GOVERNMENT WASTE

- WASHINGTON -

Date	Individual / State Agency	Who, What, Where?
04/21/2005	House and Senate	House Ignores Voters Mandate House Democrats in the state of Washington set up the citizens for an onrush of new taxes by changing how new tax bills are passed. Citizens approved Proposition 601 in 1993 to impose a spending limit on the legislature requiring a two-thirds approval majority on any new tax initiatives. With the new law only requiring a simple majority, Democrats (who have an advantage in both the House and Senate), can now run amuck doling out taxpayer money. All of the Republican members and a few Democrats voted against the measure to no avail. I sincerely hope that voters register their disdain with the politicians by authoring a new Proposition that requires a three-quarters approval mandate for new taxes.
01/01/06	Seattle Light Rail	Government Interference and Waste in Seattle Seattle has always had the reputation of providing subsidies to those who least need them. Some of the recent handouts from the public treasury include: · Paul Allen, the multi-gazillionaire and former partner in Microsoft, was handed $500 million (pocket change for the man) to help finance his Vulcan Inc.’s South Lake Union commercial real estate development, which includes a tourist trolley to downtown. · The city subsidizes the Seattle Seahawks football team. · Owners of the Seattle Supersonics basketball team are seeking $200 million. But the most costly dispensing of the free cash is in the area of public transportation. Seattle’s version of the “Big Dig,” one of the most incompetent outlays of billions of dollars of wasted money to construct a tunnel under Boston, is the construction of a light-rail system in Seattle. Sound Transit, a regional agency, is ready to start drilling twin tunnels which will require moving in excess of 125,000 dump-truck loads of dirt. Never mind that the voters have not yet approved funds or plans have been developed for a light rail system venturing that far north. Seattle already has in place a highly rated bus system. Original plans, authorized by the voters in 1996, called for light rail to reach from south of Seattle-Tacoma airport to the city’s northern end, an ambitious plan no doubt. Initial construction began in areas already well served by public transit. The light rail system, as currently projected, will have fewer stations, be far shorter, will take years longer to build, and will cost billions more than originally promised. Experts knew well in advance that light rail systems that require tunneling and water crossings are not cost effective, but the bureaucrats proceeded anyway. Huge engineering problems have surfaced. Washington state law requires that transit agencies may operate rail service where it is competitive in cost with bus, bus rapid transit, and other technologies. The law also requires that least-cost alternatives be presented for comparison to elected officials and voters before that transportation are approved. This little detail never happened. The ballot measures to promote this fiasco came about as a result of a consortium of local law firms, financial institutions, unions, consultants, architects, builders and others who receive project-related public funds. These groups are working in cahoots with local politicians who keep pushing their pet projects. In a somewhat similar situation to the levees in New Orleans, while billions are being thrown at light rail, other more pressing problems are being ignored. In a major earthquake in 2001, the Alaskan Way Viaduct and the Evergreen Point Bridge were both damaged. Federal money is available to commence repairs, but for some strange reason, local money can’t be found. Experts have stated that the next major quake could bring down those structures. We can all predict the future now. When a major quake does occur, Seattle officials will accuse the Bush administration of ignoring their pleas for help, with tear-jerking speeches about how local officials could not get federal help (see the story below).
03/01/06	Legislature	Legislators Oblivious to Taxpayers The state of Washington expects to take in $1.6 billion more in revenue than the current budget. The Democratically controlled legislature has already decided where that money is going. Will it be used to reduce the state’s deficit? Will it be used to reduce the taxpayer’s burden? Will it be socked away for a rainy day? I’m sorry, but we all need a good joke once in a while. The Senate Democrats budget plan proposes to spend money in ways and amounts not included in the original budget. The majority of that money will be spent on new investments and provide tax incentives (for whom or what?). The only positive sign is that $350 million will be allocated to pay down a small part of the $4 billion unfunded liability in the pension system. Actually, the Democrats plan on spending more money in total then will be realized by the surge in revenue. Annual revenues are estimated to increase 10 percent per annum but that will disappear rapidly as the housing market slows to a crawl, and Democrats will likely increase spending by 17 percent. Republicans argue that’s hardly sustainable (a small voice of reason, perhaps?). Government continues to grow like a cancer across the nation.
03/01/06	Seattle	Seattle Supersonics Key Arena Upgrade in Doubt In last month’s newsletter, we reported that the Supersonics are threatening to leave town unless the city government shells out $220 million to upgrade the luxury suites in the stadium to match two other sports facilities (that were also paid for by taxpayers). According to the Seattle Post-Intelligencer, in a report presented to the City Council, the cost of the upgrade is not justified on economic grounds. Avid fans actually had the gall to suggest that the expense is worth it because it gives kids a focal point instead of drugs and gangs; therefore, government should pony up the money to redirect a few children’s attention. Whatever happened to schoolyard playgrounds? Supersonics management claims that without the taxpayer rip-off, they will continue to lose money, but that situation is fairly common. Team owners don’t make their money until they sell the team, making hundreds of millions of dollars on the transaction. But if you were an owner, and the government was stupid enough to offer to pay your bills, would you complain, especially if you were multi-gazillionaire Paul Allen? In separate articles, one revealed that the if the taxpayers elect to pay for the upgrades, the Supersonics want to manage all events held at the facility – and keep all of the profits. Wow! What chutzpah! In the second article, the author suggested that the $220 million instead be used to rebuild the many overused and outdated playfields and youth sports facilities in the city, since one of the arguments advanced to spend the money was to provide a safe haven for children. And as a third option, the Apathetic Voter suggests that no taxpayer money be spent at all, instead of incurring more debt those same children will be obligated to pay in the not too distant future.
03/01/06	Medicaid	Taxpayers Pay for Sex Change, Penile Implant and Breast Augmentations According to Seattlepi.com, at a time when the state us struggling to find monies to care for the health of the most needy people, state auditor Brian Sonntag found that the state found enough money for a sex-change operation, penile implants, breast augmentation and ear piercings. In his most recent review of state Medicaid expenses, Auditor Brian Sonntag found thousands of questionable expenditures in the 2004 fiscal year. Sonntag said, “You pick up the paper or watch the evening news and you see senior citizens who can't get medications for diabetes and things. And here you see tax dollars being used for things like this, it makes you ask, 'Why?' " The sex change operation, changing a woman into a man, cost Medicaid $9,549.92. The documents show the state spent at least $3,500 to insert and repair penile implants, $40,000 on plastic and cosmetic surgery and more than $100,000 on unauthorized breast implants and augmentation. Two people had their ears pierced at a total cost of $210. I’m sure we would all love to see the medical justification for the state picking up the tab.
03/01/06	Senate	Teachers Get Paid to Take Day Off Governor Christine Gregoire had asked for $38.8 million in the heavily Democratic state for the purpose of helping high school students who are required to pass the Washington Assessment of Student Learning test. Starting in 2008, students must pass the test in reading, math and writing in order to get their diplomas. According to the Seattle Post-Intelligencer, the Senate is now floating a proposal to take $13 million of that money for teachers to take a day off in any way they want. The state currently has two such days allocated for use by schools to provide teacher training, but one day was removed by the state four years ago. Now if Washington teachers work the same number of days as teachers on the east coast (180-190 days), is it unreasonable to ask the teachers to work one or two more days per year to advance their own education, while keeping that day to teach students, their primary function? Senate Ways and Means Chairwoman Margarita Prentice (Democrat, Renton) said, “We felt the day had been removed. We were giving it back. “ Senator Joseph Zarelli (Republican, Ridgefield), apparently one of the few voices of reason, said, “You’re sending teachers off to some historical place to have a conversation about stuff. You’re paying every teacher in Washington State to take the day off.” And finally, Paul Gruppy, research director for the Washington Policy Center, said critics of the teacher union would focus on that extra day for teachers in the Senate plan. It “could be seen by the public as a boondoggle for teachers, instead of academic instruction that directly helps students,” backfiring on the Democrats.
04/01/06		Major Employer Quitting State Services Group of America plans to move its headquarters from Seattle to Scottsdale, Arizona taking 90 jobs, blaming Washington’s estate tax. According to the Seattle Post-Intelligencer, the company has $2.5 billion in annual revenue, 4,000 employees nationwide, and 1,100 in Washington. Tony Stewart, the owner, said, “With the Legislature and the governor imposing the highest state inheritance tax in the nation on family-owned companies, it has left us little choice but to move. Along with other long-term financial considerations, this one threatens the long-term future of the company.” Arizona has phased out its estate tax, while Washington Department of Revenue spokesman noted that any tangible property or real estate remaining in the state would still be subject to the 19 percent tax. The estate tax has been a major issue at both the state and federal levels, with opponents arguing that the tax burden can force the sale of a family business and that it might discourage development or relocation of entrepreneurial enterprises to the state.
04/01/06	Seattle County Maintenance	Manager Paid $132,841 to Sit At Home According to the Seattle Post-Intelligenzer, County Maintenance Manager Robin Bishop has sat at home for 16 months waiting to see if she was fired. On Oct. 27, 2004, they placed Bishop on paid administrative leave and began investigating complaints against her. A county employee for nearly 20 years, she has continued drawing a salary of $97,146 a year since then. Bishop is about to be terminated for what her boss told her in a letter last week was a "serious and ongoing pattern of mismanagement of personnel matters as well as ... failure to fulfill the reasonable expectations for a section manager." The letter cited numerous examples of alleged incompetence. Bishop has requested a hearing to contest the allegations against her, as she has a right to do under civil service rules. For that reason, she probably can't be fired before the end of March, according to Kathy Brown, the county facilities management director and Bishop's supervisor. By then, Bishop will have been paid more than $140,000 since being sent home.
08/01/06	Property Taxes	Beware of the “Bottomless Pit” of Transportation Tax Increases Seattle, the darling of the liberals, is toying with the idea of massive new tax increases to improve Seattle’s roads, sidewalks and bridges. The unprecedented proposal could boost by as much as 34 percent how much the city collects from property owners -- nearly six times what current law allows. The property tax is the centerpiece of a 20-year package to repair and improve Seattle's roads, sidewalks and bridges. Officials roughly estimate it would cost taxpayers $1.6 billion, including a $25-per-worker annual business fee and 10 percent surcharge on commercial parking. Politicians must get voters' approval for their proposal to increase property taxes as much as 5 percent each year from 2007 through 2012. City officials predict that over the lifetime of the 20-year package, the typical homeowner would see a tax-rate increase of 38 cents for every $1,000 of property value. For a $400,000 house, that would be more than $150 annually. But that’s only an estimate of the final costs. The actual costs may be 6 times higher. "It's an unprecedented levy in its size and duration," said City Councilman Peter Steinbrueck. "It's seriously lacking in public accountability and taxpayer accountability.” Washington law limits how much cities and other taxing districts may collect overall, but does not limit how much they charge individuals. Each year, governments may increase their total tax levy by 1 percent, according to a measure voters approved in 2001. The proposal has two noteworthy (read screw the taxpayers) provisions: 1. The tax could last forever 2. Most levy proposals specify a definite price: A tax increase valued at a specific amount for specific projects. In this case, politicos want to increase overall tax collections by a potentially variable percentage. The increase would be the lesser of these measures: 5 percent a year or the rate of construction inflation. Seattle residents, show some chutzpah. Reject this and any other ballot provisions that increase your taxes.