Oregon’s School Districts Can’t Keep Up With Demand for Language Immersion

While most states are giving parents a wider range of educational choices, Oregon is going in the opposite direction. From shutting down public school choice in Portland to threatening virtual schools with enrollment freezes, to holding up charter school applications, Oregon’s education policy blocks innovation at every turn. Consequently, the innovative programs that manage to survive in this hostile policy environment can’t meet parents’ demand.

An example in the news is early childhood language immersion. Several traditional districts offer immersion classes, which admit students through a lottery. Some are free; others charge tuition. There are long waiting lists, because many people who are interested don’t win a place in a class.

As you might expect in Oregon, some public school officials think choice is the culprit:

“Whenever you have choices, you have equity issues,” said Jane Stickney, deputy superintendent for West Linn-Wilsonville. “The truth is, some people will have access and some won’t. Not every school, not every kindergartner has access to this.”

When parents have choices, they don’t all do the same thing. But that’s not what makes the status quo inequitable. What’s unfair is the lack of choice for most people. Whoever has the good fortune to win a school lottery has a choice. Whoever can afford private school tuition has a choice. Other parents would like to choose language immersion for their children, but the school system doesn’t offer them any alternatives to their assigned traditional public schools. Charter schools could step in and meet the demand, if Oregon didn’t turn down one charter application after another.

Missouri’s education policy is relatively welcoming to new kinds of schools, but we still need to be vigilant to avoid Oregon’s mistakes. I hope we’ll never have to say, with regard to educational monopolies, “As goes Oregon, so goes Missouri.” (Thanks to David Stokes for informing me of the history behind that paraphrased quote.)

Pseudoephedrine and Meth: No Easy Solution

This week, Union, a town of about 8,000 people in Franklin County, became the second city in the nation to pass an ordinance requiring prescriptions for medications containing pseudoephedrine. Pseudoephedrine is the active ingredient in nasal decongestants such as Sudafed, but can also be used in the production of methamphetamine. Union’s new ordinance has renewed calls by sources such as the Riverfront Times to expand this regulation to the rest of Missouri. The Riverfront Times argues that the benefits of preventing meth production and use (assuming that the sort of regulation in question would actually accomplish that goal, which is a big assumption) far exceeds the costs of “inconveniencing consumers,” but the evidence points to costs far more complex than mere inconvenience.

No one can deny that meth production and use has a serious economic, legal, and social impact on communities. But the nasal congestion that drugs like Sudafed treat has an impact as well. Acute rhinosinusitis (or ARS, the technical term for nasal congestion lasting less than four weeks) affects approximately 32 million adults annually in the United States, or about 16 percent of the population older than 18. The effect on work and school absenteeism is predictably large, with 98 percent of workers citing minor illness such as colds and allergies (the primary causes of ARS) as a major cause of short-term absence.

ARS results in approximately $6 billion in annual costs, nearly 90 percent of which are associated with doctor or emergency room visits. In fact, ARS and other upper-respiratory illnesses are the leading cause of primary care visits after hypertension and routine checkups. Unfortunately, there is little that primary care providers can do for ARS, with treatment generally combining symptom control through over-the-counter decongestants with prescription antibiotics. Yet a recent study found that antibiotics provided little benefits for ARS, because bacterial infection complicates only 13–38% of ARS cases (compared to the 85–98 percent of cases in which antibiotics are prescribed; why doctors continue to prescribe a clearly ineffectual course of treatment is a topic for a separate post altogether).

Indeed, it appears that the only effective treatment is symptom management with decongestants, and currently decongestants containing pseudoephedrine remain the clear winner in terms of efficacy. Studies have failed to prove the efficacy of phenylephrin, the main alternative to pseudoephedrine that is used in formulations such as Sudafed PE.

So, with no effective alternative to treat nasal congestion, mandating a prescription for pseudoephedrine-based decongestants would leave ARS sufferers in a tight spot. Sufferers must opt to call out sick and stay home, find time to go to the doctor’s office (if you can get an appointment) or the emergency room, or just push through it and go to work unmedicated — and I hardly need to tell an allergy sufferer how little work generally gets done in that state.

The end results of this regulation are all unappealing: increased absenteeism, reduced productivity, or increased primary or emergency care visits. The last may not seem like such a bad thing, but hospitals and doctors, who are currently slammed by increased volume because of influenza, might have a different opinion. Increased volume leads to increased wait times for patients, keeping those with minor illnesses away from their jobs and lives (and in close proximity to contagious patients) and keeping those with serious illness from getting the treatment they need, especially since emergency rooms may be tied up by people with minor illnesses when primary care providers are booked up. And, as mentioned above, these visits already account for $5.4 billion of the $6 billion in annual costs associated with ARS; increasing the number of visits would cause those costs to balloon.

With the contagious illness season coinciding with the ARS season, we need to be empowering patients to manage their own symptoms whenever possible, rather than restricting that capability. Meth production and use certainly has its costs, but so does an overly restrictive regulation, such as Union’s. Balancing the benefits and the dangers of drugs such as pseudoephedrine is not an easy task, but an “easy,” all-or-nothing solution such as this one amounts to taking the easy way out.

Condominiums Say “No” to Clotheslines, Legislatures Interfere

Some residents of private communities have found that saving the planet conflicts with following their community rules. They want to conserve energy by hanging clothes outside to dry. But their neighbors dislike the sight of hanging laundry. At one time, people solved these dilemmas by moving west. Nowadays, they call their state legislators.

I hope Missouri won’t join the states that have enacted laws overriding private community clothesline bans. People joined these communities voluntarily, and they knew the rules up front. It’s not okay to ask the state to change the terms of your contract once you’ve already signed.

Provocative Op-Ed About Tour of Missouri

I’d like to share this editorial on the Tour of Missouri bike race from the Warrensburg Daily Star-Journal (link via John Combest). I am not opposed to the state having supported the race in the past, or perhaps for the near future (others at the Show-Me Institute might have differing opinions), but the editorial is right-on that the race needs to become privately managed and funded soon. It is a very good piece that I hope you consider.

More Eminent Domain Courtroom Drama

Today the Wall Street Journal reports on the latest episode of eminent domain in the courts:

New York’s highest court is set to hear arguments Wednesday in a case that will decide whether the state government can lawfully seize private property for a development company.

The story is very familiar, although the actors are different. This time, the New York State Urban Development Corp., a government agency, assumes the role previously played by the city of New London, Conn. A chorus of concerned land owners reprise the role of Susette Kelo, the woman in the little pink house. Forest City Ratner Cos. replaces the New London Development Corporation in the role of the developer, and instead of building a Pfizer research complex, it plans to build an NBA stadium in downtown Brooklyn.

Stay tuned! If the Court of Appeals in Albany sides with the property owners and introduces additional limits on eminent domain, there will be a happy ending. If the court sides with the developers, there will be an unhappy ending, as there was in New London. This will mean that, in addition to other negative consequences, the property owners will lose their homes and the city will lose money on the project.

The city’s Independent Budget Office said in a report last month that the arena would cost the city nearly $170 million, nearly $40 million more in spending than it would generate in tax revenues.

Eminent domain is not reserved for East Coast cities like New York and New London — it’s a pukka issue here in Missouri, too. Last month, the Show-Me Institute released a study of the expansion of eminent domain in Missouri, and it also hosted Jeff Benedict to speak about the eminent domain abuse that occurred in the Kelo v. New London Supreme Court case.

More About Signs

This op-ed in the Post-Dispatch praises billboards and decries billboard bans. While I’m not sure I agree that billboards “are a part of Missouri’s heritage,” at least not on the level of Daniel Boone or Lewis and Clark, billboards do perform a valuable service: They give drivers information. I can see how billboards, even ones that carry ads rather than safety announcements, might reduce traffic accidents. Glancing at a billboard for a second or two is less distracting than trying to locate a tourist attraction through a phone call.

A previous op-ed complained about billboards, in part because it’s annoying to drive through a scenic area and see lots of signs advertising services that can’t be discussed on a family blog. And it is annoying — but would you prefer that people looking for those kinds of places instead wander lost throughout Missouri, searching in every town and asking the rest of us for directions? Better just to give them the information on a billboard.

Paul Krugman on Education Spending

Paul Krugman writes that public-school layoffs bode ill for America’s economy:

According to the Bureau of Labor Statistics, the United States economy lost 273,000 jobs last month. Of those lost jobs, 29,000 were in state and local education, bringing the total losses in that category over the past five months to 143,000. That may not sound like much, but education is one of those areas that should, and normally does, keep growing even during a recession.

Krugman doesn’t mention the steady growth in per-pupil spending that has taken place over the last several decades. I refer interested readers to Andrew Coulson’s analysis of public schooling’s productivity.

Sinking resources into an inefficient sector will not propel the economy forward. But Krugman is right that people should increase investment in human-capital formation during a recession. So, why would the government back away from funding schools just when people need education the most? Is it a newfound interest in efficiency? Not if the calls for a stimulus are any indication!

It turns out that the government isn’t very good at timing expenditures. Russ Roberts explains why:

Government is actually staffed by human beings. It is not something called G that economists or even politicians can move up and down at will. Bureaucrats are cautious. They’re uncertain about what is going to happen to their budgets in the future. They’re uncertain about what the best thing is to do with the money they’re given. They’re worried about being accountable for their actions. So what do they do? They hoard.

Education means different things to individual people and to states. A person who can’t find a good job during a recession will think ahead, realize that he will earn more later if he goes to school now, and pay tuition in order to reap the future benefits. But, to government officials, education spending is just spending — it isn’t an investment that they will personally benefit from later. Sure, they may talk about it as an investment, and they probably know that education can lead to higher tax revenues in years to come. However, there’s no direct link between what officials spend on schools now and their prosperity in a few years’ time, the way the market rewards people who pay for their own education. So the government spends less on education during a recession.

Recessions are a rare opportunity for inefficient public systems to be pared back, which is good. The flip side is that when the government pays for education, spending increases don’t come at the optimal times. If Krugman cares about the timing of human capital investments as much as he cares about the overall level of education spending, he should reconsider whether the government ought to pay for as large a share of schooling as it does.

Tough Call on Real Estate Transfer Taxes

Yesterday’s St. Louis Post-Dispatch had a story about the effort by Realtors to pass an amendment to Missouri’s Constitution that would ban real estate transfer taxes, which are essentially sales taxes you pay when you sell your house. Now, we don’t currently have this tax anywhere in Missouri, and Realtors want to keep it that way.

All of our neighboring states have this tax, and it is generally pretty small, but just because it might be small does not mean it is good tax policy. I agree with the Realtors that in a state that makes heavy use of property taxes to fund local government, a transfer tax amounts to double taxation. I oppose their implementation in Missouri at the city and county levels, and at the state level as well — with one potential exception, which I will get to shortly.

A few interesting things jumped out at me in the article:

In other mountain resort towns in Colorado, such as Aspen, Vail and Telluride, the taxes are used to help preserve open space or provide low-income housing.

Regular readers might recall that I love to ski, and I do so each year near Vail. From the perspective of Vail residents, it is a no-brainer to institute a transfer tax. Of course they want to tax the out-of-towners who own property in Vail; it is no different from the high real estate taxes on second homes for Missourians with property along the lake in Western Michigan or in Door County, Wis. The Great Lakes or Rocky Mountains are not easy to replace. If you keep such a tax within reason, it is a way to make people from outside your community pay more so that the full-time residents will pay less. I am not saying I like it, just that it is easy to see why they do it.

I don’t really think, thankfully, that this is something we can repeat in Missouri. Tourists visit Branson, but they don’t really own homes there. As for the Lake of the Ozarks, where people DO own the homes, I have to guess that most of them are Missourians from other parts of the state, so implementing such a tax would just end up screwing ourselves.

The other thing that jumped out at me was this:

While the taxes aren’t high, the revenue adds up when applied to every sale or transfer of property in a state. In Tennessee, the tax produced more than $174 million in revenue in 2004, according to a study of the Federation of Tax Administrators.

What do we have that Tennessee does not have? You guessed it: an income tax. Speaking generally, I would support the passage of some type of state transfer tax in exchange for getting rid of the state income tax. So, while I certainly support the Realtors’ position and oppose not only all local transfer taxes, but also any state transfer tax (short of possibly using it to replace the state’s income tax), I guess I wouldn’t want to enshrine it in the state’s Constitution if that would make it even harder to replace the income tax in Missouri.

Commuter Rail Plan for Jackson County

I guess because we are always going somewhere, transit issues never seem to go away. Just today, we have the details of a proposed new commuter rail system for Jackson County. The plan details can be found here in the Kansas City Star. For more info, KC Light Rail has some thoughts about it here.

You might think that because we have released two studies by Randal O’Toole, one criticizing light rail and one criticising high-speed rail, that we might automatically be opposed to a commuter rail plan. That supposition would be premature, though, primarily because I haven’t had time to get to know the details, but also because there are things about commuter rail in general — and this plan in particular — that might make it a more cost-effective way for Kansas City to go.

Below, I have bolded some of the plan’s good ideas, as reported in the Star article:

Sanders said the commuter rail system could be built for as little as $7 million per mile, using existing rail corridors throughout the area. In some areas, double tracks would need to be laid to avoid conflicts between freight and commuter lines.

Sanders said the rail plan could be operational in two years after money becomes available. It would use diesel-powered commuter railcars that could travel faster and more cheaply than light rail, which can cost $70 million per mile.

The best idea, though, is this one at the end:

One option: A private company might operate the system.

So, I will be responsible and reserve judgment for now, but I will have much more to say when, and if, this plan moves forward.

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