Principles Or Politics?

What does your elected official or candidate for public office believe? The Show-Me Institute developed a questionnaire to help you evaluate where politicians stand on key issues in education, the economy, health care, and good government practices.

If you are curious to learn more about free-market solutions to the problems facing our state, click the link for each question to see relevant research and analysis on each topic.

A few questions from the list:

Click here for the full questionnaire.

Lessons For Kansas City From The Chicago Teachers Strike

Who “won” the just-ended Chicago school strike and what are the implications for other large urban districts, including Kansas City Public Schools, where thousands of students are similarly trapped in failing schools?

The Chicago school strike came down to a bruising battle between two flamboyant and abrasive public figures: Mayor Rahm Emanuel and Chicago Teachers Union (CTU) President Karen Lewis.

With Chicago’s 26,000 public school teachers returning to work on Sept. 19, it is clear that there is no real winner in this dispute — not the union, not the mayor, and, most especially, not the students and their parents.

There were concessions on both sides in the battle between the mayor and the Chicago teachers’ union, with a final agreement on watered-down changes in teacher evaluation that may make it somewhat easier to remove low-performing teachers. While winning another round of pay increases (on top of average annual pay per teacher of $71,000 for a nine-month year), the union agreed to a longer school day, and it agreed to limit the number of sick days that teachers can “bank” as a future benefit upon retirement.

All that amounts to tinkering at the edges of a failing system. “Beyond this contract is a larger reality,” the Chicago Tribune noted in an editorial. “This school system faces declining enrollment and rising expenses. CPS needs to find a sustainable financial footing. This contract doesn’t help much.”

Kansas City public schools are facing the same bleak reality, as public school enrollment in the city has declined by roughly 35 percent in the past five years while expenditures per pupil have increased to more than $14,000 — far exceeding per pupil costs in most suburban schools. Further, just as in Chicago, Kansas City schools have an extraordinarily high dropout rate, with only about half of high school students graduating within four years.

It is hardly surprising that strong teachers’ unions in large school districts with multiple failing schools will do everything possible to maintain their jobs and to increase their benefits. But that is exactly what makes major reform from within these same school districts a near-impossible task. Reform — if it is to happen — will have to come from the outside, through increased competition and choice.

As things stand today in most large public school districts, including Kansas City and Chicago (both before and after the strike), it remains the case a) that teachers will only be fired for egregious misconduct; b) that when districts reduce staff for budgetary reasons, the most senior teachers stay on the job regardless of their fitness as teachers; and c) principals and others in positions of supposed authority are extremely limited in their ability to reward their best teachers through any kind of pay-for-performance system.

Highly unionized public school districts — where many teachers have understandably grown to feel that they are entitled to hold on to their jobs even though many of their students are failing to learn — need the spur of competition.

Still more, it is a tragedy that so many students and parents in city centers such as Kansas City and Chicago are trapped in schools that are not working. They deserve to be given a choice — and that is something that elected officials at the local and state levels must finally begin to recognize and rally around as a cause for action.

The Show-Me Institute has long called for a major expansion in charter schools to create a real alternative to today’s failing public schools.

Some educators are calling for greater “COOP-ETITION,” meaning a joining together of the traditional public school education with a big increase in the number of charter schools (mostly non-unionized and free from most regulation governing public schools).

We say: Bring it on!

Andrew B. Wilson is resident fellow and senior writer and James V. Shuls is education policy analyst at the Show-Me Institute, which promotes market solutions for Missouri public policy.

‘Saint Louis Has High Taxes!’ Say International Accountants

KPMG, one of the world’s Big Eight, Six, Five, Four accounting firms, released a study last week that ranked Saint Louis as having the second highest tax burden of major American cities. I admit that I was surprised Saint Louis ranked that poorly. (Perhaps our “progressive” citizens are proud of this, and now have a goal to shoot for being No. 1.)

There are two frustrating things about the study. First, as the St. Louis Post-Dispatch’s David Nicklaus noted, it does not make clear whether it is referring to just the city or to the entire region. Obviously, that has repercussions. If they applied the city’s 1.5 percent earnings and payroll tax to the entire region (as I think they did), that would be an error. Second, it is frustrating that Kansas City was not included in the study.

According to Nicklaus’ write-up, the main reason we ranked so poorly was our “relatively high property tax costs.” Some people might question that, as Missouri is not really known for high property taxes, even for businesses. In fact, this study by the Tax Foundation ranked Missouri as seventh best from the business property tax perspective.

How do these discrepancies come about?

First, it appears they are compiling their rankings with different methodologies. The Tax Foundation (which gives a better explanation of its methods) gives a lot of weight to certain property taxes (intangibles, inventory, franchise) that Missouri no longer has. So we rank very highly because we do not have those. KPMG appears to be going simply on total property tax bills and rates.

But I think the main reason Saint Louis ranks poorly while Missouri is ranked highly is that the main corporate property tax is the commercial surcharge, and that tax varies wildly by county within Missouri.

The commercial surcharge is a property tax rate applied on top of general charges for just commercial property, as its name implies. It ranges from 1 cent per $100 of assessed valuation in Reynolds County to $1.70 per $100 in Saint Louis County (followed right behind by $1.64 in Saint Louis City). That is a difference of $5,408 on a $1 million commercial property (not a high valuation for a commercial property). For comparison, 16 of Missouri’s 115 counties have a rate of more than $1, and 68 have a rate below 50 cents per $100 of assessed valuation. That is how Missouri can rank well, but Saint Louis poorly, on business property taxes.

Missouri needs to change our commercial surcharge system to allow the rates to decline as assessments increase, like all other property taxes. For that and other needed changes to the system, please check out this testimony.

The DED Gets Audited . . . Hilarity Does Not Ensue (Part 1)

Last month, the Missouri state auditor’s office released its audit of the Department of Economic Development’s (DED) Division of Business and Community Services (BCS). Among other things, the audit found that in regards to Mamtek, the BCS:

. . . failed to perform adequate due diligence on the startup company, its officials, and information provided by the company.

This is not the first time that the Show-Me Institute has written about Mamtek. Clearly, the BCS did not do a good job managing the entire Mamtek project, but that is not the point. The main point is that the government should not be engaging in economic development projects in the first place.

It would be bad enough for a private entity to fail to perform adequate due diligence on a project; however, at least a private entity would be using its own money when it invests in a project. A government entity, on the other hand, risks the taxpayers’ money in these development projects. People do not have to invest in a private company, they do have to pay taxes.

The government has a few core functions. Picking favorite economic development policies is not one of them. The state should leave economic development to the private sector and let people choose with their own money which project is worthwhile; the decision should not be up to some bureaucrat in Jefferson City.

PSA: School Choice For Special Needs Students

We interrupt our (ir)regularly scheduled blog post for a brief public service announcement: October is Disability History and Awareness Month. We can all agree that students with special needs require special care. Too often, schools are unable to meet the needs of students and their families. This has historically been an issue in Saint Louis, where city employees have been required to live in the city and the schools have had a poor track record. It is also an issue in many rural communities, where families feel under-served. Many states are realizing the best way to improve services and increase parental satisfaction is to provide families with options.

Currently, seven states have a voucher or tax-credit program which provides scholarships for students with disabilities to attend the private school of their choice. The largest, Florida’s McKay program, provides scholarships to more than 20,000 students. A 2006 study of McKay participants indicated participating parents were significantly more satisfied with their child’s school than were parents with a special needs child in a traditional public school. In fact, approximately 90 percent of participating parents indicated they were satisfied, compared to only 71 percent in the comparison group.

Unfortunately, most families in Missouri with special needs children have relatively few options when it comes to their child’s education. In Saint Louis County, families may be able to send their special needs child to the Special School District of St. Louis County, and in other areas, schools may participate in a co-op. These schools may improve service for some; but families with children who need special services are still at the mercy of the provider. If their needs are not being met, they can labor to improve the conditions at the school, but they may have nowhere else to turn if the circumstances do not improve.

Scholarship programs for students with special needs allow families to seek out the best options for their children, allowing them to find the school that can best meet their child’s unique needs. So for Disability History and Awareness Month, let’s raise awareness about the importance of providing educational options for deserving Missouri families.

Moving Companies, Start Your Engines!

Missouri gets a high five from me today. (Or maybe a pound. That seems to be the cool thing these days.) Over the weekend, I read in Reason magazine about the repeal of an oppressive licensing law for home moving companies in Missouri.

Before the law was repealed, any potential new moving company had to submit an application to the state government to start the company. Existing moving companies then had the opportunity to say, “No thanks, we don’t want any more competition. You can’t start your business here. Sorry I am not sorry!”

Essentially, existing home moving companies were protected against fair competition from outsiders. By restricting competition, companies had more control to set prices for their services. They unfairly cast off competition that would allow Missourians to have more choices. And, entrepreneurs were excluded from making a living in their preferred occupation.

Unfortunately, this piece of legislation did not pass the first time around. Show-Me Institute Policy Analyst David Stokes wrote in 2011 about Missouri reducing home mover licensing requirements. However, the governor vetoed that particular bill in 2011.

This time around, it looks like there is real change for the home mover business. Markets and customers can now make the decision of who will provide services. The government may think it is doing a good service by imposing certain restrictions, but occupational licensing often results in harmful effects to citizens and the economy.

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