A Perspective on the Affordable Care Act

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent Gardner

Part 1: Health Insurance Coverage for the Poor

The Affordable Care Act’s initial enrollment period is over and Health & Human Services Secretary Kathleen Sibelius has resigned, having earned a jacket full of Purple Hearts from countless Congressional hearings. What have we wrought?

Make no mistake—this will revolutionize health care delivery in the United States. As the Arab Spring suggests, revolutions can be good or bad. Or both, as in this case.

In the first of a two-part column on the Patient Protection and Affordable Care Act (ACA), let’s focus on how coverage for the poor has changed. Read more »

That’s why we call it “work”

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerTwo weeks ago, the Congressional Budget Office stirred up a hornet’s nest with its estimate of the impact of the Affordable Care Act (ACA) on jobs. Here’s the key sentence: “CBO estimates that the ACA will reduce the total number of hours worked, on net, by about 1.5 percent to 2.0 percent during the period from 2017 to 2024, almost entirely because workers will choose to supply less labor—given the new taxes and other incentives they will face and the financial benefits some will receive.” The annual reduction is estimated to be a headline-grabbing 2.5 million jobs.  Download the report here.

Critics of Obamacare greeted the news with barely disguised glee: “The CBO says that Obamacare is a job killer,” they crowed. That’s not what it said: “The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor.” The jobs aren’t eliminated—workers choose not to fill them. Read more »

Upstate NY vs. Toronto: A Lesson in Immigration & Tax Policy

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerRemember the Fast Ferry connecting Rochester and Toronto? Although the idea failed in execution, connecting with the vibrant “Golden Horseshoe” economy made sense then—and still does today. When we compare Rochester to, say, Charlotte or Atlanta or Austin, we can always blame the snow. But that doesn’t work when we look across the lake. What’s their “secret sauce?”

Job Growth 1996 - 2011We may be separated only by a bit of water and a line on a map, but it is clear that Canada’s Golden Horseshoe Region, powered by Toronto, has prospered while Upstate New York (defined here as Rochester, Buffalo and Syracuse) has just held its own. Although these neighboring regions share much—that climate, access to markets, and transportation infrastructure—since 1996 the Golden Horseshoe added more than a third to its employment base and a quarter to its population. Read more »

What Killed Detroit?

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent Gardner“There but for the grace of God go I.” Big city mayors from across the country consider the plight of Detroit’s Mayor Dave Bing and wonder if they’ll be next. What killed Detroit? There must be someone or something we can blame for the staggering decline of a great city.

Read more »

In Defense of Complex Regulation of Energy Extraction

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerAfter my last column on hydrofracking, I was asked to participate in a forum at the University of Rochester sponsored by Phi Beta Kappa. In my intro, I quipped that I was the guy invited to defend the despoiling of the earth and destruction of the climate. Nobody laughed.

This issue has stirred a level of religious fervor that is reminiscent of both sides of the abortion debate. Yet common to most consequential policy questions, the hydrofracking issue (like Oscar Wilde’s truth) is neither pure nor simple. I understand the appeal of clarity and simplicity—we would prefer that fracking be either boon or bane. Complexity makes our heads hurt.

Let me make the case for complexity. Read more »

National Technical Institute for Deaf Boosts Rochester Economy & Visibility

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerHigher education is a major contributor to our region’s prosperity. Home to 18 colleges and universities, total employment in the sector rose steadily during the recession and totaled nearly 35,000 last year, up 16% since 2007.

Yet Rochester higher ed stands out for more than just job and payroll totals. The community is home to a number of distinctive institutions that set the region apart. One of these, the National Technical Institute for the Deaf (NTID) at the Rochester Institute for Technology, may be better recognized outside Rochester than inside. NTID is the world’s first and largest technological college for students who are deaf or hard of hearing.  Established by Congress in 1965, the first students entered in 1968.

A recent CGR study of NTID concluded that the Institute is responsible for more than 1,000 jobs, both direct and spillover, and over $50 million in labor income. Moreover, due to its national scope and reputation, it captured $84 million in outside funding (75% federal) over the 2006-11 period. NTID has done its part to strengthen higher ed in Rochester, boosting enrollment by 24% from 2007. Read more »

Monroe Community College Tackles Skills Gap

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerWorkers cast adrift by technology. Last week we learned that the economy added 236,000 jobs in February. Better than a sharp stick in the eye, to be sure. But it still isn’t enough. Average job growth over the past six months has been about 190,000. At this rate, it will take the economy 5 years to absorb the increase in the ranks of the unemployed since 2007, plus new workers entering the labor force. And don’t forget the 8 million working part time who would prefer full time employment, 3.6 million more than in 2007.

How do we square persistently tepid job growth with the other big economic news of the week, that the Dow Jones Industrial Average hit new highs? Why can corporate profits be strong while employment growth remains weak? This brief essay will address only one of the many reasons: This recovery has simply left many workers behind. Read more »

The Marva Collins Quest: Replicating Successful High Poverty Schools

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerIn 1975, Marva Collins founded Westside Preparatory School in Chicago’s Garfield Park neighborhood, a place of persistent and concentrated poverty. Renamed Marva Collins Prep, the school targeted disadvantaged students, many of whom had been classified by the public school as learning disabled. She was able to spur them to achieve at levels comparable to students in high income neighborhoods. Collins’ success was profiled by CBS’s 60 Minutes in 1979 and became the subject of a movie in 1981 starring Cicely Tyson and Morgan Freeman.

This example (and others like it) proved that concentrated poverty, while predictive of low academic achievement, does not assure it. The Holy Grail of education reform has been the “pursuit of Marva Collins.” For many years, it appeared that you couldn’t replicate Marva Collins’ success without Marva Collins—i.e. someone who combined unusual gifts of charisma, dedication and energy with exceptional teaching and leadership ability. Read more »

NYS Waits a Decision on Fracking

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerOn Jan. 3, the Gannett News Service Albany Bureau reported on a draft environmental impact statement from 2012 on high-volume hydrofracking (http://goo.gl/F2bjy). The state Department of Environmental Conservation assessment concludes that “by implementing the proposed mitigation measures identified and required in this (report), the department expects that human chemical exposures during normal HVHF operations will be prevented or reduced below levels of significant health concern. Thus adverse impacts on human health are not expected from routine HVHF operations. When spills or accidents occur, the department has identified numerous additional mitigation measures … so that significant exposures to people and resources on which they rely are unlikely.”

DEC officials told Gannett that these findings were preliminary and did not constitute “final DEC policy.” Fair enough-this is a draft.

Yet these findings are consistent with the text of a briefing paper on high-volume hydrofracking from the Environmental Defense Fund, which concludes: “In short, natural gas could be a win-win benefiting both the economy and the environment-if we do it the right way. The right way means putting tough rules and mandatory environmental safeguards in place that protect communities and reduce methane pollution.” See http://goo.gl/NbiUP. Read more »

We’re on a Long Trek to Fix Urban Schools

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent Gardner

The 1983 publication of A Nation at Risk underscored the gap in educational outcomes between the nation’s disadvantaged and the rest of society, while challenging the nation’s confidence in the entire K-12 educational system by unfavorable international comparisons. We have made little progress in closing either the gap between America’s rich and poor, or the gap between our students and those of other nations.

Since 1983, we’ve been looking for a quick fix solution, the one Big Thing that would close these gaps. This is ultimately fruitless. Rochester City School District Superintendent Bolgen Vargas seems to have taken this lesson to heart. As noted in a recent City Newspaper interview, he studiously avoids the temptation to predict speedy, miraculous success by imposing bold new policies bundled up with a clever name. Read more »