What it was for school choice in Georgia. A good start to be sure, but there is work to be done. Thursday, the House passed HB 881, a bill that would create a state-level alternate authorize for charter school, by an overwhelming 120-48 count. This was a bipartisan effort and the debate really underscored the desire of legislators to do the right thing on one hand, and some to fully entrench the power of school boards and educrats on the other.

Change is needed and that is the bottom line. I won’t bore you with statistics, but in Georgia, public education generally sucks. Even where schools do measure up to standards, the bar is so incredibly low that many high school grads cannot compete against other American kids, let alone those from abroad. Unfortunately, reform is 15 years from implementation by many accounts. Charter schools are a viable, proven alternative to traditional public schools. Critics call for more funding, better teachers, but at what cost and when? Why should we sacrifice a generation of children to the alter of the bureaucrat? Charter schools are an interim solution, one that can sustain us until we can get meaningful reforms. To reject them if qualified betrays not only the taxpayers that are supposedly represented, but it betrays our children who deserve better than to be educated based on where they live.

Choice is needed. Charter schools are public school choice. Isn’t it odd that the same liberals that call for us to come in line with the rest of the world on issues of defense, trade, and the global income redistribution scheme that is global warming but ignore the rest of the world on issues of education, healthcare and taxation?

Regarding healthcare, liberals the government to control access to plans and heavily regulate medicine, pharma, and insurance. However, the British, who have had a heavily socialized system of healthcare for half a century are beginning to seek privatization of services. The same goes for the Canadians, who routinely come to the US and pay out of pockets for life-saving services that may take weeks to be administered at their neighborhood hospital.

As for taxation, we are nearly the only Western nation left that has a graduated income tax and our liberal friends are calling for a steeper graduation. Obviously 1% of the population paying over 35% of taxes just isn’t enough. The most other nations have a flat tax that is truly equal. And by the way, a graduated income tax is tenant #2 of the Communist Manifesto.

Finally, we come to education. Go take a look at Sweden, my conformist liberal friends. The Swedes are in the early years of implementing a fully private education system. It is vouchers for everybody and their achievement, along with their neighbors the Fins, is among the highest in the industrialized world. Oh yeah, “free” public education, tenant # 10 of the Communist Manifesto. You won’t find that little fact at a campaign rally, will you?

Choice breeds excellence. Choice breeds innovation. Choice breeds achievement. Take a look at public schools before charter schools entering the market and after. Look at the postal service in the post-UPS world. Compare the USSR and US during the Cold War.

In Georgia, we have a chance to better the lives of our children and make this state a better place to live by giving parents more options in education. Don’t stop this progress. Be part of the solution, not the problem. For once, be anti-establishment on an issue. Support public school choice. Support HB 881.

Comments(0)

This is my first week in the Capitol and things have been a little hairy to say the least. I come to you this morning from the Senate Chamber on Day 3 of the 2008 Legislative Session. Here’s a little recap of what has happened so far…

Day 1 there were fireworks for the first time in 34 some-odd years. The House overrode 12 of the Governor’s vetoes from last session and the Senate has refused to take the issue up. Hopefully, we can see at least some action on those today. Among the overrides is HB 559, a bill put forth last session that would allow charter school teachers access to the state benefits plan, just like all other public school teachers — because remember, charter schools are public school! To the Senate, if you want to show you are not the Governor’s lapdog and override the veto with the House for one bill, do it on HB 559.

Day 2 saw HB 881 move out of the House Charter Schools subcommittee into the full Education Committee. The full committee will vote on the measure in the coming weeks, most likely after budget hearings next week. This is step one of many for this very good bill that would give a better shot to charter school petitioners whose applications are victims of political posturing by local school boards.

Day 3 begins today with a Senate session at 10:30am and the House reconvening at 1pm, followed by the Governor’s State of the State address to a Joint Session at 2pm. It will be a busy day with plenty of opinion and information out there all to digest.

Tomorrow, Day 4, will see a gutted gun bill come to the Senate floor for an up-or-down vote. This issue pitted the 2nd Amendment v. private property rights and it will interesting to see NRA response, as well as response in general, especially if the measure fails.

Overall though, the first session in the Capitol has been most interesting. It is quite a place and I get all warm-hearted seeing representative government at work. I’m sure there will be frustrating times ahead, but that’s all part of the territory I suppose. Win or lose though, what an experience, I’m so lucky to be here!

Comments(0)

I have to say, I am a fan of charter schools. I’m sure most of you have heard the term, but you may not know what it means. I want to clear up a misconception or two right here, right now, so that when a debate on the issue comes up, everyone can know what is going on.

First off, a private school is a public school that operates under less strict regulatory guidelines that an ordinary public school. They are usually administered by a non-profit professional school administration company and control their own funds. A charter school is bound to perform by a document called a charter that effectively serves as a contract between a local Board of Education and the school. The charter also serves as a contract between the parents of the school and the educators. It effectively relinquishes the school from complying with many education regulations set forth by the State and local Board of Education. In doing so, the charter gives school leaders and instructors greater autonomy in how material is presented and in how the school is run. With this freedom comes responsibility. Outcome goals are set in the charter and if the school does not perform, it will be shut down, unlike a traditional public school. In essence, charter schools gain greater flexibility for greater accountability.

Currently in Georgia, 70-some public charter schools in Georgia. Overall, they produce results, involve parents, and those served by them love them. A few haven’t been so great and they have been shut down. I’m sure many urban parents wish that could happen to their local school after children in their community continuously fail to meet standards.

Now that everyone knows what a charter school is, it’s time to clear up some common misconceptions. First off, as mentioned above, a charter school is NOT a private school. It is a PUBLIC SCHOOL. I really want to push this point across so here it is again and again–

CHARTER SCHOOL = PUBLIC SCHOOL

CHARTER SCHOOL = PUBLIC SCHOOL

CHARTER SCHOOL = PUBLIC SCHOOL

CHARTER SCHOOL = PUBLIC SCHOOL

–ok, I think that six times in a couple of paragraphs is solid enough. The second and third points kind of piggy back on this public school notion. First, contrary to popular belief, charter schools do not have admissions policies. They can’t! Remember, it’s a public school! While some school may be geared more towards some groups (such as special needs, gifted, math and science, etc.), charters by law have to be able to take in and accommodate every child, just as a traditional public school does. What may be skewed as an admissions policy is really a waiting list. When you want to send you child to a charter school, there is limited space available, as the charter prescribes. This is a fact that will come into play a little later.

Second (or third, however you want to look at it), charter schools don’t charge tuition. Remember the public school thing? Yeah, comes into play here too.

OK, now that the background work is done, let’s talk legislation. YAY! House Bill 881, put forth by Rep. Jan Jones of Alpharetta. Here’s the gist of it: Charter schools are not getting their fair shake, either in authorization or funding once authorized. Numbers seem to back this up. This year alone, 17 charter schools have applied for authorization to local school boards, all but two have been denied. This really is no surprise. After all, this arrangement is like requiring the zoning for a Burger King being approved by McDonalds. HB 881 would change how authorization takes place. Charter schools would be able to go before an independent state level board for authorization. McDonalds would be circumvented. I like this idea. It takes politics out of the authorization process. It better allows for the fulfillment of a need, as wait lists at existing charter schools indicate there is, and it will inject the power of the market in the public school system. Traditional public schools will be forced to shape up or lose enrollment to charters that outperform in the same community.

The second aspect of HB 881 that I love is that of funding equalization. Right now, charter schools, a public school remember, inexplicably receive about 40% of the funding that traditional public schools receive. This is wrong, inexcusable, and a great example of politics in action. HB 881 would change that. State and local dollars would follow the children that they are intended for. Charter schools would receive 90% of the education dollars entitled to a child, with the other 10% being left to the local school district that previously educated the child to cover administrative costs associated with the transfer. The costs are thought to be about 3-5%, meaning the local school system would gain 5-7% of a child’s share of the cash without having to educate that child.

This is a bill that is good for not only charters and kids, but also for the taxpayers that fund the traditional public school system. Competition is not something to be feared, it is something to be embraced. Our education system can become leaner and meaner, producing kids with better educations and more marketable skills using less money if competition is injected.

If you like the sound of HB 881, let your representatives know!

Comments(0)

Seems Barak likes pizza. According to a little blurb that came across the wire today, the esteemed “progressive” from Illinois was interviewed by a 5-year old after a rally today. Let’s just copy/paste the article, eh?

“Crouching to the ground after a rally with 4,000 supporters, Obama briefly outlined for Hadassah his plan to provide health insurance for everyone and to improve schools. He also suggested to the first-grader that wealthier people should help those who are less fortunate.”

“‘We’ve got to make sure that people who have more money help the people who have less money,’ Obama said. ‘If you had a whole pizza, and your friend had no pizza, would you give him a slice?’”

I get you were talking to a kid, Senator, but I think it illustrates that you just don’t get it. What you describe to the young lady is called charity. Government is not charity. Government is a way to manage “donated” tax monies, not redistribute wealth.
For the record, I am the king of giving people a slice. I cook for people all the time. It’s great fun. But Mr. Obama’s delicious pizza pie reference doesn’t take one thing into account…your slice of pizza isn’t seized by force! The government doesn’t come to your house and take your damn pizza!

Yes, I want everyone to be insured, but not by threat of a government mandate and certainly not by having my money seized from me by a faceless Federal bureaucrat. Exhaust free market alternatives first. Don’t just jump into what is a “single payer” system, what will become a nightmare within ten years. Look towards Massachusetts, look towards Casey Cagle’s health insurance marketplace idea in Georgia. Look towards providing people choices in insurance instead of restricting who can offer what. There is your first step towards reform.

Instead of what Barak told that young lady, I would have gone with a different pizza analogy. How about instead of taking one slice and giving it to another, open up the choices of pizza parlors to choose from. This will help to lower the price of a slice. We need to open up the options. Everyone should be entitled to choose from a Wolfgang Puck slice, a slice of Dominos, a piece of the cheap $4.99 large pie from the hole-in-the-wall next to Office Depot, and everything in between. And let’s keep it basic–cheese as a base. You want some pepperoni, throw that topping surcharge into a pot with everyone else who wants pepperoni and pay for services that way, don’t charge the guy who just wants a plain slice. How fair is that, Senator?

Point is, let people choose, don’t restrict their ability to decide for themselves. That is the first step to reforming health insurance in the country. The last thing we need is another hand in the pot, especially when that hand has the gun of law enforcement.

Mr. Obama, I know that you are hungry. Campaigning against the Devil does that. Just keep your hands on your own plate…

Boy, look at all the delicious pizza! What if Pizza Hut said you can only have one type of pie? Think you would ever go back there again?

Comments(1)

In a presentation before the [Georgia] Governor’s Education Finance Task Force, former UGA president and current chairman of the New Commission on the Skills of the American Workforce, Dr. Charles B. Knapp spoke passionately about the dire state of public education in Georgia and the nation as a whole. According to Dr. Knapp, American public education “is a train wreck that has already occurred”. If clean-up of this mess does not begin immediately, the consequence will be not only the continued loss of jobs overseas, but also as a long-term decline in the American standard of living.

The data supporting the view that American public schools are failing is a wake-up call. Since the 1970s, there has been almost no growth in the percentage of American adults in the workforce with a high school diploma. Meanwhile, other nations have caught and exceeded our levels of workers with secondary school diplomas, resulting in a decline of competitiveness of the American worker. Moreover, the education received does not seem to be doing the job of adequately preparing students for post-secondary study. Longitudinal studies cited by the Commission show that of 100 students beginning 9^th grade, only 68 will graduate high school on-time. Of these students, 40 will enroll directly in college and a mere 18 will graduate with an Associates or Bachelors degree within six years. Additionally, the cost of educating students over the past 30 years has risen with no appreciable increase in common benchmark test scores, such as 4^th grade reading scores. Something must be done.

While the Commission has proposed robust reforms for the national K-12 system that they would like to see actualized by 2021, in the interim the onus is on states and localities to produce the type of workforce that will best be able to adapt to an ever changing global environment. One way that Georgia can do this is to adopt charter school legislation that would provide parents with school choices that best fit the needs of their child while at the same time pushing schools to excel. Two options were recently presented before the Joint Charter Schools Subcommittee, H.B. 469 and H.B. 881.

H.B. 469, proposed by Rep. Ed Setzler (R-Acworth), would create a system by which charter schools can be authorized from multiple sources, not just local Boards of Education. Included in the list of proposed authorizers are any local elected body (city, county, etc.), a public university, or the State Board of Education. The goal here is to create a free-market environment in which educational needs can be met in a way that encourages excellence in all public schools, charter and non-charter, through competition. Additionally, H.B. 469 would allow all state and 90% of local education monies to follow an enrolled child. Another proposal, H.B. 881, presented by Rep. Jan Jones (R-Alpharetta), would create the Georgia Charter School Commission, a central body that all charter schools are accountable to. Aside from having regulatory roles, the proposed Commission would also be able to authorize charter schools without local Board of Education approval, allowing for the proliferation of charter schools in districts where local board members may be less-than-friendly to the idea. Additionally, 90% of all funds will follow the child should they enroll in a charter school.

 The efficacy of charters schools is undeniable. Graduation rates are higher by 8-12%, more schools meet federal standards, and parents are able to target the needs of their children better while not having to resort to expensive private education. In the absence of comprehensive systemic changes, encouraging educational excellence through competition is the best way to get American education back on track. Legislation that encourages the creation of charter schools is a step in the right direction.

Comments(0)

College is a necessary part of life. Here’s a quick quote from Orange County explaining my feelings about college. “Shaun: I have to go to college. Cindy: Why? Shaun: Because it’s what you do after high school.” Those few lines sum up my feelings about college. Why go to college? Because educating yourself is a key part of life. One of the major reasons why people now attend universities is the incredible networking opportunities that unveil themselves throughout the college experience. It’s not what you know, but who you know. This old adage saying is becoming more and more important in today’s world.

Unfortunately, college ain’t cheap. There’s a large sum of money due before you walk down the aisle (and I’m not talking about getting married). Most people don’t have large stacks of money laying around for education. That’s where student loans come in. Let me be the first one to tell you that student loans are still one of the most powerful debt instruments in the world. They provide the financial backing for your future financial successes. There’s a strong correlation between education and yearly salaries. Here are some figures brought to you by the Census Bureau : $36,302 for a high school graduate and $60,020 for college grads. Double the education, double the pay. It pays to go to school.

The scary part is education costs are going up faster than inflation.

What can you do to receive a good education and not drown in student loan debt? Stick to in-state schools. A lot of research has shown that making the most out of your education will mean a lot more than the name of the college you graduated from. In-state schools will provide a tuition discount and will save you a boat load of travel expenses. After graduation, many local businesses will select in-state grads to fill positions before they scout for out-of-state grads. Do your parents and yourself a favor by sticking to in-state schools. It’s also good for your state economy which is a huge plus!

If you fail to plan – plan to fail. Don’t let scary TV shows about tuition increases get to you. You just need to plan ahead. College is a great way to meet new and exciting people while getting a ticket for more money in the future.

Comments(2)

Is generation Y designed to fail financially speaking? Every single day you read more and more about how younger people¹ are investing less and spending more. How can this cycle be broken and allow them to eventually see financial prosperity? Here are the two biggest ways that people can eventually be extremely wealthy. Education and action. Ground breaking? No. Simplistic? Maybe. I know it seems much more complex than that, but it really isn’t that hard to change a bad behavior.

Financial education has been overlooked in school because kids are too busy dissecting frogs and learning how to calculate the area of a rhombus². That’s right, a rhombus. Are parents to blame or should we push the blame to the schools? I think both parties should be held somewhat accountable for the lack of financial education in the school system. The reason why I would blame the parents is because they are the ultimate authority in what their kids are taught in schools. They have voting power and could demand the school board to introduce a financial education class. The school system is guilty for not changing its curriculum in 50 years. The only class that changes every five to ten years is history class. All the other courses are redundant and do not fit the world’s current standards.

*eFIPO’s Rule* If you desire change, promote change. If you have kids going through elementary school and want them to learn about personal finance, participate on your PTA.

Learning and not applying what I’ve learned is something I do on a daily basis. I’ve been taught how to calculate the maximum speed of a falling object, but you don’t see me dropping things of my roof for fun. I apply important aspects to my life to gain leverage over my competition³. I think learning how to invest is much easier than actually throwing your hard earned money into investing. This is a fear you must get over so you can be a financially independent one day.

So many of my friends get paid twice as much as me, but they are in four to five times the amount of debt than I am. Am I special or something? No. According to my mother I am, but realistically I’m normal. I’mve just disciplined myself to not spend all my money on depreciating assets. For example: A friend of mine is in debt about $25,000 and realizes that she has a problem. Last week she won $200 in a poker game, and instead of applying it to her debt, she bought a new diamond necklace. I know you, the reader, would never do this, but I have countless stories about personal friends of mine that have an opportunity to get out debt, but end up in more debt after it’s all said and done.

*eFIPO’s Rule* Invest in appreciating assets, and use the cash flow from those assets to purchase stagnant or depreciating assets.

¹College students, 18-35 age groups.
²Parallelogram. I know that doesn’t help much sorry.
³Other young adults in my situation. College graduates and young professionals.

Comments(2)

I’m hoping everyone had a wonderful Christmas. Christmas is always a great time to show some people how much you appreciate them with a gift that requires some deep thinking. This year my father and mother or “Santa” purchased me “Why We Want You to be Rich“audio CD by Donald J. Trump, Robert T. Kiyosaki. Even though there were many mixed reviews about this book (mostly negative) there’s a ton of great information in the book. First thing that I loved about it was the topic of financial education. Financial education should be taught at every school in America. It amazes me that someone can learn how to become a doctor and still not know how to balance a check book.

Second thing I liked about the book is its controversial topic of social security and Medicare. Because both of these authors are so popular they can spread an unpopular message and make it a hot topic. I like the fact that they think “gimmies” are the reason why America is failing. Right now, I’m reading the book Atlas Shrugged; which revolves around the notion that socialized programs makes people lazy and unsuccessful. I’m a total believer in reforming our social programs in the U.S. because they are designed to motivate laziness.

Third topic that I liked about the book was fact it wasn’t an investment book. When I originally read Rich Dad, Poor Dad, I was kind of disappointed that it didn’t really teach me how to become rich. All it taught me is to think outside the box and not to become a corporate robot. All of Robert T. Kiyosaki books are educational and motivational references. They are not “how to become rich” books, but more on the lines of “what knowledge do rich people have”books. The line that they hammered in my head throughout the audio book is “You can give a man a fish and he eats for a day. You can teach him how to fish, and he’ll not go hungry the rest of his life.”

So instead of just reading all the negative reviews about the book, decide for yourself and either buy the book or audio CD’s. In my eyes it was an interesting book.

Comments(0)

Here’s a great debate that I am having on Facebook about FairTax and why personalization of retirement planning is a good thing. What do you think?

“Some ASPECTS of the plan (FairTax) would be beneficial to young investors (the un-taxing of capital gains). Hell, some aspects of the plan will be good for crack heads too (they’ll get 200 bucks a month to buy crack with)

But overall, the main beneficiaries will be those who currently shoulder the vast majority of the tax burden. I don’t have to tell you who that is.”

Me- Extremely true, but lets just pretend you want to be rich in life and you have two options in getting there. One: thru a tax deferred account, or second: a tax free growth account?

If everything was like one big Roth IRA, without the parameters, there would be a lot more investors and a ton more rich people.

I believe in the youth becoming rich, not staying in Mediocreville. With an establishment of tax free earnings potential I could care less if they increased the tax to 30%; which I believe they should increase it by that figure to kick down the deficit that Bush and posse put us in.

“It IS effectively 30%, a 30% price increase to the consumer anyway

you may be willing to shoulder that burden because you can see how to make more money off of it. I’m worried about the millions of middle class families working two jobs just to get by that don’t know jack about investing but sure know they’ll have to pay $2.60 instead of 2.00 every time they buy a gallon of milk…. and everything else”

Me- One reason why our tax system is so flawed is because we worry too much what is happening now and not later. If people started to worry about our generation and did a long term reform tax bill it would be fine. I believe that the fair tax is that kind of reform. Bringing things to a simple way to get things done.

Middle class families working 2 jobs…. well extremely easy thing to resolve that. Most families are in debt. Why is that? Because they spend way more money then they earn. They’ve usually done poor decision without consulting professionals before hand. I’ve been relying on myself for a long time and I have suffered some financial hardships, but I usually mold my life around those hardships; while most of the middle class keep on buying more and more stuff instead of saving and decrease their spending.

What do you think?

Comments(0)

According to a new study conducted by the American Institute of Certified Public Accountants, Generation Y (eFIPO generation, 17-35) are not saving money and are engulfed in debt. Why is this happening? Times have changed. We live in complex world that promotes the need for immediate gratification. Whether it’s the media (TV & radio) or celebrities, we just can’t help but want more.

Americans aged 25-34 had a median net worth of $3,746 in 2004, which is a significant decrease from $6,788 in 1985. Debt accumulation has also increased from $3,118 to $4,733. The net worth figure is also skewed because it doesn’t encompass inflation. The value of $6,788 in today’s dollars would be about ~13,000 (using a 3.7% inflation rate). If I used the savings rate it would be even higher. What does that mean for you? Start saving, spend below your means, and invest in your future. You can’t use the ignorance card anymore. Don’t come up with more reasons why not to save for retirement. Learn from your mistakes and start being proactive.

I know this data seems very frightening, but the eFIPO Generation have a few aces up their sleeves. First, we are the most educated generation in American history. The baby boomers have to retire at some point, and who do you think will fill those spots? Illegal immigrants? Of course not! Second, time is working with us. We are young and we can correct the screw ups that we’ve made over the years. Start to pay down your debt, and use the awesome powers of compound interest and market returns in your favor. Learn your investment strategy and begin building your nest egg.

We don’t have to be the debt generation. We are Generation Y and we have the ability ask “Y not?” Y not be rich? Y not retire young? Y not get involved in politics? We have the ability to break the cycle. It’s up to you if you want to be part of the experience or sit on the sidelines.

Technorati tags: eFIPO, Investing , Politics . Debt.

Comments(13)