Feeds:
Posts
Comments

Posts Tagged ‘Local government’

San Francisco used to be famous for cable cars.

Now it’s getting well known for its “poop patrol” and maps that warn people about the ubiquitous presence of human excrement.

Why are people defecating on city sidewalks? Because there’s a major problem with government-created homelessness thanks to rent control and zoning restrictions.

And homelessness gives us our topic for today because we have an astounding example of government waste.

More specifically, a story from the San Francisco Chronicle nicely summarizes the efficiency and competence of the public sector.

An experiment to put a homeless shelter in a San Francisco public school gym has so far been a costly failure, …costing taxpayers about $700 for each person who spends the night. …only five families have used the facility at 23rd and Valencia streets in the Mission, with an average occupancy of less than two people per night… The facility is completely empty several nights each month, Kositsky said, although shelter workers are on-site seven nights a week and through holidays, whether anyone shows up or not.

I’ve been to San Francisco many times. Hotels are not cheap.

But I’ve never had to pay anywhere close to $700 per night.

Though maybe this San Francisco program is a bargain since it costs the state $1.3 million per year to house a homeless person.

So why did the city create this boondoggle? For the same reason that many programs are created. Politicians and bureaucrats exaggerated about a problem.

Supervisor Hillary Ronen and the school’s administrators…advocated for the shelter, saying there were dozens of families facing homelessness at Buena Vista Horace Mann who needed someplace to sleep. The principal at the time, Richard Zapien, said he had identified 60 families in unstable housing.

But here’s a passage that captures the real story.

This program was created to funnel money to a non-profit group and I wouldn’t be surprised to learn that officers of this group are supporters (campaign cash, get-out-the-vote, etc) of the politicians who created the program.

The city has been paying the nonprofit Dolores Street Community Services $40,000 per month to manage the shelter, and if it were to be successful, would spend up to $900,000 per year to serve up to 20 families at a time with all-night staffing, food and support services to help them find permanent housing.

In other words, we have another example of how government is a racket.

No matter how flawed and foolish a program may be, never forget that it’s putting unearned money in the pockets of some group of people. And that group of people know how to play the game, since they then recycle some of the loot back to the politicians.

Politicians don’t care if the money is wasted. They don’t care if there’s rampant fraud.

They’re simply buying votes. With our money.

P.S. There is a sure-fire way of reducing this kind of corrupt behavior, but don’t hold your breath expecting it to happen.

P.P.S. Though you may want to hold your breath if you visit the city.

Read Full Post »

The Bureaucrat Hall of Fame recognizes government employees who go above and beyond the call of duty in terms of getting over-paid or being under-worked.

Or both.

Adding insult to injury, many recipients of this award are employed by bureaucracies that shouldn’t even exist.

Today we’re going to look at the Oakland police department, which is a part of the government that presumably should exist (though Camden, NJ, shows that maybe we shouldn’t make that assumption).

The Oakland PD is notorious for being over-compensated, but one cop stands out.

Eric Boehm of Reason has the sordid details.

When Oakland, California, police officers are needed at Golden State Warriors basketball games and other special events, Malcolm Miller is the officer in charge of making those assignments. Often, he assigns himself. As a result, Miller has become one of the highest paid officers in the department. He’s earned nearly $2.5 million over the past five years—most of it overtime pay—according to data collected by Transparent California, a watchdog group.

What a scam.

It’s highly likely that Mr. Miller is a basketball fan, so he’s figured out a great racket.

He basically gets a big pile of money for going to the games.

He and his colleagues are making out like bandits.

…he’s hardly the only officer to take advantage of poor oversight and a general lack of accountability. According to the audit, 217 officers worked roughly 520 hours of overtime last year, helping to cost the department more than $30 million in overtime pay—about twice as much as had been budgeted. Over the past four years, overtime expenditures have ranged from $28 million to $31 million. Proper documentation of overtime work was lacking in 83 percent of cases, the auditors found.

Though Officer Miller might not be the worst of the group.

One officer was paid for more than 2,600 hours of overtime—equal to 108 days of round-the-clock work—in just a single year.

So how do cops get away with this scam?

Simple, they make sure to negotiate contracts that have sweetheart provisions that they can exploit.

And why does Oakland agree to such contracts?

Well, as Michael Ramirez illustrated, bureaucrat unions give lots of money to state and local politicians, and those politicians then conspire with the unions to give them contracts with the sweetheart provisions.

Let’s close by looking at an example of this kind of scam.

Perhaps the most stunning part of the audit is the explanation of a department-wide policy that allows Oakland cops to accrue 1.5 hours of “comp time” for every hour of overtime worked. When an officer cashes in that comp time and isn’t working, other officers have to work overtime to fill the gap. That creates a cascade of additional overtime pay—10 hours of overtime creates 15 hours of comp time, which some other cop has to work, earning 22.5 hours of comp time (if they’re also working overtime), and so on.

Here’s the accompanying illustration.

How ridiculous. Extra money for overtime, combined with being able to work fewer hours in the future. Which then gives other cops an opening to rack up more overtime pay.

Everyone wins…except for taxpayers.

P.S. Some bureaucrats earn admission to the Bureaucrats Hall of Fame by misbehaving. Often in very strange ways.

Read Full Post »

While I constantly criticize the statist policies that are imposed in California, I can understand why people want to live there.

There’s plenty of sunshine, a temperate climate, low humidity, and nice scenery.

I even realize that lots of people like San Francisco, even though it’s too chilly and too urban (and too officious and too regulatory) for my tastes.

And too expensive. Not just for me. For almost everyone.

In a column for the Washington Post, Karen Heller opines that San Francisco faces some serious problems. Here are some excerpts from her piece.

In a time of scarce consensus, everyone agrees that something has rotted in San Francisco. Conservatives have long loathed it as the axis of liberal politics and political correctness, but now progressives are carping, too. They mourn it for what has been lost, a city that long welcomed everyone and has been altered by an earthquake of wealth. …Real estate is the nation’s costliest. …a median $1.6 million for a single-family home and $3,700 monthly rent for a one-bedroom apartment. …In the shadow of such wealth, San Francisco grapples with a very visible homeless crisis of 7,500 residents, some shooting up in the parks and defecating on the sidewalks, which a 2018 United Nations report deemed “a violation of multiple human rights.” Last year, new Mayor London Breed assigned a five-person crew, dubbed the “poop patrol,” to clean streets and alleys of human feces. …“Our rich are richer. Our homeless are more desperate. Our hipsters are more pretentious,” says Solnit, who once wrote that “San Francisco is now a cruel place and a divided one.” …San Francisco has…the lowest percentage of children, 13.4 percent, of any major American city, and is home to about as many dogs as humans under the age of 18. …the African American population has withered to 5.5 percent compared to 13.4 percent a half century ago.

While Ms. Heller does a good job of describing how San Fran has become a city that’s unaffordable for anyone who’s not a rich, single, hipster, she doesn’t explain why that’s the case.

Though she does quote one resident who says it’s the fault of the free market.

“This is unregulated capitalism, unbridled capitalism, capitalism run amok. There are no guardrails,” says Salesforce founder and chairman Marc Benioff, a fourth-generation San Franciscan who in a TV interview branded his city “a train wreck.”

Is Mr. Benioff right? Has San Francisco become Hong Kong on the Bay?

Interestingly, Farhad Manjoo also wrote about the city.

But his column for the New York Times puts the blame on his fellow leftists.

…look at San Francisco… One of every 11,600 residents is a billionaire, and the annual household income necessary to buy a median-priced home now tops $320,000. Yet the streets there are a plague of garbage and needles and feces… At every level of government, our representatives, nearly all of them Democrats, prove inadequate and unresponsive to the challenges at hand. …Creating dense, economically and socially diverse urban environments ought to be a paramount goal of progressivism. …Urban areas are the most environmentally friendly way we know of housing lots of people. We can’t solve the climate crisis without vastly improving public transportation and increasing urban density. …Yet where progressives argue for openness and inclusion as a cudgel against President Trump, they abandon it on Nob Hill and in Beverly Hills.

And he argues that the solution is…gasp…capitalism!

More specifically, he says government-imposed zoning must be curtailed so the market can provide more housing.

…California lawmakers used a sketchy parliamentary maneuver to knife Senate Bill 50, an ambitious effort to undo restrictive local zoning rules and increase the supply of housing. …because the largest American cities are populated and run by Democrats — many in states under complete Democratic control — this sort of nakedly exclusionary urban restrictionism is a particular shame of the left. …This explains the opposition to SB 50, which aimed to address the housing shortage in a very straightforward way: by building more housing. The bill would have erased single-family zoning in populous areas near transit locations. …wealthy progressive Democrats are…keeping housing scarce and inaccessible…to keep people out. “We’re saying we welcome immigration, we welcome refugees, we welcome outsiders — but you’ve got to have a $2 million entrance fee to live here, otherwise you can use this part of a sidewalk for a tent,” said Brian Hanlon, president of the pro-density group California Yimby.

This is very remarkable analysis, especially since it comes from someone who is so far to the left that he actually proposed to criminalize billionaires.

By the way, I’m obviously not a fan of zoning laws, but it’s easy to understand why some people defend them.

In part, they like the fact that such laws artificially increase the value of their property. And I’m sure some of them are genuinely fond of their neighborhoods and don’t want things to change.

And I’ll even admit they have a point when they argue that changing zoning laws is a bit like breach of contract. After all, people move into a neighborhood under a certain set of rules and regulations.

But my sympathy has very narrow limits. And if you want to understand why, watch this video from the folks at Reason.

The bottom line is that the mess in San Francisco is a teachable moment. It’s helping folks on the left understand that government regulations impose very real costs.

And the fact that Farhad Manjoo is on the right side (at least on this one issue) means a teachable moment actually became a learnable moment.

P.S. San Francisco also has onerous rent control laws. So local officials not only make it difficult to build housing, they also make it difficult to make a profit on housing that’s already there. That means big windfalls for a few insiders, but scarce housing for everyone else.

Read Full Post »

There are several options if you want to measure economic freedom and competitiveness among nations (rankings from the Fraser Institute, Heritage Foundation, and World Economic Forum).

You also have many choices if you want to measure economic freedom and competitiveness among states (rankings from the Tax Foundation, Mercatus Center, and Fraser Institute).

But there’s never been a good source if you want to know which local jurisdiction is best.

Dean Stansel of Southern Methodist University is helping to fill this gap with a report looking at the relative quality of government policy in various metropolitan statistical areas (MSAs encompass not just a city, but also economically relevant suburbs).

…the level of economic freedom can vary across subnational jurisdictions within the same country (e.g., Texas and Florida have less-burdensome economic policies and therefore much greater economic freedom than New York and California). However, levels of economic freedom can also vary within those subnational jurisdictions. For example, the San Jose metro area has substantially higher economic freedom than Los Angeles. The same is true for Nashville compared to Memphis. In some places, metropolitan areas straddle state borders, skewing state-level economic data. This report quantifies those intra-state disparities by providing a local-level version of the EFNA, ranking 382 metropolitan areas by their economic freedom levels.

So who wins this contest?

Here are the five most-free MSAs. It’s worth noting that all of them are in states with no income tax, which shows that good state policy helps.

What if we limit ourselves to large cities?

Here are the five most-free MSAs with population over 1 million. As you can see, Houston is in first place and zero-income-tax Texas and Florida are well represented.

Now let’s shift to the localities on the bottom of the rankings.

Which MSA is the worst place for economic freedom in America?

Congratulations to El Centro in California for winning this booby prize. As you can see, jurisdictions in New York and California dominate.

What if we look are larger jurisdictions, those with over 1 million people?

In this case, Riverside-San Bernardino-Ontario is the worst place to live.

Though if you want to focus on big cities, the NYC metro area deserves special mention.

Now let’s consider why economic freedom matters.

I’ve shared charts showing how more economic freedom leads to more prosperity in nations.

The same thing is true for states.

So you shouldn’t be surprised to discover that it also is true for metro areas.

Last but not least, here’s a map showing freedom in all MSAs.

I’m not surprised to see so much red in California and New York, but I didn’t realize that Ohio (thanks for nothing, Kasich), Oregon, and West Virginia were so bad.

And the good results for Texas and Florida are predictable, but I didn’t think Virginia would look so good.

Read Full Post »

I’ve periodically opined about why politicians should not try to control people’s behavior with discriminatory taxes, such as the ones being imposed on soda.

And I’ve cited some examples of how these taxes backfire.

If the following headlines are any indication, we can add Philadelphia to that list.

For instances, this story from the Philadelphia Inquirer.

Or this story from the local CBS affiliate.

These examples reinforce my view that it is not a good idea to let meddling politicians impose more taxes in an effort to control people’s behavior.

Some of my left-leaning friends periodically remind me, however, that there’s a difference between anecdotes and evidence. There’s a lot of truth to that cautionary observation.

To be sure, I could simply respond by saying a pattern is evident when a couple of anecdotes turns into dozens of anecdotes. And when dozens become hundreds, surely it’s possible to say the pattern shows causality.

That being said, it is good to have rigorous, statistics-based analysis if we really want to convince skeptics.

So let’s look at the results of some new academic research from scholars at Stanford, Northwestern, and the University of Minnesota. We’ll start with the abstract, which nicely summarizes their findings about the impact of Philadelphia’s big soda tax.

We analyze the impact of a tax on sweetened beverages, often referred to as a “soda tax,” using a unique data-set of prices, quantities sold and nutritional information across several thousand taxed and untaxed beverages for a large set of stores in Philadelphia and its surrounding area. We find that the tax is passed through at a rate of 75-115%, leading to a 30-40% price increase. Demand in the taxed area decreases dramatically by 42% in response to the tax. There is no significant substitution to untaxed beverages (water and natural juices), but cross-shopping at stores outside of Philadelphia completely o↵sets the reduction in sales within the taxed area. As a consequence, we find no significant reduction in calorie and sugar intake.

Here are some of their conclusions.

We draw several lessons about the effectiveness of local sweetened-beverage taxes from these analyses. First, the tax was ineffective at reducing consumption of unhealthy products. Second, in terms of revenue generation, the tax was only partly effective due to consumers substituting to stores outside of Philadelphia. Third, low income households are less likely to engage in cross-shopping, and instead are more likely to continue to purchase taxed products at a higher price at stores in Philadelphia. The lower propensity for low income households to avoid the tax through cross-shopping leads to a relatively larger tax burden for those households. In summary, the tax does not lead to a shift in consumption towards healthier products, it affects low income households more severely, and it is limited in its ability to raise revenue.

If you’re wondering why consumers responded so strongly, here’s a chart from the study showing the price difference after the tax was imposed.

The bottom numbers in Figure 3 show that some sales still occurred in the city, but a persistent gap between city sales and suburban sales appeared.

And here’s what happened to sales inside the city (taxed) and outside the city (untaxed).

Wow. This data makes me wonder if suburban sellers will start contributing to the Philadelphia politicians who have generated this windfall?

Others have noticed how the tax is hurting rather than helping.

The Wall Street Journal opined about the failure of Philly’s soda tax.

When Philadelphia became the first major U.S. city to pass a soda tax in 2016, Mayor Jim Kenney said it would improve public health while funding universal pre-K. Two years in, the policy hasn’t delivered on that elite ideological goal. But the tax has come at the expense of working people… On Jan. 2, Brown’s Super Stores announced the closure of a ShopRite on Haverford Avenue. The supermarket is close to the city limit, and customers discovered they could avoid the soda tax by shopping outside Philly. …the once-profitable store began losing about $1 million a year. …That means fewer opportunities for workers with a criminal record. Mr. Brown’s supermarkets employ more than 600 of them, with the majority in Philadelphia. Some of the ex-cons have become his most-valued employees.

And Kyle Smith explained in National Review how the tax backfired.

Philadelphia’s outlandish soda tax is what Democratic-party politics looks like when it lets its freak flag fly. So many classic elements are there: (failed) social engineering and “think of the children!” on one side, paid for with a punitive tax on poor people and destroyed businesses, which means destroyed jobs, which in turn means lives upended. …Now that beer is, in some cases, cheaper than soda in Philadelphia, alcohol sales are up sharply. …the total loss attributable to the tax in sales of all items was $300,000 a month per store. Other, untaxed drinks also suffered sales declines within the city, suggesting people were simply saving up their shopping trips for when they left town.

I don’t feel compelled to add much to what’s been cited.

Though I will cite a headline from the Seattle Times to reinforce one of the points in the academic study about consumers bearing the cost of the tax rather than the soda companies.

And my one modest contribution to all this analysis is this comparison of the winners and loser from Philadelphia’s new tax.

For what it’s worth, similar comparisons could be developed for just about every action by every government. Academics call this “public choice” while ordinary people realize it’s just common sense.

Read Full Post »

I often write about the failure of government.

In other words, there’s lots of evidence that government spending makes things worse.

Needless to say, this puts a lot of pressure on folks who favor bigger government. They desperately want to find any type of success story so they can argue that increasing the size and scope of the public sector generates some sort of payoff.

And they got their wish. Check out the ostensibly good news in a story from the San Fransisco Chronicle.

Investing billions of dollars in affordable housing and homeless programs in recent years has apparently put the brakes on what had been a surge in California’s homeless population, causing it to dip by 1 percent this year, a federal report released Monday showed. …The report put California’s homeless population this year at 129,972, a drop of 1,560 in the number of people on the streets in 2017. …“I think San Francisco has shown that when targeted investments are made, we see reductions in homelessness here,” Kositsky said. He pointed out that family, youth and chronic veterans homelessness dropped in the city’s last full count — although the number of chronically homeless people went up.

Maybe I’m not in the Christmas spirit, but I don’t see this as a feel-good story.

Are we really supposed to celebrate the fact that the government spent “billions of dollars” and the net effect is that the homeless population dropped just 1 percent?

The story doesn’t contain enough details for precise measurements, but even if we assume “billions” is merely $2 billion, then it cost taxpayers close to $1.3 million to get one person off the street. For that amount of money, taxpayers could have bought each of them a mansion!

In other words, the program has been a rotten investment. Heck, it makes Social Security seem like a good deal by comparison.

To be sure, maybe the number isn’t quite so bad because we’re comparing multi-year outlays with a one-year change in the homeless population. Though maybe the number is even worse because taxpayers actually coughed up far more than $2 billion.

The bottom line is that if my friends on the left see this as an example of success, I’d hate to see their definition of failure.

Read Full Post »

I wrote back in 2011 about a bizarre plan in California to regulate babysitting.

You may be thinking that’s no big deal because California is…wellCalifornia.

But other governments also want to control private child care decisions. The latest example is from the District of Columbia, which is going after children’s play groups.

Lenore Skenazy explains the craziness in a column for Reason.

For 45 years, parents have brought their two-year-olds to the Lutheran Church of the Reformation as part of a cooperative play school endeavor. It’s a chance to socialize with other haggard moms and (presumably some) dads dealing with the terrible twos, and it’s volunteer run. …The problem—which isn’t actually a problem, unless you define it as such—is that because the play group has some rules and requirements, including the fact that parents must submit emergency contact forms, as well as tell the group when their kid is sick, the play group is not a play group but a “child development facility.” And child development facilities are subject to regulation and licensing by the government. As Lips points out, this actually creates an incentive for parent-run play groups to be less safe, because if they don’t have rules about emergency contact info, and how to evacuate and such, they are considered officially “informal” and can go on their merry, possibly slipshod, way… Take a step back and you see a group of people—toddlers and parents—enjoying themselves. They’re meeting, playing, and perfectly content. But another group is trying to butt in and end the fun—and the convenience.

And what is that “annoying group”? It’s the bureaucrats who issued the play group a “statement of deficiencies.”

The Wall Street Journal also opined on the issue.

The District of Columbia is literally targeting preschool play dates, claiming that parents need city approval before they can baby-sit their friends’ toddlers. Since the 1970s, parents have organized play dates at the Lutheran Church of the Reformation on East Capitol Street. They formed a nonprofit to pay for the rent, insurance, snacks and Play-Doh, and each family chips in about $200 a year to cover expenses. …The fun and games ended Sept. 7 when gumshoes from the D.C. Office of the State Superintendent of Education showed up. They claimed the Capitol Hill Cooperative Play School counts as a day care center and is operating unlawfully. If the bureaucrats get their way, the co-op would have to hire a director with a background in childhood education or development, apply and pay for a license, obtain permits and abide by all other day-care regulations.

And you won’t be surprised to learn that day-care regulations in DC are ridiculously expensive and misguided.

Anyhow, the WSJ also observes that the play school could evade red tape by being less-well organized. Heckuva set of incentives!

…the day-care police claim the Capitol Hill Cooperative Play School is “formal” because it has a website, draws participants from a hat to limit play-date sizes, and hosts scheduled get-togethers. In other words, the parents aren’t organized enough for the government’s satisfaction but are too organized to escape its harassment. …State Superintendent of Education Hanseul Kang is pushing for more government control over the play dates. She wants mandatory emergency drills, sign-out sheets, CPR and first-aid certification for parent volunteers, limits on the frequency and number of hours co-ops can meet, among other requirements. Nannying the nannies will make life tougher on parents—who have a greater interest than the D.C. government does in ensuring their kids are in good hands.

The final sentence of that excerpt is key.

Parents aren’t perfect, but they have a far greater stake in making right decisions than a bunch of busy-body bureaucrats looking to expand their power.

P.S. This is one of the reasons I support school choice (and also object to throwing more money into government schools). Parents are far more likely to do right for their kids than faraway self-interested bureaucrats.

P.P.S. The bureaucratic version of the keystone cops would include the play-group police in addition to the milk police and the bagpipe police.

Read Full Post »

Older Posts »

%d bloggers like this: