The latest US Employment Report reminds us again of the “jobless recovery” phrase first used to refer to the recession of 1991. The report shows Private Non-Farm Payrolls in July grew by an anemic 71,000 jobs, falling short of consensus estimates. The unemployment rate remained unchanged at 9.5 percent, stable only because of the 181,000 people who left the workforce. Falling labor force participation rates indicate that a growing amount of people find the job market particularly unwelcoming. So we continue to play the waiting game—when, oh when, will the job market improve?
When Eva Moskowitz chaired the Education Committee of the New York City Council, she demanded to know why Mayor Michael Bloomberg and NYC Schools Chancellor Joel Klein didn’t do a better job improving public education. Rochester Schools Superintendent Jean-Claude Brizard, then a regional superintendent in the NYC schools, remembers his own time on the Moskowitz hot seat. A New York Magazine profile describes her as having “grilled and filleted” administrators in a series of 100 hearings in 2002.
Bloomberg called her bluff. “If you think we’re doing such a bad job, why don’t you give it a try?” So in 2006 Moskowitz founded the Success Charter Network with the first Harlem Success Academy. The network now runs four schools in Harlem with another three approved for the fall. Moskowitz plans to increase the network to forty schools.
The fiscal crisis club has a new member: the City of Harrisburg, Pennsylvania. Faced with staggering debt payments it simply can’t afford, the capital city is weighing its options. And none of them are particularly pleasant. Does the city file for bankruptcy? Does it make use of Pennsylvania’s Act 47 fiscal emergency program and avail itself of state oversight? Does it raise the property tax levy to an unimaginable level to resolve its structural budget gap?
The unfortunate reality is that Harrisburg isn’t alone. Hardly. Local governments across the country, many of which were struggling long before the economy collapsed, have witnessed their fiscal wherewithal stripped to the bones in the past year. Just Google “city fiscal emergency” and watch the lights dim as you click the search button. Los Angeles has proposed closing all non-public safety operations two days per week. The word “receivership” has been uttered in Detroit and Toledo. And layoffs and programmatic cuts are pending in cities from coast to coast.
A story surfaced last week (in a rival publication) that brought local development corporations (LDCs) back into public view. CGR studied LDCs in 2008, and we were never able to find a “smoking gun” suggesting that an LDC had been used for evil deeds.
But we still wonder. As we recounted in our report (see http://goo.gl/IOKu), there is nothing inherently wrong with LDCs and they can be used for good. But they are expressly designed to circumnavigate the cumbersome rules we’ve established for public bodies, e.g. open meeting requirements, public bidding, etc. The simple fact that we were never able to compile a list of active LDCs should be enough to light a warning beacon.
I’ve a dear friend who has been in poor health for many years. What, exactly, is wrong is unclear. Over the decades, diagnoses have come and gone, as have various treatments—and the value of some seems far-fetched. When a new treatment is particularly odd and I raise an eyebrow, she invariably informs me that the research supporting the intervention is quite sound. She’s a bright woman and is well educated—in fact, she’s a registered nurse. Yet I suspect that if I reviewed the “research,” I would find that the study linking, say, concentrated pomegranate tea to the cure of psoriasis relied on only five subjects, or was performed in a research laboratory no one has heard of before or since, or was conducted by the PGA (Pomegranate Growers Association—quit thinking about golf and read my column), or that the finding is based on 54 of 100 psoriasis sufferers having been cured (hardly persuasive), or that the result came from a massive statistical study correlating 250 conditions and 1,235 environmental/lifestyle factors (some of which will appear to be associated just by chance).
Or consider coffee. Ubiquitous in lists of lifestyle factors, it seems that coffee is found to be alternately bad for you, neutral, or good for you in each successive year. (The latest news being good, I choose to regard the matter as settled.)
School Board President Malik Evans and CGR are portrayed as being on different sides of this “mayoral control” discussion. Yet we agree that community opinion matters. The response of CGR was to conduct a poll with our partner, Metrix Matrix. At a forum televised by WXXI last Thursday, Mr. Evans suggested a referendum. But it amounts to the same thing—what the community thinks about this issue is important.
We’ve had two helpful forums on the topic. After the City Administration postponed several planned public meetings, the Rochester Business Journal’s forum was the first. School Board Commissioner Van White and Rochester Teachers Association President Adam Urbanski spoke against the proposal. In addition to remarks from Mayor Duffy, panelists Margaret Raymond from Stanford, Kenneth Wong from Brown, and Dennis Walcott, NYC’s Deputy Mayor for Education, spoke in support.
Reaction to CGR’s survey on mayoral control, conducted with partner Metrix Matrix Inc (MMI), has reinforced what the survey revealed: Our community cares deeply about this issue and the education of our city’s children. The only prior test of community sentiment was a relatively small telephone survey of parents. Yet parents-to-be, grandparents, resident property owners, renters, and resident business owners all have a stake in the effectiveness of the schools. And all can vote in Board of Education and mayoral elections.
The results of village elections on March 16 cast a ray of hope that perhaps New Yorkers are finally willing to take responsibility for deciding the future of local governments across the state. In five villages, from Port Henry in the east to Randolph in the southwest, voters went to the polls to decide whether or not to dissolve their village and merge with the town. Four villages – Seneca Falls, Perrysburg, East Randolph and Randolph – chose to dissolve, while voters in Port Henry elected to keep their village government. In addition, voters in the Village of Saugerties agreed to dissolve their police department and consolidate with the town police department, and Village of Medina voters chose to abolish their court and merge with the town courts.
My Chicago-area brother & I engage in a friendly competition over whose political culture is more entertaining. It is a contest I would like to lose, although my hopes have been dashed in recent months. Even with former governor Rod Blagojevich competing in the new season of The Apprentice (begins Sunday!), New York is winning handily. The best capsule summary goes to Baruch’s Doug Muzio who dubbed New York politics “Rod Serling meets Lewis Carroll.”
The financial problems of the nation and many large states—California, Illinois, New Jersey and certainly New York—present a problem that is challenging economically and hazardous politically. Since it’s impossible to separate the economics from the politics, it is truly a Gordian knot – rather than untying the knot, Alexander the Great sliced the Gordian knot in two with a single, bold stroke of his sword.
The Congressional Budget Office forecasts the federal deficit to decline from about $1.5 trillion in 2009 to $608 billion in 2014, then rise to nearly $800 billion in 2020. This is a hefty deficit, particularly when you consider that we had a surplus as recently as 2000. Then consider that the cumulative public debt, which currently stands at $7.5 trillion, is expected to nearly double by 2020 to $14 trillion.