Posts tagged ‘Arizona’

Libertarian Oddity of the Day

I found this a bit odd.  In Arizona, you can actually make a voluntary contribution to certain causes or political parties via your tax return.  This is not a checkoff, but an amount that is added to the amount you owe in taxes and then passed on by the state to a short list of approved organizations.  As a libertarian, I find it unsettling that the state acts as a collection or sales agent for certain political causes.  In particular, how can the state make fair and reasonable choices as to who is on and not on the list of eligible recipients?

I found this data for 2009 FY giving:

taxes

What was odd for me is that of all the political giving, libertarians had the highest average donation.  I find it weird that libertarians would want to financially support the libertarian cause but they want to do it via the mechanism of the state income tax return.

The good news here is that the combined $28 thousand or so in political donations was dwarfed by every other cause.

From Our Department of WTF

Under what theory of government is this a proper activity of government with our tax dollars?

Gov. Jan Brewer took the stage Thursday with rocker and restaurateur Alice Cooper to persuade Arizonans that dining out is good for the state. Announcing a three-month public-awareness campaign called Dine 4 AZ, they said going to restaurants supports businesses and helps preserve jobs. Brewer noted that restaurants generate 10 percent of Arizona's tax revenues.

"We are working hard to lead the Grand Canyon State forward and out of this recession, and Dine 4 AZ fits perfectly into our plan," she said. "Please treat your family to a meal and we'll get through this together."

It is just seriously freaking frustrating to see the government spend my money promoting other people's businesses.   And since when has dining out been a sign of patriotism?  Why is buying food from a restaurant more stimulative than buying food from a supermarket? On the plus side of all this is the spectacle of politicians taking the stage with Phoenix favorite son Alice Cooper to make a policy speech.  The only thing that would be better would be for the governor to appear with Phoenix-area resident Jenna Jamison to promote the, uh, stimulative effect of spending an evening at your local strip club.

Postscript - by the way, there is almost no point in challenging the numbers in such a stupid article, but I will bet anything I own that restaurants do not generate 10 percent of Arizona's tax revenues.  Update - In fact, based on this report, restaurants were 9.4% of sales tax collections which in turn are 61% of major state taxes, which makes restaurants and bars about 5.7% of state tax revenue, which I will admit is higher than I would have guessed but still well off the number in the article.

Update #2: OK, I am probably overworking this, but the same report referenced above showed Arizona individual income taxes dropping 32.4% in 2009, presumably due to large drops in income.  However, sales taxes only dropped 13.9% in that period.  And within sales taxes, restaurant and bar sales taxes only dropped 5.8%.  I say only, because except for some stable utility and telecom categories, this is the lowest drop of any business sector subject to sales taxes.   General retail down 12.2%.  Amusements down 8.1%.  Hotel/Motel down 11.9%.  So, in response to the down economy, the state government has thrown their weight behind shifting business to... the single retail category that has been least hurt by the recession.

Blaming the Free Market for Government Actions

The leftish political strategy for over 100 years has been

  1. Regulate something
  2. Blame the free market for inevitable disruptions caused by the regulation
  3. Use the above to justify more regulation
  4. Repeat

Obama's speech has a classic example of this:

So let me set the record straight. My guiding principle is, and always has been, that consumers do better when there is choice and competition. Unfortunately, in 34 states, 75% of the insurance market is controlled by five or fewer companies. In Alabama, almost 90% is controlled by just one company. Without competition, the price of insurance goes up and the quality goes down. And it makes it easier for insurance companies to treat their customers badly "“ by cherry-picking the healthiest individuals and trying to drop the sickest; by overcharging small businesses who have no leverage; and by jacking up rates.

This is ENTIRELY a situation manufactured by government and specifically state regulations.  States prevent out of state insurance companies from competing in the health insurance market.  Think you have the same Blue Cross/ Blue Shield I have (or used to have)?  Wrong.  I have Blue Cross/Blue Shield of Arizona.  You have Blue Cross/Blue Shield of whatever state you are in.  If Amazon.com had to create 50 separate state entities all with wildly different regulatory structures, you can bet they would focus on just a few states and there would therefore be a lot less competition.  Obama HAS to know this is true, so this is just a cynical argument aimed at the ignorant and uninformed.

By the way, what evidence is there that having 75% of the market in 5 companies is too concentrated?  I have been in a lot of industrial markets that were far more concentrated than that which were brutally competitive.

Licensing Is About Protecting Incumbent Businesses

Most licensing efforts are nominally sold based on some public or consumer good but almost always end up being mostly about protecting politically connected incumbent businesses against new competitors.   Nowhere is this more obvious than in liquor licensing.

If you want to start a new liquor-based business (restaurant or bar) in Phoenix, it is going to cost you a hundred grand just for the license.

In fact, the sales price for existing licenses has dropped in recent years, with prices for a bar license in the Phoenix area slipping from $100,000 to $85,000 or $90,000, he said.

And these are the numbers with record-low demand.  Why does Arizona (or most other states) limit the number of licenses at all?  Why not just issue them to all comers, and let the market sort out who is successful and who is not?  Certainly we would likely see a lot more interesting restaurant startups if there was not an effective $100,000 tax on starting a restaurant imposed by the state.

State officials used to pretend the reason was to protect the community from being overrun by, er, dining choices or bars or whatever, but nowadays they don't even bother with such justifications and just give the true reason - they are protecting incumbents from competition.

Arizona hadn't awarded licenses since the late 1980s before the 2005 law passed. That was largely because holders of existing licenses didn't want to diminish their resale value.

Well, I am a holder of several existing Arizona licenses and I say -- open the floodgates!

Why Does Everything Seem To Need A Freaking Subsidy

Today's issue in Arizona:  Should our public utility be required to provide line extensions to new homes "for free" (meaning paid for by existing rate payers) or should homebuilders, developers, and home buyers have to pay the real marginal cost of their utility infrastructure.

It is another of those subsidy issues where "visible" jobs (ie jobs in new home construction) are held out as justification, while "invisible job losses (ie from higher electricity rates to existing customers) are not even mentioned.

One of the biggest sticking points in the case is whether it is fairer to charge new developments the cost of new lines or simply charge the existing 1.1 million APS customers higher monthly rates to fund free lines.

Proponents of free lines said it would only cost customers 80 cents a month for APS to reinstate free lines, but APS officials said that if growth picks up as the economy recovers, customers could be charged an average of $45 a year to fund free lines.

Why is this even a point of discussion?  A small group of people are attempting to make the majority buy them some goodies. The argument, as always, is that when the price of these goodies is spread across lots of people, its not really very much per person.  It is almost as if the rest of us are being made to feel churlish for not agreeing to fund their next housing development.

I am far, far, far from being an anti-growth guy.  But I agree with the anti-growth guys in one respect - it is perfectly reasonable for new developments to pay for the full incremental infrastructure cost of their development.

We Can Only Afford This With Other People's Money

It turns out, the first $100 million a mile extension of Phoenix light rail is having to be postponed.  The reason?  Its just too much money for the local pols.  So why is this one piece being postponed when any number of other extensions, such as the $230 million a mile airport extension, still going forward?  Well, it turns out that all those other lines (as well as the original) use large dollops of federal money, while the delayed extension was planned to use only local money.

It turns out that we are not willing to pay the full freight of building light rail for ourselves, and only want to do it if we are able to grab at least half the cost from people outside of Arizona.  AZ Republic story

Bad Timing Awards

Today in my inbox I got a letter from "Governor Mark Sanford" with a pitch to join the Goldwater Institute (a conservative / free market think tank here in Arizona).  Oops.

The Odd Bipolar World of Statism

Certainly one driver of statism is arrogance -- the technocratic belief that one's intellectual capacity and decision-making ability is superior to that of the masses, and therefore should be substituted (via authoritarian control) for that of the masses.  This was clearly the driver of statism in the early to mid-century.  Its what caused FDR to be so enamored of Mussolini-stype fascism.  A few smart people making the trains run on time.

But I am starting to wonder if there isn't a second driver of statism that comes from the opposite direction -- projecting one's own weaknesses on the rest of humanity and, assuming they share these weaknesses, using this assumption as a reason for mommy-state controls.  This latter reasoning came through in this article summary in my feed reader from the Arizona Republic:

Lamenting his first teenage cigarette, President Barack Obama ruefully admitted on Monday that he's spent his adult life fighting the habit. Then he signed the nation's toughest anti-smoking law, aiming to keep thousands of other teens from getting hooked.

Libertarians Are Used to Bad Choices, but...

... a debate between Sheriff Joe Arpaio and Al Sharpton certainly leaves me without a side to cheer for.

Phoenix Light Rail Fail -- Half My Light Rail Bet Settled

When Phoenix was building its light rail system, I made the following two-part bet:

  1. I could take all the money spent on construction and easily buy a Prius for every single daily rider, with money to spare
  2. I could take the operating deficits for light rail and buy everyone gas to run their Prius 10,000 miles per year and still have money left over.

This bet has been tested in a number of cities, including LA and Albuquerque, and I have not lost yet.  Now the numbers are in for Phoenix initial ridership, and I am winning the first half of my bet in a landslide.

The other day, Phoenix trumpeted that its daily ridership had reached 37,000 boardings per weekday.  Since most of those people have two boardings per day (one each direction) we can think of this as 18,500 people making a round trip each day.

Well, if we bought each of these folks a brand new Prius III for $23,000 it would cost us just over $425 million.  This is WAY less than the $1.4 billion we pay to move them by rail instead.   We could have bought every regular rider a Prius and still have a billion dollars left over!  And, having a Prius, they would be able to commute and get good gas mileage anywhere they wanted to go in Phoenix, rather than just a maximum of 20 miles on just one line.  Sure, I suppose one could argue that light rail is still relatively new and will grow, but even if ridership triples, I still win the fist half of my bet.  And as the system expands, my bet just looks better, as every single expansion proposal has been at a cost of $100 million a mile or more, more expensive than the first 20 miles.

So now, all we have to do is wait to see the operating results to settle the second half of my bet.  If common practice is followed from other metro areas, this will be extremely difficult to prove because the authority will do everything it can to hide the huge operating dollar hole light rail is creating.

But Coyote, what about congestion?

I am glad you asked.  Folks will argue that rail reduces congestion.  Normally, I would agree but argue that it reduces congestion at way too high of a price.  But for Phoenix light rail, it may even be that rail makes congestion worse.

Here is why:  In building Phoenix light rail, the city along most of the line had to remove two lanes of traffic (one each way) to build the line.  So here is the comparison:

  • Light rail carries 37,000 trips per day or about 2,000 per hour  (1,000 each way) through its 18-hour operating day, though certainly there are peaks and valleys around this average
  • A typical lane of road has a capacity of 2000 cars per hour, so light rail removed 4,000 cars per hour of road capacity (2,000 each way).  Its unclear how many riders this equates to, but the average car in the city has 1.5 passengers, so we will call this a road capacity of 6,000 trips per hour (3,000 each way).

So, we have replaced roads that can carry 6,000 trips per hour with train tracks carrying 2,000 trips per hour.  Sure, the train carries more than 2,000 in some peak periods, but probably not more than the road it replaced was capable of carrying.  Further, I can attest from personal experience that the complexity of trains on the road and passing through intersections screws up the timing of lights and results in lost capacity on the roads in the area that remain.

A Thought on Sports Team Subsidies

I would love to see the ridership of the light rail on days with and without a baseball game or basketball game downtown.  My sense is that a significant portion of the ridership is from game attendees (its the only time I have found it useful to ride the train).  If this is the case, then this massive overspending for light rail represents yet another subsidy for professional sports teams.

By the way, I just realized that I am underestimating the financial cost to the city of the train.  Most sports fans ride it not as a transit substitute per se but as a parking substitute -- the train allows one to park cheaply away from downtown and ride the the game without traffic hassles.  I wonder how much the lost $15 a pop parking in city lots by the stadium due to the train is costing the city?

Light Rail Hurts the Working Poor

I think it is always important to reiterate why light rail is such a threat to the working poor who depend on transit.  As I wrote the other day:

"¦light rail is simply not transit for the working poor. It is transit for yuppies that happens to be used by some working poor.  They are built for white collar workers commuting to town who are too high and mighty to be caught dead in a "grubby" bus.  But since light rail is orders of magnitude more expensive than buses, two things happen in every city that ever builds light rail.

1) Light rail fares skyrocket to cover their immense operating deficits and capital costs, giving the lie to politicians that sold these systems as helping working poor.

2) Bus service, the form of transit that serves most of the working poor even today in the Bay Area, is cut back to help pay for rail.

Light rail is the worst enemy of providing transit services to the working poor ever devised in this country.

Now We Know The World Is About to End...

... because an Arizona Cardinal will be on the cover of EA's Madden 10 game.  Actually, Larry Fitzgerald of the Cardinals will share the cover with Troy Polamalu of the Steelers.  I suppose believers in the Madden curse can take heart that it may not have much affect on the Cardinals, who have historically been dogged by plenty of curses of their own making.   Maybe there is some sort of acquired immunity.  Great choice, though, as Larry Fitzgerald is not only rediculously talented and exciting to watch, but also seems to be as good of a guy as one can find in professional sports.

Defending our Borders

Via the Arizona Republic:

"Non-native turtles removed from zoo"

Taxes = Power

On tax day today, we should remember a key reason why taxes keep going up:  Taxes equate to power for elected officials.  The more money they have to spend, the more power they have.  The more money they have to spend, the more people have to kowtow to them and send campaign contributions either to 1) score a share of the loot or 2) get a special deal or treatment on their own taxes.

We have a sense that there is more corruption than ever in politics, but I think its demonstrably true that people and politicians are not any more or less evil than they were 100 years ago.  The only difference is that the sums in play from political influence are so much larger.  Its a concept I try to explain to people all the time.  The way to fix corruption in politics is not through campaign finance reform, it is through reducing the size of government.  Because no matter what restrictions one puts in place, if we set up a system where it pays to invest in politicians, then people will find a way to do so:

In a remarkable illustration of the power of lobbying in Washington, a study released last week found that a single tax break in 2004 earned companies $220 for every dollar they spent on the issue "” a 22,000 percent rate of return on their investment.

The study by researchers at the University of Kansas underscores the central reason that lobbying has become a $3 billion-a-year industry in Washington: It pays. The $787 billion stimulus act and major spending proposals have ratcheted up the lobbying frenzy further this year, even as President Obama and public-interest groups press for sharper restrictions on the practice.

The paper by three Kansas professors examined the impact of a one-time tax break approved by Congress in 2004 that allowed multinational corporations to "repatriate" profits earned overseas....The researchers calculated an average rate of return of 22,000 percent for those companies that helped lobby for the tax break. Eli Lilly, for example, reported in disclosure documents that it spent $8.5 million in 2003 and 2004 to lobby for the provision "” and eventually gained tax savings of more than $2 billion.

These returns rival those in the narcotics trade, and you know how well we have performed in stopping that.  We are seeing this effect right now in Arizona, where the County Commissioners of Pima County (centered on Tucson) are under investigation for rigging electronic voting machines to pass a recent tax increase.

Under the scrutiny of criminal investigators, election workers in Phoenix have spent the past week in a painstaking recount of 120,821 ballots that were cast three years ago for a Pima County transit tax.

The primary objective is to determine whether someone rigged the election by tampering with the optical-scan polling machines in Pima County, transforming "no" votes into "yes" votes.

The ballot measures wound up securing a half-cent increase in sales tax to provide cash for roads, buses and other transportation projects.

The reason -- taxes are power, and more taxes are more power.

A New Low, Even for Sheriff Joe

Our local county Sheriff's deputies arrested four people in a County Board of Supervisor's meeting whose only "crime" was applauding for a speaker who criticized Sheriff Joe Arpaio.

Friction between Maricopa County government officials and a vocal coalition of activists who oppose Sheriff Joe Arpaio reached a new level when authorities arrested four people during a County Board of Supervisors meeting Wednesday.

Sheriff's deputies and county Protective Service officers arrested two men and two women in the middle of the meeting when they stood and applauded a speaker who criticized Arpaio.

Joel Nelson, Jason Odhner, Monica Sanschafer and Kristy Theilen all were charged with suspicion of disorderly conduct and trespassing, said sheriff's office spokesman Lt. Brian Lee....

The crackdown brought the anti-Arpaio activist arrest tally to nine in the past four months.

The article includes video, so you can judge for yourself just how disorderly these people were.  Readers of this site continue to heap on me examples of Arpaio's positive public press (via PR staff paid with my tax dollars) as evidence I am too hard on Joe.  Look, I don't care how inspired his program is for caring for lost dogs with prisoners, at his core he has no respect for basic civil rights.  He is a government thug who distracts potential critics, like a magician, with pink underwear and bologna sandwiches.

Special big props to County Supervisor Max Wilson, who effectively eschewed any civilian control of the police, confirming to Arpaio that he is a law unto himself and accountable to no one:

Supervisor Max Wilson. R-District 4, declined comment on whether he was comfortable with the arrests. "I don't tell the police how to do their job. I don't instruct them to do it or when to do it. They're professionals at it and that's the way they handle it," he said.

J Edgar Hoover would have been quite comfortable with this model.

Maybe Mark Sanford Was On To Something

As has been the case for decades (the gun-to-the-head federal strategy to force 55 mph speed limits and seat belt laws come to mind), the feds are sending money to the states with many strings attached.  Apparently, Arizona is running afoul of one of those provisions:

Arizona's receipt of $1.6 billion in stimulus funding, including more than $300 million already being spent to help keep the state in the black, is at risk because a federal agency says the state is not in compliance with a prohibition against health-care rollbacks.

Arizona could lose the money if the federal determination stands or if state law isn't changed to eliminate a health-care requalification provision that was the basis of the determination, state officials said Monday.

According to Brewer's letter, the agency determined that the Arizona Health Care Cost Containment System's requirement that some enrollees requalify every six months instead of annually violated a stimulus-program prohibition against tightened eligibility standards, methodologies or procedures for a state's Medicaid program.

There is something supremely irritating about Federal bailouts to states that are tied to restrictions that make it more difficult for states to close their budget shortfalls on their own.  It's almost as if Congress wants to institutionalize dependency on the Feds  (where have we seen that before?)

Apparently, in the spirit of the retroactive tax-taking of the AIG deferred compensation payments, the restrictions are retroactive to state actions taken as early as July 1, 2008, meaning that Obama is asking states to roll back legislation that was passed months before he was even elected as a condition of getting the cash.

The actions causing problems for Arizona occurred in September, 2008, and were, according to our governor, the result of legislation passed in June of 2008.

Arizona: Visionary

Why?  Because we don't have daylight savings time.  I have argued for years that DST may have made sense when electricity demand was driven by lighting, but air conditioning actually reverses the equation, putting people at home during more of the cooling hours.   The Liberty Papers links to a study with similar results:

Our main finding is that"”contrary to the policy's intent"”DST increases residential electricity demand. Estimates of the overall increase are approximately 1 percent, but we find that the effect is not constant throughout the DST period. DST causes the greatest increase in electricity consumption in the fall, when estimates range between 2 and 4 percent. These findings are consistent with simulation results that point to a tradeoff between reducing demand for lighting and increasing demand for heating and cooling. We estimate a cost of increased electricity bills to Indiana households of $9 million per year. We also estimate social costs of increased pollution emissions that range from $1.7 to $5.5 million per year. Finally, we argue that the effect is likely to be even stronger in other regions of the United States.

Absurd Regulation

I found out today, the hard way, that Arizona has a law specifying exactly how a pool contract is to be paid for a pool construction or renovation job.  Yes, we sure would not want to leave it to individual choice and negotiation to determine contract terms.  The craziest part is that I am required, by law, to pay 100% of the cost of the job to the pool contractor before the gunite or finish coat of the pool is shot.  In other words, I must pay all of the contracted price before the job is complete with no hold back.

This is absolutely crazy.  I have never in my life not had a hold-back in a construction contract.  Three times  (all with my company) I have had contractors go bankrupt or disappear before the job is complete, in at least two cases leaving so much work unfinished that even the hold-back was not enough to cover the loss.   Typically, contractors bolt before the punch list is complete, and only the hold-back keeps them focused at all on finishing the job to my satisfaction.  I am not happy, particularly since Phoenix pool contractors are going bankrupt right and left in this economy.

This is yet another example where "regulation" in fact means "in the tank for favored industries that make campaign contributions."

The Most Money Every Spent With The Least Scrutiny

We will be posting on the stimulus bill for months and years, because it will take that long to figure out what was in it.  Congressman who voted for it may never know what they actually voted for.  Veronique de Rugy takes a first swing at it:

Total spending amounts to $792 billion, with $570 billion in direct spending and $212 billion in tax provisions. These numbers don't include the massive amount of interest that will accrue on the increased debt. If we include that, the total amount comes to $1.14 trillion.

Supporters of the package describe the legislation as transportation and infrastructure investment, the idea being to use new spending to put America back to work while at the same time fixing decrepit infrastructure. However, only 17 percent of the discretionary spending in this package is for infrastructure items. More worrisome still, the final version lacks any mechanism to ensure that spending will be targeted toward infrastructure projects with high economic returns

De Rugy actually overestimates the infrastructure spending, because she looks at the spending over 10 years.  Since the stimulative effect of infrastructure spending in this recession is, at most, limited to 2009-2010 spending, and since the infrastructure spending is more back-end loaded, the percentage is much lower in the first 2 years -- something like 6-7% as I calculated here (I will go back through the CBO reports with an update when I get a chance, but Kevin Drum links them here, hilariously saying they "scored well."

Unfortunately, even this seems to wildly underestimate the true cost of the bill.  In creating the bill, Congress increased the general operating funds for zillions of departments and programs  (remember, 80+% of the spending is departmental budget increases, not infrastructure construction).  However, they show these increasing disappearing after a couple of years.  We all know that Democrats consider removing an increase to be "a massive cut" so we can assume that at some point, these budget increases will be extended for eternity.  If one makes this more realistic assumption, then the cost of the stimulus bill is over $3 trillion!  [update:  Carpe Diem demonstrates this with a nice set of graphs]

My other project I am working on is to look at some of the "shovel ready" projects on the mayor's list here  (warning!  600 page pdf!!) in the Phoenix area.  My incoming hypothesis is that any project on here either:

  1. Is not shovel ready, as it takes years to get a project through planning, procurement, and environmental permitting, but once anyone in DC finds that out, they won't take back the money, -OR-
  2. Is something that the local residents, who will enjoy the benefit, refused to fund, raising the question as to why the rest of us should fund it.

I won't spill the beans yet, but here are a few tastes from the Phoenix area:

  • A major upgrade to the water system of the town of Paradise Valley, a small community embedded in Phoenix which is, by a fairly good margin, the single wealthiest zip code in the state.
  • A lot of solar.  Solar is a particularly good choice for this list because 1)  Obama has a hard-on for it, so he is unlikely to question it  2)  Solar's problem is high capital cost vs. the amount of electricity produced, but if someone else is paying the capital cost....

Light Rail Alternative

Apparently, Phoenix is experimenting with a new style of bus transport that looks and operates like a train:

The Mesa Link debuted the same week as light rail. For now, Link involves a fleet of 10 buses. Each $756,000 vehicle carries a transponder to coordinate traffic lights and keep the bus on schedule for a 12-mile run in 45 minutes.

It's the start of a much more ambitious program.

Over the next few months, the Regional Public Transportation Authority, which coordinates Valley Metro bus service, will build stations and add technology to the Mesa line to give it more of the pace and feel of a train.

Basically, they are building the thing to look and operate like a light rail train, only running on tires on the existing road.    The travel time may seem slow, but it is nearly identical to the average speed of our light rail line (20 miles in a claimed 70 minutes, though a number of riders say its slower).  And the capacity is nearly identical.

So with the same speed and the same capacity and similar scheduled service with similar style stations, here is the real appeal:

In 2010, a second line will be created to run 12 miles along Arizona Avenue in Mesa and Chandler. It will feature 10 stations and cost $28 million for construction and the purchase of nine buses. Future lines are planned for Scottsdale Road, Baseline Road and Chandler Boulevard.

The 20-mile light-rail line cost $1.4 billion to build.

Holy cr*p.  $70 million a mile for light rail vs. $2.3 million a mile for this system.   That is 30x cheaper.  The only discernible difference is one runs on steel rails and the other on tires.  Oh, and the rail line, in most places it was built, completely removed up to two lanes of existing roadway capacity, while the bus-type system leaves the roadway intact and just uses a fraction of one lane's capacity.

Now, I would have to sit down and look at the numbers and the service profile to decide if this new bus system made sense financially vs. the old bus system, but why are we even considering extending light rail?  And why oh why did we build this white elephant in the first place.

Top Arizona Campgrounds

I don't often mix stuff in about my business, but two of our Arizona campgrounds - Manzanita and Cave Springs, both in the Sedona/Oak Creek Canyon area, were named to the top 10 Arizona campgrounds list by CampArizona.com.

While I am on business news, the NFRA, our trade group, is having its annual conference March 3-5 in San Diego California.  The conference focuses on privitization of public recreation, and may be of interest to any number of public recreation authorities who are currently struggling with budget issues.  Our company alone runs over 100 public recreation facilities, keeping these facilities open to the public and turning an operating cost for public authorities into a source of income.  I am trying to teach our trade goup to blog, and their formative effort is here.

Another Selling Point for Phoenix Light Rail

Share a ride with a prisoner:

Maricopa County sheriff's deputies may soon begin taking some inmates to Fourth Avenue Jail on Metro light rail in a bid to cut costs.

The Sheriff's Office announced its intent to transport inmates using the light rail from 44th and Washington streets to the Fourth Avenue Jail in order to eliminate parking fees. MCSO estimates that the new system can save about $72,000 in transport fees.

Seems to be some funny economics at work if the city charges the Sheriff more money for parking a car at the jail than it does for at least 3 people to ride the metro.

Anyway, count on Sheriff Joe to ease any tension you might have with this share-a-ride program:

"There is nothing to be concerned or worried about as my deputies will be armed," Sheriff Joe Arpaio said in a press release.

Great, but who is going to protect me from the sheriff?  And why does this statement remind me of the famous Al Haig "Don't Worry, I'm in charge" press conference?

Un-Freaking-Believeable

A month ago, the Arizona Cardinals mailed me (as a season ticket holder) my playoffs tickets.  I usually don't advertise myself as an Arizona Cardinals season ticket holder, just because numerous academic studies have demonstrated that this fact is not highly correlated with the average person's perceptions of intelligence.

Because of logistics and time limitations, when one gets NFL playoff tickets one typically gets a ticket for every possible game the team could play in.  Because there was an oddball small statistical chance the Cardinals could host an NFC championship game if a) the Cardinals won two playoff games, which has never happened in franchise history and b) all the top 3 seeds lost, they sent me NFC championship game tickets.  My son and I literally laughed out loud when we saw them.  Hosting an NFC championship game with a franchise that has not hosted any sort of playoff game for 60 years seemed, well, laughable.

Well, I just ran to my desk to make sure I actually kept the tickets, because with the Eagle's win today the Cardinals will actually be hosting the NFC championship game next week.  Go Cards!

$3,617 an inch

Via a reader, comes this update on the link from Phoenix's new light rail line to the airport:

Down the line, Sky Harbor plans to phase out shuttles.

Eventually, an automated train will take passengers around the airport. The project will cover 4.8 miles and will cost $1.1 billion.

Construction on the project began this year, and the first phase is scheduled to open in 2013.

The entire system will be up by 2020, Sky Harbor officials say.

I beg your pardon?  $1.1 Billion.  With a B?  For 4.8 miles?  That is, as the title implies, $3,617 per inch.   It is probably so expensive because they will be working at the blistering pace of 1/3 mile per year, or about 5 feet per day.

Some Valley residents have questioned the reason Phoenix and transit officials didn't build one train system - light rail - with several stations at Sky Harbor.

Transit leaders considered that, but they decided against it, light-rail officials have said.

Running the line through Sky Harbor would have made light rail even more expensive.

Because, you know, if the Sky Harbor extension is an entirely different project that has to be funded later to make up an obvious service gap that everyone and his dog can immediately spot in the system, then the cost doesn't count?

A Small Setback for the Corporate State

Phoenix's agreement to give a $100 million handout to a shopping mall development in north Phoenix was struck down as illegal.

A major economic-development agreement between Phoenix and the CityNorth development has been ruled unconstitutional, meaning the project may not grow into the once-envisioned second downtown on the city's north side.

The Arizona Court of Appeals said Tuesday that the $97.4 million agreement violates the gift clause of the Arizona Constitution, which prohibits governments from granting money or credit to private entities in most cases.

In 2007, the city agreed to give the developer half the sales-tax revenue from the site. The developer, among other provisions, agreed to denser construction and to provide free parking and special spaces for park-and-ride use.

Excellent news.  This handout was engineered in a fairly smart bit of rent-seeking on the developer's part.  There are two competing shopping mall development sites about a mile apart in a wealthy area along highway 101.  The two sites are close, but on different sides of the Scottsdale-Phoenix border, so the developers managed to get Phoenix to pony up tons of taxpayer swag out of fear that stores like Nordstrom would move to the Scottsdale development (more here).  The parking subsidy came in at around $30,000 per parking space, and the only public benefit was supposedly that other locals could use the lot, though there are no other structures not within this particular development in walking distance of the proposed lot.  Here is the enormous downside that Phoenix now faces for not being able to hand $100 million to the developers:

Representatives of the Thomas J. Klutznick Co. declined interviews but issued a prepared statement saying that, without the agreement, they will be forced to cut the density of the project.

Less density would mean fewer shops, restaurants, hotels and offices and fewer jobs, the statement said.

The company said a "less capital-intensive design" would include surface parking lots covering more than half the development. It also warned that the project will face delays.

Uh, okay.  I think I will survive.   Their problem is they wanted the taxpayer-funded garage so that they could convert surface lots in their plan to more buildings they could rent or sell.  Boohoo.  Either it makes economic sense, and they can pony up their own money, or not.  Speaking personally, fighting Christmas shopping traffic, I am just fine with lower density shopping.

No Issue Too Small To Get Attention from the State

Criminalizing everything:

License-plate frames that celebrate your favorite college or sports team become illegal next month if the frame obscures the state's name.

Starting Jan. 1, police can stop you if "Arizona" isn't clearly visible at the top of the plate. Violators will be fined an average of $135, plus court fees, depending on the city where the violation is discovered.

Wow, while the police are chasing after that guy with a joint, lets make sure we also have the boys in blue vigilant for this.  And I am sure this new law will be enforced as equally and fairly as all the others and these guys will be he first to get tickets:

On Tuesday, half the 26 vehicles in the Arizona Senate parking lot bore frames obscuring the word "Arizona."

Yeah, right.  This is just another "probably cause" for Sheriff Joe Arpaio and his boys to pull over every person with brown skin they run into.