NEWS: Center awards environmental fellowship

CHARLESTON, S.C. – The Center for a Better South today announced it has awarded its second policy fellowship to Arkansas law student L. Edward Moore of Little Rock.

The $20,000 fellowship will allow Moore to produce a detailed series of policy initiatives that outline progressive environmental policy ideas for Southern states and local governments. The book of ideas, which is expected to be published in the spring of 2007, also will provide a series of tips and ideas of things individuals can do to conserve energy and become more environmentally friendly in their everyday lives.

“Thanks to Eddy’s diverse national policy experience and Southern background, we will offer thinking leaders in the South with some great ideas on how they can make a real difference environmentally as the region grows,” said Center president Andy Brack. “This practical study follows on the heels of our just-released book on progressive tax reform, which can be downloaded for free online.” (http://www.bettersouth.org/doingbetter).

About Eddy Moore

Moore, a 40-year-old native of Spartanburg, S.C, served in key policy roles in Washington and California before starting law school at the University of Arkansas School of Law at Little Rock He expects to graduate in the spring of 2008.

From 2000 to 2005, Moore was a senior project manager and transportation director for the Planning and Conservation League Foundation, a chapter of the National Wildlife Federation. At the League, Moore helped implement a legal settlement on key water transfers and diversion, co-managed a statewide ballot initiative campaign to fund land preservation and public transportation; spearheaded a successful statewide effort to enact solar and other energy incentives; and led a multi-organizational effort to study an alternate route for a high-speed rail project to avoid destruction of major wilderness areas.

Prior to his work in California, Moore served as a legislative assistant for U.S. Sen. Ernest F. Hollings in the areas of education, health, civil rights and transportation. He holds a master’s degree in U.S. history from American University and a bachelor’s degree with honors from Yale University.

• More: Contact Andy Brack, 843.670.3996

IN MEMORIAM: Margaret Rose Sanford, 1918-2006

Margaret Rose Sanford, wife of the late Sen. Terry Sanford, died Saturday at the age of 88.

She was known as a political force in her own right who helped propel Mr. Sanford to become a seminal figure in the history of the state of North Carolina and the South.

Her husband, Terry Sanford, was one of the inspirations for the development of the Center for a Better South.

Margaret Rose Sanford: Rest in peace.

• For a direct link to her obituary, see http://www.newsobserver.com/712/story/480089.html

Mass Transit in Southern Metros

The rapid and relatively recent growth in the size of Southern metros has made mass transit an important issue across the region. Attempts at building mass transit networks, particularly light rail systems, are complicated, expensive undertakings that typically raise sticky questions around sustainable development, public finance, community building, and intergovernmental relations.

A story in today's issue of the News & Observer of Raleigh compares the experiences of North Carolina's two largest metros, Raleigh-Durham and Charlotte, in building light rail systems. Despite years of planning, Raleigh-Durham's system appears stopped in its tracks now that it is clear that federal funding for the project will not be available. In contrast, Charlotte's first train line is under construction and slated to open in 2007.

The story attributes Charlotte's success to a variety of factors: a favorable geography, the commitment of political and business leaders, the involvement of fewer local governments, accurate financial and ridership estimates and good timing. Consequently, Southern leaders interested in mass transit should look to Charlotte for lessons that might be applicable to other communities across the region.

South Carolina in the 2008 Presidential Primaries

The State covers the recent re-shuffling of early primary and caucus contests in the Democratic presidential primaries, which will make South Carolina the fourth contest and the first in the South.

South Carolina will be the center of the political universe the next two years as the 2008 presidential campaign heats up.
The state got a huge boost two weekends ago when the Democratic National Committee’s rules and bylaws panel recommended the party move South Carolina higher in the pecking order of 2008 presidential primaries.

This time South Carolina is the only primary that day, as opposed to 2004 where several states held their primaries the same day.

More than a year from the first primary, prospective candidates from both parties have frequented South Carolina (some as many as four times).

Southern States at Opposite Ends of Forbes.com Poll

Forbs.com recently released a new poll outlining the best states in the nation for business. The top three states are all in the South; Virginia, Texas, and North Carolina.

The individual metrics Virginia scored well in included taxes, where it ranked seventh, at 15% below the national average according to West Chester, Pa., research firm Moody's Economy.com. Pollina Corporate Real Estate, a commercial real estate consulting firm, examined each state's incentive programs for Forbes.com and found Virginia's to be second best behind South Carolina. That ranking combined with its solid tort climate propelled Virginia to the top spot in the regulatory environment category.

North Carolina’s higher education system, growth potential, low labor costs and business incentive programs were cited a strengths. While three southern states top the list, others sit at the bottom.

Mississippi, West Virginia and 50th-ranked Louisiana bring up the rear of the ranking (to be fair, Mississippi and Louisiana were hurt by the devastation that Hurricane Katrina inflicted). All three states suffer from weak labor pools and growth prospects as well as a poor quality-of-life ranking.

While Southern states all face similar problems, we should remember that some have not felt the Southern population and economic surge of recent years. Progressives across the South should look towards their neighbors for insights both good and bad.

NY Times: One year after Katrina

The New York Times this week is running a series of compelling, interesting stories that look back at the aftermath of Hurricane Katrina, which struck a year ago. Among the stories:

• Today's front page story looks at a New Orleans family that moved to Atlanta and decided to stay because of better financial opportunities and a higher standard of living.
  
  
• A Wednesday story highlighted the hard work and persistence of a man who has rebuilt his home among ruins near where a major levee broke in New Orleans.
  
  
• Another Wednesday story offered a look at how a classic restaurant is struggling to reopen.
  
  
• A Monday story focuses on the rough time educators were having in reopening schools.

TN, GA papers offer Better South op-eds

On Aug. 23, the Athens (GA) Banner-Herald published an op-ed by Center for a Better South President Andy Brack that called for progressive tax reform across the region. A similar piece ran Aug. 17 in The (Memphis, TN) Commercial Appeal.

From the Athens paper:

Modernizing state tax codes can make them fairer and more representative of today's complex and rapidly changing economy. In June, state Rep. Larry O'Neal, the Warner Robins Republican who chairs the state Ways and Means Committee, acknowledged in the Augusta Chronicle that taking a look at some of the book's ideas, such as reducing sales tax exemptions for special interests or modernizing income brackets that have been untouched since 1937, could make taxes fairer for many Georgians.

If we want to maintain our republican system of democratic government, and if we want to ensure all Southerners can pursue the freedoms they're guaranteed, we have to ensure government's framework is strong enough to make those things happen. Taking a long look at how we raise revenues and trying to make those ways fairer will make the South stronger. The time is now.

From the Memphis paper:

Tennessee is notable for modernization efforts that require consumers to pay sales taxes on 67 services, 10 more than the national average, according to the Federation of Tax Administrators. Taxing services shows the state recognizes the shift from the goods to service economy.

But more reforms need to be made. As one of only two states in the South without a broad-based personal income tax, Tennessee relies too heavily on sales taxes, which are regressive. In other words, when sales taxes are high, lower-income people pay a larger share of their incomes in these taxes than others. In Tennessee, a small income tax would increase the tax system's progressivity and make taxes fairer to all. In turn, the state could lower the sales tax rate, which again would boost tax fairness.

• Get the Doing Better book on progressive tax reform.
  

Georgia analysts develop special budget report

The Georgia Budget and Policy Center - - the same folks who wrote the Center's Doing Better book on progressive tax reform - - have developed a special budget report that extends the ideas in the Doing Better book for Georgia.

Called "Doing Better: Fair and Adequate Tax Reform in Georgia," the 12-page white paper discusses and quantifies various tax reform options that would improve the fairness and adequacy of Georgia's tax system. Many of the ideas are outlined in the Center's book in more detail. One idea not discussed in the Center's report but mentioned in the white paper is a consideration to revive the estate tax.

New Orleans, One Year Later

This week, The New Yorker published a major story about the rebuilding of New Orleans. Written by Dan Baum and entitled "The Lost Year," the piece explores the recovery process from several points of view -- those of elected officials, business leaders and city residents, especially residents of the Lower Ninth Ward.

The article portrays the rebuilding process as a missed opportunity. Despite all the time and attention given to the Crescent City's recovery, many of the key questions and issues were not, and will not, be resolved. Any progress that has been made, argues the article, has occurred in a haphazard fashion driven by the desire of people to regain their old lives and old communities.

North Carolina Praised for Predatory Lending Policy

A new report released by the Department of Defense praises North Carolina as one of the most effective states in protecting military personnel from predatory lending practices.

In 2001, North Carolina became one of a few states to prohibit payday lending companies, the report said.

Predatory lending does not just affect members of the military. Payday lending companies frequently target people of lower income living paycheck-to-paycheck.

Predatory lending includes practices such as payday loans, car loans, rent-to-own programs and other temporary loans that can charge service members triple-digit annual percentage rates.

All states can do better in preventing predatory lending abuses. The report’s recommendations are not new to the predatory lending issue, but should be repeated and noted.

The report recommends that Congress and individual states put caps on annual percentage rates, require more disclosure, force lenders to consider borrowers' ability to pay and allow service members legal recourse in disputed cases.

States vary widely on welfare reform

A new report from the Urban Institute highlights great disparities in welfare policies among American states. But in the South, maximum benefit levels were below the rest of the nation in most states, according to the Southern Growth Policies Board. In fact, the report showed only Florida had a monthly benefit above $300 for a family of three with no income.

Other recent findings by the Urban Institute on welfare reform included:

Any statement about welfare is no longer universally true across the country.

A work-support system supplements welfare benefits in lifting families out of poverty.

Results still mixed on welfare reform policies and poverty.

Child care subsidy system faces challenges in the welfare-to-work push.

Welfare policies help determine outcomes for children.

Easley's Electoral Success Profiled

Gov. Mike Easley of North Carolina is the subject of a flattering profile in the current issue of Blueprint, a political magazine published by the Democratic Leadership Council. The article appears as part of a series of articles discussing Democratic politicians who have succeeded in "red" states like North Carolina.

While Tar Heel voters gave President Bush a sizable victory in 2004, they also re-elected Easley by a substantial margin. Moreover, Easley received considerable support from the very communities and voting blocs that preferred Bush over the Democratic presidential nominee, Sen. John Kerry. Easley outperformed Kerry in North Carolina's urban, rural and -- most importantly -- suburban communities, as well as among white men.

The profile attributes Easley's success to a variety of factors: his willingness to campaign in GOP areas, his centrist record and personal traits, particularly his interest in speaking authentically to ordinary voters.

Column Highlights Need For EITC

Supporting Idea 4 from the Center’s new tax policy book Doing Better: Progressive Tax Reform for the American South, Todd Cherry, an associate professor of economics at Appalachian State University wrote an opinion piece in the Raleigh News and Observer in favor of a state Earned Income Tax Credit. The impetus for the article was the North Carolina legislature’s approval of increasing the minimum wage by $1. The article argues that an increased minimum wage does not always help those for which the increase was intended.

Keep in mind the goal of such legislation is to help working North Carolinians who have too little money to make ends meet. Raising the minimum wage helps too few of these people and misdirects much of the assistance to those not in need. The raise will benefit about 135,000 people, but more than half of them are teenagers and part-time workers. This means that half of the assistance from the raise goes to teenagers and part-time workers, the vast majority living in households well above the poverty line. It also means that well over half of the working poor in North Carolina do not benefit from the raise.

The article is straightforward and clear. Cherry highlights the benefits of the EITC over a minimum wage increase.

Raising the minimum wage also unfairly places the burden of poverty assistance on a subgroup of businesses and their customers. The raise is a hidden tax that disproportionately burdens these individuals who are often struggling themselves. This hidden tax can be substantial. An increase of $1 per hour translates to about $10,000 of additional annual labor costs for businesses with five full-time workers earning minimum wage, and a considerable part of that amount will inevitably be transferred to the customers.
The EITC reaches more people in need by not limiting assistance to those earning at or near minimum wage. It also provides more appropriate levels of assistance because it is proportionate to need. And the EITC distinguishes the 16-year-old from an upper-middle-class family who's working at the mall for extra spending money and the 33-year-old single parent working alongside that teenager.

The EITC spreads the burden of poverty assistance more broadly and fairly because assistance is funded by all taxpayers through income and sales taxes, and therefore the burden is assigned progressively through income and spending levels. With such broad support, a relatively small contribution from each person would lead to much more help to many more people.

It is apparent that the Center’s new tax policy book is getting attention throughout the South. This article supports one of its main ideas and implies, like the center, that Southern states can be more effective with low-income tax relief.

Alabama paper lauds eliminating exemptions

The Anniston (AL) Star ran a great column by Prof. Hardy Jackson on July 30 about the ideas in the Doing South study that we thought had been posted but had not. So without further adieu, here's a pearl on the value of eliminating exemptions from among the many thoughtful gems in Jackson's commentary:

One of the important things about this book is that instead of pounding readers with theories and plans, it carefully lays out the problems and points to alternatives that might or might not work in a particular state. Solutions are left to those "thinking leaders" for whom the book is intended.

What [author Sarah Beth] Coffey suggests is that legislatures should "broaden the sales tax base" by eliminating exemptions that serve targeted audiences rather than the needs of the state as a whole. In other words, cut out special-interest sales tax breaks so that more sales are taxed. This would give states additional resources with which to work and enable legislators to lower the tax on most sales so that the system is fairer. Thus, while some would find themselves paying more taxes, the majority would see sales taxes go down and state services improve.

Jackson paper profiles Better South ideas

In a profile of the Center for a Better South's Doing Better book and ideas today, the Jackson (MS) Clarion-Ledger's Sid Salter noted that progressive tax reform proposals are key issues for Southern states:

Derrick Johnson, state president of the Mississippi chapter of the NAACP, hailed the [Center's] report's proposals for state tax system reforms as "long overdue."

"Mississippi has one of the most regressive tax structures in the nation," said Johnson. "The current system overwhelmingly burdens the poor while providing loopholes for the more affluent. Regressive taxation also hampers the state from providing quality public education and other public services that benefit the most needy, so it's a double tragedy."

"This new study is valuable in that I think not only Mississippi needs to look at substantial tax reforms, but most other Southern states as well are looking for ways to shift the burden from the poorest to those more able to pay," said [Dr. Marty] Wiseman, [director of the Stennis Institute of Government at Mississippi State University.]

In a related op-ed column, freelance writer Lynn Evans said the kind of reforms outlined by the Center could make Mississippi more competitive in the global economy:

Their findings echo those of other tax reform studies: Not only do Southern states have more people living in poverty than other areas of the country, but the tax burden in these states also falls disproportionately on the poorest citizens.

Ethics and Lobbying Reform for North Carolina

Today's Charlotte Observer covers a bill signed by Gov. Mike Easley (D-NC) that revamps ethics oversight for the three branches of government and restricts transactions between lobbyists and lawmakers.

The bill ends the practice of lobbyists giving legislators dinners, campaign donations and other perks.
It also creates a broader state ethics commission that can investigate all three branches of government, although its probes would largely be hidden from the public and referred to other panels when judges and legislators are involved.

Speaker of the North Carolina House of Representatives Jim Black is currently under fire for questionable campagin contributions he received coinciding with the passage of an education lottery.

North Carolina Creates Innocence Panel

This week, North Carolina Governor Mike Easley signed into law a measure that will make the appeals process easier for potentially innocent felons. The governor approved the creation of a state panel to evaluate felons' innocence claims.

The commission's proponents say it will address inadequacy in the current criminal appeals process. The panel will focus on determining whether a defendant received a fair trial as opposed to evaluating guilt or innocence. Several North Carolina inmates who were later exonerated had to file as many as 11 appeals before they were freed.

It is notable that this measure, the first of its kind in the nation, originated in the South. The panel and process is something that the rest of the nation, especially the South, should take notice. Currently, every Southern state invokes the death penalty.

“As a state that exacts the ultimate punishment, we should continue to ensure that we have the ultimate fairness in the review of our cases," Easley said in a statement.

Alabama leader supports Better South book

Dr. Randy Brinson, founder of the influential Christian evangelical voter participation group called Redeem the Vote, gave his support last month to the Center for a Better South's new book that urges state lawmakers to take a good hard look at making taxes fairer.

In an op-ed in the Mobile (AL) Press-Register, Brinson encouraged implementation of refundable earned income tax credits as outlined in the book. The tool, he agreed, would help lift some working poor folks out of poverty. And then he added something else pretty interesting:

Furthermore, state income tax credits could be used to further their education, similar to the prepaid college tuition program, or used to purchase private insurance or health savings accounts. The idea would be to move low-income workers into better jobs and ensure better health for them and their families.

Hats off to Redeem the Vote for its support!