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Chicago School Leaders Don’t Know How They’re Going to Pay for the New Contract!
Townhall.com ^ | September 22, 2012 | Kyle Olson

Posted on 09/22/2012 6:40:08 AM PDT by Kaslin

The successful business leaders that sit on the Chicago Board of Education must have checked their brains at the door when they went into the negotiating room with the teachers union. How else could they possibly negotiate a contract that the school district can’t possibly afford?

Truth be told, if board member Penny Pritzker’s Hyatt Hotels operated that way, they’d be out of business. But, alas, this is government. They strike deals with unions and figure out how taxpayers will fund it later.

Reuters tells us:

“Chicago public school teachers returned to their classrooms on Wednesday but thorny questions remained over how Mayor Rahm Emanuel and the cash-strapped school system will pay for the tentative contract that ended a strike of more than a week.

“The three-year contract, which has an option for a fourth year and which awaits a ratification vote by the 29,000-member Chicago Teachers Union, calls for an average 17.6 percent pay raise over four years and some benefit improvements.

“Average teacher pay is now about $76,000 a year, according to the district, which pegged the annual cost of the new contract at $74 million a year, or $295 million over four years.

“The $5.16 billion fiscal 2013 budget approved by Chicago Board of Education last month closed a $665 million deficit by draining reserves and levying property taxes at a maximum rate, while also slashing administrative and operational spending.”

Let’s see: historically high pay, depleted reserves, maxed-out tax rates…so what does the board negotiate? A 17.6 percent raise and benefit improvements! Hyatt Hotels may go bankrupt operating that way, but this is government!

The likeliest solution would be to slim down the district, which would directly impact the Chicago Teachers Union’s dues intake. The district will most likely lay off teachers to cut costs and make up for the loss of student enrollment.

The district’s financial problems are compounded by the fact that its credit rating was recently downgraded, making it more expensive for the district to borrow money. The district’s draining of its reserves, huge pension costs and labor fight were blamed for that development.

The union’s strike accomplished precisely what it set out to do: get a sweetheart deal from a scared school board that checked its business brains at the door. That’s no way to run government and certainly no way to run schools.


TOPICS: Crime/Corruption; Culture/Society; Editorial; US: Illinois
KEYWORDS: chicago; chicagovalues; chicagoway; chickfila; ctu; getajob; illinois; publicsectorunions
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1 posted on 09/22/2012 6:40:10 AM PDT by Kaslin
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To: Kaslin

Federal bailout.


2 posted on 09/22/2012 6:41:41 AM PDT by facedown (Armed in the Heartland)
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To: Kaslin

then why did they settle? unions had prices us and themselves out of the market.


3 posted on 09/22/2012 6:43:48 AM PDT by dalebert
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To: Kaslin

aparently Rahmbo doesn’t plan to be around in 3 years when the bill has to be paid

raise those property taxes again- who wouldn’t want to live in Chicago and send their kids to the CPS!


4 posted on 09/22/2012 6:43:48 AM PDT by silverleaf
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To: facedown

Stupid headline. Stupid premise. Of COURSE they know how to pay for it. Or rather they know who besides them are going to pay for it.


5 posted on 09/22/2012 6:44:27 AM PDT by DManA
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To: Kaslin

A shrinking student population and a big fat teachers union contract in a state that dramatically raised taxes and is broke. What could possibly go wrong?


6 posted on 09/22/2012 6:47:19 AM PDT by txrefugee
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To: Kaslin

PRITZKER’S WENT TO PRIVATE SCHOOL. NO SURPRISE.


7 posted on 09/22/2012 6:47:39 AM PDT by madameguinot (Our Father's God to Thee, Author of Liberty)
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To: Kaslin; flaglady47; mickie; seekthetruth; Chigirl 26; magnum force 1; Eden Scout
Chicago Board of Education member, Penny Pritzker (noted above) is the same Miss Moneypenny who's the billionairess raising the extortion money for the Obamas' contemplated multi-million-dollar Hawaiian estate.

What does SHE care where the school money is coming from.....her stash comes from a hotel chain and Obama's stash comes from Heaven itself, untouched by human hands.

Leni

8 posted on 09/22/2012 6:52:41 AM PDT by MinuteGal
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To: txrefugee

Thanks for making me laugh, because I have been in a bad mood for a long time! Here in Springfield, retired state employee acquaintances who have retired before age 60, are grousing about the possibility of having to pay more for their state retirement health care. I used to ascribe to the tenet that if a state worker was promised something, the state should fulfill that requirement. After living down here for a few years, I realize that these workers a) knew that they had a unsustainable deal and b) that they should have planned for it. Morons.


9 posted on 09/22/2012 6:54:37 AM PDT by madameguinot (Our Father's God to Thee, Author of Liberty)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks Kaslin.

http://www.freerepublic.com/focus/news/2934642/posts?page=20#20


10 posted on 09/22/2012 6:56:09 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: Kaslin

Raise taxes on everything.


11 posted on 09/22/2012 7:03:14 AM PDT by SkyDancer ("OF COURSE I TALK TO MYSELF - Sometimes I need an expert opinion")
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To: madameguinot

Pritzker has problems with the unions at her hotels.


12 posted on 09/22/2012 7:05:33 AM PDT by RummyChick
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To: madameguinot

The Pritzkers I knew in Penny’s generation went to private elementary, but to New Trier for HS. The kids got a say for HS.

The children of that cohort that I knew, went to Waldorf for elementary and public HS (not in Chicago, but, obviously in very nice areas). Again, the kids had a say.


13 posted on 09/22/2012 7:07:06 AM PDT by reformedliberal
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To: Kaslin
An Obama 2nd term would mean Fed bailouts for Chicago, California, GM again, and any other Dem Party gumbas in need of walkin’ around money.
14 posted on 09/22/2012 7:09:04 AM PDT by Tex-Con-Man (T. Coddington Van Voorhees VII 2012 - "Together, I Shall Ride You To Victory")
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To: madameguinot
if a state worker was promised something, the state should fulfill that requirement

That is, in general, true. One of the foundations of a civilized society is the respect for contracts. Where would we be if an employer promised a worker $100 for a day's work, then was allowed to pay him just $75 at day's end?

That being said, the current public employee payment system is simply not sustainable. Perhaps each state needs some sort of limited bankruptcy option, which would allow for a limited reset of salaries.

But I'm guessing that things would have to get much worse for that to happen. Politicians today just won't risk losing votes to do it. Easier to kick the can down the road a bit.

15 posted on 09/22/2012 7:10:00 AM PDT by Leaning Right
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To: Kaslin

Amazing - they had the unions cutting back on requests, effectively putting their backs against the wall, and they turn around and sweeten the deal above the original demands. Lunacy on display.


16 posted on 09/22/2012 7:14:28 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: facedown
Federal bailout.

Exactly....I'm sure that was a mitigating factor when they approved the contract...

They will hold the american taxpayer hostage...by eventually telling Congress Illinois will have to declare bankruptcy...if they don't pony up...

Personally, we need to see states fail to get their spending in line...

17 posted on 09/22/2012 7:28:33 AM PDT by Popman (In a place you only dream of Where your soul is always free)
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To: Kaslin

Cut workers, supplies, books, and turn off the heat and lights to the buildings.


18 posted on 09/22/2012 7:30:40 AM PDT by bmwcyle (Corollary - Electing the same person over and over and expecting a different outcome is insanity)
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To: silverleaf

aparently Rahmbo doesn’t plan to be around in 3 years when the bill has to be paid


What, he’s going to run for POTUS?


19 posted on 09/22/2012 7:32:29 AM PDT by Hotlanta Mike (Resurrect the House Committee on Un-American Activities (HUAC)...before there is no America!)
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To: Popman
Personally, we need to see states fail to get their spending in line...

I live in Illinois and I couldn't possibly agree with you more! In the last 5 years my property taxes have doubled to over $9k/year on my home, and my income taxes doubled last year under the third corrupt governor in a row, Pat Quinn.

All told, I paid $57,962 in State Taxes (income, property tax) and all Federal taxes in 2011. I'm far from "rich" and these taxes are killing me. Yet, there are some who say I don't pay enough (while they pay NONE) and I should pay more?!

I can't stand it anymore.

20 posted on 09/22/2012 7:35:01 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Kaslin

They are all heading towards gambling and there will be quite a bit of sausage grinding to be done to cut that bill. Hello, Madigan!


21 posted on 09/22/2012 7:36:50 AM PDT by Thebaddog (Remember, Obama said he's only 60% done with his agenda.)
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To: reformedliberal

I thought there were Pritzkers that went to Latin.


22 posted on 09/22/2012 7:36:54 AM PDT by madameguinot (Our Father's God to Thee, Author of Liberty)
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To: Kaslin

Chicago School Leaders


             

23 posted on 09/22/2012 7:38:23 AM PDT by tomkat
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To: Kaslin

The WSJ ran a piece about the rumors of Illinois asking for a FEDgov bailout.


24 posted on 09/22/2012 7:38:42 AM PDT by junta ("Peace is a racket", testimony from crime boss Barrack Hussein Obama.)
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To: Kaslin

They are all heading towards gambling and there will be quite a bit of sausage grinding to be done to cut that bill. Hello, Madigan!


25 posted on 09/22/2012 7:38:42 AM PDT by Thebaddog (Remember, Obama said he's only 60% done with his agenda.)
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To: junta

Zerohedge piece that references the WSJ article.

http://www.zerohedge.com/news/piigs-america-illinois-preparing-request-federal-bailout


26 posted on 09/22/2012 7:41:54 AM PDT by junta ("Peace is a racket", testimony from crime boss Barrack Hussein Obama.)
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To: usconservative
“All told, I paid $57,962 in State Taxes (income, property tax) and all Federal taxes in 2011. I'm far from “rich” and these taxes are killing me. Yet, there are some who say I don't pay enough (while they pay NONE) and I should pay more?!

I can't stand it anymore.”


Sound like you need to move to a state that has no state income tax, a cap on property taxes,and has a state constitution requires a balanced budget (budgets are cut, when taxes don't raise the amount in the budget).
27 posted on 09/22/2012 7:42:06 AM PDT by Yulee (Village of Albion)
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To: facedown
Federal bailout....

That would be one way and it's possible, but I'm betting on regionalization.Starting with the schools, the wealthy and well to do burbs will be absorbed into the Chicago govt district. By the end of this contract all Cook County school districts will be part of the Chicago school district for tax and spending purposes. The real progressive desire would be to bus the poor into the burbs and the white kids back to Chi. That will cause revolution, but limiting the control to money raised and spent will accomplish the redistribution the progs want.

28 posted on 09/22/2012 7:48:21 AM PDT by xkaydet65
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To: usconservative

All I can say is: eat your peas.../ S

All kidding aside, I live in Tampa Florida and my property tax is 2.2 K a year and I live in a nice 25 year old 2400 sq ft home with a in ground pool...

How you put up with that level of taxation I will never understand...

Here in Florida we would vote every bastard out...


29 posted on 09/22/2012 7:50:20 AM PDT by Popman (In a place you only dream of Where your soul is always free)
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To: Kaslin
Of course they KNOW EXACTLY how it will be paid for..YOU AND I and our children, our grandchildren, and our great-grandchildren are intended to pay for it.

the Rahmster -and nobody else anywhere near this “Chicago Shakedown” merely hasn't the bal%& to publicly state so...

that was the whole purpose of this strike right before Obama leaves office (hopefully!!) was to get We the People on the hook for their fantasy contract.

30 posted on 09/22/2012 7:52:03 AM PDT by mo (If you understand, no explanation is needed. If you don't understand, no explanation is possible.)
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To: Popman
How you put up with that level of taxation I will never understand...

Believe me when I tell you I've been looking for a job OUTSIDE of Illinois for over a year now. Unfortunately for me, I'm 50 years old working in a "young man's" field these days which makes that task even harder....

31 posted on 09/22/2012 8:01:26 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Leaning Right
That is, in general, true. One of the foundations of a civilized society is the respect for contracts. Where would we be if an employer promised a worker $100 for a day's work, then was allowed to pay him just $75 at day's end?

I see this points, and I agree with the premise of unsustainability, but I'm irritated quite a bit about what's happening and so my rant just comes on automatically...:

This respect for the contract should go out the window when it turns out that the whole idea is founded on receiving taxes to pay for it, and the unions help elect the people who negotiate for the gov't. There's too much conflict of interest to make it a fair contract. We probably ought to demand that such deals, sweetheart or otherwise, be founded on annuities that are funded up front, and under the joint governance by the union and the gov't, with no future obligation of indenture for future generations of taxpayers.

Of course some gov'ts will just float bonds to keep the whole scheme working. That's fine as long as the risk is not subsidized. That means the bond must be honestly contracted with actual risk associated with how it's funded. For example a bond founded on the repayment by sales tax at a certain rate must only be paid by the identified sales tax, not indefinitely, and if the tax flounders then too bad for the bondholders, not too bad for the taxpayers. As it stands right now a whole lot of risk is completely subsidized on the backs of future generations, and that's reason enough to say these are dishonest contracts.

Dishonest contracts made with the government should be dishonored.

32 posted on 09/22/2012 8:02:34 AM PDT by no-s (when democracy is displaced by tyranny, the armed citizen still gets to vote)
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To: facedown

The Illinois budgets are expecting a federal guarantee of state borrowing under a 2nd Obama term.

Gov Quinn let this slip earlier in the week. I suspect Calif is similar.


33 posted on 09/22/2012 8:04:29 AM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: Kaslin

They DON”T CARE how it’s paid for!

They got theirs and THAT is ALL UNIONS care about.


34 posted on 09/22/2012 8:05:10 AM PDT by G Larry (Progressives are Regressive because their objectives devolve to the lowest common denominator.)
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To: Kaslin

This kind of behavior is ingrained everywhere. I served on a big city marathon committee that was a public/private partnership. We kept losing money, and each year I would say, “This thing is going down and going away” and each year the governor’s (Dem) office would sneak funding in from somewhere and keep it going. I’m off the committe now but they still put the thing on every year and I’m sure it’s never paid for itself yet.

“But it’s a showcase!”


35 posted on 09/22/2012 8:17:47 AM PDT by SaxxonWoods (....The days are long, but the years are short.....)
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To: xkaydet65

Blood in the streets before New Trier, Glenbrook (my HS), Glenbard, Hinsdale and a few others go the equalization route!

IIRC Michigan went that way a few years back.

Did any test scores change?


36 posted on 09/22/2012 8:18:51 AM PDT by DUMBGRUNT (The best is the enemy of the good!)
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To: Kaslin
Truth be told, if board member Penny Pritzker’s Hyatt Hotels operated that way, they’d be out of business. But, alas, this is government. They strike deals with unions and figure out how taxpayers will fund it later.

Truth be told, the public would realize these board members like Pritzker allow the unions to write their own ticket and in return, the unions give Pritzker and others, breaks when negotiating contracts of their employees.

In essence, the public picks up the tab of the savings in labor contracts for the board member's businesses.

37 posted on 09/22/2012 8:21:42 AM PDT by varon (I remember when America was American.)
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To: no-s
Dishonest contracts made with the government should be dishonored.

I actually think that's the key point. And I would define as "dishonest" any contract that does not have a solid current source of revenue behind it. Future promises and revenue hopes don't count.

38 posted on 09/22/2012 9:11:49 AM PDT by Leaning Right
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To: Kaslin
The teachers will just shake the kids down for their allowance money
like they shake the parents down for their rent money.


39 posted on 09/22/2012 9:15:22 AM PDT by Iron Munro (US Embassies Come and Go But An Obama Apology Lasts Forever)
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To: MinuteGal

If I’m not mistaken, PP was also a bundler of below the reportable individual amount, (mostly from foreign contributors it was suspected) to BHO 2008.


40 posted on 09/22/2012 9:23:57 AM PDT by Calvin Locke
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To: Kaslin
improved "benefits"???....what?...they want Fridays off too....

its not enough they have the cream of the crop health care, insane summer vacations, every weekend off, every holiday off, along with Christmas break and an extra day with Thanksgiving, and spring break....

this is why people are turned off by teachers.....they don't teach...

41 posted on 09/22/2012 9:44:23 AM PDT by cherry
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To: DUMBGRUNT

Nothing to do with test scores. It’s about redistribution of wealth. The idea was first fostered about 35-40 years ago with the concept of Megalopolis, then defined as the unbroken urban/suburban areas from D.C. to Boston. The 60s saw white flight and the growth of the burbs and urban problems too great for the financial resources of cities. Regionalization, starting with school systems, done through federal judicial fiat (see Yonkers and Judge Sand) would be a starting point, followed by the creation of area school districts and the dissolution of local suburban districts. Other areas of govt would follow in this expansion of power over local communities.

Two things brought it to a halt. One was the potential for violent opposition(see Boston busing)because of a variety of reasons, racism, fear of crime,desire to control your kids’ education, desire not to return to the control of the machine you left by moving out and two, was the Black power movement which sought to give black neighborhoods and communities control over their schools and other operations of city govt due to a belief that such govt being white controlled was either racist or unconcerned with problems in black communities. .( see Altschuler Community Control, 1970)

But if you read the goals of the Progressive Chicago machine Obama springs from you will see that regionalization and redistribution are promine In the late 60s and early 70s it was hoped local/state Progressive politics could persuade voters to accept this readjustment of govt boundaries, but now they see the control of the federal courts and bureaucracy as an opportunity to return to these goals.


42 posted on 09/22/2012 9:45:30 AM PDT by xkaydet65
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To: madameguinot

a guy called into Dave Ramsey the other day...his teacher wife is going to be getting $3800 a month...and he wanted to know the best way to gouge the system even more....


43 posted on 09/22/2012 9:46:18 AM PDT by cherry
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To: Kaslin

“...how they’re going to pay for the new contract.”

Darn the taxpayers!!! More taxes ahead!!! (For the children you know.)

IMHO


44 posted on 09/22/2012 10:42:29 AM PDT by ripley
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To: madameguinot

There are a lot of them, so I am sure some went to private schools. Not all are in the Chicago area. Also, my contacts are now grandparents and I am no longer friends with them, due to politics. Things were different in the 60s/70s and even in the 80s, especially in more affluent areas.


45 posted on 09/22/2012 12:14:00 PM PDT by reformedliberal
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To: Leaning Right

You’re right. It is just very frustrating to see perfectly healthy 55 year olds retired, having two homes, tennis membership, new SUVs, and complaining about contributing more to their healthcare!


46 posted on 09/22/2012 12:14:59 PM PDT by madameguinot (Our Father's God to Thee, Author of Liberty)
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The fellow citizens will pay these extortionist goons.


47 posted on 09/22/2012 12:18:17 PM PDT by Gene Eric (Demoralization is a weapon of the enemy. Don't get it, don't spread it!)
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To: Kaslin
Lou Dobbs said the strike and the negotiations were a theatrical production (political theater) necessary before the board could approve the raise. Had the board resisted, public opinion would have been on their side but then Big Labor likely would have replaced them next election.
48 posted on 09/22/2012 12:21:33 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: Kaslin

“Chicago School Leaders Don’t Know How They’re Going to Pay for the New Contract!”

Here’s my two cents: Cut everything that is not mandated by law. All sports, music, clubs, extracurricular activites, everything but the core subjects. Lock the doors after the last bell. That’ll make a few teachers redundant who can then be let go. Then start on the admin staff.


49 posted on 09/22/2012 12:49:31 PM PDT by PLMerite (Shut the Beyotch Down! Burn, baby, burn!)
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To: Kaslin
Oh, do they know!

Two words.

Reelect Obama.

50 posted on 09/22/2012 12:50:41 PM PDT by zeestephen
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