Spinning a Bay State loss

As many of you know, I’m one of the reportedly 13 million on the mailing list of Organizing For Against America. So once in awhile I have to have some fun with what they say and the occasion of Scott Brown’s win in heretofore reliably liberal Massachusetts is one of those times. Mitch Stewart of the group had this to say:

Yesterday’s disappointing election results show deep discontent with the pace of change. I know the OFA community and the President share that frustration.

We also saw what we knew to be true all along: Any change worth making is hard and will be fought at every turn. While it doesn’t take away the sting of this loss, there is no road to real change without setbacks along the way.

We could have simply sought to do things that were easy, that wouldn’t stir up controversy. But changes that aren’t controversial rarely solve the problem.

Our country continues to face the same fundamental challenges it faced yesterday. Our health care system still needs reform. Wall Street still needs to be held accountable. We still need to create good jobs. And we still need to continue building a clean energy economy.

The President isn’t walking away from these challenges. In fact, his determination and resolve are only stronger. We must match that commitment with our own.

But it won’t be easy. Real change never is. For that reason, I am grateful you’re part of this fight with us.

First off, I wasn’t disappointed with the results at all, and the only discontent with the pace of change was that it was going too fast in the wrong direction!

Reread paragraph number four. First of all, I disagree completely with the premise that our “health care system still needs reform.” What needs reform is the manner it’s paid for – the delivery of the system is quite good. Opening up the system within each state to competition so there’s more than a handful of providers and cutting out some of the frivolous mandates to promote more accessible basic coverage would be a start and not run into the thousands of pages. Eliminating the linkage between work and health insurance makes obvious sense, too. And there’s no need for a coverage mandate – I know Scott Brown voted for the Massachusetts system and that’s one place where he and I disagree.

And then we have Wall Street. The populists in Washington have come out against what they term “excessive” bonuses and pay for Wall Street firms. Yet Fannie Mae and Freddie Mac executives receive similar compensation packages without nearly the outcry.

I look at the situation this way. If you don’t like what an executive is making, don’t do business with the firm – use a local bank or investment company whose compensation structure is more in line with what you believe is fair. I hold no grudge on executive pay because there are few executives who have exhibited the talent and drive necessary to rise to the top of the corporate ladder, and they are being compensated for doing so. There might be 10,000 employees at a Wall Street firm, but only one guy is in charge and obviously the board of directors made a deal in good faith with him or her to be their leader. By that same token, I happen to think the UAW contracts with the Big Three are excessive but it’s the fault of the companies for letting them become so and not telling the union to stuff it. So the problem can cut both ways.

Now let’s talk about how to “create good jobs.” How about keeping private sector money where it belongs – in the private sector? Thus far, much of the job creation from the stimulus is either busy work on roads and other infrastructure (some of which is duplicative, like milling and repaving a perfectly fine stretch of highway) or “saved” jobs in the public sector (which has a higher proportion of union jobs than the private sector), positions kept when states were bailed out of their budgetary misfortunes. 

A far better route to creating good jobs would be to eliminate the uncertainty of whether onerous health care and environmental legislation will come to pass and lowering the tax burden on businesses. And while you’re at it, keep the Bush tax cuts in place. Let the areas of the economy which work best get back to work and slowly the remainder (particularly the building industry) will spring back into shape as well.

Finally, if we are to “build a clean energy economy,” we should do it without unfair subsidy or rentseeking multinational corporations trying to ace smaller competitors out of the “green” market. The market long ago decided that carbon-based energy was the way to go because it was inexpensive and reliable – that and we still have enough to meet our demand for decades to come, particularly when it comes to coal and natural gas. Renewable sources are nice, but expensive and frankly too unreliable to count on for large-scale use. If the wind doesn’t blow (or blows too hard, such as when a hurricane or tropical storm passes by) a wind turbine creates no power. But as long as we can dig or drill for coal or natural gas and transport it to where we need it – which we’ve accomplished for decades – those supplies are stable and reliable.

I have no idea if Scott Brown or any of his GOP cohorts will read this critique, but if they want to maintain the momentum that the 2009 elections in Virginia and New Jersey began and the Massachusetts win continued, they should take these words to heart. The problem with the statist agenda pushed by the author of this e-mail and endorsed by the current administration is that there’s no real mandate for it.

At its heart, America is a right-of-center country. When independents get a taste of a radically leftist agenda pushed on a national scale, they revolt – first at the local TEA Party, then in those political races which have garnered national attention. Scott Brown was a shoo-in once the Bay State’s race became the United States’ race because the “hope” and “change” promised a year ago wasn’t the variety of hope and change America truly wanted or needed.

Over the last year we’ve learned a painful lesson and all the spin in the world can’t change the fact that we want something better. November isn’t that far off, and graduates of the most recent economic School of Hard Knocks will be doing their own grading at the ballot box.

Something tells me the statist agenda will get a big, fat, red “F.”

Maryland’s budget woes

At least from the GOP side of things. Don’t worry, I have my take too.

But let’s start with the Republicans in the House of Delegates and their opinion:

The Maryland House Republican Caucus today responded to Governor Martin O’Malley’s Fiscal Year 2011 spending plan by characterizing it as a template for Governor O’Malley’s mismanagement of the state of Maryland.  The spending plan includes increases in state spending, the cleaning out of the state’s paltry special fund balances, place markers for more federal bailout money and leaves a $1.5 billion deficit for next year, which grows to more than $2 billion the year after.  It also increases the governor’s staff budget, provides more environmental giveaways and continues the ongoing bloat at the University System of Maryland.  The House Minority Caucus released the following statement:

“This spending plan by Governor Martin O’Malley shows his abject refusal to get Maryland on a fiscally responsible path,” House Minority Leader Tony O’Donnell said.  “It leaves us with a $400 million hole this year, $1.5 billion next year and at least another $2 billion hole the year after that. He says he’s reducing spending but that’s not the reality.  The fact is that he is spending more Maryland tax dollars this year while hoping for another bailout from Congress and the White House.  Maryland has no more road for Martin to kick the fiscal can down.  We are broke because of this governor and his allies in the General Assembly.”

Minority Whip Chris Shank added, “Our special funds are bankrupted.  Our transportation funds are long gone.  The remaining businesses Maryland has are set to go broke because of the policies of this administration and the majority in the General Assembly.  Honest talk from this governor would require him to tell Maryland’s taxpayers that he’s going to raise their taxes again next year.  That’s not likely to happen.”

O’Donnell concluded, “Enough is enough!  It is time that this governor and the majority in the General Assembly start listening to the citizens of Maryland and get our fiscal house in order.  Stop the election year buyoffs and start managing the people’s money for a better future today.”

And now for the Senate view:

Overshadowed by the deplorable state of the state budget released yesterday was the admission before the Senate Finance Committee by officials of the Department of Labor, Licensing and Regulation that Maryland needs to borrow over $300 million from the federal government to replenish the Unemployment Insurance Trust Fund.

State officials said that the claim volume is unprecedented because of the elevated levels of joblessness throughout the state since 2007 (the year Governor O’Malley took office).

“At this stage, the trust fund is bankrupt,” said Minority Leader Allan Kittleman (R-Howard, Carroll). “Moreover, Governor O’Malley’s legislative proposals would make things worse – we must not permanently expand program costs under a federal mandate that only provides short-term revenues. Obviously, that fix is not financially sustainable.”

Business groups join Republican legislators in opposition to O’Malley’s legislation.

So you have perspectives from the opposition in both houses of our General Assembly.

While the state portion of the budget is smaller than last year’s, spending as a whole only decreases slightly to $31.9 billion. All that means is that the federal share of the overall budget continues to increase to where federal dollars now contribute roughly $3 out of every $5 Maryland spends. To me, this is an untenable position, particularly if a future Congress and President ever grow a collective pair and restore the federal government to its proper role. Maybe that’s not in the cards anytime soon, but otherwise there’s little reason for state government and the Tenth Amendment may as well be stricken from the Constitution.

Meanwhile, there’s also the prospect of borrowing from almost every fund available except the “rainy day” fund, which Governor O’Malley claims needs protection to maintain Maryland’s bond rating. If there were ever a rainy day though, I would think it’s now.

And then we have the irony of borrowing $300 million to replenish the unemployment fund at a time when Maryland is one of eight states still losing jobs. When you run a state which has been ranked 45th in business friendliness, perhaps it’s time to reconsider what plummeted a state which formerly was in the middling ranks of that category to its depths.

Recently I wrote an op-ed on how businesses who have struggled maintaining employment have also seen local and state governments using the “clawback” provisions in their contracts to regain the taxes they abated to encourage employers to locate there. All that does is make it even more difficult for businesses to recover and my argument was that government shouldn’t be as harsh on employers who have only recently run afoul of the guidelines as on those who never lived up to their promises. Maryland is a state which seems determined to squeeze every dime out of their private employment base and make it all but impossible to make a profit in the Free State.

If O’Malley wins in November and Democrats keep their stranglehold on the General Assembly, I predict 2011 will be a repeat of 2007 – but without the contentious Special Session. He and his allies probably won’t wait to start twisting the vise on Maryland taxpayers and businesses some more, as happened in the 2007 Special Session. Last time we endured a tax increase on cigarettes, adding 1% to the sales tax, and an ill-fated “tech tax” increase which eventually morphed into an income tax surcharge on the few wealthy Marylanders left. Perhaps next time it will be a gasoline tax, utility tax, increasing license fees, or a myriad of other ways to attempt to make up an increasing shortfall. (Obviously video slots aren’t doing the job.)

When us regular folk have to make tough decisions we place all options on the table, but it’s apparent that Democrats don’t place everything on the table when considering budget cuts. Perhaps it was too ambitious to attempt to cover uninsured Marylanders or maintain a tuition freeze when their costs are going up. But everything needs to become an option, even those items Democrats hold their nose at like reducing the size of government.