McHenry County Blog

In its editorial Thursday, The Northwest Herald is not happy with the number of candidates running unopposed.

“…a sad commentary on the state of our democracy,” the editorial concludes.

Nice to be in agreement.

Commenting on the most obvious omission, the McHenry County Republican Party’s refusal to give Tea Party-inspired Tonya Franklin a chance, the editorial reads,

“The GOP failed to field a candidate to oppose Democrat Jack Franks in Illinois’ 63rd House District despite an unsuccesful attempt by tea party Republicans to caucus in Tonya Franklin.”

The following fiery press release has been received from small business advocate 16th congressional district U.S. Representative Don Manzullo:

WASHINGTON – U.S. Rep. Don Manzullo (R-IL) today said the CEOs of Chrysler and GM are using the bankruptcy system to reduce consumer choice and drive up their vehicles’ costs by cutting dealerships, eliminating competition and creating monopolies among their brands. In the process, they are destroying the lives and businesses of thousands of auto dealers and their employees.

Manzullo, who previously called for GM, Chrysler and the President’s auto task force to rescind the 1,889 forced closures of dealerships, was outraged by testimony of the automaker CEOs before the Senate Committee on Commerce, Science and Transportation earlier this week.

The CEOs don’t want consumers to shop for their cars among competing dealers.

When questioned, they said their decisions to pull the franchise licenses from the dealerships were necessary to their survival because the multitude of locations forces dealers to uncut one another, driving down a vehicle’s residual value.

The statements were incorrect because it costs car manufacturers nothing to have multiple dealers: the manufacturers just don’t want competition, and their whole goal is to drive up prices.

“The American people need to know why — at a time American workers are losing their jobs in droves – the CEOs of GM and Chrysler and the President’s auto task force think it’s a good idea to unnecessarily put another 150,000 Americans on the unemployment lines,” Manzullo said. “All this will do is reduce competition and increase the price of GM and Chrysler cars and trucks for consumers, putting them at an even greater competitive disadvantage with the other auto companies.”

Unbelievably, Chrysler gave its targeted dealers less than a month to clear all its inventory and wind down operations.

On Tuesday, June 9, the 789 Chrysler dealers will lose their franchise agreements and ability to offer dealer incentives and financing.

In a letter to the President and the GM and Chrysler CEOs, Manzullo has requested a 60-day extension to allow the targeted Chrysler dealers more time to wind down operations.

Furthermore, Manzullo is concerned with the June 12 deadline surviving GM dealers have to sign a new contract that trumps state franchise laws and waives their rights to appeal future GM decisions.

“Many of these dealers represent several generations of hard-working small business owners who have given so much to their employees and their communities over decades of service,” Manzullo said.

“It’s horrible that GM and Chrysler can work a deal with the President’s auto task force to shut down these family businesses, send their employees to the unemployment lines, and destroy their legacies. This shouldn’t happen in the United States of America.”

Instead, the Administration and Congress should be working on legislation to re-start auto manufacturing and auto sales. Manzullo introduced legislation earlier this year to give Americans a $5,000 voucher to purchase a new vehicle, stimulating auto sales and manufacturing, re-starting the supply chains, and putting millions of Americans back to work. The New Automobile Voucher Act of 2009 (HR 1606) would provide a one-time, $5,000 electronic voucher from the U.S. Treasury at the point of sale of a new vehicle through the end of 2009.

The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16 million in 2007 to 13 million in 2008 to a projected 8 million in 2009 has been one of the leading causes of America’s economic downturn and huge job losses.

The teachers union in Huntley is saying that salaries are not competitive.

The Huntley Education Association points to salaries in Unit District 300, east of Huntley and based in Carpentersville, while ignoring those in Unit District 200, immediately north in Woodstock.

Convenient selection of comparables, I’d say.

Every year the State Board of Education reports on supply and demand for teachers.

So, what’s it say?

Is there a shortage of teachers?

For lots of categories, the answer is “Yes.” Go down to page 20 of the paper version of the report (page 29 of the electronic version).

I have reproduced the top of the table, where the most needed teachers are listed, and the bottom, where there are surpluses:

If the lines are too small to read, click on the images and they will enlarge.

Those areas with surpluses are

Physical education
English – language arts
Social Science, and
Standard Elementary Instructor

Half of Huntley’s school teachers are elementary school teachers.

Clearly there is no shortage in that market place.

Only 2% of school districts report any shortage of regular grade school teachers.

48% have a surplus, which this report calls an “overage.” (Don’t you love “education speak?”)

And the situation is going to get worse from the teachers’ point of view at least until 2011 as enrollments plunge.

From this, anyone who has taken Economics 101 can figure out that the salaries of elementary teachers do not have to be raised. There are many more than enough ready to take those jobs.

On the other hand, all sorts of special education teachers are in short supply.

As are bilingual, Spanish and math, science (near the top of the chart, but not reproduced here).

While the job situation for high school teachers is not as bad as for those who teach elementary school, the downward student trend line is merely delayed a few years.

So what might that mean to Huntley School District Board 158?

I’d suggest it means that grade school teachers should be in a poor negotiating position.

But, since they probably dominate their teachers’ union, they can demand salaries as high as high school teachers, many categories of which are in short supply.

So what is propping up salaries and prices?

It is unions, such as the Huntley Education Association, which is demanding more than 30% raises for all teachers over 3 years and trying to pressure the board of education to cave in.

In other words, a legal monopoly that Springfield has given striking rights to, is artificially propping up prices.

That monopoly in the suburbs is called the Illinois Education Association.

Competitive pricing doesn’t exist when one monopoly union determines the prices of a product for virtually all of the suburban Chicago school districts using a “ratchet up the price scheme.”

The IEA and Huntley teachers can’t be accused of collusion.

When there is a virtual monopoly, there is no one else to collude with.

The best job of education the IEA teachers’ union is doing in Huntley and McHenry County is teaching taxpayers how a monopoly in the suburbs can enforce its will with the threat to strike.

And monopoly pricing is what the State Board of Education report shows.

In the real world, that is, the private sector, those in professions in oversupply would have lower salaries than those where shortages exist.

The teachers union in Huntley is saying that salaries are not competitive.

The Huntley Education Association points to salaries in Unit District 300, east of Huntley and based in Carpentersville, while ignoring those in Unit District 200, immediately north in Woodstock.

Convenient selection of comparables, I’d say.

Every year the State Board of Education reports on supply and demand for teachers.

So, what’s it say?

Is there a shortage of teachers?

For lots of categories, the answer is “Yes.” Go down to page 20 of the paper version of the report (page 29 of the electronic version).

I have reproduced the top of the table, where the most needed teachers are listed, and the bottom, where there are surpluses:

If the lines are too small to read, click on the images and they will enlarge.

Those areas with surpluses are

Physical education
English – language arts
Social Science, and
Standard Elementary Instructor

Half of Huntley’s school teachers are elementary school teachers.

Clearly there is no shortage in that market place.

Only 2% of school districts report any shortage of regular grade school teachers.

48% have a surplus, which this report calls an “overage.” (Don’t you love “education speak?”)

And the situation is going to get worse from the teachers’ point of view at least until 2011 as enrollments plunge.

From this, anyone who has taken Economics 101 can figure out that the salaries of elementary teachers do not have to be raised. There are many more than enough ready to take those jobs.

On the other hand, all sorts of special education teachers are in short supply.

As are bilingual, Spanish and math, science (near the top of the chart, but not reproduced here).

While the job situation for high school teachers is not as bad as for those who teach elementary school, the downward student trend line is merely delayed a few years.

So what might that mean to Huntley School District Board 158?

I’d suggest it means that grade school teachers should be in a poor negotiating position.

But, since they probably dominate their teachers’ union, they can demand salaries as high as high school teachers, many categories of which are in short supply.

So what is propping up salaries and prices?

It is unions, such as the Huntley Education Association, which is demanding more than 30% raises for all teachers over 3 years and trying to pressure the board of education to cave in.

In other words, a legal monopoly that Springfield has given striking rights to, is artificially propping up prices.

That monopoly in the suburbs is called the Illinois Education Association.

Competitive pricing doesn’t exist when one monopoly union determines the prices of a product for virtually all of the suburban Chicago school districts using a “ratchet up the price scheme.”

The IEA and Huntley teachers can’t be accused of collusion.

When there is a virtual monopoly, there is no one else to collude with.

The best job of education the IEA teachers’ union is doing in Huntley and McHenry County is teaching taxpayers how a monopoly in the suburbs can enforce its will with the threat to strike.

And monopoly pricing is what the State Board of Education report shows.

In the real world, that is, the private sector, those in professions in oversupply would have lower salaries than those where shortages exist.