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Rethinking the “Tip Credit”: Index It to the State Minimum Wage for Tipped Employees

by Goldy — Wednesday, 4/16/14, 10:54 am

I know I promised that yesterday’s post on a “Tip Adjusted Benefit Deduction” would be my last creative stab at proposing a minimum wage compromise that benefits both sides, but I’ve got one more wonky little provision that should be a part of any debate over a so-called “tip credit”: the size of the credit should be indexed to a fixed percentage of the effective state minimum wage for tipped employees, not Seattle’s minimum wage.

Here’s how it would work: Let’s say Seattle set it’s minimum wage to $15 an hour, indexed to inflation, with a maximum allowable “tip credit” set to 50 percent of the effective state minimum wage for tipped employees, currently $9.32 an hour (also indexed to inflation). That would make Seattle’s tip credit $4.66 an hour. Simple.

But because Seattle’s tip credit is indexed to the state minimum wage, it creates within Seattle’s powerful restaurant industry a very strong incentive to politically oppose any effort to establish a tip credit within state minimum wage law. For example, let’s say a bill were proposed in the state legislature to establish a minimum wage for tipped employees set at 50 percent of the state minimum wage. This would effectively halve the allowable tip credit in Seattle to only $2.33 an hour! I’d love to see the Washington Restaurant Association try to maintain unity over that.

It is essentially a poison pill provision aimed at addressing labor’s very legitimate concern that passing a tip credit here in progressive Seattle could set a political precedent that enables the imposition of a tip credit statewide, thus lowering the incomes of tens of thousands of tipped workers outside city lines.

Don’t get me wrong: I oppose a tip credit. I find the arguments in favor less convincing than the arguments opposed. But if we’re debating whether to impose a tip credit we should also be debating the nature of the tip credit itself. I have now proposed a number of variations that could make a Seattle tip credit a helluva lot less worse than the restaurant industry giveaway imposed at the federal level. For example, a tip credit indexed to the state minimum wage for tipped employees as described above, combined with a substantial monthly threshold and exemption, and conditional on meeting strict business and account practices designed to impede wage and tip theft, would have a very different impact than the out-of-the-box tip credit the restaurant industry is demanding.

Both sides would be asked to give a little. Both sides would get a little something in return. That is the essence of political compromise.

Trust me, these series of posts on potential compromises aren’t going over well with my friends at 15 Now, while the folks on the business side of the table continue to pretend that I ceased to exist the second I left the pages of The Stranger. But I know that city council members are still reading me, and they are the ones who will ultimately craft a minimum wage ordinance, not the arbitrarily appointed members of Mayor Ed Murray’s Income Inequality Advisory committee.

If the business community can have the gall to attempt to redefine such a common word as “wage” through their bullshit “total compensation” proposal, then it is certainly reasonable to redefine such a vague and inaccurate term as “tip credit” (which is, in fact, a “tip deduction“) in the service of promoting better economic incentives. Instead of simply opposing or supporting a tip credit, we should take this debate as an opportunity to rethink it.

My sincere advice to both sides as they head into the nitty gritty of final negotiations is to think creatively before digging into an intractable position that triggers a risky winner-take-all confrontation at the ballot box. A modified tip credit that serves to impede wage and tip theft while removing existing economic incentives to push employees into part-time non-benefit work, could actually prove a win-win for businesses and workers alike.

Or maybe not. But it’s worth exploring.

7 Stoopid Comments

Open Thread 4/15

by Carl Ballard — Tuesday, 4/15/14, 5:25 pm

– I can’t imagine city leaders pushing for a freeway through their downtown, but I guess Olympia in the 1950’s is strange.

– TRAP Laws and the Emptying of ‘Roe’

– I’ve probably walked past that bike shop 10000 times. Who could have predicted they’d be a chop shop? Other than I sort of assume that about all bike shops.

– Shoe truthers, sure.

– Why is there a different standard between McAllister and Vitter? Shut up, that’s why.

– Today in “just because you can do something doesn’t mean you should,” it’s the Rattlesnake Rodeo—or, more accurately, the Rattlesnake Pile of Snakes Just Kind of Lying There—in Opp, Alabama. The annual event includes snake races, snake handling, snake milking, and snake touching.

78 Stoopid Comments

One Final Minimum Wage Compromise Proposal: A Tip Adjusted Benefit Deduction

by Goldy — Tuesday, 4/15/14, 9:12 am

When I offered last week my “Five Proposals for Making a ‘Tip Credit’ Less Worse,” I got exactly the sort of response from the business community that I expected: crickets. The restaurant industry really isn’t interested in discussing the pros and cons of the traditional tip credit; they just want it, period. So there wasn’t much risk in proposing compromises that the other side would refuse to consider.

Which is why I have one more tip credit compromise to propose—one which borrows from the arguments made in support of the bullshit “total compensation” proposal—that offers cost savings to employers while removing their incentive to push workers to part-time employment. For want of a better term I dub it: a “Tip Adjusted Benefit Deduction (or TAB Deduction).”

A TAB Deduction is a variation on the traditional tip credit that further limits the credit to an amount not to exceed the cost of providing certain defined benefits. A TAB Deduction would assure that all Seattle workers take home a minimum of $15 an hour in cash compensation, while incentivizing employers to shift involuntary part-time tipped workers to full-time jobs. A TAB Deduction would also be conditional on meeting strict business and accounting practices intended to impede wage and tip theft, while facilitating the investigation and prosecution of claims thereof.

How does the TAB Deduction work?
A qualified employer would be permitted to deduct from its minimum wage obligation an amount equal to the smaller of A) the cost of providing permissible benefits, B) the amount of tips actually received by the employee, or C) the difference between Seattle’s minimum wage and the effective minimum wage for tipped employees under city, state, and federal law.

For example, assume the minimum wage for tipped employees is WA state’s current minimum wage of $9.32/hr, while Seattle’s minimum wage is $15/hr—that makes the maximum TAB Deduction $5.68/hr. Now assume that an employee earns $4/hr in tips and $3/hr in benefits. The employer may deduct the smaller of the three figures—$3/hr—from its minimum wage obligation, with the employee ultimately receiving $12/hr in wages plus $4/hr in tips for a total of $16/hr plus benefits.

Only those benefits defined in ordinance, and in maximum amounts approved by regulators, may be applied to the TAB Deduction. Further, the TAB Deduction would only be made available to employers who follow strict business and accounting practices.

How does a TAB Deduction benefit workers?
While it would guarantee all workers a minimum cash compensation of $15/hr, a TAB Deduction would also modestly reduce take-home pay below what a straight up $15/hr minimum wage might otherwise provide to tipped employees who receive benefits. But the TAB Deduction does broadly benefit labor in two distinct ways:

First, a TAB Deduction removes from employers existing economic incentives to eliminate benefits, or to force workers into part-time work in an effort to cut costs by denying them benefits. In any workplace where average tips routinely exceed the cost of benefits, the labor-cost differential between part-time and full-time work is all but eliminated.

Second, the TAB Deduction addresses our epidemic of wage and tip theft by forcing employers to adhere to strict business and accounting practices (defined in ordinance and approved by regulators) in order to qualify. The TAB Deduction thus serves as a carrot for enticing employers into imposing stricter business practices upon themselves.

How does a TAB Deduction benefit employers?

It saves them money, duh, by permitting qualified employers to deduct the cost of providing benefits from their minimum wage obligation, up to the maximum allowable tip credit.

Conclusion:
Again, my preference would be for a straight-up $15 minimum wage, no tip credit (and certainly no “total compensation,” a proposal that only achieves $15 by totally redefining the meaning of the word “wage”). But if we’re going to talk about compromise, the least we can do is talk about these compromises creatively.

There’s more at stake here than simply the wages of Seattle workers. If we pass a $15 minimum wage, the rest of the state and the nation will look to us as an example. So in a nation where a tip “credit” is already deducted from the incomes of most tipped employees, anything we do to set a precedent for a better tip credit could end up improving the lives of millions of minimum wage workers. Likewise, anything we do to undermine Washington’s position as one of only seven states without a tip credit (or even worse, to set precedent for “total compensation”) could have a dramatically negative impact far outside Seattle’s borders.

That said, I don’t believe that many on the pro-business side of the table are negotiating in good faith, and I don’t believe that they are truly interested in debating compromise. But they are welcome to prove me wrong.

26 Stoopid Comments

Seattle Times Makes the Case for Approving Prop 1. Inadvertently.

by Goldy — Monday, 4/14/14, 8:58 am

Metro Bus

I suppose because a 15.6 percent cut in Metro bus service would be totally all right:

THE campaign for King County Proposition 1 says 600,000 hours of Metro bus service would be cut if voters don’t approve the measure.

At best, that’s disingenuous. The facts matter when asking voters to increase car tabs from $20 to $60 and to raise the sales tax 0.1 percent on the April 22 ballot.

In fact, Metro has known since at least March 13 that better-than-expected tax collections would reduce the expected cut down to 550,000 hours. That’s because King County’s trampoline rebound from the Great Recession netted Metro $5.4 million more last year than had been projected. Metro is now forecast to receive $13.7 million more in 2014 and $15.9 million more in 2015.

First of all, the editors at the Seattle Times are the last people who can straight-facedly critique the math of others. But Jesus… talk about nitpicking. Are they seriously making the case that voters should reject Proposition 1 because Metro only faces a 550,000-hour 15.6 percent cut in bus service as opposed to the 600,000-hour 17 percent cut threatened? Accept their math and the region is still facing a devastating cut in bus service at a time there is demand to expand it (not to mention our region’s growing backlog of deteriorating roads—40 percent of Prop 1’s revenue goes to road repairs). If this is the strongest case the editors can make against Prop 1, it only emphasizes the need to pass it.

As to modestly rising sales tax forecasts, yeah, that’s true. But sales tax revenue is notoriously volatile. Indeed, this recent uptick in revenue comes on the heels of a 10-year $1.2 billion sales tax revenue shortfall from previous forecasts. So much for forecasting sales tax revenue. And with reserve funds now standing near nil, Metro has little margin of error before a couple bad quarters forces additional cuts.

Look, time has run out. Prop 1 isn’t perfect, but after two years of waiting for Olympia to stop dicking around with our transit funding, this is the only option we have left. Pass Prop 1 or cut 600,000 hours of Metro bus service—give or take a 100,000 hours.

32 Stoopid Comments

Unregulated Uber Cutting Off Drivers Without Warning, Says Cut-Off Drivers

by Goldy — Friday, 4/11/14, 10:29 am

Uber LogoHey Uber drivers… welcome to the wonderful world of unregulated for-hire, where the TNCs can just cut you off without notice, for any reason and any time, and you have absolutely no legal recourse:

“My rating went to a 4.6 (out of a five-star rating) and they suspended me. They just turned my phone off. They didn’t give me a warning; they didn’t give me a week’s notice. I just woke up in the morning to go to work and my phone was off. And they’ve done that to a lot of people,” said former Uber driver, Will Anderson. “That’s huge—if you make an investment in a vehicle and you have a family you need to feed.”

Hooray for the free market and the efficiencies it imposes! No doubt Uber knows what it is doing, so we should just trust them.

A panel of TNC and town car drivers will be holding a public forum to air concerns about Uber’s “predatory practices” on Sunday, April 13, 2 pm, at the Yesler Community Center, 917 E Yesler Way in Seattle. Seattle City Council members Kshama Sawant and Mike O’Brien are scheduled to be there.

16 Stoopid Comments

Seattle Times Cheers Boeing and Microsoft for Spending Mere 0.03 Percent of Earnings Toward Fixing a Problem They Created

by Goldy — Friday, 4/11/14, 9:14 am

If you’ve ever wondered what it tastes like to lick Brad Smith’s asshole, just ask the editors at the Seattle Times:

THE state’s two biggest companies took a gamble on Washington a few years back, and at long last the state has finally paid off.

Back in 2011, Boeing and Microsoft pledged $25 million apiece for the Washington State Opportunity Scholarship program. The program, run by the College Success Foundation, defrays costs for low- and middle-income students when they major in science, technology, engineering, math and health at Washington colleges. Each student is eligible for as much as $17,000.

So Boeing and Microsoft save hundreds of millions of dollars a year in state tax breaks and tax loopholes—denying the state the funds necessary to adequately fund higher education and other crucial investments—and yet we should cheer them as civic heroes for spending a mere $25 million each (0.03 percent of their $164 billion in combined 2013 revenue) to subsidize educating their own workforce?

Hooray for capitalism!

The “gamble” Boeing and Microsoft took was that this feeble gesture would provide political cover for their roles in perpetuating the structural revenue deficit that undermines Washington’s K-12 and higher education systems as a whole. And it was a gamble that has paid off handsomely under the credulous watch of our state’s editorial boards.

10 Stoopid Comments

Why I’ll Stop Tipping Baristas If Seattle Passes a “Tip Credit”

by Goldy — Thursday, 4/10/14, 10:16 am

Coffee

Image courtesy of amenic181 | FreeDigitalPhotos.net

There is this weird counterintuitive and counterfactual meme being put forth by the anti-minimum wagers that argues that a lack of a “tip credit” could ironically end up hurting the incomes of tipped employees. For example, from an anonymous server writing in The Stranger (because that’s apparently their new journalism business model—anonymous people writing for free):

Tips are an important part of my income. As someone who makes a great living on tips, I don’t want the awesome culture and great jobs created by Seattle’s restaurant boom to disappear. I do not believe customers will keep tipping at the percentages they do now if they know my base wage has gone up 60 percent. And if that’s how customers respond, the end result will be a drastically lower income for those of us who work in restaurants and bars—gender aside.

Oh. Well. She is anonymous after all. So perhaps we should just defer to her “belief” and scrap this whole foolish $15 minimum wage endeavor entirely? Best intentions and all that, but my bad.

Oh please.

First, let’s be clear that this argument is not just totally speculative; it is also somewhat illogical. As an episode of Freakonomics Radio pointed out last year, tipping isn’t exactly a rational economic exercise. It’s a matter of custom. So most Americans tip out of a combination of habit and peer pressure—15 percent if you’re a cheapskate, 20 percent if you’re not, or double the sales tax rounded up here in Seattle if you’re lazy like me. In fact, Seattle’s tipping culture is so ingrained, that it’s hard to imagine a minimum wage hike impacting most consumers behavior with or without a tip credit. Indeed, if restaurant owners carry through on their threat to raise prices, then it is at least equally reasonable to speculate that tipped income will go up, as diners simply add their customary tip percent onto the new pricier bill.

Further undermining this anti-$15 speculation is the total absence of supporting facts. I mean, it’s not like we haven’t raised the minimum wage many times before—by a whopping 85 percent for tipped employees here in Washington state between 1988 and 1989—and with no tip credit! This isn’t ancient history. And yet there is zero evidence of mass restaurant closures, job losses, or a decline in tipping in the aftermath of this precipitous wage hike. The economic data is there. If there was even the flimsiest evidence to suggest a negative economic impact from that 1987 minimum wage initiative, you can be sure that the bullshit artists at the Washington Policy Center would be flinging it.

Finally, even if a $15 minimum wage with no tip credit might influence some diners to chintz on their tips (because you begrudge the server bringing you your $40 entree a $5/hour raise, or something), consumers would have to have this information in order to act on it. But most diners are low-information consumers, as well as creatures of habit. Ms. Anonymous acknowledges our “awesome” tip culture, despite the fact that Washington is one of only seven states without a tip credit. Do most diners understand that?

I do, and yet I tip the same percentage back East in Pennsylvania and New Jersey that I do here in Seattle, because habit! Except for one big difference: Back East, I almost never drop money in the tip jar for take out coffee or food, because I know the servers won’t get it! For example, New Jersey’s tip credit is an abusive $6.12 an hour. No Starbucks barista in New Jersey is making anything close to that in tips. So every dollar you stuff in a tip credit state’s tip jar is going straight toward lowering Starbucks’ labor costs.

Of course, Seattle baristas do better. We don’t currently have a tip credit. And yet according to a survey conducted by the coffee blog Sprudge, our tipping culture here is especially strong:

I was a little surprised that Seattle made only one appearance in the top 10 list for tips with $9.28/hr, despite tips in Seattle making up the highest average percent of income of any city at 35%. In my experience, the high-end of tips in Seattle may not be great, but tipping is obviously a cultural value: Seattle was #3 for average tips at $5.85/hr.

FYI, that $5.85 an hour average is almost exactly what our tip credit would be. You might as well just dump that tip jar directly into the employer’s pockets.

And that’s why if we pass a tip credit here in Seattle, I’ll stop tipping baristas here too. Because I’m not stupid.

29 Stoopid Comments

Open Thread 4/10

by Carl Ballard — Thursday, 4/10/14, 7:59 am

– I’m cautiously optimistic about the Seattle Bike Master Plan

– How Portland can reduce the wage gap between women and men

Often there’s really not any more time on the “day off” for creative work than during the rest of the week. Everything else that got put off during the week rushing in to fill that gap left by the day job. [h/t]

– If you’ve had your bike stolen in Marysville, go look for it.

– Today in conservative victimhood

– Now where will I possibly be able to find deep fried seafood in Ballard? (I like Ivar’s, but I don’t think I’ve ever been to the Ballard location).

8 Stoopid Comments

Open Thread 4/8

by Carl Ballard — Tuesday, 4/8/14, 5:21 pm

– Happy home opener day, Mariners fans. It’s maybe not the nicest day for it.

– Happy? equal pay day.

– It’s always pretty to think that Washington will come together in bipartisan comity and start governing for the good of all the people. To think this will happen as a result of the vastly wealthy having even more influence than they already have strikes me as so optimistic as to be delusional.

– What Does 17% Mean?

– Here’s another benefit in Seattle for Oso if you’re interested in it.

– We should definitely keep policing other people’s weight.

– Poor, poor Representative McAllister

20 Stoopid Comments

Cheaters Prosper: How a Tip Credit Incentivizes Wage Theft

by Goldy — Tuesday, 4/8/14, 3:40 pm

There are lot of good reasons to oppose a “tip credit”, but one that isn’t often discussed is the way it incentivizes bad behavior on the part of unscrupulous employers by magnifying the rewards of wage theft. The math is subtle, but simple.

Let’s say you earn $27 in tips over the course of a nine hour shift. Under a straight up $15 minimum wage, you’d earn $15 an hour in wages plus $3 an hour in tips for a total cash compensation of $18 an hour. That’s $162 in tips and wages over a nine-hour shift.

But under a tip credit, that same shift would earn you only $135: $12 an hour in wages, plus $3 an hour in tips, for a total of $15 an hour. If your tips per hour are smaller than the maximum tip credit, all of your tips go toward your employer’s tip credit. You know—in his pocket. Whether you earn a dollar or two an hour more in tips or a dollar or two less, it makes no difference on your paycheck—all it does is raise or lower your employer’s labor cost by an equal amount. And that’s where the wage theft incentive comes in.

For example, let’s say your employer cheats you out of an hour, forcing you to clock out after only 8 hours or recording only 8 hours on your pay stub. Well, of course you lose an hour of pay, so your paycheck goes down $15 to $120. But your employer, who would have paid you $12 an hour over the course of a 9-hour shift, now gets to spread your $27 in tip credit out over fewer hours. $27 divided by 8 equals about $3.38 an hour in tip credit. So rather than paying you $12 an hour for 9 hours of work, your employer now only pays you $11.62 an hour for 8 hours of work. Such a bargain!

Of course, not all employers cheat like this. I’m guessing most don’t. But some do. And as the free marketeers will tell you, if you incentivize bad behavior, you’re likely to get more of it.

6 Stoopid Comments

Re: Regressive

by Carl Ballard — Tuesday, 4/8/14, 8:07 am

In Goldy’s metacommentary piece yesterday on The Seattle Times’ oppposition to funding Metro, he gave them some well deserved shit for pretending to oppose it because of its regressive nature.

Oh no! It’s a “regressive” tax! This from an editorial board that has opposed every single progressive tax (like, you know, on income or estates) that has come before it. What a bunch of fucking concern trolls.

But I think it’s even worse than that: We’ve known something was coming for a while. The Seattle Times ed board hasn’t exactly been leading the charge for a better system. Dow Constantine has been telegraphing since he got into office that he’d do something if the state didn’t act. And in that time The Seattle Times has neither suggested what that something ought to be nor have they pushed the legislature to act to allow King County to have a better system.

Could you imagine how different the debate would be in the state, if the state’s leading — or at least largest — paper had editorial after editorial pushing the legislature to let King County tax ourselves however we want? If they demanded that even if the GOP didn’t pass a complete transit package, that they at least give us a more progressive option?

10 Stoopid Comments

Seattle Times Throws Metro Riders Under the Bus

by Goldy — Monday, 4/7/14, 10:02 am

I’m trying to generate the appropriate outrage at the Seattle Times editorial board for endorsing a “No” vote on King County’s Metro-saving Proposition 1, but then it’s kinda like raging at my dog for killing squirrels. It’s what she does. It’s her nature. And reading this editorial is like watching the editors chase a squirrel.

VOTERS should weigh the regressive tax request embedded in King County Proposition 1 against history.

Oh no! It’s a “regressive” tax! This from an editorial board that has opposed every single progressive tax (like, you know, on income or estates) that has come before it. What a bunch of fucking concern trolls.

The pattern is clear. As in previous rounds of asking taxpayers for more money, Metro sees its shortfall as a revenue problem, rather than thoroughly confronting its well-documented unsustainably high operating costs.

And since the pattern is so “clear” and these unsustainably high operating costs are so “well-documented,” we can presume the editors are about to clearly document them.

Um… no:

Voters also should consider the near future when they face many other ballot requests, from parks to city transportation. Tax fatigue could jeopardize crucial investments such as public prekindergarten.

Yes, please consider the other future tax measures the Seattle Times will endorse “No” on. For the children!

When Washington voters in 1999 approved Initiative 695, it wiped away a vehicle excise tax that gave the King County Metro system about one-third of its revenues.

In response, King County leaders asked voters for a 0.2 percent increase in the county sales tax “to preserve and improve our bus system,” promising 575,000 more hours of bus service, as the 2000 voter pamphlet read. Voters said yes. Over the next six years, they got only 203,000 hours of new bus service.

Yes, voters did approve I-695. But not Seattle and King County voters. We rejected it. Also, the MVET that I-695 wiped away was the most progressive tax in the most regressive tax system in the nation. But I don’t remember the fucking concern trolls at the Seattle Times shedding any tears over that.

In 2006, King County leaders again asked for a 0.1 percent sales tax increase, to fund Rapid Ride expansion. Voters said yes. The promised expansion is behind schedule, and in spots is not the superfast service promised.

And in 2008 the nation plunged into the Great Recession, taking Metro’s sales tax revenue with it.

During this period, driver wages rose significantly, to the point that Metro had the third-highest-paid drivers in the country. In 2008, Metro attracted the scrutiny of the Municipal League of King County, which issued a damning report on the agency’s cost structure. In 2013, it issued a grumpy follow-up report, noting modest improvements but reiterating cost structure concerns.

A) That was six years ago. B) Don’t trust this editorial board’s numbers. Ever. And C) Unionized bus drivers! It burns!

In 2012, after sales-tax revenues crashed because of the Great Recession, Metro got a boost with a temporary $20 car-tab tax.

A temporary fee that only made up a portion of Metro’s shortfall. The rest was met through cost cuts, fare hikes, and using up the last of its cash reserves. Also, this temporary fee was intended to tide us over until the legislature approved a more stable funding source. It never did. So King County is using the only taxing authority it has.

This year, King County leaders are back again. Metro faces a $75 million deficit when that car tab expires. This time, the request is breathtaking, for its size and for the regressive nature of the proposal. A $40 hike in car tabs and another 0.1 percent sales tax increase would yield an estimated $1.6 billion over 10 years. Three-fifths of it goes to Metro, the remainder to roads, bike lanes and road diet programs.

Of course they’re back again. The temporary $20 car tab fee expired, and the reserve funds are all used up. Everybody understood it was only a stopgap measure at the time the car tab fee was passed. And the size of the package is no more “breathtaking” than the MVET authority Olympia promised, but refuses to deliver. The two tax packages raise exactly the same amount of revenue, and for exactly the same purposes.

As for the regressive nature of the tax, yes, car tabs and sales tax are more regressive than an MVET, which taxes the value of your car, and thus hits owners of more expensive vehicles harder. But what the fucking concern trolls at the Seattle Times don’t tell you is that is that the package includes a $20 rebate for low-income households, as well as a new low-income fare. And of course, nothing could be more regressive than slashing bus service!

Metro’s defenders cite recent cost-saving reforms in the 2010-2013 contract with the Amalgamated Transit Union Local 587, including a wage freeze the first year and an overall 2.3 percent increase the second year.

In the private sector, that would be called a rational response to an economic crisis. In the public sector, those concessions are deemed justification for a breathtaking new revenue increase.

Though the Municipal League is supporting Proposition 1, it does so “reluctantly,” citing ongoing concerns with cost controls and efficiencies. It urges Metro to do better, including measuring itself against peers.

But: If voters approve Proposition 1, King County would have no incentive to do the hard work of bringing down labor costs that still saddle Metro with the fifth-highest driver costs in the country, behind only Boston, Santa Cruz, Washington, D.C., and Chicago.

Let’s be clear, the Seattle Times opposition to Proposition 1 is based solely on its opposition to anything that remotely smells of organized labor. The drivers union is the editors’ squirrel. It doesn’t matter how regressive the taxes in Prop 1 are—if the measure balanced the tax hike by busting the union, the paper would happily wag its tail in approval.

Also, don’t trust the editors’ numbers. They’re almost always wrong.

If voters turn down Proposition 1, King County threatens a round of devastating bus-service cuts, many on popular routes including those carrying students to college. County and Metro leadership should not let that happen.

County leaders are trying not to let this happen. By raising revenue. Because, you know, shit costs money.

The threat ignores other options, including further fare increases and ever tighter control of administrative costs and capital expenses.

And the editors ignore the fact that Metro has been pursuing these options for years. Metro is about to raise fares for the fifth time since 2008—and it already has some of the highest farebox returns in the nation.

Cutting services is not a threat. If Prop 1 fails, service will be cut, just like it was in Pierce and Snohomish counties when they failed to raise new tax revenue.

King County has been negotiating with the drivers union for nine months. Talks are now in mediation. Both sides could earn voters’ trust with quick resolution of a contract that further drops costs.

Jesus. Again with drivers union. Squirrel!

Saying no to Proposition 1 is not a message that transit does not matter. It does. The region, particularly job-dense downtown Seattle, needs reliable bus service. Nor should a no vote be read in Olympia as a sign the state Legislature does not need to pass a transportation package that includes less regressive transit tax options. It does.

No, it’s a message that low taxes matter more than transit. At least to the editors of the Seattle Times.

Vote no on Proposition 1, and send King County government a message that Metro has more work to do on righting its cost structure before asking voters for more revenue.

Actually, all the Seattle Times is doing is sending a message that it is either too stupid to understand that time has run out, or too dishonest honest to admit it. The legislature was supposed to grant Metro MVET authority two sessions ago, but senate Republicans have persistently blocked the bill, you know, just because.

The $20 tab fee expires in June. The reserve funds are empty. Whatever other options may exist cannot be exercised in time to avoid devastating service cuts. Reject Prop 1 and Metro will slash service. That’s not a threat. That’s reality.

But look: squirrel!

16 Stoopid Comments

The Battle Between Terrible and Godawful

by Carl Ballard — Friday, 4/4/14, 8:01 am

Another election, another Pam Roach primary — and possibly general election — challenge.

State Sen. Pam Roach, a guardian of the Republican Party’s right flank in Olympia, is getting a challenge from a fellow Republican.

State Rep. Cathy Dahlquist, R-Enumclaw, announced this week that she will run against Roach. Under Washington’s “top two” primary system, the challenge creates the distinct possibility of a November battle between two Republicans in the 31st District of eastern King County and rural-exurban Pierce County.

And at the link, Dahlquist makes good noises about education, including mentioning teacher pay that the GOP often don’t when talking about education. Still, on many issues she’s a pretty standard Republican. She voted against the Reproductive Parity Act and marriage equality. And I couldn’t find any tax increases she supports, so wanting to pay for education is nice, but presumably it means by destroying the rest of the state’s social services. So sure, she’d almost certainly be better than Roach. But that’s a pretty low bar to clear.

No Comments

Open Thread 4/3

by Carl Ballard — Thursday, 4/3/14, 8:12 am

– Fort Hood can’t catch a break. Video loads automatically.

– City Hall Starts to Give a Shit About Women’s Pay Equity Again

– I love that Sound Transit has pictures for specific stations, but some of them don’t make a lot of sense (to me). Answer some questions to help them design the pictures for new light rail stations. [h/t]

– Supply and demand is a thing in housing.

– STOPPPPPP YOU’RE HURTING MY FEEEEEELINGS is apparently the new clarion call of the conservative movement. I’m still a little shocked by it.

63 Stoopid Comments

Worker Owned Cooperatives

by Carl Ballard — Monday, 3/31/14, 7:13 pm

This Sunday’s New York times had a story about worker owned cooperatives. The main example that they use is in San Francisco, but

If you happen to be looking for your morning coffee near Golden Gate Park and the bright red storefront of the Arizmendi Bakery attracts your attention, congratulations. You have found what the readers of The San Francisco Bay Guardian, a local alt-weekly, deem the city’s best bakery. But it has another, less obvious, distinction. Of the $3.50 you hand over for a latte (plus $2.75 for the signature sourdough croissant), not one penny ends up in the hands of a faraway investor. Nothing goes to anyone who might be tempted to sell out to a larger bakery chain or shutter the business if its quarterly sales lag.

Instead, your money will go more or less directly to its 20-odd bakers, who each make $24 an hour — more than double the national median wage for bakers. On top of that, they get health insurance, paid vacation and a share of the profits. “It’s not luxury, but I can sort of afford living in San Francisco,” says Edhi Rotandi, a baker at Arizmendi. He works four days a week and spends the other days with his 2-year-old son.

Arizmendi and its five sister bakeries in the Bay Area are worker-owned cooperatives, an age-old business model that has lately attracted renewed interest as a possible antidote to some of our most persistent economic ills. Most co-ops in the U.S. are smaller than Arizmendi, with around a dozen employees, but the largest, Cooperative Home Care Associates in the Bronx, has about 2,000. That’s hardly the organizational structure’s upper limit. In fact, Arizmendi was named for a Spanish priest and labor organizer in Basque country, José María Arizmendiarrieta. He founded what eventually became the Mondragon Corporation, now one of the region’s biggest employers, with more than 60,000 members and 14 billion euro in revenue. And it’s still a co-op.

Does anyone know about cooperatives in the Seattle area if people want to support them with their dollars? I was trying to think of any, and I couldn’t. I mean the advantages of capitalism without, you know, creating more capitalists (except their financiers, and I guess customers). If they make a decent coffee with good enough pastries, that’s really all I want out of a coffee shop.

If people know of local worker cooperatives, especially ones that provide good goods and services, please leave a comment.

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