Desperate Houseblog

Perhaps Ron Paul really is having an impact. Last night on Desperate Housewives (which my wife was watching while I counted the minutes until we could switch back to the World Series), Lynette announced that she was running for Wisteria Lane Neighborhood Association President as a Libertarian. In fact, much of the story revolved around what level of control neighborhood groups should have over yard fixtures like fountains and tree houses. From a land use/property rights perspective, it was pretty interesting stuff.

Trashy Quotes

I’m not going to discuss the merits/drawbacks of the new St. Louis Country solid waste disposal proposal, but I will mention that it has many county residents up in arms about their loss of autonomy. A full discussion of the issue is presented in this morning’s St. Louis Post-Dispatch.

Suffice it to say, the proposal consolidates unincorporated St. Louis County trash service (which will provide more uniform and cheaper service), but will also require each district to offer an extensive recycling service.

I personally think that this is a good idea and that it is within the government’s proper powers. But there is a certain level of arrogance in the county’s response to the criticism of the proposal:

“Giving up the right to choose their own hauler is a small sacrifice to make [in order] to achieve something the county really needs.”

I will never understand the collectivist mindset of elected officials, and their belief that what they view is “best” for someone always trumps that of the individual’s. A simple "I feel your pain" would suffice.

Boston Bread Co.?

Panera Bread has announced that it may relocate its corporate headquarters from St. Louis to Boston when its corporate leases (in Richmond Heights and Brentwood) expire in 2010.

I’d blame this on bad governmental policy if I could (oh, I wish I could), but Panera claims that the move is necessary in order to consolidate business units, and also because it has had difficulty in finding the right office space for its expanding staff in the St. Louis metro area.

Besides, it’s not like business is going to be any cheaper in Taxachusetts.

Empowering Parents to Seek Out Adequate Education

 

As was widely expected, last week a circuit court judge denied several school districts’ claims of constitutional entitlement to additional educational funding. The decision was not a difficult one, Judge Callahan wrote, because the state demonstrated “under every reasonable method of calculation” that it had satisfied its constitutional obligation to spend 25 percent of applicable state revenue on public education. In fact, attorneys for the state have demonstrated that the Legislature currently dedicates 36 percent of its revenues to education. Because more than one in every three of your tax dollars already goes to support the public education system, the court found no constitutional basis for the school districts’ claims that they were owed up to $1.3 billion more.

Missouri taxpayers should cross their fingers in hopes that the school districts will not appeal the decision. The plaintiff districts, which claimed inadequate funding as the reason roughly 60 percent of Missouri students scored less than proficient on their MAP exams, have already cost Missouri citizens millions of dollars in pursuit of a court ruling that would give them hundreds of millions more in taxpayer money. Now that the judge has exposed the districts’ flimsy constitutional claims, Missouri taxpayers must hope that the plaintiffs have the good sense not to appeal it any further.

Unfortunately, good sense seems to be in short supply among many of the suing districts, who are apparently planning to argue before the Missouri Supreme Court that if only public schools had more funding, they would transform into powerhouses of educational virtuosity. But this myth was exposed at this summer’s trial, where Dr. Michael Podgursky, an economist with the University of Missouri-Columbia, clearly demonstrated that test scores for districts spending more than $13,000 per student were, on average, no better than those for districts spending less than $5,000 per student.

If that statistical evidence isn’t plain enough, we are only two decades removed from a court-ordered injection of hundreds of millions of dollars into the Kansas City School District — ultimately resulting in lower student achievement. In other words, the districts have steadfastly refused to accept what should be apparent from this state’s experience — money is not the cure for what ails public education in Missouri.

Instead, our public education system needs structural reform that focuses on what is best for parents and children, not what preserves the status quo. For decades, government officials have dictated which schools children would attend; if parents wanted to choose where their children would be educated, they had to be wealthy enough to send their kids to private schools or buy a home in a district with good public schools. Parents with smaller bank accounts either had to accept whatever education was offered by their government schools or work multiple jobs to afford private education.

With the advent of charter schools, low-income families have been given a glimmer of hope that they can choose schools more in tune with the needs of their children, whether that involves specialized academic offerings, heightened emphasis on security and discipline, or unique expertise working with developmentally challenged children. When schools are given the flexibility and incentive to adjust themselves to students’ needs, they become more effective.

A new legislative session is just around the corner, so Missourians should encourage our elected officials to change the way public education is approached in this state. While it is a worthy goal to improve public schools’ effectiveness, our highest priority should be empowering parents to choose the best available schools for their children. The power of choice can open up a new world of opportunity for children currently stuck in inadequate, ineffective schools — and when the kids win, we all win.

Dave Roland is a policy analyst for the Show-Me Institute.

 

Competition to the Rescue

We often hear about escalating health care costs, and policymakers debate what the state should do about it. Here’s some good news about how the free market is doing its part to address the problem:

Schnucks pharmacies on Monday will be the first in the region to offer a selection of antibiotics for free. Customers can receive up to a 21-day supply of any one of more than 54 generic, oral antibiotics at no charge.

Schnucks will offer the program at all 100 of its pharmacies across seven states.

Why is Schnucks doing this? The article discussed two main reasons. First, the owner cares about helping people get medicines they need. Second, cutting health care costs and filling some prescriptions for free is good business. Free antibiotics will draw new customers to Schnucks and allow it to compete with other stores that offer low-price prescription drugs.

Unfettered competition can help patients by driving costs down to zero. Of course, this won’t fix all health care problems. Antibiotics are so cheap that it’s feasible for a store to offer them for free. Schnucks won’t be giving out free brain surgeries. There’s still a need for good health care policy, but we should take note of what the private sector can contribute.

Wonder Twins Powers, Activate: Mass Transit Vote!

Mass Transit Tax Proposal takes form of: half-cent sales tax increase (or perhaps a caterpillar?). St. Louis County voters likely to take form of: bucket of cold water. Seriously, though, will Gleek get to ride on the trains if this passes? You know that his body could be used to reconnect trains in emergencies! It’s true, it really could. That is not a joke.

Anyway, what are the good parts of the proposed tax increase to fund both MetroLink expansion and support Metro’s general budget? There are indeed some good points of this proposal. I like the fact that it focuses on connecting MetroLink with employment centers. It is not clear in the article, but my knowledge of the plans is that abandoned railroad lines will be used to form the route, which will obviously save a great deal of money and limit property takings. I like the fact that Metro and St. Louis County are being honest with voters, in that if voters want MetroLink expansion, they know they will only get it with a tax increase, and if they don’t, they know they can end expansion with this vote.

Whether you support it or not, this proposal lays it out pretty clearly. I sort of like the fact that this would free up county funds for some important road projects, but, alas, those could be done without the tax increase, just by decreasing the amount the county gives to Metro now. I am NOT saying the county should decrease the Metro subsidy now, just that they could if they chose to.

I completely agree with this very clear statement from a county aide in the Post-Dispatch:

“Infrastructure precedes investment,” Jones told municipal leaders at the league meeting in Ferguson. “It provides a framework for private investment. Transportation is the first investment. You have to move goods and people,” he said.

What do I dislike about the proposal? I don’t like some of the arguments being put forth in favor of it. This one is particularly bad:

The county’s second theme is that MetroLink expansion would reduce traffic congestion. Cline said that between 1992 and 1997, cities without a rail system saw congestion increase by 52 percent and those with one had only a 32 percent boost in congestion.

Really, perhaps this is the reporter’s fault for not including supporting information, but those statistics are not proof of anything. Perhaps congestion increased more in cities without light rail because those cities tend to be newer and more open, and more people chose to move to those locations. Congestion worsened in, say, Phoenix or Las Vegas because lots of people moved there, not because they didn’t have light rail. Perhaps lower taxes, made possible by the lack of an expensive light rail system, enticed people to move there.

The above argument is a classic example of confusing correlation with causation. There are other problems with the arguments, but reducing congestion and pollution are obvious canards. Even if MetroLink expansion succeeds beyond our expectations, the number of autos taken off the roads will be so small as to have no meaningful effect on either congestion or pollution.

Supporters would be much better off just taking the direct approach to voters: If we expand MetroLink, some of you will benefit from it, and it will give employees — many of whom need mass transit — better options for getting to work. That is the argument I will use when I vote in favor of the tax increase next year. Will 50 percent plus 1 in St. Louis County join me? We’ll see.

Eminent Domain Harms Poor Residents

I’ve been remiss in pointing out this article at The American by our former editor, Tim Lee, about how eminent domain abuse in Missouri harms the very poor residents that officials are ostensibly trying to help. The article serves as a brief introduction to some of the material in his recent study, "The Specter of Condemnation: The Case Against Eminent Domain for Private Profit in Missouri."

Another copy of the article also turned up a couple of days ago at The Cato Institute, where Tim is now an adjunct scholar. Be sure to read the article, then read the study, and learn how your neighborhood may be vulnerable to the bulldozers as well.

A Tax Activist Is Born

The St. Louis Post-Dispatch has a story today, via Combest, on St. Louis County’s newly born property tax reform group, and the Haenni family, which has gotten involved with it. Property owners throughout Missouri will be receiving their tax bills in the mail in the next few days. Many people, like my family, just get their personal property bills while the big one goes to the mortgage company, but enough people get them both that I predict major difficulties for any tax increase proposals on the November ballot.

The main problem the Haenni family sees is the large fund reserve balance kept by their school district, Kirkwood. (I know it seems this blog has been all Kirkwood lately, but that’s just a coincidence.) A national expert on education financing has this to say about Kirkwood’s large reserve balance of about 33 percent:

A national school budget expert questioned the need for any district to have fund balances of millions of dollars at the time tax revenue comes in.

Nationwide, the rule of thumb is five, possibly 10 percent at the most, at any time in a district fund balance," said James W. Guthrie, a professor of public policy and education at Vanderbilt University. He is president of the American Education Finance Association.

"Having fund balances that don’t dip below double-digit percentages (of the operating budget) is stunning and inexcusable," Guthrie said.

The interest alone from that balance can be very attractive to districts, he said.

"But I think it’s fair for the taxpayers to say that they’d rather some of that balance pay for a new park, or better ambulance service.

"Or, of course, to be returned to them in the form of a tax cut."

The new property tax group in St. Louis County is terrific. I am not opposed to property taxes, however. In fact, I much prefer them to income taxes — but the assessment system in Missouri needs to be reformed. I will have an op-ed with my ideas flushed out shortly.

In essence, I believe a property assessment should be set at the exact value of a sale price, and then all property within a county should be increased each year by an average amount determined by an impartial real estate value index. That would get rid of the entire reassessment system and eliminate the crazy discrepancies between neighbors we all see every reassessement year.  Also, certificates of value need to be required statewide. If some counties want to keep the sale amount private from everyone but the assessor, that’s fine, but we shouldn’t have a system where people in some counties are assessed more accurately than others.

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Man on Horse Charging