Legislature Might Look at Indy 500 Winner for Inspiration

I’ve let my feelings be known about how the 2023 legislative session went: poorly. A handful of bills that I favor passed, including one to keep men out of women’s sports. A long-discussed Interstate 70 expansion got the green light, albeit with a less-than-optimal funding approach. Beyond those items, the list of legislative failures is loooong, with no expanded school choice or transparency in education near the top.

But failure needn’t be permanent, as racecar driver Josef Newgarden showed this past weekend. While being a professional racer is an achievement in itself, Newgarden had been hounded by his inability to take the Indianapolis 500 checkered flag in his 11 attempts. But this year, on his 12th attempt, Newgarden found the winner’s circle. It was a relief compounded by years and years of frustration.

“It is mentally draining to be here for weeks and just to know that you really only have one opportunity, and it comes down to today, and that’s the day you’ve got to be perfect and great and everything has got to work out.

“So you spend all this time and effort, and it’s really just a mental grind to work through that. The more you’ve been here, the more it’s not worked out, the more that grind really starts to gnaw at you.

“I don’t necessarily subscribe to the fact that if you don’t win the 500 your career is a failure, but I think a lot of people really view this race and this championship with that lens, that the 500 stands alone – and that if you’re not able to capture one, then the career really is a failure in a lot of ways.

“I’ll be honest, it’s annoying. It’s been terrible,” said Newgarden, which also happens to describe the Missouri Legislature to a T. It has been terrible, despite the potential to do great things in the last couple years, getting close to the podium . . . but not quite to the winner’s circle.

In 2023, legislators crashed spectacularly and didn’t finish. Here’s to hoping their attempt in 2024 is, finally, victorious.

A New Normal in the Housing Market with Mark A. Calabria

Susan Pendergrass speaks with Mark A. Calabria about new mortgage regulations designed to increase equity in home ownership, if today’s housing market has echoes of the pre-2008 market, what higher interest rates for longer could mean for first-time home buyers, and more.

Mark A. Calabria is a senior advisor to the Cato Institute. He provides strategic input and direction on the federal economic policymaking process. He previously served as director of financial regulation at the Cato Institute, where he cofounded Cato’s Center for Monetary and Financial Alternatives.

Find Mark’s latest book “Shelter from the Storm: How a COVID Mortgage Meltdown Was Averted” here: amzn.to/3ODhPVH

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Produced by Show-Me Opportunity

Hunting and Fishing Fees May Be Going up in Missouri

Are higher fees coming to Missouri for huntin’ and fishin’ (but fortunately not for lovin’ every day)? Maybe. The Missouri Department of Conservation (MDC) has granted initial approval for a fee increase to hunting and fishing permits, so hold on to those pocketbooks, sportsmen (and women):

MDC director Sara Parker Pauley said in the statement that, in the past 20 years, permit prices have remained stagnant despite costs for goods and services drastically increasing.

“In early 2003, the price of a resident firearms deer permit was $17 and the cost of a gallon of unleaded gas was $1.42,” said Pauley. “Jump ahead two decades to May 2023 when the cost of a resident firearms deer permit is still $17 while the cost of a gallon of gas is about $3.30. That cost increase really adds up considering MDC purchased nearly 908,000 gallons of gas in 2022 to run vehicles and equipment.”

Pauley added that, on average, most resident hunting and fishing permit prices would be adjusted by roughly $1. [Emphasis mine]

That seems like a pretty reasonable fee for the service provided by the state, which facilitates (among other things) fish hatcheries and shooting ranges. And the concept of a fee is consistent with my general principle that the folks who enjoy a government service should be the ones to pay for it, like a gas tax for building and maintaining roads.

But it’s also worth keeping in mind that conservation in Missouri also receives funding from a dedicated sales tax. The fact that hunting and fishing permitting costs haven’t risen in two decades is probably less a testament to MDC fiscal management and more a result of the department more or less swimming in money.

The MDC has so much money, in fact, that there was even talk on the floor of the Senate this year of abolishing the fees entirely in light of the department’s budgetary largesse. (As expected of most things in the Senate, nothing came of that conversation, but it did waste about 15 minutes of floor time. So there’s that.)

My stance on hunting regulations was probably best captured in my 2016 letter to the St. Louis Post-Dispatch, “Keep government out of the way of deer hunters,” wherein I extolled the importance of sportsmen (and women) in controlling wild animal populations and ensuring barriers to their entry into that market, like fees, were as low as possible. Fortunately, Missouri’s permit costs are not extravagant and promise not to become extravagant in the future if recent reports are to be believed. But it’s probably a good idea for legislators to reexamine how the MDC is funded in general—with either a fee or a sales tax, but maybe not both.

30 Car Break-ins, Fewer Airbnb, and More MoLeg

David Stokes, Patrick Ishmael, and Avery Frank join Zach Lawhorn to put a bow on the legislative session, discuss new restrictions on short-term rentals, and calls to increase security in downtown St. Louis following a rash of car break-ins around Busch Stadium.

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Produced by Show-Me Opportunity

“The Kansas City Royals of North Kansas City”?

With the expiration of the leases for the Kansas City Chiefs and Kansas City Royals creeping ever closer, there’s been a lot of talk about where the teams might build their next stadiums—and how much local taxpayers will end up subsidizing them. My position, and that of many of our staff, is pretty clear: Missouri taxpayers shouldn’t be subsidizing professional sports.

Well, I have some bad news. On Friday, word broke that the Royals have been talking with North Kansas City and Clay County officials for a ballpark development, and those talks have gotten fairly serious. According to two county commissioners and the mayor of North Kansas City:

Over the past few months leaders from Clay County and the City of North Kansas City have had conversations with the Kansas City Royals about the possibility of developing a new baseball stadium and adjacent ballpark district in North Kansas City. This plan would include commercial, residential development and entertainment experiences adjacent to the stadium, complementing the amazing businesses and entertainment options that already exist in downtown North Kansas City today. We look forward to continuing our work with the Royals and have additional meetings scheduled with them.

The Royals confirmed in a recent media report that they are considering a location in North Kansas City. We think it is important that we communicate our efforts with the community, and the reason we plan to work with the Royals on behalf of our respective jurisdictions to select a North Kansas City site for the planned new stadium. Although no agreement has been reached by either Clay County or North Kansas City to take action on, we are striving to lay the groundwork necessary for a plan that is positive for the city, the county and our entire community.

A vote on a countywide tax for the stadium could come as early as this November, a quick turnaround for such a seemingly late-breaking project. Apart from the expected taxpayer subsidy, the potential North Kansas City sites have a few advantages, including no Kansas City earnings tax (and so instant raises for Royals employees) and a more stable crime situation than Kansas City, which just had its 88th murder of 2023, including seven murders in just the last four days as of this writing.

I expected both the Chiefs and Royals would remain in the region but thought that the Chiefs were the most likely to head to Kansas or some other non-Kansas City, Missouri jurisdiction. Friday’s news upends that assumption, with both teams leaving Kansas City’s boundaries now a legitimate possibility. No taxpayers should subsidize the Chiefs or Royals, but if Kansas City lucks out and gets to enjoy the teams without having to line their pockets, all the better.

And to North Kansas City and Clay County, I’ll just say this: Really? C’mon now.

Really?

It’s Time to Get Out of the Comfort Zone

Recently, the Stanford Education Opportunity Project released a new analysis of education data. The analysis measured the academic growth of students in a single school year. In other words, did a school’s student gain, on average, a full year of learning, more than a year, or less? While we would hope that most schools move their students a full year forward academically in a year, the fact is that many do not. As a result, children fall further and further behind.

How can we prevent this from happening? An analysis of these data yielded an interesting finding—a little competition might just do the trick. And how do we get that competition? We encourage charter schools to open in every type of district, even those with “good” schools that don’t “need” them.

Generally speaking, suburban school districts are believed to be the highest performing and the most protected from competition. When open enrollment was considered in Missouri, suburban districts balked. The fear was that students from low-performing urban districts would try to enroll in their schools while providing no local property tax dollars and depleting their test scores. This is not unique to Missouri. When open enrollment programs, in which students can choose any school in the state, are voluntary for districts, the higher-performing suburban districts often opt out.

But, according to this new analysis, when charter schools open in suburban districts those that have chosen to sit out open enrollment realize that they’re going to need to get in the game. Their students can already leave for a charter school so they might as well start competing with other districts in the area for open enrollment students. Of the six states analyzed, the one with the most competition—Arizona—also had the best growth performance. More importantly, the finding held for low-income students. Seventeen percent more suburban schools achieved more than one year of growth for their low-income students than achieved less than one year of growth. In Ohio, where there are no suburban charter schools and open enrollment is voluntary, the numbers were reversed. More suburban schools achieved less than one year of growth for low-income students than not.

Of course, Missouri has no suburban charter schools or voluntary open enrollment. We have suburban districts such as Columbia 93 that have become complacent and middling to low performing. We should be encouraging high-performing charter schools in these districts to push them out of their comfort zones.

Back to the Future on Licensing in Missouri

Many are familiar with the plot of the classic movie Back to the Future. While I am probably thinking of my job too much, I see this story relating to the status of licensing regulations in the most recent legislative session.

Missouri passed universal licensing reciprocity in 2020, meaning licenses from all other states can be used in Missouri. For example, 37 states across the country require licensure to be a makeup artist. Licensing reciprocity means that anyone who has a license in one of the 37 states can have Missouri licensing requirements waived when they move to Missouri to be a makeup artist. This policy lowers barriers to entry for professionals and in turn, increases the supply of workers and services. With increased supply and competition, quality increases while prices decrease.

However, Missouri legislators have taken the DeLorean and gone back in time by sending two bills (Senate Bill (SB) 157 and SB 70) to the governor’s desk. The bills would create a new licensing compact and also have Missouri join two other existing compacts. Licensing compacts allow workers with licenses in one state to practice without additional licensing requirements in other states in the compact. These compacts are essentially a less inclusive version of licensing reciprocity. Former Show-Me Institute Analyst Corianna Baier explained the harm licensing compacts can cause:

[T]he current licensing reciprocity statute states that licensing reciprocity “shall not apply to an oversight body that has entered into a licensing compact with another state for the regulation of practice under the oversight body’s jurisdiction.” On its face, this language indicates that the license compact would overrule licensing reciprocity to the injury of Missouri consumers.

Essentially, a compact would partially cancel out licensing reciprocity. Missouri, like Mrs. McFly, is obsessing over the wrong thing. To use the makeup artist example: with reciprocity, anyone from any state (which has a license) can work in Missouri without having to get a new license; under a compact, only makeup artists from states included in the compact reap the benefits.

As Institute analysts have noted repeatedly, this glitch needs to be ironed out with a language change. If we remove the “compact exception” then Missouri can “restore the timeline” and Missouri will once again have full licensing reciprocity.

At this point you may be wondering: what is the benefit of compacts? The benefit of keeping compacts is that many other states don’t have reciprocity. For example, to practice telehealth in another state, one needs to be eligible in that state. While Missouri lets any license apply to our own state, suppose Arkansas does not have the same rules. Therefore, with the passage of the compact, a doctor in Cape Girardeau could now practice telehealth in Little Rock if Arkansas became a member of the same compact.

State regulatory boards are certainly satisfied with the expansion of compacts in our state, but our policymakers need to look out for the interests of Missouri consumers. Fixing the language that puts compacts and reciprocity in conflict would be a win for everyone in Missouri. Hopefully we will not need two more sequels to solve our issues.

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