Is An Opportunity To Help Medically Underserved About To Be Missed?

As the last week of the Missouri Legislature’s regular session groans to a close, time is running out for dozens of bills to get a final up or down vote in the chambers. The Volunteer Health Services Act is one of those bills. Last week, I wrote about what a wonderful opportunity the Missouri House and Senate had to reform the licensing laws regarding volunteer medical missions in Missouri, allowing medical professionals in good standing and properly licensed in other states to provide free services to Missouri’s neediest. (I had also talked about the idea before that.) Requiring only a concurrence in the House to a lightly-amended Senate version, the House instead rejected the bill and a committee meeting was requested of the Senate to work out the differences. Whether that meeting will happen, nobody really knows.

Because the session ends tomorrow, the margin for error here is narrow.

I truly hope that the legislation is revisited and final, unambiguous judgment is rendered before the session closes. This is one of those bills that could help a lot of Missourians, not hurt them, who would otherwise go without medical assistance or would have to turn to the government for help.

There are a number of bills in the waning hours of the session that deserve attention as the minutes tick down. This is one of them.

Ignoring 40 Years Of Failure, Legislature Passes Land Bank Legislation

Yesterday, the Missouri Legislature passed House Bill 1659, which allows for the creation of a land bank in Kansas City.

This land bank, if Kansas City officials decide to create it, will have the power to bid against private buyers for vacant property, make expensive development bets, and have the ability to turn down offers from would-be buyers for arbitrary reasons.

We already know that land banking can have disastrous consequences. In my review of the Saint Louis land bank, also known as the Land Reutilization Authority (LRA), I found that the LRA rejected almost half of all formal offers it considered, and allows local officials to have substantial and inappropriate power over who can buy land bank property.

Other land banks in other states do this as well. Consider this Michigan Ingham County Land Bank rejection: An offer to purchase vacant property from the land bank was rejected because “. . . the [land bank] wants to have a home on the vacant property.”

I still do not understand why Missouri legislators want to follow the 40-year history of the LRA. Saint Louis’ land bank began its life with about 2,000 parcels, and now has amassed more than 10,000 parcels of vacant property. The land bank that the Kansas City legislation hopes to replicate also continues to amass vacant property, and helps funnel tax subsidies to private developers. Where exactly is the land banking success that Kansas City hopes to replicate?

During discussion of an amendment that was added to the land bank bill yesterday, the Senate sponsor stated: “Might be a terrible idea. But two years from now they can address that problem.”

I hope so, but I am skeptical. Our legislature passed land banking legislation for Saint Louis in 1971, and it has been an abysmal failure. Instead of addressing that problem, legislators passed a similar bill for Kansas City.

A Victory For Educational Choice

Though Missouri legislators may not accomplish much on tax credit reform, and are pushing forward misguided land bank legislation, there is some good news coming out of the Missouri Capitol: On Tuesday, the legislature passed a bill that would expand the use of charter schools throughout the state of Missouri. This is great news for Missouri students. It is perhaps the best news for students and educators since this.

Previously, charter schools were limited to Kansas City and the City of Saint Louis. If Missouri Gov. Jay Nixon signs the bill into law, charter schools can be opened anywhere in Missouri if the state has designated the area district as unaccredited.

This could certainly help students in the failing Riverview Gardens School District, which has been unaccredited since 2007. Though the district is unaccredited, its students do not have the option of attending a free charter school in their district because it is outside the boundary of Saint Louis City.

In fact, there is cause for optimism that the charter school expansion bill could result in quick, positive change. The St. Louis Post-Dispatch reports that a graduate of the district (class of 1977) has been waiting to open a charter school in Riverview Gardens to help students there gain better access to a quality education.

Some opponents of the charter school expansion bill have pointed out that charter schools can fail. That is true. In fact, that is the whole point of the charter school model: When a charter school fails, it should be shut down, instead of being allowed to continue to provide students with a poor education.

I have argued here before that it is very important to shut down failing charter schools, like the Imagine Schools that will be closed this year. The hope is that by closing down poor schools and directing more students and resources toward successful charter schools, we can quickly identify and replicate successful schools.

If only we held our traditional public schools as accountable.

A Window For Kansas City Schools?

For years, Marisol Montero, newly-elected member of the Kansas City (Mo.) School District’s board of directors, has navigated the district’s maze of red tape and ignorance of state and federal education policy. Her efforts to ensure her son, who has special needs, was actually receiving the care that he required, and for which schools had accepted federal dollars to provide, led her to an idea to dramatically increase the district’s transparency.

She says her requests for information initially met resistance: She often was told “Why do you need to know that?” and that her request was “unreasonable.” However, the school was receiving federal money and not spending it, then claiming that because it was not spent, the school was not bound to certain reporting schedules. The federal government disagreed, and thanks to Montero’s leadership, the school administrators resigned.

Montero now hopes to save other parents the hassle of battling the bureaucracy just to learn what is going on inside schools. She believes that simply providing information would go a long way toward improving services. She proposes instituting a Transparency Accountability Portal (TAP), modeled after Missouri Gov. Matt Blunt’s Missouri Accountability Portal (MAP). The MAP portal serves taxpayers as “a single point of reference to review how their money is being spent and other pertinent information related to the enforcement of government programs.” It includes information about state agency expenditures, the distribution of tax credits, state employee pay, and the use of federal stimulus funds.

Montero’s TAP would show how money is collected and spent; and link each expenditure to a specific district goal. The TAP will be similar to the state Department of Elementary and Secondary Education’s Missouri Student Information System and the Missouri Comprehensive Data System, but more detailed and specific to the Kansas City district. Montero wants to include:

* The amount of money a school receives for each program.

* How much the school has set aside in activity funds for field trips, etc.

* General ledger details such as individual employee salary and basic job function — including administrators, teachers, and janitorial staff.

* Contracts the district and schools have entered for things such as lawn care, maintenance, and equipment. Montero said there is no consistency in contracting. “Some contracts can be for three years, others for three months,” she said. There is often no way for outsiders to evaluate the efficiency of some expenditures, i.e., tutoring services. How many kids are participating, and are grades improving?

The database also can help taxpayers appreciate the amount spent on employee benefits and pensions. The board could use this information for public input while renegotiating contracts and cutting budgets. The portal also could reduce the time the district spends responding to open records requests.

Montero believes such a portal would help the board stick to what she identifies as the four Ds: Data Driven Direction and Decisions. Without the portal, Montero said the board risks making decisions based on opinions, not facts.

Why Was the Great Depression So Great?

Last month, Show-Me Institute Policy Researcher Michael Rathbone visited Westminster Christian Academy in Saint Louis County to deliver a guest lecture to eighth grade U.S. history students. The subject of the lecture was the Great Depression, and the information contained within was frequently contrary to the conventional wisdom that “big business” or “greed” caused or prolonged the Great Depression, instead showing how government intervention encouraged, worsened, and prolonged what might otherwise have been a brief recession.

The Kansas City Citizen’s Commission On Municipal Revenue

A Kansas City citizens’ commission that the mayor appointed recently released a draft report on changes to the city’s municipal revenue structure. Not surprisingly, for a commission stacked with former city and county employees, the report avoids anything substantive or radical. When you load up a finance commission with lawyers — and do not put one economist on it — this is what you are going to get. Here are some brief comments on the good and bad ideas in the report.

Kansas City’s business and occupational license system is very complicated (p. 41-42). The Citizens’ Commission on Municipal Revenue (CCMR) has decided to continue its work with a singular focus on simplifying and improving the license system. It has identified the problem, and seems serious about a solution. Kansas City would greatly benefit from these changes that would treat businesses equally and require less work to administer.

Dedicated taxes with sunset provisions are good things. However, it is possible to go too far with dedicated taxes, and Kansas City has probably done so. For example, Kansas City previously, and unnecessarily, chose to dedicate its entire 1 percent baseline sales tax to capital improvements (p. 29-30). The committee is right to suggest that Kansas City loosen the requirements for that tax so that it can be used for more general purposes.

One of the major disappointments in the report is the refusal to take on Tax Increment Financing (TIF) (p. 18). It is difficult to see how a commission tasked with reviewing municipal revenues could overlook TIF beyond a meekly-worded warning that Kansas City carefully evaluate future TIF projects.

One of the most audacious suggestions was, to be fair, not included in the final recommendations.  The commission considered suggestions to end earnings tax refunds to non-residents for work out of the city (p. 26). Put another way, the city wants to tax the income of people who do not live in Kansas City for work they did not do in Kansas City.  The fact that the commission even considered ways to keep tax money it does not have a moral or legal right to is disturbing.

One tax idea that has widespread agreement among economists is the benefits of land taxation to fund local governments. Land taxation is fair, consistent, has very limited economic distortion, encourages investment, and is easy to collect. Kansas City is the only local government authorized to collect a land tax in Missouri. So, what does the CCMR want to do with the single-best tax that Kansas City enacts? Get rid of it, of course, and replace it with higher sales taxes (p. 36-37).

Kansas City has a tax that other cities in Missouri should envy and economists would almost universally encourage. And this is what the CCMR wants to eliminate.

The mayor wishes to enact the changes suggested in this report by putting it on the ballot later this year. I hope the city council thinks twice before replacing less harmful taxes like the land tax with broader, higher, and more damaging substitutes.

Take the Land Bank Legislation. Please.

Last night, yet another piece of legislation received the “Kansas City Land Bank Bump.” Senate Bill 729, which began as a short, three-page bill, ended the night at an impressive 78 pages.

The bill originally was a relatively uninteresting piece of legislation meant to improve procedures for Missouri counties making purchases. Now, the poor thing is bloated with language addressing, among other things, Springfield School District board elections, local debt collection, economic development boards, and the creation of a Kansas City land bank.

The land bank “amendment” alone added 35 pages to SB 729. This is the third time the land bank legislation has been tacked onto an unrelated bill. First, it was attached to a bill that was supposed to improve transparency. Then it was added to a bill that was supposed to help counties manage their budgets.

This last-ditch attempt to push legislation to the finish line by any means necessary is unfortunate and opaque. We saw efforts like this last year, when legislators rolled an extensive list of bills into a 356-page behemoth that entailed the creation of hundreds of millions of dollars in tax credits. Despite that bill’s failure, it appears that land bank proponents are taking a page from tax credit proponents’ strategy manual.

If legislators intend to vote on this bill before the end of the legislative session on Friday, I hope they at least take time to read it. The land bank legislation (or “amendment”) raises a number of questions that remain unanswered:

  • Why allow a government land bank to bid against private would-be buyers? Don’t we want this property to have a chance of being redeveloped privately? (141.984.6)
  • Why allow a government land bank to incur debt without limitation? (141.981.6 (3))
  • Why allow a government land bank to borrow against promised funds from the state of Missouri? (141.994.1)
  • Why allow a government land bank the power to build, construct, lease, and furnish property? Wouldn’t that put it in direct competition with the struggling private real estate market? (141.983 (13))
  • Why create a government land bank? Where is one example of a government land bank that has accomplished a significant reduction in vacant government-owned property?

Patrick Ishmael on Jaco Report – Voter ID

On May 13, Show-Me Institute Policy Analyst Patrick Ishmael appeared on
Channel 2’s Jaco Report in Saint Louis to discuss the merits of voter ID reform in Missouri. Appearing opposite Ishmael and arguing against changing existing voter ID requirements was Denise Lieberman, a Saint Louis attorney and community activist affiliated with the Advancement Project.

View the video on Fox 2’s website by clicking here.

If the above is unavailable, try here.

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