Better Resume = Lower Unemployment

Once upon a time, I was required to hire additional staff. The (incredibility) poor quality of the resumes we received, prompted me to write this "Letter to the Editor" of the newspapers wherein we had placed our Help Wanted Classified advertisement.

I was recently asked to help review job applications – sadly, many of my previous comments and concerns are still relevant. Accordingly, I am reissuing my Letter, in the hope that current job seekers will be assisted in their quest for suitable employment.

LETTER TO THE EDITOR (2010 Update)

DATED: August 1985

FROM: A Potential Employer

TO: All recently graduated High School and College Students, and all others now seeking full time employment.

REF.: Your Resume’

My company was interested in hiring several employees, to fill newly created positions. Accordingly, we placed HELP WANTED NOTICES in several local newspapers. I am very disappointed with the quality of the resume's which we received, and I want to take this opportunity to point out to potential applicants, the common deficiencies, so that all of you may take the appropriate corrective action(s).

1) PLEASE DON'T WASTE MY TIME! Unlike you, I have: a job; a business to run; employees to supervise; suppliers and customers to pacify; and 1001 other tasks which require my immediate and ongoing attention. Reading your Resume' and cover letter (see #3 below) should not become an effort on my part. IF I CAN NOT MATCH YOUR SKILLS TO MY NEEDS, I WILL NOT CONTACT YOU FOR AN INTERVIEW! (Please don't call me) Why do you make it so difficult for me to evaluate your work history? If you are going to make to all of the effort to draft a resume'; PLEASE TAKE THE TIME TO ACTUALLY SAY SOMETHING USEFUL ABOUT YOURSELF. Evaluate your final product by asking yourself this simple question:

"Does my resume' & cover letter make the reader / employer want to call me in for an interview?"
If it does not - Please REFINE YOUR RESUME' UNTIL IT DOES SO!

2) THE ACTUAL CONTENT OF THE RESUME'. It is unfortunate that they don't teach "Effective Resume' Presentation 101" in school. Were this class available, among the "minimum points" to be covered would be:

>> General statement of your goals and objectives; i.e., "I am interested in obtaining a position in: financial management, process workflow, secretarial, legal correspondence, medical technology, etc." – This makes it easier for me (the reader / potential employer) to match you to my job description.

>> A chronological list of work experience, from your current job backwards toward your first work experience - EXPLAIN ALL GAPS! (Unexplained gaps leads me think you were in jail). PLEASE summarize relevant activities older than 10 years - while it's nice to know that you sold a large number of Girl Scout Cookies in 1968, IT'S NOT RELEVANT!

>> BE BRIEF: 2 sentence maximum of what you did on each job. If the experience is relevant to my position, please believe me that I will ask you more about it during the interview (do you now see how your resume' has now attracted my interest...).

>> NO MORE THAN 2 PAGES PER RESUME' (see above). If interested, I'm sure I will ask about your lengthy career (or I'll give you the opportunity to explain it to me).

>> PLEASE TYPE (not printed with crayons) NEATLY, PROOF & SPELL CHECK YOUR WORK!!! A messy & careless resume' is surely the sign of a lazy person – someone who will not be working for me - EVER.

>> FINAL SHOT: DON'T EVER LIE ON YOUR RESUME'. You should take every opportunity to present yourself in the best possible light. However, you must assume that I will check your references and verify past employment. I will not hire anyone who is not TRUSTWORTHY! The flip side is also important. If you do not yet have the skills that I currently require, BUT ARE WORKING TO OBTAIN THEM, include this information. If none of the other applicants are acceptable / employable; I may reconsider your resume' (SEE - you won points for being straightforward, and not wasting my time in the first place).

3) COVER LETTER. Your resume' is a listing, which takes time to read; this is time I just don't have. A cover letter is the easiest way for you to point out your strong points so that I can find them easily, and match them to my hiring requirements. An interesting cover letter indicates a Resume' worth reading (see #1). You should indicate a range of the Salary of which you are considering (see #4 below); this is another way to summarize the most relevant candidates ("I am looking for a salary in the range of $50,000" If the job I am offering pays $6.75 / hour, think you have applied for the wrong job?).

4) SALARY HISTORY & REFERENCES. Please put this information on a separate page. If I want it, I'll ask for it during the interview process.

5) SHOW & TELL. Many jobs (i.e., graphic artists) require job candidates to actually provide samples of past work product during the interview (DO NOT SEND THEM WITH THE RESUME'). You should indicate that "Samples of Work are available", but be sure that these "trade samples" are appropriate and relevant to the job under consideration.


WORDS TO LIVE BY: Finding a job is like digging an oil well: it is essentially a game of percentages. By focusing your search on the most likely prospects, and helping targeted employers understand you as a potential employee; you can make job hunting both and educational and profitable experience.


FINAL NOTE: Keep your Resume' Current! I recommend that you rewrite it once per year (in the quiet period between Christmas and New Years?). I also recommend that you have a copy of your resume', when you travel, as well as when you attend: seminars, meetings, public events, etc. - you never know when you will stumble upon a potential employer. Consider the impact, if someone you meet is impressed enough to say to you, "Here's my card (note that they are asking you), Why don't you send me your resume'?"; to which you respond by providing them with a copy. WOW!

Best of Luck and Good Hunting to you all.

New Jersey Autobahn

The Turnpike Bonds can fix Pension Under Funding (or Maybe there is a better way to “Monetize the NJ Turnpike Authority”)

1 - A Fairytale Story of Financial Stupidity.

Once upon a time, in a fairytale land which was bounded by a great river and even greater ocean, their lived a group of happy people. The people were happy because they received more benefits from their government, than they were obliged to pay in taxes. Whenever the responsible politicians of this happy land tried to reduce the level of government service or increase the taxes associated thereof, the happy people voted the responsible politicians out of office. So the very smart politicians (who remained in office) continued to keep the taxes low, the level of State provided benefits high, and pushed any “fiscal responsibility” into the future. And the people remained very happy.

Then one day when the government workers, who have been providing the people with all of their benefits and service, decided to retire and discovered – to their collective horror – that although a pension benefit had been promised to each of them, no money had been contributed to fund the Pension Obligation of the Happy Land. The retiring fairytale land workers then sued the Government, and the Court found that because the promise of a pension was a “contract right”, the Government would be REQUIRED TO PAY all of the promised pensions, to all of the retiring workers. And so the workers were very happy, too.

However, in order to pay all of these benefits, taxes were increased many-fold. The people of the fairytale land were no longer happy, because they were now required to pay higher taxes in order to pay for the worker’s retirement benefits. Many of the people soon left the fairytale land so that they didn’t have to pay the new higher taxes; this meant that the taxes on the people who remained became much higher. AN NO ONE LIVED HAPPILY EVER AFTER. THE END

2 - An Alternative Ending to the Story.

Governor Chris Christie could, upon taking office, immediately declare a FISCAL EMERGENCY and accordingly:

1. Cut government services
2. Evaluate Governmental Operations in terms of improving their efficiency and effectiveness
3. Increase tax rates and / or the tax base and / or Fees in order to generate additional revenues.
4. Or any combination of these three

In my view, monetizing the potential value of NJ Turnpike Authority (hereafter the “NJTA”) would clearly fall under the topic of “improving their efficiency and effectiveness” as well as generating additional revenues. Governor Corzine may be a nice guy, but he was never an effective “communicator” with respect to his plan to restore “fiscal responsibly” to the operations of the State of New Jersey. I feel that since the NJ Turnpike Authority holds a valuable asset, it SHOULD BE monetized for the greater good of all of the citizens of New Jersey. The problem with the Corzine Initiative was: (a) the proposed plan wasn’t very well “focused” and seemed to allow the State to continue with its irresponsible fiscal polities, and (b) the average voter didn’t see any benefit to the proposal (i.e., compare and contrast “my life in New Jersey” now, with the Plan and without the Plan).

A FOCUSED PROPOSAL:

Issue Participatory Revenue Bonds from the NJTA to the New Jersey State Pension Trust Fund (hereafter NJSPTF) in order to provide short term “bridge” solution, which would allow the State Government to readjust its priorities and install a longer term solution. Sound crazy, right? Read on and learn more.

A SHORT HISTORICAL PERSPECTIVE:

The NJ Turnpike has raised tolls ONLY 6 times in 57 years or an average of once every 9.5 years! DO YOU KNOW of any product or service that has raised its rates so infrequently? In 1951, the Wholesale Price Index was 30.4; by 2007 it was 172.6 or an increase of 467% or about 8% / year.

Based of these “back of the envelope” calculations – Do you think the Turnpike is a Bargain or a Subsidy to its drivers? Do you think that the only reason that the NJTA doesn’t seem to have needed to raise tolls more frequently (to keep up with the cost of inflation, additional maintenance and repairs) is the simple fact than more than 50% of the Turnpike traffic is interstate, i.e., non New Jersey drivers help to defray the costs of operation? That is to say – if the NJTA had raised tolls in accordance with inflation, they would have generated enough money to pave over the entire State of New Jersey!

THE GAME PLAN:

PART 1 – THE STATE’S RESPONSIBILITY:

Require that the State Legislature, pass comprehensive Pension Reform with respect to : (a) defining eligibility requirement, (b) benefit rates and vesting levels, and (c) annual funding allocations and PAYMENTS which would require a 2/3rds vote of the New Jersey Legislature to amend or suspend. SPECIAL NOTE: State Worker Union Contracts should also include “enforcement” language in any future labor contracts.

IMPORTANT NOTE: We have to “hold their (the State) feet to the fire”, so the following plan would become contingent and effective ONLY after this enabling legislation was enacted.

PART 2 – NJTA / NJSPT RESPONSIBILITY:

A) The New Jersey Turnpike Authority would initiate a toll increase which is designed to reflect the true economic value of the roadways to all drivers (NJ and non-NJ). Based on the anticipated of this additional revenue, the NJTA would then issue a special series of Participatory Revenue Bonds (see * below) to the New Jersey State Pension Trust Fund. This is a requirement so as not to interfere with the guarantee agreements of all of the existing bond issues. Since the Participatory Revenue Bonds are a “restricted issue”, these bonds could be issued in “memorandum form” and as such they which not subject to public trading requirements.

[It this point - most readers would say, “What good are municipal bonds as an investment in a tax-exempt pension entity?” PLEASE READ ON – it gets better, I promise.]

B) The New Jersey State Pension Board (i.e., the Pension Fund Trustees) would then crease a separate asset Trust known as the PARTICIPATORY BOND TRUST, and immediately transfer the Participatory Revenue Bonds into this trust.
[So far so good]

C) The Participatory Bond Trustee would immediately create a Single Member LLC (SMLLC) which would be known as “Participatory Bond Holding LLC”, and immediately transfer the Participatory Revenue Bonds from the trust into this LLC.
[It starts to looks like musical chairs, doesn’t it? Keep reading.]

* For the non-accounting readers: Normally, Bonds pay a fixed rate of interest based on their stated Par Value – example $1,000 Par Value XYZ Bond @ 5% will pay $50.00 / year until it matures (redeemed). A Participatory Bond is a special type of hybrid because the Bondholder gets the fixed rate of interest PLUS an additional interest amount (which is called bonus interest) based on certain events and conditions. A Participatory Bond is the simplest way to “soak up” the additional revenue which will be created by the implementation of a more realistic toll structure, while not negatively impacting the Bond Covenants Agreements (like a Mortgage Agreement) of all of the existing NJTA Bond Issues.

Now you might well say, “Why not just issue these Participatory Bonds directly to the general public, and cut out all of this “musical chairs” nonsense?”
[Please keep reading, because, like Hamlet, I do have “…much method in this madness…”]

PART 3 – INVESTOR GROUP RESPONSIBILITY:

A) One or more Financial Intermediaries will be required to form a Mutual Fund known as “AAA Bond Trust”, which shall be composed of “AAA Rated” taxable corporate bonds.

KEY POINT #1 - The amount of bonds held or placed into this trust shall have stated coupon income levels equal to the tax equivalent level (see below) of the income expected to be generated from the Participatory Bond Trust.

KEY POINT #2 - A provision of the Mutual Fund Agreement shall require that any security which is identified for a “downgrade” by its rating agency shall be immediately removed from the Trust and a suitable replacement Bond inserted in its place with a like a similar income stream (i.e., “auto re-swap and replace”); thus this Fund shall always contain only high grade securities.

B) The Mutual Fund Trustee would immediately create its own a Single Member LLC (SMLLC) which would be known as “AAA Bond Holding LLC”, and immediately transfer all of the Bonds from the trust into this LLC.

PART 4 – ... and now {Drum roll please} …. The “SWAP”

The Participatory Bonds Trustee and The Mutual Fund Trustee would then enter into a “swap agreement” (under IRS Reg. §1.446-3 etal - and additional Court citations) for a period of no more than 20 years whereby the Participatory Bonds Trustee would become the assigned owner of the AAA Bond Holding LLC and the Mutual Fund would become the assigned owner of the Participatory Bond Holding LLC.

BEFORE:
Participatory Bonds Trustee ==> Participatory Bond Holding LLC
Mutual Fund ==> AAA Bond Holding LLC

AFTER:
Participatory Bonds Trustee ==> AAA Bond Holding LLC
Mutual Fund ==> Participatory Bond Holding LLC

SUMMARY RESULTS:

1 – The NJTA Exempt Interest is redirected into the Mutual Fund Trust, while the actual increased cash income from the Mutual Fund AAA Bond Trust is applied to the New Jersey State Pension Trust Fund.

2 - The additional pension investment income will be invested and reinvested within the Pension Trust Fund for the benefit of the pension beneficiaries.

3 - Because the AAA Bond Holding LLC is not a “publicly traded” entity, the Participatory Bonds Trustee can legally value their swapped LLC asset based on its projected income stream (Income divided by Fair Market Yield of equivalent assets – see below). Naturally this valuation would be amortized over the available life of the underlying Swap Agreement, and become $0.00 in the final year of the Swap Agreement.

4 – The amortized valuation would the offset by the additional contributions which were part of the legislative agreement (see Part 1 above)

5 – When the Participatory Revenue Bonds mature, the proceeds are returned to the LLC, which is then returned to its original owner, and then liquidated into its trust owner. Each Trust is then dissolved and the net proceeds returned to the underlying Pension Trust and the Mutual Fund owners, respectfully.

6 – This temporarily increases the net asset value of the Pension Fund (for long term value for all pension beneficiaries) and additional income (for the payment of benefits for current retirees). It defers any immediate tax increase to pay unfunded pension liability, and gives the State time to standardize its pension obligates and enter into a payment plan for the unfunded liability.

FOOTNOTES:

1) Tax Equivalent Level Computation; effective income yield is based on an after tax rate of income. Consider this simplified example.

Description	AAA Bond Holding LLC	$	Participatory Bond Holding LLC	$
Stated %	8.30%	$83.00	4.50%	$45.00
Effective Fed + NJ (assumed)combined tax rate =46%		(38.00)	exempt income is not taxable	0.00
Net After Tax % (which are equal)		$45.00		$45.00
PAR Value at Income**		$1,844.44		$1,000.00

** Taxable Income $83.00 / 4.5% Tax Exempt Rate = $1,844.44

2) IRS Reg. §1.446-3 actually REQUIRES that the UNDERLYING INCOME PRODUCING ASSET MUST BE “SWAPPED” (or assigned) in order for a “bona fide “ assignment of income to be recognized for tax purposes – this is fancy tax parlance which means that you can’t give away the milk and keep the cow. This requirement is easily fulfilled by placing the assets (Participatory Bonds and AAA Rated Bonds) into the separate LLC entities.

THE FINAL SHOT

The AUTOBAHN Benefit:

Since Governor Corzine’s Turnpike Monetization Plan didn’t provide any direct benefit to the many NJ commuters, who use the Turnpike and Parkway (other than the elimination of any tax increases which would otherwise be required), I would propose an additional benefit to all NJ Turnpike and Parkway Drivers (as a way of softening the effects of the above proposed Toll Increases):

(1) Painting the inside lanes of the Turnpike and Parkway with orange “tiger” strips – orange is a color which is very reflective after sunset and in bad weather, and

(2) Allow unlimited traffic speed in “The Orange Autobahn Lane”. This is an reference to the attribute which is similar to the famous German Autobahn Roadway (a driving experience of which I was once personally privileged to enjoy, It's Better Than NASCAR – HOO-RAH!).

While all drivers will (obviously) be paying more for the use of the use of these roadways, they will be allowed to travel faster (if they so wish) by moving into the Autobahn Lane. It is strange that accident statistics show that the Autobahn is no more dangerous than other high speed and heavy trafficked roadway. This unusual paradox may result from each driver’s need for constant vigilance in such a high speed environment, and may actually force drivers into performing better.

COMMENTS? Happy Motoring ... und Auf Wiedersehen

Be careful for what you wish – an open letter you Governor Chris Christie

Once again the winds of change have blown favorably across the vast expanse which is commonly known as The State of New Jersey. A new leader has emerged from our democratic electoral process, who promises: hope, wisdom, and (most importantly of all) CHANGE. Good change, bad Change, or simple “Change of the sake of Change” – the question remains open to interpretation now, and for the next four years.

Initial Contact
“Beware the ides of March” – Soothsayer to Julius Caesar
and and few days later …
“The Ideas have come” - Julius Caesar
“AYE - BE NOT YET PAST.” – Soothsayer

“Nothing is more uncertain, than to effect change; for those who will lose from the old order will fight to protect, while those who will benefit do not yet see the advantages of the new order.”, wrote Niccolo Machiavelli. How often in the past 20+ years, have we seen very sincere government officials, attempt to institute reforms, or otherwise, “… change the way government works”; only to see their very best laid plans (of mice and men) buried in the Graveyard of Good Intentions. Knowledgeable readers will doubtless remember:
H. Rose Periot (make government run like a business),
Jimmy Carter (detail genius), and
Bill Clinton & Al Gore (reengineering government).

All human actions are the result of the “equilibrium” between the forces affecting the matter under consideration. For example: we buy (or choose not to buy) groceries in the Supermarket, based upon the price of the object, our perceived quality of the object, and our need for the object vis-a-vie the availability of alternative purchase options. In a similar way, the efficiency and effectiveness of government actions, non-actions and reactions is nothing more than the offsetting sum of the forces affected and engaged in the action (or its outcome) times the amount of concern being exhibited by the force providers.

Governmental actions are not (usually) poorly conceived, they become bureaucratic and dysfunctional as a result or either (a) the lack of clear accountability and responsibility of the action (i.e., who’s in charge?), or (b) the desire to compromise simple for the sake of achieving the illusion of agreement (consider: the United Nations uses four official languages; the European Union uses twelve official languages – overkill?). For example: everyone agrees that schools should be better, because smarter kids will make a better community (world). Now consider the actions of each of the “force groups” within the educational system:
(a) how many parents are not fully engaged in the education of their children?
(b) how many teachers take the easiest route to tenure and a full pension?
(c) how many taxpayers disregard the financial needs the their community school system?
(d) how many student demand a quality education?
Since everyone has disregarded their responsibility, no one else is prepared to take up the “slack”, with the result that the system continues its downward spiral of mediocrity and minimal levels of subsistence.

In the late 1930’s, Bernard Mannes Baruch (famous American financier) observed that, “… one does not ‘cure’ the Stock Market, because the market is the thermometer not the underlying infection. We must act to ‘cure’ the underlying economy, and the stock market will recover of its own accord.” The solution is not to evaluate and revise each process, practice, and procedure, but rather to take Bernie Baruch’s advice and ATTACK THE UNDERLYING CAUSALITY. This can be most easily achieved by stating in simple, clear, and concise language the overall goals, objectives and underlying reasons which will (henceforth) be the acceptable standards of all governmental actions and processes – to wit: A Mission Statement. Having issued the Mission Objectives, it is easy for the government employees, administrators, legislators, and citizen (clients) to evaluate the quality amount and quantity level of their governmental service and to provoke appropriate corrective action(s) whenever necessary. For example: how does this action, advance the Mission of New Jersey in a way which is consistent with our stated goals and objectives? If the answer would be embarrassing when published in a newspaper, maybe a better answer is needed, eh?

ACTION PLAN:

I hereby urge Governor Chris Christie, within 30 days of taking office, to layout his vision of the overall goals and objectives which are the MISSION for the State of New Jersey and underlying reasons for these priorities. I farther urge Governor Christie to print and distribute this “Mission” on reference cards, to every government employees and administrators – so that they can have a daily reminder of their responsibility to the citizens of the state. Finally I urge Governor Christie to reinforce this mission points during his contact to the citizenry, such that they are a part of the solution and will benefit from its implementation.


Consider the observation of Niccolo Machiavelli, who in his treatise “The Prince”, rightly observes,”He who has not first laid his foundations may be able with great ability to lay them afterwards, but they will be laid with trouble to the architect and danger to the building.”

Good Luck Governor - You'll Need It.

Why Al Gore lost the Electoral College Vote.

Al Gore lost the 2000 Presidential Election, because he won California – here’s the math:

NAME--------- (EC) POP2000 -- Pop/EC
CALIFORNIA (54) 33,871,648 -- 627,253

NAME (EC) POP2000
WYOMING (3) 493,782
NORTH DAKOTA (3) 642,200
SOUTH DAKOTA (3) 754,844
MONTANA (3) 902,195
ALASKA (3) 626,932
NEW HAMPSHIRE (4) 1,235,786
IDAHO (4) 1,293,953
NEVADA (4) 1,998,257
NEBRASKA (5) 1,711,263
WEST VIRGINIA (5) 1,808,344
UTAH (5) 2,233,169
ARKANSAS (6) 2,673,400
KANSAS (6) 2,688,418
--------------
Sum of 13 EC Votes = Calif. = 54 Pop=19,062,543 Pop/EC = 353,010

Population Difference EC= 0 Pop=(14,809,105) Pop/EC =(274,243)

Therefore, Al Gore had to convince 50% of Californians (or 16,935,824 voters) to vote for him, while G. W. Bush only had to convince 9,531,272 citizens in the thirteen states listed in this table, to vote for him; a difference of 7,404,552 voters. Imagine how different things would have been if only 1% of that difference - or 74,046 - had voted in Florida.

QUESTION: How did this system, which has worked so well for almost 200 years, become so totally distorted?

ANSWER: Congressional meddling and unintended consequences - consider the following:


HISTORY LESSON:
The Electoral College, as most school children learn, is defined in Article I, section II, Part 3 of the US Constitution, and provides that voters in each State cast their votes for “electors” who are pledged to elect a Presidential Candidate. The Electors subsequently meet and vote to elect the President and Vice President. The number of Electors is equal to the number of Congress (members of Senate plus the House of Representatives) from each State. {Many the goof-ball journalists forget are a few important facts.}. This is the way our Federal System of shared political power was created; to wit:
- the House was to be directly elected by the people (i.e., you and me),
- the Senate was appointed by the States (which was also erroneously changed (in my opinion) by the 17th Amendment), and
- the President was elected as a blend of both methods, culminating in the Electoral College.

KEY POINT: Membership in the House of Representatives was originally to have been proportional to a “head count” of 30,000 (primarily white men while later provisions and constitutional amendments created universal suffrage for all citizens). In order to compute the number of Congressional Districts in each State, a Decennial Census was required. HOWEVER, regardless of the population, each State MUST HAVE at lease one member in the House Currently, only ALASKA, DELAWARE, MONTANA, NORTH DAKOTA, SOUTH DAKOTA, and VERMONT have a single House Representative (who is elected on a statewide basis). Tax Bills must originate in the House, and "No Taxation without Representation".

This means that the number of members in the House of Representatives grew based on an expanding American population from 59 members in 1789, to 435 members by the 1920 census.

Thinking that they were "geniuses", in 1929 the number of House Seats was fixed at 435 members with PL 62-5. The Congress also resorted to using the “method of equal proportion” to allocate the available seats based on the Census data and thus only 385 seat (435 - 50 states) are available for allocation. This produces a distortion (also known as a “statistically standard deviation”) between the number of seats and the population within each State that they represent. Consider the data presented above:

NAME------------- EC ---- POP 2000 --- Pop/EC
CALIFORNIA ------54 --- 33,871,648 --- 627,253
ARKANSAS ---------6 ---- 2,673,400 --- 445,567
You will note a swing in EC representation of +140% (WOW!!!) Therefore it takes more voters in California than it does in Arkansas in order to obtain the same number of electoral votes – thus Gore’s win in California was achieved at the cost of "wasted votes".

KEY POINT: The problem is that the population of the United States has continued to grow: from 1.8 Million in 1789, to 13 Million in 1929, and to 249 Million in 1990. Thus each House seat represents a disproportionate share of the expanding population; and the apparent imbalance between the “popular vote” and the number of Elector College vote is the unintended result.

It is ironic that Alexander Hamilton identified this issue, in his proposition that State Governments be abolished in favor of a true National Government - Hamilton didn't win that fight, but his analysis - while about 200 years too early - seems to be spot on.


SOLUTION:
We must return to the original basis and intent of the US Constitution by making membership in the US House of Representatives DIRECTLY PROPORTIONAL to the population of each States. This can be easily achieved by allowing the population of the smallest populated State (i.e., WYOMING with only 493,782 citizens) to be the Population Divisor used to allocate representation.

Consider (based on 2000 Census Data), when dividend into the Total U.S. Population of 280,849,847 by the “least populated State Divisor” of 493,782 would equal 569 members of the US House of Representatives, or an increase of 134 seats. When you take a moment to consider that over the past 100 years, this is an average of 13 seats per Decennial Census period – does it seem to be unreasonable?

EXAMPLE: If this methodology had been in place during the 2000 Election Cycle, then the results of the previous example would have been:
State ---------------------2000 EC -- Corrected EC -- Incr./Decrease
California ------------------- 54 --------- 71 ----------------- +17
Group of 13 States (above) - 54 --------- 65 ---------------- +11
Net Change +6 for Gore

When this methodology is extended to the entire country, Gore would have won the Electoral College by 9 votes - still a close election, but much more proportional to the popular vote. Funny how the world turns, eh? I wonder if Alex Hamilton is having a good laugh.

SUMMERY:
When suggested informally, the primary objections to this plan have been:
(a) more members of Congress will increase the cost of government, and
(b) the House Chamber is too small to seat the addition of any new members.

To first objection, I would answer that representation is the price of our democracy, and that it is better served by increasing the accountability of our government through proportional representation, rather than concentrating power in the hands of a small, "elitist club".

The second objection is more tangible. History indicates that the US Capital Building was previously enlarged (to its present size) in the middle 1800’s and that construction even continued during the Civil War (as a statement of unity and commitment to the future of the Nation). How can we say that the American Spirit is limited to the size of a building? While enlarging the House Chamber will doubtlessly spoil the overall geometric symmetry of the building, expending the east end of the House Chamber along the south face will preserve the architectural aesthetic of the frontal western facade. Given the gravity of this proposal, I would strongly (also) recommend planning enough space for more than 1,000 House Members which will allow for reasonable growth into the 22nd Century (our next 200 years!!!).

Conclusion: I urge you to amend PL 62-5 to return to a more proportional membership of the US House of Representatives. This issue is VERY IMPORTANT to smaller States (like NEW JERSEY) which are losing population and therefore our proportional influence over Federal Government, lease we become subservient to the larger States, as it was during the Articles of Confederation in the later 1780's.


########

READERS NOTE: I'm away for the Holidays;
I wish for everyone a Joyful, and Healthy 2010 - Bon annee por vous!

Health, Wealth and Happiness (Gesundheit, Wohlstand und Zufriedenheit)
[Sante', Richesse et Bonheur] {Salud, Riqueza y Felicidad}

The Uniform Primary Election Act

After the 2000 Presidential Election had been concluded, I began to consider and try to identify the failings of our Primary Elections; with the intent to improve the responsiveness of the election process to all of our citizens. Among the concerns which were voiced again in that election cycle, were the twin matters that (1) the eventual party nominee emerged far too early in the process to provide for a sufficiently spirited debate of the issues from any challenger, and (2) the High Electoral College (EC) States are bunched too closely together.

Were the United States composed of “national” or a “parliamentary” government, such concerns would be mute. However, because we are a “Federal” government, our electoral systems, policies and practices must address the regional geographical and demographics needs of our nation. Accordingly, the time is now upon us to develop and enact, by all States and Voting Federal Territories which conduct Primary Elections, something with I’ll refer to as: The Uniform Primary Election Act (UPEA) which shall contain the following provisions:

1st - Establish Eight (8) Primary Regions: Based upon the (then most current) 1990 census data, as applied to the number of votes assigned by the Electoral College

A) Establish 8 Voting Regions - The average size of each “voting region” would be approximately 54 Electoral Votes each.

B) Identify 8 of our largest “Key States” (currently: New York, Illinois, Texas, Washington, California, Florida, Ohio, and Pennsylvania) which as a group comprise a total of 205 Electoral Votes or 47% of the total 435 available.

C) Group together: one Key State and summation of other states and territories falling within the same general, geographical region (Related States); such that each region is of the approximate same number of Electoral Votes (See the Example which is contained within Appendix “A”)

D) The Regional Grouping facilitates more effective use of media and staffing resources.

NOTE: it would be possible for a candidate to campaign in ONLY the Key State of each Region, or ONLY in the Related States of each region, depending upon the level of campaign resources.


2nd Geographical Occurrence:
Regional Primaries should be held in order, so as to allow the maximum amount of candidate exposure, while minimizing the administrative effort needed. Naturally the results of the early regional activates will influence the votes in regions who later in the process, however the grouping of the Electoral Votes in blocks will maintain the viability of each region, and thus the voters interest in the process.

It is important to consider that Region 4 contains the widest geographical dispersion and the most number of State Primaries (17), thus it needs to be scheduled later in the process, so that its voters can obtain the benefits of media exposure which is generated in the preceding regions. A proposed schedule is contained within Appendix “B”

By combining and coordinating our nation’s primary election process into a uniform statute, the UPEA will:
- save money, by allowing candidates to focus their limited resources
- save time, by consolidating the election process
- insure that all citizen’s have the ability to influence the election process

comments?

Appendix “A” Description of Regional Primary Regions based upon Electoral College (EC) Election Values (a)

Region Large State (EC); % of Region Other States and Territories Total EC
(b) (c ) (T)
1(d) NY (31) 57% CN, ME, MA, NH*, RI, VT 54
2 IL (20) 34% IO, MI, MN, WS 58
3 TX (30) 54% AK, LA, MS, OK 56
4(e) WA (9) 17% AL, AS, AZ, CO, GU(t), HA, ID,
KS, MT, NB, NM, ND, OR, SD,
UT, WY 53
5(f) CA (52) 96% NV 54
6 FL (23) 40% AL, GA, MS, NC, PR(t), SC, VI(t) 58
7 OH (19) 40% IN, KY, TN, WV 47
8 PA (21) 38% DE, DC(t), MD, NJ, VA 55
---------------------------------------------------------------------------------
TOTAL (205) 47% 435 100%

Footnotes:

a. EC = # of Electoral College distribution following the 1990 Census

b. Each region contains approximately the same number of electoral votes are
the other regions.

c. Each region is dominate by a “large state” who’s Electoral Advantage is wholly or
partially offset by the sum of Electoral votes contained within the other states of
the region (except Region 5 - see “f” below).

d. Region 1 contains the historical New Hampshire “First in the National Primary”.
In order the preserve New Hampshire’s tradition of being the “First in the National
Primary”; this Act should be designed as to permit the NH primary voting to begin
at 07:30 Hr.( ½ hour earlier than all other states in Region #1), and all other states
in this region shall be required to close their election polling booths at 20:30 Hr.
( ½ later than NH); thus preserving this quaint, historical custom

e. Region 4 contains the widest geographical dispersion and the most number of State
Primaries (17), thus it needs to be scheduled later in the process, so that voters in
these States can obtain the benefits of media exposure which is generated in the
preceding regions.

f. Region 5 is dominated by California.

Appendix “B” Election Occurrence of Primary Regional Rotation

Month 1st Tuesday of the Month 3rd Tuesday of the Month EC Count Dispersion
February 1 (*) 6 112 26%
March 7 4 (e) 212 49%
April 8 3 232 74%
May 2 5 (f) 435 100%

HOST COMMUNITY TAX EQUALIZATION

I think that most people accept the idea that State and County Government Services have been created to support the people of the State of New Jersey. We also understand that Not-For-Profit Organizations (NPO) are created in order to conduct socially desirable activities, for the benefit of the People of New Jersey, which are generally beyond the traditional functions of Government.

It is also economically beneficial and administratively prudent to cluster governmental units proximate to one another. Having widely scattered offices would doubtless increase the cost of governmental operations. It would also verge on a physical impossibility to require that governmental operating units be proportionally located within both the State and variously Counties of the State so that their costs would be equally shared by each municipality. Hence they tend to be located within the municipal borders of (what I call) a “Host Community”.

Naturally, governmental service units and NPOs occupied buildings, which if not owned by said organizations, would be considered to be a ‘ratable unit’ subject to real estate taxation by the Municipal Governmental Unit (City, Township, Boro, etc.) within which said building is located. Currently, government and NPOs occupied buildings are exempt from all state and local taxation in order to reduce the overall cost of operations – leaving more funding to support programs and activities.

KEY POINT

The problem rests with the past (and on going) explosive growth of Government and NPO Groups; as they carryout their prescribed functions for the overall betterment of society, at the expense and detriment to the economic well being of their Host Communities. “Clustering” government operating units produces an economic burden to the aforementioned Host Municipal Governmental Unit, by:

(1) Utilizing municipal services (Police, Fire, EMT, Environmental Protection, Municipal Administration Services, Building Code, etc.) without appropriate compensation (through Real Estate Taxation or other occupancy fees). POINT: In fairness, many State and County governments do provide “compensation” to their host communities – however such payments (in cash or kind) are not legally required and are subject to political influence, as well as not always being inadequate for the level of municipal service consumed or ratables lost.

(2) Depriving said “host community” of a commercially viable ‘ratable unit’ were such a unit subject to real estate taxation by the said Host Government (for example: consider the effect of State and County operations on the tax base of Municipal Governments of: Trenton, Mount Holly and Woodbury)

(3) The “free ride” on municipal service also acts like a subsidy to the non-Host Communities; because these communities are spared the added expense of governmental operations, while enjoying all of the resulting benefits of government services.

(4) Without the imposition of any additional marginal costs; State and County Governments (as well as NPOs) are free to grow and propagate without limitation, which creates an economic “crowding out” effect within the Host Community (much the same way a swamp moss kills a tree by smothering its leaves).

SOLUTION?

Given New Jersey’s propensity for “Home Rule”, the number and scope of existing State and County Governmental Operations (as well as those of NPOs) - it seems only reasonable that a Real estate Tax Rate should be applied to these (previously tax exempt) units. The additional tax revenue would easy the burden on the Host Community, while allocating the cost of government and NPO services more fairly among a larger (consumer / client / tax) base.

The problem then becomes a matter of allocation, since the Host Community would receive ALL of the additional revenue and the additional expense would be borne SOLELY by the NPO or Governmental Unit. The matter of allocation fairness could (in my opinion) be solved as follows:

FIRST - The Secretary of the Treasury of the State of New Jersey shall be empowered to develop a Statewide Real Estate SERVICE Rate of Taxation (based upon the stated value of all previously tax exempt property by County) which shall be applied to all: State, Country and NPO charted or doing business within the State. This tax shall be known as the SERVICE TAX RATE (and Service Property), and be freely published and distributed to all Municipal Governments.

SECOND – Service Tax Rate shall be shall be recalculated once every five (5) years, based on the rate of increase in the Cost of Living Index, as verse a periodic reassessment appraisal – which is not practical for special purpose buildings (like a Correctional Center).

THIRD - Each Municipal Unit shall be required to identify each State Government Services Unit, County Government Services Unit, and Not-For-Profit Organizations (hereafter Service Units) and determine a value for each property within its border. Service Property values shall be based upon the most recent contract sales price of the property, as recorded in the deed which resulted from the purchase agreement, or the value of the Bond Issue or Capital Expense Appropriation which was used to fund the property’s original construction. Such valuations shall not be subject to any periodic reassessment, because of the single, unique functionally of the buildings in question, except that any modifications which shall be significant to require building code inspection or zoning variance shall be treated as adjustments to the value of said property. All newly constructed buildings or acquired properties shall be registered with the appropriate taxing unit having jurisdiction or such parcel, on an on going basis.

FOURTH - A property valuation calculation shall be required to be prepared by each Municipal Unit and distributed to each Service Property within 90 days of the enactment of the authorizing legislation. In order to mitigate the impact of this new process, the initial assessment shall be phased in proportionally at the rate of 20% / year over a period of five (5) years from the date of enactment.

FIFTH - County Governments shall be empowered to grant a “Request for Reimbursement of Service Tax Assessment” from any NPO within their border which has been assessed, and thus: (a) reduce the cost of operation of the Service Unit and (b) spread this cost (transfer) across the tax population (service community) of the entire county through the County Tax Assessment.


POSTSCRIPT: Naturally some organizations would continue to be “Exempt”, such as Federal Government operations (U.S. Constitutional prohibitions), Churches (under the doctrine of Separation of Church and State) and Public Schools (because they are already part of the Municipal School Board*).

Comments?

* See my previous BLOG Posting relating to School Funding alternative to Real Estate Taxation.

Alternative Public School Funding

It’s About the Kids.
=============


The New Jersey State Constitution Article VIII; Section IV REQUIRES public funding for the Instructional, Administrative and Capital Maintenance of all Public Education (ages 5-18); but does not specify How Public Money is to be raised or used for this purpose. The existing system of Local Property Taxes levied specifically to fund Home Rule for free, public education from Kindergarten thru 12th Grade is hopelessly broken because of the demographics of the population density and property values are not homogeneous throughout the State (hence the identification of the “Abbott Districts” are those communities with Real Estate Tax "ratable properties" which are insufficient to fund their own schools). Therefore - in my opinion (for what its worth) - a radical new approach is required, rather than just tinkering with a broken system, to wit:


The establishment of an EDUCATIONAL TRUST FUND


which will addresses all of these issue (and more) by:

(1) Providing a ongoing and stable source of Primary Educational Funding

(2) Equally funding all students on a per grade level (eliminating the need for Abbott Districts, and all other “pet project” funding initiatives)

(3) Provides safeguards for Capital Funding and Facilities Maintenance

(4) Eliminates the burdensome Real Estate Tax AND

(5) Retains Home Rule over the administration of local education; and allows for additional local funding contributions with voter approval while also facilitating Consolidation where appropriate.


Does this sound to good to be true? Read On......



A short History of Real Estate Taxation.

Land (Real Estate) has traditionally been the most prized asset throughout recorded history, and was once all owned by a KING. In order to control large territories, the King allocated his land among his Vassals (See Feudalism) who paid him a "rental". When lands passed into the hands of non vassals (common folks like you and me), the King lost the ability to obtain LAND DUES, and so a TAX on the privileged of owning the land was assessed, based upon the value of the land (as verse its “economic use”) to wit, our modern day real estate tax laws.


Historic Advantages of Real Estate Taxation are:

(a) the Historical Precedent (this is the way “we” have always done it) and was based upon The “Ohio Model” (promoted by President Thomas Jefferson) used as a basis for funding Public Education,

(b) Principal Asset of large dollar amount, with low volume of transactions makes it easy to administer (and the best part is: owners can afford to pay taxes, if they can afford to buy land), and

(c) Land Records are Easy to Trace because they are activated by registration of deed - Land can’t be hidden or concealed (as with cash, personal property or Swiss bank accounts), and the valuation is reasonably assured (i.e., based on Fair Market Value at time of last sale, plus a periodic “reassessment”).


While Real Estate Taxation offers the benefits (as discussed above) these are a few problems (many of which reading will recognize here in New Jersey):

(a) Land is no longer the Principal Asset for generating income, because modern commerce tends to be a function of the use of “financial capital” and “intellectual property” and mobility of tenants facilitates economic relocation,

(b) the lack of mobility restricts use and the resulting loss of landlords and tenants (and their associated economic activities) reduces value of land (i.e. Urban Centers verse Suburban Districts – Do the Abbott Districts contain any high Real Estate Values? Not usually), and

(c) geographical restriction creates disparity in valuations and substantially identical land parcels can receive different values depending upon their locations.


THE NEW MODEL - Prerequisites Assumptions:

#1 – We must acceptance of the BASIC PREMISE that Taxation upon Real Estate Valuation for proposes of Funding Public Schools within the State of New Jersey is no longer a viable methodology - it is a broken model, to be replaced not "tinkered with" (chewing gum and duct tape) in terms of exemptions, allowance, and rebates.

#2 - While studies will be required to determine reasonable calculations, the Instructional, Administrative and Capital Maintenance (a) per Student Cost and (b) per Grade Level can be reasonably be determined, and projected.

#3 - We must also use of diverse sources of taxation will provide a more stable source of funding, rather than a single funding source (i.e. Real Estate Taxation); in order to smooth out economic fluctuations.

#4 - Because some school districts are no longer viable stand-along entities; consolidation of school districts and or the ability of neighboring districts to share common services should be encouraged and facilitated, rather than impeded.


ACTION PLAN:

Abolish and Repeal all Real Estate Taxation Laws and or Regulations which exist for proposes of Funding Public Schools within the State of New Jersey and concurrently establish an EDUCATIONAL TRUST FUND (hereafter the “Trust”) under Article VIII; Section IV for the Instructional, Administrative and Capital Maintenance of all Public Education (ages 5-18) [and mandated preschool activities as have been determined by the NJ Supreme Court] within the State of New Jersey. With respect to the Trust:

1) The Governor shall nominate (with the advice and consent of the State Senate – see Senate Rules) Five (5) Independent Trustees who shall each serve for staggered 5 year terms, such that one Trustee shall be replaced or re-nominated every year.

2) The State Legislature shall provide that some portion of funds from State Revenues from: Personal Income Taxes*, Corporate Business Taxes*, Sales and Use Tax* be apportions and transferred to the Trustees (THEREFORE, ALL FUNDS PREVIOUSLY ALLOCATED TO THE “REAL ESTATE REBATE PROGRAM” ARE HEREBY RELEASED - see "seed capital" below). * this may require tax increases, which will be tolerable if the overall level of taxation remains less than or equal to the current aggregate dollar amounts.

3) The Trustees shall annually determine, and project the Instructional, Administrative and Capital Maintenance on a “per Student Cost per Grade Level” for each Grade Level from Kindergarten thru 12th Grade (High School), as mandated by law. {Shouldn't students in Camden, Cranberry or Cape May receive the same level of instructional funding? Wasn't this the point of the Abbott Decision?}

4) Each School District, as is currently required (and as certified by the State Secretary of Education), shall report their student enrollment to the Department of Education and to the Trustees on a periodic basis.

5) The Trustees shall periodically (monthly or bi-weekly) pay over to each School District, funds for Instructional & Administrative per student per grade level; to each district.

6) “Seed Capital” (to be 20% of the projected five (5) year average Budget of the Trust) shall be appropriated by the State Legislature as the Corpus of the Trust.

7) The Trustees shall annually project the funding / disbursement requirements of the Trust for the succeeding School Year and shall formally advise the State Secretary of Education of any additional funding which they deem shall be required; any projected deficit funding requirements such funding will be appropriated by the State Legislature.

8) Capital funds shall be accumulated (based on student population data previously reported) and held for each School District; such funds shall be dispersed in accordance with the previously approved multi-year capital funding plan. {How often - in the past decade - were facilities maintenance projects "postponed" in order to fund current operations?} TO BE DETERMINED - the ability of the Trustees to issue Bonds to build current schools based upon expected Capital Funding Allocations.

9) School Districts which, upon the appropriate submission of their Student Census Data, and the resulting Funding which shall be provided under this Plan, wish to appropriate additional funding may make such requests directly to the Municipal Authority within which the School District resided; however the Municipal Authority shall not be required to provide any additional funding.

10) School Districts which conclude that they will not be able to meet the educational mandates of the State Department of Education within the funding provided under this Plan, may elect to combine their educational activities (Schools or Specific Grade Levels) with those of activities of Neighboring School Districts (see Regionalization).

11) Severability: If any portion of this Agreement shall be held to be invalid or unenforceable for any reason, then the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited by the Court Order.

12) This TRUST AGREEMENT shall be subject to amendment or revocation in the 4th year following its inception, and every 4th year thereafter, by Act of the New Jersey State Legislature which shall be made by an affirmative 2/3rd vote of the Senate and the Assembly and Signed by the Governor; unless formally instructed to be amended or revoked at any time by an order of the Supreme Court of the State of New Jersey.

13) This Trust shall terminate, cease to operate, shall pay over all remaining funds and transfer such records and documents as may exist to the care, custody and control of the Secretary of Education of the State of New Jersey, or as may be designated by the New Jersey State Legislature, on the 1st business day 100 years from the date that the Corpus of the Trust shall have been transfer and accepted by the Trustees, unless otherwise amended (See - NJ Law Against Perpetuities).


New Jersey was a founding partner in the American Experiment, so now is the time for all New Jersey Citizens to work together to bring New Jersey Education into the 21st Century – It’s About The Kids!