Category Archives: Local Government

I Told You So

There’s nothing more annoying than people who say “I told you so”–especially when they told you so.

But, dammit, I told you so. Not that I was the only naysayer–not even close–but I posted several arguments against the privatization of Indianapolis’ parking meters.

So I’m going to be obnoxious, and share the lede of a recent report from the Indianapolis Star

In the five years since Indianapolis leased its parking meter operations to a private company, rates have skyrocketed, hours have expanded and the number of paid spaces has increased.

But the city is reaping only about a quarter of the dollars ParkIndy projected when it paid $20 million to the city to operate the meters until 2061.

Those of us who opposed this “deal” (a word that is beginning to take on Trumpian implications for me) raised several issues:

The fifty-year length of the contract. Even if the deal had been less one-sided fiscally, decisions about where to place meters, how to price them, what lengths of time to allow and so on have an enormous impact on local businesses and residential neighborhoods. They are decisions requiring flexibility in the face of changing circumstances; they are most definitely not decisions that should be held hostage to contracting provisions aimed at protecting a vendor’s profits.

Added costs to downtown development and civic events. More often than not, new  construction interrupts adjacent parking. If the city is managing its own meters, it can choose to ignore that loss of parking revenue, or decide to charge the developer, based upon the City’s best interests. Street festivals and other civic celebrations also require  that meters be bagged, and usually there are good reasons not to charge the not-for-profit or civic organization running the event. The ParkIndy contract requires the City to pay ACS whenever such interruptions disrupt its projected revenue from those meters.

Why privatize at all? This isn’t rocket science. There was never a satisfactory response to the obvious question “why can’t we do this ourselves, and keep all the money?” Why couldn’t Indianapolis retain control of its infrastructure, and issue revenue bonds to cover the costs of the necessary improvements? Interest rates were at a historic low at the time, making it even more advantageous to do so. If the Ballard administration was too inept to manage parking, it could have created a Municipal Parking Authority, as Councilor Jackie Nytes  suggested at the time.

There really was no compelling reason to enrich private contractors and reduce (desperately needed) City revenues.

Why ACS? ACS is the primary partner of ParkIndy. There was extensive publicity about ACS’ performance problems in Chicago; there was also troubling information about the company’s track record in Washington, D.C., where an audit documented mismanagement, overcharging, over-counting of meters, and the issuance of bogus tickets (ACS got all the revenue for tickets). Washington lost $8,823,447 in revenue and experienced a twenty-fold increase in complaints from the public.

As I noted at the time, one of the problems with privatization in general is that it leads to speculation about cronyism and political back-scratching. In this case, the Mayor’s “personal advisor” was a registered lobbyist for ACS through the same law firm that employed the then-President of the City-County Council (who did not recuse himself, and whose affirmative vote was what allowed the contract to be approved by a narrow 15-14 margin.)

All of these criticisms were brushed aside as mean-spirited and uninformed. We were told that ACS/ParkIndy’s “expertise” would generate more revenue than would be realized under city management.

So, according to the Star, how’s that working out?

ParkIndy has collected $40.5 million in parking fees and fines since converting the first meter March 3, 2011. Projected over 50 years that amounts to about $426 million. The city’s take in a profit-sharing agreement has been $15 million, which would total about $158 million in 50 years.

ParkIndy estimated the city would earn $620 million over the 50-year life of the contract. To achieve that, ParkIndy would need receipts of about $1.5 billion, or more than three times its current pace.

Told you so.

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Why Am I Not Surprised?

The Governor steps in it again.

Gov. Mike Pence is using a recent Indiana Supreme Court decision to argue that he should not be required to release documents that have been deemed by law to be public records.

The Indiana Supreme Court ruled April 19 that it won’t compel lawmakers to release their emails to the public, even though it said the Access to Public Records Act applies to the General Assembly. The court said the separation of powers in the Indiana Constitution means the courts should not tread on lawmakers’ turf.

Now, Pence wants that same logic applied to him.

Of course he does. He also wanted to operate his very own “news bureau,” so that “news” would portray him in a favorable light.

The Indiana Supreme Court’s decision in the recent Koch case dismayed the legal community, for a number of reasons. The Court cited separation of powers–saying that it lacked the authority to overrule the legislature’s own interpretation of the law requiring disclosure.

In the Koch case, Citizens Action Coalition and two other groups the tried to get access to emails between utility companies and Rep. Eric Koch, R-Bedford, who is chairman of the House Energy Committee. The Supreme Court found that determining whether those documents counted under the APRA as legislative work is a “non-justiciable question,” meaning a matter it cannot adjudicate.

In the immigration case, Groth requested the contract the governor entered into with Barnes & Thornburg, who sued for the state instead of Indiana Attorney General Greg Zoeller, as well as copies of firm’s invoices. He also sought emails between the Texas Attorney General, who led the suit, and Pence’s office.

But the documents Groth received back were “heavily redacted,” he said, so he complained to the Public Access Counselor and ultimately filed the suit.

What is at stake here is a basic tenet of good government: are citizens entitled to information about contracts that their elected officials have entered into? Information about the expenses involved? The usual answer is: yes. That’s what is meant by transparency–an important aspect of democratic governance.

If voters cannot access information about the way their government works, they lack important information on which to base their votes. We call that sort of information “accountability.”

Public access advocates say their fears about the recent Indiana Supreme Court decision are already coming true.

Kerwin Olson, executive director of the Citizens Action Coalition, said he was worried the Supreme Court case would have negative, far-reaching implications, and this appears to be one of them.

“The Pence administration is already citing Koch as an additional authority to deny releasing government documents,” Olson said. “it’s quite astonishing and troubling. It further shuts the door to accountability and transparency in government when we should be going the opposite direction.”

The Indiana Supreme Court’s ruling is troubling, and not just because it is an open invitation to Mike Pence and the legislature to shield their actions from the voters. As Steve Key, executive director of the Hoosier State Press Association, noted

“If the judiciary takes this position, it would eviscerate the Access to Public Records Act because every agency would argue that a judge shouldn’t judge whether a document should be released under an APRA request if the agency’s position is that the record is part of its internal operations,” Key said. “The public’s ability to hold government officials accountable would be greatly hamstrung by such a policy.”

Ya think?

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I Guess This Doesn’t Include Indiana

Macleans has identified cities it dubs a “new brain belt.”

These are the places where they think the greatest innovation is happening today. Sometimes they are classic rust-belt cities but mostly they are university or hospital towns in the vicinity: Waterloo, Ont., instead of Windsor.

They identify characteristics of such places: high-tech facilities, quality educational institutions, taxpayer support for research, appealing living conditions and, most important for them, cultures of free thinking, in contrast to the “hierarchical, regimented thinking so prevalent in Asian and MIST [Mexico, Indonesia, South Korea and Turkey] countries.”

Or states like Indiana.

We have had several robust discussions on this blog about my theory of “paradigm shift.” Call it that, or focus on the narrower question (posed by MacLeans) whether your own city or state is “innovative” or “future oriented”–the question is one with which every Chamber of Commerce and Economic Development organization is wrestling: how does my city/ metropolitan area/state continue to compete and thrive in a world that is constantly changing? How do we get from here (wherever that is) to there (wherever that is)?

I was struck by the list of characteristics identified by MacLeans: of the five, four focused on human capital–more precisely, the development of an intellectual culture.

  • High tech facilities are built in places having workforces that can operate and manage them, places where both technical skills and comfort with technical innovation are plentiful.
  • The phrase “quality educational institutions” suggests the sort of yeasty and challenging environment that deals in questions, not answers–the sort of educational environment that produces new ideas and new ways of thinking about the traditional ones. (Quality is not defined by job placement statistics–sorry, Indiana Commission on Higher Education.)
  • “Taxpayer support for research” certainly doesn’t call to mind the penny-pinching, “I’ve got mine, Jack, and I’m holding onto it” attitude that has long characterized my own state of Indiana. It certainly doesn’t describe a state that would constitutionalize a cap on property taxes, lest those taxes somehow get raised and then–horrors!–spent on a common civic good like education. Or a better quality of life.
  • When you think about it, a culture of “free thinking”–the fourth intellectual attribute of forward-looking places–really leads to the only characteristic listed that doesn’t immediately connect to the life of the mind: a good quality of life. I don’t think you can have a good quality of life without such a “free thinking” culture.

People who enjoy engaging with ideas, with the arts, with people unlike themselves–people interested not only in acquiring new skills but in using those skills to improve their communities–are people who understand the organic nature and human importance of those communities, and the importance of their own connections to them.

There are people in my city–and I’d wager in yours–who are working hard to create a community that looks like that.

But at this point, my city– and most definitely my state— have a long way to go.

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Truly Torn

Oh, Mike Pence! Sometimes you do confound me! Apparently, you’ve accidentally done something good!

According to a recent report in The Indiana Lawyer, 

Under the administration of Gov. Mike Pence, legal fees paid to the American Civil Liberties Union of Indiana have soared beyond $1.4 million and may approach $2 million, according to an Indiana Lawyer analysis. The $1.4 million total does not include fees that have been or will be paid in the current fiscal year ending June 30 or other legal fees ACLU claims are owed by the state. The fees represent the state’s payment of legal bills to parties who prevail in federal court on claims that government action violated their constitutionally protected civil rights.

Regular readers of this blog will remember that I spent six years (1992-98) as the Executive Director of Indiana’s ACLU. Those were rewarding years in so many ways–I learned so much and met so many wonderful people; it was so gratifying to be part of an organization that defended individual liberties…..

But I must admit that the most vivid memory I took with me when I left the ACLU for academic life was the constant pressure of fundraising. We had wonderful lawyers and dedicated clerical staff, and we all worked for a pittance–but I had to raise that pittance. The ACLU only has two sources of income: charitable gifts (fundraising) and legal fees.

And legal fees aren’t a given. The organization only gets legal fees when it wins a lawsuit and the law allows such recovery. Even when the organization is successful and the case is a fee-generating one, it can take years of litigation–first, the case itself, then a fight over fees…

So I really, honestly do want to thank Governor Pence for his largesse to Indiana’s ACLU. I mean, $2 million dollars is a windfall! It should allow the ACLU some much-needed “breathing room,” some assurance that it will “be there”–in a position to protect LGBT Hoosiers from discrimination, reproductive rights from theocratic lawmakers, public school students from government-imposed prayer, law-abiding citizens against official overreach…Well, you all get the idea.

Here’s another idea: Each time Indiana’s constitutionally clueless Governor and AG lose another case to the ACLU, let’s all send the ACLU a few extra dollars to celebrate. Because after November, I have a feeling this bonanza may dry up….and Jane Henegar, the wonderful current Executive Director, will have to resume her begging.

Send a few bucks to Indiana’s ACLU in “honor” of Governor Pence.

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That Urban/Rural Divide

There are lots of ways to “slice and dice” human populations (and unfortunately, we humans excel in exploiting and magnifying those differences). One dividing line that has not gotten the attention it deserves is the one between inhabitants of rural and urban America.

As the authors of a famous rant–The Urban Archipelago—pointed out some years back, America’s cities are big blue dots, many of which are swimming in red seas. For many reasons, people who live in more densely populated areas tend to be more supportive of the institution of government, and less likely to respond to political attacks on its legitimacy. (To take just one example, people who regularly pick up a rifle and go hunting look at gun control issues differently than people worrying that their children will be victims of a drive-by shooting or be on the wrong end of a Saturday-night special.)

That these differences lead to different behaviors at the polls is no surprise; the political problem, however, is that our current method of drawing electoral districts significantly advantages rural areas–at the same time that those areas are rapidly losing population to urban America.

Take Indiana. As Michael Hicks recently reported

In last month’s population report, the number of shrinking counties rose to 54, and those growing faster than the nation as a whole rose to 14. That left 24 counties in relative decline. All the growth is happening in urban places, and all the decline is in rural or small town Indiana. It has been this way for half a century, but the pace is accelerating. This population redistribution matters deeply for Indiana’s health through the 21st century.

Cities grow for simple reasons that cannot be duplicated in rural areas no matter how wishful the thinking. Through the forces of agglomeration, each 5.0 percent growth in population causes GDP per worker to rise by roughly 1.0 percent. This leads to higher wages that in turn attract more educated workers to urban areas, which further boost productivity. In cities, workers combine to be more productive overall than the sum of their individual skills. Economists call this phenomenon ‘increasing returns.’

The phenomenon Hicks reports on is being replicated all over the world, and if the social science research is to be believed, the flow of population from farm to metropolitan area is unlikely to reverse any time soon.

This population distribution creates a real problem for a political system ostensibly based on “one person, one vote.” I have posted previously about gerrymandering, but even when the process of creating districts is fair, our human tendency to move to areas where people are like-minded results in “packed” districts that generate so-called “wasted votes”–a migratory process that Bill Bishop has called The Big Sort. 

It isn’t only that the urban dweller’s vote counts less, troubling as that is.

Municipal areas are the drivers of state economies, but in states like Indiana, the urban economy is still in thrall to decisions made by a predominantly rural legislature. Unsurprisingly, tax policies and distribution formulas favor rural areas with diminishing populations over growing urban and suburban communities, and culture war bills like the recent anti-gay measures in North Carolina and Mississippi typically pass with the votes of rural representatives unconcerned that such measures trigger boycotts that hurt urban enterprises owned by people who generally opposed them.

People living in a downtown high-rise deserve to have their votes matter as much as the votes of people living on a farm. Even more importantly, they deserve to have their laws made by people who understand the needs and realities of city life.

We need to do something to level the playing field, but I’m not sure what that something is.

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