Tag Archives: Americans for Prosperity

A Second Look At AB 182: ALEC’s assault on Nevada Public Employees

AB 182

REVIEW: If one feels the need for a bit of background information, the origin of bills like AB 182 can be found in the ALEC model legislation package known as “The Public Employee Freedom Act.”  (pdf)  The bill is a veritable laundry list of the ALEC bill-mill wishes:

“(1) AN ACT relating to local governments; prohibiting a local government employer from entering into an agreement to pay dues to an employee organization through deductions from compensation; (2) prohibiting such an employer from providing paid leave or paying compensation or benefits for time spent by an employee in providing services to an employee organization; (3) prohibiting the inclusion of certain employees in a bargaining unit; (4) revising provisions relating to a reduction in force; (5) providing that a collective bargaining agreement between a local government employer and a recognized employee organization expires for certain purposes at the end of the term stated in the agreement; (6) requiring public notice of certain offers made in collective bargaining; (7) eliminating final and binding fact-finding except upon the election of the governing body; (8)  removing a portion of the budgeted ending fund balance of certain governmental funds from the scope of collective bargaining and from consideration by a fact finder; (9) eliminating statutory impasse arbitration for firefighters, police officers, teachers and educational support personnel;…”

Nothing would so please the corporate masters of ALEC and the Koch Brothers alliance than to see public employee unions brought down, scuttled, and preferably stricken branch to root.

Every provision in this bill is strategically calculated to prevent unions from providing their services to their members.  No dues check off, making dues collection more costly and cumbersome for members; combined with the  attack on union leadership – after all, if the leaders can’t afford the volunteer time then service is necessarily reduced.  Eliminate “supervisory personnel,” if they so much as think about making an “independent judgment.”  No lawyers, no doctors, no supervisory personnel, may by involved in a bargaining unit?  No “confidential employee?”

Allow a government agency to reallocate resources such that there is a reduction if force – translation: layoffs – and then say “We did it because we moved the money elsewhere.” Anywhere? Any budget category? For any purpose? For the purpose of laying off personnel?  No “evergreen provisions?” No cost of living adjustments without a new master contract?

AB 182 assumes there will be no employee strikes – illegal for public employees in this state – but there won’t be any resolution options either. No fact finding, mediation, or arbitration results shall impinge on the employer to do whatever the agency wishes.  It’s take it or leave it time.

And, 16.6% of the total “budgeted expenditures” must be kept in reserve.  Really?  While this sounds “financially responsible” it really isn’t.  There are supposed to be funds allocated at the local level for “extraordinary maintenance and repairs or improvements, funds for contingencies, and funds to stabilize operations, and to provide a cushion in case of a natural disaster. [See: NRS 354]  There’s really little more to this than pulling 16.6% away from the bargaining table.

CONSIDER THE SOURCEWho is supporting ALEC?

The corporate sponsorships include:  The American Bail Corporation; the Altria Group (tobacco), AT&T, Diageo, Energy Future Holdings. Exxon Mobil Corporation, Koch Companies  Public Sector, Peabody Energy (coal), Pfizer Inc. PhRMA, State Farm Insurance, United Parcel Service, Amerian, American Express, US Airways, Anheuser Busch, Bayer Corporation, Bell Helicopter, BP America, Burlington Northern, Catepillar, Century Link, Chevron, Comcast, Conoco Phillips (under Phillips 66 brand), Dow Chemical, Eli Lilly Inc, Farmer’s Group, Georgia-Pacific (Koch Bros), Honeywell, Insight Schools Inc, JR Simplot, Marathon Oil, Raytheon, Reynolds American, T Mobile, Transcanada, (yes, THAT Transcanada)Verizon, and Xcel Energy.

However, a more interesting list is who has dropped membership in the organization which provides models for legislation like AB 182: Pepsi, Coca-Cola, Pepsi, Kraft, Intuit, McDonalds, Wendy’s, Mars, Reed Elsevier, American Traffic Solutions, Blue Cross Blue Shield, Yum! Brands, Proctor and Gamble, Kaplan, Amazon.com, Medtronic, Wal-Mart, Johnson and Johnson, Dell Computers, John Deere, MillerCoors, Hewlett-Packard, Best Buy, General Motors, Walgreens, Amgen, Dreyfus, Amgen, General Electric, Western Union, Sprint Nextel, Symantec, Entergy, Merck, Bank of America, Wellpoint, Bristol Myers Squibb, Brown-Forman, Publix Markets, Glaxo Smith Kline, Unilever, 3M, Darden Restaurants, IBM, Intel, Nestle USA, Berkshire Hathaway, NV Energy, Alliant Energy, Microsoft, Pacific Gas and Electric, Yahoo Inc, International Paper, Occidental Petroleum, Overstock.com, Facebook, Google, Union Pacific, eBay, Wells Fargo, and Northrop Grumman. [link]

Not to put too fine a point to it, but the Nevada legislators sponsoring AB 182 – Republicans Kirner, Dickman, Gardner, Oscarson, Wheeler, Edwards, Jones, Hambrick, Ellison, and Nelson – are still promoting legislation (and an ideology) which is no longer all that popular among major corporate sponsors.  The ALEC bill mill has lost some of its patina of late, but 10 Nevada Republicans haven’t quite noticed the train’s left the station?

While ALEC may be headed off to the horizon, the Koch Brothers and their Americans for Prosperity are alive and well.

“AFP adopts the anti-union positions held by its libertarian funders, David and Charles Koch.[56] A video published on YouTube on February 26, 2011 shows Scott Hagerstrom, the executive director of Americans for Prosperity Michigan, advocating “taking unions out at the knees so they don’t have the resources” to fight for workplace benefits or political candidates.” [Sourcewatch]

One has only to look at Michigan, Ohio, and especially Wisconsin under the Koch financed Walker regime, to see that AFP can simply adopt the legislative packages from ALEC, and insert these into state legislatures – like Nevada.

Thus, Republicans Kirner, Dickman, Gardner, Oscarson, Wheeler, Edwards, Jones, Hambrick, Ellison, and Nelson are simply doing the bidding of the Koch Brothers and promoting their reactionary agenda.

CONSEQUENCES:   This assault on unions, and specifically the attack on public employee unions, are part of the general hostility of corporations toward labor, and toward government.  The results are obvious.  As union membership has declined over the years so have middle class incomes.  [MJ] [APO] [EPI]  And, how did many families move into the middle class in the first place?  By becoming police officers, firefighters, teachers, community health nurses, librarians, land management specialists, transportation specialists, heavy equipment operators, social workers, public health service workers, and so on.

The wages and salaries earned by public employees, as determined by negotiated master agreements, put more families into the middle class, and more money into local economies.  Once again – the Koch Brothers aren’t interested in Bob’s Bodega or the Smith Family Furniture Store, or Jill’s Fashions —  the kinds of small businesses which form the core of local economies.  Possibly the view from inside the 0.001% bubble doesn’t allow for the possibility that products such as Koch Brother’s brands wouldn’t sell in such quantities without local retailers – local retailers who rely on middle income consumers to produce their revenue?

The anti-union, anti-labor perspective is ultimately unsustainable.  Yes, paper towels (like Koch’s Brawny brand) are basic household items, but put too much downward pressure on household income and people will discover that re-washable rags will work as well.  Every household needs toilet paper, like Koch’s Angel Soft, but households under pressure to save pennies may find cheaper brands to purchase.  While the Koch’s can fall back on Flint Hills energy products, local grocers can’t fall too far back from their local demand.  Grocers average a margin of 1-6%, [AZBus] which is not a large cushion to sustain too much drop in customer demand.

Perhaps it’s easier to sit back insulated by a top 0.001% annual income and think of Liberty, Freedom, Personal Accountability, and other abstractions, but the middle class consumer, including the middle class firefighter, police officer, teacher, social worker, or public health nurse doesn’t have that luxury.  Freedom for most people comes down to what Franklin D. Roosevelt called “Freedom from Want.”  The freedom which allows a family to procure all that’s necessary for basic needs, and leave  little left over for a home, for retirement, for an education for their children.  They want, and need, the freedom to breathe between paychecks.

Bills like AB 182 take the air out of the room.  If Republicans Kirner, Dickman, Gardner, Oscarson, Wheeler, Edwards, Jones, Hambrick, Ellison, and Nelson would pull this bill, people could all breathe a little easier.

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Filed under Nevada economy, nevada education, Nevada legislature, Nevada politics, Politics, public employees

A Cephalopod Mollusc That Can Swim In The Desert: Kochtopus

KochtopusThe Koch Brothers (Charles and David) are among America’s 0.0001%.  In fact, what they earn in One Second could feed a homeless person for an entire year. [Salon] They are not subscribers to Andrew Carnegie’s maxim, “He who dies rich, dies disgraced.”  [PBS] And they are in Senator Harry Reid’s (D-NV) sights.

“But what is un-American is when shadowy billionaires pour unlimited money into our democracy to rig the system to benefit themselves and the wealthiest one percent. I believe in an America where economic opportunity is open to all. But based on their actions and the policies they promote, the Koch brothers seem to believe in an America where the system is rigged to benefit the very wealthy. Based on Senate Republicans’ ardent defense of the Koch brothers, and the fact that they advocate for many of the same policies the Koch brothers do, it seems my Republican colleagues also believe in a system that benefits billionaires at the expense of the middle class. The Koch brothers are willing to invest billions to buy that America.”

And they are. In 2012 the Koch Brothers political network, designed with the anonymity of donors in mind, raked in approximately $400 million — more than all other conservative organizations, and more than all other traditional supporting organizations associated with Democrats. [WaPo]

If you’d like a graphic rendition of the Koch Brothers’ political connections click here to see the circles of influence developed from the TC4Trust, the Freedom Partners, and the Center for Patients Rights.  These are connected to The American Energy Alliance, Concerned Women for America, American Commitment, American Future Fund, 60+ Association, the EvangChr4Trust, Center for Shared Services, Themis Trust, Public Engagement Group Trust, Public Notice, Libre Initiative Trust, Generation Opportunity, Americans for Prosperity, and the Concerned Veterans for America.

The incestuous financial relationship between the TC4Trust and organizations like Concerned Women for America, the Center to Protect Patient’s Rights, and the Themis group are visible here.  Unlike the 501 c (4) group, TC4Trust, Freedom Partners is classified as a 501 c (6), a trade association.

“Despite its tax status, though, in many ways it’s more like the other grant-making dark money groups — the 501(c)(4)s — on steroids. Formed in late 2011, it gave out grants totaling nearly $236 million in 2012, far more than the others giving to politically active tax-exempt groups. Much of that money went to limited liability corporations that are wholly owned by better-known nonprofits — what the IRS refers to as “disregarded entities.”  [Open Secrets]

The Themis Trust appears to exist so that we all certain of receiving the Koch Brothers’ messages.

“Called Themis, the independent group is the most ambitious of the many conservative political technology projects now in development. People with direct knowledge of the group as well as political technology industry veterans say it is backed by the Koch brothers, although their names do not appear on an annual regulatory filing and Koch Industries spokespeople did not respond to requests for comment.” [Reuters May 17, 2012]

And, what do we get here in Nevada from the Americans for Prosperity?  An advertisement supporting Representative Joe Heck (R-NV3) in the upcoming off-year elections.  The substance of the commercial, if we can use the term ‘substance’ loosely, is that Heck has consistently fought the Evil Demon — Obamacare.   Perhaps the generalized form of “Obamacare” still isn’t popular with the general public, but what the ad tells us is that Heck has been fighting against:

(1) Insurance policies which exclude children with pre-existing medical conditions, including birth defects.  Insurance company practices of rescinding policies because the policy holder made an honest mistake on an application form, and your right to appeal a refusal from your insurance company to pay for medical care.

(2) Insurance company junk policies which have lifetime limits.  Requiring insurance corporations to justify their rate increases, and requires that the insurance corporations spend at least most of the money they collect in premiums from policy holders on … medical care.

(3) Removing the barrier to medical services in the ER, and covering preventative medical treatment.

Americans For Prosperity would like very much to support Representative Heck as a “fighter” against “socialized medicine,” without actually saying what it is that Representative Heck is fighting against.

As the Nevada Republican Party continues to lurch rightward into LooneyLand the Koch Brothers, and their extensive network of funding operations, will be only too happy to assist in the 2014 election cycle.  They’ve already started.

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Filed under Heck, Nevada politics, Politics

ALEC’s plans for 2013 Nevada Legislature

The Nevada Policy Research Institute just released its “Solutions 2013” policy manual for conservative legislators (pdf); it doesn’t take much digging to see some remarkable consistency with ALEC’s “Budget Took Kit,” (pdf) and with some traditional anti-government proposals from time out of mind.

It shouldn’t surprise anyone that one of the initial recommendations from NPRI is the rejuvenation of the TASC proposal.  “TASC would offer long‐term certainty to potential investors and job‐creators in Nevada by curtailing the perpetual drive for new taxes.”   There’s absolutely nothing new here.  TASC is simply TABOR with another acronym.  The so-called “Taxpayer Bill of Rights” has long been the darling of Americans for Prosperity, a front group for Koch Industries.  In November 2005, voters in Colorado found that they had had all the “improvements” they could stand with their version of TASC, and loosened most of the restrictions. [Dkos]

Moving beyond the large graphs, we find NPRI recommending “Charter Agencies,” as a surrogate for government divisions: “The charter agency framework can be modeled after the 2003 enabling legislation from Iowa, SF 453 and HF 837. Agency directors who opt in should be signed to performance contracts that outline their responsibilities for meeting legislatively defined goals. These contracts should reward each increase in agency excellence with more and more agency discretion.”   Now, where might the think tank have derived this notion?

First from their own “Better Budgeting” (pdf) offerings, derived in no small part from ALEC’s “Priorities of Government Budgeting Model” (page 15).  While there is nothing intrinsically wrong with establishing priorities and monitoring the performance of government agencies — there is something to be feared if the priorities are skewed toward privatization, and the performance measured by money saved instead of efficacious services rendered.

The NPRI further recommends: “The position of an elected, independent state auditor should be established under Nevada law, free of manipulation by incumbent politicians. The state auditor should be free to select any state or local government or program for review. Existing auditors’ offices in the legislative and executive branches should be consolidated with the office of the state auditor.”  (page 10) And, this would not be all that different from ALEC’s recommendation: “The state auditor should have the discretion to conduct comprehensive performance audits on a routine basis to identify waste and overlapping regulations, and ensure that taxpayers are getting the best value.” (page 28) The question becomes, if the auditor is elected, do we not have just one more “incumbent politician?”

NPRI recommends: “Incorporate a competitive bidding process into the performance based budgeting method. Nevada taxpayers deserve the highest value possible for their tax dollars. Competitive bidding is crucial to that effort.” (page 12)  ALEC has another, more compact title for this concept: “Embrace the Expanded Use of Privatization and Competitive Contracting.” (page 29) Privatization by any other term is still privatization.

NPRI continues: “Through constitutional provision or statute, limit the growth in local government spending to the rate of population growth plus inflation. Also, reform or repeal NRS 288, Nevada’s collective bargaining statute, to eliminate upward pressure on local government spending from special interest groups.”

If you noticed the formula in the first section of the recommendation, and it seemed familiar, you were correct — it is simply a restatement of the TABOR/TASC formulation we’ve seen before.  The second part is a blunt statement asking for the repeal of collective bargaining for public employees. Those “special interests” are more commonly known as public employees,  teachers, firefighters, and law enforcement personnel.

ALEC has some model legislation to deal with these pesky public servants.

If we were thinking that the fight over public employee pensions were a thing of the past, we’d be wrong.  NPRI has a “plan” and asserts that PERS doesn’t properly account for risk, is over enthusiastic,  and is not “market-modeled.”  Translation: Public employees should have a defined contribution plan, not a defined benefits plan. The NPRI states it ever so much more politely:

Require PERS to incorporate a market based accounting approach. If policymakers and taxpayers want to uphold the promises made to public employees in Nevada, they first need to have a clear understanding of what those promises entail. The current PERS accounting method obscures the magnitude of those commitments.” (page 22)

The rejoinder to this recommendation: “... state-based conservative groups like the American Legislative Exchange Council (ALEC) have called for cutting public employee pension and health care benefits and replacing them with less secure 401k-style plans that would inevitably leave many retirees in poverty.”   This would be the “market based approach.”

It’s not just public employees NPRI and ALEC would assault, private sector employees are also a target:

NPRI: “Reduce construction costs by repealing prevailing wage requirements. The bulk of local‐government bonds are issued to finance the construction of public infrastructure. These costs — and the bond issues required to finance them — can be dramatically reduced by repealing the state’s prevailing wage requirements, which artificially inflate labor costs by about 45 percent, on average.”   Repealing prevailing wage requirements? Who else is calling for this?

Not surprisingly, ALEC has a piece of fill in the blank legislation for this target too:

Judging from the length of the NPRI’s segment on public education we ought to expect another frontal assault on that topic, and perhaps there will be time in the next few days to compare the ALEC approach and the NPRI’s recommendations in that battle field.

In short, the NPRI’s recommendations fit smoothly into the general framework of the ALEC proposals, and for this the Koch brothers should be pleased.

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Filed under Nevada budget, Nevada legislature, TASC