Michelle Rhee: Radical: Fighting to put Students First

Educator Michelle Rhee joined Crosby Kemper III for a public conversation about her new book Radical: Fighting to Put Students First and explained her ideas for improving public education by ensuring that laws, leaders, and politics are making students – not adults – their top priority.

Rhee is past chancellor of the Washington D.C. Public Schools and the founder, CEO, and president of the New Teacher Project. In 2010, she founded StudentsFirst, a non-profit organization which works on education reform issues such as ending teacher tenure. This event was co-sponsored by the Show-Me Institute.

Love Is Hate, War Is Peace, General Tax Cuts Are Corporate Welfare

It seems the St. Louis Post-Dispatch thinks business tax cuts amount to corporate welfare. That is NOT corporate welfare. Corporate welfare is the government giving subsidies, grants, loopholes, and other forms of preferential treatment to specific businesses. The Export-Import Bank is an example of corporate welfare.  At the state level, various instances of Tax Increment Financing (TIF) count as corporate welfare. However, letting a person or business keep more of what he/she/it earns is not corporate welfare.

That is not how the Post-Dispatch sees it. They believe that all money is the government’s money and that we should be grateful for the few cents they leave us.

The substance of the Post-Dispatch’s argument against business tax cuts? They claim there is little evidence to support the assertion that cutting business taxes will result in increased economic activity. Except this study by Jens Arnold found that corporate income taxes were one of the most economically harmful taxes a country can impose. And this study by the Tax Foundation analyzed the economic literature and found that corporate income taxes are the most harmful to growth.

Even one of the articles they cite to support their position states, in regards to start-ups creating jobs, “their decision to create a new job would be based on whether the long-term cost of that new job would be offset by higher revenues and profits.” Well . . . if a company has more money after taxes (because their taxes go down), what will happen to their profits? They will increase.

Tax cuts aren’t everything, and even if House Bill 253 becomes law, it alone will not cause our state’s economy to go gangbusters. However, tax rates DO matter, and no amount of screeching from the Post-Dispatch will change that.

Lack Of Support For School Choice Is Puzzling

Do you like riddles? Here is one for you: What is comprised of 197 members, is active for approximately five months, and is full of inertia? If you answered the Missouri General Assembly regarding education legislation, give yourself a gold star. The state’s legislative body just concluded the general session. In terms of education reform, they achieved very little.

The goal of the legislature should be to improve educational options for Missourians. They could accomplish this with meaningful school choice legislation.

As I noted in my recent essay, “Public Dollars, Private Schools: Examining the Options in Missouri,” greater school choice would be a net positive for Missourians. School choice puts the power back into the hands of the parents and it can save taxpayers money.

This year, however, the topic of school choice was rarely discussed in the House or Senate halls. Few school choice bills were even proposed, and the ones that were rarely received much attention.

bill that would have fixed many of the problems in the current inter-district school transfer law never even received a hearing in the House Education Committee. The bill would have made it possible for many students to escape failing schools.

bill that would have made it possible for students to enroll in a virtual course from another district or charter school never made it out of either the House or the Senate.

Even a bill targeted at helping autistic children failed to gain traction for most of the legislative session. It was finally folded into a conference committee substitute at the 11th hour. If the governor signs Bryce’s Law, it will establish a small, targeted scholarship program for students with special needs on the autistic spectrum.

It took eight years of continually pushing for Bryce’s Law to be passed — a small, targeted school choice program.

So here is another riddle: When will the legislature realize that all students could benefit from increased educational options? That riddle is truly puzzling.

Baby Steps On Teacher Tenure Reform

The 97th Missouri General Assembly did nothing about school choice. However, the legislature was not completely inactive regarding education issues. On the topic of teacher tenure reform, for instance, the legislative body looked much like Bill Murray’s character in the 1991 film, “What About Bob?”— taking baby steps.

As Dr. Leo Marvin (Richard Dreyfus’ character) tells Bob about baby steps, “It means setting small, reasonable goals for yourself. One day at a time, one tiny step at a time — doable, accomplishable goals.”

Bringing Saint Louis’ tenure laws in line with the rest of the state was a very “doable, accomplishable goal.”

As we have documented, the laws governing teacher tenure were much more restrictive in Saint Louis than they were in the rest of the state. In a presentation at the Show-Me Institute, Saint Louis Public Schools Superintendent Kelvin Adams said it took 100 days to remove a low-performing teacher. Throughout the rest of the state, administrators only have to provide teachers 30 days to improve.

I am glad that the legislature was able to achieve this baby step in the right direction. As a result, ineffective teachers will be removed from Saint Louis classrooms more rapidly. Yet, in the grand scheme of things, this is a very modest improvement, especially when much more could have been accomplished.

Twice, teacher tenure reform bills were defeated on the House floor. In my opinion, the bills simply went too far —replacing the current teacher tenure mandates with new prescriptive mandates for teacher evaluations.

We do not need overly prescribed teacher evaluations any more than we need antiquated tenure laws. What we need are school leaders who actually have the power to lead.

So instead of celebrating true tenure reform, we are left to celebrate the baby step of Saint Louis teacher tenure laws falling in line with the rest of the state. Baby Steps.

The Right Direction On Occupational Licensing In Missouri

The Missouri Legislature passed Senate Bill 330 last week. I hope the governor signs it (I cannot see a reason for a veto). SB 330 makes several small but worthwhile changes to state licensing rules. Generally speaking, the legislation expands the practice areas of certain jobs, allowing them to do things they were previously prevented from doing. Nurses, dental assistants, and counselors now all have slightly expanded practice areas and slightly reduced regulatory control of their jobs. This is a good thing. Furthermore, there are now a few more ways to become licensed as a hearing instrument specialist in Missouri. This is also a good thing.

What is a VERY good thing is that we appear to be moving in the right direction on the larger issue in Missouri. To the best of my knowledge, we have not passed wholesale licensing requirements for a new occupation in Missouri for a few years. (I may be overlooking some, but I do not think so.) Last year, due to prompting by court rulings, the state significantly reduced the licensing burdens to open a moving company in our state. This year, we passed SB 330, with its entirely positive changes. At the state level, we have leaders such as Missouri Rep. Eric Burlison (R-Dist. 133) who care about the personal and economic harms when government makes choices that markets and customers should be making.

At the local level, we still see an expansion of licensing abuses, from street performer auditions and valet parking licenses in Saint Louis to totally bogus HVAC rules in Saint Louis County. But at the state level, we are doing the right thing. Remember, occupational licensing of most occupations benefits current practitioners at the expense of future competitors and the public. We need less of it in Missouri.

The Ayes Don’t Have It: Medicaid Expansion Fails In Missouri

The proposed Missouri Medicaid expansion has reached the end of the line, at least for this year. When Missouri Gov. Jay Nixon announced he would pursue the expansion after last November’s election, I expressed my substantial reservations about both the cost and effectiveness of the program. And I repeated those reservations on televisionon the radioin printbefore audiencesbefore the Missouri Legislature and on our blog again, and again, and again . . .

Suffice to say, I think that Missouri not expanding a broken Medicaid program is a victory for Missouri taxpayers. Kudos to the legislature for its steadfast opposition to the Affordable Care Act (ACA) and support for reforms that will actually help to make Missourians healthier. Unfortunately, the ACA just isn’t that vehicle.

Taxpayers Deserve Better Than This Shabby Treatment

The Missouri Legislature has embarrassed itself once again on the tax credit issue, and this year’s failure to protect taxpayers from out-of-control tax credit spending was particularly excruciating. After the House and Senate conferenced and produced a suboptimal, but passable, tax credit compromise last Thursday, the legislation fell to a filibuster in the Senate on Friday — the last day of the session. The bill had both good and bad elements to it, capping and eliminating some credits (the good) while creating and extending others (the bad). In the net, it would have been an important first round of tax credit reform, albeit a small step.

But even that couldn’t get through the legislature. Like a college sophomore starting an essay the night before it’s due, the legislature produced tax credit legislation at the latest possible moment with the smallest margin for error available. In school, you don’t get a passing grade for “I started late and my computer crashed!” or “My dog ate my homework!” You don’t get an “A” for “effort.” You get an “F” for “failure.”

Missouri’s heavy use of tax credits encourages government to pick winners and losers in our economy, leading to rampant abuse, distorted economic priorities, and tightening budgetary realities. It’s maddening that practically nothing has gotten done on tax credits that have sapped the state’s coffers in recent years — and whose consequences led to more than $400 million in economic development tax credit issuances in fiscal year 2012 alone. Let’s be blunt here: the legislative dysfunction on the tax credit issue is an unmitigated state disgrace. This year I was hopeful that the legislature had finally gotten past its dark tax credit days, whose depths were deeply plumbed with 2011’s Aerotropolis boondoggle.

But apparently not. As someone who takes notes on the floor debates in the state House and Senate, I cannot tell you how many times I heard a legislator say “I don’t agree with tax credits, but . . .,” and then go on to explain why their pet tax credit needed to be extended or created. (This is especially common in the House.) Bona fide tax credit reform supporters and opponents can disagree civilly, but I have little tolerance or patience for policymakers who are all hat and no cattle on this issue — happy to carve out special tax credits for their special groups as they blithely gore other credits. That’s the worst kind of hypocrisy. Sen. Jolie Justus, a tax credit supporter, was right on Friday to criticize such behavior from the floor of the Senate, and I’ve independently noted the same sort of behavior Justus observed.

The legislative intransigence on tax credits is stomach churning. Coupled with the governor’s leadership void on basically every issue, the legislature’s inaction on tax credit reform is a shameful low note of the session. Taxpayers deserve better than this shabby treatment.

Let’s Not Follow Cincinnati’s Lead On Airports

The Kansas City Business Journal recently published an article about the effort to tear down Kansas City International Airport (MCI) and rebuild it as a single terminal. In the piece, Austin Alonzo relies on Mark Perryman, the COO of Landrum & Brown Inc., “a Cincinnati airport consulting firm that helped the Kansas City Aviation Department develop the single-terminal proposal.” As expected, the firm that earns money building new airports thinks that Kansas City should build a new airport. According to Perryman, at least one business picked up and left Cincinnati, Ohio, and moved to Charlotte, N.C., because the latter had a new airport.

Perryman said that declining traffic and air service out of Cincinnati/Northern Kentucky International Airport (Code: CVG) and recent upgrades at Charlotte/Douglas International Airport (Code: CLT) played a role in Chiquita’s relocation in 2011, which took several hundred white-collar jobs with it.

Aside from relying on Perryman, Alonzo quoted some leaders of economic development groups, who, as can be expected, support building a new airport. But not all is well at Cincinnati’s airport since its $500 million renovation in 1994. According to the Manhattan Institute of New York’s City Journal:

You can see those extra charges reflected in the sky-high fares at Cincinnati/Northern Kentucky International Airport, a Delta hub and winner of the top spot in Forbes’s 2009 list of “rip-off airports.” Last year, an average ticket out of the airport cost $526, compared with $372 in nearby Dayton, Ohio, and $387 in Indianapolis. International flights averaged $1,408, 36 percent more than the national average. Is the airport really a reason to relocate to the area, as businesses often claim? The Cincinnati Business Courier found that three-quarters of the Cincinnati firms it surveyed were flying employees out of the Dayton airport, more than an hour away by car. “Unless you’re suffering from delusion, you realize that the Cincinnati airport is now really in Dayton,” aviation expert Darryl Jenkins told the Cincinnati Enquirer. Similarly, a 2006 study found that nearly one-fifth of local fliers drove to other airports to avoid the hub’s high prices. Delta is now reducing flights from Cincinnati/Northern Kentucky, and passenger traffic at the airport is down 65 percent since 2005.

So there you have it. The cost of building a new airport has contributed to making travel to and from there more expensive, so travelers seek other venues in neighboring cities. A new airport does not attract business, as proponents claim — quite the opposite. (Proponents of building a new terminal at MCI already complain about losing market share to neighboring airports. This would only make it worse.) Remember, Chiquita left Cincinnati seven years after their airport renovation and partly because of reduced air service.

Now Cincinnati airport consultants want to do to Kansas City what has been done to Cincinnati.

No thanks.

Ishmael on KWMU: Raising the Minimum Wage

Show Me Institute Policy Analyst Patrick Ishmael joins host Don Marsh of KWMU and and Jack Strauss, Director of the Simon Center for Regional Forecasting at Saint Louis University to talk about the pros and cons of raising the minimum wage.

Hundreds of thousands of American workers are paid the minimum wage. It’s $7.25 nationally and $7.35 in St. Louis. While the perception may be that minimum and low wage jobs are mostly held by teens, the vast majority, 75 percent, are adults over the age of 20.

Recent local news reports have highlighted protests by minimum wage earners. They are demanding that their pay be nearly doubled. The campaign is called “St. Louis Can’t Survive on $7.35.”

Host Don Marsh talked with Martin Rafanan, a Lutheran minister, activist and director of the St. Louis Can’t Survive on $7.35 campaign. Angela Harrison, a local 33-year-old McDonald’s employee who makes $7.75 an hour also joined the program to talk about the challenges she faces with making just above the minimum wage.

In the second half of the program Jack Strauss, Director of the Simon Center for Regional Forecasting at Saint Louis University, and Patrick Ishmael, Policy Analyst at the Show Me Institute, joined Marsh to talk about the pros and cons of raising the minimum wage.

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