Sunday, December 5, 2010

Dem Party Chair to Not Seek Reelection

Mark Brewer the head of the Michigan Democratic Party is said to be not seeking reelection. After some big, big wins by the Democratic Party under his leadership, the Party suffered some HUGE losses this year under Brewer. Not all his fault and maybe not any chance he could have controlled any of it--but someone has to pay the fiddler. Now who replaces him and does organized labor own him? The moderates? The liberals?

Legislature Done

Well they are gone and home. Out with old and in with the new. Interesting to see what the new Administration and new Legislature will set as priorities. This is not a divided government. Far from it. The Republicans own it all--all three branches. No one to blame. Executive, Legislative and Judicial Branches all controlled. No one to blame. Also a great opportunity. Lets see what the new agenda is for early 2011

Wednesday, November 24, 2010

The Future of Redistricting and Rural America

Big, big issue, redistricting, for rural areas in Michigan.

The Future of Redistricting and Rural America

Divided Government: Will Anything Get Done?

The Economist has a very interesting article on this topic. See Below.


Lexington / Bluff and counter-bluff

Will America’s newly divided government be able to do anything at all?

Nov 18th 2010 | from PRINT EDITION THE ECONOMIST

NOT even Abroad helped him this time. Already diminished by the mid-terms, Barack Obama returned to Washington on November 15th without having added to his stature during his ten days in Asia. Though welcomed in Indonesia as if he were a native son, and garlanded in Delhi for backing India’s bid for a permanent seat on the UN Security Council, he failed to achieve his main goals. In Seoul a free-trade agreement with South Korea eluded him, China brushed aside his grumbles about its undervalued currency and America’s European allies dismissed his advice to stimulate growth by maintaining public spending. Julia Gillard, Australia’s prime minister, pronounced Australia and America “great mates”, but by the standards of a world-transforming president with a Nobel prize the trip was a flop.
And yet Asia was bliss compared with the purgatory back home. It is bad enough that Mitch McConnell, the Republican leader in the Senate, keeps saying the Republicans’ aim now is to ensure that Mr Obama will not serve a second term without Democrats joining the chorus. But in the Washington Post Patrick Caddell and Douglas Schoen, who worked for Jimmy Carter and Bill Clinton respectively, implored Mr Obama to say that he will not seek re-election. Only thus, they say, can he redeem his campaign promises to transcend party and govern solely in the national interest. Given the country’s divisions, they argue, “governing and campaigning have become incompatible.”
Mr Obama did indeed once say in a television interview that he would prefer to be a good one-term president than a mediocre two-term president. Having lost six seats in the Senate and more than 60 in the House, the Democrats are in shock. But mid-term elections are often followed by exaggerated despair on one side and unwarranted hubris on the other, and the likelihood of Mr Obama accepting this friendly advice is close to zero.
As to hubris, the Republican freshmen bound for Congress next January are in danger of reading into the election a message of their own creation. Many see the mid-terms as a popular rejection of the president’s “extreme” policies. This is doubtful. Voters were more likely registering a protest at the economy than repudiating an ideology. Besides, to the disgust of his own progressive base, Mr Obama enacted no extreme policies. Obamacare is a good deal less radical than the plan Richard Nixon proposed in 1974 or Bill Clinton 20 years later. In fact it closely resembles the bill the Republicans put up as an alternative to Mr Clinton’s, and its central idea—the individual mandate—was introduced in Massachusetts by none other than Mitt Romney, who hopes to become the Republicans’ presidential nominee in 2012.
Wiser Republican heads know already that however impressive the triumph at the polls, the right must not let its zealots prevent the party from showing that at the same time as mounting an effective opposition it can co-operate with Mr Obama when this is in the national interest. For his part, Mr Obama needs to demonstrate that he has heeded the voters’ message but is capable of governing despite the loss of the House. Somewhere in the grey area where these respective needs overlap the two parties will have to compromise if America is to avoid gridlock of the sort that shut down the federal government after Newt Gingrich led the Republicans to victory in 1994.
They have little time to ponder before a freight train of business thunders into Capitol Hill. High on the agenda as the lame-duck Congress convened this week were the Bush-era tax cuts due to expire on December 31st. Letting taxes rise abruptly would hurt not only the recovery but also whichever party the electorate ended up blaming. Congress also faces the small matter of passing a budget so that the government can continue to function in the new year. The early omens were not good. Mr Obama dearly wants the Senate to ratify his new START treaty with Russia, but as he prepared to jet out again for high diplomacy in Europe, the Republicans indicated that he would not get that in the lame-duck session, if at all. And they decided they were too busy for a bipartisan meeting with the White House this week.

High minds and low politics
There are grounds for doubting whether any compromise is possible given the ever-widening ideological distance between the parties. Even before the mid-terms, pundits wondered whether Mr Obama had it in him to follow the example of Mr Clinton when he faced the same predicament after 1994. Many have concluded that he does not. Mr Clinton’s admirers recall how the former president’s political smarts enabled him to beguile and outwit Mr Gingrich by stealing the Republicans’ best ideas: a balanced budget, welfare reform, smaller government, deregulation. His detractors claim that only a lack of firm convictions made it possible for him to turn on a dime. Either way, it is agreed, Mr Obama lacks the suppleness for Clintonian triangulation (“a fancy word for betrayal”, as one Clinton aide put it).
This conclusion is premature. Those who consider Mr Obama too high-minded to save himself cannot have been paying attention. Whether it was dropping the public option in Obamacare, kicking immigration reform into the long grass or going slow on gays in the military, Mr Obama has shown himself perfectly capable of bending with the wind: just ask those disgusted progressives. A better question is whether today’s Republicans have any ideas worth stealing. Of course, one good thing they say they believe in is reducing the deficit by reforming entitlements. As we report in this article, Mr Obama’s bipartisan deficit commission has now sketched out some of the painful choices that doing so would entail. Is it conceivable that in the delicate game of bluff and counter-bluff about to begin in Washington each side will at last goad the other into real movement on this? Here’s hoping.

Monday, November 22, 2010

Pa. House passes bill to rescue state pension systems | Philadelphia Inquirer | 11/16/2010

Michigan is about to be forced to deal with the same issue of public pension reform at all levels of government including K-12 and higher education.

Pa. House passes bill to rescue state pension systems | Philadelphia Inquirer | 11/16/2010

Boycotts over immigration law cost Arizona millions - USATODAY.com

Will be interesting to watch the new Congress deal with the immigration issue next year--not to mention the passage of the Senate introduced "Dream Act".

Boycotts over immigration law cost Arizona millions - USATODAY.com

Friday, November 19, 2010

The Housing Market's Effect on Government Finance

Good article on government financing and revenue issues.

The Housing Market's Effect on Government Finance

Bill promoting federal teleworking goes to Obama - USATODAY.com

This might spread to state and local governments. Also is a way to cut back on capital expense, building expenses for offices, etc.. Already underway and practiced heavily in the private sector.

Bill promoting federal teleworking goes to Obama - USATODAY.com

Mt. Clemens begs for cash | freep.com | Detroit Free Press

This is the next "trend" statewide--asking Universities, colleges and non profits for cash in lieu of tax payments. It may be the only way to keep some local governments afloat. However it would mean more costs at universities and may add to the tuition increases at the Universities. Might also lead to a constitutionality case being files.

Mt. Clemens begs for cash | freep.com | Detroit Free Press

Mississippi governor spreads the pain in proposed budget cuts | clarionledger.com | The Clarion-Ledger

Will we see some of this higher education reforms in Michigan? Will there be university mergers or more coordination of programs and majors?

Mississippi governor spreads the pain in proposed budget cuts | clarionledger.com | The Clarion-Ledger: "He suggested performance-based funding for higher education and the consolidation of administrative services at all levels.

Barbour's budget would spend $20 million to consolidate back-room operations, including payroll, personnel and human resources, for the state's four smaller universities, with an eye toward total consolidation for all eight down the road.

But many of the big-ticket proposals Barbour outlined Monday in a news conference were a repeat of his efforts from last year.

The governor continued his call to cut the number of school districts by a third, close mental health hospitals and consolidate the three state historically black universities."

Thursday, November 18, 2010

Monday, November 15, 2010

Arrest records of state lawmakers raise questions of standards

Hmmmmmmmmmmmmmmmmm.

Arrest records of state lawmakers raise questions of standards

Arizona Voters Approve Medical Marijuana Measure

More states to follow?

Arizona Voters Approve Medical Marijuana Measure

Lansing-State Capital

Lansing is a city of young idealists and old cynics... To paraphrase Dick Armey about Washington.

Will the young idealists win in Lansing this year as they try to reform state government and cut the state budget. Or will then old cynics block all innovation and reform?.

Is the new Governor a young idealist? Okay maybe a middle aged idealist who is also a practitioner of the artbof what is possible? The art of politics.

Lobbying lawmakers a growth industry in Michigan | freep.com | Detroit Free Press

How will the lobbying community react to the new Governor's budget cut proposals and government reform initiatives? Will they helpers, enablers or blockers? Do they really speak for those without a voice or just for those who hire them? Remember non profits, universities, environmental groups, labor unions, senior citizens, big business, small business, police officers, firemen, teachers, and almost every segment of society in Michigan has a lobbyist that has been hired to represent them.


Lobbying lawmakers a growth industry in Michigan | freep.com | Detroit Free Press

Three Most Important Snyder Appointments

Three most important and powerful positions Governor Elect Snyder has to make are: Chief of Staff; Budget Director and his Director of Strategy/Policy. The rest are important but pale In comparison to these three slots. Fourth and fifth most important are the State Treasurer and his chief Legislative Director.

Good appointment- Bill Rustem

Governor Snyder's new Director of Strategy/Policy is brilliant and a very experienced guy. Bill Rustem is a very good appointment. He will bring a balance of Lansing experience, over 40 years, and new innovative and tough thinking. This is one of the guys to watch next year.

Public Pension Payments as a budget balancer

Libertarian Mackinaw Center has a new study that says if Michigan brought ALL state employee pensions to the average of private sector pensions that the state would save $5 Billion.

They say even if their study is 50% off on what the average is the state would still save $2.5 Billion and the state would not have to make one cut in next years budget. They say the state should still make cuts but they could be more strategic in the cuts if they reduce public pension payments.

Upcoming Cuts

Expect cuts in ALL Michigan state Programs, including higher education and K-12. Impossible to solve the existing $1.6 BILLION deficit for next fiscal year without either huge cuts in the state budget or a tax increase? There are NO votes for a tax increase in the new legislature. Only places to cut that will make a dollar difference are higher ed, corrections, community health and K-12. Other areas and cuts would be chump change.

Sunday, November 14, 2010

Taxation

The Governor elect is proposing a re write of the corporate tax in Michigan--The Michigan Business Tax. He is proposing to go to a corporate income tax with a rate of 6%. Some are saying that will cut state revenue by over $1 billion when the state will have a $1.6 billion deficit next fiscal year. Good idea? Other ideas? Does not seem to any support for a tax increase, so there will need to be budget cuts and program reductions.

Thursday, November 4, 2010

Gridlock

Will it disappear? Should it?

Senator Mc Connel's pledge to defeat President O might justbguarantee gridlock. Will President want to work with a Senate Leader whom wants to drive him from office? Is this what Americans want? Is this what they said with there votes on Tuesday? Maybe? Maybe not?

Discretion

Discretion is being able to raise your eyebrow and not your voice.

Might be a good idea and practice for the new and old Congress, State Legislature and Governor.

Get more done?

Tuesday, November 2, 2010

Drivers get chance to fix records | freep.com | Detroit Free Press

innovative?

Drivers get chance to fix records | freep.com | Detroit Free Press

Nation's Hottest Races

NATION'S HOTTEST HOUSE RACES:

AL-02: Incumbent Rep. Bobby Bright (D) v. Martha Roby (R) -- Rothenberg - Tilt Republican, Cook - Tossup. Real Clear Politics - Tossup. FiveThirtyEight - Roby 51.8%, Bright, 48.2%.

AZ-05: Incumbent Rep. Harry Mitchell (D) v. David Schweikert (R) -- Rothenberg - Tossup/ Tilt GOP, Cook - Tossup, Real Clear Politics - Lean GOP, Fivethirtyeight - Schweikert 50.7%, Mitchell 46.8%.

FL-22: Incumbent Rep. Ron Klein (D) v. Allen West (R) -- Rothenberg - Pure tossup, Cook Political report - Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - West 51.7%, Klein 48.4%.

FL-25: David Rivera (R) v. Joe Garcia (D) -- Rothenberg - Lean GOP, Cook - Lean GOP, Real Clear Politics - Likely GOP, FiveThirtyEight - Rivera 51.7%, Garcia 45.6%.

IN-09: Incumbent Rep. Baron Hill (D) v. Todd Young (R). Rothenberg - Tossup/Tilt GOP, Cook - Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - Young 50.3%, Hill 47.7%.

IL-17: Incumbent Rep. Phil Hare (D) v. Bobby Schilling (R). Rothenberg - Tossup/Tilt GOP, Cook - Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - Schilling 49.4%, Hare 47.7%.

MA-10: Jeff Perry (R) v. Bill Keating (D) -- Rothenberg - Pure Tossup, Cook - Tossup, Real Clear Politics - Tossup, FiveThirtyEight - Keating 48.9%, Perry 48.1%.

MI-07: Incumbent Rep. Mark Schauer (D) v. former Rep. Tim Walberg (R) -- Rothenberg - Pure Tossup, Cook - Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - Walberg 49.4%, Schauer 48.1%.

NM-01: Incumbent Rep. Martin Heinrich (D) v. Jon Barela (R) -- Rothenberg - Pure Tossup, Cook - Tossup, Real Clear Politics - Tossup, FiveThirtyEight - Heinrich 51.2%, Barela 48.8%.

NV-03: Incumbent Rep. Dina Titus (D) v. Joe Heck (R) -- Rothenberg - Tossup/Tilt GOP, Cook - Tossup, RealClearPolitics - Leans GOP, FiveThirtyEight - Heck 52.3%, Titus 46.0%.

NY-19: Incumbent Rep. John Hall v. Nan Hayworth -- Rothenberg - Tossup/Tilt GOP, Cook - Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - Hayworth 51.4%, Hall 48.6%.

OR-05: Incumbent Rep. Kurt Schrader (D) v. Scott Bruun (R) -- Rothenberg - Pure Tossup, Cook - Tossup, RealClearPolitics - Tossup, FiveThirtyEight - Bruun 49.5%, Schrader 48.3%.

PA-08: Incumbent Rep. Patrick Murphy (D) v. former Rep. Mike Fitzpatrick (R) -- Rothenburg - Tossup/Tilt GOP, Cook - Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - Fitzpatrick 51.8%, Murphy 48.2%.
SD-At Large: Incumbent Stephanie Herseth Sandlin (D) v. Kristi Noem (R) -- Rothenberg - Pure Tossup, Cook: Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - Noem 50.3%, Herseth Sandlin 47.3%.

WI-07: Julie Lassa (D) v. Sean Duffy (R) -- Rothenberg - Tossup/Tilt GOP, Cook - Tossup, Real Clear Politics - Leans GOP, FiveThirtyEight - Duffy 51.6%, Lassa 45.8%.

Monday, November 1, 2010

Voters under 30 and turnout in general

Only 8 % of voters under 30 are expected to vote in this election.

Midterm elections usually have only a 44% turnout of all voters. Think it will stay consistent this time?

A high turnout in Michigan would be 3.8 million voters- about 55%.

Gridlock versus Solutions

What the voters are NOT saying in this election is that Gridlock in Gov't . They ARE saying they want solutions to our fiscal problems and they want the Gov't to find real solutions, not give up their principles but rather to be innovative and find solutions. This is not a mandate to do nothing and/ or to shut down Gov't while middle-class people suffer while the elite prosper or avoid any pain or sacrifice.

Federal election

US CONGRESS:

Senate will go to a GOP majority if they get 10 seats now held by the Dems. Pundits say they get 8. Will the so called wave of Republican voters carry the GOP to the majority and give them 10 more seats?

US House will flip to GOP control if they get a minimum of 39 new seats. Guess they may get 60 to 64, but they only need 39.

In Senate watch the vote in Nevada, Colorado, Pennsylvania and Illinois. also California and Ohio.

In the House races watch those seats that went Dem in Obama election in 08. If those start to flip then the Dem losses in House go toward the 60 plus losses and a GOP majority in House.

In 1st CD McDowell wins if his voter turnout machine is very, very successful. If not he losses. McDowell must counter the GOP so called wave with a huge Dem turnout in the UP. He losses if he does not get both.

Election Day

Watch to see how the races for governor are going to judge how the Dems and Repubs are doing across the nation. These races will be a better barometer of election results on election nite-they will tel you how each party is doing. These are better to watch than the US Senate races.

ALL CAPS? Not OK on road signs, federal government says - USATODAY.com

good grief. Talk about feds imposing costs on local units of government. Maybe the feds should pay for what they force upon local units of government--or at least be mandated to justify these kind crazy mandated programs.

ALL CAPS? Not OK on road signs, federal government says - USATODAY.com

Arizona's Immigration Law Goes Before Appeals Court

Eventually the US Supreme Court will have to take up these Immigration cases. Will be a chance for the Court to rule on the 10th Amendment and immigration. Could have a big impact on state rights issues and state authority to govern. Also might dictate how the feds have to spend money in border states to enforce border control.

Arizona's Immigration Law Goes Before Appeals Court

Republicans hope for rise at the local level, too | freep.com | Detroit Free Press

Local elections are a good predictor of what will happen in Michigan in 2012 elections. Also this local "wave" will have a huge impact on reapportionment--which will dictate which political party controls the legislature and Congress for the next decade. Important to watch these local elections across Michigan. Of course more voters in Michigan live in Oakland, Macomb, and Wayne counties than in any other region of the state. So there elections are very good predictors of what will happen statewide. Also look at Kent, Allegan, Kalamazoo, Ottawa and Muskegon counties for indicators.

Republicans hope for rise at the local level, too | freep.com | Detroit Free Press

4 school districts ask for more money | freep.com | Detroit Free Press

You do not see many districts asking voters to approve mileage this year. Interesting vote and will tell us something about the mood of local voters on taxes and K-12 education.

4 school districts ask for more money | freep.com | Detroit Free Press

Voters on board for Pure Michigan ads, film credits | freep.com | Detroit Free Press

Interesting that voters want big cuts in government spending but these two uses of public funds seem to escape the hit of voter cuts. Hmmmmmmm.

Voters on board for Pure Michigan ads, film credits | freep.com | Detroit Free Press

Control of Michigan House up for grabs | detnews.com | The Detroit News

Final days of the election. Will the Republican so called wave be enough to carry over to state legislative elections? This article refers to that matter.

Control of Michigan House up for grabs | detnews.com | The Detroit News

Sunday, October 31, 2010

Sense of Urgency for the State

Is it me or are you also feeling a lack of urgency by our state leaders that are about to take office after the election this Tuesday? Both Republicans and Democrats. There seems to be little concern or few suggested remedies for dealing with our huge fiscal crisis, our education crisis (K-12 drop out rate; poverty in schools, public employee health care costs, pension costs, and high cost of tuition for students in our universities, university graduation and completion rate, etc.)our local government crisis, etc., etc.. Where is the innovation, where are the solutions that should follow he outrage.

Choices for the New Governor

What are the top five things the Governor should try to do in his first 60 days in office?

Some should be able to accomplished by Executive Order versus legislation and some will need immediate action by the legislature.

Maybe the legislature should come into session and not leave until they get the state's fiscal problems resolved and put in place some solutions, some plans and/or some innovations for our state.

New Governor's challenges in 2011 Facing the New Governor and Legtislature

Michigan's new governor must be ready on Day 1

By CHRIS CHRISTOFF
FREE PRESS LANSING BUREAU CHIEF
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Michigan's new governor will take the wheel of a state that's speeding toward a $1.6-billion deficit with little room to maneuver.



He'll share the Capitol with perhaps the most inexperienced Legislature in modern times thanks to term limits, as well as a new secretary of state and attorney general.

He must hit the ground running with a team that will shape the way Lansing does business for the next four years.

Compared with eight years ago, when Jennifer Granholm swept into office on wings of hope and history as the first female governor, Michigan is shell-shocked by economic decline driven by the near-collapse of the U.S. automotive and financial sectors.

Republican Rick Snyder says he'll cut business taxes. Democrat Virg Bernero says he'll revive manufacturing. Either will tackle a government and tax system that can no longer coexist as they are.

"Without a doubt, the challenges facing the new governor are going to dwarf the problems any new governor confronted in the past," said Dennis Cawthorne, lobbyist, ex-legislator and Michigan devotee. "In the past, there have been nooks, crannies and cookie jars available to somehow fill the billion-dollar deficits.

"It truly appears this time we have run out of them."

Tough Tasks Await New Leader

A lot of big decisions await the next governor, starting the day after Tuesday's election.

He even should start planning his State of the State address in January, said Bill Rustem, president of Public Sector Consultants of Lansing.

"It's the articulation of a vision -- where does he want to take the state?" said Rustem, who was an adviser to former Gov. William Milliken.

"It's a brand-new Legislature. It's important setting the tone for the first 100 days, and for the administration beyond that."

But before the big speech, the next governor will have his hands full putting that administration together.

And scouting the Legislature, with whom he'll dicker and deal.

And making plans to tackle the worst financial picture in many decades.

The economy drowns out other issues that usually have more exposure in gubernatorial campaigns, such as the environment and funding for public schools, said Doug Roberts, a former state treasurer and now director of the Institute for Public Policy and Social Research at Michigan State University.



Read more: Michigan's new governor must be ready on Day 1 | freep.com | Detroit Free Press http://www.freep.com/article/201010310300/NEWS15/10310528#ixzz13xUjtoSl

Wednesday, October 20, 2010

Money in Politics

Big money is flowing into the 1st Congressional District, UP and Northern Michigan, and into the SW Michigan congressional race between Schauer and Walberg. Makes you think about the old debate about limiting candidates to taking contributions from donors who live in their district-- and NO ONE else.

Monday, October 18, 2010

Slavery in America and Worldwide Human Trafficing

Ten million young people held against their will- in slavery in America according to a new study on worldwide human trafficking.

Twenty seven million people worldwide are traded in human trafficking worldwide-slavery.

800,000 people put into slavery across worldwide borders each year.

Slaves found in 90 US cities this year.

Human trafficking is a $32 billion worldwide industry.

Coattails

Will either candidate for Governor have any "coattails" that might help elect their parties choice for Secretary of State or AG? might be important in the final vote count of these two offices. They each might need the coattails to carry them over the victory line.

Closing weeks of campaign

Look for more and more political advertising to occur in last couple of weeks of this election-and itnwill get nastier and nastier. Interesting that we are hearing less radio advertising this political season and more direct mail via snail mail and via email. Of course TV is still king. Citizen journalism is growing by leaps and bounds. Everyone with a cell phone can take a picture andnpost it on the web or use their flip camera to record behavior or actions of a candidate. No source checking, no ethical standards just a citizen posting a picture or video on the open source Internet .

Snyder and ideas for the state tax system

Rick Snyder wants to put a new spin on taxing business

BY DAWSON BELL
FREE PRESS STAFF WRITER


Rick Snyder's big idea for Michigan is audacious, if inexact. He wants Michigan to make a clean break from the old ways and reinvent itself. He sometimes calls it Michigan 3.0 (with 1.0 as the mine-and-timber era, and 2.0 as auto manufacturing).



So it may strike some people as curious that the centerpiece of his reinvention is an idea as old as the lumber barons -- a tax on corporate profits.

Snyder wants to replace the Michigan Business Tax, which he calls "the worst business tax in the country," with a 6% levy on corporate profits. The switch would result in a $1.5-billion tax cut for businesses.

In his policy statement on the subject -- virtually the only detailed policy prescription he has issued -- Snyder said his proposal will send the single, strongest possible signal that "Michigan is serious about turning around its reputation and becoming business-friendly again." He calls it "a simple solution ... that career politicians will not implement."

Snyder may be correct about the signal Michigan would send by scrapping the MBT. Certainly cutting taxes on business by nearly 60% will attract attention.

But if elected in November, Snyder is certain to find that nothing is ever simple in Lansing when it comes to business-tax policy.

A little history:

Michigan had a corporate income tax in the 1960s (the first corporate-profits tax nationwide dates from 1894). It was scrapped, along with a handful of other business taxes, in 1975, and replaced by the Single Business Tax.

The SBT, a modified form of the Value Added Tax unique to Michigan, was reviled and amended for most of its 32-year lifespan, before an L. Brooks Patterson-led petition drive put it down for good. In 2007, facing the loss of all that revenue and a huge budget deficit, Gov. Jennifer Granholm and the Legislature created the MBT, a modified form of gross receipts tax.

It is undeniable that the MBT and the SBT each contained controversial elements: One of the most galling to business owners was the requirement to pay taxes even when an enterprise is losing money.

[Page 2 of 2]

But that didn't happen because politicians set out to design a Frankenstein's monster of a tax code. It was because of the inherent complexity of business taxation.


LeAnn Luna, an associate professor of business at the University of Tennessee and expert on state tax policy, said arguments can be made on behalf of both of the principal forms of business taxation, gross receipts and corporate income.

Taxing gross receipts, or business activity as Michigan tried to do with the Single Business Tax, invites endless rounds of politically driven changes as favored industries seek special treatment, Luna said.

But simply taxing income has its drawbacks as well, as business owners try to game the system through reorganization (a corporate income tax, including Snyder's proposal, doesn't apply to businesses organized as sole proprietorships, partnerships or LLCs). Profits distributed as income from such businesses would be reported on the personal income tax forms of individuals -- who pay a maximum of 4.35%.

Taxing income also promotes other strategies about how a business operates in an effort to reduce profits subject to taxation, Luna said, creating economic inefficiency that curtails growth.

Snyder's plan could minimize those kinds of objections by reducing the number of business taxpayers who are required to pay state taxes and, more important, by delivering his $1.5-billion tax cut.

Gary Olson, director of the Senate Fiscal Agency, said it is likely almost every business taxpayer in the state would end up paying less if the state would forgo that much revenue.

"Would that be beneficial to business? Of course it would," Olson said. "But what do you do with the things you're spending the $1.5 billion on today?"

MBT revenue is a major source of funding for all manner of state operations, like prisons and universities, as well as contributing nearly $750 million a year to K-12 schools.

Snyder spokesman Bill Nowling said those questions would be addressed after a thorough and ongoing examination of state finances. Snyder said he believes significant savings can be found by re-examining every operation in state government.

If elected, Snyder's first priority will be the reorganization of government and business tax reform as soon as possible, he said.

"It's an issue of creating jobs. We need to have a competitive tax structure," Nowling said. "We know people are skeptical. That's OK. Rick thinks it's the best thing for Michigan."

The New Governor

What are the three "innovations" that we would want a Governor to make to bring Michigan back to economic and fiscal health?

Lift the cap on charter schools and get more children at risk into a school setting so we can make sure that they do not become a drop out statistic?

We know that states that have high economic growth and job creation have high rates of people with college degrees. Shall we say to Michigan residents who do not have a degree that if you give the state two years of public service (teaching in an inner city or rural district with children at risk; working in community to help poor people develop job skills; etc.,) we will give you one year of free tuition at a Michigan university?

Take our highway rest stops and allow private businesses to lease them and run a restaurant or snack bar in them--they become responsible for maintaining the land, cutting the grass, plowing the snow, etc., etc.. No state money spent on rest stops.

What other innovations do we our next Governor to think about?

Elections

Two plus weeks and we will move from uncertainty to certainty on election day. Who knows we might even have a few elections where we won't have certainty at the close of election day--vote counting delays and recounts could hold us up. Voters are good at throwing monkey wrenches into what the "experts" predict. Might we have some surprises on election day?

Tuesday, September 21, 2010

Rural Schools and Internet Support from FCC

Internet Service Upgrade Coming to Poor and Rural Schools
By EDWARD WYATT
Published: September 20, 2010
New York Times

WASHINGTON — The Federal Communications Commission is expected on Thursday to approve an overhaul of the $2.25 billion E-Rate program, which subsidizes Internet service for schools and public libraries, to give schools more options for faster Internet service, allow for community Internet service and to begin pilot programs for digital textbooks.

The proposed E-Rate order would allow schools and libraries to use federal funds to lease unused local communication lines — known as dark fiber — to connect to the Internet, a potentially faster and lower-cost connection than currently offered through many local telecommunications companies.

Some schools still do not have broadband connections, the F.C.C. noted in its National Broadband Plan, released this year. The company that administers E-Rate received at least 200 requests in the 2009 fiscal year for money to pay for dial-up Internet connections. The program mostly serves schools in poor and rural communities. At its monthly meeting on Thursday, the F.C.C. also will consider allowing schools to open the use of Internet resources paid for with E-Rate funds to the local community after school hours and when school is not in session, which is currently not allowed under E-Rate regulations.

“For the good of our economy, we need all of our kids to be digitally literate,” Julius Genachowski, the F.C.C. chairman, said in an interview. Job postings are increasingly available online only, he said, while a growing percentage of jobs require basic digital skills as a prerequisite.

The commission also is expected to approve a pilot program that supports off-campus wireless Internet connections for use with mobile learning devices, like digital textbooks. That would allow schools to update their textbooks more frequently and save students from having to carry back-breaking loads of textbooks home each night.

The E-Rate program, which is financed by a fee collected from all telephone users, came under fire from Congress in 2004 for wasteful spending. Changes in accounting regulations and program rules led to a temporary suspension of new grants that year.

Other States Join Michigan in Fiscal Woes

Budget-balancing axes being sharpened
9,800 people could be laid off as agencies seek ways to trim billions
By KATE ALEXANDER
AUSTIN AMERICAN-STATESMAN
Sept. 19, 2010, 9:51PM
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PROPOSED CUTS
• Department of Criminal Justice: 7,353
• Youth Commission: 460
• Comptroller of Public Accounts: 315
• Department of Insurance: 186
• Department of Public Safety: 120
Note: Includes both layoffs and the elimination of vacant positions.
Source: 2012-13 Legislative Appropriations Requests submitted to the Legislative Budget Board
To the children at the Texas School for the Deaf, Mary Monckton is a sunny and engaging speech pathologist determined to help them learn to communicate.
But to legislators, Monckton is an expense that Texas might not be able to afford.
Hers is one of 9,800 jobs that state agencies have offered up for elimination as legislators prepare to trim billions of dollars from the 2012-13 state budget, according to an American-Statesman analysis of agency budget requests.
$21 billion in red ink
While some positions might be preserved or are already vacant, thousands of workers could likely be laid off as the state grapples with a projected two-year budget shortfall approaching $21 billion.
Mike Gross, vice president of the Texas State Employees Union, said he expects there will be much more pressure to lay off employees next year than in 2003, the last time Texas faced a similar budget crunch. State leaders have again vowed to close the gap without raising taxes, but the magnitude of the budget problem is greater this time, in part because of the ongoing recession.
"Texas is not a poor state," Gross said. "We can afford to do better by our people."
Worst-case scenario
While agencies tend to offer worst-case scenarios to open the budget negotiations, there is some truth to the grim projections, said Talmadge Heflin, director of the Center for Fiscal Policy at the Texas Public Policy Foundation, a think tank that promotes limited government.
"If they show the legislators all these bad things will happen, maybe it will soften their hearts a little bit or loosen their pocketbooks," said Heflin, a former legislator.
For Claire Bugen, superintendent of the School for the Deaf, losing employees is agonizing.
Bugen, as with other state agency leaders, was required to propose cuts totaling 10 percent of the school's general revenue budget, which came to $3.6 million.
She nixed a summer school program, as well as building repair, some laundry services, computers, furniture and more. Still $1.2 million short of the reduction target, the only thing left to cut was people.
"Every little position you lose in a school like ours has an impact," said Bugen, who says the School for the Deaf should be exempt from the cuts, as are traditional school districts. "We're so small. How is our $3,637,402 going to help? It's not going to help the state of Texas balance its budget, but it would do so much for us."
Schools not in the clear
Therein lies the problem for Texas legislators.
What's really on the table?
The state's $87 billion general revenue fund pays for a handful of behemoths — public education, health and human services, criminal justice - and a bunch of relatively small agencies.
For now, state leaders have protected public school aid from the cuts, though people from across the political spectrum say it is unlikely that schools will be left untouched.
"If the Legislature is going to balance this budget primarily through budget cuts, nothing can be off the table," said Dale Craymer, president of the Texas Taxpayers and Research Association.
All told, the 10 percent cuts could reduce state spending by $3 billion if fully implemented, according to the Legislative Budget Board.
Another $1.2 billion could be saved if the 5 percent cuts enacted in the current budget are continued.
That leaves a long way to go to close a $21 billion gap, even with an $8 billion rainy day fund.
Higher education hit
Key legislators are already pushing to exempt from layoffs 7,300 prison guards, parole officers and other corrections workers at the Texas Department of Criminal Justice.
On the flip side, colleges and universities are expected to add to the final job loss tally when the budget is completed next year. The schools were not included in the American-Statesman analysis because they were not required to report the full impact of the potential cuts in their budget proposals.
But higher education shouldered a disproportionately large amount of the $1.2 billion trim from the current budget, and that is not expected to change next year.
The University of Texas, for instance, has said 600 jobs could be eliminated if a full 10 percent cut is required. At Texas A&M University, the number of affected jobs would be 400.
In 2003, most of the 10,000 eliminated jobs were cleared through attrition and a retirement incentive. About 1,400 workers were laid off at the Department of Criminal Justice and the Texas Education Agency.
But 2011 might necessitate more actual layoffs because the budget situation is worse, and the state has fewer budget-cutting options than in 2003, Craymer said.
Because of the recession, there are also fewer vacant positions to scuttle without affecting a person, said Andy Homer, government relations director for the Texas Public Employees Association.
"The turnover numbers have just gone down," Homer said. "People who have a job are sticking with it."

Saturday, September 11, 2010

Proposal 10-1 Con Con

Voters will vote in November on whether to have a constitutional convention in2011.

Cost of the convention will be approx $28 million.

Citizens will run for delegate slots and if elected will have the right to amend or totally redo our state constitution.

Last time we did this was 1962.

Should we pass this proposal? Why?

What are the major issues the delegates should address if we pass 10-1?

Proposal 10-2

Michigan will Have 2 ballot proposals : 10-2 will ask voters to consider amending the state constitution to prohibit certain felons from holding elective office and specified typesnpublic positions.

God idea? Why? If you "serve your time" why should your right tomoffice be limited or a right to a public job? Should you have the right to vote? Should all of these prohibitions be a lifetime ban?

Wednesday, September 1, 2010

Mosque violence in N.Y. State - Maggie Haberman - POLITICO.com

Mosque violence in N.Y. State - Maggie Haberman - POLITICO.com

Should the federal government intervene here or is this a pure 10th Amendment issue--let the locals handle location of mosque's and handle prosecution of violence in their communities? Is this a federal civil rights issue or just plain and simple local prosecution issue? What would the implications of the 10th Amendment be?

Worthy: 4 defrauded Detroit schools of $150K | detnews.com | The Detroit News

Worthy: 4 defrauded Detroit schools of $150K | detnews.com | The Detroit News

How do we get at reform of K-12 education? Should it stay local, local control, or should we have more state level involvement? More state regulation, testing and monitoring of ALL schools? Should the feds have less involvement and return more to state and local? What reforms would work?

Candidates nominated at state conventions | freep.com | Detroit Free Press

Candidates nominated at state conventions | freep.com | Detroit Free Press

good candidate listing. any thing strike you as you look at this list? how could it be a better list? more diversity? more what? less what? comments on list in general?

Tom Walsh: Michigan leads U.S. in new jobs with 27,800 | freep.com | Detroit Free Press

Tom Walsh: Michigan leads U.S. in new jobs with 27,800 | freep.com | Detroit Free Press

Good news or just a blip in the real economic problems facing our state? Maybe we just take good news as it comes and go as they say "one day at a time."

Wednesday, August 18, 2010

Thursday, August 12, 2010

Next Gov

With what the next Gov will face when they take office in January 2011 you wonder who would want the job.

You walk into your office the first day and you know younhave reorganize and reprioritize Gov't and younhave to cut almost $2 billion from the state budget. You have maybe six months to getbthis done.n

Whatbdo you do first? Who do you bring in to help? Whatbdo you cut to get you $2 billion? What constituency do you take on first? What battle do you wage first? Whonare your friends? Enemies?

Next Gov

With what the next Gov will face when they take office in January 2011 you wonder who would want the job.

Primary Numbers

Usually the vote totals give the Dems twice as many total votes as the GOP.

This year it was the opposite . Twice as many Republicans voted in the primary -- or were they really Dems or were they Independents and/ or Democrats.

1.2 million votes cast for Snyder and then other Republican candidates for Governor. Bernaro got 500,000.

Who were these new "Republican" voters? Will they cast their votes for Snyder in the Fall or go back to the Dem side?

Monday, August 9, 2010

Dems and Lt Gov

Dillon saysnhenis not interested in the Lt Gov slot. Alma Smith she was asked to think about it by Bernaro folks. Maybe Bernaro should start thinking about somennew blood for his ticket-someone from outside Lansing political ghetto? Some new ideas by new people? Hmmm.

Sunday, August 8, 2010

Next Lt Governor - WHO?????

Gov candidates usually use gender, geographics or philoshopical bacckground of possible Lt Gov nominees. Maybe this is the time for different considerations? What? Who?

Should Snyder ago to the West side of Michigan he could go with former Senate Majority Leader Ken Sikkema, Congressman Hoekstra, Senator Mark Jansen, SOS Land or some other former or current office holder. Might be interesting to look at some folks not from politics, but on the other hand Snyder is not from politics and is from the corporate sector.

Maybe he should look for a very successful leader from the not for profit sector? Non health care- more from charitable sector. Names? Types?

So is Snyder's ideal candidate for Lt Gov someone from West Michigan, female, in government, and who is strongly pro life-- considering who and what Snyder is and how he won the primary? Who is that?

Now what about the Democrat--Bernaro..

He is a pro choice Democrat from mid Michigan so he could pick east or west. Would he be better off going east because of the strong Dem base and more liberal centrist voter in east Michigan region?

How about State Rep Byrnes? Mayor Bing? Speaker Dillon? Who else?

Lt Govs- Choices

Both parties have to chose one soon. sort of an irrelevant post but required. Maybe the next Governor should give his Lt Gov something to do other than presiding over the Senate- breaking the rare, rare tie vote. What job could we give the next Lt Gov- not just ceremonial or just the mundane like running the selected state agency/department. What could he or she do to help refine, reorganize and /or restructure our state to bring it into the future as a strong, relevant, successful state? Ideas?

State Budget - 53 days

Huge deficits, revenue flat and no agreement on tax reform (cuts, realignment and/increases) confront us with only about 53 days left until the new fiscal year begins on October 1st. Legislature is on vacation, Governor is on cable television and trying to get the President to appoint her to something-anything. State of our state is at best disturbing and maybe in a huge crisis of leadership and finances.

Monday, June 28, 2010

States must make deep cuts without federal Medicaid funds - Jun. 28, 2010

States must make deep cuts without federal Medicaid funds - Jun. 28, 2010

This will be an issue here in Michigan.

Immigrant students face deportation to countries they don't remember - latimes.com

Immigrant students face deportation to countries they don't remember - latimes.com

Paul Krugman: Why We Could Be Entering 'A Third Depression'

Paul Krugman: Why We Could Be Entering 'A Third Depression'

interesting read--especially those who are concurring with Krugman.

Christian Group Can't Bar Gays, Get Funding At Hastings College, Court Says

Christian Group Can't Bar Gays, Get Funding At Hastings College, Court Says

Supreme Court extends gun rights | freep.com | Detroit Free Press

Supreme Court extends gun rights | freep.com | Detroit Free Press

Many states and local gov'ts will be trying to figure out this decision and seeing how it applies to local and state efforts to control guns. Will result in lots of debate.

Wednesday, June 23, 2010

Lansing's medical marijuana ordinance split into 2 measures | lansingstatejournal.com | Lansing State Journal

Lansing's medical marijuana ordinance split into 2 measures | lansingstatejournal.com | Lansing State Journal

Bar owners: smoking ban hurting business | battlecreekenquirer.com | The Enquirer

Bar owners: smoking ban hurting business | battlecreekenquirer.com | The Enquirer

Mexico files court brief against Arizona immigration law - CNN.com

Mexico files court brief against Arizona immigration law - CNN.com

States and immigration--a very developing story in scores and scores of states.

State Rep. Dave Agema hopes to outlaw marriages for illegal immigrants | MLive.com

State Rep. Dave Agema hopes to outlaw marriages for illegal immigrants | MLive.com

Hmmmmmmmm. Anyone see some constitutional issues here?

Michigan to offer $154M in U.S. aid to borrowers | freep.com | Detroit Free Press

Michigan to offer $154M in U.S. aid to borrowers | freep.com | Detroit Free Press

good example of federalism--federal and state governments working together to serve citizens. question remains as to whether this is good public policy--aiding borrowers. Is it?

Detroit Regional Chamber endorses 3 for governor | freep.com | Detroit Free Press

Detroit Regional Chamber endorses 3 for governor | freep.com | Detroit Free Press

Not sure these kind of endorsements mean much anymore. Voters have so many more sources of information to help them form their opinions and make their final choice as to who to vote for in elections--internet, blogs, cable tv, talk radio, newspapers, all 24/7 sources.

Also endorsements only mean something if the endorsing organization is going to do a heavy get out the vote drive. Primary elections are all about turnout and who turns out. In Michigan only approx 20% of voters vote in primary elections.

Monday, June 21, 2010

Voters get say on felons in office | detnews.com | The Detroit News

Voters get say on felons in office | detnews.com | The Detroit News

Critics: Merger of Michigan agencies gives national resources short shrift | detnews.com | The Detroit News

Critics: Merger of Michigan agencies gives national resources short shrift | detnews.com | The Detroit News

Nationally there is a big drive toward these types of state agency mergers in order to create efficiencies and to bring about cost savings that are so important to the fiscally desperate states.

Are they as good as they sound? Do they really save dollars? Are there other risks like discussed in this article? What should the legislature do here?

World looks to Canada for model economy | detnews.com | The Detroit News

World looks to Canada for model economy | detnews.com | The Detroit News

also note that Senator Stabenow has asked Prez to get Canada to stop drilling in Great Lakes. This article gives you an insight into why Canada might not want to stop doing that and to risk further growth of their economy.

Poli-Bites: Small poll bears some big news for Clarke | freep.com | Detroit Free Press

Poli-Bites: Small poll bears some big news for Clarke | freep.com | Detroit Free Press

Big upset if Clarke beats incumbent Congresswoman Kilpatrick. Can't help wondering if her son's problems are causing her problems in her reelection bid. Big, Big deal.

Also this article gives you an insight into why Gov candidate Bernaro is so popular with the unions. Tough guy and very pro working class folks.

Thursday, June 10, 2010

Dems' tough new immigration pitch - Carrie Budoff Brown - POLITICO.com

Dems' tough new immigration pitch - Carrie Budoff Brown - POLITICO.com

Federalism? State involvement? Federal border responsibility? Federal payment for state costs? All questions to be answered in legislation. Need to make sure state's are involved in debate and that federal government takes responsibility for federal border issue. True or false?

Michigan Democratic official files complaint against justice | freep.com | Detroit Free Press

Michigan Democratic official files complaint against justice | freep.com | Detroit Free Press

Maybe this is another reason we should amend the Michigan Constitution to take our justices out of partisan politics--not allowing the political parties to nominate the justices at their state conventions. Maybe they all should run as independents, non partisan candidates? Also maybe the Commission that rules on Judicial Ethics and behavior should not be made up of all, or close to all, judges and lawyers. A majority of non judges and non lawyers would make a real, real difference.

GOP women take charge in primaries | detnews.com | The Detroit News

GOP women take charge in primaries | detnews.com | The Detroit News

Big nite for women candidates in both parties. A change in the seascape of gender politics in America. Both of the Republican women in California who one the primaries for Governor and Senator are former CEOs of major companies. Very interesting development. Will the voters see them as outsiders or will they see them as corporate people who are not for middle class Americans???? We shall see.

Lawmakers continue state budget debates | detnews.com | The Detroit News

Lawmakers continue state budget debates | detnews.com | The Detroit News

Should K-12 surplus funds from dedicated tax revenues be taken for higher education and community colleges? Or should that tax surplus that is dedicated to K-12 be used to make up past K-12 reductions? Should this money be used for higher education purposes, like restoring the Promise Grants for students that have been eliminated.

Friday, June 4, 2010

Gingrich pitches no-tax zone to revive Detroit | detnews.com | The Detroit News

Gingrich pitches no-tax zone to revive Detroit | detnews.com | The Detroit News

This debate on the Gingrich is worth doing. Will a tax free zone for Detroit lead to investment in Detroit and revitalize the City of Detroit? On the other hand the question of what should the state and Detroit for revenue so they can operate their appropriate functions--police, fire, schools, infrastructure, etc.?

If this tax free zone does work and is proven to bring investment into the city why are we excluding other urban centers who are also suffering: Flint, Saginaw, Muskegon, Benton Harbor? If its good for Detroit why not these urban centers/cities?

Gubernatorial candidates mix it up on bridge, labor, lakes | detnews.com | The Detroit News

Gubernatorial candidates mix it up on bridge, labor, lakes | detnews.com | The Detroit News

A good old fashion political brawl is good for the soul and good reading. However after that it should be back to a discussion of real issues with real solutions being put forward.

On a serious note there has got to be a better way to get transparency on the backgrounds of candidates for statewide office and sort of a "truth squad" on what they claim and what they own.

Voters concerned about illegal immigration | freep.com | Detroit Free Press

Voters concerned about illegal immigration | freep.com | Detroit Free Press

What is the appropriate state role in this immigration issue? What is the role and why? Is there an appropriate relationship between the federal and state government on this issue? Intergovernmental relations? Shared governance?

Wednesday, June 2, 2010

Poll results: Taking Michigan's pulse | freep.com | Detroit Free Press

Poll results: Taking Michigan's pulse | freep.com | Detroit Free Press

Good details on the pulse of Michigan citizens. Interesting that 25% of all polled would cut budget to deal with ALL of the needed budget budget deficit reduction. That is a large number.

Michigan voters prefer cuts to higher taxes | freep.com | Detroit Free Press

Michigan voters prefer cuts to higher taxes | freep.com | Detroit Free Press

This trend among Michigan voters will continue to get larger until the State starts cutting programs and services more than they have done up to now. I think that voters early next year will not like some of the cuts that could be coming our way. However it is interesting message to policy makers that the old days of budget making, budget cutting and operations of government programs is not going to be accepted by Michigan voters.

Monday, May 31, 2010

Sunday, May 30, 2010

Illegal immigrants gravitate toward Arizona border

Illegal immigrants gravitate toward Arizona border

There needs to be a discussion about what is the proper state role and what is the proper federal role on this issue. Should the taxpayer of a state be taxed when the revenue is being spent on a problem is clearly a federal issue. The federal government's lack of supervision of borders creates a funding problem in the state who has to care for, provide educational services to and must provide all state services to the border crossers? Many of people who enter the United States illegally have children born in this country and they become legal citizens while their parents are still undocumented illegals. What should the state do and what should be done by the federal government to pay for these state services?

Interesting article on this issue.

Student Debt

This is a very interesting article published by the New York Times.

What other solutions are there to help with this issue in our nation? How should states handle this issue? Should they allow universities to raise tuition and not provide state aid to universities so they can keep tuition down? Should the state set tuition increase rates for all universities--set them based on costs? What is the proper state government role?

May 28, 2010 NY Times

Placing the Blame as Students Are Buried in Debt

By RON LIEBER

Like many middle-class families, Cortney Munna and her mother began the college selection process with a grim determination. They would do whatever they could to get Cortney into the best possible college, and they maintained a blind faith that the investment would be worth it.

Today, however, Ms. Munna, a 26-year-old graduate of New York University, has nearly $100,000 in student loan debt from her four years in college, and affording the full monthly payments would be a struggle. For much of the time since her 2005 graduation, she’s been enrolled in night school, which allows her to defer loan payments.

This is not a long-term solution, because the interest on the loans continues to pile up. So in an eerie echo of the mortgage crisis, tens of thousands of people like Ms. Munna are facing a reckoning. They and their families made borrowing decisions based more on emotion than reason, much as subprime borrowers assumed the value of their houses would always go up.

Meanwhile, universities like N.Y.U. enrolled students without asking many questions about whether they could afford a $50,000 annual tuition bill. Then the colleges introduced the students to lenders who underwrote big loans without any idea of what the students might earn someday — just like the mortgage lenders who didn’t ask borrowers to verify their incomes.

Ms. Munna does not want to walk away from her loans in the same way many mortgage holders are. It would be difficult in any event because federal bankruptcy law makes it nearly impossible to discharge student loan debts. But unless she manages to improve her income quickly, she doesn’t have a lot of good options for digging out.

It is utterly depressing that there are so many people like her facing decades of payments, limited capacity to buy a home and a debt burden that can repel potential life partners. For starters, it’s a shared failure of parenting and loan underwriting.

But perhaps the biggest share lies with colleges and universities because they have the most knowledge of the financial aid process. And I would argue that they had an obligation to counsel students like Ms. Munna, who got in too far over their heads.

How many people are like her? According to the College Board’s Trends in Student Aid study, 10 percent of people who graduated in 2007-8 with student loans had borrowed $40,000 or more. The median debt for bachelor’s degree recipients who borrowed while attending private, nonprofit colleges was $22,380.

The Project on Student Debt, a research and advocacy organization in Oakland, Calif., used federal data to estimate that 206,000 people graduated from college (including many from for-profit universities) with more than $40,000 in student loan debt in that same period. That’s a ninefold increase over the number of people in 1996, using 2008 dollars.

The Family

No one forces borrowers to take out these loans, and Ms. Munna and her mother, Cathryn, have spent the years since her graduation trying to understand where they went wrong. Ms. Munna’s father died when she was 13, after a series of illnesses.

She started college at age 17 and borrowed as much money as she could under the federal loan program. To make up the difference between her grants and work study money and the total cost of attending, her mother co-signed two private loans with Sallie Mae totaling about $20,000.

When they applied for a third loan, however, Sallie Mae rejected the application, citing Cathryn’s credit history. She had returned to college herself to finish her bachelor’s degree and was also borrowing money. N.Y.U. suggested a federal Plus loan for parents, but that would have required immediate payments, something the mother couldn’t afford. So before Cortney’s junior year, N.Y.U. recommended that she apply for a private student loan on her own with Citibank.

Over the course of the next two years, starting when she was still a teenager, she borrowed about $40,000 from Citibank without thinking much about how she would pay it back. How could her mother have let her run up that debt, and why didn’t she try to make her daughter transfer to, say, the best school in the much cheaper state university system in New York? “All I could see was college, and a good college and how proud I was of her,” Cathryn said. “All we needed to do was get this education and get the good job. This is the thing that eats away at me, the naïveté on my part.”

But Cortney resists the idea that this is a tale of bad parenting. “To me, it would be an uncharitable reading,” she said. “My mother has tried her best, and I don’t blame her for anything in this.”

The Lender

Sallie Mae gets a pass here, in my view. A responsible grownup co-signed for its loans to the Munnas, and the company eventually cut them off.

But what was Citi thinking, handing over $40,000 to an undergraduate who had already amassed debt well into the five figures? This was, in effect, a “no doc” or at least a “low doc” subprime mortgage loan.

A Citi spokesman declined to comment, even though Ms. Munna was willing to sign a waiver giving Citi permission to talk about her loans. Perhaps the bank worried that once it approved one loan, cutting her off would have led her to drop out or transfer and have trouble paying back the loan.

Today, someone like Ms. Munna might not qualify for the $40,000 she borrowed. But as the economy rebounds, there is little doubt that plenty of lenders will step forward to roll the dice on desperate students, especially because the students generally can’t get rid of the debt in bankruptcy court.

The University

The financial aid office often has the best picture of what students like Ms. Munna are up against, because they see their families’ financial situation splayed out on the federal financial aid form. So why didn’t N.Y.U. tell Ms. Munna that she simply did not belong there once she’d passed, say, $60,000 in total debt?

“Had somebody called me and said, ‘Do you have a clue where this is all headed?’, it would have been a slap in the face, but a slap in the face that I needed,” said Cathryn Munna. “When financial aid told her that they could get her $2,000 more in loans, they should have been saying ‘You are in deep doo-doo, little girl.’ ”

That’s not a role that the university wants to take on, though. “I think that would be completely inappropriate,” said Randall Deike, the vice president of enrollment management for N.Y.U., who oversees admissions and financial aid. “Some families will do whatever it takes for their son or daughter to be not just at N.Y.U., but any first-choice college. I’m not sure that’s always the best decision, but it’s one that they really have to make themselves.”

The complications here go well beyond the propriety of suggesting that a student enroll elsewhere. Colleges don’t always know how much debt its students are taking on, which makes it hard to offer good counsel. (N.Y.U. does appear to have known about all of Ms. Munna’s loans, though.)

Then there’s a branding problem. Urging students to attend a cheaper college or leave altogether suggests a lack of confidence about the earning potential of alumni. Nobody wants to admit that. And once a university starts encouraging middle-class students to go elsewhere, it must fill its classes with more children of the wealthy and a much smaller number of low-income students to whom it can afford to offer enormous scholarships. That’s hardly an ideal outcome either.

Finally, universities exist to enroll students, not turn them away. “Aid administrators want to keep their jobs,” said Joan H. Crissman, interim president and chief executive of the National Association of Student Financial Aid Administrators. “If the administration finds out that you’re encouraging students to go to a cheaper school just because you don’t think they can handle the debt load, I don’t think that’s going to mesh very well.”

That doesn’t change the fact, however, that the financial aid office is still in the best position to see trouble coming and do something to stop it. University officials should take on this obligation, even if they aren’t willing to advise students to attend another college.

Instead, they might deputize a gang of M.B.A. candidates or alumni in the financial services industry to offer free financial planning to admitted students and their families. Mr. Deike also noted that the bigger problem here is one of financial literacy. Fine. He and N.Y.U. are in a great position to solve for that by making every financial aid recipient take a financial planning class. The students could even use their families as the case study.

The Options

The balance on Cortney Munna’s loans is about $97,000, including all of her federal loans and her private debt from Sallie Mae and Citibank. What are her options for digging out?

Her mother can’t help without selling her bed and breakfast, and then she’d have no home. She could take her daughter in, but there aren’t good ways for her to earn a living in Alexandria Bay, in upstate New York.

Cortney could move someplace cheaper than her current home city of San Francisco, but she worries about her job prospects, even with her N.Y.U. diploma.

She recently received a raise and now makes $22 an hour working for a photographer. It’s the highest salary she’s earned since graduating with an interdisciplinary degree in religious and women’s studies. After taxes, she takes home about $2,300 a month. Rent runs $750, and the full monthly payments on her student loans would be about $700 if they weren’t being deferred, which would not leave a lot left over.

She may finally be earning enough to barely scrape by while still making the payments for the first time since she graduated, at least until interest rates rise and the payments on her loans with variable rates spiral up. And while her job requires her to work nights and weekends sometimes, she probably should find a flexible second job to try to bring in a few extra hundred dollars a month.

Ms. Munna understands this tough love, buck up, buckle-down advice. But she also badly wants to call a do-over on the last decade. “I don’t want to spend the rest of my life slaving away to pay for an education I got for four years and would happily give back,” she said. “It feels wrong to me.”

.

Sunday, May 16, 2010

The Fix - Pennsylvania special election could be 2010 pivot point

The Fix
- Pennsylvania special election could be 2010 pivot point

Looks like this Tuesday,May 18th, could be the "Super Tuesday" of the 2010 elections. Will it be the predictor everyone thinks it will be?

Rx for Michigan: Great leaders | detnews.com | The Detroit News

Rx for Michigan: Great leaders | detnews.com | The Detroit News

Goldsmith is a very bright guy and one of this century's public management gurus. Worth reading because you get some Goldsmith quotes and insights into his thinking. Not so sure about the columnists observations.

Friday, April 30, 2010

Immigration Update:

--L.A. Times col. 1, 'OBAMA LAWYERS WEIGH ARIZONA OPTIONS,' by Richard A. Serrano and Peter Nicholas: 'A team of top government lawyers has quietly begun studying legal strategies for the Obama administration to mount a challenge to Arizona's new illegal immigration law, including the filing of a federal lawsuit against the state or joining a suit brought by others ... Attorneys from the Justice Department and the Department of Homeland Security are examining legal options and hope to make suggestions by mid-May, before the Arizona law takes effect sometime in midsummer ... Grounds for a possible U.S. challenge could include charges that the Arizona measure unlawfully preempts the federal government's role in securing the country's borders ... Or federal officials could file a civil rights challenge asserting that the law encourages racial profiling.'

--ASSIGNMENT EDITORS: 'The Los Angeles Police are preparing for as many as 100,000 marchers to rally for immigration rights in downtown Los Angeles during the annual May Day event Saturday.' --L.A. Times

Duncan Hunter: Deport Illegal Immigrants' Children Who Are Natural-Born Americans

Duncan Hunter: Deport Illegal Immigrants' Children Who Are Natural-Born Americans

Now here is an un-American idea. Lets take citizens of our country, children, and say under our constitution you have no rights and we want you to GET OUT. Wow. Who would Congressman Hunter put out of our country next, which United States citizens would he come for next. Whose door would he come to with the border police to remove you from your house and put you on a bus out of the country.

I thought his father was awful in Congress. Should have guessed it could get worse.

Lawmakers still seeking retirement plan deal | lansingstatejournal.com | Lansing State Journal

Lawmakers still seeking retirement plan deal | lansingstatejournal.com | Lansing State Journal

Biggest debate in Lansing at the moment. Can the Republicans and Democrats actually come together on something? Is there something still to the art of negotiating and leading? Okay this is the "proof moment".

Michigan governor candidates debate 'urban agenda' | detnews.com | The Detroit News

Michigan governor candidates debate 'urban agenda' | detnews.com | The Detroit News

Good development that citizens get to see and hear candidates of BOTH parties in same debate during the primary season. Good for citizens and good for candidates.
When will they debate a rural agenda?

Granholm to sign bills today on 'Oprah' banning texting while driving | detnews.com | The Detroit News

Granholm to sign bills today on 'Oprah' banning texting while driving | detnews.com | The Detroit News

How about cell phone use being banned while driving?

Granholm just cannot resist that limelight. Signing on Oprah? Yikes.

Thursday, April 29, 2010

Immigration

--AP, 'Referendum could delay AZ immigration law to 2012,' by Jonathan J. Cooper and Paul Davenport: 'Challenges to Arizona's tough new law targeting illegal immigration have started to emerge ... The National Coalition of Latino Clergy and Christian Leaders says it will file suit Thursday in Phoenix federal court, the first of several lawsuits expected in coming months. ... The group argues federal law pre-empts state regulation of national borders, and that Arizona's law violates due-process rights by allowing suspected illegal immigrants to be detained before they're convicted.'

Tuesday, April 27, 2010

GVSU promises to immediately cut tuition 5 percent if lawmakers guarantee minimum funding | - MLive.com

GVSU promises to immediately cut tuition 5 percent if lawmakers guarantee minimum funding | - MLive.com

The issue of state aid to universities and tuition gets more and more complicated. One of these days the legislature is going to put in place a "system" board of trustees that will govern all the universities. Or they will create two "systems": one for the UM, MSU and WSU and a "system" for the other 12 universities. This would take a constitutional amendment but if the voters approve the 2010 ballot question on whether we should convene a constitutional convention in 2011 then this could be addressed at this time.

Tuition and state aid levels will continue to be a "hot topic".