California Leavin, on any given day! 

Seems the Mamas and Papas 1960's hit 'California Dreamin' could be modified to reflect the exodus of business and citizens to lower tax states according the latest rankings in ALEC's 5th annual 'Rich States, Poor States' recently issued report. Add in the stunning news today that California Governor Brown has revealed the state's budget deficit for this year has nearly doubled in 5 months to 16 billion, with his massive tax increase solution and it is obvious that more California businesses and job seekers will be heading out of the Golden State in search of a more business/job friendly environment. 

As the 'Rich States' report points out, high tax states are not doing well, while low tax states are booming, which brings us to Oregon. The Beaver state ranks 45th this year, worsening from last year's ranking of 43rd. The effects of raising taxes on the job creators and corporations in Oregon from the effects of Measures 66 &67 is clearly taking it's toll as our state has lost jobs over the last two months and each state revenue forecast is miserably short of predicted income tax revenues. Yet, the unions here are gathering signatures for another round of tax increases that will only make the situation worse, sort of putting Oregon on the path of following California's death spiral. If you add onto higher taxes in Oregon the coming 'taxmaggedon' when the Bush tax cuts expire on January 1, 2013, plus the new ObamaCare taxes that kick in at the same time and you have the perfect storm here that is happening in California today, with capital, business and talent leaving the state for greener pastures. 

All of this points to the need for Oregon to lower tax rates to stimulate growth as Oklahoma did in 2010, with the impossible to dispute success of it's effects on job creation and increased tax revenues. In Oregon,  voters may have an opportunity to eliminate Oregon's 'death tax', which the 'Rich States' report points out is one of the most economically damaging taxes a state can have, if it makes the ballot this fall. While an important step in the right direction, reducing Oregon's income tax must also follow soon thereafter if our state has any hope of being competitive amongst other states that have figured out that low taxes and less regulation create wealth for all, rather than poverty for most. 

Unless California realizes this fact, California Dreamin will be relegated to it's place in history as a hit song and not a reality for millions who desperately need to live the American and California dream. 

        Oregon Government's Fake Hiring Freeze

Well it seems that the Governor's hiring freeze is not really much of a hiring freeze after all. The Salem Statesman Journal reported that 1,931 state workers have been hired since the Governor's announced hiring freeze, with well over 350 being permanent positions. Since Oregon's revenue projections continue downward, why is the state hiring any new state employees at all?

Since the recession began in late 2007, state revenue projections have dropped by 4 billion dollars, yet Oregon's public pension system PERS (already underfunded by 16 Billion) added nearly 5,000 new public employees to it's rolls. Most of these come from the expansion of the Oregon University System, though the table shown in this story by the Oregonian citing the left leaning, big government loving PolitiFact group, shows a massive increase in non university state workers in 2007-2008  budget from the previous budget, culminating in a peak in 2009-2010 budget, with a reduction this last year. 

Now it seems, the hiring splurge continues, in spite of the Governor's announced freeze, which seems to be oriented towards the Department of Human Services and the Oregon Health Authority, who are coincidentally implementing the Governor's Health Care Transformation plan and ObamaCare provisions. 

The question remains: Why is the Legislature agreeing to grow Oregon government when our economy is faltering and Federal government money to fulfill the Governor's and President Obama's big government programs may not be continued in the future?

            Now Medicare pays for Yoga classes!
            Are politically correct groceries next? 

So the national debate on ObamaCare's mandates has now reached a new high, or low if you prefer. CNN reports that Medicare is now paying for Yoga classes to help reduce heart disease. It seems Medicare's bureaucrats think older Americans can't afford to do anything for their failing personal health (after years of irresponsible eating/lax lifestyle) without we the taxpayers paying for it, even though they can get free yoga classes, watch for free on TV or buy low cost videos. This is the same non nonsensical argument the Obama administration is advancing with the recent 'contraceptive' mandate, in that some woman can't afford birth control, so even religious employers must provide it.

This issue was brilliantly dissected in a WSJ editorial today in a humorous manner as it puts forth the idea that coffee is an essential component to healthy living that will reduce health care costs, as well as yoga, massage, health club memberships and salad bars. 

If Medicare deems that yoga classes are part of reducing heart disease under the program mentioned in the CNN article, then is it a stretch to imagine that they would also begin subsidizing politically correct groceries for those same seniors? The rationale is much stronger for a plant based diet being far more effective at reversing heart disease than yoga to reduce health care costs, so why shouldn't we taxpayers pay for that also using Medicare's logic?

Any bets on when Medicare announces they'll now pay for the purchase of plant based, politically correct food for seniors.     

CAGW Report: Food Stamp Expansion and Fraud

Citizens Against Government Waste has it's latest report out on food stamp expansion and fraud in America. It seems that one in seven Americans are getting SNAP (food stamp) benefits, which is a substantial increase from previous years. In Oregon however, one in five Oregonians are on the public dole in SNAP, including many college students. 

Oregon has done so well at signing up more of our population (780,000 people living here) than most other states, that we received a five million dollar bonus from the Feds in 2011, after receiving over a 2 million dollar bonus in 2010. In fact, Oregon's aggressive marketing programs (made easier by the Obama administration's loosening of eligibility rules) have lead to an 60% increase in food stamp recipients in our state since 2008. 


But don't expect the slowly improving economy to lessen those who are dependent on government for their food, because the Feds have given Oregon a waiver to make it even easier to sign up for food stamps online without having to be interviewed! Does this make it easier to commit fraud like these folks did? This is especially worrisome since state officials confirmed 1500 cases of food stamp fraud in 2009, yet only convicted 11 people of these taxpayer abuses. And with inside corruption from state employees like this, the stage is set for even more food stamp fraud, a bureaucratic crime wave as the WSJ OPED points out last year. 


So in conclusion, at least one thing is certain. With Obama's desire to have more Americans dependent on government programs like SNAP, Oregon Capitol Watch will have lots of waste, fraud and corruption to write about in the future!

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  Scott Walker's Wisconsin Reforms Are Working

 Interesting  and thought provoking report here on how well Wisconsin Governor Scott Walker's collective bargaining reforms are working. Well worth it to read as this could be done here in Oregon with similar results of savings to governments.

    So Oregon's Government's Out of Money Huh? 

 State Senator Chris Telfer, the only CPA currently serving in the state legislature, found a few hundred million just sitting around in state agency bank accounts that could be used to offset more budget cuts from expected declining revenues. Yet, I guarantee you that the argument will be advanced that we cant use this money and we must raise taxes on the rich and businesses to fill the gap. Oh, wait! We already tried that and it isn't working either. Darn! 

Small government anyone? 


Read Sen Telfer's guest column in the Oregonian here