Posts tagged ‘California State’

Our Great Political Sport: Scoring Points Off Tragedy

If one needs any skill as a politician, it is the ability -- with a straight face -- to, with no evidence whatsoever or even against countervailing evidence, blame any tragedy that occurs on your own personal bete noir.  Thus the Gabriel Giffords shooting was due to un-civil discourse by Conservatives, Benghazi was due to a YouTube video, the Boston Bombings were a results of too lenient immigration policy, the Newtown killings were due to the excess influence of the NRA, and the Gosnell murders were due to the legality of abortion.

In this same vein I received this email from California State Senator Fran Pavley

The recent Ventura County wildfires were just the latest example of the huge costs of climate change to California, serving as a reminder of the need for continued action, Sen. Fran Pavley (D-Agoura Hills) said Thursday. Presiding over a hearing of the Select Committee on Climate Change and AB 32 Implementation, Sen. Pavley noted that the unseasonably early wildfire in Ventura County two weeks ago generated $10 million in firefighting costs. The dangers of climate change are no longer an abstraction, Sen. Pavley said.

“We can’t afford extreme climate, and so California doing its fair share to reduce greenhouse gas emissions is incredibly important,” Sen. Pavley said.

Wildfires are one of many costs of climate change, environmental officials and experts said at the hearing. California also faces flooding, heat waves and threats to its drinking water system.

Even before atmospheric levels of CO2 rose, the US had thousands, even tens of thousands of wildfires a year.  So against a backdrop which would expect many fires in California even absent climate change (natural or man-made), it would be heroic to attribute one single fire to the effect of mankind's  CO2 production.  But it is even more astounding given that wildfires in the US are actually down so far this year -- way down.  Here is the data source, and here are two charts the Real Science blog prepared from this data.

screenhunter_275-may-05-05-06 screenhunter_276-may-05-05-07

Conference Invitation: Private Management of Public Parks

For those who may be interested, we are having a one-day conference on public-private partnerships for park operations on November 7 in Reno, Nevada.  The US Forest Service and those of us in the business have gotten a lot of inquiries from recreation agencies over the last year or so.  These folks are trying to keep parks open despite declining budgets.

The USFS figured out a way to do this over 30 years ago, and only now are other agencies starting to copy the model  (California State Parks just started using it this year, for example).  The USFS, like most agencies, charges a fee for the public to visit certain parks or to use campgrounds.  They found that they could not cover their high operating costs with just these user fees, and so had to use a lot of general fund money to keep the parks open.  Many complain that public recreation user fees are too high, but typically they cover only about half the agency's costs to run the park.  When general fund money started to go away, the USFS faced park closures, exactly the situation today in many state and local parks agencies.

The USFS found that private operators with a lower cost position and more flexibility could keep these parks open using just the user fees, and in fact actually pay the USFS some rent.  So instead of having to subsidize the park's operation with tax money, the parks began to generate funds for the USFS.

It took decades to get this right.  The USFS made mistakes in how they grouped parks into contracts, how they wrote the contracts, and how they did oversight.  The private companies made operating mistakes and some failed financially at awkward times, since when this program started there did not exist a pool of experienced operators.  But over the years, many of these problems have been worked out, and most privately-run sites operate to a standard at least as high as publicly-run parks.  Here in Arizona, three of the top five highest-rated public campgrounds are operated by private companies in the USFS program.

At this conference, both private operators and agency people experienced with this model will describe how it works as well as years of hard-won lessons learned.

The conference is free to most government agency officials, academics, and media and we have obtained a really inexpensive $49 hotel rate  (since by definition the agencies most interested in the model don't have much money).   The web site that describes the agenda and logistics is here.  Readers of this site who don't fit one of these categories but would still like to attend can email me at the link in the above site and I will get you in.

Um, It Seems We Have Misplaced $2 Billion

I do a lot of work with California State Parks, being a concessionaire in some of their parks, so I have been following the various scandals in that agency closely.  One part of the scandal was that CSP apparently hid something like $54 million in reserve funds from the legislature.  I wondered how it was possible for the state to not know there was $54 million lying around un-reported.

It seems like we have a partial solution to my quandary.  It is possible to misplace $54 million when you also misplace another $2 billion.

More than $2 billion in California taxpayer money has apparently been stashed in hundreds of special funds unaccounted for by the state Department of Finance, a newspaper reported on Friday.

An examination of more than 500 special fund accounts, like the $54 million discrepancy in state parks money, showed a $2.3 billion "discrepancy" between state controller and Department of Finance numbers, according to the San Jose Mercury News ( http://bit.ly/MPdkls).

No one checks the controller's figures, so the difference wasn't caught.

The analysis showed at least 17 accounts appear to have significantly more reserve cash than what was reported to the Finance Department.

The violent crime victim restitution fund, for instance, was off by $29 million, and a low-cost child health insurance fund was off by $30 million. The fund that rewards people who recycle bottles and cans was $113 million off.

State finance officials operate under a  longtime honor system. The controller's figures were never checked and oversight groups didn't catch the discrepancies even though the numbers are publicly available on two state websites.

LOL, politicians' "honor".  We can see what that is worth.

March of the Protected Groups

From California State contract language I am reviewing:

During the performance of this Contract, Concessionaire and its employees shall not unlawfully discriminate, harass, or allow harassment against any employee, applicant for employment, or any member of the public because of sex, sexual orientation, race, color, religious creed, marital status, need for family and medical care leave, ancestry, national origin, medical condition (cancer/genetic characteristics), age (40 and above), disability (mental and physical) including HIV and AIDS, need for pregnancy disability leave, or need for reasonable accommodation.

This is at least double the length of such passages in contracts I saw 8 years ago.  I wonder what the list will look like in another 10 years?

This used to be simple -- treat everyone equally.  But this is no longer sufficient to conform.  New groups added to the list require accommodations of one sort or another.  Non-discrimination requirements have morphed for us from "treat everyone the same" to "here is a list of groups with special privileges."  Generally, it's not that hard at present to fulfill but who knows how onerous it will be in a decade or two?

A Civics Lesson in One Sentance

A month or two back, I was participating in the California Regional Council of Rural Counties annual meeting.  At this conference, I was there to have a sort of informal debate on climate change with Joe Nation, a former California State legislator and currently a private consultant on climate issues.

To some extent my role was frustrating for the audience, because they were already stuck with complying with California's AB32 (a sort of state CO2 cap and trade system) and arguing that such legislation was pointless only served to upset them  (my presentation, both in powerpoint and video is here).  By the way, we often lump "government" together, but I can tell you that while the governor and the legislature of California may be 100% behind CO2 alarmism, the county commissioners were very sympathetic to the skeptic position.

Anyway, towards the end of my presentation I made a plea for a carbon tax over cap-and-trade, and said in fact that California's AB32 was living proof of my argument.  The California Air Resources Board (CARB), which is tasked with implementing the plan, has already added hundreds of people to its staff and worked for over two years, is still no where near finished with rule-making.  The complexity, and the battling political constituencies, is simply mind-boggling.  It is already clear that the result is going to be a Byzantine, Rube Goldberg structure of detailed industry-specific reporting and permitting rules.  Nearly 100% of CARB's time is taken up today with various groups running to them begging for some sort of special treatment (think "carbon bailout" and you will get the idea).  No one thinks the process is fair or rational.

Under cap-and-trade, every single industry will report greenhouse gasses, have industry and firm-specific limits, myriads of permits, etc.  For example, we had detailed discussions that day of how cattle flatulence will be treated and measured.  The alternative is a carbon tax, which is dead simple.  There is one single rate to set - the tax per weight of carbon in fuel.  Fuels with more carbon per BTU, like coal, thereby get higher taxes.  The system works like a sales tax, and could be administered by the BOE (who runs the California sales tax system) in its sleep.

The cap-and-trade system is far more expensive than a carbon tax.  By the basic laws of supply and demand, both systems have to raise the cost of burning certain fuels by about the same amount to get about the same reduction in use.  But the cap-and-trade system brings a huge overhead burden, both in government bureaucracy as well as compliance costs, that make it far, far more expensive for the same amount of benefit.  Until he started sitting on the boards of companies who depend on these inefficiencies in the cap and trade system to make money, Al Gore advocated a straight carbon tax over cap-and-trade.

But we had an opportunity that day.  Because the man who claims to be the author of AB32 is none other than Joe Nation, who was right there in the room.  So we asked him why he took this approach.  Here is what he said, really a civics lesson in one sentence:

I tried pass a carbon tax first, but there was absolutely no support for it among legislators [the same ones who overwhelmingly supported AB32]

If you can understand why this is, you can understand a lot about government.   Because all these concerns that you and I might have about crafting rational public policy are not important to legislators.  Here is how they think about it:

  • Private implementation and compliance costs are meaningless to legislators.  There is no public measurement or accountability for these costs, and most of these costs fall on businesses, who can be ignored as unsympathetic in political discourse.  I operate in Mono County, California, and they put out a new set of reporting requirements driven, they said, by the needs to save a few hours a year of their auditors' time.  But compliance with these new rules costs our company 10-20 hours, at least, a year.  And we are just one of many, many companies reporting.  I complained that it was crazy for them to ask taxpayers to spend hundreds of hours of labor to save them just a few, but they could not have cared less.
  • For legislators, particularly in California, creating large new bureaucracies is good.  It creates a patronage relationship between the legislators and these new government employees that is almost quasi-feudal.  Public employees are an enormous source of support for incumbent politicians, and these bureaucracies also offer future employment opportunities for legislators once they leave office (nice article here).
  • First, last, and always, the vast majority of politicians are gutless.  That means if they can pass the same tax in a way that is more hidden (ie cap-and-trade vs. carbon tax) they will prefer this approach, even if it means the tax is substantially less efficient.  In the case of cap-and-trade, since costs are hidden and spread around like peanut butter rather than easily identifiable, they can pretend the costs don't exist and, if someone starts worrying about rising electricity costs that result, simply blame the rising costs on the evil power/oil/coal/etc companies.  Obama has brilliantly taken this one step further, by outrageously claiming, in the broken windows fallacy of all time, that cap-and-trade will actually boost the economy through green job creation.
  • A carbon tax gives politicians very little room to extract personal value from the electorate.  Really, there is only one number for everyone to argue over.  But cap-and-trade is a Disneyland for lobbyists.  There can be special exemptions, industry specific caps, firm-specific caps, geography-specific caps.  Once everyone sees the first few guys giving campaign donations and parading into CARB for special treatment, everyone feels like they have to in order to avoid being the one guy left out.  My guess is that cap-and-trade will spawn more lobbying than any other legislation in US history.  And politicians, no matter what their public stance, love lobbying, because everyone who comes to ask them for something knows there has to be a quid pro quo.

Update:  A number of related thoughts and posts here, at Reason.

So Wrong, I Almost Wish It Would Pass

Sometimes a proposed law is so wrong and so destructive, but so typical of a certain philosophical bent, that I almost wish it would pass, if for no reason than to have an Atlas Shrugged-type object example of disastrous results.  Such is the case for a California ballot initiative that has qualified for the signature-gathering stage.  The initiative, in part:  (full text linked here)

  • Imposes one-time tax of at least 55% on property
    exceeding $20 million of a California resident or held in California by
    nonresident.  [note that this is an asset tax, not an income tax]
  • Imposes one-time tax (between 36.5% - 54.3%) on income exceeding $10 million when resident dies or leaves California.
  • Imposes
    additional 17.5% tax on total incomes of taxpayers with income
    exceeding $150,000 if single, $250,000 if married; 35% if incomes
    exceed $350,000 if single, $500,000 if married.
  • The proceeds of this money will be used to:
    • To
      purchase 30% to 51% of the outstanding shares of stock in ExxonMobil,
      Chevron, General Motors, Ford, Goldman Sachs, JP Morgan Chase, and
      Citigroup, in order to ensure California has an uninterrupted source of
      energy and financial capital.
    • To drain and restore the Hetch Hetchy Valley to it's condition at the beginning of the 20th century.
    • Use
      any Surplus funds to combat Global Warming, make infrastructure repairs
      and improvements, and to research alternative energy sources.

Beyond the unbelievably Marxist confiscation going on here, it begs the question of just what supply of energy and financial capital that California is not getting today that this will somehow ensure.  The implication seems to be that ExxonMobil, GM, and Citigroup are too fair-minded, selling their wares too even-handedly, and that California would prefer their attention tilted towards California.

Of course this initiative is profoundly immoral, so I can't do anything but deride it, but it would make for a spectacular object lesson (though one would have thought the Soviet Union's experience to be sufficient to this task, but apparently not).  I am sure GM's troubles would be greatly helped by replacing its board of directors with the California State Legislature  (the only American organization running a bigger deficit than GM) and replacing Citigroup's credit analysists with California social services beauracrats.  I would kind of like to see this in the same way I would love to see what happens if I threw a crate of flourescent tubes off a 10th-floor roof  -- I would never actualy do it, because it would be unsafe and destructive, but I can still dream about how compelling the disaster would be.

Postscript: One could probably label this the Arizona and Nevada economic stimulation act and probably not be far off the mark.

How to Keep State Parks Open in California

Letter I sent to Governor Schwartzenegger in response to his plan to close a number of California State Parks due to budget problems:

I know many people are
probably contacting you to oppose proposed closures of state parks to help meet
budget targets. My message is a bit
different: Closing these parks is
totally unnecessary. 

I own and manage one of the
larger concessionaires in the California State Park (CSP) system. We are the concessionaire at Clear Lake
and Burney Falls. At Burney Falls, for example, we have invested over a million dollars
of our money in a public-private partnership with the state to revamp to the
park. We also operate parks for the
National Park Service, the US Forest Service, Arizona State Parks, Texas
State Parks, and other public authorities.

Traditionally, CSP has
engaged concessionaires to run stores and marinas within parks, but not to run
entire parks. However, in many other
states, our company runs entire parks and campgrounds for other government
authorities, and does so to the highest quality standards. 

So, I can say with confidence
that many of the California State Parks proposed for closure would be entirely
viable as private concessions. For
example, we operate the store and marina at Clear Lake State Park
but
could easily run the entire park and make money doing so, while also paying
rent to the state for the privilege.

I know that there are some
employees of the CSP system that oppose such arrangements with private
companies out of fears for their job security. But it would be a shame to close parks entirely when an opportunity
exists to keep them open to the public, and improve the state budget picture in
doing so. 

Even if California decides to keep these parks open, I would encourage
you to have your staff investigate the possibility of expanding private
operation of state parks. CSP already
has one of the best and most capable concession management programs in the
country, a success you should seek to build on. The infrastructure is already there in CSP to solicit bids for these
projects and ensure that management of them meets the state's quality and
customer service standards.

Even though everything I said here is true, it probably is a non-starter because most state organizations are dead set against such private management.  They would rather close services to the public than establish the precedent of private management. 

Besides, the whole parks closure may well be a bluff.  Unlike private company budget discussions, where it is expected that managers offer up their marginal projects for cuts, the public sector works just opposite:  Politicians propose their most popular areas of spending (parks, emergency services) for cuts in a game of chicken to try to avoid budget cuts altogether.  As I wrote here:

Imagine that you are in a budget meeting at your company.  You and a
number of other department heads have been called together to make
spending cuts due to a cyclical downturn in revenue.  In your
department, you have maybe 20 projects being worked on by 10 people,
all (both people and projects) of varying quality.   So the boss says
"We have to cut 5%, what can you do?"  What do you think her reaction
would be if you said "well, the first thing I would have to cut is my
best project and I would lay off the best employee in my department". 

If this response seems nuts to you, why do we let politicians get
away with this ALL THE TIME?  Every time that politicians are fighting
against budget cuts or for a tax increase, they always threaten that
the most critical possible services will be cut.  Its always emergency
workers that are going to be cut or the Washington Monument that is
going to be closed.  Its never the egg license program that has to be cut.

Update: Here is the form letter the governor's office sent out in response to my letter:

A weakened national economy and auto-pilot state spending has created a projected budget shortfall of $14.5 billion for fiscal year 2008-09. Although state government revenues this coming year are actually forecast to hold steady, the problem is that every year automatic spending formulas increase expenditures.  Left unchecked, next year's budget would need to grow by 7.3-percent, which is $7.6 billion; even booming economies can't meet that kind of increase.  To immediately combat this crisis, the Governor has proposed a 10-percent reduction in nearly every General Fund program from their projected 2008-09 funding levels.  While these reductions are unquestionably painful and challenging, this across-the-board approach is designed to protect essential services by spreading reductions as evenly as possible.

To achieve this difficult reduction, State Parks will be reducing both its permanent and seasonal workforce.  As a result, 48 park units will be closed or partially closed to the public and placed in caretaker status.  By closing parks and eliminating positions, remaining resources can be consolidated and shifted to other parks to provide for services necessary to keep those parks open and operating.  While 48 parks are affected by closures, 230 parks-or 83% of the system-will remain open.

We must reform our state budget process.  Government cannot continue to put people through the binge and purge of our budget process that has now led to park closures.  That's why the Governor has proposed a Budget Stabilization Act.  Under the Governor's plan, when revenues grow, Sacramento would not be able to spend all the money.  Instead, we would set a portion aside in a Revenue Stabilization Fund to stabilize the budget in down years.  If a deficit develops during the year, instead of waiting to accumulate billions of dollars of debt, the Governor's plan would automatically trigger lower funding levels already agreed upon by the Legislature.  Had this system been in place the past decade, we would not be facing a $14.5 billion deficit. 

As Governor Schwarzenegger works with his partners in the Legislature, he will keep your concerns in mind.  With your help, we will turn today's temporary problem into a permanent victory for the people of California.

Yearning for Something Better than Kwanzaa

I have had several emails this week about Kwanzaa, so I guess it is time for my annual Kwanzaa rant.  This article has become an annual tradition at Coyote Blog, I guess to make sure I start the new year with plenty of hate mail.

The concept of a cultural celebration by African-Americans of
themselves and their history is a good one.  Whenever I write about
blacks in America, much of the email I get tries to educate me in how
much the "lost heritage" issue matters to African-Americans, a concept
I have never fully grasped since I am happy, after the 20th century, to
leave behind my German heritage.  Even if I'm not into it, I have no
problem with people of any ethnic
group or race or whatever creating a holiday.  Life is worth
celebrating, as often as possible, even if we have to make up new
occasions.

The specific values
celebrated in Kwanzaa, however, suck.  They are socialist-Marxist-collectivist-totalitarian crap.   Everyone seems to tiptoe
around Kwanzaa feeling that they have to be respectful, I guess because
they are fearful of being called a racist.  However, I find it terrible
to see such a self-destructive set of values foisted on the
African-American community.  These values are nearly perfectly
constructed to keep blacks in poverty - just look at how well these
same values have played out in Africa.

To begin, its important to understand that Kwanzaa is not some ancient African ethno-cultural tradition.  Kwanzaa was made up in 1966 by Dr. Maulana Karenga.  Karenga was a radical Marxist in the 60's black power movement.  Later, Karenga served time in jail for torturing two women:

Deborah
Jones ... said she and Gail Davis were whipped with an electrical cord
and beaten with a karate baton after being ordered to remove their
clothes. She testified that a hot soldering iron was placed in Miss
Davis' mouth and placed against Miss Davis' face and that one of her
own big toes was tightened in a vice. Karenga ... also put detergent
and running hoses in their mouths, she said."

Interestingly,
after this conviction as well as incidents of schizophrenia in prison
where "the psychiatrist observed that Karenga talked to his blanket and
imaginary persons and believed that he had been attacked by
dive-bombers," California State University at Long Beach saw fit to
make him head of their Black Studies Department.

Anyway,  I give credit to Karenga for wanting to create a
holiday for African-Americans that paid homage to themselves and their
history.  However, what Karenga created was a 7-day holiday built
around 7 principles, which are basically a seven step plan to Marxism.
Instead of rejecting slavery entirely, Kwanzaa celebrates a transition
from enslavement of blacks by whites to enslavement of blacks by
blacks.
  Here are the 7 values, right from the Kwanzaa site (with my comments in red italics):

Umoja (Unity)
To strive for and maintain unity in the family, community, nation and race

On
its surface, this is either a platitude, or, if serious, straight
Marxism and thoroughly racist.  Think about who else in the 20th
century talked about unity of race, and with what horrible results.

In
practice, the notion of unity in the black movement has become sort of
a law of Omerta -- no black is ever, ever supposed to publicly
criticize another black.  Don't believe me?  Look at the flack
Bill Cosby caught for calling out other blacks.

Kujichagulia (Self-Determination)
To define ourselves, name ourselves, create for ourselves and speak for ourselves

Generally
cool with me -- can't get a libertarian to argue with this.  When this
was first written in the 60's, it probably meant something more
revolutionary, like secession into a black state, but in today's
context I think it is fine.

Ujima (Collective Work and Responsibility)
To
build and maintain our community together and make our brother's and
sister's problems our problems and to solve them together

Um, do I even need to comment?  This is Marxism, pure and simple.

Ujamaa (Cooperative Economics)
To build and maintain our own stores, shops and other businesses and to profit from them together.

OK, I said the last one was Marxism.  This one is really, really Marxism. 

Nia (Purpose)
To
make our collective vocation the building and developing of our
community in order to restore our people to their traditional greatness.

There's that collectivism again

Kuumba (Creativity)
To
do always as much as we can, in the way we can, in order to leave our
community more beautiful and beneficial than we inherited it.

I
guess I don't have much problem with creativity and make things
better.  My sense though that if I was to listen to the teaching on
this one in depth, we would get collectivism again.

Imani (Faith)
To
believe with all our heart in our people, our parents, our teachers,
our leaders and the righteousness and victory of our struggle.

What
about in ourselves as individuals?  Through all of this, where is the
individual, either individual responsibility or achievement?  It is
interesting that a holiday
that
was invented specifically to be anti-religious would put "faith" in as
a value.  In fact, Karenga despised the belief in God as paying homage
to "spooks who threaten us if we don't worship them and demand we turn
over our destiny and daily lives."

However,
this is in fact very consistent with the teachings of most statists and
totalitarians.  They tend to reject going on bended knee to some god,
and then turn right around and demand that men go on bended knee to ...
them, or other men.  This is in fact what this "faith" was about for
Karenga - he is a statist laying the foundation for obedience to the
totalitarian state.  He wants blacks to turn over their destiny and
daily lives to their leaders, not to god.

So,
in conclusion, Kwanzaa was designed as a celebration of creating a
totalitarian collectivist Marxist racist state among
African-Americans.  I may well get comments and emails that say "oh,
that's not how we celebrate it" and I will say fine - but Marxism is the
core DNA of the holiday, a holiday created by a man who thought Lenin
and the Black Panthers were all wimps.

Never wishing to criticize without suggestion a solution, here are alternate values I might suggest:

Freedom
- Every individual is his own master.  We will never accept any other
master again from any race (even our own).  We will speak out against
injustices and inequalities so our children can be free as well.

Self-Reliance - Each individual will take responsibility for their life and the lives of their family

Pride - We will be proud of our race and
heritage.  We will learn about our past and about slavery in
particular, so we will never again repeat it. 

Entrepreneurship - We will work through free exchange with others to make our lives better and to improve the lives of our children

Education - We will dedicate ourselves and our time to education of our children, both in their knowledge and their ethics

Charity - We will help others in our country and our community through difficult times

Thankfulness - Every African-American
should wake up each morning and say "I give thanks that my ancestors
suffered the horrors of the middle passage, suffered the unforgivable indignity and
humiliation of slavery, and suffered the poverty and injustices of the
post-war South so that I, today, can be here, in this country,
infinitely more free, healthier, safer and better off financially than
I would have been in Africa."

By the way, if you doubt that last part, note that in the late 90's, median per capita income of African Americans was about $25,000, while the per capita income of Africans back in the "old country" was around $700, or about 35x less.  Note further this comparison of freedom between the US and various African nations.  Finally, just read the news about the Congo or Rwanda or the Sudan.

You can view the comments previously posted to this article here and here.

Privatizing Public Recreation

A bit over five years ago, I wrote an op-ed piece in our local paper calling for further privatization of public recreation.  The editorial was in response to a proposal for a large bond issue to rebuild recreation infrastructure.  I argued that the state should instead be focusing on attracting private investment.  Not only was there more money for recreation in private hands than public, but I sensed that private funds would more likely be invested in facilities the public really wanted, rather than goofy politically correct projects.  Further, private operators could operate recreation facilities much less expensively, in part because they are not tied to ridiculous public pay scales, pension plans, and job classifications.

Soon after, I had a business broker call me and ask me if I wanted to put my money (such that it was) and time where my mouth was.  After a lot of twists and turns, I ended up the owner of a recreation concession company.  In a recreation concession, a private operator pays the government rent in exchange for the ability to charge visitor fees and run the recreation facility for profit.  In most cases, our company can operate a property and make a profit on fees lower than the government must charge just to break even.

My business, Recreation Resource Management, has prospered since then.  And as I have gotten deeper into public recreation, what I have learned has only confirmed what I wrote in that editorial.  I have seen that when the government runs recreation facilities, it almost never spends enough money on capital maintenance and refurbishment.  The reason seems to be that legislators, given the choice, would much rather spend $X on a shiny new facility they can publicize to their constituents than spend $X maintaining facilities that already exist.  I laugh when I here progressives argue that private industry is too short-term focused and only the government invests for the long-term.  In practice, I find exactly the opposite is true.  Think about hotels, or gas stations, or grocery stores.  Private businesses understand that every 15-20 years, they need to practically rebuild existing infrastructure from scratch to keep them fresh for customers.  This kind of reinvestment almost never happens in public recreation.

Except this week!

After years of building up our business, we just completed a project with California State Parks that is what I have always wanted to achieve with the company.  At McArthur-Burney Falls State Park, California State Parks had an aging concession store and an outdated section of the campground that it really did not have the money to rehabilitate (by the way, this is an absolutely beautiful park -- I highly recommend it).  We crafted a two-part lease with the state which eventually led to us investing over a million dollars in the park:  In phase one, we built a new concession store (old store on left, our new store on right):

Park_storeexterior000  Store3

In phase two, just complete, we took an old tent-camping loop with no utilities and added 24 new cabins.  These cabins not only refurbish an aging and dated section of the campground, but they also add new amenities to the park to attract visitors who may not own an RV and who don't want to sleep in a tent.  In addition, since they are insulated and heated, these cabins will extend the camping season -- in fact, we already have a number of reservations for Thanksgiving, a time when no one would have wanted to tent camp here.

Cabin1    Cabin_inside2

Its a  win-win-win, where  we make money, the state gets lease revenues
from us that exceed their previous camping revenues, and the public
gets new amenities without any taxes or public spending.

So, in answer to the question I so often get, "why does a libertarian run a company that works with the government?"  Now you know why.  I will admit that from time to time I find myself on the losing end of libertarian-intellectual-purity debates because I choose this path rather than, say, living in a cabin in the wilderness and manufacturing rifle barrels for a living.  *Shrug*

Postscript:  One lesson I have also learned is that state governments are not always a monolith.  Texas and Florida, for example, while being beloved of libertarians for having no state income tax, can be horribly bureaucratic in certain areas (e.g. sales tax reporting and vehicle registrations).  California, on the other hand, which in many ways is one of the worst states to do business in, actually has what is probably the most innovative and business-friendly state parks organization in the country.  Go figure.

PS#2:  By the way, the cabins shown are actually modular buildings, built here in Phoenix by Cavco, and shipped to the site.  The classy interior work was done my by maintenance supervisor.

That Vanishing First Ammendment Thingie

Via Overlawyered:

They're doing it again in California: "State and federal authorities
have opened an investigation into a Norco housewife, alleging that her
vitriolic protests against a high-risk group home in her neighborhood
may constitute housing discrimination." Federal officials asked state
fair housing regulators to investigate Julie Waltz, 61, who had
protested plans to open a group house next to her home for
developmentally disabled residents; among those eligible to reside
there under state law would be persons deemed not competent to stand
trial on sex crime charges.

Yes, you heard that right.  She is being threatened with a housing discrimination charge by the government for exercising free speech on a public policy issue.