Preparing for Institutional Collapse

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Letting go of one’s illusions is a difficult process that takes a long, long time, but I am just about there. From a young age I have been a believer in public services and benefits as a way of providing some measure of assurance for other people, people I rely on every time I purchase a good or service, of a decent life regardless of one’s personal income or standing. After all, I initially chose public service as a career. And I have been a defender of the public institutions when compared with those who were only concerned with their own situation and preference put in less, or get out more, as if the community was a greedy adversary to be beaten in life rather than something one is a part of. Now, however, I see that it is probably hopeless.

Under the current generation of “leaders,” “the community,” in its governmental form, is controlled by insatiable interests and sits on top of those who happen to live in New York City, New York State, and the United States. While promising general, universal benefits in the future, or lower taxes in the present, they have already taken so much out of that future for themselves and self-interest groups that it is unlikely that there will be a functioning school system, usable parks, convenient mass transit, affordable health care, or a livable Social Security retirement stipend for my children’s generation. Even at high future taxes. They’ve blown it all, rationalized or just ignored the near certain effects on others, and they won’t give it back. So perhaps all the time, energy and money directed toward trying to reform or improve our social institutions, particularly out government institutions, would be better spent preparing to do without them.

NYC School Finance At the Peak

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A quick look at the website of the Fiscal Policy Unit of the New York State Department of Education shows the school finance data for the 2005 to 2006 school year has been released. That year, and the following year, was probably as good as it is going to get for the New York City public schools. The New York State Court of Appeals subsequently ruled that although it was wrong for the state legislature to make financial arrangements that eliminated the possibility of many NYC children receiving a decent education, there would be no consequences for those who benefited from those arrangements in the past, and no judicial restrictions on doing so again in the future. The pattern of New York City’s state education funding being cut, while that for the rest of the state is increased, in recessions is therefore likely to recur. Also recurring are pension enhancements for those cashing and moving out, paid for by reduced pay for future teachers and reduced services for NYC children, with a recent massively-costly example just enacted. With doom once again approaching, let’s look at the “good old days” for the public schools.

The State Budget: It’s A Three-Year Decision

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In the past, on something like the state budget, I would write a post describing what I would do, or what our “leaders” should do. But I’ve had a shift of views recently, and will now base my writings on the assumption that it is hopeless, and our elected officials and those who back them will keep taking and taking until the rest of us have nothing left to lose. Thus they have no reason to care what the rest of us have to say. If it is otherwise, Patterson, Silver and Bruno are free to contact me, and I will go to Albany and tell them what they ought to do and why they ought to do it in person. In the meantime, what I will say is that the budget is a three-year decision.

Next Year’s Budgets: Using Past Public Employment Data to Predict Future Pain

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He could not have known it, but the credit crisis makes Monday, March 17th an ironic day yet appropriate day for David Paterson to have chosen to be sworn in as Governor. And not because it’s Saint Patrick’s Day. Since it is clear that everything didn’t change on Day One, and certainly cannot be expected to change on day 442, I thought it worthwhile to predict the our future under the Paterson Administration, or rather the Paterson, Silver, Bruno and related parties and organizations administration, by examining the past. Since a Census of Governments is being conducted for FY 2007, detailed Census Bureau data on public employment and payroll in 2007 will not be out until the fall. The New York State Department of Labor, however, has recently released revised and updated payroll employment data through 2007 (see attached). Looking at annual data from 1990 to that year, I think we can get a sense of where things are headed, and how New York City is likely to be affected. If you are planning on enjoying St. Patrick’s Day festivities, don’t read this until you are done celebrating and prepared to merge your personal hangover with the national one.

Forget the On-Time Budget

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The real measure of this year's state budget is not whether it is on-time, but whether there is a second, devastating budget after the November elections. If Bear Stearns merges, as seems likely, it will take a big chunk of the city and state tax base with it, and that may be just the beginning. My guess is this state faces two years like it hasn't seen since the 1970s, with the only "good news" being that this time most other parts of the country will be faring worse, so there will be nowhere to flee to.

Affordable Housing the Easy Way

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In New York, it isn't "affordable housing" unless it is made such under a government program, so it can be allocated in the way government often allocates things — politically. Elsewhere, however, something else is going on. Among other things, "affordable housing" developments are running into financial trouble because housing is getting too affordable, even in places like Boston where the bubble made housing unaffordable not long ago. In other places, the unaffordable units are now cheaper than the affordable units.  

Some Good News: One House State Budget Bills

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Not much changed on Day One. Our state government continues to hand out benefits to already-privileged insiders in good years while making promises to everyone else, and then holding those deals harmless while sacrificing everyone else when the economy turns down. The problems with the budget process, and the results, are for the most part pretty much as I described them here when I ran as a candidate against the state legislature. But at least one thing has changed for the better in Albany.   Perhaps today is a good day to point it out.

The 2008 to 2013 MTA Capital Plan: Is There A Way Out?

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People who have worked the system to get, shall we say, very good deals for themselves have left us with a potentially diminished future. They have done so by taking away future revenues, and shifting past costs forward, all in order to live in way they feel entitled to with the diminished effort they felt like making. And not just through the MTA. In a way, the region’s transportation system never recovered from the deferred maintenance of the 1950s, 1960s, and 1970s. At first, through the work and sacrifices of many people, the transit system, police and other services partially recovered from the years of high taxes with essentially nothing in return. But then subsequent generations merely substituted a greater financial hole, through debts and public employee pension enrichments unmatched by adequate contributions, for a reduced level of physical deterioration. Meanwhile, a third bond issue has been passed for the Second Avenue Subway, and yet the proposed capital plan does not even have the money to finish three stations. If the state legislature wanted to do the right thing, is there still a way out? I think there is, although the MTA and legislature are unlikely to approve it.

This Doesn’t Sound Good

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The whole national political scene is not my interest, unless it involves public policies I care about, but someone forwarded this to me and I thought some of you might be interested.

"Welcome to the 'Re-create 68' website, your virtual activists' Convergence Center for the Denver Democratic National Convention of 2008. This website was created for all the grassroots people who are tired of being sold out by the Democratic Party."

"R-68 agrees with the proposition, POTESTAS IN POPULO, "all power comes from the people." What stands between the people and power are the party machines. The parties were devised as a means to represent the people. Today they represent nobody, not even party members, but only party bureaucracy. The people have been left without appropriate institutions for their representation. We intend to create those institutes!"

Congestion Pricing: My Non-Public Hearing Testimony

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Streetsblog reports that our overlords in the New York State Assembly will be having a public hearing on congestion pricing, and it will be taking place right around the corner from the place I work. The last time they did so, I decided to show them up by riding a bicycle part way to work and comparing my trip mode to theirs here. My neophyte bike commute had some problems, but I found that I really, really had fun doing it. Enough fun that I did some research, made some adjustments, and observed how and where others locked up their bikes. Beginning a month after that first hearing, I have been biking the nine miles to and from work three or four times a week. It’s the most exercise I have gotten since college, or maybe high school, and it costs me little if any extra time out of my day. What had seemed impractical now seems to be the most practical thing I have done in years, and I wish I had done it 20 years (and 40 pounds) ago. One might say that this is the only good thing the New York State Legislature ever did for me. I’ll write more about some changes in my thinking as a result later, but for now I’ll put yet another two cents in on congestion pricing, and I’ll do it here because the “public hearing” is by invitation only and surprisingly I didn’t get an invitation.