Wednesday, April 10, 2013

SLAs, SLOs and Other Metrics...

 
 

 
 
 
"If you want to fix it, chart it, so we can see where the problems are..."
 
 

My second career in industry was working in the wild world of IT. My job was to be one of the "cops", to ensure the company did what they signed up to do. How this works is as follows: First marketing approaches a company and tells them their IT outsource company will do more for less, therby saving the client company money. The client company usually replies with, "Okay, I am interested. However, you need to back up your claims with dollars". Part of the negotiation for the outsourcing deal is the establishment of solid metrics which both parties agree on.
 
The usual metrics in outsourcing are the establishment of SLAs (Service Level Agreements), SLOs (Service Level Objectives), or some other viable metric. The metrics are absolute - if a metric is missed, money is withheld from the outsourcer's next billing. If enough metrics are missed, the contract is terminated and there are huge termination costs for the outsourcer to assume. To say the least, missing a metric is a huge, huge "no-no", and to do so, can shorten many careers.
 
Right now in the State of Minnesota, many on the Left are clamoring for the House and Senate to spend more money on education. Keep in mind, this state spends an enormous amount on education already. Some want Pre-K, all day K, more for troubled districts (who already get an disproportionate amount of the funding), and of course, more for Education Minnesota. Millions more to be spent, and not one metric to measure it. Not one measure to let the taxpayers know if this is a good way to spend valuable tax dollars or not. Not one metric to hold ANYONE responsible for poor performance or failure.
 
The results in Minneapolis after spending over $20k per student is nothing less than criminal. It is a train wreck. The solution? Spend more money on a system which does not work. How about some skin in the game? Not a penny for any superintendent other than performance bonuses. If the yearly result "stink on ice" as it does in Minneapolis, not a dime in compensation, followed by immediate termination. This would at least hold someone responsible. Excellent results would be rewarded handsomely, average results would receive moderate compensation, status quo results would receive zero.
 
If we want to fix a broken system, we need to think outside the box. We need solid metrics which raise the bar. We don't need to lower the standards, we need to raise them. If we don't want our kids to work for companies owned by the Chinese or the Indians, we need to bump our game. Failure cannot be an option. Poor performance cannot not be tolerated. Teachers who just "mail it in", will be shown the door.
 
We need to treat public investments the same way as private investments. Then we will see some results to be proud of.
 


The TRUTH about the Minimum Wage

 
 


"All work is Honorable..."



Sometimes when I think I have heard it all, I hear another whopper. Yesterday, while on the treadmill, I listened to the President go over his first (in forever) budget. In typical progressive jargon, he explained "investments", "fair share", and all the usual lingo. However, I almost fell off the treadmill when President Obama discussed how he wants to raise the minimum wage. His words - "We need to get it up to $9/hour so people can make enough to live on".

I was reminded many years ago when the Twin Cities had a very popular talk radio station. The afternoon drive host was addressing a proposal by the City of St. Paul that any city contracts would have to offer "livable wages" to workers. The only problem was the term. What is a "livable wage"? The host suggested this - for a family of four with house payment, car payment, school expenses, food, utilities and so on, the barest of "livable wages" would be $20/hour. I dare say that amount would be much higher today.

Not to tip my hand on how old I am, when I started to work at the ripe old age of 16, I was paid $1/hour. That was a common wage back then. For those who were fortunate, had connections, and did not mind working hard in the summer time, there were some construction jobs that paid up to $3/hour. However, most of us ended up in retail making $1 to $1.50/hour.

Even back then I knew $1/hour would not be enough to live on. It was fine when living at home with Mom and Dad, but to be on my own? Forget it. I knew I needed to increase my wage by either further schooling, getting a trade, or merit. That was the only way the dollar an hour was going to increase. I did find a way to go to college without going deep in debt, and then found a job which paid enough to support marriage, a house and then kids. The government had NOTHING to do with establishing my wages during my entire career.

Recently, there was an article in the home town newspaper saying Minneapolis had one of the highest rent to income ratio of any city in the country. To afford an average two bedroom apartment, you would need to make $18/hour. This amount would allow one to afford rent, food, utilities and so on. That is double what the President said a "livable wage" should be. $9/hour does not buy spit these days. Try buying a half-way decent car making that much - never happen.

To increase wages, we need to increase OPPORTUNITIES. Been like that since the beginning and continues today. People need to see an opportunity and then pursue it. If they choose not to pursue it, well, life is about choices. My feeling has been for many years the minimum wage is silly. Let the market decide what a fair wage is. The higher the government sets for wages, the fewer number of people an employer will hire. Basic Econ 101.

So the next time you hear a politician blather about the minimum wage, ask yourself this question - who in the world can live on that amount? And if it is too high, who in the world can pay that amount? It just takes common sense - or as they said years ago, Garage Logic...




Tuesday, April 9, 2013

The TRUTH About EBT Cards


 
 


"The Money Tree is running out of fruit..."
 
 

These days it is hard to get through a week without reading or hearing about more fraud involving EBT cards. The concept is good - if everyone who is issued one is honest. However, if the receiving person wants to "game the system", these cards are better than gold. The best part is there are very few "EBT Police" to ensure these cards are used for their assigned purposes.

This was taken from the Exposethemedia.com website in February of 2011:

I have a friend who receives payments from the government for food, and she doesn’t get food stamps. My friend gets an actual credit card which grocery stores call an EBT (Electronic Benefit Transaction). It is literally swiped at the register just like a credit card, only she chooses EBT instead of VISA. The government replenishes her card every single week, and they never forget. The only thing she needs to do to get the free money, is NOT work. She can buy gum, soda, 30 dollar steaks and so much more.

In January of this year, the New York Post reported the following:

Welfare recipients took out cash at bars, liquor stores, X-rated video shops, hookah parlors and even strip clubs. A database of 200 million Electronic Benefit Transfer records from January 2011 to July 2012, obtained by The Post through a Freedom of Information request, showed welfare recipients using their EBT cards to make dozens of cash withdrawals at ATMs inside Hank’s Saloon in Brooklyn; the Blue Door Video porn shop in the East Village; The Anchor, a sleek SoHo lounge; the Patriot Saloon in TriBeCa; and Drinks Galore, a liquor distributor in The Bronx.

There is so much more I could report on. The internet is ripe with case after case of MASSIVE fraud and abuse. One report I read estimated the amount of fraud in the $80B EBT program was 20% - that would make the waste almost $16B a year. Other estimates think the number is much higher. The bottom line is this - with almost 1 out of 7 people using food stamps under the SNAP Program, this is a financial train wreck. EBT cards and PINs are sold in broad daylight with no fear of recrimination. The taxpayers in this country have gone from compassionate givers to suckers.

For some reason, President Obama does not mind being called "the food stamp president". He should. Being so poor that you must receive food stamps to get by means our system is still broken. It means too many people are still not working at good paying jobs. It means our economy is still in the tank.

The EBT Program is a waste of time and taxpayer money. Someone has to tell the Emperor he is not wearing any clothes. Either fix the economy, or develop welfare programs that work, and don't waste.

TCO

 
 



"Don't worry, if get the Feds pay, it won't cost us anything"



For those who have gone to business school, TCO is a familiar term. It stands for Total Cost of Ownership. For companies with a solid bottom line, every investment is looked upon not just from acquisition cost, but also total cost - a total cost of ownership. However, many times government investments ignore this all important issue.

A good example of this are the discussions on the NLX - the Northern Lights Express. The current guessers are saying this railroad line running from the Twin Cities to Duluth, will cost just south of $1B to build. That would be only a part of the costs. Once it is built, it needs to be operated. A responsible company would look at the "pay back" period - how long before the initial investment is recaptured for the investors. This train, which most people cannot imagine taking to the North Shore, will never pay for itself. The operating revenue (price of a ticket) would have to be astronomically high to cover the development costs, cost to service the debt to build, ancillary costs, maintenance costs and of course, operations costs.

If the NLX was presented to the taxpayers with all the anticipated costs, as well as a realistic revenue estimate, it would never be built. The same could be said if we had done that for light rail, the Northstar, and the multi-billion dollar rail they want to build in California. None of these rail lines are now or will ever be self supporting. That is unless you can charge $100/ride and enough people are willing to pay it.

Again, back to the NLX. This is a solution to a problem which does not exist. I could almost understand the logic if the city of Duluth had a wonderful transportation system which could pick you up at the train station, take you anywhere in town, or if you wanted, Points North. However, this is not the case. You get off the train and do ---- what? People like to drive to Duluth for a variety of reasons. They need their car to explore and haul stuff. Taking a train up there makes no sense what-so-ever.

It is comforting to know that even though the NLX will never happen, we are already spending money to look into how to build it. This is madness. This would never happen in the private sector. When asked why so many are cynical of government, this is a prime example. The TCO for the NLX would be sky high and would end up being the train to nowhere. Like Amtrak before it, the NLX would just stop running due to lack of support. All that money would have been wasted, and once again, the taxpayers would be stuck with the bill.

As taxpayers, we need to demand our representatives show us real cost and real revenue estimates prior to any public investment. The way of doing business in the past will not suit us in the future. We are broke and getting broker. Time for a change. Time to get real. Time to stop wasting our money.

Monday, April 8, 2013

The Great Houdini

 
 

 
"There's a sucker born every minute"
David Hannum
 


It has often been said the greatest magician off all time was Harry Houdini. When I was growing up, I watched the movie Houdini starting Tony Curtis over and over again. Houdini was the greatest master of misdirection in his time - maybe all time. I did not think anyone could ever be better at misdirection. That is until 2008, when the current crowd moved into the "big house" in Washington D.C.

As we were gone most of the weekend, I had to record some of the Sunday morning news shows to watch at a later time. Last night I watched the ABC show. It was an interesting panel consisting of Professor (Paul) Krugman, David Stockman (Reagan's OMB guy), George Will, Greta Van Susteren, Arianna Huffington and of course the host, George Stephanopoulos. It was a good mix.

I have seen all of these folks previously on other  talk shows. I know their views. David Stockman, who at one time was very loyal to President Reagan, "wandered off the reservation" after the "gippers" term was up and started talking more like a lefty than a conservative. After five years of the Obama Administration, he once again has found his voice, and is back. He has a new book out (The Great Deformation), and George Stephanopoulos wanted his buddy, Paul Krugman, to take Stockman to task "on the facts". 

What happened next was a surprise to even the most jaded of political junkies. Everyone, including Ms. Huffington Post, started ganging up on Professor Krugman. It seems that the game is up - the man behind the curtain has been exposed. The "Great Houdini" of our time (President Obama) has been found out. And Professor Krugman got stuck trying to defend the indefensible.

The fireworks really started to fly after Professor Krugman said the unemployment number was not good, but improving, Stockman reminded him that if the workplace participation was the same as in 2000, our unemployment rate would be over 13% - and that is the U3 number! Greta then jumped on the pile and reminded Paul the disconnect between Main Street and Wall Street was absolute and growing. She said "People are really suffering out there, and nobody in Washington seems to care". George Will took umbrage with the professor about the workplace participation number. Whereas Krugman said it was low due mostly to "baby boomers" retiring, Mr. Will used recent history to set little Paul straight on that point. Finally Arianna jumped in the fray by telling George Stephanopoulos and Krugman that "This President is concerned about everything but the economy. He needs to get focused and help fix this mess". 

The show ended with the usually very smug Krugman looking like he just finished going through a car wash with no car. It was truly a moment. Before they signed off, Stockman had one more tidbit to throw on the fire - our debt. He reminded the panel it is almost $17T, and looks like it will top $20T by the end of Obama's second term. George Will then added that once the Fed allows interest rates become real again, the interest to service a $20T debt will be the problem more so than entitlements. Krugman tried to argue that point, but by that time he looked more like a whipped dog than a Nobel Prize winner.

For a change, I felt very good after seeing a Sunday morning talk show - in fact, I felt ebullient! The cat is finally out of the bag! Even people who are "left leaning" are starting to see how the rabbit comes out of the hat. No more blaming Bush, no more blaming the weather, no more blaming anything. The economy is in the tank. It has been in the tank since the start of the first term, and it continues to grind to a stop. What the Administration has done IS NOT WORKING - IT IS MAKING THINGS WORSE! Thank you ABC, for FINALLY letting the truth out. We now know how Houdini does his tricks. 

Sunday, April 7, 2013

The How and the Why...

 
 


"My goal is simple. It is a complete understanding of the universe, why it is as it is and why it exists at all"
 
Stephen Hawking
1985 
 
 
I like it when people are honest. I really like it when scientists are honest. As of late, more and more scientists are telling us how much they don't know, rather than what they do know. For example, in 2012 a group of astronomers came forward and declared they only understand 4% of the universe. In addition, other scientists have told us they know more about the surface of Mars (which is not much) than they do about our oceans. Finally, more and more are being brutally honest by saying this - they don't know why things have happened in the past or continue to happen today. Some can guess on the how, but not the why.
 
One of my favorite theologians said God may be seen in the vastness of space as well as in the most minute of atomic building blocks. The immense vastness of space is something so incredible, it is impossible for the human mind to comprehend it. When I was a young boy, I would look to the heavens and extend my arm. I would pretend that if my arm went on indefinitely, it would never stop. I thought about forever, both in time and in space. It is a concept the human mind cannot understand - not even slightly. If someone was asked to define the "how" and the "why" of forever, it would be impossible. There are no words.
 
In our back yard, we have many varieties of birds. Most are songbirds, but we also have a nice selection of woodpeckers. Why are there so many beautiful varieties of birds? Why are the birds colored so differently, so stunning in their design? Why is there color at all? Where did this color come from? The scientists will tells us this comes from years of genetic manipulation. How that work? Why does DNA control so much, and how does it become implanted in our cells and evolve over many thousands of years?

There are so many mysteries in this world, it can boggle the mind. It is tempting to say everything that exists now, has ever existed, or will exist in the future, is result of evolutionary mutation, an accident. Or, are things the way they are due to a "grand plan", an architect, a Creator. As tempting as it is to write God out of the creation, it is a giant leap of faith to think everything our world and our universe, happened without Him. It is okay to try, but it is climbing a very steep hill to do so.

So tomorrow, as I have done most every day, I will look at our world with wonder and amazement. All of this was created for us to enjoy and explore each and every day. Will we ever understand everything at our feet or in our skies? Probably not. But who cares? We don't have to. With spring right around the corner, our world will once again turn green and the miracle of growth will be all around us. We will see wonders we have seen many times before, or if we are lucky, we will find new ones to behold. As I explore the earth, as I look to the sky, I see the fingerprints of God. They are on everything, both great and small. That is my belief, and I am good with it. I am very, very good with it.
 


Thursday, April 4, 2013

Teach your children well...

 
 

 
"Teach your children well,
Their father's hell did slowly go by,
And feed them on your dreams
The one they picked, the one you'll know by"


Teach Your Children
CSN+Y


Those who have spent gobs of money sending their young, hungry minded kids off to get a quality education, here is a news flash - you might be getting ripped off. For some reason, our institutes of higher learning have turned into bastions of left leaning, latter day hippies. They are free to expound upon any topic, no matter the class subject, and our kids are forced to listen to, take notes, and be tested on this garbage.

Before I go into some of the bad actors who are teaching our kids, let us first address the cost of higher education. This is from the College Board website: A "moderate" college budget for an in-state public college for the 2012–2013 academic year averaged $22,261 (over $88,000 for a four year degree). A moderate budget at a private college averaged $43,289 (over $175,000 for a four year degree). And that does not include books. College books these days, which are also written by the same "Commies" that teach the subject, can cost hundreds of dollars each! When is the last time any of us bought a book for even a fraction of that much?

First we have Kathy Boudien. Do you want to send your kid to Columbia and spend a boatload of money? This former Weather Underground murderer, is now out of prison and is an adjunct professor at Columbia. Not only did she take part in the robbery of an armored car, she was involved in the killing of two cops and a Brinks guard. In most states, you kill a cop, you are locked up for life. In some states, you will fry in the chair. How she only did 22 years is beyond me. So she gets out, wins some award from the Sheinberg Scholar-in-Residence at NYU Law School, and next week will be featured in Robert Redford's new pinko film called The Company You Keep. To say the least, the families of the victims are beyond outraged.

What ever happened to the person that founded the Weather Underground? You know, that Bill Ayers guy. That close personal friend and former neighbor of President Obama. A little background about our all American boy, Professor Ayers. He was involved in a bomb making operation which killed two of his contemporaries, and then participated in the bombings of the NYC police HQ, the United States Capitol and then the Pentagon. Fortunately, nobody was killed in these blasts, but the damage was in the tens of thousands of dollars (quite a bit for the early 1970's). His punishment? A slap on the hand and working at the University of Illinois at Chicago College of Education as a Distinguished Professor. Oh, just to think how many of our teachers learned under this radical. Then those teachers went on to educate our youth.

Who can forget Ward Churchill? This is someone we all want teaching our kids. Although not a criminal like Ayers and Boudien, they garbage that come out of his mouth when teaching at the University of Colorado at Boulder was nothing short of outrageous. He was a professor of ethnic studies and focused on the treatment of Native Americans by the United States government. In 2001, we wrote an essay called On the Justice of Roosting Chickens. In that essay, he basically blamed the 9/11 attacks on - - us. He referred to the people who died in the World Trade Center as the "technocratic corps" made up of "little Eichmanns". That was even too much for Colorado and they canned him. By this time the damage had been done - many thousands of students had to listen to the crap that came out of him mouth.


My advice is before you send you innocent kids to any college or university, do some homework. Looks into the classes which are required, and which ones are electives your kids might take. None of us would buy a car we knew could be a lemon. We should look at colleges the same way. As long as we keep paying for the product being taught to our kids, the longer they will keep teaching it.