Invisible Frog Threatens Private Property

Share this article on:

Editor’s note: The U.S. Supreme Court on Monday announced it will accept the Louisiana ESA frog case for briefing, argument and decision.
“The essentially boundless authority granted the federal government by the Fifth Circuit [U.S. Court of Appeals] to control local land and water use under the guise of species protection conflicts with a plain reading of the Endangered Species Act.”
I spoke last week to the Illinois Association of Drainage Ditches and noted the ESA is a basic threat to farmers with drainage ditches on or close to their property in any state particularly in Iowa, Illinois and Indiana because of a case presently pending in the United States Supreme Court. It is a story you will not believe. Maintaining drainage ditches is a huge issue in the above-mentioned states and others. The ESA has basically been applied in the Far West. Now the ESA is likely to be applied when improvement work is contemplated on drainage ditches.
The question posed before the Supreme Court is shocking. Can the Department of Interior’s Fish and Wildlife Service (FWS) designate and take a landowner’s property as critical habitat, when the land is unsuitable as a habitat, has no connection with a protected species, and the species has not been seen on the property? The case of the “invisible frog” has been widely described in the press because it is hard to believe or understand.
The story begins in 2001 when FWS listed the Mississippi gopher frog as an endangered species. In 2010, the FWS issued a rule designating approximately 2,000 acres in Mississippi as habitat for the frog. In 2011, FWS expanded the radius for the protection of the frog by designating more than 1,500 acres of privately owned land in St. Tammany Parish, LA, because it was alleged the frog might have been at the sight in 1965.
The owners claim their land does not now nor never will in the future contain elements for the frog to live on their property. The owners had leased the land for timber operations and planned on developing home sites and businesses on the property.
In 2012, FWS renamed the gopher frog as the “dusky gopher frog.” FWS claims the landowners’ site “…could provide a refuge for the frog should the other sites suffer catastrophic events.”
Under the ESA, an economic analysis must be undertaken. On all the sites in Mississippi, the economic impact on the majority of sites was $102,000. The designation on the timber site in Louisiana was approximately $34 million over 20 years.
The case pending in the Supreme Court is Markle Interests, LLC v. The United States Fish and Wildlife Service.
That $34 million over 20 years is a pretty big economic impact, considering that the dusty gopher frog has never been found on the Louisiana property. Even the lower courts said the FWS determination that the 1,500 acres was critical habitat for the frog was “…odd, troubling, harsh, and remarkably intrusive [with] all the hallmarks of governmental insensitivity to private property.”
One judge dissented vigorously, and was concerned that a designated ESA area that does not have biological or physical characteristics that would support the dusty gopher frog was beyond the pale. The dissenting judge claimed, “Land that is not essential for conservation does not meet the statutory criteria for critical habitat.”
The majority opinion is dangerous for all landowners because it allows FWS and the Department of Interior “…to impose restrictions on private land that is not occupied by the species, and is not near areas inhabited by the species and cannot sustain the species without substantial alterations and future annual maintenance, that the government cannot effectuate… [and] the panel decision would unduly subject large areas of the United States to strict federal regulation.”
This case falls far outside the parameters of ESA and common sense. It is also an example of a government agency out of control and protected by a legal interpretation which allows the government’s decision deference when there is ambiguity in the statutory language.
The true tragedy of this case is the Trump administration’s Justice Department apparently is supporting the Department of Interior’s outrageous taking of private property.
(This article first ran in Farm Futures on January 22, 2018.)
– Email this author

Posted in Agriculture | Comments Off on Invisible Frog Threatens Private Property

Change can be good—for producers, consumers, and animals

Share this article on:

If I’ve learned anything through my life—whether growing up on my family’s fifth generation hog farm, or through my time representing the voters of an diverse rural, suburban and urban congressional district for seven terms in the U.S. House of Representatives—it’s this: what’s good for the goose is good for the gander. The same is true of making animal welfare reforms in the food supply.
I know first-hand how agriculture is under scrutiny from outside forces. And I know how frustrating that can be for all of us involved in production agriculture. I also know that American farmers are some of the most inventive, resourceful, hard-working folks in any sector of the economy. The American farmer straps on his boots and goes to work and when a problem arises, he fixes it. That’s what it means to be a farmer or rancher and good animal husbandry has been at the center of farming practices for generations.
The reality is, it’s not just about our views and values.  We have to pay attention to the values of our customers.  Many consumers these days just aren’t aligned with some of what happens on farms. I know, of course, that there are pros and cons to all types of production systems. But study after study show that consumers today want animals to be able to engage in normal behaviors and not be confined so severely that the animals cannot move.  I am speaking about practices such as cages in the laying hen industry and crates in the pig industry.  No farmer was trying to be hurtful to animals in using these systems, but the reality is, they are extreme practices and they are no longer acceptable to American consumers, including rural people.   An American Farm Bureau-funded study found that 95% of Americans think farm animals should be treated well. Another study, from the food industry consulting firm Technomic, found that consumers today value animal welfare over local, fair trade, organic and other top-of-mind issues.
So it’s no surprise that the biggest names in the food business are requiring animal welfare changes—companies like McDonald’s and Walmart and Kroger; companies like Cracker Barrel and Bob Evans.
Now I know it’s easy to view this shift as a problem. But farmers are great problem solvers, and many view it as an opportunity. This is why major pork firms like Virginia’s Smithfield are getting rid of sow stalls. It’s why egg producers like Rembrandt and Rose Acre are going cage-free. It’s why Perdue is launching aggressive animal welfare programs in conjunction with The Humane Society of the United States.
These moves make good business sense: after all, the least economical product type of product to produce is the kind no one wants to buy. Many of us often argue the need to let market forces prevail.
The American farmer has a rich tradition of adaptation and I have every confidence that more will continue rising to the occasion by progressing on animal welfare measures—rather than trying to slow them down—that’s good not just for the animals, but for consumers and their own bottom lines.
E-Mail this author

Posted in Agriculture | Comments Off on Change can be good—for producers, consumers, and animals

Increased Cigarette Taxes Rarely Produce Promised Revenue

Share this article on:

The Thomas Jefferson Institute for Public Policy recently released a new study showing the impact of cigarette tax increases on local government budgets.
The study, The Impact of Cigarette Tax Increases on Local Government Budgets (here), uses budget data published by local jurisdictions as part of the budget process.  This is the second year this report has been issued by the Jefferson Institute.  Among its findings –
Revenues from cigarette taxes continue to decline, despite repeated rate increases.  Virginia’s local governments collected 19.7 percent less in real cigarette tax revenue from FY 2010 to FY 2014 (the latest data available), even though individual local governments raised these taxes more than 50 times over the same period.  Last year’s study found that local governments collected 16.3 percent less in cigarette taxes between FY ’10 and FY ’13.

  • Cigarette tax rate increases raise less tax revenue collections than budget projections or that the percentage rate would imply.
  • Between 2010 and 2015, the number of localities that chose to levy a new tax on cigarettes grew from 80 to 106 – a one-third increase in just five years.
  • The tax increases are changing consumption patterns as consumers seek alternative markets with lower taxes and lower prices.

Cigarette taxes rarely produce the revenue expected by local governments.  Fairly consistently, the tax increases produce a decrease in revenue, don’t meet expectations, miss budget projections or simply produce mixed results and often turn flat or negative in the years following a tax increase.
For instance, in the Town of Vinton, which doubled its cigarette tax in 2014, saw its revenues plunge by more than 44 percent between 2013 and 2016, as smokers drove elsewhere to make purchases.  These new taxes caused two retailers to close and a new cigarette outlet to open just outside of Town limits, driving a further loss of reduced sales taxes.
This happens in both large and small jurisdictions.  Bluefield raised cigarette taxes by 67 percent in FY 2012 and tax revenues fell 14 percent.  Virginia Beach raised the cigarette tax three times between 2010 and 2016, and revenues remain below the level prior to the tax increases.
We expect to see this happen again in Petersburg where the cigarette tax was raised from 10 cents to 90 cents a pack.  While it’s too early to have final numbers, what we do know is that the number of cigarette tax stamps purchased by stores has declined by nearly 30 percent, as consumers likely crossed the city line to purchase products elsewhere.
And we see the reverse is true as well.  In FY 2016, Portsmouth cut its cigarette tax rate by 33 percent.  The budget for that year anticipated revenues would fall, but in fact revenues increased slightly.  The tax cut brought in more revenue, not less.
These numbers are a real world example that tax impacts on the economy are not static.  You cannot raise taxes by a certain percent and expect, automatically, that tax revenues will increase by that same percent.  Indeed, just as our high school economics teacher explained to us, taxes impact the way people spend and invest.  In this case, it seems that raising cigarette taxes likely encourages smokers to drive outside their own city or county seeking less expensive tobacco products. And, as studies show and retailers testify at local government hearings, these smokers also buy others products when they find a store in a lower taxed area.
As municipalities begin the process of developing their budgets for the coming fiscal year beginning on July 1, instead of seeking to raise cigarette taxes whose effect can be temporary or negative, they might be better advised to seek efficiencies in their operations or rely on a general, broader-based tax to fund public expenditures.  Of course, efficiencies are the better course of action.
Email this author

Posted in Taxes | Comments Off on Increased Cigarette Taxes Rarely Produce Promised Revenue

Metro is a good investment

Share this article on:

As a proud board member of the Thomas Jefferson Institute—an organization that provides thoughtful non-partisan analysis on the most pressing issues facing the Commonwealth—I feel compelled to respond to the December 27th op-ed that first ran in the Jefferson Policy Journal entitled, “Do Metrorail and Virginia Railway Express Really Boost Virginia Tax Revenues by $600 Million?” (Article found here.) While the article specifically called into question the validity of the Northern Virginia Transportation Commission study, the general argument is that Metro is not a good investment for Virginia and it does not warrant additional funding. On this point, I must strongly disagree.
Virginia’s economic and global competitiveness depend upon having a world-class transportation infrastructure in place. Improving mobility and connectivity throughout the Commonwealth whether that be at the Port of Virginia, Dulles Airport, or Metro greatly impacts Virginia’s economy and should be prioritized to ensure the Commonwealth continues to position itself for success in an increasingly competitive global economy.
Right now, a vital piece of this transportation infrastructure is in need of repair. For too long an “if it ain’t broke, don’t fix it” approach was taken in regards to Metro due to the political and jurisdictional complexities that surround the system. This approach cannot persist if Virginia wants to be competitive for both businesses and talent and regain the #1 ranking in best states to do business.
Virginia and Greater Washington have long relied on the federal government to sustain their economies, but since sequestration it has become apparent that this model is no longer sustainable. Thus, it is increasingly important to position the Commonwealth and region to not only compete but to win big economic development opportunities like it did with Nestle in 2017 and could do in 2018 with Amazon’s second headquarters—a win that could bring $5 billion in investments, 50,000 new jobs, as well as a reputation as the entrepreneurial leader on the east coast. It is worth noting that of Amazon’s four priority site requirements in its HQ2 RFP, one is access to mass transit.
Reliable transit helps to attract these new businesses that will directly impact the Commonwealth’s economy, which is why investing in Metro matters. Case in point, Nestle’s new U.S. headquarters in Rosslyn is located on top of a Metro station. This is not surprising when one considers the facts and figures behind the business community’s commitment to Metro in recent years:
• $25 billion of development has occurred near Metro stations over the past eight years.
• $235 billion of property value is within a half mile of Metrorail stations.
• 54% of all jobs in the region are located within a half-mile radius of Metrorail or Metrobus stops.
In addition to attracting new business, we must also ensure that the private sector industries that are already here are well-positioned to thrive and that we continue to retain our highly-educated and talented workforce.
Recent studies have revealed concerning population shifts, especially among millennials, that suggest investing in Metro is also an investment in our future workforce. A report from The Stephen S. Fuller Institute at the Schar School of Policy and Government at George Mason University revealed that Greater Washington lost about 2,000 people aged 25 to 34 from 2015 to 2016, whereas 13 of the 15 largest metropolitan areas across the country grew their share of this critical demographic. Additionally, the Millennial Index done by American University’s Kogod School of Business revealed that commuting continues to be a source of frustration for Greater Washington millennials and is one of the top five factors that influences their attitudes toward the area.

If we do not fix Metro now, Virginia and Greater Washington’s economic security will be compromised and our competitive position will be diminished in both the short and long term. Without Metro, we would need to double the size of the Capital Beltway and double the number of parking spaces in Arlington and the District’s Downtown to merely maintain the current travel conditions. With regional collaboration and leadership from Richmond, Annapolis, and the District of Columbia, we can put Metro back on a safe, smart, and sustainable path forward in 2018. But it’s going to require effective governance and dedicated, sustainable funding to deliver the improvements the system needs.
As someone who has served as chair of the Fairfax Chamber of Commerce, the Greater Washington Board of Trade, co-chair of the Joint Washington Metropolitan Area Transit Authority Governance Review Task Force, and as the Commonwealth’s representative on the WMATA Board of Directors, I have seen first-hand the powerful impact of Metro on the economy of Virginia—an impact certainly worthy of statewide support.

E-Mail this author

Posted in Transportation | Comments Off on Metro is a good investment

The Doctor Is In…. And He Wants to Expand Medicaid

Share this article on:

With a near 50/50 balance of power between Republicans and Democrats in the General Assembly, Governor-elect Ralph Northam will be in a much better position than his predecessor Terry McAuliffe to enact Democratic priorities. And what are those priorities? As he told NBC 4, Medicaid expansion tops the list.
Said Northam: “No family in Virginia should be one medical illness away from financial demise so, Medicaid expansion is very important and I will do everything I can to make that happen.”
We can all agree on the desirability of making health care affordable and accessible for all Virginians. It’s not so clear that expanding Medicaid is the best way to accomplish that goal. I have blogged in the past about the inadequacies of the Medicaid model, which has not demonstrated an ability to substantially improve medical outcomes. Among the more obvious problems: While Medicaid expansion provides coverage to the uninsured, it does not increase the supply of primary care physicians willing to take on Medicaid patients for whom they are paid 30% to 60% less than privately insured patients.
Despite below-market reimbursement rates, the cost of Medicaid expansion is considerably higher per patient than anticipated when the Affordable Care Act was enacted several years ago. The table below, taken from an article in the “Handbook on Healthcare Reform” published by the Thomas Jefferson Institute for Public Policy (TJI) last month, shows how Medicaid actuaries have consistently revised upward their cost projections since FY 2013.

The 2013 report projected that newly eligible adult Medicaid patients would cost $3,625 on average. By 2016, the figure had risen to $5,926 — a 63% jump. If Medicaid expansion was unaffordable four years ago, it’s even more unaffordable now. Despite their political setbacks, Republicans are highly unlikely to roll over on this issue.
It’s not as if states have no other options to improve affordability and access. The TJI report discusses several. They include eliminating mandated benefits so insurance companies can offer bare bones policies; removing barriers to healthcare technology innovation; rolling back onerous Maintenance of Certification requirements that encourage physicians to retire early; reforming the medical liability system that prompts physicians to practice defensive medicine; encouraging transparency in pricing so consumers can push back against expensive providers; abolishing the Certificate of Public Need process so physicians can provide high-quality, lower-cost outpatient surgery; promoting telemedicine; enabling Direct Primary Care that strips out third-party-payer middlemen and administrative costs; and repairing the broken Medicaid delivery model.
Most of the TJI essays were generic, not specific to the Old Dominion. As it happens, Virginia has taken limited steps toward implementing some of the ideas in the report, but much remains to be done.
The health care sector is a dense jungle of special interests, however. Hospitals, insurers, pharmaceutical companies, employers, physicians, and a welter of allied health professionals work doggedly to shape legislation to their benefit. Sadly, ordinary patients have no organized group representing their interests.
As a physician, Northam has a keener understanding of the issues confronting the health care sector than most lawmakers. He enjoys a unique opportunity to reshape Virginia’s health care sector in a way that lowers costs and improves outcomes for all Virginians. It would be a shame if he expends all his political capital to capture the dubious benefit of Medicaid expansion when so many alternatives lie fallow.
(This article first ran in Bacon’s Rebellion on January 4, 2018)

bacon-90Email this author

Posted in Health Care | Comments Off on The Doctor Is In…. And He Wants to Expand Medicaid