Category Archives: Government

1NT: Dillon’s Rule

In most US states local municipalities can only pass ordinances or laws with state permission. From Wikipedia:

In the United Stateshome rule refers to the authority of a constituent part of a U.S. state to exercise powers of governance delegated to it by its state government. In some states, known as home rule states, the state’s constitution grants municipalities and/or counties the ability to pass laws to govern themselves as they see fit (so long as they obey the state and federal constitutions). In other states, only limited authority has been granted to local governments by passage of statutes in the state legislature. In these states, a city or county must obtain permission from the state legislature if it wishes to pass a law or ordinance which is not specifically permitted under existing state legislation.

Forty of the fifty states apply the principle known as Dillon’s Rule in some form to determine the bounds of a municipal government’s legal authority.[1] The National League of Cities identifies 31 Dillon’s Rule states, 10 home rule states, 8 states that apply Dillon’s Rule only to certain municipalities, and one state (Florida) that applies home rule to everything except taxation.[2] Each state defines for itself what powers it will grant to local governments.

1NT: We don’t need no stinking judges…or lawyers

Adding a new category to this ancient blog: One New Thing. It’s based on the “you learn something new every day” theory, which I’ve found to be true and I thought to myself, “Self, you should start writing this crap down.” Here’s today’s one new thing (1NT):

You don’t have to be a judge, or even a lawyer, to be a Supreme Court Justice. From the Supreme Court’s FAQ page:

Are there qualifications to be a Justice? Do you have to be a lawyer or attend law school to be a Supreme Court Justice?

The Constitution does not specify qualifications for Justices such as age, education, profession, or native-born citizenship. A Justice does not have to be a lawyer or a law school graduate, but all Justices have been trained in the law. Many of the 18th and 19th century Justices studied law under a mentor because there were few law schools in the country.

  • The last Justice to be appointed who did not attend any law school was James F. Byrnes (1941-1942). He did not graduate from high school and taught himself law, passing the bar at the age of 23.
  • Robert H. Jackson (1941-1954). While Jackson did not attend an undergraduate college, he did study law at Albany Law School in New York. At the time of his graduation, Jackson was only twenty years old and one of the requirements for a law degree was that students must be twenty-one years old. Thus rather than a law degree, Jackson was awarded with a “diploma of graduation.” Twenty-nine years later, Albany Law School belatedly presented Jackson with a law degree noting his original graduating class of 1912.

Jobs Retained by PPP in the Triad’s 3 Big Cities

Digging a little more into the PPP numbers from the SBA (see yesterday’s post) it’s interesting to look at the number of small loans (under $150,000) versus the number of larger loans (over $150,000) and the number of jobs they have retained according to the report.

According to the data there were 9,670 loans combined in the three cities and of those 8,131, or 84% were under $150,000.

PPP loans by size

The data also shows that there were 115,448 jobs retained and of those 38,735, or 34% came from the small loans.

PPP Jobs Retained

PPP in Triad’s Big 3 Cities

After the SBA released the PPP data to the public I decided to take a look at the numbers for the three larger cities in the Piedmont Triad: Greensboro, High Point and Winston-Salem. Since the SBA divided it’s data into two separate sets, loans over $150,000 and those less than $150,000 I combined them all in one spreadsheet and then sorted by city and the size of the loan. Here’s what I found:

Between the three cities there were 9,670 businesses that were approved for PPP loans. Here’s how it broke down between the three cities:

PPP cities

The data is also broken down by loan amounts and this is how the loan sizes broke down:

PPP loan amount distribution

This chart reflects the distribution of all 9,670 loans across all three cities, but I found it interesting that this distribution was almost exactly the same across all three cities.

If you want to dig into the data yourself you can download the files here.

Some Thoughts About Immigration

midtownsign

The morning of February 16, 2017 I had a breakfast meeting at a restaurant in Winston-Salem. When I arrived I found a sign on the door (pictured above) announcing that the restaurant was offering a limited menu and open for limited hours due to the “A Day Without Immigrants” protest. While I’d seen something about the protest on the morning news, I hadn’t really paid attention, and to be honest I was a little surprised to discover that the protest had made it’s way to our small North Carolina city.

midtownmenu

When I got to our table I looked at the menu that the restaurant had printed for the day and on the back I found a letter to customers (pictured above, and sorry for the poor quality). After reading it I asked our server about the protest she said that the kitchen staff had talked to management the day before to let them know they were going to participate, and management had hustled to put together the limited operation so they could open their doors. After the meeting was over I headed to my car, and before leaving the parking lot I decided to post these pics and the following post to Facebook:

Had a breakfast meeting at Mid Town. They are working with a limited menu and shorter hours to support their staff who are taking part in the “Day Without Immigrants Protest.” Our server said it was just about their entire kitchen staff. Have to say I admire the folks at Mid Town for taking this route. As far as protests go I think this is a very effective approach – makes crystal clear the impact that our immigrant neighbors have on our community and economy.

Well, it probably wouldn’t surprise you to hear that I got some feedback on the post. Some agreed, some disagreed, and as always I enjoyed the back and forth. The best feedback I received, however, was in a series of private messages from a friend who works for a company that processes chickens. He didn’t want to post his comments on my Facebook post because he didn’t want to “start a big war of words” on my post, but he did give me permission to share his perspective and so I’ve pasted some below. Please take a moment to read it, because I think his experiences and viewpoints are important to keep in mind when we discuss immigration. Here’s the first message he wrote:

Saw your post. And this might get long. Sorry.

We have been planning for this day all week. Honestly about all we have done this week.

We have 1500 workers across 10 states and are directly responsible for supplying about 20% of all the chicken consumed in the US. Our workforce is about 90% Hispanic. We (along with Tyson, Perdue, etc) have been working hard to minimize the impact on the nation’s food supply. There are several plants running at 75% and less capacity today. Some plants not operating at all.

Trust me, without the immigrant workforce, this country does not eat. It is not a matter of just a limited menu, or prices being higher. We do not eat! We have been working on utilizing the EB3 visa program to bring in workers. Long story, but basically it allows someone to come in to the country and bring their immediate family. They must work for us for 1 year. After the year is up, they are free to stay and work anywhere they want. They can stay with us if they want. Or they can go work for you.

Well, we have to prove to US Govt that we cannot get good ol’ red blooded ‘Mericans to work. So we ran a few ads on Monster, etc. We received 250+ responses for Monroe NC. We asked all of them to complete an application.

  • Of the 250, we received 15 applications. We tried to schedule interviews with all 15.
  • Of the 15, 6 replied to scheduling something.
  • Of the 6, 3 actually scheduled an interview.
  • Of the 3 scheduled interviews, 1 showed up.
  • The 1 that showed up brought in a document for us to sign that stated he had an interview so he could get his unemployment benefits. He did not want a job. All he wanted was his form signed so he can keep collecting his benefits.
  • All done we had 0 out of 250. Meanwhile we hire about 40 workers per week. But nobody named Bob, Mike, John, Brian are showing up.

This is unskilled labor. It is hard work, but unskilled. We pay about $17-$20/hour. We are not looking for the cheapest labor we can find. We are not looking to pay under the table. We need workers. These immigrants are NOT taking people’s job. They just want to work and make money and the citizens are too lazy to do these jobs.

I wish we had a pretty open worker visa program. Do a decent background check. Give them a real SSN. Allow them to work. Then we do a mandatory backup withholding of 20% for federal tax and 5% for state. Get it all above board. Tax revenue increases. From a humanitarian side, people are not being taken advantage of.

So there, in a nutshell, is the scope of the issue we’re dealing with when we talk immigration. The current administration likes to focus on building a wall to keep bad, dangerous, illegal immigrants out of our country and by doing so they are scratching the itch of many Americans who feel disenfranchised, but the reality is that we need the immigrants or we don’t eat, plain and simple. But what about the idea that these illegal immigrants are stealing Americans’ jobs? Well, my friend addressed that with the job-posting experience and after a couple of messages back and forth he expanded a bit on why many business owners might not want an effective legal immigration system:

I am adamant about getting things above board. Most of our competitors want the undocumented worker. It means that even if they pay the same net wage we do, they can operate 25% cheaper than we do.

The Hispanic community says you are “baptized” each time you get a new fake ID. Our competitors will make them new identities each year so they can evade the tax system. They will file 1099’s using a SSN for 2015. Give the guy a new name and SSN (baptize) for 2016 and file 1099. Baptize them again for 2017 and file 1099. Rinse repeat. Year after year. Nothing gets in to tax system.

If you are legal, our competitor will “baptize” you anyway because they do not want anyone legal.

Talk about making your blood boil, how does that make you feel? Pissed off, right? Now here’s something he shared that my downright scare you:

One of the things we are worried about is they do this in the late summer/fall and do it for 10+ days. Whole year of harvests of fruits/vegetables are left in fields to rot. That will prove a huge point. Or, they do not show up to harvest turkeys in late October/early November and 1/3 of all US homes do not have turkey on Thanksgiving. That will not go unnoticed. These folks know they have the US by the balls because of the food supply. They will use it in a big way at some point. Today is minor I am sure.

So here’s the deal as I see it. Building a wall and going on a massive immigrant round up might make some of us feel good, perhaps a little safer, but the reality on the ground is that it will solve nothing. In fact it would create a massive problem for our economy and when the roundups are done we’ll be sitting around wondering why we can’t have fresh produce turkeys for Thanksgiving. And if the economic realities dont’ sway you, maybe humanitarian concerns will. Again from my friend:

Women get raped trying to make it here. People are left for dead after a mule steals all their money. They are treated like shit when they get here.

We have competitors that do not pay them. This guy has a compound in eastern NC. Lots of mobile homes. They all live there for free. He feeds them for free. He provides clothes. He transports them everywhere. They are all trapped like slaves.

So what’s the answer? My buddy provided some pretty simple action steps earlier:

  • Establish an effective, open worker visa program.
  • Do a decent background check.
  • Give them a real SSN.
  • Allow them to work.
  • Do a mandatory backup withholding of 20% for federal tax and 5% for state.

The result would be the decriminalization of our immigrant labor (black) market, an increase in tax revenues, a decrease in incentives for illegal border crossings which would eliminate any need for a boondoggle of a wall that wouldn’t work anyway.

Of course this all makes a lot of sense so it doesn’t stand a chance in DC.

A Glimmer

One test of a leader is her willingness to do something that may displease her fans/followers if she thinks it’s the right thing to do. Sen. Elizabeth Warren did just that when she voted in favor of Ben Carson for HUD Secretary. Even better, she utilized her Facebook page to explain why. Here’s an excerpt:

Yes, I have serious, deep, profound concerns about Dr. Carson’s inexperience to lead the Department of Housing and Urban Development. Yes, I adamantly disagree with many of the outrageous things that Dr. Carson said during his presidential campaign. Yes, he is not the nominee I wanted.

But “the nominee I wanted” is not the test.

Millions of American families depend on HUD programs, including tens of thousands of families in Massachusetts. For many of them, HUD assistance is the difference between a safe, stable home and life on the street. As someone who has spent a lot of time working on housing policy in this country, my focus is on helping these families – and the countless others who could benefit from a stronger agency.

During the nomination process, I sent Dr. Carson a nine-page letter with detailed questions on a whole range of issues: Section 8 housing assistance; lead exposure in public housing; programs to prevent and end homelessness; programs to help victims of domestic violence; fighting housing discrimination; HUD’s role in preparing for and recovering from natural disasters; and, more broadly, the standards he will use for managing the department, including the steps he will take to protect the rights of LGBT Americans.

Dr. Carson’s answers weren’t perfect. But at his hearing, he committed to track and report on conflicts of interest at the agency. In his written responses to me, he made good, detailed promises, on everything from protecting anti-homelessness programs to enforcing fair housing laws. Promises that – if they’re honored – would help a lot of working families…

If Dr. Carson doesn’t follow through on his commitments, I will be the very first person he hears from – loudly and clearly and frequently. I didn’t hesitate to criticize past HUD Secretaries when they fell short, and I won’t hesitate with Dr. Carson – not for one minute.

That, my friends, is the first glimmer of light I’ve seen during a very dark period in Washington. I’m not saying I agree with her vote, but I am saying I’m glad to see someone finally showing some guts and exhibiting a little leadership.

Gown Towns Thrive

Yesterday I was in a meeting with several people involved with local real estate development and they were asked what the top business priority is for their county (Guilford, NC) going into 2017. Their response, as has been the case for every year in recent memory, was that job growth will continue to be the most critical issue for their businesses. In the course of answering the question quite a few of these people referenced other cities in North Carolina that seem to be thriving – Raleigh, Cary, Charlotte and “even Wilmington” – were the names I remembered. What stuck out, to me, was that no one mentioned Winston-Salem.

Now let me state up front that I’m not prepared to offer any statistics that compare the jobs situation in Winston-Salem to those in Guilford County’s two cities, Greensboro and High Point. But I will say that if you were to poll most people who pay attention to business in the region, they will tell you that Winston-Salem’s economic recovery from the nuclear annihilation that has befallen this region’s traditional economy is further along than its neighbors to the east. For some reason, though, leaders in Greensboro and High Point seem to ignore what’s going on just 30 miles to their west (and in all fairness the reverse is also true), and as a result no one seems to know why there’s a difference between these two very similar neighbors.

A personal theory is that there are a lot of complex and interwoven factors at play here, but one big one is the presence of Wake Forest University in Winston-Salem. The university, and in particular it’s medical school, has been a partner with the city and local companies as the city moved away from it’s traditional tobacco manufacturing base toward a “knowledge economy” with a niche in the area of medical research. Starting over 20 years ago Winston-Salem’s civic and business leaders recognized the need to re-position the city’s economy and Wake Forest played a significant role in those plans. The results are plain to see in the city’s Innovation Quarter, which is booming and is primed for exponential growth over the next 10-15 years.

30 miles to the east Greensboro actually has more schools, including NC A&T and UNCG, but they don’t seem to have had the same effect on the city’s economy. Yet. We’re starting to see much more activity there, including the Union Square Campus that recently opened and is already bearing economic fruit for the city and there’s PLENTY of potential for even more growth. As long as the city’s leaders continue to keep their eye on the ball there’s a very good chance this will happen, as it has in other college towns.

This article in the Wall Street Journal has a lot of data showing how cities in the US that have strong colleges, especially those with research programs, have recovered from the decline in the manufacturing sector over the last two decades. Here’s an excerpt:

A nationwide study by the Brookings Institution for The Wall Street Journal found 16 geographic areas where overall job growth was strong, even though manufacturing employment fell more sharply in those places from 2000 to 2014 than in the U.S. as a whole…

“Better educated places with colleges tend to be more productive and more able to shift out of declining industries into growing ones,” says Mark Muro, a Brookings urban specialist. “Ultimately, cities survive by continually adapting their economies to new technologies, and colleges are central to that.”…

Universities boost more than just highly educated people, says Enrico Moretti, an economics professor at the University of California at Berkeley. The incomes of high-school dropouts in college towns increase by a bigger percentage than those of college graduates over time because demand rises sharply for restaurant workers, construction crews and other less-skilled jobs, he says.

And here’s the money quote as it relates to local economic development efforts:

Places where academics work closely with local employers and development officials can especially benefit. “Universities produce knowledge, and if they have professors who are into patenting and research, it’s like having a ready base of entrepreneurs in the area,” says Harvard University economist Edward Glaeser.

Let’s hope our local leaders take full advantage of what our colleges have to offer, for all of our benefit.

Addressing Homelessness

At the day job I work for a trade association that represents the apartment industry, thus the companies I work with are on the front lines of our nation’s housing situation. You may not be aware of it, but we do indeed have a housing situation that can be best summed up as this: we have too many people who don’t make enough money to pay for the housing that’s available, and/or we don’t have enough housing units that are affordable for people at the bottom of the income scale. Even worse, we have a LOT of people who, thanks to any number of life events, lose their housing and thus end up living in flop houses, cars, tents or under a bridge.

Because apartment owners and managers provide over a third of the housing in the U.S, and a majority of the rental housing, they are often looked to for a solution to the problem of affordability and homelessness. It would be great if they could snap their fingers and solve the problem, but due to the complexity of the issue (static income, increases in the costs of everything from health care to food, lack of housing inventory in general, etc.) this is not something housing providers can solve on their own. That’s not to say that people in the industry aren’t trying, and a perfect example is a woman named Lori Trainer who has been working for years down in Florida to address homelessness in her community. (Here’s a link to a video about some of her work, and I’ll embed it below as well). She just wrote an article for Multifamily Insiders titled The Story Behind the Sign that helps put homelessness in perspective. Here’s an excerpt:

We’ve all seen the homeless person with the sign on the side of the road and when we do, many people think these thoughts.    What the people offering these judgments don’t realize is that the overwhelming majority of people don’t “choose” to be homeless.  In fact, nearly 50% of the homeless in America are working.  Why are they homeless then?  Well, that is the “564,788 person question” (the number of homeless on the street each night according to the National Alliance to End Homelessness).

The causes of homelessness range from sad to tragic.  Job loss, foreclosures, divorce and natural disasters such as the tragedies we are seeing in the Midwest and in Canada are a few examples.  These storm victims certainly didn’t choose to be homeless or do anything wrong but they are indeed homeless now.  If their insurance isn’t perfect, takes a year to work out the details or worse yet, doesn’t pay, what do those families do?  They have lost everything; their homes, belongings and jobs.  They are now homeless…

Another very prevalent and sad demographic in the homeless arena are families.  Approximately 206,268 were identified in the last count. Divorce, domestic violence, death, single parents and low wage workers are all in this category.  Children are resilient but often suffer irreparable damage when forced to live in vehicles, shelters or motels for weeks or months on end.  60 Minutes did a great job highlighting this epidemic:https://youtu.be/L2hzRPLVSm4   (Be sure to have tissues handy!)

Then Lori goes on to point out that there are many, many more people who are just a misstep away from becoming homeless themselves.

Many people think it could never happen to them.  But the truth is that one out of three people are two paychecks away from being homeless.  There are 12 million renters pay more than 50% of their annual income for housing and 37 million people living in poverty in America.  Simple fact, a minimum wage worker cannot support a household and pay rent.  There is a critical shortage of affordable housing in the US and, according to the National Low Income Housing Coalition; approximately 200,000 units are destroyed annually.  That combined with the “aging out” tax credit population and the mile long waiting lists for section 8 vouchers, we have the perfect storm.

One of the initiatives we are working on at the national level in the industry is to identify the programs that industry groups are participating in at the local level around the country. For instance, my employer is working with Partners Ending Homelessness to help match their clients with available apartment units in Guilford County. What we’ve found is that like many things in life, the concept is simple but the implementation is complex. Still, we’ve seen progress and we will continue working because this is an issue that will be with us for the foreseeable future.

That’s just one initiative in one community, but that’s the kind of effort we’re going to need in every community around the country to address homelessness, because quite frankly this is not an issue that can be solved from Washington. What our national leadership CAN do is address the big picture issues that underlie homelessness, including:

  • An economy that is not providing adequate income for average workers
  • A health care “system” that bankrupts some, and financially cripples many
  • A crumbling infrastructure that threatens all of us
  • A byzantine regulatory structure (think HUD & EPA) that makes affordable housing development a challenge

Another chief culprit is an under-performing, and some would say under-valued, education system, but that’s not just a Washington issue so let’s not throw it entirely on them. The point is that homelessness is the most severe symptom of an ailing nation. If we are truly measured by how we treat the least of us, then as a nation and a community we have a lot we need to do to heal ourselves.

Here’s the video about the effort in Florida that Lori’s been a big part of: