Mayoral Control: The conversation continues

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerSchool Board President Malik Evans and CGR are portrayed as being on different sides of this “mayoral control” discussion. Yet we agree that community opinion matters. The response of CGR was to conduct a poll with our partner, Metrix Matrix. At a forum televised by WXXI last Thursday, Mr. Evans suggested a referendum. But it amounts to the same thing—what the community thinks about this issue is important.

We’ve had two helpful forums on the topic. After the City Administration postponed several planned public meetings, the Rochester Business Journal’s forum was the first. School Board Commissioner Van White and Rochester Teachers Association President Adam Urbanski spoke against the proposal. In addition to remarks from Mayor Duffy, panelists Margaret Raymond from Stanford, Kenneth Wong from Brown, and Dennis Walcott, NYC’s Deputy Mayor for Education, spoke in support.

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Mayoral Control Survey Informs the Community and Empowers Decisionmakers

Posted by & filed under CGR Staff, Democrat & Chronicles.

Kent GardnerReaction to CGR’s survey on mayoral control, conducted with partner Metrix Matrix Inc (MMI), has reinforced what the survey revealed: Our community cares deeply about this issue and the education of our city’s children. The only prior test of community sentiment was a relatively small telephone survey of parents. Yet parents-to-be, grandparents, resident property owners, renters, and resident business owners all have a stake in the effectiveness of the schools. And all can vote in Board of Education and mayoral elections.

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New York Politics: Rod Serling Meets Lewis Carroll

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerMy Chicago-area brother & I engage in a friendly competition over whose political culture is more entertaining. It is a contest I would like to lose, although my hopes have been dashed in recent months. Even with former governor Rod Blagojevich competing in the new season of The Apprentice (begins Sunday!), New York is winning handily. The best capsule summary goes to Baruch’s Doug Muzio who dubbed New York politics “Rod Serling meets Lewis Carroll.”

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Cutting the Budget’s Gordian Knot

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerThe financial problems of the nation and many large states—California, Illinois, New Jersey and certainly New York—present a problem that is challenging economically and hazardous politically. Since it’s impossible to separate the economics from the politics, it is truly a Gordian knot – rather than untying the knot, Alexander the Great sliced the Gordian knot in two with a single, bold stroke of his sword.

The Congressional Budget Office forecasts the federal deficit to decline from about $1.5 trillion in 2009 to $608 billion in 2014, then rise to nearly $800 billion in 2020. This is a hefty deficit, particularly when you consider that we had a surplus as recently as 2000. Then consider that the cumulative public debt, which currently stands at $7.5 trillion, is expected to nearly double by 2020 to $14 trillion.

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Status Report: High Deductible Health Plan

Posted by & filed under CGR Staff.

Kent GardnerEarly this year I wrote about the high deductible health plan (HDHP) and health savings account (HSA) being offered to CGR by Excellus. A look-back seems timely.

Five of us at CGR signed up for the HDHP and HSA combination. With our experience as background, nearly the entire staff selected this option for the coming year. Why?

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Health Care Legislation: Only Half a Reform

Posted by & filed under CGR Staff, Rochester Business Journal.

Jim FatulaKent GardnerCongress is edging closer to passing legislation that restructures health insurance. The Senate and the House are debating compromise bills within their houses, after which a conference committee will seek to reconcile differences between them. With these details still under debate, we conclude our six part series on health reform with a few observations.

Public Option. If private insurance plans are part of the problem, then one solution may be to offer another option, a health insurance plan that is run by the government. At this writing, a “public option” seems likely to survive and become part of the final legislation. The debate over the public option has highlighted a fundamental social tension between those who fear too much government and those who fear too little (discussed in the first column in this series). Like Goldilocks, each of us wants the balance to be “just right.”

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我们是第一 (We’re number one)

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerRemember “mutual assured destruction?”  MAD was the dominant principle of the Cold War:  The Soviet Union would not attack us as long as we retained the ability to retaliate.  They might surprise us and obliterate New York, Chicago, Los Angeles, and Washington, but our nuclear subs and hardened silo-based missiles would respond in kind, turning Moscow, Leningrad, Kiev and Vladivostok into historical footnotes (if mankind survived to write any more history).

A kind of financial “MAD” became our consolation in the 1990s as China continued to accumulate foreign exchange, the vast majority of which was in dollars (or financial assets like bonds that were priced in dollars).  At present, China’s holdings of dollar assets top $1.5 trillion, says the Peterson Institute for International Economics.

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Cash for Clunkers: Good Politics Trumps Good Policy – Again

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerI sent my Nissan Quest to the crusher for a lousy $4,500.  Yes, I could see into the engine compartment without opening the hood—but it ran like a top! Now the feds will have their way with my car. Some minion will replace its engine oil with sodium silicate and fire up the unsuspecting engine—until it seizes up, never to run again. It’s the automotive equivalent of “hung from the neck until dead.” What have I done?

As cars fly out of the showroom and the dealerships are clogged with eager buyers, many of us are questioning this bit of Washington wisdom.

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Multitasking, Washington Style

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerWhen I was a child, my grandparents hosted a gift orgy on Christmas Eve—the whole family gathered in Chicago and every aunt & uncle brought something for ME. My cousins and I had eyes only for the pile of gifts under the tree.

Remind you of the American Recovery and Reinvestment Act (ARRA)? The ARRA orgy begins with the reasonable assumption that the economy needs a healthy dose of Christmas cheer. Congress and the Administration joyfully decreed that we could save the world and spend money, too. Every lobby and interest group joined in the happy chorus. Presto! Christmas in February.

Yet “killing two birds with one stone” only works if you’re a very good shot. ARRA is riddled with Congressional multitasking, using the occasion of the stimulus (and its virtually unlimited spending) to implement specific social goals.

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