25 Ideas For Community Development, 2008

ideas

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community development

The Roosevelt Institution 2100 M St, NW Suite 610 Washington, D.C. 20037

The 25 Ideas Series Volume 2 • Issue 2 • July 2008 Copyright 2008

Executive Director

Policy Director

Nate Loewentheil

Caitlin Howarth

Chair of the Editorial Board Kirti Datla

Managing Editor Ellen Davis

National Editorial Board David Carlson Gracye Cheng Jonathan Gould Lauren Henry Ata Hindi Frank Lin Elise Liu Fay Pappas

Challege Coordinators Daniel Townsend, Community Development Matthew Segal, Election Reform Timothy Krueger, Criminal Justice

Printed by Mount Vernon Printing Co. to responsible forestry standards. The opinions expressed within the 25 Ideas Series are exclusively those of the individual authors and do not represent the views of the editorial board, the Roosevelt Institution, or any of the organization’s chapters, centers, advisors, or affiliates.

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Community Development Volume 2 • Issue 2 • July 2008

Table of Contents A Net Benefit Regulation For Public Housing Redevelopment



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Danny Townsend, Yale University

Community-Run Rooftop Gardens



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Lindsey Gael, Cornell University

Improving Educational Equity



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Jacqueline Roche, Katie Roy, and Michelle Tafur, University of Hartford

Improving Teacher Retention

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Abby McCartney, Sam Brill, and the Center on Education, Yale University

The AG and College Eligibility: San Diego Education Reforms

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Sharanjit Singh, University of California, San Diego

Preventing GLBT-Motivated Hate Crimes Via Education

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Daniel Odom, George Mason University

Tuition Rebates: A Solution to Iowa’s Brain Drain

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Andrew Q. Morse, University of Northern Iowa

Wind Turbines on School Sites



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J. Cory Connolly, Michigan State University

Market-Based Forest Conservation



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Joanna Kristina Kyriazis, Cornell University

A Course on “Upcycling”



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John Patrick, Tulane University

Fast Public Transportation and Safe Bike Rides



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Angela Wong, Macaulay Honors College at Hunter College

Adjustable-Rate System Water Conservation



Roosevelt Institution Center on Environmental and Energy Policy, UNC at Chapel Hill

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Guaranteeing Water to Secure Development

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Riley Wyman, The Colorado College

Promoting Resident Ownership in Community Development Corporation Projects

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Catherine Zinnel, CUNY Hunter College

Post-Census Community Planning



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David Carlson and Amy Steinhoff, The Colorado College

A Comprehensive Homeowners Plan

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Virginia Calkins, Ann Chou, Bobby Fischbeck , Lauren Hunter, Jessica Lei, Danny Townsend, Yale University

Regulating Subprime Mortgage Lending

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Tori Phillips, University of California at Davis

Economic Revival and Charity Hospital, NOLA



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Matthew LaBruyere and Kayla Lato, Louisiana State University

Revitalizing Suburbs by Reusing Dead Malls John Good, Yale University

Reducing Medical Mistrust Among Native American Populations



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Kira Newman, Hannah Lupien, et al, Yale University

Federally Qualified Health Centers



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Solving San Diego’s Budget Deficit Problem: Hotel Taxes and the Tourism Industry

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Jarrad Aguirre, Yale University

Sharanjit Singh, University of California, San Diego

Cemetery Preservation in New Jersey



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Kate Maley, Rutgers University

Improving Flexible Tax Structures To Promote Low-Income Business

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By Peter Wallach, University of Virginia

Eliminating the 100% Marginal Tax Rate for Non-Custodial Parents James Coan, Princeton University

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25 ideas Summer 2008 The 25 Ideas project is a direct extension of the Roosevelt Institution’s mission to connect students’ ideas to policymakers. Each component has been designed with the lawmaker in mind: from the two-page, condensed formatting, to the inclusion of concise sets of key facts and talking points. Both easy to read and easy to understand, these ideas have been distilled into small bursts of creativity and thoughtfulness. Though they have been condensed here for the busy reader’s convenience, several of these Ideas are also available in extended form through rooseveltinstitution.org or in our upcoming issue of the Roosevelt Review. While we hope that you will enjoy reading these Ideas, they are not meant to stay on your coffee table. Some ideas have ramifications for those who work at the federal policy level; others, at the state or municipal level. Still others focus primarily on what universities can do. So no matter what level of government you focus on - or even if you are still a student - there is an Idea in these pages that you should consider acting on.







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Founded in 2004, the Roosevelt Institution is a national network of campus-based, nonpartisan student think tanks whose mission is to build a more progressive society. We seek to develop active, progressive citizens and leaders on college campuses through the research and writing of public policy and commentary, disseminating the products of that work to policymakers and elected officials on the local, state and national level. Through nearly 8,000 members at over 75 campus chapters across the United States, the Institution strives to connect students to the policymaking process through print and online publications, direct student-to-lawmaker connections, and annual conferences. We believe that students learn best through action and can contribute meaningfully to society while still part of an academic environment. As our members enter their professional careers, they bring with them the progressive values they’ve developed, the skills they’ve learned, and the relationships they’ve built with one another. The Roosevelt Institution has been featured in such publications as The New York Times, The Chronicle of Higher Education, and Der Spiegel. In 2008, the Roosevelt Institution merged with the Franklin and Eleanor Roosevelt Institute. The Institute is dedicated to preserving and promoting the legacy of its namesakes, and through the merger, gained access to a new generation of scholars and activists. Together, the new Roosevelt Institute will work to bring the values of Franklin and Eleanor to bear on future policies and leaders alike.

Letter from the Editors When the student leaders of the Roosevelt Institution met in the summer of 2006 to draw up the first set of policy challenges, they hoped to empower their peers to tap into the resources of their institutions and their own vast potential to advocate for fresh progressive answers to seemingly-intractable problems. The first edition of the 25 Ideas represented the best of those solutions. Now in its second year, the publication before you is evidence that what those few students in Hyde Park envisioned has become a reality. Of the hundreds of students who answered the call for submissions in the 2007-2008 school year, these twenty-five were chosen. They represent the unique experiences of student authors in their own communities, as well as collaborative brainstorming and contentious debate with their peers in Roosevelt policy centers across the country. Indeed, they exemplify the Roosevelt Institution’s commitment to policy solutions at all levels of government. Though their scope is occasionally global—as in the subsidization of Community Development Corporations (CDCs)—it is more often local—as in the reform for water policies in Colorado Springs. Community development is first and foremost an issue of development—zoning, construction, growth, and infrastructure— and the authors of this edition of the 25 Ideas addressed those issues with remarkably tailored solutions for their own communities. Andrew Morse urged student loan forgiveness in Iowa, while Matthew LaBruyere and Kayla Lato suggested the reestablishment of Charity Hospital to spur regrowth in New Orleans. Other pieces focus on the narrow question of development itself, and their fresh insights, on everything from net benefit regulations to mitigate gentrification to the construction of rooftop gardens in urban areas, illustrate the need to balance growth against sustainable practice and community needs. A central tenet of progressivism tests the strength of a community by measuring the welfare of its most defenseless citizens: the poor, the disenfranchised, the very old, and the very young. With that theme as its anchor, numerous pieces tackled topics as diverse as healthcare, higher education, and environmental sustainability. From Kira Newman’s analysis of medical mistrust among Native Americans to Daniel Odom’s indictment of hate crimes against GLBT students, some of the best answers to the community development challenge could not be narrowly defined as construction or economic growth at all. What each of these 25 ideas reflect is, instead, a progressive sensibility toward the problems of community development: equity, inclusion, history, sustainability, and growth. Part of that sensibility is an awareness that issues are far too complex, and their solutions far too specific, to be addressed by the broad stroke of theory. Trial and error, case study and prototype: these are the weapons of the progressive policymaker, and these are the tools of the student researchers and advocates featured in the 25 Ideas.

Acknowledgments The Roosevelt Institution recognizes and thanks the following people for their outstanding dedication to the success of this organization: Chris Breiseth David Woolner Richard E. French, Jr. Anna Eleanor Roosevelt Ambassador William vanden Heuvel Joe Louis Barrow, Jr. Alison Overseth Dr. Robert Curvin Dan Appleman Neil Proto David Merchant Sarah Brown Marian Breeze Mattie Hutton Ted Fertik Mark Newberg

National Advisory Board Senator Richard Lugar Representative Rosa DeLauro Representative Zoe Lofgren Representative Tom Allen Robert Borosage Richard Celeste Jon Cowan Jim Dean Stephen Elliott Al From Katrina vanden Heuvel Dee Dee Myers Amy Overton John Podesta Robert Reich Special thanks to Stephan Loewentheil for his early and continued support of the Roosevelt Institution, and to Michael Stegman and the MacArthur Foundation for making this series possible.

Thank you.

Special thanks to The Honorable Rosa DeLauro for

Her dedication to social justice and

Her service as Honorary Chair of this Challenge

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A Net Benefit Regulation For Public Housing Redevelopment Danny Townsend, Yale University

Create a minimum replacement level for public housing units as they go through redevelopment, avoiding a substantial decrease in the availability of livable, affordable housing.

Redevelopment is a major issue for the U.S. public housing stock. As many cities use HUD HOPE VI funding to renovate or demolish public housing infrastructure, they replace former public housing units with mixed income developments. This process increases socioeconomic diversity in a given neighborhood, but results in sometimes severe reductions in available public housKey Facts ing. Fewer units are built than • The US government has spent billions of are torn down, and the ones dollars on housing renovations since the that are created are no longer implementation of HOPE VI in 1992. affordable to previous tenants. • Despite these expenditures, available public housing has decreased by tens of thousands In some years, less than half of of units in many HOPE VI cities. those relocated by HOPE VI • As problems continue in the housing market, grants are able to move back public housing and affordable rental housing into new units. programs face more strain and demand, despite an already inadequate number of units.

A net benefit regulation could prevent drastic losses in public housing units by establishing a required ratio of planned new units to demolished units. Flexibility could be maintained for developers by allowing a sliding scale of replacement units, where a unit at a given level of affordability counts as replacing more than or less than one preexisting unit of public housing. This would allow for the creation of new mixed income developments to replace old public housing, but would create an enforceable minimum level of public housing retention. History The stock of public housing in the U.S., largely built between 1930 and 1982, has been in disrepair for decades. In response to this deteriorating housing stock, in 1992 Congress funded the HOPE VI redevelopment program to provide grant money for de-

Talking Points • The standard could be adjusted to a municipality’s needs by creating an affordabilitybased sliding scale, where one unit counts as more than or less than a previous unit based on a tenant income designation. • A net benefit regulation would create a standard of accountability for redevelopment programs, which could decrease the litigation that plagues current efforts across the country.

molition and redevelopment of public housing across the country. While billions have been spent in this program, many critics point out that redevelopment has focused in higher-income areas and favored mixed-income developments, resulting in a shortage of units for the most needy segments of the population. Despite the community-centered approach the program was supposed to entail, frequent legal battles between residents and redevelopers illustrate the high level of discontent many public housing recipients have with the development projects. Analysis A net-benefit regulation that sets a minimum replacement level for public housing redevelopments would prevent further unreasonable decreases in housing stock, and create a legal standard for municipalities and developers to use as recourse in the event of litigation. Mixed-income developments would be required to have a certain number of public housing units for each previous unit, or would have to create a proportionately larger number of affordable or market rate units for each foregone unit of public housing. Audience This kind of regulation would be suitable at the local, state, or federal level. It could be implemented in several different ways, such as through zoning regulations or incentivizing adherence to the standard via public funds. The policy would serve populations in any locality that has public housing, and especially those planning redevelopment. Next Steps Depending on what body implements the regulation, an acceptable minimum standard to define “net benefit” must be decided. What percentage of the original units must be created in a redevelopment project? A scale should be formed based on the affordability level of new units, with more affordable units weighted more heavily and more expensive units counting less. Redevelopment proposals could be assigned a score based on these figures, and a minimum score should be established below which redevelopment will not be considered or funded. ————————————

Sources

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Pitcoff, Winton. “New Hope for Public Housing?” Shelterforce 104 (1999). 1 Apr. 2008 False HOPE. National Housing Law Project. 2002. 1 Apr. 2008 <www.nhlp.org/html/pubhsg/ FalseHOPE.pdf>. *A full list of sources is available upon request

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Community-Run Rooftop Gardens Lindsey Gael, Cornell University

Build and organize community maintained and managed gardens on the rooftops of state-owned affordable housing units to provide the community unifying and useful space, a sense of empowerment, a source of healthy foods, and decreased energy costs.

Communities living in the large public housing projects of New York City live in concentrated poverty and face a battery of difficulties that go far beyond financial constraints. Higher than average rates of nutritional disease, depression, and feelings of isolation are just a few of the stresses felt by these communities. These basic problems should be Key Facts • In 2007, over 400,000 people addressed so that residents have more resided in New York City’s public stability to seek employment, improve housing. their communities, and live more ful• Rates of physical and mental illness filling lives. Community-run rooftop in this population are disproportiongardens are uniquely able to remedy ately high as a result of poor nutrimany of these problems because they, tion and dense urban living. • Installing a roof garden costs apunlike most programs currently running proximately $8-$25 per square foot in NYC’s federal housing communities, with minimal follow up costs and are interactive, community-run and reyearly returns to the investment. quire individuals to work together for • Gardening and access to green real, productive ends. These gardens space are linked with significant could offer intergenerational coopdecreases in obesity, high blood eration, a safe space away from street pressure, asthma, and depression. crime, community pride, and many health benefits.

Talking Points • As New York City becomes more densely populated green space is lost and poor communities are hardest hit. • Rooftop gardens provide healthy food and vegetation without requiring new land. • Studies show that community gardening significantly increases emotional and physical wellbeing, mobilizes communities, and provides safe space for children to learn and play. • Rooftop gardens improve air quality, decrease storm water damage, and cut energy bills by 25-40%.

History Community-run gardens have been successful in many low-income neighborhoods across the country. Ample evidence shows that community gardening is one of the most effective models for community development, however, as New York City faces an increase in population density and land costs, the ability to have community gardens will become increas-

ingly difficult. It follows that roof gardens can provide many of the same benefits as on-the-ground gardens, while taking future trends into account. In Germany and Switzerland intensive rooftop gardens that grow edible plants are widespread and successful, but this system remains underdeveloped in the US. Analysis This project requires an initial cost and thereafter partially pays for itself through decreased building energy costs. The rooftop garden creates a natural insulator which keeps the building cool in the summer and warm in the winter and thereby reduces energy usage. The initial cost varies depending on whether the rooftop garden is to be retrofitted onto an old building or built up with a new unit, and ranges from $8-$25 per square foot, but incentive programs can further reduce the cost. For two years after installation, volunteers or part-time employees would teach the community about gardening and specific practices such as composting that would allow the garden to sustain itself without outside funding. Audience Public housing authorities should finance and authorize the construction of rooftop gardens because decreases in energy and social services costs and increased resident satisfaction will benefit them. Agricultural universities and other institutions may be interested in donating or conducting research at these sites, and environmental groups may be interested in subsidizing the project. Effected communities should lobby for this policy because of the autonomy and numerous other benefits they stand to receive. Next Steps The New York City Housing Authority in partnership with other organizations should implement this plan on a small-scale. First a cluster of 4-6 public housing units in a particular neighborhood could be fit with rooftop gardens, and later the project can expand. Key community leaders should be targeted to help govern the garden and keep the community involved. ————————————

Sources

Green Roofs, “About Green Roofs,” Green Roofs, http://www.greenroofs.net/. Mullahy, John, et al. (2007). “Health, Income, and Inequality”. The Inequality Reader. West view Press. Pgs. 511-524.

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New York City Housing Authority, “Fact Sheet,” New York City Housing Authority, http:// www.nyc.gov/html/nycha/html/about/fact sheet.shtml.

New York City Department of City Planning, “Demographics Reports,” New York City De partment of Planning, http://www.nyc.gov/ html/dcp/html/census/demographic_studies. shtml. 13

Improving Educational Equity Jacqueline Roche, Katie Roy, and Michelle Tafur, University of Hartford

Educational equity should be addressed through community, rather than racial reform. Successful policy solutions may be implemented if the community effected is more developed, providing a better educational environment.

The attention racial issues receive in discussion of educational equity prevents people from recognizing the most prominent issue: socioeconomic differences among people participants. We propose that more funding be provided directly to the public schools and communities most in need, rather than putting more funding into specialized programs. To achieve educational equity, policymakers must attend to the issues of socioeconomic background and the community in which these students reside, not just their race. Some programs have been established to promote educational equity, such as in Hartford, Con- Key Facts • Sheff v O’Neill is a Connecticut Sunecticut, where magnet schools and preme Court case that resulted in a Project Choice, an urban-suburban landmark decision regarding civil rights bussing program, have had some and the right to education. success. These programs have a • Programs established for settlement of significant minority enrollment, but the Sheff v O’Neill case included interthe urban students that need these district magnet schools, Project Choice specialized schools the most are not Program, and interdistrict grants. necessarily present. Targeted funding to schools with predominantly economically disadvantaged students is the only long-term answer to the problem of educational inequity. Funding would also be used for efforts to increase parent outreach which is essential to improving public schools because increasing parent-teacher communication can positively affect the student’s educational support system. This will in turn allow parents access to information necessary to a child’s success in school, bringing about a more sound understanding between parents, teachers, students and their community.

Talking Points • States should rely on socioeconomic and community reform to resolve the issues of educational equity. • More funding should be provided directly to public schools, rather than putting more funding into magnet schools.

History The 1996 Connecticut Supreme Court verdict in the case of Sheff v. O’Neill found that the “guarantee of education cannot be constitutionally adequate if schools are racially and ethnically segregated.” This includes the current de-facto segregation in Hartford. After this ruling, there was a legal settlement

in 2003 that set a goal for voluntarily desegregating Connecticut schools through three programs. These programs included the development of interdistrict magnet schools, Project Choice Program, and interdistrict grants. These programs were meant to desegregate 30% of minority students in Hartford public schools by 2007. However, after the creation of 22 interdistrict magnet schools and the enrollment of 1,000 students into Project Choice, the 30% goal was not met. Since the state did not meet desegregation goals, the settlement was revised in June 2007 to include additional funding and new goals. Analysis In Hartford, efforts to bring equity to schools have failed, suggesting that the programs implemented are inadequate. Magnet schools and Project Choice have been popular programs, but are both deeply flawed. While magnet schools provide an opportunity for students to receive a better education that includes specialty programs, major problems remain. Magnet schools are not nearly as integrated as they aim to be. Additionally, they often take the best students from public schools; this results in an inferior learning environment for students who are not accepted into a magnet school. The process of becoming enrolled in a magnet school requires an application, allowing only select individuals with informed parents to have this advanced educational experience. The Project Choice program transfers urban minority students to predominately white schools in wealthy suburbs. Enrollment in the program has increased, and recently there has been greater participation in suburbs farther from Hartford. While this may provide a better educational experience for participating students, it does nothing for the students who remain in the troubled traditional urban schools. The home community of the student, and his or her local schools retain their status as de-facto segregated, impoverished, and neglected. The community at large also remains in the status-quo. Instead of transporting students to the suburbs, additional funding and resources must be given to Hartford city public schools and the community in which they stand in order to improve them. Next Steps States should re-evaluate their public school systems and the ratio of minority inner-city youth. More attention must be brought to the communities that underprivileged children reside in. Because magnet schools and the Project Choice program do not successfully resolve the issue of educational desegregation, more effort should be put into a rejuvenation and development of community. Rather than having to support costly transportation and better education outside of cities, communities should have the incentive to keep their children at home, to wholly benefit the community they reside in. ———————————— Sources ———————————— *A full list of sources is available upon request.

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Improving Teacher Retention Abby McCartney, Sam Brill, and the Center on Education, Yale University

In order to slow the revolving door of new teachers, we recommend a focus on teacher support, especially mentoring programs and sitebased training.

A lack of qualified and experienced teachers plagues our education system. Many teachers do not remain in the profession long enough to beat the learning curve, as 50% of teachers leave within 5 years in the US, 22% within the first 2 years. The loss of these teachers financially devastates schools, forcing them to put more and more resources into continuously recruiting, hiring and training new teachers, only to see them leave within a few years. The cost of replacing teachers who have either migrated to other schools or districts, or left the profession entirely, is estimated at around $4.9 billion. While some experts attribute Key Facts the teacher problem in Amer• 50% of teachers leave within the first two years of their employment. ica to a lack of interest in the • The cost of replacing them has been estiprofession, our research shows mated at $4.9 billion. that the issue isn’t recruiting • Mentoring and induction programs have new teachers; it is retaining the reduced teacher defection from 40% to 1%. ones we already have. Education experts compare investing in teacher recruitment to filling a bucket with a gaping hole in it. Our purpose is to do what we can to close that hole and stem the exodus of teachers from at-need schools. Questionnaires filled out by teachers who leave their jobs often list salary among the top factors influencing their decision. However, studies demonstrate that only large salary increases have a demonstrable effect on retention. Given that public schools already face such minimal funding, teacher Talking Points support programs are a much • Teachers have been found to account for the more cost-effective and realisgreatest difference in test scores of students. • Struggling urban districts are where we need tic way to encourage teachers our best teachers. Because of teacher migrato stay. History The current retention crisis has been a growing problem for some time. Since the mid1980s student enrollment has increased; this positive trend

tion and attrition, too many urban teaching jobs are staffed by teachers on “emergency contracts,” which often means that they lack the proper qualifications to teach. • Teacher induction and mentoring programs are a relatively low-cost way to improve teachers’ performance, attitude about their jobs, and plans to stay in the profession.

is darkened by the increase in teacher retirements, increasing the amount of vacancies. These empty classrooms were filled by less experienced teachers, “out of field teachers” (teachers who are forced to teach outside the grade and/ or subject in which they were trained), or substitutes. Despite the implications of the retirement trend, the problem continues to worsen because of low retention rates: retirement accounts for less than 1/3 of teacher attrition. Analysis The problem of teacher retention is a monster with two heads: attrition, or leaving the profession entirely, and migration, leaving a struggling school or district for a more affluent and/or stable one; both are addressed by mentoring and induction programs. We propose a formal structure to foster mentoring relationships between “master” teachers and younger, more inexperienced teachers. These mentors can help craft lesson plans, give advice, and serve as general support mechanisms for their junior colleagues. Induction and mentoring programs are most successful if they contain certain characteristics: They must be wellorganized with instructive and expedient activities, a formal mentoring aspect, reduced teaching requirements for new teachers, and a constructive assessment mechanism . The Santa Cruz district in California has set up what is now considered the gold-standard for teacher retention and has seen dramatic increases in retention. Another valuable support program is known as “teacher induction,” in which teachers receive rigorous training within their school or district before beginning work so that they feel more prepared, and more confident, in their new professions. Induction programs are generally more comprehensive than mentoring programs, complementing mentoring with seminars and workshops throughout the first year or two of a teacher’s career. One study has shown that induction alone has led to a dramatic increase in retention: the percentage of teachers involved reported they planned on staying beyond 5 years increased from 25% to 75% with induction. These two solutions together lowered the probability of a new teacher leaving the school from 40% to 1%. Next Steps Because each school district faces slightly different challenges school districts, with input from parents, teachers, and school boards, should create a formal plan to address teacher retention, including setting up mentoring programs and creating a standard assessment procedure. Addionally, school districts should look at current training standards and programs offered to new teachers, and make improvements as needed. ————————————

Sources

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*A full list of sources is available upon request. 17

The A-G and College Eligibility: San Diego Education Reforms Sharanjit Singh, University of California, San Diego

The San Diego Unified School Board should universalize A-G requirements in its high schools, allowing all students the equal opportunity to vie for admissions in the University of California (UC) and California State University (CSU) systems. If local high school graduating requirements are aligned with the A-G, then there should be a significant increase in college matriculation rates.

In San Diego, not enough courses are offered for all students to fulfill the A-G course requirement needed to gain admission to California’s public university systems. Moreover, wealthier school districts in San Diego County have higher graduation rates and more A-G courses available to their Key Facts • A-G courses consists of math, science, history, students. San Diego Unified social science, English, foreign language, and School District can buoy their art courses certified by the UC and CSU low student college matriculapublic schools . tion rate by offering more UC • Only 36% of high school graduates in the state and CSU qualified courses of California actually completed the A-G curclasses in math, science, hisriculum in 2006 with a grade of C or better. tory, social science, English, • San Diego has one of the lowest completion foreign languages, and art. rates (39%) when it comes to students satisfying the A-G . Low A-G completion rates • Discrepancies in A-G passage rates among equate to low college attenSan Diego County school districts result from dance, fueled by lack of parnot enough courses being offered to students ent and student awareness (See Table 1). about the importance of the A-G sequence. By aligning high school graduation requirements with the A-G sequence, students will be forced to complete coursework required for college admission. Talking Points • High school curriculum should be standardized so that completing the A-G curriculum is a mandatory graduation requirement. • By having A-G reforms implemented all students will have the necessary coursework completed to apply to UC and CSU schools. • San Jose has implemented similar reforms and currently has a student to course opportunity index of .95, meaning nearly enough A-G courses are offered for all students to fulfill the requirement .

History San Diego Unified School District can use San Jose as a model for instituting a standardized A-G sequence across their high schools. In 1998, the San Jose Unified School Board adopted a similar mandatory A-G policy, requiring every student to take the sequence before graduating. Consequently, San Jose currently has an A-G

opportunity index of .95, indicating that nearly every student has access to the required courses. The percentage of high school graduates who have completed the A-G requirements with a C or better has risen to 65% from 37% between 2001 and 2004 . Analysis In comparison to other school districts in San Diego County, San Diego Unified ranks fifth in A-G completion rates. In Table 1 an opportunity index of less than 1.00 indicates that not enough A-G classes are being offered. Furthermore, the closer the opportunity index gets to 1.00, the greater the A-G passage rate.

The Education Trust-West. Are California High Schools Ready for the 21st Century? Appendix B. The Education Trust-West, 2004. http://data1.cde.ca.gov/dataquest/

Audience Several interests groups in San Diego, including the ACLU, have formed an education consortium to help address the problem of high drop out/push out rates in K-12 institutions. Standardizing the A-G graduation requirement should be further addressed by school officials like superintendents, the local school board, and parents. Next Steps In order to demonstrate to the public and school board that aligning A-G curriculum with graduation requirements can be effective in getting more students into college, a test “pilot” freshmen class should be used. The entering freshmen in the San Diego Unified School District should be given enough A-G courses to take, and their graduation and college matriculation rates tracked. If more students from the pilot class graduate and pursue a higher education, then the school board should unanimously vote to adopt the policy for other entering classes. ————————————

Sources

*A full list of sources is available upon request

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Preventing GLBT-Motivated Hate Crimes Via Education Daniel Odom, George Mason University

By implementing a comprehensive educational policy focused on the awareness of gay, lesbian, bisexual, and transgender (GLBT) identities within its school systems, the United States will expect to see a decrease in GLBT-motivated hate crimes within ten years.

Hate crimes against GLBT individuals are on the rise in the United States. A statement issued by the Southern Poverty Law Center in 2005 asserted, Key Facts • In 2000 Gallup polls revealed that 54% “Homosexuals are far more likely of Americans found homosexuality “acto suffer violent attacks than any ceptable,” a sharp contrast from the 38% other [minority] group.” According of public support reported in 1992 . to the 2006 report issued by the • While nationally, South Carolina posFederal Bureau of Investigation, sesses only 1% of all sexually motivated of the 7,722 biased incidents filed hate crimes; internally, the state had a within the U.S., 1,197 were motivated 92% increase in sexual orientation based by sexual-orientation bias; this is a hate crimes between 2005 and 2006. 20% increase from 2005. History As of 2007, attempts to include GLBT Americans in the federally protected mandates of hate crimes have failed. This failure has particularly dangerous consequences for GLBT students. An increasing number of GLBT Americans are “coming out” at younger ages, but educational institutions are not revamping their policies to protect the emergence of GLBT students. Analysis American high schools are reporting an increase in homophobic activities directed towards GLBT individuals. Talking Points In 2003, the Gay and Lesbian • 78% of respondents in a 2007 Gallup poll Student Educational Network supported the expansion of federal hate (GLSEN) found that 17% of high crime laws to include crimes committed on school students were physithe basis of the victim’s gender identity and cally assaulted because of their sexual orientation. sexual orientation and 11.5% due • According to the Gay, Lesbian, Straight to their gender expression. In Educational Network, schools with a 2005, these statistics increased “comprehensive policy” dedicated to GLBT to 17.6% for sexual orientation protection have lower incidences of verbal, physical and sexual harassment among and 11.8% respectively. student populations .

Audience Physical violence against GLBT students has negative implications for school districts. Schools without comprehensive policies for GLBT protection experience lower test scores than schools with such policies, as students who suffer physical harassment earn lower GPAs (2.6 versus 3.1 on a 4.0 scale) . By protecting GLBT students, school districts such as Greenville will improve their academic rates, thereby increasing their received federal funds. Next Steps By protecting GLBT students, school districts improve academically and financially. However, achievement of these goals is conditional upon the adoption of the proposed multiplatform initiative, which will aim for implementation in Greenville, South Carolina. Include GLBT Status in Non-Discrimination Policies Presently,Greenville School District gives students the right to freely attend and participate within the public school system regardless of “race, sex, color, disability, religion, or national origin”. GLBT status is not specifically mentioned. GLBT identity must be specifically included within these policies to protect the positive educational, physical, emotional, and social development of GLBT students. Educate School Officials about Needs of GLBT Students Enforcement of policies is conditional upon the education of Greenville administration of GLBT student needs. Implementing training seminars for faculty members, modeled after programs developed by the National Coalition Building Institute, ensures administrativeallies versed in GLBT student needs. Fund GLBT-Student Groups The 1984 Federal Equal Access Act states that all student groups may be recognized by school boards on the basis that the districts receive federally allocated funds and possess limited open forums . Greenville schools must allow for the conglomeration of students within Gay Straight Alliances within their school districts. This will ensure the positive development ofGLBT students and curb antiGLBT sentiments in heterosexual students. Implementation of these initiatives within the Greenville School District would serve as an important model for other districts considering GLBT integration.

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Sources

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*A full list of sources is available upon request 21

Tuition Rebates: A Solution to Iowa’s Brain Drain Andrew Q. Morse, University of Northern Iowa

Giving students a loan to cover tuition costs, contingent on having them stay within the state after graduation to work will gradually eradicate the projected 150,000 educated worker shortage in Iowa.

Iowa’s college graduates are fleeing the state at record numbers. The Generation Iowa Commission found that the state loses 6,367 college-educated individuals per year to other states. These graduates are leaving Key Facts in search of more opportuni• The state of Iowa faces a projected 150,000 ties and better wages—Iowan educated worker shortage by the year 2012. workers are paid significantly • Students graduating from a Regents university less than national averages, report the highest student loan debt in the even when factoring in the country. lower cost of living. And the • Since 2001, Iowa’s public universities have experienced soaring tuition increases of 98% at situation is not ameliorated the University of Northern Iowa and 72% at the when considering the cost University of Iowa and Iowa State University. to attend a four-year public university: with the total cost of a year of college exceeding 30 percent of the typical student’s gross family income, Iowans graduate with an average of $23,198 in student loan debt, the highest in the nation. A forgivable loan program would combat Iowa’s brain drain issue by providing students with money to cover their education costs in exchange for working within the state after graduation in the healthcare, education, or business fields. History Currently, there are no existing student loan forgiveness programs in the United States with the primary objective of retaining college-educated workers. In Georgia, students who wish to attend an institution of Talking Points higher education can do so • Iowa’s students currently face the worst labor through the HOPE grant if market and highest tuition prices in the nation, they maintain a B average in leading to considerable brain drain. high school, but they are not • By establishing an incentive to remain within the required to work within the state, Iowa’s leaders can ameliorate the rapidly deterioriating situation, saving Iowa’s student state after graduation from capital, and rejuvenate its economy. their respective institutions. • The $2.14 million investment should be entirely Students who enroll receive covered by increased tax revenue. $3,000 per academic year

to pay for full-time enrollment costs. Since its inception in 1993, the HOPE grant has helped over one million students attend one of Georgia’s colleges or universities. Analysis A college degree is the single most important determinant of career success. College-educated men and women earn 19 and 37 percent more income per year than their counterparts without a degree. The human capital generated by higher education will increase Iowa state tax revenue and improve its economy overall. Additionally, investing in the education of citizens will allow Iowa to grow in other ways outside of the economy. Young people who earn college degrees become less reliant on government programs such as welfare and are less likely to commit crimes such as theft; students who graduate with less debt are less likely to declare bankruptcy. Furthermore, recent graduates will have a stake in their community because they will feel an obligation to not only their government, but also their fellow citizens for the investment each has made to their success. Citizens who had previously been dependent on government programs will be able to build independent lives for themselves. Next Steps Thus, Iowa should provide students with the option of a renewable $6,300 statefunded loan to cover tuition costs that would be forgiven after five years of work within specific underemployed fields. Such a program would help students graduate debt-free and decrease Iowa’s worker shortage. Granted, the initial cost of $214,000,000 for the program is steep, but the state of Iowa nonetheless has an obligation to make the Regents universities—which are funded through tax dollars—affordable for all its citizens. Moreover, by filling the shortages for higher-paid workers, the program should increase tax revenue enough to pay for itself within only a few years. ————————————

Sources

Georgia’s HOPE program. (2008). Retrieved May 20, 2008 from Georgia State Govern- ment: Web site: Hunt, J. & Carruthers, G. (2006). The National Cen ter for Public Policy and Higher Education. The national report card on higher education, 1-32. Iowa Department of Revenue. (2005). Iowa De partment of Revenue 2005 Iowa Individual In come Tax Annual Statistical Report. Web site: http://www.iowa.gov/tax/educate/05increp.pdf

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Lyons, H.M. Fiscal Services Division. Legislative Ser vices Agency. (2007), Iowa Factbook 2006. Web site: http://www.legis.state.ia.us/Fiscal/factbook/ Iowa_Factbook_2006.pdf Student Debt and the class of 2005: Average debt by state, sector, and school. (2006). The project on student debt, 1-6. The College Board. (2006). Education pays: Sec ond update. Trends in higher education Series, 1-11. * A full list of sources is available upon request 23

Wind Turbines on School Sites J. Cory Connolly, Michigan State University

In Michigan, the use of wind turbines can help reduce economic problems in school districts, allowing for increased funding for supplies, curriculum, and faculty. Wind turbines can also provide an educational supplement to any curriculum.

In Michigan the use of wind turbines can help reduce economic problems in school districts, allowing for increased funding for supplies, curriculum, and faculty. Wind turbines can also provide an educational supplement to any curriculum. History The state of Iowa is the nation’s leader in schools operating with supplemental wind energy. Iowa has ten schools with wind turbines that provide economic and educational support. Iowa ranks tenth nationally in average wind speed and Michigan ranks a comparable fourteenth. Wind resources in Michigan Key Facts • Michigan has the 14th highest wind are generally located along the lake resources in the United States. shores, in the Thumb region, and in • Successful projects in other states have the Keweenaw and Leelanau penseen savings after payback ranging from insulas. While wind is most preva$3,496-$120,000. lent in these areas it is by no means exclusive to these regions. Analysis The potential for wind turbine implementation must be examined throughout the state on a case by case basis. For a school turbine project to succeed it must have adequate wind speeds (15mph or higher) and obtain connection to the electric grid at a reasonable price for the school. Once this is obtained Talking Points a school must be able to have net • The Michigan education system is nometering. Net metering means that toriously underfunded, the use of wind the energy produced by the school’s turbines on school sites in selected turbine goes toward powering the areas would help to ease financial burdens on various school districts. school, and when the energy pro• Wind energy can be used as a tool to duced is in excess (i.e. at night when promote education and protect the energy required is minimal) the enenvironment. ergy flow is sold to the electric com• Wind turbines have been successful pany. The amount that a school can in other regions of the country and in obtain per kilowatt (kw) produced tandem with the correct policies could has a major influence on whether it be effective in Michigan. will pursue the installation of a wind

mill. These are the three major difficulties that a school faces: initial project cost, grid connection at a set price, and a guarantee of net-metering. Without these variables in place wind turbines on school sites lose the economic incentive. There are a variety of avenues to fund wind turbine projects on school sites. The means for projects across the country vary greatly from grants, donations, loans, and governmental incentives. Some of the most intriguing funding initiatives include: revolving loan funds, locally based bonds, and the renewable energy production incentive. All of these means of funding are essential to school site projects. Existing successful projects had a wide range of costs, from 48,000 dollars to 1,800,000 dollars. Due to the difference of project costs there is also a major discrepancy in the amount of time necessary to payback. The payback period for existing projects in Iowa ranged from 4 years to 13 years. In Iowa a revolving loan fund was used to help diffuse costs by providing no interest loans to schools and local governments that were implementing alternative energy. Michigan had a similar revolving loan fund until 2006. In addition to a loan fund schools can look toward grants and other forms of state incentives. One avenue not examined in former alternative energy projects is the use of local bond sales. A community could sell a bond to pay for an alternative energy project. Once the funding is secured it is only a matter of time before the project begins to show major financial benefits for school districts. In Iowa the average annual savings per school district after payback ranged from $3,496-$120,000. Some schools also had revenue ranging from $5,602-$560,000. While Iowa may possess slightly higher wind speeds than Michigan, similar ranges of savings and revenue are not unlikely if wind turbines are implemented in Michigan. Next Steps To increase development of wind turbines on school sites the state of Michigan should reestablish the revolving loan fund to diffuse start up costs and encourage more alternative energy production. Additionally the state should evaluate school sites for feasibility. Those schools that show feasibility should be guaranteed net-metering and a set price comparable to current energy costs per kilowatt. Specific funding dynamics for the turbine itself can be determined on a case by case basis. By diffusing start up costs, guaranteeing net-metering, and guaranteeing a competitive price for wind energy produced by schools, the state of Michigan can promote wind energy as a means of saving money, promoting the environment, and as an educational tool. ————————————

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*A full list of sources is available upon request 25

Market-Based Forest Conservation Joanna Kristina Kyriazis, Cornell University

The creation of a market or a system of payments for the ecosystem service of carbon sequestration in New York would provide economic incentives for the preservation and restoration of private lands.

Although Federal Public Land Management Agencies currently own and manage a significant proportion of forested land in New York State, many acres of forest still reside in private hands. Often these forests are left untouched Key Facts as landowners hope to increase their • Forests provide the service of carbon sequestration free of charge. property value before selling their • Many U.S. forests are still privately land to developers. owned. • Payments for Ecosystem Services provides a solution to our emissions problem and an economic incentive to conserve our forests.

In order to encourage the conservation of our forests we must acknowledge the services they provide in economic terms. For instance, waterflow control, wildlife habitat and diversity, and carbon sequestration are “free” services that society enjoys and upon which society depends. As energy regulations become increasingly strict, a greater focus is placed on national forests and their key role in carbon storage and offsetting industrial carbon emissions. History Payments for Environmental Services (PES) are being developed and implemented in many countries, particularly developing nations that depend most on intact natural resources. Argentina, Brazil, Colombia, Ecuador, El Salvador, Guyana, and Mexico currently have projects underway, although Costa Rica and Talking Points Indonesia seem to be the most ad• Argentina, Brazil, Colombia, Ecuador, El vanced in this field. Australia, South Salvador, Guyana, Costa Rica, IndoAfrica, the EU and even the U.S. nesia and Mexico currently have PES have also implemented aspects of projects underway. the PES scheme. • U.S. forests in the United States currently sequester 10% of carbon dioxide emissions from fossil fuels.

Existing programs in New York State focus on conservation easements, the transfer of development rights, and technical assistance to land owners who maintain their land in an environmentally sound manner. The Department of Economic Development runs an Environmental Investment Program, within which there is an Environmental Servic-

es Unit. Although this unit mainly focuses on pollution prevention and recycling, carbon sequestration can be added to the recognized and rewarded ecosystem services. The National Forest Foundation’s Carbon Capital Fund allocates donated funds toward the restoration of national forests that have been damaged by wildfires and other natural disturbances. Finally, the U.S. Forest Service is also currently exploring opportunities in PES and market-based conservation. Analysis The preventative measures in current energy legislation should be supplemented by a mechanism to deal with existing carbon emissions. This system would provide an established mechanism for carbon sequestration and the offset of carbon emissions. Forests in the United States currently sequester 10% of carbon dioxide emissions from fossil fuels. By ‘employing’ current landowners, costs on training and external labor would be diminished and a personal investment in the land would be fostered. Major technological and infrastructural “clean up” costs would also be cut by maintaining natural systems that replace these services. Land owners should be granted per acre environmental service payments for preserved and restored forested land. These payments should be in the form of tax deductions or annual payments from a designated organization. Funding for payments would ideally come from the beneficiaries of these services, namely car owners, city-dwellers, and industries, through a carbon tax or similar imbursement system. Existing funds such as the aforementioned Carbon Capital Fund could also act as a monetary sink, attracting donated funds from beneficiaries and allocating this money to worthy landowners. Next Steps Payments for Environmental Services in carbon sequestration can be incorporated into the current New York Department of Economic Development Environmental Services system. Local landowners should be informed and encouraged to apply. Mapping out the most reasonable sources of funding is also vital to the sustainability of this system. Federal agencies should help to encourage other states to develop and implement similar PES programs. ————————————

Sources

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G. Arturo Sanchez-Azofeifa, Alexander Pfaff, Juan Andres Robalino, andJudson P. Boomhower (2007). Costa Rica’s Payment for Environmental Services Program: Intention, Implementation, and Impact. Conservation Biology. DOI: 10.1111/j.1523-1739.2007.00751.x Accessed March 3, 2008 . Pagiola, Stefano. ¨Can programs of payments for environmental services help preserve wildlife?¨ Accessed March 4, 2008. . 27

A Course on “Upcycling” John Patrick, Tulane University

Use recyclable materials to educate, design, and build sustainable campuses.

William McDonough and Michael Braungart’s concept of “upcycling” can help fill the gap left by current practices. Upcycling is the practice of Key Facts converting waste materials into • The idea can affect college students and products of greater value. Upcyfaculty, reusing and reducing consumpcling differs from recycling in that it tion at schools, in addition to making doesn’t transform waste back into products for future students. the same products over and over, • In 2006, Tulane University recycled 137.9 tons of material. but still gives society a solution to • Other colleges across the nation should the traditional landfill. recognize that there are large monetary gains in upcycling.

Colleges, institutions intended to train future leaders, look towards converting their waste into meaningful items that can be utilized by students and faculty on campus: desks, chairs, food trays, and, in some cases, buildings. As more and more students begin to seek campuses that live lighter, demonstrate ethical development, and bring innovation to one’s daily life, schools can begin to develop strategies that engage this audience both inside and outside of the classroom. History McDonough and Braungart discovered their interest in upcycling in 1991 at a celebration for EPEA. The two coauthored the design principles for the 2000 World’s Fair. Today, upcycling is being implemented on a wide scale. Creative approaches to design, such as the interior design concept at Cooper-Hewitt National Design Museum’s awards gala last summer and the conversion of recycled polyester soda bottles into carpet. The Katrina FurTalking Points niture Project is another • Emphasis on recycling, in an effort to “green” colexamples of how “waste” lege campuses in the United States, has helped can be converted into reduce operational costs, raise responsible citizens, and—some argue—increase the marketability products of greater imof schools. portance. Cooper-Hewitt • However, recycling does not offer a compreturned 6,000 pounds of hensive and lasting solution to the needs of the paper strips into giant topienvironment, particularly at a time when the state aries and chandeliers. The of the environment is one of the world’s most Katrina Furniture Project pressing issues.

was established to create neighborhood furniture-making workshops that facilitate the reuse of debris left by the storm and “help build the economic and social capacity of affected neighborhoods in New Orleans.” Both of these meaningful projects show the benefit to society, savings accounts, and the environment. Analysis Tulane should recognize the gains to be had by using upcycled products in many of its post-Katrina improvement projects. For example, the dormitory on the drawing boards could contain recycled paper from the campus. At Tulane, students can begin to develop actual solutions for urban issues globally but most importantly, at home. As part of this proposal, a class to be taught in the School of Architecture to educate students on design and construction through reusing materials should be incorporated into Tulane’s curriculum. The semester project will require that students learn about materials and their potential reuses but also collaborate with the Office of Environmental Affairs, the Campus Architect and Planning Office, and the School of Architecture to bring more sustainable design approaches and systems to campus. As a research university, Tulane can seek new forms of building and development based on the fundamental upcycling principles presented by McDonough and Braungart. Next Steps Upcycling is a project that will benefit students, Tulane University, and the environment. Colleges should be informed of the benefits and encouraged to put their recyclable goods to greater use on campus. From there, colleges may organize a way to break down materials in such a manner that facilitates creating new ones more efficient. Lastly, they should develop relationships with manufacturers to develop cost-efficient strategies to bring new life to recyclables and improve their campuses. ————————————

Sources

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Timothy Egan, “The Greening of America’s Cam Design for the Other 90%, Katrina Furniture Project, http://other90.cooperhewitt.org/De puses”, The New York Times, Jan 8, 2006, http://www.nytimes.com/2006/01/08/ sign/katrina-furniture-project education/edlife/egan_environment. html?pagewanted=print Tulane Office of Enviornmental Affairs, “Tulane Recycling, 2006”, http://www.tulane. edu/~eaffairs/PDFs/Tulane_Recycling_2006. Penelope Green, “The Year of Eco Decorating”, The New York Times, Nov. 29, 2007, http:// pdf www.nytimes.com/2007/11/29/garden/29eco. html?_r=2&oref=slogin&oref=slogin

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Fast Public Transportation and Safe Bike Rides Angela Wong, Macaulay Honors College at Hunter College

To help meet New York City’s sustainability goals, congestion and traffic pollutants should be reduced, with corresponding improvement to public transportation as funded by vehicle taxes. This program should be paired with an effort to make the city more bicycle-friendly.

New York City currently has the second–worst air quality among US cities. In an effort to mitigate air pollution and prepare for the future, Mayor Michael Bloomberg has proposed a plan to tax vehicles that enter Manhattan. Key Facts However, congestion and air quali• Approximately 0.292 pounds of carbon ty from vehicles must be addressed dioxide is emitted for each mile a person more aggressively and reduced by is on a hybrid bus, while 0.877 is emitted for each mile a person drives in a car. investing in alternative modes of • Low-cost bicycle rentals and safe bike transportation and promoting bilanes will popularize this alternative cycle use. mode of transportation.

History The Metropolitan Transportation Authority (MTA) operates an extensive citywide subway and bus system. It is comprised of almost the same number of train stations as all of the other subway systems in the world combined. Despite its vastness, further investment is required for maintenance, improvement and expansion, especially to sustain the predicted increase in population. Reliable public transportation will help reduce the vehicles on the street, thereby lessening the air pollution. Subways do not release a large amount of carbon dioxide into the city because they run on electricity. Hybrid buses also help reduce greenhouse gas emissions. Bicycles can serve as a mode of alternative transportation in New York City. In 1980, six to eight feet wide bikes lanes were constructed, separated by a barrier from the street on 5th, 6th, 7th Avenues and Broadway. However, the barriers were torn down only a month after they were laid because pedesTalking Points trians and food vendors served • The United States is one of the leading as obstacles for the few bicyclists carbon dioxide emitters and 20 percent of carbon dioxide emissions in this counwho used the lanes. Currently in try come from transportation. New York City, there are only 111 • There will be a higher demand for transmiles designated for cycling, out of portation in New York City in coming the 6,200 miles of roads dedicatyears because the population is expected ed to automobiles. Most of these to increase in New York City to 9.1 million limited lanes are poorly planned by 2030. to coexist with vehicular traffic.

Analysis Although the MTA carries 7 million commuters every day, vehicles still congest the streets. Should Bloomberg’s plan to tax vehicles be implemented, this revenue should be allocated to expand and upgrade public transportation. Reduction of the number of cars on the streets of Manhattan due to taxes will expedite buses, but more frequent service should be added. Below the ground, the subway system can also be expanded. The subway system has been responsible for exponential growth in the outer boroughs during the late 1800s, and extending lines and providing more connections will help advance the city today. Biking to work in New York City is feasible. Pedestrian and bicycle paths on bridges have already been opened through the efforts of Transportation Alternatives, an organization working to increase pollution-free transportation in New York City. London and Paris launched successful bike rental programs in 2007. To achieve a similar program, racks from which bikes can be rented should be available throughout the city and wider bike lanes should be built. Barriers that separate the automobile traffic from the bike lanes will ensure safety and access. Furthermore, to promote this mode of transportation during the first two weeks of the program, rental prices should be half off and free biking lessons should be offered. Next Steps This project should be funded by the New York City government as part of PlaNYC, an initiative to achieve sustainability by 2030. Fines should be given to vendors and pedestrians who block bike lanes. Such fines and taxes on automobiles can be used by the city government to keep bike rental fees low through subsidizing measures. With low bike rental fees and heavy taxes on automobiles, biking will become more favorable relative to auto transport. This and the option of quick public transportation will reduce the number of private cars on the roads and in this way reduce emission of carbon dioxide. This will improve the quality of life of the city’s residents while providing the city with another draw to attract visitors and bring more money into its economy. ————————————

Sources

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Beardsley, Eleanor. “Paris’ Popular Bike Program arthnews.com/Green-Transporta May Inspire Others.” 15 September 2007. Na tion/2005-10-01/Making-Wiser-Transporta tion-Choices.aspx > tional Public Radio. 28 February 2008. <www.npr.org/templates/story/story. “Open NYC: Congestion.” New York City Gov php?storyId=14429468> ernment. 28 February 2008. er: Making Wiser Transportation Choices.” October/November 2005. Mother Earth News. 1 March 2008.
Adjustable-Rate System Water Conservation Roosevelt Institution Center on Environmental and Energy Policy, UNC at Chapel Hill

An adjustable-rate system for residential water consumption would provide a fair, predictable and flexible way of encouraging people to reduce their water usage, while helping to prevent critically low water levels, lessening the impacts of future droughts.

Unlike the industrial and agricultural sectors, where water usage is controlled by regulations and financial incentives, residential water use is unregulated, providing no strong economic incentive for conservation. Therefore, this policy specifically targets this sector by creating an economic incentive for people to use less water in their homes, in addition to suggesting convenient and feasible ways for reduc- Key Facts ing water consumption. • A significant portion of the continental U.S. was recently in

An adjustable-rate water usage system a drought. would establish fees for water use based on • Residential water use (and waste) is unregulated. deviation from a predetermined amount of • An adjustable-rate water usage consumption. The baseline water allotment system would encourage savfor use in each home and the fees associated ing water by charging heavier with it could be determined by state and lousers more money. cal utility governing bodies. To be equitable, the baseline would have to be adjusted to reflect the number of people in a particular home. Households that consumed more than their baseline amount would be charged water fees that progressively increased in proportion to the amount of excess water consumed. Likewise, those households which used less than the baseline amount would receive progressively greater reductions in their rates, proportionate to the amount of water they ‘saved.’ The reductions in rates would function as ‘rewards,’ and would be funded through the redistribution of the ‘penalty’ fees that were collected. In this way, a given water company would not be accused of profiteering off of fees, and the company would not suffer financially as people reduced their water consumption. The various utility governing bodies could determine Talking Points the amounts of these rewards and • An adjustable-rate system reduces the fees. The governing parties could impact of drought. also take into account factors like • Such systems save water by creating a profit-based conservation motive for need, household size, tax bracket, residential users. and the local water supply. • While simpler than specific regulations against water usage, adjustable-rate water usage systems would require a way for people to monitor their usage.

History Last November, 37% of the continental United States was in moderate or

exceptional drought, with the driest conditions being experienced in the Southeast. Falls Lake, the primary water source for Raleigh, NC, had just over 100 days’ supply of water remaining. Although restrictions on water use are familiar to many, droughts could someday reach such a level of severity that voluntary restrictions and conservation measures would no longer be enough to maintain an adequate supply of water. By using simple conservation methods and economic incentives, excessive water usages can be decreased and hundreds of thousands of gallons of water can be saved. Analysis By creating a monetary “carrot and stick” system, this policy simulates the profit motive that businesses and agriculture face for conserving their resource usages. Another advantage presented by this policy is its relative simplicity. It does not require anyone to see if lawns are being watered at inappropriate times, nor does is mandate that any specific conservation measures be taken. It simply provides the incentive for people to choose ways to conserve that they deem easiest. This relative unobtrusiveness makes regulation simpler. Water conservation is also important in preventing interstate disputes over water, such as the one settled last November between Alabama, Florida, and Georgia. The situation was aggravated by drought conditions. Lowering water demand through a conservation policy would lower the likelihood of such disputes occurring by lessening the impacts of droughts. Finally, this policy could be implemented even when there was not a drought. This would both keep water levels in reservoirs relatively high and acclimate people to conserving water. Continual implementation of this policy would also lower the chance of water shortages due to a state’s expanding urban population. For instance, as more people migrate into North Carolina, the state’s water resources will be used at higher rates; to combat this problem, water should be conserved at all times to lower usage rates. Next Steps In order to fairly implement the policy, residential users would need to be able to monitor consumption rates. Users could be informed of their water consumption through a variety of means; for example, they could receive weekly or bi-weekly letters or emails, or use an online monitoring system. Water companies could also promote the installation of individual water meters for each home. In addition, people would need to be informed of ways to conserve water - fixing leaks, installing low-flow shower heads, running only full loads of laundry in the washing machine, etc. This information could be available on a website and included with each water bill. ————————————

Sources

*A full list of sources is available upon request

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Guaranteeing Water to Secure Development Riley Wyman, The Colorado College

Requiring developers to provide actual water resources instead of legal guarantees before construction begins can reduce depletion of water resources and hold developers accountable for their strain on natural resources.

With current levels of natural, renewable water resources, Colorado Springs can hardly support its current population, let alone its alarming growth rate. As finite aquifers continue to deplete, as droughts continue to limit usable water, and as conflict between counties and cities rages over existing and future water rights, Colorado Springs must accept the need for caution in development and growth. In conjunction with seeking out renewable, reliable water sources, western Key Facts cities like Colorado Springs should • A main aquifer in Colorado Springs has insist that developers accept respondropped 25-30 feet, and could vanish sibility for water resources. When deentirely in our lifetime. velopers apply for their city building • A recent water program proposal would cost the community $1 billion. permits, they should be required to On the other hand, the cost to develpresent a feasible plan for access to opers would be in the high millions. a physically available, 100-year supply before construction. In establishing a 100-year supply, developers should be made to follow Arizona’s successful Groundwater Management Act and demonstrate the following: that a sufficient quantity of water is physically, legally, and continuously available for 100 years; the water source meets water quality standards; the proposed water use meets conservation standards; and the applicant is financially capable of installing necessary distribution and treatment facilities. History In most of the West, cities like Colorado Springs and Phoenix were built on desert, semi-arid land with limited water supplies. Colorado Springs has only two natural sources of water: nonrenewable aquifers that could deplete in Talking Points our lifetime, and a single stream lack• Water resources are depleting faster than they can replenish. ing the capacity to sustain the state’s • Wet water requirements, unlike simple second largest city. Colorado water water rights, ensure that actual resourc- law separates water from the land and es are available. allows for marketable water rights, • Requiring that development pay for itso Colorado Springs was able to find self promotes responsible development enough water in the mountains and on and protects future resources.

the Western Slope. However, as resources dwindle and projects become financially unfeasible, the current system will become less and less sustainable. Similar policies have been approved in California, Frederick, Maryland, and a few communities along Colorado’s Front Range. Arizona, however, is the best example of the success of an “assured water supply” program. This program is credited for the advancement away from groundwater towards renewable water resources. Directing growth according to the availability of water has shown recent positive results in the areas where it has been implemented. Analysis Hydrological studies demonstrate that a 100-year supply ensures resource stability for both the short and the long term. Legal guarantees provide resources only if there is enough precipitation and holders of senior water rights have already satisfied their water needs, and therefore are often unpredictable and unreliable. Requiring firms to meet conservation standards ensures that future water access is sustainable, and financial capability promises responsibility and accountability on the part of the developer. By forcing developers to find water resources and internalize their costs by purchasing the water themselves, communities will be built on stable resource profiles rather than on unreasonable expectations. Communities that are slowing in growth will no longer be hindered by fear of inadequate water resources, and unnecessary, unsustainable development will not expand. The classic economic adage that “development should pay for itself” will finally be reflected in reality. This proposal will not incur heavy costs for the city itself; however, the cost to developers may be high, as they must purchase more water rights and seek out transportation and storage methods. A recent development on Colorado’s front range of about 154 homes bought $2.3 million in additional water for the district. Though the cost may be prohibitive for some firms, it ensures that growth be directed where it is sustainable and encourages developers to build responsibly in locations with long-term viability. Notably, this proposal does not negate the city’s obligation to provide water sources to its citizens; instead, it provides strict guidelines for future development. Next Steps In order to prevent further exploitation of water resources, city and county policy makers should enact a special mandate that goes into immediate effect. Developers whose projects are already underway should also be encouraged to comply. Because developers may not know how to seek out wet water, city and county governments should disseminate information about local resources. Partnership between government and developers is critical to success, and a sustainability task force can aid the developers in their search for suitable development sites. ———————————— Sources ———————————— *A full list of sources is available upon request

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Promoting Resident Ownership in Community Development Corporation Projects Catherine Zinnel, CUNY Hunter College

Resident ownership in Community Development Corporation (CDC) projects provides an opportunity for residents and families to grow their financial assets as community assets appreciate, thereby fostering family security while building community.

For over forty years, poverty alleviation has moved on two Key Facts • From 1995 to 2004, the wealth share of the separate policy tracks. The least wealthy half of the population fell from 3.6 first has produced a set of to 2.5 percent of total wealth. people-based strategies that • In 2004, the wealth gap between white and mitigate poverty through innonwhite families was twice the income gap. come supports and services. • As of 2005, 4,600 CDCs have produced The second has generated 1,252,000 housing units, developed 126 million place-based strategies that square feet of commercial space, and created 774,000 jobs. attract investment and improve the physical condition of impoverished communities in an effort to improve residents’ lives. However, the failure to link peoplebased and placed-based strategies has resulted in gentrification, community destabilization, and resident displacement. Integrated efforts to address people and place must connect the building of community assets to the growth of residents’ assets. This is particularly important in light of the widening gap between rich and poor in terms of both income and wealth. Without assets, poor residents and families can neither participate in economic development nor resolve crises—such as rent increases or job loss— without severe consequences. Talking Points Resident ownership in CDC proj• Community builders cannot combat ects enables them to participate poverty without confronting residents’ in and benefit from neighborhood lack of financial assets. development activities as stake• Resident ownership in CDC projects holders and shareholders.

•

integrates efforts to improve people and place: residents receive direct financial returns from neighborhood development activities. An equity stake gives residents a voice in the development process—as stockholders, not just stakeholders—in partnership with the CDC and other investors.

History Community development corporations (CDCs) are non-profit entities established by local stakeholders whose goal is to revitalize a low-income, low-wealth commu-

nity. CDCs are often associated with affordable housing development but also engage in real estate and economic development. CDCs generally develop or acquire commercial real estate projects–shopping centers and mini-malls in urban areas–to stimulate the neighborhood economy and provide needed retail services. No CDC has fully carried out a sale of stock to residents. However, the standard CDC model–in which profits accrue to the corporation and residents receive benefits in the form of access to retail or community services–must be modified to offer direct financial returns to residents who live in neighborhoods where private sector interest is emerging. Analysis CDCs and broader communities considering resident ownership must examine its many dimensions. For instance, practitioners must decide whether stock will be extended to families within a geographic area or an income level. Practitioners must also define the relationship between short-term and long-term returns, collective and individual ownership, and the type of legal structure that best meets the community’s goals. Revision of federal securities law to better reflect the goals of resident ownership can decrease the costs associated with SEC compliance. In most cases, resident investment will account for a relatively small portion of a project’s total financing, with residents paying between $10 and $100 a share. Tying public subsidies for private developers to partnerships with CDCs will promote the planning and implementation of CDC projects with resident ownership. Next Steps To date, no CDC has fully carried out a sale of stock to residents. Therefore, the CDCs who first successfully pursue resident ownership will significantly affect strategies for future implementation and encourage replication across the country. Thorough and effective documentation will be crucial to expediting this process. ———————————— Sources ———————————— Bernstein, Jared, “Minority Wealth Gap: Net Worth Gap Twice that of Income,” Economic Policy Insti tute, March 15, 2006.

Kennickell, Arthur B., “Currents and Undercurrents: Changes in the Distribution of Wealth, 1984 – 2004,” Federal Reserve Board, January 30, 2006.

Kennedy, Maureen and Paul Leonard, “Dealing with Neighborhood Change: A Primer on Gentri fication and Policy Changes,” Discussion Paper from PolicyLink and the Brookings Institution Center on Urban and Metropolitan Policy, April 2001.

*A full list of sources is available upon request

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Post-Census Community Planning David Carlson and Amy Steinhoff, The Colorado College

By mandating community re-evaluations every decade, zoning laws will reflect a contemporary community vision that can easily reflect changes, rather than represent archaic planning goals.

Progressive city planning in local governments across the nation, from large metropolises to small towns, is increasingly hindered by archaic zoning codes that Key Facts • Impact is broad, influencing all encourage sprawl and divide commucitizens who buy, sell, and live on nities. Although many cities have plans property. that make comprehensive recommen• Costs are minimal, with a volunteer dations regarding all arenas of urban zoning code task force, and using development, zoning, the legal arm of already-generated census data planning, is not paid enough attention. • Socially benefits all citizens, as the Election-conscious policy makers often local governments would necessaroffer patchwork solutions to solve probily be paying more attention to the social and economic transitions. lems created by rapid growth, but fail to ensure that the zoning laws meet the contemporary community vision. In the year after every national census, local governments should re-evaluate the extent to which their zoning laws match the needs of the community. (Census results are the most effective tool to analyze demographic changes, illuminating changes in poverty levels, age and location of populations.) This evaluation should be led by a non-partisan, appointed task force of community leaders representing the various affected communities. The task force could be composed of 15-20 members, depending on the size of the city. Task Force members would be appointed by the elected city leader: architects, environmentalists, developers, and representatives Talking Points from the local governing body. • Updating zoning laws affects generations This task force need only operate of building concepts and community for about a month, during which structure. • Instead of calling for zoning renewal, mantime they will hold meetings and dating a ten-year cycle based on comprehost public forums in a variety of hensive census data would help ensure neighborhoods. These forums will that zoning laws are constantly adapting equip task force members with to fit the changing needs of the locality. the knowledge to determine if • Low cost of implementation due to the zoning laws match contemporary use of volunteer work for the task force needs. After evaluation, the task and the already-generated and widelyforce will publish a report that inrespected census data.

cludes itemized recommendations to the local government about how to implement necessary change. This report could call for whole-scale revision or minor amendments depending on the size and needs of the city. History U.S. zoning laws first appeared in major metropolitan areas in the beginning of the 20th century with the intention of regulating mass and density of buildings. Zoning laws are the governmental method of regulating development, specifically by mapping out areas with fixed development restrictions. Many cities then simply amended or added to their original codes when updates were needed, creating a piecemeal effect, as in Denver, Colorado which is now in the process of re-doing their zoning code which, due to the fact that it was written in 1957 and subsequently convoluted by a multitude of corrective amendments, both encouraged unwanted development and restricted progressive development. Although the City Plan called for whole-scale zoning code revision in the 1989 publication, it wasn’t until another plan called for the revision in 2002 that change was actually implemented. By appointing a special task force to make qualified recommendations every ten years, this lapse in efficiency would be mitigated. Analysis Scheduling regular community re-evaluations, particularly in non-election years, would help ensure that community prosperity is not dominated by partisan politics. Moreover, since all levels of government perform post-census assessments and cities are constantly re-considering their zoning laws, the year following every census is the most appropriate opportunity for this planning process. The costs associated with appointing a task force are minimal: the task force members are volunteers and the cost of the meetings would be limited to supplies, refreshments, and potentially a venue. However, the tremendous economic and societal benefits that communities would realize with proper implementation of this plan far outweigh the relatively minor costs of administering a planning process. Since the benefits of such a plan would reach every sector of a community, political and financial support from business bureaus and chambers of commerce should be sought. Next Steps Cities should move to amend their governing document to include a provision that mandates a task force be appointed every ten years following the publication of the national census. Local policy-makers should move to prepare their cities and towns for a city planning period for 2011 (the year following the 2010 census). This preparation should include budgeting, appointing task force members, and perhaps launching a publicity campaign to educate the public on the upcoming process. ———————————— Sources ———————————— *A full list of sources is available upon request

39

A Comprehensive Homeowners Plan Virginia Calkins, Ann Chou, Bobby Fischbeck , Lauren Hunter, Jessica Lei, Daniel Townsend, Yale University

Solving the foreclosure crisis caused by the collapse of the mortgage market will take more than financial reform. A program is necessary to inform buyers, support responsible lending, and renegotiate bad mortgages before the foreclosure process is initiated.

A plan to increase communication and trust between homebuyers and lenders would include several options. A comprehensive plan should include: a pre-purchase homebuyer education plan; a system for evaluating banks and informing consumers about which area lenders are most client-friendly in the mortgage process; facilitated communication between lenders and borrowers who could benefit from refinancing; and the incorporation of existing non-profit and city efforts in any of the above areas. History Key Facts • In Connecticut, there are about 71,000 active In recent years, increased adjustable-rate mortgages. About 30 percent purchasing and servicing of of these reset “at much higher rates” between loans by large institutions as October 2007 and December 2009. well as increasing numbers of • The Center for Responsible Lending estimortgage brokers and lending mates that 19% of these mortgages will result firms have resulting in a glut of in foreclosure if no action is taken. credit and new homeowners. • Homeowners and mortgage providers often Many of these homeowners, have a mutual interest in preventing foreclolured by access to credit, pursure. Communication and trust are often the chased adjustable rate mortkey obstacles to refinancing. gages. In the last year, these mortgages have lead to a skyrocketing rate of delinquent payments and eventual foreclosures, sparking dire effects on the economy and quality of life in many urban areas. In November 2007, Governor Rell’s Sub-Prime Mortgage Task Force released a Talking Points final report with recommended • Educating homebuyers and increasing state responses to the crisis. Their communication between lenders and recommendations of encouraghomeowners is a preventative measure ing cooperation, increasing refito both decrease future foreclosure rates nancing options, and expanding and refinance existing loans in danger of foreclosing. counseling can be best achieved • A communication program would aid conthrough a unified homeownership stituents in several sectors; banks, other program that involves banks, nonlenders, and their clients all benefit from a profit housing counselors, and lomore informed mortgage process. cal governments.

Analysis The process of buying and owning a home could benefit from a comprehensive plan at several stages. Pre-mortgage education is necessary for potential homebuyers to learn the costs and benefits of homeownership and make educated decisions. For homeowners who already have mortgages, maintaining communication between lender and homeowner is essential to avoid preventable foreclosures. We recommend that the City act as a liaison between lenders and borrowers to facilitate open communication, and incorporate existing non-profits in the community to create a streamlined, comprehensive education and communication plan for homeowners. Also, the city could incentivize such a program for lenders by creating an opt-in set of criteria (such as educational programs or quality of previous customers’ experience) that it would use to evaluate lenders and label them as “homebuyer friendly” to increase consumer confidence. Audience This plan benefits consumers by educating them in the homebuying process. Lenders benefit from decreased numbers of foreclosures. The City benefits from steady rates of homeownership and by avoiding increased foreclosures through refinancing. Next Steps The next steps should be to develop a plan to streamline and consolidate the existing resources in the non-profit, commercial, and governmental sectors. From there, criteria could be established for labeling banks as “homebuyer friendly,” and regulations or incentives for homeownership education would need to be established once appropriate programs were in place.

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Sources

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Connecticut Sub-Prime Mortgage Task Force Final Report. Submitted by Howard F. Pitkin and - Gary E. King, Co-chairs of the Sub-Prime Mortgage Task Force. 9 Nov. 2007. Federal Reserve Board, & Office of Thrift Supervision. (2007). Costs of Refinancing. In Lending Tree: Help Center. 41

Regulating Subprime Mortgage Lending Tori Phillips, University of California at Davis

Regulations of subprime mortgage lending practices would better educate borrowers and hold lenders responsible for their actions, thereby decreasing the default rates on subprime loans and lowering home foreclosure rates.

The subprime market offers financing to individuals with the lowest credit scores. Because these loans are riskier for the lender, they are offered with higher interest rates and stricter rules on refinancing. Subprime mortgages offer the benefit of presenting loans to those who could not otherwise attain one, thereby increasing homeownership. But high default and foreclosure rates since 2006 have led to the subprime mortgage crisis we are faced with today. This has led property values in some areas to plummet, further aggravating the situation. Many family homes have been foreclosed under these circumstances, decreasing the possibility of homeownership.

Key Facts • According to the Mortgage Bankers Association, 14 percent of all loans are subprime. • In 2004 homeownership reached a highpoint of almost 70 percent, but from 2006 to 2007 the number of new houses built was down more than 26 percent and existing house sales were down more than 12 percent. • In 2007 subprime loans made up 7 percent of mortgages but 43 percent of defaulted loans. • In 2005 a study conducted by Freddie Mac and Roper Public Affairs showed that 61 percent of delinquent borrowers did not know that there are workout options.

Regulations must be set in order to prevent this from taking place again in the future. Lenders must be required to qualify buyers at the fully amortized rate, rather than the teaser rate, prepayment penalties must be regulated, and financial literacy education must be provided to all borrowers.

Talking Points • Poor subprime lending practices have caused high home foreclosure rates, especially in low-income areas, leaving many families without homes. • When foreclosures are common in a given neighborhood, property values drop immensely. • This policy offers a solution to both the immediate and long-term problems associated with the subprime mortgage crisis.

History Typically, subprime loans are offered as adjustable rate mortgages (ARMs) where payments on the loan start at one interest rate, and are increased within a certain amount of time. Often, lenders have only qualified borrowers at the initial rate, so borrowers were not able to make payments once the higher interest rate kicked in. Furthermore, these loans were

often quickly repackaged and sold because companies were willing to assume impractically large risks in the quest for profit, and did not focus enough on seeking genuinely qualified borrowers. Many borrowers were not even made aware that rates would increase, and were not able to refinance because of strict “prepayment penalties.” This created a vicious cycle: foreclosures would cause local housing prices to fall. That decline in property values would create skepticism within the real estate market, exacerbating the situation as it called into question a new set of mortgages. Analysis and Next Steps The intent of subprime mortgages is to give housing to those who could not otherwise afford it, but the lack of restrictions has caused this system to backfire. In the instances of qualifications based on the initial rates of ARMs, the loans should never have been made, because lenders were fully aware that borrowers were not qualified to pay the higher interest rates once they took effect. In order to prevent a repetition of the current subprime mortgage crisis, many proactive steps must be taken in the regulation of lending practices. When qualifying borrowers for subprime loans, lenders should be required to do so at the fully-amortized rate, rather than the initial teaser rate, preventing borrowers from falling into the trap of unaffordable mortgage payments when rates rise. Furthermore, prepayment penalties on subprime loans should be restricted in order to offer those with better credit a way out of their mortgage agreement through refinancing. Finally, all subprime lenders should be required to provide financial literacy education (similar to Freddie Mac’s CreditSmart) to borrowers, in order to fully inform them of their responsibilities. Full disclosure will prevent misrepresentation by lenders and mitigate the assumption of unreasonable debts by subprime borrowers. ————————————

Sources

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Avila, Larry. “Subprime Mortgage Mess Dug Pretty Deep Into Economy.” Urban Land In stitute, (February 5, 2008). 6 February 2008 .

Miller, Brian K. “Panel Dishes on Subprime Melt down, Recession.” Urban Land Institute, (Oc tober 26, 2007). January 2008 .

Elmendorf, Douglas W. “Notes on Policy Re sponses to the Subprime Mortgage Unrav eling.” Brookings, (September 2007). Decem ber 2007 .

*A full list of sources is available upon request

43

Economic Revival and Charity Hospital, NOLA Matthew LaBruyere and Kayla Lato, Louisiana State University

The re-establishment of Charity Hospital within New Orleans will not only improve healthcare within the city, but will also serve as an economic catalyst for all surrounding areas.

Since the tragic landfall of Hurricane Katrina on August 29, 2005, New Orleans has continually struggled to revitalize its economy. In an attempt to do so, the city has taken several steps to promote economic development; however, the potential for greater growth remains. Healthcare provision, to date, leaves more to be desired, as there is a lack of healthcare being Key Facts • As of July 2005, (Pre-Katrina) Louisiana State provided to the citizens of University Health Sciences Center in New New Orleans. Because of Orleans had 607 medical residents and fellows. Katrina, the New Orleans As of June 2006, LSU-HSC only had 144 medical metropolitan area lost a residents and fellows. major health care provider, • Before Katrina, Hospitals in the New Orleans Charity Hospital. Although Metro Area employed 30,829. After Katrina, New an interim hospital has proOrleans Metro Area hospitals employed only 15,829. vided assistance, a major • The Metro area is in dire need of available beds. potential lies in the revitalThe total licensed hospital beds in Orleans izaton this hospital, which Parish total 3450, with 813 beds available for is an economic powerpatients. This percentage (23.6%) is the lowest in house that provides medithe New Orleans Metro Area. cal, and research services. By expediting the process of restoring Charity Hospital, the economy will gain immediate and long-term values from the medical and research services that the hospital provides. Additionally, the revitalization will buoy the economy by encouraging growth in the healthcare, medical teaching and research sectors. Talking Points • By considering the re-establishment of Charity Hospital a high priority in New Orleans’ planning process, the economy benefits in the short term and long term. • A state-of-the-art facility helps neighboring universities to receive more grant money and attracts biotechnology firms and pharmaceutical companies. • The institutions and businesses that inhabit the medical complex bring in more professionals (with higher incomes) whose spending will help jumpstart higher end spending.

History Charity hospitals in Louisiana date as far back as January 21, 1736, when the City of New Orleans opened the first Charity Hospital location. The LSU Interim Hospital in New Orleans, which has temporarily replaced Charity Hospital after Katrina left it inoperable

in August 2005, serves the healthcare needs of over seven parishes across the state. Prior to Katrina, Charity Hospital fulfilled the teaching and research needs of both LSU-HSC and Tulane University Medical Center. There has been much talk of the future of the hospital; however, there has been no great strides made in the process to replace the hospital, as there are several initiatives and priorities that fall in front of this potentially $1.2 Billion project. Unfortunately, due to lack of facilities, it is very difficult to recruit doctors to this area. The loss of medical professionals is detrimental to the recovery of the city. Current government recognizes the need for this hospital, and this issue is a topic of interest for the 2008 legislative session; however, if action does not take place soon, a solution will not occur for yet another year. Analysis The biggest obstacle in building a large medical complex is the price tag. The plan developed by LSU-HSC costs around $1.2 billion. Even though the costs for such a complex are enormous, it does not outweigh the potential that can come from having a state-of-the-art facility. In 2004, the hospital had an estimated economic impact of almost $1 billion per year on city business. The partnership between Tulane, Louisiana State University, and Veterans’ Affairs will not only alleviate the strain on state funds with the help of federal funds, but will also bring in more money to increase the economic impact. As of now, LSU and Tulane receive about $62 million in National Institute of Health Grants. This is minimal, and could be greatly expanded, especially when considering that complexes such as the University of Alabama Medical Center at Birmingham, receive $169 million. The hospital also provides opportunity to bring in high salaried professionals to conduct research, teach, and care for citizens. The impact of higher salaried professionals within the area will help with the restoration of Canal Street as envisioned, as well as revive the Theatre District in downtown New Orleans. By allowing the medical industry to flourish within downtown New Orleans, this plan will increase investment in New Orleans, as well as decrease the pressure on the tourism and port industries as sources of revenue for the city. Next Steps In order to expedite the process of rebuilding this hospital, the Louisiana lawmakers and Governor Bobby Jindal must make swift decisions on the details of the hospital’s structure. After that happens, the state must approve the funding. The sooner the state funds and rebuilds the hospital, the sooner the city of New Orleans will reap the benefits of the hospital’s economic value. ————————————

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*A full list of sources is available upon request 45

Revitalizing Suburbs by Reusing Dead Malls John Good, Yale University

By taking advantage of underutilized and abandoned retail centers and redeveloping these large parcels of land, older suburbs can increase land values and re-invent themselves as vibrant neighborhoods in the process.

Nearly fifty years after the first malls were enclosed, shopping centers have proliferated across the country; in 2005, there were 2,400 malls of 400,000+ square feet. The fates of malls and shopping centers have diverged in the interim, with many centers losing a large portion of their stores. Nearly 20% are dead (defined as malls where annual sales per square foot have dropped to less than $150, onethird the rate of sales at a successful mall) or in danger of dying, according Key Facts • There were 2,403 shopping centers to a study by Pricewaterhouse Cooof over 400,000 square feet in the pers. This represents an enormous United States in 2005, according to amount of underutilized land, mostly the Census Bureau. in inner-ring suburbs where every tax • According to a Pricewaterhouse dollar matters. Often in some of the Coopers report, 7% of regional malls most accessible locations in a comwere dead in 2001, with another 12% in munity, these parcels could be redevulnerable status. veloped in ways that would revitalize • In 10 case studies, municipalities had to come up with an average of only an entire community. 10.7% of the total cost, with private developers paying the rest.

Current trends in real estate development are moving away from traditional malls, and changing demographics are increasing the demand for denser, more urban environments. Inner ring suburbs have an opportunity here to use these mall sites, combined with their more established neighborhoods, proximity to the central city, and better mass transit to take advantage of Talking Points these trends. Redevel• Inner ring suburbs face enormous challenges, includoped malls can incoring decreasing population, aging infrastructure, and a porate many desires of lack of new investment. a community, including • Mall sites are large enough to be the site of significant a new city hall, new projects that introduce urban life and increase density parks, housing, and in these communities. offices, serving as the • To communities without a center, these types of redecenter for a suburb velopments provide the opportunity to create a sense of place. lacking one, and acting • Most of all, redevelopment represents real tax dollars, as a catalyst for future and with proper planning and marketing, the vast madevelopment. jority of the cost can be borne by private developers.

History In their “Greyfields to Goldfields,” the Congress for the New Urbanism described twelve case studies of communities redeveloping their old dead mall sites into mixed-use town centers. Boca Raton, Florida, in the early 1990s, was the first to try this strategy by replacing the aging Boca Mall with 200,000 square feet of retail, over 100,000 square feet of office space, and 272 residential units. In addition, it now serves as a gathering space for the city, drawing 3,000 to 5,000 people to its amphitheater, so that “the people feel part of a community”. In Englewood, Colorado, the massive 1.3 million square-foot Cinderella City Mall was redeveloped into City Center Englewood, which was designed to be the suburb’s downtown. Officials there coordinated with regional transit plans to realize a true transit village. Analysis Dead malls are scars on the landscape of many aging suburbs, but with thoughtful planning and clear visions, these sites represent a great opportunity for redevelopment into vibrant communities. The figures show that while infrastructure and streetscape improvements are necessary for successful mixed-use neighborhoods, developers, on average, invest $8.36 for every $1 contributed by government. This shows great return on investment from a purely financial standpoint. However, in addition to these obvious financial gains, many communities are creating an identity and a true town center with these projects, an attraction that can be leveraged to gain further investment. This is why local governments should be advised to pursue mixed-use projects actively for their underutilized retail centers. Next Steps Most importantly, local, metropolitan, and state governments must ensure that the kind of mixed-use development described here is entirely legal within all jurisdictions. In many cases, these city’s zoning codes will need to be significantly rewritten. Single-use zoning schemes written for conventional suburbs need to be reworked to allow more complex, dense, and urban uses of land. Eventually, to ensure long-term success of town center projects, rapid transit (optimally rail) is necessary. Transit authorities should use these redevelopments as a chance to develop new transit hubs, and these mixed-use centers will be made stronger because of the increased traffic. In addition, regional planning organizations should look at these suburban centers as places where density can further be increased to lessen the outward pressure of sprawl. ————————————

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*A full list of sources is available upon request 47

Reducing Medical Mistrust Among Native American Populations Kira Newman, Hannah Lupien, et al, Yale University

By promoting cultural competency, community involvement, and oneon-one outreach to patients, medical mistrust in urban Native American populations can be reduced and rates of colorectal cancer screening can be improved.

Medical mistrust among Native Americans hinders the success of even the most well-planned health program. It reduces an individual’s willingness to seek out preventive care and undermines the trust essential for an effective doctor-patient relationship.

Key Facts • A lack of trust contributes to the reluctance of many Native Americans to utilize medical services, including preventive care. • Though cancer deaths in the general population have decreased slightly over the last thirty years, among Native Americans they have increased by 16.2%.

History Native Americans have traditionally had higher disease burdens, shorter life spans, and less healthy lives than other Americans. Whereas the cancer death rates in the rest of the population have decreased slightly over the last thirty years, Native American rates have increased by 16.2%. Additionally, most Indian Health Services (IHS) resources are directed towards rural, reservation-bound Native Americans, but urban Native Americans are largely left without access to preventive healthcare coverage. Mistrust includes multiple aspects. There is a sentiment by Native Americans that providers are prejudiced against them. This may include a fear that providers do not really have the patient’s best interests in mind, a feeling that providers do not really care about a patient’s health, a concern that they are treated differently in a clinic (i.e. providers take less time to listen to them as compared Talking Points to white patients), and concerns • Reducing medical mistrust lowers one of the most significant barriers to preventive that providers think that their care, such as colorectal screening. traditional medical practices and • Colorectal cancer is often preventable beliefs are primitive and inane. through regular screening and the reThere is also a lack of confidence moval of precancerous polyps. in the providers’ medical skill. This • Using existing community resources and is based in an historical opinion networks is an important tool for policies pertaining to the quality of IHS to reduce medical mistrust. and IHS-referred physicians.

Analysis It is essential to reduce medical mistrust in Native American populations because medical mistrust reduces the likelihood that individuals will seek appropriate care including preventive screening and follow-up care. Some key practices include one-to-one outreach, involvement of the provider and tribal community, and practicing cultural competency. One-to-one outreach programs, especially those employing members of the community, have been found to be effective in improving the health of Native Americans. Because the information provider is a member of the tribal community, there is less mistrust associated with the information distributed. In addition, the healthcare “navigator” is familiar with tribal customs and can help encourage screening in a way that is culturally sensitive. In order to involve provider and tribal communities to the fullest extent, the following key steps ought to be pursued. First, researchers should involve the community in research planning at the earliest stages. Second, it is important to receive consent from the community leaders and representatives as well as from individual participants. This means consent from the initial planning stages in which patients are enrolled, through consent to use the data for further analysis beyond the original intentions of the researchers, an area in which consent has not always been obtained. Third, community members can be employed as field staff and trained to collect data. This is an alternative to hiring already trained personnel from outside the community. Lastly, researchers and tribal members should share authorship and work cooperatively in the publication of papers, press releases, and reports. A further step in reducing medical mistrust is increasing cultural competency among healthcare providers. To achieve this, it is imperative that training programs are instituted on a regular basis for healthcare workers. Effective methods have included quarterly cultural orientations on different topics; creation of an environment for health care that reflects local culture in its architecture, galleries, gardens, and walking trails; week-long history classes; cooperative medical teams of Western doctors and traditional healers; and variations of above programs. Next Steps Medical practitioners should work with tribes to develop and distribute culturally sensitive information about screening through tribally affiliated one-to-one healthcare navigator programs. Healthcare providers should include cultural competency training for physicians interacting with Native American patients. ————————————

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*A full list of sources is available upon request 49

Federally Qualified Health Centers Jarrad Aguirre, Yale University

Fifty million people lack basic health care, and 53% of underserved and underinsured populations are racial or ethnic minorities. Studies show that wider access to primary care can temper minority health inequalities.

Federally Qualified Health Centers (FQHCs) extend health care to vulnerable populations, providing social services such as transportation and Key Facts language assistance that address • In the United States, 50 million people lack access to adequate health care and 53% of barriers to access. However, the underserved and underinsured populations eligibility criteria for choosing are racial or ethnic minorities. FQHC sites do a poor job of • Federally Qualified Health Centers (FQHidentifying and targeting at-risk Cs) provide care for at-risk populations, but populations. The Index of Medinarrow eligibility requirements handicap cal Unservice (IMU), which qualithe efficacy of FQHCs. fies locations for funding, fails to • Diseases that disproportionately affect consider several well-established minorities, such as hypertension, could be deterrents to health care access. better addressed with more accessible Using existing data sources, such primary care. as the National Health Care Disparities Report, the federal government should implement several IMU adjustments, in order to better identify vulnerable populations and to guide the expansion of future health centers First, expand poverty guidelines to include individuals that have incomes up to 200% of the poverty threshold. One in three people under the age of 65 with incomes between 100% and 200% of the poverty threshold are uninsured. Insurance Talking Points coverage profoundly determines access to • The Index of Medical Unservice health services, and this modification would (IMU), which qualifies locations allow the IMU to respond to more uninfor FQHC funding, could better sured Americans. Second, include educaprovide primary care to at-risk tion status as an additional variable. Educapopulations by considering additional obstacles to health care. tion also influences health independent of • IMU revisions could be impleincome. Fully 35% of individuals with less mented using existing data than a high school education are uninsured, sources. healthcare expenses as compared to 14% of those with a poststem from chronic disease care, secondary education. Third, incorporate redirecting patients to primary primary language data. People with limited care sites, instead of emergency English skills are less likely to receive predepartments, would save $7 bilventative care or have a regular source of lion annually.

primary care. Fourth, consider the incidence of diseases that disproportionately burden minorities. Currently, seventy-five percent of U.S. healthcare expenses stem from chronic disease care. Furthermore, redirecting patients to primary care sites, instead of emergency departments, would save $7 billion in annual health care expenditures in the U.S. The savings associated with providing accessible and affordable care to at-risk populations is tremendous. Improving the IMU criteria will not only save countless dollars, but represent a significant step in uprooting the health disparities entrenched in our society. History In recent years, health centers have received bipartisan support for expansion, with over 4,000 health center sites currently serving over 16 million Americans. Investments in FQHCs have grown greatly in the past decade, to nearly $2 billion today. Most recently, President Bush announced the High Poverty County Presidential Initiative, which provides funds to improve primary care health in counties that previously lacked a health center. The expansion of the FQHC network is an opportunity to combat health disparities. Changing the IMU criteria will allow us to maximize the impact of this growth. Analysis Due to small sample sizes at the community-level and outdated datasets, estimates concerning income, education, and primary language may have large variances in assessing local health disparities. For example, the US Census contains information about most Americans, including location, but it only occurs every 10 years. To calculate IMU, several conflicting data sources can be consulted. For instance, different surveys categorize “uninsured” individuals according to varying parameters. Lastly, due to nonresponse bias, surveys may underestimate disparities affecting non-English speakers. Increasing frequency of surveys, standardizing survey definitions, and issuing surveys in a range of languages could help to address these obstacles Next Steps The adjusted IMU criteria will start one-year after the current cycle of government funding for FQHC. Other changes to FQHC must ensue as well. An expansion of services, including pharmacy and dental, at existing FQHC would improve health management. Medication management, for example, would improve if on-site pharmacies provided prescription drugs at discounted prices. The money saved from providing preventative care to previously neglected populations could offset any additional costs. ———————————— Sources ———————————— *A full list of sources is available upon request 51

Solving San Diego’s Budget Deficit Problem: Hotel Taxes and the Tourism Industry Sharanjit Singh, University of California, San Diego

The City of San Diego should increase its Transient Occupancy Tax (TOT) to at least 14% or higher to help curb the current budget deficit. Instead of reinvesting the tax revenue into tourism marketing districts, the income should be directed toward the city’s General Fund to help support under funded city services.

The City of San Diego has a debt looming over its head that will grow unless a cut in spending or acquisition of new capital takes place. The deficit reflects unfunded budgetary needs of city services and public goods. Experienced police officers have fled the city to work for agencies providing Key Facts • Since 2003, San Diego budget reductions better pay; even construction have amounted to a total of $126.9 million. workers are having trouble fix• The City of San Diego currently has a Traning pipe ruptures. The deficit sient Occupancy Tax of 10.5%, whereas San is expected to reach $32 milFrancisco and Los Angeles have a TOT of 14%. lion in 2009 and $85.3 million • San Diego has a hotel room occupancy rate in 2011. Instead of relying upon of 73.30%, a RevPAR (revenue per available one time solutions like diving room) of $95.843. into reserves to balance the • Only 1/6th of the revenue generated by the budget, the city should seek Transient Occupancy Tax actually goes into out more permanent sources the city’s general fund. of income. San Diego has a lucrative tourism industry; the city can afford to levy more taxes on the hotel industry. As San Diego attempts to subsidize the hotel industry, other cities make hoteliers pay for impacts of their developments and essential services. Talking Points • In 2004, the City of San Diego Fire Department had an unfunded budgetary need of $38 million, and departments in the city as a whole had an unfunded need of $274.2 million. • San Diego does not require heavy tourism advertising paid for by the city; the tourism industry is largely self-driven, as evidenced by the city’s high hotel room occupancy and RevPAR. • The revenue generated by the Transient Occupancy Tax should be redistributed so that at least two-thirds of it goes into the city’s General Fund.

History Increasing the rate of a Transient Occupancy Tax is not uncommon in California. However, to raise the TOT in a city, an amendment to the city charter is required. In San Diego, the proposal must be placed on a ballot measure and muster up the required a two-third vote. In the November 2004 elec-

tion, Proposition J went before San Diego asking the public to back a 2.5% increase in the tax, putting the TOT at 13%. However, with 58.41% of voters saying “no” Proposition J did not get very far. A San Diego Union Tribune writer notes, “People resist the idea of raising taxes or fees, well aware that San Diego is a taxaverse city; voters in 2004 even rejected two measures that would have raised taxes for tourists but not residents.” Analysis According to the San Diego Convention and Visitor’s Bureau the city raked in $150,417,640 during 2007 demonstrating strong positive growth in TOT revenue since 2007. If a subsequent TOT increase performs just like it did in 2007, then we can set up a proportion to estimate how our tax increase will perform. If the 10.5% tax yielded a total of $150,417,640 in 2007, then proportionally a 14% tax in 2007 could have yielded $200,556,853. Only 1/6th of the TOT revenue goes into the city’s general fund. Even at that rate, Proposition J was expected to provide the General Fund with $28 million, sufficiently cushioning city service needs. Audience This proposal focuses on a city tax increase and therefore would be of most use to the City Council of San Diego who first agreed upon the terms of the Transient Occupancy Tax in the city charter. Other than the local government, residents of San Diego, the voters, are the primary beneficiaries and decision makers of the tax. Next Steps San Diego should immediately seek out community benefit agreements with hoteliers, giving the city more incentives to support the industry and its demanding infrastructure. Furthermore, the city should immediately attempt to draft a ballot measure to increase the Transient Occupancy Tax to 14%, but must first educate tax wary San Diegans that the TOT is specifically a hotel tax, and not a tax against residents. ————————————

Sources

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docs.sandiego.gov/municode/MuniCo Baxamusa, Murtaza. “The Truth about TOT.” Voi deChapter03/Ch03Art05Division01.pdf ceofSanDiego.org, 4 March 2008. http://www. voiceofsandiego.org/articles/2007/12/20/ Ernst and Young, “2007 U.S. Lodging Report,” cafesandiego/928baxamusa1122007.txt EYGM Limited, 2007. http://int.sitestat.com/ ernst-andyoung/international/s?Industry_ City of San Diego Independent Budget Commit Real_Estate_2007USLodingReport&nsytype= tee. “City of San Diego Structural Budget pdf&ns_url=[http://www.ey.com/Global/as Defcit,” Office of the Independent Budget sets.nsf/International/Industry_Real_ Analyst Report. 14 February 2008. http:// Estate_2007USLodingReport/$file/Industry_ www.sandiego.gov/iba/pdf/08_14.pdf Real_Estate_2007USLodgingReport.pdf] City of San Diego. “San Diego Municipal Code: *A full list of sources is available upon request Article 5, Chapter 3, Sec. 35.0103” http://

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Cemetery Preservation in New Jersey Kate Maley, Rutgers University

The New Jersey Cemetery Board should play an active role in ensuring that burial grounds receive the respect they deserve. Well-preserved cemeteries benefit the community by strengthening social bonds and demonstrating an appreciation for history and public space.

Cemeteries are largely unmonitored, sacred pieces of community history that are at risk in the state of New Jersey for degradation from ignorance and lack of attention. The functions of the Cemetery Board should be extended to a more active attempt at maintenance and preservation, and jurisdiction should en- Key Facts • New Jersey is home to over 2,000 compass all cemeteries within the cemeteries, but fewer than a quarter fall state of New Jersey. under the control of its Cemetery board. Of the dozens of burial societies that once maintained cemeteries in cities like Newark, virtually none remain. • The vast majority are exempt from state scrutiny regarding maintenance and preservation, and many face destruction and desecration as a result. • Over 500 headstones were overturned in a New Brunswick cemetery on January 4th, 2008. A volunteer cleanup of one Jersey City cemetery took away two truckfuls of trash in April 2008; local residents particularly noted the lack of care for soldiers’ graves.

History According to the New Jersey Cemetery Association, most of the state’s estimated 2,000 cemeteries depend on funding from the government or religious organizations. Owners of the 400 that fall into neither category are required to obtain a “certificate of authority” from the state. Since 1971, New Jersey’s Cemetery Board has regulated only these “non-religious cemeteries and its salespersons in New Jersey.” This designation allows them to operate their cemeteries as long as they can prove that they meet certain regulatory criteria, some of which include devoting funds to preserving the grounds Talking Points and seeking state approval before • New Jersey’s cemeteries are a crucial selling a parcel of the cemetery’s reflection of its cultural, political, spiritual, land or a large amount of plots. and social history. They remain a vital resource for academics and are the last point of contact for families that have moved out of major cities during the last decades of urban decay. • At the very least, New Jersey must begin by developing thorough and accurate records of its cemeteries with an online database and preservation watch list.

But official reports on the current state of New Jersey’s cemeteries are undocumented, unavailable, or nonexistent. This is simply inadequate. Residents should be informed about and involved in cemetery upkeep. Up-to-date re-

cords should be publicly available and outreach on the importance of cemetery care should occur. Burial grounds are historically and culturally significant markers of a community, and allowing them to fall into disrepair communicates disrespect and a lack of community sentiment. Analysis Permanent preservation of New Jersey’s cemeteries requires that the state government expand the scope of the Cemetery Board to all burial grounds, not just the 400 that currently have a certificate of authority. To streamline this process, the New Jersey Cemetery Board should compile a statewide Cemetery Register: an online database with maps and locations of each cemetery. The Board should also compile a Preservation Watch List, flagging cemeteries in danger and states of decay, and establish a fund to pay for repairing cemeteries in severe states of decay and to prevent other burial grounds from falling into disrepair. The Board should also disseminate information about the importance of cemetery preservation and community involvement. Many of these suggestions have been successful implemented by the Montgomery County Cemetery Inventory Project in Maryland. Much of this project’s funding will likely come from community members. Thus, the Cemetery Board should collaborate with university Archeology departments, historical societies, and museums, initiate Adopt-a-Cemetery programs in schools, and host local heritage events. Part of this outreach effort should involve the New Jersey Department of State, which oversees “arts, cultural, history, and volunteer programs in the state.” Partnership with the State Department will ensure the Board’s productivity and maintain its access to funds. Next Steps Creation of an online database and preservation watch list will give decision makers a basic sense of the condition of New Jersey’s cemeteries. As beginning steps, they will demonstrate the scope of this endeavor, and define whether its focus will be on restoring neglected cemeteries or on preventing their future destruction. Once the burial grounds have been identified and documented, this information can be used to raise awareness, elicit support, and inform future policy making decisions regarding preservation. ————————————

Sources

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Associated Press. “Four New Jersey teens arrested after tipping over 500 gravestones.” New York Daily News: January 10, 2008. Jacobs, Andrew. “Jewish Newark’s urban pioneers rest uneasily.” New York Times: October 15, 2000. Koepp, Paul. “Historic Cemetery Decays.” Jersey City Reporter: April 29, 2008. Montgomery County Cemetery Inventory. ://www.mc-mncppc.org/historic/education/cem eteries.shtm New Jersey Cemetery Association. http://www.njcaonline.org/aboutcemeteries.html New Jersey Cemetery Board. http://www.nj.gov/oag/ca/nonmedical/cemetery.htm New Jersey Department of State. http://www.state.nj.us/state/ 55

Improving Flexible Tax Structures to Promote Business in Low-Income Zones By Peter Wallach, University of Virginia

Existing tax structures should be altered to promote new business growth in low income communities. Taking the form of decreased corporate tax rates, targeted Fannie Mae lending action, diverted corporate tax flow, and deductible accounts, these actions would serve to build on current legislation and improve impoverished communities.

It almost goes without question in toKey Facts day’s world that location can make or • A lack of business opportunity in low break a particular industry’s success. income communiites forces comA financial firm with Wall Street ofmunities to operate at a competitive fices or a high-end retail company in disadvantage. Georgetown can claim location as an • Most federal action taken targets intangible asset which improves their housing development, and not busivalue. The same logic would go for tryness development. ing to start an import auto dealer in a poorer community; the market simply does not have the same need. In a broad sense, businesses which generate more profit tend to exist where the market takes them, which typically is not to lower income communities. As a result, financial incentives need to be put in place to motivate business growth in these communities. History Inner-city poverty is not new. Throughout American history, income level has been a critical determinant of communities within city limits. From the condensed urban “dumbbell” housing structures built at the turn of the 20th century in New York, to the Hope VI project, to the advent of the suburbs, communities have been segregated by income. Lower-income communities trap opportunities are scarcer, crime rates tend to be higher, and given a basic lack of funding, these communities simply operate at a competitive disadvantage. Most action taken by federal institutions has involved housing development projects. Tax involvement has

Analysis many of the individuals living there. Business Talking Points • The lack of a universal tax incentive to develop business in lower income communities has focused wealth in areas where wealth already exists. • Creating such a tax incentive would provide a chance for communities to generate growth through jobs and investment.

been limited to programs like low-income housing credit or breaks for businesses in “empowerment zones” created in the New Market Credit program. However, the lack of a universal tax incentive to develop business in lower income communities has focused wealth in areas where wealth already exists. Next Steps To remedy the situation, the national government should move away from credit returns and move towards liability discounts (assuming starting a business in a low income community incurs increased liability insurance and/or more difficult loan structures). To do so, cities of large enough population could create a distribution using tax data based off income of an entire district, ward, or zip code. Collecting this data retroactively, we can create a normal distribution using the net income and population of each designated area. For each standard distribution away from the mean, the business should be assigned or subtracted (if it is higher or lower respectively) an additional tax credit of a value no greater than 1% per standard deviation. First, this would not be a redistribution of wealth scheme as the need for this credit system is based on a pre-existing market failure. The benefits from this scheme are numerous. A weighted tax scheme means that there would be a higher profit on corporate taxes, unless they somehow progressed or regressed to the mean, which in itself would be ideal as long was the mean was high. Secondly, the effect of an area-wide tax scheme would mean that successful businesses in low income communities would greatly benefit for being successful in its location. Job creation in these communities and higher investment would be a side effect of these tax breaks as large corporations would have a strong incentive to develop these communities. This distribution would be recalculated biannually, so as to cut the cost of information collection while capitalizing on a corrective market measure. This policy, whether implemented on a local or national scale, would be a great boon to low income communities, and would help to solve the market inequality in location value.

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Sources

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Citizens for Tax Justice, “The Hidden Entitlements”, http://www.ctj.org/hid_ent/part-2/part2-11.htm *A full list of sources is available upon request. 57

Eliminating the 100% Marginal Tax Rate for Non-Custodial Parents James Coan, Princeton University

Reducing wage withholding from non-custodial parents paying child support from 100 percent to 35 percent encourages them to work longer or seek higher-paying jobs, improving their own lives and support to their families.

Direct wage withholding that automatically deducts from paychecks of non-custodial parents, over 80 percent of whom are fathers, accounts for more than half of the $21 billion in child support payments. The wage withholding system has been improved over the past two decades, but the rules Key Facts that govern the withholding • Children in low-income, one-parent households are deeply flawed. rely on child support for more than a third of their living costs, and over half of the $21 billion collected annually comes from direct wage withholding. • 10.6 million non-custodial parents are ordered to pay child support, and the majority do pay. • A non-custodial parent with child support debt who works a minimum wage job will receive the same amount of money if he works 30 hours per week or 85 hours.

The withholding rules come from the Consumer Credit Protection Act (CCPA), which states that individuals who have a debt cannot be required to pay more than 25 percent of their income, but those with a child support order can have between 60 and 65 percent of their income captured. Sixty-five percent is the maximum for those who owe past-due payments, or arrears. However, because of a wellintentioned technicality designed to protect the poorest workers, many individuals face a 100 percent marginal tax Talking Points rate. • A 100 percent marginal tax rate provides no incentive to work, reducing the dollars earned and ultimately reducing the support given to the children. • The highest tax bracket with the wealthiest workers only faces a top federal marginal tax rate of 35 percent. • The current arrangement encourages parents to work in the underground economy: 26 percent of non-custodial parents who have no reported income still paid at least 50 percent of their child support.

History The Office of Child Support Enforcement began in the mid-1970s, and it has undergone many dramatic changes during its existence. Child support began as a way to repay the government for welfare, but it has evolved into a program that gives over 90 percent of money paid to families. Having states take less than what the CCPA allows would

represent a much smaller shift in policy since the CCPA provides a maximum but not a minimum withholding rate, so lower rates are legal. Analysis According to the CCPA, no income can be withheld before one works 30 hours at the minimum wage, or $217.50/week at the soon-to-be new minimum wage ($7.25/hour at 30 hours). This provision protects the most vulnerable in the population. It has a valuable moral purpose, and it also cannot be changed because it remains a federal rule. Above this amount, however, all wages can be captured until 60 or 65 percent of total wages have been captured. In other words, a minimum wage worker in arrears will not see any additional income after he works 30 hours/week until he completes a nearly impossible 85 hours of work/week. The effect of the current policy can also hurt individuals who want to get a better job, since they can earn the same amount working 40 hours at a minimum wage job as they can working 40 hours/week at a job with nearly twice the salary. Economists speak of the distorting effects of high marginal tax rates on labor, and a 100% marginal rate is the worst case of all, because it completely eliminates any monetary incentive to work. Therefore, wages earned on work above 30 hours/week should only be subject to a 35 percent marginal rate, equal to the highest marginal rate in the federal income tax code. This amount should still provide sufficient wage withholding to pay child support, and the reasonable marginal tax rate will encourage individuals to stay in the legitimate economy and earn enough to fully pay their child support orders on their own. The change in wage withholding may result in some cases in which the amount of income for child support falls, although it should increase in other cases because of the increased incentive to work. If a child support office is concerned about the first possibility, it could create a hybrid approach with less than total withholding (i.e. complete withholding from 30-40 hours worked at the minimum wage and then reverting to a 35 percent rate above 40 hours). Next Steps State-level child support offices can apply for this provision, and they can offer this idea as a pilot program to the federal Office of Child Support Enforcement. In its beginning stages, this program will likely be implemented at the state level, and initial data will determine what, if any, hybrid adjustments need be made to protect custodial as well as noncustodial parents. ————————————

Sources

*A full list of sources is available upon request

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Notes