Changing our Schools

On Saturday morning, I stopped at Panera’s to have a cup of coffee with a friend of mine. We had only been sitting at the table for a short time when an acquaintance of mine came over to say hello. He is on one of the local school boards. He opined that the school board was afraid of newly elected Republican Governor Kasich and what he was going to do to the schools. I responded that Kasich wasn’t going to do anything to the schools per se. Our state constitution states the budget must be balanced, and since the Medicaid and schools make the bulk of the state’s budget, that is where the cuts are going to have to be made. You can’t spend what you don’t have.

He then praised Strickland’s raising of the CAT (Commercial Activity Tax) and putting that money towards the schools. Of course, what he didn’t say was it probably cost Ohio tens of thousands of jobs, which depresses the housing market, which lowers the revenue base for property taxes, which is the primary means of school funding in Ohio.

Next he criticized charter schools for bankrupting the local school systems. That comment precipitated another lady, who none of us knew, to come over and join the conversation. She teaches in a local charter school, and roundly gave my friend the proverbial “what for.” Now people were watching us.

Then my friend criticized the voters for defeating several school levies. He said that they just don’t understand. I informed him folks understand perfectly. I live in Canfield, and have four rental properties. If our Canfield local levy would have passed, it would have cost me an additional $2500.00 a year taxes…that is equal to one month’s income from the rental properties. That would be in addition to the two months I am already paying in current property taxes. We are at the end of the road, I said. The well is dry, I said.

People aren’t stupid. They have seen the state spend tens of millions of tobacco settlement money on “buildings”, particularly in the inner city, none of which has improved the schools' preformance one iota. A case in point is Volney Rogers Junior High School, which was relatively new, and torn down for no reason at all other than the school system had some money to burn. Violence in the new East and Chaney High Schools makes the front page of the Vindicator. People have seen dollars upon dollars upon dollars thrown at education, and the output goes down…not up. The answer isn’t in money. The answer is someplace else, and everyone knows it.

It is important that all citizens of Ohio to get involved in finding alternative means of funding the schools. We have been fooled by the elected officials in Columbus. They said the lottery money was supposed to go for schools. It did; but the general assembly then cut existing school funding from the non-lottery budget. The Youngstown City Schools get funding in the amount of $11,000.00 per pupil from the state. Canfield gets $1700.00. How much is enough?

I suspect Kasich will do several things to balance the state budget while improving how our schools operate. At the top of the list will be consolidation of small districts. Next will be unification of generic services for county schools. For example, a county run bus system with a centralized coordinator; county wide payroll services; centralized buying; and a cap on administrative personnel payroll as a percentage of a school systems’ budget. You will also see caps on system admininstrative fees, and perhaps an overhaul of the County Boards of Education.

But more importantly…he will begin the process of moving away from the property tax as the fundamental source of funds for schools. Arguments can be made both for and against this idea. There will ALWAYS be a degree of property tax for local schools, if for nothing else than to allow each consolidated district to maintain a degree of autonomy. But my guess you will see a retreat from property and income taxes, and perhaps a move to a sales tax model. This will not just be for school funding, but for the state generally.

Change is coming whether we like it or not. The more we know, the more we can participate in the outcome. It's time to end the controversy over school funding.

Happy Thanksgiving!!

Happy Thanksgiving! It is a simple phrase that is uniquely American. Even in the worst of times, America has always been a land of plenty. Sure, we have relative poverty in the United States…that means even the poor have access to junk food and cell phones. But in the rest of the world there is absolute poverty, with bloated stomachs and flies and people dying of thirst or starvation. We don’t have that here, and I am thankful.

This past year has been a tumultuous year both in my personal life, and in the life of the country. On a personal level, I have done things and achieved certain goals I thought would have been impossible several years ago. I have sadly said goodbye to old friends who have died or moved away. I have joyfully made new friends that have added new texture of my life. I am singing better. I am fundraising better. I am practicing law better. I am politicking better. I have met some interesting people beyond my reach a year ago. I have had some fun, eaten some good food, taken some trips. I have spent quality time with my family, the most important thing of all.

In the life of the country that I love, I watched Americans rise up and stand up against government intrusion into our lives. While I have seen disturbing things happen that never in million years did I think could happen here, I have also watched and listened as ordinary Americans openly debated the nature of our country, our freedom, our constitution, and American exceptionalism. Not only was it debated, it was debated with an intensity that would have made the founding fathers proud. And on election day, the people sent the elite in Washington a message…the people are still the boss. And if they didn't get the message the first time, the American people will be prepared to send the same message again in 2012.

This past year America has made a choice of growth opportunity over managed decline. We are paying off our credit cards at home, and now we want our government to pay off the credit card in Washington. We are choosing hope over fear, and I don’t mean the false hope of Barack Obama which offers nothing but government dependency. We are choosing the hope self reliance, personal freedom, unlimited economic progress built on hard work. We are not ready to throw in the towel like Britain or France, tossing the American dream on the dust heap of European social democracy.

We have a long way to go as the people continue examine the cause of the current national malaise. But they will sort it out as the themes of free trade but fair trade, an aggressive energy policy, and a common sense environmental policy begin to rise to the surface of the debate. And we will repeal and replace the convoluted health care plan passed by an ideological group of rabid leftists against the express will of the American people.

And a word to the TSA and its bizarre screening plan. The terrorists are not nuns or handicapped or five year old girls. How dare they take away our dignity in the name of political correctness gone awry because we might offend some Muslims. Shame on the the TSA, and shame on Barack Obama for allowing this to happen. This is government out of control in the worst possible way. America will rise up against these indignities, too.

We will take the country back.

For all of the above, I am thankful. God bless America.

The Debt Commission's Homerun

Obama’s much maligned debt commission, issuing a preliminary report, got it right. In fact, the recommendations are a home run. We are in a debt crisis which is effecting every aspect of our life, and everything needs to be on the table. And what is surprising, the hue and cry of criticism has been remarkably muted. America is in the mood to get all of this mess straightened out, and realizes there are no sacred cows.

Among its recommendations is the elimination of the home mortgage interest deduction for mortgages in excess of $500,000.00. Finally!!! While the government and populous has long viewed this sacred cow as an entry way into home ownership representing the America dream; how has that worked out for you? Most experts ask a very logical question. Why should a segment of the population who responsibly attempts to limit the amount of money borrowed against their houses subsidize interest payments for those who use it as a cash cow…which is the effect of this tax deduction!! It skews the prices of real estate, and punishes those who attempt responsible behavior. It is particularly egregious on luxury homes, where rich take the tax deduction and use their money for something else as taxpayers make the interest payments.

Social Security was originally designed as a government safety net for those seniors who probably would die prior to qualifying for the benefit. It has morphed into the government paying for all living expenses once you turn 66 and for the next 20 -25 years. It is a ponzi scheme based on new people coming into the workforce paying for those leaving the workforce at the other end. Whereas before 20 people coming in payed for 1 person leaving, it is almost two to one now! It is unsustainable.

The recommendations are to raise the retirement age to 69 by the year 2075. That is not as goofy as it sounds. Advances in medicine, including cures for cancer and Alzheimer’s disease will most likely extend the average life span to almost 90 years old, and general overall medical care will make people more fit for work for longer periods of time. Hardship provisions will be built into the system for those who have physically conditions preventing them from working over 65…but for the most part this idea is a winner. In addition, it raises the amount of income subject to social security contribution to $150,000.00.

The balance of recommendations is mixed bag of fairly standard stuff. There would be an increase in the gasoline tax by 15 cents per gallon. Government would subject to mandatory reductions in earmark programs and an across the board budget cut for all agencies. Also included is a freeze on federal employee wages (long overdue). Tax rates will be simplified and greatly reduced in exchange for elimination of the alternate minimum tax and other tax deductions which are slights of hand for special interest groups. It is chuck full of all sorts of stuff!!

There has been some rumbling from the right and the left. It reminds me of the immortal rules of the late, great Mahoning County domestic relations Judge Leskovansky: If both parties leave here angry at me, then I have done my job.

It remains to be seen how many, if any, of the recommendations will be eventually adopted. But I am encouraged that difficult issues will now be addressed in an adult manner. For all of the posturing on the left and right wing blogs and pundits, most of America is ready for a serious conversation of those things that are necessary to secure the financial well being of our country for ourselves and our children. Bravo, debt commission!!

Republican 2010 - A Tempered Victory

Back in the 2008 Presidential election, I wrote that every twenty years or so the American public flirts with liberalism, and is then reminded to avoid it for another twenty years. Johnson, Carter, Clinton, and now Obama have been the deliverers of the liberal message, and the recipients of the public boot, either directly or through a massive change in Congress.

But this time is different. As far as the public is concerned, Republicans aren’t much better than Democrats. It’s a matter of which devil you prefer. I agree with the pundits who say that the Republicans are now on probation. The country wants the Republicans to act and solve problems, but it won’t be easy. Obama’s approach was to ease the pain by massive federal subsidies. It dulls the ache, but nothing gets better. The Republican approach will be to get the bad stuff and pain over with quickly. It’s gonna hurt; but we will come out the other end stronger…or so goes the theory.

In my humble opinion, this recession is not the result of the ordinary ebb of economic activity. It is systemic. There has to be major governmental course corrections in three areas before the economy can become normalized. I repeat them here again:

1) Normalization of the trade imbalances with China. We are going to have to get tough with Chinese currency manipulations and a Chinese economic plan based on exports rather than internal growth…which it could do if it so chose.

2) An aggressive energy policy. We are going to have to expand our energy supply in all directions with a view to creating energy for energy’s sake rather than a tool of environmental global warming policy. Drill here. Drill now. Build nuclear plants. Build solar and wind farms. Improve battery technology. Develop hydrogen powered cars. Build the infrastructure to allow for alternative energy development.

3) Develop a sane environmental policy. The environmental whackos are calling the shots. It has to stop. Everyone is for a clean environment, but the tail is wagging the dog on this one, and unless it stops, the dog is going to die. Reasonableness and cost effectiveness must be given due consideration. Real science, not pop or cult science, must be the basis of decisions. Review times need to be shortened…and humans must be place above irrelevant, minor and obscure species whose extinction is irrelevant. Thousands of species die out every year by natural selection, and the world keeps on spinning.

As for health care and social security, we need to grow up and get real, balancing the financial realities with undue expectations. The health care bill should be tossed or massively amended to take care of the needs of the uninsured and contain costs. There are ways it can be done without cost effectiveness government panels deciding you are too old for that hip replacement. Many of the social security issues can be resolved by raising early retirement to age 64, and full retirement to age 67. Simple solution… DO IT!!!! People also must be made to realize that social security was never designed to provide an individual with a “full” retirement. It was designed as a supplement, not a life style.

These are simple concepts, although vested and extreme based interests will make a political stink. If the government can do the above…America will once again find the path to greatness.