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Posts Tagged ‘reform’

There are many things we’ve been critical of in regards to our state government, but here’s one area where the state earned high regards from one of our associates.

The Heartland Institute published their 2015 Welfare Reform Report Card  which shows a serious effort by the state to control need-based-aid, often referred to as “welfare”, and to get people who are able to work into jobs and not let them sit around collecting a check while they smoke Newport 100s while their left-wing Statist advocates claim we need to spend more “to help the poor”. There is no shame in providing a safety net for emergencies, such as homelessness, immediate unemployment, physical or mental disability (which prevents work or basic living functions), and hunger.

However, Statists from both major parties, but one in particular, have built a large web of government agencies which employ tens of thousands of public employees whose salaries and benefits drain the Treasury, and whose agencies continuously provide healthy individuals with a basic lifestyle that traps too many healthy, able-bodied people in a cycle of dependence, basically unable to get off the program to take care of themselves. They are then pressured to keep voting for those who redistribute the wealth, because those elected officials come into poor communities bearing horror stories of people dying in the streets, babies and pets going hungry, just before the world ends, if they vote for a candidate who wants to curb the perpetual welfare state. Have you noticed just how many able-bodied people who begin to receive these benefits keep earning them forever, unless encouraged to go find a job?

We at CRI believe human dignity and satisfaction best come from feeling a sense of worth to society as a whole, and being able to work a job which offers the ability to provide for oneself and one’s family, while also saving for future goals- a nice vacation, a house, a nice car, or whatever one desires and can earn through savings and interest. Even the argument over falling worker wages can be resolved using the principles of freedom- healthy market competition boosts worker’s wages by encouraging more hiring so there are more better-paying jobs than people, rather than what we have today, which is more people than better-paying jobs.

The Heartland Institute gave Delaware an overall grade of A- for welfare reform, going back to 2009 when Governor Markell was sworn in. We are ranked the 8th best state for welfare reform, dropping five places from 2008, largely because Delaware has done little to change its welfare reform policies while other states have improved theirs.

Some of their findings:

  • Delaware got top grades for work requirements and for “cash diversions”  (policies allowing case workers to give applicants lump sum cash payments to meet short-term needs), a B for service integration (organizing state human services in a way that allows coordinated, holistic, “one-stop” delivery of services and connects these services to the local community and employers), and C’s for aid limits and sanctions on those who don’t meet comply with eligibility requirements.
  • We spent $6,378 per recipient in 2013 (latest available data), and had just over 13,000 recipients of Temporary Assistance for Needy Families, which has declined 75% since 1996.
  • Where Delaware needs to improve is in anti-poverty measures. Close to 25% of Delawareans receive Medicaid, and sadly we have more children in poverty today than we had 20 years ago when the first set of welfare reforms was passed. Finding jobs for the unemployed poor has been an issue for Delaware, and Heartland ranked us 47th in finding jobs for those who are or were receiving TANF benefits. The only area where Delaware got strong ratings for anti-poverty was in having a low teen birthrate.

Heartland recommended Delaware adopt tougher time limits and do more to enforce them, and other eligibility requirements.

Overall, Delaware has done well in managing the welfare reform, in terms of having strong work requirements and helping people quickly and immediately, without losing control over monies disbursed. The state just needs to help people move off the bottom much faster than they are currently doing.

The photo of President Clinton is in the Public Domain and was taken from Wikipedia.

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Legislative Hall in Dover, Delaware

This article originally appeared at the Watchdog.org website on January 20, 2015. Read the original at http://watchdog.org/193657/legislative-priorities-2015-delaware-way/

Last week was the first week the state Legislature was in session, but they will soon adjourn for budget and finance hearings before getting back to lawmaking in mid-March. Five new representatives and one new senator took their oaths of office for the first time, but this Legislature looks almost identical to the last one: the Democrats control the governor’s mansion, the House of Representatives 25-16, down from 27-14 last year, and the Senate 12-9, down from 13-8.

Notably absent from the last General Assembly were bills to make Delaware’s economy more free as the state—well-known as the “Switzerland of America” for its easy incorporation process and fair Court of Chancery—faces competition from Nevada and North Dakota for corporate business and from the Sun Belt for jobs. This year the Caesar Rodney Institute hopes to see legislation to address the following issues:

1. Education Savings Accounts: Delaware has “school choice”-IF your idea of school choice is to allow a child to transfer from one public school district to another (provided that district has room).While that’s better than nothing, that’s not really school choice.

CRI supported a bill last year called the “Parent Empowerment Education Savings Account Act” (PEESAA) which would have introduced Education Savings Accounts as an option for low-income and special-needs students who are the most likely to need additional services not being offered by the traditional public schools. This bill was tabled in the House Education Committee but we hope ESA’s and other bills encouraging school choice are brought up this year.

2. Prevailing Wage (PW): Delaware has an insanely wide range of wages a that business who wants a public construction contract has to pay its employees to get the contract.

Every January the state Department of Labor mails out its PW survey to union-friendly contractors and conveniently “forgets” to remind non-union-friendly construction companies to ask for, and return, the survey. This results in wage variance like $14.51 per hour for a bricklayer in Sussex County, but $48.08 per hour for the same job in Kent and New Castle Counties. Not to be outdone, boilermakers get $71.87 an hour in New Castle County, but “only” $30.73 in Kent County.

These high rates prevent many construction projects from being started and make those which are done more expensive for taxpayers. If the PW won’t be eliminated, we hope the state will instead use the U.S. Occupational Employment Statistics survey. This would reduce rates by almost 40 percent on average and free up nearly $63 million of spending from the State’s FY15 capital budget, including almost $18 million for more school capital improvements.

3. Make Delaware the next right-to-work state: Delaware is not a right-to-work (RTW) state and, between that and our inconsistent-as-applied PW law, many businesses outside the state choose not to move here. Incorporating and buying office space in Wilmington for some high-paying executive jobs is one thing. But Moody’s Analytics in late 2013 said Delaware was the only state at immediate risk of falling back into a recession and a lot of this is due to more businesses closing than opening in Delaware. Pass legislation to end forced unionization and support pro-job growth policies instead.

4. Tax and regulatory reform: Only five states have a Gross Receipts Tax, which is a tax on revenue generated before profit and loss is factored in. Three of those states have no further taxes on corporate earnings and the only other state (Virginia) that does has lower tax rates. Between this tax, high personal and corporate income taxes, franchise taxes, and overall over-regulation by state agencies, Delaware is increasingly threatening its “Incorporation Golden Goose” as Nevada and North Dakota work to take business from the state. This needs to be addressed.

5. Work to lower energy prices: Delaware has electric rates 25 percent higher than the states we compete with for jobs like nearby Virginia. We import close to one-third of our electricity from out of state, the highest rate in the nation. Some of this is due to our geography, but a lot of it is due to the state’s failure to build a network of natural gas pipelines from the Marcellus Shale to Delaware.

Coupled with the state’s participation in the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme and taxpayer subsidizing of “green” companies like Bluewater Wind (gone), Fisker Automotive (didn’t build cars in Delaware), and Bloom Energy (still has not brought the promised 900 high-paying full-time jobs), Delaware cannot grow its economy if energy prices are high. We want the Legislature to pass natural gas pipeline extension and end participation in RGGI and subsidies for “green” companies.

What issues do you think the state Legislature should focus on this year?

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2015 will soon be upon us and for those who are passionate defenders of freedom and liberty our work just goes on when the clock strikes midnight. Here is CRI in review and our goals for 2015:

  • Dave Stevenson’s lawsuit against DNREC and former DNREC Secretary Collin O’Mara is still ongoing. Dave and the other three plaintiffs, including CRI Director John Moore, won standing to continue their lawsuit. We will refrain from making a prediction on a court ruling less we jinx the lawsuit but we are optimistic the Plaintiffs will win. This is because in order to get standing the Plaintiffs had to prove they had a valid reason to sue in the first place, such as being aggrieved by the Defendants actions. Winning means stopping DNREC from changing the rules on how many carbon permits can be sold at carbon auctions, saving Delaware taxpayers over $100 million a year in increases in utility bills.
  • We testified in favor of HB353, the Parent Empowerment Education Savings Account Act (PEESAA). Jim Hosley, our former CEE Director, spoke in favor as did a dozen Wilmington parents and grandparents (and one student!) and the leaders of Tall Oak Classical Academy. The bill was tabled in the House Education Committee, a move we are unfortunately not surprised by. However, we hope 2015 will be a better year as more and more people realize the need to improve Delaware’s education system, and the only effective way to make the changes our students need to be prepared for the future is to provide parents with school choice options to do what’s best for the child. CRI will always maintain the belief that parents and/or legal guardians can make a better choice about their children’s education than politicians and bureaucrats in the state Department of Education.
  • We brought in Dr. Bartley Danielsen, business and economics professor from North Carolina State University to keynote our Sixth Annual Dinner. Dr. Danielsen has proposed a theory tying in environmental benefits to school choice. The basic theory is, parents moved to the suburbs to flee poorly performing public schools which left a lot of people uneducated and unable to find respectable work, and many turned to crime as a result. His theory is if inner city schools were to improve their quality, many families would move back to the cities from the suburbs and the result would be a reduction in traffic and environmental pollution from people driving from the suburbs to the cities. View is presentation here and here

In addition to these challenges, we still have issues Delaware must resolve in order to improve our economy:

  • End to the prevailing wage which makes public construction costs so expensive many end up getting no work at all. See: Rockwood Museum.
  • A Right to Work law for Delaware. Union leaders are pushing the “scab” theory that somehow union members will drop out and reap all the benefits the union “works” to get. We have responded by noting that a) manufacturing businesses have responded by moving factories elsewhere, depriving Delawareans of job opportunities. See: loss of auto industry, Valero plant, Evraz Steel plant, Georgia Pacific plant. b) as a moral issue, should union bosses have the right to take someone’s money just because someone works at a particular location? What if the union bosses don’t serve their member’s needs, such as organizing or donating to political causes or candidates the members don’t support?

We wrote: “While in the short run unionization may force wages up for those involved, in the long run closed shops reduce capital spending and induce the out-migration of jobs and workers.”

Read HERE and HERE and HERE

  • tax reform. Delaware is one of just five states with a gross receipts tax (tax on sales, even before factoring in profit/loss and expenses). Three of the other four don’t have an income tax and the only state with both like Delaware is Virginia who has lower tax rates. Coupled with high corporate and personal income taxes while Nevada and North Dakota compete with us for corporate business, and without reforms we will see money and jobs leave the state at even higher numbers.

Merry Christmas, Happy Hanukkah, Happy Holidays, and a Happy New Year to all. Let’s be thankful for a good 2014 and hope for better things in 2015.

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At the Hispanic CREO (Council for Reform and Education Options- CREO is Spanish for ‘I believe’) conference December 11-12 the topic of how to approach the issue of school choice was discussed. Here are our top three takeaways and fantastic photos of Miami:

  • First session had speakers representing four different Hispanic Chambers of Commerce: South Florida, Albuquerque, Illinois, and California. The big takeaway is that Hispanics have got to stop the in-fighting and work together to solve problems. This lesson applies to all groups though Hispanics were the #1 focus of the conference (see the name).
  • Myles Mendoza is the Executive Director of Ed Choice Illinois, and a member of the Democrat Party. He discussed the challenges Democrats who support school choice have since the issue has become so highly (and unfortunately) politicized. One method he had: focus on the “low-hanging” fruit. Find people of all backgrounds who are willing to accept the truth about Delaware’s public education system and explain to them the merits of supporting school choice. Police officers might find it easier to support it if they realized just how much better schools would improve the local community, like Wilmington or Dover. Then find others who see the benefits of better schools and who realize this isn’t a partisan issue.
  • The business community MUST become more involved. Too many business owner’s don’t see the benefits of how better schools benefit them because they have never been approached on this issue, or have been approached from a partisan point of view. SUPPORTING QUALITY EDUCATION ALL CHILDREN IS NOT PARTISAN! One way is to ask local businesses to invest in their community’s education. They can either a) get apprentices/interns out of high school to work for them or b) they will benefit when educated people turn into consumers with money to spend at those businesses.

If you have other ideas, please share!

Now, the photos:

Biscayne Bay, from the Marriott where the conference was.

Downtown Miami

The post-dinner dessert.

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