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Archive for the ‘Union Bosses’ Category

Based on rhetoric, the Democratic Party is committed to a class-warfare agenda.

They want higher income tax rates, higher capital gains taxes, higher Social Security taxes, higher death taxes, a new wealth tax, and many other tax hikes that target upper-income taxpayers.

There are various reasons why they push for these class-warfare tax hikes.

I don’t pretend to know which factor dominates.

But that’s not important because I want to make a different point. Notwithstanding all their rhetoric, Democrats are sometimes willing to shower rich people with tax breaks.

The Wall Street Journal exposes the left’s hypocrisy in the fight over the deduction for state and local taxes.

Democrats have…grown more concentrated in the richest parts of the country. That explains the strange spectacle of a Democratic presidential field running on the most redistributionist agenda in memory even as Democrats in Congress try to expand a tax break for high-earners in the New York City, San Francisco and Los Angeles metropolitan areas. …Coastal Democrats have failed with gimmicks at the state and federal level to eliminate the SALT cap. The latest effort is the Restoring Tax Fairness for States and Localities Act, which passed the House Ways and Means Committee last week. …The bill would raise the SALT deduction cap in 2019 and eliminate it in 2020 and 2021. …The Tax Foundation found the biggest benefit from the unlimited deduction went to households with incomes above $1 million.

A related issue is the federal government’s special tax exemption for interest paid to holders of state and local government bonds.

I explained in 2013 why it’s bad tax policy.

Josh Barro explained the previous year why this tax break is a boon for the rich.

In 2011, 35,000 taxpayers making more than $200,000 a year paid no federal income tax. …61 percent of those avoided tax for the same reason: their income consisted largely of interest on tax-exempt municipal bonds. As Washington looks…to eliminate tax preferences for the wealthy, why not eliminate this exemption? …Nearly all of those bondholders are either for-profit corporations or individuals with high incomes. The higher your tax bracket, the greater the value of the tax preference… muni bonds have an unfortunate feature…subsidies are linked to the interest rate. That means issuers who must pay higher interest rates get more valuable subsidies. Perversely, the worse a municipality’s credit, the greater incentive it is given to borrow more money.

Needless to say, it’s not a good idea to have a tax break that benefits the rich while subsidizing profligate states like New Jersey and Illinois.

In a column for Real Clear Policy, James Capretta analyzes how Democrats are working hard to preserve a big loophole.

The push to get rid of the Cadillac tax is short-sighted for both parties, but particularly for the Democrats. …In its estimate of H.R. 748, CBO projects that Cadillac tax repeal would reduce federal revenue by $200 billion over the period 2019 to 2029, with more than half of the lost revenue occurring in 2027 to 2029. …When examined over the long-term, repeal of the Cadillac tax is likely to be one of the largest tax cuts on record. …If the Cadillac tax is repealed, the government will have less revenue to pay for the spending programs many in the party want to expand. And Republicans will be able to say that it was the Democrats, not them, who paved the way for this particular trillion dollar tax cut.

Not only is it a big tax cut to repeal the Cadillac tax, it’s also a tax cut that benefits the rich far more than the poor.

Here are some distributional numbers from the left-leaning Tax Policy Center. I’ve highlighted in red the most-important column, which shows that the top-20 percent get more than 42 percent of the tax cut while the bottom-20 percent get just 1.2 percent of the benefit.

For what it’s worth, I don’t care whether tax provisions tilt the playing field to the rich or the poor.

I care about good policy.

That’s why I like the Cadillac tax, even though it was part of the terrible Obamacare legislation.

In other words, I think principles should guide policy.

My Democratic friends obviously disagree. They beat their chests about the supposed moral imperative to “soak the rich,” but they’re willing to shower the wealthy with big tax breaks so long as key interest groups applaud.

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The worst policy research I’ve ever seen, over nearly four decades in the field, is the OECD’s grotesquely dishonest data on poverty (it even motivated a special page to acknowledge “poverty hucksters”).

But this video from Andrew Biggs suggests that the Economic Policy Institute could give the OECD some real competition.

This video exposing the EPI’s laughable methodology is a perfect introduction to the issue of teacher compensation, which is Part IV of our series to acknowledge National Education Week.

For a closer look at the issue, here are some excerpts from a column published by City Journal that Biggs co-authored with Jason Richwine.

Most commentary on teacher pay begins and ends with the observation that public school teachers earn lower salaries than the average college graduate. This is true, but in what other context do we assume that every occupation requiring a college degree should get paid the same? Engineers make about 25 percent more than accountants, but “underpaid” accountants are not demonstrating in the streets. …About half of teachers major in education, among the least-rigorous fields at both the undergraduate and graduate levels. Incoming education majors have lower SAT or GRE scores than candidates in other fields, but—thanks to grade inflation—they enjoy the highest GPAs. …At the lowest skill levels—a GS-6 on the federal scale—teachers earn salaries about 26 percent higher than similar white-collar workers. At GS-11, the highest skill level, teaching pays 17 percent less than other white-collar jobs. This explains how shortages can exist for specialized positions teaching STEM, languages, or students with disabilities, while elementary education postings may receive dozens of applications per job opening. …Teachers enjoy widespread public favor, and their desire for higher pay is understandable. But no nationwide crisis of teacher compensation exists. Most teachers receive market-level salaries and generous retirement benefits.

They also addressed the topic in a piece for the Wall Street Journal.

…the annual reports on public-school teacher pay produced by the Economic Policy Institute…claims the nation’s public-school teachers were underpaid by a record 21.4% in 2018… To measure the teacher pay gap, EPI researchers compare teacher salaries with the salaries of people who have the same number of years of education and the same demographic characteristics. This model assumes that education is interchangeable—that a bachelor’s degree in education has the same market value as a bachelor’s in engineering, and a master’s in education is worth the same as a master’s in business administration. …If you accept the Economic Policy Institute’s findings, ludicrous conclusions follow. …We could complain that aerospace engineers are overpaid by 38%, and we could demand justice for telemarketers who are shortchanged by 26%. …If public-school teachers were truly underpaid, we might expect teachers to reap much higher salaries when they switch to nonteaching jobs. They don’t. We also might expect to see public-school teachers paid less than those in private schools. In fact, public-school teacher salaries are roughly 16% higher than in nonreligious private schools.

Let’s take a look at what’s happening in some major cities.

The L.A. Times reports on how record levels of spending are enriching teacher compensation rather than boosting student outcomes.

Gov. Gavin Newsom’s latest budget plan projects $101.8 billion in total spending — which includes both local and statewide operations — for K-12 schools. That’s a $4.6-billion boost from last summer’s enacted budget and an astounding $35-billion increase from what lawmakers approved in 2014. …But at the same time, a few important things have complicated the flow of dollars to the classroom. …School districts are being squeezed…by the rising costs of employee healthcare and pensions. …“When you look at the dollars that reach the actual schools, the increase in overall funding is being outstripped by the increase in mandated costs,” Gordon said. …And while measurements differ, there’s a consensus that California trails almost every other state in per-pupil funding.

Likewise, a column in the N.Y. Post reveals that record levels of spending in New York are driven by teacher compensation, yet kids are under-performing.

The city shelled out a whopping $25,199 per pupil during fiscal 2017, compared to just $12,201 nationwide, according to data from the US Census Bureau. The record amount tops a list of per-pupil spending by the country’s 100 biggest school systems, and exceeds second-place Boston’s $22,292 by 13 percent. But recent state test results indicate that Big Apple taxpayers aren’t getting much of a bang for their bucks, with less than half of the kids in public schools exhibiting a fundamental grasp of English and math skills. …An Empire Center analysis of the latest Census numbers also showed that New York’s educational expenditures are primarily driven by teacher salaries and benefits that are 117 percent above the national average on a per-student basis. “Indeed, New York’s spending in this category alone exceeded the total per-pupil spending of all but six other states,” Empire Center founder E.J. McMahon wrote in a blog post.

The obvious conclusion is that taxpayers are over-compensating teachers, especially when looking at student performance.

But what’s far more important is to look at the deeply flawed system for determining teacher compensation.

Yes, there’s excessive pay and benefits in the contracts concocted by union bosses and politicians, but the bigger problem is that there’s no mechanism to reward good teachers and penalize bad teachers.

Indeed, many of the contracts are specifically designed to ensure that bad teachers can’t be dismissed.

Let’s look at some passages from a Wall Street Journal column by Cami Anderson, a former school administrator in both Newark and New York.

…disheartening lessons I learned regarding teacher’s contracts and labor laws during the five years I served as superintendent of New York City’s Alternative High Schools and Programs…my team and I were charged with improving the lives and academic outcomes of some of our city’s most at-risk young people. About 30,000 students ages 16 to 21, most from low-income families of color… Not long into my term, however, the ugly reality of the dysfunctional systems working against our students hit me. …many teachers and staff reinforced our students’ deepest self-doubts. …Annual performance evaluations are supposed to ensure ongoing quality among tenured teachers, but all too often the system fails. In New York 99% of teachers receive “effective” ratings while fewer than 40% of high-schoolers graduate college-ready. …Even worse, teachers engaging in egregious conduct, like showing up late 40 times in a single year, physically assaulting a child, or falsifying records (actual examples), incurred no consequences… As a huge believer in unions, due process and collective bargaining, I agonized seeing union staff zealously defend a tenure system that essentially traded students’ futures for jobs at all costs. …Meanwhile, our district employed nearly a dozen “principals” and “vice principals”… Lawyers had negotiated settlements to place them “off the radar” rather than attempt to navigate the byzantine tenure-revocation process. …People were quick to tell me there was nothing I could do about it because of labor laws and practices—and that asking questions made you a target.

And here’s some very sobering information from a column in City Journal.

…mayors, governors, and presidents should retain broad powers to remove incompetent, unsavory, or negligent government workers. In this context, the very notion of public-employee unions is contradictory, as Franklin Roosevelt recognized… Consider teachers’ unions. Citing a study by Stanford University researcher Eric Hanushek, Howard notes that bad teachers have a much greater negative effect on student performance than good teachers have a positive effect. Based on student-performance data, Hanushek’s study concluded that dismissing the worst 8 percent of American public school teachers would put American students on par with those of Finland, which has the highest-scoring students in the world. Yet it’s nearly impossible to fire tenured teachers.

American kids do not get good scores compared to kids in other nations, so the notion that we could close the gap by getting rid of the worst teachers is very encouraging.

But that’s effectively impossible because unions are more concerned with protecting the worst teachers than they are with producing the best outcomes.

Since we started with a video from Andrew Biggs, let’s close with his infographic.

The bottom line is that the government’s school monopoly is doing a bad job in large part because it’s being run for the benefit of teachers unions.

With school choice, by contrast, it would be possible to reward the best teachers. Indeed, there would be competitive pressure for that outcome under a decentralized, competition-based system.

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According to the union bosses at the National Education Association, November 18-22 is National Education Week and a “wonderful opportunity to celebrate public education.”

I care about facts and I care about kids, and all the evidence shows that government schools do a terrible job. So, instead of celebrating, I’m going to focus this week on government’s destructive impact.

Let’s start with this stunning visual from Mark Perry at the American Enterprise Institute. As you can see, the main takeaways are that costs have soared and bureaucracy has expanded.

And if you look at this chart, you’ll see that test scores have been flat.

Indeed, the unambiguous conclusion is that taxpayers are being asked to cough up ever-growing amounts of cash. Yet we never see any improvements in the quality of government schooling.

Indeed, an article in National Review explains that all this money and this bureaucracy has produced a negative rate of return

A Nation at Risk…revealed, in the words of Ronald Reagan, an education system plagued by “low standards, lack of purpose, ineffective use of resources, and a failure to challenge students to push performance to the boundaries of individual ability.” …Since then the nation has devoted a great deal of attention to getting education right. To little avail. …The results of the 2017 National Assessment of Educational Progress (NAEP)…, released this month, are dismal. Fewer than half of students are rated “proficient” in each of these subjects.

But it’s not just folks on the right who think the current system is a failure.

An article in left-of-center Vox is even more dour about the effectiveness of government schools.

…cast a cold look at the performance of schools… Consider the trends: Since 2005, SAT reading scores have dropped by 14 points. A writing component was added to the SAT in 2006, and scores have dropped every year since then except for two years when they were flat. Math scores for 2015 were the lowest in 20 years. …On the ACT’s measure of “college readiness” in math, English, reading, and science, slightly more than one-third of test takers met the benchmarks in three subjects, while another one-third did not meet any(!) of the benchmarks. …According to the National Assessment of Educational Progress exams (the “Nation’s Report Card,” administered by the Education Department’s National Center for Educational Statistics), only one-quarter of 12th-graders are proficient in civics, one-fifth in geography, just over one-third (37 percent) in reading, one-fifth (22 percent) in science, and one-eighth (12 percent) in US history. Only one-quarter of them reach proficiency in math. …At the same time, we have another discrepancy, outcomes versus public school funding. …Adjusted for inflation, the national average for per-pupil spending rose steadily…the cost-benefit numbers continue to look bleak.

The fundamental problem is that teacher unions are in bed with politicians.

This doesn’t just mean that government schools are needlessly expensive (and they are). It also means that the government monopoly primarily exists as a tool to serve bureaucracy rather than students.

Consider these scholarly findings.

Does collective bargaining by teachers help or hurt students?Two Cornell academics— Michael Lovenheim, an associate professor of policy analysis and management, and Alexander Willén, a doctoral student—have recently completed a study that tries to answer it. In “A Bad Bargain: How teacher collective bargaining affects students’ employment and earnings later in life,” the professors conclude: “We find strong evidence that teacher collective bargaining has a negative effect on students’ earnings as adults.” …Students who spent all 12 years of their elementary and secondary education in schools with mandatory collective bargain earned $795 less per year as adults than their peers who weren’t in such schools. They also worked on average a half hour less per week, were 0.9% less likely to be employed, and were in occupations requiring lower skills. The authors found that these add up to a large overall loss of $196 billion per year…collective bargaining may be profitable for the teachers and staff of public schools, but the price is being paid by the students.

Washington-driven policies certainly haven’t helped. Bush’s so-called No Child Left Behind scheme failed, and the same is true for Obama’s Common Core.

Indeed, this article from the Federalist documents the failure of Obama’s approach.

…the Obama administration lured states into adopting Common Core sight unseen, with promises it would improve student achievement. Like President Obama’s other big promises — “If you like your doctor, you can keep your doctor” — this one’s been proven a scam. …Race to the Top was a $4 billion money pot inside the 2009 stimulus that helped bribe states into Common Core. …Are American children increasingly prepared…? We’re actually seeing the opposite. They’re increasingly less prepared. And there’s mounting evidence that Common Core deserves some of the blame. …ACT scores released earlier this month show that students’ math achievement is at a 20-year low. The latest English ACT scores are slightly down since 2007, and students’ readiness for college-level English was at its lowest level since ACT’s creators began measuring that item…the latest round of international tests…showed U.S. fourth graders declining on reading achievement. …Common Core sucked all the energy, money, and motivation right out of desperately needed potential reforms to U.S. public schools for a decade, and for nothing. It’s more money right down our nation’s gigantic debt hole, another generation lost to sickening ignorance, another set of corrupt bureaucrats‘ careers and bank accounts built out of the wreckage of American minds.

We can also see the dismal impact of bigger budgets by looking at experiences in various cities.

Throwing more money at the government monopoly didn’t work in New York City.

Mayor Bill de Blasio is canceling one of his signature education initiatives, acknowledging that despite spending $773 million he was unable to turn around many long-struggling public schools in three years after decades of previous interventions had also failed. …the program has been plagued by bureaucratic confusion and uneven academic results… The question of how to fix broken schools is a great unknown in education…no large school system has cracked the code, despite decades of often costly attempts. …the program was based on the union-friendly theory that struggling schools need more resources.

(For some very grim first-hand accounts of New York City’s government schools, click here, here, and here.)

It didn’t work in Newark.

Booker pitched Facebook founder Mark Zuckerberg that, with $100 million, they “could flip a whole city!” In September 2010, the troika appeared on Oprah Winfrey’s television show to present and accept the gift. For education reformers convinced that poverty could be solved given the will and the money, it was a dream come true. …the reformers’ dreams turned into a political nightmare. …Hopes for a game-changing teacher contract were quickly dashed, as reformers learned that teacher tenure protections were enshrined in state law. …Newark public schools spend $19,650 per pupil, but only $9,604 reaches the classroom.

And it didn’t work in Denver.

Denver’s once-celebrated ProComp pay system…was jointly developed by the DCTA and Denver Public Schools in 2005. …Back then, ProComp was heralded as a pioneering step forward on pay-for-performance/merit pay… The only problem? This narrative is bunk. For all the talk about “merit” and “performance,” ProComp is almost wholly devoid of any links between pay and teacher performance. …ProComp is mostly designed to reward the usual credentialism… Denver’s situation is so noteworthy because Denver is no laggard. Indeed, for many years, it has been celebrated as a “model” district by reformers. So it’s disheartening how little progress the city has actually made.

And you won’t be surprised to learn it didn’t work in D.C.

The much-celebrated success of education reform in the nation’s capital turns out to have been a lie. …Education reformers used to celebrate D.C.’s dramatic decline in school suspensions. Then a Washington Post investigation revealed that it was fake; administrators had merely taken suspensions off the books. The same reformers used to celebrate D.C.’s sharp increase in high-school graduations. Then an NPR investigation revealed that it, too, was fake; almost half of students who missed more than half the year graduated. …consider Abdullah Zaki, who back in 2013 was named DCPS principal of the year. He was just placed on administrative leave (not fired, mind you) after an audit revealed that 4,000 changes were made to 118 students’ attendance records at his high school. …consider Yetunde Reeves…who took Ballou High School from 57 percent graduation to 100 percent college acceptance in just one year. She was placed on administrative leave (again, not fired) after NPR reported teacher allegations that she leveraged the teacher-evaluation system to coerce teachers to go along with her scheme.

I realize I’m being repetitive, but more money for the government monopoly also didn’t work in Providence.

Rhode Island’s politicians this summer made a show of decrying the shameful condition of Providence public schools…peeling lead paint, vermin, brown water, leaking sewage—from a Johns Hopkins Institute for Education Policy 93-page report on Providence schools… Student test scores are the worst in Rhode Island and lower than districts in other states with similar demographics. …“the district’s performance is continuing to decline despite increased interventions and funding.” Providence’s school budget has increased by nearly a quarter since 2011.

You can also click here to read about failure in Patterson, N.J., and Los Angeles, CA. The bottom line is that more spending does not lead to better student performance.

It’s also nauseating that government schools try to brainwash kids with leftist pabulum.

Consider what’s happening in California.

California’s Education Department has issued an “Ethnic Studies Model Curriculum”…written by an advisory board of teachers, academics and bureaucrats. It’s as bad as you imagine. …The document is filled with fashionable academic jargon like “positionalities,” “hybridities,” “nepantlas” and “misogynoir.” It includes faddish social-science lingo like “cis-heteropatriarchy”… It is difficult to comprehend the depth and breadth of the ideological bias and misrepresentations without reading the whole curriculum—something few will want to do. Begin with economics. Capitalism is described as a “form of power and oppression,” alongside “patriarchy,” “racism,” “white supremacy” and “ableism.” …Housing policy gets the treatment. The curriculum describes subprime loans as an attack on home buyers with low incomes rather than a misguided attempt by the government to help such home buyers. …This curriculum explicitly aims at encouraging students to become “agents of change, social justice organizers and advocates.”

Seattle is also looking to get in the business of dishing out propaganda.

Seattle’s public-school district has proposed a new math curriculum that would teach its students all about how math has been “appropriated” — and how it “continues to be used to oppress and marginalize people and communities.” …the social-justice approach to teaching math has officially entered the mainstream (and taxpayer-funded!) arena. …this approach to teaching math will only end up harming the very groups it claims it champions. …The minority students, the members of the very groups that this curriculum presumably aims to aid, are actually going to be learning less math than they would have without it — because they will be spending some of that class time learning about how math’s racism has hurt them.

Wow. No wonder young people are sympathetic to socialism. They’re being spoon-fed crazy ideas.

To round out our discussion, here’s a video from Reason.

So what’s the solution?

Writing for Real Clear Politics, Heather Wilhelm says we need to give up on the government monopoly.

…there might not be much left to do but vote with your feet. The term “Go Galt,” which comes from Ayn Rand’s “Atlas Shrugged,” refers to citizens retreating from a political system that basically takes their money and otherwise does them no good. …odds are the public school system isn’t doing you any favors. If you’re a poor kid in the inner city, the damage and injustice is obvious… “If you send your kid to a private school,” Slate’s Allison Benedikt wrote in a 2013 essay-gone-viral, you are “a bad person … ruining one of our nation’s most essential institutions.” News flash: The public school system is already a mess, it’s getting messier, and it can only improve the old-fashioned way — through competition.

If you prefer, this quote from Thomas Sowell is spot on.

The bottom line is that government has created a bad system. It doesn’t matter that most teachers have noble intentions. It doesn’t matter that most kids are capable of higher achievement. Monopolies simply don’t perform, especially when mixed with special-interest politics.

It goes without saying that shutting down the Department of Education would be a positive step. But that’s only a partial solution. We’ll explore the real answer tomorrow.

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Education spending and teacher pay has become a big issue in certain states.

Unfortunately, not for the right reason. In an ideal world, taxpayers would be demanding systemic reform because government schools are getting record amounts of money (higher than any other nation on a per-student basis) while producing sub-par results.

Instead, we live in a surreal parallel universe where teacher unions are pushing a narrative that taxpayers should cough up more money because teachers supposedly are underpaid.

Let’s look at the data.

An article in City Journal debunks the claim that teachers are underpaid.

…protests across the country have reinforced the perception that public school teachers are dramatically underpaid. They’re not: the average teacher already enjoys market-level wages plus retirement benefits vastly exceeding those of private-sector workers. Across-the-board salary increases, such as those enacted in Arizona, West Virginia, and Kentucky, are the wrong solution to a non-problem. …At the lowest skill levels—a GS-6 on the federal scale—teachers earn salaries about 26 percent higher than similar white-collar workers. …The average public school teaching position rated an 8.8 on the federal GS scale. After adjustment to reflect the time that teachers work outside the formal school day, the BLS data show that public school teachers on average receive salaries about 8 percent above similar private-sector jobs. …Data from the Survey of Income and Program Participation show that teachers who change to non-teaching jobs take an average salary cut of about 3 percent. Studies using administrative records in Florida, Missouri, Georgia, and Montana showed similar results. …public-employee retirement and health benefits are bleeding dry state and local budgets. Neither the public nor teachers fully appreciates the costs of these programs. We forget the value of benefits when considering how teacher pay compares with private-sector work.

And keep in mind those lavish pensions are woefully underfunded, so taxpayers are paying too much now and they’ll have to pay even more in the future.

But I think the key factoid from the above article is that teachers take a pay cut, on average, when they leave the profession. Along with the “JOLTS” data, that’s real-world evidence that teachers are getting paid more than counterparts in the economy’s productive sector.

Allysia Finley of the Wall Street Journal also punctures the false claims of the union bosses.

Teachers unions… They’re using misleading statistics… They conflate school funding and state education spending. In Oklahoma, unions proclaimed that per pupil school spending fell by 28.2% over the past decade. That refers to the inflation-adjusted state’s general funding formula. But total per pupil outlays increased by 16% in nominal terms between 2006 and 2016… They use elevated spending baselines. Teachers unions nearly always compare school spending and teacher salaries today with peak levels before the great recession, which were inflated like housing prices. Between 2000 and 2009, average per pupil spending across the country increased 52%…per pupil spending ticked up by 7.5% between 2012 and 2015. School spending growth…increased faster than the consumer price index. …They don’t account for other forms of compensation. Since 2000, per pupil spending on employee benefits has doubled. …pensions and health benefits are the fastest-growing expenses for many school districts, and most of the money goes to retired teachers. …the unions are lying with statistics.

In a column for the Denver Post, a parent showed that his state’s teachers are getting above-average compensation.

Teachers are…mostly paid via a union “salary schedule,” meaning they get pay raises based on only two factors: the number of college degrees and certificates they earn, and how many years they’ve been on the job. That makes a pretty lousy incentive structure… We keep hearing Colorado is 49th in the country for educational spending. That lie is repeated so often it becomes legend. Funding for Colorado schools are split between the local school district and the state. So, if you compare only the state funding part to states that have no local match, yep, ours looks low. But when you look at total funding, which can be counted in different ways, the picture doesn’t look so dire. …According to the Colorado Department of Education, the average salary for teachers here is $52,728. But that’s only one piece of the compensation. The school year is about 180 days, or 36 weeks. So, the pay is $1,465 for every week a teacher is teaching. Vacation time? Well, 52 weeks in a year, minus 36 weeks in the classroom, that’s 16 weeks off, roughly 4 months! Compare that to someone who only gets 2 weeks off but still gets paid $1,465 a week when working, that’s the equivalent of $73,233. And let’s count the present-cost value of their retirement benefits. …Not bad for a system where you can retire at 58.

Let’s close with some excerpts from Jason Riley’s column in the Wall Street Journal.

The nation’s K-12 schools are…turning into hotbeds of political activism. …teachers are demanding higher pay, better benefits and more education funding overall. …The American Federation of Teachers and the National Education Association have thousands of state and local affiliates. They are among the richest and best-organized pressure groups in the country. And they are on a roll. That’s good news for their members but not necessarily for children, parents and taxpayers. …Teachers unions support work rules that prevent the most capable teachers from being sent to low-performing schools, that shield teachers from meaningful evaluations, and that require instructors to be laid off based on seniority instead of performance. …those rules do nothing to address the needs of students. …politicians love to highlight education outlays. It helps them win votes and ward off union agitators. But the connection between school spending and educational outcomes is tenuous. …total spending per pupil at the state level rose, on average, by an inflation-adjusted 18%. During this period, it fell in Arizona… Yet on 2015 federal standardized exams, Arizona made more progress than any other state. New York, by contrast, boasts the highest spending per pupil and teacher pay in the country, but you wouldn’t know it from the test results.

For what it’s worth, the final few sentences in the above excerpt should be main issue being discussed in state capitals. Lawmakers should be asking why more and more money never produces better outcomes.

But that’s really not the problem. It’s the symptom of the problem.

Our primary challenge in education is that we rely on government monopolies that are captured by special interests. We need school choice so that competitive forces can be unleashed to generate better results. There’s strong evidence that choice produces good outcomes in the limited instances where it is allowed in the United States.

And in that kind of system, we may actually wind up with better teachers that are paid just as much. Or maybe even more.

P.S. There’s also strong evidence for school choice from nations such as SwedenChile, and the Netherlands.

P.P.S. Needless to say, eliminating the Department of Education is part of the solution.

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My biggest complaint about government employees is that they work for bureaucracies that shouldn’t exist. As far as I’m concerned, they may be the most wonderful, conscientious, and hard-working people in the world, but we shouldn’t have a Department of Housing and Urban Development or a Department of Agriculture, so these folks – by definition – are getting dramatically overpaid (i.e., anything about $0).

My second main complaint is that bureaucrats are overpaid relative to their counterparts in the private sector. About twice as much when you include the value of both wages and benefits.

The unions representing bureaucrats sometimes try to argue that this isn’t true, but I always point out the data on voluntary quit rates, which are much higher in the private sector compared to government. Needless to say, this is because folks who get cushy government jobs know they’ve won the employment lottery and have very little desire to switch to the private sector (where, as Dan Aykroyd explained in Ghostbusters, “they expect results”).

A third complaint is that politicians can’t resist catering to the unions that represent government employees, which means not only excessive compensation but also absurdly inefficient rules designed to protect loafers, scroungers, and con artists in the bureaucracy.

Let’s review the example of Queon Jackson. As reported by the Boston Globe, he’s pocketed a lot of money while doing absolutely nothing.

A former acting headmaster in Boston, placed on paid leave more than three years ago amid an investigation into credit card fraud, collected $375,000 in pay during his absence.

In the private sector, employment often is a tenuous situation. You can be fired “at will,” which means for just about any reason.

But unions strike deals with compliant politicians (from the perspective of elected officials, bureaucrats are a special interest group with lots of voters and lots of campaign cash) to provide so-called employment-protection rules for government employees.

And these rules make it very difficult and very expensive to deal with bad bureaucrats.

And it seems that Mr. Jackson meets that definition.

Jackson’s case reflects the thorny issues school systems face when union-protected employees are under federal investigations that drag on for months or years without charges being filed. Jackson, who was classified as an assistant director at the time of his paid leave, is a member of the school system’s union for midlevel school administrators, and the school system would have had to establish just cause to fire him. Thomas Scott, the executive director of the Massachusetts Association of School Superintendents, said…The choice…comes down to this: Either put the person in a low-profile desk job and face a potential public backlash, or fire the employee and run the risk of a lawsuit.

Here’s why Jackson got in trouble.

The school system originally placed Jackson on leave in February 2013, after learning the Secret Service was investigating him for an alleged role in fraudulently obtaining credit and then not paying the bills. But Jackson had contended that he was victimized by someone who stole his identity in an attempt to buy a car.

Though he already had a shady background when he first entered the bureaucracy.

In 2000, a few months before the district hired Jackson as a teacher, he admitted to sufficient facts for a finding of guilty in a drug case and a domestic abuse case that required him to take an anger-management course. That type of plea is commonly used by defendants to avoid a criminal record. …Jackson, who was a state social worker at the time, was charged with possession with intent to distribute counterfeit drugs.

Returning to the current situation, it’s not clear from the story, but I gather investigators from the Secret Service didn’t have enough evidence to nail Jackson, so the school system had no choice but to not only keep him on the payroll, but also to give him a new position.

Now Queon Jackson…is back. …The school system quietly cleared Jackson to return to work on May 9 and gave him a desk job at the agency’s headquarters and the title “special assistant.” The move ended a paid leave of three years and three months, during which he did no work for the school system. …He is receiving an annual salary of about $120,000, equivalent to what he made as a school administrator.

Though he apparently hasn’t been a model employee since his return.

Jackson has been accumulating many absences over the last two months, missing at least 16 days, including seven without pay, according to a Globe review of payroll records. The tally doesn’t include time he took off in mid-July.

Oh, by the way, Jackson is just one of many bureaucrats who get this strange form of paid vacation.

Boston’s school system currently has 34 employees on paid leave.

I shudder to think what the nationwide number looks like, but apparently there are tens of thousand federal bureaucrats getting paid leave. You can see a couple of strange examples by clicking here and here.

The bottom line is that Mr. Jackson isn’t special. Lots of bureaucrats get to scam the system because union contracts protect dodgy employees. So he doesn’t merit membership in the Bureaucrat Hall of Fame, but it’s still outrageous that taxpayers in the productive sector pay extra tax to subsidize this nonsense.

If you like humor about overpaid government employees (and you’re paying for it, so you may as well get some enjoyment), here’s a great top-10 list from Letterman and here’s a cartoon about the relationship of bureaucrats and taxpayers. Looking through my archives, I also found a joke about an Indian training for a government job, a slide show on how bureaucracies operate, a cartoon strip on bureaucratic incentives, a story on what would happen if Noah tried to build an Ark today, and these two posters. There’s also a good one-liner from Craig Ferguson, along with this political cartoons from  Henry Payne.

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Last week, I shared a TV interview about Obama’s budget, but much of the discussion was routine and didn’t warrant special attention.

But there was one small part of the interview, dealing with the silly claim that America became a rich nation because of socialism, that got me all agitated.

Well, to quote the great Yogi Berra, it’s deja vu all over again. Here’s an interview I did with CNBC about labor unrest. As you might expect, I made the standard libertarian argument that it’s not the job of government to pick sides when labor and management have squabbles.

That’s a point I’ve made before (here, here, here, here, here, and here), so there’s no need to elaborate on that issue.

But if you pay attention at the 3:00 mark of the video, you’ll notice that the discussion shifts to income inequality. And this is what got me agitated. I’m completely baffled that some people think that redistribution is more important than growth.

As I point out in the interview, nobody wins in the long run if you have a stagnant economy and politicians are fixated on re-slicing a shrinking pie.

The goal of everyone – including unions and leftist politicians – should be growth. If we get robust growth, that will mean tight labor markets, and that’s a big cause of rising wages.

But here’s my hypothesis to explain why statists don’t support good policies. Simply stated, I think they hate the rich more than they like the poor.

That sounds like a rather bold claim, but is there any other explanation for why they reject the types of tax policies (such as lower corporate rates, reduced double taxation, and expensing) that will increase investment, thus boosting productivity and wages?

Heck, look at this chart showing the relationship between capital formation and labor compensation.

Any decent person, after looking at the link between capital and wages, should be clamoring for the flat tax.

Yet Obama wants to move the tax code in the opposite direction!

I confess that I have no idea if this is because of malice or ignorance, but I do know that no nation has ever generated faster growth with class warfare.

I realize I’m ranting, but the more I think about this topic, the more upset I get. Politicians and their allies are making life harder for workers, and I hope I never stop being outraged when that happens.

P.S. On a totally separate subject, here’s a good joke forwarded to me by a friend this morning. It definitely belongs in my collection of gun control humor.

A state trooper in Kansas made a traffic stop of an elderly lady for speeding on U.S. 166 just East of Sedan, KS. He asked for her driver’s license, registration, and proof of insurance. The lady took out the required information and handed it to him.

In with the cards, he was somewhat surprised (due to her advanced age) to see she had a concealed carry permit. He looked at her and asked if she had a weapon in her possession at this time. She responded that she indeed had a .45 automatic in her glove box.

Something, body language, or the way she said it, made him want to ask if she had any other firearms. She did admit to also having a 9mm Glock in her center console. Now he had to ask one more time if that was all. She responded once again that she did have just one more, a .38 special in her purse.

He then asked her “Ma’am, you sure carry a lot of guns. What are you so afraid of?”

She looked him right in the eye and said, “Not a damn thing!”

You can enjoy other examples of gun control humor by clicking here, here, here, here, here, and here.

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As a taxpayer, I don’t like the fact that government employees get paid more than folks in the private sector.

But the big difference between bureaucrats and regular workers isn’t so much the pay, it’s the fringe benefits.

And perhaps the  biggest difference of all is that government bureaucrats get far more  lavish retiree benefits.

Sounds like a sweet deal, at least if you get a coveted job (or even six jobs!) with a state or local government.

It’s not a good deal for taxpayers, though, and the entire system is rather unstable because politicians and union bosses have conspired to create huge unfunded liabilities that threaten to create a death spiral for state and local governments.

Simply stated, why should productive taxpayers continue to live, work, and pay taxes in places where a huge chunk of money is diverted to pay off past promises rather than to deliver goods and services (education, parks, trash pickup, police, etc) that have some value?

Indeed, this is a big reason why places such as Detroit already have collapsed. And I fear it is just a matter of time before other local government (as well as some states such as California and Illinois) reach the tipping point.

But perhaps you think I’m being too dour? Yes, I’m prone to pessimism because of my low level of faith in the political elite. In this case, however, any sensible person should be very worried.

Let’s look at what some experts have to say about these issues.

Here are some passages from Steve Malanga’s Wall Street Journal column from earlier this month.

He starts by explaining that Jerry Brown’s big tax hike for education actually has very little to do with helping kids to learn (not that more money is the recipe for better education, as shown by this jaw-dropping chart, but that’s a separate issue).

Instead, the money is being diverted to finance the lavish pension system.

California Gov. Jerry Brown sold a $6 billion tax increase to voters in 2012 by promising that nearly half of the money would go to bolster public schools. …Last June Mr. Brown signed legislation that will require school districts to increase funding for teachers’ pensions from less than $1 billion this year in school year 2014-15, which started in September, to $3.7 billion by 2021, gobbling up much of the new tax money. With the state’s general government pension fund, Calpers, also demanding more money, California taxpayer advocate Joel Fox recently observed that no matter what local politicians tell voters, when you see tax increases, “think pensions.” …When California passed its 2012 tax increases, Gov. Brown and legislators promised voters the new rates would expire in 2018. But school pension costs will keep increasing… Public union leaders and sympathetic legislators are already trying to figure out how to convince voters to extend the 2012 tax increases and approve “who knows what else” in new levies

Sounds grim, but Mr. Malanga warns that “Californians are not alone.”

Decades of rising retirement benefits for workers—some of which politicians awarded to employees without setting aside adequate funding—and the 2008 financial meltdown have left American cities and states with somewhere between $1.5 trillion and $4 trillion in retirement debt. …the tab keeps growing, and now it is forcing taxes higher in many places.

Such as Pennsylvania.

A report last June by the Pennsylvania Association of School Administrators found that nearly every school district in that state anticipated higher pension costs for the new fiscal year, with three-quarters calculating their pension bills would rise by 25% or more. Subsequently, 164 school districts received state permission to raise property taxes above the 2.1% state tax cap. Every one of the districts cited rising pension costs.

And West Virginia.

In West Virginia, where local governments also face big pension debts, the legislature recently expanded the state’s home rule law—which governs how municipalities can raise revenues—to allow cities to impose their own sales taxes. The state’s biggest city, Charleston, with $287 million in unfunded pension liabilities, has already instituted a $6 million-a-year local sales tax devoted solely to pensions, on top of the $10 million the city already contributes annually to its retirement system. At least five more cities applying to raise local sales taxes, including Wheeling, also cited pension costs.

The column also has lots of material on the mess in Illinois.

Here’s just a sampling.

The city of Peoria’s budget illustrates the squeeze. In the early 1990s it spent 18% of the property-tax money it collected on pensions. This year it will devote 57% of its property tax to pension costs. Reluctant to raise the property levy any more, last year the city increased fees and charges to residents by 8%, or $1.2 million, for such items as garbage collection and sewer services. Taxpayers in Chicago saw the first of what promises to be a blizzard of new taxes. The city’s public-safety retirement plans are only about 35% funded, though pension costs already consume nearly half of Chicago’s property-tax collections.

All this sounds depressing, but it’s actually worse than you think.

We also have to look at the promises that have been made to provide health benefits for retired government employees.

Robert Pozen of Brookings has some very sobering data.

Public-pension funds have garnered attention in recent years for being underfunded, but a more precarious situation has received much less notice: health-care obligations for public retirees. …only 11 states have funded more than 10% of retiree health-care liabilities, according to a November 2013 report from the credit-rating agency Standard & Poor’s. For example, New Jersey has almost no assets backing one of the largest retiree health-care liabilities of any state—$63.8 billion. Only eight out of the 30 largest U.S. cities have funded more than 5% of their retiree health-care obligations, according to a study released last March by the Pew Charitable Trust. New York City tops the list with $22,857 of unfunded liabilities per household. …Total U.S. unfunded health-care liabilities exceeded $530 billion in 2009, the Government Accountability Office estimated, but the current number may be closer to $1 trillion, according to a 2014 comprehensive study released by the National Bureau of Economic Research.

By the way, these retired government workers are covered by Medicare, but Pozen explains that the unfunded liabilities exist because so many of them retire before age 65.

And their health plans sometimes cover Medicare premiums once they turn 65.

State and local governments typically pay most of the insurance premiums for employees who retire before they are eligible for Medicare at age 65. That can be a long commitment, as many workers retire as early as 50. Many governments also pay a percentage of Medicare premiums once retired workers turn 65.

But there is some good news.

States are trying to deal with this healthcare-driven fiscal Sword of Damocles.

Since 2010 more than 15 states have passed laws to reduce health-care cost-of-living adjustments—automatic benefit increases linked to the consumer-price index. Courts in eight states upheld these reductions on grounds that cost-of-living adjustments should not be considered a contractual right. Only Washington’s law was struck down in 2011, and the case is now on appeal. Some state and local governments—Nevada and West Virginia, for example—have increased deductibles and scaled back premium subsidies. Others like Ohio and Maine have reduced the health-care benefits provided to retirees. Several years ago Pennsylvania changed early retirement eligibility to 20 years of service from 15.

In many cases, though, I fear these reforms are a case of too little, too late.

So long as the fiscal burden of providing pensions and healthcare expands at a faster rate than the private economy, states and localities will push for more and more taxes to prop up the system.

But people won’t want to live in places where a big chunk of their tax payments are diverted to fringe benefits. So they’ll move out of cities like Detroit and Chicago, and they’ll move out of states like New Jersey and Illinois.

So the bottom line is that politicians and government employee unions engineered a great scam, but one that ultimately in many cases will self destruct.

And the lesson for the rest of us is that government bureaucrats should not get special goodies, particularly when they are financed by nothing other than promises to screw future taxpayers.

Pensions for government workers should be based on the defined-contribution model, and healthcare promises should be more limited and in the form of health savings accounts.

But how do you get these much-needed reforms when the government unions finance the politicians who are on the opposite side of the negotiating table?!?

P.S. Here’s a good joke about government bureaucracy. Here’s a similar joke in picture form. And we find the same humor in this joke, but with a bit more build up. And now that I’ve given it some thought, there’s more bureaucrat humor here, here (image near bottom), and here.

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