The TIF-fing Point

Sen. Tim Green has passed, apparently, legislation to change the ways Tax Increment Financing is managed in the St. Louis area.  In short, this change would give more power to county TIF commissions and less to individual municipalities within St. Louis, St. Charles and Jefferson Counties. 

This is a much-needed improvement and I commend Sen. Green for his efforts to make this change.  In St. Charles, former county executive Joe Ortwerth did truly amazing work in his long-term fight to prevent cities, particularly St. Peter’s, from giving away the entire tax base just so they could get another Applebee’s.  In St. Louis, county officials have done a good job in limiting TIF use and making sure it is used in truly needy areas, but municipal officials have long had the decision-making power within their cities and they have not always used that power wisely, to say the least.

I have one concern about the amendment.  I believe it does not go far enough.  I don’t blame Sen. Green for this – it may not have been able to pass if it were more strict.  But the law in essence says local municipalities can still override the county TIF commission, and all they have to do is get a 2/3 majority vote of the local governing body for the TIF.  I say all the power should rest with the county commission and local muni’s have no say whatsoever.  Then we would see decisions truly made in the best interest of the entire area.  Some cities have people like Laura Bryant serving them who really know this issue and fight against the abuses, but many I fear will just go along with the city manager or mayor in the constant effort to bring more crappy restaurants and stupid retail stores selling various types of storage to every inch of every block in America.          

Update on the Amendment We Don’t Need

This story shows why we don’t need to legislate that government affairs be conducted in English:

Senator Kevin Engler of Farmington used German to ask the senate to adopt a constitutional amendment requiring all official government actions to be done in English….

But senators Jolie Justus of Kansas City and John Smith of St. Louis have run out the clock on Engler’s bill.  They say they wonder why the legislature has to deal with what they think is a trivial issue while important legislation has gotten lost.

Speaking to the senate in German was a cute way to make a point, but it just proved why we don’t need this amendment. That must have been the first time anyone spoke to the senate in German for quite a while. It’s not a problem we encounter on a regular basis.

People usually don’t conduct legislative debates in German for the same reason I don’t write blog posts in Aramaic: they want to be understood by and convincing to English-speakers. I’m guessing Sen. Engler will use English the next time he brings a bill to the floor.

Overheard at the Post Office

Concerned citizens of Clayton are calling for the privatization of the U.S. postal service. As I stood in line for passport pictures, I overheard people in the line for stamps complaining about the long wait. Some of them pointed out that service is better in the private sector, where companies have to satisfy their customers or risk losing business. The post office has no such incentive to please anyone but Congress.

As a matter of fact, the post office employee processing my passport request informed me that I’ll have to send in my paperwork with a private shipping company if I want it to arrive on time.

Real Estate Law Protects Realtors From Competition

The FTC has just released a report that discusses how realtors’ associations have lobbied for regulations to keep out competition. As I wrote in an op-ed in November, Missouri’s law requires homeowners to purchase real estate services in expensive bundles. Realtors can’t offer individual services, such as listing a house or helping to negotiate the price. If the law allowed realtors to compete and provide whatever combination of services their customers wanted, consumers would enjoy lower prices.

The Missouri Association of Realtors calls the law a "Homeowner’s Bill of Rights." But as the FTC report points out, consumers would be better protected if the law simply required realtors to disclose which services they’ll provide. Consumers could then make an informed choice without being forced to buy everything a realtor sells.

One Small Step for Economic Freedom…

One giant step for outrageous prices for sporting events.  This excellent development may lead to increased prices for tickets to major sporting events, like playoff games or Cubs-Cardinals games, but there is nothing wrong with that.  As previously discussed on this blog, tickets are a commodity and people should have a right to resell a commodity they have invested in.  I commend the state legislature for moving to eliminate this silly law.  I don’t like the prohibition against buying more than 20 tickets to an event, though.  Teams, or artists or stadiums, should choose, and many do, to implement rules like this on their own to fight scalping or ticket hording.  We don’t need another law dictating it, especially on a bill where we are getting rid of a worse law.

My predictions on the pricing effect of legalizing scalping will be discussed in a future post. Undoubtably, the standard liberal economic view that legalization would lead to lower prices largely applies, but there are small differences I will discuss further.

Saint Louis Public Schools Get More and More Desperate

The Saint Louis Board of Education is fighting the state takeover tooth and nail:

The St. Louis Board of Education will consider a resolution today urging surrounding school districts not to accept city students seeking to transfer as a result of the state takeover of the troubled district.

Meanwhile, at a special meeting, the board also may ask every school board in Missouri to adopt resolutions opposing the state takeover scheduled to begin June 15.

SLPS failed the students of Saint Louis, so now it doesn’t want any other district to help them. These resolutions suggest that SLPS doesn’t have the welfare of students at heart.

Critics Misrepresent Poll Methodology

On Wednesday, the St. Louis Post-Dispatch published an article that called into question the methodology of the poll we commissioned for our recent study about school choice opinions among the Missouri population. From the article:

The critics say the Show-Me Institute’s poll by a research firm, Market Research Insight of Gulf Breeze, Fla., was a "push poll." Push polls phrase questions that steer a survey toward a predetermined, desired outcome.

Jung and others point to the phrasing mixed in to the survey’s 50 questions. They say terms such as "crisis" when discussing public schools have negative connotations.

"You have to wonder about the credibility of a poll like that, in our view," said Brent Ghan of the Missouri School Boards Association.

This first objection is odd. The pollsters didn’t assert that the public schools are in a crisis, or even suggest it. Early in the poll, they asked this question:

Which of the following statements comes closer to representing your personal opinion about public schools in Missouri?

This was followed by a few options: "A Crisis"; "Not a Crisis"; "Critics Exaggerating"; "Doing Very Well"; and "Uncertain". These options were presented in rotating order, a measure intended to help prevent predetermined responses. A poll measuring opinions about school choice policies would be incomplete without gauging respondents’ views on the current state of available schools. In any case, respondents were able to choose any of these options, and the fact that only 26 percent statewide chose "A Crisis" as their response demonstrates that, if this question were somehow a "push" ploy, the people of Missouri weren’t falling for it.

Later in the article someone presents another criticism:

Kenneth Warren, a political science professor at St. Louis University, concluded that the order in which the questions were asked — as they are presented in the "poll details" posted on the Show-Me Institute website — constituted "placement bias."

For example, he said, the survey prefaced one question with a wide range of statistics purporting to demonstrate the economic benefit of school choice. Warren noted that the next question — "Do you think Missouri should or should not have some form of school choice … ?" — was key to supporting the Show-Me Institute’s position on the issue.

"When school choice is presented the way it is in this survey, it becomes a push poll," said Warren.

This seems more plausible — until you realize that these particular questions place at #33 and #34 in a 50-question poll. Almost all of the respondents’ demonstrated support for school choice came much earlier in the poll, beginning with question #4, where 57 percent statewide say they think school choice would work better than a single public school system. This rises into the 60s for parents and minorities. At question #10, 85 percent of respondents statewide indicated they think parents should make the basic decision of which school — or kind of school — that children should attend. This rose to 88 percent for African-American and Hispanic respondents. This is a huge margin of support, early in the poll, without any sort of preparation that could be seen as a  "push."

Not only that, but 11 of the 16 questions that follow the ostensibly objectionable questions, #33 and #34, are entirely demographic in nature. If the poll was meant to "push" people toward desired responses, why would it follow the single question someone hopes to identify as a "push" question with a string of queries entirely unrelated to school choice — questions about age, occupation, income, education level, gender, etc.?

This really seems to be a case of naysayers grasping at straws. They don’t like school choice policies, so they hope to discredit a poll that reveals a strong level of support for school choice. The Post-Dispatch may have fallen for these critics enough to take their tenuous claims seriously in their article, but anybody who takes a substantive look at the actual poll can tell the methodology was sound.

The article also quotes Verne Kennedy, president of Market Research, the firm that conducted the poll, with an astute observation:

"The basic response anyone gives today when they disagree with survey results is to label it a push poll," he said. "That’s the classic response."

Saint Louis Kids Deserve Choices

 

Parents and students in Missouri have essentially three choices: public education in their local district, attending a private school, or home schooling. Some of those students have additional choices in the form of magnet schools and the voluntary interdistrict transfer program, also known as busing. The recent loss of accreditation in the public school system in Saint Louis, because of chronic underperformance, presents the opportunity to expand these choice programs for the benefit of all students.

There are two separate—though intimately intertwined—problems that need to be addressed in fixing the Saint Louis public schools. First, how do we provide those students currently enrolled in the unaccredited district with an opportunity for a better education? Second, how do we improve the district so that it can regain and maintain its accreditation? While these problems differ in immediacy, the solution to the former may very well be part of the solution to the latter.

County schools, and even some private schools, generally spend less per pupil than the city district. According to Missouri’s Department of Elementary and Secondary Education, Saint Louis public schools spent an average of $11,402 per pupil in 2006. As a comparison, my district, Mehlville R-IX, spent an average of $7,144 per pupil in 2006, while the statewide average for district spending in Missouri was about $8,221 per pupil in 2006. As a rough estimate, if the city is required to pay tuition and transportation costs—say $1,000 per year, per student—it would still save money by essentially contracting out to the county district. Whatever money is left over after this transaction would presumably be sunk back into the city, thereby increasing the per-pupil funds available to students remaining in the district. This program, a kind of voucher program completely contained within the public school system, would couple well with the current busing program.

Most proposed voucher programs rely heavily on competition between public schools and some combination of charter, magnet, and private schools. The logic behind such arrangements is simple; a variety of administrative approaches will likely lead to a wide variety of teaching methods, special programs, and systems of evaluation. Once these choices are in place, natural market forces, driven by the choices of parents in seeking the optimal education for their children, will weed out the worst and reward the best. Choice advocates further assert that by allowing market forces to take control, the entire panoply of educational opportunities will increase in quality, so that even the worst schools (tacitly assumed to be bureaucratically administered public schools) will improve significantly.

The jury is still largely out on how much competition between schools improves those schools that lose students, or by what exact mechanism competition produces those changes. Perhaps, when faced with the prospect of losing students and the funds that come with them, public school bureaucrats will start working smarter and more efficiently. More likely is the notion that, when competition starts to drain students and resources, those losing schools adopt whatever successful policies led students to the competing school in the first place. This suggests that competition-induced experimentation and variation between schools leads to new, more successful approaches to educating targeted segments of the population. In either case, it seems that part of the failure of some public schools, particularly the Saint Louis public schools, lies in an inability to innovate and specialize to meet student needs.

Many of these barriers to innovation no doubt originate in the political red tape inherent in any public institution, but that does not necessarily mean that we should abandon the public education system. Rather, a policy encouraging this mild form of competition between the county districts and the city district will provide an informative example of just how competition might work within the context of a limited voucher program, and how such competition can breed innovation. Most importantly, it will enable a group of kids, for whom choice was an unaffordable luxury, an opportunity to decide for themselves which school best meets their educational needs. Every child deserves a chance to succeed. Choice can provide that chance.

Steve Bernstetter is an intern at the Show-Me Institute and a graduate student in public policy administration at the University of Missouri-St. Louis.

 

Slowly creeping forward…

After years of status quo, "throw money at it" solutions to difficulties in public education, Missouri is finally moving forward with some more constructive politicies. The Saint Louis Post-Dispatch has an article discussing the changes, as well as some proposed ideas that were ultimately left out of the final legislation. We have already written pretty extensively about methods for improving the schools, so I won’t rehash old arguments too much. However, I would like to suggest a few more systematic changes that might help as well.

First, open enrollment within and between the city and county districts could increase competition for students between schools and districts. The prospect of losing students, and the funding that comes with them, should spur schools to rethink failed programs and develop new ones to better meet student demand. This does not mean dismantling public schooling as we know it, only dismantling some of the artificial boundaries we’ve created between schools and districts. Our loyalty should be with the students, not the institutions.

To further encourage innovation and creativity amongst teachers and administrators we might consider "Chartering" all public schools. "chartering" does not mean removing public oversight of schools, only giving more power to individual schools to set their own direction. Eliminating some of the bureaucratic red tape inherent in public institutions will make it easier for schools to specialize to meet particular student needs. At this point, all options with any potential for success should be on the table. The steps taken by MO legislators in HB265 are a good start. Hopefully they are but the tip of a very large education reform iceberg.

Support Us

The work of the Show-Me Institute would not be possible without the generous support of people who are inspired by the vision of liberty and free enterprise. We hope you will join our efforts and become a Show-Me Institute sponsor.

Donate
Man on Horse Charging