Jim and I moved to New Hampshire at the end of 2006, it has been six years since we moved. Since we no longer reside in Illinois and there are plenty of tax fighters doing a good job of exposing the problems with public schools we have decided to no longer keep the domain noreferendum.org and noreferendum.com. With homeschooling and tax fighting activities in New Hampshire it was just far too difficult for me to keep up the pages anyway.
Cathy
Tuesday, September 25, 2012
Tuesday, August 24, 2010
The Michael Letters - Heaven's Answer to Screwtape

Product Description
In the mid-20th century, C.S. Lewis' seminal work
The Screwtape Letters redefined the art of demonic
corruption. Today, the Archangel Michael and his
understudy Jacob champion the cause of human
salvation in The Michael Letters. Empowered by
the Holy Spirit, Michael and Jacob guide souls to an
ever richer communion with mankind and with the
Kingdom of Heaven.
The Michael Letters is an uplifting journey into the
wonders of the human spirit. Readers across all
levels of faith find thought-provoking messages that
enrich the storytelling experience.
About the Author
Raised as one of six children in a Roman Catholic household, Jim Peschke has written several short articles dealing with diverse issues such as mathematical analysis, public education, and electronic technology. He discovered C.S. Lewis' The Screwtape Letters at age 10, committing to write the story from the angel's perspective. Jim has a Bachelor of Science degree in Nuclear Engineering from Rensselaer Polytechnic Institute, continuing his studies in plasma physics and thermonuclear fusion at the University of Wisconsin - Madison. Jim is an electrical engineer and lives in New Hampshire's Upper Valley with his wife Cathy and children Anastasia and Alexander.
Sunday, April 01, 2007
It is official we have moved and sold our home in Illinois.
It is official we have moved and sold our home in Illinois. We will no longer be updating this BLOG. We will continue to update our CRAFT website
and our Croydon CRAFT BLOG.
Good luck to Harvard residents fighting future referenda our home has been sold to school teachers, future fights may be tough.
We suggest the following sites for future reference.
Family Taxpayers Network
Illinois Policy Institute
Spontaneous Solutions
Heartland Institute
<$BlogItemTitle$> Education Intelligence Agency
Townhall.com
and our Croydon CRAFT BLOG.
Good luck to Harvard residents fighting future referenda our home has been sold to school teachers, future fights may be tough.
We suggest the following sites for future reference.
Family Taxpayers Network
Illinois Policy Institute
Spontaneous Solutions
Heartland Institute
<$BlogItemTitle$> Education Intelligence Agency
Townhall.com
Wednesday, March 21, 2007
We will not be posting March 22 - March 30
We will not be posting March 22 - March 30. We suggest the following sites in the mean time.
The Family Taxpayers Network
Education Intelligence Agency
Education Matters
The Family Taxpayers Network
Education Intelligence Agency
Education Matters
Tuesday, March 20, 2007
House panel vote today on school tax swap plan?
The income tax increase is one step closer to passing.
House panel vote today on school tax swap plan?
Tuesday, March 20, 2007
By Phil Kadner
Source: Daily Southtown
Searching for signs of life in the state Legislature can be like interpreting Da Vinci's "Last Supper."
Illinois House Speaker Michael Madigan, a master political artist, may be whispering important secrets about school funding into the ears of key committee members today.
Then again, he may merely be creating an illusion.
The Illinois House of Representatives Committee on Appropriations -- Elementary and Secondary Education
is expected to hold a public hearing today on House Bill 750.
This is a measure that would change the way public schools are funded by increasing the state income tax
from 3 percent to 5 percent while providing property tax relief to homeowners.
There are some other tax and tax relief components to the plan as well, but this stuff is confusing enough
without getting into all the details.
I mean, sponsors of this bill are calling it the Education and Fiscal Responsibility Act. If you like
that title, you can find the details for yourself online.
The important thing here, I think, is that Madigan is allowing the bill to be heard by a House committee.
Last year, the speaker refused to take the measure seriously.
Even while the measure, sponsored by state Sen. James Meeks (D-Chicago) was passing out of a Senate
committee, Madigan's staff was laughing at its chances of ever getting a hearing in the House.
Turns out they were right.
Senate President Emil Jones (D-Chicago), who had boasted of supporting school funding reform and a tax
hike, refused to let the measure onto the floor for a vote of the full Senate.
Well, things have changed in a year.
Now Jones is supporting Gov. Rod Blagojevich's school funding plan, which includes a new gross receipts tax
on businesses.
State Rep. David Miller (D-Calumet City), the sponsor of HB 750 in the House, is delighted Madigan has
decided to allow a public hearing on his bill.
Miller even expects the committee to vote on the measure today.
Since Democrats control the House and Madigan controls the Democrats, he likely wouldn't embarrass Miller by
allowing a vote that would result in the bill's defeat.
If there is a vote, it's because Madigan wants the bill pushed out of committee.
And the timing suggests Madigan wants an alternative to the governor's gross receipts tax.
"I don't think the speaker has any position on the gross receipts tax at this point," said Steve Brown,
Madigan's spokesman.
"He just doesn't know enough about it. All we have are speeches and press releases.
"The speaker needs to know what the plan would actually do, the details, before he takes a position."
But the speaker is allowing HB 750 to be called for a vote. So something in his position has changed since
last year.
"It's a new year," Brown said. "It's obviously time to discuss this issue now."
It also is possible that Madigan is seeking leverage in negotiations with Blagojevich and Jones.
Whatever the case, Madigan may now be the last and best hope for the so-called tax swap proposal.
Jones has said that as far as he's concerned the measure is in the Senate's "Hospice Committee.'
When I asked Meeks about that, he said, "I reminded the Senate president that hospice is not for the dead,
but for the living. My bill is still alive."
Looking at the political picture in Illinois is like studying one of Seurat's paintings at the Art
Institute.
At a certain distance, the image has clarity.
But the closer you look, the more obvious it becomes that you're just looking at a jumble of dots on
canvass.
The governor has vowed to veto any bill that includes a tax increase.
The governor has proposed a gross receipts tax that's going to result in higher prices for consumers, but he
claims that's a tax on big business, not consumers.
In the meantime, Mayor Richard Daley, who has said he wants the Legislature to pass school funding reform
this year, has yet to take a position on either of the bills.
He did ardently defend businessmen, ripping the governor for calling them "fat cats."
"You have to be optimistic," Miller said.
"House Bill 750 has been assigned to committee. I expect a committee vote (today).
"That's more than we've gotten in the past."
Will Madigan be there?
"I don't know, but his top legal guy will be running the meeting," Miller said. "That's significant."
You know, it must be because when I looked at the "Last Supper" again, there was Madigan's guy whispering in someone's ear.
House panel vote today on school tax swap plan?
Tuesday, March 20, 2007
By Phil Kadner
Source: Daily Southtown
Searching for signs of life in the state Legislature can be like interpreting Da Vinci's "Last Supper."
Illinois House Speaker Michael Madigan, a master political artist, may be whispering important secrets about school funding into the ears of key committee members today.
Then again, he may merely be creating an illusion.
The Illinois House of Representatives Committee on Appropriations -- Elementary and Secondary Education
is expected to hold a public hearing today on House Bill 750.
This is a measure that would change the way public schools are funded by increasing the state income tax
from 3 percent to 5 percent while providing property tax relief to homeowners.
There are some other tax and tax relief components to the plan as well, but this stuff is confusing enough
without getting into all the details.
I mean, sponsors of this bill are calling it the Education and Fiscal Responsibility Act. If you like
that title, you can find the details for yourself online.
The important thing here, I think, is that Madigan is allowing the bill to be heard by a House committee.
Last year, the speaker refused to take the measure seriously.
Even while the measure, sponsored by state Sen. James Meeks (D-Chicago) was passing out of a Senate
committee, Madigan's staff was laughing at its chances of ever getting a hearing in the House.
Turns out they were right.
Senate President Emil Jones (D-Chicago), who had boasted of supporting school funding reform and a tax
hike, refused to let the measure onto the floor for a vote of the full Senate.
Well, things have changed in a year.
Now Jones is supporting Gov. Rod Blagojevich's school funding plan, which includes a new gross receipts tax
on businesses.
State Rep. David Miller (D-Calumet City), the sponsor of HB 750 in the House, is delighted Madigan has
decided to allow a public hearing on his bill.
Miller even expects the committee to vote on the measure today.
Since Democrats control the House and Madigan controls the Democrats, he likely wouldn't embarrass Miller by
allowing a vote that would result in the bill's defeat.
If there is a vote, it's because Madigan wants the bill pushed out of committee.
And the timing suggests Madigan wants an alternative to the governor's gross receipts tax.
"I don't think the speaker has any position on the gross receipts tax at this point," said Steve Brown,
Madigan's spokesman.
"He just doesn't know enough about it. All we have are speeches and press releases.
"The speaker needs to know what the plan would actually do, the details, before he takes a position."
But the speaker is allowing HB 750 to be called for a vote. So something in his position has changed since
last year.
"It's a new year," Brown said. "It's obviously time to discuss this issue now."
It also is possible that Madigan is seeking leverage in negotiations with Blagojevich and Jones.
Whatever the case, Madigan may now be the last and best hope for the so-called tax swap proposal.
Jones has said that as far as he's concerned the measure is in the Senate's "Hospice Committee.'
When I asked Meeks about that, he said, "I reminded the Senate president that hospice is not for the dead,
but for the living. My bill is still alive."
Looking at the political picture in Illinois is like studying one of Seurat's paintings at the Art
Institute.
At a certain distance, the image has clarity.
But the closer you look, the more obvious it becomes that you're just looking at a jumble of dots on
canvass.
The governor has vowed to veto any bill that includes a tax increase.
The governor has proposed a gross receipts tax that's going to result in higher prices for consumers, but he
claims that's a tax on big business, not consumers.
In the meantime, Mayor Richard Daley, who has said he wants the Legislature to pass school funding reform
this year, has yet to take a position on either of the bills.
He did ardently defend businessmen, ripping the governor for calling them "fat cats."
"You have to be optimistic," Miller said.
"House Bill 750 has been assigned to committee. I expect a committee vote (today).
"That's more than we've gotten in the past."
Will Madigan be there?
"I don't know, but his top legal guy will be running the meeting," Miller said. "That's significant."
You know, it must be because when I looked at the "Last Supper" again, there was Madigan's guy whispering in someone's ear.
Labels:
HB 750,
Income redistribution,
No Child Left Behind
Sunday, March 18, 2007
Ten ways to cut school spending
The following letter to the editor appeared in the Daily Herald.
Daily Herald Letter to the editor -- 3/18/07
Ten ways to cut school spending
Gov. Rod Blagojevich wants a new “value-added” tax on Illinois businesses to support more education spending.
Before I move my engineering business to another state to escape this onerous tax, here’s my “Top 10 Ways To Cut Education Spending.”
1) Eliminate teachers’ pensions. Pensions don’t exist in the private sector. Why can’t teachers have a 401(k) or Keough plan?
2) Cut teachers’ salaries. A friend just retired after serving as the “weight room” teacher for a local high school. He was nothing more than a glorified personal trainer, but with his Ph.D. in education, he earned more than $110,000 per year.
3) Raise the retirement age to 65. That same friend worked 30 years and retired with an annual pension of about $80,000 per year plus cost of living adjustments. The pension is guaranteed until the day he dies, and he’s only 56.
4) Stop the “advanced degree” scam. The main reason teachers get advanced degrees is to get a salary increase. If you were qualified to teach with only a bachelor’s degree, you don’t need an advanced degree.
5) Eliminate AP classes. If you want college credit, go to college.
6) Don’t start all-day kindergarten. We already have all day kindergarten. It’s called first grade.
7) Increase class size. When I was in school, the average class size was 30-35 pupils.
8) Eliminate teacher’s aides. Why do teachers need aides? You’re the teacher, so teach!
9) Cut health care expenditures. In the private sector, employees pay a greater share of their health insurance and so should teachers.
10) Take computers out of grade school. Just like calculators did not improve math competence, computers do not improve penmanship, language or writing skills. Software spell- and grammar-check features do not teach anything.
At the last Democratic National Convention, one-third of the delegates were teachers. The governor’s plan is nothing more than a political payoff to the teachers union — his biggest constituency — and we shouldn’t have to pay for his votes. And you wonder why Democrats keep asking for more education spending.
John Schadl
Arlington Heights
Daily Herald Letter to the editor -- 3/18/07
Ten ways to cut school spending
Gov. Rod Blagojevich wants a new “value-added” tax on Illinois businesses to support more education spending.
Before I move my engineering business to another state to escape this onerous tax, here’s my “Top 10 Ways To Cut Education Spending.”
1) Eliminate teachers’ pensions. Pensions don’t exist in the private sector. Why can’t teachers have a 401(k) or Keough plan?
2) Cut teachers’ salaries. A friend just retired after serving as the “weight room” teacher for a local high school. He was nothing more than a glorified personal trainer, but with his Ph.D. in education, he earned more than $110,000 per year.
3) Raise the retirement age to 65. That same friend worked 30 years and retired with an annual pension of about $80,000 per year plus cost of living adjustments. The pension is guaranteed until the day he dies, and he’s only 56.
4) Stop the “advanced degree” scam. The main reason teachers get advanced degrees is to get a salary increase. If you were qualified to teach with only a bachelor’s degree, you don’t need an advanced degree.
5) Eliminate AP classes. If you want college credit, go to college.
6) Don’t start all-day kindergarten. We already have all day kindergarten. It’s called first grade.
7) Increase class size. When I was in school, the average class size was 30-35 pupils.
8) Eliminate teacher’s aides. Why do teachers need aides? You’re the teacher, so teach!
9) Cut health care expenditures. In the private sector, employees pay a greater share of their health insurance and so should teachers.
10) Take computers out of grade school. Just like calculators did not improve math competence, computers do not improve penmanship, language or writing skills. Software spell- and grammar-check features do not teach anything.
At the last Democratic National Convention, one-third of the delegates were teachers. The governor’s plan is nothing more than a political payoff to the teachers union — his biggest constituency — and we shouldn’t have to pay for his votes. And you wonder why Democrats keep asking for more education spending.
John Schadl
Arlington Heights
Fight or pack up
The following letter to the editor appeared in the Northwest Herald.
Fight or pack up
To the Editor:
Gov. Rod Blagojevich is pushing the largest expansion of state government in Illinois history.
And he’s doing it in classic Blagojevich style, with vague bold strokes. He has no detailed plan for this massive proposal, just a partisan speech, a news release, and a new straw man, the Illinois businessman.
The gloves are off now, it’s his second term. His budget address sounds like a declaration of war against Illinois businesses. Blagojevich wants free health care, piles of money for overdue bills, and another $10 billion for education. And instead of real working people (i.e. union labor), he’s going to make you pay for it.
But Blagojevich isn’t raising taxes, he’s just expanding them – expanding them to everything you do with a gross receipts tax. The average voter won’t understand economic ramifications of the all-inclusive taxes and the multiplier effect, but should understand that Illinois is the eighth-worst state to do business in, and it’s about to get much worse. The most aggravating part of all this is putting more good money down that bottomless pit in Springfield.
This is a fight-or-flight situation. Stop Blagojevich or start researching new state residency requirements.
Drew Veeneman
Elgin
Gross receipts taxes are extremely destructive for a state's economy for more information we refer you to the The really gross ‘Gross Receipts really Tax’ article by the Illinois Policy Institute.
Fight or pack up
To the Editor:
Gov. Rod Blagojevich is pushing the largest expansion of state government in Illinois history.
And he’s doing it in classic Blagojevich style, with vague bold strokes. He has no detailed plan for this massive proposal, just a partisan speech, a news release, and a new straw man, the Illinois businessman.
The gloves are off now, it’s his second term. His budget address sounds like a declaration of war against Illinois businesses. Blagojevich wants free health care, piles of money for overdue bills, and another $10 billion for education. And instead of real working people (i.e. union labor), he’s going to make you pay for it.
But Blagojevich isn’t raising taxes, he’s just expanding them – expanding them to everything you do with a gross receipts tax. The average voter won’t understand economic ramifications of the all-inclusive taxes and the multiplier effect, but should understand that Illinois is the eighth-worst state to do business in, and it’s about to get much worse. The most aggravating part of all this is putting more good money down that bottomless pit in Springfield.
This is a fight-or-flight situation. Stop Blagojevich or start researching new state residency requirements.
Drew Veeneman
Elgin
Gross receipts taxes are extremely destructive for a state's economy for more information we refer you to the The really gross ‘Gross Receipts really Tax’ article by the Illinois Policy Institute.
Saturday, March 17, 2007
How Taxes Work
The following piece is self explanitory and came from the Maine Public Policy Institute.
How Taxes Work
by T. Davies
This is a VERY simple way to understand the tax laws. Read on - it does make you think!! Let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner.
The bill for al ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men -- the poorest -- would pay nothing; the fifth would pay $1, the sixth would pay $3, the seventh $7, the eighth $12, the ninth $18, and the tenth man -- the richest -- would pay $59. That's what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement -- until one day, the owner threw them a curve (in tax language, a tax cut). "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." So now dinner for the ten only cost $80. The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still eat for free. But what about the other six -- the paying customers?
How could they divvy up the $20 windfall so that everyone would get his fair share? The six men realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would end up being PAID to eat their meal. So the restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of his earlier $59. Each of the six was better off than before. And the first four continued to eat for free. But once outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20," declared the sixth man, but he (pointing to the tenth man), got $7!" "Yeah, that's right," exclaimed the fifth man, "I only saved a dollar, too. It's unfair that he got seven times more than me!" "That's true," shouted the seventh man.
"Why should he get $7 back when I got only $2? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth man and beat him up. The next night the tenth man didn't show up for dinner. So the nine sat down and ate without him. But when it came time to pay the bill, the nine men discovered -- a little late -- what was very important. They were FIFTY-TWO DOLLARS short of paying the bill! Imagine that! And that, boys and girls, journalists and college instructors, is how the tax system works. The people who pay the highest taxes get the most benefit from a tax reduction.
Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore. Where would that leave the rest? Unfortunately, most taxing authorities anywhere cannot seem to grasp this rather straight-forward logic!
How Taxes Work
by T. Davies
This is a VERY simple way to understand the tax laws. Read on - it does make you think!! Let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner.
The bill for al ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men -- the poorest -- would pay nothing; the fifth would pay $1, the sixth would pay $3, the seventh $7, the eighth $12, the ninth $18, and the tenth man -- the richest -- would pay $59. That's what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement -- until one day, the owner threw them a curve (in tax language, a tax cut). "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." So now dinner for the ten only cost $80. The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still eat for free. But what about the other six -- the paying customers?
How could they divvy up the $20 windfall so that everyone would get his fair share? The six men realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would end up being PAID to eat their meal. So the restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of his earlier $59. Each of the six was better off than before. And the first four continued to eat for free. But once outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20," declared the sixth man, but he (pointing to the tenth man), got $7!" "Yeah, that's right," exclaimed the fifth man, "I only saved a dollar, too. It's unfair that he got seven times more than me!" "That's true," shouted the seventh man.
"Why should he get $7 back when I got only $2? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth man and beat him up. The next night the tenth man didn't show up for dinner. So the nine sat down and ate without him. But when it came time to pay the bill, the nine men discovered -- a little late -- what was very important. They were FIFTY-TWO DOLLARS short of paying the bill! Imagine that! And that, boys and girls, journalists and college instructors, is how the tax system works. The people who pay the highest taxes get the most benefit from a tax reduction.
Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore. Where would that leave the rest? Unfortunately, most taxing authorities anywhere cannot seem to grasp this rather straight-forward logic!
Wednesday, March 14, 2007
Improving public schools
The following piece appeared in the Washington Times. No further commentary is needed.
Improving public schools
TODAY'S COLUMNIST
By David White
March 12, 2007
Steve Jobs, the co-founder and CEO of Apple, just lost any friends he had in the executive offices of the nation's teacher unions. Speaking recently at an education reform conference in Austin, Mr. Jobs blamed the unionization of America's public schools for much of what's wrong with today's public education system.
"What kind of person could you get to run a small business," he asked, comparing school principals to CEOs, "if you told them that when they came in they couldn't get rid of people that they thought weren't any good?" Unfortunately for America's schoolchildren, Mr. Jobs' criticisms are just scraping the surface.
Across America, there are more than 3 million public-school teachers. Organized through the National Education Association and the American Federation of Teachers -- the nation's two largest labor unions -- they wield enormous political influence and aren't afraid to use it. Much of this power comes through the dues that union leaders deduct from teachers' paychecks, supposedly to improve the working conditions of the teachers they represent. In California, for example, the state teachers' association represents 340,000 workers and collects more than $150 million each year in mandatory dues.
But in reality, the unions often promote an agenda that doesn't reflect the interests of their members. Performance-based pay for teachers is a prime example of how the unions work directly against their members' own best interests. In inner-city schools, the best teachers often leave after just a year or two for better salaries, nicer neighborhoods and less stressful work. Merit pay, however, makes it possible for these schools to retain effective teachers by paying them more. But the unions usually fight tooth and nail against such measures.
By standing against proven reform, the union agenda also harms the nation's schoolchildren.
Using member dues, unions regularly lobby against efforts to allow students trapped in underperforming schools to transfer to better schools by using vouchers. Never mind the fact that study after study has demonstrated that voucher systems boost student achievement in both public and private schools, regardless of socioeconomic background.
Further, when using their collective-bargaining powers, teacher-union leaders often rely on tough, confrontational tactics to win concessions from local school boards. Across the country, they've negotiated generous taxpayer subsidies and other unfair benefits.
In cities like Los Angeles, New York, Chicago and Philadelphia, a teacher who decides against joining the local union is required by contract to pay a fee to that union.
Most large school districts also offer paid leave for teachers to conduct union business. For example, San Diego's contract gives union members an "unlimited number of workdays per fiscal year of leave to use for association business." And in Providence, teachers selected by their union to serve as delegates to any AFL-CIO meeting are eligible for five paid days of leave. This places a double cost burden on schools. In addition to paying the absent teachers their full salary, many districts are also responsible for finding and paying substitute teachers.
Shockingly, in some cities, teachers on paid leave can be hired as substitute teachers without terminating their leave. In other words, a teacher could take time off but continue working as a substitute teacher collecting two paychecks, at the same time, from the same school. In many districts, schools must give unions free use of equipment like copy machines, telephones and computers. Some districts are even contractually obligated to provide union presidents with free office space and time at faculty meetings.
Further, if city and state governments simply eliminated the taxpayer subsidies that are being used to support union activities each year, they could channel that money back to providing a high-quality education to every student, using the funds to raise teacher pay to attract the best and brightest.
Steve Jobs has started an important conversation about the impact of America's teachers unions. Those who seek to improve the quality of our nation's public schools -- parents, teachers and local school-board members -- would be wise to take part.
David White is an adjunct scholar at the Lexington Institute.
Improving public schools
TODAY'S COLUMNIST
By David White
March 12, 2007
Steve Jobs, the co-founder and CEO of Apple, just lost any friends he had in the executive offices of the nation's teacher unions. Speaking recently at an education reform conference in Austin, Mr. Jobs blamed the unionization of America's public schools for much of what's wrong with today's public education system.
"What kind of person could you get to run a small business," he asked, comparing school principals to CEOs, "if you told them that when they came in they couldn't get rid of people that they thought weren't any good?" Unfortunately for America's schoolchildren, Mr. Jobs' criticisms are just scraping the surface.
Across America, there are more than 3 million public-school teachers. Organized through the National Education Association and the American Federation of Teachers -- the nation's two largest labor unions -- they wield enormous political influence and aren't afraid to use it. Much of this power comes through the dues that union leaders deduct from teachers' paychecks, supposedly to improve the working conditions of the teachers they represent. In California, for example, the state teachers' association represents 340,000 workers and collects more than $150 million each year in mandatory dues.
But in reality, the unions often promote an agenda that doesn't reflect the interests of their members. Performance-based pay for teachers is a prime example of how the unions work directly against their members' own best interests. In inner-city schools, the best teachers often leave after just a year or two for better salaries, nicer neighborhoods and less stressful work. Merit pay, however, makes it possible for these schools to retain effective teachers by paying them more. But the unions usually fight tooth and nail against such measures.
By standing against proven reform, the union agenda also harms the nation's schoolchildren.
Using member dues, unions regularly lobby against efforts to allow students trapped in underperforming schools to transfer to better schools by using vouchers. Never mind the fact that study after study has demonstrated that voucher systems boost student achievement in both public and private schools, regardless of socioeconomic background.
Further, when using their collective-bargaining powers, teacher-union leaders often rely on tough, confrontational tactics to win concessions from local school boards. Across the country, they've negotiated generous taxpayer subsidies and other unfair benefits.
In cities like Los Angeles, New York, Chicago and Philadelphia, a teacher who decides against joining the local union is required by contract to pay a fee to that union.
Most large school districts also offer paid leave for teachers to conduct union business. For example, San Diego's contract gives union members an "unlimited number of workdays per fiscal year of leave to use for association business." And in Providence, teachers selected by their union to serve as delegates to any AFL-CIO meeting are eligible for five paid days of leave. This places a double cost burden on schools. In addition to paying the absent teachers their full salary, many districts are also responsible for finding and paying substitute teachers.
Shockingly, in some cities, teachers on paid leave can be hired as substitute teachers without terminating their leave. In other words, a teacher could take time off but continue working as a substitute teacher collecting two paychecks, at the same time, from the same school. In many districts, schools must give unions free use of equipment like copy machines, telephones and computers. Some districts are even contractually obligated to provide union presidents with free office space and time at faculty meetings.
Further, if city and state governments simply eliminated the taxpayer subsidies that are being used to support union activities each year, they could channel that money back to providing a high-quality education to every student, using the funds to raise teacher pay to attract the best and brightest.
Steve Jobs has started an important conversation about the impact of America's teachers unions. Those who seek to improve the quality of our nation's public schools -- parents, teachers and local school-board members -- would be wise to take part.
David White is an adjunct scholar at the Lexington Institute.
Tuesday, March 13, 2007
Teachers Unions Behind Group To Take Away School Choice From Utahns.
If you are not a regular reader of the Education Intelligence Agency you should be. This is some of the great stuff you are missing.
Utahns for Public Schools = NEA UniServ. With the passage of a statewide voucher program into law in Utah, opponents have decided to gather signatures for a referendum that would first suspend, then overturn the law. The main group is working under the banner Utahns for Public Schools. An alert EIA reader noticed something unusual about the organization. Upon deeper investigation, the roots of Utahns for Public Schools are beginning to show.
On its website, the coalition describes itself as "a group of parents, teachers, and others interested in the quality of education provided to Utah children." This sounds a lot better to the general public and the press than "a group of employees and officers of the Utah Education Association and the Utah PTA."
The organization lists 128 names as county contacts for people interested in signing or distributing the petition against the voucher law. The 128 names are of 50 individuals, almost all of whom can be identified by very specific job titles.
Of the 50 people, 13 are UniServ directors employed by the Utah Education Association, whose pay is subsidized by grants from the National Education Association. Another 12 contacts are elected officers or representatives of the Utah Education Association and its local affiliates, and another 14 contacts are regional directors of the Utah PTA. The jobs of the other 11 contacts could not be immediately determined.
Quote of the Week. "A 4% increase in teachers across the state is not particularly large, even amidst declining student enrollment." – Vermont-NEA Angelo J. Dorta. (March 2007 Vermont-NEA Today)
The Michigan Teacher Glut
"There are thousands and thousands of teachers without job opportunities in Michigan," says Michigan State Superintendent of Public Instruction Mike Flanagan.
Except when it comes to applying for federal supplemental loans for critical teacher shortage areas. Then the state of Michigan has a long, long list of openings for teachers.
Or is it indeed a glut? They are turning away candidates at the teacher colleges in Ontario, Canada, and part of the reason is the oversupply of teachers from "border schools" - that is, teacher colleges in Buffalo and other American cities.
"It's simple supply and demand," said a Canadian official.
Not so simple for some.
For more great information from the Education Intelligence Agency click here.
Utahns for Public Schools = NEA UniServ. With the passage of a statewide voucher program into law in Utah, opponents have decided to gather signatures for a referendum that would first suspend, then overturn the law. The main group is working under the banner Utahns for Public Schools. An alert EIA reader noticed something unusual about the organization. Upon deeper investigation, the roots of Utahns for Public Schools are beginning to show.
On its website, the coalition describes itself as "a group of parents, teachers, and others interested in the quality of education provided to Utah children." This sounds a lot better to the general public and the press than "a group of employees and officers of the Utah Education Association and the Utah PTA."
The organization lists 128 names as county contacts for people interested in signing or distributing the petition against the voucher law. The 128 names are of 50 individuals, almost all of whom can be identified by very specific job titles.
Of the 50 people, 13 are UniServ directors employed by the Utah Education Association, whose pay is subsidized by grants from the National Education Association. Another 12 contacts are elected officers or representatives of the Utah Education Association and its local affiliates, and another 14 contacts are regional directors of the Utah PTA. The jobs of the other 11 contacts could not be immediately determined.
Quote of the Week. "A 4% increase in teachers across the state is not particularly large, even amidst declining student enrollment." – Vermont-NEA Angelo J. Dorta. (March 2007 Vermont-NEA Today)
The Michigan Teacher Glut
"There are thousands and thousands of teachers without job opportunities in Michigan," says Michigan State Superintendent of Public Instruction Mike Flanagan.
Except when it comes to applying for federal supplemental loans for critical teacher shortage areas. Then the state of Michigan has a long, long list of openings for teachers.
Or is it indeed a glut? They are turning away candidates at the teacher colleges in Ontario, Canada, and part of the reason is the oversupply of teachers from "border schools" - that is, teacher colleges in Buffalo and other American cities.
"It's simple supply and demand," said a Canadian official.
Not so simple for some.
For more great information from the Education Intelligence Agency click here.
Labels:
Educrats gone bad,
School Choice,
Teachers' unions
Monday, March 12, 2007
Virtual Schools: Parents over Prejudice
The following piece is from the Spontaneous Solutions A publication of the Illinois Policy Institute posted by Collin Hitt. Please be sure to contact your legislator at tell them to vote no on House Bill 232.
Virtual Schools: Parents over Prejudice
posted by Collin Hitt
The following post discusses 'virtual schools.' For more on virtual schools, and on the Chicago Virtual Charter School, go here.
I have been closely following a particular piece of legislation, House Bill 232, commonly called a 'virtual school ban.' Alexander Russo picked up on my edspresso post on the subject last week, and did a good job discussing the controversy that surrounds virtual schools.
In Illinois, both the Chicago Teachers Union and Representative Monique Davis have taken measures to close Illinois' lone virtual charter school. The Chicago Teachers Union's motives are obvious. Davis' are somewhat more...complex.
During a meeting of the House Elementary and Secondary Education Committee last month, while her virtual school ban was being debated, Davis stated, "Tomorrow, who knows what somebody's bright idea may be, to pick people, who...Some people give less than a darn whether they get educated or not. And I am going to tell you, I am not going to sit by and have you miseducate a number of people to fill up the prisons in the state of Illinois."
Davis' comments were directed at the staff, parents and students of the Chicago Virtual Charter School attending the committee meeting on February 22. I was present at that meeting, and able to witness the Representative's behavior first-hand. I believe her comments were made in very poor taste. But that's not the point. In her diatribe against parents, she spoke to the central issue of school choice.
And so did Lilly Henton, the aunt of a CVCS student and of the 'you' who Davis was talking to: "This is all about integrity - the integrity of the parent, in their home. You asked us to be more involved with our children and then when we try to be we get all kinds of heat and questions about our integrity..."
Ms. Henton had, at the time, been asked to prove that students were doing their own homework. She continued thus: "I am not helping Angelie by doing her homework...
"How am I going to teach Angelie about how to succeed, if I'm doing her homework? I am on there with her, to help her, not do it for her. That's not going to make her a better citizen. That's not going to make her a better student. That will not help my niece..."
The decision to chaperon a child's education, rather than send her to school all day, is not one that a parent takes lightly. A virtual classroom is not the best environment for every child. Parents know this. But a CPS classroom is not the best environment for every child, either, to say the least.
I have visited the CVCS campus. I have met with parents. I have written and published on the issue, but my familiarity with the school pales in comparison to that of the hundreds of parents who have put their children in - and kept them in - the Chicago Virtual Charter School.
So, I have to wonder, who are the parents to whom Ms. Davis was referring? Those who don't give a darn about education? Surely, they are out there. But they aren't touring virtual schools. They aren't staying home with their children, and attending training seminars on how to use new software. Which begs the question, are lawmakers like Davis so traumatized by the poor choices of a select few that she is willing to stigmatize her entire electorate?
The fact is, the only way to help the children of 'those parents' is to improve their public schools. And those schools will only be improved by the competive pressures that mount once parents are offered a diverse array of unique schools from which they can choose.
The Chicago Virtual Charter School is certainly a unique school. If the school is allowed to remain open, time will tell and parents will decide if they want to send their children there. I suspect that they will, as long as they have the opportunity to do so.
To read more of Collin Hitt's articles go to the Spontaneous Solutions website. Be sure to visit the site so you can visit the links in his above post.
Virtual Schools: Parents over Prejudice
posted by Collin Hitt
The following post discusses 'virtual schools.' For more on virtual schools, and on the Chicago Virtual Charter School, go here.
I have been closely following a particular piece of legislation, House Bill 232, commonly called a 'virtual school ban.' Alexander Russo picked up on my edspresso post on the subject last week, and did a good job discussing the controversy that surrounds virtual schools.
In Illinois, both the Chicago Teachers Union and Representative Monique Davis have taken measures to close Illinois' lone virtual charter school. The Chicago Teachers Union's motives are obvious. Davis' are somewhat more...complex.
During a meeting of the House Elementary and Secondary Education Committee last month, while her virtual school ban was being debated, Davis stated, "Tomorrow, who knows what somebody's bright idea may be, to pick people, who...Some people give less than a darn whether they get educated or not. And I am going to tell you, I am not going to sit by and have you miseducate a number of people to fill up the prisons in the state of Illinois."
Davis' comments were directed at the staff, parents and students of the Chicago Virtual Charter School attending the committee meeting on February 22. I was present at that meeting, and able to witness the Representative's behavior first-hand. I believe her comments were made in very poor taste. But that's not the point. In her diatribe against parents, she spoke to the central issue of school choice.
And so did Lilly Henton, the aunt of a CVCS student and of the 'you' who Davis was talking to: "This is all about integrity - the integrity of the parent, in their home. You asked us to be more involved with our children and then when we try to be we get all kinds of heat and questions about our integrity..."
Ms. Henton had, at the time, been asked to prove that students were doing their own homework. She continued thus: "I am not helping Angelie by doing her homework...
"How am I going to teach Angelie about how to succeed, if I'm doing her homework? I am on there with her, to help her, not do it for her. That's not going to make her a better citizen. That's not going to make her a better student. That will not help my niece..."
The decision to chaperon a child's education, rather than send her to school all day, is not one that a parent takes lightly. A virtual classroom is not the best environment for every child. Parents know this. But a CPS classroom is not the best environment for every child, either, to say the least.
I have visited the CVCS campus. I have met with parents. I have written and published on the issue, but my familiarity with the school pales in comparison to that of the hundreds of parents who have put their children in - and kept them in - the Chicago Virtual Charter School.
So, I have to wonder, who are the parents to whom Ms. Davis was referring? Those who don't give a darn about education? Surely, they are out there. But they aren't touring virtual schools. They aren't staying home with their children, and attending training seminars on how to use new software. Which begs the question, are lawmakers like Davis so traumatized by the poor choices of a select few that she is willing to stigmatize her entire electorate?
The fact is, the only way to help the children of 'those parents' is to improve their public schools. And those schools will only be improved by the competive pressures that mount once parents are offered a diverse array of unique schools from which they can choose.
The Chicago Virtual Charter School is certainly a unique school. If the school is allowed to remain open, time will tell and parents will decide if they want to send their children there. I suspect that they will, as long as they have the opportunity to do so.
To read more of Collin Hitt's articles go to the Spontaneous Solutions website. Be sure to visit the site so you can visit the links in his above post.
Saturday, March 10, 2007
Tax Credits For All
Collin Hitt of the Illinois Policy Institute has a great piece on Spontaneous Solutions a Publication of the Illinois Policy Institute
called Tax Credits For All.
Tax Credits For All
posted by Collin Hitt
The Illinois Policy Institute has partnered with the Illinois chapter of Americans for Prosperity to host a series of education reform forums. The most recent event was in Quincy, and the Herald Whig did a good job covering it.
I've spoken at both events, detailing the new Institute proposal, an "Earned Education Tax Credit." The idea is simple: a $4,000 refundable tuition tax credit (think rebate, or voucher) for every student under the age of twenty three. Among other things, the tax credit would count against incurred tuition costs of preschool, private school and college.
I'm going to be writing and speaking on the topic a lot in the coming year. I'd like to have your thoughts on it, sooner rather than later. So, Conservatives, what do you think of the state underwriting the costs of preschool and college? Liberals, can you reasonably defend a preschool and college subsidy that doesn't also apply to K-12 education - the area where it is needed most?
To read more posts on the BLOG Spontaneous Solutions a Publication of the Illinois Policy Institute click here.
called Tax Credits For All.
Tax Credits For All
posted by Collin Hitt
The Illinois Policy Institute has partnered with the Illinois chapter of Americans for Prosperity to host a series of education reform forums. The most recent event was in Quincy, and the Herald Whig did a good job covering it.
I've spoken at both events, detailing the new Institute proposal, an "Earned Education Tax Credit." The idea is simple: a $4,000 refundable tuition tax credit (think rebate, or voucher) for every student under the age of twenty three. Among other things, the tax credit would count against incurred tuition costs of preschool, private school and college.
I'm going to be writing and speaking on the topic a lot in the coming year. I'd like to have your thoughts on it, sooner rather than later. So, Conservatives, what do you think of the state underwriting the costs of preschool and college? Liberals, can you reasonably defend a preschool and college subsidy that doesn't also apply to K-12 education - the area where it is needed most?
To read more posts on the BLOG Spontaneous Solutions a Publication of the Illinois Policy Institute click here.
Friday, March 09, 2007
Houston Teachers Asked to Return Bonuses After School District Overpayed Them
The following story appeared on Foxnews.com
Houston Teachers Asked to Return Bonuses After School District Overpayed Them
Friday , March 09, 2007
The school district that runs the nation's largest merit pay program gave oversized bonuses to nearly 100 teachers and is asking them to give it back. The president of Houston's largest teachers' union is telling members not to return the overpayments, which range from $62.50 to $2,790.
A total of almost $75,000 was overpaid because a computer program mistakenly calculated the bonuses of part-time personnel as if they were full-time employees, according to the Houston Independent School District. Less than 1 percent of teachers were affected, the district said.
Gayle Fallon, president of the Houston Federation of Teachers, said the district can't force the 99 teachers to sign forms authorizing it to deduct the money from their paychecks, and promised legal action if it attempts to do so.
"If it's the district's error, then the district should bear the loss," she said.
District spokesman Terry Abbott, however, said the money must be repaid.
The union opposes the merit system unanimously approved by the school board last year. The district doled out $14 million to almost 8,000 teachers two months ago, but distributed another $1 million after officials realized several hundred teachers had been overlooked.
Salaries for full-time teachers in the district range from about $40,000 to nearly $68,000.
Raise your hand if you think that the school should underpay the next paycheck. Do you think the union will just sit back and say it was an error you do not have to pay us more? When will the greed of the unions and teachers end?
Gayle Fallon, president of the Houston Federation of Teachers said "If it's the district's error, then the district should bear the loss." Nice job screwing the taxpayers Gayle.
Houston Teachers Asked to Return Bonuses After School District Overpayed Them
Friday , March 09, 2007
The school district that runs the nation's largest merit pay program gave oversized bonuses to nearly 100 teachers and is asking them to give it back. The president of Houston's largest teachers' union is telling members not to return the overpayments, which range from $62.50 to $2,790.
A total of almost $75,000 was overpaid because a computer program mistakenly calculated the bonuses of part-time personnel as if they were full-time employees, according to the Houston Independent School District. Less than 1 percent of teachers were affected, the district said.
Gayle Fallon, president of the Houston Federation of Teachers, said the district can't force the 99 teachers to sign forms authorizing it to deduct the money from their paychecks, and promised legal action if it attempts to do so.
"If it's the district's error, then the district should bear the loss," she said.
District spokesman Terry Abbott, however, said the money must be repaid.
The union opposes the merit system unanimously approved by the school board last year. The district doled out $14 million to almost 8,000 teachers two months ago, but distributed another $1 million after officials realized several hundred teachers had been overlooked.
Salaries for full-time teachers in the district range from about $40,000 to nearly $68,000.
Raise your hand if you think that the school should underpay the next paycheck. Do you think the union will just sit back and say it was an error you do not have to pay us more? When will the greed of the unions and teachers end?
Gayle Fallon, president of the Houston Federation of Teachers said "If it's the district's error, then the district should bear the loss." Nice job screwing the taxpayers Gayle.
Tuesday, March 06, 2007
Fixing No Child Left Behind
The following piece appeared in the Wall Street Journal.
Fixing No Child Left Behind
WSJ Editorial: March 6, 2007; Page A18
The No Child Left Behind education law is up for renewal this year, and an independent commission recently released some recommendations for improvement. Not to be outdone, the White House has also put out its own "blueprint" for strengthening the law. The legislation could use a serious reworking, but any fixes won't go far enough unless they do more to expand public and private school choice.
NCLB's political bargain was that, in return for a big increase in federal education spending, the government would hold schools more accountable for results in the classroom. Six years later, taxpayers have done their part. Since 2001 overall NCLB funding has risen by 34%, and federal spending on Title I schools serving low-income students has gone up 45%.
NCLB and the Bush Administration also deserve some credit for shifting the terms of the education debate. The law has focused attention on learning gaps between students of different races and economic backgrounds that persist even at some of the nation's best public schools. The law's requirement that schools test annually in grades 3-8, and report both averages and the results of racial and economic subgroups, has made it much more difficult for administrators to hide the fact that all students aren't learning.
NCLB has been much less successful in bringing pressure to bear on states and school districts that fail to implement the law. That's especially true of the school choice provisions, which are the best way to get the attention of the education bureaucracy. Unfortunately, the Bush Administration abandoned its voucher proposal very early in the 2001 negotiations. What passed was a watered-down version of public school choice, which in theory allows a child in a failing school to transfer to a better public school or get free after-school tutoring from private providers.
* * *
In practice, however, the Education Department has too often allowed school districts to skirt even these limited choice provisions, either by granting exemptions or looking the other way. It took a formal complaint from the Alliance for School Choice before Secretary Margaret Spellings did anything about Los Angeles failing to notify parents of their transfer rights as required under the law. So far she's sent the district a sternly worded letter.
And the Chicago public school system, which has been repeatedly labeled "in need of improvement" and thus should be banned under NCLB from offering its own after-school tutoring, has been given a waiver to do exactly that. So while it would be nice if the Bush Administration enforced its own law, the larger lesson is that school choice "lite" turns out to be no substitute for the real thing.
To be fair, some of these problems are structural. Even if more school districts were implementing NCLB's transfer provisions, there often isn't enough room in decent schools to handle all the children who qualify for a transfer. And many of the private after-school tutoring services allowed under the law are simply employing the same teachers from the local public school system who are failing the kids during regular school hours.
There's also the problem of allowing each state to develop its own standards and tests to determine proficiency in reading and math. The Administration was deferring to federalist principles on an issue that's traditionally been handled at the state and local level. But the reality has been a "race to the bottom," with some states constructing easy tests to avoid federal penalties.
"If you're in Oklahoma right now, you're told that 95% or 96% of your schools are doing fine," says Frederick Hess, who follows education at the American Enterprise Institute. "And if you're in Massachusetts, you're told that 40% to 45% of your schools are doing fine. But if you look at the actual achievement data, it suggests that kids in Massachusetts are doing far better than kids in Oklahoma."
Some education reformers are now calling for "national standards" to address this problem. But we tried national history standards in the 1990s, and the politicized results weren't pretty -- unless, of course, you favor a history curriculum that downgrades the Founding Fathers while playing up the working experiences of midwives in 19th-century Nebraska.
Rather than force a national test on states, the best compromise here may be to require them to benchmark their own assessments against the National Assessment of Education Progress (NAEP), a federal standardized test that already exists and that most educators agree is fairly rigorous. "So people at least have a common metric by which to judge the rigor of the state assessment," says Mr. Hess.
It's worth considering, and we wish we could say the same about the Commission on No Child Left Behind, which was funded by private foundations and co-chaired by former Governors Tommy Thompson and Roy Barnes. But the panel's report is more interested in tinkering than fundamental change, and its 75 recommendations don't include the one that would make the biggest difference: school vouchers.
* * *
The Administration's proposed fixes are bolder and potentially more consequential. President Bush's 2008 budget sets aside $250 million for "promise scholarships" for low-income students in schools that have consistently underperformed for five years. The scholarships would average about $4,000 and "the money would follow the child to the public, charter or private school of his or her choice."
Them's fightin' words for the Democrats who now control Congress. But Mr. Bush has the bully pulpit, as well as the moral authority from five years of evidence on failing schools. We hope his Administration uses them to explain why real school choice is essential to any reform in K-12 education.
Fixing No Child Left Behind
WSJ Editorial: March 6, 2007; Page A18
The No Child Left Behind education law is up for renewal this year, and an independent commission recently released some recommendations for improvement. Not to be outdone, the White House has also put out its own "blueprint" for strengthening the law. The legislation could use a serious reworking, but any fixes won't go far enough unless they do more to expand public and private school choice.
NCLB's political bargain was that, in return for a big increase in federal education spending, the government would hold schools more accountable for results in the classroom. Six years later, taxpayers have done their part. Since 2001 overall NCLB funding has risen by 34%, and federal spending on Title I schools serving low-income students has gone up 45%.
NCLB and the Bush Administration also deserve some credit for shifting the terms of the education debate. The law has focused attention on learning gaps between students of different races and economic backgrounds that persist even at some of the nation's best public schools. The law's requirement that schools test annually in grades 3-8, and report both averages and the results of racial and economic subgroups, has made it much more difficult for administrators to hide the fact that all students aren't learning.
NCLB has been much less successful in bringing pressure to bear on states and school districts that fail to implement the law. That's especially true of the school choice provisions, which are the best way to get the attention of the education bureaucracy. Unfortunately, the Bush Administration abandoned its voucher proposal very early in the 2001 negotiations. What passed was a watered-down version of public school choice, which in theory allows a child in a failing school to transfer to a better public school or get free after-school tutoring from private providers.
* * *
In practice, however, the Education Department has too often allowed school districts to skirt even these limited choice provisions, either by granting exemptions or looking the other way. It took a formal complaint from the Alliance for School Choice before Secretary Margaret Spellings did anything about Los Angeles failing to notify parents of their transfer rights as required under the law. So far she's sent the district a sternly worded letter.
And the Chicago public school system, which has been repeatedly labeled "in need of improvement" and thus should be banned under NCLB from offering its own after-school tutoring, has been given a waiver to do exactly that. So while it would be nice if the Bush Administration enforced its own law, the larger lesson is that school choice "lite" turns out to be no substitute for the real thing.
To be fair, some of these problems are structural. Even if more school districts were implementing NCLB's transfer provisions, there often isn't enough room in decent schools to handle all the children who qualify for a transfer. And many of the private after-school tutoring services allowed under the law are simply employing the same teachers from the local public school system who are failing the kids during regular school hours.
There's also the problem of allowing each state to develop its own standards and tests to determine proficiency in reading and math. The Administration was deferring to federalist principles on an issue that's traditionally been handled at the state and local level. But the reality has been a "race to the bottom," with some states constructing easy tests to avoid federal penalties.
"If you're in Oklahoma right now, you're told that 95% or 96% of your schools are doing fine," says Frederick Hess, who follows education at the American Enterprise Institute. "And if you're in Massachusetts, you're told that 40% to 45% of your schools are doing fine. But if you look at the actual achievement data, it suggests that kids in Massachusetts are doing far better than kids in Oklahoma."
Some education reformers are now calling for "national standards" to address this problem. But we tried national history standards in the 1990s, and the politicized results weren't pretty -- unless, of course, you favor a history curriculum that downgrades the Founding Fathers while playing up the working experiences of midwives in 19th-century Nebraska.
Rather than force a national test on states, the best compromise here may be to require them to benchmark their own assessments against the National Assessment of Education Progress (NAEP), a federal standardized test that already exists and that most educators agree is fairly rigorous. "So people at least have a common metric by which to judge the rigor of the state assessment," says Mr. Hess.
It's worth considering, and we wish we could say the same about the Commission on No Child Left Behind, which was funded by private foundations and co-chaired by former Governors Tommy Thompson and Roy Barnes. But the panel's report is more interested in tinkering than fundamental change, and its 75 recommendations don't include the one that would make the biggest difference: school vouchers.
* * *
The Administration's proposed fixes are bolder and potentially more consequential. President Bush's 2008 budget sets aside $250 million for "promise scholarships" for low-income students in schools that have consistently underperformed for five years. The scholarships would average about $4,000 and "the money would follow the child to the public, charter or private school of his or her choice."
Them's fightin' words for the Democrats who now control Congress. But Mr. Bush has the bully pulpit, as well as the moral authority from five years of evidence on failing schools. We hope his Administration uses them to explain why real school choice is essential to any reform in K-12 education.
Labels:
Legislation,
No Child Left Behind,
School Choice
Monday, March 05, 2007
Education Lags
The following editorial appeared in the Northwest Herald
No further comments are needed.
Education lags
Comments (2)
Most high school students still are not achieving proficiency in math and reading, according to the National Assessment of Educational Progress. Only 35 percent of high school seniors scored at or above the proficient level on the 2005 national reading test.
In math, the story is even more troubling: Just 23 percent reached proficiency, which indicates solid but not exceptional academic performance.
Since 1983, billions of dollars have been spent on state and federal school reform programs. Despite this massive investment, national tests show few signs of academic progress.
Clearly, it’s time to take reform in a different direction. It no longer makes sense to pour billions of dollars into an outdated bureaucratic model of public education. Top-down reforms that funnel money through the bureaucracy will never raise the schools above mediocrity.
In the next wave of education reform, money should flow from parents to the schools. Let the decisions of parents push schools toward excellence.
Lawmakers and business leaders need to stop wringing their hands and start pushing for reforms that will make a real difference.
Press-Register, Mobile, Ala.
No further comments are needed.
Education lags
Comments (2)
Most high school students still are not achieving proficiency in math and reading, according to the National Assessment of Educational Progress. Only 35 percent of high school seniors scored at or above the proficient level on the 2005 national reading test.
In math, the story is even more troubling: Just 23 percent reached proficiency, which indicates solid but not exceptional academic performance.
Since 1983, billions of dollars have been spent on state and federal school reform programs. Despite this massive investment, national tests show few signs of academic progress.
Clearly, it’s time to take reform in a different direction. It no longer makes sense to pour billions of dollars into an outdated bureaucratic model of public education. Top-down reforms that funnel money through the bureaucracy will never raise the schools above mediocrity.
In the next wave of education reform, money should flow from parents to the schools. Let the decisions of parents push schools toward excellence.
Lawmakers and business leaders need to stop wringing their hands and start pushing for reforms that will make a real difference.
Press-Register, Mobile, Ala.
Sunday, March 04, 2007
Neverending tax increases
This article appeared in the Kane County Chronicle. In a state that already can't afford to pay off its giveaways to special interest groups, the Governor wants universal health care and maintenance of the obscene state pension system. They can't print money, so either the overpaid state retirees must sacrifice from their multimillion dollar pensions (paid by private citizens who usually don't have pensions at all) or ordinary taxpayers must suffer. Sadly it seems our lawmakers have chosen the latter path. There are two ways to balance a budget, and its high time the state chooses spending cuts over higher taxes.
Neverending tax increases
To the Editor:
It’s only two cents a gallon.
That two cents increase will equate to $4.5 million a year according to Kane County board member Jan Carlson.
If that was the only increase we anticipate, that would be wonderful.
However, let’s talk about other things that are happening in Kane County. I’ll use myself as an example.
My 2005 real estate taxes bill had a 30 percent tax increase for Kane County, 45 percent increase for Kaneland School District 302, 31 percent increase for Black-berry Township Road District, 22 percent increase for Elburn Village, 28.6 percent increase for Waubonsee Community College, 55 percent increase for Elburn Fire District and 22.8 percent increase for Town and Country Library. I dread to see the increases for the 2006 tax bill.
The governor states that he wants billions more a year for universal health care.
Last week a coalition of business and labor groups called on the state to put $5 billion a year into transportation for five years.
Will Kane County see any of that money? So why the two cents?
Also, recently State Sen. James Meeks and the teachers union unveiled a modified version of the infamous Senate Bill 750, which not only will provide new education dollars and roll back property taxes but also will pump $3 billion into the states under-funded pension systems. Also, Gov. Blagojevich will propose a multibillion dollar “gross receipts tax.”
The tax would zap pretty much every transaction performed by businesses and provide billions of dollars (business groups say maybe as much as $9 billion) a year for state coffers.
I’m sure businesses are not going to pass that on to consumers, just like gas stations are going to eat the two-cent increase.
The county also wants to raise impact fees for new homes and businesses in Kane County.
Do you not think these increases are not going to be passed on to Kane County citizens? So, going back to the two cents, there is a lot more facing taxpayers in Kane County than ever before.
Kane County board chairperson Karen McConnaughy was quoted in October 2005 saying that 2006 tax cuts are part of a new culture at the county.
However, consultant fees alone grew by more than 50 percent last year, just to name one of the increases.
Now the board wants to add only two cents more in gas taxes. The board should be aware we are watching the voting of this board and how it effects our tax dollars.
I oppose any future tax increase and believe board members should remember that the chairman is opposed to increases also or is this just political puffery as they say in Springfield.
James MacRunnels
Elburn
Quote of the day.
"Collecting more taxes than is absolutely necessary is legalized robbery." Calvin Coolidge
Neverending tax increases
To the Editor:
It’s only two cents a gallon.
That two cents increase will equate to $4.5 million a year according to Kane County board member Jan Carlson.
If that was the only increase we anticipate, that would be wonderful.
However, let’s talk about other things that are happening in Kane County. I’ll use myself as an example.
My 2005 real estate taxes bill had a 30 percent tax increase for Kane County, 45 percent increase for Kaneland School District 302, 31 percent increase for Black-berry Township Road District, 22 percent increase for Elburn Village, 28.6 percent increase for Waubonsee Community College, 55 percent increase for Elburn Fire District and 22.8 percent increase for Town and Country Library. I dread to see the increases for the 2006 tax bill.
The governor states that he wants billions more a year for universal health care.
Last week a coalition of business and labor groups called on the state to put $5 billion a year into transportation for five years.
Will Kane County see any of that money? So why the two cents?
Also, recently State Sen. James Meeks and the teachers union unveiled a modified version of the infamous Senate Bill 750, which not only will provide new education dollars and roll back property taxes but also will pump $3 billion into the states under-funded pension systems. Also, Gov. Blagojevich will propose a multibillion dollar “gross receipts tax.”
The tax would zap pretty much every transaction performed by businesses and provide billions of dollars (business groups say maybe as much as $9 billion) a year for state coffers.
I’m sure businesses are not going to pass that on to consumers, just like gas stations are going to eat the two-cent increase.
The county also wants to raise impact fees for new homes and businesses in Kane County.
Do you not think these increases are not going to be passed on to Kane County citizens? So, going back to the two cents, there is a lot more facing taxpayers in Kane County than ever before.
Kane County board chairperson Karen McConnaughy was quoted in October 2005 saying that 2006 tax cuts are part of a new culture at the county.
However, consultant fees alone grew by more than 50 percent last year, just to name one of the increases.
Now the board wants to add only two cents more in gas taxes. The board should be aware we are watching the voting of this board and how it effects our tax dollars.
I oppose any future tax increase and believe board members should remember that the chairman is opposed to increases also or is this just political puffery as they say in Springfield.
James MacRunnels
Elburn
Quote of the day.
"Collecting more taxes than is absolutely necessary is legalized robbery." Calvin Coolidge
Saturday, March 03, 2007
“More and more, retirees are finding that it pays to have worked for the government instead of the private sector”
The following piece appeared in USA Today on February 21..
“More and more, retirees are finding that it pays to have worked for the government instead of the private sector”
This article mentions the City of Dover
By Dennis Cauchon
USA TODAY
Johnnie Nichols, a civilian Defense Department employee, contributes to a federal pension that will let him retire at age 56, after 32 years of service.
His wife, Kimberly, a math teacher at a private business college, has no pension after two decades of teaching and running a horse farm. Their marriage reflects the new world of retirement: government employees who have secure benefits and private workers who increasingly are on their own.
“If we were both in her shoes, we’d be in a world of hurt,” says Nichols, 45, an information technology manager in Middletown, Ind. “We wouldn’t be able to retire until age 67.”
As the first wave of 79 million baby boomers heads to retirement, the nation is dividing into two classes of workers: those who have government benefits and those who don’t. The gap is accelerating in every way: pensions, medical benefits, retirement ages.
Retired government workers are twice as likely to get a pension as their counterparts in the private sector, and the typical benefit is far more generous. The nation’s 6 million retired civil servants — teachers, police, administrators, laborers — received a median benefit of $17,640 in 2005, according to the Congressional Research Service. Eleven million private-sector retirees covered by traditional pensions got $7,692.
Governments’ generosity could have serious consequences for taxpayers and pensioners. Some states — including Illinois, Indiana, Michigan, New Jersey, Ohio and West Virginia — have troubled retirement systems that may require huge tax increases, spending cuts or even defaulting on promised benefits. The U.S. government has a bigger unfunded liability for military and civil servant retirement benefits ($4.7 trillion) than it does for Social Security ($4.6 trillion).
The pension gap will continue to widen because governments pump far more money into employee pensions than companies do. Civil servants earn an average of $12.38 an hour in benefits, about $5 an hour more than private-sector workers, according to the Bureau of Labor Statistics. The difference was just $2.70 an hour in 1995.
Pension promises have “gotten out of hand,” says Peter Hanson, 73, chairman of NAI James E. Hanson Inc., a real estate firm in Hackensack, N.J. His firm offers a healthy private pension — up to 25% of compensation, given to employee retirement accounts — but it is tied to profits and given as a lump sum, not a lifetime promise of benefits.
Supporters of government pensions say the decline in private pensions is the problem, not the generosity of public retirement plans. “Rather than lower the bar for public employees, we need to stabilize retirement programs for everyone,” says Richard Ferlauto, director of pension and benefit policy for the American Federation of State, County and Municipal Employees, a union with 1.4 million members.
He acknowledges public pensions are getting more scrutiny. “People want to know, ‘Why should you have more security than us?’ ” he says. “It’s pension envy.”
State and local governments have sweetened retirement benefits during the past decade at a time when corporations have soured on them because of their cost. Only 18% of private workers now have traditional defined benefit pension plans, compared with more than 80% of government employees.
Contrary to a widely held notion, the extra government benefits aren’t compensation for lower pay. Most government workers are paid more than private employees in similar jobs, and the wage gap is growing.
A typical full-time state or local government worker made $78,853 in wages and benefits in the third quarter of 2006, $25,771 more than a typical private-sector worker, the Bureau of Labor Statistics reports. The difference was $7,604 in 2000. The compensation advantage holds true for all types of public workers, from teachers to laborers and managers. Better benefits for government workers is the biggest reason for the growing compensation gap.
“The government is in direct competition with us for employees. It’s hard to compete against these benefit packages,” says James Bellis, owner of Tree Tech, a 120-worker tree trimming company in Randolph, N.J. His company has a 401(k) plan that matches up to 2% of employee pay.
By comparison, tree trimmers working for a government in New Jersey would get a pension benefit worth more than three times that.
Superior retirement benefits for civil servants can be traced to the establishment of Social Security, which originally did not cover government employees, says E.J. McMahon, a pension expert at the Manhattan Institute, a conservative think tank that deals with economic policy. Today, three-fourths of government workers participate in Social Security, but their overall benefits have not been reduced accordingly, he says.
The boost in benefits since the 1960s reflects the rising power of public employee unions, which have thrived as industrial labor unions and the benefits they won have eroded, he says.
The growing benefit gap makes government an increasingly attractive employer.
Anneliese Crosby, 46, who codes medical records at a private hospital in Manchester, N.H., is trying to get a government job for financial reasons — better pay, benefits and job security. The hospital recently ended its pension plan for new employees. That didn’t affect Crosby, but her retirement depends mostly on contributions to her tax-deferred retirement account.
“It’s scary. I feel like I need a second job or to be on the lookout for a new job,” she says. “I should put more in my retirement account, but I can’t afford it.”
Her solution: Apply for a similar job at a Veterans Affairs hospital. She’d get a pay raise, better benefits and a secure future. “My ex-husband keeps encouraging me to get a government job, and he’s right about that,” she says.
Pensions for civil servants often are superior to private pensions in subtle ways that make a huge financial difference. For example, government pensions:
•Generally base benefits on a worker’s top three earning years. Private pensions typically base benefits on the top five years of pay, which lowers the average.
•Often let retirees add the value of overtime, unused leave and other benefits into the pension formula. The results can be extreme. Dover, N.H., Police Chief William Fenniman, 46, added more than $200,000 for severance, sick leave and other payouts into his three-year salary average when he retired in January. This will boost his retirement benefit to as much as $125,000 a year, more than he made as chief.
•Permit early retirement at age 50 or 55 with less of a benefit reduction than private pensions.
•Provide free or subsidized medical care for retirees under age 65 and supplemental coverage after that for those on Medicare.
•More often provide automatic cost-of-living increases to benefits.
Baby boomer retirements will force governments to confront the rising costs of civil servant benefits. The U.S. government’s unfunded retirement obligation grew $200 billion last year to $4.7 trillion. That’s the amount the government would need today, set aside and earning investment returns, to pay for promised retirement benefits.
Before 1984, federal workers had a defined benefit plan and no Social Security. Today, new employees have Social Security and a pension that is part defined benefit plan (lifetime monthly payments) and part defined contribution (a lump sum at retirement).
The pension is more generous than most private pensions, but workers have to pay more to take advantage of the plan. “You have to be aggressive about making contributions if you want a good retirement,” says Nichols, the Defense Department employee.
Unlike private pensions, though, the federal system still encourages early retirement. “The sweet spot for me is about age 56. When I run the numbers, the system almost forces me to retire” early, Nichols says. For example, he expects to qualify for a free supplemental annuity at age 56 that provides a benefit equal to what he’d get at age 62 under Social Security.
Another big incentive to retire early: Most governments offer health insurance to early retirees until they qualify for Medicare at 65. Massachusetts spent $377 million on retiree medical benefits last year. The state’s unfunded liability for such costs is $13.3 billion, nearly as much as its actual debt of $18.5 billion, which is counted separately.
“It’s a burden on taxpayers, of course,” says Delores Mitchell, executive director of the Massachusetts Group Insurance Commission, which runs the program. But she doesn’t foresee major benefit cuts. “States have a tradition of treating retirees well.”
Medical insurance may be the most vulnerable benefit because it has fewer legal protections than pensions, which often are guaranteed in state constitutions. Orange County, Calif., recently slashed promised retiree medical benefits, cutting its liability from $1.4 billion to $600 million. The county hasn’t done anything about its pension problem.
“Pension benefits are like a lobster trap. You can get in, but you can’t get out,” says John Moorlach, an Orange County supervisor who has tried to reduce retirement benefits for government workers.
He blames elected officials for awarding unsustainable retirement benefits to win support from employee unions. “Elected officials love to give generous retirement benefits because they don’t cost anything today and they’ll be out of office when the payments come due,” Moorlach says. “And the public? Eyes droop with boredom when you bring up the topic.”
The financial soundness of civil servant pensions varies across the country. Government pensions are, on average, in a similar condition as private pensions — about 20% below the assets needed to be properly funded. But some states, especially in the industrial Midwest, have severely troubled pensions.
“The taxes needed to pay for these promises would push many of these states’ economies into a death spiral,” Chicago bankruptcy lawyer James Spiotto says.
He says public employee unions should not overestimate legal protections for pension benefits. Localities can shed their obligations in a bankruptcy filing, and states, as sovereign governments, can ignore the requirements, he says. “Unions can win all the litigation and still lose because the judgments can’t be enforced,” Spiotto says.
Tim Lee, executive director of the Texas Retired Teachers Association, says unions understand the cost of the retirement benefits. He says his association’s top goal is improving the financial health of the pension fund, not winning new benefits.
As expensive as government pensions are to taxpayers, civil servants don’t feel the benefits make them rich. Frank Caron, 49, maintains lab equipment at the University of Massachusetts Amherst. He makes about $40,000 a year.
He has contributed heavily to his pension, including an extra $74 a week to restore pension credit for earlier government jobs. That will let him retire:
•At 55 with 47% of pay;
•At 60 with 72% of pay;
•Or at 65 with 103% of pay.
He also will have medical benefits and be eligible for Social Security at 62. “I’ve worked hard to have my ducks lined up in a row for retirement,” he says.
“More and more, retirees are finding that it pays to have worked for the government instead of the private sector”
This article mentions the City of Dover
By Dennis Cauchon
USA TODAY
Johnnie Nichols, a civilian Defense Department employee, contributes to a federal pension that will let him retire at age 56, after 32 years of service.
His wife, Kimberly, a math teacher at a private business college, has no pension after two decades of teaching and running a horse farm. Their marriage reflects the new world of retirement: government employees who have secure benefits and private workers who increasingly are on their own.
“If we were both in her shoes, we’d be in a world of hurt,” says Nichols, 45, an information technology manager in Middletown, Ind. “We wouldn’t be able to retire until age 67.”
As the first wave of 79 million baby boomers heads to retirement, the nation is dividing into two classes of workers: those who have government benefits and those who don’t. The gap is accelerating in every way: pensions, medical benefits, retirement ages.
Retired government workers are twice as likely to get a pension as their counterparts in the private sector, and the typical benefit is far more generous. The nation’s 6 million retired civil servants — teachers, police, administrators, laborers — received a median benefit of $17,640 in 2005, according to the Congressional Research Service. Eleven million private-sector retirees covered by traditional pensions got $7,692.
Governments’ generosity could have serious consequences for taxpayers and pensioners. Some states — including Illinois, Indiana, Michigan, New Jersey, Ohio and West Virginia — have troubled retirement systems that may require huge tax increases, spending cuts or even defaulting on promised benefits. The U.S. government has a bigger unfunded liability for military and civil servant retirement benefits ($4.7 trillion) than it does for Social Security ($4.6 trillion).
The pension gap will continue to widen because governments pump far more money into employee pensions than companies do. Civil servants earn an average of $12.38 an hour in benefits, about $5 an hour more than private-sector workers, according to the Bureau of Labor Statistics. The difference was just $2.70 an hour in 1995.
Pension promises have “gotten out of hand,” says Peter Hanson, 73, chairman of NAI James E. Hanson Inc., a real estate firm in Hackensack, N.J. His firm offers a healthy private pension — up to 25% of compensation, given to employee retirement accounts — but it is tied to profits and given as a lump sum, not a lifetime promise of benefits.
Supporters of government pensions say the decline in private pensions is the problem, not the generosity of public retirement plans. “Rather than lower the bar for public employees, we need to stabilize retirement programs for everyone,” says Richard Ferlauto, director of pension and benefit policy for the American Federation of State, County and Municipal Employees, a union with 1.4 million members.
He acknowledges public pensions are getting more scrutiny. “People want to know, ‘Why should you have more security than us?’ ” he says. “It’s pension envy.”
State and local governments have sweetened retirement benefits during the past decade at a time when corporations have soured on them because of their cost. Only 18% of private workers now have traditional defined benefit pension plans, compared with more than 80% of government employees.
Contrary to a widely held notion, the extra government benefits aren’t compensation for lower pay. Most government workers are paid more than private employees in similar jobs, and the wage gap is growing.
A typical full-time state or local government worker made $78,853 in wages and benefits in the third quarter of 2006, $25,771 more than a typical private-sector worker, the Bureau of Labor Statistics reports. The difference was $7,604 in 2000. The compensation advantage holds true for all types of public workers, from teachers to laborers and managers. Better benefits for government workers is the biggest reason for the growing compensation gap.
“The government is in direct competition with us for employees. It’s hard to compete against these benefit packages,” says James Bellis, owner of Tree Tech, a 120-worker tree trimming company in Randolph, N.J. His company has a 401(k) plan that matches up to 2% of employee pay.
By comparison, tree trimmers working for a government in New Jersey would get a pension benefit worth more than three times that.
Superior retirement benefits for civil servants can be traced to the establishment of Social Security, which originally did not cover government employees, says E.J. McMahon, a pension expert at the Manhattan Institute, a conservative think tank that deals with economic policy. Today, three-fourths of government workers participate in Social Security, but their overall benefits have not been reduced accordingly, he says.
The boost in benefits since the 1960s reflects the rising power of public employee unions, which have thrived as industrial labor unions and the benefits they won have eroded, he says.
The growing benefit gap makes government an increasingly attractive employer.
Anneliese Crosby, 46, who codes medical records at a private hospital in Manchester, N.H., is trying to get a government job for financial reasons — better pay, benefits and job security. The hospital recently ended its pension plan for new employees. That didn’t affect Crosby, but her retirement depends mostly on contributions to her tax-deferred retirement account.
“It’s scary. I feel like I need a second job or to be on the lookout for a new job,” she says. “I should put more in my retirement account, but I can’t afford it.”
Her solution: Apply for a similar job at a Veterans Affairs hospital. She’d get a pay raise, better benefits and a secure future. “My ex-husband keeps encouraging me to get a government job, and he’s right about that,” she says.
Pensions for civil servants often are superior to private pensions in subtle ways that make a huge financial difference. For example, government pensions:
•Generally base benefits on a worker’s top three earning years. Private pensions typically base benefits on the top five years of pay, which lowers the average.
•Often let retirees add the value of overtime, unused leave and other benefits into the pension formula. The results can be extreme. Dover, N.H., Police Chief William Fenniman, 46, added more than $200,000 for severance, sick leave and other payouts into his three-year salary average when he retired in January. This will boost his retirement benefit to as much as $125,000 a year, more than he made as chief.
•Permit early retirement at age 50 or 55 with less of a benefit reduction than private pensions.
•Provide free or subsidized medical care for retirees under age 65 and supplemental coverage after that for those on Medicare.
•More often provide automatic cost-of-living increases to benefits.
Baby boomer retirements will force governments to confront the rising costs of civil servant benefits. The U.S. government’s unfunded retirement obligation grew $200 billion last year to $4.7 trillion. That’s the amount the government would need today, set aside and earning investment returns, to pay for promised retirement benefits.
Before 1984, federal workers had a defined benefit plan and no Social Security. Today, new employees have Social Security and a pension that is part defined benefit plan (lifetime monthly payments) and part defined contribution (a lump sum at retirement).
The pension is more generous than most private pensions, but workers have to pay more to take advantage of the plan. “You have to be aggressive about making contributions if you want a good retirement,” says Nichols, the Defense Department employee.
Unlike private pensions, though, the federal system still encourages early retirement. “The sweet spot for me is about age 56. When I run the numbers, the system almost forces me to retire” early, Nichols says. For example, he expects to qualify for a free supplemental annuity at age 56 that provides a benefit equal to what he’d get at age 62 under Social Security.
Another big incentive to retire early: Most governments offer health insurance to early retirees until they qualify for Medicare at 65. Massachusetts spent $377 million on retiree medical benefits last year. The state’s unfunded liability for such costs is $13.3 billion, nearly as much as its actual debt of $18.5 billion, which is counted separately.
“It’s a burden on taxpayers, of course,” says Delores Mitchell, executive director of the Massachusetts Group Insurance Commission, which runs the program. But she doesn’t foresee major benefit cuts. “States have a tradition of treating retirees well.”
Medical insurance may be the most vulnerable benefit because it has fewer legal protections than pensions, which often are guaranteed in state constitutions. Orange County, Calif., recently slashed promised retiree medical benefits, cutting its liability from $1.4 billion to $600 million. The county hasn’t done anything about its pension problem.
“Pension benefits are like a lobster trap. You can get in, but you can’t get out,” says John Moorlach, an Orange County supervisor who has tried to reduce retirement benefits for government workers.
He blames elected officials for awarding unsustainable retirement benefits to win support from employee unions. “Elected officials love to give generous retirement benefits because they don’t cost anything today and they’ll be out of office when the payments come due,” Moorlach says. “And the public? Eyes droop with boredom when you bring up the topic.”
The financial soundness of civil servant pensions varies across the country. Government pensions are, on average, in a similar condition as private pensions — about 20% below the assets needed to be properly funded. But some states, especially in the industrial Midwest, have severely troubled pensions.
“The taxes needed to pay for these promises would push many of these states’ economies into a death spiral,” Chicago bankruptcy lawyer James Spiotto says.
He says public employee unions should not overestimate legal protections for pension benefits. Localities can shed their obligations in a bankruptcy filing, and states, as sovereign governments, can ignore the requirements, he says. “Unions can win all the litigation and still lose because the judgments can’t be enforced,” Spiotto says.
Tim Lee, executive director of the Texas Retired Teachers Association, says unions understand the cost of the retirement benefits. He says his association’s top goal is improving the financial health of the pension fund, not winning new benefits.
As expensive as government pensions are to taxpayers, civil servants don’t feel the benefits make them rich. Frank Caron, 49, maintains lab equipment at the University of Massachusetts Amherst. He makes about $40,000 a year.
He has contributed heavily to his pension, including an extra $74 a week to restore pension credit for earlier government jobs. That will let him retire:
•At 55 with 47% of pay;
•At 60 with 72% of pay;
•Or at 65 with 103% of pay.
He also will have medical benefits and be eligible for Social Security at 62. “I’ve worked hard to have my ducks lined up in a row for retirement,” he says.
Friday, March 02, 2007
New tax targets firms
The piece below states that the tax plan puts a burden on businesses. The fact is it puts a burden on everyone except for those that will benefit from the income redistribution and that would be the education industry and those involved with socialized medicine. When you tax businesses it risks jobs and the increased tax burden is shifted on the buyers of the businesses products. This is a lose, lose, win situation. The only ones who are winning are those that benefit from income redistribution or the tax increases.
The following piece appeared in the Daily Herald.
New tax targets firms
Plan puts more tax burden on businesses
By John Patterson
Daily Herald State Government Editor
Posted Friday, March 02, 2007
SPRINGFIELD — Gov. Rod Blagojevich is expected to roll out a dramatic change next week in how businesses pay taxes in Illinois, a move that could raise billions for health care and education spending but which already has business interests howling.
Specifics are unlikely before the governor’s March 7 budget speech, but the general idea involves doing away with the corporate income tax and instead imposing a tax on virtually every transaction businesses make.
The concept is to put a relatively low tax rate on all the money that comes in the door rather than a higher tax only on company profits.
Illinois isn’t alone in considering this. Ohio and Texas enacted similar tax policies in recent years.
The bottom line result in Illinois could be upward of $7 billion in new tax revenue flowing into state coffers, money Blagojevich sorely needs to shore up previous populist programs, such as his children’s insurance plan, and launch new ones, all while keeping his campaign mantra of not raising the state’s sales or income taxes.
Supporters of the idea describe it as restoring fairness to the state’s tax structure, saying more than half the Illinois corporations do not pay the state’s corporate income tax.
Doug Kane, a former Illinois lawmaker and president of a Wisconsin-based economic consulting firm, said the state’s existing tax structure no longer represents its economy and, as a result, a greater burden increasingly falls on individuals. Switching to this new tax structure would reverse that trend and at the same time ensure every business pays, if for no other reason than the loophole-filled corporate income tax system would be abolished.
“The advantages of a gross receipts tax are: one, the simplicity; two, the very broad base which allows a very low rate,” said Kane, who’s been retained at $125 an hour by the Blagojevich administration to help make the case for such a tax change.
He notes Republicans and business groups have led the push for similar tax policies in Ohio and Texas.
But Illinois business groups aren’t convinced, with makers of everything from bottle caps to bulldozers fearing they’ll get soaked.
Hardest hit, critics say, are major manufacturers relying on myriad supply chains and companies with low profit margins whose daily business consists of numerous small transactions.
“Good year or bad year, you’re going to get hit on your sales and not on your profitability,” said John L. Mikesell, a government finance professor at Indiana University.
“Almost anybody who’s done graduate-level work in economics is going to be against that turkey. The only exception is politicians,” Mikesell said. “There’s literally nothing good that can be said about it.”
As for other states, Mikesell notes Ohio businesses backed this kind of tax as a replacement for a system they despised even more. Nor are all states rushing to impose these taxes. Indiana has done away with its gross receipts tax.
Back in Illinois, the pending proposal almost certainly will create an all-out lobbying war at the Capitol, as virtually every business entity is already lining up to fight the plan. On the other side are myriad education, health care and other interest groups who covet state funding for their programs and have no shortage of ideas for how to spend more tax dollars.
In between are lawmakers who, on one hand, don’t want to appear overly anti-business but on the other hand will have the Blagojevich administration tempting them with the opportunity to come up with billions for spending without having to go home and defend a tax hike to the general public.
Business groups, however, are already emphasizing that such a tax will result in higher prices and the fingers should point to Blagojevich.
“The governor’s going to impose the largest tax on the people of Illinois, period,” said Greg Baise, president and chief executive of the Illinois Manufacturers’ Association. “They’re going to pay for it.”
But supporters dispute the guarantee of higher prices and say such criticism ignores the bigger problem of how to fix the state’s overall tax structure.
“It’s way too easy to trash a tax individually,” Kane said. “No tax is good.”
The question Kane has for critics is, if not this tax, then which one?
The following piece appeared in the Daily Herald.
New tax targets firms
Plan puts more tax burden on businesses
By John Patterson
Daily Herald State Government Editor
Posted Friday, March 02, 2007
SPRINGFIELD — Gov. Rod Blagojevich is expected to roll out a dramatic change next week in how businesses pay taxes in Illinois, a move that could raise billions for health care and education spending but which already has business interests howling.
Specifics are unlikely before the governor’s March 7 budget speech, but the general idea involves doing away with the corporate income tax and instead imposing a tax on virtually every transaction businesses make.
The concept is to put a relatively low tax rate on all the money that comes in the door rather than a higher tax only on company profits.
Illinois isn’t alone in considering this. Ohio and Texas enacted similar tax policies in recent years.
The bottom line result in Illinois could be upward of $7 billion in new tax revenue flowing into state coffers, money Blagojevich sorely needs to shore up previous populist programs, such as his children’s insurance plan, and launch new ones, all while keeping his campaign mantra of not raising the state’s sales or income taxes.
Supporters of the idea describe it as restoring fairness to the state’s tax structure, saying more than half the Illinois corporations do not pay the state’s corporate income tax.
Doug Kane, a former Illinois lawmaker and president of a Wisconsin-based economic consulting firm, said the state’s existing tax structure no longer represents its economy and, as a result, a greater burden increasingly falls on individuals. Switching to this new tax structure would reverse that trend and at the same time ensure every business pays, if for no other reason than the loophole-filled corporate income tax system would be abolished.
“The advantages of a gross receipts tax are: one, the simplicity; two, the very broad base which allows a very low rate,” said Kane, who’s been retained at $125 an hour by the Blagojevich administration to help make the case for such a tax change.
He notes Republicans and business groups have led the push for similar tax policies in Ohio and Texas.
But Illinois business groups aren’t convinced, with makers of everything from bottle caps to bulldozers fearing they’ll get soaked.
Hardest hit, critics say, are major manufacturers relying on myriad supply chains and companies with low profit margins whose daily business consists of numerous small transactions.
“Good year or bad year, you’re going to get hit on your sales and not on your profitability,” said John L. Mikesell, a government finance professor at Indiana University.
“Almost anybody who’s done graduate-level work in economics is going to be against that turkey. The only exception is politicians,” Mikesell said. “There’s literally nothing good that can be said about it.”
As for other states, Mikesell notes Ohio businesses backed this kind of tax as a replacement for a system they despised even more. Nor are all states rushing to impose these taxes. Indiana has done away with its gross receipts tax.
Back in Illinois, the pending proposal almost certainly will create an all-out lobbying war at the Capitol, as virtually every business entity is already lining up to fight the plan. On the other side are myriad education, health care and other interest groups who covet state funding for their programs and have no shortage of ideas for how to spend more tax dollars.
In between are lawmakers who, on one hand, don’t want to appear overly anti-business but on the other hand will have the Blagojevich administration tempting them with the opportunity to come up with billions for spending without having to go home and defend a tax hike to the general public.
Business groups, however, are already emphasizing that such a tax will result in higher prices and the fingers should point to Blagojevich.
“The governor’s going to impose the largest tax on the people of Illinois, period,” said Greg Baise, president and chief executive of the Illinois Manufacturers’ Association. “They’re going to pay for it.”
But supporters dispute the guarantee of higher prices and say such criticism ignores the bigger problem of how to fix the state’s overall tax structure.
“It’s way too easy to trash a tax individually,” Kane said. “No tax is good.”
The question Kane has for critics is, if not this tax, then which one?
Thursday, March 01, 2007
A+ Illinois $500,000 from Gates to Ram HB 750 down your throats.
In a recent news release from A+ Illinois we learned that the Gates Foundation gave the "lobbying group" for the teachers' unions and public education monopoly, $500,000. Starting March 1st A+ Illinois will be using this money to encourage you and legislators to increase income taxes and business taxes for the "funding" problem in our public schools. It is not a funding problem it is a spending problem.
Pete Speer sent the following message to Mr. Gates.
Dear Mr. Gates:
I have just learned that the Gates Foundation has provided a $500,000 Grant to A+ Illinois.in its efforts to lobby legislators to increase Illinois school funding.
Regretfully, A+ Illinois does not have the same objectives as has been excellently presented in public speeches by Mr. Gates. Perhaps I have misread what I thought to be his clear train of logic.
The money from the tax increase which A+ Illinois is supporting is for two purposes. Part would go to increase funding for Illinois public schools without requiring reform. Part would go to increase taxes generally.
A small group of us in Illinois follow school funding closely. The State, according to the NEA, in combined state and local funding ranks 11th in the nation. However, it is the quality of the education output which concerns us.
In our view, the box that is Public Education is broken. What is clearly lacking is Education Value -- that which can be provided only by teachers with Subject Matter Mastery, a love of the subject and an affection for their students. The teachers in Illinois by this standard are underqualified. They are rewarded on a grid system of pay with longevity increases and additional increases for additional coursework. Of the graduate degrees held by Illinois High School teachers a large majority are not in the subject matter area they are teaching
Entry into the teaching force is tightly controlled by the Schools of Education who demand, we think unreasonably, multiple semesters of education theory and practice -- even of those who have had teaching experience in the military and wish to provide upon retirement continued public service. The environment is a closed shop, much like the industrial unions of the 1940s.
Union control over local Districts is absolute. It remains the largest source of contributions for a single political party. While Charter Schools are permitted in a limited fashion, only the political muscle of Chicago's Mayor has forced a single Charter School district through. The remainder of the state has not. The teachers unions and the administrators have advised Districts to opt out of the No Child Left Behind program, because of whatever small amount of rigor which it imposed. That would, of course, reveal the shortcomings to the public.
The "standards" agency -- the Illinois State Board of Education -- this last year has dumbed down the standardized tests, normed up the results and lowered the passing grade on subject matter competency for teacher certification. Once again, underqualified performance has been hidden behind inflated test scores...and grades.
Mr. Gates has spoken about the reform of the school system. The website www.wheresthemath.com deals with the math area and has a good short video by a professor in your state.
When the nadir of American car quality was reached in the 1960s, foreign competition entered the market and both amenities and qualities were increased across the board. We believe that this applies, not only to Illinois schools but across the nation. It is time for Competitive Competition in the Education field. The solution is simple, the cost would probably be less than the present cost of public education:
After accounting for special education needs vest the parents, on behalf of each child, with an equal amount of funding now going to Education Fund of each District. Funds would accrue from Federal, State and local resources. Let them choose from any accredited school -- in District or out. This would include the present District, a charter school, any accredited private school , and even a parochial school or a religious school, provided that the school's curriculum did not have religious courses during normal time.
This does two things. It empowers the family -- the building block of the Republic. It involves the parents in school selection and can remotivate them.
We are moving through a period during which early school leavers of the past, who had been ill served both at home and in the school, no longer believe that Education is an economic and a social good. Combined with a continuing program of GED equivalent education as a condition of welfare, Competitive Choice offers a way to form families to rejoin society.
In the case at hand, however, I am saddened to report that your grant will not reform schools, merely maintain the status quo.
Respectfully,
Paul D. (Pete) Speer, Jr.
Pete Speer sent the following message to Mr. Gates.
Dear Mr. Gates:
I have just learned that the Gates Foundation has provided a $500,000 Grant to A+ Illinois.in its efforts to lobby legislators to increase Illinois school funding.
Regretfully, A+ Illinois does not have the same objectives as has been excellently presented in public speeches by Mr. Gates. Perhaps I have misread what I thought to be his clear train of logic.
The money from the tax increase which A+ Illinois is supporting is for two purposes. Part would go to increase funding for Illinois public schools without requiring reform. Part would go to increase taxes generally.
A small group of us in Illinois follow school funding closely. The State, according to the NEA, in combined state and local funding ranks 11th in the nation. However, it is the quality of the education output which concerns us.
In our view, the box that is Public Education is broken. What is clearly lacking is Education Value -- that which can be provided only by teachers with Subject Matter Mastery, a love of the subject and an affection for their students. The teachers in Illinois by this standard are underqualified. They are rewarded on a grid system of pay with longevity increases and additional increases for additional coursework. Of the graduate degrees held by Illinois High School teachers a large majority are not in the subject matter area they are teaching
Entry into the teaching force is tightly controlled by the Schools of Education who demand, we think unreasonably, multiple semesters of education theory and practice -- even of those who have had teaching experience in the military and wish to provide upon retirement continued public service. The environment is a closed shop, much like the industrial unions of the 1940s.
Union control over local Districts is absolute. It remains the largest source of contributions for a single political party. While Charter Schools are permitted in a limited fashion, only the political muscle of Chicago's Mayor has forced a single Charter School district through. The remainder of the state has not. The teachers unions and the administrators have advised Districts to opt out of the No Child Left Behind program, because of whatever small amount of rigor which it imposed. That would, of course, reveal the shortcomings to the public.
The "standards" agency -- the Illinois State Board of Education -- this last year has dumbed down the standardized tests, normed up the results and lowered the passing grade on subject matter competency for teacher certification. Once again, underqualified performance has been hidden behind inflated test scores...and grades.
Mr. Gates has spoken about the reform of the school system. The website www.wheresthemath.com deals with the math area and has a good short video by a professor in your state.
When the nadir of American car quality was reached in the 1960s, foreign competition entered the market and both amenities and qualities were increased across the board. We believe that this applies, not only to Illinois schools but across the nation. It is time for Competitive Competition in the Education field. The solution is simple, the cost would probably be less than the present cost of public education:
After accounting for special education needs vest the parents, on behalf of each child, with an equal amount of funding now going to Education Fund of each District. Funds would accrue from Federal, State and local resources. Let them choose from any accredited school -- in District or out. This would include the present District, a charter school, any accredited private school , and even a parochial school or a religious school, provided that the school's curriculum did not have religious courses during normal time.
This does two things. It empowers the family -- the building block of the Republic. It involves the parents in school selection and can remotivate them.
We are moving through a period during which early school leavers of the past, who had been ill served both at home and in the school, no longer believe that Education is an economic and a social good. Combined with a continuing program of GED equivalent education as a condition of welfare, Competitive Choice offers a way to form families to rejoin society.
In the case at hand, however, I am saddened to report that your grant will not reform schools, merely maintain the status quo.
Respectfully,
Paul D. (Pete) Speer, Jr.
Wednesday, February 28, 2007
Will plan spell r-e-l-i-e-f?
HB - 750 will undoubtedly pass in the fall veto session. But this will not help McHenry County Schools. Once the income taxes leave the County they will not come back. Schools will continue to overspend and referenda will not cease. Please take the time to contact your legislators and tell them to vote no on any income tax increases, tax swaps or new taxes to businesses. There are two ways to balance a budget. One way is to increase revenues the other is to decrease spending. It is time to decrease spending in the schools. Taxpayers should not be the ones to always take a pay-cut.
The following piece appeared in the Northwest Herald.
Will plan spell r-e-l-i-e-f?
By ALEXA AGUILAR - aaguilar@nwnewsgroup.com
Comments (63)
Local school district leaders aren’t pinning their hopes on HB 750 – the latest education funding reform proposal reintroduced this month.
And they don’t think that it is the solution to Illinois’ school funding woes.
Officials aren’t even bothering to crunch the numbers to see how they will fare under the bill. Many of the county’s education veterans have seen so many proposals come and go over the years, they are wondering why this one will be any different.
“I’ve been in education 31 years,” said Ronald Miller, superintendent of Crystal Lake District 47.
“It comes up all the time, ... and then it stalls.”
House Bill 750 is designed to equalize the state’s funding system, which critics say is too reliant on local property-tax dollars.
The bill would increase the state income tax and tax consumer services, such as haircuts and lawn care, to provide a revenue stream to boost state aid to schools. It guarantees property tax relief, in the form of a refund from the state, to taxpayers.
The organization that wrote the legislation, the Center for Tax and Budget Accountability, says no school district in Illinois would lose money under the proposal.
Local legislators are skeptical. Even if local school districts don’t lose money, the taxpayers of McHenry County likely will be helping foot the bill of making the system more equitable, they said.
“McHenry County would lose money,” said state Sen. Pamela Althoff, R-Crystal Lake. She and state Rep. Jack Franks, D-Woodstock, say they oppose the legislation.
Local school district leaders say they aren’t sure how they would be affected.
Allan Smigiel, director of finance for McHenry District 15, said he didn’t know the specific impact on his district. He said similar proposals to HB 750 already had been proposed without any action.
But until the Legislature addresses the state’s structural deficit, he said, it shouldn’t be taking on the school’s education system.
Education leaders throughout the state agree that the quality of a child’s education shouldn’t depend on where the child lives. But part of the challenge is that each district and legislator wants to protect their local districts. In McHenry County, local dollars provide up to 90 percent of school funding. In other areas of the state, the percentages are far less.
Miller said there was a natural skepticism from McHenry County taxpayers about any reform that meant sending money to Springfield for the state to dole it out.
“No ifs, ands and buts,” Miller said. “Anytime money goes to Springfield, we worry about it.”
As much as property-tax dollars are a burden, taxpayers prefer to have that local control, said Mike Tanner, assistant superintendent of finance for Prairie Grove District 46.
The following piece appeared in the Northwest Herald.
Will plan spell r-e-l-i-e-f?
By ALEXA AGUILAR - aaguilar@nwnewsgroup.com
Comments (63)
Local school district leaders aren’t pinning their hopes on HB 750 – the latest education funding reform proposal reintroduced this month.
And they don’t think that it is the solution to Illinois’ school funding woes.
Officials aren’t even bothering to crunch the numbers to see how they will fare under the bill. Many of the county’s education veterans have seen so many proposals come and go over the years, they are wondering why this one will be any different.
“I’ve been in education 31 years,” said Ronald Miller, superintendent of Crystal Lake District 47.
“It comes up all the time, ... and then it stalls.”
House Bill 750 is designed to equalize the state’s funding system, which critics say is too reliant on local property-tax dollars.
The bill would increase the state income tax and tax consumer services, such as haircuts and lawn care, to provide a revenue stream to boost state aid to schools. It guarantees property tax relief, in the form of a refund from the state, to taxpayers.
The organization that wrote the legislation, the Center for Tax and Budget Accountability, says no school district in Illinois would lose money under the proposal.
Local legislators are skeptical. Even if local school districts don’t lose money, the taxpayers of McHenry County likely will be helping foot the bill of making the system more equitable, they said.
“McHenry County would lose money,” said state Sen. Pamela Althoff, R-Crystal Lake. She and state Rep. Jack Franks, D-Woodstock, say they oppose the legislation.
Local school district leaders say they aren’t sure how they would be affected.
Allan Smigiel, director of finance for McHenry District 15, said he didn’t know the specific impact on his district. He said similar proposals to HB 750 already had been proposed without any action.
But until the Legislature addresses the state’s structural deficit, he said, it shouldn’t be taking on the school’s education system.
Education leaders throughout the state agree that the quality of a child’s education shouldn’t depend on where the child lives. But part of the challenge is that each district and legislator wants to protect their local districts. In McHenry County, local dollars provide up to 90 percent of school funding. In other areas of the state, the percentages are far less.
Miller said there was a natural skepticism from McHenry County taxpayers about any reform that meant sending money to Springfield for the state to dole it out.
“No ifs, ands and buts,” Miller said. “Anytime money goes to Springfield, we worry about it.”
As much as property-tax dollars are a burden, taxpayers prefer to have that local control, said Mike Tanner, assistant superintendent of finance for Prairie Grove District 46.
Labels:
Income Taxes Cost Jobs,
Legislation,
Tax Swap
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