Campaign News

St. Louis Post Dispatch - February 2, 2014, by Jeffrey Kohler - While law professors and activists call for dramatic reforms for municipal courts in St. Louis County — including getting rid of them — more moderate changes are being pushed by an ad-hoc committee of municipal court officials.

The Municipal Court Improvement Committee, mostly judges, prosecutors and court officials, has introduced several proposed changes, according to a memo written by its chairman, Frank Vatterott, a defense attorney and veteran municipal court official who has been a judge in Overland since 1991.

But a rival group says the proposals do not go far enough and said the committee was “the foxes guarding the henhouse.”

The committee’s first change would be to encourage the courts to adopt uniform schedules for fines, Vatterott said. Several courts vary widely in the fines assessed for the same charge, which, he said, was unfair.

Next, the committee would push for a uniform schedule for bonds, although it still polling the courts to determine how significant the problem is.

Then the committee would make volunteer lawyers available to offer legal advice to municipal court defendants. The committee also would advocate for cities to establish municipal court fees to pay for public defenders.

The committee also proposes expanding the use of community service in lieu of fines for ordinance violations. The change could end the problem of poor people burdening their families with requests to help pay fines. The committee also proposes setting up a uniform system for allowing financially strapped defendants to pay fines in installments.

The changes would be voluntary, but in a memo to the county’s 79 municipal courts, Vatterott urged full participation. “Keep an open mind and consider the beauty of uniformity,” he wrote.

The next step would be getting courts to agree to the changes.

Vatterott said the courts should bring about the reforms, not activists, law professors or the state Supreme Court. “Our judges and our court personnel are the road warriors. We know best how to improve our courts.”

The committee’s ideas seem to have support from higher in the state courts.

In a letter to the committee, Maura B. McShane, presiding judge of the St. Louis County Circuit Court, which oversees the municipal courts, wrote that municipal court judges should support the committee “to bring integrity and fairness to the court.”

“I agree with your committee that our municipal courts should consider adopting changes voluntarily and as soon as possible wherever they need to be made to restore confidence in our courts,” she wrote.

Roy L. Richter, a judge with Missouri Court of Appeals Eastern District who serves as chairman of a committee that trains municipal judges, wrote in a letter to the committee that most municipal courts were operating properly and the media’s coverage of them has been inaccurate. But he urged court officials to make a good system better.

Missourians Organizing for Reform and Empowerment, a grass-roots group that has rallied for municipal court changes, on Monday questioned the wisdom of leaving reform to the lawyers and judges who benefit most from the money-making aspects of the system.

Jeff Ordower, executive director of the group, said while Vatterott’s committee has offered some ideas that they agree with — such as creating standard fines and allowing people who cannot pay to do community service — the proposals do not go far enough.

“It starts with the police and how they profile and then it ends with the justice system, where you have a cabal of lawyers and judges who benefit from that,” he said. “We need to change the status quo, shake it up and abolish it.”

Ordower’s group held a press conference outside the office of St. Louis County Executive Steve Stenger, after releasing its own proposals in a five-page report: “Transforming St. Louis County’s Racist Municipal Courts.”

MORE has proposed eliminating “failure to appear” charges altogether, challenging the notion that “if you roll a stop sign you’re now a hardened criminal and should be facing jail time,” Ordower said.

The group is also calling on the courts to provide “real amnesty” by eliminating their backlog of fines on old traffic cases.

And jail time should not be an option for nonviolent municipal offenses, the group argued. MORE has also proposed that fines be proportionate to a person’s ability to pay.

While Vatterott’s committee wants to bring in volunteer lawyers to advise people on court days, MORE wants public defenders appointed routinely for indigent defendants, just like in state court.

Vatterott said he did not want to comment on the MORE report.

MORE pointed out that someone can be charged with failing to appear in one municipal court even if it was because they were already locked up on a charge from another municipal court.

“If I’m physically unable to appear because I’m in the custody of another court, then there should be some kind of dispensation for that — and there’s not, and that happens to many, many people,” said Derek Laney, an organizer with MORE who said it happened to him recently.

The group pointed out that it is impossible for a person who is arrested on a traffic warrant to take care of all their outstanding warrants from multiple municipalities without being shipped from one jail to the next.

MORE wants four regional courts to handle all of the county’s municipal cases, similar to the three courts that are now used for the county’s unincorporated regions.

The group held its press conference outside Stenger’s office to pressure him to pressure the courts.

Stenger responded with a statement: “During my campaign, I talked about the need for changes in the courts located in St. Louis County municipalities. Among other things, I would like to see these courts reduce fines and costs for indigent defendants. The courts also need to give some latitude regarding warrants issued for failure to appear. I will support any reasonable state legislation that addresses the current problems.”

Some drivers interviewed Monday were unconvinced municipal courts were anything but revenue generators. Nerissa Grigsby of Olivette said she recently mailed in a check for a speeding ticket in St. Ann. She said she hadn’t been speeding, and said she couldn’t reach court officials to discuss the case. Speaking about proposals to abolish municipal court, she said, “I totally agree with that.”

Sean Bailey, 35, is homeless with a 3-year-old daughter. He just got a part-time job in the restaurant business and is staying with a friend in south St. Louis. While trying to get his life back on track, municipal court fines are both far from his mind and an unavoidable reality. He said any reforms of the municipal courts would be welcome, but they’d have to be far-reaching — like the ones MORE is proposing — to make a difference.

Bailey had tickets in Ferguson and Florissant for which he accumulated fines totaling $1,950.

Bailey said he’s tried to show up to court and pay when he could but missed court when he couldn’t and that just resulted in more fines. More recently he tried to participate in an amnesty program in Florissant, but the court “wouldn’t budge” from a $100 fee to cancel his arrest warrant.

He couldn’t afford it, so his warrant remains.

“The reason these people aren’t paying like everybody else is simply because they don’t have it,” he said. “Nobody wants to go to jail. I think a fresh start would definitely help.”

Steve Giegerich of the Post-Dispatch contributed to this report.

Source

In part one of this two-part posting, I looked at the gender bias at the Federal Reserve, showing how men vastly outnumber women in key posts at Federal Reserve Banks throughout the United States despite the Fed's Congressional mandate.  In part two of this posting, I want to take an additional look at the Fed's bias; its failure to represent the economic diversity of America.

For those of you that either didn't read part one or who are unaware of the Federal Reserve's organizational setup, here is a graphic from a report by the Center for Popular Democracy showing the link between the Federal Reserve and its Federal Open Market Committee (FOMC) and its district banks known as Federal Reserve Banks:

Here is a map showing the regions covered by each of the 12 district banks (Federal Reserve Banks) and the 24 branches within each district:

Note that Alaska and Hawaii are covered by the San Francisco district.

If we start at the top of the organizational chart, the seven members of the Federal Reserve Board of Governors are appointed by the President and confirmed by the Senate for a 14-year term of office.  The President (and Senate) also confirm two members of the Board to be Chair (currently Janet Yellen) and Vice Chair for four year terms.  The FOMC consists of 12 members; the seven aforementioned Board members, the president of the Federal Reserve Bank of New York and four other regional Federal Reserve Bank presidents on a rotating, one-year term basis. The Federal Reserve Banks form an important link between the Federal Reserve and their local economy and help to dictate the Federal Reserve's monetary policies.  Each of the twelve district banks has their own president and boards of directors (nine directors in total for each bank); in addition, each of the 24 district branches has its own directors (seven directors in total for each branch).  The Board of Directors for each Reserve Bank are appointed in two ways; the majority are appointed by the Reserve Bank and the remainder are appointed by the Federal Reserve's Board of Governors.  The directors for each district bank then appoint their own president and vice president.  It all sounds rather nepotistic, doesn't it? 

By law, under the Federal Reserve Reform Act of 1977, the Boards of Directors of the Federal Reserve are to be

"...elected with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor and consumers.". 

That is, each of the leaders/directors of the world's most influential central bank and its district banking system are to represent a wide variety of each of the economic sectors that make up the American economy.

The report by the Center for Popular Democracy compares the economic sector representation during the period from 2006 to 2010 when the Government Accountability Office examined the composition of the Federal Reserve Bank Boards and the present.  Here is a graphic showing the past and present composition:

In both 2006 to 2010 and 2016, directors from the banking sector filled over one-third of the board seats, growing by 3 percentage points over the timeframe of the study.  In combination, in 2016, representatives from the commercial and industrial sector and the banking sector filled 68 percent of seats, up from 63 percent in 2006 to 2010.   The service sector's representation fell from 26 percent of seats to 18 percent and agriculture and food processing saw their representation fall from 6 percent of seats to 3 percent.  Interestingly, even though they are relatively poorly represented compared to the other sectors, the number of directors affiliated with consumer and community organizations rose from 3 percent to 8 percent.

For your illumination, here are a few of the Directors for each of the Federal Reserve Banks that you can get a sense of who is dictating America's monetary policies:

If you are interested in who is on the boards of the other Federal Reserve Banks, please see the original report.

Interestingly, during the "financial crisis" of 2008, there was some question about directors' independence and actions taken by the Federal Reserve banks since there was at least the perception of conflicts of interest when director-affliated institutions took part in the Federal Reserve System's emergency programs.  With a preponderance of representation from the banking and commercial sectors, it certainly doesn't take a genius to figure out which sectors of the economy will likely be favoured by Federal Reserve policies should there be another "financial crisis", does it? 

By A Political Junkie

Source

McClatchy Washington Bureau - November 14, 2014 - Federal Reserve Chair Janet Yellen met Friday with leaders of groups that want a voice in the selection of future presidents at the Fed’s 12 district banks.

“The focus was making sure that working families’ voices were heard,” Connie Paredes of Dallas, who represented the Texas Organizing Project, told McClatchy after meeting more than an hour with Yellen.

Paredes was one of 30 activists from the Center for Popular Democracy, a nationwide network of liberal and faith-based organizations who want more Fed attention on returning the nation to full employment, and for a more public process of selecting Fed presidents.

Unlike most central banks, the Fed has a dual mission. It must guarantee price stability, and it does that with the goal of keeping inflation in a range between 1 percent and 2 percent. But it also has the mission of promoting full employment, and that’s the string activists pulled on Friday.

“The Federal Reserve should publicly commit to building an economy with genuine full employment … promising to keep interest rates low until the economy has reached full speed and is producing millions of new jobs and higher wages for workers across the economic spectrum,” said The National Campaign for a Strong Economy, another group that met with Yellen and issued a statement afterwards.

A pressing concern for the activists was creating a mechanism by which ordinary people can have some input in the selection of presidents at the Fed’s 12 district banks. The presidents of the Philadelphia and Dallas district banks, Charles Plosser and Richard Fisher, have announced their retirement next year.

Traditionally, Fed presidents are appointed by the board of directors of each of the 12 banks, with the approval of Fed governors in Washington. The terms are for five years, and they can be reappointed. Critics of the Fed argue that Wall Street and Corporate America get unusual sway because they make up the boards of directors at the Fed banks, and there hasn’t historically been input from the public.

“We need a (Dallas) Fed president that is very aware of the community that he or she represents. Not just the corporate banking community but the entire community,” said Paredes, who applauded Philadelphia’s creation of a feedback process but still wanted more public participation in the Fed’s selection process.

The Fed had no immediate comment on Friday’s meetings.

Source

Read more here: http://www.mcclatchydc.com/2014/11/14/246944_yellen-meets-activists-on-e...

The Black unemployment rate tumbled to 9.1 percent in July, the lowest rate for Black workers in seven years, according to the latest jobs report from the U.S. Labor Department.

Even though the Black jobless rate has slowly ticked down to 2008 levels, some economists expressed concerns about the labor force participation rate, the measure of people who are employed or looking for jobs. The Black labor force participation rate decreased from 61.7 percent in June to 61.5 percent in July, which could indicate that the unemployment rate fell because some people simply gave up looking for work.

By comparison, the White unemployment rate and the labor force participation rate remained unchanged from June levels, 4.6 percent and 62.8 percent, respectively.

Valerie Wilson, an economist at the Economic Policy Institute, a Washington, D.C. based think tank focused on low- and middle-income families, found that Tennessee had the lowest Black jobless rate (6.9 percent) in the second quarter of 2015, which was almost the same as the highest White unemployment rate (7 percent in West Virginia).

Wilson also reported that the African American unemployment rate “was at or below its pre-recession level in eight states”: Michigan, Indian, Ohio, Tennessee, Mississippi, Texas, Illinois, and Missouri.

In the press release on her analysis of state unemployment rates by race and ethnicity, Wilson said that even though the Black unemployment rate has returned to pre-recession levels in those eight states, the states that are seeing improvements, with the exception of Texas, had the highest Black unemployment rates in the nation before the recession.

“African Americans are still unemployed at a higher rate than their white counterparts in almost every state,” Wilson said. “We need policies that look beyond simply reducing unemployment to pre-recession levels as an end goal.”

The national unemployment rate was 5.3 percent and 215,000 jobs were created in July.

Economic indicators for Black male workers over 20 years old followed the same pattern as Black workers in general. The Black male unemployment rate plunged to 8.8 percent from 9.5 percent the year before, but the participation rate also decreased from 67.6 percent in June to 67 percent in July.

On the other hand, Black female workers not only saw a slight increase in their month-over-month jobless rate as it edged up from 7.9 percent June to 8 percent in July, their labor force participation rate also increased from 62 percent to 62.1 percent, which could signal that Black women are entering the labor force and finding work.

In a statement about the jobs report, Rep. Robert C. “Bobby” Scott (D-Va.) said that the report showed that economy is still improving, growing and heading in the right direction.

“With the sixty-fifth consecutive month of private sector job growth, and the unemployment rate holding at 5.3 percent, our nation continues to recover from the 2008 economic recession,” said Scott. “Americans are finding more opportunities to get back to work, and put more money into their pockets.”

He also said, “While this is excellent news, our efforts to rebuild our economy are not complete until every person who wants a job is able to find a stable one.”

Connie Razza, the director of Strategic Research for the Center for Popular Democracy (CPD), a group focused on racial justice that describes itself as “pro-worker” and “pro-immigrant,” said that the latest job numbers show that flat wages and a sluggish recovery continue to threaten the livelihood of working families.

“Federal Reserve officials must look beyond the topline employment figures to determine whether the economy has truly recovered,” said Razza in a statement. “Even the state with the lowest rate of Black unemployment still has a rate equivalent to the state with the highest White unemployment rate.”

Razza continued: “With Black families still out of work and wage growth nowhere to be found, the economy is simply not ready for the Fed to slow it down.”

She warned the Federal Reserve against raising interest rates in 2015.

“While there are reports of the Fed staff suggesting one interest rate hike to 0.35 percent in the fourth quarter, compared to the [Federal Open Market Committee] forecasts of two hikes in the year achieving 0.65 percent, the Fed Up campaign remains convinced that the only humane, inclusive, and economically sound approach from the Fed would be to write off increasing interest rates for 2015, and instead to commit to wage targeting,” said Razza. “Resilient as our communities are, families are still hurting in this economy. The Federal Reserve can and should reduce inequalities in our economy.”

Source: The Dallas Weekly