Bill Stowe: Water quality hero

Bill Stowe’s courageous fight for clean water lives on.

160915-Stowe-130333crop
Bill Stowe speaks at IPP’s 15th anniversary event in September 2016. (Photo: Lance Coles)

Bill Stowe, dead at 60. The average American male born in 1959 should live about another 10 years. But there was nothing average about Bill Stowe.

The average male does not get three advanced degrees from three different institutions. The average American, male or female, does not take on the strongest and most powerful to change public debate, and force accountability where it was lacking.

Bill ran the Des Moines Water Works (DMWW), the largest supplier of clean drinking water in Iowa. It was a surface water system. That means it had to deal with the serious pollution that unrestrained agricultural practices put into Iowa waters — a costly and unsustainable proposition.

Realizing he could not continue to pass on the costs of treating that water to his customers alone, he took action — courageous action in an agricultural state — to either get the polluters to stop, or at least to pay for the problems they are causing.

The case of the Des Moines Water Works vs. three Iowa counties with drainage districts that were some of the main polluters of the Raccoon River went to federal court. It scared agricultural organizations like the various state Farm Bureau federations.

As Stowe and DMWW fought “dark money”-funded interests in court, he gained both foes who favor the status quo and allies who shared either the lawsuit’s goals or the desire to help Iowans see what big industry was up to. Others joined the fight, including one small-town journalist who won a Pulitzer Prize, and activists who keep his fight alive today.

Bill lost his case in court, but pushed water quality more squarely into Iowa’s political and policy spotlight, forcing politicians including Terry Branstad to concede a need to do something — even though their actions have fallen short.

Bill Stowe was generous with his time and talked to groups about treating water to make it safe. He taught a class of mine.

160314-Stowe-DO classThe picture above was from three years ago when we visited the treatment works he served. He spoke often to groups about his passion for clean water all around the state — including as the featured speaker for the 15th anniversary of our organization in 2016.

When IPP considers what papers to investigate we often ask knowledgeable people around the state for thoughts on what would be helpful to better inform public debate. Bill had suggestions for our latest series of reports on water quality.

When IPP researcher Natalie Veldhouse and I met with him and his DMWW colleague Laura Sarcone in November, they had good suggestions that helped us in the development of our latest paper. When I sent a copy of that paper to Laura for her thoughts, I did not know that Bill was already in hospice.

Bill died too soon. His fight for clean water remains important for all Iowans.

2016-osterberg_5464David Osterberg is co-founder, former executive director and lead environment and energy researcher for the Iowa Policy Project. dosterberg@iowapolicyproject.org

Perspective for the common good on Tax Day

On Tax Day — and every day — we must ask whether rampant tax breaks, subsidies and tax cuts are wise choices with public dollars from taxpayers.

It is so tempting, as we are seeing on social media over the last several days, to talk about filing your taxes and the fact that you (1) paid more or (2) paid less.

Is that really what matters? Let’s take a step back and look at the big picture — the common good. There are three main points to remember:

1) First, what are taxes for? Schools. Roads. National defense. Health care. Fairness and protection in the workplace. Clean air. Clean water. Recreational opportunities. Libraries. There are more examples you may put out front.

But in any case, none of those services funded now by taxpayers will be provided without taxes. They will not be provided by the private sector, at least on any scale that provides access to all Americans.

Go ahead. Chart a road to opportunity for all that does not include taxes. You cannot do it. It is integral to the mission, which is why tax reform is an essential stop we identify on our Roadmap for Opportunity. Unfortunately, Iowans have not received tax reform, but a doubling down on bad tax policy trends of the last 20 or 30 years.

2) Our Iowa tax code is inequitable. The rich pay less as a share of their income than people who live paycheck to paycheck.

It was already a long-term trend in Iowa (and in many states) and it was worsened by the 2018 tax overhaul. Our state and local tax system is upside down.

3) Cleaning up and restoring balance to our tax code would better assure public money is going to public purposes, rather than subsidizing tax breaks and loopholes for those most politically well-connected.

As we have shown:
•     Tax credits for business already cost more than $300 million a year.
•     Tax loopholes for multistate and multinational corporations already cost between $60 million and $100 million.

On Tax Day — and every day — we must ask whether those choices are the best use of public money, when we know education, public safety and environmental quality are being compromised by short-sighted budget decisions in Des Moines.

Mike Owen is executive director of the nonpartisan Iowa Policy Project.

mikeowen@iowapolicyproject.org

No ‘I’ in sports bets

But is prohibiting bets on individuals enough to assure integrity in college games?

An admitted political compromise would legalize sports betting in Iowa while keeping bets on Iowa student athletes illegal — but only on their individual performance.[1]

Promoters of the plan are betting that this small nod to sports integrity might gain a few votes. However, the compromise in the Legislature shines a light on the integrity issue and to larger weaknesses, which are many.

If legal sports betting were not a threat to sports integrity, no such compromise to the betting bill, HF748, would be needed. The compromise concedes a threat remains to competition outside Iowa that gamblers might influence. Plus, legislative deals made now could be quickly reversed next year once that new betting door is open. I mean, what are the odds?

These are among many points — including fiscal and economic issues — being missed in the rushed drive in 2019 to expand gambling in Iowa with legalized sports betting.

Governing Magazine looked at the revenue states might expect. The magazine cited a Moody’s Investors Service report that noted “sports betting in Nevada accounted for just 2 percent of statewide gambling revenue.”[2] In the first six months of legalized sports betting in New Jersey a mere $3 million in tax revenue was raised from in-casino betting, in a state much larger than Iowa and with a higher tax rate on betting (8.5 percent).[3]

This is not economic development. Sports betting in Iowa is for Iowa residents only; we would not attract any out-of-state spending. And much of the money wagered on sports would come from spending on other forms of entertainment at local businesses, where more of the profits stay in the state.

Casinos want sports betting to entice new customers, who might become regulars at the slot machines and gaming tables.

So for a meager increase in revenue, the state would open up greater opportunities to contaminate sports integrity and create new problems of gambling addiction, along with the attendant family problems and breakups, embezzlement, and job loss.

Already, most families have no savings, or very little. Around half of U.S. families have no or negative net wealth.[4] More than 60 percent don’t have even $1,000 put aside for emergencies let alone for retirement.[5] Having more gambling opportunities keeps people from getting ahead.

Many of these problems are only a matter of time. Any bets on how soon we will see them?

2010-PFw5464Peter Fisher is research director of the nonpartisan Iowa Policy Project in Iowa City. pfisher@iowapolicyproject.org

 

[1] The Gazette, Cedar Rapids, March 19, 2019, “Compromise advances sports betting bill in Iowa House,” https://www.thegazette.com/subject/news/government/compromise-advances-sports-betting-bill-in-iowa-house-limits-in-play-prop-wagers-on-iowa-collegiate-sports-20190319, and March 22, 2019, “Betting on college pivotal to gambling debate,” https://www.thegazette.com/subject/news/business/iowa-sports-betting-college-sports-20190322.

[2] Liz Farmer. How the Sports Betting Ruling Will Impact State Budgets The Supreme Court outlawed a federal ban on sports betting on Monday, and some states are poised to capitalize. Governing May 14, 2018. https://www.governing.com/topics/finance/gov-how-legalizing-sports-betting-will-impact-state-budgets.html

[3] The Tax Policy Center, “TPC’s Sports Gambling Tip Sheet.”  https://www.taxpolicycenter.org/taxvox/tpcs-sports-gambling-tip-sheet.

[4] The Quarterly Journal of Economics, Emmanuel Saez and Gabriel Zucman, Vol. 1, May 2016, Issue 2, Wealth Inequality in the United States Since 1913: Evidence from Capitalized Income Tax Data, Pg. 554. http://gabriel-zucman.eu/files/SaezZucman2016QJE.pdf.

[5] Bankrate’s Financial Security Index, 2018, https://www.bankrate.com/banking/savings/financial-security-0118/.

Iowa women: Still working for less

Wage trends for all workers mask important demographic differences, as we show in our Wage section of the State of Working Iowa website. New data since that update show a gap remains between wages for men and women. Over almost four decades that gap has narrowed — partly due to lower wages for men — but in 2018 it widened, from 15 cents to 21 cents on the dollar.

For men, real wages began falling for low-wage men in the mid-1970s, and this spread across all but the highest percentiles through 1979-1989 and through the first half of the 1990s (1989-1995).

Some relief in the late 1990s is short-lived: Wage growth grinds to a halt in 2000–2007 and then retreats — for all but highest earners — from 2007–2018. Iowa women workers, by contrast, do relatively well: All but the lowest wage decile see impressive wage gains across the full 1979-2016 era. Low-wage women lost a lot of ground in the 1980s, but did better than their male peers during the 1990s boom.

The gender wage gap has narrowed substantially, but there also is a ways to go toward equal pay: In 1979, women made 62 cents for every dollar earned by men; today they earn 79 cents. The long-term narrowing of that gap reflects, in about equal measure, the gains made by women over that era, and the losses suffered by men.

By Colin Gordon, Senior Research Consultant for the Iowa Policy Project, and lead author of IPP’s State of Working Iowa series.

Monopolies strangling solar, small business

Monopolies would destroy small business who make their money at the local level by insulating homes or installing solar panels.

In times like these, it is helpful to recall what our nation learned from the leadership of Teddy Roosevelt, who went after trusts and monopolies because he knew they used their huge size to strangle other businesses.

Iowa could use that kind of leadership. Our Iowa monopoly electric companies are strangling small businesses again. As monopolies they are guaranteed profits, only because of efficiencies seen as a public benefit in the production and distribution of power. And to make sure they do not abuse that power, they are regulated by a fairly powerful state regulatory agency, the Iowa Utilities Board (IUB).

Solar energy gives citizens control over part of their lives. Small customers who could not operate a coal plant can put up solar panels. MidAmerican Energy (MidAm) sees that and feels threatened. Even though only 750 of their 770,000 customers have solar panels on their property, MidAm wants this market to itself.

So now, MidAm is trying to bypass its IUB regulators by going to the Iowa Legislature to get what they want. MidAm’s approach is a job-killer for solar contractors and a few manufacturers in the state. Legislation the company is pushing would strip those small competitors of most of their market, reducing or even removing the benefits to people who chose to install solar panels.

In short, MidAm wants to put a tax on the sun.

Its proposed changes greatly reduce the incentive to generate one’s own electricity. As it works now, customers with solar panels sometimes produce more electricity than they use. This is often during the middle of a sunny day in the summer when electric prices are at their highest.

Currently, these customers are compensated for the excess energy they provide back to the grid at the same price they pay the electric monopoly. HSB185 would allow MidAm or any investor-owned utility to charge extra fees, or cut compensation, to homeowners and businesses that have clean energy systems. This would discourage solar projects by making them cost-prohibitive.

MidAm — like all utilities — charges a fixed, mandatory fee each month to all customers, which proves false MidAm’s principal argument that the clean-energy customers aren’t paying their share for lines, transformers and billing expenses of the company. Already, they pay.

But MidAm at least is consistent in its attempts to undermine smart-energy choices and the role of small users and businesses in providing it. We saw it last year as well, when MidAm and Alliant Energy successfully bypassed the IUB by dismantling Iowa’s requirement that they help their customers be more efficient. Previously, electric monopolies rewarded a customer who bought a more efficient refrigerator, or efficient light bulbs, or put in more insulation. No more.

Now MidAm is using the same game plan. Go to the Legislature and convince the members to allow monopolies to destroy small business who make their money at the local level by insulating homes or installing solar panels.

What would Teddy Roosevelt have done? He would stand up to stop utilities’ bullying of fair competition and the freedom of citizens to generate their own electricity. Small businesses, conservationists and citizens who just want more control of their lives are looking for that kind of champion.

David Osterberg is lead environment/energy researcher, founder and former executive director of the nonpartisan Iowa Policy Project in Iowa City.

dosterberg@iowapolicyproject.org

Charging all taxpayers private tuition

Vouchers are about mandates, forcing everybody to pay for the few, and diverting resources from public schools.

Iowa taxpayers are on the hook for over $65 million in subsidies each year to private schools in Iowa.[1] Nearly all of these schools are religious schools. While only 6 percent of the students in elementary schools in Iowa are in private schools, all taxpayers help pay for their education (and religious training) through the state taxes they pay. And in nearly three-fourths of Iowa public school districts there is no private school option.

Proposals once again making their way through the Iowa Legislature would expand the subsidies to these private schools, and to the parents who choose to send their children there, through the creation of education savings grants. These proposals would end up costing over $100 million per year, and potentially up to $200 million, money that could instead be used to strengthen education in the public schools serving 94 percent of Iowa’s children.[2]

There are 330 public school districts in Iowa. In 242 of those districts there is no private school offering classes in any grade, Kindergarten through 12th. Private schools are concentrated in Iowa’s metropolitan areas. Nearly half of the total private school enrollment in the state is in just 12 school districts, all located in one of Iowa’s nine metropolitan areas.

The map below shows just how scarce private schools are in rural Iowa. While all 21 of the Iowa counties that are part of a metropolitan area (lighter blue in map) have at least one private school, only 38 of the 78 non-metro counties have a private school option. And in 12 of these counties the options are quite limited: a single school with total enrollment ranging from just 20 to 98. (For an interactive version of the map, click on the image.)

[1] http://www.iowapolicyproject.org/2018docs/181105-IFP-pvtschools-bgd.pdf

[2] http://www.iowapolicyproject.org/2018docs/181105-roadmap-vouchers.pdf

Peter S. Fisher is research director of the Iowa Policy Project.

pfisher@iowapolicyproject.org

Long way to King’s goal

Persistent segregation, plus deindustrialization and declining in job quality across the region, has created stark and sustained obstacles to equal opportunity and equal outcomes.

As we mark Martin Luther King Day, it is also worth underscoring just how far we need to travel — in Iowa and in the nation — to achieve Dr. King’s aspirations of true and substantive racial equality.

Nationally, the last half-century has seen some progress in African-American educational attainment, wages, and incomes. But gains on other fronts — including home ownership, wealth, unemployment, and incarceration — have been elusive.

Regrettably, Iowa (and its upper Midwestern neighbors) remain among the starkest settings for racial inequality across a number of dimensions. Historically, Midwestern and rustbelt metropolitan areas have always been among the segregated places to live. Indeed black-white segregation in Iowa’s metro areas has persisted across the last generation and — in the Iowa City metro — has actually worsened since 1990. This, coupled, with the sustained impact of deindustrialization and declining in job quality across the region, has created stark and sustained obstacles to equal opportunity and equal outcomes.

The result is a jarring juxtaposition: While Midwestern metros (Des Moines, Madison, Minneapolis) typically crowd the “best places to live” lists, they are also among the very worst places to live for African-Americans. In one recent analysis, ranking the states by an index of racial inequality, Iowa and its immediate neighbors (Wisconsin, Minnesota, South Dakota, and Illinois) were the top (worst) five states.

Below, I have calculated Iowa’s position (rank among the states) across five key dimensions. For poverty, income, unemployment, and homeowners I used the Census Bureau’s 2013-2017 American Community Survey (pooling five years of data, given the size of the African-American sample in Iowa, provides a more reliable estimate); for rates of incarceration, I rely on the ongoing work of the Sentencing Project.

Here are the results:

1.  Although Iowa’s unemployment rate is low, the white-black gap is persistent. At 7.2 percent, the African-American unemployment rate is more than double the rate (3.2 percent) for white Iowans (2013-17). We are one of 16 states to reach this dubious threshold; the ratio of white-to-black employment in Iowa is the eighth worst in the country.

2.  African-American household median income in Iowa ($30,505) is barely half white household income. On this measure, we rank seventh worst in the country.

3.  On poverty, the disparity is even starker. The African-American poverty rate in Iowa (34.1 percent) is more than triple the white poverty rate (10.0 percent). We rank sixth worst in the country.

4.  Almost three quarters (74.1 percent) of white Iowan heads of households own their homes, almost triple the rate (27 percent) for black heads of household. On this metric, Iowa has the seventh worst disparity in the country.

5.  One of every 17 black men in Iowa are in prison, a rate of incarceration that is the third worst (behind only Vermont and Oklahoma) in the country. The ratio of black-white incarceration in Iowa is 11.1: 1 (for every white adult in prison there are 11.1 black adults in prison), again ranking third worst (behind Wisconsin and New Jersey).

Colin Gordon is senior research consultant for the nonpartisan Iowa Policy Project. A professor of history at the University of Iowa, Gordon also has authored IPP’s State of Working Iowa reports. Contact: cgordonipp@gmail.com