Governing.com: 13th Floor

Toll Trap: Why a Fee for E-ZPass is NOT a Good Idea

2009-01-06T15:05:40-05:00

posted by Ellen Perlman

Maryland is thinking about charging a fee for E-ZPass users, whether they use the pass or not, according to a Baltimore Sun story. Not a good idea.

Number one, because I use an E-ZPass, and it would cost me $1.50 a month to keep it -- even though I use it rarely. Number two, because I use an E-ZPass and I likely will cancel it. It makes little sense to me to pay for nothing.

I'm guessing I'm not alone. It won't feel right to occasional users to, say, rack up $9 over six months, and then use the pass to zip through, a $2 toll near Baltimore or a 50 cent toll in Virginia.That becomes an $11 or $9.50 toll, in effect.

So what will be the result?

Longer lines at toll booths and perhaps a commensurate need to hire more toll booth staff. Less incentive for drivers to consider getting an E-ZPass. More paperwork for the state, from people who cancel their passes. And, perhaps, game the system by ordering another one if they have frequent trips on toll roads coming up.

This may sound silly but I know someone who wouldn't buy an RFID-enabled SmarTrip card for DC's Metro system because he didn't want to give $5 to "the system."

Maybe Maryland has taken this into consideration and assumes that most people use their E-ZPass (compatible with Smart Tags and other state zip-through-tollbooth cards) enough that the fee won't deter them.

But it seems that with all the talk of too much traffic, global warming, extra highway lanes and all, it makes sense to set policies that encourage better driving practices. Not ones that put people back in long lines, idling at tollbooths. Even if it's a small number.

City Life = Brain Damage?

2009-01-06T10:13:34-05:00

posted by John Buntin

The evidence is surprisingly strong, some neuroscientists say.

Attention and self-control are particularly harmed by urban life. The best antidote seems to be a big dose of nature. In particular, humans respond well to the the rich variety of places like New York's Central Park.

In contrast, researchers say, the denuded savanna of, say, the national Mall in downtown Washington does little to soothe the mind or promote sanity.

Could this explain the occasional madness of Congress? If the incoming Obama administration wants to bring sanity to Washington, DC perhaps it should plant some trees as part of that stimulus package...

Start-Up Government

2009-01-05T13:23:25-05:00

posted by Will Wilson

Today's Washington Post has a nice story on DC chief technology officer Vivek Kundra. The opening of the article especially underscores how Kundra not only uses technology in aid of public policy, but how he finds creative ways to invest in technology:

In October, he launched a contest called "Apps for Democracy" to encourage developers to create applications for the Web and cellphones to give District residents access to city data such as crime reports and pothole repair schedules.

"I expected to get maybe 10 entries, but we got 47 apps in 30 days," Kundra said. He said he spent $50,000 for the contest and prize money, and estimates he saved $2.6 million over what it would have cost to hire contract developers.

The article also quotes Virginia Secretary of Technology Aneesh Chopra. Chopra developed a similar "Venture Governmentalist" approach (which I wrote about in July), with the twist that Chopra solicits grant proposals from government employees and offices themselves.

Both Kundra and Chopra advise Barack Obama on tech issues -- which may itself provide a good hint as to what the president-elect might be looking for in his promised tech czar position.

And incidentally, both Kundra and Chopra will be speaking at GOVERNING's Outlook in the States and Localities conference next month.

Big-Budget Movies

2008-12-31T05:00:00-05:00

posted by Alan Greenblatt

It would be easy to conclude that New Mexico's program of tax incentives for film and TV producers has been a big success. The state is hosting roughly 10 times as much film production as it did a decade ago. Albuquerque is now home to some of the largest soundstages in the world, and Sony Pictures Imageworks plans to move its special-effects operations to a new location there.

But a look at the numbers suggests that all this new activity has come at considerable cost. During the past fiscal year, according to a recent study, New Mexico granted $38.2 million in tax rebates for TV and movie production, but in return saw only enough increase in economic activity to generate $5.5 million in public revenue. "For every one dollar in rebate," the study concluded, "the state only received 14.44 cents in return."

Over the past five years, all but 10 states and some cities have created film-incentive programs. This has spread production around, but no one has come up with a formula that can be shown to provide a net economic benefit for the state or locality itself.

Some places are still seeking a method that can work. The goal, says Ivan Schwarz, of the Greater Cleveland Film Commission, should not be to land a few movies but to persuade producers to put down roots. Fostering a permanent infrastructure of experienced crews and graphic designers requires patience. "We're trying to build an industry," he says. "It's not just an overnight savior."

The problem is that there's not enough production to support ongoing film work everywhere. And, with most states competing to attract such business, it's going to be doubly hard for many of them to remain viable locations. "States are auctioning off their revenues in order to attract this particular industry," says Michigan state Senator Nancy Cassis. "As soon as one state outbids another, the film producers will be out of there in a nanosecond."

In April, Cassis cast the sole dissenting vote when her state created the nation's most generous incentive package, offering film producers rebates of up to 42 percent of production costs (New Mexico's, by comparison, is 25 percent). She believes her colleagues will come around on the issue as the cost of the program spirals past initial estimates.

Given the grim budget picture in most states, there's talk in many capitals of imposing overall limits on film subsidies. Still, this may be one of those shiny new economic development pursuits that everybody likes too much to worry about mere facts and figures. "I tried to cap it in the $30 million range," says New Mexico state Senator John Arthur Smith, "but I got stampeded on it."

Real ID - How real is it?

2008-12-30T10:00:00-05:00

By Ellen Perlman

Speaking of bleak headlines, as Alan Greenblatt did here, how about this one: "Obama Administration to Inherit a real mess on Real ID," from a Computerworld article.

Real mess for the administration? How about the states? They're the ones that get stuck with carrying out the new vehicle licensing program that requires stringent national identification standards.

In any case, now we have to take into account the fact that Obama's choice to head the Department of Homeland Security - which is responsible for implementing Read ID rules - signed a bill barring her state from participating in the program.

This could get interesting.

Confronting Carbon

2008-12-30T05:00:00-05:00

posted by Alan Greenblatt

California lawmakers are finishing another ordinary year. Once again, their budget is a mess, with lawmakers and Gov. Arnold Schwarzenegger arguing about how to close a shortfall that has soared past $10 billion. But somehow, despite the chaos, California keeps managing to turn out sweeping and important
pieces of legislation.

SB 375, a land-use bill enacted this fall may set a new template for both transportation planning and climate-change policy nationwide. The new law is an attempt to begin translating the
greenhouse-gas law that California enacted in 2006 into a specific policy framework -- in this case, land-use planning.

(Incidentally, the California Air Resources Board took a big step toward implementing the 2006 law on Dec. 11, approving a comprehensive set of regulations. The new framework will allow businesses to buy and sell emission credits, impose fees on water use and require utilities to generate a full third of their power from renewable sources -- about three times as much as they do currently.)

SB 375 directs CARB to come up with targets for reducing emissions from cars and trucks. Regional planning boards will then rewrite their master plans in ways that seek to meet those targets. The ones that come closest will be rewarded with extra federal and state transportation dollars.

The best way to meet the standards, argues Tom Adams, president of the California League of Conservation Voters, is to cut down on sprawl. He points out that the number of miles traveled per vehicle is still growing at one-and-a-half times the rate of population growth. (That differs from the picture nationwide, where VMT have been in decline.)

It's only by creating more compact and energy-efficient communities, Adams believes, that the state's long-term environmental goals can be achieved. It's no surprise that SB 375 was backed by environmentalists, but it also had the support of California's home builders, who liked the prospect of more predictability in the zoning process. One of the main goals of the bill is to induce localities to coordinate their major planning tasks -- transportation, land use and housing. Few have been
doing that up to now.

In addition, SB 375 provides relief from certain air-quality standards that had, perversely, discouraged developers from undertaking infill projects. "Builders thrive on certainty, knowing what the rules are," says Tim Coyle, of the California Building Industry Association. Local governments also supported the
law; while it provides incentives and creates a policy-making framework, it doesn't create specific mandates for any individual regions.

The new law will take years to implement, but it already has received lots of attention from other states. "It's really a very important piece of legislation," says Peter Kasabach, of New Jersey Future, a
smart-growth group. "How we develop our land is going to impact our greenhouse-gas targets."

An Interstate Road Map for Bikes

2008-12-29T10:00:00-05:00

By Ellen Perlman

An interstate bicycle system! That's what the plan is and I'm all for it. The American Association of State Highway and Transportation Officials, along with Adventure Cycling Association and others, have laid the foundation for a nationwide bicycle network, via a plan that was four years in the making. It could weave together 50,000 miles of bicycle-friendly roads and paths.

Now all we need is for states to create the routes and put up signs. Who's game?

Unlike Eisenhower's huge interstate highway plan, or the Obama administration's possible road-building ideas, the bicycle network requires no major digging or paving. It's all about linking together trails, byways, secondary roads and bike trails.

Here's an important point for struggling states that want to encourage tourism and green travel: If the U.S. could complete this bicycle network it would outdistance anything similar in other countries.That would make it a major attraction.

"It's a great opportunity for the U.S. to establish what could be the largest bicycle route network in the world, said Jim Sayer, executive director of Adventure Cycling, in an AP story on msnbc.com that has details about what other countries are doing.

Will You Be Living in a 'No-Newspaper' City in Less Than Two Years?

2008-12-29T03:50:00-05:00

posted by Zach Patton

We've all been hearing an awful lot lately about newspapers facing bankruptcy and cutting the size of their staffs.

(As Jon Stewart put it recently, "What's black and white and completely over?")

But here's an even more sobering thought. In the very near future -- like the next 18 months -- newspapers and media groups across the country could likely default on their debt and close up shop, leaving "several cities" without a daily newspaper, according to a recent report from Fitch Ratings.

"Fitch believes more newspapers and newspaper groups will default, be shut down and be liquidated in 2009 and several cities could go without a daily print newspaper by 2010," the Chicago-based credit ratings firm said in a report on the outlook for U.S. media and entertainment.

Of course this is bad news for good governance: A decline in daily newspapers means fewer eyes will be watching city hall.

Some of the void will be filled by blogs and hyper-local news websites. Rob Gurwitt actually wrote about that shift in the December 2006 issue of Governing (although the landscape has undoubtedly changed drastically in the two years since Rob's story). But although blogs have started gaining some of the cache and respect that had been associated with local newspapers, they still largely lack the resources to follow stories in the same way.

"Stop the presses" never sounded so ominous.

Insurance Wars

2008-12-26T05:00:00-05:00

posted by Alan Greenblatt

When the insurer AIG failed, at a cost to taxpayers thus far of $150 billion, a few federal lawmakers felt they knew just whom to blame: state regulators. "Clearly, some insurers have become too complex and too interconnected worldwide for the limited resources of state regulators to handle," four members of Congress wrote in the Wall Street Journal.

That assertion signals a reprise of one of the longest-running lobbying battles in Washington — over whether to create a federal charter that would give insurance companies the choice between state or federal oversight. "We believe that this will be on the table again," concedes Roger Sevigny, New Hampshire's insurance commissioner, who is not glad to see it back.

Insurance regulation has long been the sole province of states. This fall, state regulators were quick to assure Congress — correctly — that their oversight of AIG's actual insurance business had been sound. AIG failed because of its misplaced bets as a quasi-investment bank in the great housing bubble sweepstakes. "AIG's problems came from its parent company and from its non-insurance operations, which are not regulated by New York or any other state," Eric Dinallo, New York's insurance superintendent, told a congressional committee.

But that argument may not carry much weight at a time when the idea of plugging just such regulatory holes has come into fashion. Congress is in the mood for tighter and more consolidated regulation of financial services, and insurance won't escape the debate. When it's over, there almost certainly will be a new role for the feds, either directly overseeing the broader financial machinations of insurance companies or providing firm guidance to state regulators when it comes to the insurance business proper.

The National Association of Insurance Commissioners — made up of state officials who prefer the current system — is getting ready. The organization is moving more of its operations to Washington — not to lobby, it says, but to make industry data more easily accessible to Congress and the Treasury Department. One of the proposals that has been floating around Capitol Hill would create an Office of Insurance Information within Treasury — a role NAIC feels it can essentially fill all by itself.

Providing more information to the feds will be a welcome gesture. But in the current climate, when Washington wants to bring its own financial regulatory bodies into greater harmony, it's unlikely that 50 versions of state insurance control will remain politically viable.

Sagebrush Bailout

2008-12-24T05:00:00-05:00

posted by Alan Greenblatt

When Congress finally passed the $700 billion Wall Street bailout in October, it was a triumph — oddly enough — for counties in the rural West. Although counties were far from the main legislative action, the bill contained more than $3 billion they desperately wanted.

That's because it funded two programs that had just about run out of time and money. One is Payment in Lieu of Taxes, which compensates counties for services where the federal government owns vast tracts of tax-exempt land. The other is a program called Secure Rural Schools and Community Self-Determination.

Some counties depend on such funding for as much as 10 percent of their overall budgets. In New Mexico, every county but one receives PLT funds. The U.S. House stripped funding for both programs from this year's primary appropriations package. But the bailout bill will pay for each through 2012, thanks to last-minute amendments attached by senators from Western states.

Because the funds came suddenly and unexpectedly, they were a particular boon to counties that were looking at big budget cuts or layoffs. "We used to get about $300,000 from Secure Rural Schools," says Carrie Bird, auditor of Clearwater County, Idaho, which recently began laying off employees. "We didn't budget any of that money because we weren't going to get it."

In neighboring Shoshone County, the funding was arguably even more welcome. There, the roads department typically accounts for about a quarter of the $10 million county budget, but its accounts were slashed by nearly one-third before the federal rescue came through. "It's huge," says county clerk Peggy White, "when you think of all the roads within this county and all the national forest lands that we're supposed to maintain."

But as much as county officials welcome the largesse, they recognize that it's a temporary reprieve. In four years, they'll have to fight the funding battle in Congress all over again. At that point, they may not have another must-pass bill to use as a vehicle. And, as with nearly all other governments these days, their overall general fund-picture is looking grim.

"The easiest way to think of this," says Jeff Spartz, county administrator in Lane County, Oregon, which had recently laid off 8 percent of its workforce, "is that it prevents us from falling off another cliff immediately."

A Revolutionary Idea from Revolving Doors

2008-12-22T05:00:00-05:00

posted by Zach Patton

From the Of-Course!-Why-Haven't-We-Thought-About-This-Before? Department: A company in the Netherlands has installed what it calls the world's first device that uses the motion of a revolving door to generate energy.

The door in this case is the entrance to the Driebergen-Zeist railway station in the central part of the Netherlands. It's a high-traffic spot -- 8,500 commuters use the station every day.

The door is expected to generate about 6,400 kwh of energy a year, roughly equal to the needs of one household.

So it's nothing huge. But it's a brilliant way to capture energy from an action that's already occurring thousands of times a day.

(from Boon Edam via Gizmodo)

Grim Headline

2008-12-19T12:39:33-05:00

posted by Alan Greenblatt

Here's the darkest headline I can remember seeing on a press release:

Cities Officials Hold the Worst Outlook in the Nation's Direction in Nearly 20 Years

It's from the National League of Cities, touting the latest State of America's Cities survey.