Voice For Liberty

Tag: Wichita city council

  • Kansas and Wichita quick takes: Monday December 6, 2010

    Cato scholar to speak on economic freedom. Friday’s meeting (December 10) of the Wichita Pachyderm Club features noted Cato Institute scholar, Principal Attorney at the Pacific Legal Foundation, and author Timothy Sandefur. He will discuss his recent book The Right to Earn a Living: Economic Freedom and the Law. A description of the book at Amazon.com reads: “America’s founders thought the right to earn a living was so basic and obvious that it didn’t need to be mentioned in the Bill of Rights. Yet today that right is burdened by a wide array of government rules and regulations that play favorites, rewrite contracts, encourage frivolous lawsuits, seize private property, and manipulate economic choices to achieve outcomes that bureaucrats favor. The Right to Earn a Living charts the history of this fundamental human right, from the constitutional system that was designed to protect it by limiting government’s powers, to the Civil War Amendments that expanded protection to all Americans, regardless of race. It then focuses on the Progressive-era judges who began to erode those protections, and concludes with today’s controversies over abusive occupational licensing laws, freedom of speech in advertising, regulatory takings, and much more.” … Of the book, Dick Armey said: “Government today puts so many burdens and restrictions on entrepreneurs and business owners that we’re squandering our most precious resource: the entrepreneurial spirit and drive of our people. Sandefur’s book explains how this problem began, and what steps we can take to ensure that we all enjoy the freedom to pursue the American Dream.” … The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club.

    Success factor for liberals identified. On last night’s installment of The Right, All Along: The Rise, Fall & Future of Conservatism, economist Arthur Laffer issued this assessment of the presidency of Bill Clinton: “Two groups I love are principled conservatives and unprincipled liberals. And Bill Clinton I viewed as an unprincipled liberal. And he did one of the best jobs — one of the best presidents we’ve ever had.” It’s an interesting observation by Laffer that for liberals to have success, they must be unprincipled.

    Joshua Blick for Wichita City Council. A website for a candidate for Wichita City Council district 4 is up and running. Joshua Blick’s site says: “Joshua Blick is an active leader in District 4; he is the President of his neighborhood association and a local business owner. Joshua also passionately supports the growth and sustainability of new jobs for Wichita, and improving the quality of living for every resident in this great city.” District 4 covers the southwest side of Wichita. The incumbent council member, Paul Gray, may not run again because of term limits.

    Washington is why the economy is not growing. Mark Tapscott of the Washington Examiner runs through the reasons why the economy is not growing: “On every front, the federal government is creating more investment-killing tax uncertainty, issuing endless pages of new bureaucratic regulations on the economy, and preventing firms from taking actions that could create hundreds of thousands of new positions and kick-start a muscular recovery with real legs. … Obama is also tightening the federal bureaucracy’s regulatory straightjacket on economic growth. As the Heritage Foundation reported a week before the election, the hidden tax of regulation costs at least $1.75 trillion annually. … Then there is the Obama Permitorium on energy exploration and production here in the United States, which threatens even greater long-term damage to the economy’s ability to generate new jobs and growth. … Instead, Obama is spending billions of tax dollars to subsidize alternative energy programs that cannot possibly replace the energy produced by oil, coal or natural gas until 2030 at the earliest.” The full article is Mark Tapscott: Washington is why the economy is not growing.

    Rasmussen polls from last week. Current Congress not appreciated: “Most voters continue to give this Congress poor marks in its closing days, and they still don’t believe the national legislature has passed anything to significantly improve life in America.” Full story here. Ability of Congress to substantially cut spending is doubted, especially by Republicans. See Most Voters Don’t Expect Big Spending Cuts From New Congress. About half of Americans believe that lenghty unemployment benefits increase the number of unemployed people. See Americans Question Whether Extended Unemployment Benefits Do More Harm Than Good. Almost half say repeal of Obamacare would be good for the economy. See Health Care Law.

    Kansas Democrats not quite dead. Tim Carpenter of the Topeka Capital-Journal looks at the results of the November election in Kansas and the future for Kansas Democrats. An important process to watch is reapportionment, when new legislative districts will be drawn: “The reapportionment debate is likely to have an urban vs. rural character as districts are reconfigured to correspond with population growth in urban counties, especially Johnson County, and erosion of residents in rural areas of the state. The math isn’t clear yet, but results of the 2010 Census could trigger loss of two rural Senate districts and six rural House districts.” As for the future of Democrats, two observers say “They are back in the Stone Ages” and “We’re seeing a definite balance-of-power shift.” One observer warns that breakdown of the “union of Republican social and economic conservatives” could be an opening for Democrats and moderate Republicans. See KS Dems: Weaker, but not dead.

    Young Republicans group started. Lynda Tyler of Kansans for Liberty is shepherding a new group of young Republicans. Writes Lynda: “Do you know a high school student, child, grandchild in the teen years who is interested in learning more about politics and getting involved? Perhaps you would like to get them involved. Chase Blasi has started the Sedgwick Teen Age Republicans group known as STARS. We are sponsoring them and would like to help the group grow so see below for details on their next meeting.” Lynda is hosting a Christmas Party for this group. Write to her at lyndaty@swbell.net for more information.

  • Kansas and Wichita quick takes: Sunday December 5, 2010

    Wichita City Council this week. Tuesday’s city council meeting has a busy agenda. First is the Community Improvement District policy, which was deferred from November 2. I believe the major issue to be resolved is requiring signage on stores or businesses that will be charging extra sales tax. It’s possible there might be a majority on the council who want the warning signs. Developers are opposed, saying that notification in advance drives off customers. Gee, who could have known that people don’t like paying taxes? The city is proposing a web site that identifies all CIDs, but this is a weak form of consumer notification that is pretty much useless, as correctly identified by council member Lavonta Williams. … There’s an appeal of a ruling that a woman has three horses on her property when rules allow one. … Several companies are requesting industrial revenue bonds and relief from paying property taxes: Bombardier Learjet, Cessna, and Coleman. … Go Wichita Convention & Visitors Bureau will ask that its contract with the city be renewed. This is one of the organizations that has refused to fill my records requests, stating that they are not a “public agency” as defined in the Kansas Open Records Act. Go Wichita is budgeted to receive $2,121,390 from the city this year. The agenda report is available at this link.

    DAB agendas missing. On Monday, four of the city’s six District Advisory Boards will meet. As of this moment, three of these boards don’t have their agenda available on the city’s website. Only the DAB for district 6 has its agenda available on the city’s website: The lack of availability of DAB agendas is an issue that the city should work to resolve.

    Kansas legislators learn about education reform. Kansas Senator Julia Lynn reports on a trip by several legislators: “Five Kansas legislators received a wake up call after attending the National Summit on Education Reform in Washington DC. The big take away? Kansas is embarrassingly behind on education reform initiatives including the broader concept of choice, charter school legislation, tax credit and special needs scholarship programs and a myriad of educational technology and digital learning applications. … The focus of the conference centered on the need for nationwide reform calling out our present system of public education as factory model driven by the interests of adults and a monopoly that is neither efficient nor responsive. Burdened by outdated and ineffective systems like tenure, collective bargaining, and social promotion, our system is outdated and ineffective. Worse, the model is not capable of educating diverse children to be successful in a competitive world. Governor Jeb Bush, convener of the conference and founder of the Foundation for Excellence in Education, stated in his opening remarks that ‘We are at a tipping point. We must move towards reform that puts the needs of the child first through customization of education to the diversity of the child’. … Reform of our system will not occur overnight nor will it be comfortable. It will require hand-to-hand combat with those vested in the old factory model system so corrupted by interests of teachers unions and the education establishment.” It is not news to readers of this site that Kansas is lagging in education reform. See Florida school choice helps public schools, for example.

  • Wichita trash cooperative: gateway to mandatory recycling?

    Opposition to a proposed trash pickup cooperative in Wichita focuses mostly on two issues: the free market, and specific problems with the program.

    Conservative city council members — Paul Gray and Sue Schlapp in this case — advocate for a free market in trash collection. I appreciate that. But it is confusing to hear them advocate for a free market in trash collection when at the same time they vote for big-spending economic development programs that don’t work.

    Brent Wistrom’s Wichita Eagle article Questions pile up as Wichita eyes trash plan does a fine job of laying out the unanswered questions and issues left to be resolved — if they can be solved.

    These issues are important. But here’s the biggest reason to oppose this plan: it’s a gateway to mandatory recycling in Wichita.

    Recycling, while held up by its supporters as a moral imperative if we care anything about the planet, is a gigantic waste of resources. There are only a few settings in which recycling makes any sense at all. Automobiles and commercial cardboard are two such situations.

    In almost any other area, recycling uses more resources than it saves, despite the claims of its proponents.

    We need to look no farther than economics to learn the true value of an activity or a resource. In the case of recycling — except for the narrow examples mentioned above — most people have to pay to have their recycled goods hauled away. Or, they must incur costs themselves in hauling them somewhere that will accept them.

    Yes, Waste Connections in Wichita has a recycling program that pays people to recycle. Or does it? The program works this way: First, people pay $3.75 per month for recycling bins and their pickup twice monthly. By filling the recycling bin people can earn points which they may redeem for rewards.

    The roundabout approach to paying people to recycle only highlights the unfavorable economics of recycling. Why doesn’t Waste Management simply pay people for their recycled goods? Or why don’t they pick them up for free?

    The fact that Waste Management won’t engage in a straightforward transaction with its recycling customers allows the company to appear to be politically correct towards recycling, while at the same time escaping the fact that household recycling simply does not pay. Here’s Daniel K. Benjamin explaining the economics of curbside recycling in Eight Great Myths of Recycling:

    The numbers I have presented here avoid these problems and make clear that, far from saving resources, curbside recycling typically wastes resources — resources that could be used productively elsewhere in society.

    Indeed, a moment’s reflection will suggest why this finding must be true. In the ordinary course of everyday living, we reuse (and sometimes recycle) almost everything that plays a role in our daily consumption activities. The only things that intentionally end up in municipal solid waste — the trash — are both low in value and costly to reuse or recycle. Yet these are the items that municipal recycling programs are targeting, the very things that people have already decided are too worthless or too costly to deal with further. This simple fact that means that the vast bulk of all curbside recycling programs must waste resources: All of the profitable, socially productive, wealth-enhancing opportunities for recycling were long ago co-opted by the private sector.

    Commercial and industrial recycling is a vibrant, profitable market that turns discards and scraps into marketable products. But collecting from consumers is far more costly, and it results in the collection of items that are far less valuable. Only disguised subsidies and accounting tricks can prevent the municipal systems from looking as bad as they are.

    That’s right: The sober assessment of the price system is that in the context of households, recycling is a waste of resources. Although if people want to pursue it as a pastime or hobby, I have no objection.

    Nonetheless, supporters of recycling such as Wichita City Council member Janet Miller still believe in the false moral imperative of recycling. At last week’s workshop on Wichita trash, she said “There is only a finite amount of space on earth to bury stuff. At some point there’s not going to be any more room to bury stuff.”

    The fact is that landfills occupy a minuscule fraction of available space. We have plenty of space for trash.

    But the misinformed or uninformed attitude of Miller and a few others on the council — and maybe some bureaucrats too — is that recycling activity by Wichitans must increase, no matter how much of a waste of time it is.

    Answer this question: once Wichita has a mandatory, city-controlled and city-regulated trash pickup process in place, what’s to stop city hall from mandating that we recycle?

    Nothing, as far as I can tell.

    That’s the best reason for opposing takeover of our trash system by the city.

  • Kansas and Wichita quick takes: Monday November 29, 2010

    Louisville success factor may be gone. The secret sauce behind redevelopment of downtown Louisville, Kentucky may no longer be available to cities attempting to replicate Louisville’s success, such as it is. The Washington Post reports in the article Sen. Mitch McConnell’s earmark power credited for revitalizing Louisville: “The once grand downtown of this city on the Ohio River is shabby, as the nation’s old downtowns tend to be. Magnificent tall cast-iron-fronted buildings sit empty. So do historic brick tobacco warehouses, surrounded in razor wire, tagged with graffiti. But the downtown of Kentucky’s largest city also has a spectacular redeveloped waterfront featuring bike paths and open vistas, the spanking-new KFC Yum Center sports arena, and a medical complex of several hospitals that employ nearly 20,000 people, treat tens of thousands and conduct cutting-edge research. This resurgence is a result of civic vision, pride, tenacity — and the impressive earmark performance of Louisville’s Slugger: Mitch McConnell (R), Kentucky’s longest-serving senator and the powerful Senate minority leader.” … Louisville is cited as a success story by Wichita’s planners. But the earmark money that helped Louisville is probably not available to Wichita in the near term, and may not ever be available again, at least as it has been in the past. Plus, Kansas doesn’t have a senator with the clout of McConnell, and not one that calls Wichita home. McConnell lives in Louisville.

    Loss of earmarks lamented. In the Wichita Eagle article Earmark ban could kill some Kansas projects, well, the title pretty much describes the problem according to some. In particular, the town of Augusta would have had a difficult time affording a levee if not for earmarks. It is mentioned that earmarks are about one percent of the total federal budget. One comment writer, defending the process, wrote “Earmarks return our money to us.” To which we must counter: Why send the money away to Washington in the first place, only to have to fight to get it back?

    “No” to citizen-powered democracy. The Newton Kansas argues that a “practical” state like Kansas shouldn’t let its citizens place propositions on the ballot through the petitions process. The editorial says that the California budget process has led to “serious economic turmoil in that state.” It doesn’t explain why, but the writer is probably referring to the fact that the California budget must be passed by a two-thirds majority of both houses of the legislature, rather than by a simple majority as in Kansas. The editorial also says that ballot measures induce spending by proponents and opponents, and some money may come from out of state. Special interests may get involved, too. And administrative costs of adding “pages” to the ballot must be paid for, too. … I must inform the Newton Kansas that the Kansas statehouse is already overrun by special interests, out-of-state interests already spend a lot on our elections and lobbying, and anyone who has observed our legislative process up close would not use the word “practical” to describe it. … The primary reason the ruling class don’t like the citizen initiative process is that one of the first things citizens may do is impose term limits on their elected officials.

    Wichita IMAX may not be exclusive. In another installment of his series of love letters to Wichita theater operator Bill Warren, Wichita Eagle reporter Bill Wilson reports on the construction of Warren’s new theater in west Wichita. On Warren’s plans for his theaters in Moore, Oklahoma (part of the Oklahoma City metropolitan area), Wilson’s article reports: “IMAX? ‘Possibly, and a few other surprises down there,’ Warren said.” … Earlier this year when Warren applied to the Wichita City Council for favored tax treatment for this theater, he implied that without the city’s largesse, he’d take his IMAX theater elsewhere. In his remarks at the council meeting where the tax favoritism was approved, Wichita Mayor Carl Brewer bought into the myth that there can be only one Warren IMAX theater when he said: “A lot of other cities want this IMAX … they’re on the internet watching this city council meeting to see what we’re going to do because they’re going to make a bid for this IMAX.” … City officials said the theater would be a tourist draw from as far away as Texas. … With another Warren IMAX possibly being built nearby, Wichitans and the mayor ought to agree that we were mislead, and Wilson ought to report this in the pages of the Wichita Eagle. This entire episode is more evidence that the Wichita City Council will believe almost anything told to them, as long as it involves the possibility of economic development and jobs.

    Sheriff to address Pachyderms, guide tour. This Friday (December 3) the Wichita Pachyderm Club features Sedgwick County Sheriff Robert Hinshaw as the presenter. His topic will be “An overview of the duties of the office of sheriff.” Then, from 2:00 pm to 3:00 pm Sheriff Hinshaw will guide Pachyderm Club members on a tour of the Sedgwick County jail. I’ve had the sheriff’s tour before, and it is very interesting. The public is welcome at Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club.

    Wichita City Council this week. As this Tuesday is the fifth Tuesday of a month, the Wichita City Council will not meet. Also, the Sedgwick County Commission will not meet this week.

    No free market for health care. A letter in today’s Wichita Eagle claims love for the free-market economy, but not for the provision of health care. The writer claims that free markets for medical services cannot work, because the transactions are one-sided, in that the patient does not have freedom of choice. The writer also cites government success in providing military and education that “improve our society’s overall well-being,” so government should provide health care, too. … I might suggest to the letter writer that we first attempt a free market in health care before we decide it doesn’t work. Most health care is paid for by someone else, and many people who have health insurance through their employers don’t have a choice in the matter. It is this regulation that causes many of the problems in the market, such as it is, and it is nothing resembling “free.” … Citing success of government education and military may not be persuasive to those who see performance of American schools on a long downward slide compared to other countries.

  • At Wichita planning commission, downtown plan approved

    At last week’s meeting of the Wichita Metropolitan Area Planning Commission, members were asked to approve the Goody Clancy plan for the revitalization of downtown Wichita. I appeared to make sure that commissioners were aware of some of the highly dubious data on which the plan is based.

    Listen to my remarks to the planning commission.
    [powerpress]

    In particular, I presented to the commission the Walk Score data for downtown Wichita, and how Goody Clancy relied on this obviously meaningless data in developing plans for downtown Wichita.

    Walk Score is purported to represent a measure of walkability of a location in a city. Walkability is a key design element of the mster plan Goody Clancy has developed for downtown Wichita. In January, David Dixon, who leads Goody Clancy’s Planning and Urban Design division, used Walk Score in a presentation delivered in Wichita.

    Walk Score is not a project of Goody Clancy, as far as I know, and David Dixon is not responsible for the accuracy or reliability of the Walk Score website. But he presented it and relied on it as an example of the data-driven approach that Goody Clancy takes.

    Walk Score data for downtown Wichita, as presented by planning firm Goody ClancyWalk Score data for downtown Wichita, as presented by planning firm Goody Clancy. Click for a larger view.

    The score for 525 E. Douglas, the block the Eaton Hotel is in and mentioned by Dixon as a walkable area, scored 91, which means it is a “walker’s paradise,” according to the Walk Score website.

    But here’s where we can start to see just how bad the data used to develop these scores is. For a grocery store — an important component of walkability — the website indicates indicates a grocery store just 0.19 miles away. It’s “Pepsi Bottling Group,” located on Broadway between Douglas and First Streets. Those familiar with the area know there is no grocery store there, only office buildings. The claim of a grocery store here is false.

    There were other claimed amenities where the data is just as bad. But as Larry Weber, chairman of the Wichita Downtown Development Corporation told me a while back, Walk Score has been updated. I should no longer be concerned with the credibility of this data, he told me through a comment left on this website.

    He’s correct. Walk Score has been updated, but we should still be concerned about the quality of the data. Now for the same location the walk score is 85, which is considered “very walkable.” The “grocery store” is no longer the Pepsi Bottling Group. It’s now “Market Place,” whose address is given as 155 N. Market St # 220.

    If Mr. Weber would ever happen to stroll by that location, he’d find that address, 155 N. Market number 220, is the management office for an office building whose name is Market Place.

    It’s not a grocery store. It’s nothing resembling a grocery store. Now I’m even more concerned about the credibility of this data and the fact that Goody Clancy relied on it. I’m further concerned that Weber thinks this is an improvement, and that he feels I should not be concerned.

    As I reminded the commission members, David Dixon and other Goody Clancy staff did not create the Walk Score data. But they presented it to Wichitans as an example of the data-driven, market-oriented approach to planning that they use. Dixon cited Walk Score data as the basis for higher real estate values based on the walkability of the area and its surrounding amenities.

    But anyone who relies on the evidence Dixon and Goody Clancy presented would surely get burnt unless they investigated the area on their own.

    And since this January reliance on Walk Score was made after Goody Clancy had spent considerable time in Wichita, the fact that someone there could not immediately recognize how utterly bogus the data is — that should give us cause for concern that the entire planning process is based on similar shoddy data and analysis.

    A member of the planning commission asked that Scott Knebel, a member of the city’s planning staff who is the city’s point man on downtown planning, address the concerns raised by me.

    Knebel said “In terms of the Walk Score, I suspect Mr. Weeks is absolutely right, it probably is a relatively flawed measurement of Walk Score.” He added that the measurement is probably flawed everywhere, downtown and elsewhere. He said that Goody Clancy used it “as an illustration of the importance of walkability in an urban area.” He added, correctly, that Goody Clancy tied it to premiums in real estate values in areas that are mixed use and walkable.

    In the end, all commission members voted in favor of accepting the plan. The Wichita City Council is scheduled to hear this matter on December 14th.

  • Kansas and Wichita quick takes: Monday November 22, 2010

    Wichita city council this week. This week is workshop only, meaning that legislative action is limited to consent items. These items are voted on in bulk, unless a council member wants to “pull” an item for separate discussion and voting. Generally consent items are thought to be non-controversial, at least by the person who creates the agenda. This week one consent item may cause a bar to lose its license, as Hurst Laviana reports in the Wichita Eagle. Start time is 9:30 am instead of the usual 9:00 am.

    Workshop to discuss Wichita trash. Tuesday’s Wichita city council meeting will have a workshop discussing a plan for a Wichita trash haulers’ cooperative and for a recycling plan. Brent Wistrom and Deb Gruver report in the Wichita Eagle. Conservatives on the council who favor big government — Jeff Longwell, Jim Skelton, and Sue Schlapp — seem to favor the proposal. I guess it is inevitable. But I worry that if we start relying on government to manage a simple thing like trash for us, the danger is that government will want to expand its realm of responsibility to providing things like water, jobs and economic development, employee training for business, housing for low-income people, golf courses, art museums and culture, transit, ice skating rinks, airports, dances for seniors, planning services, education, retirement plans, and health care.

    Candidate for Wichita mayor noticed. Bob Nelson describes himself this way: “I am a 36 year old lawyer, technical consultant, and aviation industry professional. I am a long time Republican and conservative.” His website –maybe still in developmental state, but nonetheless visible to the world — is Bob Nelson for Mayor.

    Former Wichita school chief in news. Former USD 259, the Wichita public school district superintendent Winston Brooks, now head of Albuquerque public schools, is in the news. An administrator alleges a hostile work environment and has been placed on leave with pay. It’s not the first time highly-paid administrators have been placed on paid leave for long periods since Brooks took over. The meaning of this to Wichita? Many of the current members of the Wichita school board loved Brooks and were sorry to see him leave Wichita.

    Charter school studies examined. Carl Bialik, in a “The Numbers Guy” article in the Wall Street Journal, writes about the “confusing report cards” that charter schools have received in various studies. Some studies report glowing results for charters, and other report poor results as compared to regular public schools. Bailik does report one finding: “There is some consensus among these studies. Researchers generally have found that charter schools in low-income, urban areas boost test scores, while suburban charter schools in wealthier areas don’t.” Mentioned by one source quoted in the article is one of the best attributes of charter schools: they can’t force students to attend, so poor ones close down, unlike poor public schools.

    Rasmussen polls from last week. “Talk about low expectations” was the start of the email message from Rasmussen Reports. Examples: “Just 26% of voters now think the country is heading in the right direction. This finding continues to fall since Election Day and is the lowest reading since mid-March, largely because Democrats are down but sentiments among Republicans and unaffiliated voters haven’t moved.” (Right Direction or Wrong Track) … “A plurality (47%) of voters believes America’s best days have come and gone, a number that has remained fairly constant since the beginning of the year.” … “Thirty percent (30%) of homeowners say the value of their home is less than what they still own on their mortgage.” … “Belief that a home is a good buy for a family remains at an 18-month low.” It’s all at What They Told Us: Reviewing Last Week’s Key Polls .

  • The problem with public-private partnerships

    As the City of Wichita gets ready to undertake the revitalization of downtown Wichita, we need to make sure we understand the many problems inherent in the “public-private partnership.” The following commentary by Fred L. Smith, Jr. President of the Competitive Enterprise Institute originally appeared on OpenMarket.org, and it does an excellent job explaining these problems. Some of these I and others have brought to the attention of the Wichita City Council.

    The Problem With Public-Private Partnerships

    by Fred Smith

    In our half-political, half-private world, there are a growing number of public-private partnerships. Almost nothing in the current world can be done without implicit or explicit permission by local, state, federal or (increasingly) global regulators. But the term, public-private is normally used to denote the joint funding and, sometimes, joint management of some “public” facility — streets, water systems, and so forth.

    The rationale for “public” investments is that they are “public” goods, whose benefits are not adequately captured by the provider. There are many problems with this concept — in practice, it means that someone wants something and nobody seems to be providing it. Note, from a Coasian/Schumpeterian free market perspective, these are exactly the “lures” that lead mankind to pursue the unexplored entrepreneurial paths to the future. Rushing in with government assistance distorts and preempts those creative forces.

    Sometimes, public-private partnerships can be a transitional step toward privatization. The concept of “corporatization” that is, reorganizing an activity now performed by some political agency so that its inherent economic realities become more understandable and transparent, may be a useful step in privatizing the activity.

    In most cases, however, public-private partnerships are simply a means of using tax breaks, regulatory easing, taxpayer support and so forth to subsidize some private activity: stadia, light and heavy rail — mass transit generally, sometimes (for God’s sake) hotels and malls, downtown development districts. Where I live in Washington, D.C., businesses are allowed to add a “special tax” to pay for services the city supposedly pays for with normal tax revenues. Such public-private partnerships suffer from the full array of government failures:

    • Log-rolling and pork-barrel politics: I’ll vote for your PPP if you vote for my PPP.
    • Weakened market tests: resources are devoted to a project not because it benefits the citizenry but rather because it benefits a powerful interest group and/or because a creative referendum entices a majority of voters to support their special interests.
    • Weaker Management: Absent market tests, managers are less motivated to find that mix of services and creative array of financing tools to ensure that it proves “profitable” (that is, a rational allocation of capital). Roads, even charter schools, etc all have suffered here immensely.
    • Lack of innovation: No institution in the private world can allow itself to stagnate – the creative forces of destruction will soon make it obsolete. PPP managers face much weaker innovative forces — if things go wrong, they can always appeal to their “public” nature for taxpayer bailouts.
    • Corruption: Crony capitalism abounds in the PPP world.
    • Faddism: Markets sometimes go on kicks — the tech boom, for example — but these soon collapse. Governments go on kicks for many decades — “renewable energy” and “mass transit” being perhaps the best examples but “magnet” investments in downtown malls, stadia and convention centers are perhaps even more persistent ones. Before Walmart became a PPP, it did more for consumers than all the PPP malls in the world.
    • Crowding Out: Capitalism plays a critical role in allocating capital — planting the seeds for our future. That is a very difficult task, one made much more difficult by the existence of PPPs. Government already seizes a disproportionate amount of our wealth and the PPP concept allows it to further distort the allocation by market forces. I’ve argued that the genius of the Progressives in the late 19th century was to preempt or push large sectors of the emerging future (the environment, schools, electromagnetic spectrum, infrastructure, welfare, the medical world) into the political world. The PPP concept simply exacerbates this tendency.

    Our challenge is to find ways to expand the private sector and only very rarely does the PPP concept do that. It allows people to be sloppy — “That would never pay for itself but it obviously has value, thus, we need some government help. Let’s not make it an honest government function, let’s make it a Public-Private partnership and get the best of all possible outcomes!!”

    This Mixed Economy model is less honest than true socialism (government acting directly) for many reasons. If as is often the case, things go wrong, it will be capitalism — not government — that will be blamed. PPP activities are less subject to consumer sovereignty (look at airports or schools). The true costs of the activity don’t appear on government budgets — making it appear that PPP arrangements are “bargains.”

  • Kansas and Wichita quick takes: Monday November 15, 2010

    This week at Wichita city council. An Old Town bar faces the possibility of losing its drinking establishment license and two apartment complexes seek city support in the application for housing tax credits. … The old Coleman Company Plant at 250 N. St. Francis faces an obstacle on its path to demolition: The Wichita Historic Preservation Board found that “the demolition of the structure and construction of a surface parking lot does encroach upon, damage, or destroy the environs of the state and national register listed properties by removing distinctive buildings, and altering spatial relationships that characterize the environs.” There were other reasons the board found to oppose the demolition. The building was deemed to be a “character-defining structure.” Furthermore, it is located within 500 feet of historical districts and historical properties. This is the so-called “halo” law, where if your property is located with the environs of another historic property, there are restrictions on what you can do with your property. … In a matter added to the agenda at the last moment, the city will decide whether to pay a Wichita man $925,000 to settle charges that he was injured by actions of the Wichita police department.

    Planning commission to look at downtown plan. This week the Metropolitan Area Planning Commission will have a public hearing on the Goody Clancy plan for the revitalization of downtown Wichita. The meeting is Thursday at 1:30 pm in the tenth floor meeting room at Wichita city hall. The agenda for the meeting is here: Metropolitan Area Planning Commission Agenda, November 18, 2010.

    Kansas tax policy. Various proposals for modifying Kansas’ tax system are floating about. One aspect in particular that is gaining attention is the multitude of sales tax exemptions, where various classes of economic activity or specific named organizations do not have to pay sales tax on their purchases. In Sunday’s Wichita Eagle Rhonda Holman wrote “selected taxpayers are saving $4.2 billion a year, worsening the tax burden for everybody else.” This number is highly misleading. As I explained earlier this year in Kansas sales tax exemptions don’t hold all the advertised allure: “Analysis of the nature of the exemptions and the amounts of money involved, however, leads us to realize that the additional tax revenue that could be raised is much less than spending advocates claim, unless Kansas was to adopt a severely uncompetitive, and in some cases, unproductive tax policy.” … An example is the exemption whereby manufacturers don’t pay sales tax on component parts used in producing final products, with an estimated $2,248.1 million in lost sales tax revenue. If Kansas were to eliminate this exemption, we could very quickly say goodbye to all our manufacturers. … Another example is government not paying sales tax on its purchases, worth an estimated $449.9 million in lost revenue. Reporting from Kansas Reporter on a special committee formed to look at Kansas tax policy is at Kansas tax reform waits on Brownback plans, lawmakers say.

    “Big Ditch” builder to address Pachyderms. At this Friday’s (November 19) meeting of the Wichita Pachyderm Club, M. S. “Mitch” Mitchell will speak on the topic “The Big Ditch, 60 Years Later.” Otherwise known as the Wichita-Valley Center Flood Control Project, the project is responsible for flood control in Wichita, and Mitchell was there at its building. The public is welcome at Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club.

    Why I will not teach to the test. A California public school teacher explains why he will not “teach to the test” despite that state’s emphasis on “value added” teacher assessments: “The state tests being used to evaluate student progress — and, in turn, the effectiveness of teachers — virtually ensure mediocrity. … As teachers, we want to know if we are doing a good job. We want to know our strengths and our weaknesses. We welcome accountability. Frankly, I am embarrassed by how hard teachers’ unions have fought to protect weak teachers. It is shameful. But scoring all teachers based on a system that pushes educators to produce memorizers instead of thinkers is not the answer. Worse, it actually rewards mediocre teaching.” No doubt about it, evaluating teachers in public schools is a problem. Being insulated from competition, school administrators may evaluate teachers on all sorts of things except what really matters: how well they do their job. See In public schools, incentives matter.

    Tracking federal tax dollars. According to the Wall Street Journal: “A recent Kaiser Family Foundation survey found that 40% thought foreign aid was one of the two largest federal-budget expenses. In reality, Uncle Sam spends $14 on Medicare — itself the second-largest expense — for every dollar spent on foreign aid.” To help citizens understand how federal money is spent, the Journal highlighted an analysis by Third Way, which describes itself as “the leading moderate think-tank of the progressive movement. Top categories for spending? Social Security, Medicare, Medicaid, and interest on the national debt. Then some several categories of military spending, which if consolidated, would move higher. The Journal article is Tracking Your Federal Tax Dollars ; the ThirdWay study is at Tax Receipt: Knowing What You Paid For.

    Rasmussen key polls. “Lame duck” session of Congress: “Most voters think Congress should wait until the new members take office in January before tackling any major new legislation, but even more expect Democrats to try to pass major legislation anyway in the upcoming lame-duck session.” More here. … Support for investigation of Obama Administration is not high; breaks down on party lines: Voters Have Mixed Feelings About GOP Plans to Investigate Obama. But voters support investigating the new health care law passed earlier this year: Most Voters Favor Investigation of Health Care Law’s Potential Impact.

    One more vote. The Center for Individual Freedom has launched an initiative called “The 60% Solution,” a proposal for a Constitutional Amendment requiring: a federal balanced budget annually, a 60% vote in both the U.S. House and U.S. Senate to raise the debt ceiling, and a 60% vote in both the U.S. House and U.S. Senate to increase taxes or impose new taxes. More information may be found at One More Vote, the name referring to the fact that Congress in 1995 fell just one vote short of endorsing a balanced budget amendment and sending it to the states for ratification. But CFIF warns against a simple balanced budget amendment: “A balanced budget amendment, in the wrong hands or crafted in the wrong form, can unfortunately provide a vehicle for big-government advocates to rationalize higher taxes.”

    Wichita Eagle opinion line.“We have term limits, via voting. We need better-informed voters. Voters need to educate themselves as to the issues and the people who are running for certain offices.” This sentiment is repeated after each election. The fact that voters, at least according to this opinion, don’t inform themselves year after year is a strong argument for term limits.

  • Kansas and Wichita quick takes: Friday November 12, 2010

    Dilts drops campaign for city council. Jason Dilts has announced that he is ending his campaign for a position on the Wichita City Council. He had been running for the district 4 position currently held by Paul Gray, who is precluded from running again by the city’s term limit law. While Dilts’ politics are liberal and might have been expected to depart from those of the incumbent, Gray voted for nearly every spending measure that came before the council. … Dilts’ departure leaves this district without any publicly declared candidates. The filing deadline for city and school board elections is January 24, 2011. The primary election is March 1, and the general election is on April 5. These elections are non-partisan, meaning that candidates run without party identification, although everyone who cares knows who belongs to which party. In the primary, the top two vote-getters advance to the general election.

    OTB: One-term Barack. Larry Sabato of the University of Virginia Center for Politics predicts a dim future for President Barack Obama and his chances for reelection. Sabato’s most recent “Crystal Ball” column starts off with “The wreckage of the Democratic Party is strewn just about everywhere. President Obama’s carefully constructed 2008 Electoral College breakthrough is now just broken, a long-ago memory of what might have been a lasting shift in partisan alignment.” After presenting the evidence, Sabato concludes: “There’s only one logical conclusion to be drawn: President Barack Obama is down for the count, will have an early lame duck presidency, and will be out of the White House in two years.”

    Project Downtown: The Master Plan for Wichita. The “final draft” version of the plan for the revitalization of downtown Wichita is now available. Click on Project Downtown: The Master Plan for Wichita. Perhaps after the “final draft” comes the “first permanent version?” Next week the Metropolitan Area Planning Commission will hold a public hearing to consider adoption of the plan. The meeting is at 1:30 pm Thursday Nov. 18, in the tenth floor conference room at Wichita City Hall, 455 N. Main. This is an opportunity for the public to comment on this project. I’m thinking I’ll be there.

    Wichita city hall garage closing. Letter to Wichita Eagle, in part: “The bureaucrats reserve for themselves convenient services, while those they are supposed to serve do without and are exposed to parking-meter violations and parking fines. Wichita government has a history of poor service to its citizens. Recent examples include the mismanagement of the Wichita water utility and resulting increases in our water bills, and the increased fees assessed to homeowners for home protection alarms. Yet we see good-old-boy deals on below-market rate loans and tax incentives to every project that comes before city officials, worthy or not.”

    Some Kansas counties voted against judges. Last week’s elections in Kansas offered voters the opportunity to vote whether several Kansas Supreme Court and Kansas Court of Appeals justices should be retained in office. Voters decided to retain all by roughly a two-to-one margin. But some Kansas counties voted against retaining the judges. In particular, some western Kansas counties, Cherokee county in extreme southeastern Kansas, and Coffey county in east-central Kansas voted against the judges. A Kansas Watchdog story asked Fort Hays State University political science professor Chapman Rackaway for his analysis. He said “I think you’re seeing more an expression of a philosophy than a particular agenda against these particular justices.” He noted “A more libertarian streak runs strong in western Kansas, and along with that comes a philosophy of ‘throw the bums out.’” He also says that “I think if you ran a correlation of votes you’d find that the strongest Libertarian and Republican results would come from some of the counties you’ve pointed out. In the end, then, this is more about general change than it is a specific policy or judge.”

    Health insurance profits. Watching liberal media so you don’t have to: Cenk Uygur, who appears on the liberal television network MSNBC, reported on the profits of health insurance companies. He said that health insurance companies earned $9.3 billion in profits for the first three months of the year, up 41 percent in the last year, adding “Do we really want to leave decisions about our health and our lives to a corporation whose sole purpose is to make money off of us? They get billions in profits by taking in more money from us than they pay out for our care. I’m not sure that makes a lot of sense.” First: citing a number like these profit figures without providing context means very little. Health insurance company profits — in terms of the industry’s size — have been low in recent years. Second: Have the insurance companies figured out how to the “game” the Obamacare plan? It wouldn’t be the first time large companies have co-opted government regulation for their own profit. Third: Do you — as does Uygur — trust the government to make decisions regarding your health care? The idea of a benevolent government paternally caring for our best interests is dangerous. Profit is a more reliable motive. The problem is that health insurance companies compete in a highly regulated market, where the profit motive is not fully able to express itself. Contrast the market for automobile insurance, where companies compete vigorously for business. In that industry, complaints of companies refusing to pay legitimate claims are rare. That’s because with auto insurance, consumers have a wide variety of companies to select from. That’s not the case with health insurance, where the choice for many people is made by their employer. Dissatisfied consumers have little ability to switch to another company.

    KansasOpenGov.org revamped. The Kansas Policy Institute announces a major revision of its government transparency website KansasOpenGov.org. I’ll have a longer article about this website next week.