Don’t forgot the Supremes

Not Diana Ross’ girl group, but the nine black-robed justices sitting in Washington, the ones who decided the 2000 election and currently have a decidely conservative, pro-business tilt.

It was easy to do — forget the Supremes, I mean — in the wake of the election of Barack Obama and all the discussion over the Minnesota Senate race and the huge electoral shift.

But conservatives still have an oar in this river (race?) in the form of five justices — Roberts, Alito, Scalia, Thomas and Kennedy — as today’s ruling on cost-benefit calculations and the Clean Air Act shows:

In a defeat for environmental groups, the Supreme Court ruled on Wednesday that the Environmental Protection Agency may use cost-benefit calculations to decide whether to require power plants to make changes that could prevent the destruction of billions of aquatic organisms each year.

The decision affects more than 500 power plants that are collectively responsible for more than half of the nation’s electricity-generating capacity. The plants use more than 200 billion gallons of water from nearby waterways each day for cooling, and they kill vast numbers of fish, shellfish and other organisms in the process, squashing them against intake screens or sucking them into cooling systems.

The environmental agency weighed the costs of making changes to the plants’ cooling structures to protect the organisms against their value expressed in dollars. Considering only the 1.8 percent of the affected fish and shellfish that are commercially or recreationally harvested, the agency concluded that the organisms at issue were worth $83 million.

Requiring the plants to convert to closed-cycle cooling systems, which recirculate water, would have saved almost all the organisms but cost $3.5 billion a year, the agency said. Instead, it ordered far cheaper changes that spared fewer organisms.

The question in the case was whether Congress had authorized that cost-benefit approach in the Clean Water Act, which requires cooling water intake structures to “reflect the best technology available for minimizing adverse environmental impact.”

The United States Court of Appeals for the Second Circuit, in New York, ruled that the agency’s approach was not permitted by the law.

Justice Antonin Scalia, writing for himself, Chief Justice John G. Roberts Jr. and Justices Anthony M. Kennedy, Clarence Thomas and Samuel A. Alito Jr., said the agency’s approach “is certainly a plausible interpretation of the statute” and was thus entitled to deference.

That leaves it up to the Obama administration and EPA Administrator Lisa Jackson to end the cost-benefit practice.

Income taxes, property taxes and politics

Back at the office for this last post from our meeting with Gov. Jon Corzine, a meeting that focused primarily on the state budget and the efforts being made by the administration to deal with falling revenues.

Fred Tuccillo, editor of The Princeton Packet, raised a question about school funding and the income tax, asking whether moving from property taxes to something else to fund schools would need to happen at some point.

That seems to me to make the most sense, but the governor said “it might be prohibitive to do that” because much of the cost of that change is likely to fall on the middle class. He said that about 40 percent of all income taxes collected in New Jersey already comes from the top 2 percent of taxpayers, meaning that it would be “very hard to do taht without changing the tax rates that middle-class people pay.”

He acknowledges the regressive nature of the property tax, saying that his commitment to rebates for lower- and middle-class New Jerseyans was designed to “lean agaisnt the regressivity of the property tax system.”

His argument, essentially, was that the increase in income taxes that the change would create for middle-income folks would be a hardship for them and not be politically pallatable.

But you have to wonder whether the decrease in property tax bills would offset the increased income taxes, as seems likely. If, as everyone says, about two thirds of local property taxes go to schools, then moderate to middle-income homeowners could save somewhere in the neighborhood of $4,000 to $6,000 in property taxes, if not more. How much would the shift to income taxes cost the same household?

Hospitals health care and reform

Hospital closings are a direct result of the failure of healthcare systm, he says.

The state was “over-bedded” five years ago, but now is lean. The state government will fight additional closings.

“I heard Ted Kennedy say” yesterday during a hearing that “we have a 'sick-care' system, not a healthcare system.” No preventative care, too many people using emergency rooms, which are more expensive and less effective for long-term health.

Consider this another argument in favor of a healthcare overhaul.

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Pension confusion: Still a tough sell

The governordoesn't see the pension deferral as an issue for towns next year, but it remains likely that towns will have to find revenue to offset what will be viewed as new spending in next year's budget.

It is similar to what has happened over time at the state level — to make up the shortfall, the state needed to cut spending elsewhere or increase taxes.

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Cutting the budget

“I don't know what other state has cut absolute dollars year over year. I don't think you can continue to spend into these kind os declines in revenue.”

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