Tag: California

Los Angeles Crime Rate Declines Again Despite Complaints about Immigrants

One of the more common complaints I hear about illegal immigration is that low-skilled workers from Mexico and Central America allegedly bring with them a wave of crime and incarceration expenses, especially to southern California.

Those complaints are hard to square with the mounting evidence that immigrants, even low-skilled, illegal immigrants, are no more prone to commit crimes than native-born Americans. The latest data point comes from Los Angeles, where the Wall Street Journal reports this morning: “Violent crime in Los Angeles hit its lowest level in more than half a century last year, one of a growing number of U.S. cities reporting its streets were remarkably safe in 2009.”

I tried to connect the dots on immigration and crime in a recent article I wrote for Commentary magazine, titled “Higher Immigration, Lower Crime.” My conclusion was entirely consistent with the latest crime report from Los Angeles:

As a rule, low-skilled Hispanic immigrants get down to the business of earning money, sending remittances to their home countries, and staying out of trouble. In comparison to 15 years ago a member of today’s underclass standing on a street corner is more likely waiting for a day’s work than for a drug deal.

California Illustrates Need to Revive Federalism

The state of California recently received $60 million in U.S. Department of Labor stimulus funds to upgrade its 23 year-old unemployment benefits system. But according to the Associated Press, California is yet to spend $66 million it received from Labor in 2002 to upgrade its system. The price tag isn’t whopping by federal standards, but it is another reminder of the need to return to fiscal federalism.

Apparently, the Department of Labor couldn’t care less:

The federal government has no plans to sanction or fine California for not completing the original technology upgrade. The Labor Department said it was more concerned that new stimulus funding is used in a way that will allow more workers to qualify for unemployment assistance.

At the same time, California’s unemployment insurance fund is $7.4 billion in the red, which has forced it to “borrow” $4.7 billion from the federal government. According to an editorial in the Oakland Tribune, California increased the generosity of its unemployment benefits when the economy was healthy, but now that the economy is stagnant spendthrift policies are creating a fiscal crisis.

Alan Reynolds reminds that the federal stimulus package “bribed states to extend benefits — which have now been stretched to an unprecedented 79 weeks in 28 states and to 46 to 72 weeks in the rest.” When you subsidize something you get more of it—federal subsidies prompt more state subsidies to the unemployed, which generates more unemployment. Alan concludes that “the February stimulus bill has added at least two percentage points to the unemployment rate.”

California’s unemployment rate of 12.5 percent is the state’s highest since the end of the Great Depression. Once again we see that when the line of responsibility between federal and state government is blurred, the result is more of both and poor policies compounded.

California Grubbing

Kids often have a tremendous sense of entitlement. Well, there are a lot of kids in California colleges — and running them.

You probably have heard about the University of California Regents voting yesterday for a 32-percent tuition hike over the next two years. Not surprisingly, many students are angry, some enough that they were arrested protesting outside the Regents’ meeting.

Now, a 32 percent hike over two years isn’t small. But here’s the thing: California has typically charged students very little relative to both state taxpayer funding and national averages. As you can see in the chart below, which uses data from the State Higher Education Executive Officers, net per-pupil tuition revenue (meaning revenue from tuition minus any state financial aid) in California has hovered around $1,200 over the last 25 years, and has only gone up about $18 per year. Meanwhile, state taxpayers have been shelling out around $7,300 per pupil per year. So state taxpayers have been furnishing the vast majority of funding for California college students, and students have done very little to make up the vast gulf between what they pay and what taxpayers shell out.

How does California compare to the rest of the nation? On average for all states, net per-pupil revenue from students has risen from just about $2,000 to $4,000, putting the ever-growing average around $3,000, or close to three times what Golden State students have been furnishing. Funding from state and local taxpayers, meanwhile, has been just slightly lower nationally than in California.

So California students have been getting a heck of a deal, which is no doubt one among many reasons the state is on fiscal life support. Sooner or later bills come due, and that has left the state little choice but to make students pay more for the education of which they are by far the biggest beneficiaries.

Naturally — but still shamelessly — students are acting like victims now that the decrepit gravy train is slowing down a bit.  Unfortunately, the adults in charge of California colleges are also naturally — but perhaps even more shamelessly — stoking student anger so that they don’t have to do things that make their jobs less pleasant.

Despite the utterly unsustainable taxpayer funding for higher education that California has doled out for decades, for instance, UC president Mark Yudof had no qualms about declaring that:

We’re being forced to impose a user tax on our students and their families. This is a tax necessary because our political leaders have failed to adequately fund public higher education.

Last I checked, what a customer pays for a service is called a “price” not a “tax.” A tax is what has been used to make taxpayers bear by far the biggest part of California’s higher education burden while students have furnished but a token amount. And please don’t give us the “failed to adequately fund” line. UC Berkeley Chancellor Robert Birgeneau has been happily trotting out that disproven dreck in a grab for federal taxpayer dollars at the same time it has been discovered that he’s been pushing millions of dollars intended for academics and other purposes to Berkeley athletics.

It’s hard enough to accept the underfunding bit when the data clearly show it not to be the case. It’s even harder when college leaders spend their precious dollars on water polo and golf.

It’s time in California for the adults to stop acting like kids, and for the kids to start paying their share. But don’t get your hopes up, at least in higher education. It seems that no one there is without a shameless sense of entitlement.

Lies Our Professors Tell Us

On Sunday, the Washington Post ran an op-ed by the chancellor and vice chancellor of the University of California, Berkeley, in which the writers proposed that the federal government start pumping money into a select few public universities. Why? On the constantly repeated but never substantiated assertion that state and local governments have been cutting those schools off.

As I point out in the following, unpublished letter to the editor, that is what we in the business call “a lie:”

It’s unfortunate that officials of a taxpayer-funded university felt the need to deceive in order to get more taxpayer dough, but that’s what UC Berkeley’s Robert Birgeneau and Frank Yeary did. Writing about the supposedly dire financial straits of public higher education (“Rescuing Our Public Universities,” September 27), Birgeneau and Yeary lamented decades of “material and progressive disinvestment by states in higher education.” But there’s been no such disinvestment, at least over the last quarter-century. According to inflation-adjusted data from the State Higher Education Executive Officers, in 1983 state and local expenditures per public-college pupil totaled $6,478. In 2008 they hit $7,059. At the same time, public-college enrollment ballooned from under 8 million students to over 10 million. That translates into anything but a “disinvestment” in the public ivory tower, no matter what its penthouse residents may say.

Since letters to the editor typically have to be pretty short I left out readily available data for California, data which would, of course, be most relevant to the destitute scholars of Berkeley. Since I have more space here, let’s take a look: In 1983, again using inflation-adjusted SHEEO numbers, state and local governments in the Golden State provided $5,963 per full-time-equivalent student. In 2008, they furnished $7,177, a 20 percent increase. And this while enrollment grew from about 1.2 million students to 1.7 million! Of course, spending didn’t go up in a straight line – it went up and down with the business cycle – but in no way was there anything you could call appreciable ”disinvestment.” 

Unfortunately, higher education is awash in lies like these. Therefore, our debunking will not stop here! On Tuesday, October 6, at a Cato Institute/Pope Center for Higher Education Policy debate, we’ll deal with another of the ivory tower’s great truth-defying proclamations: that colleges and universities raise their prices at astronomical rates not because abundant, largely taxpayer-funded student aid makes doing so easy, but because they have to!

It’s a doozy of a declaration that should set off a doozy of a debate! To register to attend what should be a terrific event, or just to watch online, follow this link.

I hope to see you there, and remember: Don’t believe everything your professors tell you, especially when it impacts their wallets!

Fire! Fire! Fire!

fireIt’s summer again, which means it is the time of year for the obligatory photos of wildfires in Southern California. This particular fire, known as the Station Fire, nearly doubled in size in the last 24 hours from 98 to 164 square miles. So far, it has burned at least 18 buildings and cost the lives of at least two firefighters.

The fire began in the Angeles National Forest, and Congress will no doubt respond by giving the Forest Service even more money to suppress such fires in the future. In fact, as I show in my Cato Policy Analysis, The Perfect Firestorm, the Forest Service has, in effect, a blank check to put out fires.

It freely uses that blank check. It has so far spent about $14 million fighting the Station Fire, which supposedly threatens 12,000 homes. But it has also spent $2.5 million on Oregon’s Canal Creek Fire, which is less than half a square mile in size and does not threaten any homes or other structures. Better safe than sorry — as long as you have a blank check.

Southern California forests are extremely fire prone — their natural fire regime is to completely burn over every 50 to 100 years. Building homes in such an area might seem foolish, so naturally there have been calls for “fire plain zoning,” similar to flood plain zoning, that would restrict such construction.

FlintridgeIn fact, properly designed homes and landscaping can easily withstand such fires. Most homes destroyed by wildfires are ignited either by burning embers landing on flammable roofs or by the radiant heat from trees or   grasses burning nearby.  Building homes with nonflammable roofs and eves, and landscaping with well-tended lawns and a minimum of flammable trees essentially makes homes fireproof.

Most civilian deaths from wildfire take place during evacuations, not from the fire itself. Homes that are designed to withstand wildfires are known as “shelter-in-place” homes because the residents will be safer in the homes than trying to evacuate.

In 2007, CBS News reported that a fire swept through two San Diego suburbs built to shelter-in-place standards, and “not one home was even touched by flames.” Perversely, the reporter concluded that people should not be allowed to build to those standards because it would just encourage them to live in fire-prone areas.

In reality, the lesson is that it would be a lot less expensive to promote shelter-in-place construction standards and retrofitting and then simply let the fires burn at their normal frequencies. The homes would be safe, the forests would be “natural,” and fewer firefighters would be at risk.

Why doesn’t this happen?

Simple: money. The Forest Service gets a blank check for putting out fires, but almost no money for helping people fireproof their properties. So it continues to spend billions on fire suppression, mainly to protect people’s homes, when a lower-cost strategy is readily available.

Photo credit: MB Trama and DisneyKrazie on Flickr.

Have Mexican Dishwashers Brought California to Its Knees?

workerAn article published this week by National Review magazine blames the many problems of California on—take a guess—high taxes, over-regulation of business, runaway state spending, an expansive welfare state? Try none of the above. The article, by Alex Alexiev of the Hudson Institute, puts the blame on the backs of low-skilled, illegal immigrants from Mexico and the federal government for not keeping them out.

Titled “Catching Up to Mexico: Illegal immigration is depleting California’s human capital and ravaging its economy,” the article endorses high-skilled immigration to the state while rejecting the influx of “the poorly educated, the unskilled, and the illiterate” immigrants that enter illegally from Mexico and elsewhere in Latin America.

Before swallowing the article’s thesis, consider two thoughts:

One, if low-skilled, illegal immigration is the single greatest cause of California’s woes, how does the author explain the relative success of Texas? As a survey in the July 11 issue of The Economist magazine explained, smaller-government Texas has avoided many of the problems of California while outperforming most of the rest of the country in job creation and economic growth. And Texas has managed to do this with an illegal immigrant population that rivals California’s as a share of its population.

Two, low-skilled immigrants actually enhance the human capital of native-born Americans by allowing us to move up the occupational ladder to jobs that are more productive and better paying. In a new study from the Cato Institute, titled “Restriction or Legalization? Measuring the Economic Benefits of Immigration Reform,” this phenomenon is called the “occupational mix effect” and it translates into tens of billions of dollars of benefits to U.S. households.

Our new study, authored by economists Peter Dixon and Maureen Rimmer, found that legalization of low-skilled immigration would boost the incomes of American households by $180 billion, while further restricting such immigration would reduce the incomes of U.S. families by $80 billion.

That is a quarter of a trillion dollar difference between following the policy advice of National Review and that of the Cato Institute. Last time I checked, that is still real money, even in Washington.

How California’s Schools Brought the State to its Financial Knees

As we watch California struggle with a budget deficit larger than the entire Iranian government’s budget, it’s worth exploring how the state got there. The biggest contributing factor: a staggering collapse in educational productivity.

In 1974-75, California spent $1,373 per pupil on k-12 public schooling. By 2006-07, it was spending $10,937. Adjusting the earlier figure for inflation (to $5,286 in 2007 dollars), that still represents a more than doubling in real spending per pupil.

Of course, if California public schools had doubled student achievement and eliminated dropouts, that might justify their staggering increase in cost. They haven’t.  On the most reliable available measure of state academic achievement trends, the NAEP, California public school students have seen their scores go up by about 0.2% per year at the 4th and 8th grades since state-level data became available in 1990.  In other words, the state’s scores have barely budged from the low position they have long occupied. As a 2005 RAND paper observes:

California placed 48th out of 50 states on the average NAEP score across all tests, just above Louisiana and Mississippi… California’s low scores cannot be accounted for by the high percentage of minority students. California’s scores for students from families with similar characteristics are the lowest in the nation: It ranks 47th out of 47 states when we compare scores for these students.

California is in budgetary hell because of a massive collapse in the productivity of its public schools. If the public schools had just maintained the productivity level they enjoyed in 1974-75, taxpayers would now be saving $36 billion annually. That’s $10 billion more than the deficit the state is currently facing.

It’s not hard to understand why: public schooling is a monopoly. There is no field within the free enterprise sector of the economy that has had a similarly horrendous productivity collapse over the past 35 years.

California can work its way back to fiscal sanity, and jump-start educational improvement, by encouraging entrepreneurship in education via k-12 education tax credits like this one.