Issue 14 -- April 28th, 2004 -- Local Government Edition

Plugged:  Kudos to The Nation for talking up ALICE and describing our mission perfectly: “It isn't sexy. In fact, it's not something that most people even notice. But local government in thousands of counties, cities and towns--with more than 490,000 elected officials distributed across them--have primary responsibility for many of the issues most important to progressives . . . ”  Click here to see more ALICE in the news.

High Road: Repealing Refund Anticipation Loans (RALs)

Refund Anticipation Loans (RALs) are short term, high cost loans secured by a consumer’s tax refund. Instead of waiting to receive the refunds, RAL customers borrow against part or all of their expected tax return. RALs carry triple digit Annual Percentage Rates (APRs) of about 70% to over 700%.

In over 30 states, ACORN members protested Jackson Hewitt for its aggressive and deceptive sales of rip off RALs and other overpriced bank products. Last year, Jackson Hewitt generated revenues of $48 million from their RALs and other abusive bank products.  They received 28% of their revenue from these predatory practices, and almost two-thirds of Jackson Hewitt customers were sold on RALs.

 In St. Louis, the City passed an Anti-RAL Resolution last month. The Board of Aldermen unanimously condemned high-cost RALs and called on the Missouri State Attorney General to “carefully scrutinize” the practices of companies selling RALs. The resolution was sponsored by the President of the Board of Aldermen, who also committed to taking action at the city level to fight abusive practices associated with RALs. St. Louis now joins Philadelphia, which recently passed a similar resolution in the City Council, among cities decrying RALs.

In Nassau County, New York, Lawmakers considered a measure by Craig Johnson (D-Port Washington) that will require that tax preparers disclose all fees and charges for refund anticipation loans.

*       Click here to see reports exposing RALs.

*       Click here to see a Model Refund Anticipation Loan Ordinance.

*       Click here to see more about predatory lending.

Low Road: Diebold Disenfranchisement of Voters

Touch-screen voting used in four California counties has so many potential problems it should be banned from use in the November presidential election, a state advisory panel said Thursday. The disenfranchisement occurred in San Diego County, which has 10,200 of the machines, when batteries operating the encoders drained despite being in the "off'' position.  California's action may influence other states, like Ohio, that are considering purchases of Diebold equipment. New lawyer memos warn that the voting-machine company may have violated state law.  Click here to see more on HAVA best practices.

Trail Blazers in Local Government

Gay Economic Development is taking off in Provincetown, Massachusetts, where locals are gearing up to make money off same-sex weddings.  They’re not alone. Richard Florida argues that tolerance of gays is important to sustained economic growth and the high-paying jobsOakland seeks to promote economic development through establishment of gay and lesbian district, with the Contra Costa Times reporting Councilman Danny Wan is pushing a gay-centered neighborhood. In Maine, people are wondering if gay marriage really is an economic development strategy.  In Asbury Park, N.J., an influx of homosexual homeowners has become part of an "economic engine" helping the comeback of this seaside city.  Even Utah considers gay tolerance might be good for high-tech, citing research showing the tech economy is strongest in cities with thriving gay communities.  See more urban economic development strategies at ALICE.

Collecting Corporate Taxes in Palm Beach County, FL:  Last week, a federal judge dismissed the Kmart lawsuit to reduce the Company’s taxes owed to hundreds of U.S. municipalities.  In Florida alone, Kmart has yet to pay about $3.5-million in tangible property taxes it owes for 2002.  In many cases, this means county governments get stuck with unpaid property taxes on bankrupted properties.  Now a county tax collector is leading a coalition to get payment.  To see more about stopping big boxes, click here.

Protecting Tenants in San Diego, CA: SD Passes Just Cause Eviction Ordinance.  The new law protects longtime tenants’ rights, covering those who have lived in a rental unit for at least two years.  It requires landlords to prove that tenants have violated one of ten “just cause” reasons outlined in the ordinance in order to evict them.  Click here to see more on the ordinance, or check out the affordable housing section at ALICE.

City Funding in Iowa State, where 'Super CAT' purrs back to life.  The Legislature approved a $72 million plan to help cities and counties with the cost of museums, recreation centers and other attractions intended to improve the quality of life in Iowa.  Click here to see more about the creative class.

Throwing Mudd in Oklahoma & Arkansas:  Sludge plan gets approval of panel.  The scenic rivers commission approved a resolution last week that asks cities to stop applying sludge to farmland or putting it in landfills in the Illinois River watershed.  Click here to see more about CAFO zoning.

Educating Youth in Howard County, MD:  County Executive James Robey announced local government is targeting youth with its on-line feature “KIDS COUNTY” to help children better understand local county government. The site premiered on April 18th in observance of National County Government Week.

Energy Efficiency in Polk County, IA:  Making energy efficiency a leading priority.  New lighting alone helped avoid $6,000 in energy costs every year, and additional insulation was another $5,000 a year savings.  An ENERGY STAR roof membrane saved over $500 annually in cooling costs.  See more on energy efficiency at ALICE.

Striking for health care in Madison, WI:  Pickets March as TAs strike.  Just outside ALICE’s office, teaching assistants insist it would cost less to give health care and lower raises. It is illegal for public employees in Wisconsin to strike, but "I prefer to think of it as civil disobedience," said strike captain Kathy Rohde. This semester's TA strike is the first in 24 years.  Click here to see more on metro worker strategies from ALICE.

Local News You Can Use

Living Wage in NY:  Taxpayers shouldn't be asked to subsidize companies that make huge profits by impoverishing their workers, said Beth shulman. "We can have an impact on whether companies take the high road or the low road.” Thirty million working Americans (about one in four) earn poverty wages of $8.70 an hour or less, but only 7 percent of them are teens.  Most are nursing aides, bank tellers, ambulance drivers and child care workers.  Click here for more from OECD and the Labor-Religion Coalition conference.  Click here to see more on living wage laws.

Gambling with Ohio Cities.  Legislators are talking up a plan to put video slot machines at racetracks, and are giving cities a chance to install casinos. Many argue gambling isn’t enough to solve Ohio's budget problems.  Find out how the gambling industry does more damage to the American economy each year than Hurricane Andrew in the form of crime, corruption, addiction and their attending social impacts.

Not-so-smart Growth in Colorado.  The Senate is poised to rein in cities' power to take land when state senators agreed to curtail the power of local governments to take property from private owners. Click here to see more on takings from SERC.  Related Story: Colorado Cities Thwart Growth Controls.  Click here to see model smart growth laws.

Dirty Air Everywhere.  Last week, the EPA reported, "About 159 million people, more than half the U.S. population, live in counties singled out as having dirty air or contributing to air problems in neighboring communities." While the EPA "said regions in noncompliance with the new ozone standards may have to impose new emission controls on industrial plants," the declaration was largely symbolic: The Bush Administration in 2002 gutted clean air laws to permit owners of the oldest and dirtiest power plants, oil refineries and factories to significantly increase air pollution without having to clean up.  Click here to see more on cleaning up dirty power plants.

Good News for Green Bay:  Study finds untapped economic opportunity in Northeastern Wisconsin.  “Rural Wisconsin has more economic potential than many residents realize.” That’s the most surprising finding of an ongoing economic opportunity study of the 17-county region.  Click here for more Information about the study.

High Road Reports and Resources

CPA’s 2004 Briefing Book -- The Progressive Platform for the States -- covers 90 topics and lays out the most innovative solutions being debated and enacted in the states.  For more information or to obtain a copy, contact info@cfpa.org.

In response to shifting population distributions, cities need to build new coalitions to effectively achieve their legislative goals within state legislatures.  The Brookings Center on Urban and Metropolitan Policy put out this New Report showing how.

Oregon's "double majority" law for property tax levies gives non-voters a voice in elections, according to a study by the League of Oregon Cities.  The study, entitled Double Majority Allows Non-Votes to Determine Elections, shows how the turnout requirement has skewed the voting system.

In "NAFTA At Ten:  The Recount," CEPR describes the serious flaws in the World Bank's study of the ten year track record of the North American Free Trade Agreement (NAFTA). To see how trade laws can impact local government, click here.

This new report by CBPP demonstrates that state and local government continues to shrink as states struggle to deal with the lingering fiscal crisis.  Despite the turnaround in the national economy, many states continue to face gaps in their fiscal year 2005 budgets.  Click here to see related reports on local government fiscal crisis.

“Separate and Unequal 2004" is ACORN's annual study on subprime lending, a practice which continues to disproportionately plague low-income people and minorities. The study found that African Americans who refinanced were 4.1 times more likely to receive a subprime loan than white borrowers, while Latinos were 2.5 times more likely.  Click here to see more reports on race in America.

The Center on Wisconsin Strategy (COWS) released a new report, The Impact of Budget Cuts on Wisconsin's Job Centers: Staff Losses and Service Declines. Using survey data collected for 71 of Wisconsin's 79 Job Centers, COWS found that funding cuts are having a significant -- in some cases severe -- impact on staffing levels and service delivery at centers throughout the state. Click here for the press release.

Conferences

Activists from over 25 national organizations are gathering  in Washington, DC on June 4, 5 and 6 to kick off a national progressive movement to TAKE BACK AMERICA.  Join John Sweeney, Jesse Jackson, Rep. Jan Schakowsky, Julian Bond, Gerald McEntee and Kim Gandy.

Workforce Innovations 2004: Fueling America's Economic Engine will be held in San Antonio, Texas from July 19-21, 2004. Sponsored by the U.S. Department of Labor and the National Association of Workforce Boards, this annual conference showcases the latest funding opportunities, federal policy developments, and innovative practices from the world of workforce investment.  For more visit www.WorkforceInnovations.org

Bringing Sustainability to Your Community Workshop will be held by in Madison, Wisconsin by Sustain Dane on Thursday, May 6th.  For more, click here.

ALICE offers best practices in high-wage, low-waste, worker-friendly, publicly-accountable  local policy.  Our website serves as a collaborative clearinghouse for local elected officials, activists, organizations, and issue experts who want a map and a vehicle to take the high road.  If you have innovative policy you'd like to share with the rest of the country, send them to our National Director at andy@highroadnow.org

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