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Wednesday, January 19, 2005

Education Failure - Shoot the messenger?


Gov. Granholm - Schools Superintendent Watkins
Photos from State of Michigan Website

The Detroit Free Press reports:

Gov. Jennifer Granholm on Tuesday said state Superintendent of Schools Tom Watkins should resign, calling him an ineffective education leader.

In a Free Press interview, a miffed Granholm said Watkins reneged on an agreement last May to leave at the end of 2004. She said on Jan. 7 that she asked him again to resign, through her education adviser.

Instead, Watkins has dug in his heels, she said, hoping to muster support from the state Board of Education. The board has sole power to hire and fire the superintendent, who heads the Department of Education and is charged with carrying out policies set by the eight-member elected board.

"He needs to resign for the good of the state board, for the good of public education," Granholm said, in a reversal of her public comment last week that Watkins was a "valued member" of her cabinet.

"The simple reason is he is not providing effective leadership in one of the most critical departments in state government."

The board last week tabled action to extend his contract. Six months ago, the board gave Watkins a glowing evaluation.

The Detroit News editorial included the following:

Some of Watkins' ideas are better than others. But he's absolutely right in suggesting that the state's public education industry is whistling past the graveyard by refusing to open itself to radical reform in the face of dwindling resources.

Watkins ruffled feathers last month with a nine-page report, "Structural Issues Surrounding Michigan School Funding in the 21st Century."

Here are a few of his thoughts:

• Build common-sense solutions to education problems that taxpayers are willing to pay for.

• "We must ask ourselves what we are willing to do to redirect our finite resources and optimize support for our core mission of teaching and learning."

• "We need to right-size our public education system to optimize resources..."

• "A nonpartisan effort must result in development of a shared vision and common agenda that puts the needs of children and schools above all else."

• "A new approach will require everyone to let go of deeply entrenched constraints and the 'we've always done it this way' mentality."

• "Action is preferable to appointing committees and task forces and holding meetings" though input from concerned parties will be required.

That last item no doubt miffs aides to Granholm, who has been criticized for appointing study panels and holding stakeholder meetings in lieu of action on a variety of festering state problems, including budget deficits. Last week, the governor did little to dampen stories that her administration had asked Watkins to step aside.

What is effective leadership? Michigan has problems that do not appear to be changing:
  • Failing schools are not improving
  • Budgets are being cut
  • Districts like Detroit are out of control
  • There is little or no evidence that charter schools are doing a better job, academically, than nearby counterparts (let's not compare the best of the charter with the worst of the public)
Granholm has a point. The question is which way should the finger be pointing? Politics is the art of looking well dressed while you are naked.


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FEDERAL RESERVE & HOUSING

SEARCH BLOG: FEDERAL RESERVE for full versions... or use the Blog Archive pulldown menu.

February 3, 2006
Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06. If it ain't broke, the Fed will fix it... and good!
August 29, 2006 The Federal Reserve always acts on old information... and is the only cause of U.S. recessions.
December 5, 2006 Last spring I wrote about what I saw to be a sharp downturn in the economy in the "rustbelt" states, particularly Michigan.
March 28, 2007
The Federal Reserve sees no need to cut interest rates in the light of adverse recent economic data, Ben Bernanke said on Wednesday.
The Fed chairman said ”to date, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation”.

July 21, 2007 My guess is that if there is an interest rate change, a cut is more likely than an increase. The key variables to be watching at this point are real estate prices and the inventory of unsold homes.
August 11, 2007 I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.
September 11, 2007 It only means that the overall process has flaws guaranteeing it will be slow in responding to changes in the economy... and tend to over-react as a result.
September 18, 2007 I think a 4% rate is really what is needed to turn the economy back on the right course. The rate may not get there, but more cuts will be needed with employment rates down and foreclosure rates up.
October 25, 2007 How long will it be before I will be able to write: "The Federal Reserve lowered its lending rate to 4% in response to the collapse of the U.S. housing market and massive numbers of foreclosures that threaten the banking and mortgage sectors."
November 28, 2007 FED VICE CHAIRMAN DONALD KOHN
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," he said.

"Uncertainties about the economic outlook are unusually high right now," he said. "These uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago."
http://www.reuters.com/

December 11, 2007 Somehow the Fed misses the obvious.
fed_rate_moves_425_small.gif
[Image from: CNNMoney.com]
December 13, 2007 [from The Christian Science Monitor]
"The odds of a recession are now above 50 percent," says Mark Zandi, chief economist at Moody's Economy.com. "We are right on the edge of a recession in part because of the Fed's reluctance to reduce interest rates more aggressively." [see my comments of September 11]
January 7, 2008 The real problem now is that consumers can't rescue the economy and manufacturing, which is already weakening, will continue to weaken. We've gutted the forces that could avoid a downturn. The question is not whether there will be a recession, but can it be dampened sufficiently so that it is very short.
January 11, 2008 This is death by a thousand cuts.
January 13, 2008 [N.Y. Times]
“The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.
January 17, 2008 A few days ago, Anna Schwartz, nonagenarian economist, implicated the Federal Reserve as the cause of the present lending crisis [from the Telegraph - UK]:
The high priestess of US monetarism - a revered figure at the Fed - says the central bank is itself the chief cause of the credit bubble, and now seems stunned as the consequences of its own actions engulf the financial system. "The new group at the Fed is not equal to the problem that faces it," she says, daring to utter a thought that fellow critics mostly utter sotto voce.
January 22, 2008 The cut has become infected and a limb is in danger. Ben Bernanke is panicking and the Fed has its emergency triage team cutting rates... this time by 3/4%. ...

What should the Federal Reserve do now? Step back... and don't be so anxious to raise rates at the first sign of economic improvement.
Individuals and businesses need stability in their financial cost structures so that they can plan effectively and keep their ships afloat. Wildly fluctuating rates... regardless of what the absolute levels are... create problems. Either too much spending or too much fear. It's just not that difficult to comprehend. Why has it been so difficult for the Fed?

About Me

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Michigan, United States
Air Force (SAC) captain 1968-72. Retired after 35 years of business and logistical planning, including running a small business. Two sons with advanced degrees; one with a business and pre-law degree. Beautiful wife who has put up with me for 4 decades. Education: B.A. (Sociology major; minors in philosopy, English literature, and German) M.S. Operations Management (like a mixture of an MBA with logistical planning)