Friday, January 7, 2011

The Texas Omen

NYTimes Op-Ed
By PAUL KRUGMAN
Published: January 6, 2011


These are tough times for state governments. Huge deficits loom almost everywhere, from California to New York, from New Jersey to Texas.

Wait — Texas? Wasn’t Texas supposed to be thriving even as the rest of America suffered? Didn’t its governor declare, during his re-election campaign, that “we have billions in surplus”? Yes, it was, and yes, he did. But reality has now intruded, in the form of a deficit expected to run as high as $25 billion over the next two years.

And that reality has implications for the nation as a whole. For Texas is where the modern conservative theory of budgeting — the belief that you should never raise taxes under any circumstances, that you can always balance the budget by cutting wasteful spending — has been implemented most completely. If the theory can’t make it there, it can’t make it anywhere.

How bad is the Texas deficit?
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Thursday, January 6, 2011

Texas Welcomes Nuclear Waste Dump Over The Ogallala Aquifer



The Ogallala Aquifer holds as much water as Lake
Huron, but spreads over an area seven times the
area. The Ogallala aquifer, one of the most vital
water sources for American agriculture, is the
single water source for residential and agricultural
communities across eight Midwestern states.
The Texas Low-Level Radioactive Waste Disposal Compact Commission (TLLRWDCC), which manages the state's radioactive-waste dump, voted 5-2 on Tuesday to approve rules governing the process for accepting the out-of-state material.

The new rules pave the way for another 35 states states to export low-level radioactive waste to a remote 1,340-acre Andrews County landfill in West Texas along the Texas-New Mexico border. The landfill is owned by Dallas-based Waste Control Specialists, LLC.

Under the new rules the site will permanently store low-level radioactive waste—contaminated materials and equipment from nuclear plants, research laboratories and hospitals. The material includes everything from parts from dismantled nuclear-energy plants to booties worn by scientists working in labs where radioactive materials are present.

In 2007, Texas Commission on Environmental Quality (TCEQ) staff recommended denying the radioactive waste license, saying that "groundwater is likely to intrude into the proposed disposal units and contact the waste from either or both of two water tables near the proposed facility." Radioactive contamination of water could result.

The West Texas dump, which will be the fourth such storage site in the US, is mired in controversy, in part because the dump, set to open by year's end, was conceived and built to take waste from only two states—Texas and Vermont, reports the Wall Street Journal.

Texas Commissioner Bob Wilson has opposed the radioactive waste dumping plans and the rules for some time. He voted against the rules on Tuesday, but largely because he fears the commission is unprepared to deal with the enormity of the task once the 1,340-acre site begins accepting waste from other states. The commission, he said, is largely unfunded, getting $25,000 a year from Vermont and money from Texas only to cover meeting and travel costs. In addition, he fears expanding the importation of waste will interfere with the site's capacity. He also questions whether it will be as profitable as is being predicted. "I thought it was premature," Wilson said.

Trevor Lovell, a spokesman for Public Citizen, one of the most outspoken opponents of the plan, said his group will meet Wednesday to decide the next step, but he said a lawsuit was possible. "The commission that is moving forward on this has no staff, has no bylaws, and yet they are attempting to make very substantial changes and rules that would allow in radioactive waste from the entire country," Lovell said.

Lovell also noted that the landfill is over the Ogallala aquifer that provides water to one-quarter of the country's irrigated land as well as drinking water to thousands of people. "We don't feel that it's been demonstrated that the landfill is safe," Lovell said. Critics of the new radioactive waste dumping rule say that while Simmons will rake billions of dollars from the waste dump operation over the next 15 years, Texans will get the financial burden of managing dump for 10,000 years.

Opponents charge the TLLRWDCC's rule change process and vote to allow Waste Control Specialists to dump radioactive waste from 36 states at the West Texas landfill demonstrates a conflict of interest between the TLLRWDCC, most of whose members were appointed by Texas Gov. Rick Perry, and the site's owner, Waste Control Specialists LLC, whose main investor, Harold Simmons, is a Governor Perry's 2nd largest individual donor at almost $900,000. The Commission is comprised of 8 members, 6 of whom are Perry appointees. Opponents also charge the commission rigged the 30 day comment period to transpire during the holidays, when most people are too busy to pay much attention to matters of civic engagement, to avoid a repeat of the 2,000 comments from Texans opposed to the rule that the commission received when the rule was first proposed in 2010.

Gov. Perry nuke waste "czar" appointee Michael Ford, chairman of the TLLRWDCC, first proposed a new rule making Texas a 36 state radioactive waste dump site nearly a year ago, but polls showed a majority of Texans didn’t like the proposal. When Bill White made it an election issue, accusing Governor Perry of making the state a radioactive waste dump to benefit his donor, Waste Control Specialists owner Harold Simmons, Ford tabled the proposal.

The day after election day the TLLRWDCC voted 5-2 to repost a rule allowing out-of-state radioactive waste generators – primarily nuclear power plants from 36 states on the coasts and in the Midwest – to dump their waste at the West Texas landfill. The TLLRWDCC officially reposted the 36 state radioactive waste dumping rule the day after Thanksgiving, ensuring the 30 day comment would end the day after Christmas day.

Waste Control Specialists owner Harold Simmons stands to earn billions of dollars from his radioactive waste business at his 1,340-acre Andrews County landfill. After Simmons lost $1.4 billion from 2008 to 2009 he told Forbes he was “planning to make it back with Valhi’s [parent of Waste Control Specialists] radioactive waste disposal license.” Simmons is listed as #176 on the 2010 Forbes list of richest people on the planet, and the 55th richest in the US, with a net worth of $5 billion.

Simmons said in a February 2010 D Magazine interview, “It took us six years to get legislation on this passed in Austin, but now we’ve got it all passed. We first had to change the law to where a private company can own a license [to handle radioactive waste], and we did that. Then we got another law passed that said they can only issue one license. Of course, we were the only ones that applied.”

The D Magazine story observed: “If things go as planned, Simmons’ nuclear waste dump in West Texas will exist on a scale that is hard to imagine. Waste Control Specialists is currently licensed by the state of Texas to accept up to 57 million cubic feet of low-level radioactive waste from federal sources. Waste Control Specialists has the space to expand its facility to more than 20 square miles.”

Gov. Rick Perry's big donors fare well in Texas; Many of his mega-donors have won hefty contracts or appointments.

Tuesday, January 4, 2011

One Huge State Budget Crisis That Everyone Refuses To Talk About

You know the conservative storyline that "liberal states" like Illinois, New Jersey, New York, and California are supposed to be in huge financial trouble thanks to bloated governments, business-unfriendly regulations, and strong public sector unions.

But there's one state, which is high up on the list of financially troubled states, that neither conservatives nor the "liberally biased press" are talking about. The reason no one is talking about it is that it doesn't fit the conservative storyline.

The state is Texas.

A budget shortfall as high as $25 billion is projected for the $95 billion 2012-2013 state budget as lawmakers head into the 2011 biennial legislative session, according to estimates from economists and the comptroller's office.

Leadership in the Texas Legislature, which has been dominated by conservative Republicans for a decade, is not expected to support any discussion about raising taxes to fill the multi-billion dollar hole. The state's Republican leadership has already ordered state agencies to cut their budgets by 5%-10% several several years running, and those agencies are currently under a new order to cut their budgets one more time. Most state agencies are already operating on a bare bones budget and if much more is cut from their budgets they will not be able to deliver the services they are mandated to deliver.

Gov. Perry and some conservative Texas lawmakers have advocated "opting out" of Medicaid altogether and closing or privatizing state schools to save money. If you think the cost of sending your kids to a state college is high now, think what "privatized" colleges will cost. Or, if mom suffers from Alzheimer's disease and needs to be in an Alzheimer's care home, the kids will have to pay mom's entire $6,000 per month care bill out of their own pocket, because there will be no Medicaid. (Opting out of Medicaid would actually be a one-two punch to Texas' economy -- Medicaid and the Lege: Throw 'Em in the Street)

So why haven't we heard more about Texas, one of the most important economy's in America? Well, it's because it doesn't fit the conservative script; It's a pro-business, lean-spending, low tax, no-union state, so the state government's budget should be in great shape.

But if you want to make comparisons between US states and ailing European countries, think of Texas as being like America's Ireland. Ireland was once praised as a model for economic growth: conservatives loved it for its pro-business, anti-tax, low-spending strategy, and hailed it as the way forward for all of Europe. Then it blew up.

This is the sleeper state budget crisis of 2011, and it conservatives will continue to praise the state's conservative government, right up until the moment before it blows up.

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