A well-known story of the current recession is the terrible fiscal shape of the various states. Revenue is down and they cannot meet their budgets. Revenue may be down, but the real cause is the states thinking that they can continue unabated to support more and more spending.
An example I am familiar with and by far only one of many is the employee benefits structure for state workers. States are the last bastion of defined benefit plans. Only Alaska has replaced a defined benefit plan with a defined contribution plan. Don’t get me wrong, I think the demise of the DB plan is a major mistake in America but that is another question. States treat workers not as employees but with a welfare mentality and in the process build large costs and even larger long-term liabilities. For example, in New Jersey, pension plan participants can take a loan from the plan at 4% interest when the return assumption for the trust is around 8%. On top of that, the loan can continue to be paid even after the employee retires.
The unintended consequences caused by short term and special interest thinking are amazing. In California, they are facing a potential shortage of electricity because of requirements to shift to renewable sources at the expense of expanding traditional sources needed to meet growing demand. Simply requiring that this percentage or that percentage of energy come from a renewable source does not mean there are not adverse consequences like higher prices, less reliable supplies and inadequate supplies when renewable sources cannot increase sufficiently to meet demand. The problem dealing with this is that it appears logical to set a noble goal for energy and it all sounds good on paper (generally in the form of legislation), but the practical implementation is often quite different.
Now, the states have gone too far in trying to meet budget needs. Take away my gas-generated electricity, increase my property taxes, but never toy with my potty break. Rest areas are under stress from budget cuts and are starting to disappear according to a July 3, 2009 Wall Street Journal article. Virginia is closing nearly half its rest stops to save money. I can just see it now, mommy I have to go potty. Sorry son, there is no place for forty miles and then we have to get off the highway and find a McDonalds. In Rhode Island and Massachusetts, you had better not have to “go” after 6:00 PM because that is when they close the rest areas. Before we know it, hundreds of thousands of Americans will be wandering our highways and byways in search of a friendly fast food outlet or a motel that will welcome a caravan of cars to use their guest restrooms. In addition, dare I mention the wasted gasoline in such quests? No matter they will be driving in electric cars re-charged by wind generated power.
We talk about health care as a basic right, but what can be more basic than, well you know. Have they no respect for us aging males? Rest areas are obsolete we are told, pardon my French but I am pissed off. In Italy, every restaurant is supposed to allow anyone to use the toilet, try that in Manhattan. On the other hand, there are no toilet seats in Italy, but at least you have a place to squat. While you may pay twenty-five cents or so to use one, you can at least find a public rest room in Europe, even in Russia they have well maintained private enterprise Port a Johns near Red Square.
Maybe we can get them to install rest rooms in the base of those wind turbines; there should be plenty of them all over the landscape in the next few years.
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