Monthly Archives: October 2012

Claim: those new municipal fees are here to stay

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More communities are charging residents more fees and they probably won’t be rescinded anytime soon:

As the nation’s cities attract an ever-growing share of the U.S. population, their capacity to honor service commitments, build and maintain necessary infrastructure, and meet their financial obligations will have a profound effect on local and regional economies, public safety, education, and overall quality of life for hundreds of millions of Americans. But U.S. cities are in a bind. Faced with a requirement that they balance their budgets every year, they have borrowed a page from the airline industry: increase fares (i.e., taxes) just a little if at all, and start charging big time for the “extras” that passengers (i.e., taxpayers) want. In the airlines’ case, it’s bag fees and the like that are going up. For cities, it’s charges for little things like, say, putting out fires…

In an annual survey [PDF] administered by the National League of Cities, more than four out of ten cities (41 percent) reported last year that they were increasing service fees in an effort to stanch the bleeding in city budgets. For the last two decades, when asked to identify a revenue action that their city had adopted in the previous year, city finance officers overwhelmingly selected “increase the level/rate of user fees or charges” and “impose new user fees or charges.”

Much like Newton’s Third Law, as cities raise fees, they decrease their reliance on taxes to support general municipal services. Back at the start of World War II, city taxes on sales, income, and property amounted to some 89 percent of all revenues cities raised (excluding aid from state and federal governments and borrowing or debt), with property tax generating 78 percent of “own-source” revenues. Fees amounted to some 11 percent. Today, nearly 40 percent of “own-source” revenues are derived from fees on services, and 60 percent from all other taxes (and less than 30 percent from the property tax). In other words, we have seen a sea shift over the last three generations from a city fiscal system that collected taxes—almost all of which were property taxes—to pay for the bulk of municipal services to one that identifies individual beneficiaries or users of services who can then be assessed a fee (e.g., fire suppression in Mondovi).

I wonder about several pieces of this:

1. What about the declining federal and state support for communities? If the federal government and individual states have less money themselves, there is less to pass along to communities as well as other taxing bodies.

2. The share of revenue from property taxes has decreased over time and I wonder how much of this is tied to an increasing number of taxpayers arguing against paying more property taxes. This has been gaining steam since the 1970s (see more about Prop 13 in California) and limits what communities can collect. It sounds like more communities see fees as a solution but is this because their other options are limited? Of course, municipalities aren’t the only ones who get money from property taxes as there are others who take more of this pie.

3. It would be interesting to see these numbers alongside figures about the size of municipal budgets and what the money is spent on. As fees increase, where is the money going and how much is it contributing to or paying for larger budgets? Some of this increase could be hard to stop; communities do age, infrastructure needs replacing, and the costs of services tend to go up.

Tom Brokaw says the next generation of Americans won’t live in McMansions

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Tom Brokaw recently said McMansions won’t be in America’s future:

The veteran journalist appeared on MSNBC’s The Cycle to call for Americans to accept a permanent lowering of their standard of living. Speaking of the next generation, Brokaw blithely insisted that “they probably won’t have as much disposable income.” He added, “They won’t live in homes that are McMansions. We gotta get real.”

The former Nightly News anchor, estimated to be worth about $70 million, didn’t seem to find this a bad thing: “It doesn’t mean we can’t have everything that we need.” Brokaw lobbied for Americans to “get proportion.” He lectured, “One of my friends says we have to get up every morning and say, ‘What do I need today and not just what do I want today?’ That’s a good guide.”

This sounds like a good example of the consumerist argument against McMansions. In this line of thinking, McMansions illustrate a full economic and cultural system where Americans but they don’t need. Indeed, see this recent argument that links the need for big houses to our patterns of buying big products. And if this money weren’t spent on unnecessarily large houses, it could be spent on more productive items.

Lack of WASP candidate for election due to the Internet?

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Several commentators have picked up on this feature of the 2012 presidential election: neither candidate is a WASP.

Right now, we’re looking at an absence that would have been a startling presence 50 years ago. With all the focus on economic issues in the U.S. presidential race, there’s hardly any talk about the fact that, for the first time, none of the leading presidential and vice-presidential candidates is a white, Anglo-Saxon Protestant. Moreover, the U.S. Supreme Court has no WASPs. These are new phenomena in the United States.

The totally non-WASP tickets signify major political and social shifts in the networked age. As Robert Putnam showed a decade ago in Bowling Alone, organized groups such as churches, political clubs, fraternal clubs and Scouts have declined in importance. People have moved sharply away from traditional, tightly knit groups into more loosely knit networks that have fewer clan boundaries and more tolerance. The rise of the Internet and mobile connectivity has pushed the trend along by allowing people to expand the number and variety of their social ties…

In 1955, sociologist Will Herberg showed how white America was rigidly divided in Protestant, Catholic, Jew. Indeed, one of the authors of this article was barred from college fraternities because he was Jewish.

Now, when Chelsea Clinton marries, no one remarks on the kippa on her husband’s head. This year, a poll by the Pew Research Center found that 81 per cent of those who know Republican Mitt Romney is a Mormon are either comfortable with his affiliation or say it doesn’t matter to them.

I’m not sure I buy the Internet argument; WASPs lost their elite control because of the Internet? I think the process had started way before this. I wonder if the most basic explanation is that there are simply less WASPs overall in the population. Since the 1950s, there has been a sharp uptick in immigration and more people have had access to education and college and graduate degrees.

Argument: George Lucas is the “greatest artist of our time”

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Camille Paglia explains why she believes George Lucas is “the greatest artist of our time”:

Who is the greatest artist of our time? Normally, we would look to literature and the fine arts to make that judgment. But Pop Art’s happy marriage to commercial mass media marked the end of an era. The supreme artists of the half century following Jackson Pollock were not painters but innovators who had embraced technology—such as the film director Ingmar Bergman and the singer-songwriter Bob Dylan. During the decades bridging the 20th and 21st centuries, as the fine arts steadily shrank in visibility and importance, only one cultural figure had the pioneering boldness and world impact that we associate with the early masters of avant-garde modernism: George Lucas, an epic filmmaker who turned dazzling new technology into an expressive personal genre.

The digital revolution was the latest phase in the rapid transformation of modern communications, a process that began with the invention of the camera and typewriter and the debut of mass-market newspapers and would produce the telegraph, telephone, motion pictures, phonograph, radio, television, desktop computer, and Internet. Except for Futurists and Surrealists, the art world was initially hostile or indifferent to this massive surge in popular culture. Industrial design, however, rooted in De Stijl and the Bauhaus, embraced mechanization and grew in sophistication and influence until it has now eclipsed the fine arts.

No one has closed the gap between art and technology more successfully than George Lucas. In his epochal six-film Star Wars saga, he fused ancient hero legends from East and West with futuristic science fiction and created characters who have entered the dream lives of millions. He constructed a vast, original, self-referential mythology like that of James Macpherson’s pseudo-Celtic Ossian poems, which swept Europe in the late 18th century, or the Angria and Gondal story cycle spun by the Brontë children in their isolation in the Yorkshire moors. Lucas was a digital visionary who prophesied and helped shape a host of advances, such as computer-generated imagery; computerized film editing, sound mixing, and virtual set design; high-definition cinematography; fiber-optic transmission of dailies; digital movie duplication and distribution; theater and home-entertainment stereo surround sound; and refinements in video-game graphics, interactivity, and music.

Read the entire interesting argument.

Four quick thoughts:

1. This broadens the common definition of artist. It acknowledges the shift away from “high art,” the sort of music, painting, and cultural works that are typically found in museums or respectful places to “popular art” like movies and music.

2. The argument doesn’t seem to be that Lucas is the best filmmaker or best storyteller. Rather, this is based more on his ability to draw together different cultural strands in a powerful way. Paglia argues he brought together art and technology, combined stories from the past and present, promoted the use and benefits of new technologies that were influential far beyond his own films.

3. Another way to think of a “great artist” is to try to project the legacy of artists. How will George Lucas be viewed in 50 or 100 years? Of course, this is hard to do. But, part of creating this legacy starts now as people review an artist’s career though it could change with future generations. I wonder: if technology is changing at a quicker pace, does this also mean the legacy of cultural creators will have a shorter cycle? For example, if movies as we know them today are relics in 50 years, will Lucas even matter?

4. How would George Lucas himself react to this? Who would he name as the “greatest artist” of today?

You need a McMansion to take home all the bulk items from Costco

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Here is one argument for why Americans need McMansions: they need space to hold all of the bulk items from places like Costco.

But what I require now is a special place to house the mountain of junk I buy at Costco, because it certainly doesn’t fit in my existing house.

I suppose some of you reading this live in Tuscan-style McMansions with huge pantries that could hold the yield from a dozen trips to Costco, plus a few sheep and goats on the side…

My problem is that I like the bulk savings you can get at Costco. But I don’t like the Costco bulk. I’m not kidding: At this exact moment, there’s a case of water bottles on my tiny kitchen floor, because I haven’t figured out exactly where to put it. Cardboard boxes full of lunch snacks sit on top, along with enough canned tuna to last at least until the Rapture comes.

Putting away Costco stuff requires several days of planning in my house, especially when I bring my children, which I try not to do.

This would fit the data that shows while the average size of the American household has decreased, the average size of the new homes has gone up.

It would be interesting to do some analysis on how the space in recent homes compares to space in houses from earlier years. One way to get more space in a house is to simply have more space to start with. But there are other ways. Have more and bigger closets and take space from elsewhere. It seems like a lot of the new houses on HGTV have two walk-in closets for the master bedroom. You could also cut down on the “middle” space of rooms in order to free up space for other uses. Large living spaces may be nice but they could require more furniture and many homeowners may not use all that space most of the time. Another way is to have fewer hallways and more “combined” rooms. The classic bungalow does this by often combining the living room, dining room, and a kitchen as the main thoroughfare through the house.

Explaining why New Jersey has the lowest divorce rates in the United States

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The lowest divorce rates in the United States are in New Jersey and here’s why:

According to the 2011 American Community Survey released last month by the Census Bureau, New Jersey ranks last among the states in the percentage of residents 18 and older who are divorced. Just 9 percent of New Jersey adults are divorced, compared with nearly 52 percent of whom are now married.

“The composition of New Jersey married individuals is quite favorable across several indicators, providing some evidence for the low divorce rate,” said Susan L. Brown, a sociology professor and co-director of the National Center for Family and Marriage Research at Bowling Green State University in Ohio. “These factors include education, race-ethnicity, age, and age at first marriage.”…

“They tend to delay marriage until an age when they’re emotionally and financially ready,” said Deborah Carr, a sociology professor at Rutgers. “Higher education and high age at marriage are two of the most important factors that protect against divorce risk. And the current recession not withstanding, New Jersey is among the wealthier states in the nation, and economic stability also contributes to marital stability.”…

“In general, the northeastern states have lower divorce rates because their citizens are more highly educated and marry at older ages than do people in other regions,” said Andrew J. Cherlin, a professor of public policy at Johns Hopkins.

In other words, certain social conditions lead to lower rates of divorce in New Jersey and other northeastern states. Having more money, more education, and being older (all related to socioeconomic status?) leads to fewer divorces. These findings could also be related to recent suggestions that those with higher levels of education are more likely to marry (also see here).

Does this mean New Jersey will start promoting itself as a family-friendly state?

Seeing the social layers in the foreclosure crisis through a photography exhibit

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A new photography exhibit at the Argus Museum in Ann Arbor, Michigan takes a unique look at the foreclosure crisis:

Sociology, economics, and ultimately, autobiography, are the featured artistic elements in Charles J. Mintz’s “Every Place (I have ever lived)” at the Argus I Building’s second-story museum.

Subtitled “The foreclosure crisis in twelve neighborhoods,” this Cleveland-based photographer’s mixed-media investigation into his personal history—as told through a dozen color foreclosed dwellings in the vicinities where he’s lived—is touching and telling in equal measures…

“Each work,” Mintz tells us in his gallery statement, “is a 4’ x 4’ sheet of raw plywood with two photographs that are printed on fabric. The ‘inside’ photograph is screwed in place. The top image has been made into a window shade that pulls down over the first…

“Maps on the side pieces show where you are in my personal journey. In addition, there are charts of both the changes in median family income between the time I lived there and now (based upon the 2000 census) and the changes in racial mix between then and now (based upon the 2010 census).”…

Even as the economic and sociological demographics do their part in Mintz’s story, he makes it clear that he believes race and financial position are ultimately relative to the journey. The story might have differed at another time, but from mid- to late-20th century, Mintz seeks to build a case that our American commonalities are more tightly bound than we might otherwise expect.

It is one thing to see the numbers about foreclosures, such as the fact that the foreclosure rate in Illinois is still rising, and another to look at how this affects communities and individuals within them. What sounds particularly interesting to me about this exhibit is that this isn’t just about one person. For example, in political debates and speeches, we tend to hear stories about individuals or families which are meant to put a “human face” on the larger issues. But, through connecting individuals, communities, and larger social forces, such as the artist Mintz explaining his personal experiences as embedded in communities as well as race and socioeconomic status, we can better view and understand the multiple levels of foreclosures and how different actions at each level might be needed.

New public relations campaign to convince Chicago area residents that congestion pricing is the way to go

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The Chicago Metropolitan Agency for Planning launched a campaign today intended to raise support for congestion pricing on Chicago area highways:

Would driving a steady 55 mph the entire way be worth the price, say, of a latte, particularly on days when you are crunched for time?

Officials at the Chicago Metropolitan Agency for Planning think drivers will see value in a congestion-pricing plan that the agency is recommending be implemented on new highway lanes planned on six major existing and future roadways across the six-county area. Under congestion pricing, drivers who opt to use free-flowing express lanes pay a fee, or an extra toll on the Illinois Tollway, during peak traffic periods. The price goes down when fewer vehicles are on the roads…

In the proposal, the amount would be 5 cents to 31 cents per mile during rush hours, depending on the specific roadway. That comes out to $2.76 in the Stevenson scenario and $3.41 on the Eisenhower…

CMAP officials said their goal is to get congestion pricing up and running within three or four years, starting on the Addams. A widening project is slated to begin on the I-90 corridor next year, and the tollway has previously identified it for a possible congestion-pricing experiment.

I will be interested to see how people respond and what this public relations campaign looks like. It seems that certain highway solutions in the Chicago area, such as adding more lanes and increasing traffic capacity, are reaching an end or have run their course. Just how many lanes can you add anyway – and it really doesn’t help as this tends to attract drivers. There have been some plans in place to extend mass transit, such as through the delayed STAR Line, but money is lacking. High occupancy vehicle lanes have been discussed but haven’t really gone anywhere. Thus, congestion pricing might kill two birds with one stone: reduce highway traffic (or at least stabilize it) while raising some money that can be reapplied to highways. Of course, this will strike some as unfair, particularly coming after a toll hike (that hasn’t limited tollway traffic much), but no one is being forced to use the express lanes…

A new off-Broadway play criticizes making the American Dream about buying mini-McMansions

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It has become common in recent years to link the economic crisis to the purchases of McMansions. Here are a few lines from the new off-Broadway play “Heresy” illustrate this:

Chris’ college roommate, Pedro (Danny Rivera), and tarty call girl lady friend Lena (Ariel Woodiwiss) appear as witnesses for the persecuted campus radical. With the help of Pontius’ blowsy socialite wife, Phyllis (Kathy Najimy), the negotiation for Chris’ freedom devolves into a boozy cocktail party and a well-meaning but exasperating political debate. The characters spout off arguments like, ”The American Dream has been reduced to mean a mini-McMansion bought with an unaffordable mortgage,” and ”The American dream has dwindled into a vulgar, materialistic view of life.” And so on.

A lot of commentators have argued that the American Dream has become equated with consumerism. I remarked recently to one of my classes that this seems to be an odd interpretation of the “life, liberty, and pursuit of happiness” suggested in the Declaration of Independence.

But, there is little doubt that owning property was an important consideration for the American colonists and that owning a home today is one key marker of “making it” in America. I suspect the real issue here could be two things:

1. Buying and consuming more than one needs. It is one thing to be self-sufficient or comfortable and another to be excessive.

2. There are issues when individuals care more about acquiring and protecting their own possessions as opposed to caring about and contributing to the larger community. This has been a tension throughout American history.

Another note of interest: what exactly is a mini-McMansion and how does it differ from a McMansion? McMansions are usually thought to be quite large, probably somewhere between 3-10,000 square feet. Thus, a mini-McMansion would be smaller but the average new home in the United States is around 2,500 square feet so is this typical new home automatically a mini-McMansion?

Hard to get green homes appraised as there is a lack of knowledge, comparables

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Interest in green homes, exemplified by net zero energy homes, may be growing but there is an issue: because there is a lack of comparable homes, appraisals for green homes are more difficult to do:

Last year, single-family green home construction represented 17 percent of the homebuilding market, in effect doubling since 2008, according to a report by McGraw-Hill Construction. Researchers predict that by 2016, green home construction could comprise 29 percent to 38 percent of the market, as builders devote more time to green projects. The share of remodeling projects labeled as green is expected to rise as well…

Appraisers are slowly getting up to speed. Since 2008, almost 4,900 appraisers nationally have participated in 275 courses on green and energy-efficient valuation conducted by the Appraisal Institute trade group. Still, green home appraisals continue to be difficult, in part because there are few comparable sales but also because the building technology is changing. That makes it hard for appraisers to value — and for lenders to accept those higher values — home features that can run the gamut from rain barrels to a tankless water heater to a whole-house geothermal heating system…

In the Chicago area, Midwest Real Estate Data LLC added “green” fields to its multiple listing service so sellers can highlight environmentally friendly features of their homes to potential buyers. The Appraisal Institute created an addendum to appraiser forms to help analyze the value of green features. And lenders are starting to track so-called green mortgages to see if defaults are lower than on traditional home…

To increase the chances that improvements that go above and beyond what’s required by local building codes is correctly valued, experts recommend documenting green features added to a home.

They also urge builders and consumers to consider obtaining third-party certification about the home’s energy efficiency.

Put another way, there is more cultural and economic interest in green homes. People want to both reduce their energy costs but also want homes that are “responsible” and not seen as energy-hogging McMansions. However, it takes some time for the whole market to catch up to the perceived higher values of these new homes. This is the real issue here: while extra money and time may be spent on green features, appraisers aren’t yet “rewarding” builders and homeowners with the increase in housing value they think a more efficient and green-conscious home deserves.

Thinking more broadly about this, I wonder about the motivations of builders who are constructing more green homes. Are they motivated more by wanting to be green or by the knowledge there is a growing market for such homes? Of course, being green and making money can go together and perhaps this is how it should work in a perfect world. But, this might matter for some who are more concerned about being green and who wonder if being green is currently about being trendy which could endanger such causes down the road when the cultural and economic winds change.