transparency

New EPI Report Documents A Legislative Attack on American Wages and Labor Standards, 2011–2012

New EPI Report Documents A Legislative Attack on American Wages and Labor Standards, 2011–2012

A new report from The Economic Policy Institute (EPI), By Gordon Lafer | was published October 31, 2013.  It fully connects all the dots between the players involved in attacking the wages and labor standards of America’s workers – union and non-union.  It identifies the laws written, the authors of those laws and those who profit from such initiatives.

Couched as a response to difficult fiscal conditions, Republican governors and Republican-led state legislatures – many of them in battleground states — have been working hard at eviscerating the rights of public employees. Public workers, however, aren’t the only target of wealthy right-wing funders, major corporate lobbies, and corporate-funded lobbying organizations; non-union and private sector workers are also seen as fair game.

As expected, the American Legislative Exchange Council (ALEC) is playing a prominent role in an anti-labor coalition whose agenda is moving along at breakneck speed.

The assault on workers’ rights have multiplied in the past few years. In addition to Wisconsin Governor Scott Walker’s anti-union assault, “collective bargaining rights were eliminated for Tennessee schoolteachers, Oklahoma municipal employees, graduate student research assistants in Michigan, and farm workers and child care providers in Maine,” according to this Economic Policy Institute report written by Gordon Lafer.

The intro to this report begins:

“Over the past two years, state legislators across the country have launched an unprecedented series of initiatives aimed at lowering labor standards, weakening unions, and eroding workplace protections for both union and non-union workers. This policy agenda undercuts the ability of low- and middle-wage workers, both union and non-union, to earn a decent wage.

“This report provides a broad overview of the attack on wages, labor standards, and workplace protections as it has been advanced in state legislatures across the country. Specifically, the report seeks to illuminate the agenda to undermine wages and labor standards being advanced for non-union Americans in order to understand how this fits with the far better-publicized assaults on the rights of unionized employees. By documenting the similarities in how analogous bills have been advanced in multiple states, the report establishes the extent to which legislation emanates not from state officials responding to local economic conditions, but from an economic and policy agenda fueled by national corporate lobbies that aim to lower wages and labor standards across the country…”

When reading this in-depth and well documented expose, it doesn’t take long  before the American Legislative Exchange Council (ALEC) is brought into the discussion:

“This push to erode labor standards, undercut wages, and undermine unions has been advanced by policymakers pursuing a misguided economic agenda working in tandem with the major corporate lobbies. The report highlights legislation authored or supported by major corporate lobbies such as the Chamber of Commerce, National Federation of Independent Business, and National Association of Manufacturers—and by corporate-funded lobbying organizations such as the American Legislative Exchange Council (ALEC), Americans for Tax Reform, and Americans for Prosperity—in order to draw the clearest possible picture of the legislative and economic policy agenda of the country’s most powerful economic actors. To make the most clear-eyed decisions in charting future policy directions, it is critical to understand how the various parts of these organizations’ agenda fit together, and where they ultimately lead.

“This report begins by examining the recent offensive aimed at public-sector unions in order to point out the tactics commonly employed by corporate lobbies such as ALEC and the Chamber of Commerce; it establishes that their agenda is driven by political strategies rather than fiscal necessities. The paper then examines the details of this agenda with respect to unionized public employees, non-unionized public employees, and unionized private-sector workers. Finally, the bulk of the report details the corporate-backed agenda for non-union, private-sector workers as concerns the minimum wage, wage theft, child labor, overtime, misclassification of employees as independent contractors, sick leave, workplace safety standards, meal breaks, employment discrimination, and unemployment insurance.”

How successful has this cabal been?:

“Michigan and Pennsylvania both created ’emergency financial managers’ authorized to void union contracts. New Jersey and Minnesota’s legislatures both voted to limit public employees’ ability to bargain over health care. Ohio legislators adopted a law — later overturned by citizen referendum — largely imitating Wisconsin’s, prohibiting employees from bargaining over anything but wages, outlawing strikes, and doing away with the practice of binding arbitration. … Indiana, which had already eliminated most collective bargaining rights for state employees in 2006, adopted new legislation that prohibits even voluntary agreements with state employee unions.”

All of the Koch network members including; Chamber of Commerce, Federation of Independent Businesses, the Koch brothers–backed American’s For Prosperity, Americans for Tax Reform, the National Association of Manufacturers and of course ALEC are identified as “major corporate lobbies” (players) supporting these attacks upon workers and wages.  

When researchers look to similar attacks upon public education, advocating charter schools, vouchers and private academies…to the efforts of suppressing voters through voter ID and similar legislation…efforts of establishing state sovereignty to seek taking back federally owned land by states…and election gerrymandering – at the core of each  sits the same actors, funded by the likes of the Koch brothers and using ALEC to write model bills advancing each of these agendas.  

All of this is fueled by the same corporations, lobbyists and foundations.  The “foundations” (Mackinac Center, Heritage Foundation, Heartland Institute, Pacific Research Institute and dozens more) receive Koch funding and are controlled by the cabal.  They dutifully issue position papers in support of these pursuits advanced by a conservative minority.  Corporate owned and controlled media outlets are then used to trumpet these ALEC initiatives to the public and – more importantly – voters as necessary and supported by a majority of “Americans.”

Legislation is how all of these efforts are advanced state-by-state and it is only through ALEC that a coordinated and swiftly moving legislative agenda can be disseminated and accomplished.  Without ALEC the corporations, businesses, owners and their “associations,” “federations” and “foundations” could not succeed.

What one learns from the EPI report is that though much of ALEC’s concentration appears to be “aimed directly at the heart of organized labor (unions), ALL American workers are under steady attack.  The report establishes similarities in how analogous bills have been advanced in multiple states and the extent to which legislation emanates not from state officials responding to local economic conditions, but from an economic and policy agenda fueled by national corporate lobbies that aim to lower wages and labor standards across the country and targets all labor.”

The report also establishes that “Virtually all of the initiatives described in this report — including forced privatization, ‘right to work,’ and abolishing minimum-wage and prevailing-wage laws — reflect model statutes developed by ALEC and promoted through its network. This dimension of ALEC’s work is not aimed at immediately enhancing specific donors’ revenues, but at reshaping the fundamental balance of power between workers and employers.”

Please take the time read the full, enlightening and ultra-important EPI report completely -> HERE <-

 

ALEC v. Clean Energy – ALEC’s Assault On The Future Of Energy

ALEC v. Clean Energy – ALEC’s Assault On The Future Of Energy

A new and especially informative report on ALEC’s influence and interference with America’s energy standards and pursuit of renewable energy sources was just released by ProgressNow.org.

This in-depth analysis and reporting is critical of ALEC and completely connects all dots between oil and energy conglomerates, ALEC and the legislation developed by both to keep the oil industry enriched at the expense of our environment and unnecessary expenditures of tax dollars in subsidies.

Because of ALEC’s support for the XL Keystone Pipeline (issuing a resolution in support and providing “academies” that provides legislators free trips to Canada) and their influence internationally through their International Relations Task Force (IRTF), their activities regarding energy have worldwide implications.

Anyone with concern for America’s future must read and study this report.  By doing so you will become clear on the companies, corporations, organizations and think tanks involved and provides us with how they accomplish deregulation and muddy the waters on renewable energy standards.

Here are the “Report Highlights” taken from the full 36 page study:

Report Highlights

ALEC’s Energy, Environment and Agriculture (EEA) Task Force puts foxes in charge of the henhouse. Buoyed by oil giants, coal conglomerates and electric utilities, the task force is a pantheon to pollution interests. Its agenda is written, funded and supported by fossil fuel interests, and boasts of achievements nationwide. The crony capitalist polices of the EEA Task Force include:

  • In 2013 Renewable Energy Portfolio Standards came under attack across the states. With encouragement from ALEC and various utilities, the attacks came close to rolling back these job-creating policies in various states. While ALEC’s 2013 attack failed, at its annual convention in Chicago, ALEC regrouped and set its sights again on the standards for 2014.
  • ALEC and its oil interest members promulgate a hollow disclosure bill. The bill was an Exxon Mobil model, giving oil corporations exactly what they asked for on hydraulic fracturing regulations. Based off Texas law, ALEC’s model bill has been dispersed and enacted as a law in at least five states, with additional states enacting the language by administrative rule.
  • Like Renewable Portfolio Standards in 2013, ALEC had originally failed to stop Greenhouse Gas Accords, and after regrouping in 2010, with the aid of Tea-Party legislators, ALEC’s agenda killed the accords in the Midwest and West.
  • ALEC’s EEA Task Force seems willing to work on niche issues, if the price is right. ALEC’s supposedly nation-wide report on Uranium mining appears to have been, specifically tailored for Virginia, to provide cover for ALEC legislators attempting to pass legislation to benefit an ALEC member.
  • Continuing its tradition of corporate authored legislation, ALEC’s resolution on the Keystone XL Pipeline is derived directly from the talking points issued by ALEC-Member TransCanada, the company seeking to build the Keystone XL. From Maine to Hawaii, legislators have proposed the resolution, parroting TransCanada’s arguments. TransCanada has used ALEC to promote its interests through unethical and legally suspect “scholarship” programs.

Please take the time to read the full ProgressNow report -> HERE <-

ALEC Seeks New Revenue Streams: MDU Welcoming Corrupt ALEC Organization To Bismarck

ALEC Seeks New Revenue Streams: MDU Welcoming Corrupt ALEC Organization To Bismarck

Of late, the American Legislative Exchange Council (ALEC) has been searching for new revenue streams.  With more than 50 corporations and non-profits abandoning ALEC and their agenda over the past couple of years, ALEC has lost a considerable amount of “dues, fees” and “event sponsorship” financing.

Facing such losses, ALEC now seeks to expand their search for funding to supplement what they now receive from their corporate and non-profit members…and believe it or not, they are now reaching out to deceased conservatives through a new “Legacy Membership” program that allows individuals to remember ALEC in their will…name ALEC as insurance beneficiaries or name ALEC in a “life income plan!”

Another new program is to open membership to former legislators from the U.S. and elsewhere through their “Alumni Membership” program.

Another revenue stream is being sought through fundraisers held state by state, promoted, sponsored and paid for by ALEC corporate companies – and used to further ALEC’s agenda while generating income through “ticket sales”.  In ND, legislators will pay $250.00 to attend the latest ALEC fund raiser sponsored and paid for by Montana-Dakota Utilities (MDU).  MDU is ALEC’s North Dakota private sector chair.

As you will find, ALEC is no stranger to North Dakota – and the illegal tactics they have used to promote legislation beneficial to corporate interests:

From North Decoder.com

The corrupt ALEC organization is coming to North Dakota next week. And your public utility company is paying for it with money you are required to pay to the MDU monopoly if you want electricty. (Unless you’re served by a cooperative or are in the eastern part of the state.) A lot of people don’t know what “ALEC” is, so I’m going to tell you. I’ve written about ALEC a few times before, but I’ll do it again.  ALEC is a corrupt organization that lobbies legislators in North Dakota and other states on behalf of polluters, oil companies (but I repeat myself), private for-profit prisons, big banks, bad insurance companies and big pharma.  If you see a proposed law that will take accountability away for polluters, oil companies, private prisons, big banks, bad insurance companies or negligent pharmaceutical companies, you can bet the legislation is the handiwork of some ALEC minion.

Back during the 2009 North Dakota legislative session, ALEC sent two of its operatives into North Dakota to lobby to protect one specific asbestos company from liability when that company’s product hurt or killed someone.  After I busted them for lobbying illegally (without registering), those two lobbyists promptly filed the proper paperwork with the North Dakota Secretary of State’s office.  (You can read all about that by clicking here.)  Of course, neither the Secretary of State nor the Attorney General nor any State’s Attorney ever prosecuted those lobbyists for illegally lobbying. They are not in the business of enforcing the laws against their corporate masters and owners.

Then, in July of 2010, when its operatives filed its IRS form 990 (non-profit tax return), ALEC lied on its 2009 tax return. Non-profits are required — under federal tax law — to disclose whether they “engage in lobbying activities” on their tax return. When ALEC filled out its 2009 return, they lied to the IRS and said they had not engaged in lobbying activities in 2009, despite the irrefutable fact that two of its operatives registered as lobbyists in North Dakota, and they lobbied here, during the 2009 legislative session.  They checked the box that says “No” in response to the question “Did the organization engage in lobbying activities?”  (See my blog post about this, with a copy of their Form 990, here.)  This was a big enough deal, nationally, so that it raised the attention of a top IRS administrator — Marcus Owens, “who for a decade directed the [IRS] division responsible for approving organizations’ charity status.”  (RollCall.com)  Here’s what RollCall.com wrote about it after one group filed an IRS complaint about it at the time:

The complaint, filed on behalf of Clergy Voice, a group of Christian clergy in Ohio, notes that ALEC denied engaging in lobbying activity in its federal tax filings covering the years 2008 and 2009. At the same time, two of its lawyers were registered to lobby in at least one state, North Dakota. False reporting on these forms has been found to be a criminal offense considered perjury in at least four recent cases, Owens said.

RollCall.com (emphasis added) (go read the whole story)

Let’s be clear about something: You’ve never read, heard or seen anything about any of this in any North Dakota mainstream media outlet. That’s because they are all bought-and-paid-for by ALEC and its owners.

So yesterday’s Bismarck Teabune had a nice little story in it by one of its cub half-journalists, Nick Smith; someone who obviously knows nothing about ALEC, or doesn’t care about publishing the whole story. His fluff piece reads like something from any small town social register. “Mary Lou Hindsworth hosting a ladies tea party next Friday.”  Here’s part of his unhelpful, half-story drivel.

A social event will be held next week in Bismarck for lawmakers to meet and raise money for a legislative organization that pushes for free-market legislation.

MDU Resources will be hosting a beer and wine tasting for lawmakers Wednesday at its corporate campus in Bismarck. The event is to promote and raise money for the American Legislative Exchange Council.

ALEC is a corporate-funded organization that works with conservative legislators as well as businesses and foundations to create models for state legislatures to pass.

The group on its website lists its main legislative principles as free-market enterprise, limited government and federalism. Policies the group has pushed in several states in the past include reducing corporate taxation and regulations, promoting gun rights and minimizing environmental regulations.

Bismarck Teabune

This award-winning, passes-for-journalism-in-North-Dakota mush reminds me of something in the Farewell Column written by past-editor Lee Morris of the Valley City Times Record back in 2011.  Remember that?  Morris snuck his good-bye column into the newspaper by putting a fake title and author at the top, but then wrote an honest piece about how his corporate masters were demanding that the paper produce “more coverage on events such as Chamber of Commerce luncheons and ribbon-cutting ceremonies” (more here) and that he couldn’t continue to pretend he was producing real journalism under those circumstances. Then Morris promptly resigned. Today we get to watch the Bismarck Tribune’s “reporters” write about social events hosted by MDU that pretend to be “fundraisers” for ALEC.

So what’s the truth?  The truth is that ALEC is — and should be — scared to death to come back into North Dakota to do more lobbying, like it always does, because it accidentally admitted it was lobbying in 2009. The truth is ALEC lied on its 2009 tax return.  The truth is they haven’t been prosecuted — to my knowledge — and that’s probably because the IRS and/or the Justice Department is afraid of being accused of engaging in politics. Legislators won’t be paying $250 to attend this fundraiser.  They just won’t. The truth is the corrupt ALEC organization is trying to recover from its “rough spot” in North Dakota. The truth is that we’re not getting the news from our “newspapers.”  And we should all be upset by this.

But we’re not.

We’re too busy listening to knuckleheads on the radio complaining about how the Democrats think even poor people should have access to health care. We’re too busy focusing on hater(s) in Leith. We’re all mad that the federal government’s website isn’t able to enroll in private health insurance the people Republicans don’t want enrolling anyway.

Benghazi!

Maybe we don’t deserve anything better than the nonsense we get from the Bismarck Tribune.  Maybe Nick Smith is serving us the crap sandwich we deserve.

Someone on DailyKos suggests North Dakotans ought to organize a protest.  What are you going to do about it?

(For more on ALEC, read this report from the American Association for Justice. NorthDecoder is cited in several endnotes (e.g. 1, 36, 37, 47). That’s because we sniffed out (some of) ALEC’s corruption in North Dakota and broke the illegal-lobbying story.)

ALEC Posts Legislative Agendas while Hiding Its Very Special Interests

ALEC Posts Legislative Agendas while Hiding Its Very Special Interests

From Center for Media and Democracy, by Nick Surgey

A reminder from VLTP Executive Director to protesters, activists and organized labor…ALEC’s “States and Nation Policy Summit” will be in DC this year in less than a month.  VLTP is hopeful that there will be another anti-ALEC organized demonstration, teach-in and a rally similar to those held in Phoenix, Oklahoma City and Chicago.  Due to the pressures exerted by numerous watchdog groups, legislative activists and researchers, ALEC has scheduled this last 2013 event close to their headquarters in DC – possibly in the hope many will find traveling to the Capital in December difficult.  However, the fact that DC is ALEC’s “Home Turf” we can once again bring protests literally to their doorstep, in the media spotlight that is our Nation’s capital.

bush_alec_rect-460x307Boehner at ALEC

These “Summits” are events attended by key GOP members who speak to the entire membership, encouraging them to “keep up the good work” advancing ALEC’s narrow and oppressive conservative agenda.  This year Senator Ted Cruz is reportedly one such high profile attendee.  Indiana Governor Mike Pence is to speak as well.

 

 

 

Cantor at ALECCheney Jefferson Award at alecPast speakers and influential attendees include, Former President, George W. Bush, former VP, Dick Cheney, House Speaker Boehner, House Majority Leader Eric Cantor, Presidential hopefuls such as Mike Huckabee, Newt Gingrich, Rick Perry and Herman Cain.

Together these high ranking GOP members, elected members of Congress and presidential candidates serve up marching orders for ALEC’s conservative legislative membership for the upcoming year.

This time, PRWatch has once again secured critical ALEC material for us to read and review.  Through such work, ALEC is no longer able to hide in the shadows, scripting legislative pursuits sought by corporate interests and pursued by your elected state representatives and unknown to voters until the legislation sweeps through their statehouses, becoming law.

Below is an excerpt from Nick Surgey’s excellent article about the materials, proposed legislation and activities that will take place in December:

The American Legislative Exchange Council (ALEC) has quietly published some agenda details of its corporate-legislator task forces for its upcoming meeting, while keeping the identities of the corporate lobbyists or special interest groups that drafted any of the bills secret.

ALEC Exposed - A project of CMDThe conference in Washington, DC, in December will include a raft of proposed “model” bills to rollback the clock, including limiting the power of the Environmental Protection Agency, undermining the Affordable Care Act (ACA), and cutting federal funding of the states.

Without fanfare, ALEC has posted slimmed-down versions of the agenda material for its task forces, providing the names of new model bills, and language for some bills in full, as well as the title of presentations at ALEC’s closed-door task force meetings where corporate lobbyists secretly vote as equals with state legislators. The documents provide some insight into some of the items that may be on ALEC’s legislative agenda for when state legislative sessions resume in January 2014. CMD recently filed hundreds of public record requests with state legislators in six states, specifically asking for these materials and ALEC’s emails to lawmakers, a tactic CMD has successfully deployed to obtain materials ALEC has sent to legislators as part of its efforts to get laws changed. This latest release by ALEC is likely a response to this success, but the materials released this past week omit key details compared with past materials obtained by CMD…

…Although ALEC has launched a new charm offensive touting its supposed transparency, as CMD’s General Counsel Brendan Fischer has noted, “transparency laws are not premised on permitting a group or legislator to pick and choose which communications to legislators will or will not be made public.” ALEC has also reportedly claimed recently that only legislators will “sponsor” bills voted on at ALEC task forces; however, that sort of window dressing does not actually mean the bills were not pre-written by corporate lobbyists and special interest groups. It also does not negate the powerful role that unelected private sector representatives play in ALEC task forces as equals to lawmakers elected to represent their own constituents back home…

Read the full Surgey article -> HERE <- which includes links to past articles on this topic and to the actual material distributed by ALEC in preparation for the December States and Nation Summit held at the Grand Hyatt hotel, 1000 H Street, NW Washington, D.C. 20001 

 

Ohio Clean Energy Still in Koch & ALEC Crosshairs

Ohio Clean Energy Still in Koch & ALEC Crosshairs

By Connor Gibson at DESMOGBLOG.COM

Crossposted from Greenpeace’s blog: The Witness.

Ohio is currently fighting this year’s final battle in a nationally-coordinated attack on clean energy standard laws, implemented by the American Legislative Exchange Council (ALEC) and other groups belonging to the secretive corporate front group umbrella known as the State Policy Network (SPN).

ALEC and SPN members like the Heartland Institute and Beacon Hill Institute failed in almost all of their coordinated attempts to roll back renewable portfolio standards (RPS) in over a dozen states–laws that require utilities to use more clean energy over time. After high profile battles in North Carolina and Kansas, and more subtle efforts in states like Missouri andConnecticut, Ohio remains the last state in ALEC’s sites in 2013.

ALEC Playbook Guides the Attack on Ohio Clean Energy

After Ohio Senator Kris Jordan’s attempt to repeal Ohio’s RPS went nowhere, ALEC board member and Ohio State Senator William Seitz is now using ALEC’s new anti-RPS bills to lead another attack on the Ohio law–see Union of Concerned Scientists.

ALEC’s newly-forged Renewable Energy Credit Act allows for RPS targets to be met through out-of-state renewable energy credits (RECs) rather than developing new clean energy projects within Ohio’s borders. RECs have varying definitions of renewable energy depending on the region they originate from, lowering demand for the best, cleanest sources of power and electricity.

Sen. Bill Seitz’s SB 58 takes advantages of existing provisions of Ohio’s RPS law and tweaks other sections to mirror the key aspects of ALEC’s Renewable Energy Credit Act. His RPS sneak-attack is matched by House Bill 302, introduced by ALEC member Rep. Peter Stautberg.

Just five years ago, Senator Seitz voted for Ohio’s RPS law. Now, Seitz calls clean energy incentives “Stalinist.”

Attacks on Ohio’s Clean Energy Economy: Fueled by Dirty Energy Profits

Most of ALEC’s money comes from corporations and rich people like the Koch brothers, with a tiny sliver more from its negligible legislator membership dues ($50/year). This includes oil & gas giants like ExxonMobil ($344,000, 2007-2012) and Big Oil’s top lobbying group, the American Petroleum Institute($88,000, 2008-2010). Exxon and API just two of dozens of dirty energy interests paying to be in the room during ALEC’s exclusive Energy, Environment and Agriculture task force meetings.

Other polluting companies bankrolling ALEC’s environmental rollbacks include Ohio operating utilities like Duke Energy and American Electric Power. AEP currently chairs ALEC’s Energy, Environment and Agriculture task force. Some of these companies (like Duke Energy and the American Petroleum Institute) pay into a slush fund run by ALEC that allows Ohio legislators and their families to fly to ALEC events using undisclosed corporate cash (see ALEC in Ohio, p. 6).

Ohio Senator Kris Jordan used corporate money funneled through ALEC to attend ALEC events with his wife (ALEC in Ohio, p. 7). Withelectric utilities as his top political donors, Sen. Jordan has dutifully introduced ALEC bills to repeal renewable energy incentives (SB 34), along with other ALEC priorities like redirecting public funds for private schools (SB 88, 2011), and blocking Ohio from contracting unionized companies (SB 89, 2011).

Koch-funded Spokes & Junk Data Bolsters the ALEC Attack

The behavior of Senator Bill Seitz indicates he’s more beholden to ALEC and the dirty energy utilities dumping tens of thousands of dollars into his election campaigns* than his constituents. There is support from a majority of Ohioans for utilities to obtain at least 20% of their electricity from clean sources. Ohio veterans spoke up for the RPS for increasing the state’s energy security and lowing wholesale energy costs.

 

Read Connor’s full article -> HERE <-

 

U.S. Senate Holds Hearing on ALEC, Corporate Involvement and Stand Your Ground Laws

U.S. Senate Holds Hearing on ALEC, Corporate Involvement and Stand Your Ground Laws

Today the long awaited Senate hearing on Stand Your Ground laws and the involvement of the “bill mill”; American Legislative Exchange Council (ALEC) in adopting, proposing and disseminating model legislation such as the SYG laws, was held in Washington.  This hearing is remarkable – not just because the Senate is holding discussions about this legislation which is now the law in many states – but because it is the first ever acknowledgement of the existence of ALEC and their legislative activities and influences by any government body.

Whether Congress realized it or not at the core of the “need” for this hearing, are the existence and acts of an organization that until recently has remained hidden from the view of government and citizens alike.  An organization that has had possibly the largest influence upon enactment of state and federal law since the mid 1970’s.  Creating laws that specifically benefit corporations and business interests to the detriment of the public and constituents of lawmakers owned by ALEC through loyal membership in that organization – and a “duty” to advance all legislation proposed by it.

_________________

ALEC’s corporate member representatives did not take part in the hearing and offered no testimony – but certain Senators seemingly “owned” by corporate money spoke on their behalf.  Chief among those speaking favorably for corporate interests and in favor of SYG laws?  GOP Senators Cruz, Graham and Gohmert.  Senator Cruz voiced his opinion that Senator Durbin’s request made of ALEC corporate members or supporters, to respond and state their position in support or opposition of ALEC’s Stand Your Ground model legislation…was nothing more than a witch hunt being used to “chill” the first amendment rights of corporations.  

(How far corporate person-hood has advanced since the Supreme Court’s decision in Citizens United.  Today corporations enjoy the same rights as human citizens…except for the ability to be held accountable, arrested, incarcerated and imprisoned for criminal acts committed behind a convenient corporate veil.)

Cruz voiced sympathy for the family of Trayvon Martin, who was killed by George Zimmerman in the highly publicized Florida case last year, then went on to proclaim that many organizations and others were using that case to advance arguments of “perceived” racial prejudice and for “political gain”.

However, Senator Durbin made clear that of the 140 corporate members contacted and asked if they supported or opposed ALEC’s SYG model legislation, only 1 responded in support of it.

The following excerpts are from the Center for Media and Democracy.  This was published by CMD today and due to the article’s relevance to this important issue should be read in its entirety…

CMD Submits Testimony to U.S. Senate on ALEC and “Stand Your Ground

by Lisa Graves, Executive Director, at the Center for Media and Democracy

Mr. Chairman, and Members of the Committee, my name is Lisa Graves, and I am the Executive Director of the Center for Media and Democracy, the publisher of PRWatch.org, ALECexposed.org, SourceWatch.org, and BanksterUSA.org. The organization I lead is a national investigative watchdog group based in Madison, Wisconsin, that has more than 150,000 supporters.

I previously served as the Chief Counsel for Nominations for the Chairman and then Ranking Member of the Senate Judiciary Committee, Senator Patrick Leahy. I also served as Deputy Assistant Attorney General in the Office of Legal Policy/Policy Development at the U.S. Department of Justice and as the Deputy Chief of the Article III Judges Division of the Administrative Office of the U.S. Courts, in addition to other posts in the non-profit sector on national security issues.

I commend the Committee, and its Chairman, for holding this hearing to examine the deadly consequences of so-called “Stand Your Ground” (SYG) laws that have proliferated in the states since 2005, at the urging of the National Rifle Association (NRA) and the American Legislative Exchange Council (ALEC).

SYG laws were peddled by the NRA and ALEC alongside bills to expand the number of people carrying concealed firearms, creating a volatile combination that puts more and more American children and adults at risk of being shot and killed. This Committee has held countless hearings over the years on both federal and state crime policies that affect the rights of Americans, and it is fitting that the Senate examine SYG and the organizations that have urged that SYG become binding law.

I am especially concerned about the activities of ALEC to push the NRA’s agenda into law because ALEC has routinely filed tax returns with the IRS claiming it engages in no lobbying, zero. Yet, ALEC and its agents have routinely bragged about getting SYG introduced and passed – the very definition of lobbying – while claiming to the IRS and the public that it spends not a single dollar on lobbying. Today, I will describe the evidence that shows that ALEC is no ordinary non-profit and the ways in which it has misled the public about the true nature of its activities.

I will also detail the role of the NRA in ALEC and ALEC’s role in pushing for SYG laws. I will also discuss the effect of the three main parts of that law, and how that law affected the initial treatment of George Zimmerman’s killing of Trayvon Martin; how it affected the trial; and how it may affect a civil suit.

In an accompanying appendix to the statement I am submitting for the record, I also describe the role of corporations, such as Koch Industries, and numerous other grantees of the Koch family fortune in advancing the ALEC corporate agenda, along with other aspects of ALEC’s legacy, such as efforts to make it harder for American citizens to vote, as well as its current legislative agenda…

…ALEC describes itself as the largest voluntary group of state legislators in the country, but it is really a corporate-financed lobby that facilitates getting special interest legislation into the hands of lawmakers from every state in the country. In the words of Bill Moyers, ALEC is “the most influential corporate-funded political force most of America has never heard of” as noted in the “United States of ALEC…”

…ALEC is the epitome of a pay-to-play operation that gives special interests special access, but the way it conducts its operations is very unusual and troubling. That is why ALEC is subject to no fewer than three separate tax fraud complaints to the IRS, with supporting evidence provided by four groups: Common Cause, Clergy Voice, the Voters Legislative Transparency Project, and my organization, CMD…

ALEC Is Subject to Three Complaints Alleging Tax Fraud

  1. ALEC is registered as a 501(c)(3) non-profit organization, which means that corporations can theoretically deduct the thousands of dollars they pay ALEC to get their legislative wish lists in the hands of lawmakers. ALEC has routinely told the IRS that it engages in zero lobbying, even though numerous communications have been obtained through open records requests and other sources that show ALEC asking for legislation to be introduced, urging that specific legislation be adopted, and taking credit when its legislation becomes law. ALEC is no “charity” – it is a lobby that has routinely boasted to its corporate members that each year nearly 1,000 ALEC bills are introduced in state legislatures and nearly 20% become law…
  2. A review of ALEC task forces by CMD revealed that almost all of the for-profit corporations that participate in ALEC task forces are represented by their registered lobbyists or are described by their employers as their “government affairs” staffer within the corporation’s internal lobbying shop. CMD and Common Cause have also obtained documents showing that corporations have secretly and routinely sponsored bills at ALEC Task Force meetings and then voted on those bills with legislators at ALEC meetings. Under ALEC’s published bylaws, its state legislative leaders are tasked with a “duty” to get ALEC bills “introduced,” and they do. Some ALEC corporations then lobby for them without disclosing they pre-voted on them.

ALEC has repeatedly claimed to the IRS that it spends no money on travel for federal or state officials, but CMD has extensively documented that these claims are also contrary to the evidence. DBA Press and CMD obtained a three-year spreadsheet of corporate funding for trips by lawmakers along with the names of every corporation that funded the trips and all of the lawmakers who took them…

 …VLTP’s Bob Sloan has filed an IRS whistleblower complaint against ALEC based primarily on its scholarship program. Clergy Voice also complained about ALEC’s non-disclosed lobbying and how donations bring lawmakers to meet with corporate lobbyists and ALEC meetings while giving the corporations a tax write-off.

Additionally, CMD and Common Cause recently submitted supplemental evidence to the IRS in support of the initial complaint filed by Common Cause’s Mr. Edgar after CMD launched ALECexposed in July 2013. The supplemental filing last month provided the IRS with numerous documents obtained by DBA Press, CMD, and Common Cause in a number of states that show that ALEC has spent a projected $2 million for lawmaker travel in recent years on the state “scholarship” travel alone – in addition to more sums for lawmaker travel via the ALEC task forces. CMD and Common Cause have also asked each state Attorney General to examine whether ALEC is operating in violation of state law.

ALEC’s Corporate Funders Were Well Known before this Hearing

Accordingly, it is astonishing ALEC and a small number of its legislators – many of whom get their trips to ALEC resort meetings paid for by corporations, whose identities are well known to them – are taking umbrage at this Committee for inquiring about ALEC’s legislative agenda and which corporations have bankrolled it. The lawmakers know who funds ALEC’s bill machine and their trips, but until we launched ALECexposed two years ago, the public was largely in the dark about these special interests and the one-stop shopping ALEC provides for corporations and trade groups to secretly advance the same cookie-cutter bills in nearly every state.

Despite the hoopla trumped up over Senator Durbin’s letter, quite frankly, every single for-profit and non-profit corporation this Committee asked about its support for ALEC and its long-standing gun agenda is a corporation that is publicly known to have funded ALEC or participated in its meetings about bills, based on the investigative research of CMD, along with others like Common Cause, DBA Press, VLTP, CAP, Greenpeace, bloggers at Daily Kos, and many, many ordinary citizen sleuths…

Please take the time to read the full CMD testimony provided to the U.S. Senate by Lisa Graves and CMD -> HERE <-

 

The Siege on Michigan Public Education – By the Numbers

The Siege on Michigan Public Education – By the Numbers

By Amy Kerr Hardin at Democracy Tree

Democracy Tree reported late last week that the effects of anti-union laws directed at Michigan teachers, including the ban on payroll deduction of dues and right-to-work, had a miniscule impact on the voluntary payment of dues among Michigan Education Association members.

MEA president Steve Cook said a mere 1 percent didn’t pay. The GOP scheme was a flop.

While that number by itself speaks of the utter failure of bullying tactics employed by the Michigan legislature, it says even more when put in a larger context. Here are some more numbers that make that 1 percent non-payment truly astounding.

Let’s start with the soft numbers.

Although it’s difficult to pin down, somewhere between 41 and 51 percent of MEA and NEA members are Democrats. The results vary by study and by year (and possibly who’s reporting them). Similarly, about 25 percent, more or less, identify as Republicans and the rest as Independents. Without citing or clinging to any particular study or survey here, if those numbers are even remotely close to accurate, they say plenty about how teachers place the importance of their union membership over political affiliation.  And, even if those numbers are wildly inaccurate, it is safe to say that the Democrat to Republican ratio among Michigan teachers is certainly not 99 to 1.

Now, here are some hard numbers to gnaw on.

  • MEA union dues are currently set at 1.5 percent of the previous year’s salary, with an annual cap of $635 — a figure 99 percent are willingly to pay for representation they value– even under the GOP assault.
  • Average beginning pay for Michigan K-12 teachers is $34,100. Average overall salary for Michigan teachers is $55,541.
  • Lawmakers in Michigan earn $71,685, which is among the highest nationwide. Their expense account offers another $10,800 a year, with additional generous allowances for transportation costs and staff.
  • Nearly all public school teachers spend heavily out-of-pocket to supply their classroom — a National School Supply and Equipment Association Survey found that 99.5 percent spent on average $485 a year for classroom materials. That dollar number reflects 1.4 percent of an entry-level teacher’s salary in Michigan.

There are additional hard numbers that demonstrate the depth and breadth of the siege on Michigan’s educators.

Some very disturbing trends were uncovered in a recent analysis conducted by the Citizens Research Council. Their report titled Michigan’s Single-State Recession and its Effects on Public Employment, spurred them to conduct a comparative state-by-state analysis of public sector employment trends since the 2007 “Great Recession”, with Michigan public education numbers in focus. They drew from data found in another report from The Nelson A. Rockefeller Institute of Government. They found the following trends (emphasis mine):

Over the nearly four and one-half year period examined by the Rockefeller Institute, Michigan had the third largest slide in public sector employment (7.4 percent), behind Nevada (10.1 percent) and Rhode Island (8.3 percent).  In percentage terms, Michigan’s decline was nearly three times as large as the total U.S. public sector employment decline over this period (2.7 percent).  As documented in the CRC report, and confirmed by the Rockefeller Institute, job losses in the local government sector (11.4 percent – second largest decline behind Nevada) fueled the overall public sector decline in Michigan, as was the case for the nation as a whole (3.2 percent).

The job losses they cite in the “local government sector” are primarily from one subset — K-12 education.

Michigan’s job losses in this sector have been much more severe (more than a factor of four) compared to the U.S. total during the Great Recession…the losses have been fueled by the consistent plunge in education jobs (primarily K-12 education).  Education employment for the U.S. declined more than non-education, but the difference between the two sub-sectors was not as significant as the decline in Michigan.  For the U.S., education lost about 3.5 percent of the jobs in existence in December 2007, compared to a loss of about 2.0 percent of the non-education jobs.  Michigan, in stark contrast, shed over 17.8 percent of the jobs in education compared to the December 2007 level.  Non-education local government employment, which is dominated by public safety, is 6.8 percent below the December 2007.  This job loss is nearly three times as large as the loss in the U.S. for this sector.

The CRC drives the point home with the following observation:

What is striking from analyzing the data is the fact that Michigan’s employment contraction in [the public] sector has well exceeded the contraction experienced in the U.S. overall.   The job losses have been most acute in the local government sector, especially education.

Numbers don’t lie — Michigan public education is in great peril.

Amy Kerr Hardin

Case Study on Alpine Steel: Prison Industry Subsidized by Taxpayers to Compete with Local Businesses Fails Spectacularly

Case Study on Alpine Steel: Prison Industry Subsidized by Taxpayers to Compete with Local Businesses Fails Spectacularly

by Bob Sloan – Cross-Posted from PRWatch

“The taxpayers have been left holding the bag…. As a result of this I think there is going to be a lot more oversight.”

Private prison profitsThose were statements made by Nevada Assemblyman James Ohrenschall in an interview on Vegas Inc. September 21. Mr. Ohrenschall is the former chairman of the Legislature’s Interim Finance Committee on Industrial Programs. At the time of that interview, the IFC Committee was meeting to investigate facts that prompted his concerns.

Ohrenschall was speaking of prison labor and Nevada prison industry’s partnership with Alpine Steel, LLC, that has resulted in nearly half a million dollars of debt owed to the state and a legislative reform of the state’s prison industry program.

When Vegas Inc. anchor Dana Gentry asked the Assemblyman if Nevada’s Department of Corrections (NDOC) or prison industry officials were being held accountable in any way, he responded, “I believe that they will be held accountable…” The oversight authority for prison industries is the Legislature’s Interim Finance Committee on Industrial Programs (IFC-IP). Critics had accused the committee of not providing sufficient oversight or vetting of NDOC contracts with private companies and not enforcing compliance with key statutory duties of the committee. The Committee served, more or less, to “rubber stamp” proposals brought before it by the NDOC without fully determining the impact a new proposed industry would have on Nevada workers and competing businesses.

The Nevada labor force is now represented by two members on the IFC: Robbie Conway of Ironworkers Local 433 and Mike Magnani of Teamsters Local 986. With their dedication to protecting the rights and jobs of Nevada’s workers, it is likely that situations similar to the one involving Alpine will not reoccur.

After the investigation of Alpine Steel, members of the IFC appear to realize that prison labor competing for jobs needed by Nevada’s unemployed is a serious issue that needs constant vigilance. Doubling the number of labor representatives on the committee overseeing prison industries is expected to improve oversight.

With the addition of Conway to the Committee and a new Chairman, the current IFC appears to be a genuine “oversight” body now. They asked key questions, probed for responsive answers and asked IFC member Cox and Deputy Director Connett to provide materials to them supporting answers they provided to the Committee at the initial meeting on the 20th.

Despite Huge Subsidies (and Prison Labor) Alpine Steel Incurs Big Debt

The sad saga of prisoners being used for their labor by private contractors in Nevada continues to amaze the citizens of this state.

Randy Bulloch, CEO of Alpine Steel

Alpine Steel, LLC owner, Randy Bulloch

The story began late last year when steel companies began protesting to NDOC and legislative authorities saying they were being unfairly forced to compete against a local company using inmate labor. Business owners asserted they had lost bids on projects and thus were unable to expand their businesses or hire more workers due to interference from Nevada’s prison industry operations.

Claims were made that dozens of Las Vegas steel workers were being denied jobs and others possibly displaced due to the use of prisoners as a slave-labor force by Alpine Steel, LLC. The NDOC had given Alpine’s owner, Randy Bulloch, a “sweetheart deal” consisting of inmate wage scale set at or below minimum wage (less than 1/2 of the current prevailing wage for Nevada’s steel workers), manufacturing facility leases (set at 66% below the going rate for such space outside prison), and utility costs at NDOC’s reduced rates.

Such state subsidies provided Alpine with a definite advantage over competitors when bids were sought for new projects in and around Las Vegas. Bids won by Alpine due to reduced overhead costs provided by the NDOC included: the “SkyVue Observation Wheel“, the Wet ‘n’ Wild water theme park, bridge work on an overpass over I-15, and the expansion of a mental hospital, among dozens more since 2006.

5th St. bridge over I-15, Las Vegas

5th St. bridge over I-15, Las Vegas

As this story unfolded earlier this year, it was discovered that in spite of receiving the huge financial benefits mentioned above, Alpine was in arrears on payments for inmate wages, staff salaries, utility costs, leases, and workers compensation premiums. In essence, the evidence suggested that the bulk of Alpine’s Las Vegas operation was being quietly financed by the NDOC with state tax dollars.

In addition, prison industry critics learned the IRS had recorded a lien of more than $600,000 dollars against the company; a tax lien had also been filed by the state DOR and several steel suppliers had placed liens against Alpine for failing to pay for materials. (These liens continue to pile up: last month, the IRS recorded a second tax lien upon the company for more than $30,000.)

The story became public through the media and in December 2012 — under pressure from the Board of Prison Commissioners (BPC) and an order from Governor Sandoval — NDOC Director Greg Cox closed down Alpine’s steel fabrication operation at the High Desert State Prison complex. Members of the BPC and the IFC-IP called for some form of personal guarantee from Bulloch to ensure the taxpayers were not left on the hook for nearly half a million dollars owed by Alpine.

Estate of Alpine Steel CEO Randy Bulloch

Randall Bulloch’s estate in Summerlin

In January, Connett and Bulloch reached an agreement on repaying the money Alpine owed to the state. Connett negotiated through Deputy Attorney General Carrie Parker on AG Catherine Cortez Masto’s staff and got her to approve a proposed forbearance agreement setting the Alpine debt at $438,000+ with no interest, penalties or additional fines.

Incredibly, the terms of the agreement failed to include any personal guarantee from Alpine’s owner Bulloch — who resides in a multi-million dollar, 9,400 square foot, guarded and gated estate — while owing millions in state, federal and personal liens — much of that owed to taxpayers.

Though many including the Interim Finance Committee and Secretary of State had demanded such a provision, the final document left any personal guarantee out of the agreement. If a default occurred, Randy Bulloch’s personal property and other assets would be untouchable — and the debt likely uncollectable. The substantial IRS lien precedes and takes precedence over the newly filed NDOC summary judgment, making it less likely the state will be able to recover any of the outstanding debt until the IRS lien is satisfied.

It is incomprehensible to most that in the face of more than a million dollars owed to the IRS, creditors and the state of Nevada, the NDOC would negotiate an agreement on additional debt owed by Alpine without seeking any form of personal guarantee from the company’s owner. Similarly it defied belief that a member of the AG’s staff failed to demand such a personal guarantee for the debt, knowing the repayment plan was being sought for a company that was already in deep financial trouble.

The Alpine contract is at the core of this problematic situation involving the use of state owned facilities and prisoner labor. The NDOC failed to take appropriate action to cure Alpine’s continued default for more than three years. Incredibly, Connett issued a new contract to Alpine in 2011 while the company was in serious default — without requiring the company to come current on its debt — and the IFC-IP approved the contract without knowing of the default(s).

Allowing a contractor to operate for more than four years without making required payments and taking no steps to stop the bleeding of tax dollars before renewing a contract, demonstrates a total lack of responsibility to the state administration and the taxpayers.

Only after the story broke in the media was the Governor, the IFC members and the BPC made aware of the full amount owed due to nonpayment(s). With Attorney General Cortez-Masto sitting on the BPC, the absence of any personal guarantee from Bulloch in the forbearance agreement signed off on by her agency is puzzling.

The NDOC Defends Alpine and Dodges Questions about the Money Due

NDOC Director James "Greg" Cox

NDOC Director James “Greg” Cox

The NDOC’s Director Cox was contacted about details of this debt and any related negotiations. His office forwarded the query to NDOC Deputy Director Brian Connett, who is also the NDOC Public Information Officer. Connett is also the current chairman of the board of the “National Correctional Industries Association” (NCIA), which oversees the Prison Industry Enhancement Certification Program (PIECP).

As of press time, both the Director and Deputy Director have declined to respond. In the discussion at the IFC meeting on the 20th, Connett and Cox specifically directed the members and public to address questions to the AG’s office for a response.

Due to the costly default by Alpine, the state Senate proposed legislation — SB 478 — to amend the rules governing the IFC (NRS 209.461). In addition to adding a second labor representative to the IFC, the bill created a new provision requiring any company wishing to contract with the prison industry program to post a personal guarantee, surety or bond of not less than 100% of the pro-rated annual amount of the contract.

The measure passed and became effective July1, 2013. The NDOC was told to propose new administrative regulations to comply with the changes at the upcoming October 15 meeting of the Board of Prison Commissioners (BPC).

The NDOC’s prison industries (PI) accounts receivable increased rapidly in 2009 to nearly $900,000.

In 2010, the prison industry turned over more than $800,000 in accounts receivable to a collection agency and, for fiscal year 2012, it claimed an additional outstanding accounts receivable balance of $614,200 for a combined potential loss of $1.4 million in revenue in just two years of operations.

On September 20th, the new IFC-IP held its first meeting following the end of the biennial session. One of the main items on that agenda was the discussion of Alpine Steel and the debt owed to the state and state taxpayers.

NDOC Deputy Director Brian Connett

NDOC Deputy Director of Prison Industries, Brian Connett

NDOC Deputy Director Brian Connett read a prepared statement regarding Alpine Steel to the Committee:

“I will read the statement that we have in regards to addressing Alpine Steel…”

“The prison industry has been working very closely with our deputy attorney general and the attorney general’s office on the Alpine Steel situation through our counsel. PI entered into a forbearance agreement with Alpine Steel in January. Basically the terms were that Alpine would make $5,000 monthly payments with balloon payments of a minimum of $20,000 due at the end of June and at the end of December. Alpine made their monthly payments for February through June. Those payments totaled $25,000. Alpine could not make their balloon payment due at the end of June.”

“Again, working with our DAG [Deputy Attorney General], an amendment to the forbearance agreement was created. It amended the balloon payment due to a minimum payment of $10,000 that was due no later than August 30th and an additional minimum payment of $10,000 that was due no later than October 15th.”

“Alpine defaulted on their $5,000 payment due July 15th [and] our DAG and the prison industries quickly filed a summary judgment against Alpine Steel as a result of the breach. The state has been awarded a summary judgment against the Alpine Steel for $428,208 plus post judgment interest growing at the rate of 1/2 percent per month. So being a state agency, this judgment creates a lean on the Alpine’s real and personal property. The collection of these has been turned over to the state controller’s office for the collection process. Thank you.”

Under questioning from Committee members, NDOC’s Deputy Director Connett and NDOC’s Director Cox at times gave somewhat evasive answers.

For example, when asked point blank if any of Nevada’s prisoner-made products were “exported” out of state, Connett responded that state services were the prison industry’s largest customer.

On another matter, they admitted that Alpine’s equipment was still in place at the “High Desert State Prison” (HDSP), saying Alpine had been “locked out” of the facility since December and the NDOC was actively attempting to rent the space to another contractor. Apparently these officials are comfortable with losing a potential $5,000 per month in lease income by keeping the space filled with Alpine’s equipment.

Connett’s new demeanor concerning Alpine has done an about-face of late. Previously, Deputy Director Connett had appeared at several hearings and meetings in support of Alpine, advocating that the company and its prison labor program be kept open, even in the face of the increasing debt. Connett was the sole defender of Alpine in the media and before the BPC and IFC hearings. He now no longer speaks favorably of Alpine in public.

The newest IFC member, Robbie Conway, asked how long it had been since Alpine had been at the prison shop. Director Cox indicated he’d shut the operation down on December 23, 2012, but he did not confirm that Alpine had not been there after that date. Conway went on to ask, “Are we certain that Alpine’s equipment is wholly owned by them or is there is a chance that it is in debt also?”

Connett answered: “There may be some questions on the ownership of some of that property out there.”

Director Cox quickly added: “It is clear and it’s my understanding there is property out there that does not belong to Alpine. So before anything is released, it will go though the attorney general’s office and go through the process.”

Connett added he had inventoried Alpine’s equipment but had failed to secure an appraisal of it.

In a situation such as this where a substantial debt has been incurred, with an ongoing default on a contract and equipment has been seized and being held as collateral against that debt, an evaluation of the “collateral” should be secured quickly to determine the actual financial risk at stake if a judgment results.

Alpine had been in arrears for several years when the NDOC closed down the prison project last December due to the outstanding debt. It is more than odd under those circumstances that since December the NDOC failed to determine the value of the collateral they hold against a $428,000 debt. Now finding that some of the equipment seized and held is not even owned by Bulloch or Alpine puts the state in an even more untenable position to recover the debt.

Key Questions about the Debt Owed Taxpayers Remain Unanswered

Unfinished Alpine Steel SkyVue Observation Wheel

View of stalled SkyVue Observation Wheel project

In response, the Deputy Attorney General — with whom the NDOC has been working on the Alpine case, as noted by Connett’s statement — was asked the following questions that NDOC had failed to answer:

  1. Did the Deputy Director of the NDOC, Mr. Connett and Alpine owner, Mr. Bulloch, negotiate the terms and conditions of the forbearance agreement and then seek approval from the AG’s office?
  2. If the answer is no, that the AG’s office negotiated the terms, did your office seek a personal guarantee from Mr. Bulloch on the debt owed?
  3. In the face of multiple ongoing liens, defaults and creditor/vendor litigation(s) against Alpine Steel, did you suggest a condition that a personal guarantee from Mr. Bulloch be included to ensure repayment should a default occur?
  4. Has anyone come forth and filed a claim of ownership on any of the equipment held by the NDOC at HDSP? [S]ome of the equipment seized by the NDOC as collateral on the debt owed by Alpine has been determined to be the property of a third party. If this is factual, will your office release any Alpine equipment that is claimed by another individual or company?
  5. With IRS and other liens pre-dating the summary judgment awarded to the state last month, will any assets owned by Alpine and held as collateral by the NDOC first go to satisfy those preexisting liens? If so how does the state intend to recover the loss of the $428,000+ debt of Alpine?

The official response from the AG’s office came from its Public Information Officer, Jennifer Lopez:

“My colleague Carrie L. Parker, Deputy Attorney General, Bureau of Government Affairs, mentioned you had questions about Alpine Steel, LLC, Randall Bulloch and the Nevada Dept. of Corrections. We have discussed your question and think because you are seeking attorney-client privileged information, it is best for you to direct this inquiry to Silver State Industries,” which is part of NDOC.

So the “official” response redirects inquiries back to the NDOC which has already directed questions to the AG’s office. Between the two agencies, it appears that in the Alpine matter transparency is non-existent and deliberately so.

During the meeting Connett stated that the PI’s accounts receivable is now $119,567.66 — which would represent a serious decrease from 2012. However, the debt owed by Alpine has been not been collected.

Although the past due account shows a marked recovery, that may be an illusion. Alpine’s $428,208 has merely been transferred from one state department to another state department creating the appearance that PI is recovering financially. The loss of nearly half a million tax dollars still exists but is no longer on PI’s books. Adding Alpine’s default amount to the AR figure provided by Connett shows that without transferring Alpine’s debt, PI’s accounts receivable would be $547,775.66, not significantly different from 2012’s levels.

Earlier this year, Alpine’s license with the Nevada State Contractors Board (NSCB) was reduced to $500,000, but the NSCB allowed Alpine to remain in business.

Despite multiple defaults to the IRS, Nevada’s Department of Taxation, the NDOC contract, vendor invoices and payments on worker’s compensation payments, Alpine has continued to operate, putting out bids on new projects even as Bulloch lays off Alpine employees. Some of those let go have stated that they worked for the company at reduced wages and without receiving overtime due them.

Will Alpine Steel’s License Be Revoked on October 9?

NSCB was asked if that agency is considering revocation of Alpine’s license. NSCB’s Public Information Officer, Jennifer Turner  responded:

“Alpine Steel is scheduled to come before the Board October 9, at which time it is requested they voluntarily surrender their license.”

The NCSB appears to be the sole state agency/department that has decided enough is enough and has taken less than eight months to “cure” Alpine’s non-compliance with state law and hold the company and its owner personally responsible for their actions in some way.

Had the NDOC and the Attorney General’s office adopted the same position months ago, perhaps the amount of the debt owed by Alpine would be guaranteed by Bulloch, providing some hope to taxpayers that the more than half a million dollars owed would be recovered.

It remains to be seen if members of the BPC will ask tough questions — similar to those previously posed to the NDOC and AG’s office — at the upcoming meeting on the 15th. Perhaps they will get complete answers to important questions regarding how and when the state can recover the Alpine debt.

After the Board of Prison Commissioners meeting on the 15th of October, a follow-on article will be published. With the introduction of the new regulations and the removal of Alpine from the prison industry program, perhaps the Alpine saga will finally be put to rest.

Cyber Schools Fleece Taxpayers for Phantom Students and Failing Grades

Cyber Schools Fleece Taxpayers for Phantom Students and Failing Grades

Many times we’ve written about attacks upon our public school system by corporate interests wishing to capitalize off of public tax dollars spent on education.  Cyber schools are some of the most misunderstood programs by parents.  Journalist Mary Bottari at PRWatch has done an excellent job of ferreting through the data – ciphering information from dis-information – to give parents and students a more complete understanding of why Cyber School programs are failing.  Not only failing to achieve the results promised, but companies like K-12, Inc. are amassing huge profits from tax dollars as our children’s education is set back decades.

The full article is a must read for parents, teachers and those trying to decide whether long distance learning and charter schools are the future of America’s education program.

__________________________________

by Mary Bottari at PRWatch

“The data is in and K12 Inc.’s brand of full-time public “cyber school” is garbage. Not surprising for an educational model kicked off with a $10 million investment from junk-bond king Michael Milken.

“Milken was the Wall Street financier who virtually invented junk-bonds — high-risk securities that were used to leverage hostile buyouts in the “go-go” 1980s. Milken came to symbolize Wall Street excess, serving as inspiration for the Michael Douglas character Gordon Gekko in the 1987 movieWall Street. Milken spent almost two years in a federal penitentiary for securities fraud.

“After he was released from prison, Milken set his sights on the $600 billion public education “market,” forming new companies including Knowledge Universe and Knowledge Learning, parent company of the KinderCare child care chain. With his $10 million stake in K12 Inc., Milken aided one of his Vice Presidents and another junk dealer, Ron Packard, who specialized in mergers and acquisitions for Goldman Sachs back in the ’80s.

“The duo prepped to exploit the public education sector, and boy, have they. His various educational ventures have made Milken one of the richest men in America, and Packard ra

Explosion of For-Profit “Virtual Schools” Linked to ALEC

In recent years, there has been an explosion of full-time “virtual” charter schools paid for by the taxpayer. From 2008 to 2012, 157 bills passed in 39 states and territories (including the District of Columbia) that expand online schooling or modify existing regulations. Many of these bills are attributable to American Legislative Exchange Council (ALEC) politicians.

ALEC approved a “model” Virtual Public Schools Act in 2005 at a time when both K12 Inc. and Connections Academy (the second largest for-profit) were corporate sponsors and helped craft the measure, according to ALEC’s website at the time. Connections Academy quit ALEC under pressure, but K12 Inc. remains on the ALEC Education Task Force and helped sponsor the organization’s recent 40th anniversary shindig in Chicago…”

Read Mary’s full, informative article at PRWatch -> HERE <- or at Truthout -> HERE <-

Koch Bros Retainer to PRWatch: “Bring It!”

Koch Bros Retainer to PRWatch: “Bring It!”

mary bottariby Mary Bottari at PRWatch

“Some interesting emails were released as part of theMilwaukee Journal Sentinel’s ongoing investigation of a $500,000 taxpayer grant awarded to the Koch-tied United Sportsmen’s group. The grant was tailor-made for United Sportsmen and slipped into the budget by State Representative Scott Suder as one of his last acts as a state legislator. (Suder, who also served as ALEC’s Wisconsin State Chair, was given a new job at the Public Utilities Commission and a $45,000 pay raise by Governor Scott Walker.)

“United Sportsmen of Wisconsin (USW) is a relatively new group that spent more money defending Scott Walker in the recall election than on deer licenses, and more money lobbying for a four mile, open-pit iron ore mine that threatens to shut down a large swath of state forest, than educating people about hunting.

“After the Journal Sentinel reported on the sweetheart deal for this little-known group, CMD/PRwatch uncovered the organization’s deep ties to David Koch’s Americans for Prosperity and the Tea Party. United Sportsmen’s website was registered by an AFP staffer, the group coordinated with AFP to send misleading mailers in advance of the 2011 recall elections, and AFP and United Sportsmen co-sponsored a “Freedom Fest” party in advance of the 2012 elections featuring Republican politicians and right-wing personalities. Luke Hilgemann, Suder’s former Chief of Staff, until recently headed the Wisconsin chapter of AFP and now is #2 at the national organization. CMD also uncovered how the United Sportsmen Board was populated by right-wing apparatchicks, including John Keegan, head of the Sauk County Tea Party, and Annette Olson, the Americans for Prosperity “Activist of the Year” for 2012 and leader of the Tea Party groups Women United for Liberty and Uninfringed Liberty.

“The Journal Sentinel also reported that the group “misled” law makers about its non-profit charitable status. The ensuing outrage over the blatant cronyism prompted Walker to rescind the grant September 5th, but Suder still has his plum job…”

Read the full PRWatch article -> HERE <-