Archive for November, 2009

A UW Connection to Climategate?

A brewing controversy surrounding efforts within the environmental science community to manipulate data and intimidate skeptics includes ties to the University of Wisconsin, the MacIver Institute has learned.

MacIver has discovered that several UW researchers were included in group email conversations that discussed masking data, incorporating false trends into climate research, and blocking efforts to correct that.  Equally alarming, we found that UW grad Pat Michaels, a prominent skeptic of the theory of man-made global warming in the School of Public Policy at George Mason University who is also senior fellow at the Cato Institute, was the target of a campaign of intimidation because of his views.

“At best UW employees appear to have been privy to efforts to mask or manipulate data,” said MacIver Institute President Brett Healy. “Our investigative reporter is in the process of filing open records requests to determine the extent of Wisconsin taxpayer-paid individuals’ participation in such efforts. Furthermore, we’re looking into whether efforts to undermine Dr. Michaels’ University Doctorate escalated into anything more than petty sniping and speculation.”

Communications between Ben Santer, a climate scientist at Lawrence Livermore National Laboratory, and Rick Piltz, founder of Climate Science Watch and from Tom Wigley of the University Corporation for Atmospheric Research include speculation of ways in which the University of Wisconsin could reexamine Dr. Michaels’ thesis, for which he received his Doctorate from the UW in 1979.

MacIver’s investigative reporter, Bill Osmulski, has been analyzing emails from the University of East Anglia in Norwich, England, which were recently made public and have been the subject of international scrutiny. Osmulski is in the process of officially requesting additional documents from the University of Wisconsin, specifically correspondence from individuals who were included in those emails as well as any communications regarding Dr. Michaels’ thesis and Doctorate.

The MacIver Institute will continue to follow this story in the days ahead.

Milwaukee: City vs. County and Barret vs. Walker

When comparing the budgets of the City of Milwaukee and the County of Milwaukee, we were struck with the similarities in the size and scope of the two governments.

The property tax levy for the City of Milwaukee, under Tom Barrett’s proposed budget, was $247.4 million, for example. Scott Walker’s County levy weighed in at $257.6 million.

The County Budget proposal funded 5,256 full time equivalent employees, while the City payroll had 5,784 FTEs.

Barrett’s budget proposal was $1.482 billion in total spending. Walker’s was $1.5 billion.

Both the Mayor and the County Executive have finally proposed new government employees contribute 5% towards their retirement.  Current employees will continue to contribute nothing towards their generous retirement benefits.

Indeed, these are the two largest governmental bodies in the state, save for the State itself.

But looking a bit deeper, we can see stark differences that reflect the vision, perspective and philosophy of the two leaders.

Barrett’s proposal increased the tax rate by 10 percent (per $1,000 of assessed value) to $8.90. Barrett proposed increasing the tax levy by 4.4 percent.  Walker proposed a tax levy freeze (0%), and an increase in the tax rate by 2.53 percent to $4.05.

Barrett has increased the property tax levy in each of the six budgets he has proposed, Walker has submitted a freeze in each of the eight budgets he has proposed.

Employee health care costs were up 20 percent in Barrett’s proposal, while Walker’s plan saw an 8 percent hike. Barrett proposed a freeze in health care premiums and co-pays for city employees. City employees can pay as little as $40 a month for family coverage health insurance or $150 a month for the more expensive plan.  That equates to city employees paying approximately $1,800 a year for their health care while, according to the Kaiser Family Foundation, the average family premium for health insurance in Wisconsin is almost $3,400 a year.

City employees pay 53% of what your average Wisconsinite pays for health insurance coverage.

Walker proposed all county workers increase their health insurance contribution to a standard 15%. Currently, county employees pay as little as $70 a month for family coverage or $150 a month for the more expensive option. If Walker’s full proposal prevails, county employees will pay $2,800 (for less expensive plan) or $3,100 a year for their health care. This would mean that county workers would pay 91% of what your average Wisconsinite pays for health insurance coverage.

Mayor Barrett proposed a wage freeze as a part of contract negotiations.  Walker proposed a 3% across-the-board cut and elimination of the salary “step increases.” Government’s dirty little secret, step increases are the reason why government workers do not worry about having their wages frozen.  They know that step increases always lead to a higher salary every year.

Barrett has eliminated roughly 430 jobs from city’s payroll since he took office.  Walker has eliminated over 2,000 jobs from the county’s payroll.

Barrett proposed 4 furlough days for his workforce. According the Milwaukee Journal Sentinel, the four unpaid furlough days will “amount to a 1.5% pay cut.”  Really?  In the private sector, workers are seeing their pay cut while still being required to show up for work. Walker was pushing for 12 furlough days, or the imposition of 21 work weeks of 35 hours.

Mayor Barrett proposed increasing the solid waste fee from approximately $150 to $170 a year for an increase of 13%. The sewer fee was raised to $95 for a 10.5% increase. The storm water fee went from $47 a year to $56 for a 19% increase.

Walker proposed increasing the standard bus fare from $2.00 to $2.25 for increase of 12.5%. The monthly bus pass was slated to go from $60 a month to $64 for a 6.67% increase. Walker also increased the fee to park at and enter the zoo by a dollar each.

Now that the Mayor has made official his desire to run for Governor, there will be no shortage of analysis and comparisons in the coming days.  We here at The MacIver Institute hope that the media will look past the typical Republican vs. Democrat and conservative vs. liberal rhetoric to dig deeper to examine how the two local government leaders deal with issues of taxes, spending, public sector benefits and the delivery and prioritization of government services.

Past performance is not a guarantee of future results, but it does give Wisconsinites something to dig their teeth into for the sake of comparison.

State Budget Ripple Effect: Paying More For Your Car Insurance

G’day mate. I know how you can save money on your car insurance.

Move.

Far away, across the state line, away from Wisconsin’s state budget process that allows legislators to insert policy provisions into the State Budget.

As of this month, Wisconsin motorists enter a new era in insuring their vehicles. The minimum required insurance for a vehicle was $25,000 for each person injured in an accident, a cap of $50,000 per accident, and $10,000 to cover property damage. The new minimum coverage is $50,000 for each person injured, $100,000 for each accident, and $15,000 for property damage.

The new minimums were passed as part of the State Budget even though the auto insurance coverage minimums really had nothing to do with the state’s finances.

Now the budget provisions are going into effect and many Wisconsin motorists are about to see their auto insurance rates go up. As coverage goes up, so do rates. The Wisconsin Insurance Alliance says auto insurance costs will increase by at least 33%, which equates to a $96 to $309 per driver annually.

Anyone who has sat in their insurance agent’s office can understand this. If you decide you need more coverage, your agent pulls out the chart and tells you how much more you will pay. The agent never says, “This will bring your insurance into the 21st century. No charge.”

Unfortunately, State Representative Tom Nelson, the Democratic Assembly Majority Leader, believes that increasing the mandated coverage for insurance will have nothing to do with the coming increases in premiums. He blames the insurance companies’ investments and the downturn of the economy.

Nelson should consult his legislative colleagues in Florida. (Over the phone. We can’t afford to have Nelson travel there.)  Florida is going through a health insurance experiment called “Cover Florida.” Under the plan, Florida allows the sale of certain insurance policies to the uninsured free of all state mandates. By eliminating the mandates, individual insurance costs can drop from $400 for an individual to as little as $89 per month.

By reducing the cost of providing the health insurance, the insurers are able to offer lower premiums. But when the insurance company is mandated by the state to provide higher coverage, they will pass along the costs to the consumer.

Of course, the Wisconsin legislature does not have an interest in such basic economics, especially when it comes to auto insurance. Now the legislature seems intent on making matters worse. They will soon consider banning insurance companies from having different rates depending on the consumer’s zip code.

Insurance companies often use zip codes to help anticipate the risk of damage or theft of a vehicle. Higher crime areas with greater population densities are going to be incur more risk for auto insurers than rural areas with low crime.

The legislators are saying it’s not “fair” that people in Milwaukee’s zip codes, for example, pay more than those in Jefferson County. They do not say how “fair” it is when those higher risk costs are spread to the rest of the customers. Again, raising the cost of the insurance product will mean higher insurance premiums.

State Senator Mike Ellis understands this and has proposed the repeal of the new minimum coverage insurance mandates. Ellis said in an op-ed piece published at FoxPolitics.net that Wisconsin working families can’t afford the increases in their auto insurance rates.

“Additional unintended consequences could emerge when insurance becomes unaffordable to more and more drivers.

“If insurance rates become unaffordable, more people will risk driving without insurance, despite the new law requiring it. The result will be fewer drivers with insurance. That will lead to greater exposure and risk for insurers who will ultimately be forced to increase rates even more to cover that increased risk.”

That will mean more insurance costs for the drivers that do purchase the insurance. It will also mean that an accident with an uninsured driver could be more likely, increasing the financial risks to drivers.

The new mandates that are supposed to help Wisconsin’s drivers are only going to help one group: lawyers.

The rest of us are going to just pay.

You don’t need a TV lizard to figure that out.

By James Wigderson
Special Perspective for the MacIver Institute

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