Once Again America Seeks the Answer to the Labor Question

LABOR POLITICS-“The labor question, is, and for a long time must be, the paramount economic question in this country.” — Justice Louis Brandeis, 1904 

The labor question is back. After World War II, it seemed to many that widespread unionization and collective bargaining had made sure that the people who did the work in this country were getting a fair share of the wealth they created, and that through their unions working people had a substantial voice in the way our country was governed. 

But we live in a different world today. Only 11 percent of all American workers belong to a union, and less than 7 percent of private-sector workers are organized. Workers’ incomes have been stagnant for decades, and whatever gains have occurred in family income have gone entirely to the top of the wage structure, driving runaway inequality. At the same time, working people feel increasingly alienated from and betrayed by our political system. 

It wasn’t so long ago that very serious people denied that the economy was failing working people in America. But overwhelming data on inequality and wage stagnation marshalled by such economists as Emmanuel Saez, Thomas Piketty and the team at the Economic Policy Institute have changed the narrative. Now defenders of the status quo of runaway inequality have shifted from saying there isn’t a problem to saying that, while there is a problem, NOTHING CAN BE DONE. The new line from the very serious people is that runaway inequality and stagnant wages are somehow the result of the unstoppable natural forces of technological change and globalization. 

There are two reasons to be suspicious of those who move so easily from denial to despair. First, basic economic theory tells us that when productivity rises, wages should rise as well. Technological progress should make the average person better off, not worse off. Second, globalization and technological change are not confined to English-speaking countries — yet since 1980 the United States and the United Kingdom have been total outliers in terms of wage stagnation and inequality among advanced societies. 

The data strongly supports what the American people say that they believe in poll after poll — that elites rigged the economic rules in our society to benefit themselves. That the United States adopted public policies — labor laws, trade rules, fiscal and monetary policies, immigration policies and tax policies — that ensured technological progress and globalization would benefit only a small number of Americans. 

The most dangerous moment for a democracy is if the people who do the work conclude they live in a democracy in name only. 

And so the labor question is back, and that question is: How can the people who do the work in America receive a fair share of the wealth we create, and how can our voices be heard in our politics, our society and our culture? 

The reason this question was so important to Justice Brandeis and at least as important to America today is that when working people are economically exploited and socially and politically marginalized, our economy and our society do not work. Our economy stagnates, our competitive position deteriorates and our politics become prey to purveyors of extremism and hate. And the most dangerous moment for a democracy is if the people who do the work conclude they live in a democracy in name only, where the ballot box is just window dressing for a process controlled by the rich. 

The labor question pervades our public policy debates — but if you don’t listen carefully, you might miss it. When you hear economists bemoan “secular stagnation” and “demand shortfalls,” they are talking about the labor question. They are talking about stagnant wages and loss of worker bargaining power. 

When you hear business leaders and engineers talk about the crisis in infrastructure and education — about how no one can find the political will to raise the taxes to fund the investments we must make to be competitive — they may not know it but they are talking about the labor question. Throughout modern history, in every successful society, organized workers provide the political power to drive public investment. 

When you hear business leaders complain they can’t find skilled workers, and can’t afford to train their workforces, they, too, are talking about the labor question. Individual employers never train their workers adequately — it’s not economically rational to do it. Where workers are organized, together with their employers they can solve the collective action problem of training. 

That’s how it still works today in highly unionized parts of our economy, and that’s how it works in countries that compete with us like Germany. But increasingly, as private-sector union density falls, adequate training is the exception rather than the rule. 

When you hear concern from all quarters about rising extremism and hate, you are hearing a conversation about the labor question. 

In America, the labor question has always been intertwined with issues of race and gender. Sometimes people talk as if the working class is made up of white men. The reality is that the majority of people in jobs paying less than the median wage are women and people of color, and the economic devastation in deindustrialized predominantly African-American communities like St. Louis and Baltimore is part of the labor question, as is the denial of rights to undocumented workers.

And so when you hear concern from all quarters about rising extremism and hate, you are hearing a conversation about the labor question. 

When working people organize around their economic interests, and when public policy supports working people having an independent voice in our politics and our society — then working people themselves can ensure we are not left behind, that our issues are heard and addressed.

When we are marginalized, ignored and silenced, some of us become desperate, like anyone else would. Some of us give up on our democratic system, and some of us are tempted to turn on each other. The labor question is not just economics. Solving it is fundamental to the health of our democracy. 

The 20th century was called the “American Century” fundamentally because we addressed the labor question democratically and we did it first — propelling the US out of the Great Depression and enabling us to be the Arsenal of Democracy.  Our 20th-century economic competitors were torn apart by the social conflicts associated with the labor question, and they became the battlefields of World War II. 

In the 21st-century global economy, those countries that can solve the labor question will be able to sustain broad-based prosperity. Those that do not will face social instability and national decline.

The labor question has an answer. When the people who do the work in our society have collective voice through unions — democratically run workplace organizations — then working people have a way of being heard when the big decisions get made in the workplace and in public life. 

But the labor question has many false answers as well. In this presidential election year of 2016, all the false answers are on display — racism, faith in the benevolence of the super rich, and appeals to return to the social order of the past. And so are the real answers — standing up to those who would divide us, bringing working people together, strengthening worker bargaining power and worker voice, and using that voice and that power to drive investment in our nation’s future. The choice could not be clearer or more urgent.

 

(Damon A. Silvers is the Director of Policy and Special Counsel for the AFL-CIO. Published first at BillMoyers.com. This was also published by CommonDreams.org.) Prepped for CityWatch by Linda Abrams.

Los Angeles Needs a New Mayor

CORRUPTION WATCH-Eric Michael Garcetti is the City of Los Angeles’ current mayor. Garcetti was first inflicted upon us in 2001, as councilmember for Hollywood’s Council District 13. Starting in 2006, Garcetti was President of the City Council until 2012, when he stepped down to run for Mayor. Thus, Eric Garcetti is LA’s longest serving elected official. 

When Garcetti arrived, Los Angeles was progressive and full of hope. It was the #1 destination city in the entire nation. Now, Los Angeles is more than half way through its second decade of decline. We have gone from the most desirable urban place to live to the least desirable. 

For some reason, Angelenos fail to understand the connection between massive corruption and LA's shrinking influence in American life. They are oblivious to the fact that corruption drives away business. When businesses leave, we lose workers; and with the departure of professional and middle class business workers, our tax base suffers. 

Employers know what is happening, even though Angelenos are sleep walking through life. One reason for the different perceptions is that most employers look at mathematics when making decisions. Angelenos, on the other hand, look at traffic. If traffic is bearable, then things must be OK. 

Angelenos who realize that LA has the worse traffic -- not only in America but also Europe -- lull themselves into complacency thinking that more subways will solve traffic congestion. 

What Angelenos do not realize is that traffic improves when people move away and the type of people we lose is very important. Los Angeles no longer attracts the smartest and brightest in the leading sectors of the economy. We have fallen to #60. Our low ranking is not due just to our density and high cost of living. San Francisco places #2 and it, too, is dense with a high cost of living. New York ranks #14 and Chicago is #43. Yes, with its cold, wind, snow, and incessant murders, Chicago still beats out LA. Check out this recent article on NewGeography.com by Joel Kotkin and Michael Shires. 

When employers look at an urban area, they assess a multitude of factors but they always project decades ahead. They do not want to relocate again in 10 to 20 years. They seek stability and permanence. They want a place to "bet on" and Los Angeles is a bad bet! 

We have a mayor and city council that wage war on the vital facets of the good life which all significant businesses need in order to attract and retain highly qualified employers: (1) decent single family homes and (3) decent schools. 

After fifteen years of Garcetti, we need a new mayor. The next mayoral election is March 2017, which in political life is just around the corner. At that time, the Neighborhood Integrity Initiative will also be on the ballot so that we can all focus on Garcetti’s manic obsession to Manhattanize Los Angeles. 

But who could run? Yikes! There is no one. Here are three who have bellied up to the bar. 

First, we have Michael Schwartz. Ho hum, there is really nothing bad to say about Michael. 

Second, we have YJ Draiman, who is a curious person. His son, David’s, father was born in Israel, but apparently YJ was not. How does that work? Enough with all the closets already. Oh yes, here’s what YJ says about himself: “YJ Draiman is a former Real Estate developer with over 20 years’ experience; he has worked extensively in gentrifying neighborhoods.” Wow, with the NII and YI on the same ballot, this should make the election interesting. (NII = Neighborhood Integrity Initiative to slow down development corruptionism in LA.) 

Third running is Steve Barr, who has apparently confused the City Council with the School Board. Why? 

The one thing these three candidates have in common is that none of them will be LA’s next mayor. That leaves us searching the LA City Council for someone. 

Bonin? A nice guy who also believes that LA should become Manhattan and that an annual subway deficit of $8 billion would be a good idea. He wants more bike lanes in major thoroughfares to maximize the air pollution that cyclists inhale and to further aggravate traffic congestion. 

Koretz? He’s been around and has too much baggage. 

Krekorian? He tore down Marilyn Monroe’s home rather than let it be moved to a safe place. He’s dead meat. 

What could a new mayor do? 

Facing the LA City Council which operates as a criminal enterprise in violation of Penal Code § 86, the mayor has very little power. He can veto projects but with “unanimous voting,” anything can be passed. He can appoint certain department heads, but developers will still purchase bogus EIRs which the City Council will approve. 

The only real power a new mayor would have is what Teddy Roosevelt used so well -- the bully pulpit. A new mayor would have the platform to advocate for reform. The City Council structure needs to be re-done so that vote trading is structurally impossible. The mayor could place “Quality of Life” as Los Angeles’ top priority rather than its current goal: the City’s Manhattanization and developers’ profits. 

No mayoral candidate is thinking of making Quality of Life even a factor in the City’s decisions and virtually no Angeleno is bold enough to set forth the radical idea that people matter. Instead, there is near universal agreement that we need to destroy the homes of poor people and give billions of dollars to real estate developers. Welcome to favela LA.

(Richard Lee Abrams is a Los Angeles attorney. He can be reached at: [email protected]. Abrams views are his own and do not necessarily reflect the views of CityWatch.) Edited for CityWatch by Linda Abrams. -cw

It’s Time to End LA’s Secret Meetings: What Do City Council Members and LA’s County Supervisors Have to Hide?

THE BROWN ACT IS WRONG -- According to the Congressional Research Service, the U.S. House of Representatives has met behind closed doors four times during the past 186 years—in 1979, 1980, 1983, and 2008.  That’s about one closed session per half-century. By contrast, the LA City Council and the LA County Board of Supervisors average about one closed session per week. 

Since August 1st, the City Council has placed nineteen items on its closed-session agenda. This coming week the Board of Supervisors will meet behind closed doors three times in a 24 hour period. Why all the secrecy?  

Congress managed to keep its debate open during both World Wars. All it takes to send our local leaders into the bunker is an update from their real estate agent. Why? Because the Brown Act permits them to do so? 

The truth is that the Brown Act is wrong to allow for any exceptions to California’s open meeting requirements. The sky will not fall if ‘pending litigation’ or ‘real estate acquisitions’ or any of the other issues deemed top-secret by the Brown Act are discussed during open sessions of the City Council or County Board of Supervisors. On the contrary, doing away with closed-session meetings will strike a blow to those who would abuse the public’s trust. 

Into closed-session is the first place the LA City Council scurried in 2012 upon learning from HUD that scores of developers under the City’s purview were defrauding taxpayers, by taking federal money designated for the inclusion in affordable housing projects of apartments for people with disabilities, and then willfully neglecting to build those apartments.  

Disabled residents reported going to apartment buildings that were advertised as accessible, according to the LA Times, only to find they weren’t. HUD warned the Council that it had ten days to agree to voluntary corrective compliance or face possible federal enforcement action. 

Rather than comply with HUD’s directive, the City Council embarked on a four year legal misadventure which entailed four major lawsuits, including the one recently settled by the city for $200 million ($20 million of which is going to the plaintiff’s attorneys). All this in addition to at least $6 million in legal bills paid to the white-shoe law firm of Byrne and Nixon, not to mention the in-house costs to the City Attorney’s office.   

This entire horror story played-out in a series of closed-session meetings which denied the public its right to weigh in on the matter.  

Would most Angelenos have wanted the City Council to comply with the original directive from HUD instead of fighting it in court? Would they have considered that the prudent and ethical thing to do? It’s not for us to say, but it wasn’t for the City Council to say either back in 2012. By going into closed-session and deciding what they thought was best for the public, the City Council cheated Angelenos. 

What’s more, it wasn’t just one set of closed-session meetings by which the Council waged its legal war. As we will discuss in a future article, the Council used a series of underhanded tricks to conceal the huge amounts of money it was pouring into its legal battle. Instead of keeping all actions of the Council in the matter in one Council file, they dispersed it into at least five separate files—all under different names, making it virtually impossible for the public to know what was going on.   

It’s time to put an end to closed-session meetings.

(Eric Preven is a CityWatch contributor and a Studio City based writer-producer and public advocate for better transparency in local government. He was a candidate in the 2015 election for Los Angeles City Council, 2nd District. Joshua Preven is a CityWatch contributor and a teacher who lives in Los Angeles.)-cw

Garcetti Playing Dirty Pool?

THE GUSS REPORT--Is Los Angeles Mayor Eric Garcetti willing to play dirty pool in order to get significant union money and votes for his re-election as well as for his anticipated future campaigns for either Governor or Senator? (Photo above left: Mayor Garcetti) 

Does anyone doubt that the Los Angeles Times – formerly known as the newspaper of record for Southern California – is willing to aid and abet him in that mission? 

It certainly seems so in reading the Times’ August 24th article by Paul Pringle and Ben Welsh entitled “LAFD Fire Marshal Steps Down after Criticism that He Cut Corners on Safety.”   

Taken at face value the Times made it seem that that man, John Vidovich, a 35-year Los Angeles City Fire Department Deputy Chief assigned to the Fire Prevention Bureau is an incompetent who put firefighters at-risk until the vast majority of them banded together to demand his ouster. 

But you know that the story could never be that simple. Life dictates that it isn’t. 

The Pringle and Welsh story cries out with questions: 

  1. What did you find out when you investigated whether the Firefighters’ Union was upset because the waste, fraud and abuse exposed by Vidovich embarrassed some of its members, and efficiencies he recommended cut down on overtime that, while saving taxpayers’ money, cost the firefighters overtime that in some cases could be as much as $100,000 per year each? 

You did investigate that, didn’t you? 

  1. You wrote that the Times’ investigation found about 6,800 buildings were months or even years overdue for an inspection.   Where in your article did you state that, when Vidovich first took over the position, that figure was much higher…10,000 buildings with overdue inspections, and that his efforts in just two years cut that original figure down by 32%? 

It’s kind of relevant, yes? 

  1. You wrote “the union that represents inspectors and other firefighters earlier this year voted to approve a resolution of ‘no confidence’ in Vidovich.”   Exactly how many people (of the 3,100 firefighters in the department) took part in that vote, and exactly how many of them voted “no confidence?” 

Let’s just say that the room in which the vote allegedly took place is rather small. 

  1. How did the union’s donation of $350,000 to Mayor Garcetti’s re-election campaign, and to those of Councilmembers up-for-re-election, impact the decision to move Vidovich? The donation announcement was posted verrrry shortly after the decision to move him was announced. 
  1. Did you investigate whether any Councilmembers came to Vidovich’s defense only to be threatened by the union with the loss of their share of those campaign donations funds if he or she did not shut their mouth? 

Call me if you want to discuss specifics on this. 

  1. You wrote “through a department spokesman, Vidovich and (Fire Chief) Terrazas declined interview requests.”What effort did you make to contact them directly to determine if that is true? 
  1. If City Hall was willing to paint Vidovich as an incompetent, did you determine whether he received any awards for his work – like innovation awards – to determine whether or not he was being railroaded? 
  1. Did you receive a copy of the letter written to Chief Terrazas supporting Vidovich, signed by six of his fellow LAFD Captains? Isn’t this relevant to your story, or does balance, fairness and accuracy in journalism not come into play anymore? 
  1. What exactly transpired when the LAFD recently sat down with the major studios because they felt they were being over-assigned uniformed inspectors on sets that do not have any pyrotechnics when a walk-thru inspection would be sufficient? 
  1. And how exactly did the union rank and file respond when it was no longer allowed to work on its Paid Days Off, a Vidovich recommendation approved by Terrazas, so that they could bank those days and get time-and-a-half from the taxpayers? 

And then there are the documents which expose the sheer fraud … like the one in which an inspector allegedly billed for hours for inspecting a building that was torn down years prior? Wouldn’t it be a good time to look closer at this story and see whether what you were fed by Garcetti and his minions is truthful? 

It would appear the full Fire Marshall Vidovich story has yet to be told. Consider this an invitation to stay tuned.

 

(Daniel Guss, MBA, is a writer and a CityWatch, Huffington Post and KFI-AM640 contributor. He blogs on humane issues at ericgarcetti.blogspot.com/ and can be reached at @TheGussReport. Opinions he expresses are not necessarily those of CityWatch.)

-cw

Who Justifies City Council’s ‘Criminogenic’ Culture … and Why

CORRUPTION WATCH-Ending the “corruptionism” at the Los Angeles City Council is very easy – in theory. Enforce Penal Code § 86 which criminalizes vote trading in a city council. Los Angeles City Council unanimously approves all construction projects 99.9% of the time. (There is no statistical difference between 99.9% and 100% when we are talking about thousands of votes over spanning more than a decade.) Thus, the District Attorney, the US Attorney or the State’s Attorney General could all file suit to stop the practice. 

Because law enforcement has the power to subpoena records and compel people to provide evidence beyond what a regular attorney can do in a Citizens Lawsuit, it would be very easy to gather the evidence to show that the Los Angeles City Councilmembers operate by a criminal vote trading agreement not to vote “No” on a construction project from another district. 

Councilmembers may rest assured, however, that no law enforcement officer will ever inquire into the vote trading at Los Angeles City Council. Just because Jackie Lacey may act as if she is deaf, dumb and blind does not mean she does not know what is occurring. Good government in Los Angeles is political suicide, and all the politicians place their own personal well-being far, far ahead of any civic duty. 

Thus, it would be extreme political naivete to think that any law enforcement officer will ever take any action against this criminal nature exhibited by the Los Angeles City Council. 

That leaves Angelenos with two options. (1) Spontaneous change in the people’s consciousness such as occurred when the Soviet Union collapsed or (2) A Citizens Lawsuit. 

No Spontaneous Change of Consciousness 

There will be no spontaneous change in consciousness since the segment of the population with the biggest stake in reform has a much easier solution – it moves away. 

All the data show that the emerging middle class is choosing to leave Los Angeles. They know that they can secure a better job and a much higher standard of living almost anywhere else in the nation than in LA. For example, a 3-bedroom home in Los Angeles is $850,000 with a median family income of $55,909.00 and a 3-bedroom home in Austin, Texas is $290,000 with a median family income $52,431.00. 

The City of Los Angeles has fallen to #60 of desirable places for professionals and business service workers to live, which explains why more people leave Los Angeles each year than come here. There will be no change in the area’s consciousness when the replacement middle class for the retiring Baby Boomers are fleeing Los Angeles for almost anywhere else in the nation. It is easier and wiser to switch than to fight. 

Citizens Lawsuit Is the Only Hope 

The sole hope to root out corruptionism is via a Citizens Lawsuit. It is the essence of simplicity. If a government agency like a city council violates a public duty, any citizen can sue to have a court enjoin the violation of the public duty. Most people, except Superior Court judges, believe that everyone has a public duty not to violate the law. Thus, in theory, it should be easy for any citizen to have a judge enjoin the Mutual Bribery which runs the Los Angeles City Council. 

But there is one obstacle. The criminal enterprise which we call the Los Angeles City Council exists within a criminogenic political system. Not only is the city council a criminal enterprise, but all of the local, state and federal law enforcement agencies including the courts also operate within a criminogenic state of mind. According to a three judge panel at the Ninth Circuit Court of Appeals, the California State judiciary has suffered an epidemic of misconduct. In one case before them, they had a prosecutor who had committed perjury in order to have a defendant convicted of a crime, but the three judges did not focus on that one prosecutor with the standard “one rotten apple” lament. Rather, they said that the California court system had an epidemic of attorney misconduct because the judges habitually turn a blind eye to misconduct. In brief, the judiciary itself was corrupt. Talk about the pot calling the kettle black! 

It will be interesting to see what gibberish the state judiciary provides to turn its blind eye to Los Angeles City Council’s decade of vote trading. One should realize the teleological nature of the state courts. They are oriented towards a particular goal and all their actions are devised to achieve that goal. In California court, that objective is the perpetuation of its own power. If facts or law will achieve the desire result, then the court uses the facts and law, but if the facts and law do not reach the pre-ordained outcome, the facts and/or law are changed. 

Here are a few nonsensical things we can anticipate: 

(1) A citizen may not bring a criminal lawsuit. 

Duh, a citizen lawsuit is not a criminal lawsuit, making the state irrelevant. A citizen’s lawsuit does not seek any criminal penalties against any councilmember. The violation of the penal code shows that the city council is violating a public duty. There is no gibberish too misleading for a court not to whole heartedly adopt it. 

(2) Councilmembers have no public duty to follow the law. 

Some judges believe that due to some unarticulated reason, city councilmembers have no duty to follow the law. The judges have to take this ludicrous position since as soon as they admit that there is a duty to follow the law, they admit that the councilmembers need to be enjoined from vote trading. 

(3) The unanimous voting is coincidental. 

There are about 3,000 council votes per year and 99.9% of the time, they approve an agenda item unanimously. They have been unanimously approving every construction project for over ten years. Thus, using the analogy of flipping a coin a 100 times seriously understates the statistics in the City’s favor. Rather than 100 coin flips, we are actually talking about 39,970 coin flips where it came up heads. 

The chances for a flipping a coin 100 times and coming up heads each time is once in every 1,000 billion billion billion times. Let’s remember that, for this city council, we would have to simultaneously flip several coins as there are 15 councilmembers and 11 is a quorum. The chances of that happening are less than once in every 1,000 billion billion billion billion billion billion billion billion billion. For short hand, let’s just say, 1/ ∞. “Yes, your honor is right. A mere coincidence.” 

(4) Separation of Powers means the courts may not intervene in the city council business. 

Under this theory, which the City of Los Angeles advances, no court may look at how the City of Los Angeles conducts its business. It does not matter if the City violates state laws because the courts may not interfere in how the city conducts its business. If this were true, then why would the State bother to make any laws? Why does Penal Code, § 86 exist? The fancy word the judges use to evade their duty is “justiciable.” The behavior of city councils is “non-justiciable.” 

On a practical level, does anyone expect any judge to interfere with this on-going multi-billion dollar scam? Any admission now that the city council engages in vote trading means that the practice has been happening for over a decade. What judge would make such a ruling? If the GOP can make such a fuss over a private email server, one can imagine what would happen if any judge hinted that the Los Angeles City Council, which functions as an adjunct of the Democratic Party, has been running a criminal enterprise the entire time that Obama has been President. (Disclosure: author is registered Democrat.] 

What’s next? 

Do not expect the great scam to stop now. 

Here’s the great scam that Garcetti and his minions are running on Angelenos right now: They believe that if the City spends billions of tax dollars constructing high-rise projects which no one wants then that spending will prop up Los Angeles’ economy. If they were spending the billions of dollars to make Los Angeles more productive, then the scam could work, but the city is squandering the hundreds of billions of dollars on 19th and 20th Century technology. This makes it certain that Los Angeles will never enter the 21st Century. The future is not choo-choo-trains and skyscrapers; it’s decentralization and TelePresence ©, aka Virtual Presence ©. 

By destroying all the rent-controlled properties, Garcetti thinks that he can justify the need raise billions of tax dollars in order to build “affordable housing.” If the November ballot “affordable housing” measure passes, it will raise property taxes over $2 billion! 

We already know the result of this construction – empty units. Since more people leave LA than come here, our housing supply increases each day even if we build nothing. 

The poor also realize that life is better in Dallas, Nashville or Arizona. As all these other areas of the country become opportunity centers, they will attract not only the more educated middle class, but also the less educated. During the Dust Bowl of the 1930s, it was not only the middle class who fled the farm lands. When life is bad for the middle class, it’s worse for the poor. 

The Great Subway-Bicycle Delusion. 

Garcetti labors under the delusion that subways, fixed-rail transit and bicycles will save our transportation problems. The data show otherwise: People hate the subways and seldom use the buses. According to Google, for example, it takes 19 minutes to go from Los Feliz to Sherman Oaks via car and 1 hour and 1 minute by bus. Thus, it takes three times as long by bus and that is without counting the time it takes to walk to the bus stop and to the destination. 

People avoid mass transit by one of two methods: (1) buying a car, (2) moving away from LA. When a family moves away from LA, let’s say to Austin, Texas, it can afford to buy both a home and two cars for less than the cost of one home in LA. 

Knowing these facts, the Garcetti Administration wants to load up Angelenos with hundreds of billions of debt with its housing and transportation measures on the ballot in November.   

“Power tends to corrupt and absolute power corrupts absolutely,” and corruption destroys. There is no Lone Ranger, no Superman, no White Knight to save Los Angeles. We are engulfed in an all- encompassing criminogenic culture where the powerful will suck away every last cent needed to run a modern city until Los Angeles becomes America’s first favela.

 

(Richard Lee Abrams is a Los Angeles attorney. He can be reached at: [email protected]. Abrams views are his own and do not necessarily reflect the views of CityWatch.) Edited for CityWatch by Linda Abrams

What Will Change If California Legalizes Marijuana ?

When we speak of legalizing marijuana we are really speaking of the Great Cannabis Debate. Come November, Californians will vote on Proposition 64, the Adult Use of Marijuana Act, which could bring safety and security for both cannabis consumers and farmers, and the sales taxes accrued could provide much-needed revenue to our state. Let’s look at a short list of possible unforeseen ramifications. 

Read more ...

The ‘Forever Tax’, Metro’s Measure M: Everything You Ever Wanted to Know but Were Afraid to Ask

MIRISCH ON ‘M’--In an article on its propaganda website, eerily named “The Source,” Metro boasts: “It’s official: Measure M heads to November ballot.” The subhead makes the spin clearer: “More Mobility, Movement, Motion, Maintenance focus of Metro’s Sales Tax Ballot Measure.”  

Of course, that’s how Metro is going to try to hard-sell the new Forever Tax.  

Quite frankly, it would be more appropriate to have written that the “M” in Measure M stands for: 

More Money, Mismanagement, Malfeasance and Misinformation make up Metro’s Sales Tax Ballot Measure. 

As a transit advocate for a forward-thinking, future-oriented, fully-integrated transit system which democratizes public transportation by providing point-to-point, on demand mobility, I’m going to go into a level of detail which may be a bit of inside baseball for those who basically just want to know whether they should support Metro’s Forever Tax or not. 

For those who just want the down and dirty, I’m going to start this essay with a summary of bullet points.

Metro is claiming the “M” in Measure M stands for “Mobility, Movement, Motion, Maintenance.” It actually stands for: More Money, Mismanagement, Malfeasance and Misinformation.

More Money

  • Measure M is a Forever Tax, which will generate hundreds of billions of dollars.
  • Measure M effectively doubles (after the expiration of Measure R) our countywide transportation tax. It raises our county sales tax to 10% or more in parts of the county, among the highest in the nation.
  • Sales tax is a notoriously regressive tax, which disproportionally impacts the poorest and most vulnerable among us.
  • The way the plan has been put together to garner political support rather than, first and foremost, to advance mobility, Metro seems more concerned with passing the tax than mobility itself.
    Mismanagement
  • Metro has increased its operating budget successively to $5.6 billion, yet is suffering from a “ridership slump” (LA Times).
  • Metro offers no viable first/last mile solutions, which are crucial for a first-class mobility system.
  • Measure M’s proposed projects include politically-motivated projects at the expense of mobility-motivated ones. The proposed Sepulveda Pass Tunnel is the poster-child for wasteful spending.
  • Metro’s mantra seems to be: “Overpromise and underdeliver.” In attempting to be all things to all people, they are making contradictory promises to various parts of the county in order to try to win support for the Forever Tax.
  • Measure M’s funding mechanisms are inherently unfair: the measure would make important parts of the county, such as the Gateway Cities and the South Bay, wait decades for much-needed infrastructure upgrades.

    Malfeasance
     
  • Metro continues to act like it is under the Consent Decree, as it was for over a decade, because its Measure M spending plan aggravates social injustice while increasing racial discrimination. This is why the Bus Riders’ Union and other civil rights organizations strongly oppose the measure.
  • Metro’s safety record is questionable. The Blue Line is one of the most dangerous and deadly commuter light rail lines in the country.
  • The recently opened Expo Line covers 15.2 miles from Santa Monica to Downtown LA. It takes close to an hour. This is expensive, inefficient, unmodern transportation, which provides questionable value-for-taxpayer-dollars.
  • A federal judge recent ruled that Metro has acted in an “arbitrary and capricious” manner in planning transit routes, and has violated federal environmental law. Metro painted the ruling as a “victory,” because the judge did not vacate the record of decision (ROD) and allowed Metro to continue to seek federal grant funding. In other words, Metro only cares about the money.
  • Metro’s corporate governance is rigged and undemocratic. Residents of 62% of the county are underrepresented on the Metro board, while the city of LA has a bloc which gives it outsized voting power. As the board makes the spending decisions about all funds - including, ultimately, how the Measure M funds would be spent — the principle of “one person/one vote” needs to be adhered to before Metro is given more money.

    Misinformation 
  • The idea that passing Measure M and giving Metro the proceeds of the Forever Tax will “solve traffic problems” is a myth. Metro’s name for Measure M, “the Los Angeles County Traffic Improvement Plan” is nothing if not deceptive. 
  • Metro has raised taxes three times, increased spending significantly, yet ridership has not increased. Traffic has not improved.
  • Measure M is not a “ground up” tax which deserves support from the residents of LA County. It is a cynical political ploy which aims at spreading transit crumbs throughout the County with the primary goal of winning votes, not increasing mobility.
  • Metro’s plan is backwards-looking rather than forwards-thinking. We need to better take advantage of advances in transportation technology, including the rapid development of autonomous vehicles, to create an integrated transportation system which offers all residents of the county a first-choice for mobility and which democratizes public transportation. 

Who should favor Measure M, the Forever Tax? 

Corporate welfare fans; crony capitalists; politicians who are looking for campaign cash and favors; commuters who are happy with second class service; transportation nostalgiacs who don’t feel advances in transportation technology should be integrated into a modern transit system; people who don’t mind funding agencies who have repeatedly broken past promises.

Who should oppose Measure M, the Forever Tax? 

People concerned with social justice and/or fiscal responsibility; people who want to reduce racial discrimination; those who want a public transportation system for everyone; people who want a forward-thinking, visionary transportation system with the goal of point-to-point on-demand mobility within public transportation; people who doen’t trust massive governmental agencies with a documented record of poor decision-making; those who feel that forever is a long, long time...

Who benefits most? 
 

  • The Transportation/Infrastructure Industrial Complex: politically connected corporations like Parsons Brinckerhoff & Co. ; construction companies; engineering companies; construction unions.
  • Developers who use transit as an excuse to overdevelop and an alibi to densify.
  • “Mobility” advocacy and booster organizations, who receive funding from the Transportation/Infrastructure Industrial Complex. 
  • Empire-building politicians (who then name subway stations after themselves)


Who benefits the least?
 

  • Everyone else 

What a YES vote means. 

  • Among the highest sales tax rates in the nation. Forever.
  • More construction, more maintenance, not necessarily more transit solutions.
  • Cities and areas outside of the city of Los Angeles will continue to be second-class transportation citizens and will need to continue to be satisfied with transit crumbs and scraps from Metro’s table.
  • Wasted opportunities and planned obsolescence, as traditional rail projects, including inefficient light rail, continue to provide expensive transportation alternatives with long commute times.
  • Politically motivated spending on projects which will do little or nothing to increase mobility in the county.  
  • The ability of the Metro board to divert funding from all the projects being touted in the Measure M propaganda to other projects which benefit their friends and patrons. And the inability of the citizens of LA County to do anything about it... 
  • More broken promises.
  • NO real solutions to the county’s traffic problems. 

What a NO vote means.

  • Sending a message to Metro that we are unwilling to throw good money after bad money. Metro has raised taxes three successive times - and fares numerous times — without an accompanying increase in service, mobility or ridership.
  • Acknowledgement that future-oriented mobility needs to be at the top of Metro’s agenda. Solutions for the future need to look to disruptive and transformative developments in transit technology, such as autonomous vehicles.
  • Support for an integrated plan which puts mobility, not politics first.
  • An unwillingness to pass another regressive tax, which disproportionately impacts the most vulnerable among us.
  • Recognition that Metro Board governance needs to be changed so that all residents of the county are equitably represented, and that the city of Los Angeles’s leaders need to do more than pay lip service to the 62% of the county’s residents who live in the other 87 cities and unincorporated county.
  • Support for social, racial and geographical justice.
  • Acknowledgment that forever is a long, long time, and that a Forever Tax is not the answer.
    #

That’ll do it for the Executive Summary of the Measure M. You don’t really need to know that much more in order to understand just how bad an idea Metro’s Forever Tax is. But for those who like inside baseball, here’s the more detailed breakdown of the Forever Tax, Measure M. Enjoy!

More Money

Metro’s mantra seems to be “Show us the money!” It sometimes seems that the agency’s mission is more sucking up and spending money, rather than mobility itself.

We can see Metro’s addiction to taxpayer dollars by looking at Metro’s operating budget. Metro’s operating budget has increased from some $3 billion to over $5.6 billion in a few short years. 

So to deal with Metro’s jonesing for public dollars, this time it’s a Forever Tax, folks. 

Yep, that’s right: in contrast to Measure R, the new Measure M is a half-cent sales tax increase which has no sunset, no end, and which keeps the faucet of taxpayer dollars running forever. What’s more, Measure M eliminates the sunset date for Measure R, converting it, too, to a Forever Tax. 

Consequently, Measure M, the Forever Tax, effectively doubles the transit tax rate after Measure R expires, and brings the sales tax up to close to 10% throughout the County (and over 10% in certain areas). The Forever Tax would generate literally hundreds of billions of dollars and raise our sales tax to among the highest in the entire nation.

It is a blank check of the highest magnitude, because despite all the assurances of “strict oversight,” it is ultimately the undemocratic Metro board which decides how the money is being spent.

Mismanagement

For all the public funds Metro has taken to satisfy its thirst for money, for all the billions in increased budget, we haven’t seen anything close to the development of an integrated system of public transportation which serves the needs of the entire county. We haven’t seen an increase in ridership. We haven’t seen better service. We haven’t seen better mobility or a decrease in racial discrimination or an increase in social justice. And we haven’t seen a decrease in traffic.

What we’ve seen is pretty simple: a bigger budget.

While it’s clear Metro is not concerned at all with giving the residents of LA County the best mobility value-for-money, we see more evidence of Metro’s mismanagement from some of the projects proposed by Measure M and from some of the lack of projects.

Despite some nice-sounding lip service from certain Metro Board members, first/last mile mobility solutions are almost nowhere to be found either in Measure M or in Metro’s larger, overall transit strategy. First/last mile solutions are extremely important from a transit perspective, because in real life people need to have the ability to access heavy and light rail stations, as well as bus stops. Yet for all Metro’s focus on “shiny new things” aka rail, Metro is singularly dismissive of the need to help commuters get to and from the rail stations.

Cluelessness about “public transportation”

One of my Council colleagues recently posted on Facebook that he and his wife had taken the Expo Line to Santa Monica. Someone asked him how he got to the station, to which he responded that he had parked at Metro’s park-and-ride on Jefferson and La Cienega. A senior Metro executive then seriously suggested that my colleague could have taken Uber to the station.

Think about it. If my colleague was really going to take Uber, then he wouldn’t take it from Beverly Hills to Culver City in order to ride the train to Santa Monica. He would take it directly to Santa Monica. But beyond the cluelessness of the Metro executive’s suggestion, the mere idea that a representative of one of the richest transit agencies in the country would so cheerily offer up a private, profit-driven company as a solution for public transportation goes to show that Metro just doesn’t get the concept of “public transportation.”

In Beverly Hills, we recognize the importance of dealing with the first/last mile challenge, and so we are working on our own solutions, which would also transform mobility within our own city. We are the first city in the country to be actively pursuing the incorporation of autonomous vehicle (AV) technology within a system of public transportation with the vision of developing a Municipal Autonomous Shuttle System. As envisioned, our system would provide on demand, point-to-point mobility within our city which would literally transform public transportation, and would offer a blueprint for hyperlocal mobility solutions for other cities and regions.

Of course, Metro itself should be developing public transportation solutions to the first/last mile challenge rather than recommending Uber, but that’s another story and just one further example of Metro’s mismanagement.

Political Sepulveda Pass Blues

Perhaps the biggest poster child for Metro’s wasteful spending is Measure M’s proposal to build a tunnel through the Sepulveda Pass. It’s a 9-mile tunnel which is currently budgeted at $10 billion, including a connector to the airport. 

Let’s put this in perspective. 

The Swiss just recently completed the longest rail tunnel in the world, the Gotthard Base Tunnel, a 35-mile, twin bore tunnel. Switzerland is a notoriously expensive country. A Big Mac costs something like 60% more in Switzerland than in the US. But the Swiss managed to complete the GBT for some $12 billion, tunneling through some of the roughest mountainous terrain in the world. That’s about $343 million per mile. Contrast with Metro, which is budgeting almost a billion dollars per mile for the Sepulveda Pass Tunnel. And, no, the Sepulveda Pass is hardly the Alps...

But the Sepulveda Pass Tunnel is not only the poster child for Measure M’s wasteful spending because of the inflated costs, even by Swiss standards. The Sepulveda Pass Tunnel is the poster child for Measure M’s wasteful spending because it is a completely superfluous, unnecessary project. Oh, sure, Metro officials describe it as an “ambitious project that could vastly improve mobility.” But it makes no sense at all.

We already have a major piece of infrastructure which connects the Valley with the Westside. It’s called the 405 and Metro just spent a billion dollars widening it. Yes, it’s perpetually jammed, but perhaps before spending $10 billion on a tunnel, it would be better if Metro looked at ways to use this piece of existing infrastructure more efficiently.

Part of Metro’s problem is that it is not taking advances in transportation technology seriously and not integrating them into its Measure M plans.

In justifying the need for the tens of billions of dollars which Measure M would raise, Metro’s CEO Phil Washington has said, “we’re building for the next 100 years.” Yet if Metro is really building for the next hundred years, it should stop focusing on the past hundred years. It should start looking to the future.

Autonomous vehicle technology, for example, could create a significantly more efficient use of the freeways. One or two AV-only lanes, including multi-rider public transit AVs, could increase capacities on the 405 exponentially. There would be no need whatsoever for the porky Sepulveda Pass Tunnel.

But a tunnel is cool. It’s sexy.

And, more importantly, it’s been highlighted by Metro to try to appeal politically to Valley voters who feel they have been shafted in the past by Metro (because they have been shafted in the past by Metro). In short, the project is part of Measure M because Metro feels it will win votes to pass the tax.

The only problem is it could be yet another hollow promise. While Metro’s lackeys are touting the Tunnel to win Valley votes, they’re probably not telling those who would be seduced by the tunnel that it is not fully funded, not even with the Forever Tax. In the words of a top Metro official: “Measure M includes only $2.9 billion for all phases. The ability to achieve state, federal or private funds will determine how this project is finally scoped.” 

Overpromise and underdeliver

Part of Measure M’s unsolvable problem is that Metro is trying to make it all things to all people. The political ploy is to throw transit breadcrumbs and scraps around the county to get the diverse constituencies to vote in favor of the Forever Tax. As such, Measure M is a Frankenstein’s monster constructed of various disparate, non-integrated parts with the primary goal of passing a tax, rather than providing the entire county with the best possible, fully integrated mobility system. In fact, the promise of mobility is simply being used to get more money.

Like with the porky Sepulveda Pass Tunnel, which the Metro bigwig above seems to be selling down the river to elected officials concerned with its porkiness, Metro is telling different things to different groups. To the Valleyites, they are hard-selling the Sepulveda Pass Tunnel (“It will be transformational!”). To the South Bay and Gateway Cities, they are saying that the Sepulveda Pass Tunnel isn’t fully funded by Measure M and implying it might not ever get built.

You get the picture.

Metro board members desperate to get the Forever Tax passed have also been making calls and visits to elected officials from the other 87 cities in LA County (i.e. all cities outside of the City of Los Angeles) with a combination of sweet-talking and arm-twisting (“If you don’t support the measure, I’ll remember; if you do, I promise...”) to try to eliminate any opposition to the Measure. The results have been distinctly mixed, but the effort in itself is remarkable in that elected officials are being contacted by high-level Metro board members who are stunningly silent when they don’t want or need anything (“You never write. You never call...”).

Unfortunately, Metro has overpromised and underdelivered in the past. All the projects promised by Measure R have not been finished and some communities actually feel that the agency should make good its previous promises before holding its hand out again. And, quite frankly, some cities and elected officials are simply unprepared to say “Thank you, Sir, may I have another” or accept that their cities are being royally screwed, in spite of further promises from Metro honchos. 

It is completely understandable that the South Bay and the Gateway Cities Councils of Government, representing 44 — or half — of the 88 cities in the county, have voted to oppose the Forever Tax. This is unprecedented, but at some point, the chalice of Metro’s unfairness bubbled over and the elected officials - and hopefully the residents come November - were unwilling to call the BS they were being served up on the side chocolate mousse.

Because of Measure M’s unfair and inefficient funding scheme, these cities are going to have to wait decades for infrastructure which would serve their residents. What’s even more outrageous is that it’s also infrastructure which could be obsolete before it is even built. In their rapacious zeal to get the tax passed, Metro is ignoring the real opportunities which the future and new technologies open for a truly integrated region-wide transportation system which actually democratizes public transportation by creating a first-choice system of mobility.

Malfeasance

Metro’s Mismanagement and mantra of “Promise and Underdeliver” would be reason enough to reject their Forever Tax. But this is also an agency which in the past has done nothing to inspire the trust which in a best case scenario would justify another tax increase, never mind a Forever Tax.

Metro spent years under a consent decree because its policies created social injustice and increased racial discrimination. The focus on building sexy and expensive rail lines took (and takes) away resources from buses, which remain the backbone of the transit system. What’s more, a sales tax is among the most regressive taxes, disproportionately impacting the most vulnerable among us. This is why the Bus Riders’ Union, representing the interests of those who are most dependent upon good public transportation, as well as other civil rights advocates strongly oppose Metro’s latest Forever Tax.

And while Metro is a world-leader in spending taxpayer dollars, it neither provides the best nor safest public transportation in the country. It should be noted that Metro’s Blue Line light rail is among the deadliest, most dangerous commuter rail lines in the entire country. Over 120 people have died in Blue Line accidents and there have been over 800 collisions on this line alone since 1990.

Yes, Metro loves rail, even when it’s dangerous and even when it’s not the most efficient form of transportation. Metro’s new Expo Line from Santa Monica to Downtown LA is a case in point. It’s a 15.2 mile stretch which takes almost an hour from point-to-point. Not exactly a model of efficiency, though fans of the Toonerville Trolley might get their kicks on the Expo Line.

“Arbitrary and capricious”

What’s more, a federal judge’s recent decision (in a case involving Beverly Hills), describes Metro’s actions as “arbitrary and capricious,” and made the finding that Metro violated NEPA, the federal environmental law. If the IRS or DEA or EPA had been determined by a federal judge to have both violated federal law and acted in an “arbitrary and capricious” manner, one would think that none of the aforementioned agencies would claim the judge’s decision as a “victory.”

Yet that’s exactly what Metro has done. Metro touted the judge’s decision as a “victory” on “The Source,” because the federal judge did not vacate the ROD (Record of Decision), which allows Metro to continue its process of getting federal grant funding. Clearly, for Metro, it’s all about the money. But, clearly, governmental agencies which don’t care if they violate federal environmental laws and who are unconcerned over a federal judge’s ruling that they have acted in an “arbitrary and capricious” manner don’t deserve billion dollar blank checks and funding faucets which never get turned off.

Undemocratic and rigged corporate governance

Metro is an equal opportunity blower-offer and its arrogance crosses the board, whether it’s Norwalk, Torrance or Beverly Hills, whether it’s the bus riders or those opposed to using the notion of “Transit Oriented Development” (or TOD) as an excuse for overdevelopment. The cause for Metro’s arrogance and tendency towards misbehavior could very well be the subject of a dissertation of a corporate psychiatrist, but much of it likely has to do with the fact that the residents of LA County are not proportionally represented on the Metro Board. The Metro board was designed and rigged to give the city of LA outsized, bloc voting power, and that means that the other 87 cities in the county, as well as unincorporated areas, can easily get the short end of the stick. 

Metro’s undemocratic corporate governance needs to be fixed, something which the city of LA is bound to resist, but something which it should embrace in the name of fairness and true regional cooperation. Torrance’s Mayor Pat Furey and I wrote an article in the LA Business Journal in detail why Metro board reform is a precondition for truly getting transit on track back in LA County.

Misinformation

Metro’s entire sales pitch on the Forever Tax, Measure M, is that it will “bring traffic relief.” In fact, Metro’s own name for Measure M is “the Los Angeles County Traffic Improvement Plan.” Sounds great, but this is a total myth.

In fact, the viability of the entire ballot measure is predicated upon this myth. It’s why Metro wags are touting that polling shows 75% of the voters are in favor of the tax.

Of course, with polling, it all depends on how you ask the question.

Metro’s pollers: Do you want to alleviate traffic?

You: Yes!

Metro’s pollers: Would you be willing to pay a half-cent more in sales tax to solve the traffic problems?

You: Yes! 

That’s how Metro can get 75% polling in favor of the Forever Tax.

And yet, even the LA Times, which when it comes to Metro often seems like a booster organization rather than an independent, objective organ of journalistic integrity, wrote earlier in the year about Metro’s increasing expenses and ridership slump.  (The headline online now reads, “Billions spent, but fewer people are using public transportation in Southern California.” This headline was softened from talk of a “Ridership Slump,” a phrase which evidently was anathema to Metro. Presumably, Metro’s PR honcho, Steve Hymon, a former LA Times employee was able to get his buddies to change the headline of the online version, though if you look to the URL, it includes the phrase “ridership-slump”).

So, in short, Metro’s equation is: more money=fewer riders.

Which leads us to a number of important questions:

Is pouring more money into the agency - forever - really the solution? Especially considering how Metro seems more concerned with the digging/tunneling/building/spending itself rather than with mobility?

How about demanding an agency which develops a modern, forward-thinking, fully-integrated system which has efficient, point-to-point transportation as its goal?

How about a transportation system which is a first-choice for mobility for the majority of the county’s residents? A transportation system which our residents use because they want to, not because they have to, would be the hallmark of the kind of public transportation system we both need and deserve.

Measure M, Metro’s Forever Tax, is a far cry from anything close to that. For the resources which Metro is now demanding from the taxpayers, we should insist upon no less. Because forever is indeed a long, long time....

(John Mirisch is the Mayor of Beverly Hills. He has, among other things, created the Sunshine Task Force to increase transparency, ethics and public participation in local government. Mayor Mirisch is a CityWatch contributor.)

-cw

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