Decline and Fall of an Incentive Program

I wrote last month about a school district that rewards good grades with meals from McDonald’s. Now McDonald’s has ended the program. I guess they decided they would lose more from the negative publicity than they would gain from the few additional customers the program attracted.

This is an excellent example of how for-profit firms respond to customer feedback. When complaints about the program grew, McDonald’s — not the district — ended the program. In contrast, parents in Columbia are protesting new math all over the place, but the district just holds some meetings and avoids making changes.

One Classroom at a Time

The Post-Dispatch ran a human interest piece this morning on Eric Johnson, an elementary math teacher in the St. Louis Public Schools who spent three years developing what his students have dubbed "the program." From its description in the piece, "the program" sounds like an innovative mix of motivation and reward that could do a great deal to improve both math skills and test scores for students in St. Louis city.

So why is it being met with such a lukewarm response from administrators (emphasis added)?

Though district officials subscribe to the theory that the achievement
gap needs to be erased one classroom at a time, they say educational
practices must first undergo rigorous research and academic review.

"He knows what works for him. That’s not to say he doesn’t have a
program that works well for his students. But he doesn’t have the
research base yet to implement what he is doing on a larger scale
,"
said William Parker, an assistant superintendent for elementary
education.

I understand the value of researching educational methods in order to ascertain their efficiency and develop a method for rolling them out, but attitudes such as this one are part of the reason that the St. Louis Public Schools face the crisis they do today.

Innovative classroom ideas need to be met with equally innovative support by school officials, or their benefits will never move past the 30 children that a teacher like Eric Johnson has in his class at any given time.

With all the work that is being done to try wholesale approaches to fix the crisis of public education in this country, it’d be interesting to see what would happen if individual results were fostered, bit by bit.

“There’s a Very Fine Line Between Not Listening and Not Caring.”

A bill which would offer a sales tax exemption for energy-efficient appliances has been proposed in the General Assembly. The bill would designate April 19-29, 2009 (in commemoration of Earth Day), as a “Tax Holiday” in which the state would exempt certain consumer appliances designated as Energy Star?compliant as tax-exempt. The Environmental Protection Agency estimates that consumers who use Energy Star products can reduce their energy use and save up to $600 in utility costs annually.

I have mixed feelings about this. On the one hand, encouraging energy conservation is a good thing, particularly through voluntary incentives such as the proposed bill. But on the other hand, this bill will have absolutely no impact on overall Missouri energy usage unless everyone goes out that week and buys new appliances.

Ideally, tax credits should not only have broad applicability (which this one has), but also be revenue-neutral (which this one isn’t). Clearly, the state will lose (some) money on such a tax credit, not only from the loss of sales tax, but also from the future loss of utility tax revenue — if the EPA report can be believed. I suspect the fiscal effect would be minimal, but if the state is going to lose revenue, presumably there should be a tangible accounting benefit. For example, tax credits such as those detailed in our tuition tax credit proposal (you knew this was coming) offset the loss in tax revenue by reducing state spending, actually netting annual fiscal savings. If tax credits aren’t revenue-neutral, they run the risk of being used as a political tool.

So I guess I’ll leave it at this. My feelings on a “green” sales tax exemption?

Ehh?

Teacher Shortages

Edudiva discovers compensating wage differentials:

I wondered if the maximum salary was tied to the median income level of the district. Seemed reasonable that the districts in wealthier areas would pay more. With a correlation number of -.26 though, that’s not the case.

Districts with lower income levels (and, presumably, harder-to-teach kids) offer teachers a little extra to make up for the more challenging working conditions. It’s easy to imagine what would happen if all districts had to pay teachers the same. Faced with a choice between earning $34,000 a year in an affluent district, or $34,000 a year in the inner city, almost every teacher would choose the affluent district. Same pay, better environment. A few dedicated people would still teach in the poorer districts, but it would nearly impossible for those districts to attract enough teachers.

Different districts don’t all have to pay teachers the same. But within districts, we do have that problem. Rigid salary schedules treat all teachers in a district the same, regardless of suject area or special circumstances. So new teachers are faced with a choice: earn $34,000 a year teaching special education, a difficult job that requires extensive training, or earn $34,000 a year teaching elementary language arts, which is not nearly so demanding. Consequently, there’s a teacher shortage in the most difficult subject areas. There are also shortages in math and science, because people with that knowledge could earn a lot more in industry.

Bad People Use the Internet – and Something Good Happens!

We’ve seen that cruel people can use the Internet to harass others. It turns out that stupid people even use the Internet to harass themselves. That’s right, two men who are "alleged" gang members waved weapons in the air and threatened police officers for a YouTube video. (Because one of them says "Metro Dade Gang Unit, here I am baby" on the video, the allegation sounds reasonable.) Police promptly arrested them.

I can’t think of any changes we should make to our laws as a result of this, but I couldn’t pass up the opportunity to link to an Internet harassment story with a happy ending.

Eminent Domain Case Reaches Missouri Supreme Court

This morning, the Missouri Supreme Court heard oral arguments in City of Arnold v. Tourkakis, an eminent domain case that’s been ongoing for a few years now. We’ve profiled Homer Tourkakis and his “blighted” dental practice before, and his case was one of the many featured in our former editor Tim Lee’s eminent domain study, “The Specter of Condemnation: The Case Against Eminent Domain for Private Profit in Missouri.”

Last night, I posted a press release on our website that gives some background on the case, along with several links to other eminent domain resources, including the brief of amicus curiae filed by the Show-Me Institute, making an argument for strong property rights for Missourians.

This is a pivotal case. As the press release says, “This case will decide whether the Missouri Constitution still offers property owners any meaningful protection against municipalities seeking to give their homes, businesses, or houses of worship to commercial developers.” The rights of ordinary homeowners and small business proprietors hang in the balance.

The Real Health-Care Debate

Our own policy analyst and Show-Me Daily blogger extraordinaire Justin Hauke had a letter to the editor published in today’s Wall Street Journal. The letter responds to a recent op-ed about universal health coverage written by Robert Reich, former U.S. Secretary of Labor in the Clinton administration, and is packaged with a letter from a Florida resident that also makes some great points about government involvement in the health care industry.

Because online newspaper content doesn’t always remain available indefinitely, I’m reproducing Justin’s letter below for posterity’s sake:

Mr. Reich’s op-ed disappointed me, not only for its blatant disregard of economic logic, but for its presupposition of controversial facts about what universal health-care coverage would entail.

Mr. Reich correctly recognizes that mandates (and their big government connotations) are the most sensitive part of the health-care debate, so he dismisses them as a smoke screen. But, as many presidential candidates have recognized, mandates are the most important part of any potential national health-care plan. Older Americans are among the most expensive to insure, yet Mr. Reich asks readers to believe that they could be covered without a mandated influx of healthy Americans to contribute to the plan without utilizing its benefits.

Mr. Reich argues instead that high-cost participants would be subsidized by the general revenue that would be realized if the Bush tax cuts were to expire. Yet even if we assume that higher taxes would increase revenues without pushing the country into recession, such an increase in tax revenue could not offset the enormous cost of health care for millions of high-risk Americans indefinitely — particularly when fixed premiums encourage health-care abuses.

In order to appease Americans who want to believe that universal health care can be achieved without significant cost or government intrusiveness, Mr. Reich has ignored the real health-care debate and dismissed the bureaucratic mess of government-mandated coverage as the "least important aspect of what (the Democrats) are offering." But it’s not "The Road to Universal Coverage" that Mr. Reich offers us; it’s "The Road to Serfdom."

Justin P. Hauke
The Show-Me Institute
St. Louis

Juicing the Issue

The House Committee on Oversight and Government Reform met yesterday for the second inning of its finger-pointing, denial-giving, not-talking-about-the-past examination of baseball’s steroid era. While these particular events usually make great theater (the last installment forever tarnishing the legacy of a certain boyhood hero of the author), yesterday’s congressional examination of the Mitchell Report was overshadowed by steroid news closer to home.

According to an article in yesterday’s Post-Dispatch, the Missouri General Assembly is pushing forth a bill that would require secondary schools to adopt programs that would randomly test student athletes for substances including performance-enhancing drugs, such as anabolic steroids.

The bill comes on the heels of a similar program by the state of Illinois, which is given its traditional due by an official of the Illinois High School Association:

"Our new testing policy will protect the health of our youth and give
students a reason to say no when the pressures mount to take a
shortcut," IHSA Executive Director Marty Hickman said in a prepared
statement.

Despite this, the proposal is facing a number of criticisms from local coaches and administrators who claim that, in addition to being expensive (about $200 a test), the issue would be best served if it was avoided by the state (emphasis added):

"If local boards of education want to explore the possibility of drug
testing, that’s their option," said Brent Ghan, spokesman for the
Missouri School Boards Association, which opposes the legislation. "It
should be left as a local policy issue
."

Some high school athletes will do almost anything to get ahead, but it should not be the place of the state to act as a watchman over the behavior of students participating in sports. Every player on every team has signed some form of code of contact pledging his or her commitment to play the game fairly, and arrangements regarding violations of that code (which certainly include steroid use) can and should be reached at the school or district level.

It’s at this point, not in a committee room in Jefferson City, where the input of coaches, administrators, and parents could all be assessed in order to help solve what obviously would be a deeper problem than simple drug use. Besides, there is nothing that a group of 6’5" 160-pound volleyball players would hate more than submitting a urine sample before a match because the state thinks they’re on the juice.

That being said, steroids are a great danger to any athlete that should never even be considered by developing young men. If you don’t believe me, ask him.

Will the Missouri Supreme Court Leave Your Home At Risk?

When Homer Tourkakis set up his dentistry practice 20 years ago in Arnold, Mo., he never dreamed that the city could take his well-kept office and give it away to someone else — but that is exactly what the city’s officials are trying to do. Hoping that a new shopping center would generate more tax money than Dr. Tourkakis’ practice, the city declared his building and those around it “blighted,” in an effort to justify giving the properties to THF Realty for construction of the Arnold Triangle project.

Knowing that the state Constitution is supposed to protect Missourians’ right to keep private property, Dr. Tourkakis asked the courts to enforce his constitutional rights and prevent the taking of his business. On January 17, the Missouri Supreme Court will hear his case, and its decision will have repercussions for nearly every home and business owner in the state.

One hundred years ago, there would have been absolutely no doubt that the Court would side with Dr. Tourkakis. Missouri’s Bill of Rights has four separate provisions that emphasize citizens’ fundamental right to keep what they own unless their property is necessary for a true public use, like roads, parks, or public buildings. The early cases interpreting those provisions made clear that the right of individuals to “enjoy the gains of their own industry” was vital and could not be subverted unless the government proved the necessity of violating that right.

During the last 50 years, however, judges have steadily given municipalities, unelected government authorities, and even some private companies more and more power to take homes, businesses, and houses of worship from their owners so that other private interests could profit from them. This is usually accomplished using a legal loophole that allows municipalities to condemn properties, and possibly entire neighborhoods, in areas they deem “blighted.” Dozens of Missouri cities have applied blight designations to thousands of normal, well-kept properties in order to create sweetheart deals for commercial developers. As a result, Missouri has developed one of the nation’s worst records for eminent domain abuse.

These sorts of abuses have been pervasive among cities in the Saint Louis metro area.  For example, the city of Sunset Hills only recently ended a seven-year nightmare for more than 300 citizens threatened with condemnation in the name of redeveloping what had been a perfectly normal neighborhood. Eureka designated as “blighted” more than 900 acres of the old Allenton area to intimidate unwilling homeowners into selling their properties to the developer of Eureka Commons — eventually leading to several uses of eminent domain. Meanwhile, Valley Park’s residents have been forced into a state of perpetual anxiety because of the city’s repeated efforts to designate homes and businesses as blighted in order to attract commercial developers.

The Kansas City area has also seen its share of cities abusing eminent domain. The city of Liberty threatened to condemn Liberty Christian Union Church, two charities, and several small businesses to make way for the Liberty Triangle development. Despite the developer’s insistence that it does not plan to use eminent domain, Raytown’s downtown redevelopment plan reserves the right to take homes and businesses whose owners prove unwilling to sell on the city’s terms. Meanwhile, the Sugar Creek Board of Aldermen is using the city’s own negligent upkeep of roads, sidewalks, and utility lines to “blight” more than 70 homes and businesses so their owners can be forced to sell them to the city’s chosen developer.

In addition to the widespread use of eminent domain in Missouri’s major metropolitan areas, many smaller cities in more rural areas have demonstrated a willingness to sacrifice their citizens’ rights in the pursuit of higher tax revenues. The city of Branson condemned two properties and used threats of eminent domain to force Harvest Evangelical Free Church and a number of businesses to make way for a Bass Pro Shop, hotels, and luxury condos in the Branson Landing development. Rolla spent four years tailoring its blight findings to suit potential commercial developers and threatening eminent domain against the affected properties before finally allowing the rightful owners to manage the area’s redevelopment. Meanwhile, Ozark’s City Council recently voted unanimously to leave in place a blight designation whose 47 acres include numerous well-kept properties near the Finley River. Even though the city recently passed an ordinance forbidding the use of eminent domain for its redevelopment project, the threat to property owners will only truly be extinguished if the bogus blight designation is lifted.

When the Missouri Supreme Court hears arguments in City of Arnold v. Tourkakis on Thursday, it will have to choose between two very different paths. The Court could side with the city and its commercial developers, meaning that virtually every home, business, and house of worship in the state could be condemned and given away for the profit of a government-chosen owner. Or the Court could turn the tide in favor of individual liberty by deciding that the state Constitution’s protections for private property still have meaning. So watch this case carefully — your constitutional freedoms are hanging in the balance.

Dave Roland has litigated eminent domain cases in state and federal courts and has offered expert testimony on the issue to state legislatures. He is a policy analyst at the Show-Me Institute, a Missouri-based think tank. The Show-Me Institute’s “friend of the court” brief in City of Arnold v. Tourkakis is available online.

 

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