Coyote Blog

Back in August, when I wrote the first section of this guide, I was sitting in Long Island at a baseball recruiting camp.  Now that my son has completed the process, I want to share the rest of our experience for others who, like myself, have an athletic kid but no idea how the college sports recruiting process works.

Some reminders.  First, this is baseball-specific -- other sports work differently, I presume.  Second, this is the experience of a kid with good baseball skills but not good enough to have been scouted by a Division I baseball power like Texas or Arizona State.  Third, my son was not looking for scholarship money.  He was looking to play baseball in college, and to parlay his baseball talent into admission in a top academic school.  We were looking at division III (DIII from now on) schools like Williams, Amherst, Haverford, Pomona and a few DI Ivies.  Finally, our experience is heavily colored by the fact that he plays for one of the smallest high schools in the state, so getting attention and recruiting advice was much harder than if he had played for a baseball powerhouse.

Here were some of the lessons from our first episode:

• The DIII baseball recruiting process does not really even begin until the summer between Junior and Senior year.  My son landed a good spot without a single coach even knowing he existed as of June 1 before his Senior year of high school.  As late as January of his senior year he was still getting emails from coaches asking him if he might be interested in their school.
• In baseball, coaches mostly ignore high school stats and records unless it is a school with which they are very familiar.  They use their eyes to pick talent - ie from video or watching kids play at recruiting camps  (more on the video and camps in our first episode)
• As we will see in a minute, only about three things my son did in recruiting really mattered -- see the first episode for more detail on what we did
• He proactively contacted coaches to tell them he was interested
• He sent coaches a 5-10 minute video of himself pitching and hitting.  We made it from game film but I think most of the videos are just taken in a cage (you can see a bunch of these on YouTube, or email me and I will give you a link to ours)
• He went to several camps, which fell into two categories:  School camps, at schools he was really interested in; and multi-school camps run by third parties.  Of the latter, I am convinced the Headfirst Honor Roll camps are the best if you are interested in DIII or DI "smart schools" (e.g. Ivies, Duke, UVA, Stanford).

OK, so we left off with my son at a two-day baseball camp.  My son sent out emails afterwards to the coaches that were at the camp and from schools in which he was interested.  Basically he said "nice to have met you, still really interested in your school; now that you have seen me, I'd like to know what you think."  He had a few good conversations with coaches at the camp, but after that we really did not hear much until after Labor Day.  In retrospect, this delay is probably because the coaches have lots of camps and they want to synthesize their prospect list after all the camps before talking in earnest with players.

We really did not know what to expect.  Would coaches call, and if they did, what were the next steps?  It was only later that we learned what outcome we should be hoping to hear:  Basically, each coach is given some spots by the admissions office (the average seems to be 5 for the baseball guys).  If your kid can make that list, then two good things happen:  a) it means the coach wants the kid on the team. And b) it generally means the kid will get a good shove to help him through the admissions process, not an inconsequential thing at a school like Princeton or Amherst.

Here is what happened next.  This was just our experience, but since it was repeated at five or six schools, almost identically, its a good bet this is a fairly standard process at colleges with high admission requirements:

• The coach asks my son to send his transcript and SAT scores early to the Admissions office.
• The Admissions office vets these, and gives the coach a reading -- for us, that reading was generally "if you put this kid on your short list, coach, he very likely will get in."
• The coach then passed this message to my kid, saying there are no guarantees (etc. etc.) but all the kids with this same read from the admissions office who have been on his list have gotten in in the past.

BUT, there is a bit of a catch.  The coach will say that he can only put my kid on his list if we will commit to applying early decision.  Early decision (ED) means that one applies in November and hears in December (so well earlier than the April 1 regular admit date), but it is a binding commitment to attend if admitted.  This means that one can only apply to one school early decision.  Coaches aren't dumb.  They can't afford to waste the few recruiting spots they have on kids who aren't going to come.  So there is a quid pro quo - the coach will commit to the kid and help him through admissions, but the kid has to commit to the program.

But we only learned this later.  When coaches started calling, we weren't sure what to expect.   A couple called early to say that my son would not be on their list.  I have to give kudos to Coach Bradley from Princeton -- he called and told my son he wouldn't make the list.  It was not the news we wanted to hear, but he was up front and honest with us so we did not waste our time.  He was also the one who really explained all the stuff I wrote above, so we were more knowledgeable when other coaches called.

Soon, however, we were getting floods of interested contacts.  Many were from the coaches he had proactively contacted.  Some were from schools we never had heard of, and some were from very good schools but in parts of the country that weren't in his college search area (e.g. Kenyon, Grinnell, Carlton in the midwest).  Many of these coaches asked for him to come to campus (on our own dime, they were not paying) for a visit, including an overnight stay with someone on the team.  Eventually my son scheduled visits at Wesleyan, Bowdoin, Vassar, and Haverford.  He chose these in some cases for the school and in some cases because he really liked the coach.  All four of these offered him a spot on the short list for admissions if he was willing to go ED.

It was at this point that we hit the highlight of the whole process.  Like many parents, I just want to see my kid gain life skills.   My son will never be a good sales person.  He is really, really hesitant to cold call adults to ask them for something.  This process was good for him in that sense, because he began to see the fruits of having proactively cold-called these coaches earlier in the process.  But I still had to poke and prod him to do it.

However, with these other visits set up, my son was apparently thinking "these would all be good schools, but they are not in the top tier of my aspirations."  He was thinking about skipping ED, and trusting his grades and resume to the regular admissions process so he could still take a shot at his top choices (places like Princeton and Stanford).

He decided that the ideal choice for him would be Amherst - he loved the school, it was top-notch academically, had a great baseball tradition and an engaging coach.  That was the school he would be willing to go ED for.  He had met the Amherst coach on a school visit and at camp and Coach Hamm had been very nice.  But in the Fall,we had not heard anything from him.  (I have to insert a story here -- way back in March my son was on the Amherst campus and dropped by without an appointment at Coach Hamm's office.  At that point, Hamm did not know who my son was -- for all he knew he might have been the strikeout leader in T-ball.  But he spent a whole hour with Nic showing him around the facility and later at practice.)

This is where the breakthrough came.  Without my prodding or even involvement, my son contacted Coach Hamm one more time, to say he had not heard from Amherst but he was still really interested and he would be touring other nearby colleges in a week or so and would still love to meet with him.

We will never know exactly what happened.  Perhaps the coach was late in kicking off his recruiting.  Perhaps another kid on his list dropped out.  Perhaps he just wanted to sit back and see which kids were the hungriest.  Whatever the case, Coach Hamm wrote back immediately and said he would love to meet my son on campus  (he actually changed around a trip to be there).  The process described above played out (grades to the Admissions office, offer to be on the "list", ED application) and long story short, Nic will be at Amherst next year.

As I mentioned earlier, there was no money offered for baseball (nor could there be in leagues like the Ivies or the NESCAC which ban athletic scholarships).  Amherst has a great financial aid program, and there are great possibilities for scholarships, grants, and tuition discounts -- but these are offered to all admits, not just to athletes.

I hope this is helpful to some folks who are just starting this process -- I know it would have been a huge help to us to understand in advance.

Postscript:  One of the hardest things in the world is to get a good honest reading on your son's talent, particularly if he does not play for a top high school team.  People have told my son that he should not have gone DIII, he could be playing DI or he should be in front of pro scouts.  You have to take all this stuff with a grain of salt.  Sure, you don't want to cut off an opportunity, but on the flip side, sort of like the fox and the cheese, you don't want to lose a good thing chasing the illusion of something better (we know folks this happened to in other sports).

I don't know how to solve this, maybe people have experiences they can put in the comments.  For us, being from a small school, several summers playing club ball in a wood bat leagues with the big school kids finally convinced us our son could play at a high level (I say convinced us as parents, our son does not lack confidence so he always knew).

PS#2:  Fun Amherst facts

• Claim to be the country's oldest college baseball team
• The school and their mascot are named for an early advocate of biological warfare

This is a nice but probably meaningless gesture to protecting basic Constitutional rights (Hat tip to a reader)

Just a week after the Virginia legislature approved a law to refuse compliance with NDAA“indefinite detentions,” an Arizona law committing the Grand Canyon State to noncompliance with any attempted federal kidnapping under the NDAA now stands just a signature away from implementation.

I guess I would be more thrilled if I thought the state would have passed this if there were a Republican in the White House, but I can't make myself believe it.

I have written a number of times on the silliness of food miles and the locavore movement (here and here and here).  For some reason the energy and resource intensity of foods is being judged merely on one component - transportation of the end product - which actually is only a tiny competent of food costs (and thus their resource use).  Is it really more environmentally sensitive for us Phoenicians to grow our corn in the Arizona desert, where soils are unproductive and water must be imported from hundreds of miles away, rather than have it grown in the fertile soils of Iowa and trucked in?

Someone in the media, at least in Australia, finally notices:

TWO brands of olive oil, one from Australia, the other shipped 16,000 kilometres from Italy, sit on a supermarket shelf.

Most eco-friendly shoppers would reach for the Australian oil. But despite burning less fossil fuel to get here, it may not be better for the planet.

Contrary to popular belief, ''food miles'', or the distance food has travelled before we buy it, is a poor indicator of our food's total greenhouse gas emissions, or ''carbon footprint''.

More important is the way our food is farmed and produced, and how far we drive to buy it....

It turns out that stuff like economies of scale really matter

''Local food can often have a higher carbon footprint than food from afar,'' says principal researcher Brad Ridoutt.

He says even home-grown vegetables, with ''zero food miles'', do not necessarily have a smaller carbon footprint than those bought in the supermarket.

''With my veggies, I drive to Bunnings to buy fertiliser, and I go away for the weekend and forget to water them, and in the end I only harvest a few things that I can actually eat.

''By contrast, big producers, who can invest in the latest energy-efficient, water-efficient technology, and make use of all the parts of food, can be much more efficient,'' he says.

Of course, transporting food from producer to retailer still burns fossil fuels that release greenhouse gas emissions, in turn accelerating global warming. But freight emissions are only a fraction of those released during production, meaning even imported food, sustainably produced, can have a smaller carbon footprint than local alternatives.

Even the most rudimentary reading of economics should have given greenies a clue.  In commodity products like most foods, prices tend to be driven down to a point that they reflect resources (and their relative scarcity) that went into the product.  The cheapest foods tend to be those that use the least, and least scarce, resources in production.  So buying locally grown food, which often tends to carry a price premium, should have been a flashing red light that maybe this was not the least-resource-intensive choice.

As I mentioned the other day, I sometimes have this fantasy that we have some sort of libertarian streak in the Arizona Republican party.  The Goldwater Institute and Jeff Flake give me hope.  But then the Arizona legislature gets to work and my hopes are dashed.

A big national Republican issue is the excessive power Congress has delegated to the EPA and FDA to regulate and ban substances, from BPA to CO2.  So what do the Republicans do in AZ?  They propose a law to give an un-elected bureaucracy the power to willy nilly ban substances without a bit of legislative oversight.

The legislature had previously outlawed 30 chemicals that could be used to make the "bath salts"-type mixtures, and dropped another eight substances on the bill Governor Jan Brewer signed last month.

As Boca Raton Florida-based attorney Thomas Wright III told New Times shortly before Brewer signed the legislation, "To suggest they're putting a ban on bath salts is dumbing down the general public."

Republican state Senator Linda Gray is now explaining this to everyone, as she's proposed a new method to attempt banning "bath salts."

House Bill 2388 is the new hope, which would allow the state's Board of Pharmacy and the Department of Public Safety to ban the sales of chemical substances at their pleasure.

According to a Senate fact sheet, the pharmacy board "must make a formal finding that the chemical composition defined by the Board has a potential for abuse and submit the finding to DPS."

The pharmacy board then has to "consult" with DPS about its proposed rule, and that's that. The board just has to let the governor and the legislature know once a year which chemicals it's decided to ban.

So after all the concern about regulation voiced by Republicans about the EPA, they are giving even more sweeping powers to... the Board of Pharmacy and the Department of Public Safety?   This should be all the proof you need that the Coke and Pepsi party have equivalent authoritarian streaks.  As many other libertarians have observed, the Republicans have a healthy distrust of government, except when it comes to anyone such as the DPS or military that carries a gun, and then they are willing to hand over infinite trust and authority.

In many ways, this law is exactly like the environmental laws Republicans hate that require detailed analyses of potential harms but no counterveiling analysis of benefits.  In this case, the Pharmacy board is required to analyze the potential for abuse of chemicals but there is absolutely no language  requiring any consideration of the benefits of the substance's use or legality.  By the language of the law, if there is a potential for abuse, it must be banned no matter how otherwise useful the product is or could be.

Arizona House Bill 2549, which just passed its committee 30-0:

It is unlawful for any person, with intent to terrify, intimidate, threaten, harass, annoy or offend, to use ANY ELECTRONIC OR
DIGITAL DEVICE and use any obscene, lewd or profane language or suggest any lewd or lascivious act, or threaten to inflict physical harm to the person or property of any person.

I'm no lawyer, but it sure looks like, under this proposed law, my blogging that Sheriff Joe is an asshole will be illegal (if he is annoyed, and believe me he is annoyed by any criticism).

Note also that by the wording of the law, said communications are illegal in Arizona if it was originated here or received here.  That means if you folks in Colorado or California put something profane in an Internet comment, and it annoys some idiot in Arizona, you are technically in violation of the law.

Sometimes I have this fantasy that we have a Goldwater-libertarian streak among Arizona Republicans.  Obviously, this is just that, fantasy.

A few years ago I was asked to give a presentation in front of a group of Phoenix business leaders on climate and alternative energy.  I can't remember what particular group it was, but it was some public-private group that was heavily invested in advocating for local subsidies to promote strategic businesses - the sort of local MITI that most large cities have, that has this delusion that they can ramp up the city's growth by focusing public and private investment into a few selected industries (that they select, of course).

I told them that I thought their focus on solar manufacturing was dumb.  First, the whole idea that because Arizona is a good solar market meant that it should have some advantage in solar manufacturing made absolutely no sense.  This only makes sense for products with high transportation costs or a particular input cost that can be gotten more cheaply in one particular area (the location of aluminum manufacturing near cheap electricity in the Northwest comes to mind).  By the same logic all car manufacturers would be located in LA.

Second, I said that the whole solar business was completely driven by subsidies.  If the subsidies were to go away, the heart of the business would go away faster than pets.com.  I specifically mentioned First Solar in a positive context here, saying that though they where wholly dependent on subsidies for their revenues, they at least acknowledged as a corporate strategy they needed to get costs low enough to compete without subsidies.  (Someday, solar will get to that point, I hope, but I am skeptical that current approaches will yield the breakthrough, but that is another discussion).

If you want to understand the financial problems First Solar is having, let me show you four items.

First, from their 2010 annual report:

Geographic Risk. Our solar modules are presently predominantly sold to our customers for use in solar power systems concentrated in a single geographic region, Germany. This concentration of our sales in one geographic region exposes us to local economic risks and local public policy and regulatory risk in German.

This is way back in the notes on page 133.  By the way, I took a whole course in business school on reading financial reports.  Here is the key lesson for those not in the financial industry:  read them from the back.  Skip all the glossy crap at the front, go straight to the notes.

OK, here is the second bit of information.  Here is a world map of solar insolation, which is essentially the total solar energy available to produce power in a location when adjusted for atmosphere, weather, latitude, etc.

See Germany?  I won't insult your geographic knowledge by pointing at it, but much of Germany is in that yellow-green color which, for solar potential, means (in scientific terms) "it sucks."  Let's zoom in, and compare it to the US to get a feel for it (combined from two charts here)

Apparently the better sites in Germany have the same solar potential as ... Seattle!  The sliver of absolute best sites in Germany have approximately the same solar potential as Buffalo, NY.

So we have a company whose fortunes are dedicated almost entirely to selling solar panels into one of the most unpromising solar sites in the world.   Why is Germany buying so much solar?

OK, here is the third bit of information.  For years Germany had enormous feed-in tariffs (mandated above-market minimum prices)  for solar electricity:

The German feed-in tariff scheme has been in operation since 1991 and is regarded as one of the most successful in the world. In Germany, feed-in tariff rates are differentiated according to the source of the renewable energy. Separate tariffs are determined for biogas, biomass, hydroelectric, geothermal, solar and wind energy sources. The tariff paid for solar generators varies between EUR 45.7c/kWh and EUR 57.4c/kWh, depending on the capacity of the system and other design features. The tariff is greater for generators that are attached to the roof of a building or structure and greater again for generators that are attached to another part of a building. In Germany, the feed-in tariff is paid for a period of 20 years

Note the language from several years ago where "most successful" is determined without references to costs.

0.574 Euros per kWh is equal to about $0.75 today and even more several years ago when exchange rates were higher.  Remember this is a wholesale price, and should be compared to a $0.04 to $0.06 wholesale electricity price in the US  (I use US numbers to as its not clear to me Europe has a particularly competitive wholesale market.  The French have some sort of fixed price system set around $0.06).

However one wants to look at it, these are enormous subsidies.  People putting up solar panels in Germany were getting paid 10-15x what a market price for the same electricity might have been.

Finally, here is the fourth piece of evidence leading to First Solar's woes.  In 2010 and 2011 Germany, whose consumers began to balk at paying the highest electricity rates in the world in order to subsidize the method of electrical generation least suitable to Germany, began substantially cutting these tariffs.  In 2012 they will cut them even further:

German Environment Minister Norbert Roettgen and Economy Minister Philipp Roesler are set to hold a press conference on Thursday to outline the government's new approach on subsidies. However, the indications are that the cuts will be heavier than the market has been expecting:

• a 30% cut in the feed-in-tariff (FIT) to 13.5 cents per kilowatt hour for new large solar installations

• and a 20% cut in the FIT to 19.5 cents for new small plants

The market has of course been expecting cuts in the German FIT system. However, this news is decidedly worse than expected and likely to continue to pressure solar stocks - particularly those such as Yingli (YGE) with a significant exposure to German solar demand.

From a peak of $0.75 per kWh, Germany will now pay $0.255 per kWh for smaller installations, still four times the market price for wholesale electricity but only a third of what they paid during First Solar's boom years.  As I wrote yesterday, Germany was essentially paying $2 for milk from brown cows and $25 for milk from black cows.  This can't be sustained.

If one assumes a wholesale electricity price of 6 cents, First Solar's German customers were getting a 92% subsidy.  Sure, First Solar now faces other problems like Chinese competition and they have shot themselves in the foot on quality, but at the end of the day the only way they can survive is to convince some other government to turn on the taxpayer money spigot to keep them in business.  I am hoping we in Arizona and the US will not be the suckers, but I fear that we will.  One can argue the projects I discussed the other day, including the one where we taxpayers loaned First Solar the money to sell its solar panels to its own subsidiary, are evidence of this.  My guess is that First Solar will be throwing a lot of money and time towards Obama, praying for his re-election.

Update:  I found a bit more time to give some more background on First Solar and German feed in tariffs here.

If I had the time, I would love to try to research and list every subsidy recieved by a company like First Solar.  Here are just a few:

First Solar is an Arizona-based manufacturer of solar panels. In 2010, the Obama administration awarded the company $16.3 million to expand its factory in Ohio -- a subsidy Democratic Gov. Ted Strickland touted in his failed re-election bid that year.

Five weeks before the 2010 election, Strickland announced more than a million dollars in job training grants to First Solar. The Ohio Department of Development also lent First Solar $5 million, and the state's Air Quality Development Authority gave the company an additional $10 million loan.

After First Solar pocketed this $17.3 million in government grants and $15 million in government loans, Ex-Im entered the scene.

In September 2011, Ex-Im approved $455.7 million in loan guarantees to subsidize the sale of solar panels to two solar farms in Canada. That means if the solar farm ever defaults, the taxpayers pick up the tab, ensuring First Solar gets paid.

But the buyer, in this case, was First Solar.

A small corporation called St. Clair Solar owned the solar farm and was the Canadian company buying First Solar's panels. But St. Clair Solar was a wholly owned subsidiary of First Solar. So, basically, First Solar was shipping its own solar panels from Ohio to a solar farm it owned in Canada, and the U.S. taxpayers were subsidizing this "export."

But this is just a few of them, even on this deal.  For example, the Canadian solar farm very likely picked up federal and provincial subsidies from Canada, and even more likely gets some kind of subsidized feed-in tariff (meaning that an above-market wholesale rate is paid for its electricity).  This sort of feed-in tariff, which is paid by electricity consumers, is wholly un-transparent and likely makes up the large bulk of solar subsidies.   I know the state of Arizona threw a lot of money at First Solar as well (which is headquartered in the Phoenix area.)

During First Solar's boom years, the company was mainly supported by sales to Germany, probably one of the worst solar sites in the world after perhaps Seattle.  But the German government mandated feed-in tariffs for solar that were five times (or more) the market price for electricity.  It was like saying that, while milk generally goes for $2 a gallon, the government mandated that milk from  brown cows could be sold for $10 a gallon, and what's more, consumers had to buy it.

The House Your Tax Money Built

Dear America,

Have fun resetting all those clocks this weekend.  Sorry about the hour you lose.

Love, Arizona

PS-  we have to have something to make up for Sheriff Joe, and not farting with DST eases the pain a bit.  See my article here about why DST is an outdated concept that no longer saves energy -- it turns out that the nature of electricity demand has changed over the last 100 years since DST was first tried.  Who would have thought?  Anyway, this research essentially demonstrates that Arizona is at the forefront of modern, science-based environmentalism.

From today's AZ Republic

Women have wrinkles, pores and curves. And there's a movement across the world to make sure advertisers can no longer pretend otherwise.

Now, that movement has come to Arizona.

House Bill 2793, proposed by Rep. Katie Hobbs, D-Phoenix, would require advertisers who alter or enhance a photo to put a disclaimer on that ad alerting customers that "Postproduction techniques were made to alter the appearance in this advertisement. When using this product, similar results may not be achieved."

Really?  You mean my wife isn't going to suddenly look like Demi Moore if she uses Dove soap?  Next you are going to tell me that drinking Miller Lite does not cause me to suddenly be surrounded by hot women.

Update:  Apprarently this is about empowering women by treating them like moronic rubes

"As an organization, we are all about empowering women and eliminating discrimination," Richard said. "We want to make sure that young women get a better start and better self-image."

He said girls need to understand that these photos aren't all real. Someone has airbrushed out the model's wrinkles and pores, or put a woman's head on top of a computer-generated perfect body.

"You need to disclose that so our young women don't grow up thinking a poreless face is possible," he said. "That's not the way that I think anyone wants to raise their daughters."

Also, apparently its the 100th anniversary of Arizona statehood.  I am kind of proud of my state for making this anniversary a virtually ignored event.

Yes, our Arizona legislature keeps cranking out the hits

In what has to be the most hilariously unconstitutional piece of legislation that I've seen in quite some time, senators in the Arizona state legislature have introduced a bill that would require all educational institutions in the state -- including state universities -- to suspend or fire professors who say or do things that aren't allowed on network TV. Yes, you read that right: at the same time the Supreme Court is poised to decide if FCC-imposed limits on "indecent" content in broadcast media are an anachronism from a bygone era, Arizona state legislators want to limit what college professors say and do to only what is fit for a Disney movie (excluding, of course, the Pirates of the Caribbeanfranchise. After all, those films are PG-13!).

Amazing.  I had thought the nominal reason for the FCC standards was because non-adults might watch TV and hear a bad word that they likely hear 20 times a day at school.  But college kids are generally adults.  This is just bizarre.

The Huffpo article did not mention the bill's sponsor, but how much do you want to be its a Conservative who has in the past lamented political correctness on campus?  [update: sponsors here]

Via the WSJ

Glendale, Ariz., is selling about $136 million in debt in the municipal-bond market this week, just days after Moody's Investors Service cut its bond rating because of the desert city's obligations to cover losses on a National Hockey League franchise.

In exchange for the NHL's promise to manage team operations and keep the team in Glendale until a new owner is found, the city agreed to compensate the league, the city's executive communications director, Julie Frisoni, said.

The Coyotes filed for bankruptcy protection in 2009, and that spring, the NHL became the owner of the team. In exchange for keeping the team, the city signed an agreement to absorb up to $25 million of the team's losses in both 2011 and 2012, in anticipation of finding a new owner, Moody's analysts said.

Glendale is slowly sinking itself in a mountain of debt to pursue its insane strategy to subsidize every billionaire sports owner in Arizona.  The town of 225,000 people is spending $25,000,000 to fund the operating losses of a freaking hockey team -- that's nearly $500 a year for every 4-person family in the city.  Nuts.  And this is just their operating subsidy, it does not include debt service on the $300 million stadium it built for the team.

The problem is that the team is worth less than $100 million in Arizona (based on recent sales comps of other NHL franchises in warm cities like Atlanta) but might be worth $300-$400 million if moved to Canada (Jim Balsillie made an offer in this range, including an offer to pay down $150 million or so of the city's debt, before RIM stock started to crash).  The NHL, which owns the team now, has promised owners that they will not take a penny less than $200 million for the team, and that they will not suffer any operating losses.

So, because they simply cannot admit they were wrong to subsidize the team the first time around, to keep the team in Glendale the city must either fund $25 million a year in team operating losses or it must pony up $100 million or so to bridge the team's $100 million value in Arizona and the league's $200 million price tag (something they tried and failed to do last year when the Goldwater Institute pointed out that such a subsidy was unconstitutional in AZ.

I repeat, what a big freaking mess.  How do you avoid it?  The only way is the Wargames strategy, ie the only winning move is not to lay the sports team subsidy game in the first place.

Well, it appears that Solyndra has not scared solar companies off from feeding at the state trough

More subsidies for the solar industry in Arizona are crucial to avoid being left behind by other states and China, a Phoenix business leader said today at a solar-power conference.

Tax incentives and loan guarantees "make a lot of sense" right now in Arizona, which is already a leader in the industry, said Barry Broome, president and CEO of theGreater Phoenix Economic Council at the Solarpraxisconvention.

Despite the high-profile financial failure of the Solyndrasolar plant this year in California, Broome told a packed conference room that solar power is destined to be a major force in Arizona and elsewhere. The only question, as he sees it, is whether sunny-skied Arizona will take full advantage....

Behind Broome on an overhead screen, a chart showed that Texas, Oregon, Nevada and other states provide more "aggressive economic development tools," (a.k.a. public money), for solar power than Arizona, and the state can't compete without doing the same thing.

What is this, a football game?  This strikes me as turn-of-the-century small town boosterism updated to the 21st century, with a dollop of tribal rivalry thrown in. He's talking mainly about manufacturing of solar components.  I am left with a couple of questions

• Why should the fact that Arizona has sunny skies have any bearing on whether or not it is an appropriate spot to manufacture solar panels.   Should Seattle subsidize umbrella manufacture because it is rainy there?   My sense is that transportation costs are a small part of the price to end users.  Arizona clearly will be a great spot for solar panels to be installed -- why does that mean we need to manufacture them?
• If other states like Oregon or China are subsidizing solar products that we might buy, shouldn't we celebrate that?  Thanks, taxpayers of Oregon, for forking over your tax money so we can buy solar panels cheaper in Arizona.  Why in the hell should be try to out-do them at this?  Now we can go invest our capital in a business that actually makes money.
• I am obviously not a fan of government-led economic/industrial policy, but if I were, why in the hell would I want to direct my state's capital and manpower towards a business that requires subsidies, ie can't make a profit  on its own in the marketplace?

Its just too easy to snipe at about everything in this article, but this caught my eye in particular

To help move the industry's message, Broome said, solar advocates must stop infighting over their competing technologies and present a unified and positive position.

Normally, I think an economist would argue that in an immature (both market-wise and technologically) product, competition and creative destruction between various competitors is critical to ultimate success.  So in fact this advice is totally senseless, unless you see the industry as a taxpayer-money-magnet rather than a real business, and then it makes perfect sense.  Politics, after all, demands simple sound bytes and a unified front.

Update:  In the first week of Harvard Business School, I learned a lesson from strategy class, in a series of two cases, that still may be the most important thing I learned there.  The cases were a hot, sexy electronics company, and a boring, dull as dirt water meter company.  To cut to the chase, the electronics company sucked as an investment, and the water meter company was a gold mine.  The moral, among several takeaways, is don't get fooled into thinking the hot, sexy business of the moment is necessarily a good investment.  Our development agencies in AZ are making this mistake in spades.  In fact, the entire history of government economic development efforts in Phoenix has been to chase sexy businesses at the top of the market, spend taxpayer money to get some plant relocations, and then see the businesses struggle.  We certainly did this with semiconductor fabs a couple of decades ago.

A small victory against the relentless march of the state regulators and licensors

Eyebrow threading to remove facial hair, a practice which has ancient roots in Eastern countries such as India and Iran, is gaining popularity around the country.

And threaders can now operate freely in the state without a cosmetology license after an October court settlement determined that the Arizona Board of Cosmetology would no longer regulate the trade.

The consent judgment resulted from a lawsuit filed in Maricopa County Superior Court by five threaders, including Gutierrez.

The threaders argued that the Board of Cosmetology was merely trying to help more traditional hair removal outfits remove a source of low-cost competition.  The threaders were represented by the IJ, who do great work for economic liberty

I got a call this morning from Homeland Security about their e-verify immigration tracking system (which we are required by law to use in Arizona).  The caller said that Homeland Security was interested in the satisfaction of their customers.  I told her that I am not her customer.  I am a subject of the state who is forced by law against my will to use their system.  A customer is someone who is in a voluntary relationship.

The call ended soon after that.  I supposed I have just asked for some sort of audit, but at this point I don't care.

For those of you in the Phoenix are, I would like to encourage you to check out the Arizona Ballet (disclosure:  my wife is on the board).

I was never a big ballet fan.  To be honest, the only times I really ever went in my younger days was when I was dating a girl who loved the ballet and when I was still in that relationship phase that I was bending over backwards to please her.

That being said, the Arizona Ballet is really doing a good job here.  In particular, we were dating far above our heads when we lured Ib Andersen as artistic director.  My wife wouldn't like me saying this, but we are not going to keep this guy in flyover country forever.

As I have grown to appreciate the ballet, I really like the more modern, story-less dances more than the classic ballets, but that is a matter of taste.  But this week the company is putting on Prokofiev's Cinderella, and the music, sets, and dancing are just fantastic.  This is not going to be the most daring or interesting dancing the company will do this year, but it is very likely the most accessible to the newcomer.  Everyone knows the story, so there are not any wtf? moments I get in some ballets, even ones as overdone as the Nutcracker.  And there is real humor in the ballet, in the form of the two stepsisters, that makes this perhaps the most accesible ballet for kids I have ever seen.

So go try it.

From my own state of Arizona (emphasis added)

A group of small-business proponents is asking the Legislature to guarantee startup money for Arizona enterprises.

The backers of a so-called Arizona Fund of Funds made their pitch to a handful of lawmakers Monday, saying businesses need government help to start hiring again.

That help should come in the form of tax credits, said John Kowalski, who is promoting the idea through the Arizona Growth Foundation, a group of venture capitalists working to bring more investment to the state.

The credits would be a safety net to encourage venture capitalists to invest in a pool of money that would be distributed to emerging businesses, said Kowalski, a former executive with the Arizona Small Business Association....

The government's role is to serve as a guarantor, through the tax credits, in case the investments don't yield the projected results.

While this is being sold as something for small business, what it looks like to me is just more of the same socialization of bankers' losses that helped get us into this financial mess.  I suppose this "profits are mine if it makes money, losses are the governments if it loses money" never grows old for investment bankers and VC's, but why is anyone taking this seriously anymore?

On November 2, 2011, I am hosting a conference in Scottsdale, Arizona on how public agencies can keep parks open through private recreation management partnerships.

For thirty years, the US Forest Service has seen radically declining recreation budgets, with far greater reductions than places like California is facing, but has not had to close parks and has kept most of their recreation areas well-maintained.

Their innovation was to take advantage of the substantially lower costs of private operators to run their campgrounds and picnic areas.

For the last couple of years, it has frustrated me to no end to watch states like California and Arizona -- really almost every state in the country -- let some parks accumulate deferred maintenance while other are closed when it simply is not necessary.

The event flyer is here, which hopefully you can also forward as an email from the link at the bottom.  If you know anyone in public recreation or in the your state's legislature who is interested in recreation issues, please point them to this site where they can learn about and register for this conference.  We have gotten some sponsorships such that government employees can attend for free, and the rooms in the hotel, a fabulous resort in Scottsdale, can be had for just $105 per night.

OK, so the Eastern narrative on Arizona is that it is full of a bunch of wacked-out xenophobic conservatives.  And sure, we have our share.  But the NY Times delves into an issue that, living here, I had never even heard of

The massive dust storms that swept through central Arizona this month have stirred up not just clouds of sand but a debate over what to call them.

The blinding waves of brown particles, the most recent of which hit Phoenix on Monday, are caused by thunderstorms that emit gusts of wind, roiling the desert landscape. Use of the term “haboob,” which is what such storms have long been called in the Middle East, has rubbed some Arizona residents the wrong way.

“I am insulted that local TV news crews are now calling this kind of storm a haboob,” Don Yonts, a resident of Gilbert, Ariz., wrote to The Arizona Republic after a particularly fierce, mile-high dust storm swept through the state on July 5. “How do they think our soldiers feel coming back to Arizona and hearing some Middle Eastern term?”

Presumably Yonts also uses some numeric system other than arabic numerals for his math as well.  Seriously, I could mine any community and find some wacko with some crazy idea.  Good journalists are supposed to have some kind of filter on these things to determine if they really are some pressing regional issue.  I live here and I have not heard one word about any such controversy.  But it fits the NY Times caricature of AZ, so they ran with it.

In fact, I think "haboob" has caught on pretty fast because it is a fun sounding name and it is something that is unique to AZ vs. other states.    After living on the Gulf Coast and in tornado alley and on the west coast, it is kind of nice to live in a place where the worst natural disaster you get is a dust tsunami that makes you have to go out and wash your car.

Lefties are struggling with the concept of a libertarian doing a good deed (in this case, Radley Balko's great journalism leading to the release of Cory Maye.

Here is the real problem for the Left:  This is exactly the kind of story -- a black man  railroaded into jail in Mississippi -- that leftish reporters used to pursue, before they shifted their attention to sorting through Sarah Palin's emails.  A lot of investigative journalism has gone by the wayside -- in Phoenix, it has really been left to independent Phoenix New Times to do real investigative journalism on folks like Joe Arpiao, as our main paper the Arizona Republic has largely fled the field.

I read this article three times to see if it made any sense, and it still does not, except as an incredibly ballsy attempt by a member in good standing of the corporate state to get more revenues out of its customers by government fiat.

A major shift in business is occurring at Arizona Public Service Co. and other regulated utilities in the state.

APS, Southwest Gas and other utilities are beginning to ask regulators to "decouple" their prices from the volume of their sales, which proponents said will encourage conservation.

If approved by the five-member Arizona Corporation Commission, decoupling would allow APS to collect a certain amount of revenue per customer regardless of how much energy was sold.

It would wipe out utilities' incentive to sell more power and be akin to a fast-food restaurant paying loyal customers to go on a diet.

Wow, what a fabulous business concept!   It's obviously a holdover from some horrible past wherein we pay for services based on, you know, actually getting those services.  End the tyranny of giving consumers something in return for their money!  In the modern corporate state, everyone knows a corporation earns revenue in proportion to how much influence it has with the government, and how much that government can be cajoled to let the company take by fiat from consumers.  Silly old me, actually charging people in my business for camping when they actually camp.  I should have been running to the government to get them to let me charge everyone in the country whether they camp or not.  By all means, let's let McDonald's decouple taking your money from actually giving you a Big Mac in return.

Seriously, beyond the fact that this concept is obscene, it makes zero sense even against its stated goal of conservation.   They are basically talking about shifting the consumer's marginal cost for electricity to zero.  How in the hell is that going to spur conservation?  Charge me the same amount each month for gas whether I drive or not, and that is going to cause me to drive less??

Apparently, in the weird mental world of utilities, conservation only results form utility subsidies of  efficient appliances.  So the big benefit here is utilities can somehow better afford their subsidies for more efficient appliances.  Left unexplained is why anyone would want to buy even a subsidized such device once their marginal cost for electricity goes to zero.  This is such a typical government-think, assigning much more value to government intervention and choice of winners in balancing supply and demand than they do to the operation of markets and prices.

Here is an idea -- just freaking stop subsidizing this stuff.  See, problem solved.   We now no longer need a new pricing model.  Either a conservation makes sense for the end user to invest in or it doesn't.  Here is an example they cite

An example of how APS promotes efficiency is found at the 250-student Metropolitan Arts Institute in Phoenix, which replaced $23,000 in lights last year. APS contributed $20,000 to the project.

The school said it saves about $2,000 a month in energy costs with the new lights and recovered its costs for the project in two months.

The new lights use less energy and produce less heat, reducing the air-conditioning needed.

Why the hell is our utility using my money to subsidize this particular institution?  If the numbers are right, the investment, without a subsidy has a 12-month payback.   Very respectable.  So why does this even need to be subsidized in the first place? Why is my money needed to give the Arts Institute a 1.5 month payback instead of a 12-month payback?

This is a total ripoff.  I can't possibly believe they are even considering giving this to these guys.

My column this week in Forbes is on Steve Levitt's daughter test.

There are lots of things that are legal, and should stay legal, that I don’t want my daughter participating in.   I don’t let my daughter hang out at the mall without an adult or have a video game console in her room, but other parent’s make different choices.  I think prostitution should be legalized but certainly hope my daughter does not become a hooker.  On the other side of the equation, I grew up drinking modest amounts of alcohol in the home with my parents (ie wine with dinner), and feel strongly this pays benefits later in life in the form of more rational approaches to alcohol, but I am legally barred in Arizona from taking this sensible parenting approach with my kids.

Oh, and by the way, as a word of advice to Mr. Levitt:  While you may be happy to see your daughter as a future poker champion, or you may want her to have the option of an abortion, a large portion of America thinks that your daughter making these choices is roughly equivalent to shooting heroin or engaging in prostitution, and they are going to try to ban them, and maybe even put her in jail for doing so.  In your theory of government, your hopes and dreams for your daughter rely on being able to out-vote folks who have very different hopes and fears.

This flawed view of government thrives in Washington because it neatly reinforces the ego and hubris so characteristic of politicians.  It essentially calls on 535 people in Congress to substitute their judgment for that of ordinary Americans on a zillion different questions, large and small.  Because in reality, Mr. Levitt’s philosophy of government plays out not as the government banning what I think is wrong for my daughter, but what Nancy Pelosi or John Boehner think are wrong for their daughter’s.

The city of Glendale, Arizona (a 250,000 population suburb of Phoenix) continues to pour money into its NHL Hockey Team.  The city has already spent $200 million on a stadium and is trying to find a legal way to hand $100 million to a private individual to buy the team and keep it in Glendale.  But that is not even the end of it:

The Phoenix Coyotes are expected to stay in Glendale at least one more season, with or without a permanent owner, if the City Council pledges another $25 million to the National Hockey League.

The cash would go to offset team and arena losses.....

The pledge is the second financial promise in as many years.

Glendale this week paid $25 million it pledged the league a year ago in hopes of keeping the Coyotes in town until a permanent owner was found.

The city paid this year's $25 million from a utilities-repair account.

It's unclear whether that same fund would be used again and when the city would have to pay.

The NHL says the team and arena lost $37 million last season.

Just to give you a sense of scale, $25 million a year is larger than the city's fire department budget.  It is over $100 for every man, woman, and child in the city, each of the last two years.  Residents of the town are subsidizing a money-losing team mainly enjoyed, to the extent it has fans, by people outside of the city of Glendale.  It is a $25 million city annual expenditure that mainly helps three or four bars and restaurants next to the facility.  Just paying off those obviously politically connected retail owners a few hundred thousand each would be cheaper.

It's hard to see populist, wacky GOP candidates making much progress nationally if they can't get any traction in Arizona.

A poll of 623 Arizona voters released today reflects a couple things -- almost nobody likes Donald Trump, and most people would prefer Sarah Palin not move here.In the poll -- from Public Policy Polling -- opinions are recorded about possible GOP nominees for the 2012 presidential election, and how they'd vote if they ran against President Barack Obama.

Donald Trump was the most unfavorable of five possible GOP candidates -- with a full 2/3 of people dissin' the Donald with an "unfavorable" ranking.

Remember that whole thing about former Alaska Governor Sarah Palin moving to Arizona for a possible Senate campaign?

Most people would prefer that not happen.

Palin was the second-most-disliked candidate -- with 62 percent having unfavorable opinions -- and a later question revealed 57 percent of people would prefer that she not move to Arizona.

Trump also suffered the biggest blowout in a hypothetical match-up against Obama, garnering votes from only 36 percent of respondents.

From the AZ Republic

Arizona police officers accused of misconduct will soon have more protection.

Gov. Jan Brewer has signed six bills, backed by police unions, that spell out procedures for internal investigations.

Great, because it was not already hard enough to take action against bad cops in a system where all the insiders - police and prosecutors - generally close ranks to defend them from scrutiny.

The new laws are not all bad -- at least one gives protections to internal whistle-blowers, something that is needed in a police culture that has an effective law of omerta against cops who call out other cops for bad behavior.  My guess, though, is that this rule will be used by unions who want to harass police management, rather than to protect street cops who testify against other street cops.

Defenders of the law said

Police unions weren't asking for anything more than the due process an arrested citizen receives, said Larry A. Lopez, president of the Arizona Conference of Police and Sheriffs.

"Just because we wear uniforms, we're not relegated to a watered-down version of constitutional rights," said Lopez, a Tucson officer.

I have said a number of times that this is not quite true.  Police are given powers to use force against other citizens that the rest of us do not possess.  This necessitates a kind of scrutiny and oversight by the state that would not be appropriate or legal for the average citizen.  For example, police simply do not have the privacy rights in conducting their jobs that the rest of us do.  We have seen too many times that when we give police broad discretion, special powers, and no oversight (or even a nudge and a wink guarantee against oversight), bad things inevitably happen.

If you are confused about what I am talking about, go read Radley Balko's archives.