Public Schools Need Fewer Mandates, Parents Need More Choices

Over the past year, the Normandy School District has grabbed the state’s attention, and for good reason. Little more than half of the district’s students graduate on time. For those that do, the prospects are slim. Of the 125 Normandy students who took the ACT in 2014, just eight performed as well as or better than the national average. The composite ACT score was a paltry 16, not good enough for most state colleges.

While it is useful to examine what is happening in Normandy, it can distract us from problems in all Missouri schools. According to the National Assessment of Educational Progress (NAEP), just 35 percent of Missouri fourth graders are reading on grade level. Roughly a third of our college students take remediation courses. Missouri public schools are having an incredibly tough time carrying out their primary directive—educate students. Yet, some look at our schools and want them to do more.

It seems every interest group, lobbyist, and legislator with a particular hobby horse wants to require schools to include their issue in their curriculum. Currently, legislators are calling for more bullying prevention programs and for an increased emphasis on civics education. Add those issues to sex education, gun control or gun awareness, criticisms of evolution, global warming, and a host of other topics that have been touted in recent years, and it’s easy to see that schools are being inundated by agendas.

While each of the issues mentioned could have value for Missouri’s K-12 students (that is really a subjective opinion), mandating new requirements for Missouri public schools is likely to cause mission creep, distract from efforts to teach students to read and do math, and cause controversy. Public schools already struggle to educate Missouri’s children. Diverting resources to new mandates would exacerbate the fundamental issue that our schools face.

Like lawmakers, parents have their own mandates and demands for the schools. Whether at the state or local level, however, we are never going to agree on all of the things that schools should do. The solution is not more mandates, the solution is more choice.

Instead of dictating what schools should do, lawmakers should focus their attention on giving parents more educational options. Allow parents to choose the school that most closely aligns with their values and their sense of mission, whether the school is private, public charter, or traditional public. We cannot make sure that every school caters to every family’s needs and preferences, but we can make sure every family has the ability to choose the school that comes closest.

Simply layering mandates on top of one another will not solve any of our educational problems, and it will not improve the educational system. A system built around school choice, however, has a better chance at both. It will allow individuals to choose the school that meets their needs, without forcing their will on others. Choice also will help create a system of continual improvement, which leads to increased efficiency.

We cannot mandate our way to a system that meets everyone’s needs. The more we try, the further we erode a local school’s ability to adapt, innovate, and meet the individual needs of the students it serves. It’s time to stop asking schools to do more and more. It’s time to start allowing parents to choose.

Fewer Mandates, More Choices Needed in Education

got school choice

Schools today are asked to teach a lot more than reading, writing, and ‘rithmetic; and if lawmakers have their way, the list of topics mandated for instruction will continue to grow. Currently, proposals in the Missouri Legislature would require schools to caution students about sexual predators and inappropriate text messages, beef up bullying prevention, and cram in more civics education. While there may be value in these issues, continually mandating new requirements is counterproductive to improving Missouri’s educational system. It invites mission creep, distracts from core educational duties, and causes controversy.

Schools, and parents, do not need more mandates; they need more freedom.

Instead of dictating what schools should do, lawmakers should focus their attention on giving parents more educational options. Allow parents to choose the school that most closely aligns with their values and their sense of mission, whether the school is private, public charter, or traditional public. We cannot make sure that every school caters to every family’s needs and preferences, but we can make sure every family has the ability to choose the school that comes closest.

Simply layering mandates on top of one another will not solve any of our educational problems, and it will not improve the educational system. A system built around school choice, however, has a better chance at both. It will allow individuals to choose the school that meets their needs, without forcing their will on others. Choice also will help create a system of continual improvement, which leads to increased efficiency.

We cannot mandate our way to a system that meets everyone’s needs. The more we try, the further we erode a local school’s ability to adapt, innovate, and meet the individual needs of the students it serves. It’s time to stop asking schools to do more and more. It’s time to start allowing parents to choose.

Kansas City’s Shifting Development Claims

How much has downtown Kansas City grown? And why? It’s not so easy to know. Here are some claims from the past year.

In January 2014, streetcar boosters floated downtown economic growth figures of $879 million. By March of that year, they reduced it to $791 million. That dropped further to $750 million in May. According to KCTV at the time [emphasis added]:

The mayor also said businesses are already investing $750 million in downtown, like with the new Marriott Hotel that’s set to be built just feet from the construction site. The mayor said it’s all thanks to the new streetcar.

KC_skylineA few months later, the number shot up to $900 million again, albeit with a caveat. Amy Hawley at KSHB reported:

The city has long said streetcars drive business. It attributes $900 million of new downtown business to the new streetcar line.

“We have about $900 million in projects in the downtown area right now since the starter line was first approved by the voters,” Chris Hernandez, the KCMO Director of Communications, said.

Those are very different standards. On the one hand the city wants to say the development happened because of the streetcar, on the other the city says the development happened after the streetcar. This is a classic logical fallacy: post hoc ergo propter hoc or “after therefore because of.” The city wants to claim everything that happened after the streetcar vote as happening because of the streetcar vote. We have pointed out that basic flaw for over a year here and here and here.

As of January 2015, the number is $1.24 billion, according to the Downtown Council. They put the number at $1.24 billion according to their “research.” But they seem to commit the same logical fallacy as the city [emphasis added]:

The past two years marked the beginning of an exciting new chapter in the renaissance of Downtown Kansas City as more than $1 billion dollars of new investment was announced or started construction since voters approved the new streetcar line.

If the economic development benefit of streetcars is so concrete, why can’t boosters agree on a number? The answer, of course, is that the numbers aren’t concrete. In fact, they’re often baseless.

Alcohol Tax Rates Are Low . . . and They Should Stay That Way

I think we can all agree that drinking in excess is not good for you. Not only is it bad for your health, but if you’re not smart, such a habit could end up destroying the lives of others as well. That’s why I applaud the intentions behind Christopher Ingraham’s recent op-ed, if not his prescription.

wineIn his article, Ingraham calls for raising alcohol taxes, stating: “Higher taxes make alcohol more expensive. More expensive alcohol makes people drink less of it. And when people are drinking less, they’re less likely to suffer costly health problems or do stupid things like drive drunk.”

If Ingraham’s ultimate objective is to make people drink less alcohol, why not just ban it? Wouldn’t prohibition really reduce the health problems associated with alcohol consumption? However, we’ve already tried Prohibition, and it didn’t work out too well. So Ingraham’s alternative is to raise taxes to cut down on consumption. Except, there are problems with that approach as well. Increase taxes too much and people will resort to smuggling. It’s happening in New York with cigarettes. What’s to say it wouldn’t happen with alcohol?

Both Ingraham and I want to cut down on drunk driving. Thankfully, drunk driving is already on the decline. Since 1986, alcohol-related fatalities have seen a 54 percent decline! Why solve a problem that is already fixing itself?

There are negative side effects to raising alcohol taxes as well. Because of our low taxes on alcohol, cigarettes, and gasoline, commuters from out of state make it a point to purchase these products in Missouri. If we raise taxes on alcohol we are removing an incentive for people to shop in Missouri. If less people shop here, Missouri businesses will suffer and the state will see less tax revenue. How will that help anybody?

I can sympathize with Ingraham’s efforts to curb the more negative effects of heavy alcohol consumption, but the biggest problem, drunk driving, is becoming less of one over time. Coupled with the fact that increased alcohol taxes can hurt Missouri businesses, we should leave tax rates alone and focus on other ways to improve public health and safety.

The Basics of Government Union Reform

Missouri law pertaining to government collective bargaining contains serious inadequacies. The law is part the product of individual court cases, part 50-year-old statute, part long-standing practice, and fails to adequately protect the rights of both citizens and workers. The picture below presents the basic reforms that would help restore accountability. I’ve written more in-depth on each of these needed reforms: union elections, open collective bargaining, and financial transparency.

The 27th State: Missouri’s Place in “Rich States, Poor States”

For folks in the free-market movement, the annual publication of Rich States, Poor States (RSPS) in many ways marks time. The book is part almanac and part analysis; it explores the minutia of state economic policies nationwide, highlights ongoing state economic successes or failures, and assesses the prospects of states succeeding economically in the future.

rich-states-poor-states-2015-edition-1-638It always makes for interesting reading, and this year’s edition (released last week) is no exception. Missouri’s economic performance has bounced along RSPS’s bottom quintile of states since its first edition, and unfortunately Missouri hasn’t made much progress since 2008; Missouri now ranks 42nd of 50 states in economic performance for 2015. That finding is consistent with economic assessments we’ve shared with readers in the past. Simply put, the state hasn’t made a lot of economic progress over the last decade relative to its peers.

Missouri is seeing movement in its “economic outlook”—but it’s all in the wrong direction. In 2012 Missouri ranked 7th for how bright its economic future appeared, which at the time I noted that the ranking looked a bit like an aberration. Only three years on, however, the state has dropped back to 27th overall. That is the worst Missouri has ever done in RSPS’s outlook ranking, dating all the way back to 2008 when the state ranked 25th. Suffice it to say, a weak economic track record paired with a mediocre economic outlook doesn’t inspire a lot of confidence in the status quo.

The fact is not a whole lot changed from 2013 to today, which is sort of the problem. States across the country are pursuing tax cuts and regulatory reforms in earnest, and yet Missouri has been slow to respond for years. Last year’s tax cut was an important first step toward turning the economic tide, but it is too small and being too slowly instituted to be a last step. Time is running out for the legislature to do much on the tax issue this year; it will be interesting to see if the body chooses to do nothing.

Ridesharing Is an Opportunity for Saint Louis

In an increasingly competitive world, it is ever more important that our city and our region seize every opportunity to become a more inviting place to work, live, and set up a business. But too often, special interests ally with control-oriented public officials to stifle innovations and protect the modus operandi. Local officials can claim to have protected the consumer, and the special interests can point to the businesses they have “saved,” but less visible damage is done to Saint Louis’ competitiveness, and so many advantages are thrown away. A clear example of this shortsighted policy is Saint Louis’ treatment of ridesharing.

Ridesharing companies like Uber and Lyft are rapidly growing across the country. Their popularity comes from the ability to provide quick, convenient, and inexpensive rides, especially compared with traditional cabs. A study in San Francisco found that more than 90 percent of customers who requested Uber or Lyft had a driver arrive in less than 10 minutes, a huge improvement over traditional cab service. In New York City, the average Uber response time is faster than that of ambulances. Payment is electronic and customers rate drivers, allowing for quality control.

In addition to making it easier to get a lift home, ridesharing may also increase public safety. Ridesharing companies often use peak pricing to ensure the supply of drivers matches demand, no matter the time. The ready availability of drivers makes the safe choice the easy choice for the late-night crowd. Uber claims that incidences of drunk driving have fallen considerably where they operate freely, such as Austin and California.

Normally, Saint Louis officials would be eager to support a new service that increases mobility within the region while potentially creating hundreds of new jobs. In the case of ridesharing, there is no real cost to extending such support other than the political cost of refusing to kowtow to taxicab lobbying. Ridesharing is provided by locals, using resources they already own: personal vehicles. More than 90 percent of metro area households have one vehicle; around 60 percent have two or more. Ridesharing allows Saint Louisans to make better use of these resources by giving rides to other residents and visitors.

For local officials and regulators, ridesharing is a danger to the customer and unfair competition. It’s not safe, they say, despite the fact that large ridesharing companies perform extensive background checks. There’s an insurance problem, they say, despite the fact that Uber and Lyft have extensive insurance policies. Ridesharing companies price gouge, they say, demonstrating their failure to understand how peak pricing ensures that there are always cars available.

In reality, the taxicab industry in Saint Louis has been tightly regulated for decades, often in ways that actively harm, not protect, the customer. The Metropolitan Taxicab Commission, with taxi company owners as members, controls the supply, price, and even dress code of taxi companies in Saint Louis City and County. These regulations effectively block anything but limited, expensive ridesharing options.

Ridesharing companies have the potential to deliver huge benefits to the Saint Louis region, by leveraging the resources residents already own. At the state level, and in other Missouri cities, efforts are under way to remove regulatory barriers to ridesharing. Saint Louisans should encourage these efforts, and support local policy change. They should not let the naysayers, who fear loss of control or heightened competition, deny the region of those benefits.

 

Tax Incentives: How Much Money Do Governments Give Away?

This summer the Governmental Accounting Standards Board (GASB) is set to release new guidance to state and local governments on how to report the tax incentives they distribute every year. The nonprofit board largely determines financial reporting standards for state and local governments. So although GASB may itself seem like an obscure organization, its guidance is closely watched and widely accepted by governments across the United States.

As reported in The Nerve,

. . . state and local governments for the first time would have to report, among other things, in their annual financial statements:

  • General description of their tax abatement programs;
  • The total number of tax abatement agreements entered into during the reporting period, and the total number of agreements in effect at the end of the period;
  • The dollar amount by which the reporting government’s tax revenues were reduced during the reporting period because of tax abatement agreements; and
  • A description of the types of commitments other than to reduce taxes—for example, tax dollars spent on purchasing land and installing utility lines—and the most “significant individual commitments other than to reduce taxes, if any, made by the reporting government in tax abatement agreements.”

Translation? Governments would have to disclose, in a standardized format, exactly how much money they give away. That’s a huge paradigm shift, both from the standpoints of government transparency and public research. Greg LeRoy of Good Jobs First, a Washington, D.C.-based think tank that looks at tax incentives, called the development “tectonic.” “These things (incentives) have gotten so out of control, so overgrown, so arcane—it’s been off the radar.”

LeRoy is right, of course. If local and state governments have to divulge all of the relevant details about the incentives they’re giving away, it could have a huge impact on how governments interact with tax incentive beneficiaries—and how taxpayers view the tax incentive programs themselves. As explained in the blog Next City,

Cold, hard numbers could soon settle the heated debates about whether tax incentives encourage regional growth and competitiveness or simply deplete public resources. LeRoy argues that any site location consultant for a corporation could tell you that tax breaks often don’t affect the bottom line: State and local taxes comprise less than two percent of a company’s total cost structure. Other environmental factors like labor, logistics and materials matter much more. But companies would never admit that to the governments offering them free money.

Like other places around the country, Missouri’s tax incentive programs are a mess. If GASB institutes robust accounting standards for these incentives—and it appears it might—it may go a long way to draining the cronyism swamp in this state. Cross your fingers.

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