Tag Archives: taxpayers

Wow…Indianapolis Is Doing Something Right

A few years ago, my husband and I took a long-planned cruise around South America. Our point of embarkation was Buenos Aires, and we booked a small hotel that had been recommended to us for a few days before setting sail, to see a bit of the city. The street in front of the hotel was being repaved, and we were struck by how Argentinians approached that task –they weren’t “resurfacing” the street by putting a few inches of asphalt over the roadway, they were reconstructing it. We watched as they dug down at least two feet, and carefully prepared the substructure before repaving it (with granite, no less!)

When they were done, they expected it to last many, many years.

I don’t know how other cities in the U.S. approach street maintenance, but as long as I have lived in Indianapolis, I have seen the way our city “fixes” our potholed thoroughfares. City administrations have repeatedly  covered the crumbling substructures with thin coats of asphalt (at the same time confirming the old political adage that “long-term to a politician is until the next election.”)

I have not been all that happy with our city’s current, timid administration (for reasons not relevant to this post), but credit where credit is due: they are actually rebuilding city streets. Properly.

We moved in May to the downtown core, and realized we’d moved into a construction zone; the major thoroughfare running past the exit to our parking garage has been torn up for months. But we’re not complaining, because the City is actually repairing it the correct way–digging down and rebuilding, just like the street repair we’d seen in Argentina.

Now there is news that the city will take that same approach to other, formerly neglected streets in Indianapolis–not just those in the urban core.

As the Indianapolis Star recently reported

Ninety miles of residential streets throughout Indianapolis will get complete makeovers next year through a rare $25 million infusion of cash.

The streets will not simply be repaved, but entirely reconstructed, reflecting a shift in strategy for the Department of Public Works from surface-level fixes to more expensive, but more longterm, deeper fixes.

That “shift in strategy” is more than welcome. Indianapolis–and all of Indiana–has followed the “penny wise, pound foolish” method of infrastructure maintenance for far too long. The usual approach–visually paving over the problem and pretending it’s solved–saves dollars initially, rewarding politicians who then brag about doing more with less while ignoring the fact that those superficial “fixes” cost taxpayers much more over the longer term.

But hey–longer term, most of them intend to be occupying a different/higher position…Leave it for the next guy to deal with.

In all fairness to our short-term politicos–they think they are being responsive to the majority of constituents who insist on government services on the cheap, the citizens who want to drive on smooth roads, visit well-maintained parks, and depend on properly trained and equipped police and fire departments–but who definitely don’t want to pay an extra nickel in taxes in order to support those services.

This attitude is incredibly shortsighted. Not only do the quick fixes require more frequent resurfacing, driving on streets that are constantly pockmarked and potholed due to underlying structural failures causes flat tires and bent rims that those tax-averse citizens end up paying out-of-pocket.

The administration says that funds to do Indy’s streets properly are coming from savings that accumulated during the pandemic, when city departments instituted hiring freezes and cut discretionary spending. Those funds should be augmented by Biden’s massive infrastructure bill, allowing even more repairs.

Proper street re-construction will take more time, and will cause traffic problems, but I for one will be delighted to put up with those inconveniences.

Now, if we could only get our utilities to buy into that longer-term strategy and bury their poles and wires…think of how much money they’d save after the next storm takes their above-grade infrastructure down, causing widespread outages…

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Subsidizing Bigotry

As the country’s diversity and tribalism have grown, America’s public schools have become more necessary than ever. The public school is one of the last “street corners” where children of different backgrounds and beliefs come together to learn–ideally–not just “reading, writing and arithmetic” but the history and philosophy of the country they share.

Today’s Americans read different books and magazines, visit different websites, listen to different music, watch different television programs, and occupy different social media bubbles. In most communities, we’ve lost a shared daily newspaper. The experiences we do share continue to diminish.

Given this fragmentation, the assaults on public education are assaults on a shared America.

Nevertheless, politicians and (especially) religious adherents who feel threatened by diversity and modernity have worked tirelessly to support voucher programs that allow parents to remove their children from public school systems and send them to private–almost always religious–schools, where they study with “their own kind.” The rhetoric around these programs typically defends them as “allowing children to escape failing schools”–although those “failing” schools are hardly helped by sending their already inadequate resources to private schools–despite consistent research showing that vouchers virtually never lead to academic improvement. (They do, however, lead to increased racial segregation.)

As an added indignity, voucher programs send tax dollars to schools that discriminate against LGBTQ children and children with LGBTQ parents. Here in Indiana, Cathedral High School, which received over a million dollars in 2018, fired a gay teacher;  Roncalli High School, which also has accepted vouchers worth millions fired a much-loved gay counselor who was in a same-sex marriage.

Recently, in a welcome announcement, two major contributors to Florida’s voucher program announced that they would no longer be contributing to that state’s program, which also allowed recipient schools to deny admission to gay students.

Two of the largest banks in the U.S. say they will stop donating millions of dollars to Florida’s private school voucher program after a newspaper investigation found that some of the program’s beneficiaries discriminate against LGBTQ students.

In a statement to NBC News and CNBC on Wednesday evening, Wells Fargo confirmed that it would no longer participate.

“We have reviewed this matter carefully and have decided to no longer support Step Up for Students,” the San Francisco-based bank said of the voucher program. “All of us at Wells Fargo highly value diversity and inclusion, and we oppose discrimination of any kind.”

In a tweet to a Florida lawmaker Tuesday, Fifth Third Bank, based in Cincinnati, said it has told officials with the voucher program that it will also stop participating.

An investigation by the Orlando Sentinel found 156 private Christian schools with anti-gay views that participated in Florida’s program. Those schools educated more than 20,000 students whose tuition was paid by Florida taxpayers–including, obviously, LGBTQ taxpayers.

The investigation found that 83 of the 156 schools with anti-gay views refuse to enroll LGBTQ students, and that some number of those schools also exclude students whose parents are gay.

“Florida’s scholarship programs, often referred to as school vouchers, sent more than $129 million to these religious institutions,” the Sentinel reported on Jan. 23. “That means at least 14 percent of Florida’s nearly 147,000 scholarship students last year attended private schools where homosexuality was condemned or, at a minimum, unwelcome.”

So much for the American “street corner” and our commitment to civic equality.

We taxpayers are subsidizing segregation and bigotry–without realizing the promised improvement in academic outcomes.

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No Free Burgers…

If there’s one thing that conservative and liberal economists agree about, it’s that old bromide about there being no free lunch.

That widget you are manufacturing contains raw materials, its construction takes labor, and its distribution and marketing must be paid for. Your facility and utilities cost money.  Those costs–plus some profit–have to be reflected in the price, or you’ll go broke.

You may be able to gain a market advantage by shifting some of your costs to others–we all know of cases where pollution created during production is discharged into the air or water to be paid for by the community at large, rather than by being properly disposed of and the cost of that disposal factored into the product’s sales price–but if it’s a cost of doing business, someone has to pay it.

Market theory assumes that the widget manufacturer will pay all the costs of production,  and then pass those costs on to the ultimate consumer, as part of the price.

Increasingly, however, taxpayers are assuming those costs.

Case in point: we are subsidizing the wages of a quarter of the people who have jobs today. A recent study from UC Berkeley and the University of Illinois found that fully 52% of fast-food workers receive public assistance–mostly Medicaid and food stamps–to the tune of $7 billion dollars a year. (McDonald’s workers alone got $1.2 billion of that.) One Wisconsin Wal-Mart costs taxpayers over a million dollars a year.

The United States now has the highest proportion of low-wage workers in the developed world. And as the report noted, every dollar taxpayers spend subsidizing corporations so they can continue paying their workers poverty wages is a dollar not spent on early childhood programs, or schools, or roads, or any other social good.

We need to have a national conversation about who is paying for that burger.

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State Workers Pay Taxes Too

During a discussion the other day, a SPEA staff member made a point that seems to be lost in the contending, highly ideological arguments about the standoff in Wisconsin. She noted that public employees are also taxpayers, and that the Governor’s insistence that he is acting in the “interests of the taxpayers” didn’t seem to include the interests of that particular subset of taxpayers.

Her observation has just been quantified and amplified by Robert Russell, a Wisconsin state economic analyst, who pointed out that state workers are not only taxpayers, but consumers.

According to Russell, if public employee salaries are cut through increased withholdings as Walker is proposing, by an amount large enough to fill the $137 million budget gap, the resulting drop in consumer spending will lead to: 1) a loss of over 1,200 nongovernment jobs; 2) a loss of about $100 million in business sales statewide; 3) a loss of nearly $35 million in personal incomes of nongovernment employee households; and 4)  a loss of nearly $10 million in state tax revenues.

This is not about economics. (Indeed,  Governor Walker seems blissfully ignorant of basic economics.) It’s about ideology, hubris, and political payback.

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