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Rep. Susan Lynn tries to sell Haslam’s Gasolinazo

source: State Representative Susan Lynn’s Weekly Wrap

by Horatio Bunce

State Representative Susan Lynn has an email newsletter called the Weekly Wrap. She has recently taken time off from selling Gov. Haslam’s re-branding of Common Core in Tennessee to selling Gov. Haslam’s massive fuel tax increases called the IMPROVE Act, while ignoring the $2 BILLION surplus in over-taxation the state is currently burdened with. Rep. Lynn engages in some….interesting….mathematics in justifying Haslam’s fuel tax increase to declare it “pocketbook neutral”. Meanwhile the Transportation Department is, like the Common Core tactic that worked so well, simply renaming the massive tax increase measure the “Tax Cut Act of 2017“.

As Rep. Lynn insults our intelligence to a slightly lesser degree than “Boss” Doss, I’ll give her a pass as she is from The North™ and possibly thinks us dumb hillbillies would actually use Common Core Math. Since she asked, here’s my calculation on the “Tax Cut Act of 2017”. From her Weekly Wrap:

“Improve Act Close to Floor Vote

The House is close to voting on the Improve Act – I want to know what you think. Please email me to let me know.

“The Improve Act is revenue neutral and now pocketbook neutral for most people. It will lower the sales tax on food a full percent or $1 for each $100 you spend at the store. It will also lower the Hall Income tax and the Franchise and Excise Tax on factories. It will raise the gas 6 cents or if you have a 15 gallon tank – or .90 cents a fill up. If you don’t drive a gas vehicle, it will raise the a (sic) diesel tax and impose a $100 annual registration fee for an electric vehicle.”

So as long as gas prices do not increase and you spend 3:1 food vs. fuel, then it is “pocket book neutral” as long as “most people” maintain this ratio of course. I think “most” still means more than 50% even in Common Core Mathspeak.  Of course, if you are buying diesel and need 15 gallons, it will cost an additional $0.12/gallon or $1.80. Oops, there went that pocketbook thingy. I guess I need to buy another $90 in groceries so I can “save” $0.90 to keep your fuel tax increase “neutral”?

But who cares about diesel anyway? What? Oh. The truck drivers. You mean the ones that deliver just about everything you buy at the mega-lo-mart, corporate welfare queens Amazon and FedEx……and the grocery? Yeah, those diesel trucks. Gee, I wonder what that 71% increase in the diesel fuel tax will do to that $100 grocery bill you used to have? Hint: they generally have larger than 15-gallon fuel tanks and lower fuel mileage than your personal car. What will the additional 33% increase in the gasoline tax mean for your grocery budget? I am wondering if the “leadership” Republicans are really this short-sighted or if they are only counting on you being easily fooled?

Conveniently left out of the discussion are the huge cuts to the Hall Income Tax ($102.1M) and cuts to Franchise Taxes ($122.3M), which when combined with the forecast reduction in sales tax on food give a total cut of $279.2M. In other words, the proposed $1 savings on your groceries sales tax only amounts to 19.6% of the “cuts” that we have to pass massive fuel tax increases to make “revenue neutral”.

Then we move on to use of the term “user fees” instead of that bad word “taxes” and explain that “user fees” should be paid by those using the roads, but then despite her photo at the top of the newsletter with “No Socialism” prominently displayed, we are taught that Some Socialism is acceptable when it comes to taxes (or they are not good Republican principles – kind of hard to tell which):

“Why lower some taxes while raising other taxes? Government uses fund accounting. Some taxes go into the General Fund and other taxes go into the Highway Fund. The taxes in the Highway Fund are all user fees – so if you drive – you pay for the roads, and you pay for them in proportion to how much you use them.

Paying for government by use of user fees is a good Republican principle. Much of government is not user fees but subsidized through the General Fund taxes because some things cannot be paid for by use of user fees. For instance, K – 12 education – most families could never pay all of what it costs to educate their children. TennCare too is a subsidy to the recipient – because the poor cannot pay for their care. Higher education is part user fee and part subsidized – students pay tuition (user fee) but they pay less than half of what their education actually costs – the tax payers through the General Fund subsidize the rest, and they also subsidize the buildings and maintenance for the buildings.”

Wow, for a second there, I thought a sacred cow was getting slaughtered. No, I guess not everyone can afford $10,000 each for their 1.8 kids to go to “free” government school when the average household income is less than $50k and 25% or more of us qualify for food stamps. But maybe we could figure out how multiple private schools provide an education for 40% less, rather than  using the super-inflated “free” schools’ price to justify another tax increase. Here’s a little food for thought. Let’s say the “free” schools could cut only half the difference in price to a mere $8000/student/year : $2000 * 1,000,000 public school students = $2,000,000,000 EVERY YEAR.

And the higher education language…students pay less than half of what education costs. Gee, after 13 YEARS (plus any pre-K) of “free” education why should they start paying for it at all? This is more divide-the-people obfuscation since of course everyone paying for tuition (or not) is a taxpayer paying for higher education (and their 20% inflation rates). Even when the students graduate, they pay taxes the rest of their lives in Tennessee. Now that community college is “free”, just wait to see how much it costs!

“So the Governor hopes to lower several taxes in the General Fund thus eliminating the surplus and effectively shifting the surplus to the Highway Fund by raising the user fee taxes. The plan is for all of this reduction and shifting to be as revenue neutral as possible to as many tax payers as possible.

Truly, every person and family will have their own calculous (sic). So please, take out a pencil and paper and do your own math.”

After justifying this massive fuel tax increase with people buying $100 in groceries and not being able to afford public school costs, the lion’s share of the tax breaks are the Hall Income Tax and Franchise Tax folk. Is that really helping “most people” or “as many tax payers as possible”? Because the rest of you dupes will be paying more for your fuel AND more for the same groceries, which means….your grocery sales tax cut is ALSO REVENUE NEUTRAL.

STOP WITH THE LIES ALREADY! IT’S A TAX INCREASE ANY WAY YOU SLICE IT!

‘A Better Solution Than Trump’s Border Wall’ – Ron Paul’s Jan. 30th Column

by Ron Paul

Just one week in office, President Trump is already following through on his pledge to address illegal immigration. His January 25th executive order called for the construction of a wall along the entire length of the US-Mexico border. While he is right to focus on the issue, there are several reasons why his proposed solution will unfortunately not lead us anywhere closer to solving the problem.

First, the wall will not work. Texas already started building a border fence about ten years ago. It divided people from their own property across the border, it deprived people of their land through the use of eminent domain, and in the end the problem of drug and human smuggling was not solved.

Second, the wall will be expensive. The wall is estimated to cost between 12 and 15 billion dollars. You can bet it will be more than that. President Trump has claimed that if the Mexican government doesn’t pay for it, he will impose a 20 percent duty on products imported from Mexico. Who will pay this tax? Ultimately, the American consumer, as the additional costs will be passed on. This will of course hurt the poorest Americans the most.

Third, building a wall ignores the real causes of illegal border crossings into the United States. Though President Trump is right to prioritize the problem of border security, he misses the point on how it can be done effectively and at an actual financial benefit to the country rather than a huge economic drain.

The solution to really addressing the problem of illegal immigration, drug smuggling, and the threat of cross-border terrorism is clear: remove the welfare magnet that attracts so many to cross the border illegally, stop the 25 year US war in the Middle East, and end the drug war that incentivizes smugglers to cross the border.

The various taxpayer-funded programs that benefit illegal immigrants in the United States, such as direct financial transfers, medical benefits, food assistance, and education, cost an estimated $100 billion dollars per year. That is a significant burden on citizens and legal residents. The promise of free money, free food, free education, and free medical care if you cross the border illegally is a powerful incentive for people to do so. It especially makes no sense for the United States government to provide these services to those who are not in the US legally.

Likewise, the 40 year war on drugs has produced no benefit to the American people at a great cost. It is estimated that since President Nixon declared a war on drugs, the US has spent more than a trillion dollars to fight what is a losing battle. That is because just as with the welfare magnet, there is an enormous incentive to smuggle drugs into the United States.

We already know the effect that ending the war on drugs has on illegal smuggling: as more and more US states decriminalize marijuana for medical and recreational uses, marijuana smuggling from Mexico to the US has dropped by 50 percent from 2010.

Finally, the threat of terrorists crossing into the United States from Mexico must be taken seriously, however once again we must soberly consider why they may seek to do us harm. We have been dropping bombs on the Middle East since at least 1990. Last year President Obama dropped more than 26,000 bombs. Thousands of civilians have been killed in US drone attacks. The grand US plan to “remake” the Middle East has produced only misery, bloodshed, and terrorism. Ending this senseless intervention will go a long way toward removing the incentive to attack the United States.

I believe it is important for the United States to have secure borders, but unfortunately President Trump’s plan to build a wall will end up costing a fortune while ignoring the real problem of why people cross the borders illegally. They will keep coming as long as those incentives remain.

Source: http://ronpaulinstitute.org/archives/featured-articles/2017/january/30/a-better-solution-than-trump-s-border-wall/

Sarah Palin questions Carrier deal and says Republicans oppose crony capitalism

http://www.youngcons.com/sarah-palin-but-wait-the-good-guys-wont-win-with-more-crony-capitalism/

I’ve been pointing out that here locally the Blount Partnership and Industrial Development Board of Blount County, Tennessee promote corporate welfare through crony deals as well.

Two of the commissioners that simply asked a few questions were blocked by Bryan Daniels and the Blount Partnership.  Blount Partnership admits its blocking two county commissioners

For all this central planning Blount County pay is still not keeping up with the rate of inflation.

AMI and other special incentives deals
No contract yet: Transparent Tennessee strikes again
Local Incentives Agreements
Chamber has article against EPA Water Rule
Does this look like someone who should be blocked?
All hail King Daniels!
How do the Mayor and Bryan Daniels explain these economic indicators?

To Really ‘Make America Great Again,’ End the Fed!

By Ron Paul
November 27, 2016

Former Dallas Federal Reserve Bank President Richard Fisher recently gave a speech identifying the Federal Reserve’s easy money/low interest rate policies as a source of the public anger that propelled Donald Trump into the White House. Mr. Fisher is certainly correct that the Fed’s policies have “skewered” the middle class. However, the problem is not specific Fed policies, but the very system of fiat currency managed by a secretive central bank.

Federal Reserve-generated increases in money supply cause economic inequality. This is because, when the Fed acts to increase the money supply, well-to-do investors and other crony capitalists are the first recipients of the new money. These economic elites enjoy an increase in purchasing power before the Fed’s inflationary policies lead to mass price increases. This gives them a boost in their standard of living.

By the time the increased money supply trickles down to middle- and working-class Americans, the economy is already beset by inflation. So most average Americans see their standard of living decline as a result of Fed-engendered money supply increases.

Some Fed defenders claim that inflation doesn’t negatively affect anyone’s standard of living because price increases are matched by wage increases. This claim ignores the fact that the effects of the Fed’s actions depend on how individuals react to the Fed’s actions.

Historically, an increase in money supply does not just cause a general rise in prices. It also causes money to flow into specific sectors, creating a bubble that provides investors and workers in those areas a (temporary) increase in their incomes. Meanwhile, workers and investors in sectors not affected by the Fed-generated boom will still see a decline in their purchasing power and thus their standard of living.

Adoption of a “rules-based” monetary policy will not eliminate the problem of Fed-created bubbles, booms, and busts, since Congress cannot set a rule dictating how individuals react to Fed policies. The only way to eliminate the boom-and-bust cycle is to remove the Fed’s power to increase the money supply and manipulate interest rates.

Because the Fed’s actions distort the view of economic conditions among investors, businesses, and workers, the booms created by the Fed are unsustainable. Eventually reality sets in, the bubble bursts, and the economy falls into recession.

When the crash occurs the best thing for Congress and the Fed to do is allow the recession to run its course. Recessions are the economy’s way of cleaning out the Fed-created distortions. Of course, Congress and the Fed refuse to do that. Instead, they begin the whole business cycle over again with another round of money creation, increased stimulus spending, and corporate bailouts.

Some progressive economists acknowledge how the Fed causes economic inequality and harms average Americans. These progressives support perpetual low interest rates and money creation. These so-called working class champions ignore how the very act of money creation causes economic inequality. Longer periods of easy money also mean longer, and more painful, recessions.

President-elect Donald Trump has acknowledged that, while his business benefits from lower interest rates, the Fed’s policies hurt most Americans. During the campaign, Mr. Trump also promised to make audit the fed part of his first 100 days agenda. Unfortunately, since the election, President-elect Trump has not made any statements regarding monetary policy or the audit the fed legislation. Those of us who understand that changing monetary policy is the key to making America great again must redouble our efforts to convince Congress and the new president to audit, then end, the Federal Reserve.

http://ronpaulinstitute.org/archives/featured-articles/2016/november/27/to-really-make-america-great-again-end-the-fed/

Iceland Today, the US Tomorrow?

By Ron Paul

During the 2008 economic crisis, Iceland’s government froze offshore accounts held by foreign investors in that country’s currency, the krona. Recently, the government of Iceland announced it would unfreeze the accounts if the account holders paid a voluntary “departure tax,” which could be as high as 58 percent. Investors who choose not to pay the departure tax would have their investment “segregated” into special funds that only invest in CDs issued by Iceland’s central bank. These CDs are expected to only provide a rate of return of at most 0.5 percent a year. So investors in offshore accounts can thus choose between having their money directly seized via the departure tax or indirectly seized via the inflation tax.

Iceland’s freezing of offshore krona accounts was part of a “stabilization and recovery” program implemented under the guidance of the International Monetary Fund (IMF), which also provided Iceland with a $1 billion loan. So US taxpayers not only helped the IMF bail out Iceland’s government, they may have helped the IMF advise Iceland on how best to steal property from American investors!

The IMF’s role in Iceland’s seizure of the property of foreign investors shows the hypocrisy of IMF officials, who recently expressed concerns about the increasing support for protectionism supposedly exemplified by the Brexit vote. However, freezing of assets held by foreign investors is a particularly harmful form of protectionism, while Brexit was more about rejecting the European Union’s bureaucracy than rejecting free trade. Perhaps what the IMF and its supporters are really worried about is losing their power to use taxpayers’ money to force other countries to adopt IMF bureaucrats’ favored economic policies.

Iceland is not the only government to turn to a departure tax to raise revenue. Just last year, in order to raise revenue for federal transportation programs, Congress gave the IRS the power to revoke the passport of any American accused of owing more than $50,000 in back taxes.

As an increasingly desperate Congress looks for new ways to squeeze money out of the American people to fund the welfare-warfare state, it is likely that more Americans will have their liberties limited because the IRS accuses them of not paying their fair share of taxes. It also is likely that the Federal Reserve will follow the example of its counterpart in Iceland and devalue the holdings of anyone who dares to resist the IRS’s demands.

Those hoping that the presidential election will result in real changes are bound to be disappointed. While Donald Trump seems to appreciate how current Fed policies help the incumbent administration while harming the people, he does not appear to understand that the problem is not with certain Fed policies, but with the Fed’s very existence. While Mr. Trump does support tax cuts, he also supports increasing government spending on infrastructure at home, militarism abroad, protectionism, and an economic cold war with China.

Hillary Clinton has actually said it is inappropriate for candidates to criticize the Fed. Sectary Clinton has also called for massive increases in government spending and taxes. Hillary Clinton may be more hawkish than Donald Trump, since Mr. Trump has rejected Secretary Clinton’s calls for a new cold war with Russia.

Instead of looking to politicians to save us, those of us who understand the dangers of our current course must continue to spread the ideas of liberty among our fellow citizens. Politicians will only change course when a critical mass of people stops falling for the war party’s propaganda, stops demanding entitlements, and starts demanding liberty.

Source: http://ronpaulinstitute.org/archives/featured-articles/2016/october/17/iceland-today-the-us-tomorrow/

Why do traffic deaths fall in recessions? Dangerous drivers drive less

http://www.thecarconnection.com/news/1105825_why-do-traffic-deaths-fall-in-recessions-dangerous-drivers-drive-less

http://www-fars.nhtsa.dot.gov/Main/index.aspx
2006 US Death rate per mile 1.42 Total Deaths 42,708 Miles Driven 3.014 Trillion
2007 US Death rate per mile 1.36 Total Deaths 41,259 Miles Driven 3.031 Trillion
2008 US Death rate per mile 1.26 Total deaths 37,423 Miles Driven 2.977 Trillion
2009 US Death rate per mile 1.15 Total deaths 33,883 Miles Driven 2.957 Trillion
2010 US Death rate per mile 1.11 Total deaths 32,999 Miles Driven 2.967 Trillion
2011 US Death rate per mile 1.10 Total deaths 32,479 Miles Driven 2.950 Trillion
2012 US Death rate per mile 1.14 Total deaths 33,782 Miles Driven 2.969 Trillion
2013 US Death rate per mile 1.10 Total deaths 32,894. Miles Driven 2.988 Trillion
2014 US Death rate per mile 1.08 Total deaths 32,675 Miles Driven 3.026 Trillion
Fatality rate is per 100 million miles traveled

Tennessee trial court judges are best paid in nation after cost of living adjustment

I’ve long maintained that government officials in Tennessee are making too much money and that the salaries are far too disproportionate to the salaries of the people paying their salaries.  During the past two budget discussions, I tried unsuccessfully to cut some of the top paid county officials salaries to the state mandated minimums.

A new survey shows that trial judges in Tennessee are the best paid in the nation after a cost of living adjustment.

Judicial salaries and rank among the states and Washington DC
High Court (Supreme Court) $182,508  12th
Intermediate Appellate Court $176,436  9th
General-Jurisdiction Court $170,352  9th  after cost of living adjustment 1st

Compare that to the taxpaying citizens for Tennessee.  Tennessee ranked 46th in 2014 for median household income at $43,716.

You can express your concerns to the Tennessee Generally Assembly.

sen.ken.yager@capitol.tn.gov, “Becky Massey” <sen.becky.massey@capitol.tn.gov>, “Bill Ketron” <sen.bill.ketron@capitol.tn.gov>, “Brian Kelsey” <sen.brian.kelsey@capitol.tn.gov>, “Doug Overbey” <sen.doug.overbey@capitol.tn.gov>, “Ed Jackson” <sen.ed.jackson@capitol.tn.gov>, “Frank Niceley” <sen.frank.niceley@capitol.tn.gov>, “Jack Johnson” <sen.jack.johnson@capitol.tn.gov>, “Janice Bowling” <sen.janice.bowling@capitol.tn.gov>, “Mae Beavers” <sen.mae.beavers@capitol.tn.gov>, “Mark Green” <sen.mark.green@capitol.tn.gov>, “Mark Norris” <sen.mark.norris@capitol.tn.gov>, lt.gov.ron.ramsey@capitol.tn.gov, “Steven Dickerson” <sen.steven.dickerson@capitol.tn.gov>, “Steve Southerland” <sen.steve.southerland@capitol.tn.gov>, sen.sara.kyle@capitol.tn.gov, “Richard Briggs” <sen.richard.briggs@capitol.tn.gov>, rep.raumesh.akbari@capitol.tn.gov, rep.david.alexander@capitol.tn.gov, rep.joe.armstrong@capitol.tn.gov, rep.bill.beck@capitol.tn.gov, rep.harry.brooks@capitol.tn.gov, rep.kevin.brooks@capitol.tn.gov, rep.sheila.butt@capitol.tn.gov, rep.david.byrd@capitol.tn.gov, rep.kent.calfee@capitol.tn.gov, rep.karen.camper@capitol.tn.gov, rep.dale.carr@capitol.tn.gov, rep.mike.carter@capitol.tn.gov, rep.glen.casada@capitol.tn.gov, rep.john.ray.clemmons@capitol.tn.gov, rep.jim.coley@capitol.tn.gov, rep.barbara.cooper@capitol.tn.gov, rep.martin.daniel@capitol.tn.gov, rep.john.deberry@capitol.tn.gov, rep.barry.doss@capitol.tn.gov, rep.kevin.dunlap@capitol.tn.gov, rep.bill.dunn@capitol.tn.gov, rep.jimmy.eldridge@capitol.tn.gov, rep.jeremy.faison@capitol.tn.gov, rep.andrew.farmer@capitol.tn.gov, rep.joanne.favors@capitol.tn.gov, rep.craig.fitzhugh@capitol.tn.gov, rep.john.forgety@capitol.tn.gov, rep.brenda.gilmore@capitol.tn.gov, rep.tilman.goins@capitol.tn.gov, rep.marc.gravitt@capitol.tn.gov, rep.curtis.halford@capitol.tn.gov, rep.ga.hardaway@capitol.tn.gov, speaker.beth.harwell@capitol.tn.gov, rep.david.hawk@capitol.tn.gov, rep.patsy.hazlewood@capitol.tn.gov, rep.gary.hicks@capitol.tn.gov, rep.timothy.hill@capitol.tn.gov, rep.matthew.hill@capitol.tn.gov, rep.john.holsclaw@capitol.tn.gov, rep.andy.holt@capitol.tn.gov, rep.dan.howell@capitol.tn.gov, rep.bud.hulsey@capitol.tn.gov, rep.jamie.jenkins@capitol.tn.gov, rep.darren.jernigan@capitol.tn.gov, rep.curtis.johnson@capitol.tn.gov, rep.sherry.jones@capitol.tn.gov, rep.roger.kane@capitol.tn.gov, rep.kelly.keisling@capitol.tn.gov, rep.sabi.kumar@capitol.tn.gov, rep.william.lamberth@capitol.tn.gov, rep.mary.littleton@capitol.tn.gov, rep.ron.lollar@capitol.tn.gov, rep.harold.love@capitol.tn.gov, rep.jon.lundberg@capitol.tn.gov, rep.susan.lynn@capitol.tn.gov, rep.pat.marsh@capitol.tn.gov, rep.judd.matheny@capitol.tn.gov, rep.jimmy.matlock@capitol.tn.gov, rep.gerald.mccormick@capitol.tn.gov, rep.steve.mcdaniel@capitol.tn.gov, rep.steve.mcmanus@capitol.tn.gov, rep.larry.miller@capitol.tn.gov, rep.bo.mitchell@capitol.tn.gov, rep.debra.moody@capitol.tn.gov, rep.antonio.parkinson@capitol.tn.gov, rep.joe.pitts@capitol.tn.gov, rep.mark.pody@capitol.tn.gov, rep.jason.powell@capitol.tn.gov, rep.dennis.powers@capitol.tn.gov, rep.john.ragan@capitol.tn.gov, rep.bob.ramsey@capitol.tn.gov, rep.jay.reedy@capitol.tn.gov, rep.courtney.rogers@capitol.tn.gov, rep.bill.sanderson@capitol.tn.gov, rep.charles.sargent@capitol.tn.gov, rep.cameron.sexton@capitol.tn.gov, rep.jerry.sexton@capitol.tn.gov, rep.johnny.shaw@capitol.tn.gov, rep.david.shepard@capitol.tn.gov, rep.eddie.smith@capitol.tn.gov, rep.mike.sparks@capitol.tn.gov, rep.billy.spivey@capitol.tn.gov, rep.mike.stewart@capitol.tn.gov, rep.art.swann@capitol.tn.gov, rep.bryan.terry@capitol.tn.gov, rep.joe.towns@capitol.tn.gov, rep.ron.travis@capitol.tn.gov, rep.johnnie.turner@capitol.tn.gov, rep.micah.vanhuss@capitol.tn.gov, rep.terri.lynn.weaver@capitol.tn.gov, rep.dawn.white@capitol.tn.gov, rep.mark.white@capitol.tn.gov, rep.ryan.williams@capitol.tn.gov, rep.john.windle@capitol.tn.gov, rep.tim.wirgau@capitol.tn.gov, rep.rick.womick@capitol.tn.gov, rep.jason.zachary@capitol.tn.gov,

The Phony Job Recovery

By Ron Paul

Last Friday saw the release of a bombshell jobs report, with headlines exclaiming that the US economy added over 250,000 jobs in July, far in excess of any forecasts. The reality was far more grim. Those “jobs” weren’t actually created by businesses – they were created by the statisticians who compiled the numbers, through the process of “seasonal adjustment.” That’s a bit of statistical magic that the government likes to pull out of its hat when the real data isn’t very flattering. It’s done with GDP, it’s done with job numbers, and similar manipulation is done with government inflation figures to keep them lower than actual price increases. In reality there are a million fewer people with jobs this month than last month, but the magic of seasonal adjustment turns that into a gain of 255,000.

Delving further into the jobs report, we see that many of the jobs that were supposedly created were jobs in government and health care. Government jobs, of course, are paid for by siphoning money away from taxpayers. And health care jobs are increasingly created solely because of the ever-growing mandates of Obamacare. Other major sources of job growth were temp jobs and leisure & hospitality (i.e. waiters and bartenders). These aren’t long-lasting jobs that will contribute to economic growth, they are mostly just jobs that cater to the tastes of the well-to-do who continue to benefit from the Federal Reserve’s easy monetary policy.

As New York, San Francisco, Washington, DC, and other political and financial hubs continue to benefit from trillions of dollars of debt-financed government spending and the trillions more dollars the Federal Reserve has created from nothing, the politicians, lobbyists, and bankers who receive that money demand ever more exotic food, drink, and entertainment. The jobs that arise to satisfy that demand, we are supposed to believe, are the backbone of the job market “recovery.” Yeah, right.

Eight years after the worst part of the last financial crisis, the US economy still has not fully recovered. The number of people employed may have finally begun to grow past its pre-crisis peak but the quality of jobs has deteriorated, and the number of people who are still looking for jobs or who have even given up looking for jobs and dropped out of the labor force still numbers in the millions and shows no signs of shrinking. Quantitative easing, zero or negative interest rates, and other inflationary central bank policies cannot lead to lasting job creation or economic growth. Try telling that to the central bankers, though. They only care about aggregate numbers, not what is actually behind those aggregates. A castle built of sand is the same to them as a castle built of stone.

Until the notion that wealth and prosperity can come from a printing press is eradicated from the thinking of policymakers, economies around the world will remained mired in this malaise. Jobs are created by meeting consumer demand. If you provide the goods and services that customers want at the price they want, your business will grow, jobs will be created, and everyone in society will be better off.

If, on the other hand, jobs are created through government money creation and heavily protectionist laws and regulations, those jobs will not meet the needs of consumers, will add nothing to productivity, and ultimately will not last. When politicians pursue policies that incentivize jobs like the latter to those of the former, economic stagnation is the unfortunate but predictable result.

Read online: http://ronpaulinstitute.org/archives/featured-articles/2016/august/08/the-phony-job-recovery/

June 2016 Commission Report

When I (Tona Monroe) envisioned writing monthly reports on county government, I thought that the reports would be published within a few days of the monthly commission meetings, which are held on the 3rd Thursday of each month.  However, I quickly realized that it was better to wait until the end of the month to more fully report on your local government.  This is because there are important meetings after the monthly commission meeting and the meetings can create more questions than answers.  Thus, I usually follow up after these meetings by seeking answers.

Sometimes I get answers and sometimes it is difficult to get answers.  As such, these monthly reports are intended to provide a review of the monthly activities of your local government.  If you desire to learn about important matters before the commission votes on them, please be sure to visit this site at least a couple of times a month because I write about issues throughout the month.  Additionally, I also have an email list that you can subscribe to which will keep you informed.  If you’d like to join the email list, please send me an email.  tona@breezeair.net

Tennessee Corrections Institute Board of Control meeting
On June 1, I drove to Nashville to attend the Tennessee Corrections Institute (TCI) Board of Control meeting.  Commissioners Jamie Daly and Karen Miller also attended the meeting.

My reasons for attending are manifold.  Please search this website, if you are new to the site, to learn those reasons.  My statement to the board is available here.

A county should strive to meet minimum standards and be certified by the TCI.  However, after reading prior Board of Control minutes and watching the process in action, I’ve concluded that obtaining certification can be political rather than an objective recognition of compliance with standards.

I had intended to write about the meeting before now but haven’t been able to obtain all the documents that I wanted to review before writing about the meeting.  This may be something that I will write about in the future.

Agenda Committee
Commissioners Tom Cole, Steve Samples and Tom Stinnett were absent.

At the Agenda Committee meeting, I offered two taxpayer protection amendments.  Both were rejected.

One amendment would have amended the annual budget resolution to prohibit the mayor and finance director from assigning fund balance money without commission approval.  My intention was to ensure that there would be no more secret plans for your tax money as there has been in the past.

The other amendment was intended to ensure that no monies appropriated for pay raises would be expended for any other purpose without commission approval.  The budget funds 1.8% pay raises for all county employees, excluding the Highway Department and schools that set their own raises, and office holders who receive raises based on state mandates.  However, not all the amounts budgeted for pay raises will be expended for that purpose.

Raises are suppose to be awarded based on satisfactory job performance.  This will leave money in funds that won’t be awarded as pay raises.  This means that office holders can transfer money not awarded for pay raises for use elsewhere in their budgets.  This is a misuse of the public trust.  Office holders should not be requesting money that isn’t needed and no office holder should use the funds for any other purpose.

Pay raises are not uniform throughout local government.  Office holders will receive state mandated pay raises.  Some school employees will receive 5% pay raises.  General county employees will receive 1.8% pay raises.  I don’t know what the Highway Department employees will receive.

Only commissioners Mike Akard, Archie Archer, Jamie Daly, Karen Miller and I voted to protect the taxpayers with these two amendments.

Commission meeting
Commissioner Mike Akard was absent.

Tax rate is set for $2.47
The property tax rate will remain at $2.47.  The powers that be are patting themselves on the back for a job well done because they’ve put together a budget where they get nice pay raises and much of what they want, without increasing the property tax rate.  However, that doesn’t mean that local government held the line on spending.

The budget is up $6,789,571 million over the previous year’s original adopted budget.  The adopted budget for fiscal year (FY) 15-16 is $174,477,835 while the adopted budget for FY 16-17 is $181,267,406.  Not all of this is local money.  The schools will receive a sizeable increase from the state and $1,250,000 of this money came from fund balance that was approved as a budget increase in December for the IT fund that was rushed through.  It is money that hasn’t yet been spent and has to be budgeted in the new year.

More of your money is projected to be collected due to tax revenue growth but pay has not keeping up with inflation.  The local government hasn’t done you any favors by keeping the tax rate that is 15% higher than it was 2 years ago.

Only commissioners Miller and I voted no.  That means that there are only 3 commissioners left who haven’t supported a tax rate that is higher than when they took office, or in the case of Peggy Lambert, left office.   The commissioners who voted no on the tax increase last year, among other things, have now supported it and everything in the budget a year later.

What good is it to oppose something for one year and then rubber stamp it a year later?  The property tax rate was $2.15 when I took my oath of office.  When I ran for office, many people told me that they didn’t want another property tax increase.  I made a campaign promise not to raise property taxes and I will stick by that.  I will never vote for a budget that requires a tax rate that is higher than when I took office.

Someone said to me what good does it do to focus on a tax increase when the entire tax amount is being wasted.  That’s a valid point.  People often get upset about a tax increase, but that is often just a small amount of what you are paying.  The entire amount is important, not just the increase.  We should look at every penny the government wants and spends.

Capital fund amendment failed
I offered an amendment to the tax rate that would have moved one penny of the schools general fund to the schools capital fund.  This amendment would have saved county taxpayers about $127,500 because capital fund money doesn’t have to be split with Alcoa and Maryville schools.

Blount County Schools teacher and County Commissioner Dodd Crowe spoke against the amendment although he didn’t actually give a precise reason why he opposed the amendment.  Fiscal Administrator for the schools, Troy Logan, said the amendment wouldn’t align with the school board’s goals.  Ask your school board member if he or she thinks that one of their goals should include giving $127,500 in tax money to Maryville and Alcoa, when the county doesn’t have to.

The School Board is planning on spending over $2 million to fix roofs this budget year.  This will consume the entire capital fund and the rest will be paid for with fund balance in the schools general purpose fund.  The shift in the penny would have given the schools additional funds, thereby reducing use of fund balance, without increasing the county property tax rate.

Commissioners and teachers Grady Caskey and Dodd Crowe voted against the amendment, as did Commissioner Tom Cole whose wife works for the schools.  These three gave about $127,500 to the cities when they didn’t have to.  Commissioner and school employee Gary Farmer abstained.  Only commissioners Andy Allen, Archie Archer, Jamie Daly, Karen Miller and I thought it makes good fiscal sense to use the money to fix the roofs instead of giving it to the two cities.

I don’t like using the term penny to describe the tax rate because it makes the amount you are paying sound so much smaller than it really is.  A penny on the tax rate is estimated to be worth $327,500 in property tax money.  Because of split dollars, the amount given to the schools for each penny is about $200,000 according to fiscal administrator Troy Logan.  The schools capital fund receives the entire amount of $327,500 per penny, excluding the Trustee’s Fees that are deducted from property taxes.

Budget Committee’s recommended budget is rubber stamped
The commission rubber stamped the budget recommended by the Budget Committee without any changes.  Only commissioners Karen Miller and I offered amendments to the budget.

Commissioner Miller offered an amendment to gut the budget given to the Industrial Development Board, which is used to dole out corporate welfare.  The IDB receives over $1 million.  Miller’s amendment would have cut the IDB budget to $1 and given the money to the Highway Department.

The finance director said that Miller’s amendment would have required the commission to amend the tax rate resolution.  This is a good example of why it doesn’t make sense to set the tax rate in advance of setting the budget.  How can the commission properly budget the rate when it hasn’t determined the amounts that will be spent from each fund?

Commissioner Miller requested permission of the body to read her prepared remarks on the amendment.  The commission rejected allowing her to read her statement.  This is appalling.  Commissioners are given the power to be heard and the duty to look out for taxpayers.  Apparently the majority of commissioners don’t want a commissioner to come prepared with the facts and their reasons for advocating positions.  The commission rejected allowing me to read a statement last month.

Miller did speak briefly without reading her statement.  She said she didn’t think tax money should be given for corporate welfare, that she was upset with the way Bryan Daniels and the Blount Partnership had blocked commissioner Jamie Daly and me and that the money should be used to fix the pot holes in the road.  I seconded Miller’s amendment but it was rejected by the commission with only Commissioners Daly, Miller and myself supporting it.

4 officials are paid above the state mandated minimum
State law mandates minimum salaries for elected officials.  The salaries range from being nearly double to near quadruple the average salary in Blount County.

State law allows the commission to pay elected officials more than the state mandated minimums.  With the salaries already being so much more than what the majority of households live on, I moved to cut the salaries of the court clerk, highway superintendent, sheriff and mayor to the state mandated minimums.

The cut would have saved the taxpayers $91,713 but it was rejected with only commissioners Daly, Miller and myself voting for it.  Chairman Jerome Moon gave one of the typical reasons to rubber stamp the matter and move on.  He said that state law requires us to give the sheriff a pay supplement above his base pay.   However, when I asked what state law said we have to give the sheriff more than the state minimum, he couldn’t name the law.  The sheriff couldn’t state the law either.  Moon them passed the buck to Commissioner Steve Samples, because he is the longest serving commissioner.  Samples didn’t know the law either.

I am researching the matter to see exactly what the county is required to pay the sheriff.

No one read a conflict of interest statement but several have conflicts of interest.

Meeting minutes missing wording of a motion
The meeting minutes for the May commission meeting did not include the wording of a motion that I made.  I moved to amend the minutes to include the wording of the amendment that I had offered but the commission rejected the amendment.  The minutes should reflect any change that a commissioner tries to make to public policy and government documents.

Highway Grant
There was a reimbursement grant for highway funds expended during an emergency with begin and end dates that spans five years.  The new Highway Superintendent (HS) Jeff Headrick couldn’t explain these dates.  He said it was handled before he became HS but his name is on the budget amendment request.  I often wonder if anyone in local government understands what they are signing up for, with state and federal grants.

IT Meeting
A special Information Technology (IT) Committee was called by the mayor, to have the new IT consulting firm Mindboard give a presentation on its IT assessment of the county.  A previous assessment was done.  The Mindboard consultant referred to it as the 10,000 foot view.  He referred to his assessment as the 3,000 foot view.  The county is in need of some IT improvements but we need to tread carefully.

Kronos, the $2.3M time keeping, payroll and HR IT software project, is several months behind schedule.  This was rushed through without fully examining whether the county was ready for the project.

The estimated capital costs of about $2.5M, in the Mindboard presentation, are nearly double what the commission approved last year for the updates.  Furthermore, the annual costs to maintain these updates will greatly increase the IT budget.  The committee was given a figure that was over $600,000.

These aren’t exact numbers.  The costs for computers was listed as zero.  The former IT Director John Herron, who now works for the schools, pointed out that this wasn’t realistic.

I wondered why this was listed as zero and I may have learned why.  In the commission packet, there are budget transfers to purchase computers in both the Finance and Accounting and Data Processing (IT) budgets. (See pages 330 and 334)  Finance Director Vineyard told me that all IT needs would come out of the IT fund but apparently both had money left over at the end of the year to use to buy new computers.

It is amazing how much money is moved around (transferred) at the end of the year.  I may write more about the subject in the future.

The IT Committee took no action on the presentation.  However, the mayor and finance director usually proceed with their big spending plans without a recommendation from the IT Committee.

State to remove 99 felons from jail
The best news of the month is that the Tennessee Department of Corrections (TDOC) is going to remove 99 felons to state facilities.  This reduces the chance of a tax increase for jail expansion.  However, we should be ever vigilant of the matter.  We need to ensure that TDOC and the sheriff actively work to move felons, with a continuous sentence of more than a year, to state facilities in the future.

The sheriff stated that I have “offered no realistic or legal solutions.”  That’s false.  One realistic and legal solution that I offered was to have the state sentenced felons moved to state facilities.  It’s good to see this solution will happen.

Up next
The commission will consider reforming the Human Resources and Insurance Committee.

Happy Independence Day!