Feb 11, 2009

Uh Oh (Philip Flunks his Math Test)

I apologize for falling somewhat behind, but a dear friend passed on Sunday. He believed in Southeast Texas and was everything that Philip R. Klein is not, including honest, kind, and successful. Ironically, he really was a former FBI agent before pursuing another career. I'll miss him greatly.

I'm always highly amused when Philip R. Klein comments on budgets, the economy, and other financial matters.  These issues always show how uninformed and confused Philip really is. 

In his latest article on the Southeast Texas Political Review, he writes:

The Southeast Texas Political Review has learned today that the State Board of Education in Texas has suspended taking applications from districts for Bond Guarantees by the Permanent School Fund. According to our source, the fund has dropped below it's capacity to insure additional bonds.

As a shrewd political consultant and world-renowned finder of missing people, one would expect Philip Klein to be a bit more in touch.

This action that Philip just heard about actually occurred almost three months ago when the Permanent School Fund (PSF) took a $300 million hit due to falling stock prices and the lowered demand on oil:

In December 2008, the PSF suspended further guarantees of school district bonds after experiencing significant declines in asset values. As of Nov. 30, 2008, the market value of PSF equity, fixed income, and absolute return holdings declined to $17.6 billion (or 30%) from $25.3 billion in fiscal 2007.

If Philip lacks credibility over something as simple as dates, his financial speculation is even more inept:

We did some calling late in the evening and found out from another source in the Texas Legislature that the amount of the insurance and interest rate increase may exceed almost 14% of the total bond.

"I think the amount they have to add in is about 14% of the total bond," said the source.

Meaning? Another million? Or so?????

Since the proposed Nederland school bond issue is 120.3 million, 14 percent of the total would actually be around $16.8 million, not "another million" as Philip claims.  Readers will note that this is a substantial difference and Klein's figures aren't even close. Ironically, this is simple math. Many middle school students can figure out simple percentages like this in their head, but Philip apparently doesn't know how to run a calculator.

The bond issue in Nederland may well fail for several reasons, but Philip's article proves that, once again, he has no credible insight and that he has to invent "facts" to support wingnut opinions.

Care to discuss the real issues, buddy?

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