Archive for the ‘The Med’ Category

Amazon and Nashville/Memphis

Monday, November 19th, 2018

Now that the election is over, let us get back to important things like comparing Memphis/Shelby County to Nashville/Davidson County.

We have the news that Nashville is getting a piece of the Amazon pie, 5000 high paying jobs. It comes at a high taxpayer price but is probably worth it. Why Nashville and not Memphis?

Comparing Nashville to Memphis has been a project for me for some time. It is not easy to go through all the published financial data and come up with understandable comparison data. However, let us start with a few facts.

Population: Shelby County: 936,961, Davidson County: 691,243

Population of the core city: Memphis 653,236, Nashville 444,297

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Area: Shelby County: 755 sq. miles, Davidson County: 525 sq. miles

Area of the core city: Memphis, 324 sq. miles, Urban Nashville, 198 sq. miles, general service area 327 sq. miles for a total of 525 square miles.

Conclusion: population density of core city Memphis 2016/sq. mile

Population of core city Nashville 2243/sq. mile

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Property tax revenue: Memphis $458,671,000, Shelby County $793,849,000 for a total of $1,252,520,000 or 1.25 billion.

Property taxes, Nashville Metro, $971,643,000.

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Budget of Memphis and Shelby County $1.88 billion.

Budget of Metro Nashville $2.23 billion.

Budget expenditures per resident Memphis and Shelby County $2006

Budget expenditure per resident of Metro Davidson $3226

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Debt service as a % of operating expenditures

Metro Nashville                  9%

Memphis                               20%

Shelby County                     21.45%

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Memphis pension liability 2018- $2.68 billion 89.6% funding ratio

Shelby County pension liability 2017- $1.2 billion 71% funding ratio

Nashville Metro pension liability 2017- 3.08 billion 95.4% funded

 

Memphis OPEB liability 2018 $334 million, 0.8% funded

Shelby County OPEB liability 2017 $232 million 83.3% funded

Nashville Metro OPEB liability $2.33 billion, zero % funded

Typical Winter utility bill

Memphis- $244.10

Nashville- $375.65

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The Statement of Net Position presents information on all the Government’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Government is improving or deteriorating.

 

Metro Nashville net position decreased by $266 million for the year ending 2017.

Memphis net position decreases by $58 million for the year ending 2017.

Shelby County net position increased by $86 million for the year ending 2017

 

If you have additional financial comparison information or disagree with any of the above information, please let me know.

 

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I think Memphis is a great city, beautiful trees, weather is consistently great, wonderful  people and compared to Nashville, a low cost of living. What is the difference?

 

EDUCATION AND TRAINED WORK FORCE.

 

We are told that these 5000 jobs Amazon will bring to Nashville have an average salary of $150,000/year. These are jobs that require high tech skills in management, engineering, computer science and programming. It is a pleasure to go to the Amazon website as its ease of use is outstanding and much better than its competitors.

 

However, Amazon’s main business is selling things made by others and getting those things to you fast and at a low cost.

 

Memphis needs to compete in the area of technical job training and skills that are needed in the next few years in manufacturing, health care, auto and aircraft maintenance, warehousing and transportation. Our new governor has promised to continue free junior college training (Tennessee Promise) and hopefully he will allow qualified non-profits like our local Moore Tech College to participate in the Tennessee Promise program.

 

Our local shortage of trained people needed by companies like Amazon will not be solved in a few years but while we upgrade our primary grade education, we need to emphasize trade school education to upgrade our local working wage level and reduce our comparative high poverty level.

 

I would appreciate your thoughts on what we can do to help Memphis to reach the next level of prosperity. Memphis is great, but we can make it grow and prosper with the right education policies. EDUCATION IS THE ANSWER.

 

 

 

 

 

The New Shelby County Government Is Looking Like the Old City Government

Tuesday, September 4th, 2018

September 4, 2018

The New Shelby County Government Is Looking Like the Old City Government

 

The new Shelby County government is just beginning and we all wish them well. We all want and need low cost and efficient government to furnish fire and police services, bring us our utilities, repair our roads, run our legal system, furnish medical services and educate our children.

 

Shelby County government has been well run for many years as compared to the City of Memphis. Let me give you several examples.

 

In 2007 the Governmental Accounting Standards Board issued GASB 45 which required that other post-employment benefits (OPEB) must be recognized as the benefits earned rather than as they are paid. The county in 2008 made certain positive changes as shown on the attached document. The City of Memphis did nothing until 2017 when they made changes to the benefit plan. The County OPEB unfunded liability went from $319 million in 2008 to $46 million today. The City of Memphis did nothing until 2017 when the benefit changes brought the unfunded liability from $857 million to $417 million, due to plan benefit changes.

 

The City of Memphis pension board regularly approves line of duty liability at 10 times the rate per employee as the County and the MLGW. This has led to an annual cost for LOD disability for the city of Memphis of some $17 million dollars per year, 10 times that of the County and the MLGW. The problem is the makeup of the pension board membership that grants these LOD disability pensions.

 

And finally, the new County pension scam allowing benefits for life with 12 years of service looks much like the January 2001 pension scam of the City of Memphis. That disastrous action allowed elected and appointed employees with 12 years of service to receive their lifetime pensions immediately.

 

It is noteworthy that the new county resolution passed with an 8-2 majority. Commissioner Walter Bailey sponsored the resolution saying that “since elected officials with term limits shouldn’t be penalized for their public service”. Commissioner Walter Bailey was term limited after his first two 4 year terms and then reelected later after laying out for a term for another term.

 

Now some politicians want to do away with term limits. The above scams only make me want to tighten terms limits so that term limited politicians do not twist the rules to feather their nests. We need term limits pension scam rules not only locally but also for the US House of Representatives and for the US Congress.

 

What are your thoughts?

Non Profits In Memphis

Wednesday, July 26th, 2017

Non Profits In Memphis

 

July 25, 2017

 

Not many people know the extent of nonprofit organizations in Memphis and the surrounding area. A recent count put the number of local non profits at over 3000 with an annual expenditure of over $6 billion and total assets of over $12 billion.

A nonprofit organization is an organization that has been formed by a group of people in order “to pursue a common not-for-profit goal”, that is, to pursue a stated goal without the intention of distributing excess revenue to members or leaders. A nonprofit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view. In economic terms, a nonprofit organization uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization’s shareholders (or equivalents) as profit or dividends.  Nonprofit legal structure is one that will often have taxation implications, particularly where the nonprofit seeks income tax exemption or charitable status.

 

Donations for non profits comes from either public tax money, from private donations or from their nonprofits’ investment income. How can donors evaluate whether or not a charity will ultimately deliver on their promise or mission? In the nonprofit world, however, there is no common, easily understood measure of success. There are three types of data that might be used to measure a nonprofit’s success, input, output and results. Input can be measured by reading the 990 (Return of Organizations Exempt From Income Tax) form available through Guidestar or others. Output and results are more difficult to evaluate.

What I am looking for when looking at a local non profit is the mission statement, revenue and sources of revenue, expenses, net assets and fund balances and compensation of officers, directors, trustees, key employees, highest compensated employees and independent contractors. Also I want to know about family relationships amongst these people if any.

I have attached a partial list of non profits in the Memphis area. I have listed them from the highest in gross receipts to the lowest. (St. Jude would be second in gross receipts at $1.029 billion). Look over the list and let me know of others not listed about which you would like further information such as their 990 form. I can provide this to you or you can go to guidestar to get it yourself. Many of these organizations do a great job and provide needed services. There are no doubt some that are questionable. We need to expose the bad ones and support the good ones.

Insure Tennessee! Let Us Have A Discussion

Wednesday, February 11th, 2015

February 11, 2015

Insure Tennessee! Let Us Have A Discussion

 

Recently I heard a talk given by Dr. Scott Morris, founder of the Church Health Center. He talked about the Sears Tower planned renovation and it was fascinating. If it comes off successfully, it could lead to great benefits for midtown and for Shelby County.

 

Before he got into the Sears Tower presentation, he talked about the recently defeated proposal for Insure Tennessee. This is Governor Bill Haslan’s proposal to take federal money from the government to expand Medicaid coverage under the Affordable Care Act to people who do not qualify either for existing Medicaid programs or to buy coverage on an exchange.

 

Haslam unveiled Insure Tennessee in December after nearly two years of negotiating with the federal government because Insure Tennessee was not a straight expansion of Medicaid. It required a waiver approval by the U.S. Department of Health and Human Services because Haslam opted to craft a state-specific program that modeled many aspects of commercial health insurance using funds from a tax that Tennesseans are already paying under the ACA.

 

Dr. Morris stated that this was a no brainer as the money was sitting there and there were people who needed the medical services and after all it was our Tennessee tax money and additionally tax money from other states.

 

(more…)

Concierge Medicine In Memphis And The Nation

Monday, November 18th, 2013

November 14, 2013

There was a very interesting article in the Wall Street Journal last Monday (November 11) that was titled “The Pros and Cons Of Concierge Medicine”. With the looming advent of Obamacare everyone should be looking at options for their future medical care.

Here are some of the points made in the article which describes the features of MedLion clinics of which there are 16 locations in five states. They charge $59 for monthly membership and $10 per visit. The concierge business ranges from high end practices charging thousands of dollars per month for lavish celebrity-style treatment to the other pared down clinics which charge $50 to $100 a month for basic primary-care medicine. Of the estimated 5,500 concierge practices nationwide, two thirds charge less than $135 per month on average.

Unlike high-end concierge practices, the lower cost practices don’t accept insurance. Instead they charge patients directly for (more…)

Legal and Lobbying Costs at the Med

Monday, April 19th, 2010

Recently we published a report on the monthly fees paid to Harold Ford Sr. for lobbying work done for the Med which started out a $10,000 per month and is currently at $7500 per month.

Then we requested in an open records request to the Med for information (more…)

Harold Ford Senior and the Med

Monday, April 5th, 2010

If you are not aware of the agreement between Harold Ford Sr. and the Med, I have attached the agreement and the various amendments. The first agreement is for $10,000 per month paid by the Shelby County Health Care (more…)

Commissioner Ritz and the Med

Friday, February 12th, 2010

Commissioner Ritz and the Med

The article this morning in the CA concerning Mike Ritz and the Med is an example of governmental bullying and intimidation. Was the filing of a complaint the right action? I don’t know. But someone has to stand up and take some (more…)

Is the Med Going to Survive?

Tuesday, February 2nd, 2010

The financing of the Med is a critical item and has been much in the news lately. County Commissioner Mike Ritz has been deeply involved in this (more…)