Clay County Tax Decision Awaits …

As best I can tell, Clay County will decide tonight as to their tax rate for 2007. At least, it is on the agenda, although it could of course be tabled to be acted on at a regular meeting rather than a work session. Every local council runs slightly differently, so I don’t know exactly how they run things there. That aside, the Kansas City Star published a good editorial last week calling on Clay County to let the voters decide whether they want to choose between continuing the sales-tax-only system via increasing sales taxes to meet the new road demands, or reinstituting a property tax. If the road and bridge demands on the county, coming out of the recent lawsuit, can be met by a moderate increase in the sales tax, than I agree that should be given very strong consideration — as opposed to reinstituting the property tax.

The citizens of Clay County have elected to try something very interesting in choosing to rely only on sales taxes to fund county services. The county should do all it can to continue that decision.

It will be interesting to see whether any other counties elect to go that route. The county in the Saint Louis-area for which this plan might make the most sense would be St. Charles County. They have plenty of retail outlets in St. Charles to, perhaps, make it work. Somebody in St. Charles government should run those numbers. Perhaps I will — should I get just stupendously bored one day.

Great Moments in Film-Related Think Tank History, Part 1 (Probably of 1)

So, my wife and I are watching the all-time classic Say Anything this weekend when I heard something I never realized before, probably because I didn’t work at a think tank when I saw the movie before. Anyway, as this is one of my favorite movies, and one which I sometimes reference (will not waste time searching for a past reference — we unfortunately don’t catalogue our posts by "pop culture allusions"), it was cool to hear that the fellowship that school valedictorian Diane Court was going to London for was, to quote her dad, "an international think tank." Pretty neat, huh?

The other highlight of seeing the movie again was catching a very young Ari Gold as one of the characters hanging out at the Gas ‘N Sip trying to get Lloyd to go to a kegger with them. "Bitches, man!"

‘Hot Fuel’ Regulations Would Harm Consumers

Nobody likes high fuel prices. In recent years, as gasoline costs have soared, consumers have looked for solutions — ranging from attempts to increase efficiency, like carpooling and converting to biodiesel, to ineffective gestures, like those perennial calls for single-day gas station boycotts. The recent movement to regulate “hot fuel” at the pump belongs to the latter, ineffective, category — only worse. Hot fuel regulations would increase gasoline prices across the board.

There’s no disputing the physics of hot fuel. Heat expands gasoline and cold contracts it, so that if you were to buy a single gallon of gas in, say, Florida, you’d actually be buying a somewhat lower amount of energy output than if you were to buy a gallon of gas in Alaska. This temperature dichotomy is particularly relevant for a state like Missouri, with both infamously hot summers and cold winters. Consumer groups claim that people are being overcharged for the gas they buy as thermometers climb.

There’s no reason to think, though, that this variation in purchased energy output actually results in overcharging. Price is a function of both demand and supply. So, in a competitive market, when temperatures rise and the contents of fuel storage tanks simultaneously expand, gas stations have a slightly increased supply of fuel to sell. The competitive drive to outsell the station down the street gives each gas station an incentive to lower its prices slightly — precisely because they have that temperature-increased supply of fuel.

Overcharging for gasoline is only taking place if we assume gas stations aren’t competitive, which is obviously false. Individual gas stations wouldn’t stay in business long if they didn’t lower their prices to compete with other nearby stations. This sort of fierce competition is one of the reasons gas in Missouri now costs well below $3 per gallon. When overall market price drops, so do individual station prices.

Proponents of hot fuel regulation call for temperature-adjusting technology to be required for U.S. gasoline pumps, of the sort now used in Canada. This equipment would ensure that a pump dispenses a higher amount of fuel when the weather is hot, so that each “gallon” would have the same energy output as a non-adjusted gallon at 65 degrees Fahrenheit — the standard industry temperature for fuel delivery in other market sectors.

If equipment like this is installed, though, the price charged for each one of those larger “gallons” would also naturally rise. Just as prices would fall slightly when hot temperatures bump up the gas supply available in storage-tank reserves, the prices would increase accordingly if that extra supply were, instead, parceled out to motorists a little at a time with each gallon purchased. This is an obvious drawback — if gas stations are required to dispense more fuel per unit than before, each unit will cost more. There would be no consumer savings as a result of such regulation.

Temperature-adjusting equipment might at least provide a greater degree of information at the pump, though. It might initially seem like a good idea to make sure that consumers know exactly what they’re getting in terms of energy output when they buy a gallon of gas. As useful as this information might be, though, it’s necessary to weigh its value against the cost of obtaining it.

Temperature-managed pumps would require a huge investment, which would be reflected in even higher gas prices — or higher taxes, depending on how the upgrades are financed. The fact that this investment would be required by law means that economic valuation would become less relevant. It wouldn’t matter much whether consumers actually think the information is worth the cost — those who need to fill their tanks would be getting the information, and paying the cost, regardless.

In a competitive market, prices will already reflect the seasonal variation in energy output per gallon that changing temperatures bring. So what really matters when buying a gallon of gas isn’t knowing its energy output in relation to other temperatures, but in relation to other nearby stations. If you can be sure that the gallon of gas you’re buying at one station is the same size as the gallon of gas you might buy down the street, you can make an informed decision about which relative price is worth your hard-earned money.

Legislation mandating pump adjustments for hot fuel would increase the already steep price of gasoline, all in the service of providing consumers with information that’s not relevant to comparative fuel shopping. Hot fuel regulations would harm consumers — not help them.

Eric D. Dixon is the editor for the Show-Me Institute, a Missouri-based think tank.

 

Exciting News For Mobility and Safety On I-70 In Missouri

Via Combest, there are numerous articles today about the grant from the US Dept. of Transportation to MoDOT, funding an study of new truck-only lanes on I-70. This is a terrific idea. I hope they give strong consideration to tolling those truck-only lanes, and allowing additional trailer rigs within them, in order to make tolls fair to the truck companies. Here is the original press release. The recent plan to hire a company to repair and maintain 802 bridges was a great initial step in realistically dealing with our transportation and infrastructure needs in Missouri. How we go about improving I-70 and I-44 is the next big question.  The use of tolls (through public-private partnerships, which are constitutional) MUST be strongly considered as the best way to pay for these improvements.

Eminent Domain Victim Victimized By Rock Hill Again

Many people paying attention to eminent domain issues, disputes, and outrages are aware of how Rock Hill took the home (via court action) of Drs. Rob and Judy Hanson in order to facilitate a development by Novus. Apparently, it was not enough for Rock Hill to forcibly take the Hansons’ home, against their will, in order to build a strip mall to meet the desperate retail needs of mid-county.

Now, because the Hanson family allowed neighbors and friends to remove some fixtures (wood, doors, etc.) from the home before they were forced to vacate it, Rock Hill is suing the Hanson family for a half-million dollars in damages!!! The important thing to note here is that the house was scheduled to be torn down by Novus!!! Novus had plans to demolish the entire house, and indeed did demolish it in January, before which the Hansons sold some of the home’s fixtures, donating the money to Habitat for Humanity. In the interest of clarity, Rock Hill did own the home at the time the Hansons sold the fixtures. Nobody denies that, but to sue for a half-million dollars is unjustifiable, in my opinion, for a house that was set to be demolished.

In my opinion, this is truly one of the most abusive lawsuits I have ever heard of. Here is the petition for the lawsuit, which may be nothing more than a bullying attempt by Novus and Rock Hill to get the Hansons to drop their ongoing request for a jury trial to determine the fair value of their seized home. No matter what, it is an outrageous example of the serious problems with eminent domain laws in our state.

Saint Louis County Misses an Opportunity

The Saint Louis County Council has voted to keep its property tax rate the same, rather than lowering it in response to property assessment increases. The story is here in the Post-Dispatch and here on KMOX (via Combest). While Saint Louis County government deserves great credit for keeping its base tax rates low for a number of years now, I believe it would have sent a strong message to taxpayers and other government entities if the council had voted to lower the tax rate, even just slightly. That message would simply have been that the county would follow the spirit of the Hancock Amendment, even if the letter of the law did not require a rollback. So, now the single largest governing body in the State of Missouri, outside of state government itself, has chosen not to roll back its rates. This is unfortunate.

Come to think of it, I wonder whether the state itself rolled back its property tax rates. I would guess not, because they set a rate based on statewide reassessment, not individual counties. And with elected assessors doing the assessin’ in most of Missouri, the increases were undoubtedly far less than in Saint Louis County, with its 22 percent average increase.

I should be clear that the Saint Louis County average is probably more accurate than the elected assessor’s work, but it still needs to be reacted to with a rollback.

St. George Police Officer in Trouble … St. George???

This post is not about the specific incident that has landed a St. George police officer in trouble. It is not that I don’t care about the incident, just that it is outside of our mission and research areas at the Show-Me Institute. That aside, many people who read the story in the Post-Dispatch or saw it on the news are probably wondering where the hell St. George is. If you live in South St. Louis County, you know — as it is a pretty famous speed trap.

St. George has a population of 1,288. While very small, there are many smaller municipalities in the county. The city itself is funded in three primary ways: property taxes (very low) on residences, a share of sales tax money from the county sales tax pool, and speeding tickets. The speeding tickets are the real rub, as they are what allow the city’s property taxes to be so low, thereby removing any incentive for the citizens of St. George to disincorporate.

There are a number of cities in St. Louis County that are able to exist financially largely through speeding tickets. Rock Hill is probably the most well-known example, but St. George is right at the top of the list. The fact that Missouri is the national leader in fixing (or "amending," in legalese) tickets is part of the story — the fines go up, but the points and insurance don’t, so nobody really complains that much when they get a b.s. ticket in Rock Hill or St. George, or wherever.

The state passed a good law a few years back limiting the total amount that a city could get from tickets as a portion of its total budget. Perhaps that limit should be lowered further, and as property taxes go up in the affected tiny municipalities, people might get serious about consolidation or disincorporation. For now, though, just be careful when driving on McKnight/Rock Hill Rd. As the officer says, the limit is 7 mph over, or 10 on holidays.

Two Major Meetings On Property Taxes

Tonight, Clay County has scheduled a public meeting to discuss setting its tax rates for 2007. As we have discussed here and here, they might have to reinstitute a property tax because of a court ruling. I have no idea what their final decision will be, but I look forward to reading about it tomorrow in the Star.

In a related event, Saint Louis County Residents For Property Tax Relief Now (or StLCRFPTRN, for short) intends to appear at tomorrow night’s County Council meeting to again demand a reduction in the county property tax rate. Although not legally required to roll back its tax rate, because it is so far below the authorized cap, St. Louis County lowered its rate under similar circumstances in 2005 and should do so again. I commend the activists within StLCRFPTRN for their dedication — although they should strongly consider shortening their name, along with demanding a rollback.

Both meetings should be interesting, if you are into this sort of thing — which I, for better or worse, am.

Midwifery in Missouri Continues to Attract Attention

The fine folks over at the Missouri Political News Service have alerted us that my op-ed from last month, "Missourians Should Be Allowed to Use Midwives," has been getting a large number of hits on their site today, all arriving from Mothering: Natural Family Living. Sure enough, the piece is currently linked as one of the top news items on that magazine’s front page.

Although I didn’t report it on this blog at the time, I was happy to see that advocates of midwifery filed an appeal with the Missouri Supreme Court late last month, asking for the midwife provision of HB 818 to be reinstated:

Sen. John Loudon, R-Chesterfield, who added the midwifery provision to the bill, defended his inclusion of the provision.

“Health insurance is about access to health care, nothing else. And allowing the public access to additional providers fits right in (to health insurance issues). I thought it was a perfect fit,” he said when reached by phone Friday afternoon.

“I think it’s crazy that we’re the only place in the world that makes (midwifery) a felony,” Loudon said. “We should be giving pregnant women every comfort and option they desire, rather than let the doctors and the politicians dictate their options.”

Whether the appeal effort succeeds or not, there’s no question that midwives should be allowed to practice if expectant mothers prefer to use their services. Statistics show that midwives are a safe option for most women, it’s true, but even more than that, it’s an issue of personal freedom and choice. As I wrote in my op-ed:

One fact that’s often overlooked in the debate about the safety of midwifery is that it’s already legal for just about anybody to deliver a baby in Missouri. You can have your neighbor or your mail carrier or your pizza guy deliver your baby without legal repercussion. It’s only when you seek out someone with relevant experience and pay her to perform a delivery that it becomes against the law. Any system that penalizes training and competency just because money is involved needs to be altered.

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