97%, 5.5%, What’s the Diff?

Walking through Portland airport recently, the Antiplanner noticed a sign from the Oregon Lottery claiming that 97 cents of every dollar paid for lottery tickets was “returned to Oregon.” As the Lottery’s web site says, “97 cents of every dollar played comes back to Oregon . . . money that goes to jobs, schools, parks and watersheds.”

That number sounded suspicious to me. If 97 cents is kept by the state, and no doubt some additional is used for administering the lotteries, where do they get the money to pay out lottery winners?

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The Oregonian says this is “disingenuous.” The Antiplanner calls it lying, also known as government on an ordinary day.

Touring the States at Taxpayer Expense

Secretary of Immobility Ray LaHood, who has announced that he plans to leave office at the end of this year even if Obama is re-elected, is spending his last few months in office taking a tour of the United States. He has recently been to Hawaii (and Guam), and he plans to soon visit Idaho, Mississippi, Montana, South Dakota, and Wyoming, which will allow him to say he has been to 50 states.

Back in the 1970s, a man named Ronald Walker helped coordinate President Nixon’s famous visit to China. As a reward, Nixon offered him any job in the administration he wanted, and he asked to be director of the National Park Service. As director, all he did was tour national parks and float rivers, forcing Assistant Secretary of the Interior Nathanial Reed to do Walker’s job for him. As soon as possible after Nixon resigned the presidency, Reed replaced Walker with Gary Everhardt, a career Park Service employee.
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It looks like LaHood is pulling a Walker, at least for the last year of his lame-duck administration. There’s a reason why he hasn’t visited states like Wyoming and South Dakota during his term in office: they just aren’t places where federal transportation funding is a big issue. If he wants to visit those states, he should do it on his own time and his own dime.

No More Taxes for Art

Oregon has a 1 percent for art law requiring that one percent of all state construction funds be spent on art works. But that’s not enough for greedy Oregon artists, so they have proposed that Portland impose a $35 tax on every non-poverty-stricken resident over the age of 17 in the city that would be used for art. This is projected to generate $12 million a year for art.

The Antiplanner has no objection to people making art and other people buying it. I’ve purchased a variety of art pieces for my home. But what makes art so important that the government needs to tax everyone to make more?
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Some people might say, “It’s only $35 per person.” But, hey, I love trains and love to help restore old trains. For $12 million a year, I could fund a lot of rail restoration work. But just why should everyone else subsidize my hobby? If this measure passes, it will be just one more reason to anyone who actually works for a living to leave Portland.

Wisconsin Isn’t Greece — But . . .

Wisconsin Governor Scott Walker handily survived the recall attempt brought by public employees unions angered over his efforts to weaken their ability to negotiate for higher pay and benefits. This proves that Wisconsin isn’t Greece, the nation whose residents violently object to similar reductions in public sector pay and benefits even as the country is going bankrupt.

Fiscal conservatives can take heart from this, but they shouldn’t learn the wrong lesson. That lesson (the wrong one, that is) would be that, once they take power, they can do whatever they feel is needed without regard to the political consequences. As the Antiplanner has previously noted, Walker’s strategy of reducing spending was fine, but his tactic of taking the unions head on was unnecessarily polarizing.

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Selectively Enforcing the Law

Last week, Andrew asked why the Antiplanner hadn’t commented on the federal shutdown of dozens of “Chinatown bus” companies, and the simple answer is that I hadn’t heard about it until then. Although my friends at the American Bus Association, whose members do not include the Chinatown bus companies, are happy about the shutdown, I am not so certain it is a good thing.

If the same criteria used to shut down the Chinatown buses were applied to the Washington Metrorail, Boston T, or Chicago Transit Authority, these systems would be shut down as well. At the moment, the federal government doesn’t have the authority to shut down urban transit systems for safety reasons, but Congress is considering giving it that authority. Can you see the FTA shutting down a major transit system just because it has deferred maintenance for years and its system is deteriorating faster than it can keep it up? I can’t. Somehow I think pressure from Greyhound, Megabus, and other larger carriers have as much to do with the Chinatown shutdowns than safety issues.

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Poverty Reduces Congestion

The soviets had a successful policy for minimizing traffic congestion: keep people too poor to drive. Environmentalists today want to use the same policy: tax the heck out of gasoline; prevent the development of Alberta tar sands (“keep the tar sands oil in the soil” says one group); stop the development of natural gas.

The policy seems to be working. Thanks to the recession, Inrix says traffic congestion has declined in most U.S. urban areas. The worst congestion now is in Honolulu, followed closely by Los Angeles.

Inrix scores are based on actual measurements of traffic. A score of 10 means it takes an average of 10 percent more time to get anywhere in an urban area than it would take without congestion. Since that’s a 24-hour average, a score of 10 probably equals a score of 30 or 40 during rush hour–that is, rush-hour travel takes 30 or 40 percent more time than if there were no congestion. Honolulu’s 2011 score of 24 must represent a score of 50 or more during rush hour.

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Ho Hum, Another Airline Merger

American and US Air are thinking of merging, so naturally it’s time for a scare story about how mergers will lead to higher prices. Not likely.

A few years ago, there were six big airlines, but four of them–Delta & Northwest, United & Continental–merged into two. But Southwest is now one of the big four, Jet Blue is growing fast, and Alaska Airlines is growing and reaching into new markets. Meanwhile, Delta and American both carried about 5 percent fewer passengers in 2011 than they did in 2006.

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Dirty Politics in Lane County

In Oregon’s primary election this past Tuesday, Andy Stahl, who frequently comments on this blog, lost his bid to become Lane County (Oregon) commissioner. It is hard for me to tell this story, as I am one of the reasons he lost.

His opponent was Pete Sorenson, a four-term incumbent. I’ve known Pete for about as long as I’ve known Andy (meaning 35 years), and while I can’t say we were friends, we were always friendly. In the late 1970s he worked for Oregon Congressman Jim Weaver and I worked (as a very low-paid consultant) for the Oregon Wilderness Coalition (now Oregon Wild) helping Weaver’s staff justify their boss’s support for wilderness even though he represented the congressional district that cut more national forest timber than any other.

In the early 1980s, Sorenson went to the University of Oregon law school, and I frequently saw him on campus when I was studying economics. Over the next several decades, we would meet at conferences or bump into each other in Eugene and exchange war stories about various environmental issues. When I started proposing free-market reforms of the Forest Service in the late 1980s, he always listened politely and expressed sympathy with my growing fiscal conservatism.

Recently, however, Pete got in trouble over Oregon’s open meetings law. Apparently, he and one or two other county commissioners conspired to make certain budgetary decisions in private against the advice of the county attorney. In a sharply worded decision, an Oregon judge found that Pete and another commissioner “willfully violated” the law, though he found the third commissioner innocent. Neither of the guilty commissioners ever expressed any contrition or remorse, instead insisting they were being persecuted as the most liberal members of the commission.

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Obama Plays Hardball with California

The Obama administration is threatening to take back the $3.3 billion high-speed rail grant to California if the state legislature fails to approve the state’s high-speed rail plan by the end of June. Legislators had planned to hold some hearings this summer so they could base their decisions on actual facts rather than politics. Ironically, when California Republicans in Congress proposed to rescind the money, they were told there was no legal way to do it.

The High-Speed Rail Authority’s latest plan cuts Anaheim and Orange County out of the picture, alienating another group of voters and officials. Despite these cuts, the agency still expects to spend $68 billion building from San Francisco to Los Angeles. This is far more than it told voters it would cost when it asked them to approve the plan in 2008, and even if the legislature allows the authority to sell bonds to match the federal grant, the agency has less than 10 percent in hand.

A reporter at the Los Angeles Times did a little arithmetic and calculated that, to complete the first 130-mile segment in the Central Valley by 2017 as planned, the authority will have to spend $3.5 million per day. With the possible exception of war time, this is probably more than any one entity has ever spent on one project before. The implication is that the authority, which hasn’t been able to adequately manage anything yet, doesn’t have the capability of effectively spending that much money.

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Why Didn’t He Take a Stand on Pot?

When a president takes a stand on a highly controversial issue like gay marriage in an election year, you know he is doing it solely to motivate his base. How so? The job of the president has nothing to do with who can and cannot get married, so in announcing that he supports gay marriage, President Obama is not announcing that he will or can actually do anything about it.

The Antiplanner thinks of gay marriage as one of three litmus sets for whether someone is a libertarian. Are you fiscally conservative but you support gay marriage and drug decriminalization? Then you are libertarian. Some libertarians disagree with one another on other issues such as abortion, immigration, and the war on terror. But I don’t think anyone would call themselves libertarians if they opposed gay marriage or drug decriminalization.

Drug decriminalization–especially for minor drugs like marijuana–is also supported by most of those on the left. Here is an issue the president can actually do something about, as he commands numerous agencies–the FBI, BATF, DEA, etc.–that enforce federal drug laws. At the very least, he can order those agencies to respect state laws in states that have legalized medical marijuana.

Yet Obama has “massively escalated the federal government’s attacks on medical marijuana businesses,” says the director of the Marijuana Policy Project in the Washington Post. His administration has ramped up the war on pot in Colorado despite the fact that even most Republicans in Colorado support medical marijuana.

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