Towering costs
One consequence of the Great Recession has been a lowering in construction costs. Tell that to New Yorkers. This week, auditors looking into the new World Trade Center said completing the tower will cost $14.8 billion — a stunning 35 percent more than the last estimate of $11 billion in 2008. Auditors said the Port Authority, which owns the site, has “insufficient cost controls and a lack of transparent and effective oversight” of the project. No kidding. Contrast that with construction of the Devon tower in Oklahoma City. The estimated cost was $750 million when the building design was unveiled in 2008. Now? “We have not revised that figure,” spokesman Chip Minty said.
Above: World Trade Center, Jan. 31, 2012. (AP Photo)
Left: Devon tower, Feb. 1, 2012. Photo by Jim Beckel, The Oklahoman
No more middle man
When managing a tight budget, cutting unnecessary expenses is a good place to start. House Bill 3111, filed by state Rep. Jeff Hickman, R-Fairview, would end the state government’s role in collecting dues for labor unions. Currently, state agencies and school boards use automatic payroll deductions for Oklahoma Public Employees Association membership dues and Oklahoma Education Association contributions. While processing the payroll deductions doesn’t cost the state millions, bank drafts and automatic credit card charges are two alternatives with zero cost to the state. “This modernizes state government and takes advantage of the advances in financial technology that will allow unions to continue to collect dues in an efficient manner without the State of Oklahoma paying to be the middle man,” Hickman said. Taxpayers should appreciate the prospect of anything free, and we hope this effort to join the 21st century finds favor with legislators.
Do as we say…
Graphic by Steve Boaldin
A single adult with one child needs a “living wage” of $16.74 an hour in Oklahoma County, where the state’s Democratic Party organization is based. The party touts itself as “a voice for workers’ rights and respectable wages, at both the state and national levels.” So how much does the party pay its own employees? The lowest wage at party headquarters is $11.63 an hour, which is more than the “living wage” for a single adult but considerably less than the rate for a single adult with one child. Also, in a list of 22 occupations, only three are typically compensated at a lower rate than the party pays. The party seeks to offer “competitively-priced options” for employee insurance. Not only is there a disconnect between what the party pays and what it thinks others should pay, but it seems to like competition in the health insurance field — something that its all-out support for Obamacare doesn’t jibe with.
Not mincing words
The criticism continues to roll in over President Obama’s decision last week scuttling (for now) construction of the Keystone XL pipeline. The 1,700-mile pipeline would move crude oil from Canada to the Gulf of Mexico and would produce thousands of jobs along the way, including here in Oklahoma. In a memo to employees, Bill Klesse, CEO of Valero Energy, shared the statement that the company had issued to media after the decision. The statement called rejection of the plan “absurd” and said the administration’s policies would force companies such as Valero (which has a refinery in Ardmore) to buy more oil from sources outside the United States and Canada. It also said the decision “throws dirt into the face of our closest ally and largest trading partner.” In an aside to his employees, Klesse said the administration’s decision wasn’t about pipelines in potentially sensitive areas of the country. Instead, “This is politics at its worst.” Well said.
Photo by Paul B. Southerland, The Oklahoman
Expensive trash
The story of bankrupt solar company Solyndra keeps getting worse. Solyndra was an administration darling when the company opened — an example of green technology at its best. That attitude was reflected in a $535 million loan the government provided in 2009, despite indications that things weren’t going well. Solyndra eventually went belly up last year. But the waste continues. KCBS television in San Francisco recently filmed workers tossing new glass tubes used in solar panels into trash bins. The station reports that Solyndra paid at least $2 million for the specialized glass. According to court documents, the bankruptcy trustee said the glass was of “inconsequential value” because the cost of storing them was greater than their value. An employee for the company in charge of selling Solyndra’s assets said they did a thorough search for buyers, with no takers. But KCBS says the tubes weren’t included on the list of assets put up for sale at two auctions last year. The owner of a Las Vegas warehouse, who already was reselling Solyndra solar panels, told the station he would have bid on them. Maddening.
AP Photo
Economy doesn’t bail out Dems
Friday’s economic news — 2 percent third-quarter growth — probably isn’t the “Hail Mary” so many Democrats across the country were hoping for heading into the final weekend of Campaign ’10. The figure is slightly better than the second quarter, but well short of what’s needed to favorably impact unemployment. “It’s the expected GDP number, which is mostly bad news for the economy,” economist Josh Bivens told The New York Times. “The growth rate is just nowhere near enough to put downward pressure on unemployment.” Consumer demand was relatively weak in the third quarter, experts said, and whatever good was produced by the federal stimulus bill is fading, The Times reports, with city and state governments cutting jobs. Again, not the evidence Democrats wanted as Americans prepare to render judgment on the majority party’s stewardship of the economy the past two years.
9.6 percent
Back in June, President Obama kicked off Democrats’ “recovery summer” with a crew of hard-hat workers in Ohio. With Friday’s announcement that unemployment edged up to 9.6 percent in August as the economy shed 54,000 more non-farm jobs, “recovery summer” might be the worst slogan since “Mission Accomplished.” Obama and his allies will continue claiming their stimulus package has things moving in the right direction, but the jobs figures say otherwise. Officials said although the private sector added 67,000 jobs last month, it was more than offset by 121,000 lost jobs on the government side. The White House and top congressional Democrats no doubt will see sunshine in the private-sector gains, but officials said the government losses were more than just Census jobs ending. State and local governments are trimming payrolls — and a lost job is a lost job. Overall, the U.S. economy has lost jobs three straight months now — and the November mid-term elections are less than two months away.
Sluggish economy
Though the White House no doubt will trumpet an improvement in the unemployment rate in June — down to 9.5 percent from May’s 9.7 percent stat — the monthly jobs report is a worrying figure for President Obama and Democrats four months out from the mid-term congressional elections. The Labor Department reports an overall decline of 125,000 jobs in June, reflecting the loss of 225,000 federal census workers who’ve finished their work. Analysts knew the census positions would be lost but hoped the private sector would make up for it. As for the jobless rate, the improved figure is due to 652,000 people who’ve left the labor market. Experts say the statistics reflect a labor market that remains sluggish as employers remain reluctant to add jobs. Again, not the kind of economic news Obama and his allies are looking for.
Stock answers
Globalization refers to the interconnectivity of the world through various means including trade and communications. And oil spills. The Gulf of Mexico gusher isn’t just an American concern. While the British no doubt care about environmental damage to the U.S. Gulf Coast, they’re really exercised about the plunging value of British Petroleum stock, currently at a 13-year low. The London Evening Standard reports the Brits think President Obama is partly to blame for billions of dollars in lost stock value. The newspaper says a number of leading Conservative Party members wish Obama would just knock if off already with criticism of BP. One Tory called Obama’s conduct “despicable,” and London Mayor Boris Johnson demanded an end to “anti-British rhetoric, buck-passing and name-calling.” They can save their breath. So far, BP hasn’t generating much sympathy in the colonies and besides — no matter what the sign on the president’s desk says — the oil spill buck is too large for Obama not to send BP’s way.
Deceptive job growth
Not much to cheer about in the May job report, unless you’re a fan of the Census Bureau. The government says 431,000 jobs were added last month, the best surge since March 2000, and unemployment fell to 9.7 percent. But virtually all of the job creation came from the hiring of more than 400,000 temporary workers to help with the census. Those jobs will disappear later this year after the counting is done. Private-sector growth was far below the 218,000 jobs added in April, and experts said the lower unemployment rate was less about an expanding labor force than about people giving up looking for work. Not great news for President Obama, who nonetheless said the job picture is brightening but warned “there will be ups and downs.”
