VACostCutting

Thursday, April 27, 2006

Gas Prices: Necessity and Opportunity

I'm surprised that despite skyrocketing gas prices, I have not seen any directives for state employees to curtail vehicle travel for non-essential trips, or any requests for agencies to consider plans for reducing travel by using technology. If anything, from my keyhole vantage point, I'm seeing more car travel.

The price of gas will undoubtably impact the state budget. I would think it necessary, assuming no additional appropriations, to reduce travel to stay within the current budget. I also think the gas price situation gives us an opportunity to rethink how we do business long-term, replacing travel by car with phone and internet contacts.

Tuesday, April 25, 2006

Is this really our education model?

A. Barton Hinkle at the Richmond Times Dispatch had an interesting article last week, and while its primary focus was on NCLB, it did make some very good points that shed some light on the government's role in K-12 education generally.

First, a story:

Aleksei Grigorievich Stakhanov was a Russian coal-miner in the 1930s. The Five-Year Plans of Soviet Communism set quotas for industrial production, and one day Stakhanov not only met his quota, he exceeded it 14 times over by digging 102 tons of coal in under six hours. Pravda noted the feat the next day, and (with a little help from the Communist Party) a movement was launched. Workers across the land were encouraged to emulate the heroic laborers who had reached new heights in the completion of their scheduled tasks. Industries quickly began reporting astounding feats of individual production. Stalin boasted of socialism's advance in the realm of productive capacity.

It was, of course, a sham.

Stakhanov did not set his remarkable record through super-human energy and diligence, or because of his great love for the workers' paradise Stalin supposedly was building. The mine's bosses shifted Stakhanov's usual tasks to other workers, freeing him to do nothing but dig. They rigged the system to present a false picture of performance.

Which leads to this insight from Mr. Hinkle:

…America's public school system looks a lot like the old Soviet economic model: The state controls the means of production, determines what the output should be, decides who should work, and assigns a quota of students per teacher. There is no competition, and not much reward for performance. In most places concepts such as merit pay are anathema. School choice is condemned as practically obscene; charter schools are viewed with suspicion, and even ability grouping is controversial.

Not surprisingly, performance remains mediocre -- despite enormous increases in school spending. In 1960 the average per-pupil expenditure was $375 -- about $2,376 in today's dollars. The per-pupil expenditure in 2005 was $8,554 -- a 260 percent increase in constant dollars. Yet every few years Washington rolls out another reform aimed at correcting the lamentable fact that Johnny can't read.



So the question is, do we really want to trust our children’s future to a failed Soviet model?

~whitney

Sunday, April 23, 2006

Reducing high spending, not justifying it

William Goodwin, who serves on Mayor Wilder's education advisory committee hits the nail on the head with his comments on Richmond City's higher than state-average per pupil education spending.

From Saturday's "Week's End" in the Richmond Times Dispatch...

"Goodwin said energy should be spent looking at ways to reduce high spending, not attempting to justify it."

The full article ran earlier this week.

~whitney

Friday, April 21, 2006

VDOT Annual Payroll

After receiving a letter from high ranking VDOT officials, I placed a call to verify the amount of money spent at VDOT annually on payroll.

Care to guess how much is spent annually? Multiply that by two and you have the biennial amount. I know DUH. But it presents an interesting question vis a vis the current debate on transportation.

I think there ought to be a contest on this. So, the first person who gets it right by posting it here will get $50.00 from yours truly.

Tuesday, April 18, 2006

What's going on in our schools?

Riley, Not O’Reilly over at Virginia Virtucon brings to light some serious concerns about education in this post.

He references this Washington Post article.
~whitney

Monday, April 17, 2006

Putting Bills in the Drawer

So with all the transportation plans being discussed, there has been some talk about net job growth. Well, here’s a little something to consider when looking at the number of government jobs being created by the Senate and the Governor according to the Beacon Hill Institute analysis of their respective plans.

Governor: 4,362 new government jobs by 2010
Senate: 10,382 new government jobs by 2010
House: 2 (TWO) net new government jobs by 2010.

Well, new jobs are good, right? But not so fast. The Kiplinger Letter (March 24, 2006) reports that while 45 of 50 states are currently running budget surpluses, "huge pension obligations" will "pinch" states "just over the horizon."

So while all those new government jobs might look good initially on paper, what kind of fiscal trouble are they creating for us long-term? We already know that state retirement plans, such as VRS here in the Commonwealth, are starting to feel the pinch as baby-boomers look towards retirement. Is continuing to create more government jobs really going to help the situation?

As it is now, by the end of the decade, state and local governments will be facing a 44% increase in pay to retirees over what they paid in 2004—totaling more than $170 Billion a year!

Remember: “We have always done it this way” + “Bills in the drawer” = “We have ALWAYS put bills in the drawer!”

The Senate says they are worried about burdening “our children” with future debts to pay if we take out very low interest bonds to pay for road construction to pay for roads that those same children will utilize. Yet, they somehow seem to not be phased by the future burden they’re placing on “our children” by adding to an already strained retirement system.

Doesn’t sound like fiscal responsibility to me.

~whitney

Thursday, April 13, 2006

Indiana Toll Road Deal Heads to Court

Back in February, Geoff Segal had this post about Indiana's effort to generate billions of dollars in new money by leasing the Indiana Toll Road to a private company.

Well, it seems some people really don't like that idea. And they've taken their fight to court:

Opponents argued it violates the state constitution and have sued. They said the constitution requires that the proceeds from the sale of any public works be used to pay off state debt. The Daniels administration said the arrangement is not a sale but a lease.

The state hopes to close the deal and transfer the highway to the consortium by June 30.

The lease authorization passed in the Republican-controlled General Assembly by the bare minimum of votes. All but two Democrats opposed it, saying the state should not turn over a major asset to a private, foreign entity, and noting the consortium would reap billions of dollars through toll revenue and rate increases.

So the state should not accept nearly $4 billion dollars and save on maintenance costs associated with a depreciating asset because some believe a private entity might try to turn a profit on the deal.

The business acumen of some politicians is staggering.

The Scary Truth

In his article in Bacon’s Rebellion earlier this month, Geoff Segal asks about transportation “Do We Need it All?”

A good question, and one that deserves a little more examination that the knee-jerk reactions and scary rhetoric.

Luckily, University of North Carolina-Charlotte Professor David Hartgen and the Reason Foundation aren’t so quick to buy-into the mentality that we really “need” it all, and instead have done their own research into Virginia’s transportation needs.

Some of their findings, being distributed as talking points to legislators may be shocking.

Their research shows that the cost to relieve severe congestion in Virginia is actually only about $8.5 billion over 25 years! That’s only 15% of the MPO’s Long Range Transportation Plans (read: “Wants”) that call for spending at least $57 billion.

It should be noted that right now, only TWO MPOs to have congestion relief as a stated goal in their LRTPs—Fredericksburg and Harrisonburg. While other plans might include indirect mentions to congestion relief, they do not make it a specific goal or include measurable outcomes. Sadly, the researchers found that other areas simply accept congestion as “an inevitable consequence of urban life” and go on to include strategy outlines to allow for increased congestion levels into the future.

Knowing that there is already ample money in the system to address the severe congestion, without a tax increase, it comes down to, of course, how the money is allocated. We must look at how funding should be reallocated to addressing these severe congestion problems.

What they’re really saying is that we need to be spending money the right way!

“The Virginia legislature needs to make the relief of congestion a major priority. Other regions are already beginning to make congestion relief a key priority. Atlanta has recently changed its project weighting procedure to raise the weight placed on congestion relief from 11 to 70 percent and adopted a TTI goal of 1.35 by 2030. (Currently, the Atlanta area TTI is 1.44.). Texas state and local governments have recently assessed the impact of congestion on their situation and are setting congestion reduction targets. Once congestion relief is established as planning priority, and specific measurable goals developed, then VDOT can realistically hold MPOs accountable for goal achievement.”


In the end, what Professor Hartgen and the Reason Foundation have found is that “there is ample money currently in the system to make significant inroads in the alleviation of congestion, if only goals were established to do so and money allocated to support those goals.”

Surely this news will come as quite a shock to those who are just chomping at the bit to raise our taxes yet again. But I guess, sometimes the simple truth is scary.

~whitney

Wednesday, April 05, 2006

Future Costs of Higher Ed

The RTD has an article on some trends in higher ed costs.

Check it out here.

Tuesday, April 04, 2006

House calls save money

Check out this story on the front page of the USA Today.

Quote or Motto?

"So there will be no misunderstanding, it is not my intention to do away with government. It is rather to make it work - work with us, not over us; to stand by our side, not ride on our back. Government can and must provide opportunity, not smother it; foster productivity, not stifle it."
-Ronald Reagan First Inaugural Address 1981.

25 years ago.