Lake County Fiscal Rangers

FiscalRangers Call to Action: STOP Gov. Scott from Applying for SNEAKY, Liberal Federal Grant

Update 1pm Wed - added more details from Kathryn Sutherlin about the high amount used for administrative expenses and lying about budget numbers.  Also, the email for Gov Scott doesn't work, and you have to wait a long time for Scott's office to answer the phone.  Update 4pm:  We added the official press release from the California Office of Early Learning which says it was SIGNED yesterday, but another source says it might not be a done deal.  Keep tuned.

Tavares, FL - Oct. 19, 2011 - Today, Wednesday, is the SURPRISE Deadline for Florida State government to apply for A STEALTH, SNEAKY Federal Grant that will over regulate one Florida industry, Child Care. I am asking you, based upon the request of a credible Lake County volunteer and the inforamtion below, to CALL Florida Governor Rick Scott TODAY to HALT any action for Florida to APPLY for the grant.  Phone call and email details are below.

The $100-million grant proposal ( Race to the Top - Early Learning Challenge ) from a Florida State agency, the Florida Office of Early Learning, is an application for a STEALTH grant using Nancy Pelosi type hidden agendas and lack of details to hide another liberal program in the Child Care area that creates excess bureacracy and restrictions that hurts small Child Care businesses in Florida and makes government bigger. 

Basically, it is a stealth move to over-regulate private child care businesses in Florida without regard to costs, and expand a Florida government agency due to excessive regulation oversight requirements, which sounds like SOCIALISM to me.

The funds come from President Obama's Federal Race to the Top "Early Learning Challenge" program, and details of the Child Care related grant were not released to the industry or public until THREE days ago, which is why there is so little notice for this action alert, and is the single biggest reason Governor Scott needs to refuse to sign the grant application today.

Here are some of the negative effects of the Grant proposal and why you should ask Governor Scott to reject the Grant proposal AND fire the Government employees who championed this absurd grant request without adequate notice to the public or child care industry:

- The Grant application is HERE (see bottom of page) and it is several hundred pages of gobbeldegook and regulatory nonsense - why allow this to continue - Kill the Bill (or Grant).   Just reading the grant application can make you go blind, and is reason enough ask Governor Scott to reject this stealth grant proposal that was hidden from the public and child care industry until this last weekend.  People at the Florida "Office of Early Learning" agency filing the grant application with such disregard for the public to know the details should be fired.

- The grant gives State Agencies the authority to define child care “quality”, increases government spending, government size, and government regulatory authority while completely disregarding the needs of families, children and childcare business.  (That is the opinion of local Lake County Child Care firms).

- The grant ignores market based solutions and implements government control at the State level over even minor details, which is a veiled attempt to roll out socialism by increasing the agency size with many regulations to replace work done by the private sector.  In some places, they call this nationalizing an industry.  By forcing small businesses out of business, they allow larger, favored  businesses and non-profit agencies take over the child care industry under government controls.

Scroll down further to read the specific effects of the grant proposal on the Child Care industry.

In summary,

- Do you want the Florida State government using Federal grant money to specify how a State agency dictates how private business operates?  Didn't Governor Scott just eliminate regulations over many businesses?  In this case, the grant would specify how Early Learning Coalition (ELC) groups would dictate how private Child Care facilities operate in Florida, including review of marketing programs, internal financial documents, etc?   This is a power grab using funds from the Federal government that grow State government and reduces state rights.

- The grant proposal details were hidden from the public and industry until three days ago, and the Grant application deadline is TODAY.  That is a Nancy Pelosi trick and is one big reason not to approve the grant.    Even Lake County provides their weekly meeting agenda one week before, with most details on their website (not all, but they are improving).

- Do you want Florida State to grab Federal funding which then requires excess regulations without recognizing ANY of the added cost of regulations.   Remind Governor Scott he is against regulations on business, which alone is a reason to turn down this Stealth grant.

- If you read the details of this grant, doesn't it frighten you about how the Federal government is trying to ignore State's rights and take over the economy, one business category at a time.   By putting small businesses out of business due to excess regulations, government will grow in power, which is what the liberals and socialists love.

Note:  We called the Florida Office of Early Learning and the manager who signed the proposal, Melody Jurado at 850-921-3180 (but had to leave a message for the "application lead" to call me back to discuss this.  No response was received as of 11am, Wednesday.

Florida Governor Rick Scott's office is asking providers, parents & citizens for their immediate input…contact the Governor’s Office – CALL TODAY:    850-488-5000   THE DEADLINE IS TODAY, Wednesay, Oct. 19!  CALL NOW TO OPPOSE  the "Race to the Top-Early Learning Challenge Grant"!!!!!  You can also EMAIL your comments or use our points above to a special email address for Governor Scott just for this issue:   OEL_comments@oel.myflorida.com (Note:  This email does NOT work - don't use it but return here for any updates) .   DO IT NOW - tomorrow is too late. 

Vance Jochim

Lake County Fiscal Rangers

Chief Fiscal Watchdog

Volunteers Searching for Ways to Improve Local Government Fiscal Management, Efficiency & Effectiveness

Tavares, FL 32778

Mobile:  352-638-3578

FiscalRangers@comcast.net

www.FiscalRangers.com   

Fiscal Ranger's page on Facebook

CLICK HERE to see recommended internet links related to Local Lake County government fiscal issues.

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Here is the original email I received on the issue yesterday, Tuesday from Kathryn Sutherin, a private Child Care business owner in South County.  Kathryn is also a CPA with Big-4 experience, and is on the Audit Committee of the Lake County School District, which is where I know her from.  She is very businesslike and very analytical, so this isn't a blind, emotional request.  Many people in South Lake County know her through volunteer activities.

From: Kathryn Sutherin <kathrynsutherin@aol.com>

Sent: Tue, Oct 18, 2011 9:48 am
Subject: NEW FEDERALGRANT IS INVASIVE TO ALL CHILDCARE BUSINESS OWNERS - ACT NOW

Most of this information was taken from this website: 

http://www.faccm.org/legislativeadvocacy/position-papers/   

The details of the actual Florida State grant proposal are linked at the bottom of the page.

The Florida State Office of Early Learning State Agency has developed a grant proposal for $100 million in funding provided by the Obama Administration's Race to the Top Early Learning Challenge; with a primary focus is on children that are supported by School Readiness funds. The grant will significantly change the way that ALL childcare businesses operate.  READ HIGHLIGHTS BELOW.  

Forida Governor Rick Scott's office is asking providers, parents & citizens for their immediate input…contact the Governor’s Office – CALL TODAY:    850-488-5000   THE DEADLINE IS TODAY, Wednesay, Oct. 19!  CALL NOW TO OPPOSE  the "Race to the Top-Early Learning Challenge Grant"!!!!!  You can also EMAIL your comments or use our points above to a special email address for Governor Scott just for this issue:   OEL_comments@oel.myflorida.com (Note:  This email does NOT work - don't use it but return here for any updates)  .   DO IT NOW - tomorrow is too late.

Invasive to ALL childcare business owners!

• ELC’s (Early Learning Coalitions) will have the authority to monitor ALL childcare businesses for compliance with a State Created Quality monitoring tool even though the majority of children attend private child care centers in this state and do not receive state subsidies
• Childcare business owners must submit Profit and Loss statements, marketing plans, a formal annual budget, and financial record-keeping systems so that Coalitions can grade our business and spending decisions or receive a lower rating for non-compliance.  
• Business owners will be required to track and report even more information to ELC's; to include employee pay rates, employee turnover, and reason for leaving.  ELC’s will establish “quality” level pay scales and acceptable turnover rates for childcare businesses as part of Quality Compliance Reviews
• VPK, Private Pay Only Centers and SR Centers will all be subject to Quality Monitoring mandates; to include curriculum selection.  “Quality” compliance reports will be posted on a database for consumer review, similar to DCF compliance reports. 
• Monitoring will include a 5 star rating for compliance with TQRIS.  Childcare Business Owners will not be given the option to seek private accreditation in lieu of TQRIS.  Participation is mandatory whether a center is accredited or not.  Accredited Centers will receive a 3 subject to passing on-going ELC quality compliance visits.

Childcare Businesses will no longer be able to design their business based on consumer needs.  Instead a State agency will "mandate" the definition of quality to business owners and to families/consumers.

Financial Burden placed on the Childcare Industry & Florida’s families.

• Grant Writers failed to recognize the financial burden the proposed changes will have on Childcare Business Owners already suffering from lower enrollment due to high unemployment rates.
• “Affordability” is not a priority.  The word “affordable” is used 3 times in 45,000 words Grant Writers failed to recognize financial burden the proposed changes will have on ALL families (private pay or subsidized care) when tuition rates go up because Centers can’t afford to meet new “Quality” requirements.
• The Grant grossly underestimates the financial burden on the State.   ELC’s/OEL spent almost $200 million dollars on administration/program support and quality initiatives in 2010-2011 BEFORE proposing massive expansion and quality monitoring of ALL childcare business.   The $100 million won’t cover 6 months of our CURRENT structure let alone all the additions.

Childcare business costs will increase, and family tuition costs will increase to fund increased government size, spending and regulatory control,

No Direct Benefit to Economically Disadvantaged Families – the one’s that need it most.

• Only 101,000 children of 228,000 qualifying children received SR benefits in 2010-2011.  The proposal disregards the intent of the grant and does not offer a solution for the 140,000 qualifying children that do not receive SR funds due to waitlists. Instead, the grant extends government authority over all 907,000 children in childcare statewide

• The Grant Writers disregard low SR Reimbursement Rates.  Only 70% of total SR funding (the bare minimum required by Federal Law) went to family childcare costs.  Statewide, working poor families pay an average of $90 per week in childcare care because SR reimbursement rates are 44.8% of the average market rate. 

The grant gives State Agencies the authority to define “quality”, increases government spending, government size, and government regulatory authority while completely disregarding the needs of families, children and childcare business

            VISIT FACCM.ORG TO READ GRANT DETAILS.

Your immediate feedback is required, as deadline for submission of the grant is October, 19, 2011.

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Here is a second email sent out by Kathryn Sutherin yesterday, which apparently responds to some "talking points" from the Florida State Office of Early Learning, which is the one that created the power grab proposal:

From: "Kathryn Sutherin" <kathrynsutherin@aol.com>

Sent: Tuesday, October 18, 2011 4:53:10 PM
Subject: response to ELC talking points

The Question of Voluntary

In the 58 page document discussing the TQRIS quality compliance review, the word "voluntary" is only mentioned 1 time, under "current status".  In the 58 page document discussing the TQRIS quality rating system, the word "optional" is only mentioned 1 time.  Programs not participating will automatically be assigned a Star 1.  If programs participate, they may earn a Star 2.  There is no discussion of "N/A" for non-participating.

You state "Childcare Industry Professionals Stand to Benefit"

The grant budget allocates to $77 million dollars to Contractors for "products and professional services" to develop of assessments and systems, including expansion of ELIS and a Platinum data base and train Agency staff. 

The grant budget allocates $19 million to Coalitions for administration and oversight of the grant. (Note 11). 

The grant budget allocates $16 million to a public awareness campaign on high quality learning.

The grant allocates $800,000 (less than 10% of the total budget) to providing technical assistance to programs that participate. 

You state "Increase the numbers of children learning in high quality settings"

To my knowledge, is there NO allocation and/or a specific plan to increase the number of children enrolled in SR even through according to NACCRRA, only 101,000 of the 228,000 qualifying children actually received SR benefits.  That's a long wait list.

To my knowledge, is there NO allocation and/or a specific plan to increase reimbursement rates.  Statewide, reimbursement rates for children preschool age and under are less than 45% of actual market rate and that the average working poor family would make more on unemployment than they would based on the current childcare subsidy.

Florida allocated 70.5% of 2010-2011 SR Funding to direct slot dollars, just a half a percent above the bare minimum Federal requirement.  There is simply NO room for additional support/administration costs.

Make targeted investments to increase support for childcare businesses and streamline regulation and accountability

While I love these words, I found only an increase in regulation and accountability and an increase in reporting requirements; to include an added level of monitoring via TQRIS and the stigma of a "1 Star" if I choose not to participate. 

While the grant has been a work in process for months, private providers were not given any public access to the contents of the grant until literally days before it's required submittal and only through organizations other than OEL/ELC's.  Therefore, I'm sure you can understand the concern and frustration that providers like myself have.

As you know, I believe strongly that the Early Learning Coalition of Lake County is without question one of the most fiscally responsible Coalitions in Florida.  My issue is with the State level decisions with respect to this grant.

Thank you again for the talking point but without more specifics I must oppose this grant.

KS

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Update - another email with more details from Kathryn Sutherlin received today, Wed. the 19th at about 1pm:

I get your message.  I've been swamped with calls as you can imagine.  Coalitions and OEL keep saying it's already signed but we have no official confirmation.

Heres a little history: 

SR Funding is Federal money with State match requirements that is supposed to be used for subsidized childcare (working poor afford to work).  OEL is the Lead State Agency that oversees School Readiness Funding.   A few years ago, they created another layer - Early Learning Coalitions (ELC's) .  There are 31 of them across the state.  It started out that they were to administer funds to providers and do eligibility for children but they've grown and grown and grown.  The more they grow, more money shifts from direct childcare subsidies to administration.

The State has been overseeing (barely) the "State Match" but not paying attention to the federal dollars.  Federal government looks at the federal requirement which includes minimum 70% of federal/state combined funds going to direct childcare subsidies.  That's great except no one looked to see whether OEL/Coalitions were spending either part efficiently.   ( A hot button with us at FiscalRangers.com )

To complicate matters, the State has been relying on OEL to self report the total combined SR funds received and how it's allocated.  Well, turns out OEL has consistently left off about $33.5 million in their "total".  OEL sat in front of Senate committee last month and reported that they had received $629 million and that only $6 million went to administration and $623 million went to Coalitions.  Well in truth, the total funding was $666 million, not $630 million.  OEL really spent $44 million (not $6 million) on "lead agency" quality/suppor/administration (and a TON of consulting).  In addition Coalitions spent roughly $154 million (out of the $623 that went to them) on administration/support and "quality" initiatives.  

I've got the details to almost the penny and I've been forwarding to House/Senate.  I even went up last Friday and met with a few staffers.  They're all floored, dismayed, etc.  But staffers can't stop the grant.  I'm told I shouldn't be upset because even if the grant is signed, there's a ton of opportunity to correct OEL/Coalition mismanagement through legislation this year.   Apparently, when the word "child" is in a sentence, all logic goes out the window.

I don't like politics.  It seems "winning" is based on everything but logic and public opinion.

I'll send you the spending spreadsheets when I get home.  You might find them of interest.  It's insane.

Kathryn

==============================================

These are comments from others sent to Kathryn:

I thought you'd be interested in the below response.   While I've tried desperately in a day - because government withheld the details for months - I can't get the message out Statewide.  Coalitions are sending out vague "talking points" that dispute real quantifiable facts and offer no substance.  The private providers who are already reliant on these agencies for VPK and SR funding, are fearful to respond at a State level.

Again, I would greatly appreciate any support that you and/or the Tea Party can offer.   

Thanks,

Kathryn

--------------------------------------------------------------

From: ANTHONY & BRENDA LOPRESTO <istation@embarqmail.com>
10/18

Sent: Tue, Oct 18, 2011 7:54 pm
Subject: Re: response to ELC talking points

Based on Mrs. Sutherins observations about the percentages of funding and its allocation to recipients, it appears that the Government agencies stand to benefit the most and less so for the children. I believe we have seen this pattern several times over the past couple of years in a variety of sectors across the country. It is my opinion based on the allocations mentioned that more priority is given to the "agencies" and "contractors" than to the children who need it most. Throwing money to "agencies" has not worked so well in the past. More regulation has continued to stifle many industries nationwide. Recent examples of recipients of Govt. monies have been political contributors more than qualified entities.

Several questions come to mind regarding this plan. First, how does allowing private contractors and govt. agencies to receive the bulk of the funds translate to improving education at the earliest levels? Our public schools are an example of bureaucratic waste and inefficiency. Private schools operate on much less money per student while showing a huge improvement in academic achievement as evidenced by test scores and graduation rates. Private schools, much like any private industry or business, must show a superior product or they don't stay in business. The next question I must ask, is why is the sharing of the financial aspects of a private business a concern of a regulatory agency. The only reason I can see is an effort to standardize the compensation paid to employees of childcare centers. Where have you seen that before? Look at Unions across the country and their effects on private corporations such as the auto industry, teacher unions, Municipal employees, communication industries, airline companies, and on and on. Cost for such industries have increased to the point that many of these products are either too expensive to make here and the companies must go else where to make the same product. WE cannot move our businesses elsewhere. The average parent not receiving assistance for childcare will have to absorb the increase in the cost and I can't see that happening.

 The private sector is the best judge of how to govern itself. Customers choose where to spend their dollars on any product based on the quality of the product and the service they receive. Fail to provide a quality product or service and the company will not prosper. Government agencies mandating pay, performance, and increased regulation only contributes to more or the same.

This is just a few of my concerns.

My final thought is this. A grant for the improvement of the education of children, should go to children, not to increase the size of the agencies overseeing the process. Nor should it go for increasing the further intrusion of government in the private sector. We are all struggling to maintain our business. At some point all of us may soon experience the proverbial straw that breaks the camels back.

If a grant is available, why not give it to the providers to spend directly on the children by improving the facilities, education material, or specific needs based on its geographics and the population they serve.

Tony Lopresto   -    Imagination Station

 =======================================================

Press Release from the Florida Office of Early Learning"

Mel Jurado - - Director FOR IMMEDIATE RELEASE OCTOBER 19, 2011

CONTACT: JACKIE SCHUTZ (850) 488-5394

Florida to Submit Application for Race to the Top

Early Learning Challenge Grant

Tallahassee, Fla. – Today, the State of Florida will submit its application for the Race to the Top Early Learning Challenge grant and is one of four states eligible for the highest award amount totaling $100 million.  This grant is reflective of Florida’s vision in developing a world class education system and will help provide Florida’s children with a foundation to achieve valuable jobs in the global marketplace.

The Race to the Top Early Learning Challenge aligns with the commitment Governor Scott has made to education.  It is a plan that infuses resources into Florida’s early learning system, makes a positive investment in Florida business and prepares Florida’s children for school and life success.

How the Challenge Grant Works:

• Serving High Risk Children

The Challenge Grant partners with private businesses to meet the needs of high risk children. Utilizing demographic data, areas of historically high risk will be targeted.  Childcare providers serving high risk children will have the option of participating in the process. Childcare providers will also have access to mini-grants to build capacity for delivering services to high risk children. 

 

• Administration

Early Learning Coalitions will administer the process in local areas and will be held accountable for how funds are allocated and utilized. Childcare providers will receive funding through mini-block grants.

 

• Measurable Results

The Office of Early Learning will monitor progress towards desired outcomes and spending to ensure positive results for children and support to small businesses.

The Challenge grant is in line with Governor Scott’s Commitment:

• Participation is optional                                                                                                      

No childcare business in the State of Florida will be forced to participate in this process.   It’s an optional benefit to strengthen the valuation of businesses. 

• Conservative Principles at Work                                                                                       

Smaller government and localized solutions are the backbone of this approach.   This leverages the strength of the private sector to provide localized solutions to serve at risk children.

• No strings attached                                                                                                 

If the grant package comes back from the federal government with new required regulation or constraints with how Florida spends the money, we will not accept it. 

• No new business regulations                                                                                            

The grant application does not impose additional regulations on businesses, but will hold providers and Early Learning Coalitions accountable for spending grant dollars wisely. 

• Streamlining of existing regulations                                                                                 

The Office of Early Learning, Department of Education, Department of Children and Families, and Department of Health working collaboratively to eliminate duplicative, cumbersome approaches.

• No legacy spending

 There will be no commitment to additional state resources currently or in the future. 

• Smaller government and localized solutions

The grant will be implemented in local communities across the State of Florida, utilizing our existing framework.  State government will not grow.

The Office of Early Learning has garnered wide ranging support for this proposal. Business leaders including Publix, Walt Disney World, Fifth Third Bank, Northern Trust, Royal Caribbean Cruises, Baptist Health, Bank of America, Blue Cross and Blue Shield of Florida, as well as Florida’s Association for the Education of Young Children, Florida Family Child Care Home Association and the Redlands Christian Migrant Association realize a strong and vibrant early learning system serves as the foundation of our education system. 

###

 

Are Ethics of Elected Officials and Government Improving in Lake County?

Tavares, FL - July 7, 2011 - Ethics may slowly be improving in Lake County...

So there was this high level official in the State of New York who forced internal staff to issue a $100,000 grant to a firm that had hired his wife as a consultant.  But, he got caught, and was fired after the IG started their investigation.

And, we have read about Orlando officials on a Board steering large service contracts to their own firms.

Gee, it reminds me of a local Lake County official who I was told funneled campaign funds to a firm that employed his wife.   But, knowing Florida, maybe it is legal here?

Or, the rumors I hear about another elected official who got a house or land for much less than the owner paid for it?  Perhaps for ruling on important issues?  Of course, that could only be a rumor from political opponents...

Or, the elected official who works full time for another government agency, but still takes time off for election campaigning and elected duties.   Taking time off from your own business is one thing, but doing it while an apparent full time government employee is another thing.  We don't know if there are offsetting salary reductions to make up for the time off. 

Or the elected official who got a $1000 campaign contribution from an industry association just before turning down a plea by local residents to fix a regulation that eliminated oversight of a Lake County business belonging to the association.

Or, the campaign flyer that supported three candidates for an office, and was mailed to many Lake County residents without specifying who paid for the flyer, a violation of election laws.  One complaint has been filed, resulting in a fine for the direct mail provider. 

Or, the election candidates who only file manual candidate reports that can't be looked up online, then the elections office tells visitors that no reports were filed until they were repeatedly asked to find file folders with the manual reports.  Then we find that details supporting expenditures or donations were not attached to the reports.

Or another elected official who has hired several key individuals all from the same church and did not advertise their positions for competitive applications from possibly MORE qualified professionals from the public at large.  Additionally a relative of a prior office holder was hired without disclosure or competitive interviews for a professional position.  The proper process should have been an open advertising and objective hiring process to ensure the best candidate was hired, not from a favored organization (of any type, even a college alumni group).

Or, the government employee adminstering a grant program, and lots of relatives and government employees got the subsidies without the general public knowing much about the program in order to apply.  And, favored vendors received service orders without going through the official procurement process for vendors.

Or the Lake County Commissioners that held all secret meetings to negotiate Fire Fighter union wage agreements without any public hearings, and then did not even furnish a clear executive summary of the wage or benefit changes during the final and only public meeting where the agreement was approved.   In contrast, the School District DOES make union bargaining sessions public, but they obfuscate what is being discussed and don't clearly describe all the changes when approved by the Board.  Gee, do you think the elected officials are trying to hide what they decided?

However, some things are improving. 

The Lake County Commissioners just issued a new grant program, "GoGreen",  funded with Federal funds.  And, they said County employees are not eligible until the public gets informed and has a chance to apply first for the available $825,000.  The idea is to ensure that County insiders don't lock up all the grant funds before the County residents have time to apply. So, check out the link above if you want to apply for a rebate on energy efficient appliances, but DO READ all the rules and make sure there are still funds left before you run out and buy the appliance.   Notice:  I buried this notice here to reward you guys who actually read our reports.

And, I heard this week about one person filing a complaint with the State ethics committee about an elected official secretly processing a contract JUST BEFORE the last elections without involving the other officials on an elected Board. 

And, there are the hearings by Governor Rick Scott's Commission to Review Hospital Districts, and all the weaknesses in their operating methods. 

And, after two years of suggestions, the Lake County School District did create an independent hotline to file complaints about internal problems, possible fraud, etc.  The number is on the big sign in the front of the School District headquarters building.

And, occasionally, people come to me with this stuff, and I add it to my list of tasks...

But, unlike at least two other Florida Counties, we don't have an inspector General in Lake County to investigate these issues.   Yet.

If you are a government employee, official or citizen with information on ethical issues like the above, let me know at FiscalRangers AT comcast DOT com .

vj

http://blog.timesunion.com/capitol/archives/73986/ig-ag-deputy-comm-improperly-steered-100k-to-not-for-profit/

 

 

We Launch Campaign to Get Serono Labs officers Prosecuted

We normally focus on Lake County or related local government issues.

This issue doesn't really affect most regular Lake County Fiscal Rangers readers, but if you want to see details of what can be done with social media to get government to actually prosecute wrongdoers, instead of just paying a fine, read on.

I am separately involved in research related to a new "CCSVI" treatment for multiple sclerosis - MS (I don't have it).   This week, the US Dept. of Justice (DOJ) posted a press release about a drug company Serono Labs, that had paid unreported bribes and other expenses for many doctors to market an MS drug called Rebif. The press release said bribery, money laundering and kickbacks were involved to get doctors to push Rebif to MS patients.   Most MS drugs are REALLY expensive and many prescriptions are paid by Medicare or Medicaid, thus the Federal involvement.

DOJ issued a press release that they had settled with Serano paying a fine of $40-million, but NO officers were prosecuted.   This has upset the MS "community" evidenced by many postings on MS related Facebook pages around the world, especially since Serono was the subject of an earlier prosecution that resulted in them paying a $705-million fine.  So, they weren't naive.

Since I understand the Federal investigations systems, I have launched a campaign via Facebook to generate MS community, public and Federal Congressional pressure to have an investigation why DOJ did not prosecute anyone.   I even called the specific US Attorney's office that settled the case, and they would not explain why there were no prosecutions.  I am learning more details, and the US Dept of Health & Human Services Inspector General's office told us that the CEO and other officers may be subject to being added to an "exclusion" list which means they cannot be affiliated with any organization that receives Federal payments for Health services (i.e. Medicare reimbursements to clinics, etc.).  Another wrist slap - they can still collect parachute funds and retire without problem.

So, if you have further interest, you can visit my separate Facebook page "CCSVIUSA" and in the Notes will be a document containing the Serano Labs case details as it unfolds.   The interesting thing is that using Facebook Page Notes, you can post an article on Facebook that goes out to selected groups and pages, and mine went to about 130,000 MS patients.

Read the note here:

https://www.facebook.com/note.php?note_id=160462850683248  

vj

Dick Morris: Inflation is Coming, and I Agree Obama & Democrats Should be Blamed

The Federal government now borrows $40-BILLION per week to pay interest on all the debt they have approved.  When someone says there is a $13-TRILLION or so deficit, that means the Feds have sold debt and agreed to pay interest to GET all that money.  OR, they PRINTED new money which increases the money supply, which causes inflation.  Obama and the Democrats have done both.  And, as interest goes up, I am betting much of the debt has cost of living escalators, so interest due to China and other buyers of US bonds and debt instruments will rise as interest rates rise.

I lived through the last great inflation bubble when President Jimmy Carter ran up costs and implemented all those liberal programs that run up inflation.  That was when I thought I had a GOOD DEAL buying a house at 9.5% interest rates, and then the rates went up to almost 20% due to inflation.

Recently, I have watched Obama implementing many inflation causing practices, including "printing money", and excessive borrowing money to fund all his social programs.  Now, inflation is starting to hit us, not only due to unrest in oil producing countries, but subsidizing food crops like corn to be used for subsidized fuel like Ethanol.  Af, food prices are leaping.

To be fair, however, if you do research, you will find that Republicans, including Ronald Reagan also ran up debt - but he did it to finance defense spending so as to bankrupt the soviets, which he did, thus Russia's economy  collapsed, the Berlin wall came down, and the cold war ended.  Then Bill Clinton came into office, and he apparently understood economics, and reduced the federal deficit to almost nothing.  Then it started going up again and Obama has hit new heights in deficit spending which creates debt.

So, below is one of many emails generated by political pundit Dick Morris on the coming inflation.  So, each time you pay more for goods and services, be sure to thank the current Democrats and Republicans who also voted for the spending programs for ignoring economics.

Several inflation aspects will hit local governments.  One is

Ohio Schools Business Manager to be Sentenced for Bribery, Embezzlement & Theft

I add this article as a case study of one type of corruption possible in local government or School Districts.

In this case, a School District Business Manager apparently was able to embezzle funds from the sale of school owned construction equipment.

vj

AKRON -- Former Maple Heights schools official Steve Canepa, who most recently worked for the West Geauga schools, will be sentenced Monday in federal court on Cuyahoga County corruption-related counts tied to his former Maple Heights job.

Canepa, 43, of Mantua, was charged with three counts related to bribery, and one each for theft and mail fraud.

He is admitting the theft charge but pleaded not guilty when he was first charged with all five counts. He will appear Monday before U.S. District Judge John Adams.

His attorney, Mark Marein, said Canepa only committed one of the five crimes he is accused of.

Prosecutors claim Canepa embezzled proceeds from the 2008 sale of a boom lift used for construction and owned by the Maple Heights school system.

Canepa resigned from West Geauga on Aug. 23 but had been on medical leave since May. Canepa cited personal matters for his departure and thanked the school board and others for the opportunity to work in the system.

He had resigned from Maple Heights schools in 2009.

 

Updated: City of Tavares to Fire Three Employees for Hacking Emails of top staff

UPDATED 5PM:   I added a couple of war stories about a similar experience I saw while in Baghdad, Iraq.

Is this too good, or what.

It seems the IT Director and the network administrator at the City of Tavares hacked into management's emails and read them.  Then, the department assistant used the information to send out anonymous emails slamming the city.   

Recently, there were articles in the press about the Tavares, City Manager, John Drury, requesting a salary increase, and apparently the articles were based on the anonymous emails sent out.

Somewhere, someone got suspicious and the Administration hired a consultant to track down who was using the inside info, and they...

A FiscalRangers.com Perspective on the BP Oil Spill

Point 1:  Never forget all oil drilling is to meet the oil demands of US and other country consumers and our demand pushes them to take risks to fill our demand for oil.

Point 2:  Never forget that "BP" is a BRITISH firm, not American, and they have a terrible drilling safety record, compared to other oil firms.  I will discuss that later.

Point 3:  Never forget that BP and other firms were drilling in risky, high depth locations because US Democrats, liberals and environmentalists refused to let them drill in safer, lower depth locations near shorelines like is done near Santa Barbara & Long Beach, California, and they have also reduced oil firm ability to drill onshore, which is even safer.   There have been hardly any ONSHORE drilling catastrophes, so it is much safer.

Background:

In the 1980's, I lived in Southern California and worked as one of 10 Internal Audit group Directors at ARCO (Atlantic Richfield), a very well managed oil company with a headquarters in Los Angeles, plus operations near New Orleans and the Alaskan Pipeline.  I traveled to an offshore oil rig near New Orleans, Coal operations in Denver, the Alaska pipeline in Alaska ( including two weeks in Prudhoe Bay), as well as a refinery in Oregon's coast.  I was in charge of audit quality control for all audits, and later moved to the Oil & Gas audit group before leaving for another position.  I audited refinery and other contracts, and one audit of a $400-million Alaskan pipeline supply contract resulted in finding so many management mistakes that ARCO did not renew the contract and wouldn't engage the firm again for at least 15 years.

ARCO was a VERY well managed firm.  The industry used their standards for measuring how much oil flowed through pipelines.  The industry group that owned the Alaska pipeline asked ARCO to MANAGE the entire project because of their management skills.  ARCO also was a leader in establishing methods to prevent damage to the environment, and had a whole group who focused on Alaska pipeline construction methods to prevent environmental damage.   When Congress passed an "excess profits" tax on the oil industry because oil, for the first time, was over $30/barrel,  I reviewed all the efforts they implemented trying to get definitions from Congress on what the law meant, and how to calculate the tax.   They couldn't get answers from the Federal agencies, so they set aside a reserve, which was later attacked by Congress for being insufficient.  Congress never mentioned that they never defined how to calculate the fines until several years later.

Thus, we were all proud to work at ARCO and they were an American company with high work standards and professionalism.

Unfortunately for ARCO, they were purchased by BP in 2000, thus I suspect many of their safety and other standards were dropped by BP.  BP apparently still uses the ARCO brand and their AM/PM stores in the West Coast.  In my opinion, things would be a lot different if ARCO had acquired BP, instead of BP acquiring ARCO.

BP - the company

BP is BRITISH.   I also worked separately after ARCO for a construction materials company that was owned by BRITISH firm for eight years.  The Brits were very class conscious, and the Brit CEO that was put in place for our American holding firm wouldn't even have lunch with the Americans.  The British have an entirely different way of doing business.  They don't have regulations we have in the US.  At the time I was at that firm, England did not have anti-trust regulations.  When we were having problems with a competitor selling below cost in Houston, the Brit CEO said why didn't we just get around a table with them, agree to split up the market and set prices at full margin.  He was so totally out of touch with US management practices and the fact that such "collusion" was a violation of anti-trust regs that we had to send him to a two day presentation by our law firm on US anti-trust and other restraint of trade regulations.

Later that same firm was caught up in hostile takeover battle between our UK parent company and another UK firm. BOTH of them made most of their money from diamond mines in South Africa, and invested funds into basic industries like aggregates, etc.    The US firm I was at was finally bought by an Australian firm, who didn't know the Brit firm that bought us fired the HQ, all the plant accountants, etc. to make the short term earnings look better to a purchaser who was from Australia.   It took them more than 3 years to recover and break even due to the administration and accounting systems being gutted by the Brit firm (known as a vulture investment firm).

Safety Record of BP

A recent TV new article showed that BP had a terrible US safety record, and over 700 safety incidents had been reported for them vs US and other firms that had UNDER 10 incidents.   In my opinion, their lack of safety practices indicates that the Brits DO NOT CARE about US safety and ethics, only profits.

Here is a quote regarding BP's safety record from Wikipedia (which may not be totally accurate):

BP was named by Mother Jones Magazine as one of the "ten worst corporations" in both 2001 and 2005 based on its environmental and human rights records.^[65][66] In 1991 BP was cited as the most polluting company in the US based on EPA toxic release data. BP has been charged with burning polluted gases at its Ohio refinery (for which it was fined $1.7 million), and in July 2000 BP paid a $10 million fine to the EPA for its management of its US refineries.^[67] According to PIRG research, between January 1997 and March 1998, BP was responsible for 104 oil spills.^[68] 

And, here is a link to a UK newspaper article about BP's safety problems BEFORE the oil spill.  It talks about a letter from two US Congressman with the following quote:

In that letter, dated Jan. 14, 2010, Reps. Henry Waxman, D-Calif., and Bart Stupak, D-Mich., noted that the company's efforts to cut costs could imperil safety at BP facilities.

And, HERE is a NY Times article on BP safety screwups, including huge refinery explosions, etc.

Go ahead, do a search on "BP oil safety record" and see more.

\My Perspective:

- The safety record of offshore drilling should not be attacked due to BP's practices - they are the problem, not the entire industry.   News reports have discussed that BP took more risks (ie to reduce costs) than other firms may have.

- British firms still consider foreign operations to be "colonists" to be made use of for profits, and little else.  I would not be surprised that they are much more cautious in techniques used in the UK versus other countries.

- British leaders mostly come from private schools that push a class ethic, thus they don't consider non-private school graduates as equals.   They pretty much sneer at the US education system.  Thus if they don't have respect for Americans, they won't be as careful in their work practices.  "Colonist" operations in non-UK countries are meant to generate profits, not goodwill.

- Clearly, BP probably dropped many of the ARCO safety practices, or did not continue them.  BP was always "British Petroleum" when they purchased ARCO, so they may have even fired or closed down entire ARCO departments and continued their existing, lower quality control standard practices.  The huge volume of safey incidents indicate that.

- I personally would boycott BP gas stations which are mostly in the Eastern US, and ARCO stations on the West Coast, but not be mad at other oil firms.  They have much better safety records.

- Remember that the leaking BP oil platform was operating in VERY deep water BECAUSE US Democrats and Environmentalists refused to let them drill onshore or near shores at more safe depths for drilling.  Thus the oil leak can also be considered to be the result of the US public still wanting oil, but suppliers had to drill in risky depths due to restrictions implemented by Democrats.   Drilling near shorelines at low depths and onshore are much less risky than where BP and competitors were forced to drill to meet US demand for oil.  

- Democrats and liberals continuously follow their "bible" on activist techniques from Saul Alinsky.  He says "never waste a good crisis" to use as the basis to get wanted regulations.  Beware of the Dems now trying to use this oil leak "crisis" to justify reduce oil drilling and running up more debt and taxes to subsidize "clean" energy like solar panels, etc which are not as economically feasible as oil.

Vance Jochim

Are You Angry at the Florida Sunrail Boondoggle - then read this

Florida isn't the only State with railroad boondoggles.   I lived in Southern California where they spent billions on commuter trains that are extremely costly.  It would have been cheaper to give each rider a new car.

And Florida taxpayers are mad at legislators for passing the $600-million plus railroad boondoggle called SunRail, although there are even more rail projects around the state to reward the firms who paid lobbyists to bribe legislators to get approvals.

So, here is a link to a story about a similar railroad boondoggle in Fairfax County, Virginia that is further along.   This is a website to fight the rail plan, and the link is to an article analyzing all the hidden and unknown costs.

When will we elect politicians who do not accept campaign bribes to pass such projects?

vj

Clout of Tea Party grows vs Republicans or Dems, According to Rasmussen Poll

A major political polling firm, Rasmussen,  has published a study that indicates the Tea Party groups have much more clout in the minds of voters than you might think.  Here is what they said:

Survey of 1,000 Likely Voters
December 4-5, 2009

Suppose the Tea Party organized itself as a political party. When thinking about the next election for Congress, would you vote for the Republican candidate from your district, the Democratic candidate from your district or the Tea Party candidate from your district?
Democratic	36%
Tea Party	23%
Republican	18%
Not sure	22

However, the study above is misleading, because the REAL Tea Party folks do NOT intend to be a separate party, and many Tea Party followers consider themselves Republicans, as we explain below.

Baltimore Mayor Convicted of Embezzlement

One of the reasons that some elected officials get tied up in financial fraud is a tendency of entitlement after they have won or have been in office awhile.

I call this a tendency to confuse social confidence with result oriented competence.  A results oriented elected official obtains satisfaction from accomplishments, but a visual image or power oriented official obtains satisfaction from what they get when in office, and sometimes anything goes.

So, here, the Baltimore Mayor, Sheila Dixon, was convicted of embezzlement for SOLICITING gift cards from local developers "for the needy" and