Raising Taxes

From time to time you will be tempted to raise taxes in order to balance a budget or raise money for some other purpose.  Raising taxes is seen, by the general public, as something politicians do because they can.  As opposed to raising taxes for a specific need.

The only way government, any government, gets money is to take it.  Taxes, and fees do this; most people will pay taxes, gladly, if they know a few things.

• What has all the money spent so far bought that is tangible.
• Where has all the money gone?
• Why is more needed.

If these questions are answered to the satisfaction of all then you can put a tax increase on a ballot and the people will go for it. But what if you don’t want to answer these questions?  Well, then the population will defeat the ballot measure and the taxes will not go up.

You could find a way to raise taxes for something and then not even take it to a ballot.  Such is the case in Portland Oregon.  Oregon does not have a law that restricts what sort of fees a city or county can place on a city or county utility bill.

So mayor elect Sam Adams has this idea that he can use the City of Portland water bill to collect four dollars form every water meter in town.  He desperately wants the citizens of Portland to buy into this idea, literally.  His thinking is that the city can use the money to fill potholes, add bike lanes, and fix the stoplights.

What is wrong with the idea is that collecting money on the water bill for streets has absolutely nothing to do with water and sewer.  What Sam has not done is float the idea of offering city backed bonds in denominations of 5, 10, 50, 100 dollars.  Bonds with a twelve percent rate of return over two years available to everyone.

No, adding road charges to the water and sewer bill is proof that Sam has he head, Down The Sewer Pipe – Politically Speaking

Sherman

Another Word About Who Wins

Sam Adams is now mayor elect of the City of Portland Oregon.  He thinks he obtained this position because he is smart and powerful people like him.  He is, of course wrong, he obtained this position because he received more votes than the other guy.

Sherman

The Public Trust

When holding elected office, you will hear a bit about something called The Public Trust. When mentioned it is usually in hushed tones, taking on a reverence all of it own.  Yet it appears that few elected persons know what, exactly, the public trust is.

The Public Trust is the view the general public has, in regard to your own integrity. Do you lie, cheat, steal, fail to carry through on your promises.  In short, do you conduct the public’s business in a professional, honest, straightforward manner?

If, after you take office, you tell the reporter one thing and then do another.  You have violated the public trust.  These violations happen at an ever-increasing rate. Until, these days, all persons holding public office are seen by the public to be crooks.

Telling the public, through whatever venue, that you stand for or will do a thing.  And then cutting some back room deal that does the opposite.  Is a clear violation of The Public Trust and will in time cost you the office you hold.

The number one method to insure that The Public Trust is never violated is to hold all decisions in the glare of the public process.  Make back room wheeling and dealing a thing of the past and your reward will be as many days in office as you desire.

Sherman

What It Means To Be Elected

With the big general election coming up in a few short months it a good idea, I think, to have a discussion about what it means to be elected.  Some people seem to think that be elected you must be rich, very smart, politically savvy, or some sort of “Brain”.

This is not actually true although one could be very rich, like FDR, or very smart, like Carter, or politically savvy, like Clinton, or some sort of “Brain” like Lincoln.  But all of that will not get you into elected to any office.

Your political savvy, smarts, wealth or lack of same will not get you elected or keep you from being elected.  You sell your self on your smarts; the ideas that you believe will make life better for your fellows.  Your political savvy is how you will do business in the give and take of getting the job done, and your wealth may not be an issue.

There are two things you need in order to attain elected office:

1. You have to run for the office, shake hands, meet and greet people.
2. You must have more votes than the other guy.

In the final analysis it really does not matter how politically savvy, rich or how great an intellect you are.  If you do not have more votes than your opponent you will not possess the office you seek.

So does campaign rhetoric actually matter?  Yes, because if you say you will do something, and then you fail to get it done, keeping the office you have just won will become harder.  Voters do not keep incumbents in office because they have money, possess political acumen, or are brilliant.

They do care if you enact policy’s that hurt them, cost them their jobs, or prevent them from doing something. So when you are able to bask in the glow of attaining an elected position remember, it is not your greatness that got you here.  What got you here is:  More votes than the other guy.

Sherman

Building On A Foundation – Maintain A Continuous Form Of Governance

Town councils make promises, break promises and renege on deals all of the time.  The population at large tends to have a wait and see attitude because, they have had their hopes dash so many times.  Sounds like a bad book or a worse movie but it points out a fact.

That fact is most City, Town, or County councils do not pay any attention to the previous administration.  They tend to demolish the previous work and reinvent the wheel.  One of more members suddenly has a “vision for the community”.  Then they wonder why it is that the average person does not fully trust them.

The criticism has some basis in fact.  When you take office the first thing you need to do is find out how your local, county, or state government works.  What are the procedures for spending money, paying bills, creating a budget, making laws?

The second thing you need to do is find out what previous councils have promised to do and find out what has not been done, and then do them.  Case in point is the Town of Friday Harbor, a Council promised a parking lot for the locals, and a public restroom for the tourists.  It took about twenty years to complete.

The reason it took so long, is that every four years the council became made up of newer people.  Continuity became lost and if it had not been for three council members upholding the promises of past Town Councils the goals might have been lost.

It is important to remember what the past promises were and to make sure that they are kept.  The general population does not actually see individual people on governing bodies.  They see a collection that they refer to in a general sense, like the Council, the legislature, or congress.

If you do not carry through on past promises then the population will not be with you in future projects, land use planning etc.  If this is done correctly then you will not hear things like “the City council is full of liars”.  In addition you can crow about your accomplishments, should you seek reelection.

Sherman

A Different Way To Fund Streets.

One of the most vocal complaints, not the most but certainly on e of the top ten is streets and their maintenance.  People reason, not incorrectly, that since they are paying taxes the roads should be passable, without chuckholes, and swept clean of debris.

 

If you tell people that there isn’t money for their street issues they are goanna be upset when your street looks better than theirs.  With good reason too because why are you so much better then they? 

 

In 2008 Portland Oregon has thirty two million dollars in the general und that they have no idea what to do with.  Odd, seeing as how the cost of repair of the most needed streets is forty four million.  Even a causal visitor sees the disparity in this.  After all why are the elected officials telling every one that there is no money for streets when there is thirty, count them, thirty two million dollars without a home.

 

Do not worry though because they will spend all of this money, just not on streets.  Homeless shelters, street cars, land use studies, employment for criminals that come over the southern boarder without proper papers yes, streets for the tax payer – no.

 

Most towns and cities do not have such problems.  They actually do not have the extra money fore streets, or anything else for that matter.  What if there was a different, more practical, incredibly permanent, way to fund streets?

 

Try this idea for self-funding streets with the view that the fund becomes self-perpetual, or nearly so.  Find a bank that will allow as little as one hundred thousand dollars in an interest high interest savings account.  The City or Town government commits to add one-hundered thousand dollars out of the general fund for ten years into the Street Maintenance Fund.

 

Then self bond with the idea that the Town, or city, sells bonds to residents only.  Not to county residents or businesses in which the owners live outside of the town limits.  In denominations of one, five, ten, twenty five, fifty, one hundred, one thousand dollars.  Residents can buy as much as they like but have to hold them for five years before cashing them in. 

 

Split the interest into three parts, one part goes to the bondholders of record, one third goes to repair streets, one-third goes is turned back as principal.  If your residents bought a million dollars in bounds the first year the principal would be one million one hundred thousand dollars plus whatever one third of the interest is.  Even at a low rate of two percent your town or community would have seven thousand three hundred thirty three dollars at the end of the first year.

 

This way when people come in and inquire why their street is not being maintained the town or city staff can always say, buy a bond.  The good news is that the bondholder gets a payment, even if it is small, until they cash the bond in.  A must hold for five years does not mean they have to turn them in five years.  In my plan they could held on to them unit they die, at which time the next of kin receives a check for what ever principal they put in over the years.

 

This could work; Washington State is doing something similar for providing funds to their National Guard troops that serve in Iraq.  Now who will be brave enough to try this idea, or are you content in staying down and out in the Sewer Pipe?

 

Sherman