Audit Blasts Shelley

The state’s chief auditor issued a blistering report Thursday about Secretary of State Kevin Shelley’s use of federal election funds, documenting numerous examples of shoddy management, lack of oversight, improper spending and highly partisan activities in a program set up to be non-partisan.

The problems have already delayed the state’s ability to spend millions in federal Help America Vote Act Funds, the Bureau of State Audits said, and might require California to return some of the money it has spent.

“The office’s disregard for proper controls and its poor oversight of staff and consultants led to questionable uses of HAVA funds,” a letter in the report from Elaine Howle, the chief auditor, said.

“As a result of these practices, the office runs the risk that the federal government may conduct an audit of the office’s implementation of HAVA and its use of federal funds and may require repayment of some, if not all, of the HAVA funds used to pay certain employees and consultants.”

In one instance, the audit said, a law firm hired by Shelley, a San Francisco Democrat, spent some of its time writing speeches for the embattled secretary of state and conducting other activities that had nothing to do with voter education or outreach.

The chair of the Joint Legislative Audit Committee, Assemblywoman Nicole Parra, D-Hanford, said the panel will conduct at least one hearing on the audit, on Jan. 11. Parra said she expected Shelley to appear and answer for the agency.

Just plain wrong

Wrong, wrong, wrong. From the Miami Herald:

A group of Miami-Dade County commissioners want to use taxpayer money to defeat a citizen's initiative that would create an independent airport authority -- a referendum that many civic leaders say is needed to keep politics out of lucrative airport contracts.

At a hastily called commission meeting Thursday -- only advertised a day in advance -- five commissioners agreed to try to persuade the other eight board members to fund a fight against one of the most influential business groups in the county.

Commissioner Dennis Moss, who represents South Dade, called for the special meeting at the end of Tuesday's commission hearing, saying the board cannot wait any longer to plan its counteroffensive.

''Certainly those people opposed have the same right,'' Moss said. ``The business community paints itself as having a corner on the market on morals.''

I think the people visiting https://www.chaturbaterooms.com have the same right to spend their own money -- but not to use public funds to fight to maintain their fiefdom over the airport.

And it does appear to be a fiefdom:

Thursday's meeting came two weeks after a powerful civic group cobbled out an ordinance to strip commissioners of their power to control the fate of contracts at county airports, including Miami International Airport. MIA has seen its share of problems in recent years, with its former construction chief imprisoned and questionable contracts awarded to lobbyists who contribute to commission races.

Add a generous portion of personal indignation:

Some commissioners say they consider the proposed referendum a personal affront. Seijas said someone recently approached her to sign the petition.

''The verbal message was . . . disrespectful and offensive to anybody that was elected,'' she said.

Said Moss: ``If the BCC [Board of County Commissioners] is as corrupt as we're made out to be, by now someone would have been indicted, someone would have gone to jail.''

Hopefully, those options aren't yet ruled out.

Economic development tax incentives

He's correct. The factors he mentions -- particularly the nature of the workforce and access to http://www.jasminlive.mobi/ markets -- are critical in identifying potential locations for a new firm or branch plant. I've read other research that indicates that state and local tax systems play a role in the initial screening also. States that have taxes that are way out of line with other states are more likely to be eliminated early in the process.

When the firm has whittled the potential locations down to the final short list of two or three is when taxes and incentives start playing a more prominent role. Ideally, the firm has shortened the list to communities between which it is indifferent; they are all equally sutiable -- or nearly so. The incentives that result from the final competition do no more than tip the scales between close competitors.

So why doesn't research show an effect? Well, actually some research does show an effect of taxes and incentives on location decisions, but it is of small magnitude. Furthermore, under the competitive theory described above the incentives come into play at the end of the process after the most suitable locations have been identified -- mostly on other criteria. Finally, some researchers suggest that since most communities are offering similar incentives and aren't necessarily showing a lot of savvy in how they negotiate, it is hard to pick out the incentive effect from among all the other factors.

So why do local governments keep offering incentives? Wouldn't they be better off if they just concentrated on providing efficient, reasonably-priced public services? Yeah, probably. But there are several reasons why it is hard for them to quit.

First, there are political considerations. Once a town has been selected as a finalist for a new branch plant, the local officials don't want to be seen as not trying to land it. What if they refuse to offer additional incentives and "lose" the plant to another community that does offer them. Politician's have a low tolerance for accepting blame. In most areas they'll catch much more flack for offering too little in the way of incentives and not being selected, than they will for winning the plant with a too-generous incentive package.

So communities (actually their officials) find themselves in a sort of prisoners' dilemma. They would probably all be better off if they didn't offer specific incentives. But if incentives offer even a small chance of tipping the balance in your favor, it's to your advantage to offer them -- especially if the competing communities don't. Consequently, they all tend to offer them.

There are some economic theories that somewhat justify the offer of incentives as a rational (if not necessarily wise) strategy for local governments. The one that I find most convincing has to do with the notion the local property taxes on business capital exceed the value of the benefits to business of the public services they fund.

I don't think that's too controversial; it seems to be fairly widely accepted that residential development doesn't generate enough additional tax revenue to pay for the services it consumes. Someone else must be picking up the slack.

In this case, the theory suggests, mobile firms (and there is no firm so mobile as one that hasn't yet selected a location) are able to use the competition between communities to bid their tax burden down to the benefit level. From the community's point of view this can be good, so long as two conditions are met:

1) the incentive was instrumental in tipping the firm's decision, and

2) they don't drop the firm's tax burden below cost of service.

Together, I think the benefit tax theory and game theory offer a good explanation of why industrial location incentives happen -- although they fall short of justifying them as a "good thing" in the sense that we are all better off with them than without them.

There are other economic theories -- such as agglomeration theory -- that I find less compelling as a justification for incentives. There are also theories that lie more in the political science field, mostly having to do with interest groups, with which I'm not yet really familiar. So my views may change as I get further in my research. But today, based on what I've learned so far, this seems to me to be the most compelling explanation of why incentives happen.

I Am Resolved

I know that my blogging is very boring to most jasminelive readers. I really don't mean to be boring, but let's face it, I am. One of the most significant changes I could make in my life, that would have an effect on everything else I do, what I feel about myself, and how others interact and perceive me, is to lose about 50 pounds. There is no way I should weight more than 210#; my 'ideal' weight, according to the government is 187#. I now weight 255# and am very fat. I've written about losing weight before and have even managed to diet down to 245# this summer; but the big weight losses I really need still elude me. I have though about it and I have a plan. I'm going on Adkins for 3 months and will stick to it. It works for me, but I recognize that its not a long term healthy diet. I just need to have its restrictive discipline to get down in weight. Its one that has worked for me before, and I know that I can stick to it. I've not been able to stick to the more 'healthy' low fat diets recommended by skinny people. --Isn't it interesting that skinny/fit people espouse low fat diets, but then formally fat people who have conquered their weight problems swear by Adkins. I really believe that fat people have cravings for fat, and therefore, diets that restrict fat are not working for them. Its clear to me that since the inception of the low fat diet in the late 70's, America has gotten nothing but fatter. I wonder if there is a correlation ...

Times, They Are A-Changing

I picked up the keys to my new rental pad today. Its on the beach, and I have a nice view of the surf from my balcony. I can hardly wait to move in there. I'll have all of my stuff out of the current pad tomorrow, and then cleaning should be done by Sunday at the latest. Then I can start emptying the boxes and setting up everything in the new place on Sunday. Its going to be fun living 35 yards from the beach! I'll get some pictures up soon!

Rest Day Is Over ...

My rest day was yesterday. I'm going to hit it hard today with my workout. I'm eating the last few shards of food in my house, so I can start my diet after lunch today. I think I'm going to go with atkins for 2 weeks and see where that leaves me. I'll post weekly on the weight, probably Monday.

While all of this is going on, I am also moving. I have to move to a cheaper place, so it this weekend. Fortunately, I have a friend coming down to help me. I don't have all that much stuff, just mostly work stuff from my office.

Home Sweet Home

I'm happy and sad about being home. While I enjoyed being away, I missed being at my own place. I spent time with my family, but I know I could (and probably should) have spent more time with Mom. The time we did spend together was nice, and we did talk about things that needed to be discussed, but I regret that we weren't able to just hang out. This trip home made me more aware of the changes that have taken place within my family.

I was also able to spend a few hours with my friend Dana (am I allowed to link to your site by your name, or should I keep the link labeled as it is now?). It still leaves me a bit shocked when I remind myself that it had been close to ten years since we'd last seen each other. We met up last night at IHOP and caught up over hot chocolate, ice water, non-intimidated lemon seeds, and a very loud bathroom. I had such a lovely time and am already looking forward to seeing her again next time I'm in town.

My drive back to Phoenix was quick and mostly painless. Many of you will not be shocked to know that the car is in need of yet another compressor. This will be #4 in the past two years. At this rate, I can pretty much count on needing a new one every six months. Luckily, Dad knows someone at Pep Boys who will replace the it free of charge - both the part and labor. While I'm aware that this problem most likely keeps reoccurring because I'm going to Pep Boys in the first place (the use remanufactured parts), I can't not take advantage of the pricetag of free-ninety nine. However, it is my goal to have a new vehicle by year's end, so with a bit of luck, this won't be an issue for too much longer.

Miss Amy stopped by a while ago for some late-evening chatting on her way home. That girl always knows how to put things in perspective. She's given me a lot to think about, and given the pessimistic thoughts I've been having over the past couple days, it couldn't have come at a better time. Thanks, bebe... you rock.

Finally, my Dallas Stars pulled off a crucial 4-3 victory in OT tonight. I was driving for the majority of the game, but I got home in time to see the game-tying goal and the remainder of the game. Had you been nearby when Ott scored just over two minutes into OT, you would have thought I was being attacked or something with all the screaming I did. I haven't been that excited about a goal (or a game, really) in a very long time. Even though we head back to Colorado on Wednesday, I think the Stars will come away victorious with the huge momentum they gained tonight. Damn, I love hockey!

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