There is no question that the President wants a “single payer,” where hospitals and physicians are all paid from a single source, a single government-run program funded by general taxation. The fact that this leads to shortages, waiting lines, and rationing ...]]> By Alieta Eck, M.D.

There is no question that the President wants a “single payer,” where hospitals and physicians are all paid from a single source, a single government-run program funded by general taxation. The fact that this leads to shortages, waiting lines, and rationing does not seem to concern those who have this single-minded goal.

Before he became President, Senator Barack Obama addressed members of the AFL-CIO. He stated:

“I happen to be a proponent of a single-payer universal health care program. I see no reason why the United States of America, the wealthiest country in the history of the world, spending 14 percent of its gross national product on health care, cannot provide basic health insurance to everybody. Everybody in, nobody out– a single-payer health care plan, a universal health care plan. That’s what I’d like to see. But as all of you know, we may not get there immediately. Because first we’ve got to take back the White House, we’ve got to take back the Senate, and we’ve got to take back the House.”

The messy business of passing health care reform began in earnest as soon as President Obama took office. His party did have control of the House and Senate, but loud opposition began and the Patient Protection and Affordable Care Act (PPACA) was passed by the slimmest of margins in early 2010. In order to keep the semblance of continuity, the new law was built on the current system of employer-based health insurance. Americans have an independent streak and would not accept a government single-payer system in one fell swoop.

Employer-based health insurance has proven inadequate. It developed in a time when people were less mobile and the norm was to find a job and stay with it until it was time for the retirement dinner and gold watch. Now that people tend to regularly change jobs, getting into and out of health insurance policies leads to disruption of care as different doctors are in different plans.

Despite its drawbacks, 170 million Americans depend on employer-based coverage. What will happen if they lose it in the next two years, thanks to PPACA? The law was actually designed to discourage employers from covering their workers, as the penalty for not meeting the employer mandate is quite small, while the “minimum essential coverage” will be very expensive. The House Ways and Means Committee found that 71 of the Fortune 100 companies could save $422 billion from 2014-2023 by dropping insurance and paying the fine.

In addition, price limits on premiums with increasing mandated benefits will serve to drive the insurance companies out of business.

If PPACA is not overturned or repealed, President Obama will probably get his wish.

And would Americans get “fair” and “equal” care? On George Orwell’s Animal Farm “all animals are equal, but some are more equal than others.” Under socialism, the ruling elite never seem to have to abide by the rules that they so methodically craft for the rest of us. President Obama knows that his wife and daughters will be immune to the downside of single payer, while the rank and file will suffer greatly. The people will beg for relief from excessive taxation and access to better medical care, but will they be able to find it?

Rather than moving toward single payer, it would be better to eliminate any middleman in most encounters between patient and physician. Allow the patients to pay for routine care and purchase their own health insurance plans with the least government meddling. Big government stifles initiative and punishes achievement.

Our Constitution envisioned citizen legislators who would create laws that are so fair they are happy to live by them. It is what Americans really need. Let’s hope the Supreme Court completely voids PPACA and we can have a system based on liberty, personal initiative, and freedom to access the best care at the lowest cost. Only when the government gets out of medicine will we ever achieve that goal.

Michael Monti (R) had originally been leading by a margin of 222 votes, but it ...]]> An update to a previous post:  after counting early ballots turned in at the polls and provisional ballots, it appears that Mark Mitchell (D) has won the race for Tempe mayor.

Michael Monti (R) had originally been leading by a margin of 222 votes, but it appears that has been nearly reversed.  Mitchell now leads by 139 votes, and Monti has conceded the election.

The primary election followed a similar trajectory:  Monti had a narrow lead over Mitchell, and then several days later that was reversed after more ballots were counted.

Previous post:

At last count, in the race for Tempe Mayor, Michael Monti had 51% of the vote with 10,394 votes, and Mitchell had 49% with 10,172. According to the Republic, an automatic recount is only triggered if fewer than ten votes separate the candidates. However, provisional ballots and remaining early votes to be counted on Friday, so change is still possible.

Results are listed below; all contests have 100% of precincts reporting.

More information from AZCentral.

This chart ...]]> We have been discussing it for two years: the entitlement state cannot be sustained. Too much has been promised to too many, paid for by too few. The problem is more advanced in Europe, but it is coming our way soon too.

This chart tells a sad tale:

The common response from the left to my (or any such) stern words about the entitlement state usually amounts to some form of “Don’t you care about people” or “You want grandma to die in the streets, don’t you?”

As it happens, I do care, and I do not want grandma to die in the streets, and thanks very much for the calumny. But what I want, and how much I care, really don’t matter. What matters is math and basic economics. This situation is not sustainable. This number, currently at 70.5%, is headed for 100%. And what will we do then?

Pat yourself on the back for your compassion if you wish, but it’s still not sustainable. Scream all you want about how you paid into the system and you want your money (guess what—we all do), but the system is still not sustainable. Absent reform, it’s all coming down, and emotions aren’t going to fix it. Sober and even hard decisions will, if those decisions are taken very soon. But those decisions cannot be made if we are clouded by an endless effusion of demagogic rhetoric for electoral advantage.

Also sponsors state legislation to improve response to fires

Sen. Gail Griffin, R-25
Chair, Senate Water, Land Use and Rural Development Committee

(Phoenix, State Capitol)—-Thousands of acres of Arizona land are burning today, and it’s already looking like another long and dangerous ...]]> Senator supports legislation on Wildfire Prevention

Also sponsors state legislation to improve response to fires

Sen. Gail Griffin, R-25
Chair, Senate Water, Land Use and Rural Development Committee

(Phoenix, State Capitol)—-Thousands of acres of Arizona land are burning today, and it’s already looking like another long and dangerous wildfire season. Today State Senator Gail Griffin expressed her strong support for a bill just introduced in the U.S. House to help avoid these wildfires.

The National Catastrophic Wildfire Prevention Act of 2012 is sponsored by Congressman Paul Gosar. It makes a number of changes to federal public lands policies in an effort to reduce the risk of catastrophic wildfires. These changes include:

Expediting forest restoration projects on federal lands to reduce fuel loads and minimize the risk of fire
Streamlining process-related delays for projects on national forest system lands
Authorizing wildfire prevention projects focused on fuel reduction and protection of endangered species habitat

Supporters of the Act realize we can no longer stand by and watch as our valuable lands burn, destroying land, endangering lives and damaging our fragile economy.

“Last year’s record fire season dramatically illustrated that our forests are overgrown and that federal policies must be reformed to enable the Forest Service to do its job,” Senator Griffin declared. “The Wildfire Prevention Act accomplishes this by allowing the Forest Service to expedite forest restoration projects to protect at-risk communities.”

“Without these thinning projects, we are going to keep seeing these monster fires like the Wallow, the Horseshoe II and the Monument last year,” says Senator Griffin. “Eight of the nine largest fires in Arizona history happened in the past ten years. Our forests haven’t been thinned properly, and we are paying a heavy price.”

Senator Griffin’s concern for the conditions of Arizona’s forests and the safety of forested communities led her to sponsor a number of pieces of legislation in the recently-completed legislative session, including SCM1001, which urged Congress to support an innovative plan to reform the Forest Service and SCM1008, which called on Congress to adequately fund the Forest Service.

Senator Griffin also co-sponsored legislation requiring the state forester to develop and implement a comprehensive wildfire deployment plan of statewide resources for wildfire suppression activities and to ensure training and certification for wild land firefighters.

# # #

For more information, contact:
Mike Philipsen, Communications Advisor
Arizona State Senate Republican Caucus
Office (602) 926-3972 Cell (602) 904-2070
mphilipsen@azleg.gov

But everything that happens along the way—and every signpost on ...]]> Prognostications this early are ill-advised. Jimmy Carter was well ahead at this time of year, and he was blown out on Election Day.  We have a long way to go until November, and much can happen.

But everything that happens along the way—and every signpost on that journey—help add up to the end result in November. That is why we take snapshots every day. And where are we today is surprising a lot of people who, just a few short weeks ago, thought Obama had this in the bag.

Obama does NOT have this in the bag. In fact, it may be the case that the race is truly Romney’s to lose. Again, much can change, but right now, everything is turning in Romney’s favor. Here are a few examples of things moving in the GOP’s direction:

Rattled Obama team making miscues

Is it panic time at Obama headquarters in Chicago? You might get that impression from watching events — and the polls — over the past few weeks.

In matchups against Mitt Romney, the president is leading by only 47 to 45 percent in the Realclearpolitics.com average of recent polls. A CBS/New York Times panel-back poll, in which interviewers call back respondents to a previous survey, showed Romney leading 46 to 43 percent — and leading among women.

Is Pennsylvania In Play for November? Maybe.

 . . . Still, there are reasons for GOP strategists to look long and hard at the state this time, thinking 2012 could be different.

Arizona House Representative Ben Arredondo, D-Tempe, had a fake real estate company run by undercover FBI agents mail him baseball tickets, among other loot.

From azcentral:

The indictment includes allegations that Arredondo took official action for ...]]> Apparently corrupt politicians who want to go see the Diamondbacks lose.

Arizona House Representative Ben Arredondo, D-Tempe, had a fake real estate company run by undercover FBI agents mail him baseball tickets, among other loot.

From azcentral:

The indictment includes allegations that Arredondo took official action for the benefit of the fictitious company, including that he shared information with an FBI agent about the City of Tempe’s bidding process for a project that Arredondo believed the fictitious company was interested in bidding on.

Remember, any aspiring politicians out there:  whatever it is you’re thinking of doing, you’re never going to get caught, and there will never be bloggers making fun of you for using the slow and temperamental U.S. mail system to commit fraud.

Here’s the laundry list of loot Arredondo tried to score while in office:

• A table at a charity event worth $550.  To be fair, ‘charity’ and ‘vanity’ do rhyme.
• Another table at a charity event, $600.
• Tickets to see the Arizona Cardinals play against the 49′ers, worth about $300.
• Baseball tickets, Yankees, $1,225.
• Eighteen tickets to see the Diamondbacks play, $2,400.
• Tickets to the Duke-Michigan State basketball game, $1,200.

The United States of America v. Arredondo indictment says it all:  ”Arredondo did not pay for any of the things listed above”.

With the Legislative session now over, I wanted to take this opportunity to share with you details on a reform that simplifies government by helping better fund education withNO new taxes, and NO new General Fund spending.

BACKGROUND

Through an Act of ...]]> Download the Q2 2012 version of Inside the Vault.

With the Legislative session now over, I wanted to take this opportunity to share with you details on a reform that simplifies government by helping better fund education withNO new taxes, and NO new General Fund spending.

BACKGROUND

Through an Act of Congress in 1863 that established the Territory of Arizona and the State Enabling Act of 1910, the Federal Government granted about 8.4 million acres of land to public education. Today, about 8.1 million acres (shaded in light blue) remain in the Arizona State Trust for K-12 education.

Revenues derived from the sale of State Trust land are deposited in the Permanent Land Endowment Trust Fund and invested by the Treasurer’s Office in stocks, bonds, and interest-bearing securities. There are 13 beneficiaries of the fund, K-12 education being the largest receiving approximately 93% of the distributions. Today the market value of the fund is at an all-time record high of $3.57 billion.

Earlier this year the Treasurer’s Office completed the first-ever asset allocation study for the fund. The most glaring take-away from the study was that the current formula used to distribute proceeds to education is flawed and has resulted in uneven and unpredictable distributions. This formula was never market tested and in 2010 resulted in $0 going to support education.  

OPPORTUNITY

After nine years in use, these unpredictable distributions using the current formula have the budgeting process extremely difficult for educators. The asset allocation study revealed that if left unchanged, this formula could result in several additional years over the next two decades in $0distributions.

Now armed with critical knowledge, the Board of Investment and I worked with Representative Steve Court and Senator Don Shooter to introduce a new, simplified formula that would make certain Arizona’s children and teachers have a consistent and reliable distribution every single year. If adopted in 2004 when the current, complicated formula (orange line) was put in place, the new, simplified formula (blue line) would have resulted $21 million more in funding for K-12 education while avoiding years with $0 distributions.

House Concurrent Resolution (HCR) 2056 simplifies the distribution formula to be 2.5 percent of the average 5-year market value of the fund. Currently, the distribution is based on the 5-year average of annual returns after adjusting for inflation. It has bi-partisan support passing unanimously by the Arizona Senate with a vote of 28-0, and by the Arizona House of Representatives with a vote of 45-15.

HCR 2056 will now be placed on the ballot in November to give voters the chance to smooth out distributions while protecting the principal of the fund from inflation for the next 10 years. At the conclusion of the 10-year period the distributions will revert back to the current distribution formula being used today, unless further action is taken by a future Treasurer and Legislature.

Having a ”sunset” provision is one way to keep government accountable.

It is my hope that a future study be conducted on the fund to examine the performance of the formula, and with the hope of uncovering another better way to maximize distributions for public education. Supporters of HCR 2056 cross party lines and include both the education and business communities. If approved by voters, next year’s distribution will be $62.4 million for K-12 education.

This is a winner.

A winner for the budget.

A winner for sound finances.

And a winner for business thinking in government.

I hope you will support this measure in November, and help spread the word to your friends and family on why this simplified formula is a good reform.

If you would like to know the daily cash balance of the state or want more frequent updates and commentary you can go to www.aztreasury.gov or follow me on Facebook at www.facebook.com/dougducey or on Twitter @dougducey. 

Thank you for your ongoing support.

Sincerely,
Doug Ducey