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Tax Talk
From: Susan Kniep, President

From:  Susan Kniep,  President
The Federation of Connecticut Taxpayer Organizations, Inc.
Website:  http://ctact.org/
email:  fctopresident@ctact.org

860-524-6501

September 5, 2005

 

I want to take this opportunity to thank all who make this publication possible and acknowledge the appreciation of our readers who tell me they turn to Tax Talk for information they have not found elsewhere.  Donna is one such contributor.  We are all indebted to her for her tireless efforts in providing us with valuable information on tax related issues.   Thank you Donna for your most recent publication below and all that you do for taxpayers throughout our State and those beyond who take the time to visit FCTO’s website. I also want to acknowledge and thank Ann Mikulak and Helene Groman of the New Britain Taxpayers Association, C.P.O.A. which is the oldest tax group in our state having recently celebrated their 75th year.  Below they share with us correspondence between them and Governor Rell on State bonding.  .  If you wish to have your news article or item of interest published, please send to me at fctopresident@ctact.org.  Please note that Previous Tax Talk Issues can be found on our Website at  http://ctact.org/  Susan Kniep

 

 

WELCOME TO THE 56TH  EDITION OF 

 

 

 

TAX TALK

 

 

American Red Cross

For those wishing to help those devastated by Katrina

http://www.redcross.org/donate/donate.html

http://www.usafreedomcorps.gov/

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How to contact your ...

Washington Legislators

Connecticut Legislators

State Representative, State Senator and Congressperson

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Eminent Domain Watch

http://www.emdo.blogspot.com/#112569251598899441

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Retirement Benefits for State Legislators

http://www.cga.ct.gov/2003/olrdata/lm/rpt/2003-R-0521.htm

 

 

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Donna McCalla, ctjodi@sbcglobal.net

Hebron Dollars and Sense

Mill Rates 2005-06 based on Grand Lists 2004

August 23, 2005

Hi, all.  I wanted to get this out as soon as possible as I know that several of you are interested in obtaining the final data.  The attached spreadsheet lists all mill rate increases for FY 2005-06, based on GL data for FY 2004.  The state will not be releasing/confirming this data until December 2005 or January 2006.  Of the six towns that have not yet approved a budget, five have set a mill rate despite an unapproved budget, which is reflected in the spreadsheet.  Only Westbrook has not set a mill rate for FY 2005-06, and, it appears, will only do so once they have an approved budget.  Edie Duncan of Granby was able to make the calls to the remaining towns and fill in the blanks from the preview I sent out last weekend.  This is not always easy to do.... some towns have non-standard hours; others, you get transferred to a number of departments before you get to the right person.... so I thank Edie for taking on this tedious job...  I believe the data is accurate, but if you see any corrections, please let me know as soon as you can.  For many, budget planning starts in just a few short months, and accurate data  on FY 2005-06 mill rate increases may be helpful to municipalities for that planning process.   For next year's data spreadsheets, I will be listing the actual GL growth numbers and mill rate numbers in a data column, rather than in the Notes column. The GL growth in percentage terms has always been listed in a data column on the Education Budget spreadsheet, which goes out to you in January, February, and March of each year.    I hope the planned addition of these new data items on the primary CT Tax Increase Comparisons spreadsheet will prove helpful to you next year.   Thanks, Donna

Please refer to the attached excel spreadsheet.

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Helene Groman, HRGroman@aol.com

Citizens Property Owners Assn of New Britain,

Communications to and from Governor Rell on State Bonding

 

July 6, 2005 Letter CPOA Wrote to Governor Rell

The following is the letter we sent to the Governor on July 6, 2005.  Helene   

Dear Governor Rell:      The Citizens Property Owners Assn. of New Britain, the oldest taxpyer group in the State, commends you on your stand for "justified" spending on the Bonding proposal for 2006 and 2007.  We too are concerned about the amount of proposed bonding.  While some consider these monies a "windfall", the high interest on the millions and millions in bonds is now killing taxpayers!     The CPOA recently learned there is no paper trail or 'checks and balances' on bonded monies that are submitted to requesting agencies.  We also learned that so-called non-profit groups requested and received bonded monies that included costly administrative costs.  We understand using these funds for administrative costs is illegal!   Therefore, the CPOA respectfully asks of you and the Bonding Commission, that all bonding requests be itemized and carefully screened before they are granted.  Also, that a follow-up notarized report be submitted by recipients showing exactly how allocated funds were used.  We look for the elimination of loopholes   and unjustified spending.  Your response to our conerns would be greatly appreciated.   Sincerely, Mrs. Ann Mikulak, President CPOA   The CPOA (Citizens Property Owners Assn) of New Britain, received two replies to its letter to Gov. Rell:

 

July 20, 2005 Letter CPOA Received from Governor Rell’s Office

Governor Rell referred to me your letter of July 6, 2005 concerning the use of state bond funds.  Governor Rell is very concerned with the amount of debt incurred by the state.  To deal with the increasing debt we have tried to limit allocations for new debt by the State Bond Commission over the past year and that policy will continue.  Holding the line on allocations will ultimately result in a decrease in state debt outstanding.      As to your second point, please rest assured that there is indeed an extensive paper trail and extensive review and follow up on the use of bond funds.  Applicants are required to complete extensive applications that are vetted by the state agency.  Administrative costs of the grant recipient are not permissible use of the funds in most cases.  Upon aproval by the state agency, the request for bonding is reviewed by my staff before any recommendation is made to the Governor and the State Bond Commission.      Finally, after funds are allocated by the State Bond Commission the grant recipient signs a contract with the state agency spelling out the terms of the use of the funds.  The money is held in special state bank accounts for the recipient to draw down upon for approved grant expenses.  Grants to non-profits and private entities also include liens  on the property to protect the state's investment.  The accounts are also subject to annual audits.      Thank you for expressing your concerns.  If you have any questions please do not hesitate to contact my office.      Sincerely, Robert L. Genuario, Secry. Office of Policy and Management

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Bill Polowy, wmpolowy@snet.net

Thomaston, CT

Request for Salaries of State Representatives

August 30, 2005

 

FCTO is always happy to help those who are attempting to find information.  After doing some research on Bill’s request, I received the following from State Comptroller Nancy Wyman’s office which I thought you might all be interested in reading.  I also want to thank Bill for his generous offer of a contribution to FCTO and his words of appreciation.  I am frequently asked how concerned taxpayers can help to support FCTO.  Contributions can be mailed to our Treasurer, Bernie Roy at the following address:  62 Putting Green Rd, Trumbull, CT  06611.  Please note we are a 501c4 organization, and therefore your contribution is not tax deductible.  Again, thank you!

 

From Bill:   More than I was looking for, Susan.  Thanks for the prompt reply and
detailed information.  I will continue to be a supporter of FCTO.   Bill Polowy


 

To Bill:  http://www.sots.state.ct.us/RegisterManual/SectionIII/CurrentLeg.htm


Pursuant to Section 2-8 of the Connecticut General Statutes, each
member of the general assembly, with the exception of officers, receives
a base salary of $28,000 for each year of a term.  Each member also
receives a transportation allowance in the amount of $4,500 in the House
of Representatives and $5,500 in the Senate.  Officers of the general
assembly are compensated as follows: Speaker of the House and President
Pro Tempore of the Senate, $38,689; Majority and Minority Leaders of the
House and Senate, $36,835; Deputy Speakers of the House and Deputy
Majority and Minority Leaders of the House and Senate, $34,446;
Assistant Majority and Minority Leaders, Majority and Minority Whips,
and Committee Chairmen (except the Joint Standing Committee on
Legislative Management), $32,241; and, Ranking Members of each Joint
Standing Committee (except Legislative Management), $30,403. Each Senate
officer also receives a $5,500 allowance for expenses, and each House
officer also receives a $4,500 allowance for expenses.

 



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Jeremy Renninghoff , jrenninghoff@comcast.net

Regional school districts and TAXES

Sept 1, 2005

 

Dear Susan, My name is Jeremy Renninghoff. I am a 14-year resident of the towns of Durham and Middlefield, which comprise Regional School District 13. RSDs always seem to have the biggest budget increases out of school districts in rural and suburban towns, and there is good reason. State statutes grant a tremendous amount of authority to regional boards of education regarding the handling of finances. Budgets are not subject to approval by the fiscal authorities of the member towns, and like in local school districts, there is no control over line items. Even if the local BOFs could at least say "cut $500.000," we all know that would come out of textbooks, athletics, pencils, anything that directly affects students. Besides seeking an end to binding arbitration and the prevailing wage, town leaders outside the BOE must have the power to alter education budgets. This is especially important in RSDs. Furthermore, in those towns where legislative power is vested in the Town Meeting, it should have the final say over all aspects of the budget. They are also able to transfer funds between line items at their discretion, enabling the use of slush funds and padding in the budget for expenses they don't want to make public. This past May the first budget referendum for D-13 went down by 22 votes. After lots of screeching by the townspeople (and students) over the proposed layoffs of two high school library aides, the BOE reinstated the positions and cut $18.000 from field trips, leaving the budget at $29M. It passed the second time around. Their arrogance has many people including myself furious. I am even considering a petition to form a study committee to investigate dissolution of the regional district, despite the tremendous costs of bonding for building projects and the sentimental feelings I have as I was a student in the district. People across the state in towns with RSDs are losing what little control they have over the biggest portion of local property taxes.  The former head of the Waterbury Taxpayers Association, now a resident of Middlefield, and I are seriously looking into starting a taxpayers group in Middlefield. While we will focus on both the town and school budgets, we might seek members from Durham for the purpose of uniting against the government-school machine.  Keep up the good fight!  Jeremy Renninghoff, Middlefield


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STATE FUNDS TO NEW LONDON DEVELOPMENT CORPORATION

Since 1993, the state has provided just over $ 82. 35 million in direct grants to the New London Development Corporation (NLDC) for various development projects, all from state bond allocations. In addition to this direct funding, the state has provided more than $ 39 million for projects located in the NDLC development area since 1988.  A computer search of state budgets and special acts since 1988 shows no direct appropriations to the NDLC. In addition, a survey of the Connecticut Development Authority’s (CDA’s) active accounts from1991 to 2003 showed that NDLC has received no grants or loans from CDA.  GO TO THIS WEBSITE FOR THE FULL REPORT   http://www.cga.ct.gov/2005/rpt/2005-R-0590.htm

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STATE COMPTROLLER NANCY WYMAN PROJECTS 2005 SURPLUS OF $ 157.4 MILLION (Sept 1, 2005)

State Comptroller Nancy Wyman today projected the state will end the 2005 fiscal year with a net budget surplus of $157.4 million.

The surplus would have reached $777.2 million, but a series of appropriations by the General Assembly and the Governor reduced that to the current estimate of $157.4 million. Nearly $547 million of the original 2005 surplus has been earmarked to fund operating costs for fiscal years 2006 and 2007 – a practice that Wyman said could create significant fiscal problems in the future.  “Depending on surplus revenue to fund future budgets creates a dollar-for-dollar hole in those budgets,” Wyman said. “The result of this funding gimmick is the potential for enormous budget deficits in the years ahead.”    The non-partisan Office of Fiscal Analysis is projecting budget gaps of $642.7 million, $748.7 million, and $919.2 million in fiscal years 2008, 2009 and 2010 respectively.      The net 2005 surplus of $157.4 million will be deposited into the state’s Rainy Day Fund. That will bring the emergency fund’s balance to $459.6 million, or about 3.3 percent of net General Fund appropriations. Wyman has advocated for the emergency fund to contain at least 10 percent of those appropriations.  The 2005 fiscal year ended June 30, but the state continued to accrue certain revenues through August that will be included in the final surplus figure.

 

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The August 25 Legislative Hearing on Eminent Domain was a great success in the number of people who came to support changes to our State  Eminent Domain laws to prevent abuse of and protect the property rights of Connecticut citizens.  The following are some examples of the presentations, to include my presentation on behalf of FCTO.  Please take a few minutes and visit the following website which exposes the players in the New London Development Corp deal.  http://www.cottagecoalition.org/rowland.htm  The names you will definitely recognize.     It is now time for the the State to conduct a forensic audit of the millions of taxpayer dollars spent on this project.  Full disclosure should be made of the politically influential involved in this project and the tax dollars they have been paid.  An investigation must be conducted to determine if the NLDC had the legal authority to impose eminent domain on the 90 families already forced from their homes. 

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August 25, 2005

Presentation to the State's Planning & Development  Committee

By Susan Kniep, President

The Federation of Connecticut Taxpayer Organizations, Inc.

 Eminent Domain

 

As the State legislature contemplates protecting the public from eminent domain abuse, consideration should be given to conducting a full scale investigation of those involved in the NLDC’s take over of private property, the victimization of private citizens and their rights,  and the funneling of  millions of state taxpayer dollars for  contracts and to the politically influential.  A forensic audit should immediately be initiated by the State and all funds on this project should be frozen until such an audit and investigation is conducted and concluded.  

 

The players in this land grab deal are either in jail, are awaiting trial, or are under federal scrutiny for their roles in other state funded development projects.  Why, therefore, would the state legislature sit quietly and not begin their own inquiry into former Governor Rowland and Peter Ellef’s involvement in the NLDC deal.

 

I first learned of the New London Development Corp. when the Redevelopment Agency of East Hartford, where I had served as Mayor and on the Town Council,   transacted a development deal fashioned after an NLDC transaction.   More specifically, the purchase of stock in a shell company.   The lawyers for the town’s Redevelopment Agency stated in a letter “ The stock purchase device is being used to avoid the purchase price being taxed as ordinary income which, we are advised, results in a six figure tax savings to the owner of the property.”  Maybe someone on this panel can tell us if a Connecticut town or the state can conspire with another person or business to avoid paying taxes in any form – state, local or federal.

 

Other questions include but are not limited to:

 

We understand the properties acquired by the NLDC are all in its name, not that of the City.  Yet,  State statutes stipulate that  "title to land taken or acquired pursuant to a development plan shall be solely in the name of the municipality."   

 

Were the 90 homeowners who have left intimidated into leaving their homes prior to the NLDC or their agents having legal authority to even approach them to purchase their homes?

 

What did Atty. Jay Malcynsky, a registered lobbyist, who was placed on retainer by the NLDC for $125,000 a year do for this money?  

Was
Downes Construction Co. retained as the principal Fort Trumbull contractor?  Were the contracts bid or no bid?  Did Downes or his subcontractors contribute o Rowland's election campaign.  Was Downes' lobbyist Jay Malcynsky? 

 

Another registered lobbyist,   Atty. Jay Levin,   was hired by the DECD to write the Fort Trumbull neighborhood Municipal Development Plan.  What has he been paid to date?

 

Philip Michalowski, who testified before you during the last hearing,was also an NLDC contractor responsible for many people losing their homes.  What has he been paid? 

 

The NLDC has paid millions to consultants, planners, marketing firms and other advisors.  Who at the State is monitoring these funds?

 

 

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New York Daily News

WHO’S EATING YOU ALIVE?
By Steven Malanga, Sunday, July 3rd, 2005

The battle between taxpayers and tax-eaters has been joined.  For the past 40 years, a new political dynamic has been emerging at the state and local level, as those who benefit from an expanding government have formed into an effective coalition that has grabbed ever more political power, often using it to advocate for higher taxes and more spending.   This coalition
, which I call the New New Left, consists of powerful unions representing public employees, social service advocates whose programs live off government funding and health care workers and hospital administrators whose institutions rely more and more on government to pay the bills. The power of this coalition has reached a tipping point in some places, where public sector political forces have seized control from taxpayers.   This public sector political movement results from the merging of several distinct forces. One is the growth of government worker unionization. Although originally banned from forming into unions because they were protected by civil service, public employees gradually began in the 1950s earning the right to organize, and they quickly became the 800-pound gorillas of policy debates in many statehouses and city councils. These groups, along with workers in health care, an industry that is now more than 50% supported by government, help make up the public sector economy into a powerful political force.  Continue at the following website: http://www.nydailynews.com/news/ideas_opinions/v-pfriendly/story/324691p-277566c.html

 

 

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Brian Tilton,  Baltimore, MD brian@briantilton.com

August 25 Presentation before the Legislature on Eminent Domain

Hi Susan,  Great to meet you again.  Here's the copy of my testimony at the August 25, 2005 hearing on eminent domain before the Planning & Development Committee.  Brian   …..   Connecticut is ground zero of the national debate on eminent domain.  What happens here today, and in the immediate future, will be seen and heard far beyond the borders of this state.  Prior to the Kelo ruling, eminent domain was already running rampant in  Connecticut.  Much of it ended in false promises.  Ask the Cristaforo’s, or  the people in Coventry along the proposed Route 6 expressway and others  around this state who saw their land  developed into something else or nothing at all.   Time will tell if the City of New London is telling a lie about the promised  redevelopment of Fort Trumbull.  So far, they don’t even have a plan!  Take first, ask questions later. I used to live in Connecticut. But in 1998, I moved to Baltimore, Maryland.  Around that time, the Baltimore County Executive floated the idea of taking huge amounts of waterfront property in a middle class neighborhood to give to a private developer who could do bigger and better things.  But the people fought back and they fought hard.  They forced the issue to referendum where 70% of Maryland voters told the state legislature that private land cannot be taken to give to a private developer.  If you took that same vote in Connecticut today, the majority vote would be bigger.  Today provides a unique chance to force change.  First, take action to protect the remaining Fort Trumbull homeowners.  Let the development they never opposed occur, but LET THEM STAY!  Second, firm your resolve to protect all homeowners by passing an amendment to the Connecticut Constitution.  It should basically say that private land should never be taken and given to a private developer.  It should only be taken for true “public use” such highways, schools, parks, and the like.  The property taken must remain in direct government control at all times.  No handing it off to quasi-public agencies.  If any land confiscated ever falls out of the direct control of the government or turns into a for-profit venture, it should be automatically made available to the previous owner, or their heirs, for the amount of just compensation awarded or fair market value at the time of reacquisition, whichever is less.  The people would overwhelmingly support it.  Only a constitutional amendment can withstand activist judges than a mere statute that can be changed on a whim.  Ten years ago, I ran for office as a third party candidate in the town of Windham based largely on eminent domain.  That’s why I’m here today.  I’m sad to see what I warned about back then, has come true today.  I’m sick of the false promises.  I’m sick of seeing people lose the homes of their dreams they worked so hard for.We may be fighting terrorism abroad, but, left unchecked, the government of this state  will continue to terrorize its own citizens.-Brian Tilton  Baltimore, MD

 

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Experts Warn Debt May Threaten Economy 8/28/2005

(AP) You owe $145,000. And the bill is rising every day. That's how much it would cost every American man, woman and child to pay the tab for the long-term promises the U.S. government has made to creditors, retirees, veterans and the poor.  And it's not even taking into account credit card bills, mortgages _ all the debt we've racked up personally. Savings? The average American puts away barely $1 of every $100 earned. Our profligate ways at home are mirrored in Washington and in the global marketplace, where as a society America spends $1.9 billion more a day on imported clothes and cars and gadgets than the entire rest of the world spends on its goods and services.  A new Associated Press/Ipsos poll finds that barely a third of Americans would cut spending to reduce the federal deficit and even fewer would raise taxes.   If those figures seem out of whack to you, if they seem to cut against the way you learned to handle money, if they seem like a recipe for a national economic nightmare _ well, then, at least you're not alone.  Continued at this website…. http://www.cbsnews.com/stories/2005/08/28/ap/business/mainD8C8KGL00.shtml

 

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CRRA mixed up in fed garbage probe
KEN DIXON dixon.connpost@snet.net
Connecticut Post  9/2/05 
HARTFORD — The federal investigation into organized crime and the state's solid waste haulers has expanded to include the Connecticut Resources Recovery Authority, the Connecticut Post has learned.  A federal grand jury in New Haven has demanded the quasi-public trash authority produce evidence regarding possible violations of trash-hauling regulations, according to documents released Thursday under the state's Freedom of Information Act.    Continued at
http://www.msnbc.msn.com/id/9172627/

 

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Town (Wethersfield) votes to limit eminent domain powers
By: G. C. Gould , Staff Writer  9/2/2005

The town council voted unanimously to limit the town's eminent domain powers at a meeting Aug. 22.  The ordinance, which was Republican-introduced but which passed 6-0, places certain restrictions on the use of eminent domain powers in Wethersfield by the Town of Wethersfield or its agents.  Absent from the meeting were Andrew Adil (D), Christine Fortunato (D), and John Cascio (R).  Mayor Russell Morin (D) said the ordinance was a "statement that the town supports its people. It's more of a commitment by the town to let people know we insist on protecting their rights," he said.  The newly passed Chapter 12 of the Wethersfield code of ordinances states: "no owner-occupied residential real property consisting of four or fewer dwelling units may be acquired by eminent domain for economic development purposes pursuant to General Statutes 8-128 to 8-133 inclusive, if the resulting project will be privately owned or controlled. Nothing contained herein shall be construed to limit the use of eminent domain powers for public purposes including but not limited to the construction of sewers, highways, sidewalks, rights of way, flood and erosion control purposes or for any other transaction where the property rights acquired will be held or controlled by the town of Wethersfield." 
Continued at the following website:  http://www.zwire.com/site/news.cfm?newsid=15144317&BRD=1662&PAG=461&dept_id=11233&rfi=6


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Congratulations to James Brezniak who led the drive to protect property owners in Putnam  Susan

Putnam decides against use of eminent domain

PUTNAM-- What happened in New London won't happen in Putnam.  A handful of Putnam voters decided Thursday that the town will not be able to use eminent domain to acquire private property for private or controlled economic development purposes.  The measure was approved 142-32. The majority of the votes favoring the measure were cast in the voting district that covers the area outside the downtown Special Services District. There, the measure was approved 74-11, while Special Services District voters favored the proposal by a 68-21 margin.Only 174, or 3.6 percent, of the town's 4,824 registered voters cast ballots in the referendum.  Continued at the following website:  http://norwichbulletin.com/apps/pbcs.dll/article?AID=/20050902/NEWS01/509020312&SearchID=73219631901177

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Check out the entire story and links at http://www.huffingtonpost.com/arianna-huffington/are-people-dying-over-her_b_6604.html Dennie

Are People Dying Over Here Because We're Fighting Them Over There? (48 comments )
Is the aftermath of Katrina part of the price we are paying for Iraq?
To the growing list of collateral damage caused by the Iraq war and Bush's stunningly inept leadership, we can now add the city of New Orleans. It's no surprise that RNC chairman Ken Mehlman
doesn't want "politics" injected into the national discussion about Katrina.

Or that Scottie McClellan would echo that "this is not a time for politics." Of course not, when President Bush's politics and policies have made this disastrous situation so much worse than it otherwise would have been.

In his
absurd and insulting "flypaper theory" Bush likes to posit an intrinsic connection between what's going on in Iraq and what's going on here at home. His version of the theory is, of course, completely wrong, but he's right that there is a connection. And it's a tragic one. And 100% airtight: every national guardsman who is in Iraq (and there are 118,000 of them) is one less guardsman who can help out right now in Mississippi and Louisiana.

About 40 percent of Mississippi's National Guard and 35 percent of Louisiana's -- a combined total of roughly 6,000 troops --
are unavailable to help out because they are currently in Iraq. And despite the protestations of unnamed officials that "this had not hurt the relief effort," does anyone really believe that having 6,000 more well-trained citizen-soldiers on hand would not have made a huge difference?

As Lt. Andy Thaggard, a spokesman for the Mississippi National Guard,
put it: "Missing the personnel is the big thing in this particular event. We need our people."

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