Putting A Price On Education

Two news items, one in The Tampa Tribune and the other in the St. Petersburg Times, taught me a very good lesson about how the State of Florida has little concern for the education of college-bound students, another example of putting greed before common sense.

I find that each newspaper has its own valid editorial positions on social and political issues. The reporters of each paper often provide different content on newsworthy, each with more in depth information than the other on most topics. I couldn’t have home delivery for one without the other.

The St. Petersburg Times reported on a proposal to raise tuition rates by up to 15% at all 11 state universities, following the approval given to 5 institutions during the past year, the University of Florida, Florida State University, the University of South Florida, Florida International University in Miami and the University of Central Florida. The current cost to college students in Florida are much lower than the national average by nearly $2800 per school year. Student increases would be about $200 per semester.

After vetoing an across the board 5% tuition increase last year, Governor Charlie Crist now backs the 15% increase because of state budget cuts. Limitations allow a maximum of 40% in additional intuition fees in any three-year period. At this rate it’ll take eight years for Florida tuition rates to catch up with the national average. Of the total increases, 30% will support financial aid for low-income students. The other 70% would be used to recruit and retain faculties.

The Tampa Tribune, also on November 20th, gave its opinion on the [editorial page] that the Florida Board of Governors will consider to include itself in the evaluation of university presidents. Of course, the presidents would rather maintain the current process that allows their local boards to evaluate their compensation, however self-serving it is.

The paper goes on to give readers statistics from the annual report issued by the Chronicle of Higher Education. For instance, University of Florida President Bernie Machen earns more than $731,000 in total compensations and ranks as one of the 10 highest in the United States. Five other Florida university presidents earn well above the national average of $427,000.

The higher education system in Florida runs parallel to the ways and means of corporate CEOs countrywide. Their boards pump up the salaries and bonuses of their officers over and above what most of us would consider reasonable and affable dollar amounts, especially when their worth doesn’t balance well with the performance of the company. Subordinates get peanut shells in comparison, just enough to maintain the status quo as the upper echelon sacrifice the longevity of loyalty for the opportunity to hire upstarts at much lower salaries or entice other professionals with higher compensation than tenured employees.

Take for instance the contention between the faculty and administration of UCF. President John Hitt was given a 46% raise. Vanessa Fortier, director of the University Office, received a 41% increase. And Abraham Pizam, dean of the Rosen School of Hospitality Management, got a boost of 24.5%. One third of the 99 administrative positions received raises above 10% with an overall average of 9.37%.

Another example can be found at the College of Education where Dean Sandra Robinson got a 23.9% raise even though the college ran a deficit of $1.3 million.

At a time when college funding is constantly being reduced, it’s no wonder faculty members are outraged at the discrepancies in monetary compensations. Their concerns center not only on salaries but the ever-decreasing moneys available to provide the basic needs of managing class room activities, such as Xerox paper and phone services. They are further demoralized when faced with reprimands or dismissals because of problems in their classes; it’s difficult to manage classes of 300 students.

So, what realistic solutions might there be to offset reduced funds? The Florida Budget & Taxation Reform Commission could have made a positive difference but they squandered their once-every-20-year meeting with seven proposed amendments that were subsequently reduced to four.

A property tax swap was determined to be full of mathematical errors that would have left the state a shortfall of $4B dollars. Public funding for religious institutions was felt unconstitutional and outside the realm of the Commission’s responsibilities. The school voucher initiative was deemed wrought with wording that would have ultimately been sent to the Legislature for interpretation. This is what you get with devotees to Jeb Bushels of crappy leadership.

Since the FB&TRC failed in their duties, what’s left to consider?

While visiting Rapid City, South Dakota, I noticed that SD and Florida have some very difference approaches in providing tax revenues while neither have a state income tax.

Florida property taxes are valued at 100% minus a homestead exemption of 25% and an additional $25,000 for those over 65. An annual 3% cap applies but moving within the state to another property annuls any previous savings. South Dakota properties are assessed at 85% of market value between counties, taking into consideration replacements costs, comparable property sales figures and projected income from a property; tax reductions can come in the form of refunds for senior citizens and disabled persons.

Sales tax in Florida is 6% (excluding food and drugs); additional county sales taxes could accumulate to a total of 9.5%. South Dakota sales tax is 4% (excluding drugs) with municipalities having the option of adding 2%.

Gas taxes are 32.6 cents per gallon in Florida - 24 cents in South Dakota.

The biggest difference between the two states is the cigarette tax: 33.9 cents in Florida compared to $1.53 in South Dakota!!! Very few eating establishments provide smoking areas in SD; both states allow outside accommodations. Smoking is a discretionary expense and results in higher medical costs for everyone.

If only the Budget and Reform Commission had been more astute to provide a better selection of amendment instruments that could have resolved these insurmountable financial challenges.

There would be strong opposition from a large party of lobbyists to nearly triple the cigarette sales tax, so a compromise could combine a moderate increase with a tweak of the state sales tax, perhaps a half-cent instead of the penny increase that’s been discussed.

It’s a shame that instructors always get the short end of the stick when administrators reap such greater benefits, including public school teachers who are the backbone of providing the basics of knowledge to the next generation.

In all levels of government, the quality of leadership determines the health of a community. Governor Charlie Crist and the Florida Legislature need to provide a more concerted effort at meeting the demands of providing necessary services to their constituents, especially all levels of the educational system.

I Am Not A Farmer

In April I received a statement that forewarned me the yearly premium on my home’s insurance policy would come due in July. At first, I though it was a little premature to send me the “renewal certificate” but the bottom line figure as payment to cover the cost of repairs in the event of loss of property was something to be concerned about. It didn’t offer a monthly payment plan.

The only positive statement I can make is that the premium was but a few dollars more than the figure in 2007. My worst fear proved unwarranted; the 30% increase I had seen from 2006 to 2007 didn’t happen again. Thank you very much, Governor Crist, for keeping my rates from going down as you had promised; insurance companies not only reduced their risk by canceling policies along the coastlines of Florida but also kept the practice of profitability by being allowed to up my premium.

Information that had little effect on the premium included a coverage increase of $22.00 but there was also a rate change premium decrease of $35.00, which was good news of little importance. If not for a reduction in the assessment for Citizens Property Insurance losses by $80.52 I would have had an overall increase. How lucky can I get that this comes as a gift “due to an appropriation by the Florida Legislature”!

No one can predict what the assessment will be when the “big one” demolishes any portion of Florida. Last year it was 7.2% of the bill, now 2.5% (and 1% of my auto insurance). We’re still paying for the 2005 hurricane season; the next one may warrant a surcharge well into the next millennium.

So, I had to hawk the line-by-line charges to see what I’m actually paying for each item of coverage. Most of it was pretty straightforward but since the balance due was going to dampen my summer months, with or without what used to be seasonal rains, I contacted the agent for a little clarification.

There wasn’t much that could be done but to save what amounted to a few dollars, although I questioned the amount for personal property loss, which includes the belongings inside the home. She explained the figure was 75% of the dwelling coverage. She informed me it could be adjusted to 50% or as low as 25%. She had no immediate formula to give a savings amount but she would get back with me within a week; she had a few days off or otherwise it would have been a day – two at the most.

One bit of information she gave me of her own accord had to do with sinkhole coverage. I could cut the overall bill in half if I were to accept loss of use. This would mean that if there were cracks in the foundation but not of such a degree to condemn the structure, I would be on my own to avoid further deterioration. A tempting idea but much too risky for me but not so for the insurance company, actuaries make sure a profit is theirs to be had.

(I felt it a mute point to discuss the claim-free discount on the policy because without it the rate would increase by more than 25%! Heaven forbid I should need to actually make use of the policy!)

So now I await an email from Lisa on what minuscule savings I might realize with a reduction in person property coverage.

So now I await a quote from Hector, from another insurance company that is still accepting applications from Hernando County homeowners, to find out how they can assist me in keeping my home a safe, and less expensive, place to live.

Besides, who needs a company whose name suggests it specializes in farms? Perhaps I’ll go with one that boasts a triple-A rating?

A Peaches and Cream Speech

Good grief, Charlie, where ya been lately?

Side-steppin’ your elected responsibilities of addressing the needs of Floridians with your travels on both sides of the Atlantic, from South America way down south in Argentina to points north and east in Israel and Britain?

Gallivanting and carousing the United States with an older man, anticipating an inheritance of influence and power?

Smile and the Florida Legislator with you and your positive thinking but the truth of the matters are not as you portray them to be. Was that a tongue-in-cheek speech you gave during the State of the State Address? You can’t laugh off the depressive effects of the construction industry and the rippling tide it spreads through a multitude of other businesses.

You've never owned a home, so how can you relate to the affects of property taxes and home insurance on

You can’t shrug off the crash-boom-bang economics as a result of unending foreclosures in this State that has built itself on burgeoning homeowner property tax revenue. With most Americans experiencing one type of financial hardship or another, you can’t even rely on the tourist industry to keep the sunny side up above the looming clouds of a gloomy forecast.

Perhaps you’ve been blinded by the light of the midday sun and just don’t realize how the state of the State is something other than a healthy rose-colored crystal ball; it’s more like a stained-glass outlook through a hazy window.

The forecast is for cloudy skies.

Rather than what was portrayed in your Peaches and Cream speech, the State of affairs is ripe with rotting fruit and soured skim milk.

A Year With Charlie Crist

The Opinion Letter is framed. It was short and sweet, as it had appeared in the St. PetersburghTimes on Janurary 17, 2007. I submitted the letter upon the victory of Charlie Crist as the newly elected Governor of Florida. I wrote about “a sense of relief, anticipating some major changes in our daily lives”. The words of praise were heartfelt.

I hadn’t considered myself overly optimistic in my belief that he would resolve the hardships of homeowner insurance, property taxes and, perhaps the most important of all, education. This January, my disappointments are three-fold.

Although Amendment 1 passed the required 60% popular vote in the Florida Primary on Janurary 29th, it has very little positive affect on my personal property tax bill. My home insurance continued to rise after the Florida Legislature passed a bill that was supposed to actually lower the premium. Nothing has been done about education. Funding for schools is further in question because of sinking property values and the passage of Amendment 1.

Despite Governor Crist's shortfalls on his promises, my concerns are still dwarfed by my faith that his full term in office will provide a legacy of monumental proportions.

Another letter that adorns the wall in my den, dated January 20, 2007, overshadows my own. The glass-encased 8 ½ by 11 page bears the Great Seal of The State of Florida with the letterhead reading Charlie Crist, Governor. His signature accompanies the words “Thank you very much for your most kind words!”

Although my approval rating of the Governor is somewhat diminished, I maintain the belief that, in time, “he’ll earn the title of Superman – to me at least”.

Aftermath of Amendment 1

Whew! Aren’t I the lucky one! I figure there’s a whopping $240 savings on my typically average home value now that Amendment One is said and done. I’ll still have an end-of-the-year tax bill that’s three times that of my neighbors.

And, as Property Appraiser Alvin Mazourek repeatedly informed us during last fall’s Hernando County Budget hearings, there’ll be an additional reduction because the value of my home plummeted in 2007; property taxes are billed a year in arrears.

I’ll still have an end-of-the-year bill that is three times that of my neighbors who have stayed in the same home in excess of ten years. I’ll still be paying a far higher share of taxes than those same neighbors who maintain the same level of services from County Government. Hundreds of other homeowners in the county are right there beside me although they’re necessarily neighbors.

Those same neighbors whose tax bills are a third on my own can downsize to another location and save their homes much more easily than myself. If I should downsize I would still pay three times as much in property and school taxes as they. I’ll cross my fingers next fall when the County Commissioners place their votes for the 2009 budget and hope they don’t inch up the millage rate. We might even get it socked to us bad if the three incumbents fail in their re-elected bids in the General Election – it may be a season of sour grapes as they take vengeance on the electorate.

I can take the overall savings in property taxes of maybe $400 and apply it to my home insurance premium that was never reduced as promised by Governor Crist.

There are those who made out like bandits from the passage of Amendment 1, but there are also just as many of us still behind bars with a financial responsibility that foresees no reprieve. We’ve been sentenced to a lifetime of inequity because the Florida Legislature can rest easy that the people have mandates the status quo. There will no longer be the need to pursue other tax reform.

I feel the only way for me to make out ahead is to fall backward by selling my current home and relocate to a trailer valued little more than $50,000; I would have true property tax and insurance relief. I can’t expect it otherwise.