year.
  • “Thanks to appointments by Gov. Jerry Brown, the Public Employment Relations Board has gone from an obscure agency to a union front.”
  • The Milkin Institute’s Kevin Klowden takes a brief look at which state has a better business climate. “California’s higher costs and a difficult-to-navigate regulatory system mean that a split has developed. While research and development and innovation are more likely to stay in California, companies often expand or move their back offices and new manufacturing to Texas.”
  • Quick Notes from the TPPF Gun Control Conference Call for February 11, 2013

    Monday, February 11th, 2013

    I sat in a Texas Public Policy Foundation teleconference on the current state legislative session, the main topic of which was Texas efforts to fight Democrats gun control agenda at the national level. On hand were Arlene Wohlgemuth, Mario Loyola and James Golsan, though I believe all the gun control points were from Loyola. Here are a few very brief notes on the call:

    There are three main legislative to avoid federal gun control laws being enacted in Texas:

    1. Nullification: Refuse Cooperation. “We don’t think this approach is constitutional or can prevail.”
    2. Keep state employees from becoming agents of the federal government. “Printz vs. United States struck down part of the Brady Act that forced state officials to enforce federal law.” Make it illegal to cooperate.
    3. Gun control version of TSA Groping bill, Rep. Otto sponsored (HR 553). “Arrest those trying to enforce unconstitutional laws, sort it out in court. High risk, high reward.”

    Some Republicans losing their nerve against fighting ObamaCare.

    Loyola: There’s a difference between setting up exchanges and Medicaid expansion. Later is holding a gun to our heads and will bankrupt our country. It’s important for Texas to hold the line rather than giving into blackmail with their own money. Republican governors need to hold the line to prevent Texas from going it alone.

    Once again a federal judge wants Texas to spend more money on education ($2,000 more per student). Smart play is to appeal and take no legislative action while the issue works its way through the court.

    Texas vs. California Update for Feburay 7, 2013

    Thursday, February 7th, 2013

    No sooner did I post yesterday’s California vs. Texas update than all manner of related news pours forth.

    First, I missed the news that John Stossel did a story on Texas vs. California back in January. That link takes you to the whole thing (which i haven’t watched yet), but here’s a taste featuring ex-Californian and current Texas Public Policy Foundation vice president of policy Chuck DeVore:

    Naturally, the states media outlets are trying to downplay Texas’ advantage. Fortunately, here’s DeVore again debunking their claims good and hard. Read the whole thing.

    Earlier this week, Texas Governor Rick Perry went on the offensive with a radio ad in California suggesting businesses relocate here:

    Needless to say, California’s liberal establishment is perturbed.

    Texas vs. California Roundup for February 6, 2013

    Wednesday, February 6th, 2013
  • CalPERS: the pension fund that ate California. A tale filled with lies, waste, and outright corruption that’s even worse than I thought (and I thought it plenty bad).
  • Via the indispensable Will Franklin comes this eye-opening comparison of welfare in California vs. Texas. “As you can see, California is practically in a quadrant unto itself, indicating a lot of people receiving a lot each in welfare benefits. Meanwhile, Texas is situated precisely in the opposite corner of the graphic, indicating that a low percentage of Texas’ residents are receiving welfare, and among those who are receiving welfare, they’re receiving smaller benefits than those living essentially anywhere else in the country.” Read the whole thing. And get a gander at the chart.
  • Jerry Brown gets voters to approve a measure that cuts California public employee union pensions a tiny, weensie bit. The result? “California Public Employees’ Retirement System is essentially going to defy the order that pensions will be calculated based on base pay by declaring enhancements and bonuses are part of base pay.” And some unions are suing to opt out. And Brown isn’t even willing to defend the reforms in court.
  • “The highest-paid 10 percent of Southern California Edison employees earned at least $418.8 million in combined total compensation during 2011, and charged at least $11.8 million to their expense accounts, according to a report the public utility filed with the state. SCE’s most recent annual report showed 19 executives and other SCE employees received more than $1 million in total compensation during 2011, and at least 130 others received $300,000 or more in total compensation.”
  • Judge in Stockton bankruptcy: Sure, it’s OK to screw bondholders. Go right ahead.
  • Professional athletes are leaving high tax states like California for low-tax states like Texas and Florida.
  • At least Texans know how much they owe.
  • Here’s the official Texas state document on local debt. Texas cities, alas, haven’t been nearly as frugal as the state legislature has been.
  • Speaking of not being as frugal as they could be, here’s the place to search Texas pension funds. I might delve more into these two links when I have time.
  • Texas Public Policy Foundation on keeping Texas competitive.
  • And if you haven’t kept up with Dwight’s updates on the Bell corruption trial, you really should.
  • Rick Perry’s State of the State Address

    Wednesday, January 30th, 2013

    Rick Perry delivered his State of the State address on Tuesday. Here’s the complete text.

    And here’s the speech itself:

    A mixture of interesting tidbits on the Texas success story, some generic inspirational boilerplate, and some broad outline policy proposals.

    Good: More constrained spending, tax cuts, no ObamaCare expansion.

    Probably bad: “$3.7 billion from the Rainy Day Fund for a one-time investment in infrastructure programs.” There are, in fact, some infrastructure improvements that would be made around the state, but Perry has occasionally supported infrastructure boondoggles (like the Trans-Texas Corridor) in the past.

    The general outlines are very good, but the devil is in the details, which should be forthcoming in the current legislative session.

    California: Completely Screwed

    Tuesday, January 29th, 2013

    Instead of going out and doing the heavy lifting myself on a Texas vs. California update, Victor Davis Hanson [[Corrected. – LP]] has done another of his California is totally screwed pieces, and it’s a cornucopia of facts on California’s decline.

    A few tidbits:

  • Salinas just named an elementary school after a serial cop killer
  • Racist Latino gangs are now driving black families straight out of Compton
  • “Hundreds of thousands of the working and upper-middle class, mostly from the interior of the state, have fled — maybe four million in all over the last thirty years, taking with them $1 trillion in capital and income-producing education and expertise. Apparently, they tired of high taxes, poor schools, crime, and the culture of serial blame-gaming and victimhood.”
  • “One of every three welfare recipients lives in California.”
  • Read the whole thing.

    Texas vs. California: January 24, 2013 Roundup

    Thursday, January 24th, 2013

    Meant to put some of these up with Tuesday’s roundup and just misplaced them:

  • Orange County pension members find out that it’s not about politics, it’s about math.
  • Jerry Brown’s ostensibly balanced budget does nothing to pay down huge pension liabilities.
  • In the quest to shake ever-more-money out of the pockets of taxpayers, California just ignores that pesky “no ex post factor laws” section of the Constitution, eliminating a tax credit retroactively back to 2008.
  • More on that Moody’s recalculation of liabilities:

    Six California counties with their own pensions (instead of paying into the Golden State’s Public Employees’ Retirement System) would actually have to pay down $10 billion in pension deficits, versus the $4 billion they currently report bad on inflated rates of return. As a result, these counties would be expected by bondholders to pay out $1.4 billion a year just to pay down their pension deficits, more than double the $640 million they currently pay. For Contra Costa County near San Francisco, the percentage of property tax dollars devoted to pension deficit pay down would increase from 33 percent to 54 percent, crowding out funding for basic municipal activities. In short, these governments would be considered technically insolvent under Moody’s model.

  • That recalculation and other reforms should make California’s pension debt crises even more apparent.
  • CalPERS has a lot of ‘splain’ to do. Their rate of return and assets under management simply don’t add up.
  • It certainly can’t help that CalPERS managers are double-dipping for their own benefits.
  • High California taxes are one of the reasons the Sacramento Kings are about to become the Seattle Supersonics 2.0. Which seems fitting: the tax-and-spend kings in Sacramento don’t deserve a basketball team.
  • John Stossel: “It’s good that we have places like Texas and New Hampshire to which fed-up citizens can escape. In Europe, you’d have to leave your country to escape its worst laws.” And one of the states they’re escaping is California, “the Greece of America.”
  • Meanwhile, Texas notched its 72nd consecutive month with unemployment rates below the national average.
  • Texas vs. California: January 22, 2013

    Tuesday, January 22nd, 2013

    Another quick roundup of Texas’ economic strength, and California’s blue state decline:

  • California isn’t just running out of money, it’s running out of children.
  • Thanks to more honest accounting rules, six more California counties are now officially bankrupt.
  • Despite which, pension funds are still in denial.
  • If Jerry Brown is skeptical about making government bigger he has a funny way of showing it.
  • Namely, he continues to kick the can down the road.
  • And he’s still handing out outsized benefits to public employee unions.
  • Texas is adding jobs across all income groups, and has more jobs than when The Great recession began. California hasn’t broken even.
  • The Texas economy is outpacing other U.S. states because “it has the financial strength of Germany and the cost competitiveness of China.”
  • Brief Impressions of the Texas Public Policy Foundation’s 2013 Policy Orientation

    Monday, January 14th, 2013

    I enjoyed attending what little I could of the Texas Public Policy Foundation 2013 policy orientation held January 9-11. Here are a few quick and largely random impressions:

    Because I just started a new day job, I wasn’t able to attend until Thursday evening, which meant I got to enjoy Austin’s lovely rush-hour traffic on Mopac and only got to hear about half of Ted Cruz’s pre-recorded message. (Cruz was originally scheduled to appear with Sen. John Cornyn, but had to fly off to Afghanistan and Israel on a Senate Foreign Relations trip. Cruz also appeared at lunch that day, a session I was unable to attend.) Then it was time for Texas’ senior U.S. Senator, John Cornyn, to be interviewed.

    He defended the Fiscal Cliff deal as necessary to avoid a huge tax increase. He talked about the Senate’s inability to pass a budget. “Shame doesn’t work on Harry Reid.”

    On foreign and defense policy, he noted (correctly) that keeping the American people safe is the number one responsibility of government. Cornyn says he’s opposing the nomination of Chuck Hagel and dinged Obama over Benghazi. “If the President and his Administration had been honest about Benghazi, they’re wouldn’t have been a scandal.” (Paraphrased.)

    Cornyn also displayed a certain tone-deafness in regard to his audience. When asked to mention possible 2016 GOP Presidential candidates, the first name Cornyn mentioned was NJ Governor Chris Christie, which drew audible groans and hisses from the audience, for good reason.

    After the Cornyn speech there was a blogger met-and-great at Rivals Steakhouse. I met a bevy of state Reps whose names quickly blurred together, as well as Ashley Sewell, AKA @TXTrendyChick, who I had already been following on Twitter, and a bunch of other bloggers. Most interesting bit of off-the-record gossip: Confirmation of my Rick Perry hopped-up on goofballs theory. “When I saw him running around Iowa in flats I knew he was in a lot of pain. The man practically sleeps in boots.”

    On Friday, I took a long lunch to attend the Newt Gingrich luncheon and signing. I sat one seat down from the indefatigable Holly Hansen (who has her own, far more extensive coverage), and @TXTrendyChick promptly plopped down between us. Obviously our table was the place to be.

    I get to hang out with all the cool chicks!

    Lt. Governor David Dewhurst was Gingrich’s warm-up speaker. Dewhurst has improved somewhat since his losing Senate race against Ted Cruz last year, but he’s still not a natural speaker. He tries to cram too many policy points into a speech, and isn’t skilled enough to distinguish between major and minor points. When it comes to conservative policy, he seems to know the words, but doesn’t hear the music.

    Dewhurst’s four points as to why Texas is doing better than any other state (1. We keep our spending low, 2. Keep our taxes low, 3. A light regulatory hand, and 4. Keep state government out of the way) were all very solid. He also promised additional budget cutting; let’s hope he follows through.

    Most interesting parts of Dewhurst’s speech: A clumsily-phrased plea for welfare reform (“I’m not going to pay people to sit on the couch and do drugs,” a proclamation that will no doubt disappoint many members of Occupy Wall Street), and a proposal to arm teachers in the classroom.

    Gingrich came on stage to a standing ovation. He said it was unfair for other states to compete with Texas, since we weren’t raising taxes and spending like California. (This is what people call “sarcasm.”)

    This was definitely Gingrich 2.0 (or maybe 8.6), an idea-a-minute futurist (I’d like to see him and Bruce Sterling bounce off each other for a couple of hours someday). He was saying things about America 2.0, ubiquitous diagnostic cell phones as a health care initiative, having the programmers behind World of Warcraft come up with ways to teach our kids, and puters mkn kdz wrt btr (I iz skptical). It was even more scatter-shot than Dewhurst, but seemed a lot more organic. And he had one truly fascinating factoid: Students taking Stanford’s online classes did better on tests than the ones taking classes in person.

    Gingrich seems genuinely optimistic about America’s future, which is a nice contrast with many of us after the 2012 election.

    After the speech I managed to get him to sign two books for me, To Renew America, and Jim Wright’s Reflections of a Public Man, which he was quite amused by.

    A few more luminaries:

    State Senator Larry Taylor

    State Rep Marsha Farney

    A very dapper Chuck DeVore. He wasn’t born in Texas, but he got here as quickly as he could.

    Hey girl, it’s Josh Trevino!

    Apologies to anyone I didn’t mention, didn’t run into, or didn’t get a picture of (some just didn’t come out well). It was a busy two days!

    And congratulations to TPPF honcho David Guenthner and his many minions, for all the hard work in carrying this off:

    In addition to the copy of Texas Got it Right handed out to everyone, David thrust a copy of DeVore’s The Texas Model: Prosperity in the Lone Star State into my hands. Hopefully I’ll have a chance to say more about both in the not-so-distant future.