Month: January 2019

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Gunsmoke and Mirrors

Oregon State Legislature sent this bulletin Wednesday, january 24, 2019 by devadmin

After the recent elections, the Democrat Party has a “super” majority in both of Oregon’s Legislative chambers. They also own the Governor’s office. This means they have a 60% majority in the legislature and can pass any tax or spending increases without pesky Republicans getting in the way.

While their goals may appear noble, admirable or desirable since they defy logic, science, and fiscal rectitude they cannot provide Oregonians with a viable future. They can only lead to a larger, more rapacious state government. Nevertheless, the majority appears willing to use a gunsmoke and mirrors campaign to mask attacks on our Constitutional rights while promoting their own Utopian agenda.

They desire a world where wealth and prosperity are abundantly available and evenly distributed. But nothing in the universe is equally distributed; not height, weight, melanin, academic abilities, artistic aptitude, creative genius or mechanical inclinations.

Today’s Utopians want free universal healthcare but keep driving the costs higher and higher while the care gets worse and worse. They want low-cost or free college education for today’s students who will end up paying for it tomorrow. They also promise jobs galore and high-tech employment for everyone, yet the market has no way to efficiently respond to this temporary, abnormal and artificial flood of competing job-seekers.

At the heart of the matter is an age-old collectivist vision delivered by government control. If you think I’ve gone overboard, read what the Utopian Robert Owen wrote in 1816:

“Society may be formed so as to exist without crime, without poverty, with health greatly improved, with little, if any misery, and with intelligence and happiness increased a hundredfold; and no obstacle whatsoever intervenes at this moment except ignorance to prevent such a state of society from becoming universal.”1

The reason Utopian dreams don’t work in the real world is because they don’t account for scarcity, human resourcefulness, compassion or commerce.

Human-beings are our only true source of wealth.

Wealth does not come from our state’s untapped natural resources or from state government. It does not come from our rivers, forests or land. These things become productive resources only through the innovation, creativity and genius of working people. Without the rich contributions of hard-working Oregonians, we would never have had lumber, crops, beef, concrete, wine, milk or cheese.

Only men and women can supply the creative genius to turn natural resources into usable goods that improve the well-being, quality and health in our lives. This means however, that Oregon must be willing to allow people to create and keep the rewards that flow from their voluntary engagement in the free-market system. Confiscating the fruits of a person’s labor will naturally remove their desire for work.

While this may sound like common-sense, I fear our governor has missed this point. The Democratic-socialist party’s legislative agenda includes enormous disincentives for productive labor, capital formation and investment.

History tells us that increasing a tax, like the “sin taxes” on inhalant products, cigars and cigarettes will decrease their consumption. Yet, no one asks what might happen to the productive industries for malt beverages and wine when taxes are applied to those products. Also, imposing higher taxes on personal, corporate, and out-of-state income will decrease the activities that produced that income, not the other way around. The same negative consequences will impact our transportation industries as higher boating fees, aviation, diesel, and gasoline fuel taxes are bandied about.

Lastly, increasing our property taxes is supposedly the price we have to pay to live in Oregon.

What’s left to tax or regulate out of existence? Ohh, yeah, …  our 2nd Amendment rights! The gunsmoke and mirrors gang is just getting started.

Their propaganda message is, “Oregon’s children are only safe in gun-free zones.” In other words, your home must become a gun-free zone. However, we know that gun control laws only work for law-abiding citizens, which by default means only law-breakers and criminals will own firearms.

Guns are not the biggest problem which citizens, and/or children, face with regard to their lives, health and safety. Have you seen the statistics for opioid overdoses or automobile fatalities? Recently, economist Antony Davies and political scientist James R. Harrigan, reported that Americans are artificially tied up in knots over violent crime—particularly crimes committed with “assault weapons.”

They note, “This concern, statistically speaking, is fairly irrational. You are far more likely to be killed by being beaten or stabbed than you are to be killed by any kind of rifle, ‘assault’ or otherwise.” Their timely podcast goes through the actual numbers, here.

Liberty and respect for the individual demands that we act in the interest of the individual – not in the interest of the state.

If we don’t stand for rural Oregon values and common-sense – No one will!

Best Regards,

Dennis Linthicum
Oregon State Senate 28

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Saving Thousands of Millions

Oregon State Legislature sent this bulletin Wednesday, january 2, 2019, by devadmin

Johnson continued, “He that is extravagant will quickly become poor, and poverty will enforce dependence and invite corruption.”

Frugality, in the dictionary, is simply economy. For the individual this means exercising prudent techniques for saving so that resources are not wasted but used judiciously to serve the most appropriate hierarchy of needs without needing to beg or borrow.

For our state, the definition would apply; except, the sources of revenue would no longer be classified as voluntary contributions (begging or borrowing) but would become forced contributions through taxation and debt-bonding.

Likewise, the state that is extravagant or wasteful will quickly impoverish itself and its citizens. Additionally, in their poverty, the citizens will be forced into dependence and the state will experience corruption throughout its domain.

Let’s look at some numbers. During the 2015-17 biennium, Oregon’s Department of Administrative Services (DAS) processed nearly $8 billion worth of procurement services. That’s big money! That is 8,000 million dollars’ worth of goods and services. Wow! Especially when you consider that Oregon only has 4.1 million residents.

That’s right! Oregon spent 8,000 million dollars on 4.1 million people. That’s just under $2,000 of stuff for every man, women and child of every category, background, country of origin, make or model.  That’s just stuff; the total outlay for all goods, services, salaries, wages and benefits came to about $9,100 in 2016, on a per capita basis.

On the other-side of the accounting ledger Oregon only collected $2,700 in taxes on a per capita basis. This is what any normal person would call living beyond one’s means. The federal printing press barely helps reduce our overall shortfall, even though that contribution is an amazing 30% of all state revenue.

Recently, the Secretary of State’s (SOS) office auditors found Oregon missed opportunities to save 5 percent to 20 percent of the state’s procurement budget. That means Oregon missed the opportunity to save 1,600 million dollars ($1.6B) on state purchases.

The audit reveals that Oregon’s current procurement systems lack the information necessary for procurement specialists to effectively evaluate spending with regard to possible opportunities for cost savings.

Understandably, the DAS specialists buy lots of stuff for many disparate agencies. They purchase for Capital Finance and Facilities, Fleet Services, Operations and Maintenance, Building Security, Custodial, Landscape, Repair and Maintenance, Planning and Construction Management, IT, Real Estate Services, Interiors, Leasing, Land transactions, Surplus Property, and Enterprise Goods & Services.

This extraordinary range of goods and services crosses multiple agency boundaries and the state’s procurement services could be effectively streamlined if there existed a single data-store for this information. The audit found that of the $8 billion spent in procurements in 2015-17, the state only has purchase-level data for about 12.5% of the transactions, or roughly $1 billion.

What about the source level information on the other 87.5% of the state level procurements reviewed by the auditors? Obviously, the auditors found this to be subpar.

SOS Dennis Richardson’s office suggested that the statewide implementation of an eProcurement system should be implemented and would provide the additional data needed to perform a full spending analysis. It is no surprise that understanding the capital cost of an asset, including its full-life cycle costs – maintenance, operating and disposal costs, along with supplier bidding and contract opportunities could result in hundreds of millions in potential savings.

After reading this audit report, several small-government proponents in Oregon State Legislature called for swift procurement changes. Sen. Kim Thatcher (R-Keizer), issued a press-release stating, “the state needs to modernize its 1990s-era system. Oregon could have saved $1.6 billion had it previously implemented the system, meaning if Oregon succeeds in implementing OregonBuys ahead of the next biennium, the state could prevent the need for any new taxes being pushed to fill a supposed budget gap.”

Rep. Bill Post (R-Keizer), echoed those thoughts, “Had the system been previously implemented in the last biennium, it could have potentially saved billions of taxpayer dollars.”

My own statement was, “We should not be raising taxes until the government’s procurement system is fixed. Some in the partisan supermajority seem to view Oregonians as ATMs rather than constituents.”

Obviously, taking people’s hard-earned money away from their families and communities, only to push loads of cash into a broken vending machine of a government, is not only senseless, it is immoral. As a legislator, I have a duty to my constituents, and I will continue to be a strong voice for government accountability and change this upcoming session.

In an era of rising taxpayer dissatisfaction, higher expectations and rapidly changing economic conditions, high-performance sourcing, procurement, and supply chain management services are crucial to our state.

Our state’s ungainly combination of legacy systems, spreadsheets, email, and yellow sticky-notes has burdened taxpayers with unnecessary costs. Many of these problems can be relieved with advanced digital technologies for sourcing and procurement. The lack of technological integration and automation in our state is a legacy built over the past 30 years. It is time for leadership so that we can make Oregon great again.

It’s time for Governor Kate Brown to trim expenses, reduce unnecessary burdens and pursue budgetary and tax moderations. These steps would empower Oregon’s citizens to live within their means while enjoying the abundance that comes from the sweat of their own brow, the strength of their hands and the creativity and innovation of their minds.

Remember, if we don’t stand for rural Oregon values and common-sense, no one will!

Best Regards,

Dennis Linthicum
Oregon State Senate 28