LFRWC Presentation – Apr. 13, 2011 Vance Jochim FiscalRangers.com

1. LFRWC Presentation – Apr. 13, 2011Vance Jochim FiscalRangers.com Understanding when government spending is corporate welfare and not taxpayer welfare & How to identify a True Fiscal Conservative by their Behavior

2. Topics • Background of VJ & FiscalRangers.com focus • I have been attending School District Board meetings since 2006, and County & Hospital District Board meetings since 2009. • Objectives • Why Public Oversight of Government is Needed • Examples of Fiscal Issues –Schools & County • Three types of “Fiscal Conservatives” • Understanding Corporate Welfare & Examples • Fiscal Conservative Practices • Conclusion & Recommendations

3. Objectives • Give you examples of local government corporate welfare and bad fiscal practices. • Give you examples of actions of true fiscal conservatives vs Republicans in Name Only (RINO’s) • Motivate you to follow politics more, challenge public officials. • Motivate you to get FiscalRangers.com emails, join Facebook page.

4. Why Public Oversight of Government is Needed • Newspapers rarely do investigative articles • Daily Commercial – none • Lake Sentinel – Only Lauren Ritchie • Government is a monopoly – no cost control discipline forced by market competition. • Local County government and most Const. offices not subject to public meetings and internal audit is poor. • Elected officials rarely have large organization management skills to question staff. • Staff provides constant focus to fund new projects & officials don’t challenge it enough.

5. School Board Fiscal Issues • Contracts without measurable deliverables • Teacher’s Union wages w/o economic analysis • Audits of School Construction - $7-m litigation • Charter Schools – District failed to charge for services. No estimate of losses yet. • Hiring practices for professionals outside teaching were poor. Internal Audit • Did not have performance benchmarks. Now?

6. Lake County Board Fiscal Issues • Budget is: • No acceptable performance benchmarks – counts? • Fiscal Fiascos – Welton & Jennifer • $35-million for Motorola Radio – no bids • $1.5-million maintenance not budgeted • $1-million in unbudgeted firefighter overtime • $600,000 in const. costs not board approved • Rogue manager • Scandal over SHIP program • Scandal over hiring, firing, promotion, demotion • Comp Plan requires 14 atty man years to implement • Comp Plan violated property rights with regs

7. Fiscal Conservatisim or Not? • Liberals – Increase spending, taxes and government – no sense of cost controls – offset increased spending with taxes, debt, printing money which causes inflation. Favorite method is to expand eligibility for programs – i.e. immigrant parents on SSI • Old Way: Establishment Republican takes contributions from large donors and votes for their interests – “business supporting = being fiscally conservative”. Dems take from liberal interest groups. • Hospitals • New Way: Take no funds from large business or special interests – reduce costs – Tea Party approach

8. Understanding Corporate Welfare • Federal examples • Ethanol subsidies for gas vs market based pricing • Forcing regulations on public that cause damage • Regulations can be Corporate welfare • Restrict competition, cause monopoly: cable tv

9. Library vs School example • Library with 20 rows of shelves. • Staff wants $2-million addition to add books • As public official – what would you do? • Accept staff recommendation and approve it. • Challenge factors to find another solution.

10. Examples of Local Corporate Welfare • North Lake Hospital District • Gives $10-million to two hospitals with no rules. • “Bent” Constitution requirements for votes. • School Board Purchasing Procedures • State law requires choosing top vendor without price consideration- then price negotiated. • Lake County - $18-m Railroad project w/o any ROI or offsetting revenue plans. • Lake County – Waive $4.7-million School Impact Fees w/o sound data = Builder welfare

11. How to identify true “NEW” fiscal conservatives who get your vote • Don’t vote for them just because they are a Republican. • Read about, and watch local government entity board meetings and watch for the following types of fiscal conservative behavior… • See next pages

12. Fiscal Conservative Practices - 1 • Challenge staff funding requests • Judicial center – Jimmy Conner cut to $50-m • EOC – Went from $4.5m to $11m, now $9m • Schools – Grassy Lake $2m vs re-zone – Kyleen • Champion consolidation – mostly talk • Fire services, purchasing, sign painting • Cut regulations – rare – staff pushes expansion • Public discussions vsburying items in consent agenda with no public discussion • Allow public input at each agenda item (School Districts allow this – Lake County only allows one chance at beginning of meeting)

13. Fiscal Conservative Practices - 2 • Reject Sole Source purchase decisions – Motorola Radio • Property Rights vs Comp Plan restrictions – environmentalists pushed through regs that restricted land use, reducing land rights and value. • READ budget details & spending requests vs following staff recommendations. • Challenge Agenda 21 “Green” restrictions vs no concern about cost – Septic tanks • Demand alternatives to staff spending plans – Grassy Lake vs rezoning – Kyleenrequested 6 alternatives

14. Fiscal Conservative Practices - 3 • Challenge excess fees – attorney, etc – require competitive analysis vs staff not providing • Demand data driven evidence of department performance based upon performance ratios vsemotional statements to provide value. • Sunset spending programs vs constant renewing of social program spending. Grants, Vets, Elder, Children. • Focus on basic economic drivers vs corporate welfare – impact fees vsfixing foreclosures / jobs problems first.

15. Fiscal Conservative Practices - 4 • Demand cost estimates first vs approving design contracts without any price info – staff should be competent to provide estimates • Weekly or monthly monitor of priority programs – econ dev, jobs, foreclosures, road quality vs no monitoring • Avoid Platitudes in speeches and provide factual evidence of actions on fiscal issues. • Safety net programs vsconstant entitlement w/o reduction

16. Fiscal Conservative Practices - 5 • Challenge “level of service” vs privatizing, or offboarding programs. • Ensure fiscal conservatives are on committees – impact fee committee run by liberals, avoided cost issues. Comp Plan committee run by liberals. • Establish qualified pros to challenge, ensure accuracy in “studies” like impact fees. • Demand staff learn skills to conduct justification studies vspaying outsiders. • Challenge conservative attorney. BCC Medicaid

17. Fiscal Conservative Practices - 6 • Initiate policy to prevent fiscal fiasco repetition vs approve funds for fiscal fiasco without penalty/policy. • Research BUSINESS metrics for functions and demand same of government staff BEFORE funding their budgets. • Move to Self Sufficiency in programs • Ensure proper fiscal management with controller, internal audit. • Improvise or find lower cost way vs buying new building, etc. (Leslie Campione brought this up re EOC center) • Reject marble towers – compare to MontVerde academy functional buildings vs expensive govt buildings • Demand wages, benefits be based on economic indicators and private business best practices. No 100% BENEFITS.

18. Fiscal Conservative Practices - 7 • Demand “rule of law” based practices vs backdoor emotional or vendor pushed examples. I.E. follow public policy on hiring vs hiring cronies & relatives. • Demand transparency on all issues vs try and run “no fiscal impact” item through consent agenda or put at very bottom of agenda, or add “Agenda Supplement” at last minute. (County BCC does all that) • Demand hiring based on MERIT and usingpublic ads and interview processes, not hire cronies (County Clerk) • Official is HONEST about purpose for revenue and tax hikes. Doesn’t say “Libraries need funding” when 60% of revenues go to other questionable uses.

19. Fiscal Conservative Practices - 8 • Official rejects corporate welfare without very specific plan to justify or recapture expenses. • Example is $18-million CSX railroad subsidy for rail lines from Apopka to Eustis. Basically gives $16.5-million to private rail line firm without clear offsetting revenue recapture method. • Reject Builder welfare proposals to reduce impact fees without sound analysis or offsetting revenue sources. • Official should not waive tax revenues without clear, factual justification & acknowledgement of lost revenue and plan to offset it. Example: Impact fees.

20. Conclusion & Questions • LIKE the “FiscalRangers” Facebook page • View FiscalRangers.com blog. • Send email to Vjtraveler@Comcast.net to get on email list. • Watch (online video) or attend local government public meetings and give public input and send letters. • Demand better background on fiscal expertise and experience before considering any election candidate. DON’T accept political platitudes like “I will reduce waste, fraud & abuse in government” without asking for existing examples and proposed solutions.

21. Vance Jochim www.FiscalRangers.com Facebook: “FiscalRangers”