Category: Government

Schadenfreude Alert

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Michigan Governor Rick Snyder and his Evil Minions™ are being sued under the RICO statutes:

Gov. Rick Snyder, high ranking former members of his staff and others are the target of a new federal racketeering lawsuit over the city’s water crisis. The lawsuit also targets the city of Flint.

A group of 15 citizens filed the civil lawsuit seeking financial compensation for property damage, loss of business and financial losses attributed to the city’s water crisis; as well as compensatory damages for future medical care and punitive damages.

………

The lawsuit, filed Wednesday, April 6, in Flint U.S. District Court, alleges Snyder, his former Chief of Staff Dennis Muchmore and others attempted to balance the Flint city budget through a pattern of racketeering activity.

“He wants to run the state like a business,” attorney Marc J. Bern said of Snyder. “Well. The citizens of Flint, as shareholders in the corporation of the state of Michigan, I don’t think they were treated in an appropriate way.”

The lawsuit alleges that officials misrepresented the suitability of the Flint River water as the city’s drinking water source for roughly two years and billed Flint residents at rates that were the highest in the nation for water that was unusable, resulting in the city’s budget deficit being reversed.

………

The complaint names Snyder, Muchmore, the Michigan Department of Environmental Quality and multiple members of its staff, the Michigan Department of Health and Human Services and members of its staff, the City of Flint and members of its public works department, multiple engineering companies that were hired to evaluate the city’s water system, former Mayor Dayne Walling and three of the city’s former emergency managers.

………

The suit claims officials committed mail fraud by continuing to mail water bills to Flint residents, which they allege fraudulently misrepresent that the city is providing safe, clean water to its residents.

They further allege officials continued to make statements claiming the water was safe despite being aware of growing concerns over the quality of the water.

The lawsuit also alleges the defendants committed wire fraud by allowing residents to pay their water bills online or with credit cards despite knowing the water was toxic.

A RICO lawsuit requires attorneys to prove that the wrongdoing was part of an ongoing enterprise. If successful, the law allows triple the amount of damages to be paid.

I’m not generally fan of the expansive use of the Rico statutes, but this does appear to be a reasonable use of the law.

H/t Charlie Pierce

I Can Haz Prosecushuns?

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We have a new development in the Flint water crisis, the Michigan Governor has retained private counsel, including a prominent criminal defense attorney:

Gov. Rick Snyder has hired two outside attorneys in connection with the Flint drinking water crisis, including a criminal defense attorney retained to serve as “investigatory counsel,” a Snyder spokesman confirmed Thursday.

Eugene Driker, a civil defense attorney, and Brian Lennon, a criminal defense attorney, were each awarded a contract worth $249,000 through Dec. 31, after which those contracts can be extended, Snyder spokesman Ari Adler told the Free Press.

The contracts, which are to be paid with state funds, are just below the $250,000 threshold for contracts requiring approval from the State Administrative Board, which meets in public to approve state contracts and grants. Adler said that was by design because the governor wanted to hire the attorneys quickly in early February. The administration will be going to the State Administrative Board on March 8, seeking approval for additional spending on the contract with Lennon, he said.

They are claiming that this is about processing documents, but this sounds an awful lot like hizzoner is lining up a defense team in the event of a criminal prosecution.

Emails: Flint water warnings reached gov’s inner circle

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Another email dump, and now we have proof that the Governor’s senior staff knew of the problems with Flint’s water over a year before they acknowledged the problem

Two top advisers to Gov. Rick Snyder urged switching Flint back to Detroit’s water system in October 2014 after General Motors Co. said the city’s heavily chlorinated river water was rusting engine parts, according to governor’s office emails examined by The Detroit News.

Valerie Brader, then Snyder’s environmental policy adviser, requested that the governor’s office ask Flint’s emergency manager to return to Detroit’s system on Oct. 14, 2014, three weeks before Snyder’s re-election.

Mike Gadola, then the governor’s chief legal counsel, agreed Flint should be switched back to Detroit water nearly a year before state officials relented to public pressure and independent research showing elevated levels of lead in the water and bloodstreams of Flint residents.

“To anyone who grew up in Flint as I did, the notion that I would be getting my drinking water from the Flint River is downright scary,” Gadola wrote. “Too bad the (emergency manager) didn’t ask me what I thought, though I’m sure he heard it from plenty of others.”

………

Brader’s email alludes to festering concerns about how the chlorine used to kill the bacteria outbreak was causing the formation of a harmful disinfection byproduct known as trihalomethane, a carcinogen that can increase the risk of cancer, liver, kidney and central nervous system problems.

“Specifically, there has been a boil water order due to bacterial contamination,” Brader wrote. “What is not yet broadly known is that attempts to fix that have led to some levels of chlorine-related chemicals that can cause long-term damage if not remedied (though we believe they will remedy them before any damage would occur in the population).”

Two months later, the Department of Environmental Quality issued a Safe Drinking Water Act violation to Flint for the high levels of trihalomethanes in the water. Flint violated the law twice more until coming into compliance on Sept. 2, 2015, state records show.

Despite the staff concerns about the city’s brownish water quality, Snyder’s staff never took a recommendation to him that Flint be switched back to Detroit water until the following October.

The Governor was not told because he made it clear that he did not want to be told.

We need to see some depraved heart murder prosecutions.

Depraved Heart Murder

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The Governor of Michigan can now be shown to have studiously ignored the outbreak of Legionnaires Disease in Flint, Michigan:

It was the Fourth of July, a warm summer night in 2014, but Tim Monahan was shivering in a thick blanket as he watched fireworks from his front yard here. By the next afternoon his temperature had shot to 104.6, and doctors at the hospital he had checked into puzzled over what was wrong.

Two days later, they had an answer: Legionnaires’ disease, a virulent form of pneumonia caused by a type of bacteria that can multiply in water systems. Mr. Monahan, now 58, was given antibiotics and eventually recovered, but his case turned out to be at the leading edge of a Legionnaires’ outbreak that sickened at least 87 people in the Flint region, killing nine of them, from June 2014 through October 2015.

State officials still say they cannot conclusively link the outbreak to Flint’s contaminated water supply, partly because sputum cultures were not collected from patients. But the possibility of a link was raised in internal government emails as early as October 2014, and state officials did not inform the public of the outbreak until last month.

The Legionnaires’ cases started popping up as Flint residents were complaining about the foul-smelling, discolored water flowing into their homes after the city switched to a new water source, the Flint River, in April 2014. Soon they were reporting rashes and stomach ailments, and whistle-blowers eventually pointed to alarming levels of lead in the water supply and in children’s blood.

An examination of government emails, and interviews with people who survived Legionnaires’ and relatives of those who died, shows the government response to the Legionnaires’ outbreak followed the same pattern that prevailed throughout the Flint water crisis: a failure to act swiftly to address a dangerous problem or warn the public.

Even as more residents became critically ill with Legionnaires’ disease, and some died, the officials remained mired in jurisdictional battles, according to emails released by the Michigan Department of Health and Human Services and the health department in Genesee County, which includes Flint. Some at the state level seemed more concerned about following bureaucratic protocol, and not raising public alarm, than protecting residents.

People were dying, and they knew it, and they deliberately did nothing.
It’s depraved heart murder.

This is Insanely Sensible

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The Virginia AG has set up an task force specifically to go after patent trolls:

Suing a company for patent infringement just got a lot tougher in the state of Virginia.

The state (technically a commonwealth) has created a new legal office focused entirely on patent litigation. Specifically, the state’s Patent Troll Unit will look to extract penalties and legal fees from companies who make unjust patent infringement claims against businesses operating in the state.

The task force will seek out companies who file infringement claims on dubious or vague patents, seeking a quick payout. The legal team, reporting to the Attorney General, will file for injunctions against companies it deems acting in “bad faith” with infringement claims.

………

“Virginia businesses of all sizes can be targets, from a small, local business up to a large, high-tech firm,” Virginia Attorney General Mark Herring told the local Augusta Free Press.

“Under the bipartisan legislation we were able to help craft last year, my office has strong new enforcement powers and we’re going to use them to protect Virginia businesses from these bad actors.”

………

Those who believe they are being targeted by a patent troll are being advised to contact the Attorney General’s office with details including the demands of the patent troll, contact information and patent details.

This is an excellent idea.

Defending against a patent troll is frequently expensive, and so companies frequently settle. 

Having the Attorney General’s office on your makes it far less ruinous to fight patent extortion.

Seriously?

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Maine’s Governor, Paul LePage, aka the “Human Bowling Jacket”, is proposing a return to the guillotine:

Maine Gov. Paul LePage says his state is too easy on drug crimes, suggesting it should bring back the guillotine for serious offenders.

The Republican governor, known for his controversial statements, was speaking on local radio Tuesday about combating the drug epidemic in his state.

“What I think we ought to do is bring the guillotine back,” he told WVOM. “We could have public executions and have, you know, we could even have (guessing) which hole it falls in.”

He said that he was “all in” on fighting drug criminals and said a recent proposal to establish a minimum sentence of four years for drug traffickers was too lenient.

“I think the death penalty should be appropriate for people that kill Mainers,” LePage said.

………

Even as the hosts of the show tried to wrap the interview, LePage interrupted to show his resolve, suggesting the guillotine be used for public executions, joking that the idea was part of his French ancestry.

“I like French history,” he said.

It’s only the latest controversial comments from LePage. Earlier this month, he made waves talking about drug dealers in his state.

“These are guys with the name D-Money, Smoothie, Shifty,” he said. “They come from Connecticut and New York, they come up here, they sell their heroin, then they go back home. Incidentally, half the time they impregnate a young, white girl before they leave.”

Seriously, can the legislators of Maine please impeach his flabby white ass?

We already know that he has abused his official power to engage in a personal vendetta, and the investigation is ongoing, but it needs to move faster.

This guy is a clear and present danger to the state of Maine.

H/t Charlie Pierce.

No, the FBI Won’t Investigate Questionable Pension Fund Deals

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It appears that pensioners have finally begun to realize private equity and its ilk are robbing their funds blind while underperforming the market, but I predict that their calls for an investigation of private equity and hedge fund  practices will go largely unanswered:

Diane Bucci and her fellow retired Rhode Island schoolteachers were angry about a deal last year to cut their promised retirement benefits. For 28 years, the elementary school teacher devoted between 7 and 9 percent of her paycheck to the state’s pension system. In return, the 72-year-old had been promised a consistent cost-of-living increase to make sure her retirement stipend kept pace with inflation. Now, though, state officials were trimming her check in the name of replenishing the depleted pension fund.

There was, however, a sliver of hope — or so it seemed: If the pension system could generate better investment returns and amass 80 percent of the money needed to pay current and future retirees, the annual cost-of-living increases would return.

“There was a lot of unrest and anger among teachers, but at that point we buckled down and focused on how we could get to solvency,” said Bucci, who is on the board of the 700-member Rhode Island Retired Teachers Association. “So even though we aren’t Wall Street experts, we just started to ask questions about how the pension fund was managed, and what it was invested in. That’s when we realized the fees we’ve been paying to the investment companies were the problem.”

Those levies — which hit $79 million last year — were the product of the state’s recent investment strategy. Following a controversial national trend, Rhode Island pension officials led by then-General Treasurer Gina Raimondo shifted roughly a quarter of the state’s pension portfolio into high-fee hedge funds, private equity firms and other so-called “alternative investments.”

The shift by Raimondo, a Democrat who is now governor, has generated big revenues for Wall Street firms, but only middling returns for a $7.6 billion pension fund on which more than 58,000 current and future retirees rely.

When Bucci and the members of her organization began asking questions about those results, they learned of a federal review showing that roughly half of all private equity firms are charging hidden fees, and they saw a hedge fund industry whose returns have failed to keep pace with the stock market. When they dug deeper, they stumbled onto an even more disturbing revelation. What they found, they say, is evidence that some investors can obtain special rights that may let them secretly siphon money from the state pensioners’ retirement savings.

The retirees are now petitioning federal law enforcement officials to investigate whether the widely used provisions are violating laws designed to make sure all investors are treated fairly. In a letter sent last month to the Securities and Exchange Commission and the FBI, the retirees’ adviser — former SEC investigator Edward Siedle — pointed out that some of the firms managing Rhode Island pension money claim the right to offer different fee rates, inside information and cash-out rights to some investors but not to others.

Raimondo f%$#ed her pension fund, and she did so knowingly, both because they are “people like her” (Ivy league graduates) who are supposed to be “exceptional”, and because she knows that this behavior gets her a 7 figure payday at the end of the rainbow.

It’s corrupt tribalism, and it’s harming our country.

One Conflict That I Want to See Resolved with a Maximum of Bloodshed

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It appears that the Bundy clan, in what seems like a never ending quests to intimidate the have occupied a federal building in a dispute over a poaching trial

This is not a conflict that the government can deescalate. These folks goals is to use the threat of violence to get as much as they can, and then they will go to explicit violence.

This is an insurrection, and a fair number of the fellow travelers are not ready for this, but every time the government backs down, this movement picks up supporters and momentum.

It is not a question as to whether the US government will have to go after them with lethal force, but when.

Sooner is better than later here:

A group of armed anti-government activists remained encamped at a federal wildlife refuge in Oregon on Sunday evening, vowing to occupy the outpost for years to protest the federal government’s treatment of a pair of local ranchers set to report to prison Monday.

 The occupation of a portion of the Malheur National Wildlife Refuge, about 30 miles southeast of Burns, Ore., began a day earlier, after a small group of men broke off from a much larger march and rally held on Saturday evening

 The armed occupation is being led by Ammon Bundy, an Idaho rancher whose father, Cliven Bundy, led an armed standoff with federal agents in Nevada in 2014 and who has described his supporters as “militia men.”

 “Those who want to go take hard stand, get in your trucks and follow me!” Ammon Bundy declared to rally-goers at the conclusion of Saturday’s event, according to several people who were in attendance. Not long afterward, the group had taken over the federal wildlife preserve.

 Harney County Sheriff David M. Ward said authorities from several law enforcement organizations were monitoring the ongoing incident.

 “These men came to Harney County claiming to be part of militia groups supporting local ranchers,” Ward said in a statement Sunday. “When in reality these men had alternative motives, to attempt to overthrow the county and federal government in hopes to spark a movement across the United States.”

 Organizers of the rally say several hundred attended the procession through Burns, Ore. — a ranching town of less than 3,000 residents — in a show of support for Dwight Hammond, 73, and his son Steven Hammond, 46, who in the conclusion of a decades of clashes with the federal government were sentenced last October to serve five years in prison.

 Prosecutors accused the Hammonds of committing arson on federal land in 2001 and 2006. The men and their attorneys argued that the fires had been set  on their own property — once to prevent the spread of an invasive species of plant and once in attempt to prevent the spread of a wildfire — and had inadvertently burned onto public lands. But prosecutors said the fires were set in attempt to destroy evidence that the Hammonds had been illegally hunting deer on the federal lands.

This needs to be shut down before it metastasizes, if it hasn’t already done so.

As an aside, I think that we need to minimize the private use of federal land in the west, because history shows that people who derive public benefit for their private benefit are inclined to go to extremes to cling to their undeserved windfall.

Just look at the behavior of the 2nd Estate around the time of the French Revolution.  They did more to create the Reign of Terror than any other segment of society.

CalPERS Blinks

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After an increasing chorus of criticism the largest pension fund in the nation, CalPERS, has abandoned its plans to relax standards in order to favor private equity:

The state’s biggest public pension fund has repeatedly missed a key performance goal for its controversial private equity investments.

But a CalPERS committee said Monday that the fund’s staff could not strip language from a written policy that required them to aim to meet that benchmark – returns roughly 3% higher than the stock market to compensate for private equity’s risk.

By voice vote, the committee defeated the proposal to change the policy so that the new objective would have been simply “to enhance” the pension fund’s private equity returns.

………

The suggested policy change had been criticized by financial experts who said it would clear the way for CalPERS to continue to invest in the complex Wall Street sector – the buying and selling of companies — without requiring higher returns to compensate for the added risk.

“This is outrageous,” Eileen Appelbaum, a senior economist at the Center for Economic and Policy Research, a Washington think tank, said before the meeting. “CalPERS can’t get over the goal, now plans to do away with goal post.”

………

The proposed policy change came after many years where CalPERS failed to meet the so-called “risk-adjusted” benchmark.

For the year ended June 30, for instance, private equity earned a seemingly healthy 8.9%, but that was lower than the 11.1% goal.

A recent report by a CalPERS’ consultant acknowledged that the private equity investments had also failed to beat benchmarks over the last three, five and 10 years.

Appelbaum said that CalPERS would have made the same amount over the last 10 years if it would have just invested in the stock market – but without the added risks or high fees.

(emphasis mine)

I would note that the abuse of private equity by CalPers, and the increasing furor over its backflips to favor private equity is a direct result of the investigations, and aggressive use of freedom of information act requests, by Yves Smith and the Naked Capitalism team, who have been on this like white on rice.

One think that I have not figured out yet is why CalPERS has been so insistent in pursuing a failed strategy.

The cynic in me assumes that there is some sort of corruption involved.

The realist sees this being driven by blind panic as a historically underfunded institution flails around searching for a magic bullet.

I’m not sure which analysis frightens me more.

Maybe He Will Go to Jail After All

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It looks like Andrew Cuomo got a $700,000.00 advance from a subsidiary of News Corp, and then they got a multi-million dollar subsidy:

New York’s state government has committed millions of dollars in taxpayer support to News Corporation for a real estate deal — less than three years after a subsidiary of that company gave New York Gov. Andrew Cuomo a book deal worth up to $700,000. The commitment was disclosed in documents released by the Port Authority — an agency jointly controlled by Cuomo and New Jersey Republican Gov. Chris Christie.

The documents say the Port Authority, News Corporation and 21st Century Fox “have received commitments from New York State” for a “one-time payment of $15 million in 2016 and the utilization of a $15 million” state tax credit as part of the agency’s push to make the companies “anchor tenants” for 2 World Trade Center. The documents say the transactions are part of an initiative to reduce News Corporation’s and 21st Century Fox’s rent payments at the new building by $155 million.

The Cuomo-appointed executive director of the Port Authority, Patrick Foye, told International Business Times Wednesday night that he is recommending that the Port Authority’s board approve the package because, he said, the agency will get significant bang for its buck. “That is objectively a good deal, a good transaction for the Port Authority and the region,” he said.

This is not a surprise.

Murdoch has a long history of using political connections for business advantage, and Andrew Cuomo swims in the sea of corruption that is Albany like a fish.

Quote of the Day

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Here’s what U.S. state and city pension funds are getting this year for the hundreds of millions of dollars in fees they’re forking over to hedge funds: almost nothing.

—Bloomberg Business

Private equity and hedge funds have earned lots of money capitalizing on the panic of underfunded public pensions seeking higher returns to deal with chronic under-funding.

There have been no higher returns, but Wall Street has gotten its vig, some of which, of course, gets recycled back to the campaign funds of politicians who might otherwise provide oversight of the pension funds.

As Yves Smith is wont to say, It’s a, “Self licking ice cream cone.”

I Should Feel Good about This, but I Keep Waiting to the Other Shoe to Drop

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Obama has now officially rejected the Keystone-XL pipeline.

While a rational person should see this as an unalloyed good, I keep thinking that if TranCanada had not attempted to defer its application, making it clear that they were planning for a Republican victory in 2016, Obama would still be hedging his bets:

Saying that “the Keystone XL Pipeline would not serve the national interests of the United States,” President Obama rejected the much-debated project on Nov. 6. (AP)

President Obama rejected a presidential permit Friday for the controversial Keystone XL pipeline, citing concerns about its impact on the climate.

“America’s now a global leader when it comes to taking serious action to fight climate change,” Obama told reporters, standing in the Roosevelt Room beside Vice President Biden and Secretary of State John F. Kerry. “And frankly, approving this project would have undercut that global leadership. And that’s the biggest risk we face, not acting.”

Also, I wonder if this might be some sort of attempt to disarm the left in an attempt to get the Trans Pacific Partnership (TPP) trade deal passed.

Zombie Ideas

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The New York Times editorial board notices that Republicans are trying to privatize IRS tax collection yet again:

Buried in the Senate-passed version of the big highway bill is a provision that would require the Treasury secretary to use private debt collectors to collect unpaid back taxes.

The provision, added to the bill by Republican leaders, is ostensibly intended to help pay for highways. But it’s a bad idea that should be kept out of the House version of the bill and out of any final compromise version.

Private tax collection was tried in the 1990s and in the 2000s. Both times it lost money. It increases the cost of handling complaints and appeals at the Internal Revenue Service, and it is far less efficient than simply increasing the collection budget of the I.R.S.

Worse, it fosters taxpayer abuse. The debts involved are ones that the I.R.S. has not been able to collect, in part because the taxpayers are too hard-pressed to pay up. A private company is probably not going to have better luck unless it uses abusive tactics.

And yet, private tax collection is an idea that keeps resurfacing. Why? One reason is that it would be a cash cow for the four companies likely to win tax-collection contracts, two in New York, one in California and one in Iowa.

Senator Chuck Schumer, Democrat of New York, has argued in the past that using federal money to pay private companies for tax collection would create jobs at those companies. But it would be better to increase the I.R.S. budget to create middle-class public-sector jobs in professional tax collection than to throw money at low-paying private-sector contractors who cannot do the job as well.

 Thank you Senator Schumer for whoring for your debt collector campaign contributors.

This sh%$ is just evil.

One of the Facts of Running a Local Government Is That Making Your Government “Business Friendly” Never Pays

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Of course, what I mean by “Business Friendly” is using tax abatements, creating dedicated infrastructure, or building stadiums.

When you pay companies to locate in your town, you always lose, and the latest case is the oil boom towns in North Dakota, which have discovered that by not making drillers pay their way, they raise costs for everyone else:

While the massive Bakken oil boom drew hordes of job seekers and international attention to the remote prairies of North Dakota and Montana in recent years, it’s turned into a money loser for most cities and counties in the region.

 Crime in Dunn County, N.D., in the heart of the nation’s oil boom, skyrocketed 60 percent in just three years, and the road maintenance budget soared from $1.5 million to $25 million.

 The local government couldn’t keep up, with demand for services outpacing the growth in tax revenue by as much as 40 percent. The problem continues as the drop in oil prices in the past year means increasingly less money for the county to spend on projects – while drilling, the truck traffic that eats up the roads, and demand for community services haven’t stopped.

 “The gap between revenues and needs is still fairly large,” Daryl Dukart, a Dunn County commissioner, said in an interview. “It will take many years to balance out.”

 Dunn County is far from alone. Analysis from researchers at Duke University found that “most local governments in North Dakota and Montana’s Bakken region have experienced net negative fiscal effects” from the shale drilling boom.

The answer here is fairly simple: Make the newcomers pay their own way.

When thousands of very trucks tear up your local roads, charge tolls on them.

When their water demands require the construction of new sewer and water infrastructure, charge them for that too.

The oil is where the oil is. If drilling drops by 10% because the energy companies have to pay their own way, it’s a net plus.

The idea that in the long term it will sort itself out, a sentiment expressed by a Dickinson, North Dakota City Manager Shawn Kessel, is a pipe dream.

In the long term, the oil boom goes bust, and you still have to pay for the infrastructure that is now sitting unused, as well as the mountains of toxic waste that will start showing up.

I learned a little bit by being raised by a city planner, and one of the lessons that stuck is that if you subsidize industries to locate in your town, it will be a net tax loser.

The 2nd lesson is that most of the money in real estate is made through explicit and implicit subsidies that come from the local government in the form of tax abatements, zoning changes, and unpaid for infrastructure upgrades.

Modern American Business Stupidity Writ Kansas Size

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Rather unsurprisingly, after a campaign of wage cuts, benefit cuts, and demonization, teachers are fleeing the sinking ship that is Kansas:

Teachers can’t hotfoot it out of Kansas fast enough, creating a substantial shortage expected only to get much worse. Why?

Well, there’s the low pay. According to the National Center for Education Statistics, the average teaching salary in 2012-2013 (the latest year for which data were available, in constant 2012-2013 dollars), was $47,464, lower than the pay in all but seven states (Arkansas, Florida, Mississippi, North Dakota, Oklahoma, South Dakota and West Virginia), though not by much in most of them.

Last year, job protections were cut by state lawmakers, who have also sought to reduce collective-bargaining rights for public employees.

Then there’s the severe underfunding for public education by the administration of Republican Gov. Sam Brownback, so much of a problem that some school districts closed early this past school year because they didn’t have the cash to keep operating. This story by Huffington Post, quoted Tim Hallacy, superintendent of Silver Lake Schools, as saying:

“I find it increasingly difficult to convince young people that education is a profession worth considering, and I have some veterans who think about leaving. In the next three years I think we’ll have maybe the worst teacher shortage in the country — I think most of that is self-inflicted.”


………

And there’s more. According to the Topeka Capital-Journal,  the Kansas Board of Education decided in July to allow six school systems — including two of the largest in the state — to hire unlicensed teachers to ease the shortage. (Let the irony sink in for a minute.)  Specifically, the newspaper reported:

The measure will waive the state’s licensure regulations for a group of districts called the Coalition of Innovative Districts, a program that the Legislature established in 2013 based on model legislation from the American Legislative Exchange Council.


………

Peter Greene, a teacher who writes the Curmudgucation blog, described it this way:

Kansas has taken a bold new step in making their schools Even Worse…. Kansas has entered the Chase Teachers Out of The State derby, joining states like North Carolina and Arizona in the attempt to make teaching unappealing as a career and untenable as a way for grown-ups to support a family. Kansas favors the two-pronged technique. With one prong, you strip teachers of job protections and bargaining rights, so that you can fire them at any time for any reason and pay them as little as you like. With the other prong, you strip funding from schools, so that teachers have to accomplish more and more on a budget of $1.95 (and if they can’t get it done, see prong number one). The result is predictable. Kansas is solidly settled onto the list of Places Teachers Work As Their Very Last Choice. It’s working out great for Missouri; their school districts have teacher recruitment billboards up in Kansas. But in Kansas, there’s a teacher shortage.

Obviously, Sam Brownback is, for lack of a better term, bat sh%$ insane, and he is determined to turn the state of Kansas into Mogadishu, and even by the standards of Republicans, this is rather exceptional.

However, there is a bigger picture, because this reflects a crucial part of American business culture.

Specifically, it is an article of faith in American business these days that managing any sort of endeavor these days must necessarily involve making your employees as miserable as possible.

It’s destroying the country, not just Kansas.

H/t Atrios.

Yeah, I am So Confident in the Safety of the Keystone XL Pipeline

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Up in Alberta, land of the Tar Sands, a brand new bitumen pipeline has just ruptured, causing a major oil spill:

One of the largest leaks in Alberta history has spilled about five million litres of emulsion from a Nexen Energy pipeline at the company’s Long Lake oilsands facility south of Fort McMurray.

The leak was discovered Wednesday afternoon.

Nexen said in a statement its emergency response plan has been activated and personnel were onsite. The leak has been stabilized, the company said.

The spill covered an area of about 16,000 square metres, mostly within the pipeline corridor, the company said. Emulsion is a mixture of bitumen, water and sand.

BTW, that high tech brand new (1 year in operation) pipeline?

The warning system failed as well:

Nexen’s “failsafe” system didn’t detect massive pipeline spill: http://t.co/ULEnxlmQEN pic.twitter.com/DmChECTUX7

— Anna Mehler Paperny (@amp6) July 17, 2015

This is what happens when the private industries capture the government that is supposed to regulate it.

The Question Is Not If Sheldon Silver Flips on Andrew Cuomo, but When

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Marcello Trebitsch, the son-in-law of former New York State Assembly Speaker Sheldon Silver has just pled guilty to running a multi-year Ponzi scheme:

A son-in-law of former New York state Assembly Speaker Sheldon Silver pleaded guilty to securities fraud Monday, admitting to cheating investors out of nearly $6 million in a Ponzi scheme.

 Marcello Trebitsch, 37, of Brooklyn, entered the plea in Manhattan federal court in a written deal with prosecutors that recommended a prison sentence of four to five years. Sentencing was set for Nov. 2.

 “I am sorry for what I have done and I apologize to the court and my family,” Trebitsch told Judge Vernon Broderick.

 Prosecutors said Trebitsch, who is married to Silver’s daughter, solicited more than $8 million from four investors from 2007 to 2014 based on false and misleading representations.

 Silver, a Democrat who resigned from his leadership position after his January arrest on corruption charges, has pleaded not guilty and said he will be vindicated. Prosecutors say Silver took nearly $4 million in payoffs and kickbacks.

 Prosecutors said Trebitsch told investors they would secure double-digit gains with minimal risk of loss, but then Trebitsch mainly used the investors’ money for his own benefit and to repay other investors after suffering enormous trading losses on the portion of investors’ money that he did invest.

 ………

 In a release, U.S. Attorney Preet Bharara said Trebitsche “ran a multimillion-dollar Ponzi scheme, defrauding investors who put their faith in him and entrusted him with their hard-earned savings. He returned their faith with deceit and self-dealing, lying about his trading losses and using investor money on himself.”

Note that his wife, Michelle Trebitsch (née Silver), is a co-owner of the firm, Allese Capital, as well as being the certified public accountant who did the firm’s books, so it is likely that they will extract some sort of plea, or at least an admission, out of her.

Additionally, it is likely that  and a whole lot of their assets are going to be forfeited.

I’ve got to imagine that US Attorney Bharara would be eager to have Andrew Cuomo in the dock. It would be a major feather in is cap.

Right now, he has the sentence of Silver’s son in law, the possible prosecution of his daughter, and the potential for leaving his grand children penniless as well as parentless for a few years would be powerful  inducements for former speaker Silver to cooperate.

Silver will talk, and only question is whether he gets Cuomo, or he gets one of his closest associates, because Cuomo managed to create a level of plausible deniability in his dealings by using proxies.

Given that Cuomo is a former prosecutor, my guess is that it will be the latter, but I am hoping for the former.

Is Bipartisan Governing More Corrupt?

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People say they want more bipartisanship. In poll after poll after poll, they decry the polarized atmosphere in Washington and say they want their leaders to work together.

To which the people of New York and New Jersey might reply: seriously?

It’s indictment-and-arrest season in the tri-state region. Monday morning, New York State Senate Leader Dean Skelos, a Republican, and his son Adam were arrested on federal charges of extortion, fraud, and soliciting bribes. It’s been just three months since State Assembly Speaker Sheldon Silver, a Democrat, was himself arrested on federal corruption charges. Meanwhile, across the Hudson River in New Jersey, Bridget Anne Kelly and Bill Baroni, two former top allies of Governor Chris Christie, pleaded not guilty to nine counts apiece including wire fraud and conspiracy in the George Washington Bridge Scandal. On Friday, David Wildstein, a Christie appointee, pleaded guilty to two conspiracy charges in the same scandal.

What New York and New Jersey share, besides oft-imitated accents and embarrassing reputations for political corruption, is bipartisan governance. It wasn’t that long ago—before the bridge scandal, credit downgrades, and collapse of Atlantic City—that Christie seemed like a model of a Republican who could work with Democrats and achieve his priorities. Christie forged an alliance with Jersey Democratic boss George Norcross and his protege Steve Sweeney, the Democratic president of the State Senate. Christie even managed to gain many Democratic endorsements in his 2013 run for reelection. In fact, prosecutors say it was his aides’ overzealous attempt to squeeze an endorsement from the Democratic mayor of Fort Lee that led to the bridge closure that now threatens to undo his career.

Something similar was going on in Albany. Governor Andrew Cuomo, a Democrat, became extremely close with Silver and Skelos, even though Skelos was a Republican. In his January State of the State address—the day before Silver’s arrest, it turned out—he described his relationship with the two as “the three amigos.” The alliance drove some other New York Democrats nuts. Even though Cuomo had delivered two major progressive priorities in passing gun control and legalizing gay marriage, he governed far too close to the center for liberals’ taste on economic issues. But that allowed Cuomo to run the state government smoothly and implement his agenda.

In both cases, government functioned thanks to the lubrication of lucre, which allowed coalitions to grow across the aisle. There’s been no clear evidence of illegality outside of the bridge scandal, but reporters including Alec MacGillis have shown how Christie doled out favors to his and Norcross’s factions while bullying opponents into support or at least silence. In Cuomo’s case, he launched a highly trumpeted ethics inquiry, the Moreland Commission, after a series of embarrassing arrests of lawmakers, but then muzzled and eventually shut it down—when, it seems, it annoyed too many members of both parties. Unfortunately for them, and for Cuomo, U.S. Attorney Preet Bharara decided to pick up where the commission left off and ended up with charges against the two leaders.

This is not surprising.  If there is a lesson to be learned from machine politics in the 19th century, it is that when there is personal profit in doing the business of governing, that business gets done..

Of course, this only works for moderate levels of corruption.

Above that, you have Nigeria, where the level of corruption is so high that there are resources left to actually provide services..

This is not an endorsement of corruption.  Neither am I am suggesting that excessive bipartisanship, particularly when the bipartisanship supports moneyed interests, causes corruption.

I am suggesting that it is an indicator of corruption.  I am suggesting correlation, not causation.

I would also suggest that the desire for a new era of bipartisanship is firmly in the, “Be careful what you wish for, you might get it,” category.

Hackers: 1 — Maryland MTA:0

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People have been asking for the Maryland Transit Administration (MTA) to make data available to allow accurate real-time actual schedules for some time, but MTA has said that it is too technically difficult and too expensive to make a mobile app, or to make the data available to 3rd parties.

It took a self described “civic hacker” less than a week to do this on their spare time:

Despite promises of transparency and efforts to create “open data” in the hopes of latching onto the “app economy”—words frequently used in government agency press releases—much of the data that would be of the greatest value to citizens often ends up out of reach. For example, if you want to plan a trip on public transportation in many cities (or even just find out when your bus will show up), you often have to turn to Google Maps or another transit-tracking application on your mobile device. In Baltimore, however, that data has been locked behind the firewalls of the Maryland Transit Administration (MTA).

 But now a civic hacker has made that data available to app developers by doing what the MTA claimed would cost hundreds of thousands of dollars to complete—simply tapping into websites that the agency has already built. And the hacker did it without spending a dime of taxpayer money. The work took just a few man-days’ worth of spare time and a commercial app development team’s afternoon.

 ………
The reason the MTA gave for not doing a mobile app—or opening the data to third parties—was cost. “The data received from the bus [Computer Aided Dispatch (CAD) and Automatic Vehicle Location (AVL)] system to operate My Tracker is not sent in a format that can be easily used to create an application—called General Transit Feed Specification (GTFS). We know in many cases, the information needed to create an application is made public so private firms can attempt to develop an application at their own expense. However, it would cost approximately $600,000 more to be able to format the data from our 25-yr-old CAD/AVL system into GTFS for use by outside developers,” the MTA said.

However, within days of the MTA’s Web app going live, geo-data developer and open government data advocate Chris Whong had already done what the MTA refused to do. Whong took a look at the bus tracker Web app and found that its AJAX interface was polling the site every 10 seconds to get new location data. As it turns out, the app was retrieving JSON-formatted data from the MTA’s servers, encoded in a format called the General Transit Feed Specification (GTFS). The MTA had already published the GTFS metadata describing bus routes. Whong wrote in a blog post that it took a few hours of trial and error to confirm the data feed format, but in the end he and a small team of “civic hackers” were able to construct a framework that would allow applications to pull, for free, the very data the MTA said would cost $600,000 to publish. The team also produced a live tracking site on the Heroku application hosting platform to demonstrate the framework and then posted the whole thing on Github to allow others to use it.

And use it they did. The Montreal-based developer Transit App was one team that grabbed onto Whong’s project. “With Chris’ help, we were able to pull the real-time vehicle positions from the MTA system ourselves,” the Transit App team said in a blog post. “Using that data, we generated approximate bus arrival times with our in-house prediction engine. We then compared those predictions with the MTA’s tracker to verify our accuracy. And—with just an afternoon of work—Baltimore finally has the real-time tracking app it deserves. $600,000 under budget.”

My guess as to why the MTA thought that they needed more than ½ a million dollars to do what took one guy a few days is tied in with that whole “Reinventing Government” thing that Clinton started in the 1990s.

Basically, it involved taking a lot of core competencies in government agencies, and outsourcing them to private contractors.

The MTA probably does not possess the internal knowledge base to understand just how trivial doing this was.

1000 Words on Big Pharma Research Spending

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9 Out Of 10 Big Pharma Companies Spent More On Marketing Than On R&D

I would also note that 84% of the basic R&D funding is by the taxpayers.

What I am talking about is the research that discovers the basic science that leads to drugs.

I would argue that if we were to repeal the Bayh-Dole act, and once again require that federally funded inventions be assigned to the federal government, we would get more innovation, because universities would not be acting like private companies regarding their (our) inventions, and it would save enormous amounts of money, particularly with regard to pharmaceuticals.

The Washington consensus, which is that no matter how badly the private entities loot the rest of society, we must privatize everything, because ……… Capitalism!

It’s why we have hepatitis C drugs that are costing over $1,000.00 a pill.

As an alternative, have the government fund taking basic research to a marketable drug, and then allow drug manufacturers to bid for the right to manufacture those medications.

H/t The Big Picture.