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The need for further local and state fiscal controls

The Indiana General Assembly election results are very encouraging. Economic issues, I believe, will be central for the 2011 legislative session. I do believe there needs to be a discussion from the General Assembly regarding a couple of central fiscal issues to local government.

With the approval of property tax caps to the Indiana Constitution, the GA must address the up-and-down cycles of business that naturally happens. The general economy will always have its cycles of expansion and retraction. Associated with economic cycles come the tax revenue increases and decreases. Many local government services were dependent on local property taxes. That issue is now changing. Many of these services are dependent on revenues from the state. The increase of sales tax was the offset to property tax caps. Sales tax revenue will follow the economic cycles. The GA must look to smooth out the disbursement of revenues to local governments.

This should include greater expansion and controls on the use of local “Rainy Day” funds. The use of these temporary savings accounts should have greater definition regarding the amount (percentage or dollar) that can actually be accumulated and then also how and when these funds should actually be used.

I ask local legislators to begin an in-depth discussion and evaluation of this issue.

An option for New Haven public schools

A few months ago I wrote about my defense as a school board member of East Allen County Schools. Much of this directly revolves around the economic forecasts of not only EACS, but public education throughout Indiana.

Now the debate has become focused on New Haven’s mayor advocating the possible secession of the city’s schools from EACS. I won’t discuss the educational reasons the mayor has listed for the proposal because I agree with many of them.

When I was a board member, General Fund revenues were generated by local property taxes. Now they come from the state based on student populations. The money now follows the student. This is a significant change because local school districts’ budgets are dependent on the state’s economy and financial status. Again, I am not going into the pros and cons of this change. The significant change is that student tuition follows the student throughout the state, not being generated from property taxes within the school district.

When I was in my last term on the board, the state authorized the limited existence of charter schools. I favored this because it created a competitive environment for public education. Charter student populations continue to increase in the Ft. Wayne area. This represents a significant budget loss for the local school districts. Yet, they continue to silently ignore this competition. They complain that budgets are in decline, yet fail to admit that charters are taking that money from them. There must be perceived reasons – real or not – why parents are using this option to educate their children.

I say all of this because a possible secession from the school district will hinge on the financing of the school district. As this issue is researched, would a new school district be able to afford a duplicative administrative structure? Doubtful. Would a new school district be immune from current capital debt obligations? Would they be trying to create new debt while paying for old at the same time? How does that protect local taxpayers? Starting a new school district means hiring an entirely new administrative structure, new classroom teaching structure, educational supplies, books, etc. A support staff would also be needed. Hire your own or contract for services? Perhaps contract with the old school district for support services. Can an entire K-12 program be created new for a community in a period of weeks? Doubtful.

The alternative which I suggested to the mayor a couple of months ago, but he dismissed at the time, was to pursue charter school management companies to implement a progressive program to meet the educational goals of the community. Companies could literally create competing programs designed to meet precisely the needs and desires a community would outline. Technically, the mayor has no authority to start charter schools, but if the area is fertile for a charter school, a management company could get authorization through Ball State University. Much – if not all – of the administrative work would be completed by the charter company. The state student tuition would follow the student. This option could be implemented much quicker than trying to establish an entirely new school district.

I agree with the mayor’s end goals – better educational opportunities for New Haven residents. Since my input was not sought, I offer it here to the public.

My "I Understand Now" Moment

“By the sweat of your face
You will eat bread,
Till you return to the ground,
Because from it you were taken;
For you are dust,
And to dust you shall return."

Genesis 3:19

- God speaking to Adam & Eve after the revelation of their disobedience.

Yesterday I had a moment that made that verse VERY real. Some people may equate this nothing more than a pre-schooler discovering the switch on a flashlight can turn on and off the light.

I usually shave with a blade but occasionally use the electric razor for my lazy moments – even though the blade really is faster. Anyway, I don’t usually empty the electric razor of whiskers after every shave. I emptied it into the sink yesterday and it had more than I expected. First noticeable fact – the color of the whiskers – gray.

The next fact is important. I rubbed the whiskers in my fingers and it felt just like fine sand. From a sandbox. I know this sounds a bit kooky, but that is when I realized what I am made of and where my shell will return.

Our lives are short and our bodies are made of basic materials from the earth. What makes us different from everything around us is the soul within that seeks to connect with its Creator. Unfortunately, many people do not make that connection during their living hours. Don’t delay - know that God has creatively made us to worship Him.

In defense of myself as a school board member

During the current debate over East Allen County Schools’ financial problems, there seems to be one recurring comment: many of these problems were caused by previous school board inaction.

Since I served on the board from 1992 – 2004, I feel many of the accusations are untrue. Since board decisions are obviously made by a majority of board members, whether I voted in the majority or not, the accusations still hit at me. There were also times and decisions that I participated in that in retrospect wish were made differently. Regardless, there were many issues that I supported that I felt – and still do – made the school district better.

When I joined the board, the district was in a financial mess. All employee groups were underpaid comparable to local competing school districts. Within four years that had been corrected. We were on par or ahead in a pay scale of neighboring districts.

When we hired a new superintendent in 1995, many transformational events took place. He was truly an “outside-the-box” thinker and recommended many new ideas that I supported. There were a few that I couldn’t support, many of them minor, but the most significant was the proposal to close New Haven Elementary. I vocally opposed that. And won. I would also point out that there were members of the New Haven community at that time that actually supported its closure.

During the 1990’s, student population growth was very slow. The plant closing of International Harvester a decade earlier had a significant impact on student population and the overall budget. There was stability. Although a local newspaper writer would always include a set of accusations against the district in virtually every one of her reports: the school district continued to suffer from declining enrollments and was guilty of racial isolation. Neither were true, but the public bought into them and still do somewhat.

While the board was accused of only being there to ensure the status quo of maintaining facilities, I pursued a goal of improving student academic achievement, recognition, expanded learning opportunities, parent input, and professional development.

I suggested that at the beginning of each school year classroom teachers provide a general syllabus – similar to one in college classes - for parents as a means to be more involved in what was happening in the classroom. Even though there was significant resistance from the teachers and administrators, we got it through. Beyond my expectations, the idea eventually expanded to include online access for parents to view weekly classroom assignments and eventually a reporting system for assignment grades of the students that parents could view. There was also a direct email access for parents to the teachers. Our school district was the leader in the county for this unique access between the parents and the classroom. I believe this was the greatest achievement as a member of the board.

When entering any of our high schools, each had a large display area dedicated to historical athletics, as do most high schools. While I had no problem with that, there was virtually no praise for academics. I proposed that there exist an area for recognition for current and past valedictorians and salutatorians. Only one school made an effort to equate the size of that with sports. Isn’t that what school is for? Academic achievement and recognition. The board also instituted a recognition reception for each year’s vals/sals and their families.

Some other items that I was responsible for: advanced communication between facilities that allowed for classes to interact between facilities. College classes were offered for students through this system. We expanded the college connection program for eligible students so they may gain both high school and college credits. Instituted a continuous improvement program for classroom teachers. Some thought it to be excessive evaluations, but rather an opportunity to offer critique to other methods of instruction. In the area of the budget, I notified the district that they could establish a rainy day fund that many other governmental agencies had. The business manager was not aware of the recent laws allowing for this budget line item. We improved the heating and air conditioning systems in every facility. Several had no air conditioning and we had that installed – New Haven Elementary being the most notable. I was the one that suggested and saw to the improvements in the needed lighting updates for the New Haven HS football field. During the late 1990’s, the local hazardous waste dump facility wanted to expand. The mayor of New Haven at the time was fighting in court to stop it (and won). The company apparently had made overtures to the district asking for our support of the facility – less than a couple of miles from some of our school facilities – in exchange for some financial donations. I was adamantly opposed to this.

There were some other issues that on reflection I wish had been done differently, but didn’t know how. I did stand to improve the school district. I defended it when it was justified and criticized it when needed. I also feel one aspect of my role as an elected official was to represent voters, listen to their concerns and solve issues effectively. I may not have always satisfied every individual, but I was pleased at the many issues that were resolved.

In all, I feel I performed more than adequately in my role as school board member and find it very disconcerting that I have been maligned or “thrown under the bus” to advance an agenda for today.

That’s my story and I’m sticking to it!

East Allen County Schools meeting (and what went wrong)

Last night the East Allen County (EACS) school board voted to pursue the option of letting voters increase their property taxes to maintain a status quo school system. That is what the mainstream media is reporting. There were many other events that took place that need to be told. I do want to say that I think some school realignment should take place. But that should take place with current facilities, not building new ones.

First, the board has instituted a time limit for members of the public to address the board. Three minutes. That’s it. When you hit the limit, they cut you off immediately. They did this to me last month. I was granted somebody else’s time when he chose not to speak. Last night they cut off the mayor of New Haven. A certain amount of respect for another elected official would have been in order, especially when the mayor granted a request from the board president to speak before the New Haven city council last month regarding the board’s options. The board president was not given limited speaking time by the mayor.

In a presentation by the bus director, multiple times referred to bus changes that would take place with closed schools – when they close, not if they close.

Another presentation centered on the proposed Capital Projects fund. Of significance was the carryover amount in the line item for future projects in excess of $4 million. That should include an amount of approximately $1 million the board raised from property taxes about 5 years ago to remodel at Highland Terrace. But that plan has since been abandoned. I have raised this issue nearly every year that that money should be returned to the taxpayers. Also within the CPF report was the option that EACS could use bonds to make up the difference to upgrade schools if insufficient funds came in through property taxes. In other words, in the opportunity to consolidate schools would be the time to really upgrade facilities. I think the board should physically review every upgrade in the plan which included, for example, new drinking fountains in one building. Are they really needed?? Now is the time for austerity.

Another point that I have repeatedly mentioned is the property that EACS owns in Leo-Cedarville. It should be sold! It is unnecessary for future facilities. It was brought up by another speaker last night.

At the start of each year (term), board members and staff must fill out potential conflict of interest forms. Board member Bill Hartman is the lead administrator of Blackhawk Christian School. I have no problem with him as an administrator. I have no problem with his Christian declaration. I do believe that his day job requires him to recruit new students to keep the school financially viable. How many of those students have come out of the EACS district?? A student that leaves EACS for Blackhawk takes the public funds away from the district. Is that meeting his fiduciary responsibility to the school district?

The board voted to allow the property taxpayers of the district to increase general operating funds. This should not be used just to balance the financial accounts as Chris Baker from the New Haven Chamber of Commerce said before the board. I think it fair to let the public decide to increase their taxes for the schools. I do, however, think there should be specific restrictions put on that increase: 1. All employee groups must agree not to pursue that money for salary increases. 2. Prior to implementation, use of the money MUST be identified. Again, as Mr. Baker said, I think the money should be used for advanced programs in the district.

There are many other points that probably need to be made, but I will finish with this one. After the bus director’s presentation, board member Terry Jo Lightfoot implied that the reason the southeast part of the school district faces consolidation is because so many students attend local parochial schools. She implied that closures are the fault of parochial students.

The board needs to change its approach to public input.

America needs a leader

Recently on Facebook, I lamented about the need for a GOP presidential candidate for 2012 that offers more encouragement for individual liberty and entrepreneurship. I received several comments back that current domestic economic climate began under the previous president. Some of that is true. Medicare Part D is probably the biggest disappointment. But now, we see the rundown of the United States and the promotion of the third world. Most recently, the admission of the head of NASA that his primary role - as directed by the president - is to make the muslim world feel good about themselves. Forget about putting man in space outside of earth orbit, requiring increases in scientists, etc.

Following is an excerpt from President Reagan's first State of the Union speech in 1982. He makes no apologies for US economic supremacy. Young people may feel it is silly to invoke Reagan. I feel he belongs in the tier of Washington and Lincoln. When reading many of his speeches, they are inspiring.

To view the State of the Union in perspective, we must not ignore the rest of the world. There isn’t time tonight for a lengthy treatment of social or of foreign policy, I should say a subject I intend to address in detail in the near future. A few words, however, are in order on the progress we’ve made over the past year re-establishing respect for our nation around the globe and some of the challenges and goals that we will approach in the year ahead.

At Ottawa and Cancun, I met with leaders of the major industrial powers and developing nations. Now some of those I met with were a little surprised I didn’t apologize for America’s wealth. Instead I spoke of the strength of the free marketplace system and how that system could help them realize their aspirations for economic development and political freedom.(my emphasis) I believe lasting friendships were made and the foundation was laid for future cooperation.

Compare the texts of the first SOTU speeches from Reagan and Obama and you will see 2 totally different philosophies. When you examine the application, you see the difference in the outcomes played out in our economies.

Reagan in 2012!!

Proof of citizenship

This is tongue-in-cheek for the people in California that can't understand this.

Today I had to go visit my bank. I had done a mistake on my online access and so I went in to the local branch to have them correct my boo-boo.

Can in you imagine this? The first thing the customer service rep asked of me after explaining my mistake was for my DRIVER'S LICENSE. And to make matters worse, I gave it to her - no questions asked.

Really, I expected her to ask for identification and if she didn't ask I was going to show it to her anyway.

So what is so bad about aliens ANYWHERE within the borders of the United States expected to show proof of legitimate presence. If CITIZENS are expected to show ID, why not aliens? If they are here legally, they should not be a problem to display proper credentials.

The US government has got to get control of this issue.

I failed again, because......

Today I was a candidate for city council special election to replace a resignation. The caucus system only allows precinct committee persons to vote for the replacement. In my small town, the total number was one. I guess, fortunately, I only lost by one vote. On the other hand, I didn't garner any support. So as I sit and reflect on why this has happened, I dug out the following. I guess I need to be reminded of this.

Steps to Failing Forward

1. Realize there is one major difference between average people and achieving people.

2. Learn a new definition of failure.

3. Remove the “you” from failure.

4. Take action and reduce your fear.

5. Change your response to failure by accepting responsibility.

6. Don’t let the failure from outside get inside you.

7. Say goodbye to yesterday.

8. Change yourself, and your world changes.

9. Get over yourself and start giving yourself.

10. Find the benefit in every bad experience.

11. If at first you do succeed, try something harder.

12. Learn from a bad experience and make it a good experience.

13. Work on the weakness that weakens you.

14. Understand there’s not much difference between failure and success.

15. Get up, get over it, get going.

How Much Government | Parade.com

How Much Government | Parade.com

With government - at all levels - realizing less revenues there has been a response by government to reduce spending incrementally across the board. I have tried to start sounding the topic of eliminating some government programs altogether. Many programs are unfunded mandates requiring local government to carry the policy without the funding tied to it.

The link to the article discusses this very topic, using a different rubric for program evaluation. I'm glad somebody is finally starting to listen to me!

The ultimate result must be that government is trying to do too much with not enough. We are finally see the results of that mindset internationally. Archaic requirements must be challenged for the needs of society today.

There is a lot discussion about the illegal immigration issue and the action Arizona recently took. Well, I’m going to add my little bit to the topic also. (I know, as if anybody in authority really cares about what I think!)

I know a young pastor that works in an inner city church in another Indiana city. He has his heart in the right place. He has sacrificed much for his family to care for his small flock. He is an area where some local businesses have hired – and depend on – illegals. He defends the need to naturalize illegals for the sake of providing decent incomes for their families. “It’s just not right to take advantage of illegals by paying them depressed wages.”

The argument that supposedly justifies all of this is that the illegals are taking jobs that US citizens will not do because the wages are so low. Of course, we Americans like having low prices for consumer products. We would rather have low prices and give a blind eye to the illegals performing those jobs.

Obviously, I presented these arguments because I do disagree with them.

First, we have national borders and immigration laws for a reason.

Second, whether unemployment is high or low, Americans should have first rights to all American jobs. The apparent problem is low wages. I do believe that citizens have a right to a fair and living wage. This would have a significant impact on consumer prices. Consumers would buy less. Unemployment would continue to increase. I believe that Americans would be accepting of higher prices in exchange for something else – lower taxes!

All combined taxes on the average family have increased over the past century, especially in the past 50 years. The chart at The Tax Foundation displays that increase. Governments at all levels have been continually taking more money from taxpayers just like the frog in the pot of water on the stove – slowly so that we don’t feel the pain! If family taxes were at lower rates, they could afford higher costs for consumer goods.

But government has taken dominance in the wallet of the average American. We willingly give them more and more and they take and demand even more. Of course, all of this is justified in the name of paying for programs that make the quality of life better. Unfortunately, the escalation of government programs exceeds tax revenues.

Americans are faced with making certain decisions. Do we give lip service to illegals working in the US or make major taxation revisions that would provide for living wages in all industries?

Today is Tax Day! Ow, that hurt

April 15^th is U.S. tax day. Supposedly the day all Americans pay their taxes. This is such a false assumption.

As reported on the Tax Foundation.org website, April 9^th is the day that theoretically Americans have stopped working for the government and they can now earn their own money. Half of America has never been working for the federal government. They pay no federal income taxes. Unfortunately, many people think if their refund this year is larger than last year’s must mean that they have paid less taxes.

Americans really need to grasp how much they actually pay in taxes, at all levels. This includes income, sales, property, auto tags, and on and on and on. We don’t realize how much we really pay. Add in to the mix that businesses never pay taxes. All of those obligations are passed on to the consumer through product prices.

I think that government needs to learn a lesson who pays the bills. We need to reduce our withholding to a minimum and pay taxes due next year. Some states are not refunding overpayments to residents because they don’t have the cash available.

It is time that we taxpayers took more control over government revenues, specifically how we pay our taxes to the government!

In support of my ideas

I keep trying to tell people how far ahead of the conservative thinking that I am.

I recently wrote here that the best controls on health care costs would put the consumer in charge of his/her own decision-making.

Now I see that well-respected economist Thomas Sowell has written an article in full support of my ideas. He articulates exactly what I was leading into. I'm glad to see that he reads my blog also.

My answer to health care reform

It drives me nuts about all of this health care talk and the Dems attempt to take over the entire system.

Nowhere have I seen a real discussion about what health care should be used for. The assumption apparently is that insurance just automatically pays for every medical need (and “need” needs to be defined also).

Those people that think insurance companies have unlimited resources have no clue where the money comes from in order to pay out claims. There is no willingness to control individual medical expenses because they assume the “insurance company will pay for it.” Personal control of expenses would have a greater effect on insurance premiums than governmental price controls.

Not only should there be policy options across state lines, there should be greater policy plan options. I think that if people paid for more of personal basic expenses – such as many drugs, doctor, or preventative exams – would help to bring down overall costs. Options for singles or childless couples that essentially covered only catastrophic issues would keep premiums down.

Where is my logic wrong? Oh, that’s right…it isn’t.

Loosen the bureaucratic collar

My last post raised the issue of reducing bureaucratic regulations as a means to reduce expenses to business and local government.

Here is one example of regulations that could be addressed. Various vehicle fuels are required to meet requirements for regions of the country and seasons of the year. These variations increase costs in development, storage, and transfer which are all obviously passed on to the consumer. The consumer includes me at the gas station, the trucking industry that transports products around the country, and even local government when the schools have to put fuel in the buses.

The following map gives an example of fuel (boutique blends) differences around the country.

Can you give some examples also?

A new suggestion to save some money

At all levels of government, belt-tightening is taking place. Here in Indiana, property taxes will soon be frozen as a percentage based on property values. Because of that, local government will be facing lower revenues to provide current services. Sales, business, and income tax revenues are also much lower for the current fiscal year.

So to avoid the pain, some local governments are considering new forms of local income taxes to offset revenue deficits. Other localities are severely reducing services, such as fire protection or trash pickup.

I would like to suggest a third alternative that could relieve some pressure to local governments and possibly help private businesses reduce expenses and possibly redirect those expenses to hiring new employees. My suggestion would be that all levels of government look to reduce regulatory burdens.

Even though I do not identify any specific regulations to eliminate, I do believe – if asked – businesses could easily identify which are most burdensome or costly. There are many federal and state regulations that are imposed on local governments without sufficient revenues to fulfill those policies. Some could be reduced or removed to provide relief.

This is the time and place for somebody out there to start talking. What regulations cause you the most problems that could save everybody some money??

That was then, this is now

Twenty-eight years minus one day, another President gave his first State of the Union speech. Similarly, the United States was in an economic recession. At that time, unemployment was over 10%, inflation and consumer interest rates were above 15% each. In his speech, President Reagan outlined his plan to bring the country out of that recession.

The cumulative national debt had just exceeded one trillion dollars. More than 200 years were needed to accumulate that level. (We have now crossed $12 trillion and see no end in sight for its continued growth.)

Reagan listed 3 keys to reducing budget deficits. First, encourage economic growth. Second, Lower interest rates and third, control federal spending. He was very adamant about NOT raising taxes as an attempt to lower the deficit. He felt that would encourage federal spending (and the Democrats in charge of Congress did not lower spending) and would discourage private investment.

He also referred to recent meetings with foreign leaders. He said how they were surprised that he (Reagan) did NOT apologize for American wealth and its strength of the free marketplace.

These policies DID turn around the national economy then.

Now, 28 years later, another President stood before Congress with a similar economic situation. Fortunately, we do not experience the devastating interest rates we did then. Unfortunately, he is taking just the opposite approach. Considering that Reagan's plan worked - and it did - Obama's plan will probably will not succeed. Our international standing will fall, as it already has started.

I believe Obama may very well be a one term president.

I am going to be a granfather!!

I am going to be a grandfather for the first time this coming summer. I know, it's no big deal. Many people have been, currently are, and will be in the future.

What has been different now - compared to when I first became a parent - is the associated technology. My daughter-in-law had an ultrasound performed on the baby at about 12 weeks gestation. Then she had the video put on Facebook. I watched that and it was so amazing. The detail of the baby was amazing. The doctor was able to measure the fetus at this point. Less than 2 inches long.

Less than 2 inches - and the formed details of the child were amazing! Although I know that the internal organs haven't fully developed yet, it was still inspiring to see the definition.

All of this brings me to two points. The first is that seeing that ultrasound affirms that all of creation is controlled by a creator. HE knows what HE is doing. This life has a name, character, and eternal soul already. The Creator does this kind of work every day and HE is really good at it. Watching the ultrasound has already developed a unique relationship between child, mother, father, grandparents, and great-grandparents.

The second point is that watching the fetus in this ultrasound reminds me that "it" can generate an income for one of two opposite workers. An obstetrician can work to help the mother through the pregnancy to birth. The alternative, ugly side is that the fetus can be destroyed. How can anybody - ANYBODY -really watch the ultrasound and say it is just a mass of tissue ( I saw the baby dance!) and be willing to destroy it???

Well, anyway, this is one exciting time in the Gordon family.