The seduction of good intentions

In yesterday’s Salisbury Independent, County Councilman Marc Kilmer discussed his concerns about a tuition assistance program proposed by community leaders and supported by County Executive Bob Culver. The aim of this Wor-Wic College proposal would be to assist Wicomico County high school students by supplementing their available financial aid, with an estimated cost once the program is underway of $665,000 annually.

One of the examples cited by the backers of the Wor-Wic Economic Impact Scholarship is that of Garrett County at the far western end of Maryland, which has a similar program. I’m sure those on County Council have seen this document, but the Garrett County Commissioners have produced a (somewhat dated) report on the Garrett County Scholarship Program, which they began way back in 2006 – so the 2014 report had several years’ worth of data to evaluate its success.

A couple things to bear in mind are that Garrett County is not one of the wealthier counties in Maryland, and in terms of its economic strength it would fit in well with the rural counties of the Eastern Shore. As the report authors note, the county is in a transition “from an economy traditionally based on agriculture, forest products, and mining to a more diversified economy based on tourism, commerce, light industry, and construction.” But it is also far smaller than Wicomico County in terms of population, with just over 30,000 people – imagine the city of Salisbury (but not the outskirts and densely populated nearby incorporated and unincorporated areas) spread out in a far larger geographic area, as Garrett is the second-largest county in the state when it comes to land area. It doesn’t have a large populated area, either, as the largest towns of Mountain Lake Park and Oakland (the county seat) hover around 2,000 residents apiece.

According to the commissioners’ report, between 1/3 and 2/5 of the eligible students in the county took advantage of the program, but in raw numbers the total was less impressive: from a fall 2008 peak of 138 recipients, the number declined over the next several years to a low of 79 in the fall of 2013 (the last year detailed by the report.) Yet the program comes with a significant cost due to some of its qualities: for FY2013 the price tag was $427,365 and for FY2017 the county has budgeted $500,000. However, the county also assists students who are dual-enrolled in one of its two high schools and Garrett College as well as a handful who are enrolled in non-degree certificate programs, as well as encouraging students to take more than the minimum 12 credit hours to maintain eligibility. They pick up that tab.

While the programs as envisioned here in Wicomico County and the Garrett County program have somewhat of an apples-to-oranges comparison to them, I think it’s fair to say that the local proposal is probably going to cost more than envisioned. Expanding the Garrett scholarship to non-degree certificate programs, while a sound idea, is an example of the mission creep that often occurs with the government getting involved. It’s also worth pointing out a spike in costs came when Garrett College tuition increased significantly in 2009.

Unfortunately, the one relevant piece of data we don’t have is whether these scholarship recipients remained to take (or create) jobs in the Garrett County region. According to state records, though, the workforce in Garrett has actually declined from 15,666 to 14,475 over the last decade (April 2006 – April 2016) for a drop of 7.6%. Conversely, Wicomico County declined from 49,566 to 47,504 in that same period, for a decrease of 4.2% – so by that measure the Garrett County program may not be very successful. (Yet the Garrett unemployment rate has only risen from 4.7% to 5.7% in comparison to a jump from 3.7% to 6% in Wicomico.)

One way of expressing the cost of this program is to equate it to property taxes. For each penny of property tax, Wicomico County collects about $570,000 (this is assuming I am reading the budget correctly, of course. But it sounds about right based on my experience.) So this would be a little over a penny out of the 95 cents or so the county collects out of every $100 of property valuation. The owner of a house assessed at $200,000 would pay about $20 a year toward this goal. If that seems worth it to give students a break, then support the scholarship program.

But if I may make a couple suggestions: I think the total expenditure should be capped and given out on a first come, first served basis. I understand not everyone makes snap decisions well, but in order to be fiscally responsible we can’t let this mushroom beyond its small percentage of the county budget. I would also reserve a number of slots for certificate programs Wor-Wic offers, similar to that element of Garrett’s program. Since a P-TECH school is not yet in the cards for Wicomico County, this can be the next best thing if done correctly.

It’s not likely any member of my family will take advantage of the program, but Kilmer is right to be a little skeptical of it at this stage. The county did set aside the money to begin the program once the questions are answered, though, so it’s possible an upcoming high school class will be the first to have this option.

Odds and ends number 81

It’s Leap Day, so why not use the occasion to put up the odds and ends cluttering up the mailbox? After sifting through the stuff I thought might be useful but is now pretty much irrelevant, I’ve still come up with a post’s worth of things that take a sentence to a couple paragraphs to deal with.

As you may know, here in Maryland we have passed the halfway point of the “90 days of terror” I call the General Assembly session. While several of the items I cite aren’t on the agenda, I think you can file them under the “bright idea” category, as in “don’t give them any bright ideas.”

While the first idea (one of many Daily Signal items that caught my eye) isn’t really on the table in the state, locally they are kicking around the thought of assisting local students who want to attend Wor-Wic Community College. But Louisiana’s program is breaking the state, so it may be a cautionary tale for the county.

Look, you begin with one college campus and recent high school graduates but then the folks at Salisbury University will want in, then there will be a clamor to include other groups and schools. With any government program, mission creep is a concern and this is no exception. It’s a natural lead-in to an excellent piece by James Bovard at Mises Daily (for this the hat tip goes to my friends at Americans for Limited Government.) Once we set the precedent of free tuition, will the county ever get off the hook?

“(Politicians) realize that addicting citizens to government handouts is the easiest way to breed mass docility and stretch their power,” writes Bovard, and he is absolutely correct. Why do you think I advocate so much for starving the beast? It’s the only way out of this mess we have created.

But as the Daily Signal adds in another great piece, Republicans who want limited government find it a tough sell in minority communities despite the evidence that shoveling money into the welfare system isn’t helping. Perhaps this is because conservatives are losing the battle for debunking the lies being sold to the minorities and youth, despite Dan Bongino’s best efforts to change the narrative at the Conservative Review.

Then again, when you have the dissent-free atmosphere of college campuses these days (again from the Daily Signal), it’s easier to see why the “skulls full of mush” remain in their state.

Something that is on the docket in Maryland once again is a “death with dignity” bill. But my final piece from the Daily Signal points out that if you took Oregon’s assisted suicide rate and extrapolated the numbers nationwide, 10,529 people annually would take their own lives. By comparison, in 2013 just over 33,000 people died as a result of vehicle accidents and roughly the same number perished in firearm-related deaths. But the majority of those firearm deaths were suicides, with 11,208 being homicides. (Table 18 way back in this government report.)

So what we would be doing is likely reducing the firearm death figure by a little bit, but increasing the suicide rate by giving it less of a stigma. I’m not sure I agree with this because in this day and age it’s easy for the greedy grandkids to convince their rich grandma she is bound any day to catch Alzheimer’s and struggle on for years afterward. Why not save us, uh, we mean yourself the trouble, they would ask.

I wanted to bring up one more seeming juxtaposition in Maryland politics before I switch gears. A couple weeks back there was a candidates’ debate for the Republicans seeking the U.S. Senate seat (way too) long held by Barbara Mikulski. I believe there were five candidates present of the fourteen who filed, but the most notable absentee was Delegate Kathy Szeliga. As she noted, there was a Maryland GOP event held that same night. Under the heading of “An Amazing Event!” she wrote:

Thursday night, I was able to attend an event with three great governors… Bob Ehrlich, Charlie Baker (Mass. GOP Gov.), and Larry Hogan even stopped by! These men know how to win and govern in blue states.

We will win our U.S. Senate campaign the same way – by being authentic and showing voters that we truly care about our state and nation. Our ideas work and empower people over big government.

It’s interesting she points this out since we didn’t get to hear her ideas in the debate. On the other hand, fellow candidate Richard Douglas chided Szeliga indirectly by stating:

I am delighted to be participating in the Goucher College Republican candidate’s debate for the U.S. Senate on February 18, 2016. Only a serious family emergency could keep me away. Over many weeks, College Republicans and some of Maryland’s most devoted grassroots Republican activists have devoted enormous effort to this useful event. I warmly commend them for this effort, and from the beginning, my participation was never in doubt. Service in the armed forces and with two U.S. Senate committees teaches a vital lesson: people come first. I took that lesson to heart in Iraq, on a Navy submarine, and in the U.S. Senate as it reacted to the September 11, 2001 terrorist attacks. If elected to the U.S. Senate, I will never make party or President higher priorities than the people of Maryland.

As you recall, there were a series of questions I sent out to 12 of the 14 candidates (two had bad e-mail addresses so their mail bounced.) I mention this because I received Douglas’s answers yesterday as the second response to come in – haven’t heard from Szeliga yet.

Finally, if there were a third person I would like to add to monoblogue (at least on a weekly basis) it’s this lady. Each time I read Marita Noon’s posts on the political aspects of energy I nod my head in agreement, and this one was no exception – it even ties in to the lunacy on college campuses these days because this is what some of these crackpots do after college. I give you the movement to “keep it in the ground”:

“Keep it in the ground” is the new face of environmental activism. If those who understand the role energy plays in America and our freedoms don’t engage, don’t attend meetings and send statements, and don’t vote, the policy makers have almost no choice but to think these vocal few represent the many.

For example, there’s the case of Sandoval County, New Mexico, which has potential to be a wealthier county but can’t even give permission to drill an exploratory well without angst:

In the past few years, when oil prices were higher, Encana and WPX drilled some 200 wells in the same geology, 70 of them in Sandoval County. Not one single instance of any interference, damage, or invasion of fresh water aquifers has occurred. For that matter, over the past 50 years of production in Sandoval County, even with technology and safety standards that were not as advanced or rigorous as todays, there has not been one instance of aquifer harm.

(snip)

One “small drilling well” outside of a community on the edge of Albuquerque that could create jobs and help the local and state economy could be blocked because of a few dozen agitators who could cause the county to “keep it in the ground.”

When I read this it makes me think of the short-sightedness of several regional governmental bodies that have expressed their opposition to the simple act of seismic surveying of the waters off the coast, citing harm to marine life. (This didn’t seem to be a problem in 2013 when it was done to place wind turbines, though.)

I suppose they would rather wreak havoc on the migratory bird population with wind turbines, but I think both oil platforms and wind turbines can co-exist – an “all of the above” strategy if you will. It’s just that one will prove to be a boondoggle without subsidies and one won’t.

So as we wrap up this Leap Day, here’s hoping Donald Trump is the first to take a flying leap – to where I don’t care.

Questions I’d love to ask

Tonight Wor-Wic Community College played host to a District 37 and District 38 Candidate Forum sponsored by the Coastal Association of Realtors and Salisbury Chamber of Commerce. Tomorrow I’ll have more on what the participants said, but a major weakness in the format was soliciting audience questions but only using one (that I was aware of.) It’s too bad, because I had two I thought were good (although one was to be asked of a specific candidate.)

The first question I had was for Jim Mathias and relates to the post I did yesterday. Once again I’ll restate the quote he made in a full-color campaign mailing that arrived at my house:

In the State Senate, (Jim will) push to cut wasteful government spending and reinvest the proceeds in small business jobs and the Eastern Shore.

What I wanted to know from Jim (and certainly other candidates could have added their two cents as well) was what specific programs he considers to be “wasteful spending.” See, it’s one thing to talk in generalities but certainly another to actually propose things to be cut. For all the talk about how communities around the area have to live with less, we haven’t seen all that much effort to do so at the state level.

(Yes, I know some will beg to differ and claim state spending has gone down – but in real terms the budget’s gone up over the last four years, with the federal share increasing.)

The other question I wanted to ask came about as part of the discussion about lowering the state sales tax by a penny on each dollar. I took the figures from memory, but as a ballpark it should be close. Besides, the actual figures matter less than the principle.

The total annual revenue from our state’s sales tax runs about $3.7 billion, and the Eastern Shore is roughly 1/10 of the state’s population, so it stands to reason that 1/10 of the sales tax revenue comes out of here.

Let’s say we could finally place our Eastern Shore merchants on par with Delaware and eliminate the sales tax entirely in the nine counties of the Eastern Shore. I’m curious to see if these candidates would support that, based on the dynamic economic analysis that suggests the additional economic oportunities and jobs created by such a move would end up filling state coffers by more than the $370 million “lost.” Remember, Bob Ehrlich said that increased economic activity and slot revenues would make up the difference from rescinding the penny per dollar sales tax increase, so why not use the same theory here?

So for all of you would-be interviewers and forum hosts, here’s a couple of questions you can ask of the candidates. Tomorrow I’ll discuss this forum, which was way longer than promised but rather interesting.