Going Clean in Colorado

Denver Mayor John Hickenlooper may have the right idea (as well as a fun name to say) regarding his campaign commercials in his bid to become Colorado’s next governor. While the ad doesn’t really say much about what he’ll do if elected, it is critical of negative campaigning and may resonate well with voters. The spot was recently featured on The Fix.

Special Session: Budget “Cliff” and Governor’s Plan

Everyone on every side of the state budget debate is framing their remarks around a metaphoric “cliff” that the state may find itself standing at the edge of in two years. Three inter-related matters make up the primary elements of this fiscal cliff:

1) the availability of reserve accounts (surplus balances) come 2011
2) the extent that the federal American Recovery and Reinvestment Act (ARRA) of 2009 monies are used for ongoing programs or services for anything other than one-time expenditures
3) the rate at which the economy recovers and accuracy of the revenue projections/forecasts

Taking all of this into consideration, Gov. Daniels’ budget proposal is sound. The uncertainty of the economic recovery makes his line in the sand – maintaining no less than a $1 billion reserve balance – a prudent standard and an important step in avoiding a cliff. (See historic reserve balance data going back to 1976.)

The governor’s use of stimulus money only for things that would not add to the base operating budget is also essential to avoiding a freefall. His plan includes a significant amount to be directed to capital projects; although new construction adds to operating costs over time, the projects still fundamentally constitute one-time expenditures. And much is directed to immediately funding needed repair and rehabilitation of higher education facilities – a good way to apply one-time federal monies without adding costs down the road.

What the governor’s plan is being criticized for is building state K-12 education funding around the federal stimulus money specifically designated for schools with a high population of disadvantaged students (Title 1 monies). The proposed school funding formula results in a 2% overall increase. But critics point out that it is only 2% if you count the extra Title 1 – money that would flow to mostly urban schools, regardless of the level of state support.  It is suggested that this funding approach actually creates a cliff for those schools by making them dependent on that additional money.

This debate requires consideration of the big picture. First, these schools generally have declining enrollments, so their funding can’t be expected to rise steadily. By operation, the Title 1 money goes to schools that have more special needs, so the money will go to cover those needs. Even though state revenues are plummeting, the state portion of the school funding is still increasing, albeit by a very modest 0.5%. It is worth noting that most states are having to reduce education spending. So a 2% increase (0.5% state money; 1.5% federal stimulus money) is reasonable in these tough times. The final item below plays into this discussion too.

According to the projections, state revenues are expected reach a level by 2012 that will be sufficient to bridge the funding gap that will exist when the Title 1 money goes away that year. (See links to May forecast and Gov. Daniels’ budget presentation.)

Unfortunately, yes, schools are probably going to have to make do with smaller increases than anyone prefers.  Only “probably” because of another component of the governor’s budget proposal: if the economy recovers faster than the revenue forecasters projected and the revenues end up exceeding the projections, 50 cents of every unanticipated $1 will go directly to education funding; the other 50 cents goes to build back up the reserve balances.

While the governor’s plan may not be perfect, it is thoughtful and fair, and is well designed to prevent the state from heading toward – or off of – that financial cliff.

Gov. Daniels Gets More National Ink

In a commencement speech at Butler University Saturday, Gov. Mitch Daniels offered his usual straightforward candor regarding issues du jour. The popular political blog of Chris Cillizza, The Fix, reports on the Governor’s take on baby boomers and the future — and speculates on his political future, as well:

Indiana Republican Gov. Mitch Daniels delivered a condemnation of the "Baby Boomer" and a call for generational change during a recent commencement address at Butler University, a speech drawing considerable national attention as the Republican Party continues its search for fresh faces and new leaders.

"As a group, we have been self-centered, self-absorbed, self-indulgent, and all too often just plain selfish," Daniels said in the speech. "Our current Baby Boomer president has written two eloquent, erudite books, both about . . . himself."

Daniels went on to offer a sweeping indictment of his own generation’s financial and moral selfishness, concluding: "It’s been a blast; good luck cleaning up after us."

He offered a brighter prospect for the graduating class, however, insisting that great generations (with apologies to the man from South Dakota) often follow mediocre ones and noting that: "True greatness can only be revealed by large challenges, by tough circumstances. And your opportunities for greatness will be large."

Safety Worth Celebrating

Safety is something that can easily be taken for granted – that is until something happens.

When an employee died on the job at Strick Corporation in 2002, the Monroe-based company knew change was needed. “The incident rate was almost a recordable one (to OSHA) each day” prior to that fatality, notes Cheryl Pike, plant nurse and safety coordinator.

Impacted by the death of a co-worker, employees started volunteering for the company’s safety programs. The company’s culture changed for the better. The transformation at Strick Corporation earned the company INSHARP (Indiana Safety and Health Achievement Recognition Program) status in 2008.

Today, Strick was honored at the 2009 Governor’s Workplace Safety Awards for its overall safety program.

Joining Strick in earning awards at the Indiana Safety and Health Conference were:

  • Turner Construction Company of Indiana LLC in Indianapolis – education and outreach by a construction company award
  • Bayer Healthcare LLC, Product Supply/Diabetes Care facility in Mishawaka – education and outreach by a large company award
  • Futurex Industries Inc. in Bloomingdale – education and outreach by a medium company award
  • Monsanto Company, Windfall Soybean Production division in Remington – education and outreach by a small company award
  • ERMCO Inc. in Indianapolis – innovation by a specialty contractor award
  • Indianapolis Power & Light Company – innovation by a large company award
  • Emerson Industrial Automation, Emerson Power Transmission division in Monticello – innovation by a medium company award
  • DSM NeoResins+ in Frankfort – innovation by a small company award
  • Kimball Electronics and Advanced Rehabilitation, Inc. in Jasper – partnerships award
  • Cerrowire Inc. in Crothersville – small company safety award
  • Solid Platforms Inc. in Portage – specialty contractor safety award

The 2009 Governor’s Workplace Safety Awards are presented by the Indiana Department of Labor, on behalf of Gov. Mitch Daniels, the Central Indiana Chapter of the American Society of Safety Engineers and the Indiana Chamber.

Poker, Waves & the Three E’s

If I were a poker player, I would declare “All In!”  It is in this spirit that I share a few of the thoughts/theories that have been bouncing around in my head over the past seven months:

  • Since early May, I have felt that Barack Obama would win Indiana and the White House. There you go, it’s now officially in print forever that I am going against over 40 years of Presidential history in Indiana.
  • There are two waves going on in Indiana:  One is the Barack Obama wave and the second is the Mitch Daniels wave. Both have run superb campaigns, taken advantage of massive fundraising efforts, pushed the use of internet campaigning to new heights and are clearly agents of “change.” To me, the bigger question is: “Which wave — Obama or Daniels — will carry the statewide, Congressional and House races across the finish line?”
  • First time voters WILL be the determining voter group in several races on the ballot from President down to State Representative. The amount of attention focused on this new group has been considerable, but this group deserves even more discussion than it is receiving.
  • The 3 E’s — emotion, enthusiasm and excitement — explain the three points above. To me, the biggest story of this election cycle arguably is what has driven so many people, especially first time voters, to vote.  Campaigns and issues driven by these 3 E’s are hard to measure, hard to stop and attract many new people. This applies to political, corporate or charity campaigns. Remember: Emotion drove millions of people to donate money, clothes and even blood following disasters like Katrina and 9-11, and it is emotion, enthusiasm and excitement that are driving people to vote in this election right now.

I believe a wave of significant importance is now taking place in Indiana and the country. I will save my thoughts on how the Indiana House races will be impacted for a posting closer to the election.

Where in the World is Edgar Whitcomb?

When in Rome (Ind.), do as Edgar Whitcomb does…

I enjoyed this article about one of our living former governors. After serving as governor from 1969 to 1973, Whitcomb has found peace outside of politics and now can be found basking in the serenity of southern Indiana.

Whitcomb’s house in Rome is a mid-19th-century roadhouse that was in gross disrepair until last year when he hired an Amish family to restore it.

Rome’s history is similar to Whitcomb’s in that it started ambitiously — they named the place Rome, after all, and made it the Perry County seat. Rome stayed small, though. The county seat was moved to Cannellton in 1859 and finally to Tell City.

Whitcomb also spends time at his cabin a few miles outside Rome on a bluff overlooking the Ohio River. The nearest neighbor is 2 miles away. A good bit of the mile-long driveway doubles as a creek bed, rocky and uneven.