Though the $1.37-billion project proved disastrous for many of the state's poor, elderly and disabled, it was a financial bonanza for a handful of firms with ties to Daniels and his political allies, which landed state contracts worth millions.
The disparate effects underscore the risks of handing control over public services to the private sector. Whether the approach will ultimately improve services and save money remains a matter of fierce debate in Indiana. But the state's experience shows that without adequate safeguards, privatization can compound the very problems it is designed to correct: bureaucratic burdens, perceptions of influence-peddling and a lack of competition.
It's an issue that is likely to persist, as Republicans in statehouses nationwide turn to private companies as they seek to shrink government and weaken the hold of public-sector unions.
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While this blog focuses on the problems that come with wholesale privatization of local government in the form of mandatory membership HOAs, apparently there are problems with privatizing discrete government services as well.
Saturday, June 25, 2011
Thursday, June 23, 2011
Jerry Brown says Proposition 13 could be tested if budget talks fail
Gov. Jerry Brown hinted Thursday that if the budget talks with Republicans break down, the initiative fight that would follow would not be limited to Brown's plans to raise sales, vehicle and income taxes. He said he expects labor groups to pursue changes to Proposition 13, tweaking the current caps on commercial property taxes, if no bipartisan deal can be reached.
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First the good perfessor (that killjoy McKenzie guy) gets some press accompanying his latest book, Beyond Privatopia: Rethinking Residential Private Government with early media accounts honing in on the book's suggestion that HOAs are unsustainable and could face extinction.
Now comes California Gov. Jerry Brown -- who has predicted a ballot box mother of all initiative wars (Brown prefers the term "war of all against all") -- as the state remains mired in a partisan fiscal standoff and unable to enact a budget for the fiscal year starting July 1. Brown told a gathering of 250 apartment owners and developers today that sacred political cows such as Proposition 13 may be put up for alteration by the electorate in this bellum omnium contra omnes. (The audience is notable given that apartment owners provided much of the support and funding for the successful 1978 initiative).
What does Prop. 13 have to do with HOAs? By sharply limiting property tax increases, the ballot initiative spurred local governments to find creative ways to protect property tax revenue while limiting services. As self financing privatized local governments, HOAs nicely accomplish that objective since the HOA property owners pay property taxes but require fewer services.
In the current economic/political climate, I'm betting voters wouldn't think twice about carving out commercial properties from Prop. 13's provisions limiting ad valorem property tax increases. If Prop. 13 is changed to provide more property tax revenue to California local governments, one of the major drivers of privatized local government in the form of mandatory HOAs could be reduced. And what happens in California (like the property tax revolt of Prop. 13) tends to influence other states.
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First the good perfessor (that killjoy McKenzie guy) gets some press accompanying his latest book, Beyond Privatopia: Rethinking Residential Private Government with early media accounts honing in on the book's suggestion that HOAs are unsustainable and could face extinction.
Now comes California Gov. Jerry Brown -- who has predicted a ballot box mother of all initiative wars (Brown prefers the term "war of all against all") -- as the state remains mired in a partisan fiscal standoff and unable to enact a budget for the fiscal year starting July 1. Brown told a gathering of 250 apartment owners and developers today that sacred political cows such as Proposition 13 may be put up for alteration by the electorate in this bellum omnium contra omnes. (The audience is notable given that apartment owners provided much of the support and funding for the successful 1978 initiative).
What does Prop. 13 have to do with HOAs? By sharply limiting property tax increases, the ballot initiative spurred local governments to find creative ways to protect property tax revenue while limiting services. As self financing privatized local governments, HOAs nicely accomplish that objective since the HOA property owners pay property taxes but require fewer services.
In the current economic/political climate, I'm betting voters wouldn't think twice about carving out commercial properties from Prop. 13's provisions limiting ad valorem property tax increases. If Prop. 13 is changed to provide more property tax revenue to California local governments, one of the major drivers of privatized local government in the form of mandatory HOAs could be reduced. And what happens in California (like the property tax revolt of Prop. 13) tends to influence other states.
Homeowners’ Associations Becoming Unavoidable and Quasi-Governmental - Rachel Alexander - Townhall Conservative
Homeowners’ Associations Becoming Unavoidable and Quasi-Governmental - Rachel Alexander - Townhall Conservative
Homeowners’ Associations (“HOAs”) are losing money due to the high numbers of foreclosures and are scrambling to make up for it by assessing additional fees on the remaining homeowners.
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This is what happens when a conservative gets mugged by her HOA. Suddenly all the great virtues of the "private sector" and "freedom of contract" turn into oppression. And it is OK to hate them, because they are really "governmental"! Thanks to Shu for the link.
Homeowners’ Associations (“HOAs”) are losing money due to the high numbers of foreclosures and are scrambling to make up for it by assessing additional fees on the remaining homeowners.
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This is what happens when a conservative gets mugged by her HOA. Suddenly all the great virtues of the "private sector" and "freedom of contract" turn into oppression. And it is OK to hate them, because they are really "governmental"! Thanks to Shu for the link.
Neighbors pull plug on injured vet's home | The Augusta Chronicle
Neighbors pull plug on injured vet's home | The Augusta Chronicle
"An Evans neighborhood association has blocked a group that was prepared to build a home free of charge for a local veteran who was injured in Afghanistan. The homebuilding group, Homes for Our Troops, says Knob Hill Property Owners Association approved the home's design June 2 but reversed its decision in a later meeting."
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The stupidity just goes on, and on, and on...
"An Evans neighborhood association has blocked a group that was prepared to build a home free of charge for a local veteran who was injured in Afghanistan. The homebuilding group, Homes for Our Troops, says Knob Hill Property Owners Association approved the home's design June 2 but reversed its decision in a later meeting."
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The stupidity just goes on, and on, and on...
Wednesday, June 22, 2011
Property manager accused of shady business | WJLA.com
Property manager accused of shady business | WJLA.com
Another one of those isolated instances, demonstrating once again that everything is fine in condo/hoa land and there is no need for any pesky governmental interference to protect owners from being taken to the cleaners. Thanks to Rodney Gray for the link.
Another one of those isolated instances, demonstrating once again that everything is fine in condo/hoa land and there is no need for any pesky governmental interference to protect owners from being taken to the cleaners. Thanks to Rodney Gray for the link.
Tuesday, June 21, 2011
Homeowners Associations: On the Way Out?
Evan McKenzie, a political science professor at the University of Illinois at Chicago, argues in a new book that homeowners associations inherently infringe on people's rights, and that their time is limited.
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What a killjoy this McKenzie guy is.
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What a killjoy this McKenzie guy is.
Property Manager Accused of Stealing Condo Association Fees - Freehold, NJ Patch
Property Manager Accused of Stealing Condo Association Fees - Freehold, NJ Patch
Theresa Tierney, 59, of Oakhurst, was indicted Monday for allegedly stealing hundreds of thousands of dollars from Strickland Farms Condominiums in her capacity as property manager, the Monmouth County Prosecutor’s Office said in a press release.
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Another "isolated instance." I think that makes number 5,678. Thanks to Shu Bartholomew for the pointer.
Theresa Tierney, 59, of Oakhurst, was indicted Monday for allegedly stealing hundreds of thousands of dollars from Strickland Farms Condominiums in her capacity as property manager, the Monmouth County Prosecutor’s Office said in a press release.
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Another "isolated instance." I think that makes number 5,678. Thanks to Shu Bartholomew for the pointer.
Monday, June 20, 2011
Summerlin North enters HOA Hall of Shame
It all began last year when the original gates put in by the developer bit the dust.
"They were all bent out of shape, they were black, they were chipped and rusty. There was never any complaint from Summerlin North to do something about those ugly gates. They finally closed on a car and trapped somebody in there."
Reeve found the gates would cost less to replace than repair. So his board approved a new gate design and submitted it to master association Summerlin North.
"I contacted Summerlin North and said this situation we have--these are our front gates, not somebody putting a plant in their front yard that you have to approve. I said we have to move on it."
But he says the master didn't move fast enough. And since they couldn't imagine there'd be any problem with the design, they went ahead and installed them.
But soon after the gates went up, Summerlin North told them to take them down.
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An account of the "frictional costs" of forting up in America. And the private local government bar is laughing all the way to the bank.
"They were all bent out of shape, they were black, they were chipped and rusty. There was never any complaint from Summerlin North to do something about those ugly gates. They finally closed on a car and trapped somebody in there."
Reeve found the gates would cost less to replace than repair. So his board approved a new gate design and submitted it to master association Summerlin North.
"I contacted Summerlin North and said this situation we have--these are our front gates, not somebody putting a plant in their front yard that you have to approve. I said we have to move on it."
But he says the master didn't move fast enough. And since they couldn't imagine there'd be any problem with the design, they went ahead and installed them.
But soon after the gates went up, Summerlin North told them to take them down.
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An account of the "frictional costs" of forting up in America. And the private local government bar is laughing all the way to the bank.
Judge orders ISP to release names of Wikipedia posters who slammed Facconable - The Denver Post
Judge orders ISP to release names of Wikipedia posters who slammed Facconable - The Denver Post
This is a federal magistrate, by the way. Anonymous posters need to realize that they can't just defame people online and remain anonymous. The ISP can be hit with a subpoena and ordered to release certain identifying information on Mr. or Ms. Anonymous, such as their IP number. As many readers of this blog know, Google was served with a subpoena like that regarding posts on this blog that said critical things about thin-skinned Texas State Senator John Carona and his "Associa" property management empire.
This is a federal magistrate, by the way. Anonymous posters need to realize that they can't just defame people online and remain anonymous. The ISP can be hit with a subpoena and ordered to release certain identifying information on Mr. or Ms. Anonymous, such as their IP number. As many readers of this blog know, Google was served with a subpoena like that regarding posts on this blog that said critical things about thin-skinned Texas State Senator John Carona and his "Associa" property management empire.
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