Archive for July, 2015

Let’s Take a Look At OPEB, Retiree Health Care Costs!

Tuesday, July 28th, 2015

Let’s Take a Look At OPEB, Retiree Health Care Costs!

July 28, 2015

Yesterday there was an article in the Wall Street Journal entitled “Relief for Cities’ Budget-Busting Health-Care Costs”. It talked about new accounting rules for retiree health care plans. Nationwide the total unfunded liability is close to $1 trillion dollars.

For the first time the Government Accounting Standards Board (GASB) will require local government to report their obligations to retirees as liabilities on their balance sheet. (Side Note: The Federal Government wants cities to report this but the federal government continues to ignore their multiple front unfunded liability.)

So I decided to take a look at Memphis, Shelby County, Shelby County Schools and Nashville.

Unfunded Liability for OPEB, 7/1/2014

Memphis                                          $716 million

Shelby County                                 $243 million

Shelby County Schools                 $1.43 billion

Nashville Metro                              $2.03 billion (including metro schools)

The striking thing about this is that the only adult in the above group is the Shelby County government. There was a warning back in 2007 from the GASB about unfunded OPEB liability and Shelby County took action and forced retirees over 65 who were eligible (or their spouse was eligible) to use Medicare as the primary payer with a County supplementary plan as the backup. They required those retirees under the age of 65 without a Medicare eligible spouse to pay a higher health care premium based on years of service. The City and apparently Nashville did nothing. This led to the above huge numbers.

The City of Memphis finally took action which has led to the current turmoil among the retirees and the unions. The school system and Nashville are finally facing their fate and will be required to make hard choices. I call on the City of Memphis to not go back on their late hard choices on retiree health care costs and go forward with their adopted but late difficult decision.

FEW (family/education/work) IS THE SOLUTION

Monday, July 20th, 2015

July 20, 2015

FEW (family/education/work) IS THE SOLUTION

 

There have been lots of articles last week, both locally and nationally, about income inequality, middle class wages, poverty percentages and solutions. It must be the upcoming elections, locally this year and nationally next year, that has politicians spouting out their solutions.

One local article cited a study that pegged Memphis as a national leader in both income gap and economic distress. The four local leading candidates for mayor were asked the question “How do we fix that?”

Here is a recap of what the four said.

HAROLD COLLINS

Collins, a City Council member, said the city needs better-paying jobs before it can reverse poverty trends and close the income gap, and took incumbent A C Wharton to task for not doing more to get those jobs. Collins said he also plans to “force” the Greater Memphis Chamber to recruit businesses in technology, engineering, finance and other industries with higher average salaries. For instance, he said, the city should be targeting companies fleeing California because of the drought there.

JIM STRICKLAND

Strickland, also a council member, said wage gap and poverty issues “run hand-in-hand” with population loss. Keeping people and jobs in Memphis is the best way, he said, and the city needs a mayor who “has the strength to fix things.”

Getting into the specifics of his plan, Strickland said he would focus on the “basics of government,” which he said are “not being done.” That includes “drastically” reducing crime and cleaning up the city, he said. “We must have a city government that is run effectively to create a safe and clean community where businesses and people want to be,” he said.

A C WHARTON

Wharton, the incumbent, said his administration has worked on reducing unemployment and income inequality in a number of ways as part of his Blueprint for Prosperity plan and with the recently announced Jobs Plus grant.

“If we are successful in getting Choice Neighborhood Implementation grants, this will provide significant support for my strategic priority of prosperity and economic opportunity for all citizens,” he said.

Wharton said the city already has some of the best workforce-readiness programs in the country at the Workforce Investment Network and through the Greater Memphis Alliance for a Competitive Workforce, which equip people with the skills needed for current and future jobs so they can “become more marketable and command higher salaries as businesses compete for top talent.”

“The Choice Neighborhood grant funds would help us leverage and maximize all of these efforts to address poverty, unemployment, income inequality and depressed neighborhoods,” he said.

MIKE WILLIAMS

Williams, the president of the Memphis Police Association, said the key was to invest in quality of life and public services instead of giving property-tax breaks to businesses.

“The profits are not being shared,” he said. “That’s why you have the (Greater Memphis Chamber) raping the city coffers. And that has to stop. Until it stops, we’re going to continue to generate poverty in this city.”

Drawing a distinction between himself and Wharton, Williams said he is opposed to “putting a clamp on excessive spending” — which, under Wharton, has translated into health care and pension changes that resulted in city retirees protesting at City Hall.

Instead, Williams said, the government should increase spending on services to make Memphis more attractive to both employers and employees.

So here is what I get out of these answers.

Collins-Get high tech companies from California but we do not have a skilled high tech workforce.

Strickland- Reduce crime, clean the city and reduce taxes.

Wharton– Get federal grant money for short term training programs and neighborhood programs.

Williams– Stop Pilots, stop cutting expenses and employee benefits which translates into higher taxes and more people leaving Memphis.

The truth is that there is no immediate solution to the problems in Memphis. The only answer is FEW, (FAMILY, EDUCATION, WORK) and it is a long term solution. Since the end of the Second World War we have been digging this hole (family breakdown, poor education and welfare dependency). Look at Detroit, Baltimore and unfortunately Memphis. Raising the minimum wage, income redistribution, unsustainable pensions and health care benefits will not solve the problem. Politicians will tell you otherwise but there is no one year or even four year solution. Restore your family, educate your children and take any job to start up the hard economic ladder. Any other solution is a lie. What is your opinion of the candidates and their solutions?

The Dog Ate My Emails And My Lunch

Monday, July 6th, 2015

July 6, 2015

The Dog Ate My Emails and My Lunch

Open records and access is a national problem that started in Washington DC and is continuing throughout the nation. Now the dog is not only eating my emails but wants my lunch and for me to pay for it as shown on the attached youtube. http://www.youtube.com/embed/ub1Dc3NHZ3s?autoplay=1&cc_load_policy=1

I recently received an email from Deborah Fisher. She is the Executive Director of TCOG, Tennessee Coalition for Open Government
(615) 602-4080

Check out my open government blog at www.tcog.info

Or follow us on Facebook 

Or twitter @TNOpenGovt

I emailed her about our open records room at the Shelby County School System and here is her reply.

Hi Joe,

I read through what you sent me, and had seen the article earlier in the Commercial Appeal. I applaud you on working so persistently with the school board to create a process that would make it easier for citizens to view public records!

Clearly, obstacles do remain. How can I help you in your goals? And I would love to pull you more into the fold of what TCOG is doing.

The Tennessee School Boards Association (of which Shelby County school is a member) had as one of their top legislative priorities this year to pass a bill that would allow EVERY GOVERNMENT ACROSS TENNESSEE to charge new fees on citizens who want to inspect records. Right now, the law says no charges can be filed to inspect records – charges can only be assessed when someone wants copies of records. Not everyone charges for copies, but many do. We are seeing all sorts of labor charges when someone requests copies (upwards of $1,000), and are concerned that if the free inspection language is removed from the law, things will get much worse and more local governments will feel at liberty to charge per-hour labor fees to compile documents.

I do a lot of training, but one of my duties is tracking such legislative action. The fees bill was pulled off notice by its sponsors, after the Office of Open Records Counsel said it wanted to study the issue and hold hearings across the state.

I believe the West Tennessee hearing will be in September in Jackson. (One of the bill’s sponsors is state Rep. Steve McDaniel from Parkers Crossroads near Jackson.)

The Open Records Counsel has called a meeting of the Advisory Committee on Open Government at 10:30 a.m. Monday in Nashville at Legislative Plaza that will be live-streamed on the web. If you have time to watch it, it may help you understand better what is happening. ACOG is a group of representatives from government associations (like the School Board Association) and citizen and media groups. TCOG has a seat on ACOG. Here’s a link: http://www.comptroller.tn.gov/openrecords/acog.asp

At this meeting the Open Records Counsel will discuss her plans for a survey/questionnaire, and what she thinks should be the topic of public hearings. At this point, we are very concerned about the direction she is taking the public hearings and survey. I’ll attach for you the draft topics for the hearing, and perhaps you can see what I mean.

The Tennessee School Boards Association representative on ACOG is Don Long, and he has been very active in pushing the fees legislation.  He is someone who has gotten crosswise with some citizens in Sumner County who have been seeking more information about their school district, mostly on spending matters.

While the Tennessee School Boards Association is the lead in pushing this legislation, I’m not certain that all of the elected officials who serve on school boards across the state agree with what their association is trying to do. I’m not sure Shelby County school board members support this, for example.

If a new bill is introduced in January, we need help from citizens who are willing to talk with their state lawmakers. I’m not quite sure of where members of the Memphis area delegation stand on this, or if you guys have worked in that area.

Would love to talk with you more, especially about what’s happening in Shelby County.

This is clearly the time to let our school board members know that we are for open records and that we appreciate the initial steps that Superintendent Hopson and board member Chris Caldwell have made. Our group of citizens is determined to help in building a model open records policy that hopefully can be a template statewide and to resist any efforts by the Tennessee School Boards Association to restrict access to records with new policies and restrictive fees. We, the taxpayers, pay for all of this, and we should have access to all legal information with minimal or no cost.