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Absolutely, let’s “wall off” (i.e., assure) state money for education
September 3, 2012
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by David Safier
Sometimes I agree with Tucson Citizen's Mark Evans, sometimes I don't. Right now, I disagree vehemently with his argument against the one cent sales tax for education initiative Prop. 204. (If you got the Monday paper edition of the Star, you may have read his column there, but it's only online at the Citizen.)
Mark's a smart guy, and he makes a complex argument, but it's wrong-headed. You know the adage, "The perfect is the enemy of the good"? Mark's argument is an example of "The theoretical best case scenario is the enemy of what's happening down here on planet Arizona."
Basically, Mark says, rightly, that the one cent sales tax initiative makes sure the state doesn't spend any less on education than it did in the 2011 or 2012 budget, and the sales tax revenues will be added on top of that figure. Mark hates that idea.
[T]o use the initiative process to wall off billions of dollars from budget writers only makes Arizona’s overall fiscal problems worse and, on balance, is bad policy.
He acknowledges there's a reason to "wall off" the money: to stop the Republican-majority lege from just rolling the money from the sales tax initiative into the budget and either maintaining or lowering spending for education. If the initiative passes and the sales tax dollars are added to current spending, that will result in a $500-$600 per student funding increase (If that sounds like a lot of money, read on). But even though Mark acknowledges that's the only way to assure the money will go to education and he acknowledges we need more money for education, he thinks the "walling off" the funds will stop the state from responding responsibly if there is a serious economic crisis.
Mark's solution? Elect better legislators who will do the right thing for education. It's a lovely idea in that better, theoretical world of his. But down here on planet Arizona, it's a pipe dream to think the state's voters will elect enough progressive legislators to repair our broken tax system (broken, among other reasons, because the income tax has been cut by a third over recent decades, which has beggared the budget) any time in the foreseeable future. Meanwhile, Arizona's children (the state's future) are getting screwed out of the education they deserve.
We are now dead last in the amount we spend per student, as we have been for years, and if our children get that added $500-$600, we'll still be dead last. So to say the lege should be allowed to cut education funding still further if the economy goes further south is to say it's OK to balance the budget on the backs of our children, who are already carrying too much of the burden on their shoulders by having their educational opportunities diminished.
The crumbling of the Imagine Schools empire: Georgia edition
September 3, 2012
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by David Safier
The CEO of Imagine Schools, Dennis Bakke, is using the same expand-or-die model for his charter school empire he used for the energy company he ran, AES Corporation, which he nearly ran into the ground by over-borrowing. Bakke appears to abide by the motto of the shark: Keep moving or die. It may be time for Bakke to pay attention to the line in "Annie Hall" where Alvy Singer/Woody Allen says to Annie Hall/Diane Keaton about their relationship, "What we got on our hands is a dead shark." (For Woody Allen fans, you can watch the classic 16 second scene below the fold.)
Six Imagine Schools in St. Louis closed in June because of abysmal test scores. Other Imagine Schools around around the country (including in Arizona) are hemmoraging money. And all three previous Imagine Schools in Georgia have cut ties with the corporation. The latest is Wesley International Academy charter in the Atlanta area. Without Imagine at the helm, its rent has been cut from $1.1 million to $540,000 per year, and it's no longer paying management fees to the corporation, which means more of its money can go toward educating students. (The charters of the other two schools, by the way, were not renewed.)
With news stories across the country about Imagine's failing schools as well as those economically crippling rent costs and management fees, what state in its right mind would grant the corporation a charter for a new school? This could signal the beginning — or the early middle — of the end for Imagine.
On Labor Day, the Star runs an op ed from the Chamber of Commerce
September 3, 2012
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by David Safier Happy Labor Day, the day when we celebrate workers and all they've done for our country. They built this country, damn it! What does the Star do on Labor Day? Well, it runs a nice editorial about raising the minimum wage, reminding us that if we keep the value of the dollar … Read more
Washington Post examines Romney’s retirement package from Bain Capital
September 3, 2012
Posted by AzBlueMeanie:
The Washington Post examines Willard "Mittens" Romney's retirement package from Bain Capital today, with an emphasis on the "carried interest" tax deduction only available to the super-rich, and his supercharged IRA account. Mitt Romney exited Bain Capital with rare tax benefits in retirement – The Washington Post:
Before Mitt Romney retired from Bain Capital, the enormously profitable investment firm he founded, he made sure to lock in his gains, both realized and expected, for years to come.
He did so, in part, the way millions of other Americans do — with the tax benefits of an individual retirement account. But he was able to turbocharge the impact of those advantages and other tax breaks in his severance package from Bain in a way that few but the country’s super-rich can ever hope to do.
As a result, his IRA could be worth as much as $87 million, according to his estimates, and he can continue to earn tax-advantaged income from Bain more than a decade after he formally left the firm.
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The structure and tax treatment of his retirement, including the IRA, was legally sound and appropriate, [Bain] says, adding that he has earned less money over his career than some other top private-equity executives, who earned billions of dollars during the same period.
Details of Romney’s retirement assets are somewhat vague because he has released only one year of full tax returns and declined to provide additional specifics about his personal finances. But interviews with Bain executives and accounting professionals show that he was able to take advantage of tax benefits in innovative ways open only to a narrow slice of extremely affluent people — mostly those who work in private-equity firms and other investment partnerships.
Parade Magazine profile of the Obamas
September 2, 2012
Posted by AzBlueMeanie: Parade Magazine, the Sunday newspaper insert, published a profile of Barack and Michelle Obama today in advance of the DNC National Convention. If you didn't get the Sunday paper, you can read it online. A Conversation With the Obamas. It's your typical Parade fare. I was most impressed with the photos that … Read more
Isn’t it Time to Take to the Streets?
September 2, 2012
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Posted by Bob Lord All pretense regarding the purpose for the restrictive voting measures that swept the country has been peeled away. Weeks ago, a Pennsylvania Republican outright boasted how their passage of the voter ID law would allow them to deliver Pennsylvania to Romney in November. There's no shame. There's no contrition. There's no … Read more
The 2012 GOP Platform
September 2, 2012
Posted by AzBlueMeanie: Last week the RNC mistaklenly posted a draft version of its 2012 GOP Platform to its web site before it had been voted on and approved by the delegates. Politico captured it before it was taken down, and it became a news item. The "official" 2012 GOP Platform is now online (Download … Read more
Revisiting Old Posts — One On, One Off
September 2, 2012
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Posted by Bob Lord In my first substantive post here, back in January, I described how we were living through the "Atlas Shrugged Upside Down," a society where damaging conservative policies are allowed to proceed to their crazy conclusion. You can read it here: http://www.blogforarizona.com/blog/2012/01/atlas-shrugged-upside-down.html Turns out, I was on point in two respects. First, the … Read more




