Politicians, bureaucrats, public-employee unions and special interests have public budgeting backwards. They draw up wish lists of spending, add them up and then see how much they get to (er, “have to”) raise taxes. What they should do is reasonably project how much resources government agencies will have under current revenue laws, allocate those resources according to public … [Read more...] about Politicians & Bureaucrats Have Public Budgets Backwards
Free Market WatchOne Big Nail in Coffin of Federal Administrative State
Last time, this column reviewed a United States Supreme Court case, Jarkesy, that may end the power of regulatory agencies to act as both prosecutors and judges in matters under their jurisdiction. Since this is a common feature of regulation, a ruling by the court in favor plaintiff Jarkesy – which seems likely – would require extensive reform of regulations in at least 30 … [Read more...] about Free Market Watch
Free Market WatchSEC v. Jarkesy: From Progressivism to Constitutionalism
America’s progressive movement began with the Pendleton Act of 1883, which created federal civil service. It continues to the present, addressing many areas, including antitrust, women’s rights, eugenics, income/wealth equality, environmental protection, labor laws and others. Notable progressives have included Woodrow Wilson, his mentor Richard Ely, Margaret Sanger, William … [Read more...] about Free Market Watch
Free Market WatchSupply Side Option May Fix Southwest Water Challenges
After two decades of drought, water-year 2022-23 (October to September) brought great rain and snow to the Colorado River Basin. Cooler-than-expected temperatures delayed the snow melt, and so the river and reservoirs rose in the second half of 2023 from record lows in mid-2022. Water demand (use) in lower Colorado Basin states (Nevada, Arizona and California) also fell … [Read more...] about Free Market Watch
Should NV PERS Be Allowed to Invest in ESG Securities?
The federal Department of Labor has adopted a rule allowing retirement plan fiduciaries, such as Nevada’s PERS board, to consider environmental, social and governance issues (ESG) when choosing investments for their members’ retirement funds. Under the 1974 ERISA law, the Department of Labor, or DOL, can set minimum investment standards for retirement and health plans. For … [Read more...] about Should NV PERS Be Allowed to Invest in ESG Securities?
A Year Makes a World of Difference to Water and Other Matters
What a difference a year makes in the water outlook for Nevada. In July 2022, Lake Mead dropped to its lowest level since it was being filled in the 1930s. Northwestern Nevada rivers, the Carson and Truckee and other watersheds in the state were experiencing major droughts, as was all of the Southwest. In November 2021, scientists, public officials and media in Colorado had … [Read more...] about A Year Makes a World of Difference to Water and Other Matters
Free Market WatchNevada PERS the Best and Perhaps the Worst: Why?
Nevada’s Public Employees’ Retirement System (PERS) has the best investment strategy among public retirement systems in the country and one of the best records of return. It also has one of the worst records in openness, transparency and accountability. Why? The last six years’ annual percentage returns have been 9.1, -5.1, 27.3, 8.5, 8.6 and 11.9. That’s a cumulative … [Read more...] about Free Market Watch
Free Market WatchDemocrats & Teacher Unions Wrong in Principle on Opportunity Scholarships
In August, legislative Democrats turned down Governor Joe Lombardo’s proposal to fund Nevada’s Opportunity Scholarship program reasonably from surplus funds available, and they left the funding at a minimum level. But Lombardo pulled a rabbit out of the hat and found enough private reserve funding to keep hundreds of students already in the program from losing scholarships this … [Read more...] about Free Market Watch
Free Market WatchSolutions for Some of Our Biggest Public Policy Problems
Last month, this space listed our three biggest, most challenging public policy problems: 1) excess government spending, causing inefficiency and low government productivity; 2) proceduralism, the long public review processes, slow agency response times, and delays; and 3) overreach, inherently ineffective government policies akin to pushing instead of pulling on a string. An … [Read more...] about Free Market Watch
Free Market WatchWaste, Fraud and Abuse Are Not the Biggest Problems … These Are
People often ask public officials about government waste, fraud and abuse – salient problems for sure. They’re often big problems, albeit difficult to ferret out, prove and remedy. The bigger and nearly universal problems resemble them, but are more subtle and challenging to show and remedy. Those problems are: excess government spending, leading to inefficiency and low … [Read more...] about Free Market Watch
Free Market WatchWhat Is Economic Growth and Does It Really Matter?
Recently, I tripped on a defective structure in Reno, fell and broke my hip. An ambulance took me to Renown Hospital, where I got great treatment from a wonderful staff and left four days later with my sainted wife Kathy driving. With me benefiting from strong pain meds and feeling relief and optimism on a sunny day, I waxed philosophical. I noted how smooth were the streets … [Read more...] about Free Market Watch
Free Market WatchA Toxic Belch of Swamp Gas from the Regulatory Marsh
Another belch of environmental swamp gas is rising from the depths of the federal regulatory marsh. Of course, it looks and sounds so innocent, benign and even beneficial - something Nevada investors, businesses, public investment funds, investment fund managers and citizens should welcome, not fear. But it is toxic to all of them and thus to our economy and the public … [Read more...] about Free Market Watch
Free Market WatchGov. Lombardo’s Solutions for Nevada Education
Governor Joe Lombardo has proposed record funding for Nevada education: billions of dollars in increases. He also did two other important things. First, he said our PK-12 public-school monopoly would be held to measurable improvements in student achievement or their funding increases will be reconsidered. Thus, we won’t repeat the key mistake of the past: throwing money … [Read more...] about Free Market Watch
Free Market WatchEconomic Inequality, Poverty and Income Stagnation
With Nevada’s legislature and the U.S. Congress now in session, folks hear constantly about economic inequality (the rich getting richer and poor getting poorer), growing poverty, the stagnation of most incomes, and needs for more income redistribution. The inequality myths were roundly rebutted in the last Controller’s Annual Report (CAR) in 2018 (full disclosure: authored by … [Read more...] about Free Market Watch
Free Market WatchSome Facts and Analysis of Nevada’s 2022 Vote
The Nevada Wins Political Action Committee (PAC) has done some analysis of the 2022 Nevada election results and produced some insights, summarized below. (Full disclosure: I’m President of the PAC.) At the state level, one notable fact is that independents, non-partisans and members of small parties (here, “Others”) are now clearly the largest faction in Nevada politics, … [Read more...] about Free Market Watch