A m e r i c a n P o s t – G a z e t t e
Distributed by C O M M O N S E N S E , in Arizona
Tuesday, May 15, 2012
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Arizona Politics for Conservatives: Sonoran Alliance
Arizona Politics, News, Commentary and Information with a Blatantly Conservative Worldview Presented by an Alliance of Writers, Activists, Consultants and Government Insiders.
A m e r i c a n P o s t – G a z e t t e
Distributed by C O M M O N S E N S E , in Arizona
Tuesday, May 15, 2012
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A m e r i c a n P o s t – G a z e t t e
Distributed by C O M M O N S E N S E , in Arizona
Tuesday, May 15, 2012
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A m e r i c a n P o s t – G a z e t t e
Distributed by C O M M O N S E N S E , in Arizona
Sunday, May 13, 2012
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By Byron Schlomach, Ph.D.
After well over four years in Arizona, my wife and I have finally sold our property in Texas and we’re ready to buy a house here. I work near downtown Phoenix, but we’d like a little room and we’re not flush with cash, so I’m willing to drive. That means we could choose to live in most communities in the Valley, as long as they’re within about 20 miles of downtown Phoenix. One city in particular, though, is scratched off the list: Glendale.
I personally consider some parts of Glendale to have a lot of potential. There are some nice neighborhoods, some good schools, and drive times would be tolerable. The idea of moving to Glendale, however, looks too much like a crapshoot. If I wanted to gamble, I could go to a casino. But I don’t want to gamble with an asset as big and as important as a house.
The risk comes from the fast-and-loose way Glendale’s leadership has played with taxpayers’ money. The city has used sales tax proceeds to guarantee bonds for sports venues I personally would never use. It is also paying the National Hockey League to keep the Coyotes at Jobing.com Arena. Meanwhile, parks and a library annex, things I might use, will not be funded at levels once expected. Facing a $35 million budget deficit this year alone, the city is literally teetering on the edge of bankruptcy.
Top this off with a sales tax increase that will make Glendale’s the highest sales tax rate in the nation among major cities, and an expected property tax increase, and I cannot predict what my cost of living in Glendale is likely to be. At this rate, the value of any house I buy could be hurt just by being located in Glendale.
I love my family. I’m not taking the chance. I’m not buying a house in Glendale.
Dr. Byron Schlomach is the director of the Goldwater Institute’s Center for Economic Prosperity.
Learn more:
Arizona Republic: Glendale Leaders Mull Proposed Hike in Property Taxes, Layoffs
Tax Foundation: Glendale Considers Sales Tax Hike to Highest in Nation, Property Tax Hike
By Carrie Ann Sitren
How do you close a $35 million budget gap? Perhaps the better question is why that hole was dug in the first place. One answer for the City of Glendale is hockey. In fiscal year 2012, the city added $20 million (up from only $1.2 million the year before) to its operating budget for the Jobing.com Arena, where the Phoenix Coyotes hockey team plays. The NHL has been demanding financial support from the city since 2009, when the team filed for bankruptcy.
Instead of looking for ways to cut arena operating costs, city officials are considering a 0.8% increase in the sales tax. This would make Glendale the city with the highest sales tax rate in the nation. It would also be enough to cover the $20 million city payment for Coyotes hockey next year.
In other cities, like Oakland, taxpayers don’t pay high dollars for someone else to manage their arena. Instead, professional management groups compete for that right. Arena management can be a profitable business, with groups maximizing concert and other entertainment events and keeping the revenues from concessions and ticket sales. Meanwhile, cities benefit because they don’t have to pay the operating costs. In some arena contracts, like the Sprint Center in Kansas City, the city also gets a cut of the profits. Last year, arena management added $1.8 million to Kansas City’s budget.
A few million dollars in the door would be a well-needed substitute for $20 million going out of Glendale for its arena. We have yet to see city officials open bidding for management. Given the heavy competition for it in other cities, Glendale should consider that option before asking taxpayers to cough up more sales taxes and for another year of hockey.
Carrie Ann Sitren is an attorney with the Goldwater Institute.
Learn more:
Goldwater Institute: Goldwater Institute v. City of Glendale
Arizona Republic: Glendale Budget Looking Bleak
Associated Press: No Team, No Problem for Kansas City’s Sprint Center
By Byron Schlomach
Amid calls for increased state spending and fears of 2014 program cuts, some are calling for extending 2010’s sales tax increase indefinitely. However, Arizonans should understand how much their state and local governments cost before we let them charge us even more.
The graph below shows state and local governments’ direct expenditures as a percentage of private GDP for four states and the 50-state U.S. average from 1985 through 2009. This cost-of-government measure reflects government’s affordability to taxpayers.
Some states with high incomes and GDPs can conceivably “afford” more government. One of the most affordable state and local governments in the country in 2009 was Connecticut’s, partly because incomes (and GDP) in Connecticut is high. Currently, as can be seen in the graph, liberal New Jersey’s governments were more affordable than ours.
The percentage can go up because government spending rises or because GDP has fallen. GDP in Arizona has fallen lately (as it has in virtually every state) and this graph demonstrates that Arizona’s state and local governments have failed, worse than most, to shrink with Arizonans’ ability to afford them. Even before the recession, though, since 1999 the general trend has been less affordable government in Arizona.

In 1990, Arizona’s government burden as a percentage of private state GDP was the highest of all 50 states. The following decade saw tax cuts that shrank Arizona’s government burden until we were below the U.S. average. As a result, our economy boomed.
Now Arizona’s state and local governments are again above average in cost. Our government burden is closer to that of California than Texas, and the difference between the two states is striking. California’s unemployment rate is nearly 11 percent; Texas’ is above 7 percent, but only because so many people are moving there.
The numbers show that Arizona has failed to keep government small and economic growth high. We seem more focused on being a tired, flaccid has-been like California instead of an energetic economic leader like Texas.
Our state legislative leadership has it right: Resist increasing spending. Reduce the risk of raising taxes later. And lower the burden of government.
Dr. Byron Schlomach is the director of the Goldwater Institute’s Center for Economic Prosperity.
Learn more:
American Legislative Exchange Council: Rich States Poor States (PDF)
Joint Legislative Budget Board: (Legislative) Budget as Introduced (PDF)
Office of Strategic Planning and Budgeting: The Executive Budget Recommendation (PDF)
A m e r i c a n P o s t – G a z e t t e
Distributed by C O M M O N S E N S E , in Arizona
Saturday, April 14, 2012
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Phoenix, Arizona – A recent study by CREW, Citizens for Responsibility and Ethics, found that Congressman Jeff Flake has no shame when it comes to the amount of government money he is willing to waste. Phoenix’s KPHO-TV highlighted the study’s findings in which Congressman Flake has reimbursed himself $20,000 for travel, meals and other expenses. In a time when our country faces over $15 trillion of debt and 14 million Americans are unemployed, Congressman Flake thinks we should be footing the bill for his extravagant congressional lifestyle. When KPHO-TV reached out to Congressman Flake for an answer on why he finds it appropriate to waste $20,000, the sixth term congressman had no response.
Arizonans can’t afford Congressman Flake!
In case you missed it…
KPHO CBS Channel 5
Study: Some AZ Reps. Use position to benefit themselves
PHOENIX (CBS5) – Do you ever wonder how much money your lawmakers give to groups?
A new study spells it all out for the United States House of Representatives.
Of Arizona’s seven representatives, only three are mentioned in the study.
The group behind it is CREW, or Citizens for Responsibility and Ethics in Washington.
It decided to look into how many U.S. representatives used their positions to benefit themselves or their families.
The group claimed the answer is more than half.
People like Rep. Ron Paul, who’s campaign paid more family members than any other representative, the study said.
You’ll also see Congressman Jeff Flake, Ben Quayle and Ed Pastor mentioned.
Quayle seems to be the lightest offender in the report.
It said he gave $250 to his dad’s company for facility rental and staffing services.
The report claimed Flake reimbursed himself nearly $20,000 for travel, meals and other expenses.
Then there’s Rep. Ed Pastor.
According to the report, his wife and nephew used to work with Chicanos Por La Causa, and CREW claimed Pastor has earmarked more than $1.8 million to the group from 2008 to 2010.
The report also said Pastor gave his daughter a big one up on the competition getting her a job at South Mountain Community College.
It said Pastor earmarked nearly a million dollars in 2008 and 2009 to the school’s ACE program and steered over a million dollars in federal grants to the program four months after his daughter was hired.
Coincidentally, her salary was at the very top of the pay scale.
CBS 5 News reached out to Quayle, Flake and Pastor for this story.
The only one who responded was Pastor.
His office said he has declined to comment.
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Michael Monti says taxpayers would be left holding the bag for Mark Mitchell’s boondoggle
(Tempe, Arizona) Mark Mitchell has recently been touting his ‘plan’ for a Tempe Conference Center, but he has failed to say who will pay for it. That’s because it’s the Tempe taxpayers who would be on the hook for millions.
Businessman and candidate for Tempe Mayor Michael Monti points out that Mitchell has done little to outline specifics of his conference center plans and has been unable for over a decade to get ASU on board, “Any plan must include ASU, the leading State agency in Tempe, which could contribute a significant amount to such a project merely by agreeing to book all of its guests into such a hotel and conference facility. Mark Mitchell has been on the Tempe Council for 12 years, has talked about a Tempe Conference Center his entire 12 years, and has never been able to get ASU to the table in such a proposal.”
Michael Monti has delivered detailed proposals and even held community forums for a plan to bring a public swimming beach to the Tempe Town Lake, without taxpayer funding. Meanwhile the centerpiece for the Mitchell campaign, his proposed hotel/conference center, is scarce on details. What we do know is that such projects, like those in Phoenix, can cost taxpayers dearly. The Phoenix Convention Center? $600 Million. But where will the funds for a Tempe version come from at a time of budget cuts and tax increases?
In addition, the Valley has a number of conference centers. If Tempe were to build one, it would be competing regionally in an already saturated market.
Monti is well aware that he might derive a financial benefit from a downtown Tempe Conference Center, but he still feels the idea is out-of-step and misplaced, “As a Mill Avenue business owner I realize such a project may be good for my business, but I think it would be a bad idea for the city. Secondly, I think it’s time we start looking to south Tempe for civic projects. The Mill Avenue corridor is blessed with a host of amenities. It’s time south Tempe had a bigger say in these decisions.”
Monti is calling for Mitchell to lay out a detailed budget of this project as well a plan to make certain taxpayers won’t be left with the bill.
Monti said, “I am all for bringing more tourists to Tempe. My personal livelihood depends on it. But I am not willing to soak the taxpayers for such a project. The Tempe city budget cannot survive a spending spree by Mark Mitchell merely to satisfy an insatiable need to spend taxpayer money. If built with public money, this project would only serve as another monument to a politician. We should learn from missteps made by other communities (City North in Phoenix) with regard to developer incentives and taxpayer subsidies. If the private sector could cover the entire cost, that would be great. If not, then we need to take a pass on this given the fragile state of our city budget.”
Michael Monti, owner of Tempe’s historic Monti’s La Casa Vieja, co-founded Local First, Arizona. He is also active in the Tempe Diablos Charities, and is the youngest inductee in the Arizona Restaurant Association’s Hall of Fame.
To make a campaign donation on line click here here or mail a check to
Monti4Mayor
P.O. Box 24476
Tempe, AZ 85285
His campaign is based on bringing private sector ideas to government, fiscal responsibility, civic involvement, economic opportunity, and innovation. His proposals include:
Financial incentives for city workers who save tax dollars
The creation of the Tempe Community Corps to increase volunteerism, and aid Tempe neighborhoods
Partnerships with ASU and the business community to bring more jobs to Tempe
The creation of a public swimming beach at Tempe Town Lake, paid for by the private sector
Partnerships with the ASU College of Nursing to aid Tempe seniors
Encouraging businesses to embrace eco-friendly projects such as the Blink Car Charging Stations at Monti’s La Casa Vieja
A ban on texting while driving in Tempe
A gift ban and stricter reporting requirements for Tempe elected officials
An eight year term limit for the mayor’s office
Arizona leaders and organizations that have endorsed Michael Monti include:
Tempe Mayor Hugh Hallman
Tempe Council Member Onnie Shekerjian
Tempe Democrat and Former Council Member Barbara Sherman
Tempe’s first elected Mayor, Rudy Campbell
The Tempe Chamber of Commerce
Arizona Attorney General Tom Horne
Maricopa County Attorney Bill Montgomery
Congressman David Schweikert
Former Tempe City Council Member ‘Hut’ Hutson
Former State Rep. Laura Knaperek Tempe Democrat Carl Hayden
Former Tempe Councilman Joseph Lewis
Scottsdale Mayor Jim Lane
Barry Goldwater Jr.
Former State Senator and Tempe Councilwoman Bev Hermon
Former Tempe Council Candidate Angie Taylor Thornton
To visit the Monti4 Mayor Website click here or log on to www.monti4mayor.com (@monti4mayor).
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“Time to cut up Washington’s credit card”
(Tempe AZ) Lt Col Wendy Rogers has signed the Cut, Cap and Balance Pledge. The pledge was a created by a coalition of over 40 conservative grassroots organizations who are calling on elected officials to support spending cuts and balancing the federal budget.
“Let’s face it,” said Rogers, “Our nation is broke and it’s time to cut up Washington’s credit card once and for all. I refuse to put my children and grandchild deeper into debt,” she continued. “Only by balancing the budget and finally controlling government spending is this going to happen.”
The original bill, which was approved by the House but rejected by the Senate, limited 2012 spending to $82 billion less than current spending levels, and it capped overall federal spending as a percentage of GDP, bringing it to less than 20 percent of GDP by 2017. The bill provided for a debt ceiling increase if and only if Congress sends a constitutional balanced budget amendment to the states for a vote.
The full text of the pledge reads:
I, Wendy Rogers, pledge to oppose any debt limit increase unless all three of the following conditions have been met:
Cut – Substantial cuts in spending that will reduce the deficit next year and thereafter.
Cap – Enforceable spending caps that will put federal spending on a path to a balanced budget.
Balance – Congressional passage of a Balanced Budget Amendment to the U.S. Constitution — but only if it includes both a spending limitation and a super-majority for raising taxes, in addition to balancing revenues and expenses.
Lt Col Wendy Rogers is a 20-year career veteran of the United States Air Force and was one of the nation’s first female pilots in today’s Air Force. She owns a small business in Tempe with 10 fulltime employees. Lt Col Rogers is running for Congress from where she has lived for the past 15 years in Arizona’s newly created 9th Congressional District, which includes Tempe, and parts of Phoenix, Scottsdale, Mesa and Chandler. Campaign website is www.WendyRogers.org.
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Every so often talk arises about holding an Article V Amendments convention amongst the states to amend the Constitution, since Congress has become increasingly unaccountable. In reaction, dire warnings spring up declaring that a “constitutional convention,” or “con con,” could result in a runaway convention where radical changes are made that fundamentally rewrite our Constitution. Are the doomsday warnings legitimate, or simply scare tactics to block desperately needed reforms?
Legislation is currently being considered in most state legislatures that would begin the process of adopting a National Debt Relief Amendment. Once ratified, it would prohibit Congress from increasing the federal debt unless a simple majority of the states approve. So far, North Dakota and Louisiana have passed the initial legislation with bipartisan support in both chambers of their state legislatures. Ultimately, 38 states will need to ratify the amendment. The language of the proposed amendment is very simple, “An increase in the federal debt requires approval from a majority of the legislatures of the separate states.”
Article V of the U.S. Constitution lays out the process by which amendments are added to the Constitution. Amendments may be proposed by either the states or Congress. Throughout America’s history, amendments have only been proposed by Congress. If proposed by the states, an amendment must then be ratified by three-quarters of the states or by conventions within the states. It is the initial convention called for by the states to propose amendments that naysayers, including some on the right oddly enough, claim may cause dangerous changes to the Constitution, even though it has never happened before.
The Founding Fathers rejected initial drafts of Article V that would have permitted open-ended conventions, and instead adopted very narrow, precise requirements. They rejected language four times that would have provided the mechanism for a full constitutional convention. In Federalist No. 85, Alexander Hamilton explained that states did not need to call for a full constitutional convention since Article V provides full power to amend the Constitution. James Madison specifically supported the use of Article V in Federalist No. 43. Accusations that an Article V Amendments convention will result in a full-blown “constitutional convention” or “con-con” are not correct. There is no such thing as a constitutional convention – it can be found nowhere in the Constitution.
The Goldwater Institute, considered the premiere state-based right-leaning think tank in the country, has published numerous papers explaining why an Article V Amendments convention to consider the National Debt Relief Amendment should not be feared. Nick Dranias, Director of the Goldwater Institute’s Center for Constitutional Government, wrote an essay entitled “Runaway Convention Myth Debunked,” in which he relayed the history of Article V, declaring, “Despite claims made to the contrary, the truth is that Article V does not provide authority for a foundational constitutional convention. The Founders specifically and repeatedly rejected efforts to substitute the current Article V language to allow for a foundational constitutional convention to be called.”
The National Debt Relief Amendment proposes only one amendment, specifically limiting the convention to consideration of that amendment only. Throughout each step of the way the process is set up to focus on one specific amendment; it is not like a flurry of amendments can be introduced at the last minute and shoved through. First, 34 states must pass resolutions proposing the exact same amendment. Next, delegates to the convention are selected by the state legislatures. Delegates that disregard their mission can be recalled and replaced. If there are attempts to consider things outside the scope of the proposed amendment at the convention, lawsuits can be filed to halt this activity, or Congress can refuse to send the results to the states for ratification. Finally, 38 states are required to ratify the results. 38 states are very unlikely to ratify something nutty – not even 10 states would ratify something nutty.
I received a shadowy email from an unidentified organization on Tuesday urging readers to oppose the bill in Arizona’s legislature. Why was the email anonymous? The opposition did not bother to speak up at the Arizona legislature’s committee hearing earlier this session against the bill. Nor did they at the Idaho legislature. Why are they afraid to debate their position publicly?
State Senator Curtis Olafson (R-Edinburg, N.D.) is leading the effort to pass a National Debt Relief Amendment through RestoringFreedom.org. He participated in Harvard’s Conference on the Constitutional Convention last fall, which included viewpoints from all across the political spectrum addressing the feasibility of an Article V Amendments convention. As part of the conference, the audience was permitted to suggest amendments. When some extreme sounding amendments were proposed, the speakers and the rest of the audience ignored the proposals. Olafson believes this is representative of how delegates chosen by state legislatures to conduct an Article V Amendments convention would treat radical amendment proposals. “Well-respected people would not suddenly develop collective insanity and go against instructions from state legislatures,” Olafson said. “Fearmongers like to speculate crazy scenarios.”
Congressman David Schweikert (R-AZ) introduced legislation in January at the Congressional level to start the amendment proposal. State Senator Art Wittich (R-MT), who is leading the effort to get the legislation passed in Montana, applauds concurrent federal legislation, but says that getting the amendment through Congress will be tougher. “It is politically easier for Congress to cut taxes than the budget, an inherent imbalance, and there is no incentive to exercise fiscal responsibility,” Wittich says. “Getting new members elected to Congress who would support this amendment is difficult since incumbents have vast advantages in elections due to redistricting, franking, etc. Since many states already prohibit deficit spending, they are already inclined to support this.”
It is disappointing that opponents are using fear to scare people – opponents who do not even have the guts to identify themselves. Article V is possibly the only tool we have left to fight the unaffordable expansion of federal government. Most of the 50 states are now considering National Debt Relief Amendment legislation. Tea Party groups and anyone concerned with the government’s runaway spending should lobby their legislatures to pass this legislation. Some of the states are also considering a balanced budget amendment. This is another amendment that will help rein in spending and would be easier to push through state legislatures than through Congress.
Senators Olafson and Wittich believe that detractors have it backwards. “People should fear the status quo of out of control spending more than they should fear an Article V Amendments convention,” Wittich said. Senator Olafson expanded, “For those who preach fear about a runaway convention, we have a runaway convention right here in front of our eyes, it is a runaway Congress with out of control spending, czars, and Obamacare. It was clearly the intent of the Founding Fathers that we, as state legislators, would understand that not only do we have a right to use Article V, but moreover, that we have a duty to use Article V when we see a serious challenge facing our nation that is not being solved by Congress.”
Olafson leaves detractors with this challenge:
For those of you who preach that we should fear an Article V amendments convention, I have two questions for which I would challenge you to provide logic-based answers.
1. The Founders included a process in Article V for the states to propose and ratify amendments that does not require any approval by Congress. Why would they provide the states that power and that process if they did not intend that the states should use it?
2. Can you provide for our enlightenment your official list of the 38 states that all of us should fear would ratify a dangerous, extremist or radical amendment?
Is the U.S. economy falling off the cliff? Watch the fireworks fly as Arizona Congressman David Schweikert talks takes, entitlements, Geithner’s amnesia, and the Left’s serious math problem on CNBC’s Kudlow Report.
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A prior Sonoran Alliance post covered Associate Justice Gingsberg’s appalling remarks about the US Constitution and her praise for the South African Constitution with its guarantees of food, water, shelter, healthcare, and social security listed as basic “human rights”.
What are the consequences of actually trying to make good on guarantees like that? One need look no further than Europe. Riots over entitlement cutbacks are now a common occurrence, and they are only the beginning.
How did Europe get itself into this mess?
If you’re an American older than 30, you may remember:
So where does the vaunted EU stand today?
The EU is tottering on the brink of financial collapse. It has fallen victim to (1) the statist / collectivist / socialist infection that has sickened Europe for well over 100 years, and (2) the rampant entitlement mentality that European politicians have cultivated for over 60 years as they sought votes and power.
Regarding that entitlement mentality, you may have heard of:
In fact, entitlements have become so thoroughly embedded in EU cultures that they are now enshrined in the EU Constitution as human rights (something the Great American Left is working to emulate in our own country).
Predictably, over-taxed and over-regulated, the EU economies could not long generate the surplus wealth needed to pay for all their promised amenities. With two full generations of citizens trained from birth to expect their state-granted “human rights”, it’s small wonder that any attempted cut-backs have been met with strikes, demonstrations, boycotts, and protests, including violent ones.
Now the jig is up. It’s time to face the music. Herman Van Rompuy himself, the President of the European Council, has put it crisply and clearly:
We cannot finance our social model.
Well, if it’s any comfort, Mr. Rompuy, we in America can’t finance ours either. Just our entitlement programs and debt service already consume all our tax revenue, and we’re desperately borrowing and printing over $4.7 billion per day to pay for the overrun as well as everything else. And this is no temporary bump in the road. With over 10,000 baby boomers retiring every day, the deterioration is accelerating, seemingly without limit.
Why do so few Americans understand the true depth of this predicament?
Is it because the President and his spokespeople deliberately obscure the problem in a fog of class-envy-based lies that they think will serve them well in the upcoming election? How many times have we heard that “if the wealthy would just pay their fair share”, we could get past our budget crisis? It’s a self-serving canard, but millions of Americans still walk around believing it and repeating it.
Even if we were to cancel the demonized Bush-Obama tax cuts for all Americans (not just the wealthy), we’d only pay for about 28 minutes‘ worth of our current level of borrowing per day. What do we do about the other 23 hours and 32 minutes? (For a fact-based presentation, see the Rep. David Schweikert video at this link, especially at time marker 07:36).
As Bill Whittle has shown, with his own unique sense of humor, even if we were to “eat the rich“, confiscating all their wealth, we could only cover our deficits for about one year. And then what?
A few brave souls in Congress have come to understand our economic crisis in real terms with real numbers. They’ve been trying to reach and teach the rest of Congress and all of America. We need to help them by repeating their message to our fellow Americans just as loudly and as often as we can.
But there’s more than that to do … much more.
It is the incumbent members of Congress who got our country into this mess. It happened on their watch when they were supposed to be looking out for us and our children. And the longer a Representative or Senator has been in office, the more culpable he (or she) is.
Therefore …
Whether Democrat or Republican, every incumbent should be held accountable and compelled by his constituents to answer these questions:
Where were you when these impossibly expensive programs were designed and approved?
Did you warn us? Did you tell us what the debt would be to our children and grandchildren?
Did you vote against the programs? Have you worked to expose them? What are you doing now to reform them?
If an incumbent cannot answer acceptably to his constituents, it is sufficient cause for him to announce he will not run again for office, go home at the end of his term, and not come back. His district or state can then deal with finding a replacement candidate who will take his responsibility to his constituents seriously. We especially need full replacement of the elitist lifetime legislative class representatives and senators who have betrayed us through negligence, lethargy, incompetence, or malfeasance. We do not work for them. They work for us. Our message to them should be simple: You’re fired!
What will happen if these politicians, especially Washington’s lifetime legislators, are not replaced?
Take a good long look at Europe today. As Member-of-European-Parliament Daniel Hannan has put it in his book The New Road to Serfdom: A Letter of Warning to America,
Europe is living in our future
We do not want to go there, and it’s up to us, We the People, to stop it from happening.
By Byron Schlomach, Ph.D.
General Motors is moving 19,000 salaried workers off its pension plan to a 401(k) plan. The move will help reduce the risk GM’s pension poses to the company and investors, including the federal government – i.e., the American taxpayer. GM’s unfunded pension balance is currently $8.7 billion. GM’s profits in 2011 were $7.6 billion.
The new retirement plan makes sense for the company and for employees, who can now take an ownership stake in their retirement savings.
State governments would do well to consider taking similar steps. Arizona’s pension systems have a combined unfunded balance of $16 billion – an official total that is arguably low. State General Fund revenues stand at $8.4 billion, a position far more precarious than GM’s.
Moving state employees to 401(k)-style retirement plans not only makes fiscal sense, but would greatly reduce the risk to taxpayers, who, unlike investors in private companies, cannot simply opt-out of the risk by selling stock.
Dr. Byron Schlomach is Director of the Center for Economic Prosperity at the Goldwater Institute.
Learn more:
Joint Legislative Budget Committee: Historical General Fund Revenue Collections (PDF)
DailyFinance: General Motors Meets on Revenues, Misses on EPS
New York Times: G.M. Changes Pensions for Salaried Workers
I couldn’t believe what I watched yesterday. Three Republican legislators – who all hold themselves out as conservatives – voted in a committee hearing to continue granting print newspapers an exclusive monopoly on public notices. Reps Carl Seel, Jeff Dial, and Terri Proud all voted against HB 2403, which would have brought us into the modern era and permitted public notices to be posted on the internet instead of print newspapers, including on government websites, saving taxpayers lots of money and increasing transparency. Websites like Sonoran Alliance and my IC Arizona would be able to post public notices at a more competitive cost.
I wrote an article fully explaining the depths of this problem here. I received this email today about it: “I work for a newspaper and you’re 100 percent right … but I can’t say anything. Not only does the public pay to put notices in the paper, the law requires purchasing the paper to get the notices. They get you coming and going.”
It may not be too late to revive this bill. Please contact the three Republican legislators who voted against it and express your disappointment. Kudos to the Republican legislators who supported it, Sen. Andy Biggs, Rep. David Stevens and Rep. Justin Pierce.
Carl Seel – cseel@azleg.gov 926-3018
Jeff Dial – jdial@azleg.gov 926-5550
Terri Proud – tproud@azleg.gov 926-3398
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