Management versus Leadership

Mayor Ballard’s much-debated 50-year contract with ACS to manage Indianapolis’ parking infrastructure squeaked through the City-County Council, thanks to the deciding vote cast by Council President Ryan Vaughn, who refused to recuse himself even though his law firm represents ACS.

As a national commentator wrote to Bill Hudnut after that vote, the fact that Indianapolis gave an insider a sweetheart deal is less distressing than the fact that this transaction was yet another piece of a longer-term trend. “When you were Mayor, it seemed to me that the community leadership was really committed to downtown and the City, to the point where they even invested their own cash to make it happen, such as the corporations that helped fund Circle Centre Mall. Today, it’s pretty much a portion of the community elite using government simply to pull money out of the City.  I’m not sensing that there’s the same commitment to the City and its future as there once was.”

My husband and I both served in the Hudnut Administration (we met there), and we can still recall the energy and excitement of being part of a team that was working to create a new Indianapolis.  We were partners with local business and civic leaders who were equally invested in that future.

A local civic leader I admire believes there is an important distinction between leadership and management: as he notes, cities must operate in a businesslike fashion, but they aren’t simply businesses requiring managers.  Leaders understand that a city is the sum of the human values that make it up, the values that give cities their character, their “soul.”

For those who believe that there is no such thing as a city soul, or an identifiable civic culture, who think that this is all soft-headed romanticism, Neal Peirce has news for you: Civic culture drives economic development and fiscal health.

“We know the old and familiar way—grant tax subsidies or other special favors to nail down new office or factory prospects. Local tax bases take a hit and all taxpayers end up subsidizing the favored businesses. But to draw both investment and talented individuals—demonstrably the base of strong economies in today’s globalizing world—cities might focus more intensely on the qualities that most prominently build residents’ attachments to their communities.”

Peirce cites a key finding from three years of Gallup polling: what drives attachment to a community is not “the usual suspects” like jobs, the economy or even public safety.  While these things are important, “soft” quality of life factors—social offerings, openness, aesthetics and education (especially the presence of colleges and universities) drive attachment.

Communities scoring well in these categories also have higher rates of economic growth. The theory is that when people feel more attached to their communities, they spend time and money there, are more productive, and tend to be more entrepreneurial.

Such communities develop when people elect leaders concerned with the greater good, rather than managers interested in cutting deals with favored insiders.

The Crux of the Matter

As Indianapolis prepares to enter into a 50 year contract with ACS, under which it will hand over management of this asset–and an estimated 1.25 billion dollars that would otherwise come to the City during that period–I thought I’d share an observation from my son, made in response to a letter from the Mayor’s office to City Council members, defending the proposal against criticisms. I think he gets to the heart of the matter.

“Having scanned the administration’s response to the analysis of the non-partisan Public Interest Research Group (PIRG), and particularly the Administration’s view that it is leveraging a “non-core asset” (parking meters), it finally struck me why the Mayor continues to press this deal to give so much money, and particularly control, to ACS.  Ultimately, there is one glaring analytical flaw, which is really at the heart of the City’s analysis: The Administration fundamentally doesn’t understand the “value” and “purpose” of the asset it is selling. This leads to a fundamental error in the financial terms and structure of the deal and explains why the city is willing to give away so much in the deal.

The Administration’s ignorance of the true value of the parking meter assets is evident in its label of parking infrastructure as “non-core assets.”  From a revenue raising perspective, they are right in a very limited sense: the city hasn’t used parking meters as a “core” revenue raising tool.  But as Aaron Renn has forcefully argued, parking meters and control of rights-of-way are NOT, first and foremost, revenue raising tools/powers, but instead are central or “core” to a city’s ability to plan and control its use of public space and, ultimately, to control and encourage economic development. The Administration’s analysis actually ignores the “core value” of parking meter assets to the city: that is, control over parking meters gives the city control over how it manages development, transportation, land-use, etc.  And by ignoring this “core value,” or by failing to see the value in it, the Administration is failing to properly value the asset…. Or to fully understand and protect those other rights and benefits that are tied to control of its rights of way.  (It’s kind of like a landowner selling a plot of land that he thinks is barren or only useful on the surface, when there are mineral/oil rights below ground that he is giving up without receiving value.) It’s the City’s ignorance of the true value of the asset that is leading it to agree to terms that it should never agree to.

As some councillors have observed in their very well-stated remarks, the City is not simply striking a very bad deal – it is striking a deal that future councils and future administrations will be effectively unable to undo and will have to live with for decades… As Bill Hudnut observed a few weeks ago in an interview with WTHR, there is no need for the city to give up so much revenue or control.

There are other flaws in the analysis forwarded by Mr. Cochran to City Councillors, but perhaps the most telling one is that they apparently don’t understand the true value of the asset they are selling and so, as day follows night, they have incorrectly valued it and placed inappropriate restrictions on it’s future use.”

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Bad Monkey

I’m writing this before the November 2d elections, knowing that it won’t see print until the election results are known. The timing won’t keep me from making a prediction: voters will reward sleazy tactics, outright liars and buffoons of all political persuasions.

That’s because the election season that will (mercifully) be over when you read this has been dominated by two parties—not Republicans and Democrats, but those I’ll dub “denialists” and “enablers.”

Denialists have a variety of motives, but essentially, they are fleeing the complexity and ambiguity of modern life. They span a spectrum from the outright delusional—the so-called “birthers” who have convinced themselves that President Obama was born in Kenya, and the one in five Americans who believe he’s a secret Muslim—to the various groups of creationists, climate change deniers and others who are suspicious of science and empirical evidence and looking for any opportunity to reject findings that do not confirm their own beliefs or serve their own interests. They include the revisionists who cling to carefully selected and edited versions of America’s history and constitution.

There have always been denialists on the fringes of American political life. What is different today is that they are being enabled by the emergence of a media landscape in which the time-honored function of genuine journalism—truth-telling—has been pushed aside in favor of what sells, and telling people what they want to hear is a sure winner.  The fact that paying talking heads to spout uninformed—occasionally deranged—opinions is so much less expensive than paying journalists to do actual reporting is just icing on the cake.

In this intellectually dishonest, morally distasteful environment, can we really be surprised that candidates of both parties have participated in a content-free, ugly exchange of untruths and half-truths?

In the run-up to November 2d, it has been impossible to avoid the hammering of negative, misleading ads. I am supposed to be outraged over the “government takeover” of Medicare (and too stupid to know that Medicare is a government program). I am supposed to believe that a candidate for prosecutor who once represented a defendant accused of child molestation is thereby disqualified for office (and to ignore the profoundly unethical conduct of a candidate who would make such a charge). Presumably, I am supposed to listen to the out-of-context charges and counter-charges, the grainy photographs and gloomy atmospherics and make my candidate selection based purely on my emotional response.

No wonder Jon Stewart held a rally for sanity. If the antics of this electoral season are any indication, it’s in short supply.

Actually, it was Stewart who came up with the best description of our current politics. In an interview, Terry Gross of NPR asked him about his focus on politicians and the media, and who was most culpable. Stewart said “Politicians are politicians. If you go to the zoo and monkeys are throwing feces, well—that’s what monkeys do. But you’d like to have the zoo-keeper there saying ‘Bad Monkey.’”

The Best of Times, The Worst of Times

Dickens’ classic book “A Tale of Two Cities” begins, “It was the best of times; it was the worst of times.” That’s a pretty apt description of the world Americans inhabit right now.

On the plus side, advances in transportation and communication allow us to travel the globe and connect with others in ways our parents could never have imagined. Medical science has given us longer, more comfortable lives. Technology has improved our productivity, and brought education, books, and the arts to millions who otherwise would lack access to them.

The best of times.

And then there is our experiment with self-government, which isn’t going so well.

It’s partly the economy, of course. During times of economic distress, people get testy. Prejudices emerge. (Attacks on immigrants and Muslims, especially, are getting ugly.)

But it’s not just the economy. We also seem to be in the throes of a massive cultural backlash, driven primarily—although certainly not exclusively—by old, angry white guys.   Most of these angry folks cannot articulate what it is that makes them so furious—probably because they really don’t know themselves. They just know that the world they were born into (or think they were born into—that “leave it to Beaver” world that existed, if at all, for a very few families) has changed.

If you listen to Tea Party activists for even a few minutes, you cannot help but be struck by the fact that they cannot describe policies they support, although they can certainly identify what they are against—much like a cranky two-year-old, or that character from “Broadcast News” who was “mad as hell and not going to take it anymore.”

Conventional wisdom tells us this rage will translate into the election of several of the crazier candidates who have emerged from the primaries. We are two weeks away from an election where a lot of irrational folks are energized and large numbers of reasonable citizens are dispirited.

If, as many of our pundits predict, this angry electorate votes indiscriminately against moderates and incumbents, opting for extremists who display little or no recognition of the complexities of the issues (or even basic understanding of the world we inhabit), we will all suffer the consequences. If we turn the apparatus of government over to the “simple answer” ideologues—the creationists and climate-change deniers, the folks who want to repeal Social Security and the Civil Rights Act, the conspiracy-theorists who have convinced themselves that President Obama is a Muslim who wasn’t born in the United States—the consequences will be grim.

We have never needed sane and steady public servants more than we need them today.

Which brings me to another quote that seems apt right now: “All that is necessary for evil to triumph is for good people to do nothing.”

If reasonable people don’t vote in large numbers, and the ideologues and crazies and know-nothings take the reins of power, “the best of times” will become “the worst of times” in no time.

Recycled Politics

Indiana citizens aren’t making much progress recycling paper and plastic, but we seem to be leading in the reuse of old politicians. Evan Bayh is apparently preparing to run for Governor again, and in the race to replace him, Republicans want us to send Dan Coats back to Washington—a city he is intimately familiar with, having been there as a Representative, Senator, Ambassador and lobbyist.

I don’t know which is worse, listening to Bayh piously declare that he left the Senate because his sensibilities were offended by partisan sniping, or listening to Coats engage in it.

This is the point in the political cycle where it is nearly impossible to avoid 30-second spots in which Candidate A explains that Candidate B is unfit for public office, because—unlike Candidate A—Candidate B lacks “Hoosier Values.” Plenty of politicians employ these tactics and the empty phrases that invariably accompany them, and it may be unfair to pick on Dan Coats, but his ads are especially vacuous.

Here is a man who certainly should know something about policy. He’s been part of the legislature; a member of George W. Bush’s inner circle (he was even tapped by Bush to shepherd a Supreme Court nominee through the confirmation process) and most recently, a high-priced lobbyist. Yet his political ads are absolutely devoid of content; they consist entirely of labeling and name-calling.

The wisdom and adequacy of the new healthcare law is an entirely appropriate issue for debate and discussion. Coats clearly disapproves of the law, but he doesn’t tell us why. He just calls it “Obamacare” and “a bad idea.” What parts of it does he disagree with? Does it go too far? Not far enough?

In one ad, Coats says that support for the economic stimulus was a “vote against Indiana.” There is an overwhelming consensus among economists—conservative and liberal alike—that the economy would be immeasurably worse without that stimulus. If Coats disagrees, he doesn’t tell us why.  We are supposed to know the stimulus was “bad” because it is associated with “Pelosi, Reid and Obama.”  Should voters ask Coats how he reconciles his claim to fiscal conservatism with his support for the profligate Bush administration? These are not arguments; they are guilt-by-association smears.

As long as we’re recycling, I’ll resurrect the famous Wendy’s commercial question: where’s the beef?

The truth is that there isn’t any “beef.” Coats—and Bayh, if he really does run again for Governor—are useful to their respective parties because they have money and name recognition, not because they bring energy or new ideas to the table.  They have name recognition because they’ve been around for a long time—and have thus been part of the problem. They have money because they are old Washington insiders who’ve demonstrated an ability to play nicely with the vested interests. We can assume they have no new ideas, because they aren’t offering any.

I’ll recycle paper and plastic, but I draw the line at recycling old politicians.

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