Category Archives: taxes

Failing Schools? Don’t Blame the Teachers

16 Friday Sep 2011

Posted by in cities, geography, schools, taxes, transportation, urban planning

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Racially Integrated Classroom, Berlin Township, NJ, 1952

Education reformers rarely talk about the real issues. It’s not necessarily the schools themselves that are the problem — it’s the geography. We know the good schools are in the expensive neighborhoods. Of course, this is a barrier to low-income families to attend those schools. But it’s not necessarily the teachers, administrators, class sizes, or even the budget that makes those schools better. It’s the students. Well, sort of.

We know that concentrated poverty leads to bad outcomes in city neighborhoods. Well, it’s the same for schools. Family socioeconomic background influences a student’s academic achievement by providing more resources at home, but peer groups are often more influential to learning than socioeconomic background alone. Predictably enough, family income plays a role in whether a student applies for college, too. This isn’t to say that a student’s socioeconomic background is his or her destiny. There are programs that get disadvantaged students the education they need. But when you’re looking at a school with 1,000 students, you can make some pretty solid predictions of the average test score if you know the student body’s average family income. You can see this trend where the entire school district is impoverished of course, but you can see it within school districts, too. Schools with the same funding levels, same class sizes, and same policies, can have vastly different grades. And they’re absolutely tied to the student body’s socioeconomic background. So what’s the solution? Socioeconomic integration.

Not so long ago, school districts used to try to integrate students through busing policies. It was mostly because they were being forced to integrate racially, but because so many black families were (and are) living in poverty, these policies integrated students economically as well. Busing was rarely popular, especially in affluent schools, and it’s not used much anymore. Instead, schools now are trying to integrate through more of a market approach. School districts created magnet schools by concentrating resources, adding special programs (Mandarin Immersion, anyone?) in schools located in racially- or economically-isolated neighborhoods. Now the affluent white students bus themselves and the school district is more integrated than if attendance zones were based solely on neighborhood boundaries. There’s promise for charter schools to act this way, but they’re often more segregated than neighborhood schools.

The problem is, purposefully integrating schools is a giant shell game. While low-income students are stuck in the same neighborhoods, high-income families can avoid integration relatively easily. They want to send my kid to what school!? Not a chance. She’s going to (take your pick) private school, Catholic School, Montessori School. Or, we’re moving to the ‘burbs. And, the larger the city, the larger role geography plays. Low-income students often need to overcome great distances and travel time to attend integrated schools. And where district lines are drawn between rich and poor, you’re stuck.

Some people are looking for solutions in housing policy. Integrate the schools by integrating the neighborhoods. Gentrification can be a bad word, but I’m of the opinion that there’s more harm in the urban sprawl caused by school chasing than by high-income families moving into cities. Besides, there are many successful urban housing developments that make provisions for low-income families and create mixed-income communities. Limiting the amount of subsidized housing and thus lowering the poverty density of a given area can also influence who attends what school. It seems that the ultimate solution is to look beyond the free market. The widening gap between rich and poor is going to exacerbate this issue. And failing our students isn’t the best long-term plan.

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Expand the Federal Historic Preservation Tax Credit To Stimulate Jobs

07 Wednesday Sep 2011

Posted by in cities, decline, historic preservation, Jobs, taxes

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Michigan Central Station, Detroit, 2011

Thursday night, President Obama is giving his big jobs speech. I doubt we’ll get any new programs or policy changes with the current state of Congress, but I want to float the idea of expanding the federal historic preservation tax credit program as a job creator. I outlined in an earlier post how this type of program helps local economies. This is an idea I’ve been working on since 2009, when I tried to get North Carolina’s historic preservation commissions to work on their representatives and senators to consider this strategy. Senator Richard Burr, a Republican who happens to live in my city of Winston-Salem, was the only one that seemed interested, but nothing got off the ground.

Here’s some background on how the program works: As it stands now,  the Historic Rehabilitation Tax Credit gives a 20% federal tax credit for rehabilitation work on income-producing properties within National Register Historic Districts and landmark properties.  While this sounds like a limited group of buildings and neighborhoods, it is actually quite broad — there are more than 13,600 of these districts in the nation.  My state of North Carolina has 400 national register districts which include thousands of individual buildings.

The tax credit program could be changed in several ways that could stimulate the economy. Here’s a start:

1. Easily the most far-reaching change would be to expand the tax credit from exclusively income-producing properties to also include all residential properties. The vast majority of historic buildings are houses and this could encourage investment in older neighborhoods, particularly the rehabilitation of foreclosed properties. This idea is part of H.R. 2555, which is in committee, but here are some more ideas:

2. The amount of the tax credit could be raised. North Carolina has a state tax credit in addition to the federal program and is very successful. A 40% tax credit on income producing properties and 30% credit for non-income-producing properties, like residences, might inspire a great deal of investment in the rest of the country as it has in North Carolina.

3. The floor for the minimum spent on a project could be lowered. Right now, a person must spend at least $25,000 on a rehabilitation project in order to qualify for the tax credit. Lowering that amount would encourage some smaller renovations by people that can’t afford a wholesale renovation.

4. There is another element of the program that allows a 10% credit to rehabilitation of “older buildings,” currently defined as those built before 1936. If this definition was changed to allow buildings “fifty years old or older,” a number of properties would be included in the program that would not be otherwise.

5. Lastly, it’s difficult for non-profit organizations to take advantage of the tax credit program since they don’t technically have an income. There are a number of non-profit organizations involved in housing issues that would benefit by being included in this program.

Dear Missouri, Please Don’t Cut Your Historic Preservation Tax Credits

07 Wednesday Sep 2011

Posted by in cities, historic preservation, Jobs, taxes, urban planning

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Anheuser-Busch Brewery, Saint Louis

Missouri, I know you’ve been walloped by decades of deindustrialization and now the Great Recession. You’re being forced to make some terrible choices when it comes to your state budget. On the chopping block is your historic preservation tax credit. It may seem trite to cry for the potential loss of this program. I mean, shouldn’t you be spending taxpayer money on schools and roads and bridges? Yes, but hold on a second. You need to think this through. Where are your historic structures? In the middle of your cities! For the last 50 years, people have been abandoning your cities for the suburbs. In the meantime, you’ve had to build new roads, install new water and sewer lines, build new schools, and take care of this more spread-out infrastructure. Those buildings in the middle of your cities are worth keeping around. Worth investing in. They’re your history. They don’t make ’em like that anymore and it’s not going to be cheap to fix them. But it’s worth it. Here’s why:

1. Your state tax credit helps bring federal tax credits into Missouri. That’s 20% of the money spent rehabilitating National-Register-listed income-producing buildings and 10% for pre-1936 commercial buildings. That’s a lot of free money for your local economy. And, again, where are those old commercial buildings? Oh, right. In the middle of every city and town in your state. Besides that, your state tax credit can be used for residential buildings, too (federal tax credits are only for commercial buildings).

2. This is the only thing that’s going to put building contractors back to work. How many new subdivisions have you seen going up? Shiny new strip malls? Me, neither. That’s because nobody’s buying. You know what some people are doing, though? They’re picking up old historic houses and commercial buildings for a song and fixing them up. You want to keep that going?

3. Jobs in historic preservation are local. When your average developer rehabs a building (if he doesn’t tear it down to begin with), he uses contemporary products. Let’s take the windows, for example. Do you want the contractor to buy 25 vinyl windows for this historic building? Let’s not even take into consideration how bad that would look, since the windows won’t be the right size for the building and you can never paint them and they’ll only last 10 years. Would you rather have a man in China making those windows, or would you rather hire a craftsman from Missouri to rehang the windows, fix a few broken pains and reglaze them? I’m going with the guy that pays taxes in Missouri.

4. People are buying the neighborhood, not just the house. They want to be able to walk to a corner store, ride their bike, sit on a front porch. They want sidewalks and interesting architecture. They want places where people feel invested in the future. Places they can be proud of. Your historic neighborhoods are all those things. Developers don’t build neighborhoods like this anymore, so you’d better preserve the ones you have.

5. Your cities and town governments like these neighborhoods because they’re cheaper to serve. They don’t have cul de sacs; they have grid street patterns that are cheaper to plow in the winter, they don’t get traffic backups, and they’re close to existing fire houses, police precincts, and schools. Their water and sewer systems are under-capacity since neighborhood population is way off its peak. And since people have been investing in your downtowns for the last decade or so, hopefully these neighborhoods are closer to work for a lot of people, too.

6. Historic buildings are energy efficient. Well, they are when you take into account where they are. Historic buildings, like I said, are in the middle of your towns and cities. They require less driving for the people that live there because they’re closer to downtown and, well, each other. Transit systems serve them easier and people can walk to their destinations easier. And have you ever considered the energy it takes to tear down a building and construct a new one? Stuff them with insulation and fix the windows and they’re as good as anything you can build today.

7. These buildings are your icons. Did I mention these building are in the center of all your cities and towns? They’re what people think of when they talk about Missouri. They’re your past. They’re the reason people send postcards. They’re the reason people come to visit and decide they’ll stay. Don’t mess this up!