Paul Soglin: Waxing America

Madison's State Street - Wasting over $3 Million a Year

This week's Isthmus features an article, Chronic pains detailing the problems of a few dozen offenders who accounted for almost 400 police contacts in the State Street area during a five month period.

The two men were no ordinary criminals...Each person on the list of 24 had 10 or more contacts with police in the first five months of 2008. Lindsey, 41, was one of the worst: From January to June, he had 42 recorded police contacts, including being sent to Dane County's detox center 16 times...

The study group found that 98 people were responsible for nearly 800 police contacts downtown during this brief period.

An examination of the repeaters shows that almost all of them were either homeless, suffered from mental illness, or had a drug-alcohol dependency problems.

What is so shocking is that a similar study was done over ten years ago.

In the intervening years I  repeatedly told anyone who would listen that a computerized list of the individuals who showed up most frequently with Police or Fire department contacts is the key to reducing problems downtown.

It is real simple.

Read the entire Isthmus article. The last half details solutions critical to a solution.

These individuals need help. They need help, that by law, the state of Wisconsin and Dane County are required to provide. They need treatment or in some cases institutionalization, especially if they refuse to stay on a treatment program.

The study just completed only covered police contacts. They should include fire and paramedic contacts as well. The top twenty offenders are probably good for close to 3000 contacts in a year. At an average cost of $1000 a contact that comes to $3 million annually.*

All of this points to the fact that the city is chasing its tail and the wrong culprits when it comes to liquor-fueled downtown problems including violence.

State Street's problems emanate from two sources associated with frequent liquor and drug abuse. The first group is already identified - older men with severe health problems.

The second are violent thugs who were not found in the area ten or twenty years ago. They too can treated. Remove the older men, free up law enforcement to deal with the young thugs, thus setting a higher standard for State Street behavior, and the problem is solved without draconian measures affecting the sale of alcohol to reasonable people.

Then all that is left is to close the over the top private alcohol fueled parties, and get the youngsters back in the taverns where they belong.

An effective Madison Neighborhood Resource Team (NRT) fro State Street is a start. If we look at it on a cost effective basis, the county's Joining Forces For Families (JFF) should make an appearance.

After those problems are solved, imagine what could be done with the money to work with low income households.

It might also result in fewer murders and violent assaults.

*This number ($3 million) is probably low. While some contacts may be nothing more than instruction to cease offensive behavior, if the contact includes a conveyance, a booking, and subsequent prosecution which will include multiple police officers, the cost is at least $1000. A fire conveyance and detox is probably a minimum of $2000.

Wisconsin Manufacturers & Commerce: What Will It Take?

WMC: What WIll It Take?

 

Wisconsin's Financial Crisis

Sunday's Wisconsin State Journal published an insightful article  State budget blame game, plenty to go around

At least $1.6 billion of the state’s massive budget shortfall stems from a spend-now, pay-later attitude pervasive in both political parties in the state Capitol, analysts said.
Gov. Jim Doyle and other state leaders have blamed the two-year projected budget shortfall, which threatens everyone from taxpayers to students and the poor, on the country’s souring economy.

There will be the usual budget cuts.

The only way to solve this problem is to increase taxes, end the accounting techniques that mask the problem, and institute a quality management program that improves the effectiveness and efficiency of Wisconsin government.

Before any of this happens, legislators from both parties must demonstrate the will to fix the structural problems.

If Republicans hang back, hoping to pin a tax increase on the Democrats, nothing will happen. If Democrats refuse to insist upon tax increases that are both progressive but also give consideration to Wisconsin's business environment, nothing will happen.

The difference is most other states are better prepared for the economic crisis, having set aside in rainy day funds and reserves an average of 11.5 percent of yearly spending from their main accounts, the report found.

By comparison, as of June 30, Wisconsin had set aside just $130 million in reserves, or less than 1 percent of the $13.5 billion of state spending that year.

It was Republicans in the legislature who prevented the adoption of a budget with realistic estimates for the 'rainy day fund.' It is those same Republicans who insisted upon cutting taxes when a tax increase was needed.

We all know what happened with the so-called 'hospital tax' that was killed by the extreme right wing in the Assembly last session.

Now it is up to the Democrats to apply pressure to these Republicans and insist that they be part of a realistic solution.

The Partnership for Wisconsin

The Partnership for Wisconsin is a collaborate effort of business, labor, professional, and academic leaders committed to a sound Wisconsin economy. The Partnership is a non-profit organization whose members share a common value, namely the importance of education for the growth, security and happiness of the individual, the family, and society.    The participants share a common belief that a highly educated and trained workforce is a critical element in making Wisconsin a better place to live, work and play.

The Partnership for Wisconsin acknowledges the benefits to the individual and society of an education.

A safe and healthy community is one that provides economic security and ensures economic opportunity for all of its members. Studies show that education is indispensable if individuals and their families are to fully realize the benefits of their labor.

Male college graduates earn well over $60,000 a year from the age of 35 to 60. High school graduates in the same age range earn under $40,000. The differential for women is similar. Women college graduates will earn over $40,000 a year while female high school graduates earn about $23,000 a year.

Society also benefits form the earning power of education.  Depending upon race and gender, the additional taxes paid by a college graduate compared to a high school graduate is between $200,000 and $400,000 in the course of a lifetime.

The benefits are not as stark, but still significant, if a high school drop out  were to finish school, or if a high school graduate were to have just one or two full years of higher education.

For example the public benefit of a high school education is $209,000. That amount represents the combination of greater taxes and reduced cost to the public of a high school graduate as opposed to a high school drop out.

From society’s perspective, it always pays to invest in education.

Add to this, the demands of Wisconsin business and industry for what one major employer who described his highest priority as a “need for an intelligent workforce.” Employers need workers who can contribute productively and intellectually.

The Partnership for Wisconsin recognizes that to provide for a sound education system there must be a fair and equitable system of taxation. In encouraging public support for education, the Partnership is committed to a Wisconsin taxation plan that not only adequately funds education, job training, and workforce development at all levels, but fairly distributes the cost among all of the parties who benefit.

The Partnership for Wisconsin recognizes that adequate investment in human capital and infrastructure are critical to stimulating private investment. For that reason, we are committed to encouraging a dialogue between the public and private sectors to set an agenda that acknowledges the many direct and indirect benefits that come from such strategies.

As its first commitment, the Partnership will focus on:

• Ensuring adequate financing of public education in all districts throughout the state of Wisconsin.
• UW System education. Financing adequate so that:
  • no in-state student has to pay more than % of their tuition
  • out of state tuition is not more than 100% of the cost of educating the student
  • Faculty salaries at the Madison campus are commensurate with other Big ten Schools
  • UW system Schools are (needs elaboration from academicians)…..
• A workforce development program through the VATC System  (more detail needed)….
• A tax structure that will most likely require an increase of existing taxes, the expansion of the tax base, and or the adoption of new taxes in order to adequately finance….(identification of educational and workforce development needs) 

The Partnership feels that our state must not only have an educated workforce but that we have an enlightened citizenry that understands the externalities and the consequences, or lack of consequences, from not giving full consideration to appropriate investment in human capacity as well as the learning environment.

For that reason the Partnership for Wisconsin is committed to supporting programs that are designed to provide economic opportunity to all Wisconsinites. A healthy state economy is predicated on strategy that encompasses all areas of the state, urban, rural, and suburban.

The Partnership, from time to time, may support the work of others or engage in its own research and policy development in areas related to education, workforce development, or which support the individual’s ability to further their education and training.  This may also include the examination of collaborations with employers, both for profit and non-profit, that are in need of an ever expanding educated workforce.

The Partnership recognizes that many factors enter into the decisions of investors to locate businesses in a community. Reputable studies show that public safety, efficient transportation systems – both public and private, a sound environment, cultural and recreational opportunities, along with fair taxation and a friendly attitude towards economic development are all critical elements that affect decision making.  For that reason the Partnership for Wisconsin, will convene workshops and forums throughout the state to discuss how to improve the economic climate.

Particular attention will be paid to how the international economic environment impacts Wisconsin business and the need to create sustainable industries that can compete in an economy that will afford greater opportunity to businesses that are ‘green.’

Dr. Martin Luther King Jr., noted for his leadership in the civil rights movement could have found an alternative career as a leader in the quality movement when he said “All labor that uplifts humanity has dignity and importance and should be undertaken with painstaking excellence.”  The Partnership for Wisconsin joins in Dr King’s sentiment and is committed to urging both business and labor to collaborate to the greatest degree possible in providing fair and decent wages and benefits, working conditions and hours, and at the same time appreciating the contribution to improvement that every employee can make.

While the Partnership will not become involved in disputes between employers and organized labor, it will urge that resolution of differences be made with an eye to the long term consequences as well as the short terms needs of both parties.

Wisconsin has a long tradition of utilizing the research capabilities of its universities for the advancement in health, science, nutrition, safety, technology, culture, societal organization, and a greater understanding of the human condition. For that reason the Partnership for Wisconsin is committed to supporting research and academic freedom in all of our institutions of higher learning.

 

author's note: This is a draft written six months ago and now available on another web site. Over the past year I met with many Wisconsin business leaders. They were unhappy with Wisconsin Manufacturers and Commerce (WMC). They felt that WMC should be ignored and that a new organization established in our state. Based on what they were saying and my discussions with labor and academic leaders, I drafted a plan for the Partnership for Wisconsin.

 

I will post next week its origin  and why it relates to our state's economy.

No Bailout for Automakers Unless...

I will not support a bailout for the U.S. automakers, General Motors, Ford, and what is left of Chrysler,  unless provision is made to stop them from lobbying and influencing elections and public policy.

It is that simple. That is the price for public money. Without proper restraints, the automakers will continue with membership in organizations like the United States Chamber of Commerce, the Institute for Tort Reform, and even Wisconsin Manufacturers and Commerce (WMC). Like bankrupt (fiscally and morally) AIG, millions of dollars will be funneled into these organizations.

AIG sent $23 million to the US Chamber.

These dollars will be used to lobby Congress, purchase television ads supporting the reelection of Republicans like Norm Coleman (R-MN), and issue ads designed to elect their friends to Congress.

More often than not these ads will elect anti-choice, anti-public education, anti-gay officials at the national and state level.

It is unconscionable that if the public, you and me, take a stake in owning the automakers, that our companies, our investment, be used to advance a right wing political agenda.

Wisconsin's Three Billion Dollar Hole

It is fun winning elections. It is no fun running a government in miserable economic times. The Milwaukee Journal Sentinel tells us: State Democrats face $3 billion budget hole

Capitol Democrats, you just got what you wished for. Are you still sure it's what you want?

For at least two years, you'll have to run state government - and it's in a deep financial hole.

...crafting the next two-year budget. That won't be easy because Doyle has said that budget faces a deficit of more than $3 billion.

The problem goes back a decade to flush times when the Republicans spent without limit, cut taxes, and failed to save for a rainy day. Then came the economy collapsing when the dot com bubble burst and the subsequent stock market collapse following 9/11.

The Democratic majority is inheriting a structural problem that goes back to when the Republicans controlled the Governor's office and at least one if not both houses of the legislature. 

In recent years the best Governor Doyle and the recent Democratic Senate majority could do was jerry-rig temporary solutions and hope the economy would recover so that sales taxs and income tax revenues would increase. Assembly Republicans made sure there were no permanent solutions. Matters only got worse.

There are some tough choices facing the legislature and the Governor next session. Fail to raise taxes, and the state's infrastructure collapses and the budget deficit worsens to the point where it can create permanent damage to Wisconsin's economy.

Raise taxes imprudently, and Republicans will exploit the crisis by appealing to beleaguered home owners on fixed incomes. The irony of course, is that the Republicans and WMC enacted numerous tax cuts in the recent years that benefited the wealthy and shifted the responsibility of paying for government onto middle class families with incomes well under $100,000.

Revenue collections must be increased.

The worst way to do it is is to follow the Republican-WMC model by shifting costs to the property tax. Most desirable is increasing the income tax rates and make it more progressive. That combined with modifications to the sales tax open up creative solutions.

Democrats must come to understand that expansion of the sales tax may not be all that regressive. Especially when we consider that a significant portion of it is paid by out of state residents. The legislature must look at increasing the rate, especially to help pay for education, and expanding what it covers while leaving the exemptions for health, shelter, and food, along with modifications to the income tax.

Keep in mind that while WMC bellows about Wisconsin being one of the highest taxed states, that claim is misleading. Government gets revenue from two sources - taxes and fees. Wisconsin is a very low fee state. When fees and taxes are combined, total government revenues collected by Wisconsin put us in the middle of the 50 states.  A reasonable increase in sales and income tax revenues will not change our competitive position.

As for the continual loss of manufacturing jobs, that is a product of Republican-Gingrich-Norquist based trade policies that contend that there should be free international markets even though Asian competitors pay slave wages and their industries are heavily subsidized by their governments.

When Washington fixes the trade problems, Wisconsin will do just fine as long as we have an educated, well-trained work force.

The Greatest Danger to the Republican Party: Sarah Palin

The Republican Party is in serious trouble. So is the United States.

For the first time since the 1930's there is a charismatic  American political leader with a populist bent who can lead a viable political movement towards fascism.

She is already following in the path of Charles Coughlin who linked arms in the 1930's with Charles Lindberg to build a 'peoples movement' focused to drive out the dual demons, Wall Street and the Communists.

With life imitating art and art imitating life, what comes to mind is Sinclair Lewis' It Can't Happen Here, the Frank Capra motion picture, Meet John Doe with Gary Cooper and Barbara Stanwyck, and Phillip Roth's The Plot Against America (2004).

The problem for the Republicans is that Palin owns the "god, guns, and gays" element of the Republican Party. She locked up the base the way John McCain, Mitt Romney, George W. Bush or even Ronald Reagan could only pretend to embrace. They engaged the abortion issue, guns, and the religious right, and the hatred for American institutions becasue it was politically exepedient.

Sarah Palin is a true believer and the base can tell the real thing.

Now she can lock up a presidential nomination for 2012. Even if the moderate Republicans can hold her off, Palin can bolt, and form her own Populist Party, and relegate the GOP to third party status.

The Neocons are at a loss as to what to do with her. Wall Street must be saved and they know that Communism is a phony issue.

For the rest of us, the challenge is stopping her and a movement with deep roots in American history that claims to appeal to the average Joe, Jane, or John Doe, be they plumber or not.

Author's note:

In his New York Times book review of The Plot Against America, Paul Berman reminds us that Jack London wrote about the topic, though fascism did not exist in 1908, the year The Iron Heel was published:

''The Iron Heel,'' in 1908, from the period before the word ''fascism'' even existed (though fascism was plainly what London had in mind, in the form of a plutocratic-Republican trade union dictatorship). Nearly 30 years later, Nathanael West produced a variation of his own called ''A Cool Million,'' which the Library of America resurrected not long ago — a freaky picture of an America taken over by murderous right-wing screwballs.

Wisconsin Pays for Sarah Palin's Communist System

Wisconsin pays for Sarah Palin's Communist ways in Alaska. Stalin, move over.

The irony of the redistribution of money from one set of states to another is that the receiving states are generally Red States. The result is a taking of hard earned money from states like Wisconsin and sending those dollars to Alaska.

Here are some of the example of the redistribution of wealth that Palin and her pinko fellow travelers support:

• Interstate Highways. The construction of the federal interstate highway system, supposedly for national defense purposes, was financed by us northeners. Tax dollars from Illinois went to Alabama, from New York to Texas and from Wisconsin to Alaska. States too cheap to build their own highways saw new expressways financed by the industrial North and Midwest.
• Rural Eelectrification. We all know the story of the financing of the TVA. The north paid to bring electricity to the rural south. The way the south paid back the north was by opening non-union factories.
• Postal Service for Alaska.  Anyone who watches late night TV knows that shipping to Alaska and Hawaii costs more. To send a first class letter from Alaska to the lower forty-eight should require a doubling of the first class rates. Sarah Palin insists that Jill the Plumber pay for subsidizing mail to Alaska.
• Family travel. When I was in public office the public never paid for Sara or the kids' travel or lodging expenses. Making Joe the Plumber pay for $240 night lodging or $700 apiece airline tickets for her kids is the ultimate in Communism. Maybe she thinks taking from the poor and giving to the rich makes it OK.
• Federal gas-tax money. Alaska Thanks You.

According to Taxpayers for Common Sense, a non-partisan watchdog group in Washington, that breaks down to $1,150 for every Alaskan in "earmark" funding for in-state projects alone, 25 times what the average American garners for his or her home state.

That comes to $6.60 paid to Alaska for each dollar paid in. Wisconsin does a little better than breaking even getting back $1.05.

• All Taxes. Alaska ranks between 3rd and 5th over the last five years in receiving federal tax dollars. They get back about $1.85 for every dollar they send to Washington. Wisconsin gets back $0.84; we rank about 45th.
• The Bailout of AIG and Lehman Bro's. Enuf said.

Throughout her entire political career, Sarah Palin, Communist and fellow traveler, has had no problem taking redistributed wealth.

She has no problem with redistributing the wealth.

She never asks if the redistribution results in investment in infrastructure and human capacity that is environmentally sound and the best way to stimulate private investment.

Sarah Palin knows that even before the adoption of the flat federal income tax in 1894, the United States government has redistributed wealth. The movement of money from one group of taxpayers to another was advanced by the adoption of the Sixteenth amendment to the Constitution, the advent of the automobile on American roads, and accelerated by the Great Depression.

AIG, Chase, Will Again Buy Congress, This Time With More of Our Money

As the Congressional hearings begin, Congress Begins Mapping Financial Reform,  as to how to reconstruct regulations in the financial services industry, one critical element is ignored.

To date, no one is discussing how to prevent the salvaged corporations, run by greedy, unpatriotic, egotists, from making corporate contributions that end up supporting the election of those Members of Congress who supported the bailout.

Elements of greed were identified:

...a decade-long surge in leverage, risk and mortgage-lending abuses that produced a bonanza for a handful of elite investors...

Self serving gems were offered:

"...never again have the taxpayers pay for Wall Street's mistakes," said Illinois Republican Rep. Judy Biggert

The obvious was repeated:

"There should be a moratorium on it, on bonuses, yes,"

The unregulated pirating must end:

Lawmakers at the hearing called for more disclosure by hedge funds and private equity firms, as well as more openness in markets for credit default swaps.

No one addressed what got us into this mess: the long arm of Wall Street reaching into bloated wallets and spreading the money around the United States Congress.

It allowed them to purchase our Congress with our money in an excessive and vulgar manner and:

• donate directly to campaigns.

• send the money to the United States Chamber of Commerce or All Children Matter who used it to directly influence campaigns.

• send the money to the U.S. Chamber of Commerce who funneled into front groups to indirectly influence campaigns.

• send the money to directly to front groups to directly influence campaigns.

Not one dollar of the bail out, or one dollar belonging to bailed-out companies, can be sent to any organization that attempts to lobby Congress directly or indirectly, or that attempts to influence elections, directly or indirectly.

They can have their free speech, but for now, there is no free speech for bailouts. If they want their free speech, they can reject the bailout.

Last time Wall Street purchased Congress, they used obscene profits. This time they will use our tax dollars.

Wisconsin Manufacturers & Commerce Downsizes for Elections and Image

With two weeks until election day, Wisconsin Manufacturers and Commerce (WMC) efforts to influence results are taking a back seat to the candidates in state legislative races.

This was anticipated all summer, for a number of reasons. Until a campaign is mounted in the spring state Supreme Court race, where WMC will attempt to defeat Chief Justice Shirley Abrahamson, we will not know if this low profile is a permanent condition. Or not.

The factors that limit WMC electronic involvement in five assembly races, (AD 47,49,57,88,91) belligerent and misleading ads used in previous elections.

• Two highly publicized affairs, the withdrawal of Cullen Construction and the Madison magazine article by University of Wisconsin Chancellor John C. Wiley damaged WMC's reputation.
• In legislative races, the TV ads used by WMC are not cost effective. since the districts are so small compared to the size of the media markets.
• WMC members realize that the layer of insulation that WMC brought them, which prevented their company's name from being associated with the vicious ads, is no longer effective.
• The purchase of large quantities of TV time by the presidential candidates deprived WMC of access to what limited spots they could afford.
• The national organizations like the U.S. Chamber of Commerce, who provided the majority of the money for WMC, are preoccupied with key Congressional races in other states and do not have time or money for Wisconsin legislative campaigns.
• WMC is still buying radio spots and mailers in some areas.
• Reformers within WMC may have made headway in reining in the beast.

WMC may still make a last minute effort to attack liberal or progressive candidates, but time is running out.

We will not be able to assess the impact of our WMC Watch campaign and the efforts of One Wisconsin Now (OWN), until we get into the spring election season.