Top 10 Reasons to Calm Down About Education Reform

I just stumbled across this blog: The World Is Your Campus. The author, Maya Frost, is writing a book about creative ways to get an education. Some of her posts deal with school reform issues, too (like this one about combining middle schools and high schools). So I optimistically followed her link to Top Ten Global Trends That Force Us to Rethink Education, expecting to feel validated for all the hard work I put in here, writing and blogging about reform.

It starts out OK, pointing out that skilled workers are essential for our knowledge-based economy. I’m nodding my head. Then it starts to degenerate into truisms, like: "Jobs that exist today will not necessarily exist when today’s students finish school." Yeah, but so what? There’s no policy implication.

The worst is at the end of the list:

The Singularity is almost here: Human-surpassing intelligence will guarantee that the future is far more different than we can imagine. Are we supplying students with the creative skills required to thrive in a future that demands routine human creativity?

Beam me up, Scotty.

Are There Too Many Taxis In St. Louis? Let’s Ask the Taxi Companies …

There is an interesting article in the Post-Dispatch this morning about taxicab regulations in St. Louis, a subject we have written about before. There are some insane statements in the story, as well as some very promising ones from a practical perspective. First, the crazy ones (emphasis added):

Louis Hamilton, chairman of the taxicab commission, said he suspects there are still too many cabs for the St. Louis market, and Mundy’s study should either confirm or dispel that notion.

You know what does a good job of determining the proper number of cabs? It’s called the free market, something the taxicab commission apparently has very little faith in or knowledge about. Here’s another commissioner, who works for the largest cab company in the area (emphasis added):

Rudawsky said the cab industry is "always feast or famine." When there are major events in town or on holidays such as New Year’s Eve, there are times when there aren’t enough cabs, he said. "But the majority of time, you could say there are too many."

This reminds me of P.J. O’Rourke’s writings on population control, which I believe he titled, "Just Enough of Me, Way Too Much of You." What are the odds that when Mr. Rudawsky says there are too may cabs, he means too many of his competitors’ cabs?

We have been discussing this issue around the office today, think-tank style. It seems that this new report they have commissioned is going to attempt to answer the question of whether there are too many cabs, but I doubt it will even consider the idea that a commission like this should not be setting any number at all. That said, there are some promising statements from the researcher, including this one about the fact that airport cabs can only take people away from the airport, but not to it:

"It’s not efficient at all," Mundy said. "And sadly enough, it’s not as unique as it should be. But most communities around the country are starting to realize that ? it really makes no sense to have one-way traffic in either direction."

The best thing the Metropolitan Taxi Commission has done is remove the restrictions for driving between county and city lines. Now, if they would get rid of those restrictions at the airport, too, that would be real progress — even if they continue to think it is their job to determine the "correct" number of taxis.
   

Some Things Surprise Me; Some Things Don’t

Just in case you didn’t know, Missouri is among the worst states in the country when it comes to eminent domain abuse. The Missouri Supreme Court recently decided to hear arguments in City of Arnold v. Tourkakis, which will likely determine whether the state Constitution presents any barrier whatsoever against government officials who would trade their citizens’ constitutional liberties for private developers’ promises of tax revenue.

Several weeks ago, the Show-Me Institute filed a brief in that case to remind the Court that property rights are at the very heart of the Missouri Constitution, despite the disregard they have been shown by recent court decisions. The brief also highlighted the fact that during the last five years, non-charter cities have threatened at least 1,500 properties with eminent domain, more than three times the number of properties threatened across the entire state from 1999-2002.

Thanks to Bill McClellan’s fantastic work in recent weeks, readers of the St. Louis Post-Dispatch have been getting a glimpse of what life is like for the thousands upon thousands of Americans whose homes, businesses, and houses of worship are threatened with eminent domain. Valley Park, a non-charter city in the St. Louis area, has for months been considering the creation of a redevelopment corporation that would have the authority to take property from some of the city’s current citizens and hand it over to new owners that the city would prefer. McClellan has done an excellent job of capturing the constant struggle of the threatened owners to make their voices heard and hold on to what rightfully belongs to them in the face of city officials who would demand the sacrifice of their citizens’ property rights on the altar of "redevelopment."

In a stunning turn of events, however, the regular protests of the property owners appears to have finally made an impact on the city’s officials. At its last meeting, the Board of Aldermen not only announced that it would no longer seek the creation of the redevelopment corporation, but that it would also pass a city ordinance banning the use of eminent domain for private development!

It is very important to note that Valley Park residents are still potentially at risk, even after the passage of this new provision. It doesn’t take much to change the law again, and, at any rate, cities frequently say they are using eminent domain to clear "blighted" areas rather than to promote economic development. But it is heartening to see at least a step in the right direction. Hopefully, this will allow that city’s property owners to sleep a little easier.

As for things that don’t surprise me …  In 2006, the General Assembly modified its eminent domain laws somewhat to require that a finding of "blight" must assess properties on a "parcel-by-parcel" basis, rather than using the broad snapshot of an area that had previously enabled findings of "blight." Under this new provision, an area may only be declared "blighted" if a preponderance (more than half) of the area is determined to be blighted. This change was exceptionally weak, because cities still have extreme discretion to decide what constitutes "blight" — meaning they could rig the findings by setting their own standards — but it at least imposed a restriction on the use of eminent domain that would presumably add some protection to well-kept neighborhoods.

On Tuesday, however, a three-judge panel in the Missouri Court of Appeals gutted even this meager level of protection. An ordinary reading of the new law suggests that those evaluating targeted areas must determine the number of properties in an area that meet the definition of "blight," and that they may only use eminent domain if more than half of those properties are determined to be "blighted."  The judges, however, held that the law merely requires surveyors to look really closely at an area before stamping it with a "blight" label. Where the law requires a "preponderance" of the area to be blighted, in practice it just means "to the court’s satisfaction." Oh, and it’s perfectly acceptable for the surveyors to rely on records from 1994 to determine whether an area should be considered "blighted" in 2007.

If Missourians are ever to be truly assured that their homes, businesses, and houses of worship cannot be taken from them for someone else’s benefit, someone — and perhaps a large number of people — must make a stand for the proper enforcement of constitutional protections. Thus far, the General Assembly has failed to do so. Despite some small successes, dozens of cities have failed to do so. And, most importantly, the courts have failed to do so. Valley Park’s citizens have learned a lesson that should be taken to heart across the state: Eternal vigilance truly is the price of liberty.

Springfield and City Utilities Audit Cries Out for Simpsons References

Seriously, how can you not imagine the leadership of Springfield City Utilities hiding their worst employees in the basement when the state auditors came by to inspect the plants? Then they would have to send them off to remedial utility training at Missouri State, where they would do battle with the nerds and a crusty old dean who is clearly a stupidhead. I could go on and on, but you can just click here instead.

It was not the role of the audit to ask whether Springfield should be providing these utility services in the first place, which is unfortunate. A 1970 study by University of Missouri economists demonstrated that public electric utilities that produce their own power are less efficient than private utilities. Unfortunately, we had to pay for our copy of the study, so I can’t link to it online. But here’s a passage from its conclusion:

The tax-interest subsidy, however, does not explain why some municipalities invest in new generating equipment when their costs, even after adjusting for capital costs and taxes, are still higher than alternative purchase arrangements. Such action appears to depend on other explanations, e.g., bitter rivalry, legal barriers, incorrect information, etc.

Here is an op-ed I wrote on this issue, as it affects Kirkwood. Kirkwood, though, merely distributes the water and electricity it purchases wholesale from private utilities (which the above-mentioned study showed was more efficient than a municipality producing its own power). Springfield is much worse — it still produces and treats its own water and electricity. Here are the stats. There are very few large cities left that still do this, for reasons detailed in the study.

Springfield should sell its electricity, gas, and water systems to the private sector. That would bring in a huge amount of money for Springfield, and allow the city to focus on things the private sector does not also provide, like police and local roads. It should sell its computer network, too, while we are on the subject. Then City Utilities can concetrate on transit and the 911 call center it operates. The leadership of CU, though, remains deluded by the idea that a government-owned system is somehow better for the citizens than a private system.

Midwifery Revisited

Today’s Post-Dispatch covers the ongoing drama in Missouri’s midwife legislation saga. Eric Dixon, the Show-Me Institute’s editor, published an op-ed on the benefits of legalized midwifery earlier this year.

Missouri is one of 10 states that prohibit midwives without medical or nursing degrees from assisting with prenatal care. Last year, a late addition to Missouri’s historic HB 818 health reform bill legalized the practice of midwifery for those who obtained a “tocological certification” from a private accreditation group specializing in pregnancy-related services.

The provision was a source of controversy and led to the removal of Senator John Loudon, who had sponsored the midwife provision, from his position as chairman of the Senate Small Business, Insurance, and Industrial Relations Committee.

Senator Loudon is now being restored to his prior leadership position, under the condition that he work to repeal HB 818’s midwife provision. This is an unfortunate twist in the saga. Many Missouri mothers are better off using midwives than traditional hospital care. And, as was pointed out in our op-ed on the subject, it’s already legal for anybody to help deliver a baby in Missouri. It’s only when money is involved that it becomes a problem.

Anyway, read our our op-ed on the topic. It says it better than I can.

My Labor Markets Reading List

Andrew Leigh links to a new Progressive Policy Institute policy report about the Earned Income Tax Credit. While I haven’t read the whole thing yet, and I don’t concur with all of their political analysis, I think the EITC is a smart policy to help the working poor. This SMI study explains why expanding the EITC could be more effective in that regard than increasing the minimum wage.

Related research that looks interesting is this working paper by David Neumark (author of another SMI study) and William Wascher about the effects of the EITC and minimum wage laws on employment and earnings.

Charters for Autistic Children

The panel on autism has released its report. I don’t know enough about current autism support services to say whether their recommendations about consolidation and restructuring are good, but I wholeheartedly agree with this proposal:

Amending the charter school law to allow charter schools for children with autism to be built outside of St. Louis and Kansas City.

That would be a win for everyone. The autistic children would benefit, and the usual objection to charter schools made by public school districts — that they draw children and resources away from traditional public schools — wouldn’t apply. Right now, many districts struggle to educate autistic children, who in some cases need a lot of individual attention from specialists.

Make Way for Charters

St. Louis makes an ignominious appearance in an article by Andy Smarick in Education Next:

Charter competition has caused one unexpected and fascinating phenomenon. When facing a growing number of charters, districts turn to advertising. […] In May 2007, the St. Louis district awarded a no-bid contract to a marketing firm to “drive the message of the negative impact of charter schools.” Seemingly unable to improve results, districts rely on public relations to stem the migration of students to other schools.

Kansas City also earns a mention, because 20 percent of public school students there attend charter schools.

Smarick raises the question of why districts don’t improve more in the face of competition from new charters. He concludes that traditional districts are so wedded to the old order that they can’t adopt innovations. The solution he suggests is to crowd out the districts by enrolling a majority of students in charters — as is happening in New Orleans, where most public schools were reopened as charters after Hurricane Katrina.

I like the idea of all public school students (rather than a lucky few) choosing between competing charters. But I don’t think the transition will be as easy to effect as Smarick predicts. His idea is that when charters have a majority of the market, this is what will happen in the traditional districts:

As chartering increases its market share in a city, the district will come under growing financial pressure. The district, despite educating fewer and fewer students, will still require a large administrative staff to process payroll and benefits, administer federal programs, and oversee special education. With a lopsided adult-to-student ratio, the district’s per-pupil costs will skyrocket.

Wow, that sounds exactly like … what is going on right now in the city of St. Louis! According to Smarick, at this point everybody in the city is supposed to "demand fundamental change" and we’ll transition to an all-charter system. I’m not holding my breath. Public school monopolies are hard to shake. So far, the only public school district that’s given most of its market share over to charters is the one that was obliterated by a natural disaster.

Holiday Best Wishes for the Blogworld!

As the Christmas saying goes: Every time a mouse clicks, a blogger gets more page view hits. With that holiday spirit in mind, we wish to celebrate the Show-Me Institute’s first year as a blog by sending merry Christmas wishes to our fellow bloggers who have been so much a part of our tremendous respectable above-average water-treading success.

We shall start with the two largest papers in our state. Both the Prime Buzz blog in the Star and the Mound City Money blog in the Post-Dispatch have been frequently linking to our posts or articles. We are lucky in Missouri to have great newspapers serving our two largest cities, and we thank both of them for the links.

The proprietors over at Missouri Political News Service have enthusiastically posted many of our studies and op-eds this year, as well as plenty of links to our blog posts. They have been a big part of getting the word out on our work, and we wish them continued success and a great holiday season.

Every time the Show-Me Institute makes the papers, Missouri Pulse has been the site that consistently asks why we are always labeled as "conservative," while other groups get the "non-partisan" moniker? It’s a good question — and, for the record, we think "free-market" is the most accurate label, if one must be used.

Arch City Chronicle and Blog KC have given us a mention on occasion, for which we thank them, while Jason Rosenbaum and the others at the Columbia Daily Tribune politics blog have given us some much-appreciated coverage lately — particularly regarding the education conference we hosted.

Fired Up! has linked to us a few times, and I am sure I am missing a few other blogs out there as well. Being that there now more blogs than people on the planet, it would probably be impossible to note all the ones that have mentioned us. But we appreciate it every time, whether it’s a link, a critique, or a compliment.

Well, that’s just about it. I can’t think of any that I might be missing. … Oh, wait — how could I forget Mr. John Combest, the esteemed maitre d’ of johncombest.com. His links have played a huge part in letting people know about us, and we wish him and everyone else listed here a very happy holiday season.

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