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		<title>The St. Louis City-County Merger with Aaron Renn and David Stokes</title>
		<link>https://showmeinstitute.org/article/economy/the-st-louis-city-county-merger-with-aaron-renn-and-david-stokes/</link>
		
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					<description><![CDATA[<p>Susan Pendergrass speaks with Aaron Renn, author and consultant, and David Stokes, Director of Municipal Policy at the Show-Me Institute, about the recurring debate over whether the city of St. [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/economy/the-st-louis-city-county-merger-with-aaron-renn-and-david-stokes/">The St. Louis City-County Merger with Aaron Renn and David Stokes</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p><iframe loading="lazy" title="Should St. Louis City Rejoin the County?" width="640" height="360" src="https://www.youtube.com/embed/Owt2qC9qSdI?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></p>
<p>Susan Pendergrass speaks with <a href="https://www.aaronrenn.com/" target="_blank" rel="noopener">Aaron Renn</a>, author and consultant, and David Stokes, Director of Municipal Policy at the Show-Me Institute, about the recurring debate over whether the city of St. Louis should rejoin St. Louis County. They explore what city county mergers have actually accomplished in places like Indianapolis, Louisville, Nashville, and Lexington, why a full merger in St. Louis would be extraordinarily difficult to pull off, and whether the benefits would even outweigh the costs. They also discuss St. Louis&#8217;s demographic challenges, what the Pittsburgh model might offer as a path forward, the cultural barriers that make it hard to attract and retain people from outside the region, and more.</p>
<p>You can <a href="https://www.aaronrenn.com/" target="_blank" rel="noopener">find Aaron&#8217;s work here.</a></p>
<p><a href="https://open.spotify.com/show/0Q1odFTa0wlGZw0jeUZFw6" target="_blank" rel="noopener">Listen on Spotify</a></p>
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<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><span style="text-decoration: underline;"><strong>Episode Transcript</strong></span></p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (00:05):</strong> Welcome back, Aaron Renn, to the podcast. So happy to have you and David Stokes, our own expert on cities and counties and all things municipal. I appreciate you coming on, Aaron. There have been murmurings around St. Louis again on a topic that we have revisited for probably a hundred years: should the city of St. Louis be a separate county from St. Louis County?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Before we get to that, I want to ask you something because I was reading the news this morning, and I know that you&#8217;ve written about city county mergers before, like cities that are kind of dying and then either pulling in parts of their closest suburbs to sort of make everything look better, broaden their tax base, make their crime numbers look better. I was reading something you wrote a year or two ago about that, and you said that Louisville is a failed example of that. Is that right, basically?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (01:01):</strong> Yeah, I&#8217;m a little skeptical of how these things have worked out in practice.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (01:05):</strong> Yeah, in terms of losing the flavor and the coolness of the city. Literally this morning I saw an article about how Louisville is having a renaissance and these young professionals are all moving there because they didn&#8217;t tear down all their beautiful old Victorian homes, so you can still get one for close to a million dollars. They&#8217;ve got a cool art scene and a bourbon scene. So it sounds like maybe Louisville did not lose its personal flavor in the merger. I would be curious to know what you think of that.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (01:33):</strong> Well, I like to put St. Louis in context. I&#8217;m glad you mentioned Louisville because many of these river cities have similar characteristics. I like to look at St. Louis as well as three cities in the Ohio Valley: Louisville, Cincinnati, and Pittsburgh. All of them heavily German Catholic in their demographics. All of them are very geopolitically fragmented with many small tiny suburbs throughout. They all have very fragmented neighborhood systems as well, where everybody has a strong sense of neighborhood identity. Where you go to high school is a big social marker. They all have phenomenal collections of urban assets and great historic buildings. They all still have their own unique character in a country where that has sort of bled away.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (02:31):</strong> And they also have curiously underperformed demographically and economically in terms of growth. They&#8217;re slow growth places. So one thing I always encourage people is to pan back the lens and don&#8217;t just look at St. Louis in isolation. Look at it in comparison or dialogue with some of these other places and see what you can learn from them.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Louisville is actually a quite troubled city in important ways. From a white collar employment perspective it&#8217;s doing well, from a blue collar perspective less so. It&#8217;s one of the 10 least educated major metros in the country. I don&#8217;t want to spend too much time on Louisville, but I want to talk about the city county merger, which is distinct from recombining the city and the county. This has been considered urban planning best practice for 30 or 40 years. There was a book written by David Rusk called Cities Without Suburbs. The idea is that cities that were able to expand their boundaries through either annexation or city county mergers were prospering, whilst cities that did not, like the Clevelands, the Cincinnatis, and the St. Louises, were struggling. So the idea is we need big box government.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Indianapolis, where I live now, had a city county merger in 1970. Louisville did a city county merger, I grew up near Louisville. Jacksonville, Florida, Lexington, Kentucky, and Nashville, Tennessee did as well. What I would say is a few things. Merger is not necessarily bad. For Indianapolis, merger did prevent the city from essentially going down the tubes in important ways. So it really was a win in important ways.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">But it did not prevent the historic city from going into the exact same demographic decline as St. Louis. The historic city of Indianapolis has lost almost exactly the same share of its population since 1970 as St. Louis has. Secondly, these are very politically difficult to pull off. They take enormous effort. They often fail multiple times. Louisville had multiple failures.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">The most precious resource is always management time and attention. Is this where you want to put all your political chips? And in order to get it passed politically, what happens invariably is that most entities are actually not consolidated. In Louisville, none of the existing incorporated suburban governments were in fact merged. In Indianapolis, the school districts weren&#8217;t merged.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">This means you don&#8217;t necessarily get all of the benefits you think from consolidation, because many things are excluded. And then unlike a corporate merger, where there&#8217;s typically a lot of downsizing and cost rationalization, in city county mergers nobody ever loses their job and salaries and benefits might even be harmonized upward to the high watermark. So don&#8217;t expect it to save any money. Personally, city county merger might have some benefits for St. Louis. I&#8217;m not saying it would have no benefits, but in my opinion it&#8217;s not going to be a needle mover and most likely it would be extraordinarily politically difficult and uncertain to pull off.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (06:00):</strong> Yeah, no question. It&#8217;s been very politically difficult. People don&#8217;t want to do it. However, we do have these little tiny school districts and police districts. We have, I don&#8217;t know, 28 911 systems. We have a lot of what looks like bureaucratic waste and red tape. To the extent that doesn&#8217;t get resolved in a merger, then what&#8217;s the point? But I do think, you know, we&#8217;ve been talking about the demographics of St. Louis. There were over 800,000 people in the city once. Now there are maybe 280,000 and declining, and we&#8217;re in the death spiral of more people dying than being born. We&#8217;ve been in that for a while. And I guess it brings up the question of what is St. Louis to do if we are in this death spiral? We&#8217;re not having the babies. We&#8217;re having fewer babies than we did 15 years ago. So school enrollment is only declining. What is the prescription in that situation?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">I&#8217;ve been to Cincinnati quite a bit. They&#8217;re trying to get people downtown with sports stadiums. It doesn&#8217;t really work. Louisville has sports stadiums downtown. I don&#8217;t know if people really want to move down there. I don&#8217;t see it working in St. Louis. So what is a city in that situation to do?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (07:18):</strong> It&#8217;s going to be challenging in a sense because your problems are a little over determined. St. Louis was once a regional capital city, much like a Dallas or an Atlanta or a Denver or a Minneapolis. And it lost a lot of those functions. Many of its headquarters have left. It used to have a lot of professional services firms like ad agencies that did business all over the country, not just for the local market. Now St. Louis, although it&#8217;s still bigger than Indianapolis, looks a lot more like an Indianapolis or a Columbus, Ohio, where you have fewer corporate headquarters and most of the service firms are just there to serve the local market. St. Louis has essentially shrunk a little bit in relative importance, and it&#8217;s hard to get that back.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">The demographics are also quite difficult and create a situation where it&#8217;s hard to attract business when you have a shrinking labor force, weak demographic growth, and a weak ability to bring people in from the outside. So it&#8217;s a very complicated situation and I don&#8217;t think there&#8217;s any silver bullet for St. Louis.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (08:39):</strong> That&#8217;s what I&#8217;m asking you for. You have the answers. What&#8217;s the silver bullet?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (08:43):</strong> So here are the things I would look at if I were in St. Louis. One of the clear issues that affects all of these river cities is that their wonderful, unique local cultures come with a downside, which is an extreme parochialism that has two negative effects. One, it makes it difficult for the communities to cohesively work together, which I&#8217;m not telling you anything you don&#8217;t already know. City-suburb divides tend to be bigger. In Indianapolis, regional leadership is mostly all on the same page about the big issues. Same with Columbus, Ohio. Secondly, it makes it very difficult to attract people from out of town because they come there and they can&#8217;t make friends, they can&#8217;t penetrate the social networks.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (09:15):</strong> 100%, yes.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (09:40):</strong> You hear it over and over again in places like St. Louis, Cleveland, even Minneapolis, Minnesota. There are some sayings there. If you want to make friends in Minnesota, go to kindergarten, because that&#8217;s when everybody makes their friends. Or Minnesotans will give you directions anywhere but their house. They&#8217;re never going to invite you over. St. Louis has that reputation. I don&#8217;t think it&#8217;s just a reputation. And I know you just had Ness Sandoval on.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (09:53):</strong> Yeah.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (10:08):</strong> He&#8217;s talking about you need to get better on migration. Migration isn&#8217;t going to improve if migrants are not going to be able to join the social networks here. And that&#8217;s not even just international migration, that&#8217;s domestic migrants. So I think that&#8217;s a huge issue for the city. Cultural issues are hard to solve, but maybe less intractable than infrastructure.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">The other thing is looking at Pittsburgh as a sort of model. Pittsburgh hasn&#8217;t solved really most of its problems by any means, but it has been able to regenerate in the city a sort of high value economy around Carnegie Mellon and the University of Pittsburgh Medical Center. It&#8217;s done quite well. Many Silicon Valley firms have set up shop there. What&#8217;s happened in Pittsburgh, although it&#8217;s still a demographic decline story, is there&#8217;s been a demographic transition in the city. Pittsburgh went from one of the least educated cities in America to now one of the youngest and most educated. Part of it is old people moved and died off and young educated people replaced them. So the total number of people in the city was declining, but there was a churn happening underneath. And the same thing is already happening in St. Louis.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (11:13):</strong> How did they do that?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (11:33):</strong> College degree attainment in the city is now well north of 40%. So the people who live in the city of St. Louis are very educated. That demographic churn has raised educational attainment and thus incomes in the city a lot. Now Pittsburgh was different because it was an almost entirely white city. There&#8217;s a racial divide in St. Louis and gentrification concerns become more salient. But St. Louis is now an educated city. This is not an old post-industrial blue collar city. The city of St. Louis itself is very educated. And also being very small, it doesn&#8217;t necessarily need a massive change to move the needle. In Indianapolis we have a population of over 900,000. Moving that behemoth takes a lot. St. Louis now being smaller has a situation where there could be a big impact from lower numbers of things. So I think a knowledge economy built around Washington University and your medical centers has some possibilities, somewhat similar to Pittsburgh.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (12:45):</strong> So much medical.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (12:58):</strong> Carnegie Mellon&#8217;s engineering and computer science areas will be a little different. I might also look at Vanderbilt, what&#8217;s going on there? What are some peer schools you could watch to see what&#8217;s going on? But I think there are actually some reasons to think that the city of St. Louis, believe it or not, could be sort of turning a corner. It has now demographically renewed itself to a higher educational attainment state. Being small, it probably doesn&#8217;t have that much further to fall, and you can start building from there. Obviously there are governance challenges, but looking at the Pittsburgh model, studying similar complexes around peer schools, and addressing the culture issues is where I&#8217;d look.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (13:33):</strong> Hopeful.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (13:47):</strong> So as a spokesperson for St. Louis, what do you see for the future?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (13:52):</strong> Well, I would be curious to get Aaron&#8217;s thoughts on that size question, about how the city of St. Louis has in fact gotten so small. It&#8217;s about 10% of the metro area. How does that affect the pros or cons of any type of a merger? These would not be a merger of equals. St. Louis County would almost subsume St. Louis City into it. How do you think that would affect things for better or worse?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (14:28):</strong> Well, that was the critique of the Louisville merger by two academics at the University of Louisville. I mentioned the book Cities Without Suburbs. They wrote an academic paper called Suburbs Without a City, which basically said if the merger passed in Louisville, it would essentially mean the suburbs take over the city, not the city taking over the suburbs, because the old city of Louisville only had about 260,000 people and the suburbs would numerically dominate. The same thing would certainly happen in St. Louis. If there were a merger, suburban St. Louis County would control the city in essence.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Another consideration, and this is a Cincinnati issue, I interviewed about 15 years ago the mayor of Cincinnati, John Cranley. Here&#8217;s what he said, and I think this is an important point. He said, 30 years ago, city county merger was the thing because cities were in decline and you wanted to tap that suburban tax base to fund the city. But now it&#8217;s reversed. Now the cities are coming back and it&#8217;s the inner suburbs that are actually going down the tubes. And so in Cincinnati today, we have all the corporate headquarters, we have the universities and the medical centers, and we don&#8217;t have to share our tax revenue with anybody. If we were merged with the county government, we&#8217;d have to prop up all these failing suburbs. And so I think you&#8217;re in a similar situation in St. Louis, where the high value activity, not all of it is in the city of St. Louis because of Clayton and so on, but the St. Louis County suburbs are mostly places that are themselves on negative trajectories. Merging the city, which may be on the cusp of being able to bottom out and turn around, with all of these still declining inner suburban areas, might actually be an albatross around the city&#8217;s neck.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (15:16):</strong> What would that mean?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (16:37):</strong> I just think one of the differences between St. Louis and Cincinnati, and I don&#8217;t know the property tax base of Cincinnati, is that so much of the city of St. Louis is tax exempt right now. Between Washington University, Saint Louis University, and all the government entities, there&#8217;s just so much of it. I say that as somebody who supports property tax changes to make them pay something towards it. But I just don&#8217;t think the Cincinnati argument applies to the city of St. Louis right now. That property tax exemption part is a huge factor because the most growing, thriving part of it is the entire giant Barnes-WashU-Cortex complex, and the amount of property taxes they pay is miniscule.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (16:38):</strong> Hmm.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (17:26):</strong> Well, some of that is a planning issue. And I think the reality is, when you have a complex like that, are all these people going to move to St. Charles? Maybe not. I&#8217;ll tell you, I live in the suburb of Indianapolis named Carmel, and a lot of the hospitals and things have been opening facilities here. When these nonprofit hospitals come up here, we will not approve zoning changes for those hospitals unless they agree to make payments in lieu of taxes. You want to come up here and you want a zoning change, you&#8217;re going to have to pay. We were actually quite prescient in that one of the local hospital chains opened a for-profit hospital. As part of the approval deal, we said, if you ever convert to nonprofit status, you will continue paying property taxes. And we did that.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">So I think there probably is leverage from the city over some of these entities. You don&#8217;t have a lot of leverage over a corporation deciding where to put their office, but that&#8217;s not a tax exempt situation. The stuff at Cortex is probably not going to leave if you make them pay a little money the next time they come to you for a zoning approval. I think you need to start looking at how to get more money out of these entities that are nonprofits in name only. These universities and hospitals are effectively gigantic hedge funds. Their executives are extremely well compensated and billions of dollars are flowing through there. Undoubtedly the better solution there is to figure out how to tax them rather than figure out how to tax the soon-to-be-dead mall in the suburb over the border.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (19:24):</strong> Well, yeah, and that&#8217;s sort of the trade off, unfortunately, is that they do pay earnings tax. The employees, many of them very highly compensated, pay the earnings tax. And that&#8217;s what makes the city more dependent on local income taxes, not less, because they&#8217;re either tax exempt or in the case of Cortex, have tax abatements that make them essentially tax exempt.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (19:25):</strong> We do have earnings taxes, right? So the folks who work there have to pay an earnings tax.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (19:53):</strong> Yeah. Again, I don&#8217;t know exactly the fiscal architecture there. But I would say you don&#8217;t want to do a merger simply to do a tax dollar grab. The lesson of Indianapolis is we did that. We grabbed suburban tax dollars and we used it to rebuild our downtown successfully. But here we are 50 years later, and now we have enormous tracts of decayed suburbia that are an enormous problem. Our entire core county is now in a sense the inner city. We have big challenges because we were not able to invest in ways that allow those suburban areas to retain their allure over the long term.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">And I&#8217;m not saying that&#8217;s impossible, but any short term juice you get, cities always rise and fall. Core cities have proven more resilient and more able to regenerate themselves than suburbs. Part of it is because state governments cannot afford to let their state&#8217;s largest city or major urban center go down the tubes.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (21:06):</strong> Yeah.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (21:16):</strong> Missouri cannot let St. Louis and Kansas City implode. Michigan cannot just write off Detroit and say who cares. But these suburban areas have proven a lot tougher to save. We don&#8217;t have a good model. We&#8217;ve spent decades thinking about how to rebuild cities and build districts. There are certain things you can pull off in a city around conventions, civic events, gathering spaces, museums, and government that are very hard to translate to suburban settings. So there&#8217;s not a great playbook, especially in declining markets, for renewing suburbs. The playbook for suburban renewal, if you want to call it that, is places like Carmel, Indiana, which are growing and affluent, and therefore can build large mixed use centers, new urbanist developments, trails, and parks. The suburbs of St. Louis County are probably tremendously deficient in infrastructure as we would understand it today.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">So again, there may actually be some benefits in having St. Louis City rejoin the county in a sense, because then the county functions are spread and amortized across a larger population.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (22:45):</strong> It would immediately improve our murder rate because we would be mixing it in.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (22:48):</strong> Yeah, there is some of that. The murder rate is an artifact of the size of the city more than anything. There are places in Chicago with higher murder rates. A former colleague of mine at the Manhattan Institute, Rafael Mangual, did an analysis of Chicago. He said there are areas on the South Side of Chicago that are larger and have more people than St. Louis with far higher murder rates than St. Louis.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (22:56):</strong> We get called out because of the small denominator.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (23:17):</strong> And so there is that. The other thing is Chicago is a good example. New York City was essentially a city county merger. In 1898, the five counties that are the five boroughs of New York were consolidated into one city. Philadelphia was also a city county consolidation from the 19th century. But what happens when you create a very large city of say a million people or more is you really have to scale up your government. You have to have a government that operates at that scale.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">What happened with Indianapolis was we merged city and county government, but we didn&#8217;t really have a government that could effectively manage this new larger territory. It never built out the infrastructure in the suburbs. In New York, the Bronx has subways, great parks, everything built out with proper infrastructure, because it was part of New York and New York had to expand governance to become a city of eight million. Chicago got big in the 19th century and built a city government that could run a city of three million people. And some of the stuff that gets critiqued there, for example, is a lot of city services were organized by ward or city council district. There are 50 city council districts and every city councilor is sort of a little mini mayor of their district. The alderman essentially has veto power over any zoning changes. It&#8217;s called aldermanic privilege. So there are a lot of constraints there.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">But if it&#8217;s just one mayor and one city council trying to think about a huge city of 77 neighborhoods and three million people, they can&#8217;t keep that much in their head. All they can think about is downtown. And that&#8217;s what happened in Indianapolis. The mayor and city council can really only think about downtown. We should have built out structures in townships throughout the city so that you had leadership focused on that area and money focused on that area. That&#8217;s what made the suburbs work really well. A suburb like Carmel is basically township sized. We have 100,000 people, big enough to do things, but not so big that our mayor and council can&#8217;t keep the whole city in their head and plan and manage the whole city.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">So if you merge with the county government, you&#8217;re going to have to create an entirely new government structure that allows you to essentially manage every sub area of the whole thing and bring it all up to a standard of services. That&#8217;s the other thing they often did in Louisville and Nashville. They merge, but they have a two tier service system where there&#8217;s an urban services district for the old city which gets more services, and then the others get less. They didn&#8217;t do that in New York. There&#8217;s one standard of service in New York, one in Philadelphia, one in Chicago. So if you can&#8217;t commit to a single standard of service, you&#8217;re basically creating a bogus merger in my opinion. If you&#8217;re going to do a merger, you need to obliterate every government and entity in St. Louis County and city, merge them all into one with one standard. That&#8217;s not going to happen.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (26:35):</strong> That&#8217;s not going to happen. What do you think, David?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (26:37):</strong> Yeah, that&#8217;s not going to happen.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (26:43):</strong> So you end up with a lot of problems. Louisville didn&#8217;t merge any fire departments. Imagine a city that doesn&#8217;t have a consolidated fire department. Imagine a city without a single police department. That was actually Indianapolis. When we merged, the Indianapolis Police Department still patrolled the old city, but the new parts of the city that were consolidated in from the county were still controlled by the sheriff.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (27:13):</strong> That is 100% what would happen in St. Louis. Everyone would retain their school system and their police department and their fire department. I lived for a long time in Fairfax County, Virginia, which is a single county government. It&#8217;s massive, 150,000 students in their school system. It seems to function with a single police department and fire department. But I don&#8217;t think you can backwards engineer that into a place that for hundreds of years has been operating as it has been operating.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (27:43):</strong> Lexington, Kentucky worked pretty well because one, the schools were already consolidated, as in the South it&#8217;s typically county school districts. Secondly, there were no other government entities, no township governments, no other incorporated municipalities. So it merged everything. And they were sort of able to solve the urban services district issue because the outer areas of Fayette County were horse farms. They actually put in a kind of green belt rule, you can&#8217;t develop out there, because they wanted to protect these scenic landscapes. So there was actually a good reason to treat that differently, because it was a very unique American landscape. Lexington, I think, was pretty successful.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (28:15):</strong> They are. I appreciate it when I drive across Route 64.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (28:39):</strong> Lexington was pretty successful and wasn&#8217;t especially controversial when they did it, in part because there weren&#8217;t all these entrenched interests like there are in other places. If you look at places that did the mergers, they weren&#8217;t the Cincinnatis and Pittsburghs. They&#8217;ve been talking about consolidation in Pittsburgh forever. It was very hard. And Louisville did it, but it was one of the least consolidated so-called consolidated governments. What the Louisville merger functionally did was dissolve the city of Louisville and reorganize county government. The county government now has a mayor and a council instead of the old fiscal court with the judge executive and all that.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (29:21):</strong> That&#8217;s kind of what would happen in St. Louis, right?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (29:36):</strong> That&#8217;s essentially what they did. They basically dissolved the city and the county government was reorganized, but nothing was merged.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (29:43):</strong> Did you have a question?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (29:45):</strong> I want to get back to the fire district point. We&#8217;re talking about why this would be so hard. There&#8217;s actually a law in St. Louis that only applies in St. Louis County that makes it impossible to consolidate fire districts. Even if a modest mid-sized suburb annexes an unincorporated part of town, they&#8217;re not allowed to provide fire services to that new annexed area, or they can, but they have to pay so much to the old unincorporated fire district that it makes it impossible to do so. That&#8217;s just one example of how even if you wanted a full scale merger, it would just be impossible to actually carry through.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (30:34):</strong> Why do you think people float this idea, David? Why does it come back every couple of years?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (30:38):</strong> You know, it&#8217;s the old line. I remember a study I read about Pittsburgh and St. Louis many years ago. The question was, are the St. Louis and Pittsburgh areas really inefficient with all the fragmented government? And the conclusion was, well, you would never design a metro area like this, but they&#8217;ve both made it work over the last century better than you would think. The conclusion was that St. Louis and Pittsburgh aren&#8217;t actually as inefficient as you might assume when you run the numbers.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">I think people have trouble accepting that. People look at so many small municipalities, many of them dysfunctional, many of them until recent times funded themselves primarily with traffic tickets, which is a terrible way to fund local government, and that&#8217;s not even an exaggeration. And there&#8217;s just this fundamental belief that if you can just plan it better you&#8217;ll create a better place. I just think it fails.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">One of the reasons it would fail, going back to what Aaron led this conversation off with, is that if St. Louis County and St. Louis City joined together, they&#8217;re not actually going to lay any government employees off to save any money. St. Louis City government is not going to fire city employees. It&#8217;s never going to happen. So you&#8217;re not going to save any money and it&#8217;s all just going to collapse.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (32:12):</strong> Yeah, New York City and large governments are not more efficient.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">I look at it and say, look, I think merger is a solution for failed states, if you want to call them that, in the St. Louis suburbs. Take some micro-suburb that&#8217;s a complete scam or is bankrupt and merge it in with its neighbor. Do some consolidation like that, that probably needs to be led by state government, almost like a receivership sort of thing. That&#8217;s just kind of good government as you work through it. But I just don&#8217;t think the benefits you would gain from trying to do a complete governmental merger of St. Louis City with St. Louis County would outweigh the opportunity cost of how much time and effort you spend on it, when you could be spending that on other things that I think will actually move the needle more.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">The downsides are arguably as high as the upsides. There&#8217;s no guarantee it&#8217;s even net positive in this environment. The time to have merged was when Indianapolis did it in 1970, not in 2026. Nashville did it in the 60s. Jacksonville did it a long time ago.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">And then I think it doesn&#8217;t fix the fundamental issues around the culture. You&#8217;ve got to take a hard look at that and say, it&#8217;s maybe very difficult to change. The idea that people who aren&#8217;t from here have to be able to move here and get connected and feel like they belong in the city. There&#8217;s a couple we know who lived in St. Louis. The wife taught in St. Louis public schools. They&#8217;re big urban people. The husband was from St. Louis, and they moved here to Carmel, Indiana.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (33:47):</strong> Tell me more about that.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (34:10):</strong> Basically they said, man, people are just so much friendlier here. They make better eye contact, they engage more. It&#8217;s just so much more welcoming than it was in St. Louis, even though they were actually in a sense connected because the husband was from there.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">So when even people who lived in St. Louis and liked it notice a difference when they leave, that is a killer when you&#8217;re already struggling demographically. I had a guy who owned a business in Cleveland who said to me one time, I learned the hard way never to recruit anyone from out of town to work for my company unless that person or their spouse is from Cleveland, because otherwise they will never stay. When that&#8217;s where you are as a place, that is just rough. I think that is one of the killers for these river cities.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (35:16):</strong> Yeah, what&#8217;s the fix for that? I don&#8217;t know what the fix is.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (35:38):</strong> I think the optimistic case for St. Louis, and I actually tweeted this a year or two ago, is that St. Louis City educational attainment is really high now. In a sense, it&#8217;s a small, highly educated city that is probably going to continue growing more educated. So I think the Pittsburgh option looks viable in St. Louis.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (36:00):</strong> And certainly great medical care. I know that the average age is getting older in St. Louis. I think within 10 years, one in four people will be over the age of 65. But we also have an Alzheimer&#8217;s research center and access to medical care, which as you get older gets more important. I do think there&#8217;s an opportunity to lean in to the medical services that are available, as the country as a whole gets older. I think St. Louis looks more attractive for that reason. So I think you&#8217;re right that with universities and medical centers, there&#8217;s an opportunity.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (36:35):</strong> Yeah, I think if America&#8217;s demographics keep on this trend, a lot of other places are going to get to where St. Louis is. And the thing to be careful of is that when you&#8217;re in a declining market, that often prompts centralization of activity and population. What happened with Japan is that once Japan&#8217;s population started falling, everybody started moving to Tokyo. It&#8217;s Tokyo and a handful of other cities where everything is concentrated, and they literally have ghost towns there.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">I don&#8217;t think it&#8217;s any accident that Indianapolis&#8217; growth really took off once the Rust Belt era and deindustrialization hit the state. Indianapolis and Columbus, Ohio have grown in large measure through drawing people out of the rest of the state as those states declined. Huge numbers of people move from Cleveland to Columbus every year.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Missouri is a little different than that. One of your challenges is that St. Louis does not draw people from rural Missouri. When I looked at the data, it&#8217;s not like there&#8217;s a massive flow into St. Louis from the rest of the state. So you don&#8217;t have that siphon bringing people in.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (37:55):</strong> There are public safety issues around that, but yes.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (38:00):</strong> And the issue we have is that we&#8217;ve now eaten our seed corn. There&#8217;s not going to be next generations of children in the towns I grew up in in rural Indiana to move to Indianapolis anymore. The cohort sizes are going to be smaller. So that pump, even Tokyo is declining now in population. That siphon is draining the water table. We can only rely on that so long.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">But I think this is the risk for St. Louis in that kind of environment. People with opportunity might avoid or flee St. Louis and go to Austin, Texas or Nashville. They go to the handful of places in America that are really still growing. That&#8217;s a threat even for Indianapolis and Columbus, Ohio. In a declining market, it&#8217;s very hard to get people to want to come to a shrinking city because the opportunity space is shrinking. St. Louis&#8217;s opportunity space has been shrinking because you&#8217;re losing corporate headquarters and your working age population is declining. That dynamic is really going to be a challenge. But within that, the city of St. Louis might end up doing okay. Again, being small actually helps it here.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (39:25):</strong> Any closing thoughts on that, David?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (39:27):</strong> Just that the part of Missouri that is definitely still growing, and that probably is attracting those young rural people who are moving to a city, is going into southwest Missouri, the Springfield-Branson area. That&#8217;s absolutely the growing part of the state. And even Kansas City is growing certainly more than St. Louis is.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (39:48):</strong> Yeah, it&#8217;s not a culturally cohesive state. Springfield and that area are definitely growing, and growing despite the fact that they have nowhere close to the urban assets of a St. Louis. It&#8217;s interesting to watch, and we&#8217;ll just have to see what happens.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (40:05):</strong> It is. I think about it a lot. I&#8217;ve been talking about this in terms of school enrollment for years and years, where you could see the biggest kindergarten cohort was after the Great Recession of 2009. You know that that&#8217;s the biggest kindergarten cohort for the last 15, 16, 17 years. We do nothing but build schools and hire teachers. We are slow to catch on to these things happening. But I think your perspective is certainly very interesting. On the question of the merger, it&#8217;s not worth the cost for whatever benefits there might be. But it still gets talked about, so I appreciate you coming and giving us your thoughts on it. Maybe we&#8217;ll have to have you back to talk about it again.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (41:02):</strong> And Aaron, I want you to come back. I want to find out how we get more roundabouts in Missouri. I love roundabouts. I go to Carmel it seems like once a year for these gigantic youth sports tournaments up at Westfield, just a little bit north of you. My kids&#8217; sports take me there. And I love the roundabouts. You cannot get enough of them.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (41:09):</strong> I&#8217;d love to talk about that. My favorite topic.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (41:24):</strong> Yeah, it&#8217;s great. We hardly ever have to stop. There are barely any stoplights or stop signs left in our city. It&#8217;s amazing. We&#8217;re one of the few growing places in America where traffic is better today than it was 20 years ago.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (41:32):</strong> They&#8217;re awesome.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (41:45):</strong> People don&#8217;t realize how good that is for air quality and everything. You just keep moving along, not stop and start. We need 100 times more roundabouts in this area.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (41:55):</strong> Are you pretending that people stop at stop signs in St. Louis? Because let&#8217;s be honest, people don&#8217;t stop at stop signs.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>David Stokes (42:00):</strong> Well, they roll them, but it&#8217;s still wrong when they roll them. Maybe all the people blowing red lights on Kings Highway at 50 miles an hour are just being environmentally conscious. I need to give them more of the benefit of the doubt, I guess.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (42:12):</strong> That&#8217;s exactly right. All right, thanks so much. I really appreciate it.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Aaron Renn (42:19):</strong> Thank you.</p>
<p>Produced by Show-Me Opportunity</p>
<p>The post <a href="https://showmeinstitute.org/article/economy/the-st-louis-city-county-merger-with-aaron-renn-and-david-stokes/">The St. Louis City-County Merger with Aaron Renn and David Stokes</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>St. Louis Demographics and the Future of the Region with Ness Sandoval</title>
		<link>https://showmeinstitute.org/article/economy/st-louis-demographics-and-the-future-of-the-region-with-ness-sandoval/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Tue, 28 Apr 2026 13:53:03 +0000</pubDate>
				<category><![CDATA[Budget and Spending]]></category>
		<category><![CDATA[Business Climate]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Education]]></category>
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					<description><![CDATA[<p>Susan Pendergrass speaks with J.S. Onésimo &#8220;Ness&#8221; Sandoval, demographer and professor in the Department of Sociology and Anthropology at Saint Louis University, about what the data says about the future [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/economy/st-louis-demographics-and-the-future-of-the-region-with-ness-sandoval/">St. Louis Demographics and the Future of the Region with Ness Sandoval</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><iframe loading="lazy" title="What the Data Says About St. Louis&#039; Future" width="640" height="360" src="https://www.youtube.com/embed/IU0QV6AvAD8?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></p>
<p>Susan Pendergrass speaks with <a href="https://jsosslu.wordpress.com/" target="_blank" rel="noopener">J.S. Onésimo &#8220;Ness&#8221; Sandoval</a>, demographer and professor in the Department of Sociology and Anthropology at Saint Louis University, about what the data says about the future of the St. Louis region. They discuss record low birth rates and what they mean for school enrollment, why St. Louis is among the top regions in the country for deaths outnumbering births, how the region compares to Pittsburgh and Cleveland, and why suburbs like Chesterfield and St. Charles are aging faster than most people realize. They also discuss the role of housing supply, school choice, crime, and domestic migration in whether St. Louis can attract and retain young families, and more.</p>
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<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><span style="text-decoration: underline;"><strong>Episode Transcript</strong></span></p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (00:00):</strong> Well, certainly not the first time we&#8217;ve spoken, Dr. Sandoval. At St. Louis University, you are such a fascinating demographer of the region, and I&#8217;ve been following your work as new census data has been released. You&#8217;ve been writing about it and creating what I think are really cool mapping tools that folks can look at to see how the St. Louis region is impacted. Thanks for coming on to talk about that. But first I want to sort of expand our view, because pretty sure that I read within the last week that the number of babies born in the United States was at an all-time low. Is that right?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (00:35):</strong> Yeah, so every year the United States will probably be breaking records. The data coming out for 2025 is a record low, and the data coming out for 2026 is even lower. The first few months of 2026, the provisional data that&#8217;s out shows even fewer. And this is what we expected. We call this a demographic shock, because in 2026, whenever you create an atmosphere of uncertainty and fear, rational people do not have children until they understand that their job is safe, there&#8217;s not a recession coming, and we&#8217;re not at war. When you create this sense of fear, young people do the rational thing and don&#8217;t have children. We saw this in 2020 with COVID. We saw this in 2008 with the Great Recession. Anytime there is uncertainty, young people will postpone births. And that&#8217;s what we&#8217;re seeing. This started in November. We started to see the decline in births, and it&#8217;s continued from November, December, January, February. And so this is what we&#8217;re going to see.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (01:51):</strong> So next year is going to be lower. And when you look at the state of Missouri, I&#8217;ve been saying this ad nauseum for years that our K-12 school enrollment is declining and will decline because of that sort of peak in 2008, just before the Great Recession. So our biggest kindergarten class was around 2012, and our kindergarten classes have by and large declined ever since. And so those kids are moving through the system. You can project that we will just have fewer and fewer kids enrolled in our K-12 system in the state of Missouri.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (02:06):</strong> No, we peaked in 2008.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (02:11):</strong> By and large declined ever since 2012. And so those kids are moving through the system. So you can project that we will just have fewer and fewer kids enrolled in our K-12 system in the state of Missouri.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (02:24):</strong> Yeah, this is true, and we have a pretty good chart. We make these for every city. We&#8217;re replacing very large cohorts of children who were born. I have a son who was born in 2007, just before the recession. That cohort that graduated in St. Louis was 40,000 students. The baby birth cohort is now 27,000 students. So that&#8217;s just in that one year a 13,000 decline. And it&#8217;s going to decline every year for the next 15 to 18 years, because we don&#8217;t know what the bottom is yet. It has not reached the bottom.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (03:01):</strong> Right. People say where are the kids going? I&#8217;m like, they&#8217;re not going anywhere. They weren&#8217;t born. The St. Louis region, like Clayton is declining, Ladue was, I mean, all of these school districts, I think almost everyone in the county has fewer kids today than they had 10 years ago.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (03:07):</strong> They weren&#8217;t born. Yes, and it&#8217;s not just St. Louis County. St. Charles County is experiencing this. There are some parts that are growing, in the Wentzville area, O&#8217;Fallon, but if you look at the old St. Charles areas, they&#8217;re experiencing decline. Families with children are declining in those areas. We had made an interactive map that I think shocked a lot of people, of seniors outnumbering youth. People could not comprehend this. Like, my gosh, this is not 2000 where youth were dominating these neighborhoods. I live out here in Chesterfield. The entire Route 64 corridor is senior citizens dominating the youth in Chesterfield. People are shocked. More seniors lived in Chesterfield than youth in 2010, and that&#8217;s only grown since. This is happening throughout West County.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (04:14):</strong> Wow. And your maps actually go down to the zip code, right? You have very granular data.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (04:27):</strong> Across into Illinois, yes. The only way you can turn this around is young people from across the United States deciding that they want to make St. Louis their home, have a family there, create a business there. This is what I promote. We have to get younger. We really should have a preferential option for families with children. And that&#8217;s a hard message for a lot of people because they&#8217;re like, wait a minute, we grew from 1970 to 2020. And I&#8217;m like, but all of that growth was driven by babies born. Over 1.8 million babies were born. And I tell people, just do the math. 27,000 babies per year times 50. That&#8217;s the back of the envelope for what&#8217;s coming over the next 50 years. Unfortunately, that&#8217;s not what&#8217;s going to come. It&#8217;s going to be a lot lower than that. People are starting to get it. We&#8217;re not going to have 1.8 million babies born over the next 50 years.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (05:33):</strong> Yeah, and I think about things like individual school systems building new elementary schools when there have got to be a lot of buildings that are empty. And also, won&#8217;t there be more competition for public resources between children and older people?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (05:49):</strong> Yeah. At my previous job at Northwestern, we did a project on this in one of the suburbs because we were studying seniors. There was a debate about how to spend public money. Was it for transit for seniors or transit for children? This was 2006, and this was the debate happening in Chicago. How do you provide paratransit for senior citizens when that number is increasing? We&#8217;re just having this discussion because St. Louis is leading. We&#8217;re in the top three of regions. Pittsburgh leads the country, Cleveland is second, and St. Louis is third, tied with Tampa. More people dying than babies born. We simply don&#8217;t have the number of babies born for the size of our population. And it&#8217;s because we&#8217;re a very old region. We&#8217;re the ninth oldest region in the country.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (06:58):</strong> Yeah, I mean, we used to have 800,000 people in the city of St. Louis, right? And now we&#8217;re 280,000 or something.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (07:05):</strong> Yeah, and I was just looking at the numbers. It is very possible within two years that Kansas City will have more babies born in absolute numbers than the St. Louis metro region. That&#8217;s how few babies. I&#8217;m talking about the region. Indianapolis is about 700 babies behind St. Louis. Nashville is about 800 babies behind. All of these smaller regions are having lots of babies, and young people are moving there. Your future depends on the number of children born. And when you look at population projections, I kind of know what this looks like. When you fall below Kansas City in number of births, at some point Kansas City will be larger than St. Louis. We can project this out. We&#8217;re talking absolute births, not birth rates. We had lots of babies born 10 years ago. We were fine 10 years ago.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (08:09):</strong> Yeah, wow.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (08:29):</strong> We can go back and talk about what happened since 2010.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (08:35):</strong> Yeah, please. I&#8217;m curious what did happen. I know you call it the death spiral when there&#8217;s more deaths than births, but how did we get into this?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (08:41):</strong> So I moved here for the Great Recession. I moved in 2008 to start my job at SLU. And there was hope when I got here. There was some positive momentum happening. I think the region took it for granted that it didn&#8217;t have to do anything. We just have to be St. Louis. We don&#8217;t have to do anything. Unfortunately, Nashville came on the scene. Then you started to see regions change. Regions thinking we need to get young. And St. Louis absolutely did nothing. Since I&#8217;ve lived here, there&#8217;s been a lot of resistance to economic development in the region. Nashville, I think it was the popularity of being young, being pro-development. I went to Nashville to actually look at it, like why are young people there? And I went to Vanderbilt. And I saw this really interesting integration between the city and Vanderbilt University. That does not exist here in St. Louis. Making it a vibrant, cohesive, urban experience.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (09:47):</strong> Yeah. Right. Now you step off campus at SLU and you&#8217;re in an area you don&#8217;t want to walk at night.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (10:00):</strong> Yeah, and even if it was WashU, right. And then you can talk about the Loop. It never recovered from COVID, traffic is down. I think the region has really struggled to attract young people to stay here and live here.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (10:13):</strong> Well, we&#8217;ve been looking into the issue of crime in St. Louis quite a bit, and I know it&#8217;s down and everyone&#8217;s celebrating that fact, but I&#8217;m not sure when you survey people and ask how they feel walking alone at night, that it&#8217;s changed all that much. Even if the number of murders are down, I don&#8217;t know that people feel safer walking alone at night, and that&#8217;s got to have an impact on whether you want to stay in St. Louis after you have kids.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (10:47):</strong> Yeah. I think in the city you move out to the suburbs. The challenge is they work and you live for affordability. So many suburbs are against new development, even though they can develop. We see these debates in Chesterfield, that debate in Creve Coeur, several debates out in St. Charles. They don&#8217;t even talk about Jefferson County, because they&#8217;re celebrating voting down housing. My point is if you don&#8217;t want to build housing, Indianapolis is going to build it. Columbus is going to build it. Nashville is building it. We are no longer in the top 50 in new housing permits in the country. We&#8217;re 58th.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (11:34):</strong> Why though? Is it because there&#8217;s not demand, or is supply being constrained?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (11:42):</strong> Supply is being constrained. Part of it is, when I speak to people, they say it&#8217;s going to hurt my home values. People want supply down. But you understand there&#8217;s a consequence to this. And home values are always good in St. Louis. But again, we always say there&#8217;s a city that we can look to that&#8217;s our future, and that&#8217;s Pittsburgh. If you really study Pittsburgh and look at it, you&#8217;re like, wow, there&#8217;s a lot of things we can learn as a city, and say this is not what we want to be. Pittsburgh leads the country in discounted rates on home sales. When people offer their price, most people do not get the price that they want. It&#8217;s a significant discount because the demand&#8217;s not there. We are about 20 years behind Pittsburgh.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (12:25):</strong> Wow. I think a lot, in what I do, about the educational offerings in the region. Before we were recording we were talking about Texas. Texas, number one, doesn&#8217;t have an income tax, and also you can pick your child&#8217;s school from the get-go. They have hundreds, if not thousands of charter schools. And now they have a private school choice program that I think 250,000 families apply to. And Missouri has an extremely limited private school choice program, maybe 6,000 or 7,000 kids in the state, and not even the ability within St. Louis County to go outside of these tiny little districts. You can&#8217;t even go from Clayton to Brentwood. People really feel strongly about this and fight the idea of opening up the county and letting kids go within the county to any school district, and then the legislature fights it every year. And I&#8217;m like, we are just becoming less and less competitive.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (13:36):</strong> I don&#8217;t think people understand. I do a lot of work with schools now. We&#8217;re going to lose at a minimum 100,000 children under 15 by 2045. This loss is built into the system based on 27,000 births right now. The numbers are starting to show up in kindergarten. We have a smaller kindergarten class, a smaller first grade class coming in. And so a lot of schools are like, wait a minute, what&#8217;s going on? This is just starting. You have another 20 years, because we have these large cohorts that were still born after the Great Recession that are going to be replaced by smaller cohorts coming in. And there is no significant migration of children coming into the region.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (14:28):</strong> So there are going to be difficult staffing decisions, and people don&#8217;t want to hear it. Like, we cannot continue to hire more teachers.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (14:32):</strong> You have to close schools. You have to close schools, have to merge schools. I&#8217;m doing some work in Parkway. People should not be surprised. Parkway is having meetings this month about what Parkway looks like going forward, and people are discussing consolidation. Rockwood is talking about a 15% decline in 10 years. Go out another 10 years, Rockwood will be talking about school consolidation. St. Charles will be talking about school consolidation in the old St. Charles area, the city of St. Charles. This is coming. Everybody focuses on the city and says the city needs to close schools. But you will see a discussion, I think, between Clayton and Brentwood.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (15:06):</strong> For sure. Clayton had 2,500 kids. Now they&#8217;ve got closer to 2,000. I mean, that&#8217;s teachers, that&#8217;s buildings. And I know in Indianapolis, I&#8217;ve talked to a superintendent in that area. All parents can pick a public school. And he was like, I had some under-enrolled elementary schools and it was great for me because I put a language immersion program in one to bring parents in. I think the resistance to this idea is all about not wanting kids who aren&#8217;t paying property taxes, but I think it&#8217;s going to flip. Then you&#8217;ll be like, we&#8217;ve got to fill these seats. We&#8217;re paying the same teacher for 18 seats that we could pay for 22 kids. At some point they&#8217;re going to have to start laying off teachers. So I think there are some very difficult decisions ahead that you can see now, and there are things that could be done now, like at least not filling open positions.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (16:16):</strong> I think universities are seeing this, because many of them are relying on tuition and those dollars are not coming in. A smart university has to make cuts because it doesn&#8217;t get any better next year or the following year. There will be fewer students coming in. So universities that want to survive are making necessary cuts to survive.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (16:45):</strong> Again, we don&#8217;t know what the bottom of the birth decline looks like. We just happen to live in a state and a region that has seen a significant decline in children. I keep saying we&#8217;re modeling the future for people, either as a good or bad thing. They&#8217;re like, we want to be like St. Louis, or we don&#8217;t want to do what they did.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (17:13):</strong> I think a lot of people are starting to understand this. It&#8217;s like, we&#8217;re letting our children go, and we&#8217;re not doing a very good job of trying to keep them here. When you had 1.8 million births, you had enough to let children leave your region, leave the state. You don&#8217;t have that luxury anymore. Our models show the region should have anywhere between 1.3 million to a million births coming in over the next 50 years. We hope it&#8217;s not a million births, because that means you have an 800,000 decline in your population under 50. Or it&#8217;s 1.3 million births, which is only a 500,000 decline. But that&#8217;s coming.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (17:43):</strong> How does immigration factor into it? Because I remember the last time we talked, you said that St. Louis is not very immigration friendly. And of course, the current national environment is not very immigration friendly.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (18:03):</strong> Missouri and St. Louis cannot rely on immigration to save it. It&#8217;s not a state that immigrants are going to come to in large numbers. They&#8217;re going to go to Florida. Miami leads the country. Even though domestic migration has people leaving, international migrants are going there as their top destination. They&#8217;re going to Philadelphia, they&#8217;re going to New York. We get immigrants who come here, but it&#8217;s a very small number, like 6,000 a year. We&#8217;re not even in the top tier as a top 25 metropolitan region. And Missouri is not either. So Missouri has to rely on domestic migration.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">The data will show that probably for the decade, there will be more people dying than babies born in Missouri. Missouri will start to have from a natural perspective more people dying than babies born. And 91 counties across the whole state will have more people dying than babies born. So Missouri will become dependent for growth on domestic migration.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (19:29):</strong> Or do we just accept that we&#8217;re not going to grow anymore? What&#8217;s the impact of that?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (19:33):</strong> Again, it&#8217;s going to be specific. I do think the Springfield area is going to grow, the Branson area, there&#8217;s growth. Part of this is retirement, I think. Kansas City is growing.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (19:42):</strong> Why Kansas City more than St. Louis? What&#8217;s attracting younger people to Kansas City that is not happening here?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (19:49):</strong> Kansas City is a younger region. St. Louis is a fairly old region. Kansas City is a lot younger and it has a large Latino population, and that&#8217;s the largest growing population in the country, birth-rate wise. Latinos are now the second largest population in Kansas City. They surpassed the Black population, which I think even shocked me, because we thought we knew this was coming, but we thought this was going to be post-2030. The fact that it already happened shows just how many Latinos are moving there. And then you have an exodus of Black residents leaving Kansas City as well as St. Louis. I always tell people, when you have young Black families leave or young Black adults leave, those children ultimately leave too. And so that&#8217;s part of the story.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (20:48):</strong> When young people leave, the children that traditionally were born to those young people are now being born in Charlotte, Atlanta, Houston. The number one challenge for St. Louis and the state is the decline in births. If that doesn&#8217;t change, then you&#8217;re going to see that decline start to show up in five to ten years in our schools.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (21:17):</strong> And the private schools will simply go out of business because that&#8217;s dictated by the private market. Or they&#8217;ll do what many of the Catholic schools are doing. They think, we&#8217;re going to have middle school now, or we&#8217;re going to be K through 12. But then what about the parochial schools? There&#8217;s no growth. They&#8217;re just taking children out of other schools and putting them in their school system.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (21:45):</strong> And so again, I go back to Pittsburgh. Pittsburgh is about how do we manage population decline? The city is growing a little bit, but 100% of the growth in terms of the losses is in the suburbs. And that&#8217;s going to happen in St. Louis. When this loss starts to show up in the demographic accounting, most of the loss is going to be outside of the city of St. Louis. It&#8217;s going to be in the Chesterfield areas. It&#8217;s going to be in St. Charles.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (22:18):</strong> So what could be done from a policy perspective? Chesterfield is trying to have this arts and entertainment district. They put in Topgolf and the concert venues. They&#8217;re trying to attract younger people there. Is it working?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (22:34):</strong> It&#8217;s not working. I mean, they have the same slight increase. I just posted this yesterday. People are shocked. The growth is in non-family households in Chesterfield. If you look at the new development, I call it downtown West Chesterfield. These are million-dollar homes, very expensive. Very few families with kids are there. These are empty nesters or dual-income, no-kids households. It&#8217;s very expensive for young families to get into Chesterfield today, when your entry-level home that was $170,000 in 1980 is $600,000 today. These are the challenges.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (23:23):</strong> So build more starter homes?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (23:32):</strong> You need more entry-level homes. I&#8217;m not even going to use the word affordable. You need attainable homes for two incomes. And they can be built. But what I&#8217;ve heard is that a lot of cities do not want these homes. They want the $600,000 to $700,000 homes because of taxes. And so there is this tension there.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (23:56):</strong> Parkway and Rockwood are going to look very different in 30 years. They were very attractive amenities for young families with children. But I look at the data, and my kids are in Parkway. These schools are under-enrolled. You go and objectively look at the classrooms, you&#8217;re like, there should be 30 kids in these rooms and there&#8217;s 15. It&#8217;s great for me as a parent. I&#8217;m glad there&#8217;s only 15 kids for my fourth grader. One of the classes in Parkway Central, in the middle school, in his math class, there are eight students. I love it as a parent, but as someone who looks at the data, this is not sustainable.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (24:45):</strong> Yeah, lots of one-on-one. Yeah. I&#8217;m just trying to figure out what would cause a renaissance in St. Louis. It doesn&#8217;t feel super safe. It has some great amenities and a great food scene and now MLS soccer. What would it take? Well, number one, you do have the school system problem where the St. Louis public school system is kind of a dumpster fire. So people want to move out if they have small children.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (25:32):</strong> Yeah, the decision to move out is made within the first three years once the baby&#8217;s born. We can see that in the data. When we moved from Chicago, because we lived in the city of Chicago, we wanted to live in the city of St. Louis. I think most people who move from Philadelphia or Boston are living in the city. We thought the city of St. Louis would be offering the same amenities. Because of the Great Recession, I came a year before my family, and we soon realized the city of St. Louis was not the city of Chicago in terms of amenities. And so we ended up in St. Charles. And I think most people make that same decision.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (26:25):</strong> Yeah, my husband and I moved right into the city.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (26:27):</strong> We see it in the data. People are moving into the city from Philadelphia, from Boston, from Houston. But then, like me, if you have children and you&#8217;re not going to pay for private school, because that&#8217;s a tax in many ways, they&#8217;re going to exit out. And then with the Catholic schools closing in the city, there are going to be fewer options.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (26:50):</strong> Yeah. But the public transportation is no good. I mean, there are things.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (26:57):</strong> And it&#8217;s interesting. We did see a kind of experiment during COVID. When COVID happened, the Catholic schools in the county opened up. A lot of families wanted their children in face-to-face instruction. So they left the city. They did not stay. So we had kind of a quasi-experimental design there. Education was very important.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (27:26):</strong> A lot of people left the city because of that and never came back. And that started before COVID. But I think this idea of school choice is something where parents want it. We have enough anecdotal evidence. When Normandy closed, the school system closed, families moved to Normandy to get their kids into Francis Howell. There&#8217;s enough evidence to show that families want to make these decisions. The question would be, would Parkway accept all of the students that would want to be in Parkway?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (27:56):</strong> Yeah, the law would have to say that they would have to. You couldn&#8217;t let them pick and choose.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (28:15):</strong> Yeah. And so the question is, you have a lot of people who would love to be in Parkway. I gave a talk at Marquette and I was shocked because a good percentage of the students there were saying those public school students, but the parents had left to get out to West County for their children. So the question is, do you just let the private market dictate this? Those who can leave the city will ultimately leave the city and get out to West County.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (28:50):</strong> There&#8217;s movement out. And I think in terms of domestic migration, to get parents to move in, you can go to our northern border, Iowa. The state pays for private school tuition. Oklahoma to the south, the state pays for private school tuition. Kansas, you can go to any public school in the state. It&#8217;s 100% open enrollment. Arkansas is one of the strongest for school choice, both public and private. I think we&#8217;re going to be surrounded by it and just have our arms folded across our chest. Because Parkway doesn&#8217;t want all those kids coming, or Rockwood doesn&#8217;t want all those kids coming. Parents are simply going to move across the border to a state where they can pick any public or private school. I&#8217;ve talked to some parents who have reached out to say, I&#8217;m thinking about moving to the region, is it true I can&#8217;t pick a school? And I&#8217;m like, it is true. You cannot pick a school. And I think they&#8217;re like, forget it. I&#8217;m not going to make this big decision on where to buy a house. I think if we don&#8217;t do things that are family friendly, and if we don&#8217;t get crime under control in some way, or have a 911 system where when you call somebody responds, I think it&#8217;s interesting that St. Louis will become this example for the nation of what a dying city looks like.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (30:08):</strong> We have three examples today: Pittsburgh, Cleveland, and St. Louis. Tampa is kind of unique because it is a destination for retirees. The Wall Street Journal has an article today on Cleveland, the renaissance of downtown Cleveland. And Detroit too, it&#8217;s a renaissance.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (30:29):</strong> Wow. What about Detroit now? So St. Louis hasn&#8217;t figured out our renaissance yet.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (30:49):</strong> And to be honest with you, I think it will be hard. I&#8217;m not pro anything, but I find this whole debate about the city and county interesting. I&#8217;m not from here, so I don&#8217;t have this history of growing up here. But I think objectively, when I look at the budget of the city of St. Louis and compare it to Pittsburgh, Pittsburgh is a little bit bigger. It&#8217;s got 25,000 more people. But their budget is significantly smaller than St. Louis City&#8217;s budget. Part of me wonders, because the city is both a city and a county, it doesn&#8217;t have enough people or revenue to operate as both. And this is what&#8217;s helping Pittsburgh out. This is what&#8217;s helping Cleveland out, because that county revenue is spread among more taxpayers. In St. Louis City, the county functions are spread among a dwindling number of taxpayers. The city probably cannot be a county anymore. There&#8217;s just too few taxpayers to provide both city services and county services.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (32:08):</strong> I looked at these budgets and I&#8217;m like, my gosh, why is St. Louis&#8217;s budget so much more? I&#8217;m talking not a little bit more, a lot more than Pittsburgh&#8217;s budget. Pittsburgh is having trouble. And I don&#8217;t see the long-term fiscal situation turning around for the city because it&#8217;s got to provide all of these services. The tax base is going to decline. The next three years are probably going to see population loss in the city. The numbers just came out in March, but we&#8217;ll get the numbers in May. It&#8217;ll probably lead the country again in population decline for large cities.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (32:58):</strong> Are we still a top 20 city? We&#8217;re number one in population decline, but what about in population size?</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (33:01):</strong> We&#8217;re number one in decline. Last year, St. Louis City was number one. We&#8217;re declining. We&#8217;re not in the top 20 yet, but we&#8217;re very close. If we go back to 2020, we&#8217;re smaller than we were in 2020. The only reason we&#8217;re not number one in decline is because we had so many immigrants that offset our domestic migration loss. But this will be an interesting 2030 census, because it&#8217;ll be the first time the region will go into a census with more people dying than babies born. In the last census, we had about 75,000 natural growth. We&#8217;re looking at about 25,000 to 30,000 natural decline going into this census without any domestic migration. I tell people that this story is just starting. We have 74 years of the century left.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (34:18):</strong> I&#8217;m just trying to get people to move from the mindset that this is 2010 St. Louis. You don&#8217;t have 36,000 births anymore. You have 27,000 and it&#8217;s declining, one of the fastest declines in the country. Because of it, we&#8217;re aging very fast, and so we have to shift. The region has to make a choice that we start to organize our economy around senior citizens. There&#8217;s lots of money to be made from senior citizens, but we will never be viewed as Nashville or Austin as a place for young people.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (34:52):</strong> Absolutely. That Route 64 corridor is just going to be all retirement homes.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (35:04):</strong> We won&#8217;t be talking about single family homes anymore. We&#8217;ll be talking about senior housing. We&#8217;ll be talking about a workforce that&#8217;s going to work with seniors instead of a workforce for children. And there is money to be made in that economy. I&#8217;m not saying that this is a bad thing. But again, we can look at other parts of the country where this transition has happened. Local government spending is being consumed by senior citizens, the healthcare of senior citizens, the paratransit of seniors. Seniors will lose their ability to drive. That cost typically gets covered by local governments. And so you will not be providing buses for children. You&#8217;ll be providing paratransit to get seniors to their doctors. Churches will have to think about being accessible to seniors. I go to Church of the Ascension and they are not prepared. At Easter, one of the Masses, one-third of this section was senior citizens in wheelchairs. The churches are simply not prepared for a parish that&#8217;s going to be 50% of the population at 70 years old and older. Restaurants have to think about this.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (36:30):</strong> Wow, that&#8217;s crazy. Well, interesting stuff. I hope you&#8217;ll come back and talk about this more. And certainly I&#8217;m very interested in reading everything that you write about what St. Louis can do. We need to figure out a renaissance.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (36:51):</strong> We&#8217;ve got to get younger. The kids are giving us a try. They&#8217;re coming to school, they&#8217;re coming here because they have hopes. We just have not responded the way we need to. A lot of companies are starting to recognize this. I talked to the mayor and said, you need to be a more proactive voice on this. But the region, this is not a city of St. Louis issue. This is a St. Charles issue, a Jefferson County issue, a Chesterfield issue. Most of the people live outside of St. Louis city. The loss we&#8217;re projecting is going to come from the suburbs. And that&#8217;s what&#8217;s happening in Pittsburgh, that&#8217;s what&#8217;s happening in Cleveland. 100% of the demographic loss is in the suburbs.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Susan Pendergrass (37:21):</strong> Yeah. Wow, that&#8217;s crazy. Well, fascinating. Thank you so much for explaining it. I don&#8217;t want to be depressed about it, but it&#8217;s not super optimistic. We&#8217;ll find a silver lining. Thanks, Dr. Sandoval.</p>
<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>Ness Sandoval (37:59):</strong> All right, thank you very much.</p>
<p>Produced by Show-Me Opportunity</p>
<p>The post <a href="https://showmeinstitute.org/article/economy/st-louis-demographics-and-the-future-of-the-region-with-ness-sandoval/">St. Louis Demographics and the Future of the Region with Ness Sandoval</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Cry, the Beloved Unincorporated Area</title>
		<link>https://showmeinstitute.org/article/municipal-policy/cry-the-beloved-unincorporated-area/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Sat, 18 Nov 2023 00:49:26 +0000</pubDate>
				<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/cry-the-beloved-unincorporated-area/</guid>

					<description><![CDATA[<p>An interesting vote took place last week in St. Louis County. A large unincorporated area in the southwest part of the county had a vote on whether or not they [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/cry-the-beloved-unincorporated-area/">Cry, the Beloved Unincorporated Area</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>An interesting vote took place last week in St. Louis County. A <a href="https://www.kmov.com/2023/11/07/manchester-annexation-both-sides-make-final-pitches-ahead-vote-that-would-annex-6600-residents/">large unincorporated area in the southwest part of the county</a> had a vote on whether or not they wished to be annexed by the city of Manchester. The overall question was fairly straightforward. Did the residents of the area want to receive local public services from Manchester instead of St. Louis County, and, if so, were they willing to pay the slightly higher taxes for it?</p>
<p>The answer by the residents of the area <a href="https://callnewspapers.com/voters-reject-manchester-citys-annexation-proposal/#:~:text=The%20bid%20to%20annex%20more,area%20and%20the%20city%20itself.">was a resounding “no.”</a> The proposal was overwhelmingly defeated in the area to be annexed, and considering they had over fifty percent voter turnout (incredible for an off-year election day like this), the desire to remain unincorporated has been made abundantly clear.</p>
<p>Living in an unincorporated area is an overlooked aspect of suburban life. Obviously, in rural areas many people live outside of cities, towns, or villages. But in the suburbs, I think we assume people live within municipalities, <a href="https://en.wikipedia.org/wiki/Champ,_Missouri">albeit sometimes very small ones</a>. However, particularly in St. Louis County, many people live in unincorporated areas and enjoy, generally speaking, the lower taxes that can come with it. In rural counties, the unincorporated areas often genuinely have less government involvement in residents’ lives<a href="https://www.lawrencecountymo.org/planning-zoning">, (e.g., no zoning, less licensing, and reduced code requirements).</a> St. Louis County has zoning and codes for its unincorporated areas, but at least the licensing requirements are indeed less (e.g., <a href="https://stlouiscountymo.gov/st-louis-county-departments/revenue/licensing/">no general businesses license</a> is required).</p>
<p>St. Louis County has by far the largest unincorporated population of any county, around 300,000. I would wager a lot of money that it is the only county with an unincorporated population of more than 100,000 people. <a href="https://showmeinstitute.org/publication/municipal-policy/city-managers-and-county-seats-differences-between-kansas-city-and-saint-louis-governments/">By comparison, the other truly large Missouri county, Jackson,</a> has a small unincorporated population of just around 25,000 or so. Jackson County is the most heavily incorporated county in the state, with 97% of the residents living in municipalities such as Kansas City.</p>
<p>Some people just want to live with one less unit of government over their lives. I can understand that. Clearly, the people of the <a href="https://www.timesnewspapers.com/webster-kirkwoodtimes/county-residents-vote-down-annexation-bid/article_108cf062-7f0a-11ee-9090-235bbb7e4875.html">unincorporated area around Manchester</a> understand it, too.</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/cry-the-beloved-unincorporated-area/">Cry, the Beloved Unincorporated Area</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Many Missourians Are Moving . . . To Missouri</title>
		<link>https://showmeinstitute.org/article/economy/many-missourians-are-moving-to-missouri/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Mon, 01 Jul 2019 10:00:00 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/many-missourians-are-moving-to-missouri/</guid>

					<description><![CDATA[<p>If you live in a rural community in Missouri and it feels like your neighbors are moving away, you might be right—but they aren’t going as far as you might [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/economy/many-missourians-are-moving-to-missouri/">Many Missourians Are Moving . . . To Missouri</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>If you live in a rural community in Missouri and it feels like your neighbors are moving away, you might be right—but they aren’t going as far as you might think. A <a href="http://www.newstribune.com/news/local/story/2019/apr/21/census-52-missouri-counties-lost-population-in-2018/775375/">recent report</a> from the Jefferson City News Tribune notes that according to the Census Bureau, at least 52 Missouri counties and St. Louis City lost population from July 2017 to July 2018. That means almost half the counties in Missouri had negative population growth.</p>
<p>But while population loss in roughly half of Missouri’s counties sounds terrible, there&#8217;s more going on here.</p>
<p>A great deal has been written about the growth of big cities across the country, but news outlets are slowly picking up on a <a href="https://www.curbed.com/2018/5/1/17306978/career-millennial-home-buying-second-city">trend</a> that shows small and middle-sized cities gaining steam with young people. Think cities like Waco, TX and Knoxville, TN as opposed to Austin, TX and Nashville, TN—cities that aren’t necessarily state population hubs but that play an important role in their regional economies.</p>
<p>In fact, it seems that young people’s attraction to big cities is often overstated. Research increasingly suggests they are equally drawn to the less-costly option of smaller cities and suburban areas. Census Bureau data show that suburban growth is <a href="https://www.upi.com/Top_News/US/2019/04/18/Medium-sized-cities-outpace-growth-in-big-metros-census-report-says/4881555540004/">outpacing</a> large city growth, with large city growth <a href="https://www.brookings.edu/blog/the-avenue/2018/05/25/early-decade-big-city-growth-continues-to-fall-off-census-shows/">tapering</a> off.</p>
<p>How is this playing out in Missouri? While most rural counties and Saint Louis City <a href="https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=PEP_2018_PEPANNRES&amp;prodType=table">saw</a> population declines, many medium-sized cities—Springfield, Columbia, and Lee’s Summit to name a few—have seen population increases according to the Census Bureau. Since Missouri’s total population only grew by a small percent, most of this population change is attributed to intrastate migration.</p>
<p>So while it is true that rural populations are dipping, it’s at least in part because of regional population consolidation in cities not far from where residents formerly lived.</p>
<p>And when you think about it, this migration trend makes a lot of sense. Small and medium-sized cities provide many employment, entrepreneurial, and social opportunities that may not always be available in rural areas, and these cities are often more affordable and community centered than big cities. While this trend isn’t great for rural counties—that is, the political subdivisions themselves—it is good for the people moving toward better economic and social prospects. As farms in rural areas become more productive and require fewer laborers, having access to city resources and opportunities will be all the more important for these residents.</p>
<p>Unfortunately, Missouri has struggled with overall population growth in recent years. During that same July 2017 to July 2018 time period mentioned above, Missouri was 29<sup>th</sup> in the nation in population growth, with a paltry 0.3% increase. This rate is consistent with the low population growth rates that we’ve seen for <a href="https://showmeinstitute.org/publication/employment-jobs/missing-million-missouris-economic-performance-moon-landing">years</a>. So, while this trend of intrastate migration is positive, we can’t forget that Missouri still struggles to attract new residents.</p>
<p>&nbsp;</p>
<p>The post <a href="https://showmeinstitute.org/article/economy/many-missourians-are-moving-to-missouri/">Many Missourians Are Moving . . . To Missouri</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Follow-up on Kansas City Population Trends</title>
		<link>https://showmeinstitute.org/article/business-climate/follow-up-on-kansas-city-population-trends/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Tue, 12 Mar 2019 10:00:00 +0000</pubDate>
				<category><![CDATA[Business Climate]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/follow-up-on-kansas-city-population-trends/</guid>

					<description><![CDATA[<p>The other day we published a post about some Brookings Institution data suggesting the Kansas City was doing well with millennials. The data was not specific to Kansas City, Missouri [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/business-climate/follow-up-on-kansas-city-population-trends/">Follow-up on Kansas City Population Trends</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>The other day we <a href="https://showmeinstitute.org/blog/employment-jobs/some-promising-numbers-about-millennials-kansas-city-maybe">published</a> a post about some Brookings Institution data suggesting the Kansas City was doing well with millennials. The data was not specific to Kansas City, Missouri but rather the entire 14-county metropolitan area. There is reason to think that outer areas such as <a href="https://showmeinstitute.org/blog/local-government/millennials-still-prefer-kansas-city-suburbs">Olathe and Overland Park are doing well attracting millennials</a>, but what about Kansas City proper? After all, the city has spent “<a href="https://youtu.be/16zcNuDIitA?t=26">hundreds of millions of dollars downtown, probably in excess of a billion</a>” to attract millennials and others. Is it working?</p>
<p>The author of the Brookings Institution study referenced above does not know about Kansas City proper, or more specifically about downtown Kansas City. <a href="https://showmeinstitute.org/blog/local-government/downtown-council%E2%80%99s-fuzzy-math">The Downtown Council</a> itself apparently can’t provide worthwhile numbers either. Trying to piece together the data requires investing a lot of time and resources going through Census data at the county level. Until someone does that in 2019, we can rely on a 2016 paper for the Show-Me Institute by Wendell Cox, “<a href="https://showmeinstitute.org/sites/default/files/20160620%20-%20Kansas%20City%20-%20Wendell%20Cox.pdf">Kansas City—Genuinely World Class</a>.”</p>
<p>In Figure 3 on page 6, Cox offers us the chart at the top of this post. As you can see, populations have not grown in the urban parts of the Kansas City but rather in the areas outside the city proper. In fact, the urban and near-in suburbs are shrinking. This is expected to continue. Cox writes:</p>
<p style="">According to the Mid-America Regional Council, population growth will continue to be concentrated in the suburban counties. Between 2010 and 2040, it is projected that approximately 45 percent of the population growth will be in Johnson County, which will make up the bulk of the 55 percent of metropolitan area growth that is projected to occur in the Kansas suburbs. The Missouri counties are projected to constitute 45 percent of the metropolitan area growth, with Cass County accounting for 18 percent and Jackson County for 11 percent (Figure 4).</p>
<p><a href="https://showmeinstitute.org/blog/subsidies/missouri%E2%80%99s-biggest-cities-spend-100-million-annually-just-give-away-money">Lots of organizations spend a lot of money</a> trying to attract people and <a href="https://showmeinstitute.org/blog/subsidies/are-kansas-city-and-saint-louis-getting-taken">jobs to Kansas City</a>. All them have an incentive to show that all that money—in many cases tax dollars—is well spent so that their budgets will be expanded. Successes seem rare and the <a href="https://showmeinstitute.org/blog/subsidies/part-five-smallness-potentially-hip-core">data aren’t promising</a>. But if city leaders are serious about attracting residents and jobs, we need to have a serious conversation about what is working and what is not.</p>
<p>The post <a href="https://showmeinstitute.org/article/business-climate/follow-up-on-kansas-city-population-trends/">Follow-up on Kansas City Population Trends</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Kansas City and St. Louis Battling National Trends</title>
		<link>https://showmeinstitute.org/article/municipal-policy/kansas-city-and-st-louis-battling-national-trends/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Fri, 01 Feb 2019 12:00:00 +0000</pubDate>
				<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/kansas-city-and-st-louis-battling-national-trends/</guid>

					<description><![CDATA[<p>From costly bad bets subsidizing the development of Kansas City’s Power &#38; Light District to promoting the St. Louis Ballpark Village at the expense of businesses already in the area, [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/kansas-city-and-st-louis-battling-national-trends/">Kansas City and St. Louis Battling National Trends</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>From costly bad bets subsidizing the development of Kansas City’s Power &amp; Light District to promoting the St. Louis Ballpark Village at the expense of businesses already in the area, city leaders are eager to combat urban flight to the suburbs.</p>
<p>But urban decline isn’t unique to Missouri. People all over the United States are voting for suburbs and exurbs with their feet. Giving tax dollars to a few more bars and restaurants won’t change that.</p>
<p>In their paper, “<a href="https://opportunityurbanism.org/wp-content/uploads/2019/01/Toward-More-Equitable-Urban-Growth.pdf">Beyond Gentrification</a>,” researchers Joel Kotkin and Wendell Cox lay out the case that:</p>
<p style="">The spurt of urban core growth that occurred immediately after the housing bust was short lived. The preponderance of metropolitan growth has returned to the suburbs and exurbs, as had been the case at least since the late 1940s.</p>
<p>Kotkin and Cox make their case with census data: Suburbs are growing much faster than urban areas. Claims by urbanists such as Richard Florida that “creative class” millennials would come to cities and stay were wrong, as <a href="https://showmeinstitute.org/blog/local-government/kansas-city%E2%80%99s-development-guru-admits-he-was-wrong">Florida himself admits</a>. Unfortunately, cities like Kansas City and St. Louis spent <a href="https://youtu.be/16zcNuDIitA?t=26">billions</a> of dollars exacerbating the problems of gentrification through subsidies, and continue to do so, chasing a myth.</p>
<p><img decoding="async" src="https://showmeinstitute.org/wp-content/uploads/2025/09/Feb01.png" alt="Population increase breakdown" title="Population increase breakdown" style=""/></p>
<p>If city leaders only understood that they are swimming against a nationwide current, they might be a bit more circumspect in their distribution of taxpayer dollars. But whether it’s misplaced faith in the promises of urban developers or the <a href="https://showmeinstitute.org/publication/subsidies/tif-tat-kansas-city">allure of campaign contributions from those same companies</a>, something is compelling policymakers to invest taxpayer dollars in projects that benefit the developers at the expense of the communities where they are undertaken. Meanwhile, organizations such as the Downtown Council in Kansas City vacuum up tax dollars and spit out <a href="https://showmeinstitute.org/blog/local-government/downtown-council%E2%80%99s-fuzzy-math">absurd population growth claims</a>.</p>
<p>Kotkin and Cox point out what any close observer of Missouri’s urban politics already knows:</p>
<p style="">It seems clear that gentrification has not benefited the poor and may well have harmed them by spiking housing prices and, perhaps less obviously, restructuring urban economies in ways that hurt blue collar workers. Reporters and politicians might swoon over the latest “hip” urban manifestation, but the poverty rate is still two-thirds higher in urban cores than in the suburbs.</p>
<p><a href="https://opportunityurbanism.org/wp-content/uploads/2019/01/Toward-More-Equitable-Urban-Growth.pdf">Beyond Gentrification</a> then focuses on three cities—Chicago, Dallas, and Los Angeles—to flesh out what is happening in cities across the country. These things are happening in Kansas City and St. Louis, too. And no convention hotel, trolley, or new stadium will turn this around. We know, because other cities are pinning their hopes to developments like these, and it isn’t working. <a href="https://showmeinstitute.org/blog/local-government/let-kansas-city-be-kansas-city">It won’t work for us, either</a>.</p>
<p>City leaders across Missouri need to understand their cities’ competitive advantages and promote them. (The Show-Me Institute has already catalogued some for both <a href="https://showmeinstitute.org/file/3570/download?token=B9JZ-wp7">Kansas City</a> and <a href="https://showmeinstitute.org/file/1389/download?token=gSFG3kVY">St. Louis</a>.) They need to deliver on infrastructure, public safety, and basic services efficiently and effectively. And they need to resist diverting tax dollars in pursuit of urban development that often does more harm than good to the surrounding communities.</p>
<p>&nbsp;</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/kansas-city-and-st-louis-battling-national-trends/">Kansas City and St. Louis Battling National Trends</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Millennials *Still* Prefer the Kansas City Suburbs</title>
		<link>https://showmeinstitute.org/article/municipal-policy/millennials-still-prefer-the-kansas-city-suburbs/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Wed, 27 Jun 2018 10:00:00 +0000</pubDate>
				<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/millennials-still-prefer-the-kansas-city-suburbs/</guid>

					<description><![CDATA[<p>For years, census data demonstrated that people are eschewing urban settings for the suburbs. Then, for a while, some urbanist pied pipers told us that if we only subsidized amenities [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/millennials-still-prefer-the-kansas-city-suburbs/">Millennials *Still* Prefer the Kansas City Suburbs</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>For years, census data demonstrated that people are eschewing urban settings for the suburbs. Then, for a while, some urbanist pied pipers told us that if we <a href="https://showmeinstitute.org/blog/local-government/kansas-city-embraces-baristanomics">only subsidized amenities popular with the so-called creative class, the millennials would return</a> to the cities. In a twist, we paid the pipers handsomely and the children marched out of town anyway.</p>
<p><a href="https://showmeinstitute.org/blog/local-government/kansas-city-millennial-magnet">We’ve argued this basic fact for years,</a> and some of the better-known pipers have even <a href="https://showmeinstitute.org/blog/local-government/kansas-city%E2%80%99s-development-guru-admits-he-was-wrong">changed their tune</a> (but not without <a href="https://showmeinstitute.org/blog/subsidies/are-kansas-city-and-saint-louis-getting-taken">charging the townspeople</a> nonetheless). According to <a href="https://smartasset.com/mortgage/where-are-millennials-moving-2018-edition">a recent study published by SmartAsset</a> based on Pew Research data, Kansas City, Missouri, is not in the top 25 destinations for millennials. Overland Park, Kansas, ranked 14th.</p>
<p>More noteworthy, SmartAsset previously <a href="https://smartasset.com/mortgage/where-are-millennials-buying-homes-2018-edition">released a study</a> indicating that two Kansas City suburbs ranked in the top 25 places <em>in the United States</em> where millennials are buying homes. Olathe, KS ranked first (!) and Overland Park 11th in the entire country. Kansas City, Missouri—despite our entertainment district, Sprint Center, streetcar, and subsidized corporate headquarters and high-rise luxury apartment buildings—did not appear anywhere in the top 25.</p>
<p>None of this should be surprising. We know that <a href="https://showmeinstitute.org/blog/subsidies/what-kansas-city-millennials-want">millennials are looking for exactly what previous generations</a> wanted: homes in the suburbs, cars, and good schools. Yet Kansas City leaders persist in <a href="https://showmeinstitute.org/blog/local-government/downtown-council%E2%80%99s-fuzzy-math">telling us we’re a millennial magnet</a>. We aren’t.</p>
<p>There is no shortcut to growing a city; no magical policy that can reverse national demographic trends. A better investment, as Show-Me Institute analysts have argued for years, is for government’s action to be broad and neutral: keep taxes low for everyone, maintain infrastructure, deliver necessary city services, and ensure quality education. Maybe those aren’t as appealing as shiny new construction projects, but they are more successful.</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/millennials-still-prefer-the-kansas-city-suburbs/">Millennials *Still* Prefer the Kansas City Suburbs</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>What Kansas City Millennials Want</title>
		<link>https://showmeinstitute.org/article/subsidies/what-kansas-city-millennials-want/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Mon, 08 Jan 2018 12:00:00 +0000</pubDate>
				<category><![CDATA[Corporate Welfare]]></category>
		<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<category><![CDATA[Subsidies]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/what-kansas-city-millennials-want/</guid>

					<description><![CDATA[<p>KCUR published a piece on a recent study of what millennials in Kansas City actually want by way of housing amenities. Much of the conventional wisdom on these demands, the [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/subsidies/what-kansas-city-millennials-want/">What Kansas City Millennials Want</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>KCUR published a piece on a recent study of what millennials in Kansas City actually want by way of housing amenities. Much of the conventional wisdom on these demands, the piece noted, is generated from coastal cities with much higher population density and may not apply here.&nbsp; <a href="http://kcur.org/post/housing-study-kansas-city-millennials-want-covered-parking-not-tanning-beds#stream/0">According to the piece</a>,</p>
<p style=""><em>[Highline Partners representative Brett] Posten says conventional wisdom says millennials want to live in lofts downtown, but most of the [Kansas City] millennials that Highline talked to said they eventually planned to move to the suburbs, just like their parents did. While they enjoyed touring pristine fitness centers with steaming saunas and heated pools, Posten says, millennials put a higher value on open floor plans, in-unit washers and dryers and secure, covered parking.</em></p>
<p style=""><em>That&#8217;s because Kansas City millennials aren’t actually ditching their cars. Though many said they’d like public transportation to be more reliable, less than 5 percent are car-free.</em></p>
<p>This is welcome research and should be instructive to city leaders who lard development subsidies on high rise projects and downtown streetcars thinking they are building for the future. They aren’t. &nbsp;In fact, the rush to develop in Kansas City may be based on research conducted elsewhere. <a href="http://www.kansascity.com/article192831699.html"><em>The Kansas City Star</em></a> quoted Posten as saying,</p>
<p style=""><em>We think developers are making decisions based on reading about millennials in the national press. The demographic in Kansas City is distinctly different.</em></p>
<p>Therein lies the problem of economic development in Kansas City: trying too hard to be like other cities and often joining the race too late. Convention hotels, luxury high rises, airport terminals and streetcars are little more than municipal me-tooism, rather than reflecting on Kansas City’s own <a href="https://showmeinstitute.org/sites/default/files/20160620%20-%20Kansas%20City%20-%20Wendell%20Cox.pdf">unique competitive advantages</a>.</p>
<p>Instead of trying to predict future market demands and subsidizing them—in the same way every other city has done before us—Kansas City leaders should focus on delivering basic services effectively and efficiently.</p>
<p>The post <a href="https://showmeinstitute.org/article/subsidies/what-kansas-city-millennials-want/">What Kansas City Millennials Want</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Working in Kansas City: The Rise of Johnson County</title>
		<link>https://showmeinstitute.org/article/business-climate/working-in-kansas-city-the-rise-of-johnson-county/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Tue, 01 Mar 2016 12:00:00 +0000</pubDate>
				<category><![CDATA[Business Climate]]></category>
		<category><![CDATA[Economy]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/working-in-kansas-city-the-rise-of-johnson-county/</guid>

					<description><![CDATA[<p>Living in a quaint, leafy suburb and commuting to a bustling downtown for work is an enduring image of American life. The image is the unacknowledged philosophical backbone of regional [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/business-climate/working-in-kansas-city-the-rise-of-johnson-county/">Working in Kansas City: The Rise of Johnson County</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>Living in a quaint, leafy suburb and <a href="https://www.youtube.com/watch?v=qvjMm5TPNEA">commuting to a bustling downtown for work</a> is an enduring image of American life. The image is the unacknowledged philosophical backbone of regional planning, as civic leaders <a href="http://media.publicbroadcasting.net/kcur/newsroom/images/3309740.jpg">promote radial transportation networks</a> and suburban towns regulate out construction that <a href="http://www.saveourvillagelo.com/">offends &ldquo;village&rdquo; atmospheres</a>. The only problem is that these efforts are increasingly detached from reality in places like Kansas City, where the idea of a central city and bedroom suburbs is, at best, nostalgic.</p>
<p>For instance, <a href="https://www.census.gov/population/www/cen2000/commuting/index.html">if we go back to 1990</a>, Jackson County, which contains the Kansas City core, contained more than half of all employment in the Kansas City area&rsquo;s most populous counties (Jackson, Johnson, Clay, and Wyandotte). Johnson County (KS) was a distant second, with about a quarter of the region&rsquo;s employment. Johnson County could even have been considered a bedroom community, with more people commuting out of than commuting into the county.</p>
<p>Flash forward to 2013 and the situation had changed radically. While Jackson County still housed about the same number of workers as it did in 1990, Johnson County added nearly 120,000 jobs. More workers still commute from Johnson County to Jackson County than vice versa, but the gap narrowed significantly. Johnson County is also now a net importer of workers. Jackson County&rsquo;s share of employment among Kansas City&rsquo;s largest counties dropped from 52% to 44% in the period, while Johnson County&rsquo;s share reached 36%.</p>
<p>Residents in the Kansas City region are more likely than ever to work in, and not just live in, the suburbs. Unfortunately, Kansas City officials still have a tendency to channel investment to the downtown area to a degree that is disproportionate to its actual economic importance and promote transportation plans (public and otherwise) <a href="https://showmeinstitute.org/blog/transparency/streetcar-fever-it-now-or-never-expand-kansas-city-streetcar">that would be more appropriate to 1920 than to 2020.</a> The region would be better off planning for the city it has rather than an outdated image of the past.&nbsp;</p>
<p>The post <a href="https://showmeinstitute.org/article/business-climate/working-in-kansas-city-the-rise-of-johnson-county/">Working in Kansas City: The Rise of Johnson County</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Millennials Moving Out</title>
		<link>https://showmeinstitute.org/article/municipal-policy/millennials-moving-out/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Thu, 25 Feb 2016 12:00:00 +0000</pubDate>
				<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/millennials-moving-out/</guid>

					<description><![CDATA[<p>My colleague Joe Miller has written much about the idea that millennials are flocking to urban areas. This is important because, at least in Kansas City, city officials hold up [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/millennials-moving-out/">Millennials Moving Out</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>My colleague Joe Miller has written much about <a href="https://showmeinstitute.org/blog/transparency/myth-urban-millennial">the idea that millennials are flocking to urban areas</a>. This is important because, at least in Kansas City, city officials hold up the prospect of attracting millennials as the reason for their downtown spending spree on luxury apartments, hotels, and streetcars. Miller has pointed out that at best, the research on <a href="https://showmeinstitute.org/blog/local-government/millennials-prefer-suburbs-and-cars">millennials eschewing cars and preferring urban life</a> is mixed.</p>
<p>On Thursday, <a href="http://www.marketplace.org/2016/02/22/business/real-estate">American Public Media</a> broadcast a story on NPR suggesting that millennials aren&#39;t that different from previous generations at all.&nbsp;</p>
<div style="">But while we often think of millennials as a generation living in gentrifying neighborhoods in urban centers, 49 percent of millennial homebuyers are in fact moving to the suburbs, according to the [National Association of Realtors]. They are moving out of the city and away from the urban living culture with which they are closely associated.</div>
<div>&nbsp;</div>
<div>Furthermore, the degree to which they ever diverged from previous generations&#39; behaviors was a function of the economy, not some inherent difference in their makeup:</div>
<div>&nbsp;</div>
<div style="">Part of the reason for that trend may be that some millennials waited longer to purchase their first homes, because of the soured economy, and may already have one small child and a second on the way. For those who themselves grew up in the suburbs and still have family there, [Chicago realtor Tommy] Choi said the decision to buy in the suburbs is an easier one. They often move back near their childhood neighborhoods&#8230;</div>
<div style="">&nbsp;</div>
<div style="">&quot;[Millennials] are growing up,&quot; said [NAR managing director Jessica]&nbsp;Lautz. And they are following in much of the same patterns of previous generations. &quot;They are becoming homebuyers. They are saving. They are getting married. They are having kids. Much like all of us have done in past generations.&quot;</div>
<div>&nbsp;</div>
<div>If Kansas City wants to grow its population, it needs to be a more attractive place to live and work for people of every age and race. This means focusing on spending efficiently on basic city services such as infrastructure, neighborhoods, and schools rather than diverting funds to big projects and praying for miracles.</div>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/millennials-moving-out/">Millennials Moving Out</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Millennials Prefer Suburbs . . . and Cars</title>
		<link>https://showmeinstitute.org/article/municipal-policy/millennials-prefer-suburbs-and-cars/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Sat, 09 May 2015 02:00:56 +0000</pubDate>
				<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/millennials-prefer-suburbs-and-cars/</guid>

					<description><![CDATA[<p>If you live in Kansas City, you&#8217;ve doubtlessly heard breathless paeans to millennials from city leaders and how we must spend public money to attract them. From entertainment districts to apartment [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/millennials-prefer-suburbs-and-cars/">Millennials Prefer Suburbs . . . and Cars</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>If you live in Kansas City, you&#8217;ve doubtlessly heard breathless paeans to millennials from city leaders and how we must spend public money to attract them. From entertainment districts to apartment buildings, airports to convention hotels, restaurants to streetcars, everything has been sold on the premise that we must cater to the creative class.</p>
<p>Nevermind.</p>
<p><a href="/sites/default/files/uploads/2015/05/Millenials-in-Adulthood.jpg"><img loading="lazy" decoding="async" style="" src="/sites/default/files/uploads/2015/05/Millenials-in-Adulthood.jpg" alt="Millenials-in-Adulthood" width="300" height="200" /></a>Research featured in <a href="http://www.businessinsider.com/r-as-millennials-reach-parenthood-fund-managers-bet-on-burbs-2015-5"><em>Business Insider</em></a> tells us that millennials aren&#8217;t much different from their parents&#8217; generation.</p>
<blockquote><p><em>&#8220;They still want good restaurants, but now it&#8217;s also about space, affordability and being able to send their kids to a good public school,&#8221; said Paternite, 45, who added that about 70% of her business now comes from young families who are making the move from Brooklyn or Manhattan.</em></p>
<p><em>Millennials, typically defined as those born between 1981 and 1997, may be turning into their parents after all. A generation that&#8217;s been stereotyped as urban, single, and aghast at the idea of a car-based life in the suburbs is starting to age, prompting fund managers to bet on companies that should benefit if the US birth rate reverses a six-year slump.</em></p></blockquote>
<p>
Oh, and their supposed desire to get away from cars? <a href="http://www.businessinsider.com/r-as-millennials-reach-parenthood-fund-managers-bet-on-burbs-2015-5">Also false</a>:</p>
<blockquote><p><em>The generation once seen as shunning cars accounted for 27% of new auto sales in the US last year, up 9 percentage points from 2010, according to a recent study by JD Power and Associates.</em></p></blockquote>
<p>
The stereotype was probably never true, yet it has driven so much of the policymaking, rhetoric, and spending from City Hall. Readers of this blog see nothing new here. We&#8217;ve been debunking the millennial myth <a href="/2014/05/the-illusive-millennials-kansas-city%E2%80%99s-hunt-for-the-perfect-city-dwellers.html">here</a> and <a href="/2015/02/kansas-city-millennial-magnet.html">here</a> and <a href="/2015/02/kansas-city-millennial-magnet-part-2.html">here</a>.</p>
<p>In the meantime, the rest of the city—where people are actually living—<a href="/2014/12/urban-neglect-kanasa-city-tif.html">has been neglected</a> and <a href="/2015/03/kansas-citys-orwellian-open-streets.html">left to dry up</a>. Rather than chase <a href="/2014/02/ask-not-for-whom-the-bell-clangs.html">mythical populations of the future</a>, we need to fix the real problems that impact the quality of life for millennials—and everyone. This means streets, sewers, schools, crime, and we need to do so efficiently while keeping taxes low.</p>
<p>The post <a href="https://showmeinstitute.org/article/municipal-policy/millennials-prefer-suburbs-and-cars/">Millennials Prefer Suburbs . . . and Cars</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>The Myth of the Urban Millennial</title>
		<link>https://showmeinstitute.org/article/transparency/the-myth-of-the-urban-millennial/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Wed, 04 Feb 2015 21:36:45 +0000</pubDate>
				<category><![CDATA[Municipal Policy]]></category>
		<category><![CDATA[State and Local Government]]></category>
		<category><![CDATA[Transparency]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/the-myth-of-the-urban-millennial/</guid>

					<description><![CDATA[<p>The debate over what millennials want continues to rage in Kansas City and elsewhere. City leaders are spending gobs of taxpayer money on entertainment districts, streetcars, and subsidized housing in [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/transparency/the-myth-of-the-urban-millennial/">The Myth of the Urban Millennial</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><a href="/sites/default/files/uploads/2015/02/140502-millennials-mn-1050_360088ebbf3a5feb2b25c6f6d91dbe5a.jpg"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-56136" src="/sites/default/files/uploads/2015/02/140502-millennials-mn-1050_360088ebbf3a5feb2b25c6f6d91dbe5a.jpg" alt="140502-millennials-mn-1050_360088ebbf3a5feb2b25c6f6d91dbe5a" width="610" height="406" /></a></p>
<p>The debate over what millennials want continues to rage in Kansas City and elsewhere. City leaders are spending gobs of taxpayer money on entertainment districts, streetcars, and subsidized housing in hopes that the so-called creative class will flock there. But the evidence to support such efforts is weak and growing weaker with time.</p>
<p>The<em> New York Times</em> published <a href="http://www.nytimes.com/2014/10/20/upshot/where-young-college-graduates-are-choosing-to-live.html?_r=0&amp;abt=0002&amp;abg=1">a column recently</a> about where young college-educated people are choosing to live. The author wrote:</p>
<blockquote><p></p>
<p class="story-body-text story-content"><em>[A]s young people continue to spurn the suburbs for urban living, more of them are moving to the very heart of cities — even in economically troubled places like Buffalo and Cleveland. The number of college-educated people age 25 to 34 living within three miles of city centers has surged, up 37 percent since 2000, even as the total population of these neighborhoods has slightly shrunk.</em></p>
<p>
</p></blockquote>
<p></p>
<p class="story-body-text story-content">Yet a <em><a href="http://www.wsj.com/articles/millennials-prefer-single-family-homes-in-the-suburbs-1421896797">Wall Street Journal</a></em> piece, published just last week, reports:</p>
<blockquote><p></p>
<p class="story-body-text story-content"><em>A survey released Wednesday by the National Association of Home Builders, a trade group, suggested otherwise. The survey, based on responses from 1,506 people born since 1977, found that most want to live in single-family homes outside of the urban center, even if they now reside in the city.</em></p>
<p>
</p></blockquote>
<p></p>
<p class="story-body-text story-content">A recent article in <em><a href="http://www.businessinsider.com/we-have-reached-peak-urban-millennials-2015-1">Business Insider</a></em> suggests that the era of young professionals living in urban areas has peaked:</p>
<blockquote><p></p>
<p class="story-body-text story-content"><em>But a decade from now, the landscape will look very different. Millennials will pair up and have kids and want space. Cities, particularly the megacities like New York and Chicago, aren&#8217;t likely to become more affordable.</em></p>
<p></p>
<p class="story-body-text story-content"><em>Demographics are destiny. That big bulge of younger millennials visible in the population pyramid is going to be hitting the prime age range for marriage and having kids in the next few years, and it&#8217;s likely that many of those new families will move out to the <em>&#8216;</em>burbs (or further!).</em></p>
<p>
</p></blockquote>
<p></p>
<p class="story-body-text story-content">The true cost of revitalizing downtown may be more than the city can bear. Kansas City <a href="http://www.bizjournals.com/kansascity/news/2014/12/15/city-of-fountains-foundation-sets-higher-goal-for.html">cannot afford to operate its own fountains</a> and is <a href="http://www.kansascity.com/news/local/article301997/KC-budget-cuts-Fire-Department-by-7.6-million.html">cutting funds to public safety services</a>. It cannot cover bad investments without <a href="/2014/02/yes-kansas-city-government-uses-airport-funds.html">taking money from the airport</a>, <a href="https://showmeinstitute.org/document-repository/doc_view/523-urban-neglect-kansas-citys-misuse-of-tax-increment-financing.html">it neglects the real urban core</a>, and <a href="http://www.kansascity.com/news/government-politics/article5619915.html">it relies on charity to meet basic city services</a>. Kansas City needs to have a debate on these economic development assumptions, especially because there is so little money left to give away.</p>
<p>The post <a href="https://showmeinstitute.org/article/transparency/the-myth-of-the-urban-millennial/">The Myth of the Urban Millennial</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>On Tax Policy And Iocane Powder</title>
		<link>https://showmeinstitute.org/article/taxes/on-tax-policy-and-iocane-powder/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Mon, 09 Sep 2013 10:00:00 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Taxes]]></category>
		<guid isPermaLink="false">http://showmeinstitute.local/on-tax-policy-and-iocane-powder/</guid>

					<description><![CDATA[<p>Last week, our friend and fellow blogger Dave Helling at the Kansas City Star wrote a critique of my post about how much accumulated income has left Kansas City and Saint Louis [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/taxes/on-tax-policy-and-iocane-powder/">On Tax Policy And Iocane Powder</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Last week, our friend and fellow blogger Dave Helling at the <em>Kansas City Star</em> wrote a <a href="http://www.kansascity.com/2013/09/05/4460215/the-motion-picture.html">critique</a> of my post about how much accumulated income <a href="/2013/09/you-can-call-them-buzzards-but-that-makes-missouri-the-carcass.html">has left Kansas City and Saint Louis since 1992</a>. Missouri&#8217;s urban out-migration, he argues, has less to do with economic environments than it does macro trends of suburbanization and warm-weather retirement. &#8220;<a href="http://www.etsy.com/listing/130824907/as-you-wish-princess-bride-tribute?ref=shop_home_active">Inconceivable</a>&#8221; assertions on his part? Not at all. But that doesn&#8217;t really address the actual policy problems — past and present — that have led people to leave Saint Louis and Kansas City.</p>
<p>Suburbanization, whether between or within states, doesn&#8217;t happen in a vacuum. Lots of factors are considered when people decide to move, and among those considerations is taxes. And to be clear, tax policy matters not just when taxes are reduced or repealed, but also <em>when bad tax policies persist</em>. And a bad, bad tax that both Kansas City and Saint Louis have had for a long time is the earnings tax. As our own Joe Haslag concluded in a policy study <a href="http://www.showmeinstitute.org/publications/policy-study/taxes/343-how-an-earnings-tax-harms-cities.html">way back in 2006:</a></p>
<blockquote><p>[T]he growth rate in [the modeled] economy where there is no city earnings tax is 1.72 percent, while the growth rate in the economy with a city earnings tax is 1.66 percent. Thus, a city earnings tax results in the growth rate falling by 0.06 percentage points on an annual basis.</p>
<p>That might seem small, but it can result in large differences in the size of the economy. Suppose that the initial value of the economy’s income is $78 billion. (This is the 2002 personal income level in the Missouri part of the St. Louis metropolitan area). After a generation (25 years), the no-tax economy would be $1.78 billion larger than the economy with a one percent tax rate. That is a difference of 1.5 percent.</p></blockquote>
<p>
Indeed, tax policy can be a contributing (rather than motivating) factor in <a href="/2013/09/steve-kraskes-quality-of-life.html">where people live</a> and grow their businesses. Even small tax policy mistakes can be economically destructive for a city — just more quietly and over a longer horizon. If you hurt your city&#8217;s capacity to grow economically, you truly hurt your city&#8217;s future.</p>
<p>Alas, unlike Iocane powder, it&#8217;s very difficult to build up an immunity to destructive taxes over time. And obviously, suburbs developed around Kansas City on the Missouri side as they did on the Kansas side. But the fact that Jackson County lost &#8220;only&#8221; a half billion dollars of Missouri income to Johnson County <em>before </em>Kansas enacted significant tax cuts in 2012 (and 2013) should be cold, cold comfort to Missouri tax cut opponents. Tax policy was a factor considered in moving from Missouri to Kansas before; it may be the preeminent factor considered today. Where people retire is a thornier proposition bound up with both economic and non-economic considerations, but one thing is certain — Kansas Citians haven&#8217;t moved, and won&#8217;t be moving, en masse to Olathe, Kan., for its sun-kissed shores. Will they move there for its tax climate? Quite possibly. And that&#8217;s the problem.</p>
<p>On a more personal note: I have heard from businessmen and businesswomen across Kansas City about the pressure longtime-Missouri businesses are under to consider a move to Kansas — motivated almost entirely by the new taxing environment there. Businesses already are asking the question, <a href="https://showmeinstitute.org/component/eventbooking/?task=view_event&amp;event_id=40">&#8220;Is it time to leave Kansas City?&#8221;</a> I cannot stress enough how serious their concerns are. How long can Kansas City and the state of Missouri afford to ignore them before risking a plunge off the Cliffs of Insanity?</p>
<p>The post <a href="https://showmeinstitute.org/article/taxes/on-tax-policy-and-iocane-powder/">On Tax Policy And Iocane Powder</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>Part One: The Smallness Of The Potentially &#8216;Hip&#8217; Core</title>
		<link>https://showmeinstitute.org/article/uncategorized/part-one-the-smallness-of-the-potentially-hip-core/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Mon, 25 Mar 2013 21:33:39 +0000</pubDate>
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		<guid isPermaLink="false">http://showmeinstitute.local/part-one-the-smallness-of-the-potentially-hip-core/</guid>

					<description><![CDATA[<p>Just the other day, The Daily Beast published an outstanding piece on redevelopment trends in our urban communities. Joel Kotkin, a professor of urban development, wrote the article, which addressed the [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/uncategorized/part-one-the-smallness-of-the-potentially-hip-core/">Part One: The Smallness Of The Potentially &#8216;Hip&#8217; Core</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>Just the other day, <em>The Daily Beast</em> published <a href="http://www.thedailybeast.com/articles/2013/03/20/richard-florida-concedes-the-limits-of-the-creative-class.html">an outstanding piece</a> on redevelopment trends in our urban communities. <a href="http://en.wikipedia.org/wiki/Joel_Kotkin">Joel Kotkin</a>, a professor of urban development, wrote the article, which addressed the idea that, as Kotkin put it, &#8220;the &#8216;creative class&#8217; of the skilled, educated and hip would remake and revive American cities,&#8221; and that governments should pursue projects that would bring them to their urban centers.</p>
<blockquote><p>Urbanists, journalists, and academics — not to mention big-city developers — were easily persuaded that shelling out to court “the hip and cool” would benefit everyone else, too. And [development consultant Richard] Florida himself has prospered through books, articles, lectures, and university positions that have helped promote his ideas and brand and grow his Creative Class Group’s impressive client list. &#8230;</p>
<p>Well, oops.</p></blockquote>
<p>
Another way I would describe this development strategy: &#8220;Warehouse lofts over warehouses.&#8221;</p>
<p>Indeed, the recasting — and really, inversion — of the American city by contemporary urban planners does not share a great deal in common with why American cities developed in the first place: because that is where the jobs were. As transportation and communication became more expansive and readily available, living in or near the city center for work became less of a necessity and more of an active choice. In a time where &#8220;creatives&#8221; can give a presentation over Skype and telecommute to work, location-location-location ain&#8217;t as necessary as it used to be when it comes to jobs. Moving downtown in the 21st Century oftentimes has less to do with labor needs as it does with identity preferences.</p>
<p>And that is, of course, the development quandary. My proximity to my place of work is going to affect where I live greatly if my job is in manufacturing. Indeed, many cities were purpose-built for the manufacturing industry: shoes, cars, etc. But manufacturing is not the industry cities seem to devote too much attention to these days, and unfortunately for cities, the &#8220;creatives&#8221; they are trying to attract do not exactly have development coattails.</p>
<p>Kotkin:</p>
<blockquote><p>Indeed in many ways the Floridian focus on industries like entertainment, software, and social media creates a distorted set of economic priorities. The creatives, after all, generally don’t work in factories or warehouses. So why assist these industries? Instead the trend is to declare good-paying blue collar professions a product of the past. If you can’t find work in deindustrialized Michigan, suggests Salon’s Ray Fisman, one can collect <a href="http://www.amazon.com/The-Geography-Jobs-Enrico-Moretti/dp/0547750110">“more than a few crumbs”</a> by joining the service class and serving food, cutting hair or grass in creative capitals like San Francisco or Austin.</p></blockquote>
<p>
The story actually quotes Florida, <a href="http://www.creativeclass.com/richard_florida">one of the lead movers in the &#8220;hip&#8221; development scene</a>, admitting to a serious flaw in the last decade&#8217;s worth of development fads: “On close inspection, talent clustering provides little in the way of trickle-down benefits.” In other words, if you build it, the &#8220;creatives&#8221; might come to your converted warehouses and niche dining establishments . . . but that is about it. (Emphasis mine.)</p>
<blockquote><p>Yet this footprint of such “cool” districts that appeal to largely childless, young urbanistas in the core is far smaller in most cities than commonly reported. Between 2000 and 2010, notes demographer Wendell Cox [<a href="http://www.showmeinstitute.org/publications/policy-study/red-tape/705-housing-affordability.html">who has written for Show-Me</a>], the urban core areas of the 51 largest metropolitan areas — within two miles of the city’s center — added a total of 206,000 residents. But the surrounding rings, between two and five miles from the core, actually lost 272,000. In contrast to those small gains and losses, the suburban areas — between 10 and 20 miles from the center — experienced a growth of roughly 15 million people.</p>
<p><strong>The smallness of the potentially “hip” core</strong> is particularly pronounced in Rust Belt cities such as Cleveland and<strong> St. Louis,</strong> where these core districts are rarely home to more than 1 or 2 percent of the city’s shrinking population. Yet the subsidy money for developers is often justified in the name of “reviving” the entire city, most of which has continued to deteriorate.</p></blockquote>
<p>
More on this topic shortly.</p>
<p>The post <a href="https://showmeinstitute.org/article/uncategorized/part-one-the-smallness-of-the-potentially-hip-core/">Part One: The Smallness Of The Potentially &#8216;Hip&#8217; Core</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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		<title>We Like the &#8216;burbs: TOD Problems (Part 2 of 3)</title>
		<link>https://showmeinstitute.org/article/transportation/we-like-the-burbs-tod-problems-part-2-of-3/</link>
		
		<dc:creator><![CDATA[]]></dc:creator>
		<pubDate>Wed, 26 Dec 2012 12:00:00 +0000</pubDate>
				<category><![CDATA[Municipal Policy]]></category>
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		<guid isPermaLink="false">http://showmeinstitute.local/we-like-the-burbs-tod-problems-part-2-of-3/</guid>

					<description><![CDATA[<p>If I could create something that would decrease poverty, raise incomes, provide more jobs, or lower gas prices, I would. But these are the types of problems that we cannot [&#8230;]</p>
<p>The post <a href="https://showmeinstitute.org/article/transportation/we-like-the-burbs-tod-problems-part-2-of-3/">We Like the &#8216;burbs: TOD Problems (Part 2 of 3)</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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										<content:encoded><![CDATA[<p>If I could create something that would decrease poverty, raise incomes, provide more jobs, or lower gas prices, I would. But these are the types of problems that we cannot fix in the same way that we would fix a broken chair leg or leaky faucet. Russell Roberts, an economics professor at George Mason University, <a href="http://www.econlib.org/library/Columns/y2005/Robertsmarkets.html">notes that</a> “we want to change outcomes without consequences with the ease of adjusting the thermostat on the wall of our house.” He explains that the economy cannot be controlled in the same way. The economy is “the product of human action but not of human design,” he said.</p>
<p>New <a href="http://stlouistod.com/">Transit-Oriented Development</a> (TOD) <a href="http://engage.stlouistod.com/">in Saint Louis</a> is a tool the government uses as an attempt to design where and how we live. They want to make more people ride the Metro, reduce car trips, and increase economic development in the area. There is nothing wrong with wanting economic development, but the government cannot see into the future. I used to work for the government, so trust me — they know just as much as you or I do. They cannot prove that Transit-Oriented Development will achieve their goals.</p>
<p>Just because the government creates shops and housing around a Metro station, it does not mean that more people will want to ride the Metro. Those who already used the Metro will continue to ride it, but those of us who prefer to drive our cars will continue to drive our cars.</p>
<p><a href="http://www.downsizinggovernment.org/transportation/urban-transit#_edn44">Surveys</a> suggest that four out of five Americans prefer a home with a yard as opposed to living near shops, transit, or jobs. It is a waste of resources to create TODs because they simply are not capable of achieving the intended goals. If the government really wants us to ride the Metro, they will have to do something more drastic, such as shutting down all the roads, or making it illegal to drive. But I think it is safe to say those things will not happen.</p>
<p>The post <a href="https://showmeinstitute.org/article/transportation/we-like-the-burbs-tod-problems-part-2-of-3/">We Like the &#8216;burbs: TOD Problems (Part 2 of 3)</a> appeared first on <a href="https://showmeinstitute.org">Show-Me Institute</a>.</p>
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