Centers Of Excellence Or Centers Of Wasted Money

North Dakota Governor John Hoeven has made much, of late, of the “Centers of Excellence” he’s established all over the state. He’s claiming that they’ve created jobs etc., but one problem is that he sold these centers as needing only a one-time grant from the state to get started. Now several of the centers have come back to the state government looking for millions more in tax dollars.
Ten million more dollars, in fact, to be split up among centers in Grand Forks, Fargo, Minot and Devils Lake. House Majority Leader Bob Stenehjem voted against the request for money made to the Emergency Commission, but the rest of the people on the commission voted to grant it.
In the business world, what do we call an enterprise that can’t be successful without infusions of tax dollars? We call it a failure. Which is what these “centers of excellence” are.
Failures.

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  • http://SayAnythingBlog.com The_Whistler_ofnd

    You would rather GOPers lose and be ideologically pure, than win, compromise and control the agenda.

    Speaking for myself what politicians actually do is important to me. I don’t get satisfaction just because “my team” wins an election.

    Certainly you don’t get everything you want in politics, but when our guy acts just like the other side it’s a huge problem.

    Up until the hillary-care lite SCHIP plan that Hoeven supported and Bush vetoed I would probably have held my nose and voted for the guy. Now I’m not sure. If the Dems came up with a guy that was ok on the gun control issue I very well may vote for him.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    That doesn’t mean government can’t facilitate job creation. Lower taxes and less regulation are two ways it can help. Tax incentives, tax credits and private public partnerships are other ways government can assist private industry in creating jobs.

    Those two things are by and large incompatible. Furthermore the record of private business creating more jobs is far better than the government meddling.

    How many jobs would be created if you left the seventy five million dollars in the economy.

    This forum was made possible by such a private public partnership. The personal computer age was largely the product of NASA working with private industry.

    Yeah, I’m working on a Nasa product right now. LOL

    NASA had a mission for space exploration. They of course contracted with private enterprise to deliver what they wanted. They did this for their own reasons and not to develop the PC.

    COE is a private public partnership. It does not create more government jobs. It assists private industry in developing and bringing to market new businesses and jobs.

    Ummm, actually it seems that many of the entities applying for COE funds are government. However it has a very poor record of developing jobs and should be scrapped.

    If a business idea is a viable one then it can attract private funding. If it’s not viable then it has to resort to government funding.

    Sure some viable businesses go the free money government route, but that business would have been created one way or another anyway.

  • robert108

    Robert108:

    Your simplistic idea of infrastructure just doesn’t fit reality.

    “Simplistic”? How do you know they’re
    simplistic? I’ve hardly touched the subject, so you don’t know enough
    about “my idea” (not mine, to give proper credit) to know whether it’s
    simplistic or not. However, it’s nice of you to assume they were
    simplistic though, even if they were never articulated. Notice I said “idea”, not “ideas”. I was speaking to what you articulated, not what you didn’t articulate.
    The example you gave of the developer was not “infrastructure” by the
    way, but “investment”. He developed a property with the presupposition
    that if he built it, people would come. In engineering, this is sometimes
    called “a product looking for a customer.” No; I apologize for not specifically mentioning the streets, which were built to accomodate the development that didn’t get built for thirty years. We used to use them for road racing. I didn’t make that clear, so I apologize. The development didn’t cost the taxpayers, but the unneeded infrastructure did. Once again, when supply and demand are reversed, bad things happen.

    That is a very different thing than infrastructure, of which not all is
    even material things that are marketable in any usual sense. The topic of this thread isn’t about that kind of infrastructure. For example a
    river could be part of a community’s infrastructure, even though it
    occurred naturally. A river qualifies because if you look at the technical
    definition of infrastructure, you find it goes something like “permanent
    resources serving society’s needs, including roads, sewers, schools,
    hospitals, railways, communication networks etc.” Once again, those items other than natural ones, which do draw people to a specific location in the beginning(due to the demand for good land, easy access by river, etc), are still a matter of supplying a demand for said infrastructure. The market should decide, not the govt. After that decision is made by the market, the question of funding becomes germane.

    Generally for it to be infrastructure it needs to be a resource, whether it
    be a road system that can be exploited, or a technically trained workforce
    that can be hired. Both are resources, neither are “marketable items”.
    Note a trained individual is a marketable “item”, but not the pool of
    skill laborers, generically speaking. It is the duty of a business entering an area to do the research to find out what resources are available in that area. If the politicians in that area want to spend taxpayer money to anticipate such a demand, they are gambling with other peoples’ money. The fact that they guess right sometimes doesn’t justify that gamble, IMO.

    Since infrastructural items like roads aren’t marketable items, but rather
    community resources, it’s wrong to try and describe them in terms of a
    supply and demand process. That’s just Econ 101.

    It’s always supply and demand, in the big picture. People come to where there are natural resources(obviously), if there is a demand for those resources. Otherwise, they go somewhere else. As far as the other type of resources are concerned, there still has to be a demand for them to justify the spending to create them in the first place. Refer to my previous comment about gambling with taxpayers’ money.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Why do these programs sound a lot like Robin Hood in reverse. Rob from the poor and give to the rich?

    The question is how many jobs would be created if the money were left in the economy and not handed out as favors?

  • carrick

    Robert108:

    Your simplistic idea of infrastructure just doesn’t fit reality.

    “Simplistic”? How do you know they’re simplistic? I’ve hardly touched the subject, so you don’t know enough about “my idea” (not mine, to give proper credit) to know whether it’s simplistic or not. However, it’s nice of you to assume they were simplistic though, even if they were never articulated.

    The example you gave of the developer was not “infrastructure” by the way, but “investment”. He developed a property with the presupposition that if he built it, people would come. In engineering, this is sometimes called “a product looking for a customer.”

    That is a very different thing than infrastructure, of which not all is even material things that are marketable in any usual sense. For example a river could be part of a community’s infrastructure, even though it occurred naturally. A river qualifies because if you look at the technical definition of infrastructure, you find it goes something like “permanent resources serving society’s needs, including roads, sewers, schools, hospitals, railways, communication networks etc.”

    Generally for it to be infrastructure it needs to be a resource, whether it be a road system that can be exploited, or a technically trained workforce that can be hired. Both are resources, neither are “marketable items”. Note a trained individual is a marketable “item”, but not the pool of skill laborers, generically speaking.

    Since infrastructural items like roads aren’t marketable items, but rather community resources, it’s wrong to try and describe them in terms of a supply and demand process. That’s just Econ 101.

  • carrick

    Robert108:

    My point exactly. Big govt is being pitched for the solution to the “problem”.

    It’s not a solution, but just part of the process on how a technological advanced society functions. Similar to how providing a road system facilitates commerce. Trying to cast it in other terms represents a failure to understand its appropriate role. It’s a facilitator, not a white knight.

  • carrick

    Rob, I realize there’s some difference of opinion here at the philosophically level. If we were talking Massachusetts, or any other area that already has a concentration of technically qualified people, you wouldn’t get much change by bringing in a “seed group” of people in some particular area.

    But in primarily agrarian cultures like North Dakota and Mississippi, getting this core competency is essential, if you want to see private industry flourish there. They don’t exist in a vacuum.

    To illustrate my point, we had the circumstance a number of years ago where a private company opened up a printed-circuit-board manufacturing plant, but closed it within a year because they couldn’t find enough local talent that knew how to diagnose and repair printed circuit boards. Places like Massachusetts already have that level of core competency, and a major reason is the existence of strong engineering programs that routinely produce high quality young engineers, who then go out into the market place.

    What COEs do for small universities (again if well set up), is it provides students with concentration areas where they can get training that rivals what you can find at other more technically developed regions. Secondly, they bring a core group of competent researchers that small enterprises can leverage off of. Most new job creation is from businesses with less than 20 personnel, see this, so it makes sense to provide an atmosphere where these small concerns can thrive.

    Bluntly, they ain’t going to do it in a corn field, and that’s the bottom line.

  • carrick

    Robert108:

    . If taxes weren’t so high, more money would stay in the private sector to fund research.

    That’s called a “theory”. We know the current system works better than in any other country in the world, being as we are 5% of the world’s population but account for at least 50% of its basic research output.

    If it ain’t broke, why are you trying to fix it?

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Newsflash, george: Conservatives aren’t “hard core right wingers”; the Constitution isn’t a right wing document. Individual independence isn’t part of right wing ideology

    Don’t you like how these neo-libs call conservatives extremists when we show disdain over growing the budget 24% in one legislative session. We’re also hard hearted and mean spirited because we think that people who can afford to buy their kids health insurance should do so.

    They have the nerve to say we’re extreme.

  • carrick

    Me:

    Similar to how providing a road system facilitates commerce.

    Robert108:

    You have it backwards; demand creates supply, not the other way around. The question is whether govt is a proper way to supply an already existing demand.

    Generically, roads aren’t a commodity. Trying to tie everything to supply and demand is a mistake.

    Road systems part of infrastructure (once built they can last 1000s of years, so trying to think of them as on a supply-demand basis is simply inappropriate). Once built they do affect commerce, because it operates more efficiently where the roads are, regardless of why they were originally built.

    Where roads are, you get more commerce. Any 1st year course in sociology will tell you this: See for example, “strip urbanization”.

    Similar story applies to technology infrastructural development. Areas that have high concentrations of technology centers develop more rapidly than ones that don’t, simply because the resource of trained professionals in those fields are very scare, and you operate more efficiently near them than you would elsewhere.

    It’s a simple matter of economics, but not one that can be reduced to supply and demand. Technology centers are to high-tech development as bipasses are to strip urbanization.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    I hate to be disagreable, but I doubt that in the whole your system can be successful.

    If so the socialist model would be much wealthier than the capitalistic model.

    The place where basic research funded by government would be where something is worth doing but is too far down the road in order to attract private money.

    I see publicly funded research as something like you funded a thousand projects for a million dollars apiece. One of those projects succeeds and comes up with a five-hundred million dollar product.

    The inventors would say that it was a 500 to 1 return on investment. I would say it was a five hundred million dollar loss(or subsidy).

    Furthermore where you said this bothers me:

    In our case, I can count off the top of my head four different companies spun off (with employees leaving in three of them to run the businesses). Obviously these private concerns are job growth.

    That doesn’t sound like a good deal. The public funds the research and when something good comes out of it the beneficiaries leave to reap the rewards.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Isn’t the general fund the part that’s funded by the State Income and sales taxes.

    So of course that’s the part of the budget that a person who’s concerned about taxes is going to worry about.

    I’m sure if we got a bunch more money from the federal governments to rebuild more bridges wouldn’t be counted as an excuse to trim spending in the general fund. The opposite should also be true.

    If anything you neo-libs have been addicted to covering up who’s responsible for the spending. Spend too much in North Dakota, blame the federal government. Too much spending by the local school district, blame the state government.

    Quit passing the buck.

    Besides your 4.1% is also much larger than the rate of inflation over that time. So although I believe the general fund spending is more important you still don’t have an excuse.

    What is with Governor Hoeven’s priorities. He ups spending 24% and we still don’t have 24 hour highway patrol service!

  • http://SayAnythingBlog.com The_Whistler_ofnd

    George:

    LATE BREAKING NEWS

    Just calculated the average annual general fund budget increases by the
    Hoeven admin and GOP legislature since JH took office (2001-09)….6.5%!

    I hope you don’t consider that something to brag about! Your figure shows that he’s growing the state government at over twice the rate of inflation over his entire administration.

    That’s frightening? What we’ve seen in the past by Democrat administrations is that (George Sinner) is that they spend the money in the good times and then jack up the taxes when the money doesn’t keep coming in at the same rate.

    The massive spending increases in 1985 led to the referral effort in 1989 when the legislature wouldn’t control their spending.

    And now we’ve got Hoeven doing the same stupid stuff from 20 years ago. I don’t care if he calls himself a Republican or not, he’s doing the wrong thing.

    There are several things wrong with Hoeven’s tax scheme.

    For one it’s another property transfer from the rural residents (non-farmer) to the city people. If you live in a responsible area you aren’t going to get the same state tax refund back even if you might pay more in state taxes.

    How’s that going to help the Republican party when the party bulwarks in the small towns find out they’ve been screwed over?

    Secondly the way they structured it it’s an invitation to more local government people to continue to operate irresponsibly. I’ll guarantee it in December when property tax bills come out that they’ll say it’s ok that they’re going up around 10% because of the property tax credit.

    Why should an income or sales tax refund involve how much property you might own?

    The biggest reason why this plan is a bunch of garbage is that it’s not enough. General fund spending is up like six hundred million dollars. We get a piddly 120 million. Meanwhile we don’t get any new or expanded services for that money.

    It’s clear to me that with John Hoeven it’s all about the government employees. The regular run of the mill taxpayer is just a cow for him to milk.

    George you say that much of the budget increase is for one time expenses. Do you think that in the next budget they’ll exclude that amount from the baseline or just figure that it’s their money and we should just shut up how they spend it.

    You say you stuck that little biennium thing in there as a test to see if we know what we’re talking about. I find that rather interesting because you’ve stated some things as facts (such as tuition didn’t go up) that turned out to be incorrect. I don’t recall in those instances that you apologized for saying we were in error.

    Maybe it’s time for the big government Republicans to be honest with themselves.

  • http://proof-proofpositive.blogspot.com/ proof_positive

    With a wave of his hand, the almighty Port dismisses any history, fact or reasoning

    george: Based on your debating abilities, I’d suggest you lay off the port, or merlot, or whatever you use to fortify your intellect before you show up here!

  • george

    Ah, I see. With a wave of his hand, the almighty Port dismisses any history, fact or reasoning…unless it fits his narrow point of view. Then who cares it is accurate and true.

    You seem to be getting testy Rob. Maybe it isn’t me who can’t take a little heat himself.

    By the way, you love to whack at Hoeven, but where are you on the legislature who spent millions more than the governor requested. Or how about the Dems who wanted $500 million more spent. How about Sen Tracy Potter the former ND Socialist Party official. How about Rep. Jasper Schneider, the most likely Dem Insurance candidate. You seemed to have forgotten them.

  • carrick

    Robert108:

    Simply not true. The vast majority of early universities were privately funded. Our private infrastructure creates both public universities and govt; never forget that. Govt is always a follower.

    I guess you haven’t heard of the land-grant system.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Whistler

    I am interested in your 24% budget increase figure.
    Is that annually?

    Gee George I thought you knew the state government worked on biennium (a two year budget).

    Maybe you need to quit lecturing the rest of us until you get a better grip of the process.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Federal funds also impact general funds. Almost all federal funds require a state match. Also, as ND’s economy heats up, the federal matching dollars increase and the federal money decreses just to hold even.

    In the 2005 thru 2007 Health and Human services budget non general fund funding amounted to 1,376 million. In the 2007 thru 2009 budget that same amount was $1,536 million. So your saying that since the Feds (presumably) only increased spending by $160 million or 12% that excuses John Hoeven to increase general fund spending 23%.

    George we got more money. Please look up the budget and try to remember that it’s good for a two year period.

    You’re not going to fool us no matter how hard you try.

    George said:

    The Human Services increase you quote is General Fund only. 80% of the increase is due to replacing the reduced federal funding ND received due to our strong economy.

  • george

    Whistler

    As for Governor Hoeven suppporting the massive Dem increase in SCHIP, you have your facts wrong. The letter 43 governors signed asked for four things…reauthorization of SCHIP, increased funding, flexibility fo rthe states in implementing and encouraged the GOP and Dems to work together to get the job done.

    The letter DID NOT advocate specifically for the passage of the goofy Dem plan that was obviously design to illicit a veteo. Here is a link to the letter I found.

    http://www.nga.org/portal/site/nga/menuitem.cb6e7818b34088d18a278110501010a0/?vgnextoid=522135d7cc304110VgnVCM1000001a01010aRCRD

    As for the NDDHS budget, I stand corrected. Give that man a cookie. I meant to say the federal funding percentage decreased, not the federal funding. ND increased their budget to meet the increased state match required to get the federal funding. ND’s percentage match keeps going up due to the strength of our economy relative to the country. All indications are that the match percentage will continue to rise as our forecast continues to outpace the nation.

    Finally, I don’t get your 38% tax point. The taxes you quote are only roughly 75% of the 40% of the total budget that is general fund. What is your point?

  • carrick

    Robert108:

    Your conclusion is based on the theory that all research and development takes place due to govt action, and that just isn’t true.

    That’s not my theory. I never said that all R&D is government, and I was pretty careful to split of basic research from applied.

    Most basic research comes from universities, almost all of it publicly funded, and accounts for the majority of basic research output on the entire planet. And that is a fact.

    So …other than on a purely philosophical level, why would anybody advocate changing it?

  • carrick

    Rob, hopefully without getting dragged too far into this, I don’t agree with you n this one. Without knowing the details of why the COEs are requesting more state funds, it’s hard to make any meaningful conclusion about the request. Perhaps you have a link with more details from a less partisan web site?

    Lets say (for R108′s sake “hypothetically”), that the COEs were successful in job creation, especially in quality jobs (meaning not McDonald’s fry cook type jobs), then logic would say more cash infusion could lead to additional jobs. Asking for more money in that case wouldn’t be a sign of failure, but rather success.

    That is a completely different question than the premise under which the COEs were created to start with, because it deals with “here’s where we are now, and this is what is sensible to do next”, not boxed-in “but you said based on last years data, you would do XYZ” sort of reasoning. As with other policy questions, like “what to do next in Iraq”, what we said or did in the past should not constrain our decisions for the future.

  • carrick

    Robert108:

    Carrick: Market forces modernized this country to take advantage of everything the Industrial Revolution made possible; why do we now need govt to do it?

    Government has always played a role. I guess you’re forgetting about the university system that was created in this country that preceded our economic development. Basic and applied research are integral to the creation of new wealth.

  • carrick

    Whistler:

    Carrick there is a place for basic research but I doubt that your model is producing ready for market ideas at a fraction of the cost of private enterprise.

    Having seen how private industry functions (or doesn’t usually when it comes to basic research), I can say that you’re flat wrong. We can do the same work that it costs industry for about 1/3 the price or less. Industry isn’t nearly as efficient for this sort of thing as you seem to think.

    It’s not fair taking a gem out of the pile of manure and holding
    Rob:

    We have seen many, many businesses move into North Dakota to take advantage of economic development money, only to pack up and leave once its time for them to start standing on their own.

    See my comment about a lack of extant technological infrastructure. Simply giving a company an incentive to come is not going to succeed.

    In fact North Dakota’s experience that you’ve related is exactly my point. Subsidies and incentives don’t work; technology infrastructural improvements do. (However, the time span is > 5 years to see a return.)

    Later.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    By providing SCHIP for truly needy, we not only make health care cheaper by driving it to the clinics, but we also give the kids the care they need and make the costs transparent.

    Umm, people with free health care don’t go to clinics. They also go the emergency room and they very well may do it more since they won’t be bothered with bill collectors now.

    It’s when someone else picks up the bill that you get irresponsible behavior. Why do you want to make the problem worse?

    I guess I called you a neo-lib because I thought it was a kinda funny. However how else do you describe someone who claims that they are conservative but at the same time are in favor of giving someone something they should and are able to pay for themselves.

    So why do you want people making $80,000 a year up to not pay for their kids (up to 25 years old) health insurance.

    Neo Lib!

  • carrick

    Robert108:

    Not in the middle of a cornfield, or in the Sahara Desert.

    You’re wrong about the first example, because in 10 years you’d see strip malls all over the place. The second is a stupid example, because increasing the efficiency isn’t going to help if there is nobody there to work or purchase any products.

    There has to be a demand first. The longevity of a commodity has no bearing on its supply/demand status.

    Baloney. The existence of Roman roads in England have no bearing on current demand, yet they affect where industry is located. And once again, they aren’t “commodities”. Once built, they aren’t bought and sold.

    You are only right in that industry isn’t created solely by the building of roads. Obviously it presupposes the existence of an economy. Industry just operates more efficiently where there is an effective transportation system, than when there isn’t. So it will naturally chose locations where it can operate efficiently over those where it cannot. That’s why the mass-migration to Mexico of our technology firms never occurred. They simply lack the infrastructure down there to support the industry.

    By the way, “infrastructure” is a term recognized in economics as being distinct from the supply and demand cycle. Why, with your training, do you continue to insist on conflating the two?

  • robert108

    Where roads are, you get more commerce.

    Not in the middle of a cornfield, or in the Sahara Desert. There has to be a demand first. The longevity of a commodity has no bearing on its supply/demand status. Roads aren’t simply roads; there are literally thousands of types of roads, and they need constant maintenance; it’s all part of the cost/benefit calculation.
    I’m sorry, Carrick, you’re just wrong here.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    By the way , general tax items such as sales/use, income etc amount to 38% of the total budget. Page 19 in the budget if you ever want to look it up.

    Pretty close for a neo-lib.

  • carrick

    Robert108:

    In addition, there is a pretty hefty overhead cost in any govt program, so a lot of the money confiscated gets siphoned off by the govt infrastructure, and doesn’t actually create any jobs.

    We aren’t talking about work performed within the government infrastructure itself (“government labs”), but rather work billed out to university research facilities.

    There’s some types of work that private concerns don’t do, mostly basic research. Much of the US advantage in advances in basic research (we’re responsible for about 50% of the total world basic research) is the result of government funding.

    Again I don’t know the particulars of the COEs in question, but if there are research programs in place at these universities, and if the purpose of the COEs is to help the migration of basic research to applied research and product development, then there will be net private job growth: This is akin to improvements in efficiency you see that result in job creation when better infrastructure is provided.

    We see this at the research institute I work at. We can produce ready-for-market ideas at a fraction of the cost that it would cost industry, and because we don’t live at the whim of some business executive (who will likely get switched out in two years, replaced by another executive with completely different priorities), and can work a problem from conception to completion (five years is a realistic period for any serious basic research to ready-for-market ideas).

    In our case, I can count off the top of my head four different companies spun off (with employees leaving in three of them to run the businesses). Obviously these private concerns are job growth.

    What I can say is from my experience, is if these are well thought out COEs, they will eventually lead to real productivity increases in those areas, but definitely not in one year. Anyone who claims otherwise is just hyping them.

  • http://www.healthinsuranceshopper.com/California-Health-Insurance-Blog/defa California health insurance

    Children’s health insurance is critical the SCHIP is important but we clearly need to do more to make health insurance more affordable.

  • docdave

    Children’s health insurance is critical the SCHIP is important but we clearly need to do more to make health insurance more affordable.

    How much are YOU willing to donate for this nebulous cause?

  • carrick

    Whistler:

    The question is how many jobs would be created if the money were left in the economy and not handed out as favors?

    In which state? Not North Dakota, unless you’re talking about field hand work or stocking shelves at Walmart.

    And there is a huge difference between a socialistic system and one in which the government plays a role in the economy. Road building is not socialism, neither is the existence of a federal reserve, neither for that is technology infrastructure.

    You guys stay backwards. No skin off my back.

  • robert108

    According to the ND Healthcare Assn the average ND clinic visit cost is $65. The average ER visit cost to treat non trauma or non critical illness is $386. With govt figures not including the overall cost of maintaining the infrastructure and the costs of confiscating and distributing the money, your figures are apples and oranges. According to the St. Alexius and MedCenter One Annual Reports, they gave $6 million in charity care last year. That wouldn’t include the uncollected charges in their accounts receivables.

    Government delivered programs tend to be wasteful. SCHIP is a program delivered by private industry healthcare paid by the government. Big
    difference. Third party reimbursement disables the ability of the price mechanism to distribute resources efficiently. The consumer of the service makes the best financial decision, not a govt agency with a social and political agenda.

    The current global warming crap has very little to do with science, much more with political agendas, and is driven by politicians not scientists.

    My point exactly. Big govt is being pitched for the solution to the “problem”. Sound familiar?

  • george

    I’m factually challenged?

    I notice you conveniently gloss over any proof or fact or completely ignore facts if inconvenient to your point. Oil jobs, state tax rankings, economic activity are just a few examples.

    Since you are not interested in fact contrary to your opinion or are unwilling to admit you are ever wrong, we will discontinue this pointless back and forth. I will be content to correct your errors and do my best to tell the real story.

    All your complaining will not hide these facts:

    1. ND is doing very well. In fact, this may be the best times our state has ever seen. Every segment of our economy is cooking.

    2. ND has created thousands of new jobs…25,000 jobs and 12,000 more working (how’s that for compromise).

    3. Wages are growing faster than the national average.

  • george

    I think I finally understand where you (Rob) is coming from.

    You would rather GOPers lose and be ideologically pure, than win, compromise and control the agenda. Of course, I also suspect that you think a pure conservative GOP would come back to sweep future elections.

    One problem. ND doesn’t elect hard core right wingers to state wide office. Oh sure, they will win certain local offices and legislative seats. But if we did favor perist conservatives, John Dorso would be our congressman.

    This is where we part. I am far too pragmatic to be a purest.

  • robert108

    And it is being done in the most inefficient means possible.

    No, that would be some sort of totalitarian socialist single-payer system.
    Despite your fantasy, george, a real business operates in a completely different manner than socialized enterprises, right from the basic reason to engage in the business in the first place. Unless you have run a real business, this fact will be lost on you. I suggest a basic econ course, since there are fundamental principles here of which you have little or no knowledge.

  • george

    Part 2

    robert

    According to the ND Healthcare Assn the average ND clinic visit cost is $65. The average ER visit cost to treat non trauma or non critical illness is $386. According to the St. Alexius and MedCenter One Annual Reports, they gave $6 million in charity care last year. That wouldn’t include the uncollected charges in their accounts receivables.

    Government delivered programs tend to be wasteful. SCHIP is a program delivered by private industry healthcare paid by the government. Big difference.

    Whistler

    Actually, I study state government closely. I just wanted to make sure you knew that it was a two year budget.

    Throwing around a 24% number is deceiving considering most people relate it to the typical one year scenario. I am constantly surprised at the number of people who think the 24% is a one year increase and not spread over two years.

    The general fund increase is an average of 12% per year. The actual progression of the increase is 18% year one (June 2007 to June 2008) and 6% year two (June 2008 to June 2009).

    http://www.nd.gov/fiscal/docs/appropbook2007-09.pdf

    If you look further, you will see that:

    40+% of the 24% biennium increase was a one time capital expenditures (Prison $43 million). Historically, these expenditures have been bonded, but ND paid cash this biennium.

    The ongoing expenditures of ND increased an average of 7% per year.

    Over $1.2 billion of “state” spending goes back to city, counties and schools for local budgets.

    The entire state budget grew only 12.5% for the biennium or 6.25% per year. I noticed you liked to quote the general fund increase, which is less than 40% of the entire state budget.

    While I agree, they spent too much, you need to use accurate information, not overcooked/hyped/worst numbers for your assessment.

    I also agree they can give more back, but one blogger referenced that ND has had surpluses for years. Not true. It is recent history that anything excessive has been seen. In fact, if you look back to 2005, ND’s total ending fund balance projection was $10 million.

    The legislators I know have always been cautious to count on the projections and have preferred to have bird in the hand before spending or cutting taxes. I hear that we will see a proposal to further cut taxes in the next session that will exceed the record tax cuts of the 2007 session.

    So, our friends in the Hoeven Admin and the GOP controlled legislature can do better, it is not as bad as the hyperventilated would have us believe. And it is certainly better than we can expect from a Dem governor and Dem Senate.

    So what side will you be on?

    And, if we all want to do something constructive and actually productive, let’s start a drive to remove higher ed from the constitution. A college for every 60,000 people is nutz! Or how about changing to 12 public school districts instead of 212…the admin savings alone is $20 million a year. Or how about 12 counties? Why we need 3 police/sheriff or three park, or local governments within 20 miles of Fargo is lost on me.

    That is the kind of change that has meaning and true expense result.

    By the way, I noticed some of you like to demand numbers, but offer no support of your contentions of waste, inefficiency or especially cronyism. Such bluster is no replacement for serious debate.

  • george

    Actually, you have it wrong on both counts.

    The general fund represents only a part of the total state taxes spent.

    Federal funds make up about 30%, other funds 30% and general funds about 30%.

    Federal funds also impact general funds. Almost all federal funds require a state match. Also, as ND’s economy heats up, the federal matching dollars increase and the federal money decreses just to hold even.

    And don’t get on Hoeven for HP shortages. He put it in the budget and the legislature cut it in half.

    No neo-libs here.

  • carrick

    Rob:

    From my perspective, all jobs are good jobs because they all develop the economy.

    I doubt that’s exactly true. Would you take a $6.50 job flipping burgers instead of a $45 management position for example? All jobs are not equal, and not all are equally good for the community. Swing shift factory jobs, while well paying, for example, also play hell on family structure.

    As competition in the labor market grows, wages go up. As they go up, higher-skilled jobs are created.

    That’s not entirely accurate. Higher skilled jobs aren’t created if there isn’t the trained work force to employ for those jobs.

    Now we can skip steps and try to go right to developing high-tech jobs, but I don’t see that kind of growth as being sustainable. For one thing, the businesses it brings in don’t tend to stick around.

    And entirely predicable too: You can’t mandate economic growth. See my story about the printed circuit board company (true story, btw).

    For another, the number of tax dollars we spend per job created is a terribly inefficient amount. And then there’s the problems with corruption and cronyism.

    That depends a lot on how the money gets distributed. Part of what some politicians don’t like is that they lose control over the money once it gets appropriated, and most of it (less overhead fee) ends up in the pockets of the organization. While cronyism can occur, it is much less likely when going to Universities. Why? Because University employees don’t get bonuses based on how many dollars they bring in. Most of them are there because they love the freedom of the job, and that is a trade off for greater compensation from private industry. You give state money to companies, chances are you are also funding vacations for top officials of those companies.

    And maybe that’s a good thing, I don’t know, but as a taxpayer in North Dakota I’m telling you that the money they’re spending on these centers of excellence would do better back in our pockets.

    Sounds like an opinion to me. I’m not sure you can objectively substantiate this claim, which was the point of my “damn-going-to-get-dragged-into-this” comment above.

    I don’t care about bringing some super-duper research facility here. You give me more of my money back, my quality of life goes up.

    You bring in more commerce the quality of life of your community goes up to, which obviously impacts you too.

    That’s the way I see things, and I don’t see it as “staying backward.” I call that sustainable economic development.

    “Staying backwards” is what happened to my home town of Richmond, IN. When I was growing up, economically it was about the same scale as Lafayette, IN (home of Purdue University). In the 30 years since I’ve graduated from high school, Richmond has stagnated and slowly crept further into the morass of socialism. Lafayette, which was very proactive about creating infrastructure for commercial growth, has boomed.

    The thing about commerce is that it isn’t at all egalitarian. It goes to the areas where it can function the best, not simply to each according to need.

    Sometimes you have to be proactive about this, and that is the place where government can play a meaningful goal. If they understand the difference between a pay-off to industry to open shop (usually backfires) versus improving their infrastructure support for industry via technology centers and industrial parks.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    By the way George has still not admitted that Governor Hoeven signed a letter urging President Bush to agree to expand the POOR Childrens health care program to include 25 year olds in households making $80,000 a year.

    We don’t buy Hoeven’s contention that 25 year olds are children nor are families making $80,000 a year deserving of a subsidy.

  • robert108

    I guess you’re forgetting about the university system that was created in this country that preceded our economic development.

    Simply not true. The vast majority of early universities were privately funded. Our private infrastructure creates both public universities and govt; never forget that. Govt is always a follower.

  • robert108

    We can do the same work that it costs
    industry for about 1/3 the price or less.

    I would like to see some real numbers to back up this claim.

    Carrick: Market forces modernized this country to take advantage of everything the Industrial Revolution made possible; why do we now need govt to do it?

  • carrick

    Robert108:

    The present globalwarming crap is a prime example.

    The current global warming crap has very little to do with science, much more with political agendas, and is driven by politicians not scientists.

  • robert108

    Carrick: If you want to change the subject to natural resources, I give you the Yukon and the Black Hills. There was a very high demand for gold, and when the supply was found in those two places, the need for infrastructure was created. Before then, there was no demand for infrastructure in those two locations.

  • george

    Part 1

    Oh, where to start….there have been so many responses.

    Rob

    The Hoeven administration has also been very aggressive on deregulation and lower taxes. Here are just a few that come to mind.

    1. Transmission and Pipeline Authorities: ND’s energy industry is bottlenecked. JH’s legislation will help the energy sector grow by streamlining approval, helping industries get better financing terms and overcome right of way problems. We already have two new transmission projects as a result.

    2. EPA used modeling instead of actual air quality to deny new power plant permits. The Hoeven Admin fought for changes in EPA’s analysis of air quality that will allow additional plants to be built.

    3. We just passed the largest tax break in history…a $120 million dollar income tax credit for property tax payers like me. For those who don’t like property tax relief, remember, we pay income and sales taxes, plus property taxes and property taxes account for more taxes collected than any other source in ND. The bill also reduced the marriage tax penalty and increased the Homestead Tax Credit for seniors and the disabled.

    4. The Hoeven Admin also fought for and got agriculture, technology, energy, and start-up business investment tax credits and tax reductions. Check the ND Budget Summary http://www.nd.gov/fiscal/docs/appropbook2007-09.pdf for details of what they approved just last session.

    As for failed ED, remember that 80% of all new private sector businesses fail in the first 5 years. The private public projects will have failures too. But for every WebSmart (approved under the Schafer Admin) and Point-to-Point, there have been many more successes: Unisys, Phoenix Int, Aldeveron just to name a few.

    As for SCHIP, you and other bloggers are right about the Dem plan being excessive, but that is NOT what Hoeven and the ND legislature did. They expanded the program qualification from 140 to 150% of poverty. They did not authorize the full implementation of the Dem plan. Basically a family of four would have to make less than $36K to qualify. I would say even most conservatives (Rob Port included) thinks that is an appropriate role for government.

    Unlike your characterization of me, I actually do my homework, know the numbers and work from something other that platitudes and baseless assumptions.

    Part 2 to follow

  • george

    robert 108

    You are something else.

    FYI: I built and run a $15 million business. I also pay $200,000 a year in healthcare premiums for my employees. I know something of what I am talking about.

    Unlike you who deals in polysci/econ theory, I deal with the real world everyday.

    My comment had to do delivering services in the most inefficient means possible…in our current healthcare system. I guess if we are going to deal in fantasy, proving them on the moon would also be more inefficient.

    Rob

    I can’t agree with you more about unnecessary trust funds. The legislature loves em as a way to hide money so they can’t spend them…or give them back. However, you will find that Hoeven has not supported the establishment of these “trust” funds.

    The Human Services increase you quote is General Fund only. 80% of the increase is due to replacing the reduced federal funding ND received due to our strong economy. The net result of the total budget impact is significantly less.

    As for my numbers, you love to call them wrong, despite my documentation. It seems that you are the one who can’t prove his numbers…when you actually ever bother to provide numbers to prove.

    Yours is an old trick, if you can’t beat em, call em a liar. Bad form old friend.

  • robert108

    If it ain’t broke, why are you trying to fix it?

    Your conclusion is based on the theory that all research and development takes place due to govt action, and that just isn’t true. In fact, the problem is the percentage of R&D that is funded by the taxpayers, not that it happens at all. We are going in the wrong direction. Our system is successful in spite of the amount of govt intrusion, not because of it.

  • robert108

    Road building is not socialism, neither is the existence of a federal reserve, neither for that
    is technology infrastructure.

    Like National Defense, some things are better done by govt; they are few in number, and should be re-evaluated from time to time. It should always be a cost/benefit calculation, not for vote-buying purposes.
    In the case of taxpayer-funded tech research through govt bureaucracy, it is still proper to consider the use of that taxpayer money if it is left in the private sector. If taxes weren’t so high, more money would stay in the private sector to fund research. It would still be more efficient for business to do it directly, rather than pass it through govt infrastructure, with its tendency toward political patronage and social goals, rather than real progress. The present globalwarming crap is a prime example.

  • robert108

    As far as the globalwarming crap is concerned, it’s a solution in search of a problem. They have created the illusion of a problem, but their “solution” was predetermined when “The Communist Manifesto” was published.

  • robert108

    So …other than on a purely philosophical level, why would anybody advocate changing it?

    Again and again, I repeat that once that money is confiscated from the private sector, it is no longer available for privately funded research. Govt needs monopoly power to win, so you continue to demonstrate that truth every time you go to this particular argument. Who decides what “basic research” is, anyway?

  • robert108

    Similar to how providing a road system facilitates commerce.

    You have it backwards; demand creates supply, not the other way around. The question is whether govt is a proper way to supply an already existing demand.

  • george

    Robert

    It is apples to apples. Infrasctructure and overhead is imbedded into both sides of the equation.

    But you miss the point. This cost/utilization is happening. Government is involved and hospital’s care mandated. No matter what, healthcare costs are shifted to the private sector and the real costs hidden in the current arrangement.

    And it is being done in the most inefficient means possible.

  • george

    Robert, You are correct. Government doesn’t drive the economy, it is fed by the economy. (It actually does create jobs…government jobs.)

    That doesn’t mean government can’t facilitate job creation. Lower taxes and less regulation are two ways it can help. Tax incentives, tax credits and private public partnerships are other ways government can assist private industry in creating jobs.

    This forum was made possible by such a private public partnership. The personal computer age was largely the product of NASA working with private industry.

    COE is a private public partnership. It does not create more government jobs. It assists private industry in developing and bringing to market new businesses and jobs.

    There are two great private public partnership stories on the Fargo Forum site about technology companies that were the product of such partnerships.

  • robert108

    Carrick: Massachusetts didn’t move from being agrarian to industrial because of govt programs. The same process can take place anywhere the market is allowed to operate. Govt programs are still about vote-buying.

  • robert108

    I don’t believe I said anything against individual independence?

    Not my point. Conservatives aren’t “right wing” at all.

    For your education, the entities applying for COE grants are universities only.

    Mostly already on the public dole. Throwing good money after bad, IMO.

    Without SCHIPs, we get stuck paying for them by increased charity care which tends to be delivered through ERs instead of clinics.

    Simply from an economic point of view, which one costs the public less? You have to answer that question. Then there’s the moral aspect of providing a safety net for the irresponsible parents.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    We can produce ready-for-market ideas at a fraction of the cost that it would cost industry, and because we don’t live at the whim of some business executive (who will likely get switched out in two years, replaced by another executive with completely different priorities), and can work a problem from conception to completion (five years is a realistic period for any serious basic research to ready-for-market ideas).

    Carrick there is a place for basic research but I doubt that your model is producing ready for market ideas at a fraction of the cost of private enterprise.

    Now maybe your outfit is doing that and if so congratulations. However you’ve got to lump the successful with those programs that NEVER produce to come up with the actual cost/benefit.

    It’s not fair taking a gem out of the pile of manure and holding that out as an example.

  • robert108

    One problem. ND doesn’t elect hard core right wingers to state wide office.

    Newsflash, george: Conservatives aren’t “hard core right wingers”; the Constitution isn’t a right wing document. Individual independence isn’t part of right wing ideology.

  • robert108

    TW: Most successful people have learned to live within their means. If they want more stuff, they do what it takes to earn it. Lefties want you to live beyond your means, with someone else’s money.

  • robert108

    TW: I feel you, but the biggest problem I have with the Dems is spelled “Soros”.

  • robert108

    Lower taxes and less regulation are two ways it can help. That isn’t “helping”; it’s just getting out of the way. Tax incentives, tax credits Once again, this is less govt. Just don’t take the money out of the private sector in the first place. and private public partnerships Absolutely not. It simply obstructs the power of the private sector in the name of vote-buying. are other ways government can assist private industry in creating jobs. The best thing govt can do it to stay out of the private sector altogether.

    This forum was made possible by such a private public partnership. Our tax money is wasted by this kind of thing. Everything govt “does” is paid for by the taxpayers. The personal computer age was largely the product of NASA working with private industry. Jobs and Wozniak? I don’t think they worked for NASA, and the Xerox design group was a private business.

    When govt intrudes on private business, everybody except the political class is worse off. Govt money is just like heroin; once you get some, you want more and more, but it destroys you in the end, no matter how good it feels in the beginning.

  • george

    Hmmm? You and some of your “gang” seems to be slipping into name calling as an alternative to serious discourse…sycophant, neo liberal. Must say I have never been called liberal before.

    For your education, the entities applying for COE grants are universities only. Of course to get the money, they have to have $2 of private money for $1 of public money. The private entity can’t apply independently. And the entire program has had $40 million in appropriation, not $75 million. Only part of that has been awarded and only a fraction has been spent.

    SCHIP is the rare public program that actually makes a difference and is appropriate. Kids have no defense against parents who do not provide for them. Without SCHIPs, we get stuck paying for them by increased charity care which tends to be delivered through ERs instead of clinics. We, business owners who insure our employees, get stuck for the tab through higher premiums. Keep in mind that I am not talking about the ridiculous expansion of SCHIP proposed by the Dems, but rather the current program and a modest expansion that takes care of kids whose parents really can’t afford health insurance…not the parents themselves or families that can but have messed up priorities.

    Robert

    I don’t believe I said anything against individual independence?

    Whistler

    I am interested in your 24% budget increase figure.
    Is that annually?

  • robert108

    I guess you haven’t heard of the land-grant system.

    False. You should know that all the money confiscated to fund that system came from people who were already successful. Like I said, govt is a follower.
    Again and again, you ignore the truth that the worth of govt activity can only be accurately judged by what would have happened without the govt taking over. Govt has to work in a monopoly environment, since it cannot win in a truly competitive situation.

  • george

    Robert

    Are you saying most of the private businesses are already on the dole? Really. If so, which? Do you even know what business we are talking about?

    I would venture you are wrong. ADM, Cargill and Phoenix International are just a few. By the way, Phoenix employs several hundred NDSU engineers.

    As for which form of care is cheaper, there is no question. If we can keep routine health care out of ERs, it is vastly cheaper.

    Government has thrust hidden health care costs on private payers like me. Medicare reimburses only 70% of a provider’s cost. Charity care is borne 100% by private payers. Private insurers are forced to make up the difference.

    The same is true for “charity” health care. Government mandates that anyone coming to a hospital must receive care. Clinics are exempt. If the can’t or don’t pay, it gets put on the non government payer sources.

    By providing SCHIP for truly needy, we not only make health care cheaper by driving it to the clinics, but we also give the kids the care they need and make the costs transparent.

  • robert108

    I pay the insurance premium because that is what I have to do to be competitive and attract the kind of employees I need to be successful. No one forces me to.

    Have you tried higher compensation? Of course, the govt biases the situation by allowing employer-paid healthcare premiums to be from pretax dollars, rather than the aftertax dollars for personally-purchased healthcare. Just another example of market distortion by the govt.

  • robert108

    As for which form of care is cheaper, there is no question. If we can keep routine health care out of ERs, it is vastly cheaper.

    You need to prove that with numbers, not rhetoric and slogans. We will always need to pay for ERs, so it’s not a matter of getting rid of them; it’s a matter of the marginal cost of ERs as compared to the usual waste and fraud of govt programs.

  • george

    Rob:
    1. I was responding to robert 108′s assertion that I needed an econ education. I get it everyday…old school style.

    2. I believe this is the second time you have implied I was on the ED dole. I have never needed ED money, but I don’t begrudge the state using it to assist business. I also think it is dangerous for you to diss people getting state support.

    3. You will find all these funds were eatablished before Hoeven became Governor. The last was the Oil and Gas Trust Fund. All tax revenues above $100 million go into the Trust Fund instead of in to tax relief or the General Fund. It was passed in the 1999 session.

    4. If you truly do care about all tax dollars, then you should be glad. The 2007-09 budget increased total Human Services Dept spending an average of 6% per year. When federal dollars comprise 75% of the Human Services budget you can’t just cherry pick one piece of the data that fits your POV.

    5. Just because you say it is so, doesn’t make it so.

    You keep running down my facts, but I have presented credible evidence in every case. It would appear you don’t care for fact, but rely on platitude to rebut all povs out of sync with your.

    I have my problems with both the gov and the GOP leg, but I also give them credit for doing a lot of things right. You can’t seem to get that far.

    robert 108:
    I pay the insurance premium because that is what I have to do to be competitive and attract the kind of employees I need to be successful. No one forces me to.

    Whistler:

    I noticed you reverted to using only 40% of the total state budget again. The actual total state budget has grown only 4.1% So much for fair and balanced bloggers. (might be an oxymoron)

    Actually, the tax credit plan is fairness at its best. The only reason a small town or rural area would get less back is that they paid less in the firt place.

    It is also the most transparent. By bypassing the local government and giving the $$$ directly to the people, you force the local government to own up to what their real taxes are and they can’t use the cut to hid ocal increases. I only wish the $1.2 billion the state gave the local governments were as transparent. It accounts for almost 50% of local government spending and yet tax payers in cities, counties and school districts never see the benefit or the real cost of their local government.

    Why a property tax tax credit? Simple. Property owners pay more taxes than anyone else. Lots more.

    We agree they need to do more and I believe that they will.

    By the way, they didn’t spend the estimated $600 million 2007-09 surplus on more programs. Keep in mind the state doesn’t have it yet. It is just accumulating during this biennium because the legislature wasn’t confident it was for real. In the next session it will be in the bank and not an estimate.

    This group has always been reluctant to spend or cut until it was proven real. The Dems spent on the hope of increased revenues back in the 80s and got burned.

    As for the fact basis of my numbers, I quoted NDSU tuition. I pay my son’s tuition so I know. You quoted UND, which those liberal arts blood suckers probably did increase tuition. I am still trying to get system wide numbers and will gladly share when I do and I invite youto do the same.

    As for you, weren’t you the one quoting errant tax rankings. I have repeatedly provided source links for my numbers. Several on this blogs attempt to discredit my facts with little more than plaitutdes and overheated rethoric.

    I am not sure I am the one with a credibility problem.

    While not perfect, I have a hard time calling this group big government Republicans. They rank 37th in the nation in spending per capita. I have seen Jeff Delzer spend two hours grilling a Human Services budget analyst over the purchase of fax machines. Their reputation has been tight to the point of ridiculous. Sure, the dam broke this time, but the long view is something quite different. Hence the 4% growth rate over 8 years.

  • robert108

    For your education, the entities applying for COE grants are universities only.

    I was referring to this statement by you, george.

  • robert108

    We aren’t talking about work performed within the government infrastructure itself (“government labs”), but rather work billed out to university research facilities.

    There is govt infrastructure cost involved in confiscating the money in the first place, then there are administrative costs involved in its distribution.
    One of the Big Lies about govt programs involves not counting those costs when calculating “efficiency”.

    We can produce ready-for-market ideas at a fraction of the cost that it would cost industry…

    I doubt this; there are a lot of costs involved in govt infrastructure that are usually not counted in such calculations. I doubt that any govt run enterprise can function as efficiently as one that has to make a profit.

  • robert108

    I also pay $200,000 a year in healthcare premiums for my employees. I know something of what I am talking about.

    If this is true, you have already been taken over by the govt, and you just don’t know it. Do you have any choice in whether or not you pay for the healthcare of your employees? What would you pay them in wages/salary if you didn’t have to pay that cost? What I write isn’t theory; it just isn’t the reality that you have allowed to be imposed on you. You have my condolences. You are trapped in a system, and it has colored your vision of reality. Govt controlled everything is not the only possibility in this world.

  • robert108

    Obviously it presupposes the existence of an economy.

    My point exactly. You are half right about infrastructure. Once it is created, it functions as you say, but its creation is a matter of supply and demand.
    When I was in High School, a developer built the streets for a new housing development in the West San Fernando Valley, but it sat unbuilt for about thirty years, because the developer had assumed a demand that wasn’t there at the time. At least taxpayer money wasn’t wasted on that project. Your simplistic idea of infrastructure just doesn’t fit reality. It’s a little more complicated than you make out, and IMO should be left to market forces in the vast majority of cases, at least to the extent of the reason for its creation. Using taxpayer money might be appropriate once demand has been established by the market. Your example of the printed circuit board company was an example of bad management and possibly undercapitalization to fit the situation on the ground. They should have allowed enough money to pay for relocation of the necessary workers, if there were none in the area. After that, locals would retrain to fill the demand. Demand first, then supply.

  • http://www.freerepublicans.com/ FreeRepublicans.com

    Or how about the Dems who wanted $500 million more spent.

    George forgets that the GOP had a super majority in the house and a majority in the senate. Which means that those crossover numbers where well over $500 million was wanted to be spent, a LARGE number of “Republicans” had to vote with the Democrats.

    Don’t forget that people like the Republican House Education CommitteeChair voted for the Democratic $180 million education plan (instead of the $80 million Republican plan). When the Republican House Education Committee Chair votes with the Democrats, it makes it mighty hard to blame the Democrats for doing all the spending.

  • robert108

    Carrick: I think there’s a fundamental error in the idea that govt can “create jobs” by redistributing tax money. If you take the law of supply and demand seriously(and I do), then it stands to reason that the economy is supplying the jobs necessary to meet the demand, both in general and in particular. Given that, the reality of govt “job creation” programs is to address unemployment, not to add to economic growth. In addition, there is a pretty hefty overhead cost in any govt program, so a lot of the money confiscated gets siphoned off by the govt infrastructure, and doesn’t actually create any jobs.
    For those reasons, I very much doubt that govt ever creates any productive jobs at all, in excess of the cost to the taxpayers.
    If the govt really wanted to help economic growth, they would cut their spending, thus allowing lower taxes, along with eliminating anti-business regulations.

  • george

    LATE BREAKING NEWS

    Just calculated the average annual general fund budget increases by the Hoeven admin and GOP legislature since JH took office (2001-09)….6.5%!

    Total ND budget increased an average 4.1% during the same period.

    Source: http://www.legis.nd.gov/fiscal/biennium-reports/60-2007/budget-analysis/legislative/pdf/legislativebudget/execbudcomparison.pdf

    Again, perspective people.

  • george

    Once again you fail to tell the real story. The Centers that received additional money did not get full funding in the original grant. Coming back for the rest of the grant was always the plan and expected. By the way, Centers only get money when they secure twice as much from the private sector. Please at least try to be accurate.

  • robert108

    I think government funding of research and development can result in benefits for taxpayers in general.

    The real question is whether the benefits are worth the cost. You have to run the numbers.

  • http://sayanythingblog.com robport

    George, you’ve posted a few good things the Governor has done. These fail to make up for the amount of tax dollars the Governor has left tied up in the government and the massive increases in state spending he has presided over.

    24% increase in general fund spending this last session. A 48% increase in Human Services spending since 2000, and that’s over and above the rate of inflation. It’s a 70% increase overall. And that is not one-time spending, pal, and you know it.

    And as for this:

    We just passed the largest tax break in history…a $120 million dollar income tax credit for property tax payers like me.

    I own property too, and this was baloney. Giving me some of the income tax dollars I overpaid back to compensate for the too-high property taxes I’m paying while doing nothing to solve the reason why those property taxes are high in the first place (local spending?)? That’s not tax relief, that’s a shell game designed to make taxpayers think they’re getting tax relief.

    But keep blowing smoke, George. Maybe somebody out there will buy what you’re selling.

    Hoeven is a fiscal liberal. He’s keeping mountains of tax dollars tied up in the government. How much are in all those 40 or so special funds we have?

    I was talking to a legislator today who told me that he thinks there may very well be some chamber in Bismarck where Hoeven and his people go swimming in all the money we’ve got tied up.

    Free Image Hosting at allyoucanupload.com

    We’re on the verge of a tax-revolt in this state, and while Hoeven has managed to stay above the fray so far, he’s going to have to start taking responsibility.

    Carrick,

    From my perspective, all jobs are good jobs because they all develop the economy. As competition in the labor market grows, wages go up. As they go up, higher-skilled jobs are created.

    Now we can skip steps and try to go right to developing high-tech jobs, but I don’t see that kind of growth as being sustainable. For one thing, the businesses it brings in don’t tend to stick around. For another, the number of tax dollars we spend per job created is a terribly inefficient amount. And then there’s the problems with corruption and cronyism.

    I think your perspective is different because you work in a field where you get grants from the taxpayers all the time. And maybe that’s a good thing, I don’t know, but as a taxpayer in North Dakota I’m telling you that the money they’re spending on these centers of excellence would do better back in our pockets.

    I don’t care about bringing some super-duper research facility here. You give me more of my money back, my quality of life goes up.

    That’s the way I see things, and I don’t see it as “staying backward.” I call that sustainable economic development.

  • http://sayanythingblog.com robport

    Unlike you who deals in polysci/econ theory, I deal with the real world everyday.

    Right, George. Because you’re the only one here who runs a business or has any “real world” experience.

    FYI: I built and run a $15 million business.

    I wonder how much tax-funded economic development loot you’ve gotten.

    However, you will find that Hoeven has not supported the establishment of these “trust” funds.

    He’s the governor, and his party has been in power for a long time now. If he does oppose these funds, he sure hasn’t done much to prove it.

    The Human Services increase you quote is General Fund only. 80% of the increase is due to replacing the reduced federal funding ND received due to our strong economy. The net result of the total budget impact is significantly less.

    Spin, spin, spin. When it looks bad, blame it on someone else.

    Again, under Hoeven we’ve seen about a 70% increase in Human Services spending, which is about 40% or so over and above the rate of inflation. That’s a ridiculous amount of money, and it is not all the fault of the federal government. Whether the money is coming from the feds or from the state, those are still my tax dollars. Why isn’t Hoeven doing something to change it?

    As for my numbers, you love to call them wrong, despite my documentation. It seems that you are the one who can’t prove his numbers…when you actually ever bother to provide numbers to prove.

    George, since your first comment here you’ve done nothing but deride and insult anyone who dares question Governor Hoeven. You’re a sycophant, and when you do try to rebut numbers you get taken to the cleaners.

    You probably think you’re right in your own head, but you’re not. Economic development in this state is a sham. Governor Hoeven is a tax-and-spender who loves big government. Nobody ever questions him on these things, but that time is over.

  • http://sayanythingblog.com robport

    I don’t know. I just think we’re shooting ourselves in the foot when we give the politicians millions of dollars and say “create jobs.”

  • http://sayanythingblog.com robport

    Going back up a bit:

    Robert, You are correct. Government doesn’t drive the economy, it is fed by the economy. (It actually does create jobs…government jobs.)

    That doesn’t mean government can’t facilitate job creation. Lower taxes and less regulation are two ways it can help. Tax incentives, tax credits and private public partnerships are other ways government can assist private industry in creating jobs.

    Why is it that the Hoeven administration is willing to spend tax dollars on public/private partnerships, but not promote less regulation and lower taxes? Especially when we know, for a fact, that tax cuts and deregulation spur economic growth much more quickly?

    And especially when we know that private-public partnerships are a recipe for cronyism and corruption? Why should some local board of politicians (or unelected private commission members) get to decide which businesses my money goes to?

    Why isn’t that money better off in my pocket so I can decide which businesses it goes to?

    Carrick, I think perhaps you and I have a fundamental disagreement on the role of government in economic development. To be honest with you, public/private partnerships scare me. I’ve seen them go corrupt (look up Websmart on wikipedia, and also think about the wisdom of giving politicians millions of dollars and then telling them to pick businesses to get it), they have a spotty track record (in North Dakota there’s Websmart, Point 2 Point, etc.), and it smacks of central economic planning.

    Plus, it is terribly inefficient. We are spending much more in tax dollars then we’ll ever get back in tax revenue from jobs and businesses that may or may not make past 4 or 5 years.

    Because the type of businesses that need to start with economic development money don’t typically have a very sound business model.

    Also, Carrick, don’t be fooled by the dollar values involved. North Dakota only has approximately 650,000 citizens which is about the size of a city in most states. $10 million is a lot of money in this state.

    Every two years our legislature is opening its session with hundreds of millions of dollars in surplus, and rather than the citizens getting anything back for what they overpaid we’re seeing more and more of it tied up in these public/private partnerships (if not spent in massive increases in general fund spending).

    I see this as alarming.

  • http://sayanythingblog.com robport

    Again, Carrick, it’s not so much the funding of research and development itself I’m griping about but rather the way in which we’re doing it. We have seen many, many businesses move into North Dakota to take advantage of economic development money, only to pack up and leave once its time for them to start standing on their own.

    What does that do except waste the taxpayer’s money?

    It’s also difficult to pay high taxes, watch the legislators spend massive budget surpluses every session, get no tax relief and then see things like the Centers of Excellence suck up more tax dollars than they were supposed to get to begin with.

    And then there’s the corruption and cronyism, which I think is a bigger problem with this stuff than anyone wants to realize. But that’s what happens when you throw around tax dollars like this.

  • http://sayanythingblog.com robport

    Hmmm? You and some of your “gang” seems to be slipping into name calling as an alternative to serious discourse…sycophant, neo liberal. Must say I have never been called liberal before.

    The name-calling is unfortunate, but unfortunately this is the internet and my blog, and here everyone gets their say. Even name-callers.

    You can engage them, or ignore them.

    As for this instance, however, I don’t think calling you a “sycophant” or “liberal” is name-calling. It’s just fact. You support Governor Hoeven who is expanding the size of our state government exponentially, and you dismiss any and all criticism of him without any consideration for the facts. You spin and you distort.

    So that’s why that stuff is accurate.

  • http://sayanythingblog.com robport

    By providing SCHIP for truly needy, we not only make health care cheaper by driving it to the clinics, but we also give the kids the care they need and make the costs transparent.

    We’re already providing SHCIP to the truly needed. John Hoeven and the Democrats want to expand it to people who don’t need it.

  • http://sayanythingblog.com robport

    I’m not testy, George. I deal with people criticizing me on this blog all day, every day. I handle angry comments, angry emails and (occasionally) even death threats.

    Believe you me, a factually-challenged Hoeven sycophant is no trouble to me.

    By the way, you love to whack at Hoeven, but where are you on the legislature who spent millions more than the governor requested. Or how about the Dems who wanted $500 million more spent. How about Sen Tracy Potter the former ND Socialist Party official. How about Rep. Jasper Schneider, the most likely Dem Insurance candidate. You seemed to have forgotten them.

    I’m just one guy, George. If you want to write about those things, get yourself a reader blog and plug away. If it’s good stuff I’ll link from the front page so it gets plenty of exposure, because you and I most likely agree on that stuff.

    But it seems to me that the bigger problem in the state is a Republican governor who acts like a liberal, not a bunch of liberals who act like liberals.

  • http://sayanythingblog.com robport

    Carrick, I think government funding of research and development can result in benefits for taxpayers in general. The problem is that here in North Dakota we’ve gone overboard with that model. All over the state we have these private committees or panels that get millions of taxpayer dollars, and they then use those millions to decide which businesses get government help and which don’t.

    That’s not fair. It is central economic planning and it has no place in America. It especially has no place in North Dakota given the level of taxation citizens here have to put up with.

  • http://sayanythingblog.com robport

    I am accurate. These centers aren’t self-sufficient as billed, thus they’re failures.

    But spin away, George. Can’t let anyone criticize your man Hoeven.

  • http://sayanythingblog.com robport

    Just calculated the average annual general fund budget increases by the Hoeven admin and GOP legislature since JH took office (2001-09)….6.5%!

    Total ND budget increased an average 4.1% during the same period.

    Only a liberal would see those numbers as good. If they’re even accurate. You’re becoming notorious for bad numbers, George.

    Were those budget increases necessary? And why is all that money being tucked away into “special funds” and not given back to the taxpayers.

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