December 25, 2008

State Officials Announce Horse-and-Buggy Task Force

Some of Jay Nixon’s economic proposals, like initiatives to retrain workers, sound like sensible policy to adopt during a recession. But I can’t imagine what good this will do (thanks for the link, and happy holidays, Combest; emphasis added):

Nixon’s six-point plan includes low-interest loans to small businesses, job training tax incentives and the establishment of an auto manufacturing task force.

Nixon defends the task force by predicting that people will continue to drive and new cars will be manufactured in the future. You can’t deny that. Does it follow that we need an auto task force, though? If the demand for cars goes down — because of changes in economic conditions, technology, or whatever — no task force can bring that up again. When auto companies are in trouble, there may be less reason to devote a task force to that industry. We don’t organize task forces around hansom cabs or steamboats. Innovations rarely arise out of state task forces, which are even slower to respond to changing conditions than inefficient auto companies.

December 24, 2008

Check Out the Badge

What do St. Louis police chiefs and the rapper 50 Cent have in common? Honestly, not too much, but they both possess a lot of bling blingApparently, the St. Louis police chief is sporting a $5,900 gold plated badge on his uniform, and his posse (top cops) are wearing $1,987 badges. The news of these superfluously ostentatious badges has spread all around the country — even people in big-government Boston are shaking their heads.

With this type of money, the whole police force could purchase Power Ranger badges and just morph when someone calls 911.

December 23, 2008

Show-Me Daily Gives Out Holiday Props

As we wrap up the second year of Show-Me Daily, it’s time once again to give out our holiday thank yous to the blogs, newspapers, resources, and — most importantly — our readers and commenters, who help us make this blog a must-read site for literally several people a day. (Get it … “wrap up,” like Christmas gifts …?) 

As our web presence grows, there are more sites than we can single out that have linked to us or discussed our posts and studies, so I just want to issue a general thank you to everyone who has participated in the web conversation about the direction Missouri needs to take. But a few websites must be specially thanked. We could not do this blog without the daily headlines at johncombest.com. Every morning, like a CWE rooster, John gets up and sorts through the day’s headlines so that thousands of Missourians don’t have to. Many of the articles we discussed were first found through his site, and because we occasionally forget to give him credit for the links, let it be known that he is the man!

The writers of the Prime Buzz blog over at the Kansas City Star have been tremendous to us this year. Their daily Blog Roll post has linked to our posts several dozen times, and driven a great deal of traffic our way. Just the other day, they gave my post about Kansas City’s budget report the top placement in the Blog Roll, and we saw a nice increase in visits because of it. We can’t thank them enough for the inclusion they give our thoughts on their site.

The other website that deserves our public thanks is Missouri Political News Service. The editors over there are always willing to post our op-eds and policy studies, which we greatly appreciate. In the think tank industry, if a tree falls in a forest and nobody is around to hear it, then it does not make a sound. MOPNS helps to make certain that our work always makes a sound, and we thank them for it.

There are many other sites that deserve our thanks as well. To our regular readers, we thank you the most — and, to our commenters, please keep up the great conversation.

December 22, 2008

Another Productive Legislative Session

Piling waste upon waste, soon that December 25 holiday already recognized by the state will have a name. According to a post on the KY3 blog, of Missouri’s 12 recognized holidays, only four are officially named by the state, and there is a proposal underway to officially name the December 25 holiday “Christmas.”

This unproductive exercise by our General Assembly, like all its activities, can be tracked on Policy Pulse. I found it by searching the keyword “christmas.”

December 19, 2008

I Wanna See My Face in ‘Em

Yesterday, I had the good fortune to join some fellow Show-Me Institute employees in getting my shoes shined. We braved the harsh Clayton, Mo., winter and walked two blocks to Andre’s Shoe Shine Parlor, located at 7818 Forsyth Blvd. in Clayton.

While there, the five of us were able to experience the joys of capitalism firsthand, as we exchanged a small amount of currency for a service that was not only enjoyable, but also improved the value of an asset — in this case, our shoes. Now, while I still feel that buying comic books is the greatest example of free-market capitalism, I still had a great time at Andre’s.

So, enjoy this short movie I edited together on our office Mac. It shows, in its purest form, what capitalism truly means.

December 18, 2008

What Will KC Do About Its Budget?

The Kansas City Star has a long story about an even longer budget report that deserves at least a short blog post. I have carefully read the article, and the study itself will be my work-related reading assignment over the holiday break.

In the interest of focusing on the key points, I am only going to discuss the consultants’ seven recommendations that were highlighted in the Star. If you are in such a hurry that you can only read one more sentence, then I will tell you this: Four of the recommendations are very good, one is worth consideration, one might be a good idea, and one is absolutely horrible. But on to the details, with each suggestion followed by my comments. The report suggests that Kansas City should:

  • Consider a new trash fee, consistent with what is charged in many cities in the region and nation. Kansas City residents often resist this idea, saying the earnings tax, in place since the 1960s, is supposed to cover those costs.

Definitely worth considering. Moving toward direct fees for direct services is a move in the right direction. However, this should not be done as just an excuse to create a new fee. Rather, it should be at least partly offset by spending cuts elsewhere, as the revenue moves toward the new trash fee.

  • Consider seeking state legislation for mandatory suburban withholding of that earnings tax to make sure people working or living in Kansas City pay the taxes they owe.

This is an absolutely terrible suggestion. Businesses that operate outside of Kansas City should not be forced to collect taxes for the city. If anything, this could serve as an incentive (albeit a minor one) for companies outside of Kansas City to hire fewer KC residents. Just a stupid idea.

  • Consolidate the Police Department with the rest of city government.

Both Kansas City and St. Louis would like to gain control of their police departments from the state. I am friends with some St. Louis city cops, and I have never talked to one who liked this possibility. Control by the state board means that the police department answers to one board and the governor, not to 28 aldermen and 11 citywide elected officials. However, in Kansas City, with its city manager form of government, local control might work better.

  • Hold the line on city hiring, limit wage increases, and contain health-care costs to a greater degree than the city has done in the past.

Now we are on to the good ideas, so I don’t have much to add. Obviously, this suggestion is imperative for any city.

  • Pursue regional funding for civic and cultural assets, as is done in such cities as Denver, St. Louis and Minneapolis-St. Paul.

Now, here is an idea that might raise taxes for some people but which I still support. The zoo-museum district in St. Louis has been an excellent system for some time, and should be expanded for other counties like St. Charles. I think it should definitely be implemented in Kansas City.

  • Prioritize basic, quality-of-life services over “nice-to-have” amenities.

This is a pretty standard, yet important and worthwhile, recommendation.

And, finally, the best part of the whole report:

  • Hold the line on new taxpayer incentives for development and tax abatement to limit negative effects on city revenues. Also, re-evaluate the number of sports and entertainment arenas such as Kemper Arena that are subsidized by the city, “particularly given ongoing maintenance needs.”

We could not have said it better ourselves.

Penny for Your Thoughts

I’m suspicious when the government sends out arbitrary amounts of money to people in hopes of “stimulating” the economy. But what about sending cash for some other reason? I don’t have a problem with this, although the recipient of $5 quoted in the article sounds pretty mad:

The letter claimed to be from the Department of Transportation and said the $5 was an incentive for personal information about driving habits.

And while it looks like a scam, the DOT says it’s not. [...]

“When you called me back and told me it wasn’t a scam, I got even angrier. For the government to spend this kind of money on a mailer like this just infuriated me even more,” Held said.

Sending out cash with a survey could be worth it. The five-dollar bill grabs the recipient’s attention and makes him or her feel somewhat obligated to respond. And while this gimmick may sound expensive, mailing a survey that no one replies to would itself be a waste of money. Making decisions without information is costly too.

It would be interesting to find out whether a one-dollar bill is as effective in eliciting responses. If so, switching to the lower denomination might be a way to keep expenses down. Anyone at MoDOT want to give it a try?

December 17, 2008

Pop Quiz

Some people are interpreting this reported gain in U.S. student math scores as a victory for central planning. The U.S. has improved on an international math test since implementation of No Child Left Behind; therefore, the thinking goes, we need more federal oversight and national standards.

I have two questions about that reasoning:

  1. If central planning improves math performance, why does it have no effect on science?
  2. If the U.S. does better in a subject as a response to competition from other countries, doesn’t that say more in favor of competition than planning? Maybe we should have a contest between states, instead of more federal directives.

You may use a calculator.

A Law Requiring All Ducks to Wear Long Pants

The Kansas City Star is reporting about a unique law in Missouri — a ban on all yellow margarine. Now, it was only recently that I discovered the difference between butter and margarine, and I couldn’t believe that anyone might actually try to ban margarine in Missouri. Now, imagine my shock in learning that such a law has been on the books since the 19th century.

Luckily, this law has never been enforced. Even so, a Kansas City lawmaker is trying to have the law repealed, giving Missourians the smooth yellowy freedom they deserve. And yet, I ponder, who really cares? I mean, the law hasn’t been enforced and yet this lawmaker is taking the time to have it repealed. Is the inert I-Can’t-Believe-It’s-Not-Butter ban causing so much damage as to warrant such attention? Are there not more urgent issues to deal with? So, which is worse: having a useless uniformed law on the books, or having an elected official waste time and money to repeal it?

This seems like the kind of thing they deal with down in Springfield.

She Blinded Ethanol With Science

Frequent visitors to this blog know that I have a thing or two to say about renewable energy, specifically ethanol. I don’t care for ethanol, even if my friend Willie Nelson loves. It drives up the costs of gasoline and food and makes our cars less efficient. It attracts large government subsidies, and those new corn commercials are starting to get very annoying.

I figured it was only a matter of time until some sort of scientist would muster proof that ethanol = bad. Finally, the Royal Society of Chemistry’s Energy & Environmental Science journal has published a study ranking alternative energy sources in terms of their relative abilities to address problems with “global warming, air pollution mortality, and energy security,” and “other impacts of the proposed solutions, such as on water supply, land use, wildlife, resource availability, thermal pollution, water chemical pollution, nuclear proliferation, and undernutrition.”

Surprise, surprise — ethanol finished dead last.

Hopefully, these findings will not fall on deaf ears. And, if you haven’t read it by now, here is the Show-Me Institute’s ethanol study. Still looking for more ethanol fun? Why not try searching for “ethanol” on Policy Pulse and seeing what pops up?

Oh, and if you didn’t already know, today’s blog title comes from Thomas Dolby’s classic ’80s hit “She Blinded Me With Science.”

Assessment Declines May Not Lead to Tax Cuts (In Case You Thought They Might)

The Post-Dispatch has a front-page story today with tremendous statewide applications. It corrects assumptions about next year’s reassessment process that many people, according to the story, might have. First, the Saint Louis–area assessors that were interviewed don’t seem to think the assessment declines will be that substantial, but the article’s second point makes this moot — taxing districts are protected (a poor choice of words, I admit) from revenue decreases that result from lower property assessments. Any taxing district can increase its rates to make up the difference.

The part about assessments declining only 3 percent, according to most of the assessors the Post spoke with, is probably going to frustrate and upset many people, but in the end it does not mean much. What difference does it make if your assessment declines by 3 percent or 15 percent (on average for a community) if taxing districts increase rates by the same amount, to make up the difference? The answer is that it will make no difference, and your best hope in the assessment lottery is to see your property value decrease more than average. In that case you may actually see a lower tax rate.

I have written many times about how the Saint Louis County assessor actually does a good job on aggregate, but with so many parcels, there is almost no way to avoid the element of chance that comes with the process when you look at one individual home’s assessment. It is that element of chance that infuriates so many people. My own thoughts about how to change the system include eliminating the individual assessment and averaging everything. There are other reasons that people so viscerally dislike the property tax when compared to others taxes, the two main reasons are the fact that the process feels like a lottery, and the fact that this tax is the only one for which most people sit down and write a check to the government.

In conclusion — and to you young bloggers out there, it is poor form to end blog posts with “in conclusion” — the most that average Missourians should expect from reassessment next year is that their property taxes probably will not rise. After the increases that many have seen during the past decade, a leveling-off for a couple of years might not be so bad.

Supply and Demand … What a Novel Idea!

According to Sports Illustrated:

Next season, San Francisco Giants fans buying single-game tickets for an April game against Milwaukee might pay half as much as they would for a weekend game with the rival Los Angeles Dodgers later in the year.

The club is trying something new with ticket sales in a few tough-to-sell upper-deck outfield sections of its waterfront ballpark for 2009: cost based on demand.

The walk-up sales price for up to about 2,000 seats could even go up or down on game day.

Granted, this is only an experiment in San Francisco, but what if the St. Louis Cardinals decided to do this as well? I would love for you to comment.

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