July 31, 2008

For the Ladies (All 105 of Them)

Paul, Bill, David, Steve, Michael. It’s not an exhaustive list, but those are some of the most common superintendent names. “Mary” shows up much less often.

In fact, nearly 79 percent* of Missouri superintendents are male.

Though it’s getting better, it’s a sad fact that men tend to earn higher salaries than equally qualified women. It’s a sad fact that there are more men in leadership positions than women.

But in school districts, where superintendents tend to come from the ranks of teachers and administrators, this is shocking. It’s not just that a large majority of Missouri superintendents are male. It’s that a large majority of superintendents are male while a large majority of school district employees are female. According to the National Center of Education Information, 82 percent of all teachers in the United States were female in 2005.

Continue reading "For the Ladies (All 105 of Them)" »

Corn Contention

Today, the Post-Dispatch editors chastised the leading Republican gubernatorial candidates for turning the Missouri ethanol mandate into a major campaign issue. The editors may well be correct that “the mandate makes very little difference in the bank accounts of drivers, grocery shoppers, or even farmers.” However, contention over the mandate might provide a worthy outlet for opinions about larger issues, such as the government’s involvement in ethanol production and the appropriateness of direct intervention into other markets.

As a practical matter, the future of the current ethanol mandate will not have a large effect on the commodity prices Missourians face. Our study, which was a narrowly focused rebuttal of another study, estimates a considerable, but not overwhelming, price tag of $29 per Missouri driver per year. The P-D suggests that “for drivers, there’s probably only a tiny savings.” Regardless of whether the mandate is a net positive or net negative, we both agree that the effect is relatively small. After all, the legislation only touches statewide consumption of globally traded commodities in the event that their associated market prices are lower than those of conventional gas.

Even so, the current discussion is anything but frivolous. The ethanol savings figures given by the Missouri Corn Merchandising Council are patently false. Further, the use of coercive intervention into a fully functional market raises legitimate doubts. The Republican candidates obliviously feel that they can effectively offer different shades of conservatism through a real — although perhaps not earth shattering — debate. Whether their attempts to differentiate themselves will pay off remains to be seen, but we can’t blame them for trying.

Turning Your Money Against You

As a link from this website has previously shown, Missouri Citizens for Property Rights gathered more than 400,000 signatures in its effort to give Missourians the opportunity to end eminent domain abuse this November by passing two proposed amendments.

Concerned that the amendments’ adoption would cut off their ability to give away their citizens’ homes and businesses to commercial developers, some cities are now setting aside taxpayer dollars to try to prevent the vote from happening. This is every bit as outrageous as school districts gambling millions of dollars in taxpayer funds in an effort to get billions of dollars in taxpayer funds. You should consider doing a little research to find out whether your local officials are using your money against you in a similar way.

July 30, 2008

Bonds Away in Saint Louis County

According to the Post-Dispatch, St. Louis County is considering a $120 million bond issue to address infrastructure needs. This comes as the county’s Blue Ribbon Capitol Investment Commission is supposed to wrap up its findings and issue a report shortly. My main question is whether or not another shoe will drop. Sure, it is a big bond issue, but St. Louis County has a great deal of bond capacity capable of being used — it is currently just using about 3 percent of its allowable bonding. If this bond issue is the primary way they are going to address these infrastructure issues — like a new Family Courts building, for instance — then this should be a good plan. If an additional tax hike proposal comes down the chute in a few months (on top of the Metro tax proposal), I won’t necessarily feel this way.

For your reading pleasure, here is a copy of the testimony I provided to the Blue Ribbon Commission about these issues last month (ignore the date on the page, that’s just when we finally got around to putting it online).

Ethanol, Millhaven, and Me

I appeared on the McGraw Millhaven Show Monday to discuss a number of items, but for the point of this post I will limit it to our case study about ethanol. The Missouri Corn Growers Association appeared on the show yesterday to give their side of the issue, which is what debate is all about. I was unable to listen in yesterday as I was driving to Kennett (damn, the Bootheel is far away!) to give a presentation about another topic. Dapper Dan the intern, however, listened carefully and gave me detailed notes about the corn growers’ appearance, so that I could respond via this blog.

The corn grower’s rep, Gary Marshall, (not that Garry Marshall) achnowledged that E-10 ethanol gasoline has reduced fuel efficiency. He said that our estimate of a 2.5-percent reduction was too high, though, for much of the gas. He also speculated that no Missourian finds a decline in mileage, which I will further speculate is wrong, and point my valued readers here and here. The most important thing is that they admit they did a study claiming cost savings by E-10 gas and did not account for the reduced fuel efficiency. The study that the MCMC commissioned is not sound public policy research — it’s propaganda.

Next, the interview got into a canard that the ethanol industry likes to use in regard to the ethanol subsidy. The reasoning goes that we should logically ignore the subsidy, because the oil industry is subsidized, too (which it is), so they cancel each other out. Is that correct? No. Let’s go to the ultimate authority on this, the Energy Information Administration with the U.S. Dept. of Energy. Just last year, they released a report about the subsidy amounts provided to the overall energy industry. The 2007 value of the Volumetric Ethanol Excise Tax Credit was just less than $3 billion dollars ($2,990,000, to be exact; figure on page 21). Let’s compare this with oil. The federal subsidies for ALL natural gas and oil prodiction (much more than just automobile fuels) was just more than $2 billion ($2,090,000, to be exact — page 23). That is almost a billion dollars more in subsidies for ethanol alone than for the entire oil and natural gas industry combined, which, again, includes home heating oil, gas for your car, etc. Now consider that the oil and gas industry dwarfs the ethanol industry, and it is inescapable that one industry (ethanol) is MUCH MORE HEAVILY SUBSIDIZED than the other industry (traditional oil and gas).

Now, to be fair, you might say we should have incorporated the lower oil subsidies into our case study analysis. But our study never stated that oil and gas didn’t get subsidies. It refuted the calculations used in the MCMC study by insisting that they don’t get to claim the 51-cent-per-gallon subsidy as savings for Missourians, as though taxpayers didn’t pay for that subsidy in the first place. The oil and gas subsidies, small and non-distortionary as they are, were fully included in the cited gas prices used by ethanol supporters in their claims to save us money.

There is much more to consider here, but this post is already too long. I have nothing against ethanol. I dislike the subsidy, in the form of the tax credit, in the same way I dislike all agricultural subsidies. But most other agricultural subsidies are not forced upon me via mandate, like E-10 gas is. It is the combination of mandating a subsidized product that I dislike, and I like it even less when supporters of the dictate use poorly reasoned and flawed studies to tell me it’s a good thing.

P.S. — I hope you all get just how ridiculously clever the title of this post is!

Midwives Call for Licensure

I blogged a couple of weeks ago about the North Carolina midwives who want the state to license them. Here’s an article about Massachusetts midwives who have followed suit. A state representative argues in favor of occupational licensure:

If the bill passes, they would have to apply for licensure and pass a series of requirements to practice legally in the state. “It will give any of the births currently being done more regulation and oversight,” Khan says.

This push for licensure might just be a strategy to legalize midwifery. Many Missourians, especially in rural areas, had a positive view of midwifery before the state allowed the practice. The legislation was controversial, but there hasn’t been public outcry about the fact that a private organization is licensing the midwives here. In states where the population is more wary of midwives, establishing a state board to oversee the profession could be the only way to legalize it.

On the other hand, lobbying for state oversight could be a way for the midwives to keep out competition and earn more money. The article notes that home birth with a midwife is much less expensive than seeing a doctor in a hospital. It doesn’t draw any connection between that and all the bureaucratic hurdles doctors have to jump through to be certified. If midwives have to go through a similarly long and costly certification process, you can expect the price for their services to jump.

If Massachusetts midwives need a state board to be recognized as legal, then I guess that’s what they have to do. But licensure should be a last resort.

Helping Missourians Vote?

Help America Vote Act. It sounds pretty innocuous, even appealing. But even the most well-intentioned laws can have unintended consequences.

“It started with HAVA,” Kristy Urich, Grundy County’s clerk, said. “We had to have very expensive electronic equipment, and it forced us into having fewer polling places.”

Grundy County underwent precinct consolidation in the wake of the Help America Vote Act (HAVA) of 2002, meaning it reduced the number of polling places available to voters. Why? To save money.

HAVA requires that federal money be given to states: “to replace punch card voting systems or lever voting systems (as the case may be) in qualifying precincts within that State with a voting system (by purchase, lease, or such other arrangement as may be appropriate) [...]”

But even though federal funds were available, there was only so much money to go around.

“They allocated X amount of dollars per location,” Urich said. “And they don’t pay for ongoing maintenance. Although they paid for most of the original setup costs, they don’t continue to pay.”

Without enough federal funds, changing over to more high-tech voting systems was cost prohibitive. And, just like that, places to vote disappeared from Grundy County.

Continue reading "Helping Missourians Vote?" »

Catastrophe Setup, Redux

I have previously blogged about the nefarious — but unintended — consequences of disaster relief. This seed has germinated into a longer piece about flood relief, which Missourinet has covered (link via Combest).

The idea is simple. By bailing out the victims of flood relief, the government unintentionally encourages people to move into flood-prone areas, leading to more flood damage in the long term.

July 29, 2008

Explanation

In 2004, the Plato R-V School District held financial elections in April, August, and November. Two years later, the bond that district officials hoped to pass showed up again on the November ballot.

“We were trying to pass a bond issue two or three years in a row,” said Superintendent Victor Slape. “Trying to pass it whenever we could, really. … More people vote in November, and we wanted to make sure people got the opportunity to vote.”

Turns out that Cynthia’s suspicion, that school districts will sometimes continue to put a financial issue up for vote until it passes, is true. And that’s a primary reason school districts occasionally add elections to the November ballot, despite the higher cost.

Superintendent of the Albany School District Ted Spessard said the costs of any school election in his district are “in the thousands.” He estimated that the district pays about two to three thousand dollars in order to put an issue on the ballot.

Continue reading "Explanation" »

I’m Just Eager for Tolls

It would be wonderful if everyone took into account the full social consequences of their actions before making a decision to act. Almost every action you take has some effect on someone other than yourself. And you probably don’t completely take that into account. Consider, for example, your decision to take Eager to Hanley to cross over highway 40. This imposes costs on everyone who must line up behind you in traffic. And, as the Post-Dispatch notes, the traffic is terrible … and confusing:

On most days, getting from Eager to Hanley is a guessing game for drivers unfamiliar with the intersection. Figuring out which lane leads where causes some drivers to cut over at the last minute, triggering road rage.

Hanley Road is one of the most traveled streets in the county, with more than 50,000 vehicles using the stretch near Highway 40 daily, according to the county.

An ideal solution would force drivers to take into account the costs they impose on each other when they drive through congested areas, while also providing an incentive for firms to provide alternatives or improvements to the route. Tolls are about as close to that ideal as you can get. If drivers were forced to pay a small fee to cross the highway at Eager and Hanley when it is congested, many of them would find alternate routes or perhaps try to cross when there is less congestion. This would relieve the congestion and provide a quicker route for those who were willing to pay for it.

The tolls would also send a clear signal to anyone who provides transportation services, both governments and firms: If you can provide an alternate route or means of crossing the highway, or improve the intersection, you can make a tidy profit.

It looks like it’s a bit too late for tolls at Hanley and 40, though:

St. Louis County and Missouri transportation officials announced Monday an agreement to add the intersection to the $535 million Highway 40 (Interstate 64) rebuild. The intersection that leads to dozens of stores and restaurants will be rebuilt as a “jug handle” intersection, eliminating left turns to and from Eager.

Perhaps next time, transportation officials will keep our work in mind when deciding how to fund their next project.

July 28, 2008

Their Fair Share?

November elections garner higher turnout. But they cost more, too. So, if a school district puts a finanical issue on the ballot in November, they’ll get more voters to the polls than they would in April — but boosting the voter count will cost them. It’s not a question of just typing a few more lines on the ballot.

How much does the cost increase?

“It varies,” said Darryl Kempf, Cooper County’s clerk. “There is no magic number.”

Political subdivisions — school, fire, and hospital districts, to name a few — help split the election tab.

“Missouri law requires that election costs be shared proportionally,” Betsy Byers, elections outreach and education coordinator for the Missouri Secretary of State, said. When determining how much each subdivision pays, the county charges based on the number of registered voters.

Continue reading "Their Fair Share?" »

Cato U

Those of you who read this blog for in-depth analysis and riveting commentary, I’m sure you haven’t noticed my absence, but for everyone else: I HAVE RETURNED! After a wonderful week in San Diego, I have returned to my cubicle and have resumed normal intern duties. St. Louis is just as I remember — hot, humid, and no beaches.

The past week was an awesome experience. For those of you who don’t know, my fellow intern Dan Grana and I were Bastiat scholars at Cato University, which is a weeklong seminar organized by the Cato Institute that focuses on enhancing freedom and liberty through lectures and discussions. It is a great experience, and I recommend it to any libertarian — or anyone who is just generally interested in promoting freedom. Although the days were somewhat long (9 a.m. to 9 p.m.), it was completely worth it. The days were filled with incredible speakers, ranging from Tom G. Palmer of the Cato Institute to Rejoice Ngwenya, who is a leader against Zimbabwe’s corrupt president, Robert Mugabe. Even after the daily lectures were finished, the conversation continued. We spent most nights at the Veranda Grill discussing liberty and other issues with like-minded individuals.

The entire week was a first-class experience. The food and hotel were awesome, and the speakers were even better. Before I arrived in San Diego, I was a little apprehensive about the trip. I was worried that the speakers would not be entertaining, or the days would be too long, but it turned out that my notions were unwarranted. Again, if anyone ever has the opportunity to go to Cato University, I highly recommend it. I’m even thinking about going again next year.

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