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Do your schools have dance studios and pizza ovens? We get a report on LA’s $578 million school. That’s right, LA has built a K-12 school for 4,200 students that cost $578,000,000. Maybe the president will want to send California some more bail-out cash.
LOS ANGELES – Next month’s opening of the Robert F. Kennedy Community Schools will be auspicious for a reason other than its both storied and infamous history as the former Ambassador Hotel, where the Democratic presidential contender was assassinated in 1968.
With an eye-popping price tag of $578 million, it will mark the inauguration of the nation’s most expensive public school ever. …
…Los Angeles is not alone, however, in building big. Some of the most expensive schools are found in low-performing districts — New York City has a $235 million campus; New Brunswick, N.J., opened a $185 million high school in January.
Nationwide, dozens of schools have surpassed $100 million with amenities including atriums, orchestra-pit auditoriums, food courts, even bamboo nooks. The extravagance has led some to wonder where the line should be drawn and whether more money should be spent on teachers. …
The $578 million school is quite an example of what is wrong with public school system priorities. A report on the school from ABC News.
…The facility boasts a state-of-the-art swimming pool, fine art murals, an ornate auditorium suitable for hosting the Oscars, and a faculty dining room that the superintendent says is “better than most restaurants.”
All those amenities add up to an enormous price tag, which works out to about $250,000 per pupil. That $578 million cost is more expensive than the Bird’s Nest stadium built for the 2008 Olympic Games in Beijing, China, which cost $500 million. It’s also significantly more expensive than the $400 million home of the Denver Broncos, Invesco Field at Mile High.
Critics say the school is a luxury that the Los Angeles Unified School District cannot afford. The district has a $640 million budget shortfall, and over the past two years, 3,000 teachers have been laid off. The district has even proposed shortening the school year by six days to save money.
The money troubles come on top of the district’s serious academic shortfalls. With a dropout rate upwards of 35 percent, LA Unified is one of the lowest-performing school districts in America. …
There is some hope, though. Virginia shows how to make some tough decisions. The WSJ editors comment on another Republican governor who didn’t raise taxes and still balanced his state’s budget.
Here’s something you don’t see often these days: a government running a budget surplus. Governor Robert McDonnell announced last week that Virginia closed fiscal 2010 some $400 million in the black. That’s a radically improved financial picture from a year ago when the state faced a $4.2 billion two-year budget hole.
The usual suspects—the big business lobbies, the Washington Post—thought a major tax increase was needed. So did the previous Governor, Democrat Tim Kaine, who proposed a $2 billion tax hike before he left town, on top of two major Virginia tax increases in the previous eight years.
Mr. McDonnell has proved otherwise. The newly elected Republican put a freeze on hiring and took the knife even to such politically sensitive programs as school aid, police and Medicaid to cut hundreds of millions of dollars. Total state spending has been reset more or less to 2007 levels. If Congress were to do that, the federal deficit could fall by more than $900 billion, or two-thirds. …
In the Corner, Veronique de Rugy alerts us to an article by Tad DeHaven about higher pay for government workers; pay that comes from taxes on productive citizens and sectors of the economy.
In the debate over the difference in pay between private and federal employees, the Cato Institute’s Tad DeHaven makes some very good points that I hadn’t heard before:
…In the private sector, an employee’s compensation is a reflection of his or her value in the market. For instance, one may not like that LeBron James makes millions of dollars playing basketball, but that’s what the market for professional basketball players says his production is worth. It’s no different for a considerably lower-paid employee in the restaurant industry.
What’s a federal employee worth? How does one measure a government employee’s production? Government isn’t subject to market disciplines. It can’t go out of business. It has no competitor. It doesn’t need to earn a profit or even break even. It doesn’t receive its revenue from voluntary transactions – its revenues are obtained via taxation, which is paid by individuals under compulsion and force. …
…Federal and private employees are apples and oranges because the former is dependent on the latter for its existence. …
Ed Morrissey has excellent commentary on the lack of real-world experience in the administration as the reason for its abject failure.
Wonder how Recovery Summer turned into Wreckovery Bummer? How an administration ginned up its entire economic strategy into one stimulus bill and has done nothing since, even as the economy disintegrated? Marty Robins advises his readers to check the CVs of the people in charge in Washington to understand just how incompetence has triumphed — and not just Barack Obama’s:
If Washington seems out of ideas on how to get the private-sector jobs machine running again, there’s a pretty straightforward reason — the people in government have virtually no experience in business. …
…This increasing disconnect between the government and the business world is a big, if unrecognized, problem, if for no other reason than that it deprives government officials of the knowledge and experience that successful business leaders can bring to solving difficult problems.
…Obama stuck with ideological allies heavy on academics and with no real-world experience, reflecting his own profile rather than complementing it as an experienced executive would have known to do. Obamanomics is the result. It’s a classic command-economy approach that works on every university campus where it’s discussed — and in no real-world setting where it’s ever been tried. …
Robert Samuelson discusses government policies that led to the housing bubble and what changes could be made to those policies and to the government-sponsored enterprises that administrate them.
…In an ideal world, we would discard failed policies. We would trim or end the mortgage-interest tax deduction. We would curtail the GSEs’ loans and guarantees (the promise to repay mortgages that default). The consequences need not be dire. The homeownership rate, already down to 67 percent from its 2004-06 peak of 69 percent, would probably stabilize in the mid-60s. People would save more for down payments. Mortgage rates might rise a bit.
The irony is that, in failure, the GSEs have become more important than ever. Private lenders, which once regarded a mortgage secured by a home as a highly safe investment, now see it as highly risky. Few new mortgages are made without government guarantees. The GSEs continue to operate and, along with other government agencies, guaranteed about 95 percent of new mortgages made in 2009, reports Inside Mortgage Finance, an industry newsletter. Since 1990, the government guarantee share had fluctuated between 30 and 50 percent.
This means that sudden withdrawals of support might deepen housing’s depression. Economists Phillip Swagel of Georgetown University and Donald Marron of the Tax Policy Center, among others, have made sensible proposals to scale back Fannie and Freddie. But done too quickly, they could backfire. …
Peter Schiff gives us a great lesson in economics that liberal politicians don’t understand. He explains why government policies that encourage spending do not help the recovery.
In a CNBC debate last week, former Labor Secretary Robert Reich presented a set of contradictory beliefs that unfortunately reflect the conventional wisdom of modern economists. …
…Reich called for lowering taxes on working Americans and raising taxes on the rich. He argued that middle-income Americans are more likely to spend additional dollars while the rich are more likely to save and invest. As a “demand-side” economist, Reich made clear that spending is superior to savings and investing as a catalyst for growth.
To put it simply: Reich believes that the cart pushes the horse. In his worldview, businesses produce goods and services simply because consumers spend. Therefore, anything that increases spending fuels growth. Unfortunately, he fails to see what should be strikingly obvious: capital formation must precede production, which then allows for consumption.
In a complex society like ours, those relationships are hard to see. However, if we break it down to a simpler level, it becomes more obvious (as I try to accomplish in my new book: How an Economy Grows and Why it Crashes). For example, let’s take a look at a simple barter-based economy consisting of only three people: a butcher, a baker, and a candlestick maker. …
Kudos to the Washington Examiner editors! The editors are challenging Republicans to come up with a plan to reign in government.
…Those Bush years too often displayed little difference between Republicans and Democrats in Washington. Much of the vast expansion of the federal government by Democrats was previewed by the Bush-led Republicans. Obamacare’s overreach? Don’t forget the Republicans’ entitlement-expanding and budget-busting Medicare Part D. In fact, Republicans were off the reservation long before Bush ever entered office. The 1994 Republican revolution marked the first time in more than 40 years that Republicans held a congressional majority. They won while pledging specific policy goals in their Contract with America, including term limits, a balanced budget amendment, and welfare reform. Some significant progress was made but in a few years the revolution was all but abandoned. The Cato Institute’s Ed Crane recently noted that the “combined budgets of the 95 major programs that the Contract with America promised to eliminate … increased by 13 percent.”
Today, most Americans are ready as never before to shrink government and stop the spending madness. This presents the GOP with an opportunity it didn’t have in 1994: an electorate exhausted by Washington politicians and their doubletalk. But the GOP so far seems unwilling to lay out specifics about how it plans to respond to what Americans are saying if they restore the party to majority status in the House and perhaps the Senate. House Minority Whip Eric Cantor, R-Va., boasts of the Republican “YouCut” Web site that solicits ideas from voters, but that effort barely rises above window dressing. Rep. Paul Ryan, R-Wis., has proposed a “Roadmap to Economic Recovery” as a serious program for entitlement reform, yet the party leadership has not embraced it. Similarly, the Heritage Foundation has compiled 128 policy recommendations across 23 major policy areas for shrinking government and making it work better. The Examiner will be offering a number of ideas on this page in coming days as well. Republican leaders risk squandering a historic opportunity by ignoring such recommendations. The voters are waiting.
In Volokh Conspiracy, David Kopel says, stop giving Obama grief for golf.
In this polarized period of American politics, many people on the Right have been taking cheap shots at President Obama because he plays golf so much.
…Of American Presidents since World War II, the one President who is now almost universally regarded as highly successful and constructive, by persons of all political persuasions, is President Dwight D. Eisenhower. While serving eight years as President of the United States, Eisenhower may have played over eight hundred rounds of golf. In other words, about twice a week. …
…However, President Eisenhower demonstrated beyond any doubt that there is no inherent contradiction between being a good President and being an avid golfer. Indeed, golf helps clear the mind, and hardly any sport is better at fostering humility in participants. So unless President Obama’s critics are willing to state that President Eisenhower golfed too much, they should stop carping about President Obama’s golfing.