Coyote Blog

Camp Arizona has put out its list of the top 10 campgrounds in Arizona.  My company runs three of the top five  (#2 Christopher Creek, #4 Cave Springs and #5 Manzanita).

OK, I am not a foodie.  I enjoy good food, but have never really appreciated sophisticated food or food that takes hours of preparation.   The steak on the grill is at least as appealing as the veal dish that took all afternoon to put together.

I know other bloggers often publish recipes.  If I were to do so, it might look like this (from an, unfortunately, actual experience)

1 bowl of Cap'n Crunch

Substitute 1/2 cup cheap vodka for milk

Preparation notes:  Never, ever do this again

That being said, we had the opportunity to have a world famous chef and writer, Hugh Carpenter, over to our house last night.  Hugh is a friend of my wife's from his summer cooking school and was kind enough to help us host a dinner party for some friends when he was in town in exchange for his room and board.   The fun part was he agreed to whip up a dinner with whatever we had in the house, which was pretty amazing.  Sort of an Iron Chef Arizona, with everything as the secret ingredient.   I would still be agonizing over how many teaspoons are in a tablespoon in the first recipe item in the time he whipped up a couple of sauces and some appetizers.

Here is Hugh with my wife.  Our guests are chipping in to help make the wontons  (Hugh actually is a big believer in this, and often advocates getting the guests to chip in on the preparation like this - its fun, a great icebreaker, and reduces pre-party stress on the host.

The list of folks Hugh has cooked for is amazing.  I find his cookbooks to be easy and down to earth and have good food in them.  They are here, and he has a new book entirely dedicated to chicken wings which may actually get me in the kitchen.

What people like my wife who are really into cooking really rave about is his cooking school in the Napa Valley.  There is a lot of cooking and wine drinking, of course, but the venues are great, often in the private homes of many of his friends and associates.  Highly recommended if you are into that sort of thing.

Oh, and since I am foodblogging, I guess I should tell you about our meal.  We had these pork wonton thingies in some sort of brown sauce.  We had black cod in some kind of chutney stuff with some sort of mixed rice thingie and this other vegetable deal.  We drank some sort of white wine except when we were drinking some sort of red wine.

Rachel Ray, watch out.

PS-  OK, I was actually able to introduce Hugh to a new food product.  He asked what I usually made the kids for breakfast, and I said "spray pancakes."  He had never heard of this, and so I proudly showed him my spray can of pancake batter (from Whole Foods, no less).  I couldn't tell if he was shocked or amazed.

Via the Arizona Republic, from a deposition by Sheriff Joe Arpaio:

Arpaio says he was not well versed on the Fourth Amendment to the U.S. Constitution, or its counterpart in the Arizona Constitution, which prohibit unreasonable searches and seizures.

Yeah, no kidding.  This is just kind of bizarre.  I get the whole ghost-writer thing, but at least Obama actually seems to have read the book that was ghost-written for him:

Maricopa County Sheriff Joe Arpaio has not read the book he co-authored in 2008, which includes information on Arpaio's philosophy on America's immigration problem and how to cope with the nation's porous borders.

Arpaio's lack of familiarity with the book, "Joe's Law - America's Toughest Sheriff Takes on Illegal Immigration, Drugs and Everything Else That Threatens America," was among the revelations to emerge from a nine-hour deposition the sheriff gave as part of a racial-profiling lawsuit filed against the Sheriff's Office.

Update: There is a spin in the article that Sheriff Joe is just a delegator, like any good corporate executive.  I am generally considered to be far more comfortable with delegation than average, and even I know a lot more about my business than Sheriff Joe does about his.    Part of the reason is likely that I don't spend 95% of my time on media and PR events to boost my name recognition at public expense.  And you can be dang sure that I know certain pieces of legislation that are important to my business, like the Fair Labor Standards Act and the Service Contract Act, better than my lawyers.

For the last year, I have watched in total frustration as Arizona State Parks threaten closure after closure to fix budget problems.  This is, of course, when they are not begging for new taxes to be dedicated to them.

For those who don't know, my company is in the business of privatizing public recreation.  At the moment, we are so swamped with requests from public authorities to keep parks open that I don't really bother going out and seeking new business.  But it is frustrating for me as an Arizona resident to know that many of these parks could remain open  (and user fees kept reasonable) under some sort of private concession management.

I know this may seem weird to you given that I work so much with governments, but I have no idea how to lobby government.  Unlike, say, John Murtha related enterprises, we get all the business we need simply responding to inquiries from public authorities who need help and submitting proposals in response to RFP's**.  In fact, if I had to lobby to keep the business running I would shut it down first.

So I have had no idea how to approach those involved in the Arizona parks debate to tell them there are alternatives.   I get frustrated each day as I see folks in the parks organization tell the media that private management would not work because none of their parks would make good business opportunities, when I know for a fact this is not true  (I operate stores in two of the parks and am familiar with several others, and have sent them unsolicited management proposals to run these parks -- again, I am not necessarily seeking the business, but I want to give the lie to the statement that private companies would not be interested).  Interestingly, two of the largest private recreation managers in the country are located in the Phoenix area, and neither of us have ever gotten a media call on this issue.

Of course, I am not completely naive.  I know there is a tried and true kabuki dance here where parks departments threaten to close down the Washington Monument in a bid for public sympathy that will either deflect budget cuts or spur new taxes.  I also know that state parks directors have sworn a blood oath together never to let private concessionaires run whole parks, even if the parks have to be shut down  (our company runs whole parks for folks like the US Forest Service and TVA, but most state parks only let concessionaires run the store or marina, not the whole park).  I know this anti-private law of omerta exists, because our company once sponsored a breakfast at a national state parks directors conference and we were in the room (unknown to the speakers) when this no-private-company discussion was held.

I have called and sent letters to nearly everyone in the state, but have not gotten any response.  To assuage my frustration that no one is even reading them, I will reprint one here just to say that someone, even if it is a reader in Australia, actually looked at it:

Janice K. Brewer, Governor;   Reese Woodling, Chair, Arizona State Parks Board; Maria Baier, State Lands Commissioner; Rene Bahl, Arizona State Parks Director

Many of the state parks currently proposed for closure could easily be kept open to the public under private concession management.  I run one of the larger operators of public recreation concessions in the country, and our company is the current store and marina concessionaire at Patagonia Lake State Park and Slide Rock State Park.  I know from experience both with public recreation in general as well as with Arizona State Parks that these parks (as well as many other in the ASP system) could easily be operated by a company like ours, retaining high quality recreation options for the public while converting a liability for the state into a financial asset.

For years we have urged the management of Arizona State Parks to consider private operations of more than just the stores in these parks.  For example, we operate whole parks turnkey for the US Forest Service, the National Forest Service, the Tennessee Valley Authority, the United Water Conservation District (CA), and the Lower Colorado River Authority (TX).  By operating the park to high quality standards but at a lower cost, we are able to make a profit for ourselves and pay an annual rental fee (usually contracted as a percentage of sales) to the government authority that owns the park.

I find it tremendously frustrating that the private concession option has not even been put on the table for discussion, or gets sloughed off with tired clichés such as "private companies would just put up a McDonalds."  When we operate any public park, we operate under a strict and detailed operating agreement, typically running over 100 pages, that sets procedures for everything from bathroom cleaning frequency to approvals for fee changes.  We operate busy day use facilities such as Grasshopper Point and Crescent Moon along Oak Creek in Sedona side by side with Arizona State Parks at Slide Rock, and we maintain these facilities in at least as good a condition, while keeping fees to $8 (vs. $20 at Slide Rock) and still paying rent to the USFS for the concession.

I am not looking for any special consideration for our company.  I know such contracts must be competitively bid and we don't shy away from such competition.  However, I know that the management of Arizona State Parks has, for whatever reason, been resistant to the idea of private concession operations of entire parks, and I was afraid that this option may not have been presented to you as a viable alternative to closing these facilities.

I would be happy to discuss private concession management any time with you or your staff.

Sincerely,

Warren Meyer
President

Postscript: Interestingly, the most open state parks director to these ideas was Ruth Coleman in California.  Contrary to what one might expect, California State Parks is actually one of the more innovative and creative parks organizations out there in terms of privatizing certain functions and seeking private capital  (Texas, on the other hand, is one of the worst --  go figure).

Ms. Coleman was very supportive of our making investments in California Parks (example:  Cabins here) where no other park system has been so open.  She was nice enough to allow our company to sit on a panel of folks looking at potential solutions to the California Parks budget issues.  But her organization was openly hostile to any private participation, and essentially said they would rather see parks closed than remain open under private management.   For example, here was probably the most supportive comment we got:  "Well, I guess I could accept some private companies in the parks as long as we didn't allow them to make a profit."  Again, that was the least hostile statement.

**Footnote: The typical lifecycle of this business is that a public agency runs to us begging to take something over to keep it open.  We do so on a quickly negotiated contract, and then find ourselves spending a ton of money to fix all the deferred maintenance problems left by the public agency.   About when we finally get the place cleaned up and public trust restored and finally have the prospect to make a little money at the location, the public agency decides it is time to seek competitive bids.  Everyone who refused run the place when it was a mess now come out of the woodwork to bid on running the facility now that its fixed up, several of whom seem to have oddly close relationships with senior officials of the public agency.  We bid, some of which we win and some of which we lose.  If we win, we get to enjoy the fruits of our labor.  If we lose, we shrug and try again.

I missed this in the original discussion of the stimulus.  I was one of the first to point out that most of the stimulus was earmarked for maintenance of state government budgets rather than the infrastructure projects people thought they were getting  (here and here).  But I missed this part of the law, which basically made acceptance of these funds a suicide pact for many states:

Worst of all, at the behest of the public employee unions, Congress imposed "maintenance of effort" spending requirements on states. These federal laws prohibit state legislatures from cutting spending on 15 programs, from road building to welfare, if the state took even a dollar of stimulus cash for these purposes.

One provision prohibits states from cutting Medicaid benefits or eligibility below levels in effect on July 1, 2008. That date, not coincidentally, was the peak of the last economic cycle when states were awash in revenue. State spending soared at a nearly 8% annual rate from 2004-2008, far faster than inflation and population growth, and liberals want to keep funding at that level.

A study by the Evergreen Freedom Foundation in Seattle found that "because Washington state lawmakers accepted $820 million in education stimulus dollars, only 9 percent of the state's $6.8 billion K-12 budget is eligible for reductions in fiscal year 2010 or 2011." More than 85% of Washington state's Medicaid budget is exempt from cuts and nearly 75% of college funding is off the table. It's bad enough that Congress can't balance its own budget, but now it is making it nearly impossible for states to balance theirs.

These spending requirements come when state revenues are on a downward spiral. State revenues declined by more than 10% in 2009, and tax collections are expected to be flat at best in 2010. In Indiana, nominal revenues in 2011 may be lower than in 2006. Arizona's revenues are expected to be lower this year than they were in 2004. Some states don't expect to regain their 2007 revenue peak until 2012.

So when states should be reducing outlays to match a new normal of lower revenue collections, federal stimulus rules mean many states will have little choice but to raise taxes to meet their constitutional balanced budget requirements. Thank you, Nancy Pelosi.

Apparently a couple of states (no surprise, Texas is among them) were smart enough to turn down some of the money.

Another on trying to balance water supply and demand in the state with only a one-sentence mention of water rates.

Over the years, some communities have tried to reduce demand. Years ago, Tucson devised a set of water rates that escalated steeply with use. As a result, many people simply stopped planting grass or other thirsty landscaping.

Amazingly, it is the only thing in the whole article that has been demonstrated to work, but still the author leans towards land-use planning and goofy dictats like rainwater harvesting rather than raising rates as a way of managing water supply and demand.

I wrote a lot more here, including an analysis that showed Phoenix has some of the cheapest water rates in the country.

I have said for a while that Homeland Security is the worst possible job for any politician who actually wants to have a future political career.  The job is all downside.  I wrote a year ago:

Yeah, I know it is not a done deal, but the rumors are that our governor Janet Napolitano will be Obama's choice for Homeland Security.

On its face, this both makes a ton of sense, and simultaneously is odd.  It makes sense because Napolitano is one of those rising Democratic stars who get special love in part for not being white males.  It is odd because pulling her up to Washington would, by law, pass the governorship for the next two years to the Republicans (the Secretary of State completes the term, and she is a Republican).  It also strikes me as odd because I think Homeland Security would be an absolutely awful platform for launching a run for higher office.  That job has no upside "“ it is all downside.

But the final reason in the end that this may make sense can be seen in this table below from Paul Kedrosky on projected state budget deficits as a percentage of state revenues

Arizona is almost in as bad of shape as California, and California is a disaster area.  So the financial chickens are about to come to roost here in Arizona for the drunken spending spree the state has been on, presided over by Napolitano.  To preserve her from going to the Gray Davis Memorial Retirement Home for Failed Governors, Obama is likely to beam her up to Washington.

As I wrote before, I don't think Napolitano would normally have accepted this job had she not been desperate for a face-saving way to escape Arizona mid-term.  But after recent events, I think it is highly unlikely anyone else on an elected-official career track will take this job.  Look senior FBI or CIA types on the future.

Update: More here from Expresso Pundit.

So in the next six months--probably much sooner--Janet will move on and the President will pick an obscure, non-political, retired General who is clearly qualified and above reproach.

These guys have totally lost it. OK, they have always been bonkers, but they have finally lost their ability to paper over their nutty paranoia and quest for power in the media.  Remember I told you the other day that Arpiao and Thomas keep filing wider and wider criminal conspiracy charges against their critics.  Basically anyone who criticizes them or seeks to keep their power limited within Constitutional boundaries is a criminal in their eyes.

Maricopa County Attorney Andrew Thomas called for investigations into the chief prosecutors of two neighboring counties on Thursday because they publicly criticized him and Sheriff Joe Arpaio earlier this week.

Yavapai County Attorney Sheila Polk and Pinal County Attorney James Walsh sent separate letters to the Arizona Republic, criticizing what they called "abuses of power" by Thomas and his close ally, Arpaio.

Polk, a Republican who described herself as a passionate believer in limited government, accused the two men of "totalitarianism" and said they have become "a threat to the entire criminal-justice system" because of a series of a investigations they have launched against their foes.

In recent weeks, Thomas and Arpaio have announced more than a dozen criminal investigations into public officials who have criticized them in the past. The pair has said their fellow Maricopa County officials are engaging in a massive conspiracy to obstruct justice and limit their power. The investigations have resulted in criminal charges against two elected officials and a judge.

Now, Thomas wants a former state Supreme Court justice to investigate his neighboring prosecutors as part of what he calls "an orchestrated campaign to pressure law enforcement in Maricopa County to drop charges against influential criminal defendants and suspects."...

In his request to McGregor [PDF], Thomas ... accused the other prosecutors of essentially breaking the law by criticizing him and the sheriff. He said the pair violated rules for attorneys in Arizona, as well as tainted the pool of possible jurors in the ongoing cases....

In his request for an investigation into the comments, Thomas alluded to a supposed campaign to enlist these attorneys "and possibly other third parties" to criticize him and the sheriff.

Arpaio is the same paranoid who cost the County hundreds of thousands of dollars when he demanded extra security because he believed himself to be an assassination target.

If it wasn't so overdone, I would do another Downfall mash-up on this for YouTube.

Can't say that I really care, but I find all the quivering excitement here hilarious:

If Tiger Woods winds up in Wickenburg for rehab over his apparent sexual compulsion and pill addiction, local businesses are ready.As the rumor mill seems to suggest, Tiger would be checking into the Meadows Rehabilitation Center in Wickenburg just after New Years, and despite being a little late in covering Tiger-gate's Arizona connection, the Arizona Republic reports today that local businesses are gearing up for golf's greatest Lothario.

For example, the owner of Sundance Pizza in Wickenburg, Bob Halsey, has already placed a sign in front of his store that says "Hey, Tiger, we deliver."

Chances of Tiger ordering some of Halsey's take-out are probably unlikely -- perhaps a more suiting sign should say "hey, droves of paparazzi, we deliver."

If Tiger does end up in Wickenburg, the number of paparazzi that will descend on the tiny town is certain to cause a boom for the local economy. Some tabloids are even rumored to have placed journalists in the rehab center themselves, in order to get the real dirt on the golf great.

Paying lots of money to stop having sex with hot women seems an odd thing to do.  From my experience he could take up playing Dungeons and Dragons and have the same result for a lot less money.

It is not uncommon for certain shady dealing to go on for years, with a small group of critics but never really breaking out into the media.  We skeptics have been criticizing climate scientists for years for various problems with their temperature indexes and historical temperature reconstructions, but never really got traction until the CRU emails were made public, and then there has been a real firestorm of media attention.  Criticisms that never got much traction before are now being actively investigated.

I am hoping that we have a similar situation with Sheriff Joe Arpaio and County Attorney Andrew Thomas.  The story is so wacky it simply defies easy description, but Arpaio and Thomas have been pursuing a number of corruption probes against their bosses in the County government.  All well and good, except for the funny fact that the targets of the probes all seem to be historic critics of Arpaio and Thomas, who have brought out their biggest guns for the one Democrat on the County Council (Arpaio and Thomas are both Republicans).

Both these men have  a history of indifference to civil liberties.   When Arpaio is not busy arresting folks for breathing while Mexican (he once managed to make a crime sweep through the 99% Anglo neighborhood of Fountain Hills and arrest 75% Mexicans), he likes to haul folks off to jail whose only crime is speaking out against the Sheriff .   He arrested (with Thomas's help) newspaper reporters and editors who wrote critically of him.  This is a man who in his paranoia invented an assassination plot (against himself, of course) and got the city to spend $500,000 protecting him.  If his deputies want to see a defense attorney's working papers, they just take them.  If he can't get a judge to release computer records, he has his posse storm into the County computer center and take it over at gunpoint.

Most recently, Thomas and Arpaio wanted a judge who has handed them a number of court losses removed from a certain case.  To make that happen, Arpaio and Thomas bizarrely charged the judge and numerous other county employees in a giant RICO case, a case attorneys are still laughing about because it was so transparent and shoddy.  When that didn't work, he charged the judge with felony bribery, apparently on the interesting theory that getting a new, updated court house building was effectively a bribe to the judges working there.

It gets much weirder even than this, with Arpaio's stealing documents from a defense counsel in court (caught on video) with this same judge holding Arpaio's deputy in contempt for the action and then the sheriff's deputies essentially going on strike at court, refusing to bring in prisoners.

But after years of fawning, positive publicity as "Americas Toughest Sheriff," the dam may finally be breaking.  When the AZ Republic finally covers it, you know the situation has to be bad:

Hundreds of attorneys gathered on the courthouse steps in downtown Phoenix to protest Thomas and Arpaio's public campaign against public corruption.

LOL, I have a picture of these guys with suits and holding placards.  Anyway, this was a real blow:

And, in a scathing letter to The Arizona Republic, the Yavapai County attorney

, who previously handled some of Thomas' cases against county officials, blasted the prosecutor and sheriff as "a threat to the entire criminal-justice system."

Oops, so much for the respect of your peers.  Shelia Polk, the Yavapai County attorney (that is a neighboring county) handled the investigations into some of Arpaio and Thomas's early charges against our County officials, so she knows the details of the story.  And she is a Republican, the same party as Arpaio and Thomas:

In her letter, Polk wrote that although Maricopa County isn't her jurisdiction, she can't sit by and watch the abuses from a distance anymore.

"I am conservative and passionately believe in limited government, not the totalitarianism that is spreading before my eyes," she wrote. "The actions of Arpaio and Thomas are a disservice to the hundreds of dedicated men and women who work in their offices and a threat to the entire criminal-justice system."

Polk had stayed out of the legal drama in Maricopa County, and her remarks offer the first insight from an outside law-enforcement official who has some knowledge of the cases Arpaio and Thomas have lodged against county officials.

Arpaio's response was predictable:

Hendershott spoke on behalf of Arpaio. Hendershott said that Polk's office repeatedly failed to issue subpoenas the Sheriff's Office needed.

"It seemed clear to us that this case was being deliberately stalled," he said. "We basically let her know that her work product was ineffective."

This is a constant refrain from the sheriff - anyone who seeks to impose any limit on his power is therefore evil and conspiring to thwart his will.  It comes up time and time again - he simply does not react well when denied a subpoena, or a search warrant, or access to certain information.  If they are not rubber stamping Sheriff Joe's requests, then they must be corrupt.  If he had been honest, his RICO charges would have simply read "they didn't give me what I want."  But there is a reason these third parties are part of the process, and you can see it in Polk's letter:

Polk said she worked with the Sheriff's Office on the cases for the next six months, then returned the cases to the Maricopa County Attorney's Office.

In Polk's letter, she wrote that she was "happy to remove myself from the cases and from contact with Sheriff Arpaio. My discomfort grew daily and my role in restraining potential abuses of power increasingly more difficult."

Conor Friedersdorf at Andrew Sullivan's blog has a number of comments from Arizona readers about why, despite all his nuttiness and outright hostility to civil rights, Joe Arpaio just keeps on getting elected here in Phoenix.

One sample:

...Arpaio is media-savvy, and picks his enemies well.  By this I don't mean his foes in county government or in the media, I mean the groups on whom he concentrates the resources of his office.  Last night, as every year about this time, all of the TV stations showed footage from this year's deadbeat dad roundup, along with the smirking Sheriff talking about how terrible it was that kids were going to have a lousy Xmas because these deadbeat dads hadn't been paying child support.  He also goes after animal cruelty cases with a vengeance.  I think he has a finely-tuned sense of which "others' are particularly viewed with scorn by his target supporters, and goes after them with a vengeance.  There is no doubt that many Maricopa county residents feel safer as a result of his policies, but also equally that his policies are never designed to impact negatively those supporters who see themselves as law-abiding (and hence won't ever be in jail), are white (and hence will never be racially profiled), and don't fit into any of the other classes that he has singled out for opprobrium.

On a side topic, one commenter does take this out of context:

But let's not forget we're in a state that effectively voted by referendum NOT to honor Martin Luther King Jr. Day in the 90's

The issue as I remember it was not of honoring Martin Luther King Jr. but of adding another paid holiday for state workers.  As I recall, Republicans readily agreed to a state holiday for MLK as long as government workers gave up one somewhere else on the calendar, so it wasn't about MLK per se but about whether government employees should be allowed an extra paid day off.

Via Valley Fever:

There is an unwanted phenomenon happening in California, and Arizona is being pegged to clean up the mess: Chihuahuas -- lots of them.

California is seeing an influx of chihuahuas popping up at animal shelters and it's becoming too much for the state to handle.

Rather than take these unwanted pooches out back, and deal with them Old Yeller style, California shelters are pawning these rat-dogs off on the Grand Canyon State....

Shelter officials are associating the rise in the abandoned pooches to celebutards like Paris Hilton, who popularized the use of animals as fashion accessories. When the reality of having to care for the dogs kicked in, it proved to be too much for a lot of wanna-be heiresses and they dropped the quivering canines off at animal shelters.

According to California shelter officials, more than 100 of the dogs have been driven to other states, Arizona included, for shelters there to deal with because in most states, abandoned chihuahuas are hard to come by.

Instead of stopping human beings from seeking a better life in the United States, maybe the Minutemen can be convinced to fight a real border threat.

This is kind of scary -- shoplifters denied trial by jury.  A judge seems to think its too much of a hassle to do follow that old Sixth Amendment thingie. We've gutted the rest of our constitutional protections, why not jury trial too?

An Arizona appeals court is set to issue a ruling today about whether people accused of shoplifting are entitled to a jury trial. The decision stems from a Peoria woman who got pinched for shoplifting and was wrongly denied a jury trial by a Maricopa County Superior Court Judge last year, CBS 5 (KPHO) reports.

Because the penalties for shoplifting are often relatively minimal -- probation, or community service -- the judge seemed to think calling in a jury wasn't necessary and said a jury trial for shoplifters was open for debate.

We got over 2 feet of snow in Flagstaff, with six foot drifts, the most snow we have ever gotten this early in Northern Arizona.  We are opening our Flagstaff snow play area today.

Being a red state, maybe if AZ fails before CA, it will be less likely that Congress and the Administration will do some sort of bailout to head off local accountability.  It sure seems we might be able to pull off an early failure:

Arizona state government has managed to blow through a $700 million loan from the Bank of America in less than a week, and that wasn't even enough to keep things going.According to Treasurer Dean Martin, his office had to dip into internal sources to come up with the extra $73 million the state needed just to keep the lights on.

"Government spending in Arizona is out of control. We are more than three-quarters of $1 billion in the red for daily operations," Martin says. "As we predicted in our forecasts, just one week after setting up essentially the largest line of credit in state history, the state of Arizona has maxed it out. The governor and Legislature need to [rein] in excessive spending; we can no longer afford to continue spending more than we make."

The state is currently about $1.6 billion in the hole, and the $700 million loan the state spent last week is just the beginning of excessive spending of borrowed money.

From the Arizona Republic:

Phoenix officials said Monday they remain confident Dubai is still a good place to do business, even after the Middle East emirate's investment arm announced it would not be able to pay creditors on time for some of its nearly $60 billion in debt.

"It's just a matter of when business will pick up again," said Community and Economic Development Director Don Maxwell, who has been bullish on the Middle East and Dubai, one of seven city-states that make up the United Arab Emirates. "You just don't know what the timing will be, but it will happen."

Seriously, why are we paying Phoenix government officials to opine on stuff like this, and why is it news?

The two cities have exchanged best practices for wastewater management. Dubai imported 80,000 Palo Verde trees from a Phoenix nursery. And Charity Charms, a Phoenix-based maker of charms for nonprofit groups, received a $13,000 order from a Dubai arthritis support group shortly after the agreement was inked.

Oh, I see now.  $13,000 in charms?  Dubai was practically driving our economy.

For years it has aggravated me that politicians claim the need to make command and control decisions on water conservation, and they run advertisements trying to shame me for my water use, all while the state government has subsidized some of the cheapest water in the country.

This is crazy!   If we are really drawing down reservoirs like Lake Mead and Lake Powell as well as underground aquafers, then raise the price until demand matches a sustainable supply level.  Duh.

But water is one of those commodities like gasoline that politicians love to meddle with prices for populist ends.  So we continue to have cheap water, and as a result we have 1) no incentive to find new sources and 2) no incentive to conserve.  As I pointed out in the earlier post linked above, we here in the desert have water less than half the price of Seattle!.  All while the government pays farmers over $100 million a year to grow water-hungry crops in the Arizona desert, using price-subsidized water.

Well, miracle of miracles, and for the first time in my experience, the AZ Republic actually published an article focusing on the absurdity of water subsidies. The article focuses narrowly on the cross-subsidy of our municipal power and water authority, charging higher electric rates to keep water rates lower.

Unfortunately, this is only a small part of the effective subsidy, for like most of the economically ignorant the Republic focuses only on the difference between the current price and cost (which is about $33 million).  The real subsidy is the difference between the current price and the true market clearing price at a sustainable supply rate (sustainability defined here as the rate that maintains reservoir, both above and below the ground, levels constant or rising over the long term.)  This is a MUCH larger number than $33 million.

The first thing I do when I buy a shower head is make sure that the design has a flow restrictor ring (put in to comply with US law) that can be removed.  First thing I do after I buy a shower head is remove the ring.

If they want me to use less water, then raise the price beyond the ridiculously low prices we have now, prices that clearly do not match supply with demand.  It is not we consumers in Arizona that are draining Lake Powell, it is politicians who price water below any kind of reasonable supply/demand clearing price to gain some incremental love at the ballot box  (also, politicians prefer command and control legislation of the shower head variety to allowing the price mechanism to work automatically).  More here.

For those in Arizona, I will be on the Terry Gilberg show on 550 KFYI talking climate starting at 6:30 or 7:00 to about 8:00.

Rivera has 88 appearances in the post-season with only one blown save.  When he walks to the mound in the World Series, it is usually (in the immortal words of Bill Paxton) "game over man, game over."  But his one blown save is remembered in Phoenix, since it coincided with what is easily the greatest moment in Arizona pro sports history.

I really like our AZ Congressman Jeff Flake -- the libertarian goodness of Ron Paul without the weirdness and connections to racism.  This is pretty funny, from his site (ht:  Radley Balko)

Washington, D.C., Oct 28 - Republican Congressman Jeff Flake, who represents Arizona's Sixth District, today released the following statement regarding his vote against H.Res.784, a bill "honoring the 2560th anniversary of the birth of Confucius and recognizing his invaluable contributions to philosophy and social and political thought."

"He who spends time passing trivial legislation may find himself out of time to read healthcare bill," said Flake.

Via the AZ Republic, the excepting of which will probably bring in all kinds of spam code into this post no matter how hard I try to get rid of it:

Arizona wildlife officials are investigating the shooting death of a prairie dog in southern Arizona.

Apparently the state is irritated because this prairie dog was brought to the state as part of a program to bring more plague-infested nuisance rodents onto our land - on purpose!

The prairie dog was one of more than 100 transported from New Mexico in October 2008 in hopes of reintroducing the indigenous species to southern Arizona.

For years in Arizona we have been told by the state government that we need to subsidize science.  I have never really figured out why my life would be better if scientists lived in Arizona instead of California, but apparently when governors get together and compare their states' penis lengths, this is one of the key topics that come up.  Why we need to subsidize, for example, bio-science in Arizona to keep up with California but folks in Kansas don't need to subsidize, say, awesome golf resorts to keep up with Arizona has always escaped me.  I have always felt that if we just keep taxes low and wait long enough, California is going to blow up and we will collect a lot of the best and brightest with no extra effort.

Well, I am starting to understand why we needed to subsidize bio-science with our Arizona taxes.  We apparently need to do so to ... attract large grants for Federal tax money.  So by subsidizing this sector locally, we built it up enough to attract Federal subsidies.  Great.  Actually we probably did not build up the sector per se, we just built a quality private bureaucracy that had the skills and incentives to write lots of successful grant applications.  Apparently there is still work left to do, though, as other states have invested in even larger grant-magnets:

States with strong science bases such as California, Massachusetts and New York, each landed more than 1,000 grants.

Twenty states secured fewer grants than Arizona's haul of 101 awards.

Arizona scientists will study things such as predicting asthma in babies, prostate cancer and the behavioral responses of kissing bugs, which are blood-sucking insects linked to a blood-borne disease that afflicts 11 million to 13 million people in Mexico and Latin America.

Arizona scientists say the batch of stimulus dollars through the NIH is a welcome change from years of stagnant federal funding for scientific research.

"There was no increase in federal funding for cancer research for five years - that was devastating," said Dr. David Alberts, director of the Arizona Cancer Center in Tucson. "Now, I'm encouraged."

Wow - thus we see why government spending grows so much faster than inflation.  Flat spending = devastating.

If I were in academia, the study I would like to do is to try to assess the total value destroyed by state and local governments merely in trying to move businesses and facilities from one part of the country to another.

As a small business owner, a huge portion of my time is spent feeding governments with all the paperwork they demand.  But this year has been twice as bad.  Every local authority we operate in has started mining for dollars.  What this has meant is a whole slew of property "reassessments" that have no basis in reality (e.g. values put on non-existent assets) that I have to spend a lot of my time fighting.  The general modus opperandi is to declare my company owes money for something fictitious, and then make us prove we don't.  Have you ever tried to prove you don't own an asset that doesn't exist?  Think about it.  How would you go about it, short of inviting the assessor out to your property to search for it.

Maricopa County, the county that includes Phoenix where my headquarters resides, has been the worst.  We buy assets for properties all over the country, and have the bill sent to our headquarters.  Often, if a registration is required, we will put our headquarters address on the government registration to make sure we get the renewal paperwork (long experience is that if anything gets sent out to an address in the field, it is lost).  The concept that an asset might be in location X but the paperwork should be sent to location Y is a really, really hard concept for a lot of state registration authorities to get their head around/

This year, Maricopa County has started sending us personal property tax notices for all kinds of assets that have never even existed in this county.  They were bought in state A, shipped to state B, with the bill sent to us here in Arizona.  But the County is in financial distress.  It probably understands that the asset does not exist in the County.  I am sure it knows that I don't, for example, have 24 cabins sitting on the fourth floor of this building, where they have them located.  But they need money.  If they send out enough fraudulent bills, and then tell taxpayers it is the taxpayer's responsibility to prove the bill is wrong, then they will likely get some money.   Yet again, the government is engaging in abusive practices that not private company could get away with for long.

I was pretty calm today on the phone with the assessor until this came up:

Me: Look, these are cabins I bought from a factory in Maricopa County but which were shipped immediately from the factory to California.

Assessor: I don't see where you filed for permission to move the cabins

Me: Excuse me?

Assessor: Your xxxyyy form [I forget the numbers].  You never filed for permission to relocate

WTF?  I know we have problems with declining tax roles, but do I really have to ask permission to move an asset out of the county or state.  What, did I violate directive 10-289?

So beware small businesses.  Your government is mining for dollars -- do not assume that tax bill is correct.

A question has been going around on legal blogs -- "Does a Federal Mandate Requiring the Purchase of Health Insurance Exceed Congress' Powers Under the Commerce Clause?"

My answer is:  Nowadays (not in the original intent) is there anything the Feds can do that exceeds current interpretations of the commerce clause?  In Raich, the Supreme Court decided that a product (marijuana) that was grown in state for personal consumption, like tomatoes in your own garden, and was used legally under state law, can still be regulated under the commerce clause.    As Clarence Thomas wrote in dissent:

Diane Monson and Angel Raich use marijuana that has never been bought or sold, that has never crossed state lines, and that has had no demonstrable effect on the national market for marijuana. If Congress can regulate this under the Commerce Clause, then it can regulate virtually anything and the Federal Government is no longer one of limited and enumerated powers

No kidding.

Unfortunately the theory that this personal use in California could somehow affect marijuana pricing in other states (by growing their own, they reduced demand for out of state weed which might affect prices in Arizona -- again similar to an argument that growing your own tomatoes might affect prices in another state) won the day in the Court.   With the Supreme Court accempting this "butterfly effect" argument  (because truly the demand of one person in a national market is like a butterfly flapping its wings in China and affecting a hurricane in the Gulf of Mexico), anything falls under the commerce clause.