Saint Louis Ridesharing Update: MTC Still Dragging Its Feet

Posted on by Joseph Miller

Ridesharing has had a bumpy ride in the Saint Louis area. The Metropolitan Taxicab Commission (MTC) strictly regulates the number of cabs, the prices they can charge, and even minutiae like the color scheme of taxis. It is a regulatory system marked by parochial, top-down control. So when Lyft began operating in the metropolitan area without the permission of the MTC last year, the official response was hostile. Police ticketed Lyft drivers, and the company was forced to cease its Saint Louis operations.

The bright spot for residents hoping to use ridesharing was Uber’s entry into the Saint Louis market. By negotiating with regional power brokers, such as Mayor Slay and the MTC, Uber was able to secure regulatory changes that would allow it to operate its expensive black car service, which launched last October.

Unfortunately, the relaxation in regulation was only very slight, and the MTC still firmly regulates taxi operations in the Saint Louis area. For example, the MTC only allows Uber to act as a dispatch service for MTC-licensed premium sedans, the number of which the commission has limited (initially the MTC added only 26 new vehicles to accommodate Uber). The MTC also passed restrictions to ensure that Uber Black uses only premium sedans and charges premium prices, lest they compete with normal cabs.

Notwithstanding the subsequent undersupply of Uber vehicles, Uber claims significant demand and wishes to expand its black car service and begin operating UberX, the company’s true low-price ridesharing service. But unlike cities across the country (including Kansas City and Chicago) the MTC has not shown the inclination to make the large-scale regulatory changes that would open the way for innovative ridesharing companies or create a more robust taxi market.

In a city where officials ceaselessly talk about attracting businesses and innovators downtown, it is shocking that they are unwilling to reduce regulations in order to make the city an easier place to work and play. If Saint Louis is going to experience sustained revitalization, it is going to come from being a leader in fostering new businesses, like ridesharing companies, that residents choose to patronize. It will not come from splashy, taxpayer-funded development schemes that regional leaders repeatedly propose.

Open Collective Bargaining at Monarch

Posted on by John Wright

In October 2013, the Monarch Fire Protection District implemented a new approach to collective bargaining with the union representing rank-and-file firefighters. Rather than hold meetings on pay, benefits, time off, and work rules behind closed doors, the board of the fire district decided to make these meetings open to the public.

With open collective bargaining, any citizen, journalist, or Monarch employee interested in the process could show up to a meeting and see the demands made by the union and the board. In theory, this process would keep demands in check, tactics civil, and allow the public to see how government decisions are made.

One might think that a more transparent process for determining how a government entity delivers services and spends taxpayer money would be welcomed by all; however, it appears that the union did not like the arrangement.

“The union lawyer tried stunts to close the meetings to the public,” says Jane Cunningham, one of three members of the fire district board.

According to Cunningham, when collective bargaining was held behind closed doors, it was easy for the union to get whatever terms they wanted in the contract. In essence, the union was able to exert complete control over the fire district because it had majority control of the board and could collectively bargain without public scrutiny.

No one would suggest that private-sector collective bargaining should occur in public forums. That’s because the terms and conditions of private employment are, well, private. But the public has an interest in what public employees are paid, both because taxpayers are picking up the tab and because the right balance of compensation is important to getting good service without being overcharged.

Now that open collective bargaining is in place at Monarch, it appears that the union is no longer getting exactly what it wants in collective negotiations, and community interests are being better served.

Will other government entities open their collective bargaining negotiations? Only time will tell. For now it appears that Monarch is taking a step in the right direction with this innovative approach to government transparency.

At the time this story went to print, the firefighters union had not responded to our request for comments.

Level the Playing Field for Uber and Taxi Companies Through Deregulation

Posted on by Joseph Miller

02_lyft_arrive
Kansas City, Mo., heavily regulates its taxicab industry. As we detailed before, the city limits supply (to 500 cabs), manages pricing, and even stipulates what drivers may wear. These types of limitations have resulted in a stagnant and oligopolistic cab industry, ill-prepared to deal with well-capitalized and innovative competition.

Enter Uber, Lyft, and other app-based ridesharing companies. Kansas City’s stringent taxi regulations are not well designed for new technology or the use of personal vehicles for transportation on which these companies rely. When Lyft entered the Kansas City market without receiving city hall’s permission, officials filed injunctions and accused Lyft of endangering public safety.

Since that time ridesharing has made some progress in the City of Fountains. Uber, with the blessings of city hall, launched its black car service and UberX in the second half of 2014. While the process has encountered a few problems (some UberX drivers are still being ticketed over regulatory issues), the city has shown flexibility. Lyft was even allowed to operate until it voluntarily suspended operations on October 24, 2014, to await possible regulatory changes.

Those changes might be close at hand. The city is in the process of reviewing all of its taxicab policies, and proposed changes include modernizing regulations, removing some barriers to entry, relaxing requirements for vehicle inspections, and easing requirements for vehicles’ commercial insurance. That Uber and Lyft drivers do not carry primary commercial vehicle insurance has often been a cudgel used to attack these ridesharing companies, despite evidence that suggest over-extensive insurance does not protect public safety.

Adopting a “trust but verify” system toward ridesharing companies is a step forward for Kansas City, but that spirit should also include traditional taxis. When Kansas City allowed UberX, a direct competitor to taxi service, to offer services under “livery vehicle” regulations (designed for limousines and premium sedans), it essentially created a two-tiered market: the highly regulated traditional taxis vs. the less regulated Uber. That puts cabs at a distinct disadvantage and may mean they are driven out of the market. Putting cabs out of business through overregulation is not progress, any more than regulating ridesharing out of Kansas City would be.

Instead, Kansas City officials should use this opportunity to stop micromanaging the taxi business and limit itself to requiring taxis to carry adequate insurance, perform background checks, and pass vehicle inspections. A truly open for-hire vehicle market could accommodate both high-quality traditional taxis alongside innovative business models; and that would provide the greatest benefit to the residents of Kansas City.

A Bad Idea That Sounds So Good

Posted on by Michael Rathbone

I love my dog Wiley. She is sweet and loyal and kind. I adopted her nine years ago, and I can’t imagine my life without her. That’s why I can’t begrudge someone who wants to encourage others to adopt pets. Senator Maria Chappelle-Nadal wants to do just that with her bill that would offer a $300 tax credit for adopting pets from licensed shelters.

In all the areas of government overreach and wasteful spending, this doesn’t come close to taking the cake. Honestly, it’s an appealing prospect. I mean, look at the picture below. Who would be against this puppy getting adopted? It shouldn’t take a tax credit for someone to support adopting puppies.

GoldenRetrieverPuppyDaisyParkerBut this proposed bill wants to do just that, subsidize pet adoption, and the subsidy is the bad idea.

I want dogs to be adopted. I have a soft spot for dogs, and whenever a dog dies in a movie, I turn into Niagara Falls (don’t judge me—a lot of guys cry at the movies). However, the government shouldn’t be in the business of helping people pay for pet adoption. It should be in the business of providing basic goods and services necessary for a functioning society (police, firefighters, and prisons jump immediately to mind). Pet adoption is the purview of individuals and private organizations. If the government kept its spending down to the bare essentials, taxes would be low enough so that taxpayers would have more money to spend on a variety of admirable things: adopting puppies, saving the spotted owl, and preserving the rain forest.

Missouri has issued tax credits to things that frankly don’t need them, like country clubs and movie stars. Adopting pets isn’t nearly an egregious waste of taxpayer dollars as the former two, but it still shouldn’t occur. I hope it will never get the chance.

Puerto Rico: A Transportation Privatization Example for Missouri

Posted on by Joseph Miller

With its reputation for tourism, rum, and sun, many might be surprised to find out that Puerto Rico actually is a leader of using the private sector to improve infrastructure under tight fiscal constraints.

Puerto Rico has entered a privatization boom in the last few years, due mostly to past financial mismanagement. Both the port authority (which owns Luis Munoz Marin International Airport) and the Puerto Rico Highways and Transportation Authority (which is responsible for highways and transit) spent heavily in past decades on projects like the Tren Urbano, a $2.25 billion rail line with low ridership and large operating deficits. After the financial crisis hit, Puerto Rico’s transportation authorities had large debt problems and a transportation system in need of investment.

To simultaneously reduce debt and raise capital for transportation improvements, the government privatized major transportation assets. In 2011, Puerto Rico leased two of its toll roads, PR-5 and PR-22, to Autopistas Metropolitanas de Puerto Rico, LLC. The company paid the government $1.1 billion upfront and agreed to make $350 million in capital improvements.

In 2013, Puerto Rico leased Luis Munoz Marin International Airport, the island’s largest, to Highstar Capital and Grupo Aeroportuario del Sureste SAB de CV, the first such lease of a large airport in the United States. The consortium agreed to pay more than $600 million upfront, along with additional yearly payments. The good news for travelers is that the consortium plans to invest over a billion dollars modernizing what can be a hectic airport.

Aside from major privatization deals, Puerto Rico (in contrast to other U.S. cities) continues to rely heavily on the private sector to operate public transportation. In fact, the most popular form of transit on the island are publicos, small vans and buses that cover much of the island’s metropolitan areas. Publicos are privately owned, and the system has the distinction of being the only primary bus system of a large U.S. city that uses almost no public subsidies. San Juan’s municipal bus system, which operates large city buses, also leverages the private sector by contracting out the operation of its buses to a private company, First Transit.

Missourians should take two major lessons from Puerto Rico’s experience. First, the private sector is capable of maintaining transportation infrastructure. The commonwealth’s largest airport, toll roads, and public transportation system are privately operated. Second, the private sector can provide significant capital for improvements. The lease of Puerto Rico’s toll roads and airport netted $1.7 billion in upfront payments and commitments for an additional $1.35 billion in infrastructure improvements. Missouri residents should learn from Puerto Rico’s example and explore areas where the private sector can help the state improve transportation. Missouri would be better off if these options were explored before the next funding or debt crisis.

Kansas City Public Schools Embraces Charter Education

Posted on by Brittany Wagner

On Wednesday, the Kansas City Public Schools (KCPS) Board of Education voted to submit an application to the Department of Elementary and Secondary Education (DESE) to sponsor a charter school.

Kansas City currently has 25 charter schools, enrolling more than 40 percent of all public school students in the city. Last year, KCPS decided to partner with Academie Lafayette, the French immersion charter school, on a program at Southwest High School. However, none of the existing schools have been sponsored by the district itself. This is the first step in the district becoming a sponsor of charter schools. It will be the second school district in the state to do so—Saint Louis Public Schools sponsors Construction Careers Academy.

Since their inception, charters often have been met with suspicion by public school officials. In Kansas City, it seems that perception is changing as the district recognizes that charter schools may have something traditional public schools need—niche educational opportunities.

Charter schools are independently run and typically have more freedom. This gives them the flexibility to reach students whose needs aren’t being met in the traditional setting. For example, a Pennsylvania public school district sponsored the Pennsylvania Virtual Charter School in 2001. The virtual school now enrolls 3,000 students across the state and grade levels.

The sponsorship of charter schools by traditional public schools is an opportunity public school districts throughout the state should not pass up. It is the competitive advantage to offer more options within one school district. Imagine if a rural or suburban school district sponsored a charter with a science and engineering focus. Perhaps a student who felt his needs weren’t being met in a private school would enroll at the local charter school instead.

Students in any type of district, whether urban or rural, low-income or high-income, need options. Educational partnerships and traditional public school sponsorships have the potential to provide those options.

Missouri Ranks 33rd on New Quality Counts Report

Posted on by James V. Shuls

As they do at the beginning of every year, Education Week released their “Quality Counts” state report cards. Once again, Missouri ranks in the middle of the pack, 33rd overall with a C- grade. For regular readers of the Show-Me Daily blog, this should come as no surprise. Missouri has been stuck in the middle for years.

Why is Missouri perpetually in the middle when it comes to academic rankings? After all, we are several years into an initiative launched by the Missouri Department of Elementary and Secondary Education to get Missouri into the top 10 by 2020. This initiative has spawned changes at nearly every stage of education, from pre-kindergarten to teacher preparation. One could argue that these changes just haven’t had time to take root, and once they do, Missouri students will be making academic gains like gangbusters. I doubt it.

Missouri is not likely to make significant improvements, because Missouri’s education policies are predicated on getting things right—if we get certification right, teachers will get better; if we get standards right, instruction will improve; if we get accountability tests right, achievement will rise. The list could go on and on. The problem is that we don’t know the “right” way to do these things for every child and every teacher in every school, and we never will. Until our education policies shift from a “getting things right” mentality to one that fosters continuous improvement, we should not expect marketable differences in outcomes.

How do we do this? Andy Smarick outlines a nice plan in his book, The Urban School System of the Future. He starts with a somewhat controversial but true premise, “The traditional urban public school system is broken, and it cannot be fixed. It must be replaced.” Smarick goes on to substantiate this claim and offer a solution, creating an educational market where new schools regularly open and bad schools regularly close. This is how improvement happens in every other sector.

Smarick’s proposal would require substantial legislative changes, but here are two easy places for Missouri to start moving in the right direction.

  1. Allow charter schools to enroll students across district boundaries.

  2. Expand options for students by establishing an Equal Opportunity Scholarship program.

These changes themselves will not get us anywhere near what The Urban School System of the Future outlined. They will, however, begin moving Missouri toward that system of continuous improvement.

School Visit Series: A Charter School With a Goal

Posted on by Brittany Wagner

The South Building of Ewing Marion Kauffman School in Kansas City looks much more like a new academic building than a charter school serving low-income middle-school students. Streams of natural light flood the high-ceilinged lobby. On the wall next to the entrance is a portrait of the school’s late benefactor paired with the former Kansas City Royals owner’s quote, “You, you, and every one of you can go to college if you choose.”

kauffman entrance

Kauffman’s goal to “create college graduates” pervades the three-building campus. University flags hang on the walls. Students are divided into groups named after the universities teaching faculty attended. Teachers connect with students by sharing personal photographs, fight songs, and university traditions from their own college years. “It continues to invest kids in this idea that the people around you want you to have the same opportunities as they had and we don’t want socioeconomic status or zip code to hold you back from that,” said Candace Potter, talent recruiter for the school.

flags

“Kids who grow up in low-income communities, about 10 percent graduate from college by the age of 24 … and we want to break that statistic,” she added. The school seems to be on its way.

Though 82.4 percent of students are eligible for free-reduced lunch, Kauffman earned 88.6 percent of possible points on the state’s Annual Progress Report. This means the charter is only 1.4 percentage points from being classified as Accredited with Distinction, which is stunning considering, according to Potter, most students begin below grade level.

One of those students is fifth-grader Aunecia Smith. She reports both her behavior and academics have improved since arriving at Kauffman, having previously attended George Melcher Elementary, a Kansas City public school. “It’s really not like this school. Their expectations weren’t as good,” she said.

Aside from rigorous academic expectations, the school invests in four PREP values, which serve as “current and future tools for success.” At frequent awards ceremonies, students are recognized with “PREP stars.” Aunecia, who wants to be a pediatrician when she grows up, has received two. “I have to change the channel on the TV when I see kids with cancer,” she said.

Quality charter schools like Ewing Marion Kauffman exemplify how school choice can set students on the course for success. Aunecia is just one student for which a charter school has made a difference, but if charters were able to expand regardless of district accreditation status or geographic location, many more students might be affected.

Before heading back to class, Aunecia said to me, “Every kid should go to a charter school.” I think what Aunecia really means is that every child should have access to the type of high-quality education she is receiving.

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