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Bobby Jindal cuts Louisiana budget by 25%… and gets re-elected in landslide?

Gov. Bobby Jindal
Gov. Bobby Jindal

From the Philadelphia Inquirer.

Excerpt:

One gubernatorial election ended early this fall, when Louisiana Gov. Bobby Jindal won the state’s blanket primary Oct. 22. Under Louisiana’s system, all candidates of all parties are listed on the ballot, and if no one gets 50 percent, the top two finishers go to a runoff. Jindal blew past the threshold with 66 percent.

Jindal’s reelection was unusual in several respects. The only previous time the state has not had a runoff was his election in 2007. He is only the fourth Republican governor in the last 125 years in Louisiana, and one of those four switched over from the Democrats in office. Jindal’s best-known challenger this year was a schoolteacher, who raised less than 1 percent of the incumbent’s campaign treasury. The Democratic State Central Committee declined to endorse any candidate running on its party label.

But perhaps most unbelievable is that Jindal faced no serious competition after cutting state spending more than 25 percent. In January 2008, the state had a budget of $34.3 billion. This summer, Jindal signed into law a budget spending $25 billion. As governors from Harrisburg to Trenton to Columbus to Madison have learned, cutting a state’s budget is difficult enough; doing so without a significant backlash seems a politically impossible task.

A key part of Jindal’s story is recognizing that he took the helm of a state that had hit bottom: Decades of mismanagement and corruption had taken their toll even before Hurricane Katrina wreaked such devastation and exposed such colossal unresponsiveness in state government. The state, recognizing the bitter fruit of its traditions of colorful corruption, was ready to take a chance on a then-37-year-old Indian American congressman who speaks roughly 100 words per minute. The state was willing to try a new approach to governing; how much worse could it be?

Privatization played a big role in Jindal’s reinvention of state government, with private contractors taking over state-run operations for a lesser cost. The companies often hired the state workers who would often be the centerpiece of opponents’ criticism.

His administration privatized the state’s Office of Risk Management. Then the state’s Division of Administration privatized claims management and loss prevention in the self-insurance program, saving $20 million over five years. The Department of Health and Hospitals privatized six inpatient, residential-treatment programs around the state, saving $2.5 million. Separately, patients were moved from state-operated institutions that cost $600 or more per patient per day to community-based services and private group homes that average $191 per day, saving an additional $23.8 million.

Consolidation was another key element: The state’s Department of Revenue shrank from eight offices statewide to three. The Department of Children and Family Services consolidated its offices from 157 to 90, saving a total of $2.7 million.

But some of Jindal’s cuts are the old-fashioned kind. The state sold 1,300 vehicles from its fleet of automobiles. Louisiana’s Transportation Department shut down a ferry that was used by only 7,200 drivers per year, saving the state roughly three-quarters of a million dollars.

In fiscal 2011, Louisiana eliminated more than 3,500 full-time government positions. Add the 6,363 previous reductions during Jindal’s term, and that means a total of almost 9,900 full-time positions reduced since he took the oath, a savings of almost $600 million. Louisiana now has the lowest level of full-time state government employees in almost 20 years.

“You change people’s expectations and you make structural changes,” Jindal said, while racing around the state about three weeks before the election. “The most important is this cultural change, to say government is not the answer to everything. In a weird way, I want the office of governor to be less important than it is. What I mean by that is, there was an old joke that kids in Louisiana don’t grow up wanting to be president; they grow up wanting to be governor. You should want them to want to business leaders or doctors or teachers.”

Some cuts were more noticeable to the public, but Louisianans found shorter hours and workweeks at state facilities more palatable than complete shutdowns or higher taxes: Historic sites are now open five days a week instead of seven, pools at a half dozen state parks were closed on Mondays and Tuesdays this summer, and entrance stations at all state parks had shorter hours. Finally, 54,000 rank-and-file state workers are going without a raise for the second consecutive year.

Jindal’s first term was marked by several high-profile crises he successfully managed – Hurricane Gustav and the response to the BP oil spill, along with the Obama administration’s six-month moratorium on all drilling in the Gulf of Mexico – but the state’s economy has generally chugged along: Louisiana’s unemployment rate is 7.1 percent, two percentage points lower than the national average, and a comparably booming economy makes cuts in state spending much easier to take.

“If you have a good-paying job with benefits, you wouldn’t need the state to do so many things for you,” Jindal says. “You become less dependent, and that diminishes the role of the state and so you need fewer state employees, and it’s a virtuous cycle. You can lower taxes and lower government spending.”

Louisiana is a swing state. If Bobby Jindal can cut government spending in a swing state and get re-elected with 66% of the vote, then we do have hope that the American people will do the right thing. Maybe we just need to hit bottom with Obama so that we realize that competence does matter after all. We have a deep, deep bullpen for future elections. Governors like Scott Walker (Wisconsin), Rick Scott (Florida) and John Kasich (Ohio)would be excellent presidential candidates.  And of course we have Marco Rubio and soon-to-be senators Josh Mandel and Ted Cruz waiting in the wings.

Does the United Way give money to abortion-provider Planned Parenthood?

From Life News, a story showing how the United Way charity gave money to Planned Parenthood.

Excerpt:

Each fall, United Way focuses on fundraising campaigns. Most people encounter these requests for giving through their workplace. The United Way encourages individuals to donate to a variety of local charitable organizations or to the United Way itself. Each local United Way determines whom they will support through their grant programs and their lists of charitable organizations in the area. While most United Way organizations claim they do not fund programs for abortion services, in truth, some do support Planned Parenthood or other abortion-advocate agencies.

[…]Any finances being donated to Planned Parenthood (even if not specifically for abortion services) will free up more of their money to be used toward abortion services.

Some area United Ways, like New York City and Atlanta, provide grants to Planned Parenthood. The Dallas, Houston, and Austin United Ways do not give money directly to Planned Parenthood. However, Austin and Houston Planned Parenthoods do encourage donors to give money through the United Way’s workplace campaign. Many of the local United Ways also send volunteers to Planned Parenthood.

Nationally, the main United Way website (www.LiveUnited.org) also directs volunteers toward Planned Parenthood. Again, not every state or city agency promotes Planned Parenthood, but several do. One is too many.

If you are pro-life, you should not help the United Way in any way. They give money to people who perform abortions – even after those same groups got $363 million dollars in taxpayer subsidies, and paid their President Cecile Richards nearly $400,000 dollars. Planned Parenthood made a profit of $63 million in the most recent year for which records are available. There are plenty of other places to give your money to, like

Related posts on Planned Parenthood

What is issue 2? Should you vote no on Ohio issue 2?

In the 2010 mid-term elections, Republican John Kasich won the governorship and promised to balance the state’s budget by reining in the state’s spending on salaries and benefits for public sector union employees. To accomplish this, the Ohio legislature pass Senate Bill 5. However, an effort is on the ballot to repeal the law, and Ohio voters will get a chance to keep or scrap the law on Tuesday, November 8th, 2011.

Here’s what Ohio’s State Issue 2 is all about:

Issue 2 makes some very fair and common sense requests of our government employees to give local communities the flexibility they need to get taxes and spending under control, while providing the essential services that we rely on.

  • It allows an employee’s job performance to be considered when determining compensation, rather than just awarding automatic pay increases based only on an employee’s length of service.
  • It asks that government employees pay at least 15 percent of the cost of their health insurance premium. That’s less than half of what private sector workers are currently paying.
  • It requires that government health care benefits apply equally to all government employees, whether they work in management or non-management positions. No special favors.
  • It asks our government employees to pay their own share of a generous pension contribution, rather than forcing taxpayers to pay both the employee and employer shares.
  • It keeps union bosses from protecting bad teachers and stops the outdated practice of laying off good teachers first just because they haven’t served long enough.
  • Finally, it preserves collective bargaining for government employees, but it also returns some basic control of our schools and services to the taxpayers who fund them, not the union bosses who thrive on their mismanagement.

Even under the reforms of State Issue 2, Ohio’s government employees will still receive better pay, better health care and better retirement benefits, on average, than the vast majority of Ohioans who work in the private sector.

There are a number of myths going around about Issue 2, and it’s important to set the record straight, so I’ll do that below.

Ohio Average Pay: Public vs. Private
Ohio Average Pay: Public Unions vs. Private

Myths and truths about Ohio State Issue 2

Here’s a common myth:

State Issue 2 would “cut salaries and benefits.”

The truth:

Issue 2 would not cut salaries or benefits for any government employee. Employees would simply be asked to pay a modest share of their benefits, just like employees in the private sector do. For health care coverage, they would pay at least 15% of their overall plan. (Many local government employees currently pay less than 9% of their health care premium, while the average private sector worker pays upwards of 30%.) In addition, employees would be required to pay their personal share of a retirement plan (only 10%), rather than asking taxpayers to pay that share. That’s not too much to ask at a time when many private sector workers get no retirement benefit at all. Finally, Issue 2 requires that benefits apply equally to all public employees, so no one gets special treatment.

And another common myth:

State Issue 2 will eliminate government employee pensions.

The truth:

Government employees will still get a very generous pension benefit – an annual payment that averages their three highest annual salaries. That’s a pretty nice deal, when many private sector workers get no retirement benefit at all. State Issue 2 only ends a practice where some government union contracts require taxpayers to pick up the tab for BOTH the employer AND employee shares of a required pension contribution. In this economy, it’s simply not right to ask struggling taxpayers to foot the bill so government employees can get a free retirement. Issue 2 simply says government employees should pay their required share (10 percent) and taxpayers will contribute the employer share (14 percent).

Another myth:

State Issue 2 will cut teacher salaries.

The truth:

That’s one of the scare tactics government unions are using to turn people against these reforms. Nothing in Issue 2 determines salary levels. It only ends the practice of handing out automatic pay raises, or “step” increases, and longevity pay – or bonuses just for holding the job for a certain period of time. Issue 2 also asks that performance be added as a factor in teacher compensation, a goal President Barack Obama set out in his national education policy in 2009.

And another myth:

State Issue 2 will cost jobs

The truth:

Just the opposite is true. Ohio’s state and local tax burden ranks among the top third in the nation. As a result, companies large and small have left our state in pursuit of better tax incentives elsewhere, taking hundreds of thousands of jobs with them. If Ohio hopes to compete for new job growth, we have to make our state a more affordable place to live, work and do business. That starts with getting the cost of government under control so we can direct more of our limited resources into economic development, community revitalization and better schools.

More myths about Ohio State Issue 2 are corrected on this page.

Newspaper endorsements

So far, Issue 2 has been endorsed by several Ohio newspapers, including the biggest ones.

The Cleveland Plain Dealer:

The fiscal picture of local governments and school districts, especially, will improve as they are able to right-size their work forces and their expenditures on services. That will happen over time, not overnight, as new contracts are established.

Repeal SB 5, though, and it’s going to be awfully hard for local governments to manage their payrolls without resorting to larger-scale layoffs than would otherwise be necessary. And local governments will continue to be hamstrung by anti-merit seniority rules that lead to worker complacency and protect dead weight and time-servers.

Voting YES on Issue 2 will prevent layoffs by keeping public sector wages and benefits in line with what the private sector can afford to pay.

The Columbus Dispatch:

Despite the insistence of opponents, the effort to reform Ohio’s out-of-balance collective-bargaining law is not an expression of disrespect for or dissatisfaction with Ohio teachers, police officers, firefighters and other government employees. It is a much-needed attempt to restore control over public spending to the public officials elected to exercise that control.

It does not assert that public employees are worth less than the compensation they’re receiving, only that the compensation has grown faster than the public’s ability to pay for it.

[…]With more ability to control the escalation of salary and benefit costs, governments won’t be forced as often to impose layoffs, and might be able to afford to keep even more police and firefighters on the streets.

Again, no one is saying that public sector workers don’t matter – the question is whether we can afford to give them better wages and benefits than the private sector workers who are their customers and their employers. Public sector workers work for the public, and the public can only afford to pay so much.

Conclusion

Government employees are paid 43% more than private sector employees, in salary and benefits:

I think that people who care about the long-term prosperity of Ohio should vote “YES” on Issue 2 to make public and private salaries and benefits MORE EQUAL. Ohio is facing enormous economic pressure from the global recession, and everyone has to make sacrifices. Now is not the time for public sector workers to insist on higher wages and benefits, especially when the private sector workers who pay their salaries don’t make as much money, nor do they get the pensions, nor do they get the better job security. Ohio voters can certainly go back and renegotiate union salaries and benefits when Ohio is out of the recession.

Click here to learn more about Ohio State Issue 2.