What Question WILL Be On The November Ballot?

Many people, myself included, have assumed the East and West Grand School Districts will be asking for a half or full percent county sales tax increase this fall. I think there's another, more insidious, plan afoot.

In 1999, Grand County asked for a temporary one percent sales tax in order to finance infrastructure projects they had at the time. Once these projects were paid off, voters approved a permanent extension to the sales tax. Since then, the county has been building a sizable slush fund--$14 million dollars. Nine million dollars of that is discretionary, which means the county is currently sitting on nearly $750 dollars for each of its 12,000 citizens.

So what is the county going to do with all of the tax revenue it's not spending? Instead of saving it for landfill mitigation, I think the East and West Grand school districts--along with the county, towns (excluding Kremmling) and Grand Foundation (Ad Hoc Committee), have come up with a plan to get voters to divert those funds to the schools.

Imagine the PR spin... "Hey, we're using existing money to bail out the school districts; not asking for more. This way, we can keep being irresponsible with the budget, blame the state, and continue the status quo."

In the next few weeks, I expect the "Ad Hoc Committee" to announce that they've come up with a solution very similar to what I've just pointed out above, and that they're going to be putting it on the November ballot.

As the Mayor of Kremmling said in a letter to Nancy Karas opting out of the Ad Hoc Committee,  "The Public School Finance Act provides a mechanism for school funding - property taxes... While the County may, with voter approval, impose a sales tax, it is not authorized to fund public school operating expenses with these revenues."


How about we vote to eliminate Grand County's one percent sales tax? That's a plan with merit.

Fukushima Update | 1000 Times Worse Than Worst Case

Inflation Rising At A Store Near You

According to an article in USA Today, Wal-Mart CEO Bill Simon says, "U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products."(USA Today)


If you haven't already noticed, the price of everything from gasoline to milk has gone up considerably in the last few months. Of course, anyone who's been reading my letters to the editor or this blog already knows this. 


Back in November, I wrote a letter to the editor of the SkyHI Daily News, and said in part:

"In February, when you're paying nearly a dollar more per gallon of gasoline than you are today, ask yourself how much more you have to take before you pick up the phone and call your representatives. You're being taxed in direct violation of the Constitution, and the only way to stop it is to speak up. This is not an issue of Republican vs Democrat vs Tea Party. This is about of the rule of law. If you care about your country, the time to speak up is now. Please get rid of Bernanke."

Gasoline has actually risen more than a dollar since I wrote that piece, and it's going to continue to climb into the summer months. 


"Along with steep increases in raw material costs, John Long, a retail strategist at Kurt Salmon, says labor costs in China and fuel costs for transportation are weighing heavily on retailers. He predicts prices will start increasing at all retailers in June."(USA Today)


Everybody is strapped--especially the average U.S. citizen. With state and local governments contemplating tax and fee increases, it's time to cinch up your belts because things are going to get much much worse. 

Was The School Bailout A Divine Feat?

The SkyHi News Opinion section seems to think so...

A political cartoon in the Wednesday, March 30th edition of the newspaper depicts the hands from Michaelangelo's Creation of Adam mural. Adam's hand is on the left, and God's hand reaches out to breathe life into him on the right. In the cartoon, the letters EGSD are written on the left hand. The county, Grand Foundation and names of the towns are on the right hand. 

According to the newspaper, the cartoonist only wants to be referred to as "W.M.D." That's an interesting choice of letters. Most people in the U.S. think of weapons of mass destruction when they see those letters. I don't know if that's what is meant, but it's another oddity.

I don't know if the cartoon is a satirical indictment of the organizations represented, or a heartfelt rendering of what the artist thinks has been done with the $500,000 dollars given to the schools. I'd hope it's the former, because it would accurately portray how these organizations see themselves.

SkyHi Cartoon Depicts EGSD (Adam) on left and local government and community organizations (God) on right.

Michaelangelo's Creation of Adam

Town Of Kremmling Proves It's Smarter Than All Other County Governments

From: grandcountyscoop.blogspot.com

In a move sure to aggravate local governments and "community" money laundering groups all over Grand County, the Town of Kremmling has rebuked the East Grand School District's offer to join their ad hoc tax committee.

Back in February, I sent a letter to the towns, school district and commissioners outlining how I thought this push to "save" the schools was going to end up backfiring. The comments from the Town of Kremmling are an official indictment against not only mixing tax funds to save schools, but against a push to raise sales taxes and illegally funnel the money to the schools. As Mayor Thomas Clark writes:

“Firstly, the Public School Finance Act provides a mechanism for school funding - property taxes. The School District may seek voter approval to raise and expend “override” property tax revenues. The Act does not provide authority for a School District to impose a sales tax. 

“While the County may, with voter approval, impose a sales tax, it is not authorized to fund public school operating expenses with these revenues. Creatively, perhaps, the County could ask the voters to approve a sales tax increase, deposit the funds in the General Fund, and make a donation to a non-profit organization. This non-profit, could, in-turn, donate the funds to the school."(SHDN)


There's that pesky laundering coming into the picture again. And how much would the Grand Foundation take off the top of the funds as a 'handling' fee? I can see all kinds of moral hazard in front of this issue, and it appears the Town of Kremmling does too.

Fukushima Update | Bad To Worse

Update on Fukushima: Discovery of Plutonium Leakage and Highly Radioactive Water from Fairewinds Associates on Vimeo.

Are Grand Park And Byers Peak Ranch The Next Shorefox?

It's hard not to think so.

I was at the Fraser planning commission meeting regarding the possible annexation of the Byers Peak Ranch property, and I have to say that the 30 year timeline the developer gave is a clear indication that they are going to have to either take a massive hit and sell, or simply walk away from both the Grand Park and Byers Peak Ranch developments.

These two developments came to be during the height of the real estate bubble, and today's Case-Schiller home price index should provide a good idea of where real estate development is going in the U.S.:

The peak occurred in 2006. The rebound from 2009 was strictly due to games being played by the Federal Reserve, the Financial Accounting Standards Board (FASB), and Fannie Mae and Freddie Mac. Reality is beginning to re-enter the picture and thus you see the second down trend. This is referred to as a double dip. Right now, the Federal Reserve is playing games with interest rates. As I've said before, when rates normalize, house prices are going to take a dirt nap.

Indian Peaks Charter School Makes Governor's Distinguished List

The bastard child of the East Grand School District--Indian Peaks Charter School (IPCS)--received the honor of being in the top eight percent of Colorado schools to show the highest rates of student longitudinal growth.

From the Colorado Department of Education Press Release:

"The Colorado Governor’s Distinguished Improvement Awards recognizes the top 8 percent of public schools that demonstrate the highest rates of student longitudinal growth, as measured by the Colorado Growth Model. A list of schools is available at:http://www.cde.state.co.us/cdeawards/govdistinguishedimprov.htm"

Grand Lake Elementary was also on the list, but a major distinction must be made. Indian Peaks Charter School spent just $6,000 per student last year compared to Grand Lake's $10,000 per student.

What's funny about IPCS is that it receives it's money from the district, yet has independent management and budgetary responsibility. Even with all the mill levy overrides the East Grand School District has received from voters over the years, IPCS gets only the per student allotment set by the state. Last year, that amounted to $6200 per student. Due to an increase in enrollment after the state count though, IPCS made due on $6000 per student. I'd like to see EGSD pull that off.

IPCS is a public school that receives public funding. It's also an excellent example of how the business of education should be run in Grand County.

What Is Grand Park?

It's a dream--nothing more:

From Cornerstone Holdings, LLC Website

Did you see the second sentence? 2543 residential units? That description is misleading at best, and is in keeping with the literature found on the Grand Park website itself. Aside from a minor attempt at a buildout, none of those statements is even close to accurate.

In the About Us section of the Grand Park website, we find this:

"Here at Grand Park, we’re Fraser Valley neighbors first, with a unique awareness of the valley’s culture, people, and values. It’s where we live, work and play; it’s who we are as individuals and as a company. This perspective guides our ideals, giving the people in our community the best we have to offer. We work to make good things happen, from the leadership in environmental and resource protection to the creation of the Cornerstone Community Foundation and donating the land for the new Grand Park Community Recreation Center."(Grand Park About)


Let's start at the end here... "We work to make good things happen... [to] donating land for the new Grand Park Community Recreation Center." The community center is taxpayer financed, and the tax-free $19 million bond issue for the center is currently under review by the IRS. That's a red flag if I've ever seen one. 


Anyone who thinks this project will ever be finished has been taking too much hopium. The housing and real estate market in the United States is dead for all intents and purposes. The Grand Park development was planned right as the U.S. housing bubble burst. Any buildout will only result in further losses to whomever attempts to undertake such a feat.


The meme of real estate as investment has been proven to be an outright fraud, and those who get suckered in now are sure to lose out when interest rates finally normalize. If you'd like to see just how much trouble the Grand Park development is in, just read this:


"So the 10 year Bond has gone from 2.33% to 3.7% in less than four months.  30 year mortgage money, no points, has gone from about 4% to just over 5% (no junk fees) in the same time.


This is an immediate 11% reduction in the implied value of every home in America, and it is exactly the opposite of what Bernanke said he was going to do.


Here's the math; don't believe me, get out your HP12c and run it yourself:
$100,000 borrowed, 30 years, 4% interest rate = $475.83 P&I.
Same P&I, 30 years, 5% interest rate borrows only $89,007.56.


That's an 11% loss of value and since 90% of the buyers purchase a payment in the housing market, not a price, this is an immediate 11% deflation in home values."(Market Ticker)


Right now, the Federal Reserve has short-term interest rates set to zero. How long they can keep this game going is anyone's guess. They WILL go up at some point, and when they do house prices nationwide will take a dirt nap that will make the current drop look like child's play. 


Anyone who invested money in real estate during the boom years is going to take a massive haircut. That includes Grand Park, a Cornerstone Holdings Company.

Own A Car?

Then you should be aware of the supply chain disruptions coming down the pike due to the Japanese earthquake and tsunami.

A CNBC article explains:

"Because parts and supplies are shipped by slow-moving boats, the real drop-off has yet to be felt by factories in the U.S., Europe and Asia. That will come by the middle of April.

"This is the biggest impact ever in the history of the automobile industry," says Koji Endo, managing director at Advanced Research Japan in Tokyo.

Much of Japan's auto industry — the second largest supplier of cars in the world — remains idle. Few plants were seriously damaged by the quake, but with supplies of water and electricity fleeting, no one can say when factories will crank up. Some auto analysts say it could be as late as this summer.

Hitachi Automotive Systems, which makes parts such as airflow sensors and drive control systems, is waiting for its suppliers to restart while dealing with its own problems. Its plants are without water and gas, and have rolling electricity blackouts. Workers are repairing crumpled ceilings, fallen walls and cleaning up shattered glass. A spokesman says he doesn't know when its plants will reopen."(CNBC)

The result? You're going to see material increases in the prices of new and used cars and parts over the coming weeks. All auto manufacturers, not just the Japanese, are being affected. If you've been putting off a car purchase or repair, you should probably not delay any longer.

Public Unions And Slavery

Ever since the Wisconsin legislature passed sweeping collective bargaining legislation a few weeks ago, the unions have been up in arms about the state's assault on individual rights. Public unions are an abomination, and a letter from a University of Alaska professor to American Federation of Teachers president Randi Weingarten sums up the issues perfectly:

Is It Time To Move...

...To North Dakota?

"BISMARCK, N.D. — Backers of a constitutional amendment to abolish North Dakota property taxes believe they have enough petition signatures to put the idea on the ballot..."(The Republic)


This crappy economy is really starting to bring meaningful reform to our 50 states. Can you imagine if, after paying off your mortgage, you actually owned your home free and clear? Wouldn't it be crazy to own property the way our Forefathers intended? 

Fukushima Nuke Update | Almost A Chernobyl

The disaster at the nuclear power plant at Fukushima has now been upgraded to a level 6 out of 7 on the INES scale. What this means is that the disaster is now rated worse than Three Mile Island, and is one level below Chernobyl.

Although the markets are presently ignoring this development, wait until they have to evacuate 35 million people from Tokyo (no, that's not a joke).

Here's a video from Arnie Gunderson, a nuclear engineer:



At the end of this video, he describes radiation being measured at levels almost two times higher than hot spots at Chernobyl.

This disaster, just because the mainstream news is currently focused on the Middle East, is not going away.

Smart Boards | A Stupid Waste Of Money

A couple of weeks ago, I attended my kindergartner's recital in the school's music room. Of course, it was cute and adorable--right up until the teacher took out a book, stuck it under a camera and projected the image onto the Smart board.

It was pathetic... All of the children were seated around the teacher, who was facing away from them as she moved the book under the camera while she read. Instead of facing the opened book toward the children as she read, the teacher disengaged from the traditionally interactive role and interacted with the technology instead.

Smart boards are not cheap. The cost to install a Smart board in a single classroom can easily approach $5,000. Multiply that by the total number of classrooms in a single school building, and you're looking at close to a quarter million dollars per building.

As I was researching Smart boards, I happened upon a story that perfectly explains their function in the classroom. Tom Chartier titles his story The Stupid Board Needs a Dunce Cap. One paragraph sums his thoughts up nicely:

"However, let’s not go on my opinion alone. I checked in with two experts on classroom learning. The first was noted educational writer and classroom teacher with decades of experience, Linda Schrock-Taylor. She concurs with me. Her view was well put: “When will the schools learn that more manipulatives between the info and the brain causes learning retention problems!” You betcha. Overload the learning brains with stimulus and they will shut down. The more complicated you make the wheel; the more things there are to go wrong. Just go out and look at all the crap under the hood of your cars. Think they’re going to last as long as an air-cooled VW? Nope. Will these $5K Smart Boards last as long as that white board? Nope. How often do you have to trash your computer and buy a new one, every two years? Are Smart Boards subject to the dreaded Blue Screen of Death? How long do you think those Smart Boards are going to hold up before they will need to be sent to the landfill… where they actually belong… and replaced at another huge expense?" 

Smart boards are just another example of stupid spending by school districts.

West Grand Schools Losing $45,000 To Food Service Program

Sigh...

According to an article in the SkyHi News, West Grand schools have been losing $45,000 annually to their food service program.(SHDN) They are just now looking at hiring an outside firm in order to address the bleeding. This is just one more example of wasting taxpayer money until it's no longer feasible to do so.

This fall, Grand County's two school districts are going to ask for more sales tax money because they've failed to address obvious budgetary problems like those above. Both school districts have budgets that are no longer viable in today's economy. More money will not fix these problems.

Hey Commissioners; Why The Assault On Private Property Rights?

Before I point out why you three are not feudal overlords of private property in Grand County, I'd like to discuss a couple nagging issues voters should be aware of as each of your terms expire.

THE LANDFILL

At your March 15th meeting, the continuing disaster that is the county landfill was mentioned twice. Here's a quote from the minutes that raises a lot of questions:

"The BOCC had asked Superintendent Ken Haynes to check to see if the continued closing of the Granby Landfill, completing the placement of the required closing material and the re-seeding, would exacerbate the landfill slide. Haynes reported that after talking with the landfill consultants, he would like to move forward with the final cover at the Granby Landfill. The consultants and ground engineers are confident completing the final cover will not impact the slide, and to delay would be more costly in the future."(Commissioner's Corner)

After spending $1 million dollars closing down the landfill (slide?) and another $4 million mitigating a slide at the top, it sure is discouraging to see this thing still being referred to as a landslide. My conversation with Mr. Newberry was not encouraging, and I assume this thing is going to continue to plague the county. It's also not encouraging to see that a landfill workshop has been scheduled for the first week in May.

HOUSING FRAUD

As I pointed out in a conversation with Mr. Newberry, you three are at least partially responsible for the disaster that is the housing market in Grand County. I'm not talking about the decline in real estate values either. I'm talking about the pervasive fraudulent building practices that occurred under your watch. 

If you're going to have a planning/zoning/building department that oversees all stages of property use, you're also going to accept the liability that goes along with it. There are counties in Colorado with no building codes. If someone builds a house there and it collapses on them, that's their own damn fault. But, if you're going to nitpick every single porch extension and building project on a person's property, require them to obtain permits, and generally screw around in other people's business, then you're going to accept the liability that goes along with it.

There are multiple developments in this county currently in litigation because of defects in design and construction. If the county was properly overseeing these projects during the boom times, we wouldn't have this disaster on our hands. But that's not the case. The county accepted the fees, approved the plans and 'oversaw' the various stages of construction. When the HOA's, homeowners and other interested parties are done suing the bejeezus out of their respective builders/contractors/developers, I hope they fix their sights on the true problem--the county itself. I think theres a very good case to be made for complicity.

PRIVATE PROPERTY... ANY QUESTIONS?

What is it about the character of governments in our nation today that makes them think they have any business administering decision making with regard to private property? This nation was founded on the principles of private property to such an extent that even our natural rights are given status as a property right. 

You three have taken an oath to defend and uphold the Constitution of the United States and that of the State of Colorado. But, you don't take your oath seriously, just as almost nobody in your position does today. So what is an oath? 

"A solemn, formal declaration or promise to fulfill a pledge, often calling on God, a god, or a sacred object as witness."(Free Dictionary) 

Have any of you even read the two documents you've taken an oath to uphold? If so, have you happened upon the Fifth Amendment? No, I'm not talking about the provision that prohibits a person from incriminating himself against their will. I'm talking about this part:

"...nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation."(Fifth Amendment)

Why is this passage important? Because you Commissioners seem to think you can limit a person's ability to exercise their property rights by executive fiat. A recent example of your hubris is your position on the proposed oil and gas leases in Kremmling.

Do you know what due process is, and who it protects? Due process is...

"An established course for judicial proceedings or other governmental activities designed to safeguard the legal rights of the individual."(Free Dictionary)

The important takeaway here is that the Fifth Amendment is not about the public interest, majority opinion or some other mob-rule concept. It is about safeguarding the rights of the individual.

Private property owners in Grand County have an opportunity to exercise their ownership rights to their greatest benefit. Who are you to obstruct their ability to do so? It could be argued that you are violating your oaths of office, and therefore perjuring yourselves in the process.

And about the water snafu; I'll address that in the future.

E.-W. Grand School Boards Lament Uneducated Voters

Today, the SkyHi News had a precious article titled East and West Grand school boards seek ways to improve efficiencies. 


As is the norm for all school related meetings these days, the substance of the gathering was a discussion of the sales tax increase slated for the November ballot.

Both school districts are facing the same double blade of plummeting state and local revenues coupled with poor budgetary management. As usual, all of the blame lies with the state, who Superintendent Karas says is "assaulting" school finances. Not once have we seen a local government body or organization take responsibility for their own actions in this mess.

As an example, are you aware that the East Grand School District hired two high school counselors at the beginning of last December for a total projected cost of $127,000? Don't believe me? Here's the article:

Middle Park High welcomes two new counselors - 12/2/10

Check out the online district budget (Page 22) to verify the $127,000 figure.

Only one month later, the DAC recommended closing FVE and GLE in order to rescue the budget. That's only one example. There are many instances of this kind of irresponsible behavior throughout the East Grand budget.

Did you know our two school districts are already sharing efficiencies? For instance, they bid on paper together... Wow! Why combine school districts with that kind of Herculean effort already underway?

And the piece de resistance? The entire push of both districts is not to make real decisions about teacher salary and benefits; it's to 'educate' voters:

"East Grand Superintendent Nancy Karas said the challenge will be educating voters about the statewide assault on school financing, meanwhile changing a perception that district budgets are suffering merely from bad management. “They'll vote no just because they don't think we're fiscally responsible,” Karas said."(SHDN)


"They'll vote no just because they don't think we're fiscally responsible..." Bingo!

Is There A New Oil Spill In The Gulf?

The Wall Street Journal is reporting that the U.S. Coast Guard is investigating the possibility of a new oil spill in the Gulf of Mexico:

"The Coast Guard said in a news release that it received a report of a three-mile-long rainbow sheen off the Louisiana coast just before 9:30 a.m. local time on Saturday. Two subsequent sightings were relayed to the Coast Guard, the last of which reported a sheen that extended from about 6 miles south of Grand Isle, La. to 100 miles offshore."


We should know more later this morning, but it looks like the spill may be coming from an oil rig named the Matterhorn Seastar. Because the leak is located about 20 miles away from the site of the Deepwater Horizon disaster, there is speculation the slick could be coming from continuing issues with that site.


Monday should be a really good day for those who are invested in crude oil futures--not so good for those of us who drive cars though.

The Denver Post Chimes In

This time, with a story much like the Channel 7 piece:

Two Grand County Schools spared, for at least a year - by Mitchell Byars

Of course, the story was covered by the same Denver Post journalist who gave us this misleading headline:

Grand County parents raising $500,000 to save schools - by Mitchell Byars

Similar to last time, Mr. Byars chose to use only Ron Nelson of the Grand Foundation and Superintendent Nancy Karas as his sources. I did indeed put a few calls and e-mails in to Mr. Byars to address my concerns over these sources, and offer my own opinion. He did call me back, but never answered when I returned the call.

Indeed, I left a note, including this blog's address, on Channel 7's news vehicle before they aired their fluff piece on the schools, but have yet to receive a response from them.

The thing that concerns me is that neither the SkyHi News, Denver Post or Channel 7 wish to print or air any contrary viewpoints. The Sky Hi only prints contrary opinion regarding the schools in their Opinion section, which doesn't hold the same editorial weight.

Anyone willing to sit down with the school budget would quickly realize that the East Grand School District faces a total lack of budgetary prudence. Placing blame and causality outside of the district paralyzes decision-making, and slows down the process of what must be done in order to face a certain fall in revenue over the coming years.

My personal opinion is that the district's decision to accept money to keep the schools open will be the single worst mistake they've ever made. There are myriad opportunities for things to go from bad to worse over the course of the next year, and this decision ensures they're spread too thin right when they're most vulnerable.

Same Story, Different News Outlet

Today, Channel 7 was camped out at the Fraser Valley Elementary school waiting for parents to leave so they could get the story from Superintendent Karas about the wonderful job our 'Community Group' did raising $500,000 to give away to the schools.


Their headline? Community raises $500,000 to save 2 schools... Doesn't that sound familiar? Why, yes it does. The Denver Post ran a similar fluff piece about the same thing: Grand County parents raising $500,000 save schools. At least the Channel 7 piece doesn't include the parents in the insanity.

And the message of the 7News piece?


"Now, a committee made up of community members will study long term funding solutions, including a sales tax issue that could go before Grand County voters in November."

The message from the Denver Post piece?


"One proposed plan would be a countywide sales tax that would go toward funding schools in Grand County (which also includes West Grand School District)."


Does anyone notice a total lack of any other ideas for fixing the school districts' lack of budgetary prudence? Me neither, and that's because there really isn't one. 


The school district has long-term funding. It's called mill levies and mill levy overrides. It's not a constant, as no tax revenue will ever be, but it's pretty much forever. That's as long-term as it gets from what I can tell. 

I hate having smoke blown up my butt, as I'm sure you do too!

It's All In The Headlines

Below are seven months worth of headlines from the SkyHi Daily News regarding the East Grand Schools and their financial woes. The headlines begin with the latest first and go all the way back to last August.

East Grand officials' threats to close Grand Lake Elementary weren't creating the needed urgency, so on January 14th, they upped the ante by threatening to close Fraser as well. Two months later, they've got over $500,000 dollars coming from the special interests and a push for a new tax initiative.

The headlines speak for themselves, but you'll see the high school added $127,000 worth of new counselors at the beginning of December. Financial woes?


Community raises $500,000 to save 2 schools - (7 News) 3/17/11

School districts receive money from MPE educational trust fund - 3/17/11


Grand Lake officials vote to bump up water rates - 3/16/11


Colorado school group to protest budget cuts - 3/14/11


Ad hoc committee formed to explore school funding in Grand County - 3/13/11


Colorado's largest school district to cut $40 million - 3/12/11

Colorado jobless rate of 9.1 percent tops US rate -

Winter Park sales tax rate is tops - 3/10/11

Grand County ok's $227,000 in forest funds for schools - 3/9/11

Community raises $500,000 for schools - 3/4/11

East Grand school district works to "buffer" reserves - 2/27/11

Granby pledges $20,000 for community schools - 2/23/11

Town of Fraser pledges $50,000 to help keep schools open - 2/21/11

East Grand school officials trying to scare taxpayers - 2/21/11

Grand Lake parents have struggles with school issue for years - 2/21/11

Winter Park Council pledges $75,000 for schools - 2/16/11

Grand Lake Board pledges $20,000 for schools - 2/16/11

Hickenlooper proposes $375 million in statewide education cuts -  2/16/11

Grand communities rally for schools - 2/12/11

Winter Park council explores ways to help with school funding - 2/9/11

Sales tax floats to top of school-funding ideas in in Grand County - 2/4/11

Winter Park Council to conduct special meeting tonight about school funding - 2/3/11

Ed Saltzman: Combine the school districts - 1/31/11

Reggie Paulk: Why can't E. Grand Schools fix their problems? 1/26/11

East Grand school officials raise possibility of dipping into reserves to buy time - 1/24/11

'Give us more time,' citizens say of Fraser, Grand Lake school-closing proposals - 1/23/11

More details emerge about the proposal to close East Grand schools - 1/17/11

School board to consider closing Fraser, Grand Lake elementary schools to balance budget and preserve education programs - 1/14/11

Middle Park High welcomes two new counselors - 12/01/10

Grand County voters just say 'No' to schools - 11/2/10

Bridging the funding gap - 10/5/10

Towns, district weight in on the cost of 60, 61 and 101 - 10/4/10

Grand Lake parents petition to keep school open - 9/29/10

Larger shortfall looms in Colorado budget, and schools are likely to feel the pain - 9/21/10

E. Grand Schools get federal jobs funds - 8/30/10

Last first day at Grand Lake Elementary? - 8/30/10

Former Parachute educator lands at MPHS as assistant principal - 8/28/10

East Grand school officials develop strategies to cope with possible cash-flow woes - 8/22/10

Ballot issue hits E. Grand cash flow - 8/2/10

What's Happening In Japan?

For a very good look at how bad things most likely are regarding the nuclear power plants in Fukushima, Japan, watch this video about the Chernobyl disaster.

There's a high probability the six reactors and their spent fuel rods are going to become a bigger disaster than Chernobyl.

Liquidity Crisis Brewing In Japan Could Hit U.S.

Japan's Nikkei stock index is currently trading down 12.5 percent and falling. It's very likely the world authorities are going to halt trading in the stock indexes over the next couple of days as the nuclear disaster in Japan plays out. With that being said, it might be a good idea to get some cash out of the bank.

Panic is beginning to set in on the Asian exchanges, and the financial situation in Europe and the U.S. has been precarious since the crash of 2008. If the panic spreads, and it looks likely to do so, cash will be something very difficult to come by for a few days at least.

Be ready to take care of yourself and family for a few days at the very least. Go to Ready to learn about a disaster preparedness kit to get started.

Fukushima Nuclear Power Plant In Full Meltdown Of Four Reactors

The world is now officially having its black swan moment. Japan, having suffered its largest earthquake in recorded history, is now under threat from the Fukushima nuclear power plant.

With tens of thousands of Japanese missing and presumed dead, millions more without proper food or energy supplies and tens of millions more now under threat of nuclear fallout, the situation is getting worse by the hour.

All four nuclear reactors at the Fukushima nuclear power plant have either had explosions, meltdowns or fires. The radiation levels are now beginning to climb to dangerous levels, and evacuation orders are being made.

Tokyo, with 30,000,000 people, is only 160 miles to the south of the plant, and the winds are expected to blow the radioactive discharge over the city within eight hours.

From Zero Hedge:

"All hell is currently breaking loose following an explosion at reactor #2 and another hydrogen explosion at reactor #4 per Kyodo, leading to a 16% drop in Nikkei futures as blind panic grips Japan. Kyodo essentially confirms there was a reactor meltdown as radiation levels at Fukushima 3 are now 400 times legal levels. Topping it all, Japan's warning that all people within 30 kilometers from Fukushima should stay indoors and that the radioactive winds may reach Tokyo in as little as 8 hours."


Current Dow futures are down nearly 200 points, and it is very likely the Japan situation will reacquaint markets with gravity in short order.

Is America About To Run Out Of Cash?

Yes, it is...

From Zerohedge:

"And so the US Treasury has hit the proverbial paycheck to paycheck sustenance level. After burning $12.8 billion (without a change in gross debt) in cash today alone, and $75 billion in the month of March so far, primarily driven by a back end-loaded tax refund calendar, according to the Daily Treasury Statement, today's cash balance dropped to the scary level of just $14.2 billion. Without the benefit of incremental funding, this is the same amount that the Treasury burns on a good day!In other words, we take back what we said about the US Treasury existing paycheck to paycheck - Geithner now has to scramble to find funding on a day to day basis. If tomorrow operating outflows surpass $14.2 billion (and, again, the amount was $12.8 billion today) the world's "greatest" country (i.e. banana republic) runs out of cash, period. "


Turbo Tax Tim Geithner, who we all know is an upstanding member of American society, has a bit of a conundrum. He has to continue paying the bills until next week, but the U.S. is currently spending nearly everything he has at his disposal every day. This could get very interesting-especially given that the U.S. is rapidly approaching its debt ceiling. 


What happens if the U.S. runs out of cash? A sudden stop, that's what. It would be the economic equivalent to what's currently happening in Japan. If you don't have cash on hand, you should probably think about getting some. Banks have a bad habit of shutting their doors right when people need access to their money the most.

USS Ronald Reagan Sails Through Radiation Cloud

Today the New York Times reports that the aircraft carrier USS Ronald Reagan, sent to help with the ongoing rescue effort in Japan, sailed through a radio active cloud presumed to have come from the Fukushima nuclear plant.

What's probably more disturbing is that helicopters flying more than 60 miles north of the plant were coated in radioactive material when they came back to the carrier:

"The officials added that American helicopters flying missions about 60 miles north of the damaged reactors became coated with particulate radiation that had to be washed off."(NY Times)


These are troubling developments out of Japan, and only highlight the fact that they are far from being out of the woods. 

Second Fukushima Reactor Building Explodes

Fukushima #3 reactor building blows its top in the below video. Yesterday, the #1 reactor building blew its top.

The problem with the #3 reactor is that it's a plutonium/uranium reactor, making it more dangerous should it have a full meltdown.

This nuclear plant was hit with another tsunami this evening, and things are nowhere near contained yet.

Here Come The Tax Initiatives

In a very poor piece of reporting, the Associated Press said, "Colorado's largest school district plans to cut $40,000,000 in spending because of the State's budget crisis."

The story doesn't even mention that the largest school district is Jefferson County School District. What the story does say is that the state legislature is beginning to think the same way our local officials are thinking: tax increases!

According to a story on kdvr.com, the school district plans to let 212 people go in addition to an across the board pay reduction. They are also discussing reducing the school week by two days.

The same story on the SkyHi website has this to say from one of our state senators:


"Sen. Rollie Heath of Boulder has proposed asking voters to approve a tax increase instead. "(SHDN)


Not only are our local authorities going to be begging for school money this fall, but the state will be coming with their hat out as well. Sales taxes are some of the most punitive taxes you can levy on people with fixed and low incomes. They take an inordinate toll on those who can least afford to pay them, and it's the only solution these people can think of. It's just more of the same from people who no longer are fit to perform the duties of their offices.

Japan Toll May Rise Into Tens Of Thousands | Nuke Plants Critical

The tsunami unleashed by a 9.1 magnitude earthquake off the coast of Japan two days ago may have claimed tens of thousands of lives.

In the city of Minimisanriku, over 9500 of the city's 17,000 residents are unaccounted for. The official toll right now is nowhere near as high as it's likely to go once the full extent of the devastation is realized.

The Fukushima nuclear power plant is currently very unstable. Overnight, reactor #1 at the plant experienced a large explosion that blew the building around the reactor to smithereens. There is no indication that the containment vessels have been compromised, but a core meltdown is a possibility if they are unable to get cooling water into the vessel. Here's a video of the explosion:



The Guardian has an amazing video on it's home page. Click here to see it.

The Grand Foundation | What's It Really Up To?

On its surface, The Grand Foundation looks to be a good member of the community. According to it's website, they've given more than 1.7 million dollars to local non-profits over the last 14 years. Here's part of their description:


"The Grand Foundation seeks to improve the quality of life in Grand County by proactively addressing current and future needs in the areas of Health & Human Services, Arts & Culture, Education, Amateur Sports and Environment."(Grand Foundation)


Ron Nelson, who's chairman of the board, has been championing a one percent sales tax increase to help bail out the school district. This flies in the face of the above statement, and makes me wonder what the true intent of this organization really is. Sales taxes adversely affect low income households. If you'd like to know just how much, I analyze it in a separate post.


Actions speak louder than words and Mr. Nelson is heading a fund that plans to give money to the school district as part of a special-interest bailout, with the express purpose being to raise county sales taxes. Don't believe me? Just read my post on special interests.


From their mission statement:

"The mission of the East Grand Education Foundation Fund is to provide alternative funding for educational opportunities for students enrolled in the East Grand School District.

The criteria for this fund are as follows:

a. is new and/or innovative;(emphasis added)
b. enhances an existing educational project/program;
c. improves core curriculum;
d. fosters relationships between the community and students/school."(Grand Foundation)

The Foundation plans to give $50,000 dollars to the school bailout effort. I would say points a, b, c and d are an Epic Fail.


What's your end goal Mr. Nelson? I sure don't trust your organization. The Grand Foundation has given a little more than $100 thousand per year back to the community over the last decade, but you're pushing for a tax increase that would drain nearly 30 times that amount annually. Would you like to let me know how that squares up?