Archives: 07/2009

Calling Secretary Napolitano: Arizona to Reject EDLs

Department of Homeland Security Secretary Janet Napolitano has been all over the map on national ID issues. As governor of Arizona, she signed a memorandum of understanding with the Bush DHS to implement “enhanced driver’s licenses” in her state. These are licenses with long-range RFID chips built into them. But then she turned around and signed legislation barring implementation of the REAL ID Act in Arizona.

Now, having taken federal office, she again favors REAL ID – or at least under its new name: PASS ID. (Her efforts to put distance between REAL ID and PASS ID have not borne fruit.)

In some respects, PASS ID is worse than REAL ID. It would give congressional approval to the “enhanced driver’s license” program – invented by DHS and State Department bureaucrats to do long-range (and potentially surreptitious) identification of people holding this type of card. Back home, the Arizona legislature has just passed a bill to prohibit the state from implementing EDLs.

So the former governor of Arizona, who has both supported and rejected national ID programs, now supports a bill to approve the national ID program her home state rejects. Napolitano seems to be taking the national ID tar baby in a loving embrace.

Health Care Priorities

As Washington debates a big increase in federal health care spending, I came across these two articles on what a splendid job the government is doing managing its current health programs.

Harvard professor Malcolm Sparrow recently testified that roughly $100 billion or more of Medicare and Medicaid dollars go down the drain each year due to fraud. It’s easy to rip these programs off because of their vast size and electronic claims processing. Medicare processes more than 1 billion of claims each year. 

This Washington Post article last year described one particular example of the fraud. A high-school drop-out managed to bilk Medicare out of $105 million by submitting a 140,000 false claims from her laptop computer.

So we’ve got $100 billion or so of taxpayer’s hard-earned money being stolen each year from our current public health care plans. You would think that with today’s giant budget deficit that the highest priority of policymakers would be to reform these programs to reduce the unbelievable and disgusting amounts of graft. But no, many in Congress and President Obama have decided that current government health care works so well that they want to expand it.

President Obama wants to create a new “public health option” to “keep insurance companies honest.” Hey Mr. President,  you should do something about the $100 billion of dishonesty in current public health plans, instead of hitting up taxpayers to fund an even more bloated health care budget.

Finally, an Education Muckraker!

I’ve often complained on this blog that there are no education muckrakers – no reporters who will actually go out and investigate the misleading claims so often fed to them by politicians and public school officials. Well, it turns out there’s at least one, and his name is Ron Matus.

After being told countless times that public schools in Florida spend just $7,000 per pupil annually, Matus decided to do what no other ed reporter in the state (so far as I know) has done: check it. In a blog post today, he explains where the $7,000 number comes from, he points out that the actual total is $12,000 per pupil, and he lets readers decide which number is more relevant to them. Way to go, Mr. Matus!

I particularly enjoyed this line: “[Department of Education] officials say it’s fair to roll federal money into a per-pupil spending figure – that money does go to operational costs - but not capital outlay and debt service.”

Apparently schools don’t need buildings anymore! Wonderful news! Now that Floridians no longer have to pay for construction and renovation costs, they’ll save $6 billion a year. That is, they’ll start saving it as soon as the Department of Education gives it back to them. What’s that? They don’t want to give it back even though they say it doesn’t count? Gee. I guess it does count then, doesn’t it?

This public school emperor isn’t just naked, he’s mincing about flamboyantly and daring on-lookers to call him sartorially challenged. Well we dare, pal, we dare. If you want buildings to house all those students, and you want the billions to pay for them, then the St. Pertersburg Times, at least, is going to start counting it.

If there are any other reporters out there who have similarly tracked down the real total per pupil spending numbers, let me know and I’ll cite your work here. Or, if you’d like to try it but don’t know where to start, acoulson [at] cato [dot] org (subject: Real Education Numbers) (drop me an e-mail.)

Those Who “Serve” Us Celebrate

adamsThose who think that the college-educated, or soon to be so, should have more and more of their education funded by taxpayers – whether those taxpayers themselves attended college or not – are shooting off the fireworks a bit early this year, celebrating increasingly generous federal aid going into effect today.

Perhaps the most galling part of all the increasingly free-flowing aid is how much is being targeted at people who work in “public service.” Ignoring for the moment that the people who make our computers, run our grocery stores, play professional baseball, and on and on are all providing the public with things it wants and needs, to make policy on the assumption that people in predominantly government jobs are somehow selflessly sacrificing for the common good is to blatantly disregard reality.

Consider teachers, as I have done in-depth. According to 2007 Bureau of Labor Statistics data, adjusted to reflect actual time worked, teachers earn more on an hourly basis than accountants, registered nurses, and insurance underwriters. Elementary school teachers – the lowest paid among elementary, middle, and high school educators – made an average of $35.49 an hour, versus $32.91 for accountants and auditors, $32.54 for RNs, and $31.31 for insurance underwriters.

So much for the notion that teachers get paid in nothing but children’s smiles and whatever pittance a cruel public begrudgingly permits them.

How about government employees?

Chris Edwards has done yeoman’s work pointing out how well compensated federal bureaucrats are, noting that in 2007 the average annual wage of a federal civilian employee was $77,143, versus $48,035 for the average private sector worker. And when benefits were factored in, federal employee compensation was twice as large as private sector. But don’t just take Chris’s word and data to see that federal employment is far from self-sacrificial – take the Washington Post’s “Jobs” section!

And it’s not just federal employees or teachers who are making some pretty pennies serving John Q. Public. As a recent Forbes article revealed, it’s people at all levels of government, from firefighters to municipal clerks:

In public-sector America things just get better and better. The common presumption is that public servants forgo high wages in exchange for safe jobs and benefits. The reality is they get all three. State and local government workers get paid an average of $25.30 an hour, which is 33% higher than the private sector’s $19, according to Bureau of Labor Statistics data. Throw in pensions and other benefits and the gap widens to 42%.

Recently, my wife and I have been watching the HBO miniseries John Adams, and I couldn’t help but make the observation: In Adams’ time, many of those who served the public truly did so at great expense to themselves, often risking their very lives and asking little, if anything, from the public in return. Today, in contrast, many if not most of those who supposedly serve the public do so at no risk to themselves – indeed, unparalleled security is one of the great benefits of their employment – but are treated as if their jobs are extraordinary sacrifices. And so, as we head into Independence Day, it seems the World has once again been turned upside down: In modern America, the public works mightily to serve its servants, not the other way around.

Banks, Bailouts, and Political Pressure

The Washington Post reports:

Sen. Daniel K. Inouye’s staff contacted federal regulators last fall to ask about the bailout application of an ailing Hawaii bank that he had helped to establish and where he has invested the bulk of his personal wealth.

The bank, Central Pacific Financial, was an unlikely candidate for a program designed by the Treasury Department to bolster healthy banks. The firm’s losses were depleting its capital reserves. Its primary regulator, the Federal Deposit Insurance Corp., already had decided that it didn’t meet the criteria for receiving a favorable recommendation and had forwarded the application to a council that reviewed marginal cases, according to agency documents.

Two weeks after the inquiry from Inouye’s office, Central Pacific announced that the Treasury would inject $135 million.

As we’ve said here many times, going back to 1983, when government is in the business of making economic decisions, you inevitably get more lobbying, more campaign spending, and more political influence on economic decision-makers.

Education Tax Credits Pass in Indiana

Despite the economy and the dogged opposition of powerful Big Ed, education tax credits are surviving and thriving. The latest state to jump into k-12 tax credits is Indiana. From the Friedman Foundation yesterday:

Indiana lawmakers today approved a $2.5 million scholarship tax credit program in the home state of the Friedman Foundation for Educational Choice. The new scholarship program was inserted into the state’s budget and won approval in the late hours of the special legislative session. The bill, which passed the Senate 34-16 and the House 61-36, now goes to the governor who is anticipated to sign it in the coming days.

Unfortunately, the credit is only 50% for each dollar donated, unlike the more powerful ones in PA, FL, and AZ. But I know Friedman, School Choice Indiana and their allies will be fighting hard in coming years to increase the credit amount and program cap.

Sounds like Governor Mitch Daniels deserves kudos for keeping the bill in his budget and pushing for the program. And the word is that around 27 percent of the House Democrats voted for the budget despite the tax credit and virtual charter school programs that the teachers unions opposed. Big Ed ain’t what he used to be.