How Cities’ Funding Woes Are Driving Racial and Economic Injustice—And What We Can Do About It
The Nation - April 28, 2015, by Brad Lander & Karl Kumodzi - In August 2014, the municipality of Ferguson, Missouri...
The Nation - April 28, 2015, by Brad Lander & Karl Kumodzi - In August 2014, the municipality of Ferguson, Missouri erupted onto the national scene. In the wake of the killing of Michael Brown, we learned much about economic and political life in Ferguson and greater St. Louis County.
To many, it was no surprise to learn that, for years, African-American residents of municipalities throughout St. Louis County have been disproportionately and illegally stopped for minor offenses. Blacks are far more likely to be stopped, searched, ticketed, fined, and arrested. Many wind up jailed, leading to a cycle of lost jobs, drivers’ licenses, homes, or child custody. Some are beaten, terrorized, or—like Michael Brown—even killed.
It was more surprising to learn that in Ferguson, “Driving While Black” isn’t only about racial profiling: it’s also about municipal revenue. Fines and court fees have become the city’s second largest revenue source, and the over-criminalization of Black people has become a strategy for collecting taxes.
It is important to understand and address the revenue crisis facing U.S. municipalities. As cities have become unable to pay their bills, they often turn to regressive strategies that disproportionately harm people of color and low-income residents.
Ithaca, NY is like Ferguson. Up until January 2014, residents had to pay for installations and repairs of public sidewalks adjoining their properties—with one notable case in which 28 homeowners were forced to pay a combined $100,000 out of their personal pockets to the city for repairs. Detroit, MI is like Ferguson. After the city filed the largest municipal bankruptcy in US history, the city’s water department responded to pressures to lower their $90 million portion of the overall $20 billion debt by shutting off crucial water services to mostly Black low-income residents who owed over a mere $150 on their water bills. This April, Baltimore followed Detroit’s lead.
These cities are like Ferguson because of a common underlying problem: All across America, cities and towns are struggling to maintain enough revenue to provide crucial services to residents. The collateral damage of this revenue crisis—over-criminalization, utility shut-offs, the withdrawal of public services, and slashed budgets for schools—is dire.
Local Progress, a national network of progressive municipal elected officials, is working to address inequality from an often overlooked source: municipal budgets. In our new report, Progressive Policies for Raising Municipal Revenue, Local Progress lays out forward-thinking strategies and policy options that cities can pursue to restructure their revenue streams in a way that doesn’t fall disproportionately on the backs of their most vulnerable residents.
The roots of the municipal revenue crisis were decades in the making. Following the post-war desegregation of housing and education, and other civil rights victories of the 50’s and 60’s, racial animosity and the conservative backlash against taxation—referred to by historians as the tax revolt—helped to fuel the exodus of higher-income families from urban centers to suburban enclaves.
This “white flight” dramatically eroded the tax base of urban centers like Detroit, Cleveland, and St. Louis—and later of first-ring suburban municipalities like Ferguson.
The tax revolt also led directly to policies that dramatically reduced the ability of cities to collect enough revenue through property and other taxes. Most dramatic was the 1976 passage of Prop 13 in California, which contributed heavily to the erosion of California’s public education system and other public services.
In 2008, the Great Recession caused the municipal revenue crisis that had been brewing for decades to explode, spurring significant and rapid declines in general fund revenues for municipalities. In order to deal with the impacts of this dramatic shortfall, cities were forced to cut personnel, cancel capital projects (and their much-needed jobs), and slash funding for education, parks, libraries, sanitation, and more. These cuts hit low-income families the hardest. And they are especially harmful to Black families because African-Americans are 30 percent more likely to be employed by the public sector than other workers.
The strategies that many municipalities adopted to address the crisis hit low-income people of color the hardest. When property tax revenue declined in St. Louis County, fines-and-fees revenue increased in order to maintain revenue. Tickets are issued for everything from failure to cut one’s lawn to sleeping over at someone’s house without being on the occupancy certificate. In nearby Edmundson, the city averages $600 per person per year in court fines, and forecasts increasing revenue from these fines in their future budget proposals – essentially creating a hidden tax on the most vulnerable residents. Black residents throughout the region report feeling “as if their governments see them as little more than sources of revenue.”
Many towns have resorted to privatizing formerly public responsibilities such as trash collection, sewage, roads, parks, and introducing new fees to force residents to foot the bill directly. These fees and taxes are often extremely regressive, because as everyone is forced to pay a flat rate, poor people end up paying a higher percentage of their income. A recent study conducted by the Institute on Taxation and Economic Policy found that the nationwide average effective state and local tax rates are 10.9% for the poorest fifth of taxpayers and 5.4% for the wealthiest 1 percent. In fact, in the ten states with the most regressive tax structures, the poorest fifth pay as much as seven times the percentage of their income in taxes and fees as the wealthiest residents do.
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Addressing the municipal revenue crisis is, therefore, a central barrier to achieving racial and economic justice in our urban centers, and to rebuilding a more democratic, just, and livable America with genuinely shared prosperity.
Luckily, there are creative and progressive strategies that municipalities can adopt to generate more revenue in a progressive way, such as:
● Expanding the progressivity of existing local income taxes by creating more tax brackets with greater differences between brackets, and doing the same for property taxes in order to generate more revenue from commercial and high-end development.
● Eliminating corporate tax breaks at the city level, particularly Tax Increment Financing and business improvement districts that come with tax breaks
● Restructuring fines so that residents pay different rates based on income. A $200 traffic ticket has no deterrent effect for a millionaire, but can be devastating for a low wage worker; a more rational fine system, like the one adopted in Finland, would be more fair and generate more revenue.
● Mandating that major tax-exempt institutions like hospitals and universities make genuine and fair payments in lieu of taxes (PILOTs) to help cover the costs of crucial city services that they use.
● Converting city services into municipality-owned utilities when possible, charging utility fees to all users, and applying conservation pricing so lower-income households pay a lower rate while bulk users—such as commercial and industry—pay higher rates
● Forming statewide coalitions of municipal elected officials, grassroots organizations, school boards, and other affected parties to change preemption and revenue policies at the state level.
These policy innovations and many more are detailed in our report.
Cities are America’s bedrock and its future: both for our country and for the progressive movement. Cities are home to 67% of the population, account for 75% of our GDP, and house our best public institutions and infrastructure.
The policy recommendations laid out by Local Progress in our new report can help municipalities develop progressive revenue solutions—so they can pay for public education, health, and housing programs that help families thrive, invest in the infrastructure of public transportation, climate resilience, parks that sustainable cities need, and stimulate inclusive economic growth that creates good jobs.
Through progressive revenue strategies, cities can turn the Ferguson-like cycle of disinvestment and inequality into a cycle of reinvestment and opportunity—and help make sure that our cities can become the models for our vision of a more progressive and prosperous America.
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Why a group of Commerce City teachers spent a day asking parents how they could do their jobs better
Why a group of Commerce City teachers spent a day asking parents how they could do their jobs better
COMMERCE CITY — On a recent Saturday morning, about a dozen teachers from the Adams 14 School District walked through a...
COMMERCE CITY — On a recent Saturday morning, about a dozen teachers from the Adams 14 School District walked through a trailer park asking parents how they could do their jobs better.
Christina Zavala, a parent of three students, had a list. At the top: stop the rampant bullying and pay more attention to her son, who has a learning disability.
“In my experience,” she said, “it doesn’t really feel like the teachers care.”
The cadre of teachers hope what they heard — good or bad — can help reshape their schools to better meet the needs of the mostly poor and Latino families that call Commerce City home. The teachers are advocating for a “community school model,” which in part calls for more partnerships with nonprofit groups to help curb the effects of poverty on the classroom.
“The only way we can make a difference with the families in our district is if we get involved,” said Barb McDowell, the Adams 14 teachers union president. “There are a lot of disenfranchised people. We’re not talking to the community.”
Relations between the Commerce City community and the 7,000-student school district have long been strained. Voters consistently have rejected pleas to increase local taxes to repair or replace aging schools and support educational programs. And in 2014, the U.S. Department of Education found the district had discriminated against Hispanic students and teachers.
The district’s response included more culturally responsive training for teachers and the creation of a committee of students to regularly talk about race issues.
Facing state sanctions for chronic poor performance on state English and math tests, the Adams 14 school district, just north of Denver, is overhauling many of its schools. The teachers union believes this provides an opening to put into practice some of the elements of the community school model. Schools are still finalizing their innovation plans, which are expected to be made public later this fall.
Teachers across Colorado are engaged in similar work. It’s all part of a statewide campaign organized by the Colorado Education Association, the state’s largest teachers union, called “The Schools Our Kids Deserve.”
The community school model can be traced back to the 1880s. Modern-day community schools have popped up in Chicago, Baltimore and Lincoln, Neb. Perhaps the most famous community school model is the Harlem Children’s Zone in New York City.
In Colorado, the Edgewater Collective in Jefferson County and Blocks of Hope in neighboring Westminster Public Schools are two efforts to create something like a community school.
While supporters of the community schools model have long said that no two community schools should look the same because the needs of communities vary, there is a growing effort to identify common themes that apply everywhere, said Reuben Jacobson, deputy director for the Coalition of Community Schools.
The Colorado teachers union, working with the Alliance to Reclaim our Schools and the Center For Popular Democracy, has created its own list which includes strong and proven curriculum, community support services, and positive discipline practices.
Community engagement, like the work the teachers in Adams 14 are doing, is also a must.
Trish Ramsey, a teacher at Adams City Middle School, put it simply: “This is the first step to rebuild trust.”
By Nicholas Garcia
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Avoiding 'Regressive Mistake,' Fed Holds Off on Rate Hike — For Now
Update 3 PM EDT: In a decision that aligns with progressive demands, the Federal Reserve ...
Update 3 PM EDT:
In a decision that aligns with progressive demands, the Federal Reserve announced on Thursday that it would keep interest rates near zero in light of "recent global economic and financial developments" and in order to "support continued progress toward maximum employment and price stability."
Presidential candidate Bernie Sanders issued the following statement today after the Federal Reserve announced that it would hold off on raising interest rates:
“It is good news that the Federal Reserve did not raise interest rates today. At a time when real unemployment is over 10 percent, we need to do everything possible to create millions of good-paying jobs and raise the wages of the American people. It is now time for the Fed to act with the same sense of urgency to rebuild the disappearing middle class as it did to bail out Wall Street banks seven years ago.”
The New York Times reports that the Fed’s decision, "widely expected by investors, showed that officials still lacked confidence in the strength of the domestic economy even as the central bank has entered its eighth year of overwhelming efforts to stimulate growth."
Progressives cheered the news, with Josh Bivens of the Economic Policy Institute saying, "Today’s decision by the Federal Reserve to keep short-term rates unchanged is welcome. [...] We hope they continue their pragmatic, data-based approach and allow unemployment to keep moving lower, and only tighten after there is a significant and durable increase in inflation."
He continued: "Tightening before the economy has reached genuine full-employment is not just a mistake, it’s a regressive mistake that would hurt the most vulnerable workers—low-wage earners and workers from communities of color—the most."
However, Reuters reports that "the central bank maintained its bias toward a rate hike sometime this year, while lowering its long-term outlook for the economy."
Which means that pro-worker organizations, which have largely opposed a rate increase that they say would slow the economy and stifle wage growth, will have to keep up the fight.
"We applaud Chair Yellen and the Federal Reserve for resisting the pressure being put on them to intentionally slow down the economy," said Ady Barkan, campaign director for the Fed Up coalition, which rallied outside the Federal Reserve on Thursday.
"Weak wage growth proves that the labor market is still very far from full employment," Barkan continued. "And with inflation still below the Fed’s already low target, there is simply no reason to raise interest rates anytime soon. Across America, working families know that the economy still has not recovered. We hope that the Fed continues to look at the data and refrain from any rate hikes until we reach genuine full employment for all, particularly for the Black and Latino communities who are being left behind in this so-called recovery."
Earlier...
Progressives are cautioning the U.S. Federal Reserve against slowing the economy by raising interest rates "prematurely"—a decision the Fed will announce Thursday.
The U.S. central bank will issue its highly anticipated short-term interest rate decision following a two-day policy meeting, with a 2 pm news conference led by Fed Chair Janet Yellen.
As CBS Moneywatch notes, "[t]he decision affects everything from the returns people get on their bank deposits to how much consumers and employers pay for credit cards, mortgages, small business loans, and student debt." That's because a higher rate makes it more expensive for individuals and businesses to borrow, with rising bank lending rates shrinking the nation's money supply and pushing up rates for mortgages, credit cards, and other loans.
Just before the announcement, the advocates, economists, and workers of the Fed Up coalition will be joined by Rep. John Conyers (D-Mich.) at a rally outside the Fed, calling on the central bank to keep interest rates low to allow for more jobs and higher wages.
"The point of raising rates is to rein in an overheating economy that is threatening to push inflation outside the Fed’s comfort zone," explained Josh Bivens of the Economic Policy Institute in the Wall Street Journal on Wednesday. "But inflation has been running below the Fed’s target for years—and its recent moves have been down, not up."
Furthermore, wrote economist Joseph Stiglitz at the Guardian earlier this month: "If the Fed focuses excessively on inflation, it worsens inequality, which in turn worsens overall economic performance. Wages falter during recessions; if the Fed then raises interest rates every time there is a sign of wage growth, workers’ share will be ratcheted down—never recovering what was lost in the downturn."
Progressive activists opposed to an interest rate hike overwhelmed the Fed's public comment system on Monday in a last-minute effort to sway the central bank. Raising the rate, they said, would be catastrophic for working families, particularly in communities of color that are still struggling. The Fed Up campaign, which includes groups like the Center for Popular Democracy, Economic Policy Institute, and CREDO Action, say the central bank "privileges the voices and needs of corporate elites rather than those of America's working families."
"A higher interest rate means that fewer jobs will be created, and that the wages of workers at the bottom will remain too low to live on," wrote Rod Adams, a member of Neighborhoods Organizing for Change in Minneapolis, in an op-ed published Wednesdayat Common Dreams. "That’s because when the Fed raises rates, they are deliberately trying to slow down the economy. They’re saying that there are too many jobs and wages are too high. They’re saying that the economy is exactly where it should be, that people like me are exactly where we should be."
However, at this point, "many observers believe the Fed will not raise rates this week," analyst Richard Eskow wrote on Wednesday.
"The Fed is really the central bank of the world. If the Fed raise rates a little bit, it will have an impact all over the world, particularly in emerging markets," billionaire private equity professional David Rubenstein told CNBC's "Squawk Box" on Thursday.
"I think the Fed is sensitive to that," Rubenstein said, "and I think therefore the Fed is likely to wait for another month or two to get additional data and probably telegraph a little bit better than it has now that it's about ready to do it at a particular time."
Meanwhile, global markets are fluctuating wildly in anticipation of Yellen's announcement and subsequent news conference.
But as Eskow noted, Thursday's real surprise "is that there’s any question at all what [the Fed] will do. That suggests that our economic debate is not yet grounded in economic reality, at least as most Americans experience it."
While the Guardian is providing live updates on the Fed's decision, others are making comment under hashtags that reflect the unbalanced economic recovery:
Source: CommonDreams
A New Divestment Movement Against Trump Gears Up
New York City has pledged to divest its pension holdings from companies involved in the private prison industry. But...
New York City has pledged to divest its pension holdings from companies involved in the private prison industry. But the ultimate goal is to help build a mass movement against the White House.
Read the full article here.
The Resistance Now: Star Wars, 'aliens' and Leonardo DiCaprio join the fight
The Resistance Now: Star Wars, 'aliens' and Leonardo DiCaprio join the fight
It seems the Earth has a sense of irony. “Record-breaking heat” is possible at the People’s Climate March in DC on...
It seems the Earth has a sense of irony. “Record-breaking heat” is possible at the People’s Climate March in DC on Saturday, where thousands of people are planning to protest against the president’s climate change policies on his 100th day in office. Trump’s initiatives include, but are not limited to, a 31% cut in the Environmental Protection Agency and potentially leaving the Paris climate agreement.
Among those suffering in the heat will be former vice-president Al Gore and, apparently, Leonardo DiCaprio. It is likely to take a titanic effort to change the other Wolf of Wall Street’s mind, however, as Trump has repeatedly said that the inception of climate change had nothing to do with mankind. Only 1,361 more days of this to go!
Read full article here.
CPD's Josie Duffy Debunks Scaffold Law Myths on Capital Tonight
Capital Tonight's Liz Benjamin interviews Center for Popular Democracy Policy Advocate Josie Duffy on the Scaffold Law...
Capital Tonight's Liz Benjamin interviews Center for Popular Democracy Policy Advocate Josie Duffy on the Scaffold Law. For more information on how the construction industry safety standards elude workers of color, read CPD's report "Fatal Inequality."
150 Restaurants Are Donating Proceeds to Puerto Rico for World Central Kitchen’s 'World Food Day'
150 Restaurants Are Donating Proceeds to Puerto Rico for World Central Kitchen’s 'World Food Day'
World Central Kitchen will host its fourth annual World Food Day on October 13, and so far 150 restaurants nationwide...
World Central Kitchen will host its fourth annual World Food Day on October 13, and so far 150 restaurants nationwide have agreed to donate 10 percent of their proceeds to WCK’s Puerto Rico aid and to a new culinary school in Haiti.
Read the full article here.
There's a suspicious burst of taxi rides to and from Wall Street banks and the NY Fed around the time of key Fed meetings
There's a suspicious burst of taxi rides to and from Wall Street banks and the NY Fed around the time of key Fed meetings
“For the Fed Up coalition, a group of community organizations led by the Center for Popular Democracy in Washington,...
“For the Fed Up coalition, a group of community organizations led by the Center for Popular Democracy in Washington, the first step in addressing such egregious conflicts is a change in leadership. The New York Fed's outgoing president is William Dudley, a former Goldman Sachs partner. "The New York Federal Reserve must select a new President who will put the interests of the public before Wall Street," Fed Up said in a recent report. "This would be one of the most immediate and direct steps to mitigate conflict of interest risks and promote a culture of transparency and accountability at the New York Fed."
Read the full article here.
Pilot Program to Represent Detainees Facing Deportation
New York Law Journal – September 30, 2013, by Mark Hamblett and Jeff Storey - Aiming to foster the rights of...
New York Law Journal – September 30, 2013, by Mark Hamblett and Jeff Storey -
Aiming to foster the rights of immigrants and to keep their families together, two legal services organizations, the Bronx Defenders and Brooklyn Defender Services, have been picked for a unique pilot project to represent indigent detainees facing deportation.
The two organizations will form the New York Immigrant Defenders, which will take on 166 cases in the next year at the Varick Street Immigration Court.
The program will be funded by a $500,000 grant made available by the New York City Council in June.
Robin Steinberg, executive director of the Bronx Defenders, said that her organization created an in-house immigration practice more than a decade ago when it realized that nearly one-third of its clients were facing adverse immigration consequences from even minor brushes with the law.
“The Bronx Defenders joining forces with the Brooklyn Defender Services to create NYID is a natural and necessary step in ensuring that all residents of New York City—no matter where they were born—have their day in court with lawyers who will fight for their right to stay here, with their families and in the communities they now call home,” she said in a statement.
Lisa Schreibersdorf, executive director of Brooklyn Legal Services, agreed that working with immigrants was “very much in line with our mission.”
Schreibersdorf said that she had told her daughter after the group’s selection Thursday that the new program was part of the most groundbreaking public defense development of her generation—the extension of the right to counsel to immigrants.
“This is a groundbreaking program. There is no program of this sort anywhere else in the country. It’s a program that aligns American values with the reality on the ground when it comes to immigrants and due progress,” said Angela Fernandez, executive director of the Northern Manhattan Coalition for Immigrant Rights, one of the groups that advocated for creation of the program.
According to Brittny Saunders, senior staff attorney for the Center for Popular Democracy, another leading advocate for the effort, potential clients will be screened only for economic need, with anyone making under 200 percent of the poverty limit making the cut.
The poverty limit currently is $11,400 for a single person and $23,550 for a family of four.
Other factors, such as the strength of immigrant cases, will not be considered.
Oren Root of the Vera Institute of Justice, a nonprofit and nonpartisan center for justice issues, said the program will stress the importance of keeping families together. In many cases, the detainee has lived in the country for years, is the family’s principal wage earner, serves as the caretaker for family members and has children born and raised in the United States.
The one-year pilot project will be administered by Vera, which will coordinate the delivery of legal services and analyze the data that emerges from the effort.
Root said that Vera is “thrilled” to be working with “such high-caliber, innovative organizations as Brooklyn Defender Services and the Bronx Defenders.”
Providing support for the effort to represent immigrant families has been the Kathryn O. Greenberg Immigration Justice Center at the Benjamin N. Cardozo School of Law.
Most immigrants cannot afford representation, and attorneys and bar groups have become increasingly concerned about the dire consequences they face
Schreibersdorf said studies show that detainees with a lawyer are “more likely to identify valid immigration remedies.”
She cited one case of a 17-year-old on a minor offense handled by her agency. His attorney dug into the defendant’s family background and discovered that his parents had been naturalized, and thus he was a citizen himself.
“Without a lawyer, that kid would have been deported,” she said.
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S&P 500, Nasdaq end at records after Fed speech
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the...
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the speech.
Read the full article here.
6 days ago
6 days ago