On Tuesday afternoons, I attend two Senate committees back-to-back: Transportation and Local Government and Taxation. Rarely do they connect like yesterday. First up was the standard annual report from the Idaho Transportation Department. A notable highlight was a series of cost-saving measures which will save $50 million of taxpayer dollars over the next five years. After the Governor challenged the ITD Board to show it had done everything it could to be efficient, ITD staff put out the word to employees at all levels, and they produced some very good ideas.
One employee, a welder, designed a bumper system to save wear and tear on snowplows. Another idea that makes good common sense: sealcoating only the traveled lanes of roadways and not the shoulders (which really don’t need it) saves significantly on material costs. The Associated General Contractors (AGC) is also involved, helping the agency find efficiencies in construction testing and inspection. The report reads like a case study in good management and if you want the details you can access it at: http://itd.idaho.gov/info/efficiencyreport/Efficiency_Report.pdf
Moments later, in the Local Government and Taxation Committee we heard from Keith Allred from the grassroots policy group The Common Interest who presented that organization’s policy findings and priorities for 2008 and one of his Powerpoint slides really got my attention. It showed that the profit levels for the management contracts for GARVEE (the “Connecting Idaho” highway construction program) are 13.3% for satisfactory performance, 17.3% for superior performance, and 9.3% for inferior performance. These profit levels were established through negotiations between the Kempthorne administration and the companies (WGI and CH2M Hill.) By comparison, negotiated profit levels for regulated utilities in Idaho are 7% to 8%. In the commercial construction business, where risks are much higher, builders commonly make 8 to 10% profit. (On non-speculative contracts, sometimes as little as 4%.) According to Allred, the Exxon/Mobil Corporation is currently being criticized for making excessive profits amounting to 10%.
I do not know, as of this writing, whether there are some unknown risks or other unknowns that would warrant these relatively high profit margins on a public works project, and Allred told the committee that he would return with any explanation that the ITD and the companies might offer. (I will post any pertinent info here as I get it.) But on its face, this information prompts me to wonder whether the Governor has made the same request of these two companies that he asked of ITD. (The contracts are currently being negotiated.) In showing us how the old phrase “make government run like a business” sometimes can work, the employees at ITD have set a good example. And as the new GARVEE contracts are negotiated, their success may also prompt the Governor’s office to ask if the managing businesses might be run a little bit more like the government.
Sen. David Langhorst
Idaho Legislature
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9.3% For Inferior Performance?
Why did a GOP administration that is always barking about cost effectiveness and taxpayers hard earned dollars give a contract that gives a 9.3% profitfor an inferior product? The contractor should not get a dime more than break even. So much for GOP fiscal responsibility. Their hypocracy is appalling.
Aside from those percentages
How does one measure inferior, satisfactory and superior?
I have assumed the expedient thing to do was contract out the design and NEPA work on the road projects so that ITD could avoid going through a hiring binge on the bonded projects, but those profit margins make me wonder if the taxpayers are getting a fair deal.
No.
Running government like a BUSINESS has been bad enough. Somewhere the mediocre medium must be massively missed.
Absolutely not.
That's part of the problem.
Running the country like a business
has been suggested for years, unfortunately the only ones who did it were campaign contrubitors. If I could contribute $5K to the GOP & $5K to the Dems., my horse couldn't lose & I'd & get $100K back, I'd be all in. Texas Hold Em up politics.
I have put out some ideas lately, one about a mass transit for government employees.
I suggested bussing but a guy by the name of Michael Hummel had a better idea in an editorial, the old Oregon Short Line between Caldwell & Boise. He never mentioned government but it seems to me with all the government employess we have it's a logical place to start. How many government employees do we have driving into Boise five days a week? Have city, county, state, & federal shuttles waiting. It wouldn't be like individuals going in all different direction when they get off the train.
I also made a suggestion that I'm sure won't go over. Having government offices open weekends, employees work Saturdays & sundays with city/county taking Thursdays/Fridays off & state/federal taking Mondays/Tuesdays off. I realize people aren't going to go for it but consider the traffice relief, less gridlock/pollution. There comes a time when people have to make sacrifices to offset the damage we've allowed by not putting a leach on government. We know they're failing, are we going to allow it to continue?
People have ideas, not just ideas on new bumpers. I have an idea that might save $150 billion & offer a stimulus to get US out of the possibility of recession.
If Bush were to resign & I'd be so stimulated I'd throw a party, spend some $, & I bet a lot of other people would too!
What better way to avoid a recession than to have a party?
I guess I missed something
I've run businesses in Idaho for about 30 years, what point are you trying to make?
Anytime you want to talk about gross inefficiences in Idaho government spending, let me know. I've been complaining to a stone deaf governors office and legislature for years.
Idaho rapidly approaching a day of economic reckoning
David, you guys need to concentrate on seminal changes, not marginal ones. We have long since passed the point where mere marginal changes will do any good.
Agree
I couldn't agree more. We continually tinker at the edges of problems rather than attacking them at the root. It's a major failure of our two-party system and a legislature that worries about things like how to refer to the other body and the Governor. Pehaps we should just call him the Governor and move on with things.
Can you imagine the recession...
if business was run like government.
Yes, but I don't have to!
It was called the Great Depression and thereafter depressions have been called RECESSIONS and on top of that they play chicken and claim we won't know for 6 months if we're in one.
By god, they knew it immediately in '29 and they didn't have television, computers and the internet to tell them.
Contract management
The last time I saw numbers, the average state contract received about 6 hours per year (that's right, per year) of attention from a contract manager. That is, each manager was responsible for around 300 contracts. The standard recommended by contract management profesional organizations is three to four contracts per manager. This is what "less government" has come to mean for the past several administrsations. There is likely even more going on in these contracts than inflated nominal profit margins. And it occurs to me to wonder what percentage of contracts are rated superior in performance, and what percentage inferior?
I'm glad to see your attention on this very unsexy subject, and very impressed with your blogging. So far, very good.
Interesting editorial by Don Hiatt
in the 2-3-08 Statesman, Property owners keep pressure on.
Don points out the fact that legislators talk about reductions & now that property values have dropped there are no reductions.
When I read his editorial it made me think we've been robbed. Just because a house is assessed by government & taxed at the rate government determines doesn't mean you could sell it at the assessed amount. Now that values have dropped were properties really worth the $ amount you were taxed at?
Did government pull a bait & switch? After promoting the growth & delevopment they already have your money & now you're still paying taxes on an over assessed value. Will you get a refund if you get an appraisal & it doesn't equal the $ amount you were taxed at? Where would the refunds come from? Or would it simply be an honest mistake, too bad? A sucker born every minute?
Is Don wrong for suggesting a reduction & would I be wrong for suggesting a refund? Now do I get a reduction & a refund?
Was it criminal to tax property values when the properties were never sold, only assessed by government? You pay more taxes than reality suggest the home is worth if you don't sell the home. For years the market continues to grow with prices inflated, always going up, taxes going along, & suddenly the value drops. You paid thousands of $ in taxes on property that isn't worth what government assessed it at. Taxes paid for roads & schools but you didn't have as much to spend on the economy. How does that play in to a recession?
Was the entire housing market, banking/citigroup, Fanny Mae & the rest, just a scam? The market had to drop at some point, it always does. Did governmnet over tax property owners knowing damn well the values would drop & get away with a crime? That was a lot of money paid in over the years when suddenly you can't sell your home at the assessed value.
It isn't a crime if government does it, it's legal. Ask any lawyer & they would tell you no reputable lawyer would consider a class action law suit involving something done within the law.
I'm sure someone will come on board with, "you could have sold it when the market was hot," or something along those lines. Where would you have lived? Why sell if you like your home & plan to stay somewhere? You would have to buy another property or rent. You were taken by government!
Funny how people enjoy the abuse & some even fight to pay taxes they shouldn't have to.
It might be time to start asking leagislators & the governor a few questions. How many millions would the state have to come up with to pay refunds & how much will the state lose when property owners have appraisals & demand reductions?
Maybe they would be interested in two percent from credit card interest spent in Idaho now? Representatives might be open to all kinds of ideas & suggestions that over taxed homeowners might have.
With another Presidential election in the works it might be a good time to suggest some ideas. It might be a good time for the people to have a lobby of their own to offset the 22 lobbyist per representatives the corporations evading taxes through campaign finance have in DC. I don't see Idaho's legislators repealing any tax cuts that they have been handing out to busineses & contributors while spending the taxes they brought in from your over assessed homes. As individuals we absorb taxes evaded through campaign finance. Our representation is bought & we pay to lose.
www.nextrveolution.net
a lobby for the people. Hundreds of thousands of people or even one million people together on one site would have more influence than the same number of people calling their representatives individually, with no contributions or vacation to offer. To say, Scotland to play golf.
Can't wait to hear the negatives.
As always...
Assessment, expectations and final value have no correlation whatsoever in real estate.
If socialism really worked that well I could ask $16,856.88 for a spoiled toothbrush and $900 for shipping like they do on eBay and I'd GET IT.
Why do you think our elected officals can't
come up with the money to run schools without raising property taxes? Take public away from public education & you have social education. If government hadn't stolen $ from Social Security it would be in great shape too. Social programs aren't the problem, government is!
Didn't the farmers buy all their school stuff...
back in the daze when work was hard and folks were grizzled and toothless?
What difference does it make where they learn how to open my bike lock if they do learn locksmithing? The problem is that even poor Miss Beadle on Little House got better treatment than the English teacher at Nampa High may when they are through with this nonsense.
It's still a real job, not slavery or baseball.
Maybe Senator Langhorst should look into the cost of prisons,
health care, & illegal immigration & the problems it creates. Maybe all our representatives need a wake up call. I hate to disturb their peaceful sleep filled nights full of dreams of golf in Scotland & while sound alseep matresses stuffed with campaign contributions.
The following is from an email I received & I have not investigated the facts. Do these numbers surprise me? No. Is Idaho on the same path as California? You decide.
This will open your eyes!
This is only one state. If this doesn't open your eyes, nothing will!
From the L. A. Times
1.42% of all workers in L. A.County ( L. A. County has 10.2 million people) are working for cash and not paying taxes. This is be cause they are predominantly illegal immigrants working without a green card.
2. 96% of warrants for murder in Los Angeles are for illegal aliens.
3. 78% of people on the most wanted list in Los Angeles are illegal aliens.
4. Over 2/3 of all births in Los Angeles County are to illegal alien Mexicans on Medi-Cal , whose births were paid for by taxpayers.
5. Nearly 40% of all inmates in California detention centers are Mexican nationals here illegally.
6. Over 350,000 illegal aliens in Los Angeles County are living in garages.
7. The FBI reports half of all gang members in Los Angeles are most likely illegal aliens from south of the border.
8. Nearly 70% of all occupants of HUD properties are illegal.
9. 21 radio stations in L. A. are Spanish speaking.
10. In L. A. County 5.1 million people speak English, 4.3 million speak Spanish.
(There are 10.2 million people in L. A. County . )
(All 10 of the above are from the Los Angeles Times)
Less than 2% of illegal aliens are picking our crops, but 37% are on welfare.
Over 73% of the United States' annual population growth (and over 90% of California , Florida , and New York )results from immigration.
34% of inmates in federal prisons are illegal aliens.
We are a bunch of fools for letting this continue. When will our Goverment take responsibility and STOP this.
HOW CAN YOU HELP?
Still think we need more prisons or should I say $ to pay for them? How much did Otter & our other illustrious representatives take in campaign contributions from the corrections business? How much does your health inusrance cost. When I read the paper & our representatives blame the economy for not allowing raises for state employees it reminds me of the board of education spending money it didn't have.
Time to call somebody to the carpet? If we can get Gus & Woodrow away from their Lonesome Dove fantasy land & trophy wives, back to work for the State of Idaho we might not get to the point California is. Won't do any good to contact Bush, he no doubt has illegal immigrants cleaning his personal ranch on our tax $ because it's a job Americans won't do & they probably don't pay taxes.
I lived in a garage...
and Arthur Fonzarelli lived ABOVE one.
Are we gangbangers?
AYYYYYYYYYYYY?!?