Redistribution of Wealth – The Socialists are coming!

Every so often, whether we are in election season or not, there always seems to be a discussion or two about those who seek to redistribute wealth.  Funny thing is, it only ever seems to be an accusation thrown in the direction of liberal politicians who are accused of wanting to take from the rich and give to the poor.  The contradiction of course is that redistribution of wealth works both ways and has since probably the beginning of time.  It works in favor of home owners (ever heard of the mortgage deduction), seniors, and of course businesses large and small (think replacement of Michigan Business Tax with a corporate income tax and the tax on pensions that was implemented to fund it). 

So the next time you hear about how certain people want to take from the rich and give to the poor, think about how redistribution of wealth is benefitting you personally.

But I digress, because I am not writing today to mainly discuss the contradictions in the social aspect of “redistribution of wealth” but the community building aspect.  That’s right, community building aspect.  A recent article by Stanley Kurtz claims that the President and other political leaders in Northeast Ohio are poised to redistribute wealth from the suburbs to the cities. Mr. Kurtz is a senior fellow at the Ethics and Policy Center and has recently released a book titled, “Spreading the Wealth, How Obama is robbing the suburbs to pay for the cities”.

Mr. Kurtz’s claim is that under the moniker of “regionalism”, President Obama aims to help Ohio’s Democrats bail out struggling cities in that state by forcibly transferring suburban tax money to urban areas.  

Of course efforts on “regionalism” are not just an issue in Ohio.  Here in Michigan, with state revenues to local government cut by over $4 billion during the last decade, local governments have been collaborating for years to provide essential services in the most cost effective and efficient manner as possible.

What strikes me odd about Mr. Kurtz’s arguments and others who espouse such views is that such actions being taken by local governments the Cleveland area, in Michigan and elsewhere around the country seem to be the exact policy that those on the “right” side of the political spectrum would support.  What is more business- like than finding ways to collaborate and spend taxpayer dollars as wisely as possible by exploring every opportunity to work together. 

As for the “redistribution of wealth” argument, a recent article in DC Streetsblog, shows that over the years, the redistribution has been mostly in favor of the suburbs, not the cities.

Isn’t it about time we put aside the so-called red herring known as “redistribution of wealth” and simply worked on what makes sense in this time of finite resources. That being, to invest the taxpayer dollar where we can get the biggest bang for the buck in places where infrastructure already exists, and where there are already assets to build upon.

Of building a bridge as you walk it…

In my almost eight years of working for the Municipal League there are certain things I’ve been tagged with. One of them is sharing news clips with my colleagues every Sunday morning.  Although this practice has been more inconsistent lately, it stems from having those few hours on Sunday morning to myself, while the rest of the family attends church.  Well its Sunday morning, they’re again at church and in a variation on that theme I’m writing a blog…a different kind of sharing but sharing nonetheless. 

It has been another busy week of traveling around the state to see members and give presentations on what will help to bring prosperity to Michigan communities. It has been closed by a great trip on family weekend at my youngest daughter’s college, Ball State University, in Muncie, Indiana. 

Muncie is not unlike any other mid-sized Midwestern city or Michigan city for that matter, seeking to redefine itself in the post-industrial economy.  This morning, I seem to have found “the” college café (The Cup) just off the south side of campus where there is a good deal of student housing. A mix of students and others are coming in to get their Sunday morning refreshments and begin the recovery from a Saturday night of activity. 

Ball State University (yes its named after the Ball brothers, more famous for their canning jars than anything else) is beginning to work more and more with the surrounding neighborhoods and city at large on redevelopment.  This is not unlike the “town-gown” relationship building we are seeing across the country. And while some have recently panned the economic growth from such relationships, I would remind readers of the “its not any one thing” philosophy of economic growth.  Certainly, those communities that contain a community college or 4 year university within their borders would be remiss to not establish a “town-gown” relationship as part of a broader effort on creating long-term sustainable economic growth and prosperity. 

As for how I started this past week, well that was in Newaygo.  Located north of Grand Rapids, this community of just under 2,000 is situated in a county where nearly half of the land is contained within a national forest.  And, like any other small town (or any town for that matter), Newaygo is looking to redefine itself.  Toward that end, they have put together a very impressive business  incubator for entrepreneurs right on the main street in downtown. Its called “The Stream”, an appropriate name given Newaygo’s location on the Muskegon River.  As for the “they”, it includes not just local officials, but other community leaders from non-profits, the private sector and community foundation. Over the last couple of months I’ve had the opportunity to get to know two of them, Sandi Williams, Director of the Center for Nonprofit Housing in Fremont and Paul Wishka with TrueNorth Community Services.  

Their unbridled enthusiasm for the work they’re doing, on the ground in Newaygo and communities across the county is infectious.  One step at a time, one project at a time, they are building a bridge as they walk on it, a journey filled with risks for sure, but one they know they need to take if they are to create a future of sustainable prosperity for themselves and their community. It’s the same journey being taken by countless others in communities across our state. All of it causes me to be inspired, and makes me proud to be working for an organization and with people who are helping to move Michigan forward.

On allocating scarce resources, running government like a business and having your cake and eating it too.

So its Sunday of Labor Day weekend, a gorgeous Sunday mind you and yet I’m inside writing a blog.  Well, when the youngest offspring is home from college for the first time and shopping is on her list, its mom that goes and not dad. Typical Mars and Venus stuff. So instead, I decide to relax and read. Not anything heavy like a novel but something related to work. I can’t help it.  And of course reading such material gets me to thinking… a dangerous state for me, just ask my family or co-workers.                                         

That’s the setup. What I was reading was Governing magazine. It’s a great magazine for those involved or interested in state and local governments. And a small article in the August issue (ok, I’m a bit behind) discussed the controversy over “Agenda 21”.  What is Agenda 21 and why is it controversial? A recent poll shows that’s what 85% of Americans would like to know that as well. 

Agenda 21 is the name given to a non-binding resolution adopted by the United Nations in 1992 that encourages sustainable growth through development in dense areas while encouraging conservation of open land.  Key phrase here… NON-BINDING. Nonetheless, those who believe there are plotters among us seeking to create a one-world government through the United Nations have drawn their focus on the measure, to the point where the national Republican Party platform has strong language against Agenda 21.( “We strongly reject the U.N. Agenda 21 as erosive of American sovereignty, and we oppose any form of U.N. Global Tax,”)

Now, from where I sit a non-binding resolution is just that, non-binding, meaning you don’t have to do anything to follow it. On the other hand in an era of scarcer and scarcer financial resources and a growing federal deficit, shouldn’t we have a honest discussion about where those resources are to be placed and how?  Of course we should, the message of having to make tough decisions was a constant at the recent Republican national convention. And yet, when it happens and government seems to do the right thing, its still wrong.

Case in point, the new $14 billion levee system that seems to have worked and saved New Orleans form major flooding during Hurricane Issac.  But, water has a tendency to create its own path and when it was essentially blocked from New Orleans, it found its way to smaller communities who were not hit as hard from Katrina. That has led to an outcry and proclamations from elected officials to seek a full investigation and ensure that it doesn’t happen again. 

You know the old saying about not being able to have it both ways.  Well, if there is an expectation that, given scare financial resources, we want government to act like a business and get the biggest bang for the buck, then there will be winners and there will be losers. This too is part of the tough discussion.  The levee system is a classic case in point. Spend money and improve infrastructure where it will make the most difference.  

That seems to me be the real the point of Agenda 21… develop plans, strategies and programs that will yield the most efficient and effective use of taxpayer dollars, especially when it comes to land use planning and infrastructure.  Actually seems quite similar to the Michigan Municipal League’s “Center for 21st Century  Communities” initiative. Quite frankly one would think such a school of thought would be supported by all, but especially by conservatives. 

Hurricane Issac provides a great opportunity for the leaders in both parties to have that “tough discussion” with Americans in an honest manner, even in an election year, and not in 30-second sound bites. It’s crunch time folks, pay close attention.

The Big Disconnect

Once upon a time in a land far, far, away….Oh wait wrong fairly tale.  What am I talking about? The fact that not too long ago the provision ofr services in Michigan used to be a shared responsibility between state government and local government.  But, over the past decade or more what we have seen is a devolving of those responsibilities to primarily locals as the state has used nearly $5 billion meant for locals to fill its own budget hole.  As a result we’ve seen locals layoff police and fire personnel, close parks and libraries, and put off much need upgrades to important infrastructure such as local streets and sewers. At the same time, getting state government (governors and legislators) to come together on the need for additional revenues has been virtually impossible.  Take additional revenues to help fix our roads and bridges and support transit alternatives.  Even with federal dollars at stake, the legislature can’t seem to find a way to agree to something…anything that would bring such areas into the 21st century.

And yet, at the local level, residents are passing millage after millage to support any number of services.  As a matter of fact at the August election, 90% of all local millages were approved.  This included 100% of all public transit millage requests!   The story has been the same the past couple of years. In the August 2010 election, 86% of all millages were approved and in May of 2011 more than 80% were adopted.

So what’s the deal in the halls of Lansing or Washington?   Clearly, local voters are more than willing to support additional revenues for items when the case is made for specific services that add to our quality of life.  Lets just be sure that the next time we hear a state legislator say the public is against raising taxes to remind them of the reality.

The Big Disconnect

Once upon a time in a land far, far, away….Oh wait wrong fairly tale.  What am I talking about? The fact that not too long ago the provision ofr services in Michigan used to be a shared responsibility between state government and local government.  But, over the past decade or more what we have seen is a devolving of those responsibilities to primarily locals as the state has used nearly $5 billion meant for locals to fill its own budget hole.  As a result we’ve seen locals layoff police and fire personnel, close parks and libraries, and put off much need upgrades to important infrastructure such as local streets and sewers. At the same time, getting state government (governors and legislators) to come together on the need for additional revenues has been virtually impossible.  Take additional revenues to help fix our roads and bridges and support transit alternatives.  Even with federal dollars at stake, the legislature can’t seem to find a way to agree to something…anything that would bring such areas into the 21st century.

And yet, at the local level, residents are passing millage after millage to support any number of services.  As a matter of fact at the August election, 90% of all local millages were approved.  This included 100% of all public transit millage requests!   The story has been the same the past couple of years. In the August 2010 election, 86% of all millages were approved and in May of 2011 more than 80% were adopted.

So what’s the deal in the halls of Lansing or Washington?   Clearly, local voters are more than willing to support additional revenues for items when the case is made for specific services that add to our quality of life.  Lets just be sure that the next time we hear a state legislator say the public is against raising taxes to remind them of the reality.

Tolerance and Prosperity

One of the eight assets of the MML’s Center for 21st Century Communities (21c3) programs is multiculturalism. Its the best way we could think of stating that being welcoming to all is as important as anything when it comes to communities prospering in the 21st century.

And someone who can be considered one of the forerunners in the discussion of “place”, Richard Florida, recently penned a article on the subject. It can be found in theatlanticcities.com, a on-line ezine from “The Atlantic” magazine. If you’re interested in issues involving cities, you should definitely have this in your twitter feed.

The article, titled “The Geography of Talent” discusses how places that are open to new ideas attract creative people from around the globe, broadening both their technology and talent capabilities, gaining a substantial economic edge.  Talent and technology are Florida’s other “T’s” for creating prosperous communities.

Florida notes that recent studies indicate that half of all Silicon Valley start-ups have at least one foreign born person as a founder.  Florida notes that “Tolerance  –  and openness to diversity and inclusiveness – is not an afterthought or something that happens when communities get rich. It is a key element of the new economic development equation.

Florida recently released a 10th anniversary revsied edition of his original work on the rise of the creative class. While one may not always agree with what he has to say, his work does provide for some thought provoking conversation.

Keeping the best and brightest

The Lansing State Journal has a excellent series of articles about how to grow Michigan’s economy.  And once again the bottom line is about creating the kinds of places that people want to be in.

Articles from League partners, Lou Glazer at Michigan Future, and Dave Waymire of Martin-Waymire Communications detail the importance of smart, young workers and present a different kind of scorecard matching up Michigan with Massachuetts.

Pat Gillespie, a Lansing-based developer discusses the kinds of development needed to make a vibrant 21st Century commuity and Holly Hetzner of the Prima Civitas Foundation talks about the importance of nurturing entrepreneurs.  Other articles describe the importance of public art and social networking.

Sound familiar.. it should.  Each and every topic is among the eight assets of vibrant communities we’ve outlined in our “Center for 21st Century Communities.”  Through the work of the center, our blogs, books and radio show the conversation is changing to a understanding that Michigan’s future economic prosperity rests on investing in Michigan’s communities.  Its not too late to join us.

What this blog is about

When I was offered the opportunity to write a blog related to the work I do here at the League, I thought back a few years to all the strategy discussions we had about our goal to change the conversation among policy makers regarding the importance of strong, vibrant communities to Michigan’s economic future. A pattern of disinvestment had set in, particularly at the state level, what with numerous budget cuts to programs that assist communities, not the least of which was revenue sharing. This was centered on our state’s recession during the last decade as well as a philosophy that tax cuts alone would get us back to economic prosperity. Well, after reductions in the income tax and implementation of a phase out of the single business tax the only thing that was accomplished was the shrinking of state resources for communities, K-16 education and a host of other programs. The bottom line for us was that if we want to re-establish the state and local partnership, we need to show how communities count in the equation.
Thus, the name for this blog, “Communities Count”. I’ll be writing about the importance of public and private investment in communities to help local officials and residents create the kinds of places that people want to work, live, and play in. I’ll highlight the good, the bad, and the ugly, from Michigan, the United States and around the world. I’ll celebrate the good stuff taking place in Michigan communities (and there is plenty) and I’ll also let you know when I something happens that I disagree with. And as I write, I hope to hear back from you. I’m after an intelligent discussion in a way where while we might not always agree, we can continue to find some middle ground toward creating better places. And remember…better communities mean a better Michigan.