Monthly Archives: June 2009

End of the 2Q Fundraising

Today, June 30, is the end of the 2nd quarter and the last day to give for donations to appear in the 2Q fundraising reports (federal candidates). I know it’s not an election year, but fundraising reports, especially in the early race are used as a gauge of strength of a candidate. There are two worthy local candidates you could consider if you’re feeling generous.

John Carney, candidate for U.S. House of Representatives. Carney will either be taking on Delaware powerhouse Mike Castle (which I think is unlikely) or he’ll be taking on someone from the shallow bench (to be named later).

Links: John Carney for Congress
You can also give through Act Blue (a worthy organization dedicated to electing Democrats): John Carney at Act Blue

There is also a Senate race in Pennsylvania that is shaping up to be of national interest. Democrat-turned-Republican-turned-Democrat-again Arlen Specter will probably be taking on Representative (and retired Admiral) Joe Sestak in the Democratic primary for the Pennsylvania U.S. Senate race. Sestak is not a progressive, but he is a loyal Democrat and Specter is a loyal Specterite. This will really be something to watch! The winner of the Democratic primary will probably take on Republican Pat Toomey, who barely lost to Specter in the Republican primary of 2004 and whose candidacy helped push Specter out of the Republican Party. Early money in this race will be key.

Links: Joe Sestak’s official web page
There isn’t yet an official Sestak for Senate page, but here is the Act Blue page.

There are lots of other interesting 2010 federal races if these two don’t catch your fancy.
Fivethirtyeight.com’s Top Ten Senate Races (June edition)
TheHill.com’s Top Ten 2010 House Races

State of Delaware/Walgreen’s: Can This Marriage Be Saved?

It can and it should. In fact, there is no earthly reason why this war of words should have escalated this far.

First, allow the Beast Who Slumbers to stipulate that he does have a dog in this fight as he is close to several people who work for Walgreen’s. Not at the corporate level, but at the direct customer service level. All of these people were longtime employees when Alan Levin owned the company.

Stipulation aside, ‘bulo believes that what passes for a ‘negotiation’ between the State and Walgreen’s has been done in such an amateurish and confrontational manner that the greater harm is being ignored in the struggle. The biggest losers in this entire affair will be the Medicaid recipients, make no mistake about that.

With Walgreen’s out of the equation, there will not be sufficient places to service the Medicaid recipients. Rite-Aid is teetering on financial collapse, their stock can no longer be traded on the NYSE. They cannot afford to fill Medicaid prescriptions at a loss, not for long. CVS, the country’s largest drug store chain, only has  two stores in Delaware (Rehoboth & Milton), with a third in Wilmington months away from opening.  So you’re looking at a couple of supermarkets, Target, Walmart, Costco, a few small independents, and that’s it. First, there is no guarantee that these few outlets will be able to stock and subsequently fill Medicaid prescriptions when they’re losing money on each brand name prescription filled. Second, Walgreen’s fills about 65% of all Delaware Medicaid prescriptions. Where the bleep could recipients possibly go to fill that void? It simply ain’t gonna happen.

This is public policy malpractice, pure and simple. The Walgreen’s suits from Chicago clearly have/had no clue as to how to negotiate with Delaware officials, and they played their hand too hard. However, at least they were willing to continue negotiations.

The State, OTOH, really came up small here. What was the point of some press flak from DHSS writing a release saying “Walgreen’s Abandons Delaware’s Neediest Citizens”? What, exactly, did anyone hope to accomplish by doing that and by going out of their way to smear a company that employs thousands of Delawareans? Has anyone in state government stopped to consider what removing by far the Medicaid provider of public choice is going to do to the health and well-being of this population? Where are the people in the City of Wilmington, where there are proportionately more Medicaid recipients, going to go to get their needs met? 

The Beast Who Slumbers will now ask a sensitive question, but one, IESHO, that needs to be asked. Is it possible, just possible, that DEDO Director Alan Levin is allowing his personal experience with Walgreen’s to help color the State’s response here? El Somnambulo has both great professional and personal regard for Alan Levin, he really does. Alan was just the kind of boss that everyone would love to have. He treated his employees fairly and really like family. But there is no denying that Alan must have felt shunted aside by Walgreen’s and that he was (to Walgreen’s great shame) reduced to the role of a front man for a business that didn’t share his vision. Alan employed virtually the same tough negotiating tactics when he negotiated with the State on the last Medicaid agreement. Walgreen’s, in essence, is being demonized for employing similar tactics this time around.

Bottom line: No one is well-served in this imbroglio. Ultimately the only people who will suffer significant hardship are the Medicaid recipients. ‘Bulo knows that Walgreen’s has tried to restart negotiations, but the State is not returning the calls.

It is long past time for the grownups to take over, restart negotiations in private, and leave the press flaks at home.  It is time for both Walgreen’s and the State to remember that the well-being of Delaware’s neediest citizens hangs in the balance.

QOD

During my long drives to work I have time to think about things because I don’t have my Sirius satellite and have to listen to regular radio and all the f’ing commercials. NPR however is the bomb I must say, even when the play David Frum editorials and don’t mention he was Bush’s speechwriter. That and when they have Bank of America Economists talking about President Obama’s stimulus package being the largest ever “PEACE TIME” spending this country has ever seen. I guess that guy doesn’t realize we are fighting two wars. That’s ok, neither does 80% of the country.

Anywhooo, my question is this:

Historically people have always said the stock market over time always goes up and blah, blah, blah. Then they talk about how the DOW this and the DOW that. Historically they have this and that.

Actual question:

Don’t they move in and out companies in the DOW? Doesn’t that skew the historical numbers? Isn’t it sorta bullshit to say that the DOW has always performed XY and Z over year x to year y? GM is getting moved out, Sears got pushed out a decade ago and along the way others have been added in right?

Donviti honest thought for the day

Look, I know that Obama said what he said about DOMA. I also know that he has been President for about 6 months now. He has had to deal with a few wars, a collapsing economy and a few other things I can’t seem to think of as if those two were enough. Now, we are working on Health Care or something I think is also pretty damn important.

So forgive me for saying this and I’m almost regretting typing it, but I’m sorry, but I’m sorta ok that he isn’t wasting his “political capital” on DOMA and Don’t Ask Don’t Tell.

He has 4 more years and quite honestly another session in Congress with this majority right? Is it at all possible that this will become another one of those issues that is strategically used to position the Party of No as the Party of Homophobes yet again?

So, I’m sorry, actually I’m not. I’m not saying get to the back of the bus, but I guess I am. I think I’m trying to say, I don’t think that because it isn’t happening now, you wont ever get your chance.

What to Expect From Delaware Liberal Tonight

This is the last day of the legislative session in Dover.  Unstable Isotope and I (at a minimum) will be in attendance and passing along reports.  Many of our reports will be available via Twitter (@liberalgeek and @UnstableIsotope), Nemski and DelawareDem will be monitoring the tweets.  El Somnambulo will be listening to the audio stream over the tubes known as the Interwebz and commenting as we go along.  I will try to get a few interviews with the newsmakers and put the videos up in real time.  We will see how that plan pans out.

We intend to connect up with Mike Matthews and possibly RSmitty at Leg Hall.  The show in Dover starts at 4PM, but some of us work, so it may be a little later that we begin coverage.  We probably won’t last the whole night either, as we do have day jobs.

See you tonight.

Health Care Monopolies

The next time you hear the anti-reform forces talking about competition, think of this report.

But the notion that most American consumers enjoy anything like a competitive marketplace for health care is flatly false. And a study issued last month by a pro-reform group makes that strikingly clear.

The report, released by Health Care for America Now (HCAN), uses data compiled by the American Medical Association to show that 94 percent of the country’s insurance markets are defined as “highly concentrated,” according to Justice Department guidelines. Predictably, that’s led to skyrocketing costs for patients, and monster profits for the big health insurers. Premiums have gone up over the past six years by more than 87 percent, on average, while profits at ten of the largest publicly traded health insurance companies rose 428 percent from 2000 to 2007.

Far from healthy market competition, HCAN describes the situation as “a market failure where a small number of large companies use their concentrated power to control premium levels, benefit packages, and provider payments in the markets they dominate.”

So extreme is the level of consolidation, in fact, that one former top Federal Trade Commission official working with HCAN has sent a letter to the Justice Department’s Antitrust Division, asking for an investigation into the health insurance marketplace.

428%! Well, I hope those health care CEOs got big bonuses, they definitely deserved them. No wonder the health care providers can afford to buy their own legislators.

WTF Jack ?

The “companies” that I think can afford revenue increases in these terrible economic times are the richest 1500 incorporated in De. (minimal stock-asset value of $660 million). An additional $5,000 per year increase in the franchise tax cap would produce nearly double the revenue in FY10 that the alcohol tax would with no job losses.

-JK last nights thread

That was rejected out of hand? I thought that upon my return from vacation I would have seen common sense and fairness prevail in your thinking, but I guess not.

I’m speaking as someone who has worked for Markell’s election and will no doubt work for it again in the future – but I don’t get this. There is no way to make the case that Disney would leave Delaware if forced to pay an additional $5,000. That BS does not pass the smirk test.

So what’s the deal? What’s the real reason Fortune 500 companies are not being asked to “share the burden” during this period of economic trial?

Iraq Sovereignty Day

This is a day a lot of people have been waiting for: U.S. troops are beginning a pull-out of Iraq.

Iraqi forces assume formal control of Baghdad and other cities on Tuesday after American troops hand over security in urban areas in a defining step toward ending the U.S. combat role in the country.

Fireworks, not bombings, colored the Baghdad skyline late Monday, and thousands attended a party in a park where singers performed patriotic songs. Loudspeakers at police stations and military checkpoints played recordings of similar tunes throughout the day, as Iraqi military vehicles decorated with flowers and national flags patrolled the capital.

“All of us are happy — Shiites, Sunnis and Kurds on this day,” Waleed al-Bahadili said as he celebrated at the park. “The Americans harmed and insulted us too much.”

Prime Minister Nouri al-Maliki declared a public holiday and proclaimed June 30 as “National Sovereignty Day.”

Iraq still has a long way to go before it is a peaceful functioning democracy, but it won’t be one until Iraqis control their own country. We can’t do it for them.

Happy Half Way Day

Half way through the year. Already we have had record Unemployment, record bank closings, record lows in the DOW, record foreclosures, record interest rates, record Executive pay, record (fill in the blank) and we still have six more months to go. Personally I think that this coming Christmas Holiday Season is going to be absolutely brutal.

…But Obama is more than half way past his tenure till he is responsible for anything that happens to him. 9/12/09 baby…it’s all his mess then. Until that day though Mr Comma is still waiting for a period.

WTF John?

8:23-HB 212, raises tax on beer 2 cents a can, 15-cent increase on wine, increase on spirits as well, expected to raise over $4 mill this year. (snip)

Roll call: Once again, the Rethugs are getting a complete pass. Hard to believe that the D’s are letting them get away with this. Presumably, once again, Cathcart will change his vote to ‘yes’, enabling the bill to pass. Waiting a l-o-o-o-ng time to announce the roll call…Longhurst changes from ‘yes’ to ‘no’, which is the parliamentary maneuver to enable the bill to be resurrected, bill defeated. One Democrat, Rep. Kowalko, voted ‘no’. Hard to explain that one. There was reportedly one R prepared to switch if it was the deciding vote.

You said it. How does John think that this helps get closer to a balanced budget? Is his commitment to the poor downtrodden state workers second to his commitment to the $11.29 12 pack of Bud Light?

Nobody is a bigger Kowalko fan that me and I don’t get this. The $4 million John just cut out of the revenue package needs to come from somewhere.

House Working Revenue Bills Now

8:15 pm-They unanimously passed HB 268 creating a tax amnesty program that is projected to raise $10 mill w/o raising taxes. More as it breaks.

8:20-HB 21o, raising the licensing fees on establishments serving alcohol, being voted on now. Lotsa Rethugs voting no. Cathcart changes from ‘no’ to ‘yes’, enabling the bill to pass, 25-16(3/5 majority). The only R to do so.

8:23-HB 212,  raises tax on beer 2 cents a can, 15-cent increase on wine, increase on spirits as well, expected to raise over $4 mill this year. Schwartzkopf saying that ‘we’re being asked to vote for things that none of us want to do.’ Hocker is doing his ‘tax and spend’ soliloquy, talking about how they had an ‘ammo’ company ready to come in here, and they just laughed at the tax increases and went elsewhere. The man’s a total ignoramus. Nowhere does he mention how he would close an $800 mill budget deficit. Roll call: Once again, the Rethugs are getting a complete pass. Hard to believe that the D’s are letting them get away with this. Presumably, once again, Cathcart will change his vote to ‘yes’, enabling the bill to pass.  Waiting a l-o-o-o-ng time to announce the roll call…Longhurst changes from ‘yes’ to ‘no’, which is the parliamentary maneuver to enable the bill to be resurrected, bill defeated. One Democrat, Rep. Kowalko, voted ‘no’. Hard to explain that one.  There was reportedly one R prepared to switch if it was the deciding vote.

8:32-HB 211, raises the tax on cigarettes. Rep. Scott announces that, due to a perceived conflict, he will not vote on this bill. That means they’ll need at least a couple of R ‘yeas’ to pass this bill. Cathcart introduces amendment spreading the tax increase over two years. Schwartzkopf calls it an ‘unfriendly’ amendment. Amendment defeated on party line vote. Roll call: 25 Y, 15 N, 1 NV. Oberle and Lavelle only 2 R’s to vote ‘yes’, Lavelle switching from No to Yes. Bill passed.

8:45-HS1/HB 260, eliminates exemption on personal income tax exemption on lottery winnings. Looks like this one will have plenty of support. 35 Y, 5 N, 1 NV. Bill passed.

8:50-HB 288, assess additional utility tax on satellite & cable. 25 Y, the bare minimum. Oberle and D. Short are the two R’s voting yes. Bill passed.

8:55-HS1/HB 262-Increases administrative fees for documents recorded with the state/county. Projected to raise $5.5 mill. Rethugs even voting against this one. Just further proof that all they care about is the issue, not about closing an $800 mill budget deficit. They are prostitutes, pure and simple. Oberle is the exception, voting yes on most bills. All the R’s are providing is the one additional ‘yes’ vote. Cathcart and D. Short switch to ‘yes’. Bill passed.

9 p.m.-HS1/HB 263-Increases Fire Marshal fees. R leadership are sponsors on this one, so it should pass fairly easily. $600K to be raised through this bill. 30 Yes, a veritable landslide. Bill passed.

9:05-HB 286-Increases fees for vital certificates. Raises $1 mill. 25 Y, the bare minimum. Bill passed.

9:10-HS1/HB 264-Here comes the Big Enchilada. The Personal Income Tax hikes. If all the D’s vote ‘yes’, Bill Oberle will almost certainly be the 25th vote to reach the 3/5 majority. Betcha there’s a sunset provision coming soon. ‘Bulo was right. HA 2 puts a 4-year sunset provision on the tax increases. Rep. Oberle had an alternative that seemed to make more sense, which would have tied the sunset provision to having sufficient revenue, using the FY’s 2005 and 2006 as a benchmark. This way, even if the State’s in dire financial straits, these tax provisions will sunset unless they are reapproved. Doesn’t seem to make much sense. HA2 approved by Voice Vote.  Rep. Hudson (nee Capano, nee Hudson), who represents a lot of the Greenville crowd, tabled her amendment that would have sunsetted the increases in one year.  Rep. Carson, ignoring the fact that Hudson has moved to table the amendment, felt the need to put his low-double-digit IQ to use to say that he supported ‘sending a message’ to the taxpayers on this. Thank you for your profound observation, Rep. Carson. Are you and Mike Protack long-lost brothers?  Rep. Kowalko introduced HA 4, which he didn’t describe, be tabled. ‘Bulo presumes that this represented the ‘Kowalko Plan’. Oberle introduced his amendment, which he no doubt will table now that HA 2 has passed. Oberle tables HA 5. That should bring us to the bill. Jeezus Bleeping Christ! They took out the increase for the bleeping millionaires. It’s just $60K and up. Simply pathetic. These bleepers have no scruples whatsoever. Millionaires will be popping champagne corks all over Chateau Country tonight.  And the Rethugs are STILL only giving the bill the absolute minimum support required to pass it. Oberle. That’s it. One lousy Rethug vote for passage. The Democrats unilaterally surrendered. What a bunch of…(this term has been banned by UI, but you know what it is). If one D can explain how removing the increased progressive taxes on the upper brackets, in essence restoring some progressivity to the system, is in keeping with principles of fairness, ‘bulo will show you a double-talking BS artist.

A disgusted El Somnambulo will sign off now. He shaved his legs for THIS?

Well, ‘bulo’s back, if only to see how the D’s cave on this one. They’re working the estate tax bill, HB 291. Debbie Hudson (R-Chateau Country) called it a ‘disgrace’, and tried to get a one-year Sunset provision added, but it was shouted down. Presumably, a 4-year Sunset will be put on, and it apparently has. Hudson’s doing some more crying about ‘how wrong it is to tax one’s estate’, which is understandable since she represents people who come up with all kinds of schemes to avoid paying their tax obligations. Now, the hopeless Greg Lavelle is crying tears over the zillionaires who made their dollars through ‘hard work and luck’ (hmm, no mention of inheriting  it, unless that’s what he meant by ‘luck’). Roll call is on. Looks again like Oberle will be the only ‘yes’. 25 Y, again, the bare majority.

HB 289-The Gross Receipts Tax Bill-First, it looks like the 4-year sunset amendment is coming. Yep, Schwartzkopf with the 4-year sunset provision. Approved by Voice Vote. Here comes another Hudson amendment, more wringing of pearls likely to accompany it. Yet another one-year Sunset provision. “People in Pennsylvania laugh at us.” She is and has always been nothing but a shill for the upper class. HA4 defeated by roll call. Roll call on the bill is on. Sounds like a rerun. Yep, Oberle gives the only R vote. 25 Yes, the bare majority. Bill Passed.

House recesses to the call of the chair, 4 p.m. tomorrow.

Adios, Amigos.

Conference Board Predicts Economic Recovery

The Conference Board has released its report on economic indicators. The report is signaling that recovery from the recession is about to begin or is in its beginning stages.

The Conference Board LEI for the U.S. increased sharply for the second consecutive month in May. In addition, the strengths among its components continued to exceed the weaknesses this month. Vendor performance, the interest rate spread, real money supply, stock prices, consumer expectations, and building permits contributed positively to the index, more than offsetting the negative contributions from weekly hours and initial unemployment claims. The index rose 1.2 percent (a 2.4 percent annual rate) between November 2008 and May 2009, the first time the index has increased over a six-month period since July 2007, and the strengths among the leading indicators have become balanced with the weaknesses during this period.

…

LEADING INDICATORS. Seven of the ten indicators that make up The Conference Board LEI for the U.S. increased in May. The positive contributors — beginning with the largest positive contributor — were index of supplier deliveries (vendor performance), interest rate spread, stock prices, real money supply*, index of consumer expectations, building permits, and manufacturers’ new orders for nondefense capital goods*. The negative contributors — beginning with the largest negative contributor — were average weekly manufacturing hours, average weekly initial claims for unemployment insurance (inverted), and manufacturers’ new orders for consumer goods and materials*.

The Conference Board LEI for the U.S. now stands at 100.2 (2004=100). Based on revised data, this index increased 1.1 percent in April and decreased 0.3 percent in March. During the six-month span through May, the leading economic index increased 1.2 percent, with five out of ten components advancing (diffusion index, six-month span equals 50 percent).

Employment is a lagging indicator, so we probably won’t see a positive change in employment until the end of the year. This has been the longest and worst recession since the Great Depression. Thanks George W. Bush! Heckuva job!