Say what you want about our mayor and his modus operandi but he has gotten a few things right over his tenure. I am not a big fan of his but I don’t dislike him either. He was absolutely correct with his ban on cigarettes in certain public establishments; taking the flack in order to get that policy into law. He was correct in putting public education on the front burner; even though I feel that his successes in this area were somewhat exaggerated: but you can’t deny that he has genuinely tried to deal with the issue. I think that in principle he was correct to suggest some type of congestion pricing formula for Manhattan’s traffic congestion problem; hopefully the details would be worked out before pigs grow wings. His positions on the issues surrounding illegal firearms (guns, gun shows, gun sales, etc.) are sensible and timely; and there are other things I could commend him on. Of course there are also many others that I could critique him on; like his police department that’s totally out of control, and the fact that big developers have surely enjoyed his tenure in profitable ways; but that’s not the issue here. You can always view my column in the archives (where I called him a leprechaun), to get a better sense of how I felt about him just a year ago.
The Latest
Engaging the State Budget: What Has Posterity Ever Done for Me?
|There is no more hypocritical whine than older New York State residents complaining that their children find it necessary to move away to find a decent life for themselves. It is hypocritical because while providing the nation’s richest Medicaid services for senior citizens, and excluding retirement income from state (and in New York City local) income taxes, New York has made decision after decision for nearly 20 years to favor those cashing in and moving out at the expense of the state’s future, which is now the present. In general, Republicans sell out the future with debts, caused by tax breaks and rich government contracts for business. Democrats do it with pension enhancements for those with seniority and already retired, passed every time a stock market boom swells pension fund coffers, followed by lower wages and benefits for new hires, agreed to by the Democrats’ union allies every time high pension costs leave the government broke. Now that the bills are starting to come due, there is a bit of unease in Albany, as our “leaders” look around for someone to blame. But with every deal passing the state legislature 212 to 0 they are all to blame. So are the older generations that have gratefully accepted this largesse without questioning who would pay how much. It is those deals that should be undone, and those generations who should pay first, if a recession and fiscal crisis requires sacrifice. To do otherwise would mean that Spitzer and Francis are merely continuing the practices of the now-despised Pataki to pump up the current Governor’s short-term popularity. In the end, Spitzer would be despised as well.
Question For Eliot Spitzer and Paul Francis: Are Your Planning on Hitting Up the Same Victims Again?
|Newsday has reported that Governor Eliot Spitzer and budget director Paul Francis are “engaging the public as we determine our priorities for how to best use the state's limited financial resources, while minimizing the burden on taxpayers and keeping our business climate competitive.” If by “the public” they mean those with the greatest sense of entitlement and the most hooks into the state legislature, then all they have to do is choose the same victims to pay more or get less as in the early to mid-1990s and early 2000s. That is the “humble” thing to do, since it is the path of least resistance in the state legislature, and the path least likely to generate reputation-tainting opposition advertisements. If that is the path they choose, however, the Spitzer Administration will have failed the people of this state to an unimaginable extent. My suggestion, if they wish to “engage” with it, is to do the opposite. Reduce spending in categories and places where it is high, not where it is low. Raise revenues by eliminating tax breaks, even popular ones, rather than raising rates. And stop destroying the common future in order to curry favor with those with the greatest sense of entitlement in the present. For health care and aid to local governments, the details are below. And they assume a much more difficult fiscal environment than has been admitted thus far.
The Vines (#05-07)
|Whenever I run into political junkies on the streets, most of the static I receive-for my writings on these here blogs- usually come from, or for, things I say in my “Vines” column. I remember a couple years back when I first started doing these columns; I specifically told you all (between columns and threads) that it would be a mixture of political gossip, political history (first, second and third hand/lol), my insight/speculation/analysis, some inside info, some hard core facts/news, and some cleverly disguised political stuff for some of the insiders to figure out-much to their chagrin (I hoped/lol). I know that I haven’t disappointed you guys; and I base this conclusion on the feedback I get throughout all five boroughs. My blogging over the past three years has made me more popular now, than my almost 35 years of political and community activism in the five boroughs of New York City (and even beyond). Strange but true, and it demonstrates the power of media.
Rudy & The Loft Board
|The story by Ben Smith about Rudy Giuliani's administration hiding the City's expenditues for his trysts with future wife #3 includes one point that puts a lie to part of the image Rudy is now peddling.
One of the obscure City agencies that paid for Rudt & Judi is the Loft Board.
Think about it.
Rudy claims to be a believer in law and order. He says he reformed New York City by governing as a fiscal conservative.
But he kept a board whose function is to regulate the rent charged to people who live in housing that they illegally converted from commercial space to rental space.
The Times on Health Care
|In an editorial on health care costs, the Times describes much U.S. health care as unnecessary, ineffective, or wasteful. But it also asks “if citizens of an extremely wealthy nation like the United States want to spend more on health care and less on a third car, a new computer or a vacation home, what’s wrong with that?” There is nothing wrong with that, if they are spending their own money as individuals by their own choice. There is something wrong if they are forcing other citizens to pay more and accept less — in the case of the uninsured possibly even basic health care, to pay for it.
Barack Obama Will Win the Iowa Caucus
|By now, those who have been following my columns on these here blogs are already aware that I swim against the current a lot; so this prediction will be no surprise to many. Over the years I have made some gutsy calls on many levels; my success rate is high (but not perfect/lol). I am predicting that Barack Obama will win the Iowa caucuses on January 3rd, next year. I also predict that it won’t even be close.
Look, before you read too much into my prediction, let me be clear: I am not predicting (as yet) that he will be the presidential nominee for the democrats in 2008; neither am I predicting at this time that he will win the New Hampshire primary a few days after Iowa. All I am saying is that he will handily become the Iowa caucus choice. And yes, I do hope that he wins the democrat’s nomination on his way to the winning the presidency; but in terms of thinking: that’s more wishful than cerebral.
Garbage Pols in, Garbage Policies Out of Albany
|With Sheldon Silver laying low since Eliot Spitzer become Governor, I’ve spent the last year focused on how bad Joe Bruno and his ilk are for our state. But lately, Silver has set out to even the score, possibly thwarting plans for congestion pricing, certainly to blame for stuffing a well thought out and long-argued New York City garbage plan. With congestion pricing, at least, it could be argued that if Silver allowed a vote the plan would be voted down, that it hasn’t yet been endorsed by the New York City Council, and that other alternatives should be considered before a final decision is made. Silver being Silver I doubt it, but an argument could be made his is being reasonable and we are still moving toward a reasonable outcome. The garbage plan, however, was passed by the New York City Council in a show of considerable political courage, particularly by the Speaker, and is the result of 20 years of arguments, with one interest or another, one concern after another blocking all prior plans. Garbage, like traffic, is one of those things that can never be made perfect, but the city’s plan was certainly vetted. The argument that it would encumber a park is a red herring – the “park” is a similar facility closed not long ago, probably mapped as parkland precisely to avoid its use for anything like a recycling station. And unlike the congestion pricing plan, the city’s garbage plan would certainly have won in a free vote. The question is what to do now.
Do You Want To Repay That Mortgage in Euros or Yuan?
|What I first recognized as a late-1980s-type housing price bubble, which I then learned to be part of a financial bubble, may in fact have been the last leg of a 25-year excess consumption boom. Now, instead of a necessary (and for tomorrow’s home buyers beneficial) return to normal housing prices with some collateral damage, we may be in for something much worse. Remember the 1970s? Next year is probably going to hurt. Some time ago I said that by the time the 2008 election rolled around no one would be talking about Iraq. I also said that the Democrats would be lucky not to be in the White House, and would have been better off not having control of Congress. That was based on falling housing prices alone. That prediction I repeat, in spades. Given that I will be affected by the fiscal fallout no matter how well I have personally insulated myself from the consequences of other people’s decisions, I’m starting to get worried. Let’s look at the scenarios.
Has A Long Term Trend Ended?
|As long time readers of my posts know, local governments in the rest of New York State (the portion outside New York City) have been on a hiring binge for nearly two decades, despite ongoing complaints about property taxes and a stagnant population. The trend has been particularly pronounced in education, where with the exception of New York City districts have been told that the more money they spend, the more back door school aid (via STAR) they would receive. New York City, on the other hand, has been under pressure to cut costs and staffing for 30 years. While good economic years have seen increases and bad ones cuts, the long term trend in New York City public employment has been down. In general, when fiscal times have been tight, the rest of the state hasn’t cut back at all. Rather, it is New York City’s share of state fiscal resources that has been reduced. Elsewhere, no amount of money has ever been enough, as long as New York City taxpayers, future state taxpayers, or the city’s children could be sacrificed to pay. Well this could just be a blip, or the result of sampling error or people filling out forms incorrectly, but the New York State Department of Labor reports that in October 2007 local government employment in the rest of New York State was 3,400 lower than it had been a year earlier (see attached).