Rent Seeking

Cronyism, Michigan, Opinion, Proposal 15-1, Rent Seeking, Taxes

MDOT: What’s Another $4,400,000.00? It’s not Like it’s Your Money

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This is what arrogance and graft within bureaucracy looks like, folks.

The Michigan Department of Transportation is negotiating a lower lease rate for 23 passenger railcars now costing taxpayers $3,000 a day to sit idle. But the length of time the state could have to lease the cars before it can use them has doubled from two years to four years, according to a report sent to state lawmakers.

At the current lease rates, that means MDOT [taxpayers] would have to sink about another $4.4 million into lease charges before it is able to put the cars into service.

The Free Press on Feb. 1 broke the news of the idle railcars, which are intended for two proposed commuter services in southeast Michigan and so far have cost the state [taxpayers] about $12 million in refurbishment, consulting [more graft] and leasing costs since 2010.

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A half decade. 5 years and the plan is – there is no plan? Despicable. To say that This Guy is an incompetent boob and complete charlatan is an insult to incompetent boobs and charlatans who are forced to somehow figure out ways to survive in the private sector.

Single Cent Snyder is a total disgrace as well is every single legislator still in office who voted for this offensive garbage, which would be forever entrenched into our state’s constitution. And, don’t forget about the embedded fraud to the tune of at least $70M more per year. Do also note that Joan “gets it” about EITC.

Remember when Two Penny Jenny was a bad idea? Ya, well, with Single Cent Snyder… It Only Gets Worse. A lot worse if figuring in this unresolved can of worms.

Second highest Sales Tax in the nation, and the ballot proposal DOES NOT guarantee monies go to roads or schools.

That is fact.
STOP-167

You Betcha! (23)Nuh Uh.(0)

Cronyism, Elections, Michigan, Michigan Politics, Proposal 15-1, Rent Seeking, Republicans, Taxes

MDoT Train Wreck Still Emptying Michigan Wallets

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Michigan Department of Transportation passing even more cost through to taxpayers.

Train Wreck ImageThe failure that is Kirk Steudle and the Michigan Department of Transportation continues to demonstrate that it cannot plan nor manage taxpayer funds efficiently.

RightMi.com readers might recall that the MDoT has been spending taxpayer dollars to babysit equipment that other people own. In the last few years, it has amounted to a drop in the bucket when compared to what is a bloated state budget of 52+ billion smackers, right?  But buckets eventually fill from all the droplets as we all know, and the spigot in this case is opening more.  From the Lansing State Journal:

At the current lease rates, that means MDOT would have to sink about another $4.4 million into lease charges before it is able to put the cars into service.

That line is sufficient to point out that Steudle’s comment earlier in the year was nothing more than lip service.

“These cars are costing us money right now and we’ve got to figure out how are we going to … stop the bleeding,”

As the old joke goes .. “Whats this ‘we’ s##t Kemosabe?”

 

 

 

You Betcha! (17)Nuh Uh.(0)

Conservative News, Democrats, Detroit, Michigan, Michigan Politics, Proposal 15-1, Rent Seeking, Republicans, Taxes

When It Becomes Serious, You Have To Lie

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TRIP Boosts Their Lies 109% to Get Your Vote

dozer-money

The proponents of Proposal 1 never envisaged the losing position they now occupy two weeks before the vote, so their media shills have resurrected the titillating lies projections of a road builders’ organization called TRIP to bolster their case. Here are the most visceral quotes from Michigan’s two largest newspapers, demonstrating their well-honed propaganda skills:

Detroit Free Press

“Michigan’s poor roads threaten to derail its economic recovery, according to a new report by a national transportation research group.”

“The report says that 38% of Michigan roads are now in poor condition, up from 23% in 2006. It also found that 45% were listed in fair condition and 17% were listed as good.”

“The report estimates that Michigan motorists pay an average of $686 in increased operating costs, including vehicle repairs, because of the state’s poor roads.”

Detroit News

“By 2025, the share of major roads in poor condition is projected to increase to 53 percent,” TRIP said in its report. “Keeping roads in good condition by performing minor maintenance is far more cost-effective than waiting until roads are in fair or poor condition when it becomes far more costly to make needed repairs.”

“According to TRIP, driving on rough roads costs Michigan motorists a total of $4.8 billion each year in the form of extra vehicle operating costs, representing an average cost of $686 annually per motorist.”

”That’s the conclusion of a report released Monday by TRIP, a Washington-based nonprofit organization that researches, evaluates and distributes information on surface transportation issues.

The Detroit Free Press only identified TRIP as “a national nonprofit transportation research group” in this pivotal story.  They were a little more candid in a previous story, so they can’t claim not to know what TRIP is.  The Detroit News identification of TRIP was every bit as dishonest.  Only our ‘newer’ media is more truthful, if still not entirely accurate:

Mlive.com

“The annual TRIP study, conducted by a national research group funded by transportation industry interests, pegs the yearly cost at $686 per Michigan motorist.”

“TRIP findings have long been cited by road funding advocates, including Gov. Rick Snyder.”

TRIP obligingly released a raft of new lies in a series of press releases on Michigan roads at the Detroit Regional Chamber (a kindred IRS 501(c)(6) organization, more on this below the fold) on Monday. These stories are an update to TRIP’s January 2014 lies which we covered in January. The comparable examples of TRIP’s 2014 lies (since removed from the web) are:

  • An inadequate transportation system costs Michigan residents a total of $7.7 billion every year
  • Driving on rough roads costs Michigan motorists a total of $2.3 billion annually in extra vehicle operating costs
  • Driving on rough roads costs the average Detroit urban area motorist $536 annually in extra vehicle operating costs
  • Driving on rough roads costs the average Michigan motorist $357 annually in extra vehicle operating costs

TRIP’s 2015 report on Michigan annual excessive vehicle costs is a $ 2.5 billion (or $ 329 per motorist) increase above their 2014 lies projections.  A 109% increase above their 2014 lies.  Far beyond any assessment of the 2014 to 2015 deterioration of road & bridge conditions in Michigan – even the totally bogus PASER ratings.  Since the $ 2.3 billion (or $ 357 per motorist) 2014 TRIP number didn’t move you to vote for Proposal 1, the new and improved $ 4.8 billion (or $ 686 per motorist) lie is expected to change your mind on Proposal 1.  They think you are that dumb.

So is TRIP a “nonprofit transportation research organization”? Sounds like an independent, credible source – right? Do the adjectives ‘nonprofit’ and ‘research’ give you a high level of confidence in their pronouncements?  Does ‘organization’ or ‘group’ give you the impression that hundreds of researchers are assessing road conditions across the country?  Perhaps you should dig a little deeper than our lazy, lying media scribes.

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All the Other Stuff, Conservative News, Cronyism, Democrats, Michigan, Michigan Politics, Rent Seeking, Republicans

Clash of Titans, A Right Plan of Action

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RightMI Counterattacks!
Part IV – A Right Plan of Action

So how should average middle class Michiganders engage in this electricity debate? What should they demand in the 2015 legislation on electricity? Can they prevent the titans from looting their family budgets?

First and foremost, Michiganders should demand an end to hybrid deregulation. All electricity consumers should be under the same regulatory scheme, with equal options to escape. No favoritism. This aligns the interests of politically potent, large electricity consumers with those of the average Michigander. This creates an effective counterbalance to the political power of the utilities; political power purchased with your electricity payments. Even full regulation is preferable to our current hybrid deregulation scheme.

Michiganders should further demand full deregulation of our electricity market. As regulated entities, utilities have a ‘cost plus’ mindset which relentlessly drives prices higher. Regulatory bodies limit themselves to dampening this drive for higher prices, but do not drive efficiencies which would genuinely control energy costs. Competition-driven efficiencies are very important to Michigan’s economy, which still has a significant, energy-intensive industrial base. Also Michigan’s utilities have not demonstrated any special competence operating their electrical power stations, so competition in the supply of electricity will promote best practices there and lower costs as well. Ultimately, a deregulated grid properly managed is more tolerant of supply shocks because more actors will be supplying the electricity.
wind turbine fire close-up
The RPS should not be renewed at any level. Renewables should not be forcibly subsidized by any ratepayers, overtly or covertly. The current PA 295 regulatory scheme has residential electricity consumers subsidizing renewables through skyrocketing rates, while large consumers escape this burden.  As renewable energy sources become cost effective, they will be welcomed by all parties.

If environmental wackos want their own electricity to come from RPS renewables, let them pay the full cost including base load backup costs. Most renewable sources are intermittent and require expensive base load backup capacity for periods where they cannot generate electricity. The Midwest Independent Transmission System Operator (MISO) historical record shows that Michigan wind power, by far the most significant current RPS component (883 turbines, about 58% of RPS power), was only available 31.5% of the time (termed ‘capacity factor’) during 2011 and 2012. During two months, July and August of 2011, wind was available only available 16% of the time. Most evaluations of the cost effectiveness of wind and solar generation pointedly neglect the costs of base load backup capacity to keep the lights on.  Essentially, wind power capacity has to be backed up by 100% of its rated capacity with fossil-fueled base load capacity to prevent blackouts during zero wind periods, so why bother install wind power (or solar, for that matter) in the first place?  Ratepayers subjected to RPS get to pay the capital costs for twice the generating capacity they actually need.

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All the Other Stuff, Conservative News, Cronyism, Democrats, Michigan, Michigan Politics, Rent Seeking, Republicans

Clash of Titans, Viewed from Below

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King Kong 1
Part III – Clash of Titans, Viewed from Below

Fortunately, the greed political acumen of DTE and CMS Energy is coming to your rescue. Both utilities are seeking full reregulation of Michigan’s electricity market. They are issuing thinly veiled threats about brownouts ‘reliability’ of supply unless Michigan forces the fortunate 10% back into our utilities’ waiting arms. And with President Obama’s hobbling of coal-fired power stations ramping up, they actually have a point. So the fortunate 10% will have to seriously reengage in Michigan’s electricity rate debate or their electricity costs will skyrocket.

The environmental wackos haven’t been idle either. The new model, term limited, Governor Snyder has evidently made up with our ur-RINO and is now endorsing a 40% RPS by 2040. To keep Michigan’s serfs in line – and avoid impeachment – he is specifically not calling for this to be a mandate, rather calling it a ‘goal’. Coming from Michigan’s Governor, this is a distinction without a practical difference. Snyder appoints the three MPSC commissioners who oversee electricity policy and MPSC operates under the aegis of LARA. Think Governor Duggan, Snyder’s designated successor, will change this policy? Other Michigan politicians are splitting the difference, proposing RPS mandates intermediate between 10% and 40%.

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Conservative News, Democrats, Michigan, Michigan Politics, Rent Seeking, Republicans

Clash of Titans, EPA Wrecks the Electricity Grid

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Feds Step In, Things Get Much Worse

godzilla electrical lines 2
Part II

Things may have quieted down in Michigan after Proposal 3’s demise in 2012, but President Obama’s EPA were furiously developing their ‘War on Coal’ to dramatically increase the cost reduce pollution of electricity generation. The Mercury and Air Toxics (MATs, also known as MACT) rule requires scrubbers on all coal-fired power plants nationally, costing something north of $ 1 million per steam boiler. The Cross State Air Pollution Rule (CSAPR) requires Michigan coal-fired power plants to reduce their thermal efficiency during peak summertime generating periods to reduce oxides of nitrogen at a yet to be determined cost.

In 2014, EPA’s ‘Cooling Water Intake Structures’ rule finally went into effect after a decade of legal wrangling, requiring that Michigan’s electrical utilities take some very expensive steps over 8 years to protect the Great Lakes’ beloved zebra mussel and round goby populations.

At the end of 2014, EPA imposed newly restrictive rules on the disposal of coal combustion residuals (CCRs), commonly known as coal ash, from coal-fired power plants. Almost unique in the history of Federal regulation, EPA admitted in their final CCR rule that it had a negative cost-benefit ratio. Fly ash, the most abundant CCR, is actually a remedy for the alkali-silica reaction (ASR) which causes premature failure of many MDoT concrete structures. So EPA managed to simultaneously increase Michigan’s cost of electricity generation and reduce the lifespan of our roads and bridges. An Obama ‘two fer’.

EPA expects to finalize its ‘Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category’ in September 2015. Known by the acronyms SEEG or ELG, these rules will change the way all electrical power stations handle cooling, process, and steam condensate water. These rules cover all steam powered turbine operations, but will most severely affect coal-fired power stations whose MATs required scrubbers and CCR required ash handling systems will generate a lot of waste water.

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Cronyism, Michigan, Opinion, Proposal 15-1, Rent Seeking, Taxes

So… Safe Roads, yes?

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Michigan traffic deaths fall 8% in ’14

Even the helmet-less motorcyclists strawman numbers are down. So much for the alleged ‘untouchable’ $18,000,000,000.00 *fund* that Lansing politicians are protecting for their insurance industry lobbyist friends, huh? It’s on the table for discussion now, governor Snyder.

You also have noticed that Snyder’s Martin Waymire, and McLellen is now pushing the repair cost meme, right?

GasTaxRegistrationFreesHikeDave Waymire, a spokesman for the Safe Roads Yes ballot committee campaigning for the measure’s passage, said most residents do not claim itemized deductions on federal returns. Crummy roads cost drivers an extra $539 a year in vehicle operating costs [Snyder’s people really cannot keep their figures straight, can they?] due to repairs, tire wear and increased fuel consumption, according to the proposal’s proponents who cite a report from the transportation research group TRIP [another quasi-governmental organization like PASER – that’s a Fact].

“Many Michigan residents today pay a hidden tax for our poor roads by virtue of [incompetency bordering criminal intent] the high cost of repairs that are incurred due to potholes, extra wear and tear on their vehicles,” Waymire said. “If you consider the hidden tax [or the BIGGER hidden tax on top of the 16.7% hike that is Proposal 1], which our opponents refuse to acknowledge, this is a substantial [Zero] savings for Michigan.”

Stop-100Another “unadvertised feature” of the plan is that taxes on fuel sold for boats, off-road vehicles and lawnmowers would rise significantly because the fuel would not be exempt from the sales tax, Anderson said. The new 7 percent sales tax [hike of 16.7%] would only be removed from fuel used to operate motor vehicles on public roads, raising compliance issues [see Here and Here] since the vast majority of fuel is sold by gas stations without regard to whether someone is filling up a car, boat or gas can, according to the nonpartisan Citizens Research Council of Michigan.

“Some promise it will be fixed. It’s not fixed now, so we included it,” said Anderson. He said he is not a “fan” of Proposal 1 but when his research company crunches numbers, “we do them straight.”

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You do realize that you are being lied to by Snyder’s cabal of *safe roads yes* pushers, right?

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All the Other Stuff, Conservative News, Cronyism, Democrats, Michigan, Michigan Politics, Rent Seeking, Republicans

Clash of Titans Coming to Michigan

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After Proposal 1, After Plan B, Electricity Front and Center

godzilla-biollante
Part I: Background

Later this year, Michigan’s electrical utilities are expected to satisfy the 10% Renewable Portfolio Standard (RPS) requirements of PA 295 of 2008. Partial reregulation of electricity in Michigan under the same PA 295 of 2008 denied choice of supplier on 90% of electricity consumption, while exempting large, politically potent, electricity consumers. At the same time, the U.S. EPA is progressively tightening their noose around the neck of the coal industry with an array of ever more restrictive regulations upon coal-fired power plants. A political clash of titans is looming in Michigan.

Taken together, these circumstances will trigger a wild four-way donnybrook pitting electrical utilities, electricity consumers, and environmental wackos against one another later this year. But this is only three parties, so why do you say four-way? Large industrial consumers have substantially escaped the consequences of PA 295, while smaller Michigan consumers – including residential consumers – have experienced the fifth highest rate of electricity cost increases in the nation. These two electricity consuming groups’ interests do not coincide.

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