• People in Kansas City love their airport. Pride in a local airport probably isn’t very common around the country, but it is a very important aspect of this campaign. Mayor James, before celebrating criticism of the airport, counseled consultants not to criticize the airport for that very reason.
• The plan at hand is to spend $1.2 billion to reduce the number of gates we have now. Where else does a city spend that sort of money to get less service?
• The matter of financing has never been an issue with the Show-Me Institute. Back in 2014, we listed some reasons to oppose the airport terminal, but the cost to taxpayers is not one of them. Financing only became an issue when city leaders said that the airlines agreed to finance the project. They didn’t.
• Regardless of whether the financing is done publicly or privately, it would result in a higher cost to travelers to pay down the debt. That higher cost would make MCI less attractive to airlines and travelers alike. Consider Cincinnati, where ticket prices were so high that local businesses flew employees out of Dayton, an hour away. Or consider Sacramento. Or San Jose.
• We published a piece in 2014, “Five Good Reasons to Reject New KCI Terminal.” At least four of those reasons still stand, and the piece remains a worthwhile read.

According to the Star story, Kansas City engineering firm Burns & McDonnell has proposed to privately build and finance a new single terminal at MCI. However, there appear to be strings attached:

One key to the proposal for Burns & McDonnell is that it would get an exclusive arrangement with the city to provide the design and come up with a guaranteed maximum price.

Other firms would not have access to make their own offer, nor would the city request bids.

Not surprisingly, Steve McDowell, CEO of BNIM (another architectural firm in KC), expressed concern that such a deal would exclude a great deal of area architectural and engineering talent, telling the Star that “some of the best work in the country is coming out of our city, and I’d hate to see that not taken advantage of for the design of our gateway.”

• The Show-Me Institute is aligned with The Kansas City Star editorial board calling for a policy debate that is “open, fair, complete, fact-based and inclusive.” If the past four years are any indication, it’s fair to wonder whether that debate will happen.
• Lastly, the Star mentions that privately financed airports are nothing new; they’re common in Europe. And therein lies an idea worthy of consideration in Kansas City. If Burns & McDonnell is eager to build and operate a new terminal, why don’t they buy the whole thing? The Show-Me Institute published a paper on this not too long ago. (See page 17.) Not only is Branson’s airport privately owned, but the Kansas City Council previously considered privatizing MCI.

If the City is open to private financing and private operations, how far are we from private ownership?

The post Important Background on the Airport Discussion appeared first on Show-Me Institute.

More specifically, Kansas City leaders have not adopted land-use policies that have made cities like Portland and Denver so expensive. To demonstrate the impact of these regulations, Cox uses a “median multiple,” which he calculated by dividing the median house price by the median household income:

In 1990, the three metropolitan areas [Denver, Portland, and Kansas City] had similar housing affordability. The median multiple in both Denver and Portland was 2.4. Kansas City’s median multiple was 2.3. By 2015, the median multiples in Denver and Portland had more than doubled to 5.1. By comparison, the increase in the median multiple was much less in Kansas City, at 2.9.

Other cities also saw housing prices rise without a commensurate increase in median household income:

Sydney, Australia, which was among the earliest to adopt urban containment policy, now is among the least affordable housing markets internationally, with a median multiple of 12.2 in 2015, while San Jose and San Francisco have median multiples of 9.7 and 9.4, respectively. In these metropolitan areas, which had median multiples of under 3.0 before adopting strong land-use regulation, residents now face median multiples that are more than three times as large as those in Kansas City.

Kansas Citians are constantly told that we need to be like Portland and Denver by streetcar aficionados,  Dallas for folks who want a new airport, or Indianapolis by people pushing a new convention hotel. But Kansas City is not those places, thankfully. And our greatest strength—housing affordability and the cost of living it allows—exists exactly because we didn’t follow their lead on land use regulation.

Kansas City needs to be Kansas City, and Cox’s paper is required reading for anyone who wants to understand how we can promote ourselves to the world.

The post When Kansas City Leaders Got It Right appeared first on Show-Me Institute.

Supporters of a new terminal lamented this pause and argued that voters were not sufficiently informed of what was before them. Some even propose a more aggressive public education campaign. Sadly, this is what serious policy discussions often come down to—not thoughtful exchanges of ideas, but rather an uncompromising proposal stubbornly marketed and shouted in various ways at a busy public. And if they still don’t agree . . . shout louder!

In fact, after years of public debate, voters in Kansas City (and everyone who uses the airport) knew exactly what was being asked of them. Few issues have been discussed in more or at greater length than the airport. There have been numerous public meetings, TV and radio segments, and print news articles on the matter. A group of citizens even collected signatures to make sure the public had a vote. The public knew exactly what was being proposed.

Because MCI is a cheap airport for airlines to serve, we get more service. We have more direct flights than other markets our size. American Airlines and Southwest continue to expand service and in recent years we’ve attracted additional smaller discount airlines such as Allegiant and Spirit. These are not warning signs of a failing airport.

There are risks to taking on big builds. In Sacramento, San Jose, and Cincinnati, localities invested heavily in new airports. They increased airline fees to pay down the debt and saw airline service decline. This is a simple enough economic reality: when you charge more for something, you sell less of it. It really is that simple. Any effort to improve MCI must make sure that we retain our competitive advantage: a cheap and convenient airport.

Those in St. Joseph and across the region have a stake in the matter, but they won’t have a vote. Frequent travelers would be well served to make sure their friends in Kansas City are educated on the benefits and risks of a new terminal.

The post An Informed Public: Poor Policy’s Worst Enemy appeared first on Show-Me Institute.

We have made a conscious decision as a community to build the infrastructure to retain, attract and grow tech companies here and support entrepreneurship. It’s one of our strongest economic drivers.

Unfortunately, the data tell a different story.

Recently, the San Diego Economic Development Corporation released a comprehensive report on the national tech sector, where it also ranked cities based on the health of their tech scene. Of the country’s 50 largest metros, Saint Louis ranked an unimpressive 28th, placing it below regional competitors like Indianapolis, Columbus, and Oklahoma City.

One of the most jarring reasons for Saint Louis’s low ranking, given the rhetoric, is the fact that the region has comparatively few software developers. The region has only 8.8 software developers per 10,000 workers, low for a large city. For comparison, San Francisco, Raleigh, and Washington, D.C., each have more than 20 developers per 10,000 workers (San Jose has more than 60). Worse yet, tech jobs actually decreased in Saint Louis from 2010 to 2014 by almost 10%. Average tech employment increased by more than 13% in the country’s largest cities during that same period. It’s hard for the region to be a rising tech hub when it has fewer and fewer software developers.

In terms of the tech sector pipeline, Saint Louis also performed poorly. The region’s residents are much less likely to have math or computer science degrees than are residents in other cities. If it’s harder to find tech talent, it’s harder to attract tech companies. One of the few bright spots for Saint Louis is money. After adjusting for cost of living, tech workers in Saint Louis get paid more than they would in most other large cities. In addition, Saint Louis attracts a decent amount of venture capital given the size of its tech sector.

To sum up, Saint Louis has established tech companies. It has startups and a tech incubator. But that can be said of almost any large American city. Taking a national view, Saint Louis’s tech growth strategy seems downright banal. As Aaron M. Renn from the Manhattan Institute put it:

Civic policy at the local level is dominated by “school solutions” that promote the same characteristics everywhere, often as a way of signaling that a city belongs in the “club.” …most cities try to look exactly the same as other cities that are considered cool, including offering bike lanes, coffee shops, microbreweries, a creative class, a food scene, and a startup culture. Even most cluster analysis seems to produce primarily a collection of the same five basic focus areas in every region (high tech, life sciences, green industry, advanced manufacturing, and logistics).

Simply having a tech scene is a natural result of being a populous region in the 21st century; it shouldn’t be taken as a sign that Saint Louis is about to have an economic transformation. The fact is, despite public support, Saint Louis’s tech scene is not a large player nationally, nor is it a terribly significant driver of the Saint Louis economy. 

The post Saint Louis: Not a Tech City appeared first on Show-Me Institute.

I taught at an urban, historically African-American Catholic school, St. Jude Educational Institute on the west side of Montgomery, Alabama. After 76 years of operation it closed its doors 2014, following the path of many other inner-city Catholic schools. 

You should be worried about urban Catholic schools closing, as they have for decades succeeded where other schools have failed.  Surveying the research, economist Derek Neal wrote, “Although many questions remain unanswered, one result seems clear. Black and Hispanic students in large cities often have the most to gain from private schooling, in particular, Catholic schooling.”

But the story of Catholic schools in America today is not all doom and gloom. Echoing what my good friend Andy Smarick wrote in National Review earlier this week, there are in fact, several promising trends in contemporary Catholic education. I’d like to highlight three:

1. Innovative management strategies. Many dioceses have not kept up with the changing times. Some still rely on parish-based schools tied to neighborhoods whose demographics of both children and parishioners are changing. Others have decided to keep open a large number of under-enrolled schools rather than consolidate resources into a smaller number of more viable schools. Our Lady Queen of Angels is a great example of a school under creative leadership. It is part of the Partnership for Inner City Education, a management consortium of 6 urban Catholic schools in New York. The partnership has a laser-like focus on providing a great education for low-income students, and supplements the Archdiocese, which already has its hands full managing its diverse portfolio of schools. Organizations like this (which already exist in Washington DC, Philadelphia, and elsewhere) can help bring a much more coherent strategy to urban Catholic education and stretch limited dollars the furthest.
2. Blended Learning. Multiple Catholic-school organizations have been working on blended learning models, which can help schools control personnel costs, a huge driver in the increase in the cost of Catholic schooling as the teacher workforce has shifted from priests and religious sisters to lay men and women. Seton Education Partners has implemented a blended learning model at six Catholic schools in San Francisco, Cincinnati, Los Angeles, Milwaukee, and Philadelphia. The University of Notre Dame’s Alliance for Catholic Education has piloted a blended learning school in Seattle. Even the much-vaunted Cristo Rey network has started a blended learning school in San Jose, California. These could change the delivery model of Catholic education, lower its cost, and make it available for more and more students.
3. School Choice. Probably the single most promising development in Catholic education over the past two decades has been the emergence and growth of private school choice programs. Catholic schools in Indiana, Florida, and Wisconsin have swelled with students attending with state support in the form of a school voucher, tuition tax credit scholarship, or education savings account. Nationwide, enrollment in school choice programs has grown from less than 30,000 students in 2000 to over 300,000 today. That said, if more low- and middle-income students are going to be able to take advantage of a Catholic school education, more states will need to create or expand these programs.

It was the prophet Jeremiah who said “in this place of which you say it is a waste, there will be heard again the voice of mirth and the voice of gladness. The voices of those who sing.” For years now, many observers have written off Catholic schools as dying institutions that had failed to keep up with the changing times. But across America, voices are singing.

The post Pope Francis Is Visiting a Catholic School. Maybe You Should, Too appeared first on Show-Me Institute.

“That reputation hasn’t made it out here,” responds the Google executive.

While online universities haven’t exactly obtained an “Ivy league” status, they certainly are impacting the education market.

Massive Open Online Courses (MOOC), such as Udacity and edX, provide free access to lectures, readings, and coursework. Participants can receive a certification or credit, which may be used for educational or professional purposes. In January, San Jose State announced a partnership with Udacity to offer remedial courses to incoming freshmen.

Last week, Southeast Missouri State University (SEMO) announced it would explore another type of online model, competency-based education. The model is based on Western Governors University (WGU), which is basically “all-you-can-eat.” Students pay one flat rate per term. This allows students to skip ahead by testing out of modules. It would be possible to earn a degree in one year for under $6,000.

While the quality of these programs and the acceptance by employers is debatable, MOOCs and competency-based programs are competition for state universities like SEMO and San Jose, who have had to adapt to attract students looking for a flexible, low-cost college experience.

The post SEMO May Embrace All-You-Can-Eat Education appeared first on Show-Me Institute.

As always, we caution against putting too much weight on the outcome of one survey of one industry in one town. With that caveat in mind, what did the survey say?

In response to the higher minimum wage, two-thirds of the responding firms, the majority of which fall in the 10-49 employee size, will (or have) increase prices. More than 40 percent of the establishments plan to reduce employee hours and staffing levels. While 7 percent of the firms are now considering closing locations in San Jose, 30 percent are, after the wage increase, not likely to expand operations.

The EPI survey of food establishments in San Jose offers one observation supporting the predictions of basic economic theory; namely, that a higher minimum wage will lead to undesirable consequences, including higher product prices for consumers and, especially for those workers on the lower rungs of the job market, reduced income.

The post Do You Know The Pay In San Jose? appeared first on Show-Me Institute.

Fallacy 4: State-by-state comparisons need not adjust for the cost of living

Teachers in Missouri are among the worst paid in the nation, right? That is what the editorial board of the Post-Dispatch would have you believe. As evidence, they link to a piece in The Atlantic, which lists the 10 best and 10 worst states in terms of teacher salaries. Missouri ranks 3rd on the 10 worst list.

As with almost everything else written in the editorial piece, there is a huge problem with this comparison — the cost of living.

The average teacher salary listed for Missouri is $46,411. This seems much lower than the $72,708 salary listed for New York or the $69,434 salary listed for California. Of course, it costs much more to live in those places.

A quick visit to a cost-of-living calculator can help us understand the difference between Missouri’s teacher salaries and those of the highest-paying states.

A salary of $45,000 in Saint Louis, Mo., would be approximately equal to:

$90,246 in Brooklyn, N.Y.

$108,079 in Manhattan, N.Y.

$67,821 in Boston, Mass.

$65,598 in Long Beach, Calif.

$74,242 in San Jose, Calif.

$64,807 in Newark-Elizabeth, N.J.

$61,152 in Hartford, Conn.

$72,810 in Stamford, Conn.

It is disappointing that the Post-Dispatch piece misses the mark on so many levels, because there is room for good debate on these issues.

Because I have spent the past four blog posts explaining where the Post-Dispatch went wrong, I think I should close with an area of agreement. The editors note that the legislature is not meeting its obligation because they are under-funding the foundation formula. To that, I agree.

The post Dismantling The Post-Dispatch’s Piece About Education (Part 4 of 4) appeared first on Show-Me Institute.

Since the Internet hit the big time in the mid-1990s, Amazon and eBay have changed the way we shop, Google has revolutionized the way we find information, Facebook has superseded other ways to keep track of friends and iTunes has altered how we consume music. But kids remain stuck in analog schools. Part of the reason online education hasn’t taken off is that powerful forces such as teachers unions — which prefer to keep students in traditional classrooms under the supervision of their members — are aligned against it.

So children continue to learn from blackboards and books — the kind made of dead trees! no hyperlinks! — rather than getting lessons the way they consume virtually all other information: online. Putting reading materials and lecture notes on the Internet, like many teachers do today, is just the first step; it’s like when, in the early days of movies, filmmakers pointed a camera at a stage play. Kids are still stuck watching those old-style movies, when they could be enjoying the learning equivalent of “Avatar” in 3-D. Thousands of ninth-grade English teachers are cobbling together yet another lecture on the Globe Theatre in Shakespeare’s day, when YouTube is overflowing with accessible, multimedia presentations from experts on Elizabethan theater construction, not to mention a very nice illustrated series on the Kennedy Center’s ArtsEdge site. […]

How do we know online education will work? Well, for one thing, it already does. Full-time virtual charter schools are operating in dozens of states. The Florida Virtual School, which offers for-credit online classes to any child enrolled in the state system, has 100,000 students. Teachers are available by phone or e-mail from 8 a.m. to 8 p.m. seven days a week. The state cuts a funding check to the school only when students demonstrate that they have mastered the material, whether it takes them two months or two years. The program is one of the largest in the country. Kids who enroll in Advanced Placement courses — 39 percent of whom are minority students — score an average of 3.05 out of 5, compared with a state average of 2.49 for public school students…

Moving lesson planning and delivery online can provide students with more supervision, not less, says Michael Horn, one of the co-authors of “Disrupting Class.” It would free teachers, Horn says, “to do hand-holding and mentoring, something which is pretty much impossible in the current model.” After all, where is it written that the babysitter, disciplinarian, lecturer and evaluator must all be the same person? Or even that they all have to be in the same building?

Some online learning models eliminate human interaction, but the vast majority do not. Instead, they connect students and teachers via polls, video, chat, text and good old-fashioned phone calls. The Virtual Virginia program focuses on offering Advanced Placement classes to every student in the state, bringing college-level courses to rural districts and inner-city Richmond, where high-level instruction is difficult to get. Rocketship Education, in San Jose, Calif., brings at-risk elementary students together in a safe, cheap, modular space along with a small staff and hands their studies over to online curriculum for part of each day.

Online education has already become a boon for kids with special needs, the students least served by the traditional system. Education entrepreneur Tom Vander Ark launched Internet Academy, the first online K-12 establishment, in 1995 in part to serve kids with unorthodox education requirements, from serious athletes to children with health problems or learning disabilities.

One of the most successful areas of online education so far is helping kids who have fallen off the educational grid. Companies such as AdvancePath Academics scoop up students classified as unrecoverable by traditional schools and help them complete their education. Some dropout-recovery programs can be found in shopping malls and gyms.

Online education is no silver bullet for Missouri’s educational problems because there is no such thing. Each student is different, and although the traditional models may work well for most (a point I think is debatable), others may experience far more success in a more structured online program that still allows students to move at their own pace. Others could benefit from more independent learning styles like Montessori schools. All these options have their places, and we will be most successful when we allow parents and students find the pedagogical methods that work best for them instead of trying to force hundreds of thousands of individuals into the same boxes.

Sarah Brodsky has written about online schooling several times, and Caitlin Hartsell has also blogged about the issue.

The post Celebrate Educational Diversity appeared first on Show-Me Institute.

This is good news for Kansas Citians, who have been largely spared from the harshest wrath of the current housing “correction.” Saint Louis residents haven’t fared nearly as well, with the latest housing price index indicating year-over-year price declines of 5.2 percent. In fact, Forbes lists Saint Louis as number 4 in its “Riskiest Real Estate Markets” list.

Leading Kansas City on Forbes’ list were San Jose, Calif., San Francisco, Calif., Salt Lake City, Utah, and Austin, Texas.

The post Some Positive (and Not-So-Positive) News for Missouri Homeowners appeared first on Show-Me Institute.