By RON BROCHU
If journalism is the Fourth Estate, then legislative lobbyists are the fifth, which is one too many – according to Gov. Tim Pawlenty.
About $35 million in taxpayer money was paid by local units of government between 2003 and 2007 to pros who wander the capitol promoting parochial needs – everything from publicly financed civic projects to aid for cities, counties, colleges and school districts..
Facing budget deficits, Pawlenty believes, local government could save a lot of money by firing their lobbyists, Minnesota Public Radio reported April 20. He even has support from some Democrats.
"We just think it's an expense that doesn't have to be there," DFL State Rep. Michael Paymar of St. Paul told MPR. Paymar, a former Duluth city councilor, also would prohibit state agencies and departments from spending tax money to lobby the legislature.
His opinion differs sharply from DFL Rep. Thomas Huntley, who once served with Paymar on the Duluth city council. Huntley told KBJR-TV “When we're down here, we don't talk to senators, we don't have time, yet we have to coordinate our actions and it's basically the lobbyists that run back and fourth and keep us informed by what the other body's doing."
Did Huntley really intend to suggest taxpayers should pay lobbyists to function as couriers between the House and Senate? Hopefully not, for it would be difficult to find more expensive labor to shuttle notes among lawmakers.
But that’s a minor issue, and so is the taxpayer cost to hire lobbyists. At issue is the role of state legislators. Don’t taxpayers elect them to lobby local interests? Aren’t they paid rather well to seek aid for cities, counties and schools – to get funding for aquariums, theaters and other non-profits that live up to that description? The real question is why taxpayers must pay twice to get the same service.
Like a three-eyed toad, the political system has been poisoned, morphing into a troubling monster that would rattle our founding fathers. That’s not to say lobbyists are corrupt. After all, Duluth city lobbyist Kevin Walli is a Denfeld grad who carried the pigskin alongside good ‘ole West Duluth boys like Mark Bibeau and Ernie Conito. But he’s among the expensive professionals who essentially have added another layer of costs and complications to democracy.
Where does it end?
Throughout the winter, education lobbyists pleaded their case in a related by slightly different venue. Education Minnesota, which represents 70,000 educators, purchased television ads suggesting viewers should tell their legislators that their top priority should be to fund public schools.
The union-funded ads didn’t cost taxpayers a nickel – or did they?
Giving top priority to public schools, of course, would push some other entity down the funding ladder. One example might be cities, or law enforcement, which is funded by cities. Facing competition from the massive educators’ union, cities feel the need to hire their own lobbyists. After all, voters aren’t happy when crime rises, which tends to happen when police funding is reduced.
On another level, county board commissioners also have a stake in the game. For if state aid is reduced, who will pick up the tab for ever-growing social service costs? So counties also need their own lobbyist.
The University of Minnesota is a sprawling animal that affects every corner of Minnesota. It can’t afford to watch while scarce state money is allocated to other entities. So it sends chancellors and others to St. Paul to represent its interests.
And so on. Without some legislative restraint, the system will feed on itself and spread like wildfire.
High development costs
Don’t expect Pawlenty to address a parallel situation that also wastes taxpayer dollars. It’s unlikely a Republican would condemn the massive amount of public money that’s spent to lure companies from one community to another, one state to another, even one country to another.
The original intent of publicly funded business incentives was to create jobs in America’s worst poverty pockets. But over the years, every community has painted itself as developmentally impaired, in an economic sense. As a result, public economic development has become an industry, and it’s a sinkhole for tax money. Every time a city hands out tax breaks, tax credits, TIF financing and the like, taxpayers pick up the tab.
Today, every city and every state plays the game – even though private investors at times haven’t even sought assistance. It happened last year in Superior. To create a new TIF district, the first occupant was given TIF assistance it didn’t need and hadn’t requested.
Economic development agencies, however, have become the darling of mayors, governors and legislators. Every time politicians use tax breaks to lure private development or redevelopment, they use the occasion to pose before cameras with private executives and union officials – and later with contractors and trade union reps – claiming credit for creating jobs. Yet reporters seldom provide critical analysis of the tax incentives, even though the devil is in the details.
Essentially, they allow politicians to paint themselves as heros and perpetuate incumbancy – all on your dime.
This story first appeared in the May 1 Reader Weekly.
Friday, May 15, 2009
Sunday, April 26, 2009
Stories only good as the reporters who write them
By RON BROCHU
The Technology Village, Great Lakes Aquarium, OmniMax Theatre, a high-speed train to Minneapolis and the infamous Red Plan. Why do so many high-risk, costly public projects take flight in Duluth despite great odds for failure?
First and foremost, they’re funded by government money, which flows like water here in the Land of 10,000 Lakes. So if a project isn’t successful, losses are simply covered by more government money, or tucked into a line item that escapes public attention.
But there’s also insufficient media scrutiny, and a tendency by media to partner up with project sponsors to gain a slice of the action –contractor-funded advertising spreads that typically accompany open houses.
One gut reaction would be to conclude editors, publishers and producers are telling reporters to back away from popular civic projects, but it doesn’t happen that way. The truth is that many journalists lack the skill and background to adequately report complicated financial stories. They’ll deny it, but it’s the unfortunate truth.
But don’t blame reporters. The problem runs all the way back to the institutions of higher learning that fail to provide them a broad educational background.
Journalism schools spend far too much time focusing on the glory and grandeur of reporting while failing to ensure students know the difference between an income statement and balance sheet, revenue and profit.
Math skills are equally weak, no matter the reporter’s pedigree. The number who can’t calculate the percent of change (for instance, the decrease in attendance from 2007-2008 at Great Lakes Aquarium) is astounding. Many journalists also graduate with no background in spreadsheets – the most basic software tool used in public and private accounting.
How many would know the difference between equity and commercial financing? Who would be able to analyze cash flow? How many could name Duluth’s top angel investors, and in which projects they hold a stake?
Such details would bore the hell out of most reporters, and probably baffle many of their supervisors. So it’s not surprising that few stories provide deep financial analysis of even the biggest, costliest projects.
Meanwhile, Duluth’s large collection of young novice reporters doesn’t have a pony in the race. They’ve never owned homes, so they haven’t experienced the joy of paying property taxes. They don’t have kids in school, so they don’t recognize the hassle of driving from downtown to Morgan Park to pick up an ill child, then back home to Duluth Heights in a mad dash that can last far more than a hour.
As an alternative, reporters interview project sponsors, who are all too aware of the media’s limitations. People like Superintendent of Schools Keith Dixon hold all the trump cards in most every discussion of the Red Plan – even though the project will cost nearly a half-billion dollars. He fully understands complicated financial plans; reporters can’t even navigate the index.
Psychological factors
Despite numerous accusations, editors seldom if ever tell reporters they can’t write about stories favored by civic leaders. But reporters face psychological barriers.
What Duluth News Tribune reporter in her right mind, for example, would propose to pen a critical analysis of the high-speed rail plan – for which DNT News Director Robin Washington has been the lead cheerleader? Looking back a few years, the same question could have been asked when Dean Jacobus was a Technology Village consultant while his wife was DNT publisher. Or later when DNT Publisher Marti Buscaglia chaired a task force to save the aquarium.
It’s unlikely News Tribune reporters would admit to such intimidation, but they raised concerns internally about relationships between company execs and project sponsors – and were consistently ignored.
Today, of course, there are fewer reporters than in the past to chase stories of high community interest, and the numbers keep declining.
On the TV side, streamlining is most evident in the KBJR-KDLH newsroom. It would take a high-power microscope to unveil any difference between news coverage provided on one channel versus the other.
In print, the News Tribune continues to cut, and the most recent layoff proved embarrassing. Days after it occurred, Forum Communications’ CEO Bill Marcil was credited in USA Today for saying his company is having “one of our best years ever” after making some necessary staff reductions. But in an April 10 internal memo, Forum President Lloyd Case said Marcil was misquoted. If true, Marcil was misquoted by the best. The USA Today column was written by Al Neuharth, who founded the nationwide newspaper. Marcil, by the way, married into the Forum fortune.
This story was published in the April 24 Reader Weekly
The Technology Village, Great Lakes Aquarium, OmniMax Theatre, a high-speed train to Minneapolis and the infamous Red Plan. Why do so many high-risk, costly public projects take flight in Duluth despite great odds for failure?
First and foremost, they’re funded by government money, which flows like water here in the Land of 10,000 Lakes. So if a project isn’t successful, losses are simply covered by more government money, or tucked into a line item that escapes public attention.
But there’s also insufficient media scrutiny, and a tendency by media to partner up with project sponsors to gain a slice of the action –contractor-funded advertising spreads that typically accompany open houses.
One gut reaction would be to conclude editors, publishers and producers are telling reporters to back away from popular civic projects, but it doesn’t happen that way. The truth is that many journalists lack the skill and background to adequately report complicated financial stories. They’ll deny it, but it’s the unfortunate truth.
But don’t blame reporters. The problem runs all the way back to the institutions of higher learning that fail to provide them a broad educational background.
Journalism schools spend far too much time focusing on the glory and grandeur of reporting while failing to ensure students know the difference between an income statement and balance sheet, revenue and profit.
Math skills are equally weak, no matter the reporter’s pedigree. The number who can’t calculate the percent of change (for instance, the decrease in attendance from 2007-2008 at Great Lakes Aquarium) is astounding. Many journalists also graduate with no background in spreadsheets – the most basic software tool used in public and private accounting.
How many would know the difference between equity and commercial financing? Who would be able to analyze cash flow? How many could name Duluth’s top angel investors, and in which projects they hold a stake?
Such details would bore the hell out of most reporters, and probably baffle many of their supervisors. So it’s not surprising that few stories provide deep financial analysis of even the biggest, costliest projects.
Meanwhile, Duluth’s large collection of young novice reporters doesn’t have a pony in the race. They’ve never owned homes, so they haven’t experienced the joy of paying property taxes. They don’t have kids in school, so they don’t recognize the hassle of driving from downtown to Morgan Park to pick up an ill child, then back home to Duluth Heights in a mad dash that can last far more than a hour.
As an alternative, reporters interview project sponsors, who are all too aware of the media’s limitations. People like Superintendent of Schools Keith Dixon hold all the trump cards in most every discussion of the Red Plan – even though the project will cost nearly a half-billion dollars. He fully understands complicated financial plans; reporters can’t even navigate the index.
Psychological factors
Despite numerous accusations, editors seldom if ever tell reporters they can’t write about stories favored by civic leaders. But reporters face psychological barriers.
What Duluth News Tribune reporter in her right mind, for example, would propose to pen a critical analysis of the high-speed rail plan – for which DNT News Director Robin Washington has been the lead cheerleader? Looking back a few years, the same question could have been asked when Dean Jacobus was a Technology Village consultant while his wife was DNT publisher. Or later when DNT Publisher Marti Buscaglia chaired a task force to save the aquarium.
It’s unlikely News Tribune reporters would admit to such intimidation, but they raised concerns internally about relationships between company execs and project sponsors – and were consistently ignored.
Today, of course, there are fewer reporters than in the past to chase stories of high community interest, and the numbers keep declining.
On the TV side, streamlining is most evident in the KBJR-KDLH newsroom. It would take a high-power microscope to unveil any difference between news coverage provided on one channel versus the other.
In print, the News Tribune continues to cut, and the most recent layoff proved embarrassing. Days after it occurred, Forum Communications’ CEO Bill Marcil was credited in USA Today for saying his company is having “one of our best years ever” after making some necessary staff reductions. But in an April 10 internal memo, Forum President Lloyd Case said Marcil was misquoted. If true, Marcil was misquoted by the best. The USA Today column was written by Al Neuharth, who founded the nationwide newspaper. Marcil, by the way, married into the Forum fortune.
This story was published in the April 24 Reader Weekly
Saturday, March 28, 2009
Red plan angst spreads into business community
By RON BROCHU
A Duluth real estate broker rang her hands last week when discussing the housing market. Bad enough that home sales have slowed to a trickle, but the school district’s Red Plan has many potential buyers wondering if they want their kids in Duluth public schools at all.
“Everyone is checking out private and parochial schools,” because they don’t like what ISD 709 proposes to offer," the broker said. People don’t want their kids bused across town, and they don’t want them bouncing between different schools each time Superintendent Keith Dixon tries to expedite Red Plan implementation. Those factors have made it more difficult to market homes in neighborhoods that traditionally had nearby schools.
“The board knows they have to push the plan forward now, because they’ll all be voted out of office at election time. People are livid!” the broker lamented.
Quite possibly, a court decision also could force district officials to rethink their strategy, which in essence has been to sidestep their own bidding rules and derail public input, opponents say. In a civil court action, Harry Welty, Laurence Burda, Dean Davidson, Robert Sershon and Art Johnston are challenging the school district’s right to give Johnson Controls Inc. a no-bid contract to provide professional services to implement the construction. Case law suggests such arrangements are illegal, Welty said.
According to a Dec. 14, 2006, letter from Johnson Controls to school district property and risk manager Kerry Leider, Johnson will receive 18.8 percent of construction costs as a management fee.
This is the plan Budgeteer columnist Ralph Doty on Sunday deemed “visionary.” In his column, he argued it will stimulate Duluth’s economy by creating construction jobs, even suggesting opponents would stall local economic progress while in the depths of an economic abyss – as if the Red Plan wasn’t divisive enough without adding fear-mongering to the equation. Fortunately, most people understand an alternative plan also would stimulate the construction industry.
In the same column, Doty also suggested Duluthians support the Red Plan three-to-one. If that were true, of course, board members wouldn’t fear submitting the $400+ million project to referendum, as the school district’s own hand-picked citizens’ panel recommended. But Dixon refused, alienating even staunch supporters. He knows the Red Plan doesn’t offer what people want at a price they can afford.
It promotes just the opposite, in fact. Under former Superintendent Julio Almanza, the school district hosted a weekend-long session to solicit community input. Smaller schools topped the priority list.
Today’s plan, however, is to build larger buildings and transport more kids than ever at a time when fuel costs are destined to climb. Moving forward, a growing share of taxpayer dollars will go toward busing instead of teaching.
There are numerous other flaws:
• The biggest mistake is dumping the Central High School-Secondary Technical Center complex and its surrounding fields. The site has space for parking, for athletics, and it’s centrally located. Best of all, it’s isolated from homes. Constant traffic and student frolicking pose no problem.
• Conversely, the miniature footprint at Ordean, the district’s next high school site, promises to disappoint. If developed as proposed, neighbors will display the same angst as those who formerly resided across West Fourth Street from Denfeld. For decades, they screamed about students disrespecting their property, which was sandwiched between the school and a Grand Avenue fast food joint. For years, wimpy Denfeld administrators refused to acknowledge the problem, much less address it.
• Stuffing 1,100 kids into each of two proposed middle schools creates an unruly situation when kids are at a volatile age. Parents whose children have attended Woodland, for example, heard constant talk about fights at the school, which for years has been packed like a can of sardines.
The fatal flaw, however, is the district’s relationship with Johnson Controls, opponents argue. Like many consultant deals, it encourages the contractor to find “problems,” real or imagined, Welty said.
Despite legal and other concerns, Dixon and school board supporters are digging in their heels, refusing to acknowledge the growing heap of concerns.
Lawsuit plaintiffs have called for an expedited trial schedule, arguing “…between now and the time of trial, untold amounts of taxpayer money may be spent on an unlawful contract.”
Author Ron Brochu archives his stories at www.ronbrochublog.com.
Story was originally published in the March 28 Northland Reader.
A Duluth real estate broker rang her hands last week when discussing the housing market. Bad enough that home sales have slowed to a trickle, but the school district’s Red Plan has many potential buyers wondering if they want their kids in Duluth public schools at all.
“Everyone is checking out private and parochial schools,” because they don’t like what ISD 709 proposes to offer," the broker said. People don’t want their kids bused across town, and they don’t want them bouncing between different schools each time Superintendent Keith Dixon tries to expedite Red Plan implementation. Those factors have made it more difficult to market homes in neighborhoods that traditionally had nearby schools.
“The board knows they have to push the plan forward now, because they’ll all be voted out of office at election time. People are livid!” the broker lamented.
Quite possibly, a court decision also could force district officials to rethink their strategy, which in essence has been to sidestep their own bidding rules and derail public input, opponents say. In a civil court action, Harry Welty, Laurence Burda, Dean Davidson, Robert Sershon and Art Johnston are challenging the school district’s right to give Johnson Controls Inc. a no-bid contract to provide professional services to implement the construction. Case law suggests such arrangements are illegal, Welty said.
According to a Dec. 14, 2006, letter from Johnson Controls to school district property and risk manager Kerry Leider, Johnson will receive 18.8 percent of construction costs as a management fee.
This is the plan Budgeteer columnist Ralph Doty on Sunday deemed “visionary.” In his column, he argued it will stimulate Duluth’s economy by creating construction jobs, even suggesting opponents would stall local economic progress while in the depths of an economic abyss – as if the Red Plan wasn’t divisive enough without adding fear-mongering to the equation. Fortunately, most people understand an alternative plan also would stimulate the construction industry.
In the same column, Doty also suggested Duluthians support the Red Plan three-to-one. If that were true, of course, board members wouldn’t fear submitting the $400+ million project to referendum, as the school district’s own hand-picked citizens’ panel recommended. But Dixon refused, alienating even staunch supporters. He knows the Red Plan doesn’t offer what people want at a price they can afford.
It promotes just the opposite, in fact. Under former Superintendent Julio Almanza, the school district hosted a weekend-long session to solicit community input. Smaller schools topped the priority list.
Today’s plan, however, is to build larger buildings and transport more kids than ever at a time when fuel costs are destined to climb. Moving forward, a growing share of taxpayer dollars will go toward busing instead of teaching.
There are numerous other flaws:
• The biggest mistake is dumping the Central High School-Secondary Technical Center complex and its surrounding fields. The site has space for parking, for athletics, and it’s centrally located. Best of all, it’s isolated from homes. Constant traffic and student frolicking pose no problem.
• Conversely, the miniature footprint at Ordean, the district’s next high school site, promises to disappoint. If developed as proposed, neighbors will display the same angst as those who formerly resided across West Fourth Street from Denfeld. For decades, they screamed about students disrespecting their property, which was sandwiched between the school and a Grand Avenue fast food joint. For years, wimpy Denfeld administrators refused to acknowledge the problem, much less address it.
• Stuffing 1,100 kids into each of two proposed middle schools creates an unruly situation when kids are at a volatile age. Parents whose children have attended Woodland, for example, heard constant talk about fights at the school, which for years has been packed like a can of sardines.
The fatal flaw, however, is the district’s relationship with Johnson Controls, opponents argue. Like many consultant deals, it encourages the contractor to find “problems,” real or imagined, Welty said.
Despite legal and other concerns, Dixon and school board supporters are digging in their heels, refusing to acknowledge the growing heap of concerns.
Lawsuit plaintiffs have called for an expedited trial schedule, arguing “…between now and the time of trial, untold amounts of taxpayer money may be spent on an unlawful contract.”
Author Ron Brochu archives his stories at www.ronbrochublog.com.
Story was originally published in the March 28 Northland Reader.
Saturday, February 28, 2009
Rolex revolutionaries buy freedom at bike store
By RON BROCHU
Four decades after their movement failed, former hippies are trying to recreate their past aboard loud, fast Hogs.
That thought emerged a thousand times at the Feb. 14 International Motorcycle Show in Minneapolis. The event was jammed with aging throwbacks who, after raising a passel of kids, are donning leather and straddling Harleys.
It’s not always a pretty picture. Come look: There’s Bill Clinton in a head wrap sizing up a Road King, and Hillary checking out leather vests in the apparel booth. By impersonating Sonny Barger, the legendary Hell’s Angels figurehead, aging Americans are searching for a counterculture Nirvana, that mythical place nobody quite found Back In The Day, when it became easier to drop out and turn on than to redefine the American Dream.
A $20,000 bike, of course, is just an expensive symbol. Like a Stratocaster, it’s worthless in the wrong hands. And face it: Most Harleys are in the hands of overstuffed execs who trailer their bikes to Sturgis behind Escalades, riding them just the last few miles – after they swap their monogrammed shirts for brand-name leather costumes. If confronted by real bikers, they wouldn’t survive the first blow to their capped teeth.
Nonetheless, prosperous suburbanites don’t embarrass easily. They’re cool with buying freedom at a bike store, hideously resembling Fred and Ethel Mertz wrapped in cowhide.
It’s just the latest form of escapism in a society hell-bent on having fun while Washington burns. Earlier came snowmobiles and ATVs – machines well suited for a society awash in cheap fuel and environmental disregard. Ignored were loftier goals, such as being good citizens by monitoring the political process, running for office and forcing incumbents into early retirement.
Our disregard has been our downfall. It’s been a fine party, but let’s be clear: While we played, our country putrefied.
Tardy or too late?
Real freedom can’t be purchased, nor can respect. You have to fight for both, but at some point, Americans stopped fighting for anything that didn’t involve personal pleasure or amusement.
Duluthians, for instance, have spent more time haggling over the Lakewalk extension than street repair, expended more effort to saving Lake Superior Zoo than ridding the harbor of invasive species. Our priorities are completely whacked.
On a broader front, the American Dream ran amok, with a majority of people refusing to accept personal responsibility for our collective plight. Instead, we’ve sought pleasure through role play, whether aboard a lightning-fast sport bike, playing Guitar Hero or mindlessly gaming on cell phones. Sure as sunrise, we disregarded all need to sacrifice for the common good.
Just one question: Is it too late to change? Can decades of high life and cheap decadence be reversed? Is America ready?
Hell no.
• Higher state and federal taxes? You’ve got to be kidding! We want to pay less and complain more.
• Reduced public employee benefits? Go fish! Public employee unions control City Hall and care less about taxpayers, despite looming deficits.
• Mainstream media owned and operated by locals rather than carpetbaggers? Much needed, but it ain’t gonna happen.
• Muffled Harleys? Don’t bet your sweet earplugs! The stairway to badass heaven will remain surrounded by thunder.
Yet, we’re at a tipping point. Something must change. Even cheap Nirvana is too costly as the country teeters on bankruptcy. And the worst is yet to come.
• The next shock will appear on our first quarter 401(k) statements. As If December results weren’t bad enough, the markets have dived every time President Obama unveiled new bailout initiatives. Pensions are dwindling faster than hope.
• As unemployment soars, millions inch closer to credit card default. That could be the final straw for big banks that already are destined to topple. How many bailouts can our great grandchildren afford?
• Domestic automakers are destined to fail without a significant infusion of public money. While Detroit seems far away, it’s the major consumer of Minnesota’s iron ore. If one of the big three go under, the regional economy will be slapped hard.
Where do we ride now? Have you heard of the dreaded high-side crash? Hope you wore a helmet and chaps.
FULL DISCLOSURE:Author Ron Brochu rides a 1990 Harley XL1200, which spends more time in repair than on the road, thanks to hideously poor design. But it’s cheap transportation and easy to fix. Brochu archives his articles at www.ronbrochublog.com.
Congress manufacturing sleeper cells
By RON BROCHU
Revolution was a frequent topic in the 1960s, but the threat is far greater today.
Average people are much more desperate and disgusted than our detached leaders comprehend – even during quiet moments between ongoing feedings of white wine and quiche with healthcare lobbyists. From Duluth to Tonawanda, highly educated, experienced people can’t find employment; retirees are struggling to survive as their 401(k) balances vaporize; college kids, burdened by massive tuition debt, have little chance of getting their heads above water before midlife. Widespread discontent is beginning to fester.
After caving in for decades to excessive union demands, cities, counties and states suddenly find themselves broke and gasping for bundles of cash to fund expensive benefits that are beyond reach to non-government workers. Programs that serve the poor are in danger of being severely trimmed or discontinued, while common taxpayers must be extra fees to receive services that should be covered by their existing levy. Mainstream workers have grown tired of picking up the pieces.
Still, the Washington banter remains partisan and deconstructive. During the Bush administration, Congress hastily advanced an ill-thought economic rescue plan that already has failed. Despite a staggering price that will choke future generations, it merely helped big banks grow bigger while continuing to perk underachieving executives. Even worse, the massive handout featured the same lack of oversight that originally dragged America into recession.
President Obama’s new plan thrusts the country far deeper into debt but smells heavily of a liberal feeding frenzy. Despite quick passage, virtually everyone anticipates failure.
And for good reason. Just take at look at Duluth’s “stimulus” proposal. Here’s a quick way to spend a quarter-billion of your dollars: Get the feds to fund the school district’s ill-thought and overpriced Long Range Facilities Plan; build a new airport terminal (as if the existing one isn’t big enough to serve one airline); improve airport runways and roads; construct a joint public safety facility and enhance public transportation infrastructure.
The outcome? Create 2,300 jobs – all in construction-related trades. According to 2007 Census estimates, that would provide employment for every Duluth construction worker, plus a few more. Interestingly, 92.6 percent of them are men; apparently women don’t need jobs.
Not all of the local requests are included in our list, but the remainder lean heavily toward more of the same. Basically, it’s the city’s list of state legislative bonding requests.
In essence, it’s a hastily assembled wish list that, coincidently, would create jobs for unions that contribute heavily to whichever party is in power. It’s not a thoughtfully created list of projects that would assist a broad spectrum of unemployed workers in a vast array of professions.
Thus far, Americans have remained passive about Washington’s failure to lead – so much so that most people don’t understand the long-term apathy; hopefully, that behavior won’t become passive-aggressive. But given the widespread pain and discontent, people may begin to act out their frustrations for a variety of reasons:
Lawlessness could be an early sign that American life is running amok. Theft already is on the rise as poor people struggle to survive with less and less. It will increase if the middle class loses its footing, its homes and its future.
As national debt grows in tandem with illegal immigration, more and more citizens could refuse to pay their taxes, either in protest or for lack of money. Tax collection or property confiscation efforts would only fuel middle class angst.
If this scenario proves true, well-heeled Americans could pack up the car and move abroad – creating massive out-migration of financial resources. Well-educated young people might follow, taking their skills to more-stable countries while abandoning their college loans. That would dump America’s troubles on those who are stuck behind – the abandoned middle class and growing numbers of poorly educated impoverished people.
Could it really happen? Only time will tell, but we’re off to a great start.
The promise of an Obama presidency brought hope to many, but early evidence suggests he’s just another party hack bent on serving his closest supporters while common citizens pay for the party.
Author Ron Brochu is mad as hell and won’t take it anymore. He archives his rants at www.ronbrochublog.com, where your comment is always welcome.
Revolution was a frequent topic in the 1960s, but the threat is far greater today.
Average people are much more desperate and disgusted than our detached leaders comprehend – even during quiet moments between ongoing feedings of white wine and quiche with healthcare lobbyists. From Duluth to Tonawanda, highly educated, experienced people can’t find employment; retirees are struggling to survive as their 401(k) balances vaporize; college kids, burdened by massive tuition debt, have little chance of getting their heads above water before midlife. Widespread discontent is beginning to fester.
After caving in for decades to excessive union demands, cities, counties and states suddenly find themselves broke and gasping for bundles of cash to fund expensive benefits that are beyond reach to non-government workers. Programs that serve the poor are in danger of being severely trimmed or discontinued, while common taxpayers must be extra fees to receive services that should be covered by their existing levy. Mainstream workers have grown tired of picking up the pieces.
Still, the Washington banter remains partisan and deconstructive. During the Bush administration, Congress hastily advanced an ill-thought economic rescue plan that already has failed. Despite a staggering price that will choke future generations, it merely helped big banks grow bigger while continuing to perk underachieving executives. Even worse, the massive handout featured the same lack of oversight that originally dragged America into recession.
President Obama’s new plan thrusts the country far deeper into debt but smells heavily of a liberal feeding frenzy. Despite quick passage, virtually everyone anticipates failure.
And for good reason. Just take at look at Duluth’s “stimulus” proposal. Here’s a quick way to spend a quarter-billion of your dollars: Get the feds to fund the school district’s ill-thought and overpriced Long Range Facilities Plan; build a new airport terminal (as if the existing one isn’t big enough to serve one airline); improve airport runways and roads; construct a joint public safety facility and enhance public transportation infrastructure.
The outcome? Create 2,300 jobs – all in construction-related trades. According to 2007 Census estimates, that would provide employment for every Duluth construction worker, plus a few more. Interestingly, 92.6 percent of them are men; apparently women don’t need jobs.
Not all of the local requests are included in our list, but the remainder lean heavily toward more of the same. Basically, it’s the city’s list of state legislative bonding requests.
In essence, it’s a hastily assembled wish list that, coincidently, would create jobs for unions that contribute heavily to whichever party is in power. It’s not a thoughtfully created list of projects that would assist a broad spectrum of unemployed workers in a vast array of professions.
Thus far, Americans have remained passive about Washington’s failure to lead – so much so that most people don’t understand the long-term apathy; hopefully, that behavior won’t become passive-aggressive. But given the widespread pain and discontent, people may begin to act out their frustrations for a variety of reasons:
- • The beltway stench grows worse and worse. Recent national elections demonstrate people want to throw the bastards out – the Republicans one year, Democrats the next. Each time, the incoming party is a mere clone of its predecessor. People are coming to realize that everyone in Congress is owned by special interests. Power means everything, constituents mean nothing.
• Politicians and economists alike believe Obama’s latest plan won’t be the last. Another massive bailout will be proposed before 2009 ends, raising skepticism even faster than domestic debt.
• Deficit spending eventually will devalue the dollar, fueling inflation faster than federal presses can print greenbacks. Inflation will outpace wage growth, further decreasing the quality of life for average people.
• Medicare and Medicaid costs will continue to grow, and lawmakers won’t work together to repair the ailing plans.
• Bought and controlled by the medical industry, Congress won’t address health care reform, even as constituents fall through the cracks and silently grow livid.
• Taxes inevitably will have to rise as the country struggles on multiple fronts to solve problems politically rather than intellectually. Eventually, everyone will be forced to repay the cost of Washington’s political ineptitude.
Lawlessness could be an early sign that American life is running amok. Theft already is on the rise as poor people struggle to survive with less and less. It will increase if the middle class loses its footing, its homes and its future.
As national debt grows in tandem with illegal immigration, more and more citizens could refuse to pay their taxes, either in protest or for lack of money. Tax collection or property confiscation efforts would only fuel middle class angst.
If this scenario proves true, well-heeled Americans could pack up the car and move abroad – creating massive out-migration of financial resources. Well-educated young people might follow, taking their skills to more-stable countries while abandoning their college loans. That would dump America’s troubles on those who are stuck behind – the abandoned middle class and growing numbers of poorly educated impoverished people.
Could it really happen? Only time will tell, but we’re off to a great start.
The promise of an Obama presidency brought hope to many, but early evidence suggests he’s just another party hack bent on serving his closest supporters while common citizens pay for the party.
Author Ron Brochu is mad as hell and won’t take it anymore. He archives his rants at www.ronbrochublog.com, where your comment is always welcome.
Thursday, February 19, 2009
Some industries deserve regulation
By RON BROCHU
The best way to make a buck in Duluth is to launch a company that uses law enforcement to generate business and strong arm customers.
Say what? How can that be?
Here and in many other areas, these perks are enjoyed by those in the towing/impound biz, a largely unregulated trade that allows some operators to rip off the public while cops turn their back.
Several versions of the game are played every day. One of them involves an expensive shakedown of drivers who park in snow removal zones. It happens like this.
For one reason or another, some folks park in zones marked for snow removal, even though the operation is advertised (in publications they never read) and “no parking” signs are posted. They probably could have avoided a tow.
Later, they find their vehicle missing, then call or visit police. That’s when they discover the equivalent of a ransom scheme. To get their car back, they first need to get release documents from police. But after hoofing it to PD, people learn the release tag can only be provided if they present proof of insurance.
Authorities, of course, urge people to keep proof of insurance in their glove box. So, without their car, parking violators must hoof it to a bus or an impound lot, meet with the owner, remove the insurance card from their car, then tread back to Police HQ.
Impound lots, by the way, aren’t located in spiffy areas. Expect to walk down an alley in an unkempt part of town.
The second trip to impound is the most depressing. It’s when you learn the high cost of lodging an automobile. A few hours behind a chain link fence can cost more than a weekend at the Radisson. If you leave your car there for a day or two, better dig into your Christmas Club account or be prepared to forfeit your title.
Don’t expect to see a rate card conspicuously posted. A sympathetic lot owner might give you a break, but a grump might burn your butt just for the sport of it. Best bet: avoid an argument and don’t flaunt your Rolex.
The game can also go like this. You’re in a collision, and the car is disabled. If it’s blocking traffic, emergency dispatchers will call the first tow truck available, despite the operator’s reputation. If you have a preference or auto club membership, forget it.
I played this game nearly two years ago. My auto was towed to a locked outdoor facility, where an adjuster declared it a total loss. When retrieving personal belongings, several things were missing, including a $200 sleeping bag, FM transmitter and an antique religious pendant. In a subsequent phone call, the tow operator denied anything was missing and loudly slammed the received into his phone cradle.
Then came the lesson about the relationship between police and the tow business. After reporting the missing items to authorities, I was told that anybody could have climbed the impound lot’s fence, and I’d need an eyewitness to identify who burglarized my vehicle. It’s “a civil matter” and authorities wouldn’t do anything, they said, washing their hands of the situation. My only recourse was a small claims suit. Although the impound yard was in Duluth, the operator resided in another state. Any lawsuit would have required me to take time off from work to plead my case before the defendant’s home town judge for a fee of about $80. The odds stunk.
Having an acquaintance in the tow business proved informative. I learned some companies immediately inventory vehicle contents and place them under lock and key.
That’s not required, however. Only top operators go the distance for their customers.
I also learned that nearby communities did very little business with the driver who towed my vehicle. After receiving numerous complaints about missing possessions, they moved his name to the bottom of their call list, a local police chief told me.
But not in Duluth, which (incorrectly) views itself as progressive. It seemed logical, therefore, to address the situation. So I contacted city councilors about the need for regulation. All of them responded to my letter, some even expressing sympathy, but my plea fell from their memory quicker than Gary Doty’s lame administration.
Police Chief Gordon Ramsey referred the matter to an assistant chief, who was to contact me within a few days. It never happened.
The situation is even worse in rural areas, a distressed motorist told me several months later. His pick-up broke down and was towed in rural northwestern Wisconsin, even though he left a note on the windshield saying he’d return within minutes. He claimed it was driven off the state road, yet it was towed and he was forced to pay several hundred bucks to get it back.
This individual alleged the tow operator was paying a kickback to his county sheriff, but it was impossible to prove. Similar arrangements, however, are common in the car repair business. While investigating a franchise opportunity a few years back, the franchisor’s representative taught me the value of working with tow truck drivers. When picking up a dead car, they “highly recommend” your shop, and convince the distraught motorist it’s the best place to fix their vehicle. In turn, the shop pays the truck driver an instant stipend. A nice cash deal.
There are many honest operators in the tow business, but high ethics aren’t universal. Until city councilors tackle the problem (don’t hold your breath), motorists would be wise to ask where their vehicle will be stored, at what cost and whether their possessions will be kept under lock and key. If not, make a big fuss and demand responders contact another tow. State your concerns and hold your ground.
It worked for me recently when the same tow that “lost” my possessions was sent to an accident involving a relative. I voiced my concerns and the traffic officer sent him packing when my AAA truck arrived.
Author Ron Brochu archives his articles at www.ronbrochublog.com, which is linked to several local and regional political blogs.
Published in the Feb. 13, 2009 Northland Reader
The best way to make a buck in Duluth is to launch a company that uses law enforcement to generate business and strong arm customers.
Say what? How can that be?
Here and in many other areas, these perks are enjoyed by those in the towing/impound biz, a largely unregulated trade that allows some operators to rip off the public while cops turn their back.
Several versions of the game are played every day. One of them involves an expensive shakedown of drivers who park in snow removal zones. It happens like this.
For one reason or another, some folks park in zones marked for snow removal, even though the operation is advertised (in publications they never read) and “no parking” signs are posted. They probably could have avoided a tow.
Later, they find their vehicle missing, then call or visit police. That’s when they discover the equivalent of a ransom scheme. To get their car back, they first need to get release documents from police. But after hoofing it to PD, people learn the release tag can only be provided if they present proof of insurance.
Authorities, of course, urge people to keep proof of insurance in their glove box. So, without their car, parking violators must hoof it to a bus or an impound lot, meet with the owner, remove the insurance card from their car, then tread back to Police HQ.
Impound lots, by the way, aren’t located in spiffy areas. Expect to walk down an alley in an unkempt part of town.
The second trip to impound is the most depressing. It’s when you learn the high cost of lodging an automobile. A few hours behind a chain link fence can cost more than a weekend at the Radisson. If you leave your car there for a day or two, better dig into your Christmas Club account or be prepared to forfeit your title.
Don’t expect to see a rate card conspicuously posted. A sympathetic lot owner might give you a break, but a grump might burn your butt just for the sport of it. Best bet: avoid an argument and don’t flaunt your Rolex.
The game can also go like this. You’re in a collision, and the car is disabled. If it’s blocking traffic, emergency dispatchers will call the first tow truck available, despite the operator’s reputation. If you have a preference or auto club membership, forget it.
I played this game nearly two years ago. My auto was towed to a locked outdoor facility, where an adjuster declared it a total loss. When retrieving personal belongings, several things were missing, including a $200 sleeping bag, FM transmitter and an antique religious pendant. In a subsequent phone call, the tow operator denied anything was missing and loudly slammed the received into his phone cradle.
Then came the lesson about the relationship between police and the tow business. After reporting the missing items to authorities, I was told that anybody could have climbed the impound lot’s fence, and I’d need an eyewitness to identify who burglarized my vehicle. It’s “a civil matter” and authorities wouldn’t do anything, they said, washing their hands of the situation. My only recourse was a small claims suit. Although the impound yard was in Duluth, the operator resided in another state. Any lawsuit would have required me to take time off from work to plead my case before the defendant’s home town judge for a fee of about $80. The odds stunk.
Having an acquaintance in the tow business proved informative. I learned some companies immediately inventory vehicle contents and place them under lock and key.
That’s not required, however. Only top operators go the distance for their customers.
I also learned that nearby communities did very little business with the driver who towed my vehicle. After receiving numerous complaints about missing possessions, they moved his name to the bottom of their call list, a local police chief told me.
But not in Duluth, which (incorrectly) views itself as progressive. It seemed logical, therefore, to address the situation. So I contacted city councilors about the need for regulation. All of them responded to my letter, some even expressing sympathy, but my plea fell from their memory quicker than Gary Doty’s lame administration.
Police Chief Gordon Ramsey referred the matter to an assistant chief, who was to contact me within a few days. It never happened.
The situation is even worse in rural areas, a distressed motorist told me several months later. His pick-up broke down and was towed in rural northwestern Wisconsin, even though he left a note on the windshield saying he’d return within minutes. He claimed it was driven off the state road, yet it was towed and he was forced to pay several hundred bucks to get it back.
This individual alleged the tow operator was paying a kickback to his county sheriff, but it was impossible to prove. Similar arrangements, however, are common in the car repair business. While investigating a franchise opportunity a few years back, the franchisor’s representative taught me the value of working with tow truck drivers. When picking up a dead car, they “highly recommend” your shop, and convince the distraught motorist it’s the best place to fix their vehicle. In turn, the shop pays the truck driver an instant stipend. A nice cash deal.
There are many honest operators in the tow business, but high ethics aren’t universal. Until city councilors tackle the problem (don’t hold your breath), motorists would be wise to ask where their vehicle will be stored, at what cost and whether their possessions will be kept under lock and key. If not, make a big fuss and demand responders contact another tow. State your concerns and hold your ground.
It worked for me recently when the same tow that “lost” my possessions was sent to an accident involving a relative. I voiced my concerns and the traffic officer sent him packing when my AAA truck arrived.
Author Ron Brochu archives his articles at www.ronbrochublog.com, which is linked to several local and regional political blogs.
Published in the Feb. 13, 2009 Northland Reader
Sunday, January 25, 2009
Bush doctrine strangled Northland residents
By RON BROCHU
Since the 1960s, Duluth-Superior has seldom been uttered in the same breath as “prosperity,” so residents have grown not to expect much beyond inherent natural beauty and the clean, safe environment. But today’s challenge is much more difficult than usual, thanks to debilitating policies promoted by the Bush administration.
While corporate executives floated to soft landings beneath their golden parachutes:
Meanwhile:
Pain regionally and nationwide was triggered by federal decisions designed to generate baskets of money for people just like Bush—those who benefit when government turns its back on long-standing lending and investment regulations. When the house of cards finally toppled, even the wealthy couldn’t recover their losses, forcing Washington to bail out their best campaign contributors.
While combining free market nonsense with delusions of grandeur, he dragged America out of the fast lane straight into a gaping sinkhole that’s devouring middle class dreams from Pennsylvania Avenue to Skyline Parkway.
According to MSN Money, his presidency cost the country about $11.5 trillion. In contrast, the United States had a $150 billion surplus when President Bill Clinton left office.
Nobody escaped the financial trauma inflicted by the unnecessary $3 trillion Iraq war and multi-billion-dollar bailouts designed to salvage irresponsible Wall Street banks and brokers. Each of us has a story.
About the time Bush Too was elected, I covered northwestern Wisconsin as a business reporter. My stories focused on an overheated economy. Resorts and restaurants from Hayward to Grand Marais were hiring foreign students because full employment had created a shortage of local workers. Fast food joints were paying a couple bucks over minimum wage just to cover their shifts. Property values, particularly for lake parcels, were climbing out of sight. Times were good, but much has changed.
Like many others, my earnings today have declined versus 2001, considering inflation. Like society’s aspirations, journalism and the quest for truth stumbled badly during the Bush presidency, tripped by years of top-level skullduggery that threatened freedom and privacy. The raging economy has been replaced by raging unemployment, record profits by record foreclosures.
Even worse, most educated people, including President Barack Obama, say the worst is yet to come.
My mailbox in December contained a letter from Wells Fargo that illustrates how Bush and his reckless advisors infected the worlds of government and business.
“In a recent account review, we noticed that you have not used your line of credit…for over a year. Since your account was inactive…it has been closed,” wrote corporate vice president Richard Nelson.
His words reflect a rather strange arrogance, considering that Uncle Sam invested $25 billion in Wells Fargo to ensure customers would continue to receive credit. But hubris and corporate handouts walked hand-in-hand during the Bush years – at least for the president’s friends. Firms like Blackwater and Halliburton exhibited both traits with impunity, so why not financial institutions?
Supported by the Troubled Assets Relief Program (“The Bailout”), Wells Fargo followed the most troubling path, purchasing Wachovia Corp., which was choking on toxic investments. The purchase nudged Wells Fargo closer to becoming the nation’s largest bank, increasing its corporate stature. But the investment hasn’t impressed stockholders. Trading at $44.30 on Sept. 19, the bank’s stock price has fallen to the $18-$19 range, contributing to its new credit conservatism. The stated intent of TARP, however, was to loosen credit and spark rebounds in the ailing real estate and automotive sectors.
Since the 1960s, Duluth-Superior has seldom been uttered in the same breath as “prosperity,” so residents have grown not to expect much beyond inherent natural beauty and the clean, safe environment. But today’s challenge is much more difficult than usual, thanks to debilitating policies promoted by the Bush administration.
While corporate executives floated to soft landings beneath their golden parachutes:
- 1,900 residents of St. Louis and Douglas counties lost their jobs from January through November, about 1.4 percent of the workforce.
- 7 percent of Duluthians had no jobs in November, according to the latest figures, the highest rate in nearly five years.
Meanwhile:
- Minnesota’s jobless rate climbed to 6.4 percent – double the 3.2 percent when Bush was inaugurated in January 2001.
- Wisconsin’s rate was 5.6 percent compared with 3.7 percent when Bush took office.
Pain regionally and nationwide was triggered by federal decisions designed to generate baskets of money for people just like Bush—those who benefit when government turns its back on long-standing lending and investment regulations. When the house of cards finally toppled, even the wealthy couldn’t recover their losses, forcing Washington to bail out their best campaign contributors.
Dangerously dumbIf lies were money, George Bush would have become the world’s richest man instead of an icon for blissful ineptitude and failure.
While combining free market nonsense with delusions of grandeur, he dragged America out of the fast lane straight into a gaping sinkhole that’s devouring middle class dreams from Pennsylvania Avenue to Skyline Parkway.
According to MSN Money, his presidency cost the country about $11.5 trillion. In contrast, the United States had a $150 billion surplus when President Bill Clinton left office.
Nobody escaped the financial trauma inflicted by the unnecessary $3 trillion Iraq war and multi-billion-dollar bailouts designed to salvage irresponsible Wall Street banks and brokers. Each of us has a story.
About the time Bush Too was elected, I covered northwestern Wisconsin as a business reporter. My stories focused on an overheated economy. Resorts and restaurants from Hayward to Grand Marais were hiring foreign students because full employment had created a shortage of local workers. Fast food joints were paying a couple bucks over minimum wage just to cover their shifts. Property values, particularly for lake parcels, were climbing out of sight. Times were good, but much has changed.
Like many others, my earnings today have declined versus 2001, considering inflation. Like society’s aspirations, journalism and the quest for truth stumbled badly during the Bush presidency, tripped by years of top-level skullduggery that threatened freedom and privacy. The raging economy has been replaced by raging unemployment, record profits by record foreclosures.
Even worse, most educated people, including President Barack Obama, say the worst is yet to come.
My mailbox in December contained a letter from Wells Fargo that illustrates how Bush and his reckless advisors infected the worlds of government and business.
“In a recent account review, we noticed that you have not used your line of credit…for over a year. Since your account was inactive…it has been closed,” wrote corporate vice president Richard Nelson.
His words reflect a rather strange arrogance, considering that Uncle Sam invested $25 billion in Wells Fargo to ensure customers would continue to receive credit. But hubris and corporate handouts walked hand-in-hand during the Bush years – at least for the president’s friends. Firms like Blackwater and Halliburton exhibited both traits with impunity, so why not financial institutions?
Supported by the Troubled Assets Relief Program (“The Bailout”), Wells Fargo followed the most troubling path, purchasing Wachovia Corp., which was choking on toxic investments. The purchase nudged Wells Fargo closer to becoming the nation’s largest bank, increasing its corporate stature. But the investment hasn’t impressed stockholders. Trading at $44.30 on Sept. 19, the bank’s stock price has fallen to the $18-$19 range, contributing to its new credit conservatism. The stated intent of TARP, however, was to loosen credit and spark rebounds in the ailing real estate and automotive sectors.
Lies and damned liesSo far, $350 billion in TARP money has flowed from taxpayers to big business with few strings attached, and without any meaningful administrative restraint.
The inattentive gatekeepers included Treasury Secretary Henry Paulson, the TARP czar unhindered by traditional inconveniences such as congressional oversight, and also the Fed, which has refused to reveal which companies are receiving TARP welfare. But accountability was never important to Bush or his ilk, as Americans learned when weapons of mass destruction were never found in Iraq and torture was secretly sanctioned in Abu Ghraib. Nobody in Washington was ever deemed responsible. Quite the opposite, in fact. Recall that Bush praised Donald Rumsfeld even as the outgoing defense secretary resigned in obvious disgrace.
The fallout, unfortunately, is landing everywhere. Local residents have lost millions in their retirement accounts as stock prices precipitously decline. That forces retirees to spend less at malls, grocery stores, car lots and other places that provide jobs for working age residents. Food shelves are suffering from fewer donations, and the same can be said of other charities that support poor and homeless people throughout the Twin Ports.
Meanwhile, joblessness and uncertainty have convinced many that now isn’t the time to change homes or buy new vehicles. Even those who are still employed fear the recession could deepen, and their instinct is to spend less.
That’s grim news in a metro that was on the rebound. Residential construction in Duluth-Superior has stopped, with some new condo and townhome units sitting unoccupied for months. Talk has ceased about the potential Murphy Oil refinery expansion, as the possibility of finding a multi-billion-dollar private investor has virtually disappeared. Even a downtown walk along Superior Street reflects the downturn, the Athletic Club Deli being the latest victim.
It’s bad enough that some presidents – Richard Nixon, Jimmy Carter, Gerald Ford – didn’t live up to expectations. George W. Bush, however, whipped America into a tailspin from which we may not recover. At the very least, our offspring will be paying the price for decades, and have nothing to show for it.
Published in the Jan. 23, 2009, Northland Reader
Author Ron Brochu archives his stories at www.ronbrochublog.com, where your comment is encouraged.
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