Denny Sanford…. Another Minnesota “Great”

Recently, on a flight back to Minneapolis, I was reading the Delta magazine and came across a special feature on South Dakota.  The centerpiece focused on the extraordinary generosity of Denny Sanford who endowed a major breast cancer research and treatment center.  Appropriately, it was named after his mother, Edith Sanford, who died from the devastating cancer when Denny was only four years old.

With this major gift and numbers of others including those to his beloved University of Minnesota, Denny joins the list of the wealthy who have used their assets to make transformational donations that have a lasting impact on all of us.  We are truly blessed to have Denny Sanford join Bill Gates, Warren Buffet, et al.  They are all pointing the way to responsible and meaningful wealth leadership.  Having come from modest backgrounds they know the value of giving to a society that gave them opportunity.  What a marvelous example of civic virtue.

But reading this story about Denny Sanford does not end here.  Rather it brings back some of my fondest moments when I arrived in Minneapolis to attend graduate school at the University of Minnesota and serve as a counselor at the Chi Psi Fraternity in 1958-59.  Denny Sanford was a member of that group of some fifty young men who had a lasting impact on me.

Their academic talents ranged from average to exceptional.  That would be normal for a large state university.  But what was not normal, at least from my perspective, was the number of students working their way through school, managing all the activities at the fraternity and still participating in meaningful college activities.

It slowly dawned on me that this was a group that truly understood the value of higher education and were willing to work hard to achieve their goals.

Now, as I look back, their entrepreneurial success was no surprise; they were living it every day at the University.  There was no cocooning:  just hard work, perseverance, and teamwork.

Out of that group came some remarkable successes including the founder of a major advertising agency, the world’s leading high-rise architect, doctors, professors, lawyers, dentists, business leaders, developers, and another architect who has achieved local fame for his innovative work in urban design along with a notable federal jurist who established the highest standards in ethics, common sense, and legal knowledge.  One member was an academic All American while starting on Minnesota’s 1960 National Championship football team.  He went on to a highly successful career in law and real estate.

They played lead roles during my service as Governor ranging from developing workers compensation reform to the funding of the arts.  In a sense, they defined the meaning of being a good citizen.  I think it fair to say that all of us learned from the experience of living together, working together, and ultimately, helping each other.  I know that I could never have achieved any political success without them.

But I wonder if all this were not made possible due to an affordable tuition policy at the University of Minnesota.  So many of those extraordinary students came from very average backgrounds and were able to make ends meet by working and frugally managing their finances along with the rigors of academic challenges.

I think we owe that same opportunity to our children so we can benefit from the future Denny Sanfords, etc.

Is that not what American exceptionalism is all about?

The Stadium…. Just a Thought

Last week, I was interviewed by two excellent radio journalists, Dan Barreiro of KFAN and Gary Eichten of MPR, and, obviously, the issue of the Vikings stadium came up.

The issue of sport stadiums has been around for the past 50 years creating all the normal divisions among the public and its political system.  Some believe that the state should keep the Vikings at all costs and some take strong issue with any form of governmental assistance.

To make matters even more complicated is the fact that the conditions of yesterday are not the norms today.  The middle class has been slowly losing ground and is seriously questioning whether the American Dream will be available for their children.  The public knows we need more scientists and engineers to compete globally and not more right tackles.

While this may change the flavor of the debate, it does not deal with the possibility that we could lose the Vikings.

Our first determination has to be whether or not we consider the Vikings a state asset.  My answer is “yes”, just as I consider the Mayo Clinic, the Minnesota Orchestra, and the Duluth Port to be Minnesota assets.  They all help define our unique quality of life.

However, the times dictate a different approach.  In December, the state will announce another budgetary shortfall ranging anywhere from one-half billion to a billion dollars.  This will instantly remove the Vikings from top priority and, possibly, move the subject to 2013.

In addition, Zygi Wilf, while wealthy, is a bit light when compared to other sports owners.

Both sides would benefit from developing a true business partnership.  With that in mind, I would suggest that Wilf consider adding some Minnesota partners which would give the Vikings more capital and a Minnesota flavor which would be most helpful in easing the concerns of Minnesotans.

The Vikings have been advertising the team as a community asset.  Partial Minnesota ownership comparable to the Twins, Wild and Timberwolves will excite a broader base of Minnesotans about a true partnership.  Names like Glen Taylor, Jim and Bob Pohlad, Ralph Burnet, Stan Hubbard, Bob Naegele, are respected and known in the Minnesota communities.  The Vikings are in need of this vital ingredient.

Further, this partnership should extend to the creation of a permanent Sports Facilities Commission with not only management authority but also the responsibility for negotiating with the teams.  Since this requires legislative approval, the Governor may want to consider creating a negotiating team now with solid business and finance leaders and a minimum from the political world.

This recognizes the reality that continuing the political collisions will jeopardize success.  A buffer group of highly competent business and financial leaders would assure the public of a responsible business deal that will protect their investment as well as assist the Vikings. 

But it is important that the Governor focus on picking the best talent in order to insure a quality outcome.  This can become the blueprint for future public-private partnerships.  I would suggest the following be part of the negotiations:

1.   When the Vikings are next sold, the profits attributable to the stadium and its lease become part of the partnership assets and be divided according to contribution level.  This way the taxpayers share in the profits.

2.   There be full transparency.  I suspect that the state would utilize its bonding capacity and look toward special revenues to assist in the payments.  This may well include taxes on liquor,  tobacco,  and stadium admissions, etc.

The Vikings should also make clear where their share would come from in order to avoid any surprises.

3.   Naming rights should belong to the partnership.

4.   The issue of the possible imposition of pay TV for NFL games should be dealt with in order that the taxpayer partner not be harmed.

The overall goal is to recognize the Vikings as a statewide asset and not the responsibility of any local entity.  On the other hand, it brings the Vikings more closely into the Minnesota community.

Again, just a thought.

We, the People....

In his new book, The Price of Civilization, Jeffrey Sacks outlines his concerns about the sharp rise in poverty (100 million Americans in or near poverty), the weakening of the middle class, and the increased distrust of government as practiced in Washington.

While all this is deeply disturbing, what truly got my attention is our failure to concern ourselves with our future.  “We are paralyzed, rather by a shared lack of serious attention to our future”, he observes referring to both political parties.

Further our own satisfaction levels have not increased over the past 35 years while other societies have moved past us placing the United States in 19^th place according to Gallup polls.

It is difficult to discuss this subject without sounding pessimistic but the reality is that we, the adults, owe our children much more than what we are now giving them.  It may well be time for us to look at ourselves, take ownership of the moment, and remind all institutions that they work for us, the people, and not the other way around.

Last week, I spoke to a group at the Church of the Good Shepherd in south Minneapolis and explored some of the reform possibilities.   The very first reform is to do precisely what this community church is doing and that is bringing people together and broadening our understanding of ourselves and the world around us.

There is no magical potion that will eliminate our anxieties, our sense of powerlessness, or restore the American Dream.  It will come about when communities of people come together and decide to restore the word “public” to “public service” and remind all of our leaders – private, public and non-profit, that no one achieved success without the aid and support of others.  It is this sense of togetherness that represents our very first step towards balancing our democracy.

With this in mind, it is imperative that we again and continuously recognize that all elected and appointed officials work for us.  They are our employees.

This may sound simple but it will be a serious challenge to bring back the more traditional role of public service.  Huge blocs of monies have engulfed our political system and these monies have defined interests that may be contrary to the public good.  Currently, their power well exceeds ours.

As a result, an increasing number of people feel powerless.  Individually, I would argue, we probably are powerless.  But, as a community we have the power of the ballot box.  We have to recognize that power and use it.

Over the next several blogs, I will outline some specifics but in this one I am going to deal with some very basic approaches that we should insist be implemented by Congress on a bi-partisan basis.

I.   Adopt the bi-partisan report of the Bowles-Simpson Debt Reduction Commission.  It has significant advantages possessed by no other plan.

      a.     It is bi-partisan, well researched and has passed all examinations by experts.

      b.     It clearly represents a “share the pain” effort.  I truly appreciate the philosophy that we are all in this together and, therefore, must share in the sacrifice.

      c.     It inflicts minimum pain and most of it is inevitable, e.g., raising the age of social security retirement, some loss of mortgage interest deduction, etc.

      d.     It meets financial targets that bring us within reach of balancing the budget.

      e.     Time is now an enemy and this plan will do a lot to stabilize the markets and help prevent more deterioration.  It is ready to go.

II.   When a war is declared, an automatic tax is imposed to pay for that war.  We cannot continue to ship these costs to a future generation and then display bumper stickers toting our patriotism.  We must pay our way.

III.  As in Number II, upon a declaration of war, a draft is instituted.  We have placed an unbearable burden on too few and no burden on the many.  War becomes all too acceptable as long as someone else fights it and pays for it.

IV.  Eliminate the automatic pay raise for members of Congress.  This is a privilege that too few in our society enjoy and is clearly out of line in this economy.  They can tighten their belts in a way that matches their rhetoric.

V.   Eliminate the “franking privilege” whereby members of Congress can send us their political propaganda at our expense.   Further, they have the audacity to  exempt these mailings from campaign limit laws.

It is my hope that we put aside our more narrow partisan concerns and advance proposals such as these that are relatively simple, make sense, and restore power to the people.  Once we recognize our power then we have the obligation to exercise it responsibly, starting now.

Eleanor – a Pistol

On October 5, we celebrated the life of Eleanor Mondale.  As expected, her marvelously outgoing personality was portrayed with stories, insights, laughter, and music.  By all accounts, she defined life leading her brother, Bill, to observe that it was Eleanor’s world and that we were lucky to be part of it.

What a marvelous tribute.  Later at the reception at the Walker Art Center, Susan and I chatted with Walter Mondale and reminisced about her joy of life.  At the mention of “joy”, Mondale’s face was a full laugh and he declared, “She was a pistol.”

This was a father’s sentiment of love and appreciation.  Every family needs a “pistol” because their presence is priceless.  They are the welcoming sunshine and the huggers with the ability to rise above the petty and the pomp.  They bring out the best in us.

There is no doubt in anyone’s mind but that Eleanor was a large part of the glue that kept this family so alive and vibrant.

And so while there was celebration, there was also a deep hurt at this loss to Walter, Joan, Bill and Ted.  Thank you for allowing all of us to share this moment with you.

You are Minnesota’s First Family because you are the finest in public service and decency.

Boone & Erickson – Minnesota’s Best

On October 3, Susan I went to the Old Log Theater to see Boone & Erickson recreate their beloved radio show.  But, in reality, none of us in the audience came to see a show but rather to share in a past that we truly loved and respected starting with their special take on World War II.  With music of the era provided by Reuben Ristrom and his band and the superb singing of Diane Ristrom, we remembered a better time:  A time when our nation was united and everyone pitched in.

But the evening was more.  It was a delightful trip down memory lane covering the 40 plus years of a love affair involving us and these two magnificent artists of the radio.  In all those years, they allowed us to laugh at ourselves without any edge or tonality of the nasty or off-color.  They reflected true wholesome Minnesota humor and with human insight.  They loved us and we loved them.

Thank you Charlie and Roger for embracing us and thank you Don Stoltz and the Old Log for introducing generations of Minnesotans to  the best in comedy and good taste.

You are all Minnesota treasures.

The 2012 Election Question may well be ….do you want to be represented by Michele Bachmann? - Part One

Since taking control of the U.S. House of Representatives in January of this year, Republicans have brought the nation to the brink of a government shutdown three times.  The overall result has been a continued loss of confidence in our ability to govern ourselves in a stable and predictable fashion.  Both global and domestic markets reflect this instability and the consequences are being felt in everyone’s retirement accounts as well as a diminished reputation overseas verified by a serious downgrade in our national credit.

When analyzed in a political science sense, it goes back to the midterm elections of 2010 and the increased influence of the Tea Party.  No matter how you look at it, their impact far outweighs their numbers.  The House has 435 members with Republicans numbering 242.  Of this, 56 are part of the Tea Party caucus organized by our own Michele Bachmann.  That means the Tea Party caucus possesses less than 25 percent of the Republican vote in the House but yet dominates the agenda.

Yes, their tactics include demonizing compromise and cooperation with Democrats.  But that does not explain their disproportionate influence relative to their numbers.  The sad reality is that others created a vacuum and the Tea Party stepped in.

I would contend that it started with President Obama’s failure to accept and endorse the report of the Bowles-Simpson Deficit Reduction Commission.  By all standards of competence, it was a solid bi-partisan effort.  Its recommendations if pushed by the Obama administration would have put the United States on a more successful path to recovery while protecting the integrity of the entitlement programs.  Nothing since has been proposed that matches Bowles-Simpson in quality and bi-partisanship.

Once the President ignored that report, the Tea Party stepped in and filled that void.  They have controlled the debate ever since.

Following the President’s inaction on Bowles-Simpson, the challenge fell to House Speaker Boehner and the House Republican majority.  However, instead of building a governing coalition with moderate Democrats, Boehner opted to surrender to the uncompromised demands of the Tea Party.  Their prime goal was not to govern but rather to make certain that Obama was a “one-term President”.  That type of goal casts aside all commitment to governance and quality of public policy and substitutes a new version of brutal partisan politics including questioning the loyalty and nationality of the President.  In their eyes, the only loyalty that counts is their loyalty.

The overall result is that the Republican Party is now being absorbed by the Tea Party and all GOP Presidential candidates with the exception of Jon Huntsman have surrendered large parts of their philosophy and intelligence to the Tea Party.  Climate change has now become a scientific fiction.  Lower taxes for business accompanied by far less regulation is the only panacea for economic recovery for an economy that soured after the Bush tax cuts and the failure to regulate Wall Street.

The ultimate oddity is that small minorities of Tea Party members of Congress now control the House and believe that they have the power to dictate American politics regardless of the will of the Senate and the President.  They literally have no concept of shared governance and are willing to sacrifice the well being of the nation in order to have their way.

However, this is not without consequences.  When Republican members of Congress yield their vote to the Republican caucus and that caucus is controlled by the unyielding Tea Party members then it stands to reason that they should be held accountable for the consequences.  After all, the tail cannot wag the dog without the dog’s consent.

I would submit that this subservience to the Tea Party will only strengthen the hand of the President and make Republican members of Congress appear to be weak and so intimidated that they cannot or will not represent the best long-term interests of their district.  In essence, they have become agents of the Tea Party and the result may well be that they will bear responsibility for even the most outrageous views of the extreme Right.

In 1950, when Richard Nixon sought the Senate seat in California, he compared the voting record of his opponent, Representative Helen Gahagan Douglas with that of an alleged “communist” House member, Vito Marcantonio.  The campaign slogan was essentially  “should California send Vito Marcantonio to the U.S. Senate.”   Although the comparison was grossly unfair, the voters chose Nixon.

Similar comparisons may well take place here and with some justification.  Michele Bachmann as a congressional Tea Party leader may well find herself in many Democratic ads with the question:  “Do you want our District to be represented by Michele Bachmann?”

You judge.

Budget Deficits – A Time for A Growth Strategy

With the advent of fall comes football, back to school and an early focus on the next legislative session.  The latter is as welcome as a trip to the dentist.

The reason is simple and that is the reality that weak economic growth and declining income spell trouble for state budgets dependent on income and sales growth.

Currently, Minnesota will likely face a deficit of approximately $1.9 billion for 2013-14.  This figure does not include any inflation or payback of the $2.1 billion from K-12 education.  But the real surprise will be on the revenue side.  If my recollection is correct, the February forecast pegged projected economic growth at 3.2 percent.  That is turning out to be highly optimistic.  Two percent or less is more likely.  This means that revenue expectations will be considerably lower and we can expect a shortfall to be announced in the November forecast.

Rather than being surprised in November, it would be more prudent to plan for another deficit now.  Further, I would contend, this should give our leaders the opportunity to do it right.  By that I mean putting an end to the rolling deficits that have been the norm for the past nine years and produce an integrated budget that is pro-growth and projects out revenues and expenditures for at least four years with inflation included on both the revenue and expenditure side.

When I use the phrase “pro growth” I mean tilting our expenditures and tax system toward long-term job growth.  This means investments that will advance growth and a tax code that entices growth.  The simple reality here is that we cannot cut or tax our way to success.  We must grow the economy.

The true opportunity here is that we as a state have an enormous number of talented people from both the private and public sectors that can put together a pro growth strategy.  Political leadership should be modest enough to know that they cannot do it alone.

The process really starts with the Governor and Legislative leaders having a free ranging conversation with leaders from groups familiar with this area such as the Itasca Project, the Economic Club, the Citizens League – past and present and some solid financial minds including the University of Minnesota and former state government Finance Commissioners.

The prerequisites are simple:  a commitment to make it work.

From here, the group can formulate a process that leads to comprehensive legislation.  But the key in the opening conversations is that they should take place in a comfortable and relaxed environment with privacy respected.   The goal here is to grow the economy not the partisan feud.

A successful product will give all of us a sense of success and a better future for our children.  It will also restore our pride in the quality of our governance.