Archive for the ‘health care’ Category

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?

There Is No 4 Or 8 Year Solution To Poverty

Monday, August 20th, 2018

Lee Harris will become the new Shelby County mayor on September 3rd of this year. In a recent article in the CA he stated that he would use the borrowing power of the state’s most populous county to spur regrowth in old Memphis neighborhoods and ease poverty. A graduate of Yale law school, he wants blight and poverty eased, and favors building four or five public schools (each costing $100 million) in humble neighborhoods.

 

He states that better schools would help children climb out of poverty. Improved education and could draw new residents in waves. They’d repair blighted houses to live near the schools, bring new life to entire neighborhoods. He’d have the county borrow the school construction money.

 

I have several thoughts about his vision.

 

  • A fancy $100 million-dollar school building does not guarantee a great educational institution. It is the eager to learn students and great teachers that make a great learning place.
  • How do you pay for $500 million dollars in bonds for education services without raising property taxes or cutting other county obligations such a health services, law and fire services, pension and OPEB obligations?

 

These short-sighted political solutions to a long-term problem is typical of many politicians. The real problem of poverty lies in a lack of education in the population that Mr. Harris wants to help but his solution will not work and could be counterproductive. Poor education is a generational problem caused by the destruction of the family and children growing up without the support of two parents who demand that their children learn principally at home and also in school. A demand for learning at home and for discipline is what is missing and fancy schools will not help.

What is your opinion of Mr. Harris’s plan to end poverty?

ELECTIONS ARE COMING

Wednesday, July 11th, 2018

Elections Are Coming

 

July 11, 2018

 

There is an important election coming up on August 2, 2018. Let us look at some of the important elections.

A new Tennessee Governor will be elected as our current governor is term limited. You will be asked to choose whether to vote in the Republican or Democratic primary. I am voting in the Republican primary. For me it comes down to Diane Black or Randy Boyd. I met Ms. Black recently and was impressed. Mr. Boyd has the support of Mike Huckabee. Take your pick but I am voting for Ms. Black.

Another important election is the United States Senate because of the retirement of our current senator, Bob Corker. I am voting for Marsha Blackburn. She will have a tough fight in November against Phil Bredesen, the Democrat.

The most important local election is the County Mayoral election. Shelby County has been well run under Mayor Luttrell and David Lenoir is the best candidate and I will be voting for him.

Another important election is the District 8 United States House of Representatives between the current representative, David Kustoff, and George Flinn. I know and like George and while he has a high hill to climb I would vote for him, but I am not in his district. In my district I am voting for Charlotte Bergmann.

I am in Tennessee Senate District 31 and will be voting for Brian Kelsey.

I am in Tennessee House of Representative District 93 and there is no Republican running, so I will not be voting on this district.  I used to vote in District 83 and if I was still there I would vote for Mark White.

Another important election is the Shelby County Commissioners. I am voting in District 7 and will vote for Samuel D. Goff. I recommend the republican candidates where they are running.

I have listed a complete ballot with my choices listed in red. Vote your convictions but please vote.

The True Greatness Of America, Will We Lose It?

Monday, July 2nd, 2018

July 2, 2018

The True Greatness Of America, Will We Lose It?

This Wednesday is July 4th, the anniversary of the declaration of Independence, I worry for our country. The country is divided, and I hear things from people that I cannot believe I would ever hear from people who have benefitted from living in this great country. What is wrong with these people? Do they not see what is happening in other countries like Venezuela, North Korea, Syria, Iran and many other countries?

 

I would like you to read a history written by my Uncle Vern Laughter. He was born in Desoto county on a farm in 1902. He was a remarkable man with a genius level of memory and observation. He worked for the City of Memphis in the engineering department for years and after retirement wrote this remarkable history entitled “An Ordinary Family’s Changing Life-Style: 1902-1982.”

 

It is the story of America and the genius of our founding fathers and their Declaration of Independence and the Constitution. Make no mistake, there are forces in America who would change our founding documents and our history. I ask you to read the history written by my Uncle Verne as it is the history of hard working Americans who built this country with their work, religion, integrity, charity and love of country.

 

Here below is an introduction to his history and it is charming with his sketches of his youth.

 

http://www.memphisshelbyinform.com/wp-content/uploads/2018/07/Laughter-drawings.pdf

 

 

The over 500 page history can be read on my website. Go to http://www.memphisshelbyinform.com/?page_id=4

 

I hope that you will go and read this history over the fourth of July week and reflect on this country and thank God that you are part of this great country.

 

GOD BLESS AMERICA AND THE DECLARATION OF INDEPENDENCE AND THE CONSTITUTION.

Why Can’t The Public See Public Bids And Price differentials?

Tuesday, April 10th, 2018

April 10, 2018

 

Why Can’t The Public See Public Bids And Price differentials?

 

Bids for items purchased by public entities should be open and public information. Organizations such as the City of Memphis, Shelby County, MLGW and others paid for by local, state or federal tax money should have transparency on their bids.

However, this is not the case. Here are some local examples.

If you go to the City of Memphis website (www.memphistn.gov) and click on Business and then on RFPS and RFQS (request for proposals and request for quotations) and click on current solicitations you will see a table of upcoming quotations.

However In regards to the posting of Bid Awards online, the City currently does not post these online, but plans are in motion to soon place online links to reports detailing all bid awards for a given time frame plus the awarded vendor name, amount, description of the bid and Division name.  (attached are two examples of this report—one for 2017 and one for 2018 YTD).  However, there is no report available that includes the above information along with details on the losing bidders. Info on losing bidders would have to be obtained via the Open Records Request system on an individual bid basis or by reviewing the contract documents for each awarded contract.

If you look at the above two lists (one for 2017 and on for 2018, you will see the types of items purchased by the City of Memphis and the amounts spent. There are huge amounts of pubic money being spent.

The tax paying public is entitled to know how this money is being spent, who is getting this business, how much higher the other bidders quoted and if the lowest bidder was not awarded the contract, why not.

The rules and regulations for being able to bid on this public business are very complex and discouraging for private businesses to jump though all the hoops. I know several local business who add 10% plus whenever bidding on public buxiness due tothe paperwork.

I asked Shelby County for similar information on purchasing and their reply was as follows.

In response to your inquiry, the County does not publish the information on our website. There is no intentional exclusion of the public’s right to see the information but rather there has never been a demand for the information.  Another problem we have is that we do not have a sophisticated system to process purchasing and contracts information.  We are in the process of obtaining a modern system that will facilitate providing the information in question.

 

Occasionally we will have a request for the information you are citing but it is usually from an unsuccessful bidder or sometimes from a company interested in bidding on a certain service or commodity.  Is there anything in particular that you would like to see?

 

To date I have not gotten any response from the MLGW concerning the question of purchasing transparency.

Now here is the problem with all local public purchasing.

A local news report stated the following. “Shelby County commissioners approved a moratorium Monday, April 2, on all county contracts and budget amendments worth more than $50,000 through the end of August.

The 10-3 commission vote follows concerns some commissioners expressed last week in committee sessions about a multi-year contract worth $20 million for medical services to county corrections center inmates.

The contract is specifically exempted from the county’s ordinance setting percentage goals in awarding county government contracts to minority-owned businesses.”

Now I have no objection to seeing minority-owned businesses getting a leg up in establishing an efficient and competitive private business. If they need a price differential for several years in order to get up and running so be it. But the public should know what it is costing the taxpayers and it is obvious we do not know the extent of this public cost. Let us put it out there so we know what it is costing. What is your opinion?

What Pubic Retiree Healthcare Costs You As A Taxpayer

Tuesday, January 16th, 2018

What Pubic Retiree Healthcare Costs You As A Taxpayer

 

January 16, 2018

 

Years ago, I started investigating healthcare costs for active employees and retirees at the MLGW, the City of Memphis, Shelby County and the school system. At that point (before 2007) there was no requirement that the unfunded liability of medical and other costs for retirees be put on the financial statements of the various local governmental units. I started checking on the unfunded liability which was called OPEB. (Other Post Employment Benefits, mainly health care costs and life insurance).

I was shocked by the amount of unfunded liability. Look at the history of this huge unfunded liability over a certain time period.

OPEB History- unfunded liability

MLGW 2007            658 million

MLGW           2015              461 million   down 30% from 2007

 

City of Memphis 2008                  857 million

City of Memphis 2015                  730 million

City of Memphis 2017                  504 million  down 58% from 2008

 

Old Memphis School System 2008                   1.34 billion

Current Shelby County School System 2016  1.25 billion   down 9% from 2008

 

Shelby County Government 2007                     319 million

Shelby County Government 2016                     101 million   down 69% from 2007

It is obvious that this is still a large problem. But as usual, our Shelby County government recognized the problem early (in 2007 when notified by GASB) and acted. The City of Memphis was slow in acting but eventually addressed the problem. The Memphis school  system as usual has stuck its head in the sand and is hoping for a government bailout. The MLGW is well healed and is slowly addressing the problem.

The next question that occurred to me was “What is the cost to the taxpayers for the portion of annual health care premiums for retirees paid by taxpayers?” I asked for and received the following answers.

MLGW           2528 retirees’ cost/retiree paid by rate payers            $11,733/year

City of Memphis 1524 retirees’  cost/retiree paid by taxpayers            $6466/year

Shelby County   1941 retirees’   cost/retiree paid by taxpayers            $4658/year

 

It is obvious that the MLGW is different and that Shelby County Government is more efficient. In my next posting I will take up the cost to public employees (active and retired) for their annual health care premiums so that you can compare your cost to what public employees pay and look at the annual cost rise since the affordable care act came into our lives.

MLGW Rate Increases

Wednesday, December 13th, 2017

MLGW Rate Increases

 

MLGW has proposed rate increases in gas, electric and water rates over the next few years. MLGW management says that part of the need for increases are related to decreasing sales in product. Well I decided to review the latest annual report available (the year ending December 31st, 2016).

 

The City Charter designates the disposition of revenue from MLGW three divisions, light, gas and water. MLGW is not a profit-making organization but it is required to breakeven and pay it debts and keep a reserve to cover its debts and emergencies with a proper margin. It also pays to the City of Memphis a payment like a for profit business would pay.

 

I have looked at the statements of the three divisions for the year ended 12/31/16 and the electric division lost $12 million dollars after paying $40 million to the City of Memphis. The Gas Division lost $14 million after paying $17.5 million to the City of Memphis. The water division made $9.8 million after paying $4.4 million to the City of Memphis. It is not clear if this includes the 2 million payment for the FedEx arena.

 

It seems clear to me that the MLGW needs a price increase to keep its financial situation secure. It is a well-run organization with well trained employees and with advanced technical knowledge.

 

Now I want to point out that MLGW employees have a much richer health care benefits then the City of Memphis and Shelby County employees. I am gathering current information of these benefits and will be publishing information as soon as I obtain the data.

 

People are becoming energy savers and the combination of advanced energy saving appliances like light bulbs and AC/heating units and smart meters are saving energy and this is a good thing for the ecology. Again this is a well run organization with competitive rates and I hope that whomever replaces Jerry Collins will be as able as he has been.

The Secret To A Long And Happy Life

Monday, September 18th, 2017

The Secret To A Long And Happy Life

 

One of my California daughters was here in Memphis for a visit and gave me the attached article. Previously another daughter had sent my wife and myself an Ancestry.com DNA kit which we submitted. When it came back the results said that I was 61% Western European and 13% Italy and Greece.

In the past my wife and I had travelled to Italy and after reading an article about how people in Limone on Lake Garda lived such a long time, eating mainly pasta and olives, and that my relatives might have come from this area we went there. I found no Sainos there but my great grandfather did come from northern Italy. One of my friends from my high school days who was of English heritage used to call me a Po River wetback. I replied that while his ancestors were dressed in wolf skins and freezing in the winter time and using nearby bushes as a potty,  my ancestors dined in heated houses with indoor plumbing.

In reading through the article several things stood out to me. While you can ruin your health with bad habits like smoking, excessive drinking, drugs, etc, the most important thing is the family genes. Emma Morano  as a girl was often ill. The doctor diagnosed anemia and advised a move to the lakeshore which she did. He also told her to eat three eggs per day, two of them raw and she kept this diet for almost a century. At lunch she ate pasta with raw minced meat and for supper a glass of milk. Then after supper she had biscotti and a large tin of gianduiotti, a local hazelnut chocolate. Last came her home spiked grappa infused with seven sage leaves, herbs and a few grapes.

Modern doctors said that such a diet was unhealthy but they have all passed. The real principles of her life were four, family, self-sufficiency, faith and work. Also you ladies should note that every night she applied an anti-ageing cream. I bet the TV hucksters would love to get the formula. She eventually had to marry (her real love died in a war) due to parental pressure but the husband was abusive and she eventually kicked him out and they separated since divorce was not then legal.

In April of this year she died at age 117. She had a life that modern Americans should read and study.

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.

The Local Charter School Fight

Wednesday, July 5th, 2017

Our Shelby County School Board has an aggressive legal bent. They seem ready to sue at any hint of competition from the charter school community or push back from taxpayers. Already they have spent over $340,000 on a lawsuit against the state of Tennessee claiming that education in Tennessee is underfunded and not adequate as required by the Tennessee Constitution. They want the school boards in Tennessee to set an adequate tax rate for education separate from the elected local politicians.

 

Now they are proposing a resolution from general counsel Rodney Moore to “research and pursue any and all appropriate legal and judicial remedies including but not limited to legal action” to stop the Achievement School District from operating grades it wasn’t authorized to operate.

 

The problem here is that the majority of the Shelby County School Board does not want competition from any charter schools or any state imposed Achievement School District schools. They think that they know best and they should not have any competition from other education ideas or other means or educating our children.

 

The old Memphis School Board and the successor Shelby County School Board has a record of failure and cannot point to much success. The old centrally controlled model does not work. Competition schools that are measured against the centrally controlled schools are the answer. Let the best results win.

 

The real prize is the tax money spent on education. Now we have a central bureaucracy which last year spent $11,231 per student. The 45 charter schools got only 70% of that piece of the pie at $7826 per student. A large part of the difference is the bureaucracy and the teachers union. Here is a current copy of the teachers/helpers contract. When you read the contract you will see that the salary schedule Appendix A was left blank. I have asked again for this information but have received no answer yet. Here is the salary schedule from a previous contract. Also here is a comparison article on management salaries between the old Memphis City School administration and the old better run Shelby County School System. The new Shelby County School System needs competition and needs to be leaner and learn to do with less.

 

The charter and alternate schools make their own deals with teachers but the teachers have to meet state teacher licensing requirements. They have more freedom to experiment with new ideas for education. Each year all schools should be tested in a rigorous method that can be checked for cheating and let the results speak for themselves. Stop the lawsuits and let us have education competition so that parents can have a choice.