Like a Republican Flipchart: OMB news

OMB came out with what they call a "Mid-Session budget review", so ok I've never met federal-ese with numbers in it I didn't like to pore over to find what is in the tea leaves so - this seemed *way* more interesting than anything I was supposed to be working on..

What it shows are receipts (revenue to the government), outlays (what the feds spend on everything), and the net difference (deficits for the next 10 years). This is a 10 year view, and an update from the February budget projection.

How do things look? Looking at what we collect in terms of social security payroll tax and what we pay out, these numbers are fairly close. You could very certainly make tweaks to social security and make it balance. That is if you want there to be a nexus between taxes collected and what they are paid out for. As opposed to randomly collecting my hard earned income tax pennies and using it to build B-1 bombers and such which I did not ask for.

Here is the breakout of federal revenue for the current year, George this is for you!
43% Personal Income tax; 33% Social Security payroll tax; 9% Medicare payroll tax; 6.2% Corporate tax, 1.8% Unemployment tax. And other miscellaneous receipts.

But what we pay out is more than what we take in, consistently, every year. "Deficits as far as OMB can see", well for the 10 year view. And while I think and know that budgets are political statements, and this is authored by OMB, which is under direction and control by the White House (you know, the one at 1600 Pennsylvania Avenue, that one). All of it looks unsustainable. Even to a Democratic administration.

If it were me looking at this budget at my kitchen table, like I was feeling when I thought my Little Theroem daughter might get accepted to MIT, with possibly no financial aid. Ack! Must get a better job cause this is important! Must get more income!

As Fareed would advocate, we need a VAT (Value-Added-Tax).

There are other interesting things in this document, look for yourself:
http://www.whitehouse.gov/sites/default/files/omb/budget/fy2011/assets/11msr.pdf

Policy choices are costed out in there, over 10 years, with their budget impact. Most of this is at the margins. Its like trying to influence the ocean subduction zone by messing with outflows at the mouth of the Columbia River. It may be the right thing to do, but it has no impact.

Then read to the footnotes at the very end to find that the total federal debt it over $7 Trillion (or as they like to put it $7,000 Billion, which sounds smaller don't you think?)

Climbing Tiers not Ladders

April is the cruelest month..

The Unemployment report that comes out on Thursdays - lets look at the one from last week. Count up how many are claiming regular benefits + emergency unemployment benefits (EUC) + extended benefits (EB) - you get to 9.9 million.

The peak was April 2010, at 10.4 million people.

Maybe you have heard of the "Tier 5" clamour. Right now you can get up to 99 weeks of unemployment benefits, thats it. Just cause Congress keeps extending the deadline does not increase 99 weeks for you, they will cut you off.

Well, so find a job already! I ran into my friend who manages a Worksource Oregon center today. She did look pretty down. So whats up? Lots and lots of unemployed construction workers, that is what they know, and there is precious little out there for them. Have many people signed up for retraining, I asked. Well, she told me, you have to be able to sustain yourself on unemployment checks to stay in training - not feasible for everyone. She did tell me there were some new job listings. Perhaps not enough for the throngs that visit her office daily. I tried to offer encouragement, well at least you are letting them know about resources, options, and are a kind voice to listen...

Tier 5 would add an additional 20 weeks of benefits to states with high unemployment. Courageous advocate Senator Stabenow from Michigan has put this legislation forward. Not exactly a career ladder, but the desparate plight of the unemployed now hopes for tiers.

In a previous life, refocusing from other previous lives (not 9 exactly, yet) in software and manufacturing project management - I kept a clipping file before I discovered blogging (which is way more fun). There was the Valentine's Day 2004 unemployment extension (in Oregon). My local economist has this clipping posted on her cube wall.

Fareed Zakaria has a weekly show on CNN called GPS (Global Public Square), almost better than cspan and that is a tough thing. He had a liberal economist on last week, Jeff Sachs from Columbia. Unlike other liberal economists that I might follow through twitter, those Nobel Prize winning ones, this Mr Sachs was saying no to more stimulus. And in fact in-stead of stimulus we should have spent federal money on Investment.

Apart from the usual left (more stimulus!) right (less deficit spending!) rhetoric that I am at the point of -completely- tuning out, this was the first sensible thing I've heard lately. Yes of course. Invest in infrastructure - clean energy. Build smart grids. Build a new Sellwood Bridge. How obvious this should be - it would create j-o-b-s.

Without new jobs or investment we are headed for another season of political stalemate this fall. The less interesting thing to do is to add yet another tier of unemployment - lets see that would bring it to 99 weeks + 20 more weeks = 119 weeks. It takes 38.7 weeks to have a baby, sooo, you could have 3.0 babies in that time while you are collecting those unemployment checks. This is not ok.

Here is why I love Portland

Berries turning into raisins on the sidewalk. The smell of fresh basil, a bunch in my basket. Giant fig trees that have been here since the last millenium.

Maybe I will move here; maybe someone will buy my suburban home and turn it into a Montessori school - could happen..

Bought a video from the Hollywood Street Roots guy "Scott". So how did you get the production resources to make a video, I asked him. He met a video producer at the local Starbucks. Donation filmmaking. Another reason to love Portland. His video is titled "Homeless in PDX", so will check this out.

Nervousness at the Capitol

In keeping with the "as seen and heard" tradition, what is the sentiment in Salem this chilly August pre-furlough day?

Faces I recognize in the cafe. Gary Blackmer, runs the Secretary of State audits division. I could legitimately have said hello since when last we were in the same room together it was for a retirement gather for a mutual friend. But alas, either I was in stealth mode (or thought I was? or like to be?) or I just choked.

Another face I wanted to say Merkley but no it was Dave Hunt (Speaker of the House). What about that budget, I could have asked. Where is our salvation. But, I let him stand peaceably in line.

I almost envy the job of the capitol janitor, methodically pushing his silent soft wide broom across the marble floors. And walls too.

Now that they have displaced the bus depot since the Marion county building was determined to have "structural flaws", they say crime is up here at Willson park. Well the townies are at bay today, thank you.

People in agency hallways are already posing what if scenarios about the next Gov. What if it's Dudley. Yes what if. No one can imagine a zero-based budget but perhaps this is just a failure of imagination.

Next week will be interesting- just how do you hack $1 million off the state budget??

The Bread was Baked Fresh Today (on trust)

Chances are 50/50 someone trying to sell you something is lying.

On anticipation: It is still "summer" yet dead daisies abound. So we already live one month ahead in anticipation. Maybe retail has it right (or has us assessed right).

Jackie, my creative writing Motown counterpart. Oh! Does she run around taking pics with her iphone? Thats my life, and observation. Her destiny was to get out of New Jersey (as well all must) go to Illinois along the lakefront (as some of us must) and get a PhD in film studies.

I suppose after I read Harriet the Spy in 4th grade it was really my high school creative writing class that got me into observation mode. Jackie living in Portland, well she took the same class. We have the same history, race riots sophomore year, etc. Yes it was pretty incredible, but all a part of us.

The bread thing - how much would you need to make for you to lie for your boss? Well, I guess I make enough now. Back when I was in grad school looking for summer work, I found a job 2 blocks away at the Acton Bakery (Mass). Where I was told to tell the customers "The bread was baked fresh today!". Hmm, I told them I didn't make enough (at $6.50/hour min wage), so I didn't have to lie. So maybe you can trust people making minimum wage to tell you the truth.

But wait, we are in a Great Recession and no one would dare do anything to get fired, so.. I think you can trust people as far as you can throw them. Or till they've lied to you 3 times. Problem is, the longer you work someplace, the more friends you have, and the more people on your X list (those who have lied to you three times).

So lets see - trust. You can trust people who make minimum wage when we're not in a Recession. You can trust people as far as you can throw them. You can generally not trust people from New Jersey until they have escaped; except of course Mayor Cory Booker in Newark, he remains an inspiration. I hate to think trust is taken day at a time. But maybe our observation about whether to trust someone changes every day.

The State of the Northwest Economy, mid-August

Hillsboro - all the old shops are turning into discount mattress stores. Even "Just a Buck" couldn't make it, and is now a mattress store. Also the old independent video store on 185th which turned into Blockbuster and is now --- a mattress store. score: -2
Hillsboro 2 - Yahoo parking lot has, maybe for the first time since I've been watching, more cars than the DHS parking lot! It is Sunday too, so they must be logging overtime! score: +1

Highway 101 along Hood Canal - signs of creative destruction as old establishments go by the wayside and do-not sit vacant but have new creative owners (like the restaurant in Hoodsport). score: +1
Highway 101 2 - counted 3 new espresso stands. Well I guess the "Seattle class" is making their mark and the locals are able to make money off them, one double-caramel-macchiato at a time. score: +3

Portland - why when you drive into Portland along I-5 is the billboard announcing "Welcome to Portland" a Bud Lite bill board? Isn't Portland the micro-brew capitol of the free world? Problem with branding here. score: -1

Tally for mid-August: +2. Economic recovery?

Private property rights - Part 2

After my heightened level of concern had dissipated some, staring at my trees swaying in the breeze - since they are 100's of feet high this is a magical thing.. My neighbor Bob came by in his truck. He was not yelling this time so I found out his story of building a house, having to purchase a third lot to allow for water/septic separation, cost of electrical lines, building permits etc. He assured me he did not take out any of my trees, and the trees on his land he took out were carefully done so as not to topple on my trees.

OK I will have to take his word for it. I am ok with this.

Now there are other reasons to look into Washington State law, or RCW (Revised Code of Washington) as they affectionately call it.

My real purpose for going up there had been to clear some brush - well lacking either tools, not liking the prime time mosquitoes and being unprepared for them, and being a bit frazzled over the whole neighbor-clearcutting deal, I ran out of time. My 2:00 deadline of going to the group picnic had approached!

The property owners of this little set of lots (as many as 765 landowners apparently, so not so terribly little) have an annual summer picnic at the River Kitchen along the Duckabush River. So I trekked over with my organic Eugene strawberries. Along with yummy grilled hot dogs, multiple varieties of macaroni salad, bean salad and even chocolate cheesecake (with chocolate chips), I met a few people.

Mostly Glenn who is one of these rennasaince people who has been around, and around, and around, and has an opinion on everything but despite that is still searching for answers (I love it!). Of all the 765 landowners I should run into, some with houses and triple lots, some with canal frontage and nice boats, I would run into another simple lot owner, on my street at that.

After I assured him I was not the one who "bulldozed" his lot, his concern was mainly about public access to the river for fishing. For many years he thought there was a public access lot to the river over near the kitchen. However someone chewed his son out once attempting to gain access there, saying it was private property.

So how does one attempt access to the waters of the state. For some issues studying federal policy from cspan on down does not prove helpful. He was telling me that lot owners along the river own to the middle of the river. I thought perhaps the state owned the water, but his reply was yes maybe but not the land underneath - so unless you can throw yourself in and float..

I have not thought much about river access. In Oregon (California too?) ocean beach access is public, though people may own beachfront lots they cannot own the actual beach, which has to be available to the public.

So what about these rivers? What about the steelhead, cutthroat, trout, that, even though numbers are way down apparently, are looking for fishers to get them? A question for RCW to be sure.

One more person I ran into up there was Brett, who was one of the first people I met up there back in the days when stock options could buy land. Not like today where stock options are but a legend and land is not something normal working bureaucrats can afford.

He told me he "lived off the land". Nice to be near a national park I guess, where you can harvest holly in the winter (and sell it), and whatever else I forget. The nicest person you could meet. Didn't laugh at me and my daughter when we were in danger of being sucked into the mud on our oyster quest (someone told me there are even mud snakes, good thing we steered clear of them!). And still helping out at picnics and such, a little more bedraggled with fewer teeth than before.