THE BULLS AND THE BEARS

This is an old Wall Street adage: bulls make money, bears make money, and pigs are slaughtered. In our world, the pig is the VTNEA. Will they be slopped or slaughtered?

Consider. In South Burlington, the teachers are talking, threatening a little extortion. Pay up, or we will dump your kids on your doorstep. Happy Kwanza.

And why? Leslie Williams, chair of the School Board, told the Free Press, "I am still struggling with the idea that the teachers would vote to strike, given what we have offered. Astonished, perplexed. I do not understand."

South Burlington has offered teachers for a 187 day work year, a top-tier plan which would pay $78,934 per year and 85 percent of health insurance premiums. They would be the highest paid teachers in Chittenden County and the State of Vermont.

Not enough. The teachers are demanding $81,182 and 90 percent of health insurance premiums, or else. The next highest teacher salary in Chittenden County is $71,527.

TO MARKET, TO MARKET

To buy a fat pig. However in Vermont, there is no "market" in public education, only porcine demands. Teachers talk only money for salary and health insurance. But they have many benefits to which neither they nor the school board assigns any value.

OUTSOURCING

Teachers, venture into your community. Ask folks what discount they would offer in exchange for a job which would never be outsourced? Five percent, ten percent, twenty percent?

There is hardly a day that goes by when we do not encounter someone whose job was lost because the company moved, the job was outsourced, or the business was closed.

Recall recently Ethan Allen, Waterbury Plastics, IBM, Wyeth Laboratories, York Capacitor, Tubbs Snow Shoes, Mad River Canoe, Jog Bra, Rossignol, Dynastar, HP Hood, Annie's Naturals, Bombardier Capital, Lucille Cheese, Specialty Filaments, and so many more.

BANKRUPTCY

Teachers, venture into your community. Ask your neighbors what wage discount they would give if they knew that their employer would never go bankrupt, that their job was secure.

Teachers, travel downtown and inquire what wage discount they would offer to know that they could never be fired but for the most egregious behavior.

These are tremendous benefits, benefits most of us have never had, those of us who live with constant insecurity, constant worry, worries which you do not have to face. What is the value of such peace and serenity?

HOME FOR THE HOLIDAYS

Teachers go forth and ask what discount folks would give to know that they would never have to work on Christmas, Thanksgiving, the Fourth of July, and on top of that, that they would have every summer off and every Christmas week off?

GENEROUS AND SECURE

Teachers take stock of your friends to ask about retirement. What value would they place on a plan which would pay you two-thirds of your three highest consecutive years of pay for the rest of your life after a full career of teaching? And which increases annually, not more than 5 percent or less than 1 percent? Or early retirement at a reduced rate after only five years of teaching and reaching age 55? Or disability retirement 90 days after your disability prohibits teaching with five years of service? Add on survivor benefits.

You may have seen the October 31st Time Magazine cover story "The Broken Promise" about missing pensions. "More and more companies are walking away from their pension promise leaving millions of Americans at risk of an impoverished retirement. Companies have shortchanged their pension plans by $450,000,000,000. Joy Whitehouse of Majestic Meadows, UT walks the highways collecting cans to make ends meet after her husband's former employer Pacific Intermountain Express went bankrupt."

How much value would you place on the security of having no worries about your pension guaranteed by the State of Vermont whether it is $315,000,000 short or not, pay up oh you citizen.

Teachers go ask your community about the value of continuing education, reimbursement for training, conferences, and some advanced education?

BIG BUCKS AND UNIVERSAL HEALTH CARE

Hey, we have not even talked about wages and health care!! Think of the value of each of the items above to ordinary Vermonters. But there is no market in education. It is a closed shop. If there was no union, if school boards could hire and fire at will, the average teacher salary and benefits package would be half the cost that it is today.

Teachers, sally forth and inquire about health care, deductibles, and cost share. Many companies have offered a 50/50 match on health care insurance. And more and more employees have been forced to drop health care as they can no longer afford their 50 percent and the companies cannot afford to contribute more than 50 percent.

Many companies have switched to a HMA policy, a Health Maintenance Account. But for a family, the deductible is $4,500. Teachers refuse to accept a $1,000 deductible. Doctors complain to DPR that teachers demand expensive services and get them even when they are not part of recommended diagnosis or treatment.

For example, two patients, a teacher and another with an HMA policy, come in, each for a knee strain. The doctor recommends rest, an anti-inflammatory drug, followed by a bit of physical therapy to strengthen the rested knee. The teacher will demand and receive a MRI, spiking health care costs for all.

In many school districts, a majority of teachers are at the upper ends of the pay scale. Cleverly, the union focuses on a relatively low starting wage, stoking your compassion. Then when we agreed to raise the bottom tier 4 percent, the heavily populated upper tiers receives 4 percent also, more than double the dollar cost to the taxpayer.

STRIKE NOW

Because of relatively low wages in Vermont, the lack of affordable housing, the highest electrical rates, high heating costs, high property taxes, high sales taxes, high income taxes, high health care costs, and the long commute to work, the high cost of gas and the low quality of the roads shortening the life of tires, shocks, sway bars, and steering components, Vermont families require at least two jobs to survive.

A teacher strike often means that workers without idle grandparents to baby sit, must miss work and the accompanying necessary money in order to take care of their children during school hours. A double whammy: higher property taxes to pay for the settlement and lower income from missing work.

In Barre, a city that is spending its bonding money to make ends meet, the teachers plan to strike as well. We are sure that sympathy and support levels for the teachers will be very high.

THE GILDED FEW

Many in Vermont are upset that teachers are a protected species, with benefits and pay that taxpayers can only dream of. One taxpayer told DPR, "I'll be damned if they think that I will support their gold plated deals which my family cannot afford."

What can be done? The easiest and quickest way to reduce school costs is not to reduce the wage paid to teachers but to reduce wages paid for teaching. Yet incredibly, while the student population has gone down, the number of educators in public schools in Vermont has gone up. Reduce the number of educators, increase class size, and budgets will drop.

Secondly, higher health care costs affect us all. Either fix the problem or have teachers pay up too.

The governor talks about putting teachers' contract to vote in the town. Since the major costs of teachers, health care, and mandates are all fixed, most of the arguing is about paperclips and yet school budgets are defeated two, three, or four times. A bloated teacher contract would never pass. But the chances of such a law passing the legislature are nil.

WHAT HAVE YOU DONE FOR US LATELY?

Maybe by now you are beginning to appreciate why Ms. Leslie Williams, chair of the South Burlington School Board, sounded so frustrated. "We have worked really hard, we have tried to address the various demands that they have had. We think that we have done that."

Rich Wise, president of the union representing the South Burlington teachers, said of the failed negotiations, "The School Board is inviting a labor dispute, a full blown crisis (with the offer that they have made.)" Amazing.

Would you accept a job with job-security working for an organization which cannot outsource, which cannot move, which cannot go bankrupt, which pays a generous and secure pension, which contributes to ongoing education, which asks you to work only 187 days a year, which gives you every summer off, which gives you two weeks at Christmas and another couple of weeks off, which pays 80 percent of your health insurance, and which pays you over $75,000? No way, strike today.

DOOM AND GLOOM

In the fifties and sixties, Vermont went on a school building binge. Many of those schools are now long on the tooth. The Randolph Union School Board recently received a study report on its failing physical plant. To fix what needs to be fixed, they can spend $21,000,000, or they can build a new school for $45,000,000, with the cost of each rising daily. Either will break the bank, already looted by the teachers.

THE FLATLANDERS ARE RESTLESS

For years it has been the community's role to educate its youth. Our Constitution suggests, "A competent number of schools ought to be maintained in each town unless the general assembly permits other provisions for the convenient instruction of youth."

McMansion residents are questioning this proposition. The Vermont Standard of Woodstock wrote in an editorial, "A childless Pomfret resident raised an interesting point. He pays $26,000 in property taxes annually, an amount he described as 'excruciatingly high for what I get.' The man suggested as 'food for thought' that those with children in school be levied an additional assessment."

WHAT GOES UP MUST COME DOWN

It is not just the flatlanders in McMansions who are complaining about property taxes. Second home owners are not just complaining; they may be losing their enthusiasm for Vermont. Historically, the second home owner has been the golden goose, providing millions in property taxes while asking little in the way of government spending. Up to 30 percent of our property tax base is second home property, the highest of any state in the country.

The "bloom is off the rose" combined with the end of the housing boom will put more financial pressure on Vermont. Alex Veiga, AP business writer, wrote, "The U.S. housing market will see a sustained decline next year. In some regions, homes are remaining unsold longer."

THE STOWE REPORTER

"Legislatively, we are going to kill the golden goose," Pall Spera, a Stowe Realtor, told DPR. "We have a welcome tax of 1.25 percent known as the property transfer tax, we have an exit tax 2.5 percent withheld from the sales price for the IRS, and with FORPTA (Foreign investment real property tax act) we have a 12.5 percent exit tax. That is to say nothing of permits. We are being forced to drive with our parking brake on.

"We have a legislature with no fiscal soundness, a legislature which feels a sense of entitlement, a legislature which drives up the property tax here as much as 80 percent. This is beginning to shut things down.

"On top of that, for many of our down country customers, litigation is a sport. Our permit laws, the Bianchi court decision, and the required use of home inspectors are giving every seller a haircut, a $30,000 to $50,000 haircut just in order to close the deal."

"The numbers are beginning to not add up: the property tax, the maintenance, and the special clubs you must join at the new Mount Mansfield development. A few buyers are saying, 'I am out of here.' I signed up to buy a $410,000 studio for 'visiting firemen.' In the end I walked; it did not make financial sense. The new units have a very steep assessment.

"This year we have over forty homes in MLS priced at over $1,000,000. The market can handle maybe ten a year. The long days on the market for property without a sale are going to be troubling. Purchases have been for instant gratification. They can look elsewhere. It is not going to crash but there will be a stillness."

BY COMPARISON

The Wall Street Journal lists the property tax for different homes around the country. Here is a sampling; read on with envy. Coral Gables, a $3,200,000 home -$16,924 in property tax; Las Vegas, a $5,800,000 home -$15,985 property tax; Key Largo, a $5,990,000 home -$11,520 property tax, Sun Valley, a $1,500,000 home -$600 property tax.

BERNIE ENDORSED BY DEMOCRATS

Bernie has been endorsed by Democrats. After waiting a generation or two for a United States senate seat to open, Democrats of all persuasions are taking a pass, giving up their ambition for one not of their own. Bernie thanks them in an interview in this month's Progressive.

Q: Where should progressives put their energy, in the Democrats or in third party efforts?

Sanders: In Vermont we probably have the most successful third party in the country, electorally. When I was mayor of Burlington I defeated a Democrat.

INGRATE

The Democrats put up with this behavior, as impolite, impudent, impertinent and insulting as it is. As if he were a prince or something.

"Bernie Sanders, the independent, socialist Representative from Vermont, is poised to win the Senate seat vacated by Jim Jeffords in 2006. According to the Associated Press, Sanders has received donations from 100 times as many Vermont supporters as his likely opponent, the self-financed, Bentley-driving corporate executive Rich Tarrant."

Q: Is this a particularly ripe moment for change?

Sanders: I think it is. I think it's fair to say that they are not flocking to the Democratic Party, or see the Democrats as a real alternative. And Bush is there primarily to give tax breaks to billionaires.

BUSH FAILS THE RICH, YOU'RE SHOCKED

This just in from NRO online, December 7, 2005. In 1980, when the top income tax rate was 70 percent, the share of income taxes paid by the rich, the top 1 percent, was 19.3 percent. By 1986 with a cut in the top income tax rate to 50 percent, the top 1 percent's share of federal income taxes was 25.7 percent. By 1992 with the top rate slashed to 28 percent, the rich folks share was up to 27.5 percent.

In 2003 after another huge tax cut for the rich, the top 1 percent paid 34.3 percent of all federal income taxes.

WHERE DID WE LEAVE OFF?

Q: Do you think they're going to use the socialist label against you, and do you think that's going to matter?

Sanders: No, I doubt it will make a dent. Their weakness is they have nothing to say. What are they going to say about the economy? What are they going to say about tax policy when they give tax breaks to billionaires?

AND THE ANSWER IS

According to the Wall Street Journal, since the tax cut "the stock market has risen by about $4 trillion, housing values have soared. Household net wealth has climbed by $10 trillion. Business investment, which had sunk into the abyss during the recession falling by 21% between 2000 and 2002, has roared back to life.

"Employment is up 4.4 million and real GDP growth has averaged 4%, twice the OECD average, since 2003. There are now roughly one million more Americans working than were projected before the tax cut. There was a $120 billion reduction in the budget deficit in 2005. That's because tax receipts rose by more than in any previous year in the history of the United States, even adjusting for inflation."

KARL MARX SPEAKS

But the liberals do not have as much money to solve all of our problems for us. And who believes that the government can in fact solve all our problems? Karl Marx. It worked great in the Soviet Union.

YOUNG MEN IN A HURRY

Your editor was off to Montpelier the other day, settling into a leisurely pace up I-89. In a cloud of dust, Senate 13 piloted by Senator Matt Dunne while talking on a mobile phone rushed past. Curious, we set off in pursuit. Moving into a fog, young Matt topped 85 MPH, driving well beyond his field of vision.

Your editor was off to Montpelier the other day from Burlington, settling into a leisurely pace down I-89, when a red blur passed with a low two-digit license number piloted by the governor's press secretary, Jason Gibbs. Curious, we gave chase, burning precious fuel to learn that young Mr. Gibbs enjoyed cruising between 85 and 90 MPH.

Your editor was returning home on I-89 when Smokey and many bandits were convoying past in a blur. Smokey was chauffeuring Governor Douglas. Now you know how he keeps his appointments at so many gathering around the state; a legal pedal to the metal. We joined the end of the convoy and found that the governor and his policeman were cruising at a leisurely 80-85 MPH. Guess he is not in as much of a hurry as young Matt and Jason.

Interestingly, while frequently overtaking our attorney general William Sorrell along I-89, we have never found him driving in excess of the posted speed limit. Nice to know that the keeper of our laws respects them.

IMAGINE IF THEY STUDIED SOME VERMONT NEWSPAPERS

"The Big Three nightly newscasts have become nothing more than anti-war activists with a national platform. The Media Research Center recently released a review of over 1,300 news stories on Iraq from January through September. Among their findings was the following: 61 percent of the stories were negative or pessimistic, while only 15 percent were positive. The gap became even worse in August and September with negative stories nearing 75 percent; positive stories at seven percent. Stories about heroic actions by the troops were outnumbered eight to one by stories of abuse or other misconduct. Two of every five news stories covered bombings, kidnappings and other mayhem. Election stories also trended negative, as if things truly were better under Saddam Hussein...."

Full report: http://www.mrc.org/SpecialReports/2005/sum/sum101405.asp

*** THE US HOUSE RACE ***

»» John McClaughry, Kirby: Senator Mark Shepard is a wonderful man who will certainly remain true to his principles. But there is not a chance in a million that Vermonters will elect any thing resembling Mark Shepard to Congress. Even running, exciting the faithful, and gallantly losing is not a viable strategy for Mark. Mark needs to face reality here, and map out a different political career.

General Rainville has a real chance to win this race. In a primary with Mark, the Dems and Progs, who have no primaries, will flock in to support Mark to defeat a candidate they really fear, General Rainville. That might be enough for Mark to win a primary, but Mark wouldn't have a prayer when all the Dems and Progs go back to the Welch campaign, laughing all the way. Mark ought to do all of us -- and himself -- a favor and stay out of the race for Congress.

»» Paul Bogosian, Ascutney: Peter Welch is well known and respected among the people he serves, and in complete disaccord with your ranting assertion, he enjoys a similar profile among the "chieftains" to whom you refer. He has won their support (and mine) above the others because of his solid leadership record and because of his history of respectful, engaging and energetic campaign conduct.

As you may recall, he was unfortunately defeated in a primary with Paul Poirier for the U.S. House of Representatives in 1988 (where’s Paul these days?). In 1990 he was Governor Snelling’s Democratic opponent in the general election for the office of Governor.

"Mountain Rule" in Vermont has been generally replaced by "Party Rule" and despite a Kunin-weary electorate, Peter came within six percentage points of defeating Gov. Snelling who, at the time (as you know), was already (and rightly) an iconic and well-admired leader among most Vermonters regardless of party affiliation.

I don't expect you or your publication to advocate Peter’s candidacy any time soon, but your conclusion that "Democrat does not equal democracy" is facile, glib and profoundly without constituent factual support. Will I to see it on a bumper sticker soon?

*** THE US SENATE RACE ***

»» James Gregoire, Fairfield: Money can and does buy elections. In the case of Vermont politics, the overwhelming majority of the money comes from out of state. I can't for the life of me understand why we as Vermonters continue to let out-of-staters influence our elections to such a degree. Until we make a stand and tell our candidates that out-of-state money can't buy us, the scenario will not change. Vermont deserves Senators and Congressmen who are loyal to us, not to out of state money-machines. Maybe it is just a pipe dream but I'd love to see the day when NYC and California money doesn't buy Vermont elections.

»» Bill Brueckner, Waterbury Center: I say Tarrant has no conflict of interest. He will never represent anybody but his class and he will represent equitably within his class. As far as tax liability is concerned, his class in congress already took care of that with tax reductions for the wealthy further eroding proportional taxation which is effect is a tax increase to the lower class. In view of the dissatisfaction of the lower class even timing of the purchase and the reason for purchase is suspect. Dissatifaction with all government may end up with closing some tax loopholes for the wealthy and was the company purchased by his class of people to allow for an endless supply of money for the campaign? With the same old, same old running in opposition to him we have the equivalent of the Kerry-Bush campaign --no choice! We can look for no change as evidenced by previous performance of Tarrant's opposition that served in the House. The globalization conspiracy will move forward to the detriment of the lower class.

THE EDUCATION BATTLE

»» Rob Roper, Stowe: Great Issue of DPR. You analysis of the up coming education battle is quite inspiring. Is that 15% reduction in property taxes for real, or are you making a suggestion? I ask because the fight over early education seems to be breaking into two camps ­ a mend it don't end it camp, and a cut ‘em off at the knees camp.

»» Carl Edwards, Lyndonville: Were you serious when you made stated that Vermont schools were overstaffed and teachers overpaid? I'm sure you support the under funded and resource sucking "No Child Left Behind."It is apparent that you have not been in a school for a long time. You couldn't possibly do my wife's job (a kindergarten teacher) for even one day . You can always find replacements for any job, including yours.

ERRATUM

»» Elle Whitley, Burlington: If you are going to accuse someone of not doing their homework, I suggest that you do yours. The "new" executive director of the Vermont Democratic Party has been in his position for three years. He has never attended Yale. If you are going to blast someone for getting the story wrong, get yours right.

THEY LIKE US

»» Greg: Thanks for sending the DPR. I just finished reading "the whole thing", and it is very good. I have signed up for the e-mail, and you will get my $25! I cannot believe that I have gone so long without access to it.

WARRIOR WALDO

"Howard Dean said that we cannot win the war in Iraq. If anybody knows about not winning, it's the Democrats. Believe me; they know what they're talking about." --Jay Leno, December 6, 2005

HAPPY WARRIORS

"The results of a recent poll suggest that life in American is not so bad, especially when compared to Old Europe. 57% of Americans say they are 'very satisfied' with their lives - as opposed to only 14% of French, 17% of Germans, and 16% of Italians." --The American Enterprise

WELCOME TO VERMONT

"My idea of hell is to be caught during a snowstorm listening to an aging hippie. I hated the sixties. It is the only decade that I have lived through that did not have the decency to call it quits when its time had run out." --Pat Conroy, Beach Music

DEMS DETERMINED TO IGNORE PROGRESS IN IRAQ

"Sen. Joe Lieberman, Democrat of Connecticut, came out with a big statement on Iraq last week. Did you hear about it? Probably not. Everyone was still raving about his Democrat colleague, Rep. Jack Murtha, whose carefully nuanced position on Iraq is: We're all doomed unless we pull out by next Tuesday! (I quote from memory.) .... It's just about acceptable in polite society to disagree with [Rep. John] Murtha, but only if you do it after a big 20-minute tongue bath about what 'a fine man' he is... Nobody says that about [Sen. Joe] Lieberman, especially on his own side. And, while the media were eager to promote Murtha as the most incisively insightful military expert on the planet, this guy Lieberman's evidently some nobody no one need pay any attention to. Here's why. His big piece on Iraq was headlined "Our Troops Must Stay."" ---Mark Steyn, Chicago Sun Times
http://www.suntimes.com/output/steyn/cst-edt-steyn04.html

Senator Lieberman's editorial: Our Troops Must Stay
http://www.opinionjournal.com/editorial/feature.html?id=110007611

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