Medicaid Expansion Push Fails Again; Ditch The Spending And Enact Real Reform

Posted on by Patrick Ishmael

This Wednesday, the Obamacare crowd introduced, and then withdrew, their final attempt at Medicaid expansion in Missouri. That means the state will not expand Obamacare for another year, and that’s good news for Missourians. It isn’t “conservative” to strap a spending bomb to substantive Medicaid reforms and then call the whole thing a “transformation.” Legislators were right to reject it.

Instead of suggesting that special interests will block substantive Medicaid reform, Missouri’s policymakers should stand up, fight the special interests rather than carry their legislation, and deliver the Medicaid fixes we have been promised for years. That some lawmakers would articulate specific reforms and yet would block their progress as a way to force an expansion is as cynical as it is disappointing.

No doubt, expansion supporters will promise that the Medicaid fight will continue next year. And they’re correct. We’ll see you then.

The Illusive Millennials: Kansas City’s Hunt For The Perfect City Dwellers

Posted on by Joseph Miller

Have you heard of the millennials? They are big spenders and transit takers, would rather live downtown, and don’t mind higher taxes. They are every city planner’s dream, and Kansas City is spending taxpayer money on stadiums and streetcars and bar districts to pack them in. The only problem is, this simplified view of Americans ages 25-34 is a mirage, which city planners use selectively to support wasteful government projects.

Contrary to the rhetoric, millennials are relatively immobile and have lower incomes than generations that preceded them. This most likely is an effect of the credit crunch and economic downturn, which has left many millennials without steady incomes to spend or credit to buy new housing.

Also contrary to rhetoric, millennials are not upending the dominance of the car in American travel. In 2000, 5.4 percent of workers ages 16-34 used public transportation for their commutes. In 2010, that number increased to 6.1 percent. That is an increase for sure, but a rather small one considering the expansion of transit systems in the 2000s and the wealth-reducing effects of the recession. The vast majority still drive. Most trends point to a “car light” preference among young people rather than a dramatic move to transit reliance.

When millennials do move, it appears to be for economic reasons, not whether a city is considered cool or has a streetcar. The list of top 20 millennial destinations (of which Kansas City is No. 14), contains some cities with lots of public transportation (Portland, Washington, D.C.), but also many cities that are derided for urban sprawl (Houston, Atlanta, etc.). While the transit correlation may be spurious, all of the cities popular with millennials are among the top performing metro areas in economic growth. The obvious conclusion is that millennials, like the generations that preceded them, chase economic opportunity, not transit. As a millennial who has moved to cities for jobs multiple times, my experience is that the number of sports teams or streetcar lines matters very little in the decision-making process.

If Kansas City planners really want to attract millennials, they will stop trying to make Kansas City cool and focus on creating more opportunity. The millennials will bring the cool with them. Instead, Kansas City officials use a millennial straw man as support for a fabulously wasteful streetcar and other large government projects. And if we believe an author at the Kansas City Star, the only problem is the city hasn’t approved streetcar expansion fast enough. When it comes to looking cool, Kansas City spares no expense. That is, of course, until those millennials buck the plan and want to rideshare with Lyft. Then it’s more important for the city to protect taxi companies than to look cool.

Common Core Repeal – Think Of The Children

Posted on by Emily Watson

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Alonzo West wrote a piece last weekend in the St. Joseph News-Press about how repealing Common Core would affect students in Missouri. The conclusion? It wouldn’t really hurt them; in fact, it would have almost no impact.

West spoke with Brian Shindorf, St. Joseph School District’s director of elementary education, who gave keen insight into potential side effects of repealing Common Core.

“So the impact for us would be having to go back and revise our curriculum to not be aligned to the Common Core, but instead be aligned to whatever standards the state outlined for us. It would be a lot of work for us, absolutely,” Mr. Shindorf said.

The change would not impact children at all, he said. It would be a matter of realigning the standards to the appropriate grade level and students.

“It wouldn’t harm the kids,” he said. “The biggest impact would be the process the curriculum department and the teachers would have to go through to go back to the realignment of the standards.”

I believe Shindorf is correct – repealing Common Core won’t hurt students. It’s not like we would return to the Stone Age. Of course, one has to wonder: did starting Common Core in the first place hurt students?

Great Idea Will Be Hard Sell In Olivette

Posted on by David Stokes

I think the proposal by BWB Sports to build a privately operated athletic center on leased public land in Olivette, Mo., is terrific. At the same time, I understand the qualms many Olivette residents may have about the proposal. This looks like a great idea that is too much, too fast; a terrific proposal coming at the wrong time, like Galileo under house arrest or Jason Bateman in “It’s Your Move.”

The proposal is for BWB Sports to lease the land that now holds the Olivette Community Center and athletic fields around it. (My kids have played many team sports on those fields.) The company wants to build ice rinks, lacrosse fields, and more, and operate it as a private entity. BWB officials do not appear to be asking for a subsidy (I’ll amend this post if they are), which is one of the reasons I support this. However, the fact that they are going to lease this land will likely limit the expansion of the tax base, as the city will still own the land. (There likely will be some tax base expansion from business equipment taxes, concession sales taxes, etc.) Not to mention the fact that the company will pay Olivette to lease the land.

So, basically, you have some residents of Olivette telling me that the park and community center really are not in very good shape and desperately need an upgrade. While others – the ones showing up at the meetings attacking the proposal – are demanding that the park be protected and the land preserved.

There is no doubt about one thing – this is not a half-measure. This is a major change to the property that I think would significantly upgrade the facilities and use of the land. The only thing the proposal is missing is an outright sale of the property, which is politically impossible and legally complicated. So they are just leasing it, but I doubt that means much to the opponents.

I hope that Olivette officials can see the long-term benefits in this proposal. But, unlike other NIMBY situations, I see some merit in the residents’ concerns. This is not like recent disputes in Brentwood, Maryland Heights, or South County. I understand why some neighbors are objecting. As I said in my study about privatization in Missouri, park privatization proposals are very contentious for good reason. Outsourcing the management of existing park facilities is not that controversial, but wholesale changes to parks themselves are.

This is the latter. I hope it passes. I think the long-term benefits are significant for Olivette and Saint Louis County. This plan would increase use of the property, grow the tax base (somewhat), inject private money into Olivette recreation instead of counting on tax dollars, and more. But I am not going to attack the opponents as NIMBY-based obstructionists, even the Keynesians among them.

Corporate Welfare Defense: ‘We Could Have Taken More’

Posted on by Patrick Tuohey

Burns & McDonnell, a successful top-20 engineering firm based in Kansas City, is poor. So poor, that in order to build on a site adjacent to its headquarters, the company has to come groveling to the City Council for what amounts to corporate welfare. We had the opportunity to speak to KSHB on this matter as a council committee was considering the request.

Under the best circumstances, Burns & Mac officials claim they will create up to 2,000 jobs for only $40,000,000 in public taxpayer money. That is a cost of $20,000 for each job. That’s not bad by government standards; a study in Saint Louis found that Tax Increment Financing (TIF) created retail jobs at a cost of $370,000 each. Let”s hope the TIF is as successful as Burns & Mac claims, but experience suggests otherwise.

Soon we will write up an analysis of what Burns & Mac is asking for, and it isn’t as small a subsidy as they would like you to believe.

While the Show-Me Institute understands that businesses must seek the best deal they can, including public assistance if offered, we fault municipalities for being too eager to give away the shop. Burns & Mac is well connected. CEO Greg Graves is a former president of the Chamber of Commerce. Kansas City Mayor Sly James said the city was going to help the project months before Burns & Mac (publicly) asked for help. Those are the benefits of being a political crony.

But what’s worse about this whole ordeal is not Burns & Mac’s shameless rent-seeking, or promoting a public policy that has been proven unsuccessful, or that the earnings tax — which Graves said he is proud to pay — is being diverted to political cronies. No, the worst part is the response from Burns & Mac: “We are not requesting all the incentives that were available to us.”

In other words, “we could have taken more.” And certainly the City Council would have given more. Is that comforting to anyone?

Lyft And Kansas City’s Stifling Taxicab Regulations

Posted on by Joseph Miller

This week, Kansas City officials have been hard at work trying to keep ridesharing out of the city of fountains. First, the city rushed through an ordinance requiring permits for vehicles taking “donations” (as Lyft does) for travel. Then, the city pursued an injunction against Lyft for operating in Kansas City.

Some city officials, like Assistant City Manager Rick Usher, have argued that Lyft simply needs to apply for the proper permits. Why didn’t Lyft think of that? Its drivers go through background checks, have insurance, and get their vehicles inspected. Why not go one step further and get permits? The reason Lyft has not done so is that Kansas City’s Livery and Taxicab regulations prohibit Lyft’s business model.

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According to Kansas City ordinances, the definition of a livery vehicle is:

. . . a public six-passenger or less motor vehicle with driver included, for hire only by written agreement for exclusive use at a charge fixed in advance.

The livery classification was designed to encompass pre-arranged limo and premium sedan services. Lyft charges by both time and distance (not a fixed charge) and, of course, has no advance written agreements. In addition, the Kansas City taxicab code states that livery vehicles cannot:

. . . solicit passengers for transportation in a livery vehicle on any public way or at any public airport or operate a livery vehicle so as to cruise in search of patronage . . . no passenger shall be accepted for any trip in such vehicle without previous engagement for such trip at a fixed charge through the business office from which the vehicle is operated.

If Lyft’s drivers received livery permits, they could not drive around town for passengers, pick up passengers without existing agreements, or charge distance-based fares. Lyft’s business model would be impossible. Lyft’s drivers actually act more like taxis than livery vehicles, aside from the fact that they don’t use a taxi meter.

Unfortunately, taxicab regulations in Kansas City prohibit ridesharing companies’ drivers, such as Lyft’s, from obtaining taxi permits. These regulations include (but are not limited to):

  • Permits are only given to cab companies with a minimum of 10 cars, not individuals with one car.

  • The city has reached its 500 taxi permit limit, and will not issue more.

  • Taxis must use meters with prices that the city sets.

The bottom line is that if Lyft drivers receive livery permits, they cannot operate as Lyft drivers, and if they are to be considered taxis, they cannot get permits, period. Telling Lyft that it can operate if its drivers just apply for licenses is like telling someone he or she can join a football game as long as he or she doesn’t step on the field. I’ll leave it to the reader to decide whether the rules of the game are designed to protect public safety, or whether they are meant to keep newcomers out.

Should Missouri Cities Make Room For Ridesharing? My Uber Story

Posted on by Joseph Miller

On a recent trip to New York City, I had the opportunity to use Uber, a rideshare company that is attempting to break into the Saint Louis and Kansas City taxi markets. The service was fast, convenient, and certainly would improve the transportation options for residents in our largest cities.

Anyone who has been to New York City knows that, at least in Manhattan, the streets at times seemingly are covered in taxicabs. Nonetheless, just going out to the corner to get one can be a chore, especially when demand for cabs is high or the weather is bad. What’s more, most cabs in New York seat only four people, so traveling by cab in large groups can mean splitting up.

I found myself in just such a situation last week. It was midnight in the West Village, raining, with a group of five of us huddled in a small pizza shop. The time we spent arguing whether to take Uber was longer than we waited for the car we ordered, which turned out to be a Suburban. The driver was courteous and payment was all done electronically.

The experience was pleasant, and really prompts the question of why cities such as Kansas City and Saint Louis feel the need protect us from this service. The dogged opposition of regulatory bodies in Saint Louis and Kansas City to ridesharing companies such as Uber (and the way they went after Lyft) needs to end. I can think of a few better ways to support the development of Saint Louis and Kansas City restaurant and entertainment districts than to guarantee prompt and comfortable transportation at the push of a button.

Private School Option – We Can’t Sit This One Out

Posted on by James V. Shuls

My college track coach used to say, “We’re going to dance with the girls we came with.” Initially, I did not understand this colloquial expression. As I have aged, however, I have seen many circumstances where this expression captures the sentiment more than any other. It is especially true of the inter-district school transfer fix, Missouri Senate Bill 493. Different versions of the bill passed the Missouri House and Senate, a conference committee met, and now we have the final draft of the bill. This is it. There is no substitute. There is no other fix to the problems with the transfer program. We have to “dance with the girls we came with.” Yet, the education establishment seems perfectly willing to sit this dance out.

For them, the tiny provision that would allow students in unaccredited schools to attend a private school crosses the line. In their view, public dollars simply should not go to private schools. There is just one problem with that view – they already do. In fact, there is tremendous precedent for allowing public dollars to go to private schools and private organizations. Students use public dollars to attend private colleges and universities. K-12 public schools contract with private providers of all kinds of services, from school maintenance to food service; some even contract with private schools to help deliver educational services.

Take ACE Learning Centers, for example. ACE is one of the few private schools that would meet the narrowly defined criteria in SB 493. The school is located in an unaccredited school district and recently received accreditation from the North Central Association on Accreditation and School Improvement.

ACE currently has 12 centers and serves students from at least six school districts. An external review that AdvancEd conducted of ACE Learning Centers noted that the 2012-13 graduation rate was 86 percent. This is markedly higher than the nearby unaccredited public schools, where nearly half of students fail to graduate on time. This fact is especially remarkable when you consider that ACE serves students who are at risk of dropping out.

Josiah Ace Learning Centers

Speaking of his ACE experience, student Josiah said, “ACE is giving me another shot to finish high school and graduate with a diploma. I would recommend ACE to any student having trouble in their home school. I’m able to get a lot done with my classes here at ACE – I learn much better here.”

ACE Learning Centers and other private schools throughout the state are already using public dollars to serve students in Missouri. These schools are no less valuable to the public simply because they are privately run. The beauty of the private option in SB 493 is that it might allow more students like Josiah (and Adam, Bianca, Georgia, Eddie, etc.) to attend ACE Learning Centers.

The education establishment is wrong to draw a line in the sand on this issue. If they want to fix the problems with the transfer program and save the Normandy and Riverview Gardens School Districts from impending bankruptcy, they cannot sit this dance out.

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