Commerce is the Profession of Equals

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I recently had lunch with a good friend who is a commercial real-estate broker. After exchanging pleasantries we entered into an extended discussion of the role of government in the control of what my friend describes as “dirt”. Real-estate is after all basically “dirt”.

He was concerned that one developer can devalue the dirt of another developer.

He used the example of a “dirt” owner constructing a five-story building near the waterfront, something we have a lot of in Florida. Along comes another developer and he or she builds in front of the first developer an eighteen-story building, thereby blocking the water view of the first developer. The land value of the first developer declines because of this. My friend found this outrageous and wanted government to step in to protect the first builder against the second.

I said, rather forcefully to my friend, that this is an example of the free market working. Dirt rises and falls in value due to many factors, including the one my friend described. My solution was the first builder should tear down his five-story building and build a new thirty-story building, thereby regaining his view of the water and increasing the value of his dirt. My friend would have none of it. He wanted government to step in and prevent the second builder from building. He favored central government planning over market forces to determine the value of water front “dirt”.

Here in lies the problem.

In his book The Ruling Class: How They Corrupted America and What We Can Do about It, Professor Aneglo M. Codevilla states, “[The bi-partisan Ruling Class] proceeds from the premise of human inequality and leads to even greater inequality . . .[O]ur Ruling Class is making itself the arbiter of wealth and poverty. While economic value of anything depends on sellers and buyers agreeing on the value as civil equals in the absence of force, modern government is about nothing if not about tampering with civil equality.”

What my friend embraces is government as the final arbiter of the price of “dirt”.

Once government controls the price of dirt, it controls everything. According to Professor Codevilla, “[M]odern government makes valuable some things that are not, and devalues others that are.”

“Whatever else government may be, it is inherently a factory of privilege and inequality. Thus, if you are not among the favored guests at the table where officials make detailed lists of who is to receive what at whose expense, you are on the menu,” notes Professor Codevilla. This is the definition of “crony capitalism”. The bi-partisan Ruling Class teaches that prosperity is to be bought with the coin of political support. John Kenneth Galbraith characterized America’s economy as “private wealth amidst public squalor.”

I believe in the Catholic principle of “subsidiarity”. In the secular world, the principle of subsidiarity means that local government should do only those things that individuals cannot do for themselves, state government should do only those things that local government cannot do, and the federal government should do only those things that the individual states cannot do.

The title of this column is a quote from The Spirit of the Laws by Charles de Montesquieu who also wrote, “Peace is a natural effect of trade.” Beware of government eating dirt!

Florida Makes High Gas Taxes Top 10 List

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The American Petroleum Institute (API) collects motor fuel tax information for all 50 states and compiles a report and chart detailing changes and calculating a nationwide average. Florida is listed as number ten on the list of gasoline taxes at 53.4 cents per gallon (cpg). Florida ranks 16th for diesel motor fuel taxes at 54.9 cpg. To view the July 2012 API report click here.

The nationwide average tax on gasoline of 48.9 is down .6 cpg from the April 2012 API study. The federal tax on gasoline is 18.4 cpg. The average state gasoline excise tax is 21.0, up .1 cpg from April 2012. Other taxes (such as applicable sales taxes, gross receipts taxes, oil inspection fees, county and local taxes, underground storage tank fees and other miscellaneous environmental fees) were 9.5 cpg, down .7 cpg from April. Adding these taxes and fees to the state excise taxes results in a volume-weighted average state and local tax of 31.1 cpg.

The difference is Florida has higher “other taxes” on gasoline and diesel motor fuels.

According to its website API, “Supports the implementation of sensible taxing policy that considers broad based approaches over industry specific proposals, supports efficient approaches to tax collection and weighs the impact of taxes on the ability of U.S. based business to compete in the world market place. ” Specific tax proposals to provide cheap and reliable power and meet the energy needs of the United States are provided here. The API makes specific recommendations on the: Repeal Sec. 199 for Oil and Natural Gas Companies; Repeal Expensing of Intangible Drilling Costs; International Reform/Dual Capacity; Increase Geological and Geophysical Amortization Period; Raising the Oil Spill Tax; Reinstate Superfund Taxes; and Repeal EOR Credit and Marginal Well Credit. To read the detailed recommendations on these taxes click here.

The API website states, “It will take all forms of energy to promote our economy. That’s why API and our members support the development of renewable and alternative sources of energy. However, we it must be done as part of a comprehensive energy policy that encourages the development of all forms of domestic energy.”

The below map depicts January 2012 gasoline tax rates by state and was prepared by API:

Sarasota County’s Buses to Nowhere

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The Sarasota Board of County Commission believes it is their role to provide public transportation. Automobiles, and the emissions they cause, are the culprits. Cars must be replaced by other means of transportation such as: light rail, high speed rail and now special bus routes. As one commissioner put it “we are subsidizing cars”. So the County Commission wants to continue to subsidize the Sarasota County Area Transit (SCAT) buses at a loss of $10 million annually and create a new Bus Rapid Transit (BRT) system as well. BRT and SCAT make the County Commissioners believe they are doing a public service by providing ever more costly public transportation with few riders.

Sarasota County government runs two bus services and both are monopolies. SCAT is run by the County and the other run by Sarasota County School Board. Both are paid for by county property taxpayers. These two mass transit systems are costly and inefficient in their own way. Neither would last long if privately owned. To make them profitable or at least pay for them the actual cost to ride would have to be passed on to the riders.

According to Charles Schelle from Sarasota Patch, “The latest Bus Rapid Transit route will apparently head for a detour. The $100 million transit plan to provide Sarasota with a speedy bus option with limited stops and traffic interruptions had a route set to go from Sarasota-Bradenton International Airport and south all the way to the Westfield Southgate Mall with several stops in between, with the northern route following an unused Seminole Gulf Railway along Lemon Avenue.”

$100 million for a 20 mile bus route works out to be $5,000,000 a mile. But that is not the full cost.

Schelle reports, “The County has to find ways to fund the $25 million difference, possibly with a transit tax, and the annual operating budget.” These public transit systems always start out underfunded, end up underutilized and the operating costs escalate beyond the initial projections. In other words they are economic failures from the start.

“The commissions focused in on the county Director of Planning and Development Services Rob Lewis’ comments that the Bus Rapid Transit is more about the economic spurs and opportunities areas around the stations can provide and getting people from low income areas to work than being about moving people for sake of reducing congestion. Lewis said staff has not advocated for an altered route,” writes Schelle. There is no explanation on how this bus line helps economic development. Most people do not work at either the Sarasota/Bradenton airport or Westfield Southgate Mall.

County Commissioner Joe Barbetta stated, “I think that we have to look at the BRT as part of a multifaceted plan. SCAT has to be successful or else the BRT doesn’t work. I think a downtown circulator is inevitable for the city or the plan doesn’t work. And the grant funding has to be pursued or else the plan doesn’t work.”

So how do you make SCAT successful? You give away free rides. According to Schelle, “Thursday [April 19, 2012] is Try Transit Day where riders on regular fixed-route SCAT or commuter Express buses will have free fares. On all other days, the standard fare for a single-ride is $1.25 for the regular fixed-route service and $2.50 for the Express service.” These fairs do not come close to covering the cost of SCAT and cannot cover the operational costs of BRT.

SCAT does not break even and therefor is not successful. SCAT will never be successful. The buses run empty, it loses money as far as the eye can see and its purpose is to transport poor people. Success is based on providing a service to people who want it, not creating a service with no real market. SCAT and BRT are buses to nowhere. That is what government does when it spends other people’s money to build failures.

MAJOR CHRISTIAN GROUP ENDORSES WELDON FOR U.S. SENATE

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The United Christians of Florida’s Political Action Committee is urging, “all principled patriots to support Dr. Dave Weldon, trusted physician and conservative former U.S. Congressman in the race for U.S. Senate in Florida.”

“In Dr. Dave Weldon, we have a proven and experienced Congressional Representative who understands how to lead America toward economic stability and prosperous times for generations to come,” said Mike Nelis, United Christians of Florida, Executive Director.

Looking at the Republican Primary candidates, Nelis feels that “. . . merely sending a ‘fiscal conservative’ to forge long-term solutions in Washington is not the sole answer to our dilemma,” added Nelis. “Dr. Dave Weldon has the deeply rooted Christian spiritual conviction to add proper balance to fiscal policy and bring lasting improvement to our economic crisis. His personal convictions would stand in unity with our nation’s founders who in times of frustration and confusion turned to fasting and prayer for solutions – and they got the answers they sought!”

The group is specifically concerned about one of Weldon’s opponents. “Floridians have been fooled by slick campaigns before that have done a disservice to the nation by sending the deceptive liberal-progressive Bill Nelson as our representative to the U.S. Senate. Now, Florida Republican power brokers with the assistance of the media seem to be anointing Fort Myers Congressman Connie Mack, IV who claims the dedication to sound fiscal policy but demonstrates spiritual immaturity regarding social concerns and therefore, is unable to lead us toward God’s blessing and true national prosperity, ” Nelis stated.

The Christian PAC has been making recommendations to voter since 1986. In fact, they were “. . . the very first, of any organization, in February 1988, to endorse Connie Mack, III (the father of Connie Mack IV) for his first U.S. Senate race and continued to support him through his successful time in public service,” said Nelis. “It is with deep regret that an endorsement of (the son) Connie Mack, IV is not possible at this time due to his misunderstanding regarding issues of human life and his shallow respect for the sanctity of marriage and the critical importance of full-time fatherhood.”

The group stated it is proud of their excellent record of early support for winners, Rick Scott for Governor in 2010, for example. And they feel they have this race called accurately too.

“In many ways, this Weldon campaign reminds me of Rick Scott’s race. The political establishment has picked their candidate (Connie Mack), but conservative Christian activists and TEA party members are gathering in growing enthusiasm for Dave Weldon,” added Nelis, “and he only lacks the high dollar special interests that support Nelson and Mack! I happen to believe in political volunteers and the kind of activism that counteracts the multi-millions spent on mail, television and radio ads and sends the right people into public service. I will still always contend that is what actually made the difference for Rick Scott, regardless of what he spent.”

Pinellas County Commissioners defy voter-approved term limits

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Of the 20 charter counties in Florida, voters in 11 have overwhelmingly approved term limits for their county commissions. Ten of them recognize and respect the law.

The exception is Pinellas County.

In 1996, 73 percent of voters in Pinellas approved a countywide referendum that limited their county commissioners and county constitutional officers to eight years in office. Since then, a split Florida Supreme Court in Cook (2002) decided that counties don’t have the right to impose term limits on constitutional officers. But the Pinellas County commission decided the Cook decision applied to them as well even though the Supreme Court never ruled on commissioner limits in Cook or any other decision.

Until this year. In May, the Supreme Court not only clearly affirmed the constitutionality of county commissioner term limits, but also overturned its previous ruling in Cook regarding constitutional officers.

There is no longer any question whatever about the legality of county term limits in the state of Florida. Sarasota County – the only other county that was defying their voter-approved term limits law – accepted the Supreme Court decision and is now enforcing their popular 8-year term limits.

And yet, the Pinellas county commissioners continue to claim the law does not apply to them. The commissioners do not believe this is true. They simply want to keep their well-paid positions of power and are willing to brazenly defy the law – overwhelmingly approved by the people — in order to keep them.

In Pinellas County, 8-year term limits are currently in the charter. It was never amended to remove them. There is no court ruling that nullified the county commission term limits. On the contrary, there is now a Florida Supreme Court ruling explicitly affirming them.

It is not as if the voters are calling for their repeal. In 2009, a Quinnipiac poll showed that 79 percent of voters in the greater Bay area believe that their politicians should be term limited. Furthermore, the polling suggested that 78 percent prefer that the proper term limit is eight years and opposed longer limits.

Pinellas County commissioners should act honorably and obey the law. The four who have exceeded their legal term limit should resign before being forced to do so by the courts.

Former Small Business Owner Says “How Dare He!”

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Dennis Vest a retired Pennsylvania business owner who is living in Sarasota, Florida sent out the following in an email. It is reprinted with his permission:

How dare someone, even if he is President of the United States, tell small business owners they did not get where they are on their own. What did he ever do to enhance our economy before he became President?

I worked 70-80 hours a week running my own business in an office complex I rented from another small business owner.

My 12 employees occupied the office. Each employee was paid above average salaries. When our client fees did not come in as scheduled the employees were paid first and I waited. I gave each employee three weeks vacation to start, set up a 401 k plan and paid their matching costs from my pocket, plus I paid each employee’s health insurance. I did this, not the government or Barrack Obama types. On top of this I paid very high taxes and had to match the social security and the workers comp costs for my employees. Unlike your Secretary of the Treasury I paid my taxes and so did my employees.

Except for $1,000, I paid for my daughter’s total college education. Her roommate, child of a single parent home, had her entire college paid for through needs-based grants. Some were state and federal needs based grants funded by the tax dollars from those fortunate enough to have a job—like my employees and me. The rest came from need-based grants from non-profit organizations like Rotary, Kiwanis and Jaycees. Those members are successful men and women who used their time and resources to raise money to help quality students who can not pay to attend college to obtain their higher education degrees. I often wonder where the students who get scholarships who funded their grant.. State and federal needs-based grants come from tax dollars and college funded scholarship grants from the institution’s general operating budget scholarship line item in the budget is partially funded from the funds parents who can pay all or something of the total cost and special scholarships from outside sources provided by alumni, friends, businesses, non-profit organizations and foundations. They are from tax dollars, tuition fees paid by those that do not qualify for scholarships (because they make too much money), and generous gifts from people who support the college with their donations.

I was away from my home and family two to four days a week working with clients. My clients were non-profit organizations. We raised money to help non-profits serve their clients and enhance and expand their programs. The money raised helped social service agencies expand their programs to serve more people in need. My also helped hospitals build new operating rooms, OBGYN birthing suites, expand emergency rooms areas and services and fund care for those who could not pay. Help to expand the work of local food banks, build new community libraries and to help colleges build new academic centers, dormitories and secure needed scholarship money to fund needs based scholarships and build and expand elementary and special needs schools set up to help single parent families and those on welfare was included in my fundraising.

The money we raised came from the generosity of individuals, businesses, corporations and foundations. Money was received from people who were fortunate to have jobs and earned their money. They were people who worked hard and helped others through their support. They earned it and shared it. This is the good old fashion American way—-remember that?

Now the Obama government wants to increase taxes on these people so they can spend it on foreign countries that do not like us, Chinese windmills, and electric cars from Findland. Companies that take government money and then declare bankruptcy, and federal judges who go on party retreats are all on the take. Other groups are government departments that go on annual fun retreats, and have retirement programs and healthcare plans of which the rest of us only dream about . The government wastes alot of our money and they are laughing behind our backs and calling us fools. We even pay for the President’s 160 trips across the nation and to fly his family to special vacations all on our funded tax dollars.

When the President has his way these hard working, tax paying and job creating people will be taxed at higher rates—–the non-profits will lose their donor base at the worst or at best face decreased giving. The President and his Senate “do nothings” will fund their projects and the people who get support from non-profit organizations will find themselves with less or nothing. The alleged”haves” will forced to increase their support of the government and those in need in the middle class or lower will get by on less. By the way Mr. President 50% of the people in the United States pay 90% of the taxes and 10% of the people pay over two thirds of the 90% (plus 46% of the people in the United States pay no taxes)—- so it does not take a rocket scientist to figure out who built most of the roads I used to get to work.

Don’t ever tell me that this small business owner did not get there through his own hard work and determination. If my business failed, it would have cost me my home and savings. I risked it all. If the companies you gave millions to failed they would just write it off and move on leaving us “bad citizens” holding the bag on your behalf. Also, do not tell us that small businesses do not impact our economy and the people in need in their communities and our country. We need to win back our amazing country and not strive to be like Europe. Mr. President you are polarizing this nation as it has never been polarized before by saying the rich and those who are comfortable are evil and have too much.

Now is the time for those of us who are working to keep America great and helping people have jobs (they pay taxes) to speak our with no apologies. We need to stand up right now and say enough is enough. Give us our country back and do not make it a European model.

PODCAST: AFP’s Abigail MacIver Talks about FIVE for Florida Plan

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Abigail MacIver

Abigail MacIver, Director of Policy & External Affairs – Florida at Americans for Prosperity, joins Watchdog Wire Radio to explain the FIVE for Florida policy platform that offers real solutions for a better Florida.

The plan outlines five key issues that elected officials can address now to encourage free market principles and government accountability, in order to make Florida number one for families, businesses and entrepreneurs. A growing number of Florida legislators and candidates have signed up as endorsing the plan. The list may be found by clicking here.

Listen to Abigail MacIver explain each of the five policy initiatives proposed by AFP-Florida.

According to the FIVE for Florida website:

“Floridians want elected officials who will speak honestly with them about our problems and enact common sense solutions.

They want more transparency and accountability in their government and for government to stop making financial commitments that taxpayers cannot afford; they want to eliminate the cronyism in our political system and for politicians to stop picking winners and losers in the marketplace; they want to reduce over-burdensome regulations and remove needless or protectionist barriers to entry for entrepreneurs and job creators; and they want an education system that gives them options and a real choice for their children.

ONE: Reform Taxes & End Corporate Welfare

TWO: Don’t Make Financial Promises Taxpayers Can’t Keep

THREE: Be Steward of Good, Transparent Government

FOUR: Empower Kids With the Best Education

FIVE: Free Entreprenuers to Pursue the American Dream

Five for Florida outlines the key issues facing our state and proposes the real solutions that citizens and elected officials can support that will ensure Florida is the best state in the nation, both now and for our future generations.”

The War for the Veteran Vote in Florida

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Florida is home to 1.6 million veterans, which is the second largest concentration of veterans in the U.S. after California. As a percentage of population Florida ranks number one.

In December 2008 ABC reported on how the veteran vote impacted the election of then Presidential candidate Barack Obama. Remembering that John McCain is a veteran the ABC column titled “The Veteran Vote – an Update” noted, “But the biggest surprise is for anyone who assumed a major tilt toward the Republican Party among veterans. Thirty-five percent of veterans voting in 2008 identified themselves as Democrats, 34 percent as Republicans (the rest were independents). That’s a striking change from 2004: Republican allegiance among veterans dropped from 41 percent then to 34 percent this year [2008]. Democrats gained 4 points, independents 3. What had been a 10-point Republican advantage over Democrats among veterans vanished.”

The war for the veterans in Florida is on with two groups vying for this coveted vote. In 2008 veterans nationally accounted for 14% of the total votes cast. Veterans do vote.

The two groups are Vote Vets and Concerned Veterans for America. Each is after the veteran vote in Florida, a key battle ground state and must win for both parties. The issues of concern by these organizations are as different as night from day. Vote Vets is linked to and supported by the Service Employees International Union (SEIU). The Vote Vets website states, “While non-partisan, the group is the largest progressive organization of veterans in America.” Their primary focus during the 2012 election is to increase the minimum wage from the current $7.50 an hour to $10.00. Veterans benefits and military salaries are not tied to the minimum wage. Both are determined by Congress, which uses various metrics to determine increases or changes to co-payments for medical care, as an example.

Jeff Jacoby in his Boston Globe column “Minimum-wage laws are costly for the unemployed” reports on efforts by Democrat Senator Tom Harkin to raise the minimum wage. According to Mr. Jacoby, “Congress enacted the first federal minimum wage in 1938. A provision of the Fair Labor Standards Act, it covered about 6 million workers and set a wage floor of 25 cents per hour. It also cost a lot people their jobs. The Labor Department reported that as many as 50,000 employees, mostly poor Southern blacks, were thrown out of work within two weeks of the law’s taking effect. In the months that followed, the carnage spread. ‘African Americans in the tobacco industry were particularly hard hit,’ wrote David Bernstein in his 2001 history of labor regulations and black employment. ‘In Wilson, N.C., for example, machines replaced two thousand African American tobacco stemmers in 1939.'” [Emphasis mine]

Mr. Jacoby provides the below chart in his column showing a nexus between raises in the minimum wage and rise in black teenage unemployment from 2002 to 2010.

Mr. Jacoby states, “Minimum-wage laws are typically thought of as a mandate on employers. In reality they constrain employees. As it stands now, the federal wage law tells workers that unless they can find a company willing to pay them at least $7.25 an hour, they can’t get a job. That may not seem like much of a barrier to [Iowa Democrat Senator Tom] Harkin, one of Congress’s wealthiest members, but it might as well be the Berlin Wall to an unskilled teen or young adult with no high-school diploma or employment history whose labor is only worth, say, $5.50 an hour. No matter how much that person might leap at the chance to work for what he’s worth, the minimum wage forbids it. Should Harkin’s bill become law, life will become even harder for those seeking entry-level employment.” [Emphasis mine]

Raising the minimum wage may harm Iraq and Afghanistan war veterans. According to David Lerman from Bloomberg, “The unemployment rate for U.S. veterans who’ve served during the wars in Iraq and Afghanistan increased last year, while the rate for non-veterans declined, the Labor Department reported yesterday. The jobless rate for veterans who were in service following the Sept. 11, 2001, attacks was 12.1 percent last year, up from 11.5 percent in 2010, the department’s data show. Among all non- veterans, 8.7 percent were jobless last year, down from 9.4 percent in 2010.”

While harmful to veterans seeking jobs, raising the minimum wage does get out the vote.

The discredited group ACORN successfully used the minimum wage issue in Florida in 2004. “In Red State Florida, Victory for Working People” John Atlas reported, “The decision for ACORN, which has chapters in 28 states, to invest heavily in a Florida campaign [to raise the minimum wage] was not made in haste. The group commissioned a statewide poll in November 2003 that found overwhelming support for increasing the state’s minimum wage, especially among low-income and minority residents … ACORN was betting that many low-income people, who might not otherwise register or vote, would do so to increase their pay, and once they went to the polls, they would vote overwhelmingly for a Democrat.” [Emphasis mine]

Mr. Atlas noted, “ACORN budgeted over $2 million for the campaign. In addition to a team of strategists, pollsters, fundraisers and a full-time coalition coordinator, the group deployed a field staff of 40 organizers, up to 60 canvassers, and over 2,000 volunteers. The field staff gathered signatures, registered 122,000 voters and implemented a get-out-the-vote plan that resulted in a net increase in turnout of 68,000 new voters in November. The campaign roused the interest of wealthy progressive donors, major Democratic party players, unions and well-financed anti-Bush groups smitten by the notion that helping the poor was not only an end in itself, but a way to dump Bush.” [Emphasis mine]

The same strategy is playing out today by Vote Vets and the SEIU in Florida. The added twist is this”veterans advocacy” organization with deep community organizing roots may actually harm veterans with its campaign to raise the minimum wage.

Mr Jacoby warns, “With the best intentions in the world, lawmakers cannot raise the value of anyone’s labor to $9.80 an hour (or $7.25 an hour, or even 25 cents an hour) merely by passing a law. Making it more expensive to hire workers who are just starting out doesn’t advance beginners’ prospects; it worsens them. Decades of economic research and empirical studies confirm what common sense should tell anybody: Boost the minimum wage beyond what low-skilled workers are worth, and more low-skilled workers will be priced out of a job.”

Florida Implements Tough Anti-Terrorism Funding Bill

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Flying below the media radar screen was an event on July 11, 2012 at which Governor Rick Scott signed legislation to keep state-chartered financial institutions from being pipelines for money supporting terrorism.

Governor Scott joined leaders of Florida’s Jewish community in standing against Iran’s development of weapons of mass destruction. Governor Rick Scott joined leaders of Florida’s Jewish community at the Jewish Federation of South Palm Beach County to ceremonially sign Senate Bill 792, Financial Institutions. The legislation gives the Office of Financial Regulation (OFR) the authority to require Florida’s state-chartered financial institutions to report information on any accounts that have connections with a foreign financial institution knowingly supporting international terrorism.

“Florida and Israel have strong cultural and economic ties, and as the only stable democracy in the Middle East, Florida must stand with Israel and against her enemies,” Governor Scott said. “One of Israel’s greatest threats is Iran and its leader’s insistence on developing nuclear capabilities and weapons of mass destruction. “We have a responsibility to stand for freedom and democracy and against terrorism.”

SB 792 creates new reporting requirements. OFR will be notified by Florida financial institutions whether any correspondent accounts or payable-through accounts with a foreign financial institution are knowingly:

· Facilitating the efforts of the Iranian government to develop weapons of mass destruction.

· Providing support to a foreign terrorist organization.

· Facilitating the activities of a person who is subject to financial sanctions by the United Nations Security Council’s Iranian sanction resolutions.

· Engaging in related money laundering activity.

· Facilitating efforts by Iranian financial institutions to carry out prohibited activities.

· Facilitating a significant transaction or providing significant financial services to an entity whose property interests are blocked pursuant to federal law associated with Iran’s proliferation of weapons of mass destruction or support for international terrorism.

To implement this legislation, OFR will submit an annual report to the Governor and the Legislature. Any state-chartered bank or credit union that does not provide information may face a penalty of $100,000. OFR will present information about the reporting process to the Governor and Cabinet at an upcoming meeting. Governor Scott thanked Senator Don Gaetz for sponsoring SB 792.

PODCAST: How Government Is Killing Businesses In FL

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Allen Fugler, Executive Vice President Florida Pest Management Association in Orlando, FL and Tim Southerland from Southern Wood Producers Association and the American Loggers Council – Florida in Panama City, FL join Watchdog Wire Radio. Mr. Fugler and Mr. Southerland explain how government at every level is destroying small businesses in Florida and across America. Today it appears the business of government is to destroy small businesses according to Mr. Fugler and Mr. Southerland. Over regulation is keeping Florida small businesses from expanding and growing.

Listen to the podcast of this show and learn how government at every level is putting small businesses out of business from these two industry experts.

LISTEN TO THE PODCAST INTERVIEW BY CLICKING HERE

The next four years could bring a tidal wave of more than 4,100 regulations for the American economy. Regulations in the pipeline are estimated to cost the economy more than half a trillion dollars. To view a sampling of regulations, that will cost the economy $515 billion, click here.

Small Businesses for Sensible Regulations launched a nine-state campaign to raise awareness on the several thousand regulations that could go into effect if President Barack Obama is reelected. To learn more about the Small Businesses for Sensible Regulation coalition go to – http://stopthetidalwave.org.

Sarasota County’s Bait and Switch

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Citizens of Sarasota County in March 1999 approved and via taxes funds the Environmentally Sensitive Lands Protection Program (ESLPP) and Neighborhood Parkland Acquisition Program, which are designed to acquire and protect natural lands and park lands. Citizens are now questioning county staff efforts to transfer development rights (TDRs) from these publicly owned lands to selected developers. You may read a Cornell University history of Transfer Development Rights programs by going here.

Cathy Antunes, President of Sarasota Citizens for Responsible Government, in an email states, “A TDR means Transfer of Development Right. One TDR equals the right to build one dwelling. The County has purchased land for preservation, and some of the County lands set aside for preservation could have been used to build housing. Those preserved lands each have a TDR value.”

Private landownership was and remains one of the first measures of citizenship in the United States. The passion to protect the right of property owners to reap economic gain from their land still burns strongly today. However, is the selling of public land TDRs a government bait and switch?

Accoring to Ms. Antunes, “County staff is advocating that the development rights, or TDRs, for preserved County land be sold to developers so they can increase the dwelling density of their projects. For instance, a developer could pay the County for 1000 TDRs and then build 1000 extra dwellings in the same space where before only 350 dwellings would be allowed. The purchase of 1000 TDRs transfers the right to build 1000 dwellings from County owned preserved land to a different site belonging to the new owner of the TDRs. At this point in time the County does not have an accurate inventory of publicly owned TDRs, nor do they have a reliable method of valuing what a TDR is worth.”

“Regarding County TDR value, so far only one TDR appraisal exists, created by an appraiser that has completed at least one problematic appraisal for Sarasota in the past. That was the Payne Park (3 lot) appraisal done in 2008, which inflated the purchase price of land bought by the City of Sarasota by 2 million dollars. The appraiser valued 3 separate lots along 301 (adjacent to Payne Park) as if they were already one assembled parcel, instead of individually. The result was a 2 million dollar value inflation and gouging of Sarasota City taxpayers. Ouch! Should the County be relying on that same appraiser to be telling them what a TDR is worth? The methodology used to value a County TDR warrants careful scrutiny. At least two more appraisals should be sought,” states Ms. Antunes.

During a radio interview Kathy Bolam characterize the sale of public land TDRs as “Sarasota County’s form of Cap and Trade”. The county is selling something that belongs to the public for a price that it determines outside of the real-estate open market system. Beth Colvin, in an email exchange with Ms. Antunes, states, “Land taken by the govt stops bringing in property taxes and then the rest of us must subsidize the taxes because gov’t has no money other than ours.  If the land can be developed by the government it surely can be developed by private enterprise.”

Ms. Antunes raises a question dealing with the ethical behavior of Mr. Roland Piccone, member of the County Planning Commission.

Ms. Antunes notes, “Now for the ethical question. A development company – Lindvest – would like to purchase 1000 TDRs from the County so that a 350 dwelling project can become a 1350 dwelling project.  A managing partner of Lindvest is also a sitting Sarasota County Planning Commissioner.  That Planning Commissioner is lobbying the County Commission to allow the sale of 1000 TDRs to Lindvest, so they can increase a 350 unit project to a 1350 unit project.  The Planning Commissioner, Mr. Roland Piccone, is “overseeing the planning and development of the project” (quote from the Herald Tribune).  An obvious ethical question arises:  Does the County Ethics Policy allow a sitting planning commissioner to lobby the County Commission on behalf of his employer or company that he/she has an interest in?   Still waiting for clarification from the County regarding the ethics question.”

Sarasota County Charter Review Board Races Heat Up

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Sarasota is one of twenty home rule or charter counties in Florida. The County Charter is not unlike a local form of  the U.S. Constitution. The County Charter establishes how the county is governed and may be amended. All proposed amendments to the County Charter must pass through the Sarasota County Charter Review Board (CRB).

According to the Sarasota County website, ” The Charter Review Board reviews and recommends changes to the Sarasota County Charter for improvement of County government on behalf of the citizens of Sarasota County. These recommendations are subject to referendum in accordance with the provisions of Article VI of the Charter. An affirmative vote of two-thirds of the Charter Review Board members is required to recommend amendments for referendum.”

A charter amendment may be proposed by a citizen, the Charter Review Board or the Board of County Commission.

Five of the ten CRB seats are up for election in 2012. According to the Sarasota County Supervisor of Election website the following candidate have qualified to run:

Charter Review Board, District 1 Paul A. Cajka Sr. (REP)
Charter Review Board, District 1 H. Ross Gustafson (REP)
Charter Review Board, District 1 Anthony “Tony” Sawyer (REP)
Charter Review Board, District 2 Donna Barcomb (REP)
Charter Review Board, District 2 Marie Nisco (REP)
Charter Review Board, District 2 Alexandra Coe (LIB)
Charter Review Board, District 3 Fred Tower III (REP)
Charter Review Board, District 3 Pat Wayman (REP)
Charter Review Board, District 4 Mark Hawkins (REP)
Charter Review Board, District 4 Tom Trevor (REP)
Charter Review Board, District 5 John J. Fellin (REP)
Charter Review Board, District 5 John Scolaro (REP)
Charter Review Board, District 5 Kevin T. Connelly (NPA)

Eleven of the thirteen candidates running for Charter Review Board are Republicans. The composition of the CRB could dramatically change in 2012. There has been a string of emails from supporters of the Republican candidates running for the CRB that break down into two camps – the Republican old guard and new Republican conservatives’ favorites.

The Republican old guard candidates are: District #1 Anthony “Tony” Sawyer (R)  (past member of the Sarasota County Board of Zoning Appeals and past president of the Meadows HO Association); District #2 Donna Barcomb (R) (past (12 yr) member of the Sarasota Memorial Hospital Board); District #3 Fred Tower (R) (Past (8 yr) North Port City Commissioner); District #4 Mark Hawkins (R) (Member of Home Builders Assoc, Gulf Coast Builders Exchange and past candidate for Sarasota County Commission) and District #5 John Fellin (R)(past member (12+ yr) and Chairman of the Sarasota County Planning Commission). All of these old guard candidates have long term political records on County boards or local political positions. These candidates are supported by political operatives and four of the Sarasota County Commissioners.

An email supporting the old guard candidates, signed by Cathy Layton, Jud Boedecker, Frank Moore, Joe Barbetta, Christine Robinson, Carolyn Mason, Nora Patterson, Karen Rushing, Bill Furst, Caroline Zucker, Jane Goodwyn, Mollie Cardamone and Bob Waechter, states:

“The Sarasota County Charter Review Board (CRB) is the ONLY elected charter review board in the entire state. The only one. Its sole stated function in the Charter (Article II, Sec 2.8B) is to “review and recommend changes to the County Charter for improvement of County government”.

In most other jurisdictions a CRB is convened on an ‘as needed’ or ‘when needed’ basis. It was never intended to be an activist board nor was it envisioned as a vehicle to move forward the specific agendas of splinter groups. Yet this is exactly what is being attempted, the stacking of the CRB with a majority sympathetic to particular agendas.”

The new faces running for the CRB are: District 1 Paul A. Cajka Sr. (REP); District 1 H. Ross Gustafson (REP); District 2 Marie Nisco (REP); District 3 Pat Wayman (REP); District 4 Tom Trevor (REP); and District 5 John Scolaro (REP). All of these candidates are new to the political process and not career politicians.

The email from the old guard states, “[A] concerted effort by agenda-driven groups to load up the Charter Review Board in 2012 with the goal of placing in the county charter items that more properly belong in ordinances. Their aim is to do an end run around the elected County Commissioners in determining how Sarasota County is governed.” The agenda driven groups are not identified, however, some of the new Republican faces come from TEA Party and 912 affiliated groups in the county.

There is a process that allows for proposed amendments to be vetted by the CRB. Every proposed amendment has an agenda. Recently the Sarasota County Commissioners tried “to do an end run” around the people on term limits. In 1998 a charter amendment was overwhelmingly passed by the citizens to limit county commissioners to two four year terms. That amendment was challenged in a local court, by Frank Moore one of the old guard signatories, and overturned. However, in 2012 the Florida Supreme Court found term limits for county commissioners constitutional and this has caused Jon Thaxton to not seek re-election. Christine Robinson, Carolyn Mason and Nora Patterson were in favor of amending the amendment by changing the verbiage making the term limit not retroactive. This would have allowed Thaxton to run for his fourth term. This “end run” around the citizens was championed by Christine Robinson, Carolyn Mason and Nora Patterson, all of whom co-signed the old guard letter.

Kathy Bolam, former candidate for the CRB, in an email reply to Mr. Waechter notes he too has an agenda. Mrs. Bolam states, “Today, you are alerting the public to THE MOST IMPORTANT RACE IN SARASOTA COUNTY yet a few years back you went before the Charter Review Board with an Amendment to change the Charter Review Board Members to appointed rather than elected.  Fortunately for the citizens of Sarasota county, your efforts were thwarted.” Mrs. Bolam sent two letters addressing this issue and they may be read here and here.

The idea of a charter is to allow the people to determine how they are governed. The charter gives the people the power to determine if they will be governed by a Board of County Commission, as it does now, or change that to another form of government. A number of citizen proposed amendments to limit government and government spending have been brought before the CRB in the past year. None have moved to the ballot and some have died without even going to committee for review. This has led ordinary citizens to run for the CRB.

The battle lines are now drawn between the Republican old guard and the New Republican party supported by TEA Party activists. The race is heating up.

Pensions, Sick Leave & Vacation Days Bankrupting FL

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Slade O’Brien, Director of Americans for Prosperity – Florida, was in Sarasota to present the “Five For Florida” plan to over 200 activists. According to their website, “Five For Florida is a policy plan that outlines five key issues that elected officials can address that will make Florida more economically competitive and government more transparent and accountable.”

Five For Florida is a policy platform that offers real solutions for a better Florida. The plan outlines five key issues that elected officials can address now to encourage free market principles and government accountability, in order to make Florida number one for families, businesses and entrepreneurs. The five key issues are:

ONE: Reform Taxes & End Corporate Welfare

TWO: Don’t Make Financial Promises Taxpayers Can’t Keep

THREE: Be Steward of Good, Transparent Government

FOUR: Empower Kids With the Best Education

FIVE: Free Entreprenuers to Pursue the American Dream

Issue TWO requires that all new state and local government employees be enrolled in 401(k)-style, defined contribution retirement plans. According to the Five For Florida website, “Our politicians must stop making promises that taxpayers can’t afford. We must force them to be honest with us, and make decisions that will protect us now and in the future. We need an honest, transparent retirement plan that works for both hardworking taxpayers and government workers, and we need a property insurance system that will protect our homes without jeopardizing our future financial security.”

Five For Florida presents the following facts:

  • Florida’s Retirement System (FRS) serves more than 1 million government employees, making it the fourth largest public pension program in the country. Source: James Madison Institute
  • The FRS is 88% funded, assuming a 7.75% return on investment. Over the last 12 years, the fund has received an average return of 3.3%. Source: James Madison Institute
  • Florida currently has an optional defined contribution plan, however only 16% of employees elect to be enrolled in it, versus the 84% in the pension plan. Source: James Madison Institute
  • Public sector pension programs guarantee a rate of return that is 3 to 4 times higher than what private sector workers are able to earn. Source: The Heritage Foundation
  • The State of Florida currently contributes $5.5 billion per year to the FRS, but would need to double that contribution to $11 billion a year for the fund to remain solvent. Source: James Madison Institute

Adding to the promises that add to the taxpayers burden is allowing public employees to roll over sick leave and vacation days. According to Brittany Alana Davis’s Tampa Bay Times article “Unused sick days make a nice parting gift for state workers” reports:

“In the budget year that ended June 30 [2012], the state paid out $51.7 million in sick and annual leave to state workers, even as it slashed funds for higher education and public school maintenance. About 28,000 employees left the state during that period.

The figure — which does not include state university and college employees — is only expected to climb as boomers retire. Critics say the system is out of line with the private sector, where few businesses allow employees to roll over their sick days or obtain cash payouts. Most private businesses will not pay employees for more than a few weeks of leave time, and will not pay for unused sick days.”

Davis noted in her article, “Another problem: The state can rarely revoke accrued time, even for those who leave in disgrace.”

Slade O’Brien will be interviewed on Watchdog Wire Radio WWPR AM 1490 Monday, July 16, 2012 from 11:00 to Noon EST. To listen to the live stream over the internet go to this link.

Gov. Scott: Raising the Public Education Bar Works

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Governor Rick Scott issued a statement today on Florida Comprehensive Assessment Test grades for Elementary and Middle Schools. Test standards were raised by the Florida legislature and student grades fell significantly.

Commissioner of Education Gerard Robinson said in announcing the school grades, “This has been a year of tremendous change for Florida’s students, teachers and schools. The high standards we have in place today will help our students prepare for college, the workforce and life.” Robinson added that he was “confident we are on the right path.”

Governor Scott noted, “Florida is raising education standards because we know from past experience that students and teachers consistently rise to occasion when challenged. In just two years, Florida will move to a new testing standard that significantly reduces our reliance on the FCAT and moves to Common Core State Standards. This new system will allow us to compare our students with those in other states so that we can benchmark results, measure progress, and adjust curriculum to better prepare students for college and the workforce, so that they are better able to compete in the global marketplace.”

Governor Scott states, “As part of our ongoing accountability efforts, we’re constantly reviewing the level of and kinds of testing occurring in our classrooms. Our goal is to make sure we’re not testing for testing’s sake, but working to ensure our students are prepared for college and the workforce. Common Core assessments are an example of that kind of tool.”

“It is never easy to raise the standards for excellence in education. This year is no exception. But every time we raise the expectations of our students and teachers, they ultimately get better in later years. Simply put, raising the bar works,” Governor Scott said.

The Florida Board of Education voted to lower the school passing scores for the 2012 tests. This led to many saying lowering of the public education bar is harmful to future student achievement. According to Dave Weber of the Orlando Sentinel:

“Statewide, 46 elementary and middle schools earned Fs, compared to 32 last year, and 238 earned Ds, more than doubling last year’s 117. The totals of As, Bs and Cs slipped, too, with A schools showing a marked slip from 1,480 statewide last year to 1,112 this year.

To cushion the blow, the State Board of Education agreed several months ago that no school would be dropped more than one letter grade from last year’s score, regardless of how its students performed. That likely has saved some schools from slipping to Ds or Fs.”

Rubio Condemns Obama’s Failure To Recognize Hugo Chavez’s Threat To U.S. National Security

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U.S. Senator Marco Rubio (R-FL) issued the following statement regarding President Obama’s assessment that Venezuela’s Hugo Chavez does not pose a serious national security threat to the U.S.:

“It’s now disturbingly clear that President Obama has been living under a rock when it comes to recognizing the national security threat posed by Venezuela’s Hugo Chavez.

“Hugo Chavez is not only a threat to the Venezuelan people’s freedom and democratic aspirations, he has also supported Iran’s regime in its attempts to expand its intelligence network throughout the hemisphere, facilitated money laundering activities that finance state sponsors of terrorism and provided a safe haven for FARC narco-terrorists, among many other actions. Just yesterday, the Wall Street Journal detailed how Hugo Chavez circumvents U.S. and EU sanctions to help prop up the Assad regime in Syria. And even Obama’s own State Department belatedly but rightly expelled Chavez’s consul general in Miami for her ties to a plan to wage cyber-attacks on the U.S.

“President Obama continues to display an alarmingly naïve understanding of the challenges and opportunities we face in the Western Hemisphere.”

In an interview that aired last night on Miami’s Channel 41, President Obama said, “We’re always concerned about Iran engaging in destabilizing activity around the globe. But overall my sense is that what Mr. Chávez has done over the last several years has not had a serious national security impact on us.”