Confronting the homeless: after Denver, whither Portland?

It hasn’t gotten much media coverage in Oregon, but on May 7, 2019, Denver voters defeated a ballot initiative that would have allowed homeless people to camp in outdoor public spaces like parks, sidewalks and vehicles.

Fed up voters didn’t just soundly reject the initiative; they pummeled it 83% to 17%.

Portland Mayor Wheeler says he’s going to run again. If he doesn’t resolve Portland’s homelessness crisis, he’s likely to face the same level of public rancor.

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Portland, OR campers.

In 2011, only 1% of those surveyed an annual poll of Portland-area voters by DHM Research that was commissioned by the Portland Business Alliance said homelessness was the biggest issue facing Portland. By 2017, the share of those polled identifying homelessness as Portland’s biggest problem had risen to 24%.

In a Jan. 2019 telephone survey of 510 likely voters in the Portland Metro Region, including an oversample of City of Portland voters, homelessness remained the top-of-mind issue, jumping to 33% overall and 47% among voters in the City of Portland alone. Nearly one in three who said the Portland City Council was ineffective pointed directly to its failure to address homelessness as the reason.

At the same time, half the people polled said they felt the Portland area was headed in the wrong direction. A majority of voters said the region’s quality of life was declining— continuing a trend from a December 2017 study. Only 7% said the quality of life in the Portland Metro Region was getting better.

“just last weekend, a homeless couple set up a tent next to my house in broad daylight…, “ wrote a commenter on OregonLive.” I find more and more used condoms and needles by my house (which I have to dispose of), while my neighborhood experiences daily burglaries and car thefts, all of which the city does nothing about. These problems have exploded just in the past few years. I pay thousands of dollars in property and other taxes per year and get nothing in return. When is enough, enough?”

“Wheeler keeps putting more and more money in to coddling them and tells police to not help residents when harassed or attacked by transients,” wrote another commenter. “Transients have more rights in this city than tax paying voting residents and thus more and more keep coming. We need a tough policy and kick them out. Portland is slowly becoming the shelter for America’s homeless by choice, mentally ill and young lazy transients.”

Even though Portland still has a reputation as an ultra-left city, it’s clear Portlanders’ tolerance and patience are slipping.

That’s clearly what happened in Denver. another liberal (some would say more of a live-and-let-live libertarian) city,

Responding to an explosion of complaints by downtown businesses, Denver began enforcing an urban camping ban to keep people from spending the night on city sidewalks, in parks and other public spaces. In 2016, the city began sweeps to enforce the ban, picking up tents, sleeping bags and other detritus.

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Police sweep homeless camps in downtown Denver, CO in 2016

Still, surveys in 2018 showed the homeless population increasing, with more people camping instead of staying in shelters.

“Something needs to happen. It’s gotten to the point where it is hard to live down there,” River North (RiNo) resident Josh Rosenberg, told Denver’s Channel 7 in late 2018. “It’s not just one or two homeless guys sleeping on the street; there’s been times where they will set up camp and have tarps and suitcases and shopping carts and kind of make a little village out of it and they’ll be there until somebody calls the police.”

In late 2017, homeless advocates submitted enough signatures to get Initiative 300, referred to as the “Right to survive initiative, on the ballot. The initiative wouldhave effectively overturned Denver’s urban camping ban.

“Denver faces a choice: to do nothing, and let Denverites experiencing homelessness struggle to survive, to sleep at night, and to make it to their jobs, or to take action, and take the first step toward empathy, dignity and realistic solutions,” the Yes on 300 supporters said.

But opposition quickly became obvious. “The election was a referendum on quality of life,” said one online Denver Post commenter. “If you just moved here you don’t know, but those of us that have lived in Denver for 30 years have drastically seen quality of life decrease…”

An increasing number of Portlanders feel that way as well. If he’s not careful, Ted Wheeler could get pummeled, too.

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You can find more about the survey and results at the Portland Business Alliance:

https://portlandalliance.com/assets/pdfs/2019-PBA-Jobs-Economy-DHMReport-January.pdf

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The CEO-worker pay ratio: worse than useless

The annual release of data required by the SEC on the pay ratios of CEOs and the median worker at their company is out.

clownpay

The data show that Nike CEO Mark Parker makes a heck of a lot more than a typical Nike employee. The estimated ratio of Parker’s annual total compensation ($9,467,460) to the median annual total compensation of all Nike employees ($24,955) was 379 to 1 in fiscal year 2018.

Comcast CEO Brian Roberts did even better in 2018. His compensation package ($35.003,000)compared with Comcast’s median employee’s compensation ($82,205) resulted in a CEO pay ratio of 426 to 1.

As expected, the release of the data is spurring all sorts of overheated grievances.

“Look at all the overpaid, greedy CEOs.” “The facts are in. Inequality is destroying America. This proves it.”

There’s no question that CEO compensation has been escalating.

ceotoworkerratioi

The problem is the comparative CEO-worker data generated in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act and implemented by the SEC is seriously flawed, misleading and unreliable and its collection a colossal waste of businesses’ time and money.

Passed in 2010 during the Obama administration, the pay ratio requirement took effect in 2017. Ostensibly, the purpose was to ensure that the devastating 2008 financial crisis wouldn’t be repeated, to increase the transparency of executive compensation and to provide investors with another piece of information to consider when determining whether the compensation of their CEO is appropriate.

“This simple benchmark will help investors monitor both how a company treats its average workers and whether its executive pay is reasonable,” said Sen. Robert Menendez (D-NJ), who introduced the pay ratio provision in the Dodd-Frank Act.

But the numbers really say nothing useful about how a company treats its workers or whether the CEO’s pay is reasonable.

That’s partly because the real motive of the pay ratio advocates was to give the left a tool to propel its inequality agenda. The proponents wanted to promote envy and class warfare, to argue that the once-great America as a land of opportunity is vanishing and that more aggressive government intervention guided by liberal principles is necessary.

As SEC Commissioner Michael S. Piwowar said in a dissenting statement on the pay ratio rule when it was approved, “Today’s rulemaking implements a provision of the highly partisan Dodd-Frank Act that pandered to politically-connected special interest groups and, independent of the Act, could not stand on its own merits. “

“The bottom line is that this is one of the sillier and more pointless disclosures that I have ever seen,” David Yermack, a professor of finance at NYU’s Stern School of Business, told The Atlantic.

Nike, for example, spelled out all sorts of qualifiers in disclosing its pay ratio figures:

nikeparkerpayratiop

“The SEC rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their compensation practices. As such, the pay ratio reported by other companies may not be comparable to the pay ratio reported above, as other companies may have different employment and compensation practices and may utilize different methodologies, exclusions, estimates, and assumptions in calculating their own pay ratios.”

The ridiculousness of the whole exercise is illustrated by some of the sharp swings in some companies’ ratios from 2017 to 2018, as the Wall Street Journal recently reported.

Shipbuilder Huntington Ingalls  Industries Inc. and potash producer Mosaic Co.reported, for example, that the typical worker got half as much in 2018 as the year before. At Honeywell International Inc.,the data showed the typical worker’s compensation was 33 percent higher in 2018 than 2017.

The fact is, every company calculates the pay ratio differently, partly because the SEC rule gives companies wide leeway in identifying median workers.

Some year-to-year ratio fluctuations reflect acquisitions or spinoffs that revamp a company’s workforce. Others are attributable to whether the median employee has a traditional pension plan, or new ways of identifying that middle employee.

Companies don’t have to account for independent contractors if they don’t set their pay, for example, so, a company with a highly paid CEO and loads of low-paid independent contractors can massage its numbers to look better.

Companies can also manipulate the numbers by identifying their median worker in a variety of ways.

“To identify the median employee, the rule would allow companies to select a methodology based on their own facts and circumstances,” the SEC rule says. “A company could use its total employee population or a statistical sampling of that population and/or other reasonable methods. A company could apply a cost-of-living adjustment to the compensation measure used to identify the median employee.”

The pay ratio numbers also can fluctuate when there are different types of businesses. For example, at Goldman Sachs, an investment banking, securities and investment management firm where most employees are highly educated and highly paid professionals, the pay ratio figure will obviously be lower than at McDonalds where most employees are less educated and earn modest wages.

Businesses that employ a lot of part-time or seasonal workers, or that employ a lot of foreign workers in countries with comparatively lower wages, will also have high ratios.

Then there are the compliance costs borne by companies collecting and submitting the data. “The SEC total initial cost of compliance for all 3,571 registrants affected by the Section 953(b) requirements is expected to be approximately $1,315 million, “ the SEC  said in the Final Rule in 2015.

To top it all off, the disclosures required by the SEC rule do little to help investors make decisions on trades. Not only is the pay ratio calculation based on wildly different data used by different companies, but CEO-worker pay ratios are not especially reliable indicators of how a company will perform.

It’s not that reporters and editorial writers don’t know the pay ratio numbers are pretty much worthless and politically motivated. It’s just that a story that gives them a chance to rail about inequality is too much to miss.

As Stanford University Professor Joseph Grundfest said when the SEC rule was finalized in 2015, “Ultimately, the ratios that companies will disclose in their SEC filings will not be grist for meaningful debate so much as fodder for shocking headlines. Individually, factoids about executive compensation can be truly, deeply bananas, and some media outlets capitalize on that.”

Portland’s pay ratio surcharge – more lunacy

Occupy Wall Street protesters demonstrate in Portland

Protesters demonstrate in Portland.

Given the unreliability of the pay ratio numbers, Portland’s pay ratio tax is a farce, too, just another tool to raise revenue.

In December 2016, the Portland City Council voted to impose a surtax on CEO compensation that would be added to the city’s business tax on publicly traded companies whose chief executives earn more than 100 times the median pay of their employees.

The surcharge was set at an additional 10 percent in taxes if their CEO’s compensation is greater than 100 times the median pay of all their employees and 25 percent if the pay ratio is greater than 250 times the median.

The city initially figured the surtax would generate about $2.5 to $3.5 million per year.

Only Commissioner Dan Saltzman showed wisdom in voting against the proposal by then-Commissioner Steve Novick.

As noted earlier, Portland’s tax is based on unreliable data and will fail miserably in meeting Novick’s hope that it “would prod corporate America back to equitable pay scales.” The tax is surely irritating to businesses, but it’s not likely to change their compensation practices.

Moreover, even if some shamed companies reduce their CEO’s pay and spread around the cut, it won’t mean much to other employees.

For example, The Kroger, Co which owns Fred Meyer, reported its CEO W. Rodney McMullen’s pay was $11,534,860in fiscal year 2018, which Kroger said was 547 times its median worker’s pay of $21,075.

Even if Kroger reduced its CEO’s pay to $1 million, and distributed the rest equally to Kroger’s 453000 employees, they would each see an annual raise of just $25.46.

In other words, the surcharge is just another way to pad the city’s coffers.

portlandtaxes

 

 

 

Reducing the home mortgage interest deduction: enough with the crocodile tears

 

homemortgageinterest

A Christie’s International Real Estate warning.

The tax bill just passed by the Senate would let new homeowners continue to claim a deduction for the interest they pay on mortgage debt of up to $1 million. Under the House bill, existing homeowners could continue writing off interest paid on mortgage debt up to $1 million, but new mortgages would be subject to a $500,000 cap.

The House provision would be calamitous, tragic, disastrous, critics argue.

Reducing or eliminating the mortgage interest deduction “will hurt millions of hard-working American families and marginalize homeownership,” said Granger McDonald, Chairman of the National Association of Realtors.

Slicing the home mortgage interest deduction could lead to a housing recession, said Jerry Howard, CEO of the National Association of Home Builders.

Let’s get real here.

The change proposed by the House wouldn’t really mean much to many taxpayers. You have to itemize deductions to claim the deduction on your tax return now. Only about one-third of taxpayers now itemize and only three-quarters of those claim a mortgage interest deduction, according to the Urban-Brookings Tax Policy Center.

But that would change because the tax bill would almost double the standard deduction, from $12,700 to $24,000 for married couples and from $6,350 to $12,000 for single filers. With this change, fewer taxpayers would benefit from the mortgage interest deduction. The Tax Policy Center figures the share of households claiming the home mortgage interest deduction would drop to 4 percent. That’s right. Just 4 percent.

That drop would also reflect the fact that, despite a lot of high cost homes in the Portland Metro Area, it’s pretty easy to buy a home for less than $500,000 in most of the rest of Oregon and the nation.

For example, the median home value is $251,100 in Tillamook, $336,600 in Corvallis and $162,300 in Pendleton.

According to the Mortgage Bankers Association, Americans who applied for a mortgage to buy a home in January 2017 were looking for a loan sized at an average of $309,200. The median home value in the United States is only $203,400, according to Zillow.

 

State Home Values

NAME MEDIAN Zillow Home Value Index
California $469,300
New York $267,100
Florida $192,600
Illinois $163,100
Texas $159,000
Pennsylvania $155,000

 

Georgia $149,300
Michigan $126,100
Ohio $122,400

Only 5.4% of all loans originated in 2017 have been for more than $500,000, according to ATTOM Data Solutions. That’s just 325,000 loans, most of which went to the wealthy.

Want to know the median list price by city, state, zip code, and neighborhood? Zillow’s Home Value tool provides that data.

The three states with the highest percentage of home mortgage loans over $500,000 in 2017 have been Washington, D.C. (35.1%), Hawaii (15%) and California (11.5%), followed by Delaware, Massachusetts and Washington state at about 9%.

They’re the ones who would see their ox gored under the House bill, and it’s the members of Congress from these states in the forefront of wanting to preserve the $1 million level.

In Democrat-dominated California, the pain would be noticeable. In the San Jose metropolitan area, 75% of new mortgage loans as of early November 2017 were for more than $500,000 and the median home price was more than $1 million, according to an analysis by CoreLogic Inc. In the San Francisco metro area, 60% of new loans were for more than $500,000.

“I think that harming the ability for Americans to own their home is like attacking motherhood and apple pie,” Rep. Judy Chu (D-Monterey Park), who represents an area that includes Pasadena and much of the San Gabriel Valley, told the Los Angeles Times.

So what the Senate is doing is defending a tax break that mostly benefits a small number of affluent homeowners and distorts the housing market?

The distortion occurs because the tax reduction increases the price of housing. Well-off buyers are willing to pay more because they anticipate deducting their mortgage interest, effectively lowering their monthly house payments.

”… there’s good evidence that cutting back the mortgage-interest deduction would lower prices in high-cost areas, where newcomers find it difficult to move nowadays,” asserts Howard Husock, vice president for research and publications at the Manhattan Institute.

So enough with the weeping and wailing. Reducing the home mortgage interest deduction would be a good thing.

Renaming Portland’s Lynch Schools: the abandonment of reason

lynch_school_1900

It’s not right. It’s not wise.

It’s just not fair to the students at Lynch Meadows, Lynch Wood and Lynch View elementary schools in Portland’s Centennial District.

The three schools are set to lose the “Lynch” in their names before the next school year because the District decided the name “Lynch” is an epithet.  Many newer families coming into the district associate the name with America’s violent racial history, Centennial Superintendent Paul Coakley told The Oregonian.

This is (supposedly) adult educators gone mad.

What’s next? Renaming public buildings with names such as White ( lacks tolerance of diversity), Young (implies ageism), Jackson (he owned slaves,, you know), Wilson (a president who re-segregated the federal civil service) or Johnson (President Andrew Johnson obstructed political and civil rights for blacks after the Civil War, contributing to failure of Reconstruction.)

The overly censorious policing of language in order to spare sensitive young minds does the children no good. Instead of protecting the delicate young souls, it lays the foundation for later insistence on trigger warnings, objections to micro-aggressions, the shouting down of controversial speakers, and the unfortunate spread of presentism, the tendency to interpret past events in terms of modern values and concepts.

The correct response by the Centennial School District was not to cater to misconceptions about the word by abolishing its use, but to educate the schoolchildren about the historical roots of the use of the Lynch name at the schools and the philanthropic spirit of the Lynch family, and, yes, that the word “lynch” in America is also associated with the killing of black people, often by racist organizations such as the Ku Klux Klan.

As Jeremy Montgomery, whose son attends Lynch View Elementary School, told KATU, education would be a better solution. “See, I didn’t even know that (the schools were named after a charitable family). If people were more open to that and knew that, I couldn’t see it being a problem at all,” he said.

Tom Singerhouse, who went to Lynch View more than 50 years ago, expressed a similar view to KATU, saying teachers should be teaching their students about the significance of the Lynch family.

Lynch Wood Elementary’s website already provides a history lesson about the school’s name. Take a look (below). It’s fascinating reading and would be a good basis for a valuable history lesson with the schools’ students. They’d certainly learn a lot more than they would from deleting “Lynch” from their school’s name.

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                        A History of Lynch Schools

A booklet produced by the Civic Leadership Class of 1964

The name “Lynch School” dates back to 1900 when a one room school was built on the present site of the Lynch School at S.E. 162nd Avenue and Division Street, says a website a reprint of a booklet produced by the Civic Leadership Class of 1964.

According to the booklet, on March 13, 1900, Patrick and Catherine Lynch donated one acre of ground located at Section Line Road (Division) and Barker Road (162nd Ave.) on which was built a new one room school pictured on the front of this booklet.

This is the origin of the name “Lynch.” The Lynch farm originally consisted of 160.3 acres granted to Patrick and Catherine Lynch on August 1, 1874, under the Homestead Act passed by Congress in 1862. The original deed granted the land to the Lynch family and was signed by Ulysses S. Grant, President of the United States. Although the property included land on both sides of Section Line Road, the farm home was located across Division Street in the vicinity of The Hut, a restaurant now situated at 167th and Division.

The deed to the property donated to the Lynch School District in 1900 describes the location of the survey markers marking the boundary of the property as being located three inches below the wheel ruts in the adjoining roads. The stone markers had chiseled grooves on the top side for identification purposes. The stone marking the corner of the property at S.E. Division 10″ x 15″ x 22″ set flat side down 3″ below surface of gravel in the north wheel rut of graveled Section Line Road and tamped firmly in place”.

The area around the Lynch School was entirely devoted to agriculture in the late 1800s and early 1900s. Threshing was a community undertaking and many boys missed school because they were needed at harvest time.

The original one room Lynch School which started with fifteen to twenty students increased in number until in 1914 there were about fifty students in the one room school. Some say there were as many as sixty for the one and only teacher. Some of the former students of those “good old days” say that the only way the teacher could handle all eight grades was to divide up her time so each class had a recitation period. She would start in the morning with the first grade, and would by afternoon, finally get around to the eighth grade.

Meanwhile, the rest of the classes were working on assigned work. Of course, some activities and classes were jointly carried on together, such as music, writing practice, and practicing for school plays. In 1915 a large multiple purpose room, which served as an auditorium and meeting place for community functions was built onto the existing one room school. Folding doors were extended during the day making it into two classrooms giving the school a grand total of three rooms.

The Lynch P.T.A. was first organized in 1917 and undertook as its main project, the serving of hot soup and chocolate at lunch time. Residents who remember those days, say it was prepared at the W.B. Steel home where the Big Dollar Shopping Center is now located. Several of the boys would be asked to go over and carry back the kettles of soup and cocoa along with a pail or two of water before lunch.

 

 

Is the #Ilani Casino going to cannibalize the Oregon lottery?

IlaniOpeningDay

Opening day at the Ilani Casino

The word Ilani means “sing” in the Cowlitz language. The Cowlitz Indian Tribe is surely singing the praises of the thousands of Oregonians gambling at the tribe’s new $510 million Ilani Casino near La Center, WA.

The attitude at the Oregon Lottery is not quite so buoyant.

In September 2016, the state’s Office of Economic Analysis (OEA) predicted a decrease in lottery sales of approximately $120 million per year in the 2015-2017 biennium due to the opening of the casino, particularly because of a slowdown of the rate of Video Lottery growth.

The Video Lottery is the Oregon Lottery’s cash cow.

You know the typical casino ad. The gorgeous blonde’s crystal blue eyes gaze adoringly at the urbane, fashionably dressed man as he places a bet. The couple is surrounded by smiling, equally fashionable friends enjoying the gaiety.

You almost expect Jay Gatsby to stroll into the scene from West Egg and enjoy the fun.

The raw reality at video lottery sites in Oregon is usually quite different. On a recent afternoon, all the machines at one site in Hillsboro were being used only by solitary, slightly disheveled men and women in jeans and sweatshirts.

All of them looked hypnotized by the glow of the screen in front of them. Almost motionless, except for the rapid movement of their hands to push the play buttons, they sat mute in the dim light.

MIT anthropologist Natasha Dow Schüll knows such people well. In her book, “Addiction by Design,” she shows how the rhythm of gambling at electronic terminals puts people into a trancelike state in which gamblers keep playing not to win, but so they can stay “in the game” and maximize their “time on device.”

Oregon voters overwhelmingly approved the lottery in 1984. It launched in 1985 at a Portland event featuring an 84-foot-tall inflatable King Kong, perhaps symbolizing the behemoth the lottery would become.

Oregon’s approximately 11,909 Video Lottery terminals deployed throughout the state are now a major part of a rising river of lottery money flooding Oregon. The money has turned the state into an addict as Oregon’s total lottery take has gone from $87.8 million in 1986 to $ 1,230,189,728 in the Fiscal Year Ended June 30, 2016. Video Lottery has been responsible for most of that growth, taking in $876,475,310 in FY16, 71.3 percent of total revenue.

To say the least, the Oregon lottery is a very big business.

The Ilani Casino has already shown it can attract huge crowds and their gambling dollars and the Cowlitz expect millions of guests. Who wouldn’t prefer to gamble at a Vegas-style over-the-top casino just 25 miles north of downtown Portland instead of at a dark, claustrophobic room in a roadside strip mall.

So, will Ilani cannibalize sales from state lottery operations?

Some studies offer strong evidence that it will. An analysis of the relationship between Indian casinos and state lottery revenue in Arizona found that a 10 percent increase in the number of casino slot machines was associated with a 2.8 percent decline in lottery sales. Another study found that riverboat gambling expenditures had a negative and statistically significant impact on state lottery revenues, while a third study found that an increase of $1 in commercial casino revenues reduces net lottery revenues by $0.56.

In Maryland, the opening of casinos affected lottery revenue almost immediately, with traditional lottery sales decreasing by 2.2 percent in fiscal year 2013 and 1.7 percent in 2014, raising fears of a continuing downward slide. But revenue has since rebounded to $1.76 billion in FY15 and $1.9 million in FY16.

Pennsylvania’s lottery was on a roll, too, with steadily increasing sales, but beginning in 2006, when casinos began to open across the state, lottery sales leveled off and then declined. The hardest hit locales in terms of traditional lottery sales were close by areas within a one hour drive. But, as in Maryland, the downward trend was temporary. Pennsylvania’s lottery sales have gone up every year since 2010 and in FY16 the lottery posted record revenue of $4.1 billion.

In Massachusetts, lottery sales didn’t decrease statewide after a casino opened in June 2015, but lottery revenues for agents nearer the casino grew more slowly on average than the rest of the state.

Ilani’s impact on the Oregon Lottery may well follow the pattern in other states, with sales affected most significantly in the Portland Metro Area, particularly in areas that border Washington, and with video lottery being the hardest hit.

According to a March 2017 report by the Oregon Office of Economic Analysis, more than half of Oregon’s statewide video lottery sales occur within the Portland Metropolitan Statistical Area (MSA). About 11 percent of statewide video lottery sales occur within just the northern portion of the Portland MSA – from the St. John’s neighborhood through the Parkrose neighborhood, including Hayden Island.

Anecdotal evidence, plus statistical analysis, indicated that the border effect with the State of Washington, which does not have video lottery in its bars and restaurants, was large, the report said.

This is particularly true directly across the two interstate bridges in Portland. If these northern Portland zip codes see a 40-50 percent decline in video lottery sales, the report said, that means total statewide video lottery sales would decline 4.5 to 5.5 percent. Factoring in additional losses of around 10-15 percent throughout the rest of the Portland region brings the total impact to nearly 12 percent, relative to no casino baseline.

But if the experience of other states holds true, the negative impact of Ilani on even video lottery games in Oregon may not last.

Richard McGowan, a professor at Boston College and an expert on the economics of gambling, explains that the limited impact of casinos on lottery receipts is because the customer bases for lotteries and casinos also don’t overlap as much as people might assume. “Most lottery tickets are bought on impulse when people go in to buy milk and gasoline,” McGowan said. “You have to plan to go to a casino.”

Ilani is, however, likely to impact Oregon’s entertainment venues over the long term. Gaming serves as a substitute for other forms of entertainment, so the more Oregonians go to Ilani to entertain themselves, the less money they will spend in Oregon. But that’s another story.

 

 

 

 

 

 

 

Recruiting a New Portland Police Chief: Hair Shirt Required

selfflagellation

Posting on governmentjobs.com

City of Portland Job Opportunities, Closing – 6/12/2017 4:30 PM Pacific

POLICE CHIEF

“The State of Oregon and its largest city, Portland, share a history of legally sanctioned systemic racism with legally enforced exclusionary practices. Given this history, the successful candidate must demonstrate the capacity and commitment to expand on existing strategies to improve relationships with and service provision to Portland’s communities of color, ensuring that equity is a bedrock of policing in Portland.”

Now that the self-flagellation is over, here’s the job application

Only in Portland: Mindless CEO Taxes

liberal-logic

Eric Fruits, an Oregon economist I admire, made some illuminating comments today on Portland’s misguided attempt to tax CEO pay:

Last week, Portland passed a first-in-the-nation income tax surcharge on companies whose CEOs earn more than 100 times the pay of the median worker in the firm

The tax is on companies that are subject to a new Securities and Exchange Commission rule requiring publicly traded companies to report the ratio of CEO pay to its median pay beginning in 2017. Thanks, Dodd-Frank.

It is estimated that the measure will ultimately raise about $2.5 million annually from some 550 companies that pay Portland’s Business License Fee, which is a nice was of saying “business income tax.”

The pitch from the city commissioner who pushed the ordinance (Portland City Commissioner Steve Novick) is that the surcharge is designed to reduce income inequality. It’s supposed to punish high-income CEOs and the money raised is promised to go to fund affordable housing.

In reality, most of the CEOs targeted in the tax don’t live in or near Portland and the money actually goes into the city’s general fund to be spent however council sees fit. So the tax really won’t do anything to reduce CEO pay, and the money collected will do nothing to raise the incomes of the poor.

A more interesting development may come with the new Congress. Republicans have been targeting Dodd-Frank for a massive overhaul. It wouldn’t take much to strike the pay ratio reporting from the law. Then—poof—the tax has no monitoring mechanism.

So, why would a sitting city commissioner spend so much effort on an empty gesture poking business in the eye?

What if I told you that this commissioner was the first incumbent commissioner in decades to lose his city council seat—by a whopping 10 percentage points—to an unknown newcomer. Sometimes policy is driven by politics.