Bluegrass Beacon: Shoot for bang for the buck in public schools

by Jim Waters

There is an upside to Kentucky’s budget crunch: It forces everyone from legislators to agency heads to school superintendents to get the most out of every buck mailed in by taxpayers.

Lean budget times can also produce shining – and refreshing – examples of how some public servants refuse to make excuses and simply succeed with the resources available.

For instance, a recent Bluegrass Institute report entitled “Bang for the Buck 2012: How efficient are Kentucky’s schools?” reveals that some Kentucky school districts spend far less than the state average of $10,814 per pupil and yet are producing above-average ACT results.

Graves County schools, for example, is spending more than $2,000 less than the state average on each of the more than 4,000 students in its district, yet its ACT Composite score is 19.4, significantly higher than the state average of 18.8.

But Grave County’s performance – and the performances of several other districts around the commonwealth – addresses another issue that often arises when comparisons between school districts are attempted: poverty.

Without fail, whenever the issue of holding schools and teachers accountable for their performance arises, the usual kneejerk reactions offered by defenders of our public education system’s overall mediocrity usually center on lack of funding and high poverty rates.

Yet Graves County is achieving above-average academic results with below-average spending even though 56 percent of its students come from low-income homes that qualify for free- and reduced-cost lunches.

More than 60 percent of the 8,410 students who attend school in the Laurel County district – one of the state’s largest – come from low-income homes. Yet the district produced a 19.5 ACT score last year while spending $806 less per pupil than the state average.

Graves County Superintendent Pete Galloway has a different mantra than the excuse-making, accountability-avoiding refrains that we hear so much of today.

“In our school district, we strive for excellence – no exceptions, no excuses,” he said.

How refreshing. There is no hint of pointing fingers, accusing taxpayers of being cheapskates or attempting to blame problems on parents or poverty.

Are parents important? Absolutely. Is poverty an issue? Yeah.

I’m sure Galloway and every superintendent achieving more with less would tell you: “Yeah, we’d like more money. Sure, we wish all parents were engaged. Ideally, poverty would not exist.”

But that’s not what you hear from Galloway.

Instead, he simply says: “In the Graves County Schools, we believe number one that all kids can learn and rise to our expectations.”

I believe “all kids” includes children from poor and less-than-ideal home situations, doesn’t it?

If more funding would somehow magically – in and of itself – produce a better education system, how is it that:

  • Owsley County schools spend $16,049 per pupil and yet had a district ACT Composite score last year that was 2 full points below the state average?
  • Frankfort Independent spends $2,478 more per pupil than the state average and yet had a district ACT score significantly below the state average?
  • Covington Independent spends $2,397 more per pupil than the state average yet produced an abysmal 15.6 ACT Composite score?
  • Knox County spends $11,230 per pupil but the best it can do is offer one of the lowest ACT Composite scores in the entire commonwealth?

Blaming Kentucky’s failing schools on a lack of funding is about as legitimate as blaming low attendance at UK’s football games this year on a lack of people residing in Lexington.

Since the Kentucky Education Reform Act was passed in 1990, inflation-adjusted spending on public education has nearly doubled.

In too many districts, test scores – and expectations – have not kept pace.

Jim Waters is acting president of the Bluegrass Institute, Kentucky’s free-market think tank. Reach him at jwaters@freedomkentucky.com. Read previously published columns at www.freedomkentucky.org/bluegrassbeacon.

Bluegrass Beacon Column: Who gets to decide what’s ‘fair?’

By Jim Waters

“Fairness” is a term getting thrown around during the current campaign season more than a football at a Cards vs. Cats game.

President Obama has even made it the centerpiece of his reelection campaign, using rhetoric filled with talk of “fairness” but nothing about “freedom.”

One of his standard lines pines for “an economy where everyone gets a fair shot” and “everyone does their fair share.”

But the question I have is: Just what is it that makes a government edict fair or unfair?

For instance, is it “fair” to Kentucky citizens for Gov. Steve Beshear to accept $67 million from Washington in order to set up a government-run health exchange in the commonwealth without legislators’ consent?

Is it “fair” to Americans to market Obamacare as the “Patient Protection and Affordable Care Act” when it will not protect the most vulnerable among us, and actually makes health care for most responsible Americans less affordable?

Is it really “fair” to force everyone in the commonwealth to purchase health insurance at a price that cannot be influenced by either existing health or personal lifestyle choices?

To some, this may seem intuitively fair – especially to those chronically ill patients unable to pay for their own care.  .

But for Obamacare proponents, such “fairness” should be decided willy-nilly on a case-by-case basis.

They claim it’s “fair” to implement policies that are “unfair” to healthy Americans who neither need nor want such high-cost coverage. Instead, this coverage is forced upon them to subsidize those who, in many cases, have made irresponsible decisions that have resulted in their current predicament.

Spreading the costs of unhealthy behavior offers incentives to otherwise healthy individuals to throw caution to the wind. Is it “fair” that healthy behavior is punished for the sake of making unhealthy choices less costly to the individual?

Don’t we want just the opposite?

When it comes to pollution, many environmentalists point to Kentucky’s coal industry as one of the culprits infringing on social equity. They hail the Environmental Protection Agency as a bastion of fairness to keep the commonwealth’s ecosystems and public lands from being polluted.

But what’s “fair” for the radical greenies may be completely “unfair” for the Appalachian communities throughout Kentucky that rely exclusively on the black rock for economic well-being.

What if we consider the jobs drawn to Kentucky from the aluminum, steel and automotive industries because of some of the lowest energy rates in the nation – all due to Kentucky coal?

How is it “fair” for the costs and benefits of Kentucky coal to be determined by unelected bureaucrats in far-off Washington D.C. when the effects of our energy sector are most felt right here at home?

Who gets to determine what’s “fair” when it comes to tax policies?

Apparently, it’s a no-brainer that 1 percent of Americans holding 40 percent of the national wealth is “unfair,” but expropriating this group’s legally acquired property for the sake of equity isn’t? Just how did the Occupy Protestors calibrate their moral compass to arrive at that gonzo conclusion? Am I the only one lost here?

There’s an assumption that if we raise taxes on the “wealthy,” somehow or other the only consequence will be more money flowing into government coffers.

But what we’ve found is just the opposite. Such “fairness” policies reduce economic activity, which, in turn, reduce the amount of money available for public service.

Some want to anyhow, claiming such tax hikes ensure “equity.”

That seems “unfair” to me. And why shouldn’t my understanding of “fairness” count just as much as anyone else’s?

Jim Waters is acting president of the Bluegrass Institute, Kentucky’s free-market think tank. Reach him at jwaters@freedomkentucky.com. Read previously published columns at www.freedomkentucky.org/bluegrassbeacon.

Coming soon: Future Shock/Gold Rush

 

Bluegrass Institute Liberty Awards

RSVP Here!

2012 Bluegrass Institute

Liberty Awards 

Featuring Keynote Address by

Congressman Brett Guthrie (R-KY)

 Celebrating the pillars of liberty

Free-markets

Smaller government

Personal liberty

Please join us for a special event hosted by the Bluegrass Institute for Public Policy Solutions recognizing Kentucky legislative leaders who worked diligently to promote ideas of liberty and smaller government during the 2012 legislative session.

 Keynote speaker Congressman Brett Guthrie (R-KY) will offer a brief speech to be followed by a reception for sponsors and award winners. Guests will enjoy complimentary cocktails and hors d’oeuvres.

 Thursday, May 24  -  6:00 PM

The Great Hall at the Frazier History Museum,

829 West Main Street, Louisville, KY  40202

DIGTAL LEARNING

Bluegrass Institute calls for removal of armed guard, more transparency in state budget negotiations

For immediate release
Tuesday, March 27, 2012

Contact: Jim Waters 270-782-2140

 

(FRANKFORT, Ky.) – The Bluegrass Institute called on the state’s political leaders today to increase access to the room where critical budget negotiations are being held today.

The hallway leading to Room 131 of the Capitol Annex, where the state budget conference committee is meeting today, has been roped off with an armed guard preventing reporters from entering the room.

“Armed guards, roped-off rooms and closed blinds do not communicate transparency and openness,” said Logan Morford, vice president of transparency for the Bluegrass Institute, Kentucky’s free-market think tank. “If taxpayer funds are being respected and spent responsibly, then why not get rid of the ropes, blinds and guards?”

While Kentucky has taken many steps forward regarding transparency in recent years, now is not the time to go backwards, Morford said.

Reporters have been forced to watch the proceedings, which are broadcast on Kentucky Educational Television, outside the room in which budget negotiations are being held.

“One public-TV camera doth not transparency make,” said Bluegrass Institute president Jim Waters. “Would politicians rushing to finish their budget work so they can get to New Orleans and watch a Final Four basketball game be content with staying home and watching the game on TV?”

The institute will provide developments on this transparency issue on Twitter (@BIPPS) and on Facebook (www.facebook.com/BluegrassInstitute).

For more information, please contact Jim Waters at 270-782-2140 orjwaters@freedomkentucky.com.

Bluegrass Institute president resigns to run for House seat

For Immediate Release:

Wednesday, Feb. 8, 2012                                                                        

(LOUISVILLE, Ky.) – Phil Moffett has resigned as president and CEO of the Bluegrass Institute, Kentucky’s free market think tank, in order to vie for a seat in the state House of Representatives.

Moffett, a Louisville businessman and former gubernatorial candidate, said redistricting developments in Frankfort offered him an opportunity to run for State Representative for the 32nd House District.

“We think Phil will be a great friend and ally of the institute in public office but understand that by becoming involved with the political process, he will need to have a different relationship with the institute,” said Kathy Gornik, chairman of the institute’s board of directors. “We greatly appreciate Phil’s contribution and concur that the institute must remain nonpartisan and a source of credible, objective and accurate information that empowers citizens to hold policymakers accountable.”

The decision preserves the independence that allows the institute to cross party lines and promote sound policies aligned with its founding principles of individual liberty, economic prosperity and property rights, Gornik said.

“Phil and the institute share a vision of a free and prosperous Kentucky – where government protects the rights of citizens to determine their own directions in life,” she said. “Being a business owner myself, I know how important it is that we have policymakers in Frankfort who understand how high tax rates, lack of school choice, heavy-handed regulations and Nanny State edicts hinder job creation and economic growth. Phil can and will make a difference.”

While the relationship between the institute and Moffett will change, he said the need for effective policymakers to protect liberty and advance freedom, defend liberty and shine the light on state and local governments remains unchanged.

“I leave the Bluegrass Institute with great respect and admiration for their mission of smaller government, free-markets, and the protection of personal liberties,” Moffett said in a statement. “I intend to continue this fight from within state government.”

For more information, please contact Jim Waters at 270-782-2140 or jwaters@freedomkentucky.com

Future Shock: Legislators stoking the coals on Kentucky’s runaway pension train

For Immediate Release:
Contact: Jim Waters
Thur., Jan. 5, 2012
270-782-2140

Future Shock: Legislators stoking the coals on Kentucky’s runaway pension train (right-click & save target as…)

A failure to meet pension-payment requirements 11 of the last 15 years leads to a 3,000 percent increase in the Bluegrass State’s unfunded liability since 2000

(FRANKFORT, Ky.) – A new Bluegrass Institute report cautions that a failure to enact meaningful reform of Kentucky’s public pension system threatens to crowd out essential government services, including public safety and education. 

The report is the second of the institute’s four-part “Future Shock” series and chronicles the disintegration of the commonwealth’s six retirement systems. It urges lawmakers to undo past decisions resulting in unintended – and undesirable – results.

Addressing the deepening pension crisis “has become a societal issue,” writes Lowell Reese, the report’s author who also owns Kentucky Roll Call, a public affairs company, and is a former state Chamber of Commerce executive. “The standard of living of all Kentuckians is at stake.”

A failure by the state to properly fund, manage and maintain Kentucky’s retirement systems has deepened the commonwealth’s unfunded pension liability from less than $960 million in 2000 – a manageable amount – to $31.4 billion in 2010, Reese said.

He notes several issues that any successful reform must address:

  • Our six state pension plans are currently underfunded by more than $31 billion. The Legislature plans to continue underfunding each plan’s annual Actuarially Required Contribution (ARC) for several more years, some as late as 2024. This underfunding will cause the pension deficit to continue to balloon, putting more pressure on the commonwealth’s economy, diminishing the ability to grow jobs and leaving tax hikes as the “most likely” source for needed funding. 
  • Very soon, city and county governments will experience enormous financial pressure.  Unlike state government, city and county governments must fully fund their Actuarially Required Contribution (ARC). The ARC rate for cities and counties has skyrocketed from 6.34 percent of payroll in 2003 to 16.28 percent today. It is projected to jump to 23.51 percent by 2018. The ARC for hazardous-duty jobs like police and fire protection has skyrocketed from 16.16 percent in 2003 to 32.9 percent today, and is projected to be 46.29 percent of payroll by 2018. Unlike the General Assembly, which has nearly unlimited taxing authority, local governments are greatly restrained in their options for new funding sources to close widening pension gaps.
  • Benefit creep. According to Reese, there are at least 41 different ways legislators have bestowed “overly generous retirement benefits on public employees, and they authored and allowed abuses for decades.” By gradually bumping these benefits up several times over the decades, legislators have added billions of dollars in additional benefits for which the cost is ultimately guaranteed by Kentucky taxpayers. Some examples include a typical 37.5 hour work week; 11.5 holidays a year; accumulation of more than six weeks of “comp time” to add to end-of-career compensation and enrich pension payouts; accumulation of months and years of sick leave; one full day to vote; and two full days a year to donate blood; hazardous duty employees may retire after 20 years, regardless of age; 11 years of no increase in the percent they pay for health insurance; and guaranteed pension payouts, despite the economic condition of the state or returns on market investments.
  • State pension plans are considered “inviolable contracts” by law. The pension plan in place the day a state employee is hired is guaranteed for life for them – and their surviving beneficiary – regardless of economic conditions or returns on market investments. The inviolable contract, through force of law, obligates Kentucky taxpayers to pay the bill no matter how big it becomes.

Kentucky’s pension plans are shrouded in secrecy. Public employee pay plans are public record and available on the Internet. Yet the day these workers retire, their pension benefits are hidden from public view even though they are predominately funded by taxpayers. To fully understand the abuses taking place – like double- and triple-dipping – pension benefits must be transparent and open to public scrutiny.

“While we recognize a tough economy has resulted in poor market returns on pension-investment funds, the reality is that past and present legislators made the decisions that led us into this mess and they are the only people who can make the tough decisions necessary to get us out of it,” said Phil Moffett, the institute’s president and CEO. “Strong leadership is needed to stabilize the system so it doesn’t continue to threaten our entire economy. As part of this series, we will offer free-market solutions that, if followed, will help address this problem in a productive way that protects current retirees and future taxpayers.”

Download the report here.

For interview information, contact Jim Waters at 270-782-2140 or jwaters@freedomkentucky.com.

Need a gift idea? Give the gift of a transparent and accountable government

Tis’ the season for many struggling retailers to finally move their finances from the red ink column to the black. So, after enjoying a day of food and thankfulness, many of us will be putting on the full armor of early morning shopping, to include well-worn running shoes for capturing space at the head of the sale line and a steaming cup of coffee for that jump start needed for the upcoming Christmas shopping season. It’s that time of year when we all should at least begin to think about gift giving.

I’m sure many in the liberty movement have heard or read the phrase, giving the gift of freedom.  But how are we doing? Like me, you might be asking yourself, “I’ve been giving the gift of freedom in every way I know how and what do I have to show for it?”

Regardless of your religious beliefs, Proverbs is a great place to go for quotes and there is one that I think applies to our movement today and even right here in Kentucky. Proverbs 24:10 states “Don’t give up and be helpless in times of trouble (CEV).”

Unemployment still hovers at 9.7% across Kentucky and our state’s budget gaps with regard to our public pension spending and Medicaid are only beginning to worsen. It’s easy to look at the results of our statewide elections and those in neighboring states and be discouraged. But now is not the time. In fact, now may be just the time to start giving the gift of a transparent, accountable and constitutional government.

In fact, just several weeks ago, the Bluegrass Institute celebrated with an election day blog post that you can read here.   You see, the Bluegrass Institute is fighting for transparency and accountability in government everyday–election day and even black Friday.  And it looks like people are starting to wake up to the need for real transparency and accountability.

The Wall Street Journal, on November 18th, ran an article authored by Sarah Palin all about transparency and accountability. She talked about how politicians and their crony supporters get their power from their office and access to our hard earned tax dollars. She spells out how members of congress and the federal web of department regulators and bureaucrats exempt themselves from the laws they apply to the rest of us. She writes,

“That includes laws that protect whistleblowers and Freedom of Information Act Requests. The corruption isn’t confined to one political party or just a few bad apples. It’s an endemic problem encompassing leadership on both sides of the aisle. It’s an entire system of public servants feathering their own nests.”

And we know something about Freedom of Information Act Requests. You can follow our series on tips for filing an Open Records request by clicking here. We’ve been filing them since we won the prestigious Atlas Economic Research Foundation’s Dorian & Antony Fisher Venture Grant in 2008–one of only nine think tanks in the world to win and the only one in the United States–for our efforts to build a liberty wiki dedicated to publicizing the results of our transparency and accountability efforts.

As Sarah writes in the WSJ, “We can no longer afford to be indifferent to this system of graft when our country is going bankrupt.”

Maybe it’s time to consider giving the gift of a transparent and accountable government.

Open records tips

 

Transparency is the first step toward accountability. Open records requests and open government laws are some of the best tools we have in transparency work.

In this series of blogs, I will be sharing lessons learning, tips for success, and general open records knowledge that the Bluegrass Institute has accumulated over the years. After submitting hundreds of requests at a variety of agencies, cities, school districts, etc… we have some knowledge we want to share!

TIP #1 – Know the law!

TIP #2 – Be Specific!

TIP #3 – Know who to contact!

TIP #4 – Three days

TIP #5 – Be organized, keep records

TIP #6 – Be polite!

Sample open records request