January 2012

The ethanol industry is, again, being hammered by the media. This time its The Washington Post, publishing an op-ed by Tim Searchinger, a professor at Princeton University: How biofuels contribute to the Food Crisis.

Searchinger gives a fair, honest estimate of the effect biofuel production has on food prices and convincingly refutes a number of common talking points put out by biofuel enthusiasts:

Nearly all assessments of the 2008 food crisis assigned biofuels a meaningful role, but much of academia and the media ultimately agreed that the scale of the crisis resulted from a “perfect storm” of causes. Yet this “perfect storm” has re-formed not three years later. We should recognize the ways in which biofuels are driving it.

He also notes the severity of the situation:

Each year, the world demands more grain, and this year the world’s farms will not produce it. World food prices have surged above the food crisis levels of 2008. Millions more people will be malnourished, and hundreds of millions who are already hungry will eat less or give up other necessities. Food riots have started again.

These are real problems. Government policies promoting the excessive production of biofuels could literally be killing people. This never seems to weigh heavily on the conscience of the politicians who support these fuels (of which there are hundreds).

Growth Energy got predictably upset with the op-ed, and have already published a same day rebuttal:

Once again displaying his willingness to ignore science, peer-reviewed research and the best available data, Tim Searchinger has authored another intellectually-bankrupt attack on farmers and renewable, clean-burning biofuels, this time in an op-ed in the Washington Post.

The notion that ethanol is causing the food crisis blithely ignores market realities, global trade agreements, the domestic farm policies of sovereign nations, and the impact of Wall Street’s rampant speculation.

They set up a nice strawman argument (and got in a nice populist dig against Wall Strett) — Searchinger didn’t claim that biofuels caused the crisis, but that they contribute to it.

Growth Energy has had to defend the ethanol industry from attacks coming from almost all mainstream media sources.  Not an easy attack, I assure you.

Hillary Clinton, March 10, 2009: “I really consider [Egyptian] President and Mrs. Mubarak to be friends of my family. So I hope to see him often here in Egypt and in the United States.”

If that seems shocking, consider it a bitter reminder that a great deal of politics exists precisely to protect social order already in place. Consider how entrenchment operates, and how difficult it is to change direction, especially procedural direction.

Consider the fact that President Mubarak revealed in yesterday’s speech that he intends to stay in office until September — ostensibly as a “figurehead” to ensure that everything “goes smoothly” when the government changes hands.

Consider the fact that when Honduran President Zelaya dug in his heels and refused to leave the Honduran office when his term expired under that country’s constitution, and when his countrymen ousted him per the terms of the Constitution under which they had elected him, much of the world, including American President Obama, jumped to call it a “coup.”

Consider how unwilling much of America is to end Social Security even when we know the numbers don’t add up. The system is entrenched and that’s what we know.

What makes a government work is people’s faith that it will work. If people believe their government to be untrustworthy they will seek extralegal remedies and self-help. Faith in government keeps the system ticking even when the government misbehaves.

The Clintons and the Mubaraks are friends. What these two families share in common overshadows their differences enough that they are friends.

Politics is a country club. The purpose of an energetic public — and particularly of a strong fourth estate — is to keep the country club as small and as responsive as possible.

CPAC 2011 Day Two

by Lee Doren on February 11, 2011

in Economy

This is Day 2 of CPAC 2011. Yesterday, there were serious internet issues. Hopefully, the same problem will not happen again.

9:30am: Gary Johnson is talking about the number of bills he vetoed, and that he is running for President. He was introduced as the “Libertarian’s Libertarian.” He argues for legalizing marijuana and cutting a massive amount of government programs. There was a larger applause for the latter. He closed by saying the Republican Party is the only Party capable of fixing the country.

Personal Note: In the blogger room, Breitbart.Tv is conducting live interviews behind me at http://www.breitbart.tv , and Ed Morrissey of HotAir.com is sitting in front of me.

10:00am: Several speakers spoke quickly about the need to cut spending.

10:30am: Mitt Romney began his speech by thanking his wife.

Note 10:38am: Internet outage like yesterday.

Due to the internet outage, I’m going to link to commentary on Mitt Romney’s speech from HotAir.

PolitiFact, which earlier took Obama’s side about whether Obamacare is a government takeover of  health care, now is criticizing President Obama for making false claims about health care and taxes. In a pre–Super Bowl interview with Bill O’Reilly, Obama made the false claim that 12 judges have rejected “the notion that the health care law was unconstitutional.” As PolitiFact notes, only “four judges have ruled on the merits of various cases challenging the health care law. Two ruled in favor of the administration and two against.” (Earlier, we explained why the recent ruling by a Florida judge striking down Obamacare was not judicial activism.)

Obama’s problem with numbers isn’t new; during the 2008 campaign, he claimed that he had been to “57 states.” So he may not have been deliberately lying about this.

But as John Kartch noted earlier, Obama made a far more flagrantly false claim when he insisted to Bill O’Reilly that “I didn’t raise taxes once” while president. It’s hard to view that claim as anything other than a lie. Obama has signed into law a long list of tax increases on consumers and investors, which Kartch lists here. That includes “two dozen new or higher taxes” just in the health care law alone.

Some of the biggest of Obama’s tax increases haven’t gone into effect yet, and won’t go into effect until after the 2012 election, such as the new 3.8 percent tax it levies on many of America’s investors. As PolitiFact noted in debunking Obama’s claim that he hadn’t raised taxes, “starting in 2013,” “Individuals who make more than $200,000 and couples that make more than $250,000 will see additional Medicare taxes of 0.9 percent. They will also, for the first time, have to pay Medicare taxes on their investment income at a 3.8 percent rate.”

By contrast, an excise tax increase Obama signed in 2009 went into effect “soon after” he took “office,” and some of the tax increases in the health-care law that affect middle-class patients and medical-device manufacturers are already in effect.

For the moment, Americans’ taxes are not that high, because many of the tax increases already signed into law have yet to kick in. But appearances are deceiving, for as Kartch notes, “100% of the tax increases Obama signed into law are … permanent,” while “over 90% of the dollar value of the tax cuts Obama signed into law are only temporary.”

I earlier discussed why PolitiFact was wrong to accept the Obama administration’s claim that Obamacare was not a government takeover of the health care system.

While it dramatically increases regulation and red tape, Obamacare has done little to control costs; health insurance premiums have risen substantially in many states as a result of its passage, such as a 47 percent increase for some policyholders in Connecticut. Obamacare contains provisions that are harmful to the economy and medical innovation. Earlier, I discussed some of the bad effects of Obamacare on patients, employers, consumers, and the insurance market.

Have a listen here.

Land Use and Transportation Policy Analyst Marc Scribner takes a close look at an eminent domain reform bill just passed by the Texas State Senate. As written, the bill would do little to actually solve the problem of government seizing private property from one private party and giving it to another private party with better political connections. Marc suggests some fixes and notes that many people are not fooled by this weak effort at reform.

Discrimination and politically-correct blinders can be deadly. It was obvious in the aftermath of the Fort Hood shootings that the killer was inspired by Islamic extremism. Obvious, that is, to anyone but officials in the Obama administration, who continue to cling tightly to a culture of political correctness and preferential treatment that helped make the shootings possible.

Nidal Hasan shot dead 12 soldiers and a civilian at Fort Hood, while shouting “Allahu Akbar.”  But the Obama administration’s inquiry into the shootings falsely suggested Islamic extremism was not a factor in the shootings.  Its report on the Fort Hood massacre did not even “mention the words ‘Islam’ or ‘Muslim’ once,” referring to the killer simply as the “alleged perpetrator.” Instead, it claimed the tragedy resulted from “bureaucratic shortcomings” in the “sharing of information.”

But now Senators like Joe Lieberman and Susan Collins are taking issue with that whitewash report: “the federal government needs to drop the political correctness and call violent Islamic extremism what it is, according to a newly released report on the Fort Hood shooting by the Senate Committee on Homeland Security and Governmental Affairs.”

The shooter’s Islamic extremism was obvious.  Prior to the shooting, he had said that Muslims should rise up against the military, “repeatedly expressed sympathy for suicide bombers,” was pleased by the terrorist murder of an army recruiter, and engaged in hate-speech against non-Muslims, publicly calling for the beheading or burning of non-Muslims, and talking “about how if you’re a nonbeliever the Koran says you should have your head cut off, you should have oil poured down your throat, you should be set on fire.”  “In addition, Hasan openly had suggested revenge as a defense for the 9/11 attacks, defended Osama bin Laden, and said his allegiance to his religion was greater than his allegiance to the constitution.”

But the military did nothing to remove him from a position where he could harm others. Although his views were common knowledge, “a fear of appearing discriminatory . . . kept officers from filing a formal written complaint,” the Associated Press noted. Moreover, “a key official on a review committee reportedly asked how it might look to terminate a key resident who happened to be a Muslim,” as NPR noted.  Instead, the military effectively exempted Hasan from rules of conduct that apply to everyone else, in order to promote its conception of “diversity.”

As military attorney Thomas Kenniff notes, there was a climate of “obsessive political correctness” in the military. As Major Shawn Keller pointed out, in a column entitled “An Officer’s Outrage Over Fort Hood.” “There was no shortage of warning signs that Hasan identified more with Islamic Jihadists than he did with the US Army. . .But just like September 11, those agencies and individuals charged with keeping America and Americans safe failed to connect the dots that would have saved lives. Jihadist rhetoric espoused by Hasan was categorically dismissed out of submissiveness to the concepts of tolerance and diversity. . . . the leaders in Hasan’s chain-of-command failed to act . . . out of fear of being labeled anti-Muslim and receiving a negative evaluation report.”

Indeed, even after the shootings, government officials worried more about the fate of “diversity” than about the lives of their troops:  “Our diversity, not only in our Army, but in our country, is a strength,” Army Chief of Staff George Casey told NBC’s Meet the Press. “And as horrific as this tragedy was, if our diversity becomes a casualty, I think that’s worse,” Casey said.

The military is not like the outside world.  In the civilian world, hate speech and anti-American speech are protected by the First Amendment (under Supreme Court decisions like R.A.V. v. St. Paul, and court rulings like Dambrot v. Central Michigan University).  But in the military, soldiers get punished for bigotry or disloyalty all the time – but not Nidal Hasan, who escaped any punishment due to obvious favoritism.

In court cases like Goldman v. Weinberger, the Supreme Court has said that soldiers have fewer First Amendment rights than civilians. The military cites this all the time when it wants to punish soldiers for politically-incorrect speech, like the soldier who was punished for a sexist insult about liberal Congresswoman Pat Schroeder (D-Colo.) in the aftermath of the Tailhook Scandal. But the military did not apply its policies against seditious speech and hate-speech to Hasan, because of political correctness. Instead, it kept him working with injured American veterans, a position for which he was manifestly unfit.

Obama could barely bring himself to mention the tragedy, much less express sympathy for the victims, in his initial remarks about it, in which he buried any expression of sympathy in the middle of a speech filled with “wildly disconnected” ramblings about an unrelated topic, starting with a “joking shout-out.”  Even for liberal journalists, President Obama’s initial response to the tragedy was embarrassing.  Even the liberal Boston Globe, which endorsed Obama in 2008, chided the President for a speech lacking in ”empathy” for the victims.  Despite the shooter’s open hatred towards America, the military, and America’s non-Muslim majority, Obama’s remarks insisted that the shooter’s motive for the killings was unknown.

The Obama Administration then did its best to hide the role of political correctness in spawning the tragedy by appointing two supporters of racial preferences in the military – former Army Secretary Togo West and Admiral Vernon Clark – to handle the federal inquiry into the tragedy. This was like appointing a fox to guard a henhouse. At the conclusion of their inquiry, West and Clark came out with a ridiculous report that did not even mention the word “Islam” or “Muslim,” much less address the Islamic extremism that motivated the shootings.  Based on these men’s track record, the Obama Administration expected – and wanted – exactly such a whitewash report.

“Clark was such an enthusiast for ‘diversity’” that “he redefined the Navy’s concept of special minorities to include religious (read Muslim)” groups, not just racial minorities. Similarly, Togo West,  a supporter of restrictions on politically-incorrect speech, “never saw an affirmative action policy or minority preference policy he didn’t like,” and  was such a diversity zealot that he filed an amicus brief in an affirmative-action case that didn’t even involve the military, unsuccessfully urging the Supreme Court to uphold racial quotas in the public schools – something it instead struck down in Parents Involved in Community Schools v. Seattle School District). Clark’s devotion to preferential treatment was reflected in his order “that the Navy increase the number of minority candidates for officer commissions by 25 per cent,” which “led to a double standard” at “places like the Naval Academy at Annapolis, where the entry standards for minorities are noticeably lower than for white applicants.”

Even today, military leaders remain wedded to the concept of “diversity” at the expense of equal treatment and the Constitution, engaging in racial discrimination at the military academies in the name of “diversity,” including mandating racial preferences in admissions. The Naval Academy illegally retaliated against a faculty member who criticized its use of racial preferences in admissions (the Naval Academy listed “diversity”as its “number one priority,” above learning), violating the First Amendment and anti-retaliation provisions contained in the civil-rights laws.

Military leaders, catering to liberal congressional leaders and the Obama administration, cling tightly to the “diversity” dogma, demanding that those in the military keep silent rather than saying things that might call into question their ”diversity” obsession:

“Naval Academy senior commanders decided during the World Series to remove two Midshipmen from the color guard that appeared. What was their offense? The color guard was deemed too white and too male.  .  .Two members of the color guard were removed and replaced by a Pakistani and a woman to achieve the requisite ‘diversity.’ The Pakistani unfortunately forgot his cap and shoes. He himself had to be replaced at the last minute by one of the two middies removed earlier. The midshipmen have reportedly been ordered not to speak of these events.”

I am definitely not arguing for a ban on Muslims in the military, or discrimination against them — quite the opposite. The military has a critical shortage of, and need for, translators who speak languages like Pashto (spoken in Afghanistan), Urdu (spoken in Pakistan) and Arabic. These translators are often Muslim, and they should be welcome in the military. But neither should the military exempt Muslims from the rules of conduct imposed on soldiers of other religions.  That is an insult to the principle of equality under the law. Hasan’s anti-American rants would not have been tolerated even in the armies of Muslim countries allied with the U.S., like Albania.

Reading through the headlines, the top economic stories are about scrutiny of regulation and spending proposals regarding the federal budget. But the similarities and differences in this scrutiny are striking.

In proposing spending cuts, the House Republicans are targeting wasteful and destructive spending in entities such as the Environmental Protection Agency. Similarly, a hearing today in the House Oversight and Government Reform Committee will highlight costly and counterproductive regulations that are harmful to job growth.

The Competitive Enterprise Institute was one of many organizations that provided examples of such rules — from the interchange fee price controls of Dodd-Frank’s Durbin Amendment that will shift debit card processing costs from wealthy retail chains to consumers to the FDA’s deadly drug delays that keep patients from accessing life-saving drugs.

Yet institutionally, the scrutiny couldn’t be more different. Spending programs must live within some budget constraints set by Congress. Yes, it’s true that these constraints are not that strong. So far, Republicans are falling short of their stated goal of cutting $100 billion in spending, and even the cuts they do make will be subject to back-and-forth by the Senate and President Obama. But at the end of the day, some finite annual budget number is set that agencies can’t exceed in their spending.

By contrast, regulations are subject to no such cost constraint by Congress. In fact, once they are implemented, they usually don’t come back before Congress unless they provoke a particular outrage. A commendable effort by members of Congress from the Bluegrass State — Kentucky Sen. Ron Paul and Rep. Geoff Davis — is trying to change this with the REINS Act, which would require Congress to affirmatively approve regulations scored by agencies as costing the economy more than $100 million.

As important as it is, the REINS Act is one of many institutional steps to make regulatory agencies accountable. Regulatory agencies need to be put on a budget — not just for what they spend enforcing the rules they implement, but for how much the rules cost the economy. Such a regulatory budget is the only real way to limit the growth of the regulatory state, which as CEI’s Clyde Wayne Crews has noted now exceeds $1.75 trillion in costs, according to the Small Business Administration.

As Crews has noted in his annual snapshot “10,000 Commandments,” regulations act as a hidden tax on business growth and job creation. Regulation is also mandated spending that has similar, and frequently more pronounced, “crowding out” effects than direct government spending. In the Affordable Care Act (Obamacare), for instance, instead of the government buying everyone health insurance with tax dollars, it mandates that individuals and businesses spend money on health insurance.

This should be seen as an off-budget tax-and-spend scheme that, like direct taxes and spending, reduces resources that consumers and business would use to purchase other more desirable goods and services. Thus, it should be subject constraints similar to that on direct government spending. As Crews wrote for CEI in 1996, “Full-fledged budgeting should establish an overall cap paralleling the fiscal budget, and would assign maximum compliance costs within each agency such that the overall cap is not exceeded.”

There have been bipartisan proposals for regulatory budgets since the 1980s. Economists Robert Litan and William Nordhaus — who held posts, respectively, in the Clinton and Carter administrations — first outlined such a proposal in their 1983 book Reforming Federal Regulation. The GOP’s “Contract With America” in 1994 contained a plank calling for regulatory budgeting.

The obstacle has been debates over the type of accounting to measure a regulation’s cost to the economy. Fortunately, over the last decade, the business world has contributed a promising answer to that question with a technique called life-cycle budgeting. Under this process, also referred to as whole-life costing or total cost of ownership, the full “life-cycle” cost of any expenditure must be calculated before it is spent. As journalist Kevin Mooney has noted, state governments have also had some success in using life-cycle budgeting to keep infrastructure costs down.

For regulations, life-cycle budgeting would mean that regulatory agencies would look at all the potential costs of a rule — direct and indirect — and only implement a rule if it doesn’t exceed a set “budget” for costs to the economy. One example of how this could work is with the regulations stemming from the onerous Sarbanes-Oxley Act of 2002 signed by the supposedly deregulatory President George W. Bush. University of Rochester researcher Ivy Zhang performed a detailed econometric study finding that law cost the economy $1.4 trillion in direct and indirect costs, including the economic activity that was not pursued as a result of the costs of the law’s accounting mandates.

A life-cycle regulatory budget would go a long way to improving the life cycle of opportunity for consumers, investors, and entrepreneurs burdened by the regulatory state.

CPAC 2011

by Lee Doren on February 10, 2011

in Economy

This post will cover CPAC 2011 throughout the day.  Check back for updates.

Note: There is an Internet connection issue at CPAC (9:25am)  Hopefully this will be resolved. Update: As of 12:53pm, the Internet is still sporadic.

9:15am: Rep. Michele Bachmann started the event to fire up the crowd. Most of her talk was similar to her response to President Obama’s State of the Union Address. She focused on the debt and deficit.

10:30am: Sen. Pat Toomey says increasing the debt limit is irresponsible and it is a myth that we will default if we don’t increase it.

12:30AM: Everyone is paying attention to Newt Gingrich’s speech. He talked a lot about about Ronald Reagan. “Barack Obama is no Ronald Reagan.” Moreover, he stated that Bill Clinton was an example of moving to the center, not Barack Obama. He argues that we need an “American Energy Policy.” Note: Although he brought up flex fuel, he certainly did not push Ethanol as strongly as he did in Iowa, arguing for the use of more oil and coal in America. Lastly, he argued for replacing the EPA with a more efficient government agency.

Because the Internet was so sporadic at CPAC, unfortunately this post cannot be continued. Stay tuned tomorrow. We apologize.

Massachusetts: State Representative Alice Peisch filed legislation this week (HD 2759), which would amend the state’s outdated laws from the 1970s that make it impossible for small brewers to switch distributors. Brewers are required to use distributors — but if the distributor fails to get their products in front of consumers, there’s little that brewers can do about it. While current Massachusetts law does allow switching if brewers can show “good cause” (i.e., disparagement of a brand by wholesalers or proof that the distributor failed to put its best efforts into promoting a specific brand), craft brewers don’t have the resources for an expensive legal fight — unlike distributors which are usually well-funded.

This bill will allow small brewers to make their product more widely available, while also giving adequate protections to wholesalers,” said Representative Peisch.

Minnesota: The Gopher State might finally get Sunday sales. A bill introduced by Roger Reinert in the state House aims at reforming the Prohibition-era law that forces liquor stores to close on Sundays. This would be good for Minnesota’s tax revenue, as the Distilled Spirits Council of the U.S. (DISCUS) found ” that cross-border purchases by Minnesotans driving to Wisconsin account for nearly 3.1 percent of our neighbor state’s taxed liquor sales.”

“This bill is about the free market, giving both businesses and consumers a choice,” Sen. Reinert said. “Stores could still choose to be closed on Sundays, and consumers could choose not to make a purchase. But let’s allow for the choice.”

Also in Minnesota: Small craft beer maker Omar Ansari of Surly Brewing plans to introduce legislation next week that will change state law allowing them to sell their products to local liquor stores as well as opening their own brewpub restaurant. Current law prevents brewpubs, which are qualified as producing under 3,500 barrels a year, from selling their product in local stores.

Oregon: In the next week both branches of Oregon’s state government will consider bills that clarify the legality of competitions involving homemade beer and wine. The controversy arose last year when the Oregon Liquor Control Commission interpreted the law in a way that bared judging in competitions of homemade beer and wine at the State Fair.

Pennsylvania: While Virginia’s attempt at privatizing liquor sales appear to be dead in the water (see below), Pennsylvania’s prospects are looking brighter. A series of public hearings on privatization will begin on the 14th in the Senate Law and Justice Committee. Public sentiment seems to be for privatization, especially in light of the recent news that the PLCB will be dramatically reducing the variety of products it offers.

The wine and spirits being yanked from shelves would remain available for shoppers to purchase in a private market, said State Rep. Scott Perry, R Dillsburg.

“Now you won’t even be able to get them … I personally think this is just an indication the state liquor system’s time has come and gone,” he said.

Utah: Republican Rep. Gage Froerer’s bill  HB42 passed the Utah House on Monday and now goes to the Senate. The bill would solve an “acute shortage of alcohol licenses” in the state by changing licensing quota formulas to convert unused beer bar licenses, of which there are 41, into restaurant permits — 21 of which would allow all types of alcohol to be served and the remaining would allow restaurants to serve beer and wine. The bill has been dubbed as a “Band-Aid” to immediately address the issue though sweeping reforms are expected to be considered later in the year.

Virginia: Gov. Bob McDonnell’s hard fight for privatization of the state’s liquor store system seems to be over, at least for now. Tuesday, the deadline for House and Senate to pass bills came and went without action.

Republican House Speaker Bill Howell and other GOP leaders declared the bill dead at the beginning of this month. While the GOP in Senate was supportive of his plan, Chairwoman Sen. Toddy Puller said she wouldn’t hear the proposal until House of Delegates advanced the proposal.

The governor has said he still believes in privatization and will continue to push it during the remainder of his two year term.

Here’s some more bad news for those of us seeking real eminent domain reform, rather than style-over-substance feel-good legislation. Here’s the Dallas Morning News uncritically reporting on the eminent domain “reform” bill’s passage by the Texas Senate:

Legislation aimed at strengthening the rights of property owners in eminent domain cases in Texas won unanimous approval in the Senate on Wednesday.

The measure, which goes to the House, passed the Senate in similar form two years ago, but fell victim to an impasse in the House that killed scores of bills in the final days of the last legislative session.

Sen. Craig Estes, R-Wichita Falls, author of the proposal, said his aim is to “restore balance” in the eminent domain process where a government agency or other entity takes private property for a public purpose and compensates the landowner.

Despite previous changes in the law, Estes said the “deck of cards is still stacked against private property owners” because the eminent domain process “does not always properly recognize the true value of a private landowner’s interest.”

Among the various provisions in the bill is language that would allow the original landowner to repurchase his property if no progress toward public use of the land occurs within 10 years of when it is acquired by the governmental entity.

That’s some nice rhetoric. Unfortunately, these protections are largely meaningless. The bill allows takings for recreational facilities as defined under Section 49.462 of the Texas Water Code, for instance. So if the government is attempting to condemn your property to make way for a bike trail, good luck getting a court to grant you injunctive relief.

The bill also fails to reign in blight condemnations. Declaring a property or area blighted has been an urban renewal trick common throughout the country since the Supreme Court’s 1954 Berman v. Parker decision. In most states, including Texas, governments or their agents can declare entire areas blighted, even if your property is in phenomenal condition. Furthermore, government entities in Texas can condemn property under Chapter 374 of the Local Government Code if officials believe knocking down your house is somehow a means to “preventing an area susceptible to blight from becoming blighted.” A real reform bill would have addressed abuse of blight standards and prohibited area blight condemnations.

The bill also includes a provision that requires that the government offer to sell the condemned property back to the property owner at the price the owner was compensated at the time of condemnation if the property is not put to public use within 10 years. However, property owners often must spend a considerable amount on legal fees when fighting eminent domain condemnation. This means that a significant portion of the compensation settlement often has to be used to repay attorneys and other expenses, and that many owners can’t simply repurchase their property at the settlement price. This provision could have more teeth in terms of offering property owners protection if government entities in Texas were forced compensate owners at no less than 125 percent of market value (as Michigan requires under Article 10, Section 2 of the state Constitution), and then allowed property owners to repurchase their condemned properties at straight (100 percent) market value as assessed at the time of condemnation.