Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘John Petro’

Best City Policies of 2010

Friday, December 17th, 2010

amytraub4Denver Sparks Parental Involvement En Espanol
The experts agree: parental involvement has strong positive effects on students’ achievement in school. When parents are engaged with their child’s education, attendance improves, grades and test scores go up, and graduation rates rise. But how can school districts involve parents who don’t speak English? In Denver, where three in five students are Latino and many have parents with poor English skills, the school system has taken to the radio waves. Through an hour-long weekly program called “Educa” (educate) the Denver Public Schools connect with Spanish-speaking parents about school policies, events, and issues in public education. Parents can also call in with questions about their children’s school and the education system. The first-of-its-kind program broadcasts on three popular Spanish-language radio stations and has more than doubled its audience — to 54,200 unique listeners — over just a few months. For engaging immigrant parents in a format that speaks to them, the Denver schools’ multicultural outreach efforts come in loud in clear on our list of the best policies of 2010.

Good Jobs Prevail in Pittsburgh
Eager for new development and jobs, cities commonly give developers multi-million dollar tax breaks to sweeten the pot and to get shovels in the ground. But when subsidies are given to projects that create low-wage jobs that keep families in poverty, taxpayers get the short end of the stick. Workers making poverty-level wages at publicly subsidized developments must still rely on public assistance like food stamps, Medicaid, or rental assistance. The result is economic dependence more than economic development. To make sure that taxpayer investments would pay off for city residents, Pittsburgh passed a common-sense piece of legislation: if a developer wanted tax breaks for a new development, workers in the new taxpayer-subsidized hotels, supermarkets, or office buildings must be paid the industry-standard prevailing wage. In an affirmation of the law’s successful implementation in Pittsburgh, the surrounding Allegheny County quickly adopted a similar law. For ensuring that public tax dollars create good jobs with decent wages, Pittsburgh’s prevailing wage law earns a spot on our list of 2010’s best public policies.

Less Lock-up in New York
Treating young offenders like hardened criminals makes no sense — sending a kid in trouble to a juvenile prison greatly increases that young person’s chance of becoming an adult offender. Detaining kids also costs more money than community-based programs, which have a much better track record of preventing future criminality. Luckily, New York City is moving to eliminate unnecessary detention for youthful offenders, many of whom would otherwise be locked up while simply awaiting trial. The city is putting more kids into effective community-based alternatives to detention and reserving secure detention for only the most violent youthful offenders. New assessment tools have been developed to determine which youth should be sent to secure detention and which would be better served in the community. The bottom line is that secure detention for youth is now seen as the option of last resort, rather than the default option. For doing what’s best for youth, the community, and the taxpayer, New York City’s juvenile justice reforms are among this year’s best public policies.

My Way or the Highway in Austin
n Austin, TX, whose frustrating traffic congestion provided the backdrop for the movie “Office Space,” drivers waste an average of one and a half days stuck in traffic every year. Some business leaders pushed for a conventional response to congestion: wider roads and more highways. But the city opted to go down a different path. Recognizing that they could never build enough highways to eliminate traffic congestion, lawmakers instead put a $90 million bond issue on the ballot to improve Austin’s existing streets and make them more hospitable to pedestrians and bicycles. According to blogger Austin Contrarian, “Most of Austin’s roads outside of the central core were laid when the city was more rural than urban. no sidewalks, no bicycle lanes, no sewers, no street trees. But once rural roads now cut through major population centers.” Austin voters approved the bonds on November 2nd. For affirming that transportation investments must include more than just new highway miles, Austin’s bond walks straight onto our list of the best policies of 2010.

Cleveland Sues the Banks
It’s the story of the decade: Ameriquest, Wells Fargo, Goldman Sachs, and other banks raked in record profits speculating on mortgages, pushing more and riskier home loans onto borrowers who clearly never had the means to pay them back. Then the house of cards collapsed. Foreclosure rates soared and cities were left to pick up the pieces. Arson, property deterioration, and crime in neighborhoods devastated by foreclosure imposed steep costs on municipalities just as the recession decimated their tax base. So some cities decided to fight back. The 2010 documentary “Cleveland vs. Wall Street” tells the story of one such fight, as the city of Cleveland sued more than twenty major banks for setting off a chain of events with negative consequences “entirely foreseeable by Wall Street.” When a federal appeals court rejected the case earlier this year, Cleveland announced it would continue its fight to the Supreme Court. For striving to hold Wall Street accountable for the devastation it wreaked in its neighborhoods, Cleveland’s suit wins a place on our best policy of 2010 list.

John Petro contributed to this article.

This article was originally posted on DMI Blog,

About the Author: Amy Traub is the Director of Research at the Drum Major Institute. A native of the Cleveland area, Amy is a Phi Beta Kappa graduate of the University of Chicago. Before coming to the Drum Major Institute, Amy headed the research department of a major New York City labor union, where her efforts contributed to the resolution of strikes and successful union organizing campaigns by hundreds of working New Yorkers.

Living Wage Law Would Create Benefits for Business, City's Economy

Wednesday, July 7th, 2010

John PetroIn response to the hottest legislative issue in City Hall right now, the Daily News ran two opinion pieces on a bill that would guarantee living wages to all workers at city-subsidized development projects. This would mean that if a developer receives city tax breaks or other assistance to build a mall, for example, the retail workers, janitors, parking attendants, and any other employee at that mall would be paid at least $10 an hour with health benefits, or $11.50 an hour without benefits.

The principle behind the bill is simple: the city should only use taxpayer dollars to create high-quality jobs. Subsidizing the creation of poverty-level jobs makes little economic or fiscal sense. After all, it already costs the state at least $5.2 billion to provide services and assistance to the working poor. Why should we use scarce tax dollars to subsidize development that will only add to these public costs?

In a piece filled with false assumptions and unsupported claims, Diana Furchtgott-Roth argues that guaranteeing the creation of good jobs will actually hurt the city’s economy and its taxpayers. Not only is the living wage in Furchtgott-Roth’s crosshairs, but also the prevailing wage and even the minimum wage. In other words, Furchtgott-Roth rejects the idea that government should regulate the labor market.

Clearly there are good reasons for government to do exactly that, not just in the name of altruism but for the sake of the taxpayer, the business climate, and the city’s overall economy. In 1960, speaking to members of Congress, President John F. Kennedy noted that, “The increases in purchasing power resulting from a higher minimum wage will help to restore consumer demand required to put our idle industrial capacity back to work.”

Even in China, which built its economy on low-cost labor, cities are passing new laws that boost worker wages in order to increase the purchasing power of Chinese households and to create domestic demand for Chinese goods and services.

But the discussion about wages and business in New York City has become so backward that the real and demonstrable benefits of boosting wages for the city’s economy has become lost in a sea of misinformation.

Take Furchtgott-Roth’s piece. The living wage bill will, according to the author: stall development, cause businesses to flee the city, waste taxpayer money, and increase unemployment. Notably absent was any evidence to support these claims.

In reality, living wage laws have not had any significant negative impact on businesses in the over 120 cities that have passed these laws. In Santa Fe, New Mexico every single worker within city borders is guaranteed by city law to be paid a living wage. This is, by far, a much more ambitious bill than what is currently under consideration in New York City, where only workers at subsidized buildings will be covered. And yet, a study by the University of New Mexico Bureau of Business and Economic Research has shown that since Santa Fe passed its living wage law there has been no demonstrable negative effects on employment or firm growth. Studies of other cities with living wage laws have demonstrated similar results.

Despite the evidence the living wage bill in New York City is strongly opposed by Mayor Bloomberg and real estate interests. This is because the bill challenges the current economic development status quo. Instead of promoting the types of projects that create the most wealth for a select group of developers, the bill would ensure that working New Yorkers benefit directly from the city’s economic development efforts

About The Author: John Petro is an urban policy analyst at the Drum Major Institute for Public Policy. He runs the Progressive Urban Model Policies (PUMP) Project, a first-of-its-kind initiative to organize and share best practices in policy design and implementation. His writing on urban issues has appeared in the San Francisco Chronicle and his recent research has been covered in Politico, The New York Times, Reuters, and other media outlets.

Your Rights Job Survival The Issues Features Resources About This Blog