Mission Robert F. Wagner Graduate School of Public

MISSION MISSION The Wagner Review is the student-run academic journal of the The Wagner Review is the student-run academic journal of the Robert F. Wagner Graduate School of Public Service at New York University. Robert F. Wagner Graduate School of Public Service at New York University. The Wagner Review promotes dialogue on a wide range of issues related The Wagner Review promotes dialogue on a wide range of issues related to public service by publishing original research from a diverse group of to public service by publishing original research from a diverse group of students and alumni that reflects the academic programs offered and students and alumni that reflects the academic programs offered and scholarly research conducted at NYU Wagner. scholarly research conducted at NYU Wagner.

ROBERT F. WAGNER GRADUATE NEW YORK ROBERT F. WAGNER GRADUATE NEW YORK SCHOOL OF PUBLIC SERVICE UNIVERSITY SCHOOL OF PUBLIC SERVICE UNIVERSITY Established in 1938, the Robert F. Wagner Founded in 1831, New York University Established in 1938, the Robert F. Wagner Founded in 1831, New York University Graduate School of Public Service offers (NYU) is the largest private university in Graduate School of Public Service offers (NYU) is the largest private university in advanced programs leading to the professional the United States. The University, which advanced programs leading to the professional the United States. The University, which degrees of Master of Public Administration, is composed of 14 schools, colleges, and degrees of Master of Public Administration, is composed of 14 schools, colleges, and Master of Urban Planning, Executive Master of divisions, occupies five major centers in Master of Urban Planning, Executive Master of divisions, occupies five major centers in Public Administration, and Doctor of Philosophy. Manhattan. It operates branch campus Public Administration, and Doctor of Philosophy. Manhattan. It operates branch campus Through these rigorous programs, NYU Wagner and research programs in other parts of Through these rigorous programs, NYU Wagner and research programs in other parts of educates the future leaders of public, nonprofit, the United States and abroad, as well as educates the future leaders of public, nonprofit, the United States and abroad, as well as and health institutions, as well as of private study abroad programs in more than 25 and health institutions, as well as of private study abroad programs in more than 25 organizations serving the public sector. countries. organizations serving the public sector. countries.

EDITOR-IN-CHIEF Angela Cheng EDITOR-IN-CHIEF Angela Cheng Sean Capperis Caitlin Gokey Sean Capperis Caitlin Gokey Effie O. Johnson Effie O. Johnson MANAGING EDITOR Tom Ogletree MANAGING EDITOR Tom Ogletree Emma Hersh Laura Rivera Emma Hersh Laura Rivera Carly Rothman Carly Rothman ONLINE EDITOR ONLINE EDITOR Diana Huynh EDITORS Diana Huynh EDITORS Nora Anderson Nora Anderson BUSINESS MANAGER Supurna Banerjee BUSINESS MANAGER Supurna Banerjee Edna Mariñelarena Stacy Edwards Edna Mariñelarena Stacy Edwards Amy Finnegan Amy Finnegan PUBLIC RELATIONS MANAGER Alexander Habib PUBLIC RELATIONS MANAGER Alexander Habib Amanda Doreson Li Huang Amanda Doreson Li Huang Carlyn Maksymuk Carlyn Maksymuk REVIEW BOARD Elisabeth Sewall REVIEW BOARD Elisabeth Sewall Boykin Clarke Allie Skayne Boykin Clarke Allie Skayne Emma Taya Darch Valerie Stevens Emma Taya Darch Valerie Stevens Susan Hayes Susan Hayes Patrick Hess FACULTY ADVISOR Patrick Hess FACULTY ADVISOR Kate Horner Dr. Michael S. Doran Kate Horner Dr. Michael S. Doran Barbara Kiviat Barbara Kiviat Steven Kohn Steven Kohn David Krantz PRODUCTION STAFF David Krantz PRODUCTION STAFF Brian Marson Brian Marson COPY EDITOR COPY EDITOR Michael Patullo Rob Horning Michael Patullo Rob Horning Laura Robitzek Laura Robitzek Sarah Schwimmer DESIGNER Sarah Schwimmer DESIGNER Alex Muller Alex Muller EDITORIAL BOARD EDITORIAL BOARD SENIOR EDITORS PRINTER SENIOR EDITORS PRINTER Nicole Krop Casey G&H Soho, Inc. Nicole Krop Casey G&H Soho, Inc.

SUBMISSION GUIDELINES SUBMISSION GUIDELINES The Review accepts submissions from current full- and part-time students of the school, The Review accepts submissions from current full- and part-time students of the school, as well as from alumni. Articles are vetted through a competitive process by the Review as well as from alumni. Articles are vetted through a competitive process by the Review Board and prepared for production by the Editorial Board. Articles should be submitted in Board and prepared for production by the Editorial Board. Articles should be submitted in English, and should represent current original research. Submissions should represent the English, and should represent current original research. Submissions should represent the broad range of interests relevant to the wider NYU Wagner community. For more broad range of interests relevant to the wider NYU Wagner community. For more information, please visit www.thewagnerreview.org/join/submit-your-work/. information, please visit www.thewagnerreview.org/join/submit-your-work/. EDITOR’S NOTE EDITOR’S NOTE

As public servants, it is difficult for us not to reassess the public sector in light of uncertain economic As public servants, it is difficult for us not to reassess the public sector in light of uncertain economic conditions. David Colby Reed offers a cautionary note: “By advancing blame-based causal narratives, conditions. David Colby Reed offers a cautionary note: “By advancing blame-based causal narratives, policymakers risk treating the symptoms of the crisis rather than addressing its root causes.” Recovery policymakers risk treating the symptoms of the crisis rather than addressing its root causes.” Recovery has begun by many measures, but followers of the public sector have much to be concerned about. has begun by many measures, but followers of the public sector have much to be concerned about. Frustrations about labor, public finance, service delivery, and individual financial wellbeing have Frustrations about labor, public finance, service delivery, and individual financial wellbeing have opened new arenas for spirited public dialogue. Politically, pervasive dissatisfaction with the status opened new arenas for spirited public dialogue. Politically, pervasive dissatisfaction with the status quo accompanied the rise of the Tea Party. Overseas, this discourse has exploded as popular move- quo accompanied the rise of the Tea Party. Overseas, this discourse has exploded as popular movements challenged regimes in North Africa and the Middle East. The duties of government are less clear, ments challenged regimes in North Africa and the Middle East. The duties of government are less clear, and as public service practitioners, we must make sense of it before we can move forward. and as public service practitioners, we must make sense of it before we can move forward.

The pieces presented in the 2010-2011 edition of The Wagner Review tackle changes in government The pieces presented in the 2010-2011 edition of The Wagner Review tackle changes in government from ground-level programs to their fundamental structures. from ground-level programs to their fundamental structures.

Redistributive programming has reentered national discourse as lawmakers debate the efficacy of Redistributive programming has reentered national discourse as lawmakers debate the efficacy of these programs and their financial burden. In an exploration of a National School Lunch Program pilot these programs and their financial burden. In an exploration of a National School Lunch Program pilot in Philadelphia, Michelle R. Wong finds that a simpler method to determining eligibility boosts both in Philadelphia, Michelle R. Wong finds that a simpler method to determining eligibility boosts both participation and efficiency. In the first of two pieces of original empirical research, Elizabeth Wolff, participation and efficiency. In the first of two pieces of original empirical research, Elizabeth Wolff, Kristin Van Busum, Rebecca DiBennardo, Blanca Esquivel, and Alissa Vladimir draw an instruc- Kristin Van Busum, Rebecca DiBennardo, Blanca Esquivel, and Alissa Vladimir draw an instruc- tive connection between income transfers and maternal and infant health. Locally, Timothy Farrell tive connection between income transfers and maternal and infant health. Locally, Timothy Farrell delves into the first conditional cash transfer program implemented in the U.S., and argues that its delves into the first conditional cash transfer program implemented in the U.S., and argues that its best chance for success is to focus on early childhood. best chance for success is to focus on early childhood.

Three pieces reexamine hidden or inconspicuous infrastructure and provide concrete solutions to Three pieces reexamine hidden or inconspicuous infrastructure and provide concrete solutions to meet new demands. In New York, Alexander J. Wolk relays best practices in green infrastructure that meet new demands. In New York, Alexander J. Wolk relays best practices in green infrastructure that the city can use to meet its ambitious environmental goals. Amalea Smirniotopoulos investigates the the city can use to meet its ambitious environmental goals. Amalea Smirniotopoulos investigates the New York Police Department’s information infrastructure, offering a proposal to measure performance New York Police Department’s information infrastructure, offering a proposal to measure performance with measures of community perceptions as well as crime. On a national scale, Douglas Coulter ex- with measures of community perceptions as well as crime. On a national scale, Douglas Coulter ex- plores the federal system that allocates space for wireless communications and evaluates a proposal plores the federal system that allocates space for wireless communications and evaluates a proposal to auction the portion previously used by over-the-air television broadcasts. to auction the portion previously used by over-the-air television broadcasts.

Out of periods of crisis often come opportunities for change and systemic improvement. As the democ- Out of periods of crisis often come opportunities for change and systemic improvement. As the democracy-building process begins in Egypt, Brianne Lute describes challenges that the nation will face dur- racy-building process begins in Egypt, Brianne Lute describes challenges that the nation will face during its transition as well as elements that are critical for the establishment of a successful democracy. ing its transition as well as elements that are critical for the establishment of a successful democracy.

Finally, this volume’s second empirical investigation tackles the coordination of longstanding policies Finally, this volume’s second empirical investigation tackles the coordination of longstanding policies within a country. Zayne Abdessalam, Fernando Henao, and Shana Wright detangle the intents of within a country. Zayne Abdessalam, Fernando Henao, and Shana Wright detangle the intents of agricultural policies and their impacts on the organization of farms. agricultural policies and their impacts on the organization of farms.

Our authors demonstrate the relevance of NYU Wagner’s integrative, interdisciplinary academic ap- Our authors demonstrate the relevance of NYU Wagner’s integrative, interdisciplinary academic approach, as refining government is a function of resources, planning, implementation, and reflection. In proach, as refining government is a function of resources, planning, implementation, and reflection. In this time of financial restraint and uncertainty, there is increased pressure for governments to do more this time of financial restraint and uncertainty, there is increased pressure for governments to do more with less, reevaluate old paradigms, find innovative solutions for new challenges, and for some, decide with less, reevaluate old paradigms, find innovative solutions for new challenges, and for some, decide how to allocate political power and authority. how to allocate political power and authority.

Sean Capperis Emma Hersh Sean Capperis Emma Hersh Editor-in-Chief Managing Editor Editor-in-Chief Managing Editor ACKNOWLEDGEMENTS ACKNOWLEDGEMENTS

The 2010-2011 school year has been a transformative one for The Review, and it could not The 2010-2011 school year has been a transformative one for The Review, and it could not have happened without our board, staff, advisors, and allies in the NYU Wagner community. have happened without our board, staff, advisors, and allies in the NYU Wagner community.

Business Manager Edna Mariñelarena has found new efficiencies in our production process Business Manager Edna Mariñelarena has found new efficiencies in our production process and Public Relations Manager Amanda Doreson has brought new energy to the public face and Public Relations Manager Amanda Doreson has brought new energy to the public face of The Review. We thank Online Editor Diana Huynh for her simultaneous guidance in the of The Review. We thank Online Editor Diana Huynh for her simultaneous guidance in the production process and development of our online journal. Copy Editor Rob Horning and production process and development of our online journal. Copy Editor Rob Horning and Designer Alex Muller have taken the presentation of our print edition to new levels of quality Designer Alex Muller have taken the presentation of our print edition to new levels of quality and clarity. The Editorial and Review Boards are the heart of The Review, and they and our au- and clarity. The Editorial and Review Boards are the heart of The Review, and they and our authors embody our student-centered approach to producing the journal. As we developed our thors embody our student-centered approach to producing the journal. As we developed our operating strategy for this year and the future, Aja Horwitz Carpenter, Tracey Gardner, and operating strategy for this year and the future, Aja Horwitz Carpenter, Tracey Gardner, and Professor Michael Doran have provided invaluable advice to keep the journal sustainable. Professor Michael Doran have provided invaluable advice to keep the journal sustainable.

We are grateful to a new partnership of school and student leadership for making this year’s We are grateful to a new partnership of school and student leadership for making this year’s journal possible. We look forward to the continued involvement of the Wagner Student As- journal possible. We look forward to the continued involvement of the Wagner Student As- sociation and the student body in future editions of The Review. Finally, we thank Rogan sociation and the student body in future editions of The Review. Finally, we thank Rogan Kersh, Tyra Liebmann, David Schachter, and Dean Ellen Schall for their continued support Kersh, Tyra Liebmann, David Schachter, and Dean Ellen Schall for their continued support of student scholarship at NYU Wagner and the unique educational enrichment of a student- of student scholarship at NYU Wagner and the unique educational enrichment of a student- produced journal. produced journal.

Together, our efforts this year will ensure that we will continue to share innovative ideas for Together, our efforts this year will ensure that we will continue to share innovative ideas for public service with the NYU Wagner community and a broader community of practitioners for public service with the NYU Wagner community and a broader community of practitioners for years to come. years to come. TABLE OF CONTENTS TABLE OF CONTENTS

Special Social Policy Section Special Social Policy Section An Assessment of Opportunity NYC-Family Rewards: 1 An Assessment of Opportunity NYC-Family Rewards: 1 A Conditional Cash Transfer Demonstration Project A Conditional Cash Transfer Demonstration Project Timothy Farrell Timothy Farrell

Increasing Immigrant Student Access to National School Lunch Benefits: 9 Increasing Immigrant Student Access to National School Lunch Benefits: 9 Implications of Federal Certification Methods Implications of Federal Certification Methods Michelle R. Wong Michelle R. Wong

The Effect of the Generosity of Welfare Benefits on Maternal 21 The Effect of the Generosity of Welfare Benefits on Maternal 21 and Infant Health Among Unmarried, Low-Educated Women and Infant Health Among Unmarried, Low-Educated Women Elizabeth Wolff, M.D.; Kristin Van Busum; Rebecca DiBennardo; Elizabeth Wolff, M.D.; Kristin Van Busum; Rebecca DiBennardo; Blanca Esquivel; Alissa Vladimir Blanca Esquivel; Alissa Vladimir

Improving the NYPD’s Performance Management System by Measuring 39 Improving the NYPD’s Performance Management System by Measuring 39 Legal Cynicism Legal Cynicism Amalea Smirniotopoulos Amalea Smirniotopoulos

Where the Water Meets the Road: Lessons for Stormwater Capture 49 Where the Water Meets the Road: Lessons for Stormwater Capture 49 on New York Streets on New York Streets Alexander J. Wolk Alexander J. Wolk

Efficient Spectrum Policy: D Block for the Public or Profit? 61 Efficient Spectrum Policy: D Block for the Public or Profit? 61 Douglas Coulter Douglas Coulter

The Nuts and Bolts of Building Democracy in Egypt 73 The Nuts and Bolts of Building Democracy in Egypt 73 Brianne Lute Brianne Lute

Agricultural Industrialization, Policy, and Crop Diversity 81 Agricultural Industrialization, Policy, and Crop Diversity 81 in the U.S.: A Panel Data Analysis 1978-2007 in the U.S.: A Panel Data Analysis 1978-2007 Zayne Abdessalam, Fernando Henao, Shana Wright Zayne Abdessalam, Fernando Henao, Shana Wright

Long Shadows: Meaning-Making Amid Dueling Narratives 105 Long Shadows: Meaning-Making Amid Dueling Narratives 105 of the Financial Crisis of the Financial Crisis David Colby Reed David Colby Reed

Author and Staff Biographies 115 Author and Staff Biographies 115

An Assessment of Opportunity An Assessment of Opportunity NYC-Family Rewards NYC-Family Rewards A Conditional Cash Transfer A Conditional Cash Transfer Demonstration Project Demonstration Project

Timothy Farrell Timothy Farrell

Over the past Over the past ABSTRACT 15 years, ABSTRACT 15 years, developing countries have experimented with developing countries have experimented with conditional cash transfers (CCTs) as a means of conditional cash transfers (CCTs) as a means of alleviating poverty and spurring poor families alleviating poverty and spurring poor families to invest in their children’s human capital. to invest in their children’s human capital. Recently, New York City piloted the first CCT Recently, New York City piloted the first CCT program in a developed country: Opportunity program in a developed country: Opportunity NYC-Family Rewards, a randomized, controlled NYC-Family Rewards, a randomized, controlled demonstration project that enrolled 4,800 demonstration project that enrolled 4,800 families. Similar to programs developed in families. Similar to programs developed in Mexico and Brazil, Family Rewards offered Mexico and Brazil, Family Rewards offered participants cash rewards, which ranged from participants cash rewards, which ranged from $50 to $600, conditioned on such behaviors $50 to $600, conditioned on such behaviors as meeting school-attendance benchmarks, as meeting school-attendance benchmarks, maintaining health insurance, and maintaining maintaining health insurance, and maintaining full-time employment. The initial evaluation by full-time employment. The initial evaluation by MDRC, a policy-research firm, found that while MDRC, a policy-research firm, found that while the program was successful at reducing current the program was successful at reducing current levels of poverty among treatment families, levels of poverty among treatment families, the results were insignificant or mixed for a the results were insignificant or mixed for a number of other targets, such as improving number of other targets, such as improving academic performance among elementary and academic performance among elementary and high school students. This paper recommends high school students. This paper recommends that future CCT demonstration projects in the that future CCT demonstration projects in the U.S. focus on conditioning behaviors that lead U.S. focus on conditioning behaviors that lead to investments in early childhood. Research to investments in early childhood. Research suggests that investments in early childhood suggests that investments in early childhood reap larger rewards than those made later reap larger rewards than those made later and may help mitigate the cognitive and and may help mitigate the cognitive and noncognitive deficits that are associated with noncognitive deficits that are associated with exposure to poverty in early childhood. exposure to poverty in early childhood. Overview Opportunity NYC-Family Overview Opportunity NYC-Family Rewards Rewards Since 1997, an increasing number of developing Since 1997, an increasing number of developing countries have adopted conditional cash transfer Funded with private money from the Rockefeller Foun- countries have adopted conditional cash transfer Funded with private money from the Rockefeller Foun- (CCT) programs as a means of reducing poverty and dation, Opportunity NYC-Family Rewards represents the (CCT) programs as a means of reducing poverty and dation, Opportunity NYC-Family Rewards represents the inducing poor and near poor families to invest more first time a CCT program has been tested in a developed inducing poor and near poor families to invest more first time a CCT program has been tested in a developed fully in their children’s human capital.1 In contrast country.3 Unlike CCT programs in the developing world, fully in their children’s human capital.1 In contrast country.3 Unlike CCT programs in the developing world, to unconditional cash transfers, which may base eli- Family Rewards did not function as the sole safety net for to unconditional cash transfers, which may base eli- Family Rewards did not function as the sole safety net for gibility requirements on such factors as income and the poor. Rather, this experimental program was designed gibility requirements on such factors as income and the poor. Rather, this experimental program was designed number of dependents, CCT programs disburse aid to supplement existing antipoverty policies in the U.S., number of dependents, CCT programs disburse aid to supplement existing antipoverty policies in the U.S., only to families who successfully fulfill prespecified including income supports like Temporary Assistance only to families who successfully fulfill prespecified including income supports like Temporary Assistance human-capital investments, such as immunizing their for Needy Families (TANF) and the Earned Income Tax human-capital investments, such as immunizing their for Needy Families (TANF) and the Earned Income Tax children and making sure their children meet school- Credit (EITC). As a privately funded initiative of Mayor children and making sure their children meet school- Credit (EITC). As a privately funded initiative of Mayor attendance benchmarks. Bloomberg’s NYC Center for Economic Opportunity, attendance benchmarks. Bloomberg’s NYC Center for Economic Opportunity, Family Rewards moved forward without incurring the Family Rewards moved forward without incurring the In 2010, MDRC, a policy-research firm, released political debates that often surround the proposition of In 2010, MDRC, a policy-research firm, released political debates that often surround the proposition of findings of the first randomized CCT demon- publicly funded CCT programs. Commentators on the findings of the first randomized CCT demon- publicly funded CCT programs. Commentators on the stration project attempted in the United States: political right have argued that CCTs erode the “moral stration project attempted in the United States: political right have argued that CCTs erode the “moral Opportunity NYC-Family Rewards, an antipoverty obligations” that come with good parenting.4 Meanwhile, Opportunity NYC-Family Rewards, an antipoverty obligations” that come with good parenting.4 Meanwhile, initiative spearheaded by New York City Mayor critics on the left argue that CCTs miss the mark since initiative spearheaded by New York City Mayor critics on the left argue that CCTs miss the mark since Michael Bloomberg and designed and adminis- the causes of poverty, including a lack of high-paying jobs Michael Bloomberg and designed and adminis- the causes of poverty, including a lack of high-paying jobs tered by MDRC and Seedco, a workforce devel- and weak educational systems, are more structural than tered by MDRC and Seedco, a workforce devel- and weak educational systems, are more structural than opment organization. Although MDRC found behavioral in nature. The left also tends to see an over- opment organization. Although MDRC found behavioral in nature. The left also tends to see an over- that participation in Family Rewards successfully bearing paternalism inherent in CCTs. that participation in Family Rewards successfully bearing paternalism inherent in CCTs. reduced current levels of poverty among treatment reduced current levels of poverty among treatment families, the results of other program goals, such Beginning in the summer of 2007, Seedco and its partners families, the results of other program goals, such Beginning in the summer of 2007, Seedco and its partners as improved academic performance among chil- selected six community districts with high and persistent as improved academic performance among chil- selected six community districts with high and persistent dren and improved workforce participation among concentrations of poverty in the boroughs of Manhattan, dren and improved workforce participation among concentrations of poverty in the boroughs of Manhattan, adults, were mixed or insignificant.2 The Bloomberg Brooklyn, and the Bronx as pilot locations for Family adults, were mixed or insignificant.2 The Bloomberg Brooklyn, and the Bronx as pilot locations for Family administration announced that the program would Rewards. Seedco and various existing community-based administration announced that the program would Rewards. Seedco and various existing community-based end in August 2010, after a three-year run; however, organizations with which it partnered consulted admin- end in August 2010, after a three-year run; however, organizations with which it partnered consulted admin- MDRC will continue to collect data from families istrative lists of public-school children who participate in MDRC will continue to collect data from families istrative lists of public-school children who participate in through 2013, during which time additional evalu- the federal free and reduced-price school-lunch program through 2013, during which time additional evalu- the federal free and reduced-price school-lunch program ations and reports will be released. to recruit families with incomes of no more than 130 ations and reports will be released. to recruit families with incomes of no more than 130 percent of the federal poverty level. They also performed percent of the federal poverty level. They also performed This paper assesses the effectiveness of Family Rewards outreach in the community districts in order to reach as This paper assesses the effectiveness of Family Rewards outreach in the community districts in order to reach as within the broader context of CCT programs across many eligible families as possible. within the broader context of CCT programs across many eligible families as possible. the globe and takes a closer look at why the educa- the globe and takes a closer look at why the education-focused conditions failed to produce any signifi- Despite some initial challenges in recruiting families (some tion-focused conditions failed to produce any signifi- Despite some initial challenges in recruiting families (some cant improvements among children from treatment of whom suspected the program was a scam), Seedco cant improvements among children from treatment of whom suspected the program was a scam), Seedco families. Given the evidence that interventions during and its partners enrolled approximately 4,800 families families. Given the evidence that interventions during and its partners enrolled approximately 4,800 families early childhood tend to produce greater returns than and 11,000 children into the experiment. Roughly half early childhood tend to produce greater returns than and 11,000 children into the experiment. Roughly half those staged later in adolescence, this paper recom- would earn rewards conditioned on their behavior (treat- those staged later in adolescence, this paper recom- would earn rewards conditioned on their behavior (treat- mends that future CCT pilot programs in the U.S. ment group) and the other half would receive no rewards mends that future CCT pilot programs in the U.S. ment group) and the other half would receive no rewards experiment with conditioning parent behaviors that (control group).5 A randomized, controlled design was experiment with conditioning parent behaviors that (control group).5 A randomized, controlled design was influence early childhood development. Such invest- necessary to more accurately estimate the effects of the influence early childhood development. Such invest- necessary to more accurately estimate the effects of the ments may improve the cognitive and noncognitive intervention and to reduce the potential for bias. ments may improve the cognitive and noncognitive intervention and to reduce the potential for bias. abilities of children prior to their entrance into for- abilities of children prior to their entrance into formal education, thereby strengthening their human- CCT programs are predicated on the theory that poor mal education, thereby strengthening their human- CCT programs are predicated on the theory that poor capital development. parents are likely to underinvest in their own and their capital development. parents are likely to underinvest in their own and their

2 Vol. XVIII, 2010–2011 The Wagner Review 2 Vol. XVIII, 2010–2011 The Wagner Review children’s human capital. Economists theorize that poor small but significant effects on participants’ use of health children’s human capital. Economists theorize that poor small but significant effects on participants’ use of health parents, especially those with limited educational attain- services, and had small but significant effects on the aca- parents, especially those with limited educational attain- services, and had small but significant effects on the aca- ment, may not calculate the returns to education as fully demic outcomes of “better prepared” ninth graders.9 ment, may not calculate the returns to education as fully demic outcomes of “better prepared” ninth graders.9 as a middle-class parent would. Furthermore, the state as a middle-class parent would. Furthermore, the state may have an interest in stimulating parental investment The most statistically robust set of short-term outcomes may have an interest in stimulating parental investment The most statistically robust set of short-term outcomes in a child’s human capital if the family’s private level of that resulted from Family Rewards pertained to reduc- in a child’s human capital if the family’s private level of that resulted from Family Rewards pertained to reduc- investment is below the socially optimal level.6 This is tions in poverty and material hardship in the current investment is below the socially optimal level.6 This is tions in poverty and material hardship in the current particularly true if there are positive externalities (for period. The findings suggest that, among the treatment particularly true if there are positive externalities (for period. The findings suggest that, among the treatment instance, a reduction in the crime rate and improved group, the percentage of families below the federal pov- instance, a reduction in the crime rate and improved group, the percentage of families below the federal pov- worker productivity) that result from a more educated erty level declined by approximately 11 percent. Likewise, worker productivity) that result from a more educated erty level declined by approximately 11 percent. Likewise, populace. Additionally, poor families may face credit the percentage of families in “severe” poverty (defined by populace. Additionally, poor families may face credit the percentage of families in “severe” poverty (defined by constraints that prevent them from investing in their chil- MDRC as those below 50 percent of the federal level) constraints that prevent them from investing in their chil- MDRC as those below 50 percent of the federal level) dren’s human capital. CCT programs function to remedy declined by 13 percent.10 Across various measures of dren’s human capital. CCT programs function to remedy declined by 13 percent.10 Across various measures of these and other market failures. material hardship, such as measures of food and housing these and other market failures. material hardship, such as measures of food and housing insecurity, the percentage of treatment families experienc- insecurity, the percentage of treatment families experienc- The rewards schedule created by Seedco and its partners ing hardship declined by approximately 7 to 8 percent.11 The rewards schedule created by Seedco and its partners ing hardship declined by approximately 7 to 8 percent.11 consisted of three broad categories: education, health, While these results are encouraging, they are not surpris- consisted of three broad categories: education, health, While these results are encouraging, they are not surpris- and workforce. Treatment families were eligible to receive ing, since MDRC reports that 98 percent of families who and workforce. Treatment families were eligible to receive ing, since MDRC reports that 98 percent of families who rewards as low as $50 (for obtaining a library card for their enrolled in the treatment group earned some rewards in rewards as low as $50 (for obtaining a library card for their enrolled in the treatment group earned some rewards in children) and as high as $600 (for each child who passed the first two program years and that 65 percent earned children) and as high as $600 (for each child who passed the first two program years and that 65 percent earned a high school Regents exam).7 In general, rewards were some cash rewards in every period. The average family a high school Regents exam).7 In general, rewards were some cash rewards in every period. The average family paid directly to parents upon demonstrating that a task received a total of $6,000 over the first two years of the paid directly to parents upon demonstrating that a task received a total of $6,000 over the first two years of the had been completed successfully. The program designers program.12 At the very least, these findings demonstrate had been completed successfully. The program designers program.12 At the very least, these findings demonstrate worked with local financial institutions, such as credit the viability of implementing a CCT program within worked with local financial institutions, such as credit the viability of implementing a CCT program within unions, to offer participants free checking accounts into the context of a low-income urban neighborhood in the unions, to offer participants free checking accounts into the context of a low-income urban neighborhood in the which cash rewards were automatically deposited. This U.S. in order to provide families with short-term income which cash rewards were automatically deposited. This U.S. in order to provide families with short-term income allowed treatment families to avoid relying on expensive support. The results of Family Rewards’ effectiveness on allowed treatment families to avoid relying on expensive support. The results of Family Rewards’ effectiveness on check-cashing businesses and increased the proportion of improving human-capital accumulation, however, were check-cashing businesses and increased the proportion of improving human-capital accumulation, however, were families who became “banked” by 20 percent, a statisti- not as robust. families who became “banked” by 20 percent, a statisti- not as robust. cally significant amount.8 Finally, Family Rewards offered cally significant amount.8 Finally, Family Rewards offered no other social services for families, since the designers The effect of Family Rewards on participants’ access to no other social services for families, since the designers The effect of Family Rewards on participants’ access to wanted to test the efficacy of the cash incentives alone. health care was relatively small. For instance, the impact wanted to test the efficacy of the cash incentives alone. health care was relatively small. For instance, the impact Non-profit organizations that helped administer the proof the CCT on health insurance coverage reduced the Non-profit organizations that helped administer the proof the CCT on health insurance coverage reduced the gram referred families to other social-service agencies and proportion of treatment families who lacked health insur- gram referred families to other social-service agencies and proportion of treatment families who lacked health insur- answered technical questions about the program but did ance by three percent. The investigators attributed this answered technical questions about the program but did ance by three percent. The investigators attributed this not provide substantive resources to treatment families. marginal impact to the fact that New York City and State not provide substantive resources to treatment families. marginal impact to the fact that New York City and State offer relatively strong programs for low-income families offer relatively strong programs for low-income families Family Rewards: with children to access health care. Ninety-four percent Family Rewards: with children to access health care. Ninety-four percent Early Results of families indicated that they had some form of health Early Results of families indicated that they had some form of health coverage prior to randomization.13 The effects of the CCT coverage prior to randomization.13 The effects of the CCT As an antipoverty program designed to mitigate the on education outcomes were likewise marginal, with As an antipoverty program designed to mitigate the on education outcomes were likewise marginal, with intergenerational transmission of poverty by focusing on few measures reaching statistical significance. Among intergenerational transmission of poverty by focusing on few measures reaching statistical significance. Among human-capital investments, Family Rewards may have the fourth-, seventh-, and ninth-grade cohorts, no dif- human-capital investments, Family Rewards may have the fourth-, seventh-, and ninth-grade cohorts, no dif- effects that reach beyond the current period. The initial ference was detected in students’ proficiency on English effects that reach beyond the current period. The initial ference was detected in students’ proficiency on English results, however, released by MDRC in March 2010, language arts and math standardized tests in the program’s results, however, released by MDRC in March 2010, language arts and math standardized tests in the program’s present a window into the program’s effectiveness after second year. The program had no effect on elementary- present a window into the program’s effectiveness after second year. The program had no effect on elementary- 18 months and cover the 2007-08 and 2008-09 school and middle-school attendance, although it did appear to 18 months and cover the 2007-08 and 2008-09 school and middle-school attendance, although it did appear to years. The early results suggest that Family Rewards had slightly improve attendance among ninth-graders (the years. The early results suggest that Family Rewards had slightly improve attendance among ninth-graders (the a significant impact on reducing current levels of poverty researchers point out that attendance in elementary and a significant impact on reducing current levels of poverty researchers point out that attendance in elementary and and material hardship among treatment families, had middle school is generally quite high, averaging 90 per- and material hardship among treatment families, had middle school is generally quite high, averaging 90 per-

An Assessment of Opportunity NYC-Family Rewards Farrell 3 An Assessment of Opportunity NYC-Family Rewards Farrell 3 cent, suggesting that there was little room for even mar- cent, suggesting that there was little room for even marginal improvements).14 Policymakers should bear in mind ginal improvements).14 Policymakers should bear in mind that these results, while not especially encouraging, do not CCT programs are that these results, while not especially encouraging, do not CCT programs are tell the full story of Family Rewards. It may simply be too predicated on the tell the full story of Family Rewards. It may simply be too predicated on the soon to accurately estimate the cumulative effects of the theory that poor soon to accurately estimate the cumulative effects of the theory that poor program. To what extent, then, do the preliminary find- parents are likely to program. To what extent, then, do the preliminary find- parents are likely to ings of Family Rewards match findings from evaluations under-invest in their ings of Family Rewards match findings from evaluations under-invest in their of CCT programs in other countries? What lessons might “ own and their of CCT programs in other countries? What lessons might “ own and their U.S. policymakers who are interested in piloting addi- children’s human U.S. policymakers who are interested in piloting addi- children’s human tional CCT trials learn from their international peers? capital. tional CCT trials learn from their international peers? capital.

Results of CCT Programs Results of CCT Programs Across the Globe Across the Globe reducing adult labor.17 For instance, Mexico’s CCT reducing adult labor.17 For instance, Mexico’s CCT program, Oportunidades, had an 8.3 percent increase program, Oportunidades, had an 8.3 percent increase Much of the growth in the number of CCT programs in per capita consumption for the median household Much of the growth in the number of CCT programs in per capita consumption for the median household worldwide has occurred since 1997, when only two in the study.18 The authors note that CCT programs worldwide has occurred since 1997, when only two in the study.18 The authors note that CCT programs countries, Mexico and Brazil, were experimenting with demonstrate positive impacts along other measures, countries, Mexico and Brazil, were experimenting with demonstrate positive impacts along other measures, the policy. Since then, many Latin American and Carib- such as the “headcount” index, which measures the the policy. Since then, many Latin American and Carib- such as the “headcount” index, which measures the bean countries have launched CCT programs of varying number of poor individuals, and the poverty gap, bean countries have launched CCT programs of varying number of poor individuals, and the poverty gap, scope. CCTs have also appeared in Africa and South Asia, which measures how far poor families fall below the scope. CCTs have also appeared in Africa and South Asia, which measures how far poor families fall below the where Bangladesh has instituted a CCT program as a official poverty line. In addition, the literature indi- where Bangladesh has instituted a CCT program as a official poverty line. In addition, the literature indi- means of conditioning poor parents to send their girls to cates that CCTs have positive behavioral effects on means of conditioning poor parents to send their girls to cates that CCTs have positive behavioral effects on school to reduce the extreme gender gap in education.15 families, such as reducing the amount of child labor school to reduce the extreme gender gap in education.15 families, such as reducing the amount of child labor (since families are given incentive to send children (since families are given incentive to send children Although a recent innovation, CCT programs have pro- to school rather than to work). Also, CCTs do not Although a recent innovation, CCT programs have pro- to school rather than to work). Also, CCTs do not duced a wide literature on their effectiveness. World Bank appear to function as disincentives for adults to enter duced a wide literature on their effectiveness. World Bank appear to function as disincentives for adults to enter economists Ariel Fiszbein and Norbert Schady attribute the labor market, a behavioral response that critics of economists Ariel Fiszbein and Norbert Schady attribute the labor market, a behavioral response that critics of the strong “evaluation culture” surrounding CCTs, in CCTs often fear. The evidence does not seem to sup- the strong “evaluation culture” surrounding CCTs, in CCTs often fear. The evidence does not seem to sup- part, to the fact that CCT systems require an inordi- port this idea, perhaps because among the very poor part, to the fact that CCT systems require an inordi- port this idea, perhaps because among the very poor nate amount of data in order to function effectively.16 marginal increases in income do not offset an adult’s nate amount of data in order to function effectively.16 marginal increases in income do not offset an adult’s For instance, CCTs must develop sophisticated systems need to enter the labor market.19 For instance, CCTs must develop sophisticated systems need to enter the labor market.19 for verifying client compliance with program rules and for verifying client compliance with program rules and for disbursing payments. Such data-collection systems Increasing a poor family’s ability to consume is only one of for disbursing payments. Such data-collection systems Increasing a poor family’s ability to consume is only one of facilitate the evaluation process. Furthermore, practitio- the goals of the CCT; equally important is conditioning facilitate the evaluation process. Furthermore, practitio- the goals of the CCT; equally important is conditioning ners and researchers in developing countries that have the family to invest in the human capital of its children ners and researchers in developing countries that have the family to invest in the human capital of its children instituted CCTs have a common interest in collaborating as a means of improving the odds that poor children will instituted CCTs have a common interest in collaborating as a means of improving the odds that poor children will and sharing news of what works. Although the economic not grow up to be poor adults. To improve human-capital and sharing news of what works. Although the economic not grow up to be poor adults. To improve human-capital and political contexts of each country that implements accumulation, most CCT programs address the disparity and political contexts of each country that implements accumulation, most CCT programs address the disparity a CCT program are unique, the findings from various that exists between poor and nonpoor families’ access to a CCT program are unique, the findings from various that exists between poor and nonpoor families’ access to studies suggest that CCTs are effective at reducing current critical services such as schools and health clinics. CCT studies suggest that CCTs are effective at reducing current critical services such as schools and health clinics. CCT poverty but vary in their effectiveness at building human programs condition parents to send their children to poverty but vary in their effectiveness at building human programs condition parents to send their children to capital. Given these similarities to Family Rewards, some school in order to meet attendance requirements as well as capital. Given these similarities to Family Rewards, some school in order to meet attendance requirements as well as of the findings from particular CCT projects may be of to make use of preventive health services (such as doctor’s of the findings from particular CCT projects may be of to make use of preventive health services (such as doctor’s particular interest to U.S. policymakers. checkups and immunizations). The evidence suggests that particular interest to U.S. policymakers. checkups and immunizations). The evidence suggests that the effects of CCTs on school attendance are most pro- the effects of CCTs on school attendance are most pro- Aggregating results from a number of studies, Fiszbein and found among the most marginalized families, those who Aggregating results from a number of studies, Fiszbein and found among the most marginalized families, those who Schady demonstrate the effectiveness of CCT programs would not send their children to school otherwise.20 The Schady demonstrate the effectiveness of CCT programs would not send their children to school otherwise.20 The at improving consumption among the poorest house- evidence on whether CCTs actually improve final educa- at improving consumption among the poorest house- evidence on whether CCTs actually improve final educa- holds while minimizing any perverse incentives such as tional outcomes, however, is more mixed. holds while minimizing any perverse incentives such as tional outcomes, however, is more mixed.

4 Vol. XVIII, 2010–2011 The Wagner Review 4 Vol. XVIII, 2010–2011 The Wagner Review Fiszbein and Schady cite studies that suggest that even to more targeted interventions that also include par- Fiszbein and Schady cite studies that suggest that even to more targeted interventions that also include par- though CCTs are successful at improving attendance, ents in activities such as parenting classes. Heckman though CCTs are successful at improving attendance, ents in activities such as parenting classes. Heckman there is little empirical evidence to suggest that learn- and Carneiro note that early interventions are effec- there is little empirical evidence to suggest that learn- and Carneiro note that early interventions are effec- ing outcomes improve for children in CCT treatment tive at improving non-cognitive development such as ing outcomes improve for children in CCT treatment tive at improving non-cognitive development such as families. According to the authors, among the possible social and emotional skills.24 The authors argue that families. According to the authors, among the possible social and emotional skills.24 The authors argue that reasons for the lack of positive educational outcomes are it does not make sense to evaluate such interventions reasons for the lack of positive educational outcomes are it does not make sense to evaluate such interventions constraints at the household level, such as poor parenting, along cognitive-skill-based lines, such as measured test constraints at the household level, such as poor parenting, along cognitive-skill-based lines, such as measured test which negatively influence a child’s development, and a scores. This may explain why studies of Head Start, which negatively influence a child’s development, and a scores. This may explain why studies of Head Start, poor level of educational instruction in school.21 The abil- the federally funded school-readiness program, find a poor level of educational instruction in school.21 The abil- the federally funded school-readiness program, find a ity of the CCT to affect human-capital development, significant “fade out” of the cognitive effects ofthe ity of the CCT to affect human-capital development, significant “fade out” of the cognitive effects ofthe then, is hampered by such constraints. There is, however, program once children hit school age.25 Research has then, is hampered by such constraints. There is, however, program once children hit school age.25 Research has a wide and growing body of literature that suggests that a wide and growing body of literature that suggests that investments made in early childhood may have a bigger investments made in early childhood may have a bigger payoff than those made later in the life cycle. payoff than those made later in the life cycle. What lessons might What lessons might Early Childhood Investments U.S. policymakers Early Childhood Investments U.S. policymakers who are interested in who are interested in Economists who examine human-capital develop- piloting additional CCT Economists who examine human-capital develop- piloting additional CCT ment understand it as a dynamic process that occurs trials learn from their ment understand it as a dynamic process that occurs trials learn from their throughout the lifetime. Economists James Heckman “ international peers? throughout the lifetime. Economists James Heckman “ international peers? and Pedro Carneiro propose a model of human capi- and Pedro Carneiro propose a model of human capital that builds from the pioneering work of econo- tal that builds from the pioneering work of econo- mist Gary Becker, whose early work on the subject mist Gary Becker, whose early work on the subject was influential in the 1960s.22 In Heckman and Car- was influential in the 1960s.22 In Heckman and Car- neiro’s model, early investments in cognitive and found, however, that African-American children who neiro’s model, early investments in cognitive and found, however, that African-American children who noncognitive development facilitate later invest- participated in Head Start were less likely to interact noncognitive development facilitate later invest- participated in Head Start were less likely to interact ments. These investments, they argue, are “synergis- with the criminal justice system than their non‑Head ments. These investments, they argue, are “synergis- with the criminal justice system than their non‑Head tic” and “complementary” in nature. In their view, Start siblings.26 The evidence suggests that a specific tic” and “complementary” in nature. In their view, Start siblings.26 The evidence suggests that a specific deficits in cognitive ability begin early and have pro- payoff of an early childhood investment such as Head deficits in cognitive ability begin early and have pro- payoff of an early childhood investment such as Head found consequences; instead of equalizing the abili- Start is reduced incarceration rates. Such a beneficial found consequences; instead of equalizing the abili- Start is reduced incarceration rates. Such a beneficial ties of individuals, schools function to exacerbate skill outcome, which avoids the economic and social costs ties of individuals, schools function to exacerbate skill outcome, which avoids the economic and social costs gaps that are present in children from impoverished of imprisonment, may very well outweigh the costs of gaps that are present in children from impoverished of imprisonment, may very well outweigh the costs of backgrounds from an early age.23 In other words, very the intervention. backgrounds from an early age.23 In other words, very the intervention. young children who start off cognitively behind their young children who start off cognitively behind their peers find it increasingly difficult to catch up as their Early Childhood peers find it increasingly difficult to catch up as their Early Childhood skills gap widens once they begin schooling. Investments and CCTs skills gap widens once they begin schooling. Investments and CCTs

According to this model, investments made in early Heckman and Carneiro argue that while schools mat- According to this model, investments made in early Heckman and Carneiro argue that while schools mat- childhood reap large returns later, since the skills young ter, families may matter more in influencing human- childhood reap large returns later, since the skills young ter, families may matter more in influencing human- children develop in early childhood form the building capital accumulation.27 If such an argument is true, children develop in early childhood form the building capital accumulation.27 If such an argument is true, blocks on which later investments are made. Without might a CCT that conditions parents to stimulate blocks on which later investments are made. Without might a CCT that conditions parents to stimulate those initial investments, the child risks growing up with children’s cognitive and noncognitive development those initial investments, the child risks growing up with children’s cognitive and noncognitive development an ever widening deficit that is resistant to interventions be more effective than one that merely conditions an ever widening deficit that is resistant to interventions be more effective than one that merely conditions staged later in the life cycle. School interventions in mid- parents to send their children to school? Is there evi- staged later in the life cycle. School interventions in mid- parents to send their children to school? Is there evi- dle or high school, or job-training interventions staged in dence to suggest that such a strategy might work? dle or high school, or job-training interventions staged in dence to suggest that such a strategy might work? adulthood, may not be enough to offset the early deficits adulthood, may not be enough to offset the early deficits that result from growing up in a poor household. A promising study by Macours, Schady, and Vakis that result from growing up in a poor household. A promising study by Macours, Schady, and Vakis offers insight into the extent to which CCT pro- offers insight into the extent to which CCT pro- Early childhood interventions may take a variety of grams affect the cognitive skills of children in treat- Early childhood interventions may take a variety of grams affect the cognitive skills of children in treat- forms, from enriched day care and preschool programs ment families.28 The authors studied a randomized forms, from enriched day care and preschool programs ment families.28 The authors studied a randomized

An Assessment of Opportunity NYC-Family Rewards Farrell 5 An Assessment of Opportunity NYC-Family Rewards Farrell 5 trial CCT program in Nicaragua, Atención a Crisis, age points higher than for the control group.29 The results trial CCT program in Nicaragua, Atención a Crisis, age points higher than for the control group.29 The results and evaluated a control group against three distinct suggest that an educational intervention staged in adoles- and evaluated a control group against three distinct suggest that an educational intervention staged in adoles- treatment groups. The authors collected data on the cence will have only marginal impact and will most likely treatment groups. The authors collected data on the cence will have only marginal impact and will most likely cognitive abilities of children as young as one month have the most profound effect on those students near the cognitive abilities of children as young as one month have the most profound effect on those students near the old using a number of well-validated cognitive mea- top of the ability distribution. Additional CCT demon- old using a number of well-validated cognitive mea- top of the ability distribution. Additional CCT demon- sures. Finally, they drew detailed data on how treat- strations that offer behavioral rewards for investments sures. Finally, they drew detailed data on how treat- strations that offer behavioral rewards for investments ment families spent their cash transfers (for example, made to adolescent development are likely to result only ment families spent their cash transfers (for example, made to adolescent development are likely to result only whether treatment families purchased more nutrient- in similarly limited progress, since the conditions do not whether treatment families purchased more nutrient- in similarly limited progress, since the conditions do not rich foods and stimulating toys and books for their attack the problem of cognitive and noncognitive deficits rich foods and stimulating toys and books for their attack the problem of cognitive and noncognitive deficits children). The results demonstrate that, at baseline, that form earlier in childhood. children). The results demonstrate that, at baseline, that form earlier in childhood. the low-income children in the study displayed cogni- the low-income children in the study displayed cognitive delays that would likely impair their development. tive delays that would likely impair their development. Following only nine months of treatment, children Following only nine months of treatment, children in program families demonstrated improvements in program families demonstrated improvements in social and language development and were more As the first CCT in social and language development and were more As the first CCT likely to have a cognitively rich home environment. program ever designed likely to have a cognitively rich home environment. program ever designed Treatment children were more likely to have books and piloted in the Treatment children were more likely to have books and piloted in the at home, to have been read to by a family member, developed world, at home, to have been read to by a family member, developed world, and to have been enrolled in preschool. Researchers Family Rewards and to have been enrolled in preschool. Researchers Family Rewards found statistically significant results within a year of “ demonstrated that a found statistically significant results within a year of “ demonstrated that a the program’s start, suggesting that early intervention CCT can be implement- the program’s start, suggesting that early intervention CCT can be implement- may yield significant results in a short period of time. ed successfully in the may yield significant results in a short period of time. ed successfully in the U.S. and can U.S. and can Such findings offer promise to policymakers who are complement existing Such findings offer promise to policymakers who are complement existing considering future CCT trials in the U.S. Despite the policies to reduce considering future CCT trials in the U.S. Despite the policies to reduce differences in social and economic contexts between current poverty. differences in social and economic contexts between current poverty. the U.S. and the developing world, the early findings the U.S. and the developing world, the early findings from Family Rewards tend to match those from other from Family Rewards tend to match those from other countries, suggesting that, at the very least, CCTs are countries, suggesting that, at the very least, CCTs are effective at reducing current poverty. The question, effective at reducing current poverty. The question, then, is whether a CCT program can provide addi- What might a CCT demonstration look like that then, is whether a CCT program can provide addi- What might a CCT demonstration look like that tional value in terms of human-capital accumulation, conditions parents to make investments in early tional value in terms of human-capital accumulation, conditions parents to make investments in early since the U.S. already has a firmly established social childhood? Conditioned participation in early child- since the U.S. already has a firmly established social childhood? Conditioned participation in early child- safety net. A CCT program in the U.S. is valuable hood programs such as Head Start and Early Head safety net. A CCT program in the U.S. is valuable hood programs such as Head Start and Early Head only to the extent that it can help break the inter- Start would offer the opportunity to work with exist- only to the extent that it can help break the inter- Start would offer the opportunity to work with exist- generational transmission of poverty, a prospect that ing programs. Designers of CCT pilots might also generational transmission of poverty, a prospect that ing programs. Designers of CCT pilots might also relies on human-capital investments. explore conditions that require participation in devel- relies on human-capital investments. explore conditions that require participation in devel- opmentally appropriate activities such as group music opmentally appropriate activities such as group music Although the effect of Family Rewards on children’s edu- classes and story hours at local libraries. More intense Although the effect of Family Rewards on children’s edu- classes and story hours at local libraries. More intense cational outcomes such as test scores was insignificant, it interventions that involve teaching parents to engage cational outcomes such as test scores was insignificant, it interventions that involve teaching parents to engage is worth considering whether a CCT that bases its con- in stimulating play with their children will increase is worth considering whether a CCT that bases its con- in stimulating play with their children will increase ditions on early childhood development might demon- the cost of the intervention and will depend on the ditions on early childhood development might demon- the cost of the intervention and will depend on the strate stronger results. Some of the findings from Family ability of the CCT program to collaborate with strate stronger results. Some of the findings from Family ability of the CCT program to collaborate with Rewards reinforce Heckman and Carneiro’s position that social-service agencies. Such interventions may also Rewards reinforce Heckman and Carneiro’s position that social-service agencies. Such interventions may also skill gaps develop early and are not easily overcome. For prove to be more controversial than Family Rewards, skill gaps develop early and are not easily overcome. For prove to be more controversial than Family Rewards, instance, the only group of students for whom Family which respected each family’s parenting practices. A instance, the only group of students for whom Family which respected each family’s parenting practices. A Rewards had a significant impact were those ninth-grade CCT demonstration that requires home visits from Rewards had a significant impact were those ninth-grade CCT demonstration that requires home visits from students who were already “more proficient” in math social-service workers or counselors, for instance, may students who were already “more proficient” in math social-service workers or counselors, for instance, may prior to randomization. The rate of progression from be seen as encroaching on parents’ rights to decide prior to randomization. The rate of progression from be seen as encroaching on parents’ rights to decide ninth to tenth grade for this subgroup was five percent- what is best for their child. ninth to tenth grade for this subgroup was five percent- what is best for their child.

6 Vol. XVIII, 2010–2011 The Wagner Review 6 Vol. XVIII, 2010–2011 The Wagner Review Conclusion and researchers further refine their ideas regarding Conclusion and researchers further refine their ideas regarding CCTs in the U.S., they should consider experi- CCTs in the U.S., they should consider experi- Although Family Rewards did not yield signifi- menting with a range of CCT targets, such as early Although Family Rewards did not yield signifi- menting with a range of CCT targets, such as early cant improvements in human capital accumulation childhood, as this paper has suggested. Given the cant improvements in human capital accumulation childhood, as this paper has suggested. Given the among participants and their children, policymak- empirical evidence that investments in early child- among participants and their children, policymak- empirical evidence that investments in early child- ers should heed the promise of CCT programs hood offer bigger returns than interventions staged ers should heed the promise of CCT programs hood offer bigger returns than interventions staged reflected in the successes of this trial demonstra- later, policymakers should incentivize poor par- reflected in the successes of this trial demonstra- later, policymakers should incentivize poor par- tion. As the first CCT program ever designed and ents to make human-capital investments in their tion. As the first CCT program ever designed and ents to make human-capital investments in their piloted in the developed world, Family Rewards young children’s development. Such investments piloted in the developed world, Family Rewards young children’s development. Such investments demonstrated that a CCT can be implemented suc- are likely to be cost-effective in the long term and demonstrated that a CCT can be implemented suc- are likely to be cost-effective in the long term and cessfully in the U.S. and can complement existing offer persistent returns as the child develops into cessfully in the U.S. and can complement existing offer persistent returns as the child develops into policies to reduce current poverty. As policymakers adulthood. policies to reduce current poverty. As policymakers adulthood.

Notes Notes

1 Ariel Fiszbein and Norbert Schady, Conditional Cash Transfers: Various Years” in Fiszbein and Schady, 105. 1 Ariel Fiszbein and Norbert Schady, Conditional Cash Transfers: Various Years” in Fiszbein and Schady, 105. Reducing Present and Future Poverty. (Washington, DC: World 18 In this study, from October 1999, the median daily per capita Reducing Present and Future Poverty. (Washington, DC: World 18 In this study, from October 1999, the median daily per capita Bank, 2009), 1-3. consumption of the control household was only $0.58 (in 2009 Bank, 2009), 1-3. consumption of the control household was only $0.58 (in 2009 2 James Riccio et al., Toward Reduced Poverty Across Generations: U.S. dollars). In Fiszbein and Schady, 105. 2 James Riccio et al., Toward Reduced Poverty Across Generations: U.S. dollars). In Fiszbein and Schady, 105. Early Findings from New York City’s Conditional Cash Transfer 19 In addition to theorizing that, among the very poor, the Early Findings from New York City’s Conditional Cash Transfer 19 In addition to theorizing that, among the very poor, the Program,” (New York, NY: MDRC, 2010), ES 9-17. “income elasticity of leisure may be quite low,” Fiszbein and Program,” (New York, NY: MDRC, 2010), ES 9-17. “income elasticity of leisure may be quite low,” Fiszbein and 3 Riccio et al., ES-1 Schady offer several other reasons studies fail to show that 3 Riccio et al., ES-1 Schady offer several other reasons studies fail to show that 4 The authors of the MDRC report quote Heather MacDonald of CCTs cause poor adults to work less. The possible reasons 4 The authors of the MDRC report quote Heather MacDonald of CCTs cause poor adults to work less. The possible reasons the Manhattan Institute, who told Tina Rosenberg of the New include a need for adults to work more to offset any losses from the Manhattan Institute, who told Tina Rosenberg of the New include a need for adults to work more to offset any losses from York Times Magazine: “If Opportunity NYC goes large scale, it reductions in child labor that the CCTs cause and a perception York Times Magazine: “If Opportunity NYC goes large scale, it reductions in child labor that the CCTs cause and a perception will further break down the moral obligation to care for one’s that the CCTs may only be a temporary windfall rather than a will further break down the moral obligation to care for one’s that the CCTs may only be a temporary windfall rather than a child and adopt the repertoire of parenting behaviors the middle permanent entitlement. In Fiszbein and Schady, 117-119. child and adopt the repertoire of parenting behaviors the middle permanent entitlement. In Fiszbein and Schady, 117-119. class takes for granted. It will replace that with the expectation 20 Fiszbein and Schady, 164. class takes for granted. It will replace that with the expectation 20 Fiszbein and Schady, 164. that I’m only going to do it if you pay me.” See Tina Rosen- 21 Fiszbein and Schady, 163-164. that I’m only going to do it if you pay me.” See Tina Rosen- 21 Fiszbein and Schady, 163-164. berg. “A Payoff Out of Poverty?” New York Times Magazine, 22 Gary Becker, “Investment in Human Capital: A Theoretical berg. “A Payoff Out of Poverty?” New York Times Magazine, 22 Gary Becker, “Investment in Human Capital: A Theoretical 21 December 2008, http://www.nytimes.com/2008/12/21/ Analysis,” Journal of Political Economy 70 (1962): 9-49. 21 December 2008, http://www.nytimes.com/2008/12/21/ Analysis,” Journal of Political Economy 70 (1962): 9-49. magazine/21cash-t.html?scp=2&sq=rosenberg%20poverty&st=cse 23 James Heckman and Pedro Carneiro, “Human Capital Policy,” magazine/21cash-t.html?scp=2&sq=rosenberg%20poverty&st=cse 23 James Heckman and Pedro Carneiro, “Human Capital Policy,” (15 February 2011). NBER Working Paper 9495, (Cambridge, MA: National (15 February 2011). NBER Working Paper 9495, (Cambridge, MA: National 5 Riccio et al., ES-6 Bureau of Economic Research, 2003), 2-10. 5 Riccio et al., ES-6 Bureau of Economic Research, 2003), 2-10. 6 Fiszbein and Schady, 8-9. 24 Heckman and Carneiro, 8. 6 Fiszbein and Schady, 8-9. 24 Heckman and Carneiro, 8. 7 For a full schedule of awards, see Riccio et al., ES-4. 25 Eliana Garces, Duncan Thomas, and Janet Currie. “Longer 7 For a full schedule of awards, see Riccio et al., ES-4. 25 Eliana Garces, Duncan Thomas, and Janet Currie. “Longer 8 Riccio et al., ES-13. Term Effects of Head Start.” NBER Working Paper 8054. 8 Riccio et al., ES-13. Term Effects of Head Start.” NBER Working Paper 8054. 9 Riccio et al., ES 9-17. (Cambridge, MA: National Bureau of Economic Research, 9 Riccio et al., ES 9-17. (Cambridge, MA: National Bureau of Economic Research, 10 Riccio et al., 126 2000). 10 Riccio et al., 126 2000). 11 Table ES.2, “Impacts on Selected Outcomes Measuring Pov- 26 Garces et al., 17. 11 Table ES.2, “Impacts on Selected Outcomes Measuring Pov- 26 Garces et al., 17. erty, Hardship, Health, and Work” summarizes these findings, 27 Heckman and Carneiro, 5-6. erty, Hardship, Health, and Work” summarizes these findings, 27 Heckman and Carneiro, 5-6. in Riccio et al., 137. 28 Karen Macours, Norbert Schady, and Renos Vakis, “Cash in Riccio et al., 137. 28 Karen Macours, Norbert Schady, and Renos Vakis, “Cash 12 Riccio et al., 8. Transfers, Behavioral Changes, and the Cognitive Develop- 12 Riccio et al., 8. Transfers, Behavioral Changes, and the Cognitive Develop- 13 See table 2.3 in Riccio et al., 53. ment of Young Children: Evidence From a Randomized 13 See table 2.3 in Riccio et al., 53. ment of Young Children: Evidence From a Randomized 14 Riccio et al., 166-67. Experiment,” Policy Research Working Paper 4759. (Washing- 14 Riccio et al., 166-67. Experiment,” Policy Research Working Paper 4759. (Washing- 15 Fiszbein and Schady, 7. ton, DC: World Bank, 2008). 15 Fiszbein and Schady, 7. ton, DC: World Bank, 2008). 16 Ibid. 29 See table 6.17 in Riccio et al., 186. 16 Ibid. 29 See table 6.17 in Riccio et al., 186. 17 See table 4.1, “Impact of CCTs on Per Capita Consumption, 17 See table 4.1, “Impact of CCTs on Per Capita Consumption,

An Assessment of Opportunity NYC-Family Rewards Farrell 7 An Assessment of Opportunity NYC-Family Rewards Farrell 7 8 Vol. XVIII, 2010–2011 The Wagner Review 8 Vol. XVIII, 2010–2011 The Wagner Review Increasing Immigrant Increasing Immigrant Student Access to National Student Access to National School Lunch Benefits: School Lunch Benefits: Implications of Federal Implications of Federal Certification Methods Certification Methods

Michelle R. Wong Michelle R. Wong

A core aim of the re- A core aim of the re- ABSTRACT cent Healthy, Hun- ABSTRACT cent Healthy, Hun- ger-Free Kids Act of 2010 was to increase access to ger-Free Kids Act of 2010 was to increase access to the National School Lunch Program (NSLP) by us- the National School Lunch Program (NSLP) by using direct certification with a multiplier to identify ing direct certification with a multiplier to identify and enroll eligible students. However, an alternate and enroll eligible students. However, an alternate strategy—the survey method employed by Phila- strategy—the survey method employed by Phila- delphia’s Universal Feeding Program (UFP)—has delphia’s Universal Feeding Program (UFP)—has proven more effective at expanding access to the proven more effective at expanding access to the NSLP, particularly among immigrants. This paper NSLP, particularly among immigrants. This paper demonstrates the superior effectiveness of the demonstrates the superior effectiveness of the survey method compared with direct certification survey method compared with direct certification and offers a detailed recommendation for why and offers a detailed recommendation for why other communities, particularly those with large other communities, particularly those with large immigrant populations like Philadelphia, should immigrant populations like Philadelphia, should adopt the survey method. adopt the survey method.

Increasing Immigrant Student Access WONG 9 Increasing Immigrant Student Access WONG 9 to National School Lunch Benefits to National School Lunch Benefits Introduction diverse benefits and discussing specific advantages Introduction diverse benefits and discussing specific advantages and challenges immigrant communities face in try- and challenges immigrant communities face in try- In December, Congress passed the Healthy, Hunger- ing to access it. Then, this paper provides a compari- In December, Congress passed the Healthy, Hunger- ing to access it. Then, this paper provides a compari- Free Kids Act of 2010, a landmark piece of legislation son of the ways in which the Healthy, Hunger-Free Free Kids Act of 2010, a landmark piece of legislation son of the ways in which the Healthy, Hunger-Free with two core aims: (1) to increase students’ access to Kids Act and Philadelphia’s UFP seek to overcome with two core aims: (1) to increase students’ access to Kids Act and Philadelphia’s UFP seek to overcome in-kind meal benefits provided by the National School key barriers to NSLP benefits. Finally, a theoreti- in-kind meal benefits provided by the National School key barriers to NSLP benefits. Finally, a theoreti- Lunch Program (NSLP) and (2) to improve the nutri- cal assessment offers a detailed recommendation for Lunch Program (NSLP) and (2) to improve the nutri- cal assessment offers a detailed recommendation for tional quality of food served in public schools. Many why other communities, particularly those like Phil- tional quality of food served in public schools. Many why other communities, particularly those like Phil- antihunger advocates applauded the legislation, not- adelphia with large immigrant populations, should antihunger advocates applauded the legislation, not- adelphia with large immigrant populations, should ing that free and reduced-price lunches can improve adopt the survey method. ing that free and reduced-price lunches can improve adopt the survey method. health and academic outcomes for students in need health and academic outcomes for students in need by helping ensure they receive adequate nutrition and Nonparticipation by helping ensure they receive adequate nutrition and Nonparticipation mitigating other short- and long-term effects of pov- of Immigrants in mitigating other short- and long-term effects of pov- of Immigrants in erty. But for other antihunger advocates, particularly Social Benefit Programs erty. But for other antihunger advocates, particularly Social Benefit Programs in Philadelphia, the bill raised serious concerns. in Philadelphia, the bill raised serious concerns. Numerous studies highlight eligible immigrants’ low Numerous studies highlight eligible immigrants’ low Philadelphia’s Universal Feeding Program (UFP) take-up rates for social benefit programs, includ- Philadelphia’s Universal Feeding Program (UFP) take-up rates for social benefit programs, includ- pilot, initiated by the U.S. Department of Agricul- ing the Supplemental Nutrition Assistance Program pilot, initiated by the U.S. Department of Agricul- ing the Supplemental Nutrition Assistance Program ture’s Food and Nutrition Service in 1991, uses a strat- (SNAP, formerly food stamps), Temporary Assistance ture’s Food and Nutrition Service in 1991, uses a strat- (SNAP, formerly food stamps), Temporary Assistance egy called the survey method to identify and certify for Needy Families (TANF), and the NSLP.4 In fiscal egy called the survey method to identify and certify for Needy Families (TANF), and the NSLP.4 In fiscal students eligible for free or reduced-price lunch.1 To year 2005, the participation rate of eligible nonciti- students eligible for free or reduced-price lunch.1 To year 2005, the participation rate of eligible nonciti- date, Philadelphia is the only city in the country to zens in SNAP was 50.9 percent, compared with the date, Philadelphia is the only city in the country to zens in SNAP was 50.9 percent, compared with the adopt this method. Since its implementation, the 65.1 percent participation rate for the overall eligible adopt this method. Since its implementation, the 65.1 percent participation rate for the overall eligible program has had marked success in increasing partici- population.5 Mazzolari and Gordon found that from program has had marked success in increasing partici- population.5 Mazzolari and Gordon found that from pation among eligible students, particularly among 1993 to 2000, participation in TANF, food stamps, pation among eligible students, particularly among 1993 to 2000, participation in TANF, food stamps, students from immigrant families who often do not and Medicaid among eligible noncitizens dropped at students from immigrant families who often do not and Medicaid among eligible noncitizens dropped at access all social benefit programs for which they are a rate disproportionate to the federal changes in eli- access all social benefit programs for which they are a rate disproportionate to the federal changes in eli- eligible. Philadelphia’s adoption of the survey method gibility for this population.6 These findings indicate eligible. Philadelphia’s adoption of the survey method gibility for this population.6 These findings indicate was not specifically intended to improve immigrants’ that factors other than eligibility restrictions likely was not specifically intended to improve immigrants’ that factors other than eligibility restrictions likely participation, but this unexpected outcome was wel- contribute to nonparticipation among noncitizens participation, but this unexpected outcome was wel- contribute to nonparticipation among noncitizens come in a city that, compared with peer metropolitan and immigrants. come in a city that, compared with peer metropolitan and immigrants. regions, has the largest and fastest growing immigrant regions, has the largest and fastest growing immigrant population—about nine percent of the total popu- Various studies point to misinformation as a common population—about nine percent of the total popu- Various studies point to misinformation as a common lation.2 Though early drafts of the Healthy, Hunger- reason for nonparticipation. The U.S. Department of lation.2 Though early drafts of the Healthy, Hunger- reason for nonparticipation. The U.S. Department of Free Kids Act, which adopts the more common direct Agriculture (USDA) and the Urban Institute found Free Kids Act, which adopts the more common direct Agriculture (USDA) and the Urban Institute found certification method, did not include funding to con- that social benefit offices did not always meet the certification method, did not include funding to con- that social benefit offices did not always meet the tinue the pilot, Philadelphia antihunger advocates language needs of immigrant clients, and antihunger tinue the pilot, Philadelphia antihunger advocates language needs of immigrant clients, and antihunger fought hard to protect the UFP in its current form. outreach is often hindered by cultural and language fought hard to protect the UFP in its current form. outreach is often hindered by cultural and language Not only did they succeed but the final version of the barriers in neighborhoods with high concentrations Not only did they succeed but the final version of the barriers in neighborhoods with high concentrations legislation also leaves the door open for other cities to of immigrants.7 Some immigrants believe participa- legislation also leaves the door open for other cities to of immigrants.7 Some immigrants believe participa- adopt the survey method.3 tion in SNAP or TANF could affect another family adopt the survey method.3 tion in SNAP or TANF could affect another family member’s naturalization efforts.8 Additionally, distrust member’s naturalization efforts.8 Additionally, distrust With this opportunity to expand the survey method in the application process contributes to nonpartici- With this opportunity to expand the survey method in the application process contributes to nonpartici- as a backdrop, this paper demonstrates that the pation of immigrant families in SNAP benefits.9 For as a backdrop, this paper demonstrates that the pation of immigrant families in SNAP benefits.9 For survey method is more effective than direct certi- example, although an immigrant may be eligible for survey method is more effective than direct certi- example, although an immigrant may be eligible for fication at increasing access to NSLP benefits, par- a program, the idea of listing bank account informa- fication at increasing access to NSLP benefits, par- a program, the idea of listing bank account informa- ticularly for immigrant students. First, this paper tion and the members of a household may intimidate ticularly for immigrant students. First, this paper tion and the members of a household may intimidate outlines some of the particular barriers immigrants applicants, whether they are undocumented or not.10 outlines some of the particular barriers immigrants applicants, whether they are undocumented or not.10 face in accessing social benefit programs generally. Participation in social benefit programs can be even face in accessing social benefit programs generally. Participation in social benefit programs can be even Next, this paper examines the NSLP, exploring its more limited among immigrant households com- Next, this paper examines the NSLP, exploring its more limited among immigrant households com-

10 Vol. XVIII, 2010–2011 The Wagner Review 10 Vol. XVIII, 2010–2011 The Wagner Review posed of both citizens and noncitizens. Noncitizens trates the benefits these families could gain by par- posed of both citizens and noncitizens. Noncitizens trates the benefits these families could gain by par- are not always eligible for programs like SNAP and ticipating: eligible citizen children of noncitizen are not always eligible for programs like SNAP and ticipating: eligible citizen children of noncitizen TANF, whereas citizens are. Many changes were immigrant parents receiving SNAP benefits are TANF, whereas citizens are. Many changes were immigrant parents receiving SNAP benefits are made to immigrant and noncitizen SNAP eligibil- “32 percent less likely to suffer from poor health made to immigrant and noncitizen SNAP eligibil- “32 percent less likely to suffer from poor health ity during the welfare reform years from 1994 to than if their families did not receive benefits.”12 Yet, ity during the welfare reform years from 1994 to than if their families did not receive benefits.”12 Yet, 2000, and participation rates among eligible citizen while participation among eligible citizen children 2000, and participation rates among eligible citizen while participation among eligible citizen children children in mixed immigrant households dropped has increased in recent years, a wide participation children in mixed immigrant households dropped has increased in recent years, a wide participation from 80.5 percent to 38.1 percent.11 Research illus- gap remains.13 from 80.5 percent to 38.1 percent.11 Research illus- gap remains.13

Figure 1. Average Number of Participants and Eligible Nonparticipants in the NSLP, 2008 and 2009 Figure 1. Average Number of Participants and Eligible Nonparticipants in the NSLP, 2008 and 2009

Barriers to NSLP Participation Barriers to NSLP Participation

The NSLP is a critical social benefit program, par- cation to access in-kind meal benefits.17 According The NSLP is a critical social benefit program, par- cation to access in-kind meal benefits.17 According ticularly for immigrant students. Unlike SNAP or to Wayne Grasela, director of the School District of ticularly for immigrant students. Unlike SNAP or to Wayne Grasela, director of the School District of TANF, eligibility is based solely on need, without Philadelphia’s food service division, the return rate of TANF, eligibility is based solely on need, without Philadelphia’s food service division, the return rate of regard for citizenship.14 To qualify for in-kind meal paper applications among eligible families remains regard for citizenship.14 To qualify for in-kind meal paper applications among eligible families remains benefits through the NSLP, a student’s family must low, particularly among elementary school students.18 benefits through the NSLP, a student’s family must low, particularly among elementary school students.18 fall at or below 130 percent of the federal poverty line; Common reasons for this low rate of return are stu- fall at or below 130 percent of the federal poverty line; Common reasons for this low rate of return are stu- to qualify for reduced-price meals, the student’s fam- dents forgetting to give their parents the forms, the to qualify for reduced-price meals, the student’s fam- dents forgetting to give their parents the forms, the ily must fall between 130 percent and at or below 185 school district having inaccurate mailing addresses, ily must fall between 130 percent and at or below 185 school district having inaccurate mailing addresses, percent of the federal poverty line.15 The USDA subsi- and language barriers.19 In some cases, eligible fami- percent of the federal poverty line.15 The USDA subsi- and language barriers.19 In some cases, eligible fami- dizes school meals based on the estimated percentage lies may underestimate their benefit level or not dizes school meals based on the estimated percentage lies may underestimate their benefit level or not of eligible students, and the school is responsible for apply for benefits because they are simply not famil- of eligible students, and the school is responsible for apply for benefits because they are simply not famil- any difference in actual costs.16 Yet like other social iar with NSLP income requirements.20 Of students any difference in actual costs.16 Yet like other social iar with NSLP income requirements.20 Of students benefit programs, certain barriers negatively impact originally approved for reduced-price meals in 2002, benefit programs, certain barriers negatively impact originally approved for reduced-price meals in 2002, take-up rates and increase eligible nonparticipation, 23 percent were still eligible for reduced-price meals, take-up rates and increase eligible nonparticipation, 23 percent were still eligible for reduced-price meals, especially among immigrants. while 31 percent were actually eligible for free meals.21 especially among immigrants. while 31 percent were actually eligible for free meals.21 In certain cases, a family may not be eligible at the In certain cases, a family may not be eligible at the If students are not certified directly for the NSLP beginning of a school year but may become eligible If students are not certified directly for the NSLP beginning of a school year but may become eligible through their participation in other social benefit because of changes in income or household compo- through their participation in other social benefit because of changes in income or household compo- programs, they are required to submit a paper appli- sition. In such a scenario, the family needs to con- programs, they are required to submit a paper appli- sition. In such a scenario, the family needs to con-

Increasing Immigrant Student Access wong 11 Increasing Immigrant Student Access wong 11 to National School Lunch Benefits to National School Lunch Benefits tact the school to request an application but may not study failed to respond, and their children’s benefits tact the school to request an application but may not study failed to respond, and their children’s benefits be aware that it can do so.22 Some families may also were terminated.”29 A 2003 Mathematica study found be aware that it can do so.22 Some families may also were terminated.”29 A 2003 Mathematica study found choose not to apply for NSLP benefits because of the that, of those who failed to respond to a verification choose not to apply for NSLP benefits because of the that, of those who failed to respond to a verification stigma associated with receiving free or reduced-price request and were originally approved for free meals, 51 stigma associated with receiving free or reduced-price request and were originally approved for free meals, 51 meals.23 percent were actually eligible for free meals; another meals.23 percent were actually eligible for free meals; another 26 percent were eligible for reduced-price meals.30 26 percent were eligible for reduced-price meals.30 Perhaps ironically, two of the most significant barriers Perhaps ironically, two of the most significant barriers to participation are processes intended to get eligible Verification places additional administrative burden on to participation are processes intended to get eligible Verification places additional administrative burden on students into the program: application and verifica- the families and school districts but does not appear to students into the program: application and verifica- the families and school districts but does not appear to tion. The amount of information and time required minimize moral hazard and can instead confuse NSLP tion. The amount of information and time required minimize moral hazard and can instead confuse NSLP by the NSLP application process may intimidate and applicants.31 An USDA analysis showed that of the 68.1 by the NSLP application process may intimidate and applicants.31 An USDA analysis showed that of the 68.1 overwhelm families to the point where they do not percent who responded to verification requests dur- overwhelm families to the point where they do not percent who responded to verification requests dur- apply for the program despite being eligible.24 The ing the 2007-2008 school year, 47.8 percent had their apply for the program despite being eligible.24 The ing the 2007-2008 school year, 47.8 percent had their current NSLP information letter comprises 14sec- initial certification status confirmed (a drop from 65 current NSLP information letter comprises 14sec- initial certification status confirmed (a drop from 65 tions, and the detailed USDA Food and Nutrition percent in the 2004-2005 school year), 1.9 percent had tions, and the detailed USDA Food and Nutrition percent in the 2004-2005 school year), 1.9 percent had Services School Meals Eligibility Manual is 114 pages their status changed from reduced-price to free, 9.4 Services School Meals Eligibility Manual is 114 pages their status changed from reduced-price to free, 9.4 long.25 The NSLP application process involves writ- percent had their status changed from free to reduced- long.25 The NSLP application process involves writ- percent had their status changed from free to reduced- ten statements and may require listing the income of price, and 9 percent had their status changed from free ten statements and may require listing the income of price, and 9 percent had their status changed from free every household member.26 Disclosing this level of or reduced to paid.32 While the verification response every household member.26 Disclosing this level of or reduced to paid.32 While the verification response information may cause families to distrust the appli- rate increased from previous years, the data highlight information may cause families to distrust the appli- rate increased from previous years, the data highlight cation or to delay applying.27 applicant confusion around verification and NSLP eli- cation or to delay applying.27 applicant confusion around verification and NSLP eligibility. Assuming that families did not apply simply gibility. Assuming that families did not apply simply to be denied benefits, the drop in verified certifications to be denied benefits, the drop in verified certifications from 65 percent to 47.8 percent may reflect a lack of from 65 percent to 47.8 percent may reflect a lack of understanding regarding eligibility parameters. If fami- understanding regarding eligibility parameters. If fami- Perhaps ironically, two of lies are no longer eligible for benefits but attempted Perhaps ironically, two of lies are no longer eligible for benefits but attempted the most significant to access them, this may indicate a mismatch between the most significant to access them, this may indicate a mismatch between barriers to participation [in income requirements and the needs of families near barriers to participation [in income requirements and the needs of families near the NSLP] are processes the eligibility threshold. the NSLP] are processes the eligibility threshold. intended to get eligible intended to get eligible “students into the program: “students into the program: Even if families applied and were verified as eligible for the Even if families applied and were verified as eligible for the application and verification. NSLP, students themselves must complete the process to application and verification. NSLP, students themselves must complete the process to receive benefits. In most NSLP schools, this means sub- receive benefits. In most NSLP schools, this means submitting a lunch ticket or standing in a school food line, mitting a lunch ticket or standing in a school food line, both of which may carry a stigma and cost the student both of which may carry a stigma and cost the student The verification process aims to prevent ineligible stu- time to eat.33 The School Nutrition Association reports The verification process aims to prevent ineligible stu- time to eat.33 The School Nutrition Association reports dents from receiving NSLP benefits, but significant that the average time designated for lunch decreased from dents from receiving NSLP benefits, but significant that the average time designated for lunch decreased from evidence shows that it actually blocks eligible stu- an average of 30 minutes in 2003 to an average of 24 min- evidence shows that it actually blocks eligible stu- an average of 30 minutes in 2003 to an average of 24 min- dents from participating. For example, families that utes in 2005 across education levels, which includes travel dents from participating. For example, families that utes in 2005 across education levels, which includes travel fall close to the NSLP eligibility income threshold time to and from the cafeteria.34 A more efficient process fall close to the NSLP eligibility income threshold time to and from the cafeteria.34 A more efficient process may be randomly selected for verification after apply- that does not place the burden of completion on students may be randomly selected for verification after apply- that does not place the burden of completion on students ing for benefits, a process that involves submitting would increase the number of students who would actu- ing for benefits, a process that involves submitting would increase the number of students who would actu- additional documentation to confirm income and ally be able to benefit from the meals. additional documentation to confirm income and ally be able to benefit from the meals. household size and may require an in-school meet- household size and may require an in-school meeting.28 If pay stubs cannot be produced (misplaced, Immigrants are at a particular disadvantage in overcoming.28 If pay stubs cannot be produced (misplaced, Immigrants are at a particular disadvantage in overcom- not enough time to gather them, paid in cash, fear) ing these barriers to participation in the NSLP, primarily not enough time to gather them, paid in cash, fear) ing these barriers to participation in the NSLP, primarily or if a parent cannot meet at the school (work sched- because of language barriers and inaccurate school or gov- or if a parent cannot meet at the school (work sched- because of language barriers and inaccurate school or gov- ule, child care costs, fear), the student may be deemed ernment records. By law, NSLP application materials and ule, child care costs, fear), the student may be deemed ernment records. By law, NSLP application materials and ineligible for NSLP benefits: “50 percent of parents other eligibility-related communications must be “to the ineligible for NSLP benefits: “50 percent of parents other eligibility-related communications must be “to the for whom documentation letters were sent in a 2002 maximum extent practicable, in a language that parents for whom documentation letters were sent in a 2002 maximum extent practicable, in a language that parents

12 Vol. XVIII, 2010–2011 The Wagner Review 12 Vol. XVIII, 2010–2011 The Wagner Review and guardians understand,” but the onus of translation is recipients must submit a verification letter after direct cer- and guardians understand,” but the onus of translation is recipients must submit a verification letter after direct cer- placed largely on school districts.35 Translated templates tification and establishes pilot programs that allow direct placed largely on school districts.35 Translated templates tification and establishes pilot programs that allow direct exist on the NSLP website, but these templates must be certification through Medicaid records.40 A federally exist on the NSLP website, but these templates must be certification through Medicaid records.40 A federally updated and edited by individual schools and school dis- determined multiplier is then applied to the number of updated and edited by individual schools and school dis- determined multiplier is then applied to the number of tricts to fit their specific needs. Language needs and “rea- direct certification matches to estimate the total number tricts to fit their specific needs. Language needs and “rea- direct certification matches to estimate the total number sonable efforts” to translate vary by school, making such a and percent of NSLP eligible students.41 School districts sonable efforts” to translate vary by school, making such a and percent of NSLP eligible students.41 School districts mandate difficult to enforce. Consequently, familes with then receive federal meal reimbursements based on this mandate difficult to enforce. Consequently, familes with then receive federal meal reimbursements based on this limited English proficiency may simply not know about estimate.42 The Healthy, Hunger-Free Kids Act goes even limited English proficiency may simply not know about estimate.42 The Healthy, Hunger-Free Kids Act goes even social benefits like the NSLP. Even if documents are trans- further to establish the community-eligibility option, social benefits like the NSLP. Even if documents are trans- further to establish the community-eligibility option, lated, families may not feel comfortable submitting writ- which allows schools to offer free meals for all their stu- lated, families may not feel comfortable submitting writ- which allows schools to offer free meals for all their stu- ten statements, in either English or their native language. dents without a paper application if at least 40 percent of ten statements, in either English or their native language. dents without a paper application if at least 40 percent of While they may be fluent verbally in their native language, students are directly certified for free meals (at or below While they may be fluent verbally in their native language, students are directly certified for free meals (at or below they may not be literate in their native language, which 130 percent of the federal poverty line).43 they may not be literate in their native language, which 130 percent of the federal poverty line).43 may dissuade them from completing the application or may dissuade them from completing the application or verification process in any language.36 Survey method. Instead of a federal multiplier, the survey verification process in any language.36 Survey method. Instead of a federal multiplier, the survey method used in Philadelphia’s UFP supplements direct method used in Philadelphia’s UFP supplements direct Inaccurate school or government databases can also limit certification matches with a statistically driven valida- Inaccurate school or government databases can also limit certification matches with a statistically driven valida- immigrant access to NSLP benefits, especially if various tion phone survey to correct for initial direct certifica- immigrant access to NSLP benefits, especially if various tion phone survey to correct for initial direct certifica- entities record names differently, leading to false non- tion errors. Philadelphia’s survey is conducted in English entities record names differently, leading to false non- tion errors. Philadelphia’s survey is conducted in English matches in a NSLP certification or verification process.37 or Spanish and consists of no more than four questions matches in a NSLP certification or verification process.37 or Spanish and consists of no more than four questions On a student level, families may not be aware of available to verify a student’s school and household income.44 On a student level, families may not be aware of available to verify a student’s school and household income.44 follow-up procedures once they have been denied bene- School-level data are then used to estimate the percent- follow-up procedures once they have been denied bene- School-level data are then used to estimate the percent- fits, and students may therefore not receive meal benefits. age of students eligible for free or reduced-price lunches.45 fits, and students may therefore not receive meal benefits. age of students eligible for free or reduced-price lunches.45 On a school level, if enough immigrant students are not Philadelphia’s UFP provides free meals to all students who On a school level, if enough immigrant students are not Philadelphia’s UFP provides free meals to all students who certified as eligible due to administrative error, a school attend schools in which at least 75 percent of students are certified as eligible due to administrative error, a school attend schools in which at least 75 percent of students are may not qualify as a universally free lunch site. eligible for either free or reduced-price meals (at or below may not qualify as a universally free lunch site. eligible for either free or reduced-price meals (at or below 185 percent of the federal poverty line).46 185 percent of the federal poverty line).46 Overcoming Barriers: Overcoming Barriers: The Direct Certification While the direct certification and the survey methods The Direct Certification While the direct certification and the survey methods and Survey Methods both aim to increase access to NSLP benefits, commu- and Survey Methods both aim to increase access to NSLP benefits, communities with high concentrations of immigrant students nities with high concentrations of immigrant students would benefit more from the survey method. This assess- would benefit more from the survey method. This assess- Both the Healthy, Hunger-Free Kids Act and Philadel- ment consists of two main considerations: ability to meet Both the Healthy, Hunger-Free Kids Act and Philadel- ment consists of two main considerations: ability to meet phia’s UFP program aim to increase students’ access to the social-welfare needs and cost-savings potential. phia’s UFP program aim to increase students’ access to the social-welfare needs and cost-savings potential. NSLP by reforming the application and verification pro- NSLP by reforming the application and verification processes. This paper now examines their distinct approaches Direct certification reduces the administrative burden cesses. This paper now examines their distinct approaches Direct certification reduces the administrative burden in detail. for school districts and the federal government, but its in detail. for school districts and the federal government, but its effectiveness hinges on the accuracy of SNAP, TANF, and effectiveness hinges on the accuracy of SNAP, TANF, and Direct certification with multiplier. In the past, states and school district databases. As discussed previously, immi- Direct certification with multiplier. In the past, states and school district databases. As discussed previously, immi- school districts established different NSLP certification grants underuse social benefit programs like SNAP and school districts established different NSLP certification grants underuse social benefit programs like SNAP and processes that involved varying amounts of paperwork TANF;47 in 2000, 33.4 percent of SNAP-eligible non- processes that involved varying amounts of paperwork TANF;47 in 2000, 33.4 percent of SNAP-eligible non- and data comparisons. The Healthy, Hunger-Free Kids participant households contained children and 3.1 per- and data comparisons. The Healthy, Hunger-Free Kids participant households contained children and 3.1 per- Act provides national standards for a streamlined direct cent were households headed by noncitizen immigrants Act provides national standards for a streamlined direct cent were households headed by noncitizen immigrants certification process to qualify students for the NSLP.38 In with eligible citizen children.48 Direct certification also certification process to qualify students for the NSLP.38 In with eligible citizen children.48 Direct certification also an effort to increase the participation of eligible students assumes that participation in SNAP or TANF serves as a an effort to increase the participation of eligible students assumes that participation in SNAP or TANF serves as a in the NSLP, the Healthy, Hunger-Free Kids Act provides valid and reliable proxy for NSLP eligibility.49 Even the in the NSLP, the Healthy, Hunger-Free Kids Act provides valid and reliable proxy for NSLP eligibility.49 Even the incentives for states and school districts to compare school USDA has confirmed variation across states in its ability incentives for states and school districts to compare school USDA has confirmed variation across states in its ability enrollment data with SNAP or TANF databases to certify to certify students who are categorically eligible for the enrollment data with SNAP or TANF databases to certify to certify students who are categorically eligible for the students directly for NSLP benefits.39 The new legislation NSLP through SNAP.50 In addition to bypassing students students directly for NSLP benefits.39 The new legislation NSLP through SNAP.50 In addition to bypassing students eliminates the old requirement that SNAP and TANF whose families cannot access TANF or SNAP because of eliminates the old requirement that SNAP and TANF whose families cannot access TANF or SNAP because of

Increasing Immigrant Student Access wong 13 Increasing Immigrant Student Access wong 13 to National School Lunch Benefits to National School Lunch Benefits citizenship restrictions, direct certification could exclude Critics may consider serving ineligible students inefficient citizenship restrictions, direct certification could exclude Critics may consider serving ineligible students inefficient students whose families no longer qualify for TANF or or wasteful. However, economies of scale and the mar- students whose families no longer qualify for TANF or or wasteful. However, economies of scale and the mar- SNAP because of sanctions, time limits, or income fluc- ginal costs associated with charging ineligible students SNAP because of sanctions, time limits, or income fluc- ginal costs associated with charging ineligible students tuation.51 Moreover, a federally determined multiplier is for lunch may actually outweigh the costs involved with tuation.51 Moreover, a federally determined multiplier is for lunch may actually outweigh the costs involved with a “politically negotiated value rooted in statistical evalu- providing free meals to the whole school.58 The ineligible a “politically negotiated value rooted in statistical evalu- providing free meals to the whole school.58 The ineligible ation” and may not be the most appropriate multiplier students who receive NSLP benefits through Philadel- ation” and may not be the most appropriate multiplier students who receive NSLP benefits through Philadel- for every local school district or school. If direct certifi- phia’s UFP attend schools in which 75 percent or more for every local school district or school. If direct certifi- phia’s UFP attend schools in which 75 percent or more cation captures a nonrepresentative sample, a multiplier of their classmates are eligible for the NSLP. According cation captures a nonrepresentative sample, a multiplier of their classmates are eligible for the NSLP. According could magnify errors if not calculated appropriately, most to the Reinvestment Fund’s 2007 UFP survey results, could magnify errors if not calculated appropriately, most to the Reinvestment Fund’s 2007 UFP survey results, likely undercounting eligible students.52 These same eli- in strata comprising schools that would have been 80 to likely undercounting eligible students.52 These same eli- in strata comprising schools that would have been 80 to gible nonparticipants would not receive NSLP benefits 100 percent eligible through direct certification, 9.1 per- gible nonparticipants would not receive NSLP benefits 100 percent eligible through direct certification, 9.1 per- through direct certification. cent of students across the School District of Philadelphia through direct certification. cent of students across the School District of Philadelphia were ineligible to receive benefits.59 Even if all 9.1 percent were ineligible to receive benefits.59 Even if all 9.1 percent of ineligible students paid for their meals (as opposed to of ineligible students paid for their meals (as opposed to bringing their own lunch), it would not offset the costs to bringing their own lunch), it would not offset the costs to hire additional staff and security trucks to transport money hire additional staff and security trucks to transport money According to According to paid for meals.60 In addition, antihunger advocates, food- paid for meals.60 In addition, antihunger advocates, food- Community Legal Community Legal service managers, and food-service directors report that service managers, and food-service directors report that Services, less than a third Services, less than a third too many students assigned to the paid or reduced-price too many students assigned to the paid or reduced-price of the School District of of the School District of lunch categories still do not have the money to receive lunch categories still do not have the money to receive Philadelphia’s 200,000 Philadelphia’s 200,000 lunch.61 Bartfeld and Dunifon suggest that “there may lunch.61 Bartfeld and Dunifon suggest that “there may “ students received free or “ students received free or be a particularly vulnerable segment of the population, be a particularly vulnerable segment of the population, low-cost meals in 1991, low-cost meals in 1991, those who are in precarious financial circumstances who those who are in precarious financial circumstances who despite 80 percent despite 80 percent have not yet fallen into poverty, whose ability to meet have not yet fallen into poverty, whose ability to meet being eligible. being eligible. food-related needs is most affected by the economic and food-related needs is most affected by the economic and policy context.”62 The survey method allows the UFP not policy context.”62 The survey method allows the UFP not only to serve students in poverty but also to help meet only to serve students in poverty but also to help meet the social needs of students near poverty, whose families the social needs of students near poverty, whose families The survey method more accurately identifies students may be economically vulnerable but not eligible for other The survey method more accurately identifies students may be economically vulnerable but not eligible for other to meet social demand, and therefore more efficiently means-tested benefits. to meet social demand, and therefore more efficiently means-tested benefits. meets the needs of both immigrants and nonim- meets the needs of both immigrants and nonim- migrants.53 The School District of Philadelphia has In schools with significant immigrant populations, a migrants.53 The School District of Philadelphia has In schools with significant immigrant populations, a claimed that more than 85 percent of students in most more accurate accounting of eligibility among immigrant claimed that more than 85 percent of students in most more accurate accounting of eligibility among immigrant Philadelphia public schools fall at or below 185 percent students could lead to higher reported levels of need, and Philadelphia public schools fall at or below 185 percent students could lead to higher reported levels of need, and of the poverty line and therefore qualify for NSLP ben- could effectively increase access to in-kind meal benefits of the poverty line and therefore qualify for NSLP ben- could effectively increase access to in-kind meal benefits efits.54 According to Community Legal Services, less for the general school population. For example, South efits.54 According to Community Legal Services, less for the general school population. For example, South than a third of the School District of Philadelphia’s Philadelphia High School’s student body includes a high than a third of the School District of Philadelphia’s Philadelphia High School’s student body includes a high 200,000 students received free or low-cost meals in concentration of immigrant students, and only 44.1 per- 200,000 students received free or low-cost meals in concentration of immigrant students, and only 44.1 per- 1991, despite 80 percent of them being eligible.55 The cent of the students would have been deemed eligible 1991, despite 80 percent of them being eligible.55 The cent of the students would have been deemed eligible initial intent of the survey method pilot was to decrease for NSLP benefits through direct certification.63 The sur- initial intent of the survey method pilot was to decrease for NSLP benefits through direct certification.63 The sur- costs associated with administering the NSLP, but the vey method’s statistical correction for error increased the costs associated with administering the NSLP, but the vey method’s statistical correction for error increased the pilot also increased NSLP participation rates for eli- number of eligible students by 28.1 percentage points, pilot also increased NSLP participation rates for eli- number of eligible students by 28.1 percentage points, gible students. The UFP now includes approximately deeming the entire school eligible for free meals.64 Figure gible students. The UFP now includes approximately deeming the entire school eligible for free meals.64 Figure 200 of the school district’s 280 schools and provides 2 shows that a higher percentage of immigrant students 200 of the school district’s 280 schools and provides 2 shows that a higher percentage of immigrant students about 121,000 of the School District of Philadelphia’s meets NSLP income-eligibility requirements than U.S.- about 121,000 of the School District of Philadelphia’s meets NSLP income-eligibility requirements than U.S.- 167,000 students with free breakfast, lunch, or both born students.65 Without the survey, the burden of proof 167,000 students with free breakfast, lunch, or both born students.65 Without the survey, the burden of proof every day.56 According to the district’s chief business to receive NSLP benefits would have fallen to students every day.56 According to the district’s chief business to receive NSLP benefits would have fallen to students officer, Michael Masch, the cost of providing free meals not identified through direct certification, regardless of officer, Michael Masch, the cost of providing free meals not identified through direct certification, regardless of to so many students “evens out because of the money nativity. Numerous empirical studies confirm that paper to so many students “evens out because of the money nativity. Numerous empirical studies confirm that paper saved on administrative costs.”57 applications “do not fully compensate for a weak [direct saved on administrative costs.”57 applications “do not fully compensate for a weak [direct

14 Vol. XVIII, 2010–2011 The Wagner Review 14 Vol. XVIII, 2010–2011 The Wagner Review certification] system,” and very poor children who qualify and Spanish. Their results could be further improved by certification] system,” and very poor children who qualify and Spanish. Their results could be further improved by for the NSLP are more likely to receive meals if certified adding more languages.69 for the NSLP are more likely to receive meals if certified adding more languages.69 automatically.66 automatically.66

Even the survey method is not fail-proof in accurately Even the survey method is not fail-proof in accurately assessing need for NSLP benefits. In Philadelphia, iden- assessing need for NSLP benefits. In Philadelphia, identifying eligible immigrant students through the survey Even the USDA has tifying eligible immigrant students through the survey Even the USDA has has been challenged by language barriers, nonworking confirmed variation has been challenged by language barriers, nonworking confirmed variation phone numbers, and misunderstanding around eligibility across states in its ability phone numbers, and misunderstanding around eligibility across states in its ability requirements.67 As a result, immigrant student eligibility to certify students who are requirements.67 As a result, immigrant student eligibility to certify students who are may be undercounted, and schools with a high concentra- categorically eligible for may be undercounted, and schools with a high concentra- categorically eligible for tion of immigrant students may have an undercalculated “ the NSLP through SNAP. tion of immigrant students may have an undercalculated “ the NSLP through SNAP. community-eligibility rate. Yet despite the risk of error community-eligibility rate. Yet despite the risk of error in the UFP’s current survey, particularly for respondents in the UFP’s current survey, particularly for respondents whose primary language is not English or Spanish, the whose primary language is not English or Spanish, the survey method still identifies more eligible immigrants In addition to promoting economies of scale, the survey survey method still identifies more eligible immigrants In addition to promoting economies of scale, the survey than direct certification because of its statistical correction method offers other advantages over direct certification in than direct certification because of its statistical correction method offers other advantages over direct certification in for error on a local level and the ability to customize the terms of cost savings. While elimination of a verification for error on a local level and the ability to customize the terms of cost savings. While elimination of a verification letter in the direct certification process certainly removes letter in the direct certification process certainly removes a barrier to NSLP benefits, this measure could actually a barrier to NSLP benefits, this measure could actually increase costs to school districts with high concentrations increase costs to school districts with high concentrations of immigrants who underuse SNAP or TANF. Students of immigrants who underuse SNAP or TANF. Students not directly certified need to submit an application for not directly certified need to submit an application for NSLP benefits, a known barrier to participation that can NSLP benefits, a known barrier to participation that can lead to increased administrative costs, printing costs for lead to increased administrative costs, printing costs for lunch tickets, additional staff to collect tickets and money, lunch tickets, additional staff to collect tickets and money, and verification costs.70 Wayne Grasela, director of the and verification costs.70 Wayne Grasela, director of the food services division for the School District of Phila- food services division for the School District of Phila- delphia, expressed his concerns about federal reimburse- delphia, expressed his concerns about federal reimbursements in light of such costs: ments in light of such costs:

Once you take into account indirect costs— Once you take into account indirect costs— the cost of labor, operations, etc.—there’s the cost of labor, operations, etc.—there’s really not much money left over for actual really not much money left over for actual food. It costs 25 cents for a carton of milk, food. It costs 25 cents for a carton of milk, 25 cents for an apple, 15 cents for any other 25 cents for an apple, 15 cents for any other kind of fruit, 10 cents for white bread, 15 to kind of fruit, 10 cents for white bread, 15 to 20 cents for whole-wheat bread … that’s not 20 cents for whole-wheat bread … that’s not even counting proteins! Out of all of this, I even counting proteins! Out of all of this, I have to try and create a fully reimbursable have to try and create a fully reimbursable meal that is nutritious.71 meal that is nutritious.71

Figure 2. Free and Reduced Price Lunch Eligibility, by Nativity, 2009; As of July 2009, the maximum lunch subsidy rate for con- Figure 2. Free and Reduced Price Lunch Eligibility, by Nativity, 2009; As of July 2009, the maximum lunch subsidy rate for con- Source: U.S. Census Bureau tiguous states was $0.33 for paid meals, $2.45 for reduced- Source: U.S. Census Bureau tiguous states was $0.33 for paid meals, $2.45 for reduced- price meals, and $2.85 for free meals.72 This leaves a very price meals, and $2.85 for free meals.72 This leaves a very survey to meet local language and cultural needs.68 In Phil- small margin to create meals that students will eat, are survey to meet local language and cultural needs.68 In Phil- small margin to create meals that students will eat, are adelphia, for example, the Reinvestment Fund partnered nutritious, meet USDA standards, and do not pose sig- adelphia, for example, the Reinvestment Fund partnered nutritious, meet USDA standards, and do not pose sig- with the School District of Philadelphia to counter the nificant costs to school districts. The survey method cuts with the School District of Philadelphia to counter the nificant costs to school districts. The survey method cuts problem by issuing multilingual letters to families about out many of the costs associated with current application problem by issuing multilingual letters to families about out many of the costs associated with current application the survey and administering phone surveys in English models, leaving more funds for food services and food.73 the survey and administering phone surveys in English models, leaving more funds for food services and food.73

Increasing Immigrant Student Access to wong 15 Increasing Immigrant Student Access to wong 15 National School Lunch Benefits National School Lunch Benefits The survey method requires a significant initial invest- Conclusion The survey method requires a significant initial invest- Conclusion ment to administer, but this is later offset by resulting ment to administer, but this is later offset by resulting cost savings. The Reinvestment Fund conducted the sta- The USDA still considers the survey method a pilot, cost savings. The Reinvestment Fund conducted the sta- The USDA still considers the survey method a pilot, tistical surveys for the UFP in 1991, 1994, and 2007. The and the Healthy, Hunger-Free Kids Act of 2010 desig- tistical surveys for the UFP in 1991, 1994, and 2007. The and the Healthy, Hunger-Free Kids Act of 2010 desig- School District of Philadelphia invested $550,000 in the nates funds only for additional pilot replication efforts School District of Philadelphia invested $550,000 in the nates funds only for additional pilot replication efforts Fund’s data collection and analysis services in 2007, which that would last up to three years in up to three school Fund’s data collection and analysis services in 2007, which that would last up to three years in up to three school included an in-person interview component to validate districts.81 The survey method removes more barriers to included an in-person interview component to validate districts.81 The survey method removes more barriers to phone survey results.74 This initial expenditure often NSLP, potentially decreasing administrative costs for phone survey results.74 This initial expenditure often NSLP, potentially decreasing administrative costs for becomes a political breaking point for the survey method school districts. As a result, social demand for the NSLP becomes a political breaking point for the survey method school districts. As a result, social demand for the NSLP and is a main reason no other pilot sites were given an will be more accurately met for immigrant students, and is a main reason no other pilot sites were given an will be more accurately met for immigrant students, option to replicate the method until the Healthy, Hunger- who are often missed through direct certification and option to replicate the method until the Healthy, Hunger- who are often missed through direct certification and Free Kids Act.75 Politicians find it difficult to justify such not picked up through the paper application. The survey Free Kids Act.75 Politicians find it difficult to justify such not picked up through the paper application. The survey a high cost to get results that some argue would not be method corrects direct certification errors on a local level, a high cost to get results that some argue would not be method corrects direct certification errors on a local level, much different from those generated through direct certi- and this increased accuracy leads to more efficient distri- much different from those generated through direct certi- and this increased accuracy leads to more efficient distri- fication.76 Relaying the benefits of a sophisticated statistical bution of NSLP benefits to students and more efficient fication.76 Relaying the benefits of a sophisticated statistical bution of NSLP benefits to students and more efficient method to constituents or other legislators may also not federal reimbursements to schools. method to constituents or other legislators may also not federal reimbursements to schools. be an easy task.77 In addition, such a high initial expen- be an easy task.77 In addition, such a high initial expenditure negatively impacts the cost-estimate score given to Ensuring that eligible children are correctly identified diture negatively impacts the cost-estimate score given to Ensuring that eligible children are correctly identified policies by the Congressional Budget Office (CBO), since and provided with free and reduced-price lunches can policies by the Congressional Budget Office (CBO), since and provided with free and reduced-price lunches can the CBO does not necessarily calculate longer-term cost have both short- and long-term benefits. Critically, the CBO does not necessarily calculate longer-term cost have both short- and long-term benefits. Critically, savings and nonmonetary benefits that result from initial the NSLP helps address short- and long-term physi- savings and nonmonetary benefits that result from initial the NSLP helps address short- and long-term physi- survey costs.78 cal health disparities resulting from poverty by helping survey costs.78 cal health disparities resulting from poverty by helping vulnerable families secure adequate food.82 In addition, vulnerable families secure adequate food.82 In addition, food insecurity can lead to delayed or impaired devel- food insecurity can lead to delayed or impaired development, a particularly dire consequence for children.83 opment, a particularly dire consequence for children.83 One study even found that hunger and risk of hunger One study even found that hunger and risk of hunger [E]conomies of scale and among low-income students are correlated with “com- [E]conomies of scale and among low-income students are correlated with “com- the marginal costs promised psychosocial functioning.”84 Improvements in the marginal costs promised psychosocial functioning.”84 Improvements in associated with charging nutrient intake are also associated with improvements associated with charging nutrient intake are also associated with improvements ineligible students for in academic performance.85 Students who reported low ineligible students for in academic performance.85 Students who reported low lunch may actually nutrient intakes had “lower GPAs and higher rates of lunch may actually nutrient intakes had “lower GPAs and higher rates of “ outweigh the costs absenteeism and tardiness than children from the same “ outweigh the costs absenteeism and tardiness than children from the same involved with providing schools who reported higher levels of nutrient and involved with providing schools who reported higher levels of nutrient and free meals to the whole energy intake.”86 Academic achievement influences edu- free meals to the whole energy intake.”86 Academic achievement influences edu- school. cational attainment, which is associated with increased school. cational attainment, which is associated with increased job opportunities and wages that increase income and job opportunities and wages that increase income and act as a pathway out of poverty.87 act as a pathway out of poverty.87

In light of such costs, the survey method would not In addition, because in-kind meal benefits help meet In light of such costs, the survey method would not In addition, because in-kind meal benefits help meet be appropriate for every school district. However, the overall food needs, they provide families with more dis- be appropriate for every school district. However, the overall food needs, they provide families with more dis- more racially and economically diverse a district, the posable income to apply to other needs. This type of ben- more racially and economically diverse a district, the posable income to apply to other needs. This type of ben- less effective a multiplier at the federal level may be at efit is critical for families whose income is volatile or have less effective a multiplier at the federal level may be at efit is critical for families whose income is volatile or have capturing the district’s actual need.79 Since the survey experienced some sort of income shock. The NSLP acts capturing the district’s actual need.79 Since the survey experienced some sort of income shock. The NSLP acts method corrects direct certification at the local level, as a safety net that can prevent families from falling even method corrects direct certification at the local level, as a safety net that can prevent families from falling even it reflects a diverse district’s needs more accurately. deeper into poverty and can help them transition out of it reflects a diverse district’s needs more accurately. deeper into poverty and can help them transition out of Despite the initial survey costs, the UFP saved Phila- poverty. These measures can also provide more general Despite the initial survey costs, the UFP saved Phila- poverty. These measures can also provide more general delphia an estimated 20,480 hours of staff time, and cost savings to communities at large. Holzer et al. estimate delphia an estimated 20,480 hours of staff time, and cost savings to communities at large. Holzer et al. estimate the survey method increased the number of students that poverty raises direct expenditures on health care and the survey method increased the number of students that poverty raises direct expenditures on health care and eligible for the NSLP and saved the school district special education assignment resulting from poverty by eligible for the NSLP and saved the school district special education assignment resulting from poverty by about $0.19 per meal.80 about $26 billion per year, “though this no doubt under- about $0.19 per meal.80 about $26 billion per year, “though this no doubt under-

16 Vol. XVIII, 2010–2011 The Wagner Review 16 Vol. XVIII, 2010–2011 The Wagner Review states the true effects of poverty (as expenditures on Social for certification methods that most accurately identify states the true effects of poverty (as expenditures on Social for certification methods that most accurately identify Security, Disability Insurance, and other categories are and enroll eligible students. The 20-year success of Security, Disability Insurance, and other categories are and enroll eligible students. The 20-year success of omitted here due to lack of estimates).”88 Indeed, higher Philadelphia’s survey method illustrates the potential omitted here due to lack of estimates).”88 Indeed, higher Philadelphia’s survey method illustrates the potential rates of morbidity and mortality among those in poverty for similar cities to use this method in their schools rates of morbidity and mortality among those in poverty for similar cities to use this method in their schools has an impact on people “above and beyond their effects and communities. In light of the proven benefits the has an impact on people “above and beyond their effects and communities. In light of the proven benefits the on medical or education expenditures.”89 survey method provides for needy students, particu- on medical or education expenditures.”89 survey method provides for needy students, particularly immigrants in or near poverty, Congress should larly immigrants in or near poverty, Congress should The NSLP provides a much needed buffer between increase the number of school districts permitted to The NSLP provides a much needed buffer between increase the number of school districts permitted to eligible students and the educational, behavioral, replicate the survey method and extend the three-year eligible students and the educational, behavioral, replicate the survey method and extend the three-year developmental, and health consequences of poverty timeline, particularly in communities with high con- developmental, and health consequences of poverty timeline, particularly in communities with high con- and food insecurity.90 These benefits suggest the need centrations of immigrant students. and food insecurity.90 These benefits suggest the need centrations of immigrant students.

Notes Notes

1 The Reinvestment Fund (TRF), “Estimating the Percentage of by Michelle R. Wong, April 30, 2010. 1 The Reinvestment Fund (TRF), “Estimating the Percentage of by Michelle R. Wong, April 30, 2010. Students Income-Eligible for Free and Reduced Price Lunch,” 8 Maryns, “Access and Access Barriers to Getting Food Stamps: A Students Income-Eligible for Free and Reduced Price Lunch,” 8 Maryns, “Access and Access Barriers to Getting Food Stamps: A August 2007, http://www.trfund.com/resource/downloads/poli- Review of the Literature,” 92. August 2007, http://www.trfund.com/resource/downloads/poli- Review of the Literature,” 92. cypubs/SchoolLunchEligible_SDOP.pdf. 9 Rachel Meeks, in-person interview by Michelle R. Wong, April cypubs/SchoolLunchEligible_SDOP.pdf. 9 Rachel Meeks, in-person interview by Michelle R. Wong, April 2 Audrey Singer, Domenic Vitiello, Michael Katz, and David Park, 30, 2010. 2 Audrey Singer, Domenic Vitiello, Michael Katz, and David Park, 30, 2010. “Recent Immigration to Philadelphia: Regional Change in a Re- 10 Rachel Meeks, in-person interview by Michelle R. Wong, April “Recent Immigration to Philadelphia: Regional Change in a Re- 10 Rachel Meeks, in-person interview by Michelle R. Wong, April Emerging Gateway,” Metropolitan Policy Program at Brookings 30, 2010. Emerging Gateway,” Metropolitan Policy Program at Brookings 30, 2010. (November 2008): 1, accessed February 26, 2011. http://www. 11 Maryns, “Access and Access Barriers to Getting Food Stamps: A (November 2008): 1, accessed February 26, 2011. http://www. 11 Maryns, “Access and Access Barriers to Getting Food Stamps: A brookings.edu/~/media/Files/rc/reports/2008/1113_immigra- Review of the Literature,” 92. brookings.edu/~/media/Files/rc/reports/2008/1113_immigra- Review of the Literature,” 92. tion_singer/1113_immigration_singer.pdf. 12 Maryns, “Access and Access Barriers to Getting Food Stamps: A tion_singer/1113_immigration_singer.pdf. 12 Maryns, “Access and Access Barriers to Getting Food Stamps: A 3 Food Research and Action Center, “Summary of School Nutri- Review of the Literature,” 92. 3 Food Research and Action Center, “Summary of School Nutri- Review of the Literature,” 92. tion Program Provisions in the Healthy, Hunger-Free Kids Act of 13 Maryns, “Access and Access Barriers to Getting Food Stamps: A tion Program Provisions in the Healthy, Hunger-Free Kids Act of 13 Maryns, “Access and Access Barriers to Getting Food Stamps: A 2010,” April 2010, http://frac.org/wp-content/uploads/2010/04/ Review of the Literature,” 92. 2010,” April 2010, http://frac.org/wp-content/uploads/2010/04/ Review of the Literature,” 92. cnr_school_nutrition_program_provisions_summary.pdf, 14 Child Nutrition Programs, Food and Nutrition Services, “Eligi- cnr_school_nutrition_program_provisions_summary.pdf, 14 Child Nutrition Programs, Food and Nutrition Services, “Eligi- accessed February 22, 2011. bility Manual for School Meals, Federal Policy for Determining accessed February 22, 2011. bility Manual for School Meals, Federal Policy for Determining 4 Child Nutrition Programs, Food and Nutrition Services, “Eligi- and Verifying Eligibility,” U.S. Department of Agriculture, 18. 4 Child Nutrition Programs, Food and Nutrition Services, “Eligi- and Verifying Eligibility,” U.S. Department of Agriculture, 18. bility Manual for School Meals, Federal Policy for Determining 15 Child Nutrition Programs, Food and Nutrition Services, “Eligi- bility Manual for School Meals, Federal Policy for Determining 15 Child Nutrition Programs, Food and Nutrition Services, “Eligi- and Verifying Eligibility,” U.S. Department of Agriculture, 18, bility Manual for School Meals, Federal Policy for Determining and Verifying Eligibility,” U.S. Department of Agriculture, 18, bility Manual for School Meals, Federal Policy for Determining accessed April 14, 2010, http://www.fns.usda.gov/cnd/Gover- and Verifying Eligibility,” 4. accessed April 14, 2010, http://www.fns.usda.gov/cnd/Gover- and Verifying Eligibility,” 4. nance/notices/iegs/EligibilityManual.pdf. 16 Wayne Grasela, phone interview by Michelle R. Wong, May 3, nance/notices/iegs/EligibilityManual.pdf. 16 Wayne Grasela, phone interview by Michelle R. Wong, May 3, 5 Nicholas Maryns, “Access and Access Barriers to Getting Food 2010. 5 Nicholas Maryns, “Access and Access Barriers to Getting Food 2010. Stamps: A Review of the Literature,” Food Research and Action 17 Child Nutrition Programs, Food and Nutrition Services, “Eligi- Stamps: A Review of the Literature,” Food Research and Action 17 Child Nutrition Programs, Food and Nutrition Services, “Eligi- Center, February 2008: 92, http://www.frac.org/pdf/FSPaccess. bility Manual for School Meals, Federal Policy for Determining Center, February 2008: 92, http://www.frac.org/pdf/FSPaccess. bility Manual for School Meals, Federal Policy for Determining pdf. and Verifying Eligibility,” 16. pdf. and Verifying Eligibility,” 16. 6 Francesca Mazzolari and Nora Gordon, “Immigrants’ Welfare 18 Wayne Grasela, phone interview by Michelle R. Wong, May 3, 6 Francesca Mazzolari and Nora Gordon, “Immigrants’ Welfare 18 Wayne Grasela, phone interview by Michelle R. Wong, May 3, Participation after Welfare Reform,” Working Paper for Institute 2010. Participation after Welfare Reform,” Working Paper for Institute 2010. for Poverty Research, Northwestern University, presented at 19 Wayne Grasela, phone interview by Michelle R. Wong, May 3, for Poverty Research, Northwestern University, presented at 19 Wayne Grasela, phone interview by Michelle R. Wong, May 3, 2003-04 JCPR/Census Bureau Research Development Grants 2010. 2003-04 JCPR/Census Bureau Research Development Grants 2010. Conference: 2, http://www.northwestern.edu/ipr/jcpr/working- 20 Janet Poppendieck, Free for All: Fixing School Food in America Conference: 2, http://www.northwestern.edu/ipr/jcpr/working- 20 Janet Poppendieck, Free for All: Fixing School Food in America papers/wpfiles/GordonMazz.pdf. (Berkeley and Los Angeles, CA: University of California Press, papers/wpfiles/GordonMazz.pdf. (Berkeley and Los Angeles, CA: University of California Press, 7 Maryns, “Access and Access Barriers to Getting Food Stamps: A 2010), 180. 7 Maryns, “Access and Access Barriers to Getting Food Stamps: A 2010), 180. Review of the Literature,” 46; Rachel Meeks, in-person interview 21 Food and Nutrition Service, “NSLP Certification Accuracy Review of the Literature,” 46; Rachel Meeks, in-person interview 21 Food and Nutrition Service, “NSLP Certification Accuracy

Increasing Immigrant Student Access WONG 17 Increasing Immigrant Student Access WONG 17 to National School Lunch Benefits to National School Lunch Benefits Research Summary of Preliminary Findings,” USDA, September 41 Child Nutrition Programs, Food and Nutrition Services, “Eligi- Research Summary of Preliminary Findings,” USDA, September 41 Child Nutrition Programs, Food and Nutrition Services, “Eligi- 12, 2002, accessed February 20, 2011, http://www.fns.usda.gov/ bility Manual for School Meals, Federal Policy for Determining 12, 2002, accessed February 20, 2011, http://www.fns.usda.gov/ bility Manual for School Meals, Federal Policy for Determining ora/menu/published/CNP/FILES/NSLPCertResearchPolicy. and Verifying Eligibility.” ora/menu/published/CNP/FILES/NSLPCertResearchPolicy. and Verifying Eligibility.” pdf. 42 Child Nutrition Programs, Food and Nutrition Services, “Eligi- pdf. 42 Child Nutrition Programs, Food and Nutrition Services, “Eligi- 22 Poppendieck, Free for All: Fixing School Food in America, 181. bility Manual for School Meals, Federal Policy for Determining 22 Poppendieck, Free for All: Fixing School Food in America, 181. bility Manual for School Meals, Federal Policy for Determining 23 Poppendieck, Free for All: Fixing School Food in America, 180. and Verifying Eligibility.” 23 Poppendieck, Free for All: Fixing School Food in America, 180. and Verifying Eligibility.” 24 Poppendieck, Free for All: Fixing School Food in America, 180. 43 Food Research and Action Center, “Summary of School Nutri- 24 Poppendieck, Free for All: Fixing School Food in America, 180. 43 Food Research and Action Center, “Summary of School Nutri- 25 Child Nutrition Programs, Food and Nutrition Services, “Eligi- tion Program Provisions in the Healthy, Hunger-Free Kids Act 25 Child Nutrition Programs, Food and Nutrition Services, “Eligi- tion Program Provisions in the Healthy, Hunger-Free Kids Act bility Manual for School Meals, Federal Policy for Determining of 2010.” bility Manual for School Meals, Federal Policy for Determining of 2010.” and Verifying Eligibility.” 44 Ira Goldstein, in-person interview by Michelle R. Wong, April and Verifying Eligibility.” 44 Ira Goldstein, in-person interview by Michelle R. Wong, April 26 Child Nutrition Programs, Food and Nutrition Services, “Eligi- 30, 2010. 26 Child Nutrition Programs, Food and Nutrition Services, “Eligi- 30, 2010. bility Manual for School Meals, Federal Policy for Determining 45 The Reinvestment Fund, “Estimating the Percentage of Students bility Manual for School Meals, Federal Policy for Determining 45 The Reinvestment Fund, “Estimating the Percentage of Students and Verifying Eligibility.” Income-Eligible for Free and Reduced Price Lunch.” and Verifying Eligibility.” Income-Eligible for Free and Reduced Price Lunch.” 27 Rachel Meeks, in-person interview by Michelle R. Wong, April 46 Kathy Matheson, “In Philadelphia, most students get a free 27 Rachel Meeks, in-person interview by Michelle R. Wong, April 46 Kathy Matheson, “In Philadelphia, most students get a free 30, 2010. lunch,” The Associated Press, ABC News. July 5, 2009, accessed 30, 2010. lunch,” The Associated Press, ABC News. July 5, 2009, accessed 28 Poppendieck, Free for All: Fixing School Food in America, 182. April 17, 2010 http://www.thefreelibrary.com/In+Philly+schools, 28 Poppendieck, Free for All: Fixing School Food in America, 182. April 17, 2010 http://www.thefreelibrary.com/In+Philly+schools, 29 Poppendieck, Free for All: Fixing School Food in America, 182. +most+students+get+a+free+lunch-a01611919399. 29 Poppendieck, Free for All: Fixing School Food in America, 182. +most+students+get+a+free+lunch-a01611919399. 30 Poppendieck, Free for All: Fixing School Food in America, 182. 47 Ira Goldstein, in-person interview by Michelle R. Wong, April 30 Poppendieck, Free for All: Fixing School Food in America, 182. 47 Ira Goldstein, in-person interview by Michelle R. Wong, April 31 Wayne Grasela, phone interview by Michelle R. Wong, May 3, 30, 2010. 31 Wayne Grasela, phone interview by Michelle R. Wong, May 3, 30, 2010. 2010. 48 Maryns, “Access and Access Barriers to Getting Food Stamps: A 2010. 48 Maryns, “Access and Access Barriers to Getting Food Stamps: A 32 Office of Research and Analysis, Food and Nutrition Services, Review of the Literature,” 12. 32 Office of Research and Analysis, Food and Nutrition Services, Review of the Literature,” 12. “Analysis of Verification Summary Data, School Year 2007-08, 49 Ira Goldstein, in-person interview by Michelle R. Wong, April “Analysis of Verification Summary Data, School Year 2007-08, 49 Ira Goldstein, in-person interview by Michelle R. Wong, April Executive Summary (October 2009),” US Department of Agri- 30, 2010. Executive Summary (October 2009),” US Department of Agri- 30, 2010. culture (USDA), Accessed April 19, 2010. http://www.fns.usda. 50 “Preliminary Report on the Feasibility of Computer Match- culture (USDA), Accessed April 19, 2010. http://www.fns.usda. 50 “Preliminary Report on the Feasibility of Computer Match- gov/ora/menu/published/CNP/FILES/CNVerification2007-08- ing in the National School Lunch Program,” USDA Food and gov/ora/menu/published/CNP/FILES/CNVerification2007-08- ing in the National School Lunch Program,” USDA Food and Summary.pdf. Nutrition Service, last modified May 5, 2010. http://www.fns. Summary.pdf. Nutrition Service, last modified May 5, 2010. http://www.fns. 33 Poppendieck, Free for All: Fixing School Food in America, 149. usda.gov/ora/menu/published/CNP/FILES/NSLPDataMat- 33 Poppendieck, Free for All: Fixing School Food in America, 149. usda.gov/ora/menu/published/CNP/FILES/NSLPDataMat- 34 Poppendieck, Free for All: Fixing School Food in America, 150. chExecSum.htm. 34 Poppendieck, Free for All: Fixing School Food in America, 150. chExecSum.htm. 35 Child Nutrition Programs, Food and Nutrition Service, “Eligi- 51 Maryns, “Access and Access Barriers to Getting Food Stamps: A 35 Child Nutrition Programs, Food and Nutrition Service, “Eligi- 51 Maryns, “Access and Access Barriers to Getting Food Stamps: A bility Manual for School Meals, Federal Policy for Determining Review of the Literature,” 75. bility Manual for School Meals, Federal Policy for Determining Review of the Literature,” 75. and Verifying Eligibility.” 52 Ira Goldstein, in-person interview by Michelle R. Wong, April and Verifying Eligibility.” 52 Ira Goldstein, in-person interview by Michelle R. Wong, April 36 Rachel Meeks, in-person interview by Michelle R. Wong, April 30, 2010. 36 Rachel Meeks, in-person interview by Michelle R. Wong, April 30, 2010. 30, 2010. 53 Ira Goldstein, in-person interview by Michelle R. Wong, April 30, 2010. 53 Ira Goldstein, in-person interview by Michelle R. Wong, April 37 Zoë Neuberger, “USDA Study Shows States Failing to Connect 30, 2010. 37 Zoë Neuberger, “USDA Study Shows States Failing to Connect 30, 2010. Many Needy Children to Free School Meals,” Center on Budget 54 Matheson, “In Philadelphia, most students get a free lunch.” Many Needy Children to Free School Meals,” Center on Budget 54 Matheson, “In Philadelphia, most students get a free lunch.” and Policy Priorities, March 3, 2009, accessed May 1, 2010. 55 Matheson, “In Philadelphia, most students get a free lunch.” and Policy Priorities, March 3, 2009, accessed May 1, 2010. 55 Matheson, “In Philadelphia, most students get a free lunch.” http://www.cbpp.org/cms/index.cfm?fa=view&id=2701. 56 Arlene Ackerman, “Message from Superintendent Arlene http://www.cbpp.org/cms/index.cfm?fa=view&id=2701. 56 Arlene Ackerman, “Message from Superintendent Arlene 38 Food Research and Action Center, “Summary of School C. Ackerman – We Must Keep This Government Nutrition 38 Food Research and Action Center, “Summary of School C. Ackerman – We Must Keep This Government Nutrition Nutrition Program Provisions in the Healthy, Hunger-Free Program Intact,” School District of Philadelphia, December Nutrition Program Provisions in the Healthy, Hunger-Free Program Intact,” School District of Philadelphia, December Kids Act of 2010,” April 2010, http://frac.org/wp-content/ 17, 2008, accessed April 14, 2010. http://www.phila.k12.pa.us/ Kids Act of 2010,” April 2010, http://frac.org/wp-content/ 17, 2008, accessed April 14, 2010. http://www.phila.k12.pa.us/ uploads/2010/04/cnr_school_nutrition_program_provisions_ offices/ceo/ackerman/nutrition_program.html. uploads/2010/04/cnr_school_nutrition_program_provisions_ offices/ceo/ackerman/nutrition_program.html. summary.pdf, accessed February 22, 2011. 57 Matheson, “In Philadelphia, most students get a free lunch.” summary.pdf, accessed February 22, 2011. 57 Matheson, “In Philadelphia, most students get a free lunch.” 39 Food Research and Action Center, “Summary of School Nutri- 58 Wayne Grasela, phone interview by Michelle R. Wong, May 3, 39 Food Research and Action Center, “Summary of School Nutri- 58 Wayne Grasela, phone interview by Michelle R. Wong, May 3, tion Program Provisions in the Healthy, Hunger-Free Kids Act 2010. tion Program Provisions in the Healthy, Hunger-Free Kids Act 2010. of 2010.” 59 The Reinvestment Fund, “Estimating the Percentage of Students of 2010.” 59 The Reinvestment Fund, “Estimating the Percentage of Students 40 Office of Analysis, Nutrition and Evaluation, Food and Nutri- Income-Eligible for Free and Reduced Price Lunch,” 21. 40 Office of Analysis, Nutrition and Evaluation, Food and Nutri- Income-Eligible for Free and Reduced Price Lunch,” 21. tion Services, “Direct Verification Pilot Study: First Year Report 60 Wayne Grasela, phone interview by Michelle R. Wong, May 3, tion Services, “Direct Verification Pilot Study: First Year Report 60 Wayne Grasela, phone interview by Michelle R. Wong, May 3, Summary (June 2007),” U.S. Department of Agriculture, 2010. Summary (June 2007),” U.S. Department of Agriculture, 2010. accessed April 19, 2010. http://www.fns.usda.gov/ora/menu/pub- 61 Poppendieck, Free for All: Fixing School Food in America, 185. accessed April 19, 2010. http://www.fns.usda.gov/ora/menu/pub- 61 Poppendieck, Free for All: Fixing School Food in America, 185. lished/CNP/FILES/DirectVerificationYear1_Summary.pdf. 62 Bartfeld and Dunifon, “State-Level Predictors of Food Insecurity lished/CNP/FILES/DirectVerificationYear1_Summary.pdf. 62 Bartfeld and Dunifon, “State-Level Predictors of Food Insecurity

18 Vol. XVIII, 2010–2011 The Wagner Review 18 Vol. XVIII, 2010–2011 The Wagner Review and Hunger Among Households With Children,” 53. 81 Food Research and Action Center, “Summary of School Nutri- and Hunger Among Households With Children,” 53. 81 Food Research and Action Center, “Summary of School Nutri- 63 The Reinvestment Fund, “Estimating the Percentage of Students tion Program Provisions in the Healthy, Hunger-Free Kids Act 63 The Reinvestment Fund, “Estimating the Percentage of Students tion Program Provisions in the Healthy, Hunger-Free Kids Act Income-Eligible for Free and Reduced Price Lunch,” 34. of 2010.” Income-Eligible for Free and Reduced Price Lunch,” 34. of 2010.” 64 The Reinvestment Fund, “Estimating the Percentage of Students 82 Judi Bartfeld and Rachel Dunifon, “State-Level Predictors 64 The Reinvestment Fund, “Estimating the Percentage of Students 82 Judi Bartfeld and Rachel Dunifon, “State-Level Predictors Income-Eligible for Free and Reduced Price Lunch,” 34. of Food Insecurity and Hunger Among Households With Income-Eligible for Free and Reduced Price Lunch,” 34. of Food Insecurity and Hunger Among Households With 65 Census 2010, U.S. Census Bureau, Accessed on February 1, Children,” USDA Economic Research Service, Contractor and 65 Census 2010, U.S. Census Bureau, Accessed on February 1, Children,” USDA Economic Research Service, Contractor and 2010. http://www.census.gov/hhes/www/cpstc/cps_table_cre- Cooperator Report No. 13 (October 2005): 10, accessed on April 2010. http://www.census.gov/hhes/www/cpstc/cps_table_cre- Cooperator Report No. 13 (October 2005): 10, accessed on April ator.html 30, 2010. http://www.idph.state.ia.us/hpcdp/common/pdf/ ator.html 30, 2010. http://www.idph.state.ia.us/hpcdp/common/pdf/ 66 Neuberger, “USDA Study Shows States Failing to Connect food_security/state_level_fs.pdf. 66 Neuberger, “USDA Study Shows States Failing to Connect food_security/state_level_fs.pdf. Many Needy Children to Free School Meals,” 3. 83 John T. Cook and Deborah A. Frank, “Food Security, Poverty, Many Needy Children to Free School Meals,” 3. 83 John T. Cook and Deborah A. Frank, “Food Security, Poverty, 67 Rachel Meeks, in-person interview by Michelle R. Wong, April and Human Development in the United States,” Annals of 67 Rachel Meeks, in-person interview by Michelle R. Wong, April and Human Development in the United States,” Annals of 30, 2010. the New York Academy of Sciences 1136: 1 (July 25, 2008): 197, 30, 2010. the New York Academy of Sciences 1136: 1 (July 25, 2008): 197, 68 Ira Goldstein, in-person interview by Michelle R. Wong, April accessed on April 17, 2010, doi: 10.1196/annals.1425.001. 68 Ira Goldstein, in-person interview by Michelle R. Wong, April accessed on April 17, 2010, doi: 10.1196/annals.1425.001. 30, 2010. 84 Christine M. Olson, “Nutrition and Health Outcomes Associ- 30, 2010. 84 Christine M. Olson, “Nutrition and Health Outcomes Associ- 69 The Reinvestment Fund, “Estimating the Percentage of Students ated With Food Insecurity and Hunger,” The Journal of Nutri- 69 The Reinvestment Fund, “Estimating the Percentage of Students ated With Food Insecurity and Hunger,” The Journal of Nutri- Income-Eligible for Free and Reduced Price Lunch,” 14. tion, 129 (February 1, 1999): 521S, accessed on April 30, 2010. Income-Eligible for Free and Reduced Price Lunch,” 14. tion, 129 (February 1, 1999): 521S, accessed on April 30, 2010. 70 Wayne Grasela, phone interview by Michelle R. Wong, May 3, http://jn.nutrition.org/cgi/reprint/129/2/521S. 70 Wayne Grasela, phone interview by Michelle R. Wong, May 3, http://jn.nutrition.org/cgi/reprint/129/2/521S. 2010. 85 R.E. Kleinman, S. Hall, H. Green, D. Korzec-Ramirez, K. 2010. 85 R.E. Kleinman, S. Hall, H. Green, D. Korzec-Ramirez, K. 71 Wayne Grasela, phone interview by Michelle R. Wong, May 3, Patton, M.E. Pagano, J.M. Murphy, “Diet, Breakfast, and 71 Wayne Grasela, phone interview by Michelle R. Wong, May 3, Patton, M.E. Pagano, J.M. Murphy, “Diet, Breakfast, and 2010. Academic Performance in Children,” Annals of Nutrition & 2010. Academic Performance in Children,” Annals of Nutrition & 72 Food and Nutrition Service (FNS), USDA, “National School Metabolism 2002, 46 (suppl 1):24, doi: 10.1159/000066399. 72 Food and Nutrition Service (FNS), USDA, “National School Metabolism 2002, 46 (suppl 1):24, doi: 10.1159/000066399. Lunch, Special Milk, and School Breakfast Programs, National 86 R.E. Kleinman, S. Hall, H. Green, D. Korzec-Ramirez, K. Lunch, Special Milk, and School Breakfast Programs, National 86 R.E. Kleinman, S. Hall, H. Green, D. Korzec-Ramirez, K. Average Payments/Maximum Reimbursement Rates,” Federal Patton, M.E. Pagano, J.M. Murphy, “Diet, Breakfast, and Average Payments/Maximum Reimbursement Rates,” Federal Patton, M.E. Pagano, J.M. Murphy, “Diet, Breakfast, and Register, Vol. 74, No. 58 (March 27, 2009): 13410, http://www. Academic Performance in Children,” 29. Register, Vol. 74, No. 58 (March 27, 2009): 13410, http://www. Academic Performance in Children,” 29. fns.usda.gov/cnd/governance/notices/iegs/IEGs09-10.pdf. 87 R.E. Kleinman, S. Hall, H. Green, D. Korzec-Ramirez, K. fns.usda.gov/cnd/governance/notices/iegs/IEGs09-10.pdf. 87 R.E. Kleinman, S. Hall, H. Green, D. Korzec-Ramirez, K. 73 Wayne Grasela, phone interview by Michelle R. Wong, May 3, Patton, M.E. Pagano, J.M. Murphy, “Diet, Breakfast, and 73 Wayne Grasela, phone interview by Michelle R. Wong, May 3, Patton, M.E. Pagano, J.M. Murphy, “Diet, Breakfast, and 2010. Academic Performance in Children,” 29. 2010. Academic Performance in Children,” 29. 74 “Philadelphia’s Universal Feeding Pilot,” Greater Philadelphia 88 Harry J. Holzer, Diane Whitmore Schanzenbach, Greg J. 74 “Philadelphia’s Universal Feeding Pilot,” Greater Philadelphia 88 Harry J. Holzer, Diane Whitmore Schanzenbach, Greg J. Coalition Against Hunger (GPCAH), accessed April 25, 2010. Duncan, and Jens Ludwig, “The Economic Costs of Poverty in Coalition Against Hunger (GPCAH), accessed April 25, 2010. Duncan, and Jens Ludwig, “The Economic Costs of Poverty in http://www.hungercoalition.org/summary-universal-feeding- the United States: Subsequent Effects of Children Growing Up http://www.hungercoalition.org/summary-universal-feeding- the United States: Subsequent Effects of Children Growing Up and-CNR-goals. Poor,” Institute for Research on Poverty, Discussion Paper No. and-CNR-goals. Poor,” Institute for Research on Poverty, Discussion Paper No. 75 Ira Goldstein, in-person interview by Michelle R. Wong, April 1327-07, April 2007: 20, accessed on January 31, 2010. http:// 75 Ira Goldstein, in-person interview by Michelle R. Wong, April 1327-07, April 2007: 20, accessed on January 31, 2010. http:// 30, 2010. www.ssc.wisc.edu/irpweb/publications/dps/pdfs/dp132707.pdf. 30, 2010. www.ssc.wisc.edu/irpweb/publications/dps/pdfs/dp132707.pdf. 76 Rachel Meeks, in-person interview by Michelle R. Wong, April 89 Holzer et al, “The Economic Costs of Poverty in the United 76 Rachel Meeks, in-person interview by Michelle R. Wong, April 89 Holzer et al, “The Economic Costs of Poverty in the United 30, 2010. States: Subsequent Effects of Children Growing Up Poor,” 20. 30, 2010. States: Subsequent Effects of Children Growing Up Poor,” 20. 77 Rachel Meeks, in-person interview by Michelle R. Wong, April 90 Diana F. Jyoti, Edward A. Frongillo, Sonya J. Jones, “Food Inse- 77 Rachel Meeks, in-person interview by Michelle R. Wong, April 90 Diana F. Jyoti, Edward A. Frongillo, Sonya J. Jones, “Food Inse- 30, 2010. curity Affects School Children’s Academic Performance, Weight 30, 2010. curity Affects School Children’s Academic Performance, Weight 78 Ira Goldstein and Rachel Meeks, separate in-person interviews Gain, and Social Skills,” The Journal of Nutrition Vol. 135 no. 78 Ira Goldstein and Rachel Meeks, separate in-person interviews Gain, and Social Skills,” The Journal of Nutrition Vol. 135 no. by Michelle R. Wong, April 30, 2010. 12 (December 1, 2005): 2837, Accessed on May 1, 2010. http:// by Michelle R. Wong, April 30, 2010. 12 (December 1, 2005): 2837, Accessed on May 1, 2010. http:// 79 The Reinvestment Fund, “Estimating the Percentage of Students jn.nutrition.org/cgi/reprint/135/12/2831. 79 The Reinvestment Fund, “Estimating the Percentage of Students jn.nutrition.org/cgi/reprint/135/12/2831. Income-Eligible for Free and Reduced Price Lunch,” 5. Income-Eligible for Free and Reduced Price Lunch,” 5. 80 Poppendieck, Free for All: Fixing School Food in America, 213. 80 Poppendieck, Free for All: Fixing School Food in America, 213.

Increasing Immigrant Student Access WONG 19 Increasing Immigrant Student Access WONG 19 to National School Lunch Benefits to National School Lunch Benefits 20 Vol. XVIII, 2010–2011 The Wagner Review 20 Vol. XVIII, 2010–2011 The Wagner Review The Effect of the Generosity The Effect of the Generosity of Welfare Benefits of Welfare Benefits on Maternal and Infant on Maternal and Infant Health Among Unmarried, Health Among Unmarried, Low-Educated Women Low-Educated Women

Elizabeth Wolff, M.D. Elizabeth Wolff, M.D. Kristin Van Busum Kristin Van Busum Rebecca DiBennardo Rebecca DiBennardo Blanca Esquivel Blanca Esquivel Alissa Vladimir Alissa Vladimir

The majority of adult The majority of adult ABSTRACT welfare recipients in ABSTRACT welfare recipients in the United States are single mothers, and aspects of the United States are single mothers, and aspects of welfare policies that affect the health of these women welfare policies that affect the health of these women often affect their children’s health. Yet there is little often affect their children’s health. Yet there is little empirical analysis of how and to what magnitude empirical analysis of how and to what magnitude welfare benefits influence pregnancy outcomes. This welfare benefits influence pregnancy outcomes. This study aims to fill the knowledge gap about the effects study aims to fill the knowledge gap about the effects of welfare reform on the well-being of single mothers of welfare reform on the well-being of single mothers and their children. By creating a variable for generosity and their children. By creating a variable for generosity of welfare, we examine the bundle of welfare benefits of welfare, we examine the bundle of welfare benefits across states and how varying benefits bundles affect across states and how varying benefits bundles affect prenatal-care utilization and birth weight among low- prenatal-care utilization and birth weight among low- income, unmarried women from 1996 to 2002. We find income, unmarried women from 1996 to 2002. We find that unmarried women, compared to married women, that unmarried women, compared to married women, have higher odds of having a low birth weight infant; have higher odds of having a low birth weight infant; and infants of unmarried women weigh slightly less and infants of unmarried women weigh slightly less than those born to married women. Similarly, unmar- than those born to married women. Similarly, unmarried women are much less likely to initiate early pre- ried women are much less likely to initiate early prenatal care and have fewer prenatal visits on average. natal care and have fewer prenatal visits on average. The overarching relationship between welfare gener- The overarching relationship between welfare generosity and health is complex, and we find inconsistent osity and health is complex, and we find inconsistent impacts on maternal and infant health. impacts on maternal and infant health.

The Effect of the Generosity of Welfare Wolff, et al. 21 The Effect of the Generosity of Welfare Wolff, et al. 21 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women Introduction An integral aspect of TANF is the federal distribu- Introduction An integral aspect of TANF is the federal distribution of block grants to states. States use TANF dol- tion of block grants to states. States use TANF dol- Welfare reform in 1996 ushered in an era of more lars to meet four specific federal government-stated Welfare reform in 1996 ushered in an era of more lars to meet four specific federal government-stated stringent eligibility requirements that sought purposes: (1) provide assistance to needy families to stringent eligibility requirements that sought purposes: (1) provide assistance to needy families to to decrease welfare rolls. Because many welfare care for children within their own homes, (2) end to decrease welfare rolls. Because many welfare care for children within their own homes, (2) end policies were related to childbearing, the poli- dependence on government assistance by promot- policies were related to childbearing, the poli- dependence on government assistance by promot- cies affected single mothers, who are the majority ing a return to work, job preparation, and marriage, cies affected single mothers, who are the majority ing a return to work, job preparation, and marriage, of adult welfare recipients in the United States. (3) prevent and reduce out-of-wedlock pregnancies, of adult welfare recipients in the United States. (3) prevent and reduce out-of-wedlock pregnancies, However, little research examines the effects of and (4) encourage the formation and maintenance However, little research examines the effects of and (4) encourage the formation and maintenance these policies, which vary by state, on the health of two-parent families.2 States use TANF grants these policies, which vary by state, on the health of two-parent families.2 States use TANF grants of single mothers and their children. To fill this for a number of different programs and services, of single mothers and their children. To fill this for a number of different programs and services, knowledge gap, we use a cross-sectional design to including education and job training, child care, knowledge gap, we use a cross-sectional design to including education and job training, child care, examine the effects of four individual welfare poli- income assistance (wage supplements), transporta- examine the effects of four individual welfare poli- income assistance (wage supplements), transporta- cies and bundles of these policies on low-income, tion, aid to at-risk children, and other services for cies and bundles of these policies on low-income, tion, aid to at-risk children, and other services for unmarried women. The results of our analysis indi- low-income families. Because states have some lati- unmarried women. The results of our analysis indi- low-income families. Because states have some lati- cate that generous welfare policies have several tude in interpreting the objective of TANF grants, cate that generous welfare policies have several tude in interpreting the objective of TANF grants, significant associations with prenatal-care utiliza- welfare policies differ significantly across states. significant associations with prenatal-care utiliza- welfare policies differ significantly across states. tion and birth weight for these women and their These policies had the intended effect of decreasing tion and birth weight for these women and their These policies had the intended effect of decreasing infants. Unmarried women have higher odds of welfare caseload, but critics have pointed out that infants. Unmarried women have higher odds of welfare caseload, but critics have pointed out that having a low birth weight infant compared with policy variation across states made many low-in- having a low birth weight infant compared with policy variation across states made many low-in- married women, and infants of unmarried women come women more economically vulnerable.3 The married women, and infants of unmarried women come women more economically vulnerable.3 The weigh slightly less on average than those born to TANF caseload has been trending downward since weigh slightly less on average than those born to TANF caseload has been trending downward since married women. Similarly, unmarried women are the early 2000s and increased only modestly dur- married women. Similarly, unmarried women are the early 2000s and increased only modestly dur- much less likely than married women to initiate ing the recent economic downturn from December much less likely than married women to initiate ing the recent economic downturn from December early prenatal care and have fewer prenatal care vis- 2007 to March 2010.4 early prenatal care and have fewer prenatal care vis- 2007 to March 2010.4 its on average. However, the overarching relation- its on average. However, the overarching relationship between welfare and health is complex. Effects The Deficit Reduction Act of 2005 reauthorized ship between welfare and health is complex. Effects The Deficit Reduction Act of 2005 reauthorized of the individual policies and overall welfare gener- TANF until the end of federal fiscal year 2010.5 In of the individual policies and overall welfare gener- TANF until the end of federal fiscal year 2010.5 In osity level are inconsistent and differ between mar- November 2010, the House and the Senate extended osity level are inconsistent and differ between mar- November 2010, the House and the Senate extended ried and unmarried women. TANF block grants through the end of 2011, at which ried and unmarried women. TANF block grants through the end of 2011, at which time they will be up for renewal. However, the block time they will be up for renewal. However, the block Background grant amount has not changed since 1996 and rep- Background grant amount has not changed since 1996 and rep- and Policy Context resents a decrease of 28 percent after accounting for and Policy Context resents a decrease of 28 percent after accounting for inflation.6 The supplemental grants, which have been inflation.6 The supplemental grants, which have been In 1996, President Bill Clinton signed the Personal enacted every year since 1996 for states with a low In 1996, President Bill Clinton signed the Personal enacted every year since 1996 for states with a low Responsibility and Work Opportunity Recon- enrollment, have been renewed, but will decrease Responsibility and Work Opportunity Recon- enrollment, have been renewed, but will decrease ciliation Act (PRWORA) into law and instituted through June 2011 and will not be available at the ciliation Act (PRWORA) into law and instituted through June 2011 and will not be available at the Temporary Assistance to Needy Families (TANF), end of 2011 unless Congress votes to extend them. In Temporary Assistance to Needy Families (TANF), end of 2011 unless Congress votes to extend them. In in an effort to address criticism regarding wel- addition, states have new reporting requirements.7 in an effort to address criticism regarding wel- addition, states have new reporting requirements.7 fare’s failure to move people out of poverty and fare’s failure to move people out of poverty and into steady employment. PRWORA replaced Aid Literature Review into steady employment. PRWORA replaced Aid Literature Review to Families with Dependent Children (AFDC), a to Families with Dependent Children (AFDC), a grant program established by the Social Security Although a large body of literature examines welfare, grant program established by the Social Security Although a large body of literature examines welfare, Act of 1935, and emphasized work requirements, health, and policy, most research of welfare’s effect on Act of 1935, and emphasized work requirements, health, and policy, most research of welfare’s effect on job-training programs, and benefit limitations.1 women’s health tends to address psychological well- job-training programs, and benefit limitations.1 women’s health tends to address psychological well- TANF funds, distributed to states in block grants, being and access to health insurance rather than preg- TANF funds, distributed to states in block grants, being and access to health insurance rather than preg- included a wide range of provisions designed to nancy outcomes.8 Several studies examine the effects included a wide range of provisions designed to nancy outcomes.8 Several studies examine the effects support state efforts to help welfare beneficiaries of the 1996 PRWORA and the subsequent reduction support state efforts to help welfare beneficiaries of the 1996 PRWORA and the subsequent reduction return to work and limit their amount of time on of welfare caseload and benefits on vulnerable pop- return to work and limit their amount of time on of welfare caseload and benefits on vulnerable pop- government assistance. ulations. Using the National Longitudinal Survey government assistance. ulations. Using the National Longitudinal Survey

22 Vol. XVIII, 2010–2011 The Wagner Review 22 Vol. XVIII, 2010–2011 The Wagner Review of Youth, Olson and Pavatti report that women on Perhaps most relevant to our analysis, Kaestner of Youth, Olson and Pavatti report that women on Perhaps most relevant to our analysis, Kaestner welfare are almost five times as likely as women not and Lee’s 2005 study analyzes the effect of wel- welfare are almost five times as likely as women not and Lee’s 2005 study analyzes the effect of wel- on welfare to report that medical problems prevented fare reform on birth weight and prenatal care on welfare to report that medical problems prevented fare reform on birth weight and prenatal care them from seeking employment.9 In a multidisci- utilization.18 The authors mention several wel- them from seeking employment.9 In a multidisci- utilization.18 The authors mention several wel- plinary, longitudinal study in four urban areas, Polit fare reform-induced changes that may influence plinary, longitudinal study in four urban areas, Polit fare reform-induced changes that may influence et al. find that women welfare recipients scored lower these two indicators. Family disposable income, a et al. find that women welfare recipients scored lower these two indicators. Family disposable income, a on a common physical health status scale than nonre- decrease in Medicaid eligibility, changes in time on a common physical health status scale than nonre- decrease in Medicaid eligibility, changes in time cipients, and that one-quarter of the welfare recipient and money available for health investment, lev- cipients, and that one-quarter of the welfare recipient and money available for health investment, lev- group reported being in fair or poor health, com- els of stress, and nutrition all potentially affect group reported being in fair or poor health, com- els of stress, and nutrition all potentially affect pared with only eight percent of age-matched women birth weight and prenatal care utilization. Kaest- pared with only eight percent of age-matched women birth weight and prenatal care utilization. Kaest- nationally.10 ner and Lee focus on how a decrease in welfare nationally.10 ner and Lee focus on how a decrease in welfare caseload influences both prenatal care utilization caseload influences both prenatal care utilization Another recent study investigating poor health status and birth weight. Another recent study investigating poor health status and birth weight. among single, welfare-receiving mothers shows that among single, welfare-receiving mothers shows that they bear a heavier burden of illness than a compari- they bear a heavier burden of illness than a comparison group from a nationally representative sample of Theory and Causal Model son group from a nationally representative sample of Theory and Causal Model women of the same race and age.11 The study finds women of the same race and age.11 The study finds higher rates of elevated blood pressure, elevated blood Using Kaestner and Lee’s paper as a model for our higher rates of elevated blood pressure, elevated blood Using Kaestner and Lee’s paper as a model for our sugar, obesity, and smoking, and lower levels of phys- research, we sought to answer the following question: sugar, obesity, and smoking, and lower levels of phys- research, we sought to answer the following question: ical functioning and smoking cessation among single Did the generosity of the bundle of welfare benefits ical functioning and smoking cessation among single Did the generosity of the bundle of welfare benefits mothers receiving cash benefits. More important, the across states affect prenatal care utilization and birth mothers receiving cash benefits. More important, the across states affect prenatal care utilization and birth post-TANF welfare group in the study experienced weight among low-income, unmarried women from post-TANF welfare group in the study experienced weight among low-income, unmarried women from worse health status than a random sample of pre- 1996 to 2002? worse health status than a random sample of pre- 1996 to 2002? TANF welfare recipients. TANF welfare recipients. We examine the cumulative effects of both gen- We examine the cumulative effects of both gen- Complicating the situation, other research links erous and not generous policies on low-income, Complicating the situation, other research links erous and not generous policies on low-income, welfare reform to lower insurance coverage for this unmarried women. We define nongenerous poli- welfare reform to lower insurance coverage for this unmarried women. We define nongenerous poli- population. A 2008 study finds a “negative effect of cies to include welfare time limits, stringent population. A 2008 study finds a “negative effect of cies to include welfare time limits, stringent welfare enrollment on Medicaid coverage … and family caps, and harsher eligibility and activities welfare enrollment on Medicaid coverage … and family caps, and harsher eligibility and activities supports prior evidence that welfare reform also requirements. We hypothesize that these com- supports prior evidence that welfare reform also requirements. We hypothesize that these com- reduced access to Medicaid.”12 While this study ponents of welfare policy can adversely affect reduced access to Medicaid.”12 While this study ponents of welfare policy can adversely affect suggests increasing and expanding Medicaid may the economic situation and thus the health of a suggests increasing and expanding Medicaid may the economic situation and thus the health of a improve pregnancy outcomes, the current trend woman; in contrast, we expect to find that more improve pregnancy outcomes, the current trend woman; in contrast, we expect to find that more of decreasing access to public coverage for low-in- generous policies lead to increased utilization of of decreasing access to public coverage for low-in- generous policies lead to increased utilization of come women continues.13 Although several studies health care and improved birth outcomes. We come women continues.13 Although several studies health care and improved birth outcomes. We confirm that more prenatal care utilization leads to choose these welfare policies because: (1) varia- confirm that more prenatal care utilization leads to choose these welfare policies because: (1) varia- healthier babies,14 the drop in Medicaid coverage has tion exists between states and over time, and we healthier babies,14 the drop in Medicaid coverage has tion exists between states and over time, and we been associated with a small decrease in first trimes- want to study the differential treatment effects on been associated with a small decrease in first trimes- want to study the differential treatment effects on ter prenatal care initiation.15 pregnant women, and (2) the policies determine ter prenatal care initiation.15 pregnant women, and (2) the policies determine the economic conditions that pregnant women the economic conditions that pregnant women Currie and Grogger’s study finds an increase in wel- face and affect, directly or indirectly, the women’s Currie and Grogger’s study finds an increase in wel- face and affect, directly or indirectly, the women’s fare caseload to be associated with an increase in health during pregnancy. fare caseload to be associated with an increase in health during pregnancy. the adequacy of prenatal care, initiation of prena- the adequacy of prenatal care, initiation of prenatal care in the first trimester, and a decrease in fetal We hypothesize that, holding other prenatal risk tal care in the first trimester, and a decrease in fetal We hypothesize that, holding other prenatal risk death.16 However, these changes in caseload do not factors constant, women who were exposed to more death.16 However, these changes in caseload do not factors constant, women who were exposed to more affect birth weight. Similarly, Joyce et al., in pre- and generous bundles of welfare policies during this time affect birth weight. Similarly, Joyce et al., in pre- and generous bundles of welfare policies during this time post-tests with a comparison group, find that welfare would use prenatal care more and would have chil- post-tests with a comparison group, find that welfare would use prenatal care more and would have chil- reform does not change the rate of low birth weight dren with higher average birth weight than women reform does not change the rate of low birth weight dren with higher average birth weight than women of infants born to Latina women in New York City, in identical situations who were exposed to less gen- of infants born to Latina women in New York City, in identical situations who were exposed to less gen- California, and Texas.17 erous bundles. California, and Texas.17 erous bundles.

The Effect of the Generosity of Welfare Wolff, et al. 23 The Effect of the Generosity of Welfare Wolff, et al. 23 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women Methodology of infant morbidity and mortality. We use and ana- Methodology of infant morbidity and mortality. We use and analyze the variables in two ways. First, we use them as lyze the variables in two ways. First, we use them as Sample continuous variables, measuring the total number of Sample continuous variables, measuring the total number of The study sample consists of full-term, singleton prenatal visits in the first trimester and measuring The study sample consists of full-term, singleton prenatal visits in the first trimester and measuring births from low-educated (defined as less than 12 birth weight in grams. Second, we use them as binary births from low-educated (defined as less than 12 birth weight in grams. Second, we use them as binary years of education) women ages 20 to 34 from 50 variables: (1) one or more prenatal visits within the years of education) women ages 20 to 34 from 50 variables: (1) one or more prenatal visits within the states and the District of Columbia, during the years first 12 weeks of pregnancy is coded as one, and a lack states and the District of Columbia, during the years first 12 weeks of pregnancy is coded as one, and a lack 1996 to 2002. By limiting the sample to non-high- of prenatal visits within the first 12 weeks is coded as 1996 to 2002. By limiting the sample to non-high- of prenatal visits within the first 12 weeks is coded as school-educated women, we attempt to show com- zero, and (2) presence of low birth weight at term (an school-educated women, we attempt to show com- zero, and (2) presence of low birth weight at term (an parable sociodemographic circumstances. We choose infant born weighing less than 2,500 grams) is coded parable sociodemographic circumstances. We choose infant born weighing less than 2,500 grams) is coded women older than 19 to eliminate young women who as one, and high birth weight (greater than or equal women older than 19 to eliminate young women who as one, and high birth weight (greater than or equal may still be on track to complete high school, and we to 2,500 grams) at term is coded as zero. may still be on track to complete high school, and we to 2,500 grams) at term is coded as zero. omit women 35 and older because this age group has omit women 35 and older because this age group has increased rates of pregnancy and birth complications Covariates. For low birth weight, we control for pre- increased rates of pregnancy and birth complications Covariates. For low birth weight, we control for pre- independent of socioeconomic status. By using deliv- term birth. We include maternal risk factor variables independent of socioeconomic status. By using deliv- term birth. We include maternal risk factor variables eries of singleton births, we eliminate any reported in an attempt to eliminate confounding factors con- eries of singleton births, we eliminate any reported in an attempt to eliminate confounding factors con- cases of low birth weight that were direct results of tributing to low birth weight that are independent cases of low birth weight that were direct results of tributing to low birth weight that are independent multiple births. Low birth weight includes all live of the size of government cash grants. These factors multiple births. Low birth weight includes all live of the size of government cash grants. These factors births weighing less than 2,500 grams as classified include tobacco and alcohol use, race, and other births weighing less than 2,500 grams as classified include tobacco and alcohol use, race, and other by the Centers for Disease Control and Prevention.19 medical risk factors such as diabetes, incompetent by the Centers for Disease Control and Prevention.19 medical risk factors such as diabetes, incompetent Also, because preterm birth (gestations less than 37 cervix, chronic hypertension, and pregnancy-asso- Also, because preterm birth (gestations less than 37 cervix, chronic hypertension, and pregnancy-asso- weeks) is the most common cause of low birth weight, ciated hypertension. By including such covariates in weeks) is the most common cause of low birth weight, ciated hypertension. By including such covariates in we deemed this a potential confounder and omitted we deemed this a potential confounder and omitted those births from our sample. those births from our sample.

Because our data do not contain information on wel- Did the generosity Because our data do not contain information on wel- Did the generosity fare participation, we use marital status as a proxy, as ‘bundle’ of welfare fare participation, we use marital status as a proxy, as ‘bundle’ of welfare married and unmarried women have different wel- benefits across states married and unmarried women have different wel- benefits across states fare-participation rates, suggesting that welfare poli- affect prenatal care fare-participation rates, suggesting that welfare poli- affect prenatal care cies may affect women differently based on marital utilization and birth cies may affect women differently based on marital utilization and birth status. We use married women as our treatment group “ weight among low- status. We use married women as our treatment group “ weight among low- and unmarried women as our comparison group.20 income, unmarried and unmarried women as our comparison group.20 income, unmarried Unmarried women have high rates of welfare partici- women from 1996 to 2002? Unmarried women have high rates of welfare partici- women from 1996 to 2002? pation and are therefore more likely to be affected by pation and are therefore more likely to be affected by welfare policies. A 2006 congressional report shows welfare policies. A 2006 congressional report shows that only 11 percent of adult welfare recipients were that only 11 percent of adult welfare recipients were married and living together.21 Similarly, the Admin- our analysis, we eliminate them as explanations for married and living together.21 Similarly, the Admin- our analysis, we eliminate them as explanations for istration for Children and Families separates its case- the differences between our treatment and compari- istration for Children and Families separates its case- the differences between our treatment and compari- load not according to marital status but according to son group. Finally, we include state and year dummy load not according to marital status but according to son group. Finally, we include state and year dummy two-parent families and one-parent families, with the variables to control for differences between states and two-parent families and one-parent families, with the variables to control for differences between states and former comprising less than 10 percent of total fami- over time to eliminate possible confounding factors former comprising less than 10 percent of total fami- over time to eliminate possible confounding factors lies from 1997 to 2004.22 In terms of family composi- that are time invariant (i.e., population, per capita lies from 1997 to 2004.22 In terms of family composi- that are time invariant (i.e., population, per capita tion, women head 90 percent of families who receive income, average size of cash grants per capita). tion, women head 90 percent of families who receive income, average size of cash grants per capita). welfare benefits.23 welfare benefits.23 Primary independent variable. State welfare policies, Primary independent variable. State welfare policies, Variables which determine the size of individual cash grants, Variables which determine the size of individual cash grants, Dependent Variables. We use two dependent vari- are our main independent variable of interest. For a Dependent Variables. We use two dependent vari- are our main independent variable of interest. For a ables for maternal and infant health outcomes: (1) discussion of the four specific policies that we use to ables for maternal and infant health outcomes: (1) discussion of the four specific policies that we use to initiation of prenatal care in the first trimester and define this variable, see the next section, “Generosity initiation of prenatal care in the first trimester and define this variable, see the next section, “Generosity (2) incidence of low birth weight, a leading cause of Welfare.” (2) incidence of low birth weight, a leading cause of Welfare.”

24 Vol. XVIII, 2010–2011 The Wagner Review 24 Vol. XVIII, 2010–2011 The Wagner Review We create a variable of state welfare policy generos- places a lifetime cap of 60 cumulative months of We create a variable of state welfare policy generos- places a lifetime cap of 60 cumulative months of ity bundle. First, we create a continuous variable welfare benefits. States have reacted in different ways ity bundle. First, we create a continuous variable welfare benefits. States have reacted in different ways that counts the number of generous policies (i.e., the to this policy, with some imposing shorter lifetime that counts the number of generous policies (i.e., the to this policy, with some imposing shorter lifetime absence of restrictive policies) in each state, where limits of 21 to 48 months and others exercising the absence of restrictive policies) in each state, where limits of 21 to 48 months and others exercising the zero represents the absence of generous policies and option to exempt up to 20 percent of their caseload zero represents the absence of generous policies and option to exempt up to 20 percent of their caseload four represents the presence of all generous policies. from this restriction or distributing noncash assis- four represents the presence of all generous policies. from this restriction or distributing noncash assis- Next, we create a set of dummy variables as follows: tance in the form of vouchers from state funds to Next, we create a set of dummy variables as follows: tance in the form of vouchers from state funds to no generosity, low generosity, medium generosity, families that have reached the time limit.25 Leonard no generosity, low generosity, medium generosity, families that have reached the time limit.25 Leonard medium-high generosity, and high generosity. For and Mas found that infant mortality increases when medium-high generosity, and high generosity. For and Mas found that infant mortality increases when example, a state with one generous welfare policy a state enacts time limits and that women affected example, a state with one generous welfare policy a state enacts time limits and that women affected is considered “low generosity” and a state with four by time limits are less likely to seek prenatal care is considered “low generosity” and a state with four by time limits are less likely to seek prenatal care generous welfare policies is considered “high generos- in the first trimester.26 We code the absence of such generous welfare policies is considered “high generos- in the first trimester.26 We code the absence of such ity.” “No generosity” is omitted from our regression limits as generous. ity.” “No generosity” is omitted from our regression limits as generous. model and serves as the point of comparison. The model and serves as the point of comparison. The dummy variables help us estimate the impact of wel- Activities exemption. A key policy of PRWORA is dummy variables help us estimate the impact of wel- Activities exemption. A key policy of PRWORA is fare policies as a package. that welfare recipients are required to work, attend fare policies as a package. that welfare recipients are required to work, attend job training, or enroll in educational programs to job training, or enroll in educational programs to Generosity of Welfare remain eligible and avoid a sanction. States vary in Generosity of Welfare remain eligible and avoid a sanction. States vary in Based on policy review and hypotheses about the their activities exemption for pregnant women both Based on policy review and hypotheses about the their activities exemption for pregnant women both intersections of economic policy and health, our in terms of the existence of such an exemption as well intersections of economic policy and health, our in terms of the existence of such an exemption as well model for welfare generosity encompasses four key as the gestational month when the exemption goes model for welfare generosity encompasses four key as the gestational month when the exemption goes welfare policies: presence of a family cap, eligibility into effect.27 We include activities exemption in our welfare policies: presence of a family cap, eligibility into effect.27 We include activities exemption in our of pregnant women with no other children, time lim- model because long hours of strenuous work activity of pregnant women with no other children, time lim- model because long hours of strenuous work activity its, and exemption of pregnant women from activities its, and exemption of pregnant women from activities requirement during any month of her pregnancy. We requirement during any month of her pregnancy. We describe the policies below. describe the policies below. Unmarried women are Unmarried women are Family cap. Historically, states have increased ben- twice as likely to have no Family cap. Historically, states have increased ben- twice as likely to have no efits to welfare recipients after the birth of each prenatal care during efits to welfare recipients after the birth of each prenatal care during additional child. To address the perceived moral pregnancy when additional child. To address the perceived moral pregnancy when hazard that women have additional children in compared to their hazard that women have additional children in compared to their order to increase their welfare payments, some states “ married counterparts. order to increase their welfare payments, some states “ married counterparts. initiated policies that reduce or eliminate the ben- initiated policies that reduce or eliminate the benefits increase. These family cap policies, first piloted efits increase. These family cap policies, first piloted in New Jersey in 1992, aimed to decrease fertility in New Jersey in 1992, aimed to decrease fertility rates among poor women, but its impact has been rates among poor women, but its impact has been mixed.24 Existing research does not explore the asso- has the potential to adversely affect birth outcomes. mixed.24 Existing research does not explore the asso- has the potential to adversely affect birth outcomes. ciation of family cap policies to prenatal care utiliza- Dominques et al. review the literature regarding ciation of family cap policies to prenatal care utiliza- Dominques et al. review the literature regarding tion and birth. We felt it was important to examine work activity as a risk for adverse birth outcomes.28 tion and birth. We felt it was important to examine work activity as a risk for adverse birth outcomes.28 this variable, as it determines the size of the cash Although they choose preterm birth as their target this variable, as it determines the size of the cash Although they choose preterm birth as their target grant received by pregnant women on welfare. In variable, they find mixed evidence with regard to grant received by pregnant women on welfare. In variable, they find mixed evidence with regard to our analysis, we code the absence of such a family work environments requiring women to stand for our analysis, we code the absence of such a family work environments requiring women to stand for cap policy as generous. long periods. In another study’s subgroup analysis cap policy as generous. long periods. In another study’s subgroup analysis of women receiving disability benefits, offspring of of women receiving disability benefits, offspring of Time limits. Time limit policies, introduced with students and women who worked more than 40 Time limits. Time limit policies, introduced with students and women who worked more than 40 welfare reform, terminate or reduce a recipient’s ben- hours a week had significantly lower birth weight welfare reform, terminate or reduce a recipient’s ben- hours a week had significantly lower birth weight efits due to the amount of time that they have been than those of women who did not work.29 We efits due to the amount of time that they have been than those of women who did not work.29 We receiving assistance. This policy aims to decrease code an activities exemption as being generous if a receiving assistance. This policy aims to decrease code an activities exemption as being generous if a the potential moral hazard of disincentive to work woman is exempted from this requirement in any the potential moral hazard of disincentive to work woman is exempted from this requirement in any among welfare recipients. The federal government month of her pregnancy. among welfare recipients. The federal government month of her pregnancy.

The Effect of the Generosity of Welfare Wolff, et al. 25 The Effect of the Generosity of Welfare Wolff, et al. 25 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women

! !

Eligibility of Eligibility of Pregnant Pregnant Dependent Dependent Women Women Variable Variable

Birth Weight Birth Weight

Activity Independent Activity Independent Requirements Variable Requirements Variable

Generosity of Generosity of Welfare Benefit Dependent Welfare Benefit Dependent Time Limits Variable Time Limits Variable

Prenatal Care Prenatal Care Covariates Utilization Covariates Utilization

Family Cap Demographics Family Cap Demographics Age Age Race Race Maternal Risk Factors Maternal Risk Factors Tobacco Use Tobacco Use Alcohol Consumption Alcohol Consumption Diabetes Diabetes Pregnancy Hypertension Pregnancy Hypertension Chronic Hypertension Chronic Hypertension

Figure 1 illustrates the components of our generosity of welfare variable, our dependent variables, and the covariates that we hold constant. Figure 1 illustrates the components of our generosity of welfare variable, our dependent variables, and the covariates that we hold constant.

Eligibility of Pregnant Women With No Other Chil- changes in vital-statistics collection that took Eligibility of Pregnant Women With No Other Chil- changes in vital-statistics collection that took dren. Under AFDC, states had the option of pro- place in 2003 and 2004, and because the years dren. Under AFDC, states had the option of pro- place in 2003 and 2004, and because the years viding benefits to pregnant women with no other 2005 and 2006 failed to include geographical viding benefits to pregnant women with no other 2005 and 2006 failed to include geographical children because the women would otherwise be information because of new regulations on pri- children because the women would otherwise be information because of new regulations on pri- eligible for benefits if the child were already born vacy restrictions.32 eligible for benefits if the child were already born vacy restrictions.32 and living with her. The existence of this policy and living with her. The existence of this policy varies across states.30 We include this policy in Data Sources varies across states.30 We include this policy in Data Sources our analysis with the assumption that pregnant Our data came from the Natality Detail Files and our analysis with the assumption that pregnant Our data came from the Natality Detail Files and women who receive cash benefits will have greater the Urban Institute’s Welfare Rules Database. For women who receive cash benefits will have greater the Urban Institute’s Welfare Rules Database. For access to nutrition and prenatal appointments. If a complete list of variables, data sources, and vari- access to nutrition and prenatal appointments. If a complete list of variables, data sources, and vari- this eligibility is present, we coded the policy as able types, see table 1. The Natality File is a public- this eligibility is present, we coded the policy as able types, see table 1. The Natality File is a public- generous. use data file that includes all live births occurring generous. use data file that includes all live births occurring within the U.S. The file does not include births within the U.S. The file does not include births Study Time Frame to U.S. citizens living in other countries. This Study Time Frame to U.S. citizens living in other countries. This Beginning the analysis at 1996 allows us to capture data is obtained from birth certificates in each Beginning the analysis at 1996 allows us to capture data is obtained from birth certificates in each changes in the generosity of state welfare policies state through the Vital Statistics Cooperative changes in the generosity of state welfare policies state through the Vital Statistics Cooperative that occurred as a direct result of the implementa- Program. It includes all states and the District of that occurred as a direct result of the implementa- Program. It includes all states and the District of tion of PRWORA in August 1996. This sweeping Columbia.33 We obtained the Natality Files from tion of PRWORA in August 1996. This sweeping Columbia.33 We obtained the Natality Files from welfare reform legislation increased the complex- the University of Michigan Inter-University Polit- welfare reform legislation increased the complex- the University of Michigan Inter-University Polit- ity of welfare programs’ policies and rules, pro- ical and Social Research data set collection.34 We ity of welfare programs’ policies and rules, pro- ical and Social Research data set collection.34 We viding states with more control over how they extract our population’s demographic and health viding states with more control over how they extract our population’s demographic and health spent federal welfare money.31 We choose to end information from the Natality File. Among other spent federal welfare money.31 We choose to end information from the Natality File. Among other our analysis in 2002 to eliminate bias from the variables, these files contain information on pre- our analysis in 2002 to eliminate bias from the variables, these files contain information on pre-

26 Vol. XVIII, 2010–2011 The Wagner Review 26 Vol. XVIII, 2010–2011 The Wagner Review Table 1. Variables and data sources Table 1. Variables and data sources

Variable Type Source Variable Type Source Dependent Variables Dependent Variables Low birth weight Binary/ Natality Detail File Low birth weight Binary/ Natality Detail File nominal nominal Prenatal-care utilization Binary/ Natality Detail File Prenatal-care utilization Binary/ Natality Detail File nominal nominal

Independent Variables Independent Variables Generosity of welfare bundle Nominal/ Welfare Rules Database Generosity of welfare bundle Nominal/ Welfare Rules Database interval interval Family cap Binary Welfare Rules Database Family cap Binary Welfare Rules Database Time limits Binary Welfare Rules Database Time limits Binary Welfare Rules Database Exemption of activities requirements Binary Welfare Rules Database Exemption of activities requirements Binary Welfare Rules Database Eligibility of pregnant women Binary Welfare Rules Database Eligibility of pregnant women Binary Welfare Rules Database

Covariates—Individual Covariates—Individual Marital status Binary Natality Detail File Marital status Binary Natality Detail File Race of mother Nominal Natality Detail File Race of mother Nominal Natality Detail File Age of mother Ordinal Natality Detail File Age of mother Ordinal Natality Detail File Education of mother Binary Natality Detail File Education of mother Binary Natality Detail File Diabetes Binary Natality Detail File Diabetes Binary Natality Detail File Hypertension Binary Natality Detail File Hypertension Binary Natality Detail File Cigarette use Interval Natality Detail File Cigarette use Interval Natality Detail File Alcohol use Interval Natality Detail File Alcohol use Interval Natality Detail File Plurality Binary Natality Detail File Plurality Binary Natality Detail File State and year controls Binary Natality Detail File State and year controls Binary Natality Detail File

Table 1. Variables and data sources Table 1. Variables and data sources natal care utilization, child characteristics, mother characteristics, medical risks, pregnancy, and deliv- natal care utilization, child characteristics, mother characteristics, medical risks, pregnancy, and delivery history. ery history.

Data describing differences in welfare policies across states comes from the Urban Institute’s Welfare Rules Data- Data describing differences in welfare policies across states comes from the Urban Institute’s Welfare Rules Data- base. The Urban Institute is an independent, nonpartisan institute that gathers data, conducts research, and eval- base. The Urban Institute is an independent, nonpartisan institute that gathers data, conducts research, and evaluates programs on social and economic issues. The Institute’s Welfare Rules Database provides a longitudinal uates programs on social and economic issues. The Institute’s Welfare Rules Database provides a longitudinal account of cash-assistance programs in all 50 states and the District of Columbia by state from 1996 to 2008. account of cash-assistance programs in all 50 states and the District of Columbia by state from 1996 to 2008.

Analytic Approach Analytic Approach

We first consider the overall impact of aggregate welfare policies by using the welfare policy generosity dummy variables We first consider the overall impact of aggregate welfare policies by using the welfare policy generosity dummy variables in our regressions. We then estimate the impact of the four individual policies on prenatal care utilization and birth in our regressions. We then estimate the impact of the four individual policies on prenatal care utilization and birth weight. In all models, we include dummy variables for marital status and control for maternal characteristics and health weight. In all models, we include dummy variables for marital status and control for maternal characteristics and health behaviors. We also control for differences between states over time by including state and year dummy variables. behaviors. We also control for differences between states over time by including state and year dummy variables.

Our first analysis is a logistic regression that estimates the impact of the generosity of welfare policies on presence of low Our first analysis is a logistic regression that estimates the impact of the generosity of welfare policies on presence of low birth weight. We test the hypothesis that generous welfare policies have a negative relationship with low birth weight birth weight. We test the hypothesis that generous welfare policies have a negative relationship with low birth weight using the following logistic model (model 1): using the following logistic model (model 1):

! ! ! ! ! ! ! ! For! the!"#$%&' dependent!!"#$ variable,!! ! !the!! value! ! “1”!"#$%&'# indicates! !the!"#$%&&' presence of low! !birth!"#"$%&'() weight (less! than! ! !2,500! ! grams! ! ! !at For! the!"#$%&' dependent!!"#$ variable,!! ! !the!! value! ! “1”!"#$%&'# indicates! !the!"#$%&&' presence of low! !birth!"#"$%&'() weight (less! than! ! !2,500! ! grams! ! ! !at birth) and “0” indicates the absence! of low birth! weight (greater than! or equal to 2,500! grams). The model birth) and “0” indicates the absence! of low birth! weight (greater than! or equal to 2,500! grams). The model !"#$!!"#$!! ! ! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! ! !"#$!!"#$!! ! ! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! !

! ! ! ! ! ! ! ! The Effect of the! G!enerosity!! ! ! !"#$%&'# of Welfare! ! !"#$%&&' Wolff, et al.! ! !"#"$%&'() ! ! ! ! ! ! ! ! !!27 ! !"#$%&%'()*)&*The Effect of the! G!enerosity!! ! ! !"#$%&'# of Welfare! ! !"#$%&&' Wolff, et al.! ! !"#"$%&'() ! ! ! ! ! ! ! ! !!27*&(*()'%&%$#"! ! Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among!"#"$# Unmarried! ! !,! L!ow!"#$%&'#-Educated! ! !W!"#$%&&'omen ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! Among!"#"$# Unmarried! ! !,! L!ow!"#$%&'#-Educated! ! !W!"#$%&&'omen ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! regresses an interaction term (Interact) between two dummy variables: unmarried women (MarDummy) and regresses an interaction term (Interact) between two dummy variables: unmarried women (MarDummy) and generosity of welfare policies (Generosity). generosity of welfare policies (Generosity).

We also use an OLS regression that estimates the impact of generosity of welfare policies on birth weight as a We also use an OLS regression that estimates the impact of generosity of welfare policies on birth weight as a continuous dependent variable (model 2): continuous dependent variable (model 2):

! ! ! ! ! ! ! ! ! !"#$%&'!!"#$!! ! !!! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! !! ! !"#$%&'!!"#$!! ! !!! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! !!

!"#$!!"#$!! ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! !"#$!!"#$!! ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! Next, we estimate the impact of generosity of welfare policies on prenatal-care visits by individual mothers within a Next, we estimate the impact of generosity of welfare policies on prenatal-care visits by individual mothers within a given! !"#$%&' year. We use!!"#$ the following!! ! ! !logistic! ! ! !regression!"#$%&'# with! !prenatal!!"#$%&&' visits as a !binary!!!"#"$%&'() variable (model! !3):!! ! ! ! ! ! !! given! !"#$%&' year. We use!!"#$ the following!! ! ! !logistic! ! ! !regression!"#$%&'# with! !prenatal!!"#$%&&' visits as a !binary!!!"#"$%&'() variable (model! !3):!! ! ! ! ! ! !! ! !"#$%&%'()*)&* ! !!! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! !! ! !"#$%&%'()*)&* ! !!! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! !!

!"#$!!"#$!! ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! !"#$!!"#$!! ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! !"#"$# ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! !"#"$# ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! !

! ! ! ! ! ! ! ! For! the!"#$%&%'()*)&* dependent variable,! a! value!! ! of! “1”!"#$%&'# indicates! that! !"#$%&&'mothers initiated! prenatal! !"#"$%&'() care in the! first! ! !trimester,! ! ! !and! !“0” For! the!"#$%&%'()*)&* dependent variable,! a! value!! ! of! “1”!"#$%&'# indicates! that! !"#$%&&'mothers initiated! prenatal! !"#"$%&'() care in the! first! ! !trimester,! ! ! !and! !“0” indicates that mothers started care! after 12 weeks! or not at all. Like model! 1, we create an interaction! term (Interact) that indicates that mothers started care! after 12 weeks! or not at all. Like model! 1, we create an interaction! term (Interact) that !"#"$# ! ! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! ! !"#"$# ! ! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! ! interacts unmarried women and generosity! of welfare policies.! ! ! interacts unmarried women and generosity! of welfare policies.! ! ! ! !"#$%&'!!"#$!! ! !!! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! !! ! !"#$%&'!!"#$!! ! !!! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! !! Finally, we use prenatal visits as a continuous variable where Visits represents total number of prenatal visits during Finally, we use prenatal visits as a continuous variable where Visits represents total number of prenatal visits during !"#$!!"#$!! ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! !"#$!!"#$!! ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! pregnancy (model 4): pregnancy (model 4):

! ! ! ! ! ! ! ! ! !"#$%&%'()*)&* ! !!! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! !! ! !"#$%&%'()*)&* ! !!! ! ! !"#$%&'# ! ! !"#$%&&' ! ! !"#"$%&'() ! ! ! ! ! ! ! ! !!

!"#"$# ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! !"#"$# ! ! ! !!!"#$%&'# ! !!!"#$%&&' ! !!!"#"$%&'() ! !!! ! ! ! ! ! ! Results to smoke 10 cigarettes per day, and less likely to be Results to smoke 10 cigarettes per day, and less likely to be nonsmokers in general (27.6 percent of unmarried nonsmokers in general (27.6 percent of unmarried Descriptive Statistics women are nonsmokers, compared with 31.8 per- Descriptive Statistics women are nonsmokers, compared with 31.8 per- Table 2 describes the characteristics of married and cent of married women). Most important, unmar- Table 2 describes the characteristics of married and cent of married women). Most important, unmar- unmarried mothers, for which all differences are ried women are twice as likely to have no prenatal unmarried mothers, for which all differences are ried women are twice as likely to have no prenatal significant at the one percent error level. Out ofa care during pregnancy compared with their mar- significant at the one percent error level. Out ofa care during pregnancy compared with their mar- sample of 3,051,007 women, 51.9 percent are married counterparts (1.3 percent versus 0.7 percent). sample of 3,051,007 women, 51.9 percent are married counterparts (1.3 percent versus 0.7 percent). ried, and 48.1 percent are not. Black mothers are the Despite generally poorer pregnancy indicators, ried, and 48.1 percent are not. Black mothers are the Despite generally poorer pregnancy indicators, only women in the sample who are more likely to be nonmarried women have lower rates of diabetes. only women in the sample who are more likely to be nonmarried women have lower rates of diabetes. unmarried—10.6 percent unmarried compared to 2.1 unmarried—10.6 percent unmarried compared to 2.1 percent married. Hispanics, whites, and mothers of Some health factors, though statistically different given percent married. Hispanics, whites, and mothers of Some health factors, though statistically different given other races are more likely to be married than unmar- our large sample size, were similar between unmarried other races are more likely to be married than unmar- our large sample size, were similar between unmarried ried. Hispanic mothers make up about half of the and married women. Rates of pregnancy hypertension ried. Hispanic mothers make up about half of the and married women. Rates of pregnancy hypertension sample, and about half the sample is between the ages and chronic hypertension were at 1.1 percent and 0.2 sample, and about half the sample is between the ages and chronic hypertension were at 1.1 percent and 0.2 of 20 and 24. Of that age bracket, 29.1 percent are percent respectively. Married and unmarried women of 20 and 24. Of that age bracket, 29.1 percent are percent respectively. Married and unmarried women unmarried. Only 13 percent of women ages 25 to 29 were also about as likely to be nonsmokers. With regard unmarried. Only 13 percent of women ages 25 to 29 were also about as likely to be nonsmokers. With regard and 6 percent of women ages 30 to 34 are single. to infant health, unmarried women were more likely to and 6 percent of women ages 30 to 34 are single. to infant health, unmarried women were more likely to have low birth weight infants—1.9 percent compared have low birth weight infants—1.9 percent compared Some maternal health indicators in the sample vary with 1.3 percent of married women. Some maternal health indicators in the sample vary with 1.3 percent of married women. extensively by marriage status. For example, mar- extensively by marriage status. For example, married women are more likely to abstain from alco- Multivariate Regressions and ried women are more likely to abstain from alco- Multivariate Regressions and hol during pregnancy, and unmarried women are Multicollinearity hol during pregnancy, and unmarried women are Multicollinearity twice as likely as nonmarried women to consume To ensure that health risk predictors in our models twice as likely as nonmarried women to consume To ensure that health risk predictors in our models at least one alcoholic drink per week during preg- are not highly correlated, we conduct bivariate corre- at least one alcoholic drink per week during preg- are not highly correlated, we conduct bivariate corre- nancy (and five times as likely to consume three lation to test for multicollinearity between variables. nancy (and five times as likely to consume three lation to test for multicollinearity between variables. to four drinks per week). Unmarried women are We find low correlation between chronic hypertension to four drinks per week). Unmarried women are We find low correlation between chronic hypertension also more likely to be smokers: twice as likely to and diabetes (r = 0.004), indicating no collinearity also more likely to be smokers: twice as likely to and diabetes (r = 0.004), indicating no collinearity smoke five cigarettes per day, almost twice as likely between the variables. We run the same correlations smoke five cigarettes per day, almost twice as likely between the variables. We run the same correlations

28 Vol. XVIII, 2010–2011 The Wagner Review 28 Vol. XVIII, 2010–2011 The Wagner Review Table 2. Descriptive statistics: Characteristics of unmarried and married women Table 2. Descriptive statistics: Characteristics of unmarried and married women

Variable Total Married Unmarried Variable Total Married Unmarried N (%) 3,051,007 51.9 48.1 N (%) 3,051,007 51.9 48.1

Health Indicators Health Indicators Maternal (%) Maternal (%) Pregnancy hypertension 66,340 1.1 1.1 Pregnancy hypertension 66,340 1.1 1.1 Chronic hypertension 11,799 0.2 0.2 Chronic hypertension 11,799 0.2 0.2 Diabetes 74,665 1.4 1.0 Diabetes 74,665 1.4 1.0 Nonsmoker 1,812,877 31.8 27.6 Nonsmoker 1,812,877 31.8 27.6 Smoker (five cig. per day) 116,752 1.2 2.6 Smoker (five cig. per day) 116,752 1.2 2.6 Smoker (10 cig. per day) 200,449 2.6 4.0 Smoker (10 cig. per day) 200,449 2.6 4.0 Smoker (20 cig. per day) 144,831 2.1 2.7 Smoker (20 cig. per day) 144,831 2.1 2.7 Smoker (40 cig. per day) 21,987 0.3 0.4 Smoker (40 cig. per day) 21,987 0.3 0.4 Smoker (41 or more cig. per day) 913 0.01 0.02 Smoker (41 or more cig. per day) 913 0.01 0.02 Nondrinker 2,360,292 39.1 38.3 Nondrinker 2,360,292 39.1 38.3 Drinker (one drink per week) 8,628 0.1 0.2 Drinker (one drink per week) 8,628 0.1 0.2 Drinker (two drinks per week) 4,341 0.03 0.1 Drinker (two drinks per week) 4,341 0.03 0.1 Drinker (three to four drinks per week) 3,120 0.02 0.1 Drinker (three to four drinks per week) 3,120 0.02 0.1 Drinker (more than five drinks per week) 4,467 0.03 0.1 Drinker (more than five drinks per week) 4,467 0.03 0.1 Saw doctor during first trimester 2,093,185 37.3 31.3 Saw doctor during first trimester 2,093,185 37.3 31.3 Saw doctor during second trimester 655,168 10.3 11.2 Saw doctor during second trimester 655,168 10.3 11.2 Saw doctor during third trimester 163,224 2.4 3.0 Saw doctor during third trimester 163,224 2.4 3.0 No prenatal care 60,401 0.7 1.3 No prenatal care 60,401 0.7 1.3 Infant (%) Infant (%) Low birth weight 97,873 1.3 1.9 Low birth weight 97,873 1.3 1.9

Demographics Demographics Race/ethnicity (%) Race/ethnicity (%) Black 388,003 2.1 10.6 Black 388,003 2.1 10.6 Hispanic 1,549,233 29.5 21.3 Hispanic 1,549,233 29.5 21.3 White 971,897 17.5 14.3 White 971,897 17.5 14.3 Other 120,429 2.5 1.5 Other 120,429 2.5 1.5 Age (%) Age (%) 20-24 1,576,514 22.6 29.1 20-24 1,576,514 22.6 29.1 25-29 950,724 18.2 13.0 25-29 950,724 18.2 13.0 30-34 523,769 11.1 6.0 30-34 523,769 11.1 6.0 All differences are significant at p < 0.01. All differences are significant at p < 0.01.

Table 2. Descriptive statistics: Characteristics of unmarried and married women Table 2. Descriptive statistics: Characteristics of unmarried and married women

between chronic and pregnancy-induced hyperten- compared with those of married women. When we between chronic and pregnancy-induced hyperten- compared with those of married women. When we sion and find no correlation (r = 0.000). We conclude regress welfare generosity coded as dummy vari- sion and find no correlation (r = 0.000). We conclude regress welfare generosity coded as dummy vari- that multicollinearity is not present and keep all orig- ables to examine how each level of generosity affects that multicollinearity is not present and keep all orig- ables to examine how each level of generosity affects inal variables in our fully specified model. our outcome, we find that as the level of generosity inal variables in our fully specified model. our outcome, we find that as the level of generosity increases, birth weight also increases, but this inter- increases, birth weight also increases, but this inter- Impact of Welfare Generosity on action is significant only at the medium-high gener- Impact of Welfare Generosity on action is significant only at the medium-high gener- Low Birth Weight osity level (table 3). Examining individual generosity Low Birth Weight osity level (table 3). Examining individual generosity When we regress birth weight as a continuous variable dummies on birth weight produced several signifi- When we regress birth weight as a continuous variable dummies on birth weight produced several signifi- on welfare generosity as a continuous variable (table cant results. Unmarried women with low generosity on welfare generosity as a continuous variable (table cant results. Unmarried women with low generosity 3), we find a significant positive effect on birth weight have 9.3 percent higher odds of delivering a low birth 3), we find a significant positive effect on birth weight have 9.3 percent higher odds of delivering a low birth for unmarried women. We find unmarried women weight infant, compared with married women and for unmarried women. We find unmarried women weight infant, compared with married women and have babies that weigh 36.9 grams less on average women with other bundles of welfare generosity. have babies that weigh 36.9 grams less on average women with other bundles of welfare generosity.

The Effect of the Generosity of Welfare Wolff, et al. 29 The Effect of the Generosity of Welfare Wolff, et al. 29 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women Table 3. Estimated impacts of welfare generosity on birth weight Table 3. Estimated impacts of welfare generosity on birth weight

OLS coefficients OLS coefficients (standard errors): Logistic odds ratios: (standard errors): Logistic odds ratios: Birth weight Low birth weight Birth weight Low birth weight Variable (1) (2) (1) (2) Variable (1) (2) (1) (2) Unmarried*low generosity -0.671 1.093** Unmarried*low generosity -0.671 1.093** (2.274) (2.274) Unmarried*medium 0.444 1.066** Unmarried*medium 0.444 1.066** generosity (2.346) generosity (2.346) Unmarried*medium high 6.799** 1.084** Unmarried*medium high 6.799** 1.084** generosity (2.410) generosity (2.410) Unmarried*high generosity -1.054 1.144** Unmarried*high generosity -1.054 1.144** (3.015) (3.015) Unmarried*generosity 1.621** 1.014* Unmarried*generosity 1.621** 1.014* (0.524) (0.524)

Generosity -2.871*** 1.003 Generosity -2.871*** 1.003 (0.674) (0.674) Low generosity -9.286** 1.027 Low generosity -9.286** 1.027 (2.989) (2.989) Medium generosity -11.446** 1.037 Medium generosity -11.446** 1.037 (3.236) (3.236) Medium high generosity -15.976*** 1.039 Medium high generosity -15.976*** 1.039 (3.476) (3.476) High generosity -16.55*** 1.038 High generosity -16.55*** 1.038 (3.997) (3.997) Unmarried -35.159*** -36.887*** 1.135** 1.195* Unmarried -35.159*** -36.887*** 1.135** 1.195* (2.112) (1.113) (2.112) (1.113) Constant 3,280.118*** 3,278.242*** – – Constant 3,280.118*** 3,278.242*** – – (9.004) (8.914) (9.004) (8.914) R2 0.051 0.052 – – R2 0.051 0.052 – – N 3,050,024 3,050,024 3,050,024 3,050,024 N 3,050,024 3,050,024 3,050,024 3,050,024 All specifications include individual level covariates and dummies for state and year. All specifications include individual level covariates and dummies for state and year. * p < 0.1 ** p < 0.05 *** p < 0.01 * p < 0.1 ** p < 0.05 *** p < 0.01

Table 3. Estimated impacts of welfare generosity on birth weight Table 3. Estimated impacts of welfare generosity on birth weight

Impact of Individual Welfare pared with the infants of married women in the Impact of Individual Welfare pared with the infants of married women in the Policies on Low Birth Weight same states and women in states without these Policies on Low Birth Weight same states and women in states without these specific policies. specific policies. When we examine the impact of each individ- When we examine the impact of each individual policy on birth weight, we find unmarried ual policy on birth weight, we find unmarried women exposed to generous time limits give birth We also find that unmarried women exposed to women exposed to generous time limits give birth We also find that unmarried women exposed to to infants that weigh 3.3 grams less than infants a generous family cap policy have 3.5 percent to infants that weigh 3.3 grams less than infants a generous family cap policy have 3.5 percent born to married women or unmarried women lower odds of having an infant weighing less than born to married women or unmarried women lower odds of having an infant weighing less than exposed to time limits (table 4). However, other 2,500 grams compared with married women and exposed to time limits (table 4). However, other 2,500 grams compared with married women and findings are conflicting: infants born to unmar- women exposed to a family cap policy. Unmar- findings are conflicting: infants born to unmar- women exposed to a family cap policy. Unmar- ried women in states with generous family cap or ried women exposed to a generous pregnancy- ried women in states with generous family cap or ried women exposed to a generous pregnancy- pregnancy-eligibility policies weigh on average eligibility policy have 6.2 percent higher odds of pregnancy-eligibility policies weigh on average eligibility policy have 6.2 percent higher odds of 5.4 grams and 6.6 grams more respectively, com- having a low birth weight infant compared with 5.4 grams and 6.6 grams more respectively, com- having a low birth weight infant compared with

30 Vol. XVIII, 2010–2011 The Wagner Review 30 Vol. XVIII, 2010–2011 The Wagner Review Table 4. Estimated impacts of welfare policies on birth weight Table 4. Estimated impacts of welfare policies on birth weight

OLS coefficients OLS coefficients (standard errors): Logistic odds ratios: (standard errors): Logistic odds ratios: Birth weight Low birth weight Birth weight Low birth weight Variable (1) (2) Variable (1) (2) Unmarried -40.127*** 1.174** Unmarried -40.127*** 1.174** (1.332) (1.332) Unmarried*family cap 5.360*** 0.965** Unmarried*family cap 5.360*** 0.965** (1.177) (1.177) Unmarried*time limits -3.321** 1.014 Unmarried*time limits -3.321** 1.014 (1.562) (1.562) Unmarried*eligibility 6.602*** 1.062** Unmarried*eligibility 6.602*** 1.062** (1.280) (1.280) Unmarried*activities requirements -0.411 1.044** Unmarried*activities requirements -0.411 1.044** (1.354) (1.354) Family cap 0.554 1.005 Family cap 0.554 1.005 (1.696) (1.696) Time limits -3.515** 1.000 Time limits -3.515** 1.000 (1.558) (1.558) Eligibility -12.933** 0.995 Eligibility -12.933** 0.995 (4.946) (4.946) Activities requirements -2.968** 1.003 Activities requirements -2.968** 1.003 (1.439) (1.439) Constant 3,281.480*** – Constant 3,281.480*** – (8.959) (8.959) R2 0.052 – R2 0.052 – N 3,050,024 3,050,024 N 3,050,024 3,050,024 All specifications include individual level covariates and dummies for state and year. All specifications include individual level covariates and dummies for state and year. * p < 0.1 ** p < 0.05 *** p < 0.01 * p < 0.1 ** p < 0.05 *** p < 0.01

Table 4. Estimated impacts of welfare policies on birth weight Table 4. Estimated impacts of welfare policies on birth weight married women and women not exposed to preg- with medium generosity of welfare benefits have married women and women not exposed to preg- with medium generosity of welfare benefits have nancy eligibility (table 4). the greatest marginal increase in prenatal visits nancy eligibility (table 4). the greatest marginal increase in prenatal visits compared with married women. We estimate the compared with married women. We estimate the Impact of Welfare Generosity on odds of initiating prenatal care in the first tri- Impact of Welfare Generosity on odds of initiating prenatal care in the first tri- Prenatal Care Utilization mester using logistic regression analysis (table Prenatal Care Utilization mester using logistic regression analysis (table When using welfare policy generosity as a con- 5) and find that each additional generous policy When using welfare policy generosity as a con- 5) and find that each additional generous policy tinuous variable (table 5), we find unmarried decreases the odds of initiating prenatal care in tinuous variable (table 5), we find unmarried decreases the odds of initiating prenatal care in women overall have approximately 0.5 fewer the first trimester by 8.7 percent. Regressing the women overall have approximately 0.5 fewer the first trimester by 8.7 percent. Regressing the prenatal visits compared with married women. level of generosity as dummy variables (table 5) prenatal visits compared with married women. level of generosity as dummy variables (table 5) When the generosity variable is interacted with suggests that unmarried women exposed to low, When the generosity variable is interacted with suggests that unmarried women exposed to low, marital status, this relationship results in 0.05 medium, medium-high, and high generosity of marital status, this relationship results in 0.05 medium, medium-high, and high generosity of more visits for unmarried women overall. We welfare policies had 2.5 percent, 23.1 percent, 9.9 more visits for unmarried women overall. We welfare policies had 2.5 percent, 23.1 percent, 9.9 also measure generosity coded with dummy vari- percent, and 14.6 percent higher odds of starting also measure generosity coded with dummy vari- percent, and 14.6 percent higher odds of starting ables (table 5). When considering the impact of prenatal care in the first 12 weeks compared with ables (table 5). When considering the impact of prenatal care in the first 12 weeks compared with welfare generosity, we find unmarried women married women. welfare generosity, we find unmarried women married women.

The Effect of the Generosity of Welfare Wolff, et al. 31 The Effect of the Generosity of Welfare Wolff, et al. 31 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women Table 5. Estimated impacts of welfare generosity on prenatal care utilization Table 5. Estimated impacts of welfare generosity on prenatal care utilization

OLS coefficients Logistic odds ratios: OLS coefficients Logistic odds ratios: (standard errors): Initiation of prenatal care (standard errors): Initiation of prenatal care Number of prenatal care visits in first trimester Number of prenatal care visits in first trimester Variable (1) (2) (1) (2) Variable (1) (2) (1) (2) Unmarried*low 0.060** 1.025** Unmarried*low 0.060** 1.025** generosity (0.020) generosity (0.020) Unmarried*medium 0.300*** 1.231** Unmarried*medium 0.300*** 1.231** generosity (0.021) generosity (0.021) Unmarried*medium 0.143*** 1.099** Unmarried*medium 0.143*** 1.099** high generosity (0.022) high generosity (0.022) Unmarried*high 0.168*** 1.146** Unmarried*high 0.168*** 1.146** generosity (0.027) generosity (0.027) Unmarried*generosity 0.052*** 1.042** Unmarried*generosity 0.052*** 1.042** (0.005) (0.005) Generosity -0.198*** 0.913** Generosity -0.198*** 0.913** (0.006) (0.006) Low generosity 0.055** 0.960** Low generosity 0.055** 0.960** (0.027) (0.027) Medium generosity -0.227*** 0.815** Medium generosity -0.227*** 0.815** (0.029) (0.029) Medium high -0.309*** 0.815** Medium high -0.309*** 0.815** generosity (0.031) generosity (0.031) High generosity -0.555*** 0.725** High generosity -0.555*** 0.725** (0.036) (0.036) Unmarried -0.591*** -0.540*** 0.693** 0.708** Unmarried -0.591*** -0.540*** 0.693** 0.708** (0.019) (0.010) (0.019) (0.010) Constant 11.135*** 11.191*** – – Constant 11.135*** 11.191*** – – (0.079) (0.078) (0.079) (0.078) R2 0.048 0.048 – – R2 0.048 0.048 – – N 2,936,843 2,936,843 2,971,978 2,971,978 N 2,936,843 2,936,843 2,971,978 2,971,978 All specifications include individual level covariates and dummies for state and year. All specifications include individual level covariates and dummies for state and year. * p < 0.1 ** p < 0.05 *** p < 0.01 * p < 0.1 ** p < 0.05 *** p < 0.01

Table 5. Estimated impacts of welfare generosity on prenatal care utilization Table 5. Estimated impacts of welfare generosity on prenatal care utilization

Impact of Individual Welfare tically significant negative association between both Impact of Individual Welfare tically significant negative association between both Policies on Prenatal-Care generous time limits and activities exemptions with Policies on Prenatal-Care generous time limits and activities exemptions with Utilization prenatal-care visits. Finally, we report our findings of Utilization prenatal-care visits. Finally, we report our findings of Examining the impact of each welfare policy inde- the odds of initiating prenatal care in the first trimes- Examining the impact of each welfare policy inde- the odds of initiating prenatal care in the first trimes- pendently produces statistically significant, though ter. We find unmarried women exposed to a gener- pendently produces statistically significant, though ter. We find unmarried women exposed to a gener- inconsistent, effects on prenatal care utilization (table ous family cap policy (i.e., no family cap) have 22.1 inconsistent, effects on prenatal care utilization (table ous family cap policy (i.e., no family cap) have 22.1 6). Unmarried women exposed to a generous family percent higher odds of starting care earlier compared 6). Unmarried women exposed to a generous family percent higher odds of starting care earlier compared cap policy have 0.3 more prenatal visits than married with married women and women exposed to a family cap policy have 0.3 more prenatal visits than married with married women and women exposed to a family women and women not exposed to a generous family cap policy. On the other hand, longer time limits and women and women not exposed to a generous family cap policy. On the other hand, longer time limits and cap policy. Similarly, unmarried women who expe- the presence of activity exemptions decrease the odds cap policy. Similarly, unmarried women who expe- the presence of activity exemptions decrease the odds rience generous pregnancy-eligibility requirements of unmarried pregnant women getting early prena- rience generous pregnancy-eligibility requirements of unmarried pregnant women getting early prena- have 0.1 more visits than married women who don’t tal care compared with married women and those in have 0.1 more visits than married women who don’t tal care compared with married women and those in experience such policies. In contrast, we find a statis- other states without generous policies. experience such policies. In contrast, we find a statis- other states without generous policies.

32 Vol. XVIII, 2010–2011 The Wagner Review 32 Vol. XVIII, 2010–2011 The Wagner Review Table 6. Estimated impacts of welfare policies on prenatal care utilization Table 6. Estimated impacts of welfare policies on prenatal care utilization

OLS coefficients Logistic odds ratios: OLS coefficients Logistic odds ratios: (standard errors): Initiation of prenatal care (standard errors): Initiation of prenatal care Number of prenatal care visits in first trimester Number of prenatal care visits in first trimester Variable (1) (2) Variable (1) (2) Unmarried -0.585*** 0.688** Unmarried -0.585*** 0.688** (0.012) (0.012) Unmarried*family cap 0.330*** 1.211** Unmarried*family cap 0.330*** 1.211** (0.012) (0.012) Unmarried*time limits -0.053*** 0.926** Unmarried*time limits -0.053*** 0.926** (0.014) (0.014) Unmarried*eligibility 0.117*** 1.059** Unmarried*eligibility 0.117*** 1.059** (0.011) (0.011) Unmarried*activities requirements -0.192*** 0.958** Unmarried*activities requirements -0.192*** 0.958** (0.012) (0.012) Family cap -0.327*** 0.826** Family cap -0.327*** 0.826** (0.015) (0.015) Time limits -0.194*** 0.968** Time limits -0.194*** 0.968** (0.014) (0.014) Eligibility -0.014 0.937** Eligibility -0.014 0.937** (0.044) (0.044) Activities requirements -0.057*** 0.958** Activities requirements -0.057*** 0.958** (0.013) (0.013) Constant 11.193*** – Constant 11.193*** – (0.078) (0.078) R2 0.048 – R2 0.048 – N 2,936,843 2,971,978 N 2,936,843 2,971,978 All specifications include individual level covariates and dummies for state and year. All specifications include individual level covariates and dummies for state and year. * p < 0.1 ** p < 0.05 *** p < 0.01 * p < 0.1 ** p < 0.05 *** p < 0.01

Table 6. Estimated impacts of welfare policies on prenatal care utilization Table 6. Estimated impacts of welfare policies on prenatal care utilization

Discussion Analysis of Welfare Discussion Analysis of Welfare Policy Findings Policy Findings Unmarried women have higher odds than married We review each welfare policy individually for its effect Unmarried women have higher odds than married We review each welfare policy individually for its effect women of having a low birth weight infant, and their on prenatal care and birth weight, holding the other poli- women of having a low birth weight infant, and their on prenatal care and birth weight, holding the other poli- infants weigh slightly less than those born to married cies constant. On average, when an unmarried woman is infants weigh slightly less than those born to married cies constant. On average, when an unmarried woman is women. Similarly, unmarried women are much less exposed to a generous family cap policy, there is a small women. Similarly, unmarried women are much less exposed to a generous family cap policy, there is a small likely than married women to initiate early prenatal increase in her baby’s actual birth weight and a cor- likely than married women to initiate early prenatal increase in her baby’s actual birth weight and a cor- care and have fewer visits on average. Our results responding decrease in the odds of it having low birth care and have fewer visits on average. Our results responding decrease in the odds of it having low birth show that generous welfare policies have several sig- weight. Likewise, a generous family cap policy, more show that generous welfare policies have several sig- weight. Likewise, a generous family cap policy, more nificant associations with prenatal care utilization and than other policies, is associated with an increase in the nificant associations with prenatal care utilization and than other policies, is associated with an increase in the birth weight for unmarried women and their infants. odds that unmarried women start early prenatal care and birth weight for unmarried women and their infants. odds that unmarried women start early prenatal care and The overarching relationship, however, is complex, as increase the number of prenatal care visits. We hypothe- The overarching relationship, however, is complex, as increase the number of prenatal care visits. We hypothe- we have inconsistent findings with regard to the indi- size that this effect is actually understated for two reasons. we have inconsistent findings with regard to the indi- size that this effect is actually understated for two reasons. vidual policies and overall levels of generosity. First, to simplify our model, we coded the absence of a vidual policies and overall levels of generosity. First, to simplify our model, we coded the absence of a

The Effect of the Generosity of Welfare Wolff, et al. 33 The Effect of the Generosity of Welfare Wolff, et al. 33 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women family cap policy as being generous, and every other fam- family cap policy as being generous, and every other family cap policy—regardless of whether it goes into effect Analysis of Welfare Generosity ily cap policy—regardless of whether it goes into effect Analysis of Welfare Generosity with the second or 10th child—as not generous. Binary Findings with the second or 10th child—as not generous. Binary Findings coding may have oversimplified our analysis. Second, a In states with medium-high generosity bundles, we coding may have oversimplified our analysis. Second, a In states with medium-high generosity bundles, we family cap does not deny additional income support to find inconsistent results with regard to birth weight. family cap does not deny additional income support to find inconsistent results with regard to birth weight. poor women until they have reached the cap limit. For We find a slight increase in average birth weight of poor women until they have reached the cap limit. For We find a slight increase in average birth weight of example, if a state caps its benefits at two children, ben- infants born to unmarried women compared with example, if a state caps its benefits at two children, ben- infants born to unmarried women compared with efits restriction happens when the third child is born, so married women and unmarried women without this efits restriction happens when the third child is born, so married women and unmarried women without this a family cap should not affect the prenatal care and birth level of generous policies. However, the babies born to a family cap should not affect the prenatal care and birth level of generous policies. However, the babies born to weight of the third child. women exposed to medium-high generosity bundles weight of the third child. women exposed to medium-high generosity bundles actually have slightly higher odds of being born with actually have slightly higher odds of being born with The measured effect of the pregnancy-eligibility policy on a low birth weight. Although there is no statistically The measured effect of the pregnancy-eligibility policy on a low birth weight. Although there is no statistically birth weight, however, is mixed. Though we find a small birth weight, however, is mixed. Though we find a small increase in actual birth weight on average when unmar- increase in actual birth weight on average when unmarried women are subjected to this policy, they have slightly ried women are subjected to this policy, they have slightly higher odds than married women of delivering a baby that Our results show that higher odds than married women of delivering a baby that Our results show that weighs less than 2,500 grams. The policy’s association with generous welfare weighs less than 2,500 grams. The policy’s association with generous welfare prenatal care, however, is consistent and positive. Indeed, policies have several prenatal care, however, is consistent and positive. Indeed, policies have several the presence of this policy is estimated to have a positive significant associations the presence of this policy is estimated to have a positive significant associations influence on initiating prenatal care in the first trimester, with prenatal care influence on initiating prenatal care in the first trimester, with prenatal care and it is associated with an increase in the total number of “ utilization and birth and it is associated with an increase in the total number of “ utilization and birth prenatal care visits among unmarried women. weight for unmarried prenatal care visits among unmarried women. weight for unmarried women and their infants. women and their infants. Contrary to our expectations, when unmarried Contrary to our expectations, when unmarried women are exposed to a generous time-limit policy women are exposed to a generous time-limit policy (i.e., the absence of time limit), they give birth to (i.e., the absence of time limit), they give birth to infants that weigh slightly less than those of mar- significant effect on actual birth weight for the other infants that weigh slightly less than those of mar- significant effect on actual birth weight for the other ried women and unmarried women not exposed to levels of generosity, the odds of delivering a low birth ried women and unmarried women not exposed to levels of generosity, the odds of delivering a low birth the policy. Generous time limits also have a negative weight baby are significant for unmarried women the policy. Generous time limits also have a negative weight baby are significant for unmarried women effect on prenatal care initiation, with lower odds of exposed to all levels of generosity, compared with mar- effect on prenatal care initiation, with lower odds of exposed to all levels of generosity, compared with mar- late care-seeking and fewer visits. ried women and unmarried women not exposed to late care-seeking and fewer visits. ried women and unmarried women not exposed to that respective level of generosity. This is the oppo- that respective level of generosity. This is the oppo- We also find a negative effect with regard to the site of what we expected. Perhaps unmarried women We also find a negative effect with regard to the site of what we expected. Perhaps unmarried women activities exemption for pregnant women on pre- in states with high generosity policies have different activities exemption for pregnant women on pre- in states with high generosity policies have different natal care utilization and birth weight. Unmarried demographics or health conditions that are not cap- natal care utilization and birth weight. Unmarried demographics or health conditions that are not cap- pregnant women exposed to an activities exemp- tured in our model. Kaplan notes that women on wel- pregnant women exposed to an activities exemp- tured in our model. Kaplan notes that women on wel- tion have slightly lower odds of starting prenatal fare bear a heavier burden of illness compared with an tion have slightly lower odds of starting prenatal fare bear a heavier burden of illness compared with an care in the first trimester and fewer prenatal visits. age-and-race-matched comparison group,35 and Polit et care in the first trimester and fewer prenatal visits. age-and-race-matched comparison group,35 and Polit et The effect on birth weight was similar: unmarried al. note that female welfare participants are more likely The effect on birth weight was similar: unmarried al. note that female welfare participants are more likely women exposed to a generous activities-exemp- to report being in fair or poor health compared with women exposed to a generous activities-exemp- to report being in fair or poor health compared with tion policy have slightly higher odds of having a age-matched women nationally.36 tion policy have slightly higher odds of having a age-matched women nationally.36 low birth weight baby than married women and low birth weight baby than married women and unmarried women not exposed to this policy. We All levels of generosity above the no generosity unmarried women not exposed to this policy. We All levels of generosity above the no generosity predicted that the presence of an activities exemp- level have a significant positive impact on prena- predicted that the presence of an activities exemp- level have a significant positive impact on prena- tion for pregnant women would allow them to tal care utilization among unmarried women com- tion for pregnant women would allow them to tal care utilization among unmarried women com- work less and facilitate compliance with prenatal pared with married women and unmarried women work less and facilitate compliance with prenatal pared with married women and unmarried women care appointments, leading to higher birth weight. experiencing nongenerous welfare policies. We find care appointments, leading to higher birth weight. experiencing nongenerous welfare policies. We find We do not have a clear explanation for the nega- this trend with the odds of initiating early prena- We do not have a clear explanation for the nega- this trend with the odds of initiating early prena- tive association, and we did not come across anal- tal care and the average number of visits. Models tive association, and we did not come across anal- tal care and the average number of visits. Models ysis of this policy in our literature review. using welfare policies as a continuous variable have ysis of this policy in our literature review. using welfare policies as a continuous variable have

34 Vol. XVIII, 2010–2011 The Wagner Review 34 Vol. XVIII, 2010–2011 The Wagner Review similar results. These findings are consistent with Our use of marital status as a proxy for welfare partici- similar results. These findings are consistent with Our use of marital status as a proxy for welfare partici- our initial hypothesis. pation is another potential limitation. Almost certainly our initial hypothesis. pation is another potential limitation. Almost certainly some married women in the comparison group received some married women in the comparison group received Several covariates are worth noting, as their estimates on welfare benefits and some of the single women did not. Several covariates are worth noting, as their estimates on welfare benefits and some of the single women did not. our two target variables are quite strong. Tobacco use and As a result, our effects are likely underestimated for the our two target variables are quite strong. Tobacco use and As a result, our effects are likely underestimated for the alcohol consumption are highly correlated with delayed target group. alcohol consumption are highly correlated with delayed target group. initiation of prenatal care and low birth weight and have initiation of prenatal care and low birth weight and have coefficients much higher than any of the estimated effects In addition, our model is oversimplified by using binary coefficients much higher than any of the estimated effects In addition, our model is oversimplified by using binary of the welfare policies. Race is also noteworthy. Hispanic, welfare generosity variables; our model does not cap- of the welfare policies. Race is also noteworthy. Hispanic, welfare generosity variables; our model does not cap- black, and other races are associated with less prenatal care ture the nuances within and between state policies. We black, and other races are associated with less prenatal care ture the nuances within and between state policies. We use and low birth weight. Women with diabetes have attempt to identify the four most important policies that use and low birth weight. Women with diabetes have attempt to identify the four most important policies that infants with higher birth weight than women without affect overall economic status, but welfare variables not infants with higher birth weight than women without affect overall economic status, but welfare variables not diabetes. This is expected from a physiological perspective included in our model may affect our outcomes of inter- diabetes. This is expected from a physiological perspective included in our model may affect our outcomes of inter- because a fetus secretes more insulin, which has a growth- est. Our analysis does not capture additional services and because a fetus secretes more insulin, which has a growth- est. Our analysis does not capture additional services and hormone-like effect, in response to the mother’s elevated cash-assistance programs that women may receive, such hormone-like effect, in response to the mother’s elevated cash-assistance programs that women may receive, such blood sugar. Diabetes is also associated with an increased as child care subsidies; food stamps; Women, Infants, blood sugar. Diabetes is also associated with an increased as child care subsidies; food stamps; Women, Infants, number of prenatal visits and initiating care in the first and Children; the Earned Income Tax Credit; and other number of prenatal visits and initiating care in the first and Children; the Earned Income Tax Credit; and other 12 weeks, as more frequent testing is necessary. Hyperten- pregnancy-targeted health programs. Similarly, we mea- 12 weeks, as more frequent testing is necessary. Hyperten- pregnancy-targeted health programs. Similarly, we mea- sion is negatively associated with birth weight, which is sure the impact of the policies’ presence, not whether the sion is negatively associated with birth weight, which is sure the impact of the policies’ presence, not whether the expected given its effect on the placenta, and is positively policies affect a specific individual. As such, we have likely expected given its effect on the placenta, and is positively policies affect a specific individual. As such, we have likely associated with both initiation of prenatal care in the first underestimated individual and cumulative policy effects associated with both initiation of prenatal care in the first underestimated individual and cumulative policy effects trimester and the number of prenatal care visits. on individual women. trimester and the number of prenatal care visits. on individual women.

Strengths and Limitations Strengths and Limitations Limitations A generous family cap Limitations A generous family cap The first limitation of our analysis is the distinction policy, more than other The first limitation of our analysis is the distinction policy, more than other between clinical and statistical significance. Given policies, is associated between clinical and statistical significance. Given policies, is associated our large sample size, even small average changes in with increase in the odds our large sample size, even small average changes in with increase in the odds prenatal care and particularly birth weight appear sig- that unmarried women prenatal care and particularly birth weight appear sig- that unmarried women “ start early prenatal care “ start early prenatal care nificant at a statistical level. Some of these variations, nificant at a statistical level. Some of these variations, however, remain too small to be noteworthy from a and increase the number however, remain too small to be noteworthy from a and increase the number clinical perspective. For example, the average birth of prenatal care visits. clinical perspective. For example, the average birth of prenatal care visits. weight of an infant born in the U.S. is about 3,500 weight of an infant born in the U.S. is about 3,500 grams, so a six-gram difference between our groups grams, so a six-gram difference between our groups is a variation of only 0.2 percent, which is unlikely is a variation of only 0.2 percent, which is unlikely to have real-world meaning. Regardless, we feel that Finally, we limit our data collection to seven years, from to have real-world meaning. Regardless, we feel that Finally, we limit our data collection to seven years, from these changes are indicative of important differences 1996 to 2002. Ideally, including data prior to the imple- these changes are indicative of important differences 1996 to 2002. Ideally, including data prior to the imple- in access to care that women on welfare experience mentation of these policies would have strengthened our in access to care that women on welfare experience mentation of these policies would have strengthened our and remain useful at a policy-implementation level. analysis, as it would have allowed us to do a difference-in- and remain useful at a policy-implementation level. analysis, as it would have allowed us to do a difference-in- differences model. differences model. Our model is unable to control for potentially important Our model is unable to control for potentially important confounders. States vary in both their Medicaid-eligibility Internal and External Validity confounders. States vary in both their Medicaid-eligibility Internal and External Validity criteria and availability of funding to pay for medically Despite these limitations, our study contributes criteria and availability of funding to pay for medically Despite these limitations, our study contributes necessary abortions, so low-income women who may have to a body of empirical evidence to better inform necessary abortions, so low-income women who may have to a body of empirical evidence to better inform otherwise chosen to terminate a pregnancy are often unable the effects of welfare policies on the reproductive otherwise chosen to terminate a pregnancy are often unable the effects of welfare policies on the reproductive to do so. Also, whether or not a pregnancy was wanted health of an understudied population. We gath- to do so. Also, whether or not a pregnancy was wanted health of an understudied population. We gath- could affect whether a woman seeks prenatal care and ered more than 3 million observations from the could affect whether a woman seeks prenatal care and ered more than 3 million observations from the other pregnancy behaviors that may affect birth weight. Natality Detail Files and included every eligible other pregnancy behaviors that may affect birth weight. Natality Detail Files and included every eligible

The Effect of the Generosity of Welfare Wolff, et al. 35 The Effect of the Generosity of Welfare Wolff, et al. 35 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women individual from ages 20 to 34; therefore, we are We caution that logistic regressions yield odds ratios, individual from ages 20 to 34; therefore, we are We caution that logistic regressions yield odds ratios, not concerned about threats to external validity which are approximate ratios that show relative measures not concerned about threats to external validity which are approximate ratios that show relative measures of impact between groups. Odds ratios have the disadvan- of impact between groups. Odds ratios have the disadvantage of overstating the effect of common outcomes. tage of overstating the effect of common outcomes.

In light of the November Conclusions and In light of the November Conclusions and 2010 TANF reauthorization, Policy Implications 2010 TANF reauthorization, Policy Implications we can use this analysis we can use this analysis of reproductive health Our results show several statistically significant relation- of reproductive health Our results show several statistically significant relation- outcomes to learn from ships between generosity of welfare, prenatal care utiliza- outcomes to learn from ships between generosity of welfare, prenatal care utiliza- “ and improve upon future tion, and birth weight. Compared with married women, “ and improve upon future tion, and birth weight. Compared with married women, welfare reforms. This study unmarried women have lower birth weight infants, and welfare reforms. This study unmarried women have lower birth weight infants, and is particularly relevant they are less likely to initiate early prenatal care and attend is particularly relevant they are less likely to initiate early prenatal care and attend during the current time of prenatal visits. Our analysis of individual welfare policies during the current time of prenatal visits. Our analysis of individual welfare policies recession, when children and overall level of generosity shows inconsistent effects, recession, when children and overall level of generosity shows inconsistent effects, and low-educated women illustrating difficulties in understanding and accounting and low-educated women illustrating difficulties in understanding and accounting are more vulnerable to for variation in different welfare policies. are more vulnerable to for variation in different welfare policies. economic hardship. economic hardship. Regardless, this study provides empirical information Regardless, this study provides empirical information about the complicated relationship between welfare about the complicated relationship between welfare and health. In light of the November 2010 TANF and health. In light of the November 2010 TANF for this age group during this period of time. Of reauthorization, we can use this analysis of reproduc- for this age group during this period of time. Of reauthorization, we can use this analysis of reproduc- course, as legislation and economic conditions tive health outcomes to learn from and improve upon course, as legislation and economic conditions tive health outcomes to learn from and improve upon have changed, temporality may be a threat to future welfare reforms. This study is particularly rel- have changed, temporality may be a threat to future welfare reforms. This study is particularly rel- external validity. Because the method of birth cer- evant during the current time of recession, when chil- external validity. Because the method of birth cer- evant during the current time of recession, when chil- tificate documentation is consistent throughout dren and low-educated women are more vulnerable tificate documentation is consistent throughout dren and low-educated women are more vulnerable the collection time period and across states, our to economic hardship. Currently, single mothers face the collection time period and across states, our to economic hardship. Currently, single mothers face study does not face threats of testing or instru- higher rates of unemployment and poverty rates sur- study does not face threats of testing or instru- higher rates of unemployment and poverty rates sur- mentation bias. passing 40 percent.37 The benefit levels of TANF are 75 mentation bias. passing 40 percent.37 The benefit levels of TANF are 75 percent of the poverty level in 47 states.38 This illustrates percent of the poverty level in 47 states.38 This illustrates Regression Techniques the disconnect between the economic needs of vulnerable Regression Techniques the disconnect between the economic needs of vulnerable We use sophisticated measurement techniques to populations and welfare benefits. We use sophisticated measurement techniques to populations and welfare benefits. test the robustness of our results. We choose two test the robustness of our results. We choose two dependent variables, birth weight and prenatal There are several ways that this paper might inform future dependent variables, birth weight and prenatal There are several ways that this paper might inform future care utilization, both of which are key indicators research and policymaking. First, it illustrates the need for care utilization, both of which are key indicators research and policymaking. First, it illustrates the need for of health status among low-income, unmarried more comprehensive and in-depth measures to evaluate of health status among low-income, unmarried more comprehensive and in-depth measures to evaluate women. We are able to analyze prenatal care and welfare programs. Second, it points out the need for pos- women. We are able to analyze prenatal care and welfare programs. Second, it points out the need for pos- birth weight outcomes from different perspec- sible tracking and collecting of welfare information on birth weight outcomes from different perspec- sible tracking and collecting of welfare information on tives by using OLS and logistic regressions and by government records. This could assist government offi- tives by using OLS and logistic regressions and by government records. This could assist government offi- using the dependent variables as continuous and cials and policymakers in accurately assessing the impact using the dependent variables as continuous and cials and policymakers in accurately assessing the impact binary variables. We are also able to isolate the of cash-welfare programs and provide additional, valuable binary variables. We are also able to isolate the of cash-welfare programs and provide additional, valuable impact of welfare generosity on pregnant women data on trends of women participating in welfare. We impact of welfare generosity on pregnant women data on trends of women participating in welfare. We with our different welfare-policy variables. Addi- encourage future research to address both the economic with our different welfare-policy variables. Addi- encourage future research to address both the economic tionally, we include several covariates, including and health care realities of vulnerable populations and tionally, we include several covariates, including and health care realities of vulnerable populations and several high-risk health factors, to strengthen our shed light on the relationship between women’s health several high-risk health factors, to strengthen our shed light on the relationship between women’s health causality argument. and government assistance. causality argument. and government assistance.

36 Vol. XVIII, 2010–2011 The Wagner Review 36 Vol. XVIII, 2010–2011 The Wagner Review Notes 15 Norma Gavin, E. K. Adams, Willard Manning, Cheryl Raskind- Notes 15 Norma Gavin, E. K. Adams, Willard Manning, Cheryl Raskind- Hood, and Matthew Urato, “The Impact of Welfare Reform on Hood, and Matthew Urato, “The Impact of Welfare Reform on 1 U.S. Department of Health and Human Services, The Next Phase of Insurance Coverage Before Pregnancy and the Timing of Prenatal 1 U.S. Department of Health and Human Services, The Next Phase of Insurance Coverage Before Pregnancy and the Timing of Prenatal Welfare Reform: Implementing the Deficit Reduction Act of 2005. Care Initiation,” Health Services Research 42, no. 4 (2007): 1564. Welfare Reform: Implementing the Deficit Reduction Act of 2005. Care Initiation,” Health Services Research 42, no. 4 (2007): 1564. 2 Liz Schott, Policy Basics: An Introduction to TANF, (Washington, 16 Currie and Grogger, “Medicaid Expansions and Welfare Contrac- 2 Liz Schott, Policy Basics: An Introduction to TANF, (Washington, 16 Currie and Grogger, “Medicaid Expansions and Welfare Contrac- DC: Center on Budget and Policy Priorities, 2009): http://www. tions.” DC: Center on Budget and Policy Priorities, 2009): http://www. tions.” cbpp.org/cms/index.cfm?fa=view&id=936, accessed March 6, 2010. 17 Theodore Joyce, Tamar Bauer, Howard Minkoff, and Robert Kaest- cbpp.org/cms/index.cfm?fa=view&id=936, accessed March 6, 2010. 17 Theodore Joyce, Tamar Bauer, Howard Minkoff, and Robert Kaest- 3 Robert Kaestner and Won Chan Lee, “The Effect of Welfare ner, “Welfare Reform and the Perinatal Health and Health Care 3 Robert Kaestner and Won Chan Lee, “The Effect of Welfare ner, “Welfare Reform and the Perinatal Health and Health Care Reform on Prenatal Care and Birth Weight,” Health Economics 14, Use of Latino Women in California, New York City, and Texas,” Reform on Prenatal Care and Birth Weight,” Health Economics 14, Use of Latino Women in California, New York City, and Texas,” no. 5 (2005): 497-511. 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Health,” American Journal of Public Health 89, no. 10 (1999): 1514-21. Research Corporation, 2001). Health,” American Journal of Public Health 89, no. 10 (1999): 1514-21. 11 George Kaplan, Kristine Siefert, Nalini Ranjit, Trivellore Raghu- 25 The Urban Institute, Welfare Rules Database, http://anfdata.urban. 11 George Kaplan, Kristine Siefert, Nalini Ranjit, Trivellore Raghu- 25 The Urban Institute, Welfare Rules Database, http://anfdata.urban. nathan, Elizabeth Young, Diem Tran, Sandra Danziger, Susan org/wrd/WRDWelcome.cfm, accessed December 9, 2009. nathan, Elizabeth Young, Diem Tran, Sandra Danziger, Susan org/wrd/WRDWelcome.cfm, accessed December 9, 2009. Hudson, John Lynch, and Richard Tolman, “The Health of Poor 26 Jonathan Leonard and Alexandre Mas, “Welfare Reform, Time Hudson, John Lynch, and Richard Tolman, “The Health of Poor 26 Jonathan Leonard and Alexandre Mas, “Welfare Reform, Time Women Under Welfare Reform,” American Journal of Public Health Limits, and Infant Health,” Journal of Health Economics 27, no. 6 Women Under Welfare Reform,” American Journal of Public Health Limits, and Infant Health,” Journal of Health Economics 27, no. 6 95, no. 7 (2005): 1252-1258. (2008): 1551-66. 95, no. 7 (2005): 1252-1258. (2008): 1551-66. 12 Kosali Simon and Arden Handler, “Welfare Reform and Insurance 27 The Urban Institute, Welfare Rules Database. 12 Kosali Simon and Arden Handler, “Welfare Reform and Insurance 27 The Urban Institute, Welfare Rules Database. Coverage During the Pregnancy Period: Implications for Precon- 28 Marlos Rodrigues Domingues, Alicia Matijasevich, and Aluisio J.D. Coverage During the Pregnancy Period: Implications for Precon- 28 Marlos Rodrigues Domingues, Alicia Matijasevich, and Aluisio J.D. ception and Interconception Care,” Women’s Health Issues: Official Barros, “Physical Activity and Preterm Birth: A Literature Review,” ception and Interconception Care,” Women’s Health Issues: Official Barros, “Physical Activity and Preterm Birth: A Literature Review,” Publication of the Jacobs Institute of Women’s Health 18. no. 6, supp. 1 Sports Medicine (Auckland, New Zealand) 39, no. 11 (2009): 961-75. Publication of the Jacobs Institute of Women’s Health 18. no. 6, supp. 1 Sports Medicine (Auckland, New Zealand) 39, no. 11 (2009): 961-75. (2008): S97-S106. 29 Pauline Jansen, Henning Tiemeier, Frank Verhulst, Alex Burdorf, (2008): S97-S106. 29 Pauline Jansen, Henning Tiemeier, Frank Verhulst, Alex Burdorf, 13 Kaplan et al., “The Health of Poor Women Under Welfare Vincent Jaddoe, Albert Hofman, Henriette Moll, et al., “Employ- 13 Kaplan et al., “The Health of Poor Women Under Welfare Vincent Jaddoe, Albert Hofman, Henriette Moll, et al., “Employ- Reform.” ment Status and the Risk of Pregnancy Complications: The Reform.” ment Status and the Risk of Pregnancy Complications: The 14 Janet Currie and Jeffrey Grogger, “Medicaid Expansions and Wel- Generation R Study,” Occupational and Environmental Medicine 67, 14 Janet Currie and Jeffrey Grogger, “Medicaid Expansions and Wel- Generation R Study,” Occupational and Environmental Medicine 67, fare Contractions: Offsetting Effects on Prenatal Care and Infant no. 6 (2009): 387-394. fare Contractions: Offsetting Effects on Prenatal Care and Infant no. 6 (2009): 387-394. Health?” Journal of Health Economics 21, no. 2 (2002): 313-335. 30 The Urban Institute, Welfare Rules Database. Health?” Journal of Health Economics 21, no. 2 (2002): 313-335. 30 The Urban Institute, Welfare Rules Database.

The Effect of the Generosity of Welfare Wolff, et al. 37 The Effect of the Generosity of Welfare Wolff, et al. 37 Benefits on Maternal and Infant Health Benefits on Maternal and Infant Health Among Unmarried, Low-Educated Women Among Unmarried, Low-Educated Women 31 Lynne Fender, Signe Mary McKernan, and Jen Bernstein, Linking December 9, 2009. 31 Lynne Fender, Signe Mary McKernan, and Jen Bernstein, Linking December 9, 2009. State TANF and Related Policies to Outcomes: Preliminary Typologies 35 Kaplan et al., “The Health of Poor Women Under Welfare State TANF and Related Policies to Outcomes: Preliminary Typologies 35 Kaplan et al., “The Health of Poor Women Under Welfare and Analysis, The Urban Institute, U.S. Department of Health and Reform.” and Analysis, The Urban Institute, U.S. Department of Health and Reform.” Human Services’ Office of the Assistant Secretary for Planning and 36 Polit et al., The Health of Poor Urban Women: Findings From the Human Services’ Office of the Assistant Secretary for Planning and 36 Polit et al., The Health of Poor Urban Women: Findings From the Evaluation, 2002. Project on Devolution and Urban Change. Evaluation, 2002. Project on Devolution and Urban Change. 32 Steve Steimel, Paul Sutton, Brady Hamilton, Thomas D. Dunn, 37 Elizabeth Lower-Basch, Goals for TANF Reauthorization, Washing- 32 Steve Steimel, Paul Sutton, Brady Hamilton, Thomas D. Dunn, 37 Elizabeth Lower-Basch, Goals for TANF Reauthorization, Washing- and Sharon Kirmeyer, Documentation of the Detail Natality Public ton, DC, Center for Law and Social Policy, 2010, accessed March 8, and Sharon Kirmeyer, Documentation of the Detail Natality Public ton, DC, Center for Law and Social Policy, 2010, accessed March 8, Use File for 2003. 2010. Use File for 2003. 2010. 33 Centers for Disease Control, and National Center for Health Statis- 38 Liz Schott and Zachary Levinson, TANF Benefits are Low and Have 33 Centers for Disease Control, and National Center for Health Statis- 38 Liz Schott and Zachary Levinson, TANF Benefits are Low and Have tics. Natality data, public-use data files, accessed December 8, 2009. Not Kept Pace With Inflation, (Washington, DC: Center on Budget tics. Natality data, public-use data files, accessed December 8, 2009. Not Kept Pace With Inflation, (Washington, DC: Center on Budget 34 Inter-University Consortium for Political and Social Research, The and Policy Priorities, 2008). 34 Inter-University Consortium for Political and Social Research, The and Policy Priorities, 2008). University of Michigan, Natality data files (various years), accessed University of Michigan, Natality data files (various years), accessed

38 Vol. XVIII, 2010–2011 The Wagner Review 38 Vol. XVIII, 2010–2011 The Wagner Review Improving the NYPD’s Improving the NYPD’s Performance Management Performance Management System by Measuring System by Measuring Legal Cynicism Legal Cynicism

Amalea Smirniotopoulos Amalea Smirniotopoulos

The New The New ABSTRACT York City ABSTRACT York City Police Department (NYPD) has been widely Police Department (NYPD) has been widely praised for its use of a sophisticated per- praised for its use of a sophisticated performance management system, CompStat, formance management system, CompStat, to monitor performance, allocate resourc- to monitor performance, allocate resources, and test strategies for reducing crime. es, and test strategies for reducing crime. Lured by claims that CompStat is the key to Lured by claims that CompStat is the key to crime reductions, police departments na- crime reductions, police departments nationwide have implemented similar perfor- tionwide have implemented similar performance management systems, and a grow- mance management systems, and a growing literature has developed around police ing literature has developed around police performance management. However, be- performance management. However, because CompStat does not capture essential cause CompStat does not capture essential data on legal cynicism, the NYPD continues data on legal cynicism, the NYPD continues to pursue policing strategies, such as stop- to pursue policing strategies, such as stop- and-frisks, that severely corrode police- and-frisks, that severely corrode police- community relations. The NYPD should community relations. The NYPD should adopt new performance measures that at- adopt new performance measures that attempt to gauge police-community relations tempt to gauge police-community relations in order to provide the NYPD with a more ac- in order to provide the NYPD with a more accurate picture of its effectiveness. curate picture of its effectiveness.

Improving the NYPD’s Smirniotopoulos 39 Improving the NYPD’s Smirniotopoulos 39 Performance Management System Performance Management System Introduction words, “individuals are more likely to obey the law when Introduction words, “individuals are more likely to obey the law when law enforcers treat them … in ways that they identify as law enforcers treat them … in ways that they identify as The New York City Police Department (NYPD) has been neutral, rather than discriminatory.”5 By contrast, “if indi- The New York City Police Department (NYPD) has been neutral, rather than discriminatory.”5 By contrast, “if indi- widely praised for its use of a sophisticated performance viduals presume that the law is unavailable or unrespon- widely praised for its use of a sophisticated performance viduals presume that the law is unavailable or unrespon- management system, CompStat, to monitor perfor- sive to their needs,” it will push individuals to “engage management system, CompStat, to monitor perfor- sive to their needs,” it will push individuals to “engage mance, allocate resources, and test strategies for reducing in their own brand of social control” through violence.6 mance, allocate resources, and test strategies for reducing in their own brand of social control” through violence.6 crime. Many regard CompStat as “setting the standard In his landmark work, Tyler interviewed 1,575 Chicago crime. Many regard CompStat as “setting the standard In his landmark work, Tyler interviewed 1,575 Chicago for police management generally, and particularly for the residents about their own law breaking and their percep- for police management generally, and particularly for the residents about their own law breaking and their percep- use of performance measurement in systems of internal tions of the criminal justice system, including the police.7 use of performance measurement in systems of internal tions of the criminal justice system, including the police.7 accountability.”1 Lured by claims that CompStat is the Tyler found that individuals’ perception that the criminal accountability.”1 Lured by claims that CompStat is the Tyler found that individuals’ perception that the criminal key to crime reductions, police departments nationwide justice system was illegitimate was correlated with the fre- key to crime reductions, police departments nationwide justice system was illegitimate was correlated with the fre- have implemented similar performance management quency with which they committed minor offenses, such have implemented similar performance management quency with which they committed minor offenses, such systems, 2 and a growing literature has developed around as driving above the speed limit.8 Recent research by Kirk systems, 2 and a growing literature has developed around as driving above the speed limit.8 Recent research by Kirk police performance management. and Papachristos similarly found that differences in legal police performance management. and Papachristos similarly found that differences in legal cynicism explained variations in homicide rates among cynicism explained variations in homicide rates among However, contrary to best practices, the NYPD’s Comp- Chicago neighborhoods in the 1990s.9 However, contrary to best practices, the NYPD’s Comp- Chicago neighborhoods in the 1990s.9 Stat system still relies on traditional measures of police Stat system still relies on traditional measures of police effectiveness, such as crime rates, arrest rates, and stop- The police, in particular, have a significant impact on effectiveness, such as crime rates, arrest rates, and stop- The police, in particular, have a significant impact on and-frisk rates. Because it focuses exclusively on this community perceptions of the legitimacy of the criminal and-frisk rates. Because it focuses exclusively on this community perceptions of the legitimacy of the criminal narrow set of results, CompStat fails to capture other justice system. The police are the only actors that rou- narrow set of results, CompStat fails to capture other justice system. The police are the only actors that rou- information that could provide necessary feedback on tinely interact with all of the stakeholders in the criminal information that could provide necessary feedback on tinely interact with all of the stakeholders in the criminal the effectiveness of NYPD strategies. Research has shown justice system (offender, victim, and community) before, the effectiveness of NYPD strategies. Research has shown justice system (offender, victim, and community) before, that community perceptions of the police and the legit- during, and after the commission of a crime. As such, the that community perceptions of the police and the legit- during, and after the commission of a crime. As such, the imacy of the criminal justice system as a whole have a “most visible injustices occur in policing.”10 Research has imacy of the criminal justice system as a whole have a “most visible injustices occur in policing.”10 Research has significant effect on law-abiding behavior. When people shown that how individuals felt that they were treated by significant effect on law-abiding behavior. When people shown that how individuals felt that they were treated by perceive that law enforcement is illegitimate—i.e., when the police was one of the most significant influences on perceive that law enforcement is illegitimate—i.e., when the police was one of the most significant influences on they exhibit legal cynicism—they are less likely to obey their evaluation of their experience in criminal court.11 they exhibit legal cynicism—they are less likely to obey their evaluation of their experience in criminal court.11 the law.3 Because CompStat does not capture essential As Gau and Bronson note, “It is, therefore, not enough the law.3 Because CompStat does not capture essential As Gau and Bronson note, “It is, therefore, not enough data on legal cynicism, however, the NYPD continues for police to plow headlong into their law-enforcement data on legal cynicism, however, the NYPD continues for police to plow headlong into their law-enforcement to pursue policing strategies, such as stop-and-frisks, that mission—they must also consider the evenhandedness to pursue policing strategies, such as stop-and-frisks, that mission—they must also consider the evenhandedness severely corrode police-community relations. The NYPD with which they execute their duties. Failure to do so has severely corrode police-community relations. The NYPD with which they execute their duties. Failure to do so has should adopt new performance measures that attempt to the potential to reduce their legitimacy and ultimately should adopt new performance measures that attempt to the potential to reduce their legitimacy and ultimately gauge police-community relations in order to provide the undermine their capacity to influence citizens’ behavior gauge police-community relations in order to provide the undermine their capacity to influence citizens’ behavior department with a more accurate picture of its effective- and effectively control crime.”12 department with a more accurate picture of its effective- and effectively control crime.”12 ness. ness. The NYPD’s Performance The NYPD’s Performance Management System Does Management System Does The NYPD’s Performance Not Measure Legal Cynicism The NYPD’s Performance Not Measure Legal Cynicism Management System Fails The NYPD currently relies on a “results-oriented” man- Management System Fails The NYPD currently relies on a “results-oriented” man- to Measure Legal Cynicism agement system, CompStat, to monitor police perfor- to Measure Legal Cynicism agement system, CompStat, to monitor police performance at the precinct level. CompStat was created in mance at the precinct level. CompStat was created in The Process of Policing Can 1994 by then NYPD Commissioner William Bratton The Process of Policing Can 1994 by then NYPD Commissioner William Bratton Increase Legal Cynicism, in order “to gather and disseminate information on Increase Legal Cynicism, in order “to gather and disseminate information on Affecting Crime Rates NYPD’s crime problems and track efforts to deal with Affecting Crime Rates NYPD’s crime problems and track efforts to deal with For nearly 40 years, criminologists have argued that com- them.”13 CompStat combines regular meetings of key For nearly 40 years, criminologists have argued that com- them.”13 CompStat combines regular meetings of key munity perceptions of the legitimacy of the criminal law-enforcement personnel with a computer system that munity perceptions of the legitimacy of the criminal law-enforcement personnel with a computer system that justice system can affect crime rates by changing com- compiles data on crime statistics.14 Precinct commanders justice system can affect crime rates by changing com- compiles data on crime statistics.14 Precinct commanders munity compliance with the law. Extensive empirical are then held accountable for the crime statistics in their munity compliance with the law. Extensive empirical are then held accountable for the crime statistics in their research has shown that compliance with the law is cor- community at regular CompStat meetings.15 These meet- research has shown that compliance with the law is cor- community at regular CompStat meetings.15 These meet- related with the perceived legitimacy of the law.4 In other ings have been described as “tough, probing sessions” in related with the perceived legitimacy of the law.4 In other ings have been described as “tough, probing sessions” in

40 Vol. XVIII, 2010–2011 The Wagner Review 40 Vol. XVIII, 2010–2011 The Wagner Review which the department’s top executives quiz commanders stop-and-frisks deter people from carrying weapons24 which the department’s top executives quiz commanders stop-and-frisks deter people from carrying weapons24 about their use of particular policing techniques,16 “their and may reduce violent crime.25 At CompStat meet- about their use of particular policing techniques,16 “their and may reduce violent crime.25 At CompStat meet- analyses of patterns and trends, about their actions to ings, the number of stop-and-frisks is compared with analyses of patterns and trends, about their actions to ings, the number of stop-and-frisks is compared with solve crime problems, and about their coordination with crime rates in a precinct, and the location and tim- solve crime problems, and about their coordination with crime rates in a precinct, and the location and tim- other police department units.”17 The goal of CompStat ing of stop-and-frisks is compared with the place and other police department units.”17 The goal of CompStat ing of stop-and-frisks is compared with the place and is both to measure the outcomes of police practices and time of crimes.26 The NYPD also sets productivity is both to measure the outcomes of police practices and time of crimes.26 The NYPD also sets productivity to use data to “manag[e] for improved outcomes.”18 By goals for individual officers.27 to use data to “manag[e] for improved outcomes.”18 By goals for individual officers.27 computerizing daily crime statistics, CompStat allows computerizing daily crime statistics, CompStat allows NYPD commanders to monitor, in real time, whether As with other performance management schemes, NYPD commanders to monitor, in real time, whether As with other performance management schemes, its crime-control initiatives succeed or fail.19 Research what gets measured gets done. The NYPD’s focus its crime-control initiatives succeed or fail.19 Research what gets measured gets done. The NYPD’s focus has shown that the CompStat system has great behav- on stop-and-frisks as a crime-reduction strategy has has shown that the CompStat system has great behav- on stop-and-frisks as a crime-reduction strategy has ioral power,20 affecting how precinct commanders man- led its officers to stop an increasing number of New ioral power,20 affecting how precinct commanders man- led its officers to stop an increasing number of New age their commands. Yorkers in recent years, particularly New Yorkers of age their commands. Yorkers in recent years, particularly New Yorkers of color.28 During the first months of 2010, 149,753 New color.28 During the first months of 2010, 149,753 New Unfortunately, CompStat focuses on these crime statis- Yorkers were stopped by the NYPD. 29 Approximately Unfortunately, CompStat focuses on these crime statis- Yorkers were stopped by the NYPD. 29 Approximately tics to the exclusion of other important data, particularly 87% were innocent of any illegal conduct.30 The over- tics to the exclusion of other important data, particularly 87% were innocent of any illegal conduct.30 The over- data on police-community relations. While information whelming majority of those stopped were black (53%) data on police-community relations. While information whelming majority of those stopped were black (53%) about civilian complaints and patterns of police miscon- and Latino (32%).31 These stops are also concentrated about civilian complaints and patterns of police miscon- and Latino (32%).31 These stops are also concentrated duct were included in precinct commander profiles and in particular communities: in Brownsville, Brooklyn, duct were included in precinct commander profiles and in particular communities: in Brownsville, Brooklyn, discussed in CompStat meetings under Commissioner for example, the police stopped 93 out of 100 resi- discussed in CompStat meetings under Commissioner for example, the police stopped 93 out of 100 resi- Bratton, it is unclear how or how often this data was col- dents in the past four years.32 Bratton, it is unclear how or how often this data was col- dents in the past four years.32 lected.21 Moreover, even under Commissioner Bratton, lected.21 Moreover, even under Commissioner Bratton, these issues did “not receive the same level of attention Regardless of the cause of this disparate impact,33 the these issues did “not receive the same level of attention Regardless of the cause of this disparate impact,33 the by the [NYPD]—nor certainly by the Mayor—given to frequency of the stops has seriously corroded police- by the [NYPD]—nor certainly by the Mayor—given to frequency of the stops has seriously corroded police- crime.”22 community relations. As Gau and Brunson found crime.”22 community relations. As Gau and Brunson found in their study of St. Louis youth, “widespread stop- in their study of St. Louis youth, “widespread stop- and-frisks can ... undermine police legitimacy.”34 and-frisks can ... undermine police legitimacy.”34 The youth they interviewed “characterized their The youth they interviewed “characterized their Compstat’s use of experiences with the police as often constituting Compstat’s use of experiences with the police as often constituting high-tech, sophisticated harassment.”35 Anecdotal evidence suggests that stop- high-tech, sophisticated harassment.”35 Anecdotal evidence suggests that stop- computer systems masks and-frisks in New York have similarly increased legal computer systems masks and-frisks in New York have similarly increased legal its fundamental reliance cynicism in affected New York communities. In one its fundamental reliance cynicism in affected New York communities. In one on old-fashioned video, several Brownville residents described that “the on old-fashioned video, several Brownville residents described that “the “ performance measures police have a generalization of black men” and one “ performance measures police have a generalization of black men” and one like crime and arrest rates. complained, “I simply can’t just walk down the street like crime and arrest rates. complained, “I simply can’t just walk down the street without being accused for something I have nothing without being accused for something I have nothing to do with.”36 Yet CompStat fails to measure the nega- to do with.”36 Yet CompStat fails to measure the negative impact of the stop-and-frisk strategy on police- tive impact of the stop-and-frisk strategy on police- Case Study: Stop-and-Frisks community relations. Case Study: Stop-and-Frisks community relations. The limitations of CompStat’s myopic focus on tradi- The limitations of CompStat’s myopic focus on traditional measures of police performance is demonstrated The NYPD’s Performance tional measures of police performance is demonstrated The NYPD’s Performance by the recent controversy over the NYPD’s reliance Management System Does by the recent controversy over the NYPD’s reliance Management System Does on stop-and-frisks as a method of controlling crime. Not Follow Best Practices on stop-and-frisks as a method of controlling crime. Not Follow Best Practices Because CompStat focuses on factors such as crime Because CompStat focuses on factors such as crime rates, it fails to capture the corrosive effect of stop-and- CompStat’s narrow focus on crime statistics and simi- rates, it fails to capture the corrosive effect of stop-and- CompStat’s narrow focus on crime statistics and simi- frisks on police-community relations, preventing the lar output measures does not comport with current frisks on police-community relations, preventing the lar output measures does not comport with current NYPD from weighing its true costs and benefits. best practices for police performance management. NYPD from weighing its true costs and benefits. best practices for police performance management. Academic literature on policing has increasingly Academic literature on policing has increasingly The NYPD uses CompStat to monitor the number focused on the need for police departments to build The NYPD uses CompStat to monitor the number focused on the need for police departments to build of stop-and-frisks in a given precinct,23 believing that a strong relationship with the community in order to of stop-and-frisks in a given precinct,23 believing that a strong relationship with the community in order to

Improving the NYPD’s Smirniotopoulos 41 Improving the NYPD’s Smirniotopoulos 41 Performance Management System Performance Management System make enforcement efforts more effective, to prevent ment has combined a CompStat-like system of per- make enforcement efforts more effective, to prevent ment has combined a CompStat-like system of per- crime, and to make the community co-producers of formance management with information on citizen crime, and to make the community co-producers of formance management with information on citizen justice.37 As early as 1997, a group of police execu- complaints.46 justice.37 As early as 1997, a group of police execu- complaints.46 tives convened by the National Institute of Justice tives convened by the National Institute of Justice produced a white paper summarizing new directions To date, the Chicago Internet Project has made the produced a white paper summarizing new directions To date, the Chicago Internet Project has made the for police performance measurement, including citi- most comprehensive attempt to use community- for police performance measurement, including citi- most comprehensive attempt to use community- zen satisfaction.38 While CompStat is the model of an satisfaction measures to evaluate police perfor- zen satisfaction.38 While CompStat is the model of an satisfaction measures to evaluate police perfor- effective performance management system, the data mance. However, in their evaluation of the project, effective performance management system, the data mance. However, in their evaluation of the project, it collects is insufficient to accurately gauge the effec- Rosenbaum et al. found mixed results. The evalua- it collects is insufficient to accurately gauge the effec- Rosenbaum et al. found mixed results. The evalua- tiveness of NYPD strategies. tion sought to determine whether a comprehensive, tiveness of NYPD strategies. tion sought to determine whether a comprehensive, Web-based community survey could be success- Web-based community survey could be success- Traditionally, police performance measures have fully implemented and what effects collecting and Traditionally, police performance measures have fully implemented and what effects collecting and focused on four key statistics: reported crime rates, reporting this data would have on participant per- focused on four key statistics: reported crime rates, reporting this data would have on participant per- overall arrests, clearance rates, and response times.39 overall arrests, clearance rates, and response times.39 Yet performance measurement systems based solely Yet performance measurement systems based solely on “response times, clearance rates, and numbers of on “response times, clearance rates, and numbers of arrests ... prevent police organizations from mov- Publicizing these new arrests ... prevent police organizations from mov- Publicizing these new ing toward a strategy of community problem solv- measures would allow ing toward a strategy of community problem solv- measures would allow ing as there is no way to hold police departments New York residents and ing as there is no way to hold police departments New York residents and externally accountable for addressing community community organizations externally accountable for addressing community community organizations concerns….”40 Like other public managers, “police to monitor the police and concerns….”40 Like other public managers, “police to monitor the police and managers should not restrict themselves to simply “ apply pressure to the managers should not restrict themselves to simply “ apply pressure to the one outcome measure to use as the bottom line for mayor or the NYPD one outcome measure to use as the bottom line for mayor or the NYPD policing”41 and should “pay attention to output and Commissioner if necessary. policing”41 and should “pay attention to output and Commissioner if necessary. process as well as outcomes.”42 process as well as outcomes.”42

In order to effectively focus on community needs, In order to effectively focus on community needs, police must incorporate community-based measures ceptions of the police and the community.47 While police must incorporate community-based measures ceptions of the police and the community.47 While of performance. Alpert and Moore advocate for police the researchers concluded that they were success- of performance. Alpert and Moore advocate for police the researchers concluded that they were success- departments to develop methods to “solicit informa- ful in implementing and collecting accurate results departments to develop methods to “solicit informa- ful in implementing and collecting accurate results tion from members of the community,” such as using from the survey, they found that the survey did not tion from members of the community,” such as using from the survey, they found that the survey did not “community surveys to determine attitudes and sug- change participants’ opinions about the police or “community surveys to determine attitudes and sug- change participants’ opinions about the police or gestions concerning the police and the police role.”43 the community.48 gestions concerning the police and the police role.”43 the community.48 The ideal performance measurement system should The ideal performance measurement system should express the substantive values of the community, This study had several notable limitations that should express the substantive values of the community, This study had several notable limitations that should including “reducing fear/enhancing individual secu- be considered in interpreting the results. First, the sur- including “reducing fear/enhancing individual secu- be considered in interpreting the results. First, the sur- rity; ... using force and authority economically and vey targeted more affluent beats in the city, as “a larger rity; ... using force and authority economically and vey targeted more affluent beats in the city, as “a larger fairly; and ... maintaining customer satisfaction.”44 percentage of economically disadvantaged residents fairly; and ... maintaining customer satisfaction.”44 percentage of economically disadvantaged residents do not have computers or access to the internet.”49 do not have computers or access to the internet.”49 Drawing on these best practices, police departments Although the researchers sought to control for other Drawing on these best practices, police departments Although the researchers sought to control for other in other jurisdictions have experimented with new demographic characteristics, such as race,50 the delib- in other jurisdictions have experimented with new demographic characteristics, such as race,50 the delib- performance metrics that better capture police- erate skewing of the sample may have excluded the performance metrics that better capture police- erate skewing of the sample may have excluded the community relations. While the most common low-income communities that are often most affected community relations. While the most common low-income communities that are often most affected police performance measurement systems “capture by crime. Second, there were significant implemen- police performance measurement systems “capture by crime. Second, there were significant implemen- the extent, nature, and effectiveness or proactive tation problems, most notably that individual police the extent, nature, and effectiveness or proactive tation problems, most notably that individual police problem-solving initiatives,” many departments are officers failed to inform individuals about the survey problem-solving initiatives,” many departments are officers failed to inform individuals about the survey also using surveys to capture data on criminal vic- or to lead discussions about the results as they were also using surveys to capture data on criminal vic- or to lead discussions about the results as they were timization, police encounters, and community per- supposed to.51 Third, the survey results were not timization, police encounters, and community per- supposed to.51 Third, the survey results were not ceptions of the police, among other variables. 45 For incorporated into a comprehensive, CompStat-style ceptions of the police, among other variables. 45 For incorporated into a comprehensive, CompStat-style example, the Lowell, Massachusetts, police depart- performance management system but were merely example, the Lowell, Massachusetts, police depart- performance management system but were merely

42 Vol. XVIII, 2010–2011 The Wagner Review 42 Vol. XVIII, 2010–2011 The Wagner Review discussed at beat meetings with Chicago Alternative legal cynicism as it has arguably had on crime. To discussed at beat meetings with Chicago Alternative legal cynicism as it has arguably had on crime. To Policing Strategy participants.52 This may have dimin- do so, the NYPD should develop a broader set of Policing Strategy participants.52 This may have dimin- do so, the NYPD should develop a broader set of ished the impact of the survey results, as officers were performance measures to more accurately capture ished the impact of the survey results, as officers were performance measures to more accurately capture not held accountable for these results in any way. the effectiveness of its policing practices. These new not held accountable for these results in any way. the effectiveness of its policing practices. These new metrics should be captured using the same comput- metrics should be captured using the same comput- The NYPD Should Implement er-based system currently in use by the NYPD and The NYPD Should Implement er-based system currently in use by the NYPD and New Measures of Police- regularly discussed at CompStat meetings. New Measures of Police- regularly discussed at CompStat meetings. Community Relations to Community Relations to Provide a More Accurate The NYPD Should Use Several Provide a More Accurate The NYPD Should Use Several Picture of Police Performance Metrics to Measure Police- Picture of Police Performance Metrics to Measure Police- Community Relations Community Relations The current limitations of CompStat does not mean Given the difficulties encountered by the Chicago The current limitations of CompStat does not mean Given the difficulties encountered by the Chicago that the NYPD should abandon the system alto- Internet Project, the NYPD should not rely on a that the NYPD should abandon the system alto- Internet Project, the NYPD should not rely on a gether. CompStat is a highly effective performance single measure of community satisfaction to evaluate gether. CompStat is a highly effective performance single measure of community satisfaction to evaluate management system, insofar as it includes several key police-community relations. Because it is difficult management system, insofar as it includes several key police-community relations. Because it is difficult characteristics that allow it to affect internal behav- to collect accurate survey data on community sat- characteristics that allow it to affect internal behav- to collect accurate survey data on community sat- ior. First, the visibility and publicity of performance isfaction on a consistent basis, this mix of measures ior. First, the visibility and publicity of performance isfaction on a consistent basis, this mix of measures measurement reports increases the power of those includes both variables that require direct commu- measurement reports increases the power of those includes both variables that require direct community participation and others which simply require nity participation and others which simply require the NYPD to draw from existing data sources. These the NYPD to draw from existing data sources. These measures include: measures include: Because Compstat does Because Compstat does not capture essential not capture essential Complaints about police conduct. Citizens may Complaints about police conduct. Citizens may data on legal cynicism ... data on legal cynicism ... report negative interactions with the police by report negative interactions with the police by the NYPD continues to the NYPD continues to filing a complaint either at the precinct or at filing a complaint either at the precinct or at pursue policing strate- pursue policing strate- the Civilian Complaint Review Board (CCRB), the Civilian Complaint Review Board (CCRB), gies, such as stop-and- gies, such as stop-and- “ an independent New York City agency char- “ an independent New York City agency char- frisks, that severely frisks, that severely tered to investigate complaints of police officer tered to investigate complaints of police officer corrode police- corrode police- abuse. The NYPD should compile anonymized abuse. The NYPD should compile anonymized community relations. community relations. complaint data by precinct and incident address complaint data by precinct and incident address in order to target investigations and trainings in order to target investigations and trainings at particular precincts. Some might argue that at particular precincts. Some might argue that data from community complaints should not data from community complaints should not reports to affect performance.53 Because CompStat be included, as such information is “suspect reports to affect performance.53 Because CompStat be included, as such information is “suspect data is discussed at regular meetings, both managers and too subjective.”57 However, these com- data is discussed at regular meetings, both managers and too subjective.”57 However, these com- and peers are aware of the performance of particu- plaints are still “indicators of problems” even and peers are aware of the performance of particu- plaints are still “indicators of problems” even lar precinct commanders, giving the system greater though they are not “probative of individual lar precinct commanders, giving the system greater though they are not “probative of individual behavioral power.54 Similarly, such “external oversight office misconduct.”58 behavioral power.54 Similarly, such “external oversight office misconduct.”58 is necessary to achieve sizable and lasting change in is necessary to achieve sizable and lasting change in police organizations.”55 Currently, monthly Comp- Community satisfaction surveys. The NYPD police organizations.”55 Currently, monthly Comp- Community satisfaction surveys. The NYPD Stat crime statistics are available on a precinct level should use two different data-collection meth- Stat crime statistics are available on a precinct level should use two different data-collection meth- on the NYPD website. Finally, the frequency of the ods to collect survey data on community sat- on the NYPD website. Finally, the frequency of the ods to collect survey data on community sat- measurements and the speed of the feedback can isfaction. First, the NYPD should partner measurements and the speed of the feedback can isfaction. First, the NYPD should partner influence the ability of the performance measurement with a respected academic institution, such as influence the ability of the performance measurement with a respected academic institution, such as system to affect behavior.56 CompStat data on crime John Jay College, to conduct a rigorous annual system to affect behavior.56 CompStat data on crime John Jay College, to conduct a rigorous annual and other statistics is collected in real time, and meet- phone survey of a sample of New York City res- and other statistics is collected in real time, and meet- phone survey of a sample of New York City res- ings happen at regular intervals. idents. This survey would capture the opinions ings happen at regular intervals. idents. This survey would capture the opinions of a broad sample of the population, including of a broad sample of the population, including The NYPD should leverage these strengths to a mix of individuals who have and have not had The NYPD should leverage these strengths to a mix of individuals who have and have not had ensure that CompStat has as powerful an effect on previous encounters with the police. The sur- ensure that CompStat has as powerful an effect on previous encounters with the police. The sur-

Improving the NYPD’s Smirniotopoulos 43 Improving the NYPD’s Smirniotopoulos 43 Performance Management System Performance Management System vey would also hopefully reach lower-income vey would also hopefully reach lower-income populations who may not be reached by other populations who may not be reached by other methods.59 These survey results would be dis- Many regard Compstat methods.59 These survey results would be dis- Many regard Compstat cussed at a subsequent CompStat meeting. as “setting the standard cussed at a subsequent CompStat meeting. as “setting the standard Because this data would be available only on an for police management Because this data would be available only on an for police management annual basis, it would allow the NYPD to make generally, and particularly annual basis, it would allow the NYPD to make generally, and particularly comparisons across precincts but not across for the use of performance comparisons across precincts but not across for the use of performance time. For example, this measure may not cap- “ measurement in systems time. For example, this measure may not cap- “ measurement in systems ture changes in community satisfaction related of internal accountability.” ture changes in community satisfaction related of internal accountability.” to particular incidents of police misconduct. to particular incidents of police misconduct.

In order to get a more dynamic measure of In order to get a more dynamic measure of community satisfaction, the NYPD should also Measures of Police-Community community satisfaction, the NYPD should also Measures of Police-Community create a Web-based community-satisfaction Relations May Be Effective at create a Web-based community-satisfaction Relations May Be Effective at survey that would feed survey results directly Reducing Legal Cynicism, Among survey that would feed survey results directly Reducing Legal Cynicism, Among into CompStat in real time. The survey would Other Outcomes into CompStat in real time. The survey would Other Outcomes be available on the NYPD website and could As little research has been done on the effect of imple- be available on the NYPD website and could As little research has been done on the effect of imple- be filled out by any concerned community menting measures of police-community relations, it be filled out by any concerned community menting measures of police-community relations, it member. The NYPD could advertise the sur- is difficult to estimate what, if any, effect they would member. The NYPD could advertise the sur- is difficult to estimate what, if any, effect they would vey through public service announcements and have. However, the “management principle underly- vey through public service announcements and have. However, the “management principle underly- could hand out cards with the Web address of ing CompStat is that what is counted counts in terms could hand out cards with the Web address of ing CompStat is that what is counted counts in terms the survey to individuals who encounter the of organizational performance.”61 Because these new the survey to individuals who encounter the of organizational performance.”61 Because these new police, whether as victims or as suspects. Com- measures would be incorporated into an existing, police, whether as victims or as suspects. Com- measures would be incorporated into an existing, munity-based organizations could also refer effective performance management system, it is likely munity-based organizations could also refer effective performance management system, it is likely individuals to the survey. This survey would they would create several positive outcomes. In the individuals to the survey. This survey would they would create several positive outcomes. In the not be statistically rigorous enough to gener- short term, it is likely that these new metrics would: not be statistically rigorous enough to gener- short term, it is likely that these new metrics would: ate generalizable findings60 but would provide ate generalizable findings60 but would provide an immediate indication that some community Provide the NYPD with better information about an immediate indication that some community Provide the NYPD with better information about members perceive a problem with police con- its effectiveness. As described above, the NYPD members perceive a problem with police con- its effectiveness. As described above, the NYPD duct in a particular area. currently does not measure all the outcomes of duct in a particular area. currently does not measure all the outcomes of its policing strategies. For example, while officials its policing strategies. For example, while officials Incidence of use of force. Use of force is an can see, through CompStat, the apparent effect of Incidence of use of force. Use of force is an can see, through CompStat, the apparent effect of important indicator of police-community rela- stop-and-frisks on crime rates, they cannot see the important indicator of police-community rela- stop-and-frisks on crime rates, they cannot see the tions because it can both reflect negative police strategy’s effect on legal cynicism. By providing the tions because it can both reflect negative police strategy’s effect on legal cynicism. By providing the perceptions of the community and cause such NYPD with more information about the effects of perceptions of the community and cause such NYPD with more information about the effects of perceptions. As such, spikes in the number of its strategies, the NYPD can better evaluate police perceptions. As such, spikes in the number of its strategies, the NYPD can better evaluate police incidents in which force is used, or differen- incidents in which force is used, or differential rates of use of force across precincts, can Encourage the NYPD to develop creative strategies to tial rates of use of force across precincts, can Encourage the NYPD to develop creative strategies to be early warning signs of trouble. Currently, increase community satisfaction. CompStat meet- be early warning signs of trouble. Currently, increase community satisfaction. CompStat meet- NYPD officers are required to record whether ings are both sources of accountability and “major NYPD officers are required to record whether ings are both sources of accountability and “major force was used in making an arrest as part of vehicles for organizational learning,” providing the force was used in making an arrest as part of vehicles for organizational learning,” providing the a computerized arrest report. The system that opportunity to share strategies and compare notes a computerized arrest report. The system that opportunity to share strategies and compare notes manages these arrest reports can be networked on what works.62 By making precinct captains manages these arrest reports can be networked on what works.62 By making precinct captains with CompStat so that it can map incidents accountable for their relationship to the commu- with CompStat so that it can map incidents accountable for their relationship to the commu- involving use of force in real time. nity, these new metrics may encourage precinct involving use of force in real time. nity, these new metrics may encourage precinct commanders to devote more energy to cultivating commanders to devote more energy to cultivating By using this mix of measures, the NYPD will be positive community contacts and to develop inno- By using this mix of measures, the NYPD will be positive community contacts and to develop inno- able to triangulate among the different variables to vative strategies to foster community-police col- able to triangulate among the different variables to vative strategies to foster community-police col- get a more complete and accurate picture of police- laboration. Successful strategies can then be shared get a more complete and accurate picture of police- laboration. Successful strategies can then be shared community relations. with executives at CompStat meetings. community relations. with executives at CompStat meetings.

44 Vol. XVIII, 2010–2011 The Wagner Review 44 Vol. XVIII, 2010–2011 The Wagner Review In the long term, it is likely that these new metrics In the long term, it is likely that these new metrics would also: would also: Compstat’s narrow focus Compstat’s narrow focus Optimize the effectiveness of policing strategies. on crime statistics and Optimize the effectiveness of policing strategies. on crime statistics and Commentators have argued that “the solicitation similar output measures Commentators have argued that “the solicitation similar output measures of feedback from citizens could help police ensure does not comport with of feedback from citizens could help police ensure does not comport with that the crime-reduction strategy they have cho- current best practices that the crime-reduction strategy they have cho- current best practices sen has not compromised perceptions of fairness “ for police performance sen has not compromised perceptions of fairness “ for police performance and justice.”63 By providing the NYPD with more management. Academic and justice.”63 By providing the NYPD with more management. Academic complete information, the department can iden- literature on policing complete information, the department can iden- literature on policing tify and balance the positive and negative effects has increasingly focused tify and balance the positive and negative effects has increasingly focused of particular police strategies. on the need for police of particular police strategies. on the need for police departments to build a departments to build a Improve police-community relationships. Research strong relationship with Improve police-community relationships. Research strong relationship with has shown that “[f]eeling that one’s voice has been the community in order to has shown that “[f]eeling that one’s voice has been the community in order to heard and taken seriously is ... integral to ... police make enforcement efforts heard and taken seriously is ... integral to ... police make enforcement efforts legitimacy.”64 In addition to the effect of any pro- more effective; to prevent legitimacy.”64 In addition to the effect of any pro- more effective; to prevent active measures by precinct commanders, the crime; and to make the active measures by precinct commanders, the crime; and to make the fact that community concerns are measured and community co-producers fact that community concerns are measured and community co-producers valued could improve community perceptions of of justice. valued could improve community perceptions of of justice. police legitimacy. police legitimacy.

Prevent crime. To the extent that legal cynicism is of this media attention, as well as a high-profile Prevent crime. To the extent that legal cynicism is of this media attention, as well as a high-profile a cause of criminal behavior, this proposal would lawsuit,67 the NYPD currently faces significant exter- a cause of criminal behavior, this proposal would lawsuit,67 the NYPD currently faces significant exter- prevent future crimes by encouraging improve- nal pressure from community groups to change its prevent future crimes by encouraging improve- nal pressure from community groups to change its ments in police-community relations. stop-and-frisk practices. Mayor Michael Bloomberg ments in police-community relations. stop-and-frisk practices. Mayor Michael Bloomberg and NYPD Commissioner Raymond Kelly may view and NYPD Commissioner Raymond Kelly may view As with any performance measurement system, the the addition of community-satisfaction measures to As with any performance measurement system, the the addition of community-satisfaction measures to realization of these effects depends on the accuracy of CompStat as a necessary concession given the nega- realization of these effects depends on the accuracy of CompStat as a necessary concession given the nega- the data collected, as well as the NYPD’s willingness to tive media attention the NYPD has received. How- the data collected, as well as the NYPD’s willingness to tive media attention the NYPD has received. How- hold precinct commanders accountable for these mea- ever, they may be hesitant to make such changes while hold precinct commanders accountable for these mea- ever, they may be hesitant to make such changes while sures. However, the past successes of CompStat may the lawsuit against them is ongoing, fearing that the sures. However, the past successes of CompStat may the lawsuit against them is ongoing, fearing that the predict similar successes with these new measures. shift will be taken as an admission of guilt by oppos- predict similar successes with these new measures. shift will be taken as an admission of guilt by oppos- ing counsel. Similarly, the Patrolman’s Benevolent ing counsel. Similarly, the Patrolman’s Benevolent In order to ensure the success of these measures, these Association may have qualms about incorporating In order to ensure the success of these measures, these Association may have qualms about incorporating statistics should be made publicly available on the CCRB complaints and community norms into the statistics should be made publicly available on the CCRB complaints and community norms into the NYPD website. Research has shown that “the more new system but may appreciate the shift away from a NYPD website. Research has shown that “the more new system but may appreciate the shift away from a external pressure, the more rapid the pace of change” results-based approach that encourages quotas. external pressure, the more rapid the pace of change” results-based approach that encourages quotas. within police departments.65 Publicizing these new mea- within police departments.65 Publicizing these new measures would allow New York residents and community sures would allow New York residents and community organizations to monitor the police and apply pressure This proposal is also likely to be supported by sev- organizations to monitor the police and apply pressure This proposal is also likely to be supported by sev- to the mayor or the NYPD commissioner if necessary. eral key constituencies outside of city government. to the mayor or the NYPD commissioner if necessary. eral key constituencies outside of city government. Community members, including the community- Community members, including the community- based organizations that represent them, may favor based organizations that represent them, may favor The Proposed Changes May Be the proposal, as it provides them with a method The Proposed Changes May Be the proposal, as it provides them with a method Politically and Economically to be heard and to provide consistent feedback to Politically and Economically to be heard and to provide consistent feedback to Feasible the NYPD. Organizations that have argued for a Feasible the NYPD. Organizations that have argued for a Recent media attention on the problem of stop-and- stronger CCRB, such as the New York Civil Liber- Recent media attention on the problem of stop-and- stronger CCRB, such as the New York Civil Liber- frisks has created an opportune moment to push for ties Union, may also support the proposal, as the frisks has created an opportune moment to push for ties Union, may also support the proposal, as the a broader set of performance measures.66 As a result new measures would require precinct command- a broader set of performance measures.66 As a result new measures would require precinct command-

Improving the NYPD’s Smirniotopoulos 45 Improving the NYPD’s Smirniotopoulos 45 Performance Management System Performance Management System ers to respond to CCRB complaints on a systemic administered by police recruits as part of their acad- ers to respond to CCRB complaints on a systemic administered by police recruits as part of their acad- level. emy obligations.68 At the same time, if effective, a level. emy obligations.68 At the same time, if effective, a new system may have financial benefits for the city. new system may have financial benefits for the city. Adding these new performance measures may also For example, if the new system successfully improves Adding these new performance measures may also For example, if the new system successfully improves be economically feasible. A new performance man- community-police relations, it may reduce the like- be economically feasible. A new performance man- community-police relations, it may reduce the like- agement system may have significant up-front costs. lihood of future lawsuits over perceived discrimina- agement system may have significant up-front costs. lihood of future lawsuits over perceived discrimina- The NYPD would have to devote significant time tion, reducing the city’s litigation costs. The NYPD would have to devote significant time tion, reducing the city’s litigation costs. and resources to developing a community-satisfaction and resources to developing a community-satisfaction survey that accurately captures the concerns of New Conclusion survey that accurately captures the concerns of New Conclusion Yorkers. This could include several months of research Yorkers. This could include several months of research and pretesting, including focus groups or commu- CompStat’s use of high-tech, sophisticated com- and pretesting, including focus groups or commu- CompStat’s use of high-tech, sophisticated com- nity board meetings. The NYPD would then have to puter systems masks its fundamental reliance on nity board meetings. The NYPD would then have to puter systems masks its fundamental reliance on design a Web interface for the survey that would con- old-fashioned performance measures like crime and design a Web interface for the survey that would con- old-fashioned performance measures like crime and nect seamlessly with CompStat. Similarly, the NYPD arrest rates. CompStat thus fails to capture the effect nect seamlessly with CompStat. Similarly, the NYPD arrest rates. CompStat thus fails to capture the effect would have to figure out how to effectively feed infor- of policing strategies on police-community relations. would have to figure out how to effectively feed infor- of policing strategies on police-community relations. mation regarding CCRB complaints and use of force The additional performance measures described above mation regarding CCRB complaints and use of force The additional performance measures described above into the system. However, once the new system is are intended to complement rather than replace the into the system. However, once the new system is are intended to complement rather than replace the operational, it should be no more costly to maintain existing CompStat statistics. Adding police-commu- operational, it should be no more costly to maintain existing CompStat statistics. Adding police-commu- than the current system. The only major ongoing cost nity measures to CompStat will encourage the NYPD than the current system. The only major ongoing cost nity measures to CompStat will encourage the NYPD would be the annual community-satisfaction phone to internalize the otherwise invisible external costs of would be the annual community-satisfaction phone to internalize the otherwise invisible external costs of survey. In order to control costs, the survey could be policing strategies on legal cynicism. survey. In order to control costs, the survey could be policing strategies on legal cynicism.

Notes Notes

1 Mark H. Moore and Anthony A. Braga, “Measuring and College of Criminal Justice, last modified June 2010, 1 Mark H. Moore and Anthony A. Braga, “Measuring and College of Criminal Justice, last modified June 2010, Improving Police Performance: The Lessons of CompStat http://www.jjay.cuny.edu/forum/SQF_forum_summaryFI- Improving Police Performance: The Lessons of CompStat http://www.jjay.cuny.edu/forum/SQF_forum_summaryFI- and Its Progeny,” Policing: An International Journal of Police NALJUNE28.pdf and Its Progeny,” Policing: An International Journal of Police NALJUNE28.pdf Strategies and Management 26 (2003): 446. 6 Kirk and Papachristos, “Persistence of Neighborhood Strategies and Management 26 (2003): 446. 6 Kirk and Papachristos, “Persistence of Neighborhood 2 Moore and Braga (2003) examine several local police Violence.” 2 Moore and Braga (2003) examine several local police Violence.” departments that use CompStat or CompStat-like systems 7 Walker, Sense and Nonsense, 285-86. Citing Tom Tyler, Why departments that use CompStat or CompStat-like systems 7 Walker, Sense and Nonsense, 285-86. Citing Tom Tyler, Why to monitor their performance. Ibid., 449. People Obey the Law (New Haven: Yale University Press, to monitor their performance. Ibid., 449. People Obey the Law (New Haven: Yale University Press, 3 David S. Kirk and Andrew V. Papachristos, “Cultural 1990). 3 David S. Kirk and Andrew V. Papachristos, “Cultural 1990). Mechanisms and the Persistence of Neighborhood Vio- 8 Walker, Sense and Nonsense, 286. Mechanisms and the Persistence of Neighborhood Vio- 8 Walker, Sense and Nonsense, 286. lence,” American Journal of Sociology (forthcoming 2010). 9 Kirk and Papachristos, “Persistence of Neighborhood lence,” American Journal of Sociology (forthcoming 2010). 9 Kirk and Papachristos, “Persistence of Neighborhood Kirk and Papachristos define legal cynicism as “a cultural Violence.” Kirk and Papachristos define legal cynicism as “a cultural Violence.” orientation in which the law and the agents of its enforce- 10 Walker, Sense and Nonsense, 287. orientation in which the law and the agents of its enforce- 10 Walker, Sense and Nonsense, 287. ment, such as the police and the courts, are viewed as ille- 11 Jonathan D. Casper, Tom Tyler, and Bonnie Fisher, “Proce- ment, such as the police and the courts, are viewed as ille- 11 Jonathan D. Casper, Tom Tyler, and Bonnie Fisher, “Proce- gitimate, unresponsive, and ill-equipped to ensure public dural Justice in Felony Cases,” Law and Society Review 22 gitimate, unresponsive, and ill-equipped to ensure public dural Justice in Felony Cases,” Law and Society Review 22 safety.... [W]hile individuals may believe the substance (1988): 498. safety.... [W]hile individuals may believe the substance (1988): 498. of the law, antagonism toward and mistrust of the agents 12 Jacinta M. Gau and Rod K. Brunson, “Procedural Justice of the law, antagonism toward and mistrust of the agents 12 Jacinta M. Gau and Rod K. Brunson, “Procedural Justice of the law may propel some individuals toward violence and Order Maintenance Policing: A Study of Inner-City of the law may propel some individuals toward violence and Order Maintenance Policing: A Study of Inner-City simply because they feel they cannot rely upon the police Young Men’s Perceptions of Police Legitimacy,” Justice simply because they feel they cannot rely upon the police Young Men’s Perceptions of Police Legitimacy,” Justice to help them resolve grievances.” Quarterly 27 (2010): 258. to help them resolve grievances.” Quarterly 27 (2010): 258. 4 Samuel Walker, Sense and Nonsense about Crime, Drugs, 13 David Weisburd et al., “Reforming to Preserve: COMP- 4 Samuel Walker, Sense and Nonsense about Crime, Drugs, 13 David Weisburd et al., “Reforming to Preserve: COMP- and Communities (Belmont, CA: Wadsworth, 2008), 284. STAT and Strategic Problem Solving in American Polic- and Communities (Belmont, CA: Wadsworth, 2008), 284. STAT and Strategic Problem Solving in American Polic- 5 Jennifer Trone, “The New York Police Department’s Stop ing,” Criminology and Public Policy 2 (July 2003): 426. 5 Jennifer Trone, “The New York Police Department’s Stop ing,” Criminology and Public Policy 2 (July 2003): 426. and Frisk Policies: Are They Effective? Fair? Appropri- 14 Vincent E. Henry, “CompStat Management in the NYPD: and Frisk Policies: Are They Effective? Fair? Appropri- 14 Vincent E. Henry, “CompStat Management in the NYPD: ate? Summary of a NYC Bar Association Forum March Reducing Crime and Improving Quality of Life in New ate? Summary of a NYC Bar Association Forum March Reducing Crime and Improving Quality of Life in New 9, 2010,” Center on Race, Crime and Justice at John Jay York City,” in United Nations Asia and Far East Institute 9, 2010,” Center on Race, Crime and Justice at John Jay York City,” in United Nations Asia and Far East Institute

46 Vol. XVIII, 2010–2011 The Wagner Review 46 Vol. XVIII, 2010–2011 The Wagner Review for the Prevention of Crime and the Treatment of Offend- 27 Graham Rayman, “The NYPD Tapes: Inside Bed-Stuy’s for the Prevention of Crime and the Treatment of Offend- 27 Graham Rayman, “The NYPD Tapes: Inside Bed-Stuy’s ers, Resource Material No. 68: Crime Prevention in the 21st 81st Precinct,” Village Voice, May 4, 2010, accessed ers, Resource Material No. 68: Crime Prevention in the 21st 81st Precinct,” Village Voice, May 4, 2010, accessed Century—Effective Prevention of Crime Associated With Nov. 2, 2010, http://www.villagevoice.com/content/ Century—Effective Prevention of Crime Associated With Nov. 2, 2010, http://www.villagevoice.com/content/ Urbanization Based Upon Community Involvement and printVersion/1797847/ Urbanization Based Upon Community Involvement and printVersion/1797847/ Prevention of Youth Crime and Juvenile Delinquency 103, 28 Trone, “Stop and Frisk Policies,” 4. Prevention of Youth Crime and Juvenile Delinquency 103, 28 Trone, “Stop and Frisk Policies,” 4. accessed Nov. 2, 2010, http://www.unafei.or.jp/english/pdf/ 29 New York Civil Liberties Union, Stop and Frisk Practices, accessed Nov. 2, 2010, http://www.unafei.or.jp/english/pdf/ 29 New York Civil Liberties Union, Stop and Frisk Practices, PDF_rms/no68/ 07_Dr.%20Henry-1_p100-116.pdf; Dennis accessed Oct. 5 2010, http://www.nyclu.org/issues/racial- PDF_rms/no68/ 07_Dr.%20Henry-1_p100-116.pdf; Dennis accessed Oct. 5 2010, http://www.nyclu.org/issues/racial- C. Smith and William J. Bratton, “Performance Manage- justice/stop-and-frisk-practices. C. Smith and William J. Bratton, “Performance Manage- justice/stop-and-frisk-practices. ment in New York City: CompStat and the Revolution in 30 Ibid. ment in New York City: CompStat and the Revolution in 30 Ibid. Police Management,” in Quicker, Better, Cheaper: Managing 31 Ibid. Police Management,” in Quicker, Better, Cheaper: Managing 31 Ibid. Performance in American Government, ed. Dall W. Forsythe, 32 Ray Rivera, Al Baker, and Janet Roberts, “A Few Blocks, 4 Performance in American Government, ed. Dall W. Forsythe, 32 Ray Rivera, Al Baker, and Janet Roberts, “A Few Blocks, 4 ed. (Albany, NY: State University of New York Press 2001), Years, 52,000 Police Stops,” N.Y. Times, July 12, 2010, A1. ed. (Albany, NY: State University of New York Press 2001), Years, 52,000 Police Stops,” N.Y. Times, July 12, 2010, A1. 454. CompStat is an abbreviation of “Computerized Statis- 33 Civil liberties advocates argue that the disparity is caused 454. CompStat is an abbreviation of “Computerized Statis- 33 Civil liberties advocates argue that the disparity is caused tics.” Ibid. by racism, Associated Press, “Police stop more than 1 mil- tics.” Ibid. by racism, Associated Press, “Police stop more than 1 mil- 15 Ibid. lion people on street: Stop-and-frisk policies alarm civil 15 Ibid. lion people on street: Stop-and-frisk policies alarm civil 16 Moore and Braga, “Improving Police Performance,” 447. libertarians who worry about profiling,” msnbc.com, Oct. 8, 16 Moore and Braga, “Improving Police Performance,” 447. libertarians who worry about profiling,” msnbc.com, Oct. 8, 17 Smith and Bratton, “Performance Management,” 455, 462. 2009, accessed Nov. 2, 2010, http://www.msnbc.msn.com/ 17 Smith and Bratton, “Performance Management,” 455, 462. 2009, accessed Nov. 2, 2010, http://www.msnbc.msn.com/ 18 Ibid., 454 id/33230464/ns/us_news-crime_and_courts/, while others 18 Ibid., 454 id/33230464/ns/us_news-crime_and_courts/, while others 19 Ibid. argue that it is the result of differing crime rates among 19 Ibid. argue that it is the result of differing crime rates among 20 Moore and Braga, “Improving Police Performance,” 447. different communities and groups, Trone, “Stop and Frisk 20 Moore and Braga, “Improving Police Performance,” 447. different communities and groups, Trone, “Stop and Frisk 21 Smith and Bratton, “Performance Management,” 463. Policies,” 12. 21 Smith and Bratton, “Performance Management,” 463. Policies,” 12. 22 Ibid. 34 Gau and Brunson, “Procedural Justice,” 273. 22 Ibid. 34 Gau and Brunson, “Procedural Justice,” 273. 23 Graham Rayman, “The NYPD Tapes, Part 2: Bed-Stuy 35 Ibid., 264. 23 Graham Rayman, “The NYPD Tapes, Part 2: Bed-Stuy 35 Ibid., 264. Street Cops Ordered: Turn This Place Into a Ghost Town,” 36 Naima Ramos-Chapman, Voices from Brooklyn: Racial Street Cops Ordered: Turn This Place Into a Ghost Town,” 36 Naima Ramos-Chapman, Voices from Brooklyn: Racial Village Voice, May 11, 2010, accessed Nov. 2, 2010, http:// Profiling’s Part of Everyday Life Here (colorlines.com July Village Voice, May 11, 2010, accessed Nov. 2, 2010, http:// Profiling’s Part of Everyday Life Here (colorlines.com July www.villagevoice.com/content/printVersion/1808402/. See 29, 2010), accessed Nov. 2, 2010, http://colorlines.com/ www.villagevoice.com/content/printVersion/1808402/. See 29, 2010), accessed Nov. 2, 2010, http://colorlines.com/ also Dennis Smith, Associate Professor of Public Policy, archives/2010/08/voices_from_brooklyn_racial_profil- also Dennis Smith, Associate Professor of Public Policy, archives/2010/08/voices_from_brooklyn_racial_profil- NYU Wagner, Address at NYU Wagner’s Graduate School ings_part_of_ everyday _life_here.html. NYU Wagner, Address at NYU Wagner’s Graduate School ings_part_of_ everyday _life_here.html. of Public Service: Controversial Issues in Contemporary 37 Geoffrey P. Alpert and Mark H. Moore, “Measuring Police of Public Service: Controversial Issues in Contemporary 37 Geoffrey P. Alpert and Mark H. Moore, “Measuring Police Criminal Justice: NYPD’s Stop and Frisk (Oct. 12, 2010) Performance in the New Paradigm of Policing,” in Com- Criminal Justice: NYPD’s Stop and Frisk (Oct. 12, 2010) Performance in the New Paradigm of Policing,” in Com- (describing how precinct commanders are questioned at munity Policing: Contemporary Readings, Geoffrey P. Alpert (describing how precinct commanders are questioned at munity Policing: Contemporary Readings, Geoffrey P. Alpert CompStat meetings regarding, “What are you getting on and Alex Piquero eds. (Prospect Heights, IL: Waveland CompStat meetings regarding, “What are you getting on and Alex Piquero eds. (Prospect Heights, IL: Waveland your 250s?”). Press, 1998), 217. your 250s?”). Press, 1998), 217. 24 Gary McCarthy, police director, Newark Police Depart- 38 Jeremy Travis, “Measuring What Matters: Part Two: Devel- 24 Gary McCarthy, police director, Newark Police Depart- 38 Jeremy Travis, “Measuring What Matters: Part Two: Devel- ment, former NYPD deputy commissioner of operations, oping Measures of What the Police Do,” National Institute ment, former NYPD deputy commissioner of operations, oping Measures of What the Police Do,” National Institute Address at NYU Wagner’s Graduate School of Public of Justice (1997): 6-8. Address at NYU Wagner’s Graduate School of Public of Justice (1997): 6-8. Service: Controversial Issues in Contemporary Criminal 39 Alpert and Moore, “Measuring Police Performance,” 217. Service: Controversial Issues in Contemporary Criminal 39 Alpert and Moore, “Measuring Police Performance,” 217. Justice: NYPD’s Stop and Frisk (October 12, 2010). 40 Moore and Braga, “Improving Police Performance,” 439. Justice: NYPD’s Stop and Frisk (October 12, 2010). 40 Moore and Braga, “Improving Police Performance,” 439. 25 Dennis Smith, Associate Professor of Public Policy, New 41 Ibid., 444. 25 Dennis Smith, Associate Professor of Public Policy, New 41 Ibid., 444. York University Robert F. Wagner School of Public Service, 42 Ibid., 443. Moore and Braga note that “society as a whole York University Robert F. Wagner School of Public Service, 42 Ibid., 443. Moore and Braga note that “society as a whole Address at NYU Wagner’s Graduate School of Public Ser- has expectations about how the police will do their work as Address at NYU Wagner’s Graduate School of Public Ser- has expectations about how the police will do their work as vice: Controversial Issues in Contemporary Criminal Jus- well as what the results of their work will be. This is par- vice: Controversial Issues in Contemporary Criminal Jus- well as what the results of their work will be. This is par- tice: NYPD’s Stop and Frisk (October 12, 2010). Whether ticularly true when we are talking about how the police use tice: NYPD’s Stop and Frisk (October 12, 2010). Whether ticularly true when we are talking about how the police use stop-and-frisks actually reduce crime is still a matter of sig- the authority of their office: the powers to stop, to detain, stop-and-frisks actually reduce crime is still a matter of sig- the authority of their office: the powers to stop, to detain, nificant debate. See Transcript of Vera Institute of Justice, to arrest, and to use force to accomplish these goals.” nificant debate. See Transcript of Vera Institute of Justice, to arrest, and to use force to accomplish these goals.” Franklin Zimring: The Decline in Crime in New York City 43 Alpert and Moore, “Measuring Police Performance,” 225. Franklin Zimring: The Decline in Crime in New York City 43 Alpert and Moore, “Measuring Police Performance,” 225. (1990-2010) (Vera Voices Podcast Series, 2010), accessed 44 Ibid., 442. (1990-2010) (Vera Voices Podcast Series, 2010), accessed 44 Ibid., 442. Nov. 2, 2010, http://www.vera.org/files/franklin-zimring- 45 Moore and Braga, “Improving Police Performance,” 450. Nov. 2, 2010, http://www.vera.org/files/franklin-zimring- 45 Moore and Braga, “Improving Police Performance,” 450. the-decline-in-crime-new-york-city-transcription.pdf. See, e.g., Richland County, South Carolina, Sheriff’s the-decline-in-crime-new-york-city-transcription.pdf. See, e.g., Richland County, South Carolina, Sheriff’s 26 McCarthy, Address at NYU Wagner. Department, Richland County Community Survey, 26 McCarthy, Address at NYU Wagner. Department, Richland County Community Survey,

Improving the NYPD’s Smirniotopoulos 47 Improving the NYPD’s Smirniotopoulos 47 Performance Management System Performance Management System accessed Nov. 2, 2010, http://www.rcsd.net/survey1.htm; 61 Smith and Bratton, “Performance Management,” 462. accessed Nov. 2, 2010, http://www.rcsd.net/survey1.htm; 61 Smith and Bratton, “Performance Management,” 462. North Miami Beach, Florida, Police Department, North Dean Dabney has similarly found that, in another jurisdic- North Miami Beach, Florida, Police Department, North Dean Dabney has similarly found that, in another jurisdic- Miami Beach Police Department Community Satisfaction tion that implemented a CompStat-type performance- Miami Beach Police Department Community Satisfaction tion that implemented a CompStat-type performance- Survey, accessed Nov. 2, 2010, http://www.surveymonkey. management system, rank-and-file officers routinely Survey, accessed Nov. 2, 2010, http://www.surveymonkey. management system, rank-and-file officers routinely com/s.asp?u=527182527592. expressed the perception that the system was intended com/s.asp?u=527182527592. expressed the perception that the system was intended 46 Moore and Braga, “Improving Police Performance,” 449. to encourage them to simply arrest more people. Dean 46 Moore and Braga, “Improving Police Performance,” 449. to encourage them to simply arrest more people. Dean 47 Dennis Rosenbaum et al., “Measuring Police and Com- Dabney, Observation Regarding Key Operational Realities in 47 Dennis Rosenbaum et al., “Measuring Police and Com- Dabney, Observation Regarding Key Operational Realities in munity Performance Using Web-Based Surveys: Findings a CompStat Model of Policing, 27 Justice Q. 1, 37-40 (2010). munity Performance Using Web-Based Surveys: Findings a CompStat Model of Policing, 27 Justice Q. 1, 37-40 (2010). From the Chicago Internet Project” (Jan. 2008): v-ix, 62 Smith and Bratton, “Performance Management,” 462. From the Chicago Internet Project” (Jan. 2008): v-ix, 62 Smith and Bratton, “Performance Management,” 462. accessed Nov. 2, 2010, http://www.ncjrs.gov/pdffiles1/nij/ 63 Gau and Brunson, “Procedural Justice,” 274. accessed Nov. 2, 2010, http://www.ncjrs.gov/pdffiles1/nij/ 63 Gau and Brunson, “Procedural Justice,” 274. grants/221076.pdf. 64 Ibid. grants/221076.pdf. 64 Ibid. 48 Ibid. 65 Moore and Braga, “Improving Police Performance,” 441. 48 Ibid. 65 Moore and Braga, “Improving Police Performance,” 441. 49 Ibid., 10. 66 The controversy over the NYPD’s use of stop-and-frisk has 49 Ibid., 10. 66 The controversy over the NYPD’s use of stop-and-frisk has 50 Ibid. been the subject of series of articles by the New York Times. 50 Ibid. been the subject of series of articles by the New York Times. 51 Ibid., viii-ix. Ray Rivera, Al Baker, and Janet Roberts, “A Few Blocks, 51 Ibid., viii-ix. Ray Rivera, Al Baker, and Janet Roberts, “A Few Blocks, 52 Ibid., ix. 4 Years, 52,000 Police Stops,” New York Times, July 12, 52 Ibid., ix. 4 Years, 52,000 Police Stops,” New York Times, July 12, 53 Moore and Braga, “Improving Police Performance,” 443. 2010, A1; Al Baker, “New York Minorities More Likely to 53 Moore and Braga, “Improving Police Performance,” 443. 2010, A1; Al Baker, “New York Minorities More Likely to 54 Ibid. Be Frisked,” New York Times, May 13, 2010, A1. It has also 54 Ibid. Be Frisked,” New York Times, May 13, 2010, A1. It has also 55 Rosenbaum et al., “Web-Based Surveys,” x. received extensive coverage in other media outlets. Jillian 55 Rosenbaum et al., “Web-Based Surveys,” x. received extensive coverage in other media outlets. Jillian 56 Moore and Braga, “Improving Police Performance,” 443. Schear, “City’s Stop-and-Frisks, Marijuana Arrests Raise 56 Moore and Braga, “Improving Police Performance,” 443. Schear, “City’s Stop-and-Frisks, Marijuana Arrests Raise 57 Alpert and Moore, “Measuring Police Performance,” 222. Controversy,” NBC, July 23, 2010, accessed Nov. 2, 2010, 57 Alpert and Moore, “Measuring Police Performance,” 222. Controversy,” NBC, July 23, 2010, accessed Nov. 2, 2010, 58 Ibid. http://www.nbcnewyork.com/news/local-beat/Marijuana- 58 Ibid. http://www.nbcnewyork.com/news/local-beat/Marijuana- 59 Lower income populations often do not have regular access arrests-99108834.html. 59 Lower income populations often do not have regular access arrests-99108834.html. to the internet, limiting their access to Web-based surveys. 67 Center for Constitutional Rights, Floyd et al. v. City of to the internet, limiting their access to Web-based surveys. 67 Center for Constitutional Rights, Floyd et al. v. City of They may also move frequently, preventing accurate sam- New York et al., accessed Nov. 3, 2010, http://ccrjustice. They may also move frequently, preventing accurate sam- New York et al., accessed Nov. 3, 2010, http://ccrjustice. pling through mail surveys. org/ourcases/current-cases/floyd-et-al pling through mail surveys. org/ourcases/current-cases/floyd-et-al 60 For example, the survey would not be administered to 68 The NYPD used police recruits to conduct such a survey 60 For example, the survey would not be administered to 68 The NYPD used police recruits to conduct such a survey a random sample, creating a significant likelihood of in 2007. “NYPD Conducts Citizen Satisfaction Survey: a random sample, creating a significant likelihood of in 2007. “NYPD Conducts Citizen Satisfaction Survey: selection bias. As well, there is likely to be a response bias Survey Conducted in Five Languages by Current Police selection bias. As well, there is likely to be a response bias Survey Conducted in Five Languages by Current Police that will skew the data toward negative perceptions of Academy Class,” New York City Police Department, that will skew the data toward negative perceptions of Academy Class,” New York City Police Department, the police, as individuals who have negative encounters December 7, 2007, accessed Nov. 2, 2010, http://www.nyc. the police, as individuals who have negative encounters December 7, 2007, accessed Nov. 2, 2010, http://www.nyc. are more likely to take the time to locate and fill out the gove/html/nypd/html/pr/pr_2007_060.shtml. are more likely to take the time to locate and fill out the gove/html/nypd/html/pr/pr_2007_060.shtml. survey. survey.

48 Vol. XVIII, 2010–2011 The Wagner Review 48 Vol. XVIII, 2010–2011 The Wagner Review Where the Water Meets the Road: Where the Water Meets the Road: Lessons for Stormwater Capture Lessons for Stormwater Capture on New York Streets on New York Streets

ALEXANDER J. WOLK ALEXANDER J. WOLK

As extreme As extreme ABSTRACT weather ABSTRACT weather events continue to test the resilience of cities events continue to test the resilience of cities the world over, many local authorities face the the world over, many local authorities face the challenge of adapting inadequate or outdated challenge of adapting inadequate or outdated infrastructure in order to prevent contamina- infrastructure in order to prevent contamina- tion of local waterways and ensure access tion of local waterways and ensure access to clean water. Though water quality at the to clean water. Though water quality at the municipal level tends to fall under the juris- municipal level tends to fall under the jurisdiction of a single resource agency, such as diction of a single resource agency, such as a water utility, the extent and nature of this a water utility, the extent and nature of this challenge demands a more collaborative re- challenge demands a more collaborative response among agencies and stakeholders. In sponse among agencies and stakeholders. In the United States, cities like Seattle, Chicago, the United States, cities like Seattle, Chicago, and Philadelphia, through a variety of institu- and Philadelphia, through a variety of institutional arrangements, have begun to address tional arrangements, have begun to address issues such as heavy flooding and combined issues such as heavy flooding and combined sewer overflows (CSOs) by employing on- sewer overflows (CSOs) by employing on- site stormwater management solutions on site stormwater management solutions on public streets and sidewalks. Based on the public streets and sidewalks. Based on the policy framework and engagement strategies policy framework and engagement strategies through which those projects were conceived, through which those projects were conceived, this article suggests how New York City— this article suggests how New York City— particularly, the New York City Department of particularly, the New York City Department of Transportation—can be a catalyst for long- Transportation—can be a catalyst for long- term sustainability by linking local transpor- term sustainability by linking local transportation policy to the physical environment and tation policy to the physical environment and working across agencies to implement green working across agencies to implement green infrastructure in the public right-of-way while infrastructure in the public right-of-way while balancing the need for transit, pedestrian balancing the need for transit, pedestrian safety, and public space. safety, and public space.

Where the Water Meets the Road WOLK 49 Where the Water Meets the Road WOLK 49 “A road’s environmental footprint extends far beyond the edge “A road’s environmental footprint extends far beyond the edge of its pavement. In fact, nationwide the ‘road-effect zone’ of its pavement. In fact, nationwide the ‘road-effect zone’ is estimated to be 15 to 20 times as large as the actual paved is estimated to be 15 to 20 times as large as the actual paved right of way… Transportation infrastructure has significant The link between right of way… Transportation infrastructure has significant The link between direct and indirect effects on the natural environment. Roads automobile emissions direct and indirect effects on the natural environment. Roads automobile emissions directly affect wildlife habitat, ecosystems, and water quality and air quality has long directly affect wildlife habitat, ecosystems, and water quality and air quality has long through land consumption, roadkill, habitat fragmentation, been a concern among through land consumption, roadkill, habitat fragmentation, been a concern among and replacement of natural cover with impervious surfaces and environmentalists and and replacement of natural cover with impervious surfaces and environmentalists and invasive species.” “ environmental justice invasive species.” “ environmental justice —Second Nature: Improving Transportation Without Putting advocates alike, and has —Second Nature: Improving Transportation Without Putting advocates alike, and has Nature Second been at the forefront Nature Second been at the forefront of national debates on of national debates on “What if, instead of grabbing it in pipes, rain water was slowed climate change for some “What if, instead of grabbing it in pipes, rain water was slowed climate change for some and stopped at the source, in private yards and parking lots time. Less publicized, and stopped at the source, in private yards and parking lots time. Less publicized, and along the city’s streets, and allowed to soak into the earth? though equally as and along the city’s streets, and allowed to soak into the earth? though equally as What if you could recreate or mimic the natural systems that important, is the link What if you could recreate or mimic the natural systems that important, is the link existed before development, before roofs and driveways and between transportation existed before development, before roofs and driveways and between transportation streets took over the land? What would that look like?” infrastructure and streets took over the land? What would that look like?” infrastructure and —Seattle’s Natural Drainage Systems: A Low Impact Approach to water quality. —Seattle’s Natural Drainage Systems: A Low Impact Approach to water quality. Stormwater Management Stormwater Management

Much of the discussion around the connection Much of the discussion around the connection between surface-transportation policy and environ- between surface-transportation policy and environ- management through more integrative street design management through more integrative street design mental sustainability tends to focus on renewable mental sustainability tends to focus on renewable and “complete streets” policies. Particular attention and “complete streets” policies. Particular attention energy, alternative fuels, and mass transit. While energy, alternative fuels, and mass transit. While will be paid to the programmatic opportunities and will be paid to the programmatic opportunities and such interventions are necessary in order to reduce such interventions are necessary in order to reduce institutional challenges around the design, imple- institutional challenges around the design, imple- greenhouse-gas emissions and our carbon footprint as greenhouse-gas emissions and our carbon footprint as mentation, and maintenance of green infrastructure. mentation, and maintenance of green infrastructure. a nation, they generally take long periods of time to a nation, they generally take long periods of time to The first section will cover key issues around water The first section will cover key issues around water implement and are subject to the whim of state and implement and are subject to the whim of state and quality in urban areas in the United States and New quality in urban areas in the United States and New federal authorities. Fortunately, municipal planning federal authorities. Fortunately, municipal planning York City, followed by a brief survey of various design York City, followed by a brief survey of various design agencies are well-positioned to implement policies agencies are well-positioned to implement policies and programs that, while perhaps not on the same interventions or BMPs to address stormwater run- and programs that, while perhaps not on the same interventions or BMPs to address stormwater run- scale, can work in concert to help achieve more envi- off. The third section will provide the regulatory and scale, can work in concert to help achieve more envi- off. The third section will provide the regulatory and ronmentally sustainable outcomes around another institutional context around stormwater manage- ronmentally sustainable outcomes around another institutional context around stormwater manage- important issue, water quality and stormwater man- ment at the federal and state levels. Section four will important issue, water quality and stormwater man- ment at the federal and state levels. Section four will agement. Innovative infrastructure enhancements, include a survey of several North American cities that agement. Innovative infrastructure enhancements, include a survey of several North American cities that known as best management practices (BMPs), source have successfully integrated stormwater management known as best management practices (BMPs), source have successfully integrated stormwater management controls,1 or green infrastructure,2 have redefined into broader transportation and streetscape initiatives, controls,1 or green infrastructure,2 have redefined into broader transportation and streetscape initiatives, the role of the public right-of-way in many cities with discussion of feasible interventions and success- the role of the public right-of-way in many cities with discussion of feasible interventions and success- by ensuring that streets and sidewalks perform valu- ful institutional arrangements. Finally, drawing from by ensuring that streets and sidewalks perform valu- ful institutional arrangements. Finally, drawing from able ecosystem services,3 while balancing the need for experience in other cities, the last section will look at able ecosystem services,3 while balancing the need for experience in other cities, the last section will look at transit, pedestrian safety, and public space. the case of New York City and how its Department of transit, pedestrian safety, and public space. the case of New York City and how its Department of Transportation might adopt new strategies to imple- Transportation might adopt new strategies to imple- Although cities like Seattle and Philadelphia have ment BMPs to achieve the city’s clean-water objec- Although cities like Seattle and Philadelphia have ment BMPs to achieve the city’s clean-water objec- had success in retrofitting their streets, sidewalks, and tives, as laid out in PlaNYC 2030, Mayor Bloomberg’s had success in retrofitting their streets, sidewalks, and tives, as laid out in PlaNYC 2030, Mayor Bloomberg’s other built infrastructure, other cities have lagged 2007 sustainability plan for New York City. This will other built infrastructure, other cities have lagged 2007 sustainability plan for New York City. This will behind, often constrained by traditional top-down include a review of agencies involved with the design, behind, often constrained by traditional top-down include a review of agencies involved with the design, approaches and lack of government leadership. This implementation, and maintenance of green infra- approaches and lack of government leadership. This implementation, and maintenance of green infra- paper will explore the role that municipal transporta- structure, and describe opportunities for a collabora- paper will explore the role that municipal transporta- structure, and describe opportunities for a collaboration agencies can play regarding on-site stormwater tive working arrangement and policy framework. tion agencies can play regarding on-site stormwater tive working arrangement and policy framework.

50 Vol. XVIII, 2010–2011 The Wagner Review 50 Vol. XVIII, 2010–2011 The Wagner Review Transportation wastewater (including 2 billion gallons of untreated sew- Transportation wastewater (including 2 billion gallons of untreated sew- Infrastructure and age) into nearby waterways.10 Infrastructure and age) into nearby waterways.10 Stormwater Management Stormwater Management While New York City has managed to improve the While New York City has managed to improve the The link between automobile emissions and air quality health of its waterways since the passage of the Clean The link between automobile emissions and air quality health of its waterways since the passage of the Clean has long been a concern among environmentalists and Water Act, runoff, or what is often referred to as has long been a concern among environmentalists and Water Act, runoff, or what is often referred to as environmental-justice advocates alike, and has been at nonpoint source pollution,11 is the leading cause of environmental-justice advocates alike, and has been at nonpoint source pollution,11 is the leading cause of the forefront of national debates on climate change for water-quality problems in the U.S.12 Although New the forefront of national debates on climate change for water-quality problems in the U.S.12 Although New some time. Less publicized, though equally important, is York’s harbor is cleaner than it has been in the past some time. Less publicized, though equally important, is York’s harbor is cleaner than it has been in the past the link between transportation infrastructure and water 100 years,13 CSOs are still a public health concern, as the link between transportation infrastructure and water 100 years,13 CSOs are still a public health concern, as quality. While clean-water issues may not receive as much they are the most significant source of disease-causing quality. While clean-water issues may not receive as much they are the most significant source of disease-causing media attention as greenhouse-gas emissions and climate pathogens in the waters surrounding the city.14 media attention as greenhouse-gas emissions and climate pathogens in the waters surrounding the city.14 change, this is likely to change as extreme weather events change, this is likely to change as extreme weather events become more common. Many urban and coastal areas Best Management Practices become more common. Many urban and coastal areas Best Management Practices already face significant challenges maintaining potable for Stormwater Management already face significant challenges maintaining potable for Stormwater Management water supplies and keeping waterfront areas open for pub- in Urban Areas water supplies and keeping waterfront areas open for pub- in Urban Areas lic recreation. lic recreation. A number of key design strategies, or BMPs, for storm- A number of key design strategies, or BMPs, for storm- Currently, the U.S. Environmental Protection Agency water management are recommended by the United Currently, the U.S. Environmental Protection Agency water management are recommended by the United (EPA) ranks runoff from urbanized areas as the leading States Department of Transportation’s Federal Highway (EPA) ranks runoff from urbanized areas as the leading States Department of Transportation’s Federal Highway source of water-quality impairments to estuaries in the Administration (FHWA) for “ultra urban areas.” Because source of water-quality impairments to estuaries in the Administration (FHWA) for “ultra urban areas.” Because U.S.4 Because most urban land is covered by impervious densely populated cities lack adequate space to implement U.S.4 Because most urban land is covered by impervious densely populated cities lack adequate space to implement surfaces (e.g., buildings, streets, and parking lots), precipi- traditional BMPs, such as swales, rain gardens, detention surfaces (e.g., buildings, streets, and parking lots), precipi- traditional BMPs, such as swales, rain gardens, detention tation does not infiltrate soil as it would under natural ponds, etc., they must adapt the public right-of-way itself tation does not infiltrate soil as it would under natural ponds, etc., they must adapt the public right-of-way itself or “predevelopment” conditions. Instead, runoff from in order to control runoff. According to the FHWA’s or “predevelopment” conditions. Instead, runoff from in order to control runoff. According to the FHWA’s impervious surfaces containing sediment, oil, and other Stormwater Best Management Practices in an Ultra-Urban impervious surfaces containing sediment, oil, and other Stormwater Best Management Practices in an Ultra-Urban toxins from motor vehicles, pesticides, road salts, and Setting: Selection and Monitoring, the following criteria toxins from motor vehicles, pesticides, road salts, and Setting: Selection and Monitoring, the following criteria heavy metals is conveyed to storm drains and, at times, distinguish BMPs for ultra urban areas: heavy metals is conveyed to storm drains and, at times, distinguish BMPs for ultra urban areas: nearby waterways. Throughout much of New York City nearby waterways. Throughout much of New York City (about 65 percent of the city’s sewered area), urban run- •“Limited space available for BMP implementation (about 65 percent of the city’s sewered area), urban run- •“Limited space available for BMP implementation off feeds into storm drains, which connect to a combined (less than 0.5 ha [1 ac]) off feeds into storm drains, which connect to a combined (less than 0.5 ha [1 ac]) sewer system5 that eventually leads to one of the city’s 13 •“Drainage area imperviousness greater than 50 per- sewer system5 that eventually leads to one of the city’s 13 •“Drainage area imperviousness greater than 50 per- water pollution control plants (WPCPs) for treatment cent water pollution control plants (WPCPs) for treatment cent before discharge. However, while the WPCPs are designed •“Property value of land over $215 per square meter before discharge. However, while the WPCPs are designed •“Property value of land over $215 per square meter to handle twice the level of “dry weather sanitary flows,”6 ($20 per square foot) to handle twice the level of “dry weather sanitary flows,”6 ($20 per square foot) this extra capacity cannot always accommodate sanitary •“Location of BMP in right-of-way (only available this extra capacity cannot always accommodate sanitary •“Location of BMP in right-of-way (only available and stormwater flows during wet weather (in the case of space) and stormwater flows during wet weather (in the case of space) combined sewers).7 In fact, a half-inch rain event can lead •“Existence of build-out conditions at the site (lot-line combined sewers).7 In fact, a half-inch rain event can lead •“Existence of build-out conditions at the site (lot-line to a combined sewer overflow (CSO) when stormwater to lot-line development).”15 to a combined sewer overflow (CSO) when stormwater to lot-line development).”15 exceeds the capacity of the sewer system and flows are exceeds the capacity of the sewer system and flows are diverted through 433 outfalls that discharge directly into The aim of ultra-urban stormwater BMPs are to collect, diverted through 433 outfalls that discharge directly into The aim of ultra-urban stormwater BMPs are to collect, local rivers, estuaries, and bays. On average, there about store, and treat the first half-inch of runoff from impervi- local rivers, estuaries, and bays. On average, there about store, and treat the first half-inch of runoff from impervi- 69 CSO events annually in New York City, 43 of which ous areas.16 There are a number of structural BMPs that 69 CSO events annually in New York City, 43 of which ous areas.16 There are a number of structural BMPs that occur because of a half-inch or less rainfall event.8 While municipalities can employ to achieve these goals. These occur because of a half-inch or less rainfall event.8 While municipalities can employ to achieve these goals. These heavier rain events account for larger total discharges by include: heavier rain events account for larger total discharges by include: volume, smaller CSO events have more concentrated pol- volume, smaller CSO events have more concentrated pollutant levels because there is less diluting stormwater and •Infiltration technologies (bioretention): physical, lutant levels because there is less diluting stormwater and •Infiltration technologies (bioretention): physical, because they contain the “first flush” of concentrated pol- chemical, and biological processes between soils and because they contain the “first flush” of concentrated pol- chemical, and biological processes between soils and lutants (particularly fecal coliform and other pathogens).9 water to filter out sediments from runoff lutants (particularly fecal coliform and other pathogens).9 water to filter out sediments from runoff Annually, the city discharges about 27 billion gallons of •Filtering systems: sedimentation areas that retain the Annually, the city discharges about 27 billion gallons of •Filtering systems: sedimentation areas that retain the

Where the Water Meets the Road WOLK 51 Where the Water Meets the Road WOLK 51 largest particles, with chambers that filter and remove Interagency Cooperation largest particles, with chambers that filter and remove Interagency Cooperation soluble constituents soluble constituents •Vegetated swales and filter strips: areas that capture While regulation and enforcement of water quality and •Vegetated swales and filter strips: areas that capture While regulation and enforcement of water quality and and filter runoff into soil, with vegetation used for stormwater management generally fall under the jurisdic- and filter runoff into soil, with vegetation used for stormwater management generally fall under the jurisdic- biological uptake of constituents tion of the EPA at the federal level, states and municipali- biological uptake of constituents tion of the EPA at the federal level, states and municipali- •Water quality inlets: oil/grit separators, water-quality ties must decide how agencies with multiple jurisdictions •Water quality inlets: oil/grit separators, water-quality ties must decide how agencies with multiple jurisdictions access holes, and catch basin inserts to remove sedi- over a single watershed might work together. According access holes, and catch basin inserts to remove sedi- over a single watershed might work together. According ments and trap debris to the FHWA’s Stormwater Best Management Practices in ments and trap debris to the FHWA’s Stormwater Best Management Practices in •Porous pavements: paved areas that allow stormwater an Ultra-Urban Setting, a department of transportation •Porous pavements: paved areas that allow stormwater an Ultra-Urban Setting, a department of transportation to percolate and infiltrate the soil below.17 (DOT) “must determine the relative contribution that to percolate and infiltrate the soil below.17 (DOT) “must determine the relative contribution that its activities make to the total stormwater system within its activities make to the total stormwater system within Regulatory Framework for the local jurisdiction and what structural components Regulatory Framework for the local jurisdiction and what structural components Stormwater Management of the system will be the DOT’s responsibility.” At the Stormwater Management of the system will be the DOT’s responsibility.” At the state level, this has translated to nearly every state DOT state level, this has translated to nearly every state DOT In 1972 the federal government passed the Clean Water having a guide for the development and design of storm- In 1972 the federal government passed the Clean Water having a guide for the development and design of storm- Act (CWA), which aimed to “reduce direct pollutant dis- water BMPs and over half of all states having developed Act (CWA), which aimed to “reduce direct pollutant dis- water BMPs and over half of all states having developed charges into waterways, finance municipal wastewater highway runoff manuals.23 While state level activities charges into waterways, finance municipal wastewater highway runoff manuals.23 While state level activities treatment facilities, and manage polluted runoff.”18 The may be less applicable for a municipal planning agency treatment facilities, and manage polluted runoff.”18 The may be less applicable for a municipal planning agency CWA puts responsibility on both the EPA and the states or city DOT, there are lessons to be drawn from highway CWA puts responsibility on both the EPA and the states or city DOT, there are lessons to be drawn from highway to identify and regulate point and nonpoint sources of stormwater management projects, particularly in terms to identify and regulate point and nonpoint sources of stormwater management projects, particularly in terms pollution.19 Initially the CWA focused on regulating point of interagency collaboration and actual BMPs employed. pollution.19 Initially the CWA focused on regulating point of interagency collaboration and actual BMPs employed. source pollution such as sewage plants and industrial For example, some state DOTs have engaged in partner- source pollution such as sewage plants and industrial For example, some state DOTs have engaged in partner- facilities; however, it has evolved over the years to include ships with federal and state resource agencies, which is a facilities; however, it has evolved over the years to include ships with federal and state resource agencies, which is a nonpoint runoff from streets and construction sites.20 requirement under the Transportation Equity Act for the nonpoint runoff from streets and construction sites.20 requirement under the Transportation Equity Act for the 21st Century.24 21st Century.24 While the federal government regulates stormwater While the federal government regulates stormwater through various federal permitting programs, the actual Successful Models through various federal permitting programs, the actual Successful Models approaches to managing runoff from local roads and in North American Cities approaches to managing runoff from local roads and in North American Cities highways are developed by municipalities.21 The federal highways are developed by municipalities.21 The federal Nonpoint Source Pollution Control Program authorizes Despite the challenges facing city agencies across Nonpoint Source Pollution Control Program authorizes Despite the challenges facing city agencies across the EPA to provide grants to states for the implementa- the country, several North American cities are at the the EPA to provide grants to states for the implementa- the country, several North American cities are at the tion and management of nonpoint source programs. forefront of stormwater management, particularly tion and management of nonpoint source programs. forefront of stormwater management, particularly Particularly relevant to cities like New York is the Coastal in terms of integrating green infrastructure in the Particularly relevant to cities like New York is the Coastal in terms of integrating green infrastructure in the Zone Act Reauthorization Amendments, which require public right-of-way. Seattle’s Street Edge Alterna- Zone Act Reauthorization Amendments, which require public right-of-way. Seattle’s Street Edge Alterna- states to develop a coastal nonpoint pollution control pro- tives program, Chicago’s Green Alley program, and states to develop a coastal nonpoint pollution control pro- tives program, Chicago’s Green Alley program, and gram and aim to enhance state and local efforts to manage Philadelphia’s Green City, Clean Waters CSO Long- gram and aim to enhance state and local efforts to manage Philadelphia’s Green City, Clean Waters CSO Long- land-use activities that degrade coastal water and habitats, Term Control Plan all offer a range of lessons for cit- land-use activities that degrade coastal water and habitats, Term Control Plan all offer a range of lessons for cit- particularly in urban areas. ies trying to treat and absorb water onsite rather than particularly in urban areas. ies trying to treat and absorb water onsite rather than through traditional end-of-pipe solutions. through traditional end-of-pipe solutions. In response to federal regulations, many states have In response to federal regulations, many states have developed nonpoint-source-management programs that Seattle: Street Edge developed nonpoint-source-management programs that Seattle: Street Edge include guidance materials on BMPs for stormwater Alternatives Program include guidance materials on BMPs for stormwater Alternatives Program management, demonstration projects for BMPs under In response to high levels of pollution threatening management, demonstration projects for BMPs under In response to high levels of pollution threatening various land-use practices, and information on monitor- the Puget Sound’s Chinook salmon, Seattle Public various land-use practices, and information on monitor- the Puget Sound’s Chinook salmon, Seattle Public ing programs and impact assessments.22 While such pro- Utilities (SPU), which was created as a combined ing programs and impact assessments.22 While such pro- Utilities (SPU), which was created as a combined grams provide guidance, urban areas like New York City solid waste, water, wastewater, and drainage utility grams provide guidance, urban areas like New York City solid waste, water, wastewater, and drainage utility are required by the state to get permits for any stormwater in 1996, decided to intervene by developing its Natu- are required by the state to get permits for any stormwater in 1996, decided to intervene by developing its Natu- discharges, develop a stormwater-management program, ral Drainage Systems program, consisting of a series discharges, develop a stormwater-management program, ral Drainage Systems program, consisting of a series and submit annual reports to the New York State Depart- of on-site stormwater controls, including vegetated and submit annual reports to the New York State Depart- of on-site stormwater controls, including vegetated ment of Environmental Conservation. swales, stormwater cascades, and wetland ponds, to ment of Environmental Conservation. swales, stormwater cascades, and wetland ponds, to

52 Vol. XVIII, 2010–2011 The Wagner Review 52 Vol. XVIII, 2010–2011 The Wagner Review stop pollution upstream. Because areas around down- portation (CDOT)’s Green Alley program, which stop pollution upstream. Because areas around down- portation (CDOT)’s Green Alley program, which town Seattle were intensely developed, applying NDS was initially a pilot to test permeable pavement in town Seattle were intensely developed, applying NDS was initially a pilot to test permeable pavement in in the right-of-way required smaller-scale applications residential alleyways in order to mitigate flooding in the right-of-way required smaller-scale applications residential alleyways in order to mitigate flooding and other low impact development25 techniques. In on the city’s North Side. Because the city was built and other low impact development25 techniques. In on the city’s North Side. Because the city was built SPU’s Natural Drainage Systems pilot project, the on a wetland, it continually suffers from drainage SPU’s Natural Drainage Systems pilot project, the on a wetland, it continually suffers from drainage Street Edge Alternatives program, the SPU staff held problems. This results in large puddles forming Street Edge Alternatives program, the SPU staff held problems. This results in large puddles forming public meetings where they presented proposed plans along the 1,900-mile network of alleyways (the public meetings where they presented proposed plans along the 1,900-mile network of alleyways (the for several residential blocks. Neighbors then wrote largest worldwide31), which are not connected to for several residential blocks. Neighbors then wrote largest worldwide31), which are not connected to petitions in order to take part in the pilot. Once the the city’s sewer system. In 2006, about 40 percent petitions in order to take part in the pilot. Once the the city’s sewer system. In 2006, about 40 percent candidate block was chosen, a series of meetings were of the alleys needed resurfacing but CDOT found candidate block was chosen, a series of meetings were of the alleys needed resurfacing but CDOT found scheduled to talk through design, parking, drainage, that resurfacing made puddling worse and that it scheduled to talk through design, parking, drainage, that resurfacing made puddling worse and that it and maintenance issues.26 was not feasible or cost effective to connect them and maintenance issues.26 was not feasible or cost effective to connect them to the sewer system.32 to the sewer system.32 While the program was highly successful from a While the program was highly successful from a stormwater-management perspective—achieving In response, the city has begun to repave alleys with stormwater-management perspective—achieving In response, the city has begun to repave alleys with a 98 percent reduction for a two-year storm event27 permeable pavement, which reduces the rate and vol- a 98 percent reduction for a two-year storm event27 permeable pavement, which reduces the rate and vol- through the use of contoured swales, culverts, trees, ume of stormwater runoff, recharges underground through the use of contoured swales, culverts, trees, ume of stormwater runoff, recharges underground and shrubs—it was also less costly than traditional aquifers, and filters out pollutants and debris. The and shrubs—it was also less costly than traditional aquifers, and filters out pollutants and debris. The stormwater infrastructure and provided aesthetic city employs four different approaches, ranging from stormwater infrastructure and provided aesthetic city employs four different approaches, ranging from improvements to the streetscape. SPU staff attributes permeable pavement with a conventional drainage improvements to the streetscape. SPU staff attributes permeable pavement with a conventional drainage the success of the pilot to the collaborative nature system to a subsoil filtration system.33 As of 2007, the the success of the pilot to the collaborative nature system to a subsoil filtration system.33 As of 2007, the of the project.28 Residents (who were responsible for city paid $45 per cubic yard for permeable concrete of the project.28 Residents (who were responsible for city paid $45 per cubic yard for permeable concrete maintenance) were engaged early and continuously (not including a filtration layer), compared with $50 maintenance) were engaged early and continuously (not including a filtration layer), compared with $50 throughout the life of the project. Likewise, inter- per cubic yard or more for conventional concrete.34 throughout the life of the project. Likewise, inter- per cubic yard or more for conventional concrete.34 agency coordination was key, as early resistance was Likewise, maintenance costs were kept within bud- agency coordination was key, as early resistance was Likewise, maintenance costs were kept within bud- felt from the Seattle Department of Transportation, get, through the use of existing street-sweeping felt from the Seattle Department of Transportation, get, through the use of existing street-sweeping whose leaders were skeptical of the program’s safety, equipment. As of 2010, more than 100 green alleys whose leaders were skeptical of the program’s safety, equipment. As of 2010, more than 100 green alleys integrity, and applicability.29 However, many of these had been installed. integrity, and applicability.29 However, many of these had been installed. concerns were addressed through the formation of concerns were addressed through the formation of an interdepartmental project team, which was active While the Green Alley program achieves similar goals an interdepartmental project team, which was active While the Green Alley program achieves similar goals during the design and construction process. Finally, a as Seattle’s Street Edge Alternatives program, it is during the design and construction process. Finally, a as Seattle’s Street Edge Alternatives program, it is partnership was formed with the University of Wash- much less collaborative. The Green Alley Handbook partnership was formed with the University of Wash- much less collaborative. The Green Alley Handbook ington to monitor pre- and post-construction runoff. provides information on private BMP initiatives for ington to monitor pre- and post-construction runoff. provides information on private BMP initiatives for homeowners, as well as dos and don’ts for adjacent homeowners, as well as dos and don’ts for adjacent Chicago: Green Alley Program property owners and information on what to expect Chicago: Green Alley Program property owners and information on what to expect While cities like Seattle and Portland are renowned for during construction, but residents are not explicitly While cities like Seattle and Portland are renowned for during construction, but residents are not explicitly their stormwater-management programs, cities outside engaged through the program, and maintenance is their stormwater-management programs, cities outside engaged through the program, and maintenance is the Pacific Northwest have also developed innovative handled by the city. the Pacific Northwest have also developed innovative handled by the city. programs to control runoff. In Chicago, under Mayor programs to control runoff. In Chicago, under Mayor Daley’s leadership, a comprehensive environmental Philadelphia: Green City, Daley’s leadership, a comprehensive environmental Philadelphia: Green City, agenda was laid out to try to make the city the greenest in Clean Waters CSO Long-term agenda was laid out to try to make the city the greenest in Clean Waters CSO Long-term America. Many city agencies responded by implement- Control Plan America. Many city agencies responded by implement- Control Plan ing projects that addressed issues around climate change, The case of Philadelphia is also quite unique, though ing projects that addressed issues around climate change, The case of Philadelphia is also quite unique, though the urban heat-island effect, and water quality. Perhaps it bears some resemblance to Seattle’s Street Edge the urban heat-island effect, and water quality. Perhaps it bears some resemblance to Seattle’s Street Edge most notable was the City Planning and Development Alternatives program in that stormwater-manage- most notable was the City Planning and Development Alternatives program in that stormwater-manage- Department’s Green Roof Initiative, which has led to the ment efforts are spearheaded by a resource agency, Department’s Green Roof Initiative, which has led to the ment efforts are spearheaded by a resource agency, construction of more than 80 green roofs in the city.30 the Philadelphia Water Department (PWD). For over construction of more than 80 green roofs in the city.30 the Philadelphia Water Department (PWD). For over a decade, the PWD’s Office of Watershed Manage- a decade, the PWD’s Office of Watershed Manage- Another important program that received wide ment (one of the few cities with such an office), has Another important program that received wide ment (one of the few cities with such an office), has acclaim was the Chicago Department of Trans- “integrate[d] their stormwater program with other acclaim was the Chicago Department of Trans- “integrate[d] their stormwater program with other

Where the Water Meets the Road WOLK 53 Where the Water Meets the Road WOLK 53 water resource protection and regulatory programs to swales, pervious pavement, etc.). The PWD plans to water resource protection and regulatory programs to swales, pervious pavement, etc.). The PWD plans to improve synergy and develop a holistic approach.”35 invest $600 million over several years to “green 34 per- improve synergy and develop a holistic approach.”35 invest $600 million over several years to “green 34 per- Such an approach, which avoids laying down addi- cent of the combined sewer area by managing storm- Such an approach, which avoids laying down addi- cent of the combined sewer area by managing storm- tional sewer pipes and building treatment facilities, water at the source,”39 which includes streets, public tional sewer pipes and building treatment facilities, water at the source,”39 which includes streets, public is a lower-cost strategy to help mitigate over 16 bil- schools, public facilities, and open spaces. Such green is a lower-cost strategy to help mitigate over 16 bil- schools, public facilities, and open spaces. Such green lion gallons of combined sewer overflows annually, retrofits would be integrated during sewer replace- lion gallons of combined sewer overflows annually, retrofits would be integrated during sewer replace- which would cost billions of dollars using traditional ment, utility construction, repaving or resurfacing of which would cost billions of dollars using traditional ment, utility construction, repaving or resurfacing of approaches.36 city streets, and sidewalk retrofits. Most recently, the approaches.36 city streets, and sidewalk retrofits. Most recently, the PWD received a $30 million low-interest loan from PWD received a $30 million low-interest loan from the Pennsylvania Infrastructure Investment Author- the Pennsylvania Infrastructure Investment Author- ity for construction of green infrastructure projects, ity for construction of green infrastructure projects, Although stormwater will which will be primarily used for green streets.40 Although stormwater will which will be primarily used for green streets.40 generally be under the generally be under the jurisdiction of a resource Not surprisingly, the type of institutional arrange- jurisdiction of a resource Not surprisingly, the type of institutional arrange- agency, this does not ment as well as the design and implementation of agency, this does not ment as well as the design and implementation of preclude other agencies stormwater-management projects are highly depen- preclude other agencies stormwater-management projects are highly depen- “ – particularly dent on local conditions. In Seattle, a new utility was “ – particularly dent on local conditions. In Seattle, a new utility was transportation agencies consolidated with a mandate to implement a variety transportation agencies consolidated with a mandate to implement a variety – from taking an active of stormwater-management projects in dense neigh- – from taking an active of stormwater-management projects in dense neigh- role. Indeed, it should be borhoods by engaging community residents. Like- role. Indeed, it should be borhoods by engaging community residents. Like- seen as an opportunity wise, in Philadelphia, a new office and new leadership seen as an opportunity wise, in Philadelphia, a new office and new leadership to achieve multiple in the PWD (as well as an increased budget) enabled to achieve multiple in the PWD (as well as an increased budget) enabled sustainability and the PWD to take a more holistic approach by work- sustainability and the PWD to take a more holistic approach by work- transportation ing across agencies to implement a comprehensive transportation ing across agencies to implement a comprehensive objectives. watershed-management program. And, in Chicago, objectives. watershed-management program. And, in Chicago, CDOT’s Green Alley program was a direct response CDOT’s Green Alley program was a direct response to the mayor’s directive (which bears some similarity to the mayor’s directive (which bears some similarity to PlaNYC), though it was less an interagency effort to PlaNYC), though it was less an interagency effort than a CDOT-run program. than a CDOT-run program. In addition to having strong leadership at the Office In addition to having strong leadership at the Office of Watershed Management, there was high-level sup- Stormwater Management of Watershed Management, there was high-level sup- Stormwater Management port from various city commissioners to implement in New York City port from various city commissioners to implement in New York City pilot programs that might traditionally be outside pilot programs that might traditionally be outside the realm of a utility. Likewise, the passage of a new A commonality across the above cases is that some degree the realm of a utility. Likewise, the passage of a new A commonality across the above cases is that some degree stormwater ordinance in 2006 requiring developers of interagency collaboration was required to achieve stormwater ordinance in 2006 requiring developers of interagency collaboration was required to achieve to treat the first inch of stormwater on-site has nec- stated objectives. Although stormwater will generally be to treat the first inch of stormwater on-site has nec- stated objectives. Although stormwater will generally be essarily integrated stormwater into the building per- under the jurisdiction of a resource agency, this does not essarily integrated stormwater into the building per- under the jurisdiction of a resource agency, this does not mit process at an early stage.37 The PWD also formed preclude other agencies, particularly transportation agen- mit process at an early stage.37 The PWD also formed preclude other agencies, particularly transportation agen- partnerships with other city agencies and put forth cies, from taking an active role. Indeed, it should be seen partnerships with other city agencies and put forth cies, from taking an active role. Indeed, it should be seen the resources to set up a development review process. as an opportunity to achieve multiple sustainability and the resources to set up a development review process. as an opportunity to achieve multiple sustainability and transportation objectives. transportation objectives. To date, the PWD has implemented a number of To date, the PWD has implemented a number of pilot projects in the public right-of-way, in partner- As a member of the Interagency BMP Taskforce (created pilot projects in the public right-of-way, in partner- As a member of the Interagency BMP Taskforce (created ship with the Philadelphia Green (the Philadelphia under PlaNYC and charged with making the reduction ship with the Philadelphia Green (the Philadelphia under PlaNYC and charged with making the reduction Horticultural Society’s city greening program) as well of CSO volumes and stormwater a priority for relevant Horticultural Society’s city greening program) as well of CSO volumes and stormwater a priority for relevant as Philadelphia’s Streets Department, which appears city agencies) and more important, having jurisdiction as Philadelphia’s Streets Department, which appears city agencies) and more important, having jurisdiction to play a more supportive role.38 PWD’s plan for the over New York City’s streets (which make up 27 percent to play a more supportive role.38 PWD’s plan for the over New York City’s streets (which make up 27 percent city’s streets (representing 38 percent of impervious of the city’s land area), the NYC Department of Trans- city’s streets (representing 38 percent of impervious of the city’s land area), the NYC Department of Trans- cover) includes the creation of a “green standard” for portation (NYCDOT) is in a unique position to help cover) includes the creation of a “green standard” for portation (NYCDOT) is in a unique position to help streets using a variety of approaches (i.e., planters, achieve PlaNYC’s goal of detaining or capturing over a streets using a variety of approaches (i.e., planters, achieve PlaNYC’s goal of detaining or capturing over a

54 Vol. XVIII, 2010–2011 The Wagner Review 54 Vol. XVIII, 2010–2011 The Wagner Review billion additional gallons of stormwater.41 In fact, given coming online BMP mapping tool could be a platform billion additional gallons of stormwater.41 In fact, given coming online BMP mapping tool could be a platform that 38 percent of impervious surfaces in New York City (figuratively and literally) for interagency collaboration that 38 percent of impervious surfaces in New York City (figuratively and literally) for interagency collaboration is public right-of-way, there is unprecedented opportunity by layering data from other agencies in order to priori- is public right-of-way, there is unprecedented opportunity by layering data from other agencies in order to priori- for NYCDOT to move forward on the agency’s com- tize new green infrastructure by, for example, upcoming for NYCDOT to move forward on the agency’s com- tize new green infrastructure by, for example, upcoming mitment to help pilot proven BMPs.42 Furthermore, the capital projects, routine maintenance, sidewalk capacity, mitment to help pilot proven BMPs.42 Furthermore, the capital projects, routine maintenance, sidewalk capacity, New York City Department of Environmental Protection underserved transit areas, or even areas of the city lack- New York City Department of Environmental Protection underserved transit areas, or even areas of the city lack- (NYCDEP) estimates that incorporating source controls ing green space. Following NYCDOT’s practice of imple- (NYCDEP) estimates that incorporating source controls ing green space. Following NYCDOT’s practice of imple- into road-reconstruction projects (through permeable menting pilot projects, and with the rollout of a host of into road-reconstruction projects (through permeable menting pilot projects, and with the rollout of a host of pavement and sidewalk biofiltration) could capture 1.4 new projects, numerous other models could be tested. As pavement and sidewalk biofiltration) could capture 1.4 new projects, numerous other models could be tested. As billion gallons of runoff each year by 2030, while infiltra- such, NYCDOT could adapt existing initiatives like the billion gallons of runoff each year by 2030, while infiltra- such, NYCDOT could adapt existing initiatives like the tion and detention standards on sidewalks could divert NYC Plaza program to require a stormwater-manage- tion and detention standards on sidewalks could divert NYC Plaza program to require a stormwater-manage- over 4 billion gallons during CSO events. Combined, this ment component, possibly funded by a separate agency over 4 billion gallons during CSO events. Combined, this ment component, possibly funded by a separate agency would represent roughly 27 percent of CSO volumes.43 like NYCDEP, which announced a $3 million grant pro- would represent roughly 27 percent of CSO volumes.43 like NYCDEP, which announced a $3 million grant program for community-based green infrastructure projects gram for community-based green infrastructure projects Although efforts to ensure water quality typically fall in early 2011. Such funds could be matched though the Although efforts to ensure water quality typically fall in early 2011. Such funds could be matched though the under the jurisdiction of the NYCDEP, stormwater man- NYC Plaza program or other public funding (federal, city, under the jurisdiction of the NYCDEP, stormwater man- NYC Plaza program or other public funding (federal, city, agement is ultimately a responsibility that must be shared or state), though alignment of grant cycles and other insti- agement is ultimately a responsibility that must be shared or state), though alignment of grant cycles and other insti- across agencies, as the previous examples highlight. It tutional processes and guidelines would be necessary. across agencies, as the previous examples highlight. It tutional processes and guidelines would be necessary. was by partnering with Philadelphia Green, which has was by partnering with Philadelphia Green, which has extensive funding and support, that Philadelphia was ini- extensive funding and support, that Philadelphia was initially able to get stormwater management in the public tially able to get stormwater management in the public consciousness and eventually on the agenda of city agen- Despite the challenges consciousness and eventually on the agenda of city agen- Despite the challenges cies. Equally important, stormwater management was facing city agencies cies. Equally important, stormwater management was facing city agencies integrated into Philadelphia’s zoning and building permit across the country, integrated into Philadelphia’s zoning and building permit across the country, 44 44 process. several North American process. several North American cities are at the forefront cities are at the forefront While a host of agencies share jurisdiction over the “ of stormwater While a host of agencies share jurisdiction over the “ of stormwater right-of-way (above and below the street) in New management, right-of-way (above and below the street) in New management, York City, a number of initiatives to reduce imper- particularly in terms of York City, a number of initiatives to reduce imper- particularly in terms of vious surfaces on buildings, streets, and sidewalks integrating green vious surfaces on buildings, streets, and sidewalks integrating green have been implemented. Among the oldest and most infrastructure in the have been implemented. Among the oldest and most infrastructure in the visible city greening initiatives is the New York City public right-of-way. visible city greening initiatives is the New York City public right-of-way. Department of Parks and Recreation’s Greenstreets, Department of Parks and Recreation’s Greenstreets, which began in 1996 as a program to convert concrete which began in 1996 as a program to convert concrete traffic islands into planted areas. It has since evolved traffic islands into planted areas. It has since evolved to incorporate various infiltration and detention strat- to incorporate various infiltration and detention strategies for stormwater management. The city currently Alternatively, NYCDOT could co-develop an entirely egies for stormwater management. The city currently Alternatively, NYCDOT could co-develop an entirely has more than 2,200 Greenstreets sites and plans to new program with other city agencies with overlapping has more than 2,200 Greenstreets sites and plans to new program with other city agencies with overlapping add 80 more sites each year over the next decade. goals, like the New York City Department of Small Busi- add 80 more sites each year over the next decade. goals, like the New York City Department of Small Busi- While the amount of stormwater capture per planted ness Services, which provides grants and training to form While the amount of stormwater capture per planted ness Services, which provides grants and training to form island is quite low, an extended Greenstreets program business improvement districts (BIDs) throughout the island is quite low, an extended Greenstreets program business improvement districts (BIDs) throughout the (with new designs that can accept stormwater) could city. Given that BIDs often have a streetscape-improve- (with new designs that can accept stormwater) could city. Given that BIDs often have a streetscape-improve- make significant contributions to runoff control in ment component, there would be ample opportunity to make significant contributions to runoff control in ment component, there would be ample opportunity to certain watersheds.45 co-fund strategic green infrastructure projects, like bio- certain watersheds.45 co-fund strategic green infrastructure projects, like bio- swales or enhanced tree pits in the public right-of-way. swales or enhanced tree pits in the public right-of-way. Greenstreets presents one opportunity for NYCDOT to Though there will inevitably be political and institutional Greenstreets presents one opportunity for NYCDOT to Though there will inevitably be political and institutional leverage its partnership with the Department of Parks and questions over who administers such a grant program, leverage its partnership with the Department of Parks and questions over who administers such a grant program, Recreation and NYCDEP to design a strategic network of specific BIDs could leverage additional agency funds for Recreation and NYCDEP to design a strategic network of specific BIDs could leverage additional agency funds for water infiltration and detention interventions throughout a single project that would help them meet their transit, water infiltration and detention interventions throughout a single project that would help them meet their transit, the five boroughs. For example, the NYCDEP’s forth- environmental, health, and economic benchmarks. the five boroughs. For example, the NYCDEP’s forth- environmental, health, and economic benchmarks.

Where the Water Meets the Road WOLK 55 Where the Water Meets the Road WOLK 55 A joint initiative of NYCDOT, NYCDEP, and the mize impermeable surfaces, maximize vegetation, and A joint initiative of NYCDOT, NYCDEP, and the mize impermeable surfaces, maximize vegetation, and Department of Parks and Recreation—perhaps modeled reduce the heat absorption of streets.47 Likewise, the multi- Department of Parks and Recreation—perhaps modeled reduce the heat absorption of streets.47 Likewise, the multi- after the Philadelphia model—could create a formalized ple nonstormwater benefits from green infrastructure also after the Philadelphia model—could create a formalized ple nonstormwater benefits from green infrastructure also program for schools and community gardens to adopt help achieve other objectives related to creating a vibrant program for schools and community gardens to adopt help achieve other objectives related to creating a vibrant nearby green infrastructure in the public right-of-way. In public realm, coherent and harmonious streetscapes, and nearby green infrastructure in the public right-of-way. In public realm, coherent and harmonious streetscapes, and the same way that Street Edge Alternatives projects func- cost-effectiveness.48 the same way that Street Edge Alternatives projects func- cost-effectiveness.48 tion in Seattle, a school would take on responsibility to tion in Seattle, a school would take on responsibility to clean out debris and water plants in rain gardens. This This last point cannot be overemphasized. Cost savings clean out debris and water plants in rain gardens. This This last point cannot be overemphasized. Cost savings would solve some of the key concerns involving mainte- realized through BMPs is significant compared with end- would solve some of the key concerns involving mainte- realized through BMPs is significant compared with end- nance costs. of-pipe treatment like water treatment facilities and can nance costs. of-pipe treatment like water treatment facilities and can ultimately save public tax dollars. Besides agency bench- ultimately save public tax dollars. Besides agency bench- With federal grant money (through the Partnership for marks and mayoral mandates, in order to further incen- With federal grant money (through the Partnership for marks and mayoral mandates, in order to further incen- Sustainable Communities, for example) there is oppor- tivize an agency like NYCDOT to implement BMPs Sustainable Communities, for example) there is oppor- tivize an agency like NYCDOT to implement BMPs tunity to integrate green infrastructure into a suite of (which result in direct savings for NYCDEP), agencies tunity to integrate green infrastructure into a suite of (which result in direct savings for NYCDEP), agencies programs that NYCDOT has rolled out over the past should receive a credit in the form of additional capital programs that NYCDOT has rolled out over the past should receive a credit in the form of additional capital few years, such as Safe Routes to School or Safe Routes funding or credits that are tradable with other agencies for few years, such as Safe Routes to School or Safe Routes funding or credits that are tradable with other agencies for for Seniors. While the intention of these programs is to reducing runoff. To that end, agency efforts to quantify for Seniors. While the intention of these programs is to reducing runoff. To that end, agency efforts to quantify ensure pedestrian safety (for school children and elderly the benefits of ecosystem services may also help create ensure pedestrian safety (for school children and elderly the benefits of ecosystem services may also help create residents alike) through traffic-safety improvements (i.e., more sustainable funding streams for stormwater projects. residents alike) through traffic-safety improvements (i.e., more sustainable funding streams for stormwater projects. sidewalk enhancements or pedestrian-refuge islands), For example, while it costs $37 to plant a new street tree, sidewalk enhancements or pedestrian-refuge islands), For example, while it costs $37 to plant a new street tree, source controls, such as swales, biofiltration systems, and this can result in $61 worth of stormwater reduction.49 source controls, such as swales, biofiltration systems, and this can result in $61 worth of stormwater reduction.49 catch basins, could be integrated into these infrastructure Overall, the EPA estimates that source controls can offer catch basins, could be integrated into these infrastructure Overall, the EPA estimates that source controls can offer upgrades at an early phase through collaboration with the capital cost savings of 18 percent to 80 percent.50 Such upgrades at an early phase through collaboration with the capital cost savings of 18 percent to 80 percent.50 Such NYC Department of Design and Construction. calculations must be considered by both NYCDOT and NYC Department of Design and Construction. calculations must be considered by both NYCDOT and NYCDEP, in addition to the life-cycle costs of installing NYCDEP, in addition to the life-cycle costs of installing These are just a few of the ways that green infrastructure green infrastructure versus conventional treatments. These are just a few of the ways that green infrastructure green infrastructure versus conventional treatments. could be incorporated into existing NYCDOT projects. could be incorporated into existing NYCDOT projects. Through intradepartmental working groups and formal While cities like Philadelphia have legally mandated Through intradepartmental working groups and formal While cities like Philadelphia have legally mandated partnerships with NYCDEP, the Department of Parks a stormwater charge, by which property owners must partnerships with NYCDEP, the Department of Parks a stormwater charge, by which property owners must and Recreation, the Department of Design and Con- detain the first inch of rainfall, New York City has not and Recreation, the Department of Design and Con- detain the first inch of rainfall, New York City has not struction, and other agencies (either building on the BMP yet devised such a scheme (though NYCDEP now has a struction, and other agencies (either building on the BMP yet devised such a scheme (though NYCDEP now has a Taskforce or creating a new one), planners, engineers, stormwater pilot for parking lots, requiring lot owners to Taskforce or creating a new one), planners, engineers, stormwater pilot for parking lots, requiring lot owners to water experts, and ecologists can determine where efforts pay for wastewater services). However, NYCDOT could water experts, and ecologists can determine where efforts pay for wastewater services). However, NYCDOT could should be targeted, the type of technology or BMP that be among the early adopters by integrating a first-inch- should be targeted, the type of technology or BMP that be among the early adopters by integrating a first-inch- should be used, and how such projects may or may not of-rainfall policy into all streetscape projects in order to should be used, and how such projects may or may not of-rainfall policy into all streetscape projects in order to link to existing sewer infrastructure. Ultimately, it will treat the first flush. Such policies could be turned into link to existing sewer infrastructure. Ultimately, it will treat the first flush. Such policies could be turned into take leadership on the part of the DOT to instill these interagency public-awareness campaigns around storm- take leadership on the part of the DOT to instill these interagency public-awareness campaigns around storm- practices throughout the agency, so that green infrastruc- water management and could also serve as a leverage practices throughout the agency, so that green infrastruc- water management and could also serve as a leverage ture is not only incorporated into pilot projects, but rou- point to engage residents in neighborhoods targeted for ture is not only incorporated into pilot projects, but rou- point to engage residents in neighborhoods targeted for tine road and sidewalk maintenance as well. Safe Routes to Schools, for example, which may also be tine road and sidewalk maintenance as well. Safe Routes to Schools, for example, which may also be located in heavily polluted watersheds. Identifying highly located in heavily polluted watersheds. Identifying highly Such interventions should not be viewed as mere add-ons visible water issues that directly pertain to the public right- Such interventions should not be viewed as mere add-ons visible water issues that directly pertain to the public right- or additional expenses. Not only would these measures of-way, much like the flooding in Chicago’s alleyways, will or additional expenses. Not only would these measures of-way, much like the flooding in Chicago’s alleyways, will help the city meet its broader sustainability and stormwa- be key to raising this public awareness. help the city meet its broader sustainability and stormwa- be key to raising this public awareness. ter-management goals, but adopting them will also help ter-management goals, but adopting them will also help NYCDOT achieve agency goals for Complete Streets.46 Conclusion NYCDOT achieve agency goals for Complete Streets.46 Conclusion For instance, one of the overall goals set forth in the New For instance, one of the overall goals set forth in the New York City Street Design Manual (released by NYCDOT Implementing Seattle- or Chicago-style stormwater- York City Street Design Manual (released by NYCDOT Implementing Seattle- or Chicago-style stormwater- in 2009) is to “design for sustainability,” which includes management initiatives will not be without challenge. In in 2009) is to “design for sustainability,” which includes management initiatives will not be without challenge. In collaborating across agencies to test new materials, mini- addition to financing, there are questions to be resolved collaborating across agencies to test new materials, mini- addition to financing, there are questions to be resolved

56 Vol. XVIII, 2010–2011 The Wagner Review 56 Vol. XVIII, 2010–2011 The Wagner Review around interagency coordination and responsibility, to pursue its own complete streets agenda and to achieve around interagency coordination and responsibility, to pursue its own complete streets agenda and to achieve approvals processes, and ongoing maintenance. Even the broader sustainability goals outlined in PlaNYC. approvals processes, and ongoing maintenance. Even the broader sustainability goals outlined in PlaNYC. though a vegetated swale might represent a fraction of though a vegetated swale might represent a fraction of the capital cost of a new treatment facility, there are also As urban populations continue to swell, the role the capital cost of a new treatment facility, there are also As urban populations continue to swell, the role costs to maintaining this infrastructure. Deciding whether of the street will become increasingly important. costs to maintaining this infrastructure. Deciding whether of the street will become increasingly important. this is the responsibility of Department of Parks and Rec- Runoff from impervious surfaces will only worsen this is the responsibility of Department of Parks and Rec- Runoff from impervious surfaces will only worsen reation, NYCDOT, or the New York City Department if city agencies do not collaborate and begin to reation, NYCDOT, or the New York City Department if city agencies do not collaborate and begin to of Sanitation will be a complex process, given that differ- think holistically about designing drainage sys- of Sanitation will be a complex process, given that differ- think holistically about designing drainage sys- ent BMPs require different care. But such tasks are not tems that are financially feasible and ecologi- ent BMPs require different care. But such tasks are not tems that are financially feasible and ecologi- insurmountable. Already, new life has been breathed into cally sound. Yet the changing nature of the street insurmountable. Already, new life has been breathed into cally sound. Yet the changing nature of the street the BMP Taskforce leading up to the release NYCDEP’s demands new organizational strategies to finance, the BMP Taskforce leading up to the release NYCDEP’s demands new organizational strategies to finance, Green Infrastructure plan in late 2010. And, perhaps even design, and maintain projects that span multiple Green Infrastructure plan in late 2010. And, perhaps even design, and maintain projects that span multiple more significant, the aforementioned Green Infrastruc- jurisdictions. While transportation agencies alone more significant, the aforementioned Green Infrastruc- jurisdictions. While transportation agencies alone ture program grants have ushered in a new civic engage- cannot solve a city’s stormwater problems, the ture program grants have ushered in a new civic engage- cannot solve a city’s stormwater problems, the ment model whereby community-based organizations can public right-of-way can certainly be part of the ment model whereby community-based organizations can public right-of-way can certainly be part of the begin to take advantage of external sources and city funds solution. Considering streets and sidewalks as a begin to take advantage of external sources and city funds solution. Considering streets and sidewalks as a to implement, design, and maintain green infrastructure. critical part of an interconnected system of mobil- to implement, design, and maintain green infrastructure. critical part of an interconnected system of mobil- This program has important benefits for the city, includ- ity, safety, and ecological functions can begin to This program has important benefits for the city, includ- ity, safety, and ecological functions can begin to ing cost savings and increased awareness among residents. address broader environmental issues while fos- ing cost savings and increased awareness among residents. address broader environmental issues while fos- Such a model presents a unique opportunity for NYC- tering the adaptive management necessary to plan Such a model presents a unique opportunity for NYC- tering the adaptive management necessary to plan DOT to collaborate on projects in the right-of-way, both for a greener future. DOT to collaborate on projects in the right-of-way, both for a greener future.

Notes Notes

1 Treating surface runoff at the source rather than channel- 8 Ibid. 1 Treating surface runoff at the source rather than channel- 8 Ibid. ing it to a wastewater treatment facility. 9 Ibid, 11. ing it to a wastewater treatment facility. 9 Ibid, 11. 2 Systems and practices that use or mimic natural processes 10 SWIM Coalition, “CSO Fact Sheet,” http://swimma- 2 Systems and practices that use or mimic natural processes 10 SWIM Coalition, “CSO Fact Sheet,” http://swimma- to infiltrate, evapotranspirate, or reuse stormwater or run- blenyc.info/wp-content/uploads/2010/04/SWIM_CSO_ to infiltrate, evapotranspirate, or reuse stormwater or run- blenyc.info/wp-content/uploads/2010/04/SWIM_CSO_ off on the site where it is generated (U.S. Environmental Fact_Sheet_web.pdf, accessed April 10, 2010. off on the site where it is generated (U.S. Environmental Fact_Sheet_web.pdf, accessed April 10, 2010. Protection Agency, Low Impact Development). See http:// 11 The term nonpoint source is defined to mean any source Protection Agency, Low Impact Development). See http:// 11 The term nonpoint source is defined to mean any source www.epa.gov/nps/lid/, accessed February 25, 2011. of water pollution that does not meet the legal definition www.epa.gov/nps/lid/, accessed February 25, 2011. of water pollution that does not meet the legal definition 3 Transformation of soil, plants, animals, air, and water into of point source in section 502(14) of the Clean Water Act. 3 Transformation of soil, plants, animals, air, and water into of point source in section 502(14) of the Clean Water Act. items of human value. For example, fungi, worms, and Unlike pollution from industrial and sewage-treatment items of human value. For example, fungi, worms, and Unlike pollution from industrial and sewage-treatment bacteria use the raw ingredients of sunlight, carbon, and plants, nonpoint-source pollution comes from many dif- bacteria use the raw ingredients of sunlight, carbon, and plants, nonpoint-source pollution comes from many dif- nitrogen to create fertile soil. See http://www.ecosystem- fuse sources. See http://water.epa.gov/polwaste/nps/whatis. nitrogen to create fertile soil. See http://www.ecosystem- fuse sources. See http://water.epa.gov/polwaste/nps/whatis. servicesproject.org/html/overview/index.htm, accessed cfm, accessed February 25, 2011. servicesproject.org/html/overview/index.htm, accessed cfm, accessed February 25, 2011. February 25, 2011. 12 U.S. Environmental Protection Agency, “Protecting Water February 25, 2011. 12 U.S. Environmental Protection Agency, “Protecting Water 4 U.S. Environmental Protection Agency, “Protecting Quality From Urban Runoff,” http://www.epa.gov/npdes/ 4 U.S. Environmental Protection Agency, “Protecting Quality From Urban Runoff,” http://www.epa.gov/npdes/ Water Quality From Urban Runoff,” http://www.epa.gov/ pubs/nps_urban-facts_final.pdf, accessed April 10, 2010. Water Quality From Urban Runoff,” http://www.epa.gov/ pubs/nps_urban-facts_final.pdf, accessed April 10, 2010. owow_keep/NPS/toolbox/other/epa_nps_urban_facts.pdf, 13 The City of New York, “PlaNYC Sustainable Stormwater owow_keep/NPS/toolbox/other/epa_nps_urban_facts.pdf, 13 The City of New York, “PlaNYC Sustainable Stormwater accessed February 25, 2011. Management Plan: Draft for Public Comment October accessed February 25, 2011. Management Plan: Draft for Public Comment October 5 Sewers that are designed to collect rainwater runoff, 1, 2008,” 7, http://www.nyc.gov/html/planyc2030/html/ 5 Sewers that are designed to collect rainwater runoff, 1, 2008,” 7, http://www.nyc.gov/html/planyc2030/html/ domestic sewage, and industrial wastewater in the same stormwater/stormwater.shtml, accessed February 25, 2011. domestic sewage, and industrial wastewater in the same stormwater/stormwater.shtml, accessed February 25, 2011. pipe. See http://cfpub.epa.gov/npdes/home.cfm?program_ 14 SWIM Coalition, “CSO Fact Sheet,” 2, http://swimma- pipe. See http://cfpub.epa.gov/npdes/home.cfm?program_ 14 SWIM Coalition, “CSO Fact Sheet,” 2, http://swimma- id=5, accessed February 25, 2011. blenyc.info/wp-content/uploads/2010/04/SWIM_CSO_ id=5, accessed February 25, 2011. blenyc.info/wp-content/uploads/2010/04/SWIM_CSO_ 6 Wastewater flows during periods without rainfall. Fact_Sheet_web.pdf, accessed April 10, 2010. 6 Wastewater flows during periods without rainfall. Fact_Sheet_web.pdf, accessed April 10, 2010. 7 The City of New York, “PlaNYC Sustainable Stormwater 15 U.S. Department of Transportation, Federal Highway 7 The City of New York, “PlaNYC Sustainable Stormwater 15 U.S. Department of Transportation, Federal Highway Management Plan: Draft for Public Comment October Administration, “Stormwater Best Management Practices Management Plan: Draft for Public Comment October Administration, “Stormwater Best Management Practices 1, 2008,” 12, http://www.nyc.gov/html/planyc2030/html/ in an Ultra-Urban Setting: Selection and Monitoring,” 1, 2008,” 12, http://www.nyc.gov/html/planyc2030/html/ in an Ultra-Urban Setting: Selection and Monitoring,” stormwater/stormwater.shtml, accessed February 25, 2011. 3.1, http://www.fhwa.dot.gov/environment/ultraurb/uub- stormwater/stormwater.shtml, accessed February 25, 2011. 3.1, http://www.fhwa.dot.gov/environment/ultraurb/uub-

Where the Water Meets the Road WOLK 57 Where the Water Meets the Road WOLK 57 mp3p1.htm, accessed February 25, 2011. Drainage_&_Sewer_System/GreenStormwaterInfrastruc- mp3p1.htm, accessed February 25, 2011. Drainage_&_Sewer_System/GreenStormwaterInfrastruc- 16 Ibid, 2.2.3. ture/NaturalDrainageProjects/index.htm, accessed Febru- 16 Ibid, 2.2.3. ture/NaturalDrainageProjects/index.htm, accessed Febru- 17 Ibid. ary 25, 2011. 17 Ibid. ary 25, 2011. 18 U.S. Environmental Protection Agency, “Introduction to 29 Water Environment Research Foundation, “Seattle 18 U.S. Environmental Protection Agency, “Introduction to 29 Water Environment Research Foundation, “Seattle the Clean Water Act,” http://www.epa.gov/watertrain/cwa/ Washington—Incorporating Water Quality Features Into the Clean Water Act,” http://www.epa.gov/watertrain/cwa/ Washington—Incorporating Water Quality Features Into index.htm, accessed February 25, 2011. the Right-of-Way,” http://www.werf.org/livablecommuni- index.htm, accessed February 25, 2011. the Right-of-Way,” http://www.werf.org/livablecommuni- 19 U.S. Department of Transportation, Federal Highway ties/studies_sea_wa.htm, accessed March 10, 2010. 19 U.S. Department of Transportation, Federal Highway ties/studies_sea_wa.htm, accessed March 10, 2010. Administration, “Stormwater Best Management Practices 30 Water Environment Research Foundation, “Chicago, Illi- Administration, “Stormwater Best Management Practices 30 Water Environment Research Foundation, “Chicago, Illi- in an Ultra-Urban Setting: Selection and Monitoring,” 1. nois—Becoming the ‘Greenest City in America,’ ” http:// in an Ultra-Urban Setting: Selection and Monitoring,” 1. nois—Becoming the ‘Greenest City in America,’ ” http:// http://www.fhwa.dot.gov/environment/ultraurb/uubmp1. www.werf.org/livablecommunities/studies_chic_il.htm, http://www.fhwa.dot.gov/environment/ultraurb/uubmp1. www.werf.org/livablecommunities/studies_chic_il.htm, htm, accessed February 25, 2011. accessed April 10, 2010. htm, accessed February 25, 2011. accessed April 10, 2010. 20 U.S. Environmental Protection Agency, “Introduction to 31 Janet Attarian, “Chicago Department of Transportation 20 U.S. Environmental Protection Agency, “Introduction to 31 Janet Attarian, “Chicago Department of Transportation the Clean Water Act,” http://www.epa.gov/watertrain/cwa/ Sustainable Development Initiatives,” TRB 86th Annual the Clean Water Act,” http://www.epa.gov/watertrain/cwa/ Sustainable Development Initiatives,” TRB 86th Annual index.htm, accessed February 25, 2011. Compendium of Papers (2007), abstract. http://pubsindex. index.htm, accessed February 25, 2011. Compendium of Papers (2007), abstract. http://pubsindex. 21 U.S. Department of Transportation, Federal Highway trb.org/view.aspx?id=802596, accessed February 10, 2010. 21 U.S. Department of Transportation, Federal Highway trb.org/view.aspx?id=802596, accessed February 10, 2010. Administration, “Stormwater Best Management Practices 32 Commission for Architecture and the Built Environment, Administration, “Stormwater Best Management Practices 32 Commission for Architecture and the Built Environment, in an Ultra-Urban Setting: Selection and Monitoring,” 1. “Green Alleys,” http://www.cabe.org.uk/case-studies/green- in an Ultra-Urban Setting: Selection and Monitoring,” 1. “Green Alleys,” http://www.cabe.org.uk/case-studies/green- http://www.fhwa.dot.gov/environment/ultraurb/uubmp1. alleys, accessed April 10, 2010. http://www.fhwa.dot.gov/environment/ultraurb/uubmp1. alleys, accessed April 10, 2010. htm, accessed February 25, 2011. 33 The City of Chicago, “Chicago Green Alley Handbook: htm, accessed February 25, 2011. 33 The City of Chicago, “Chicago Green Alley Handbook: 22 Ibid. An Action Guide to Create a Greener, Environmentally 22 Ibid. An Action Guide to Create a Greener, Environmentally 23 Center for Environmental Excellence by AASHTO. “Envi- Sustainable Chicago,” 18-21, http://www.cityofchicago.org/ 23 Center for Environmental Excellence by AASHTO. “Envi- Sustainable Chicago,” 18-21, http://www.cityofchicago.org/ ronmental Stewardship Practices, Procedures, and Policies city/en/depts/cdot/provdrs/alley/svcs/green_alleys.html, ronmental Stewardship Practices, Procedures, and Policies city/en/depts/cdot/provdrs/alley/svcs/green_alleys.html, for Highway Construction and Maintenance,” 3.7. http:// accessed February 25, 2010. for Highway Construction and Maintenance,” 3.7. http:// accessed February 25, 2010. environment.transportation.org/environmental_issues/ 34 Susan Saulny, “In Miles of Alleys, Chicago Finds Its Next environment.transportation.org/environmental_issues/ 34 Susan Saulny, “In Miles of Alleys, Chicago Finds Its Next construct_maint_prac/compendium/manual/3_7.aspx, Environmental Frontier,” New York Times, November 26, construct_maint_prac/compendium/manual/3_7.aspx, Environmental Frontier,” New York Times, November 26, accessed February 25, 2011. 2007, http://www.nytimes.com/2007/11/26/us/26chicago. accessed February 25, 2011. 2007, http://www.nytimes.com/2007/11/26/us/26chicago. 24 Surface Transportation Policy Partnership, “Second html, accessed February 25, 2011. 24 Surface Transportation Policy Partnership, “Second html, accessed February 25, 2011. Nature: Improving Transportation Without Putting Nature 35 Water Environment Research Foundation, “Philadelphia, Nature: Improving Transportation Without Putting Nature 35 Water Environment Research Foundation, “Philadelphia, Second,” 33, http://www.transact.org/report.asp?id=206 Pennsylvania—Implementing a Multi-Faceted Approach Second,” 33, http://www.transact.org/report.asp?id=206 Pennsylvania—Implementing a Multi-Faceted Approach accessed February 25, 2011. to Stormwater Management,” http://www.werf.org/livable- accessed February 25, 2011. to Stormwater Management,” http://www.werf.org/livable- 25 A stormwater-management strategy concerned with communities/studies_phil_pa.htm, accessed February 25, 25 A stormwater-management strategy concerned with communities/studies_phil_pa.htm, accessed February 25, maintaining or restoring the natural hydrologic functions 2011. maintaining or restoring the natural hydrologic functions 2011. of a site to achieve natural resource protection objectives. 36 Ibid. of a site to achieve natural resource protection objectives. 36 Ibid. Low-impact development addresses stormwater through 37 Margaret Buranen, “Philadelphia: Going Green to Manage Low-impact development addresses stormwater through 37 Margaret Buranen, “Philadelphia: Going Green to Manage small, cost-effective site design and landscape features that Stormwater,” Stormwater, Jan-Feb (2010): 1, http://www. small, cost-effective site design and landscape features that Stormwater,” Stormwater, Jan-Feb (2010): 1, http://www. are distributed throughout the site. See www.lowimpactde- stormh2o.com/january-february-2010/philadelphia-going- are distributed throughout the site. See www.lowimpactde- stormh2o.com/january-february-2010/philadelphia-going- velopment.org/nhb/lid.htm, accessed February 25, 2011. green-1.aspx, accessed February 25, 2011. velopment.org/nhb/lid.htm, accessed February 25, 2011. green-1.aspx, accessed February 25, 2011. 26 Seattle Public Utilities, “Seattle’s Natural Drainage 38 Details could not be found on the Department of Streets 26 Seattle Public Utilities, “Seattle’s Natural Drainage 38 Details could not be found on the Department of Streets Systems: A Low Impact Approach to Stormwater Man- website. Systems: A Low Impact Approach to Stormwater Man- website. agement,” 6. http://www.seattle.gov/util/About_SPU/ 39 Glen J. Abrams, AICP, “Green City, Clean Waters: Green agement,” 6. http://www.seattle.gov/util/About_SPU/ 39 Glen J. Abrams, AICP, “Green City, Clean Waters: Green Drainage_&_Sewer_System/GreenStormwaterInfrastruc- Streets in Philadelphia,” Presentation at Metropolitan Drainage_&_Sewer_System/GreenStormwaterInfrastruc- Streets in Philadelphia,” Presentation at Metropolitan ture/NaturalDrainageProjects/index.htm, accessed Febru- Washington Council of Governments Symposium: Innova- ture/NaturalDrainageProjects/index.htm, accessed Febru- Washington Council of Governments Symposium: Innova- ary 25, 2011. tive Stormwater Controls on Roads and Highways, Wash- ary 25, 2011. tive Stormwater Controls on Roads and Highways, Wash- 27 Water Environment Research Foundation, “Seattle ington, D.C., November 2009, http://www.mwcog.org/ 27 Water Environment Research Foundation, “Seattle ington, D.C., November 2009, http://www.mwcog.org/ Washington—Incorporating Water Quality Features Into environment/Roads_Highways/presentations.asp, accessed Washington—Incorporating Water Quality Features Into environment/Roads_Highways/presentations.asp, accessed the Right-of-Way,” http://www.werf.org/livablecommuni- February 25, 2011. the Right-of-Way,” http://www.werf.org/livablecommuni- February 25, 2011. ties/studies_sea_wa.htm, accessed March 10, 2010. 40 Ibid. ties/studies_sea_wa.htm, accessed March 10, 2010. 40 Ibid. 28 Seattle Public Utilities, “Seattle’s Natural Drainage 41 The City of New York, “PlaNYC Sustainable Stormwater 28 Seattle Public Utilities, “Seattle’s Natural Drainage 41 The City of New York, “PlaNYC Sustainable Stormwater Systems: A Low Impact Approach to Stormwater Man- Management Plan: Draft for Public Comment October Systems: A Low Impact Approach to Stormwater Man- Management Plan: Draft for Public Comment October agement,” 8, http://www.seattle.gov/util/About_SPU/ 1, 2008,” 5. http://www.nyc.gov/html/planyc2030/html/ agement,” 8, http://www.seattle.gov/util/About_SPU/ 1, 2008,” 5. http://www.nyc.gov/html/planyc2030/html/

58 Vol. XVIII, 2010–2011 The Wagner Review 58 Vol. XVIII, 2010–2011 The Wagner Review stormwater/stormwater.shtml, accessed February 25, 2011. “Complete Streets” as: streets that are safe, comfortable, stormwater/stormwater.shtml, accessed February 25, 2011. “Complete Streets” as: streets that are safe, comfortable, 42 City of New York, “Sustainable Streets 2009 Progress and convenient for travel for everyone regardless of age 42 City of New York, “Sustainable Streets 2009 Progress and convenient for travel for everyone regardless of age Report,” http://www.nyc.gov/html/dot/html/about/strat- or ability – motorists, pedestrians, bicyclists, and public Report,” http://www.nyc.gov/html/dot/html/about/strat- or ability – motorists, pedestrians, bicyclists, and public plan.shtml, accessed February 25, 2011. transportation riders. See http://www.completestreets. plan.shtml, accessed February 25, 2011. transportation riders. See http://www.completestreets. 43 The City of New York, “PlaNYC Sustainable Stormwater org/complete-streets-fundamentals/complete-streets-faq/, 43 The City of New York, “PlaNYC Sustainable Stormwater org/complete-streets-fundamentals/complete-streets-faq/, Management Plan: Draft for Public Comment October 1, accessed February 25, 2011. Management Plan: Draft for Public Comment October 1, accessed February 25, 2011. 2008,” 36-9, http://www.nyc.gov/html/planyc2030/html/ 47 The City of New York, “New York City Street Design 2008,” 36-9, http://www.nyc.gov/html/planyc2030/html/ 47 The City of New York, “New York City Street Design stormwater/stormwater.shtml, accessed February 25, 2011. Manual,” 21. http://www.nyc.gov/html/dot/html/about/ stormwater/stormwater.shtml, accessed February 25, 2011. Manual,” 21. http://www.nyc.gov/html/dot/html/about/ 44 Margaret Buranen, “Philadelphia: Going Green to Manage streetdesignmanual.shtml, accessed February 25, 2011. 44 Margaret Buranen, “Philadelphia: Going Green to Manage streetdesignmanual.shtml, accessed February 25, 2011. Stormwater,” Stormwater Jan-Feb (2010): 2. 48 Ibid. Stormwater,” Stormwater Jan-Feb (2010): 2. 48 Ibid. 45 The City of New York, “PlaNYC Sustainable Stormwater 49 The City of New York, “PlaNYC Sustainable Stormwater 45 The City of New York, “PlaNYC Sustainable Stormwater 49 The City of New York, “PlaNYC Sustainable Stormwater Management Plan: Draft for Public Comment October Management Plan: Draft for Public Comment October Management Plan: Draft for Public Comment October Management Plan: Draft for Public Comment October 1, 2008,” 44, http://www.nyc.gov/html/planyc2030/html/ 1, 2008,” 29, http://www.nyc.gov/html/planyc2030/html/ 1, 2008,” 44, http://www.nyc.gov/html/planyc2030/html/ 1, 2008,” 29, http://www.nyc.gov/html/planyc2030/html/ stormwater/stormwater.shtml, accessed February 25, 2011. stormwater/stormwater.shtml, accessed February 25, 2011. stormwater/stormwater.shtml, accessed February 25, 2011. stormwater/stormwater.shtml, accessed February 25, 2011. 46 The National Complete Streets Coalition defines 50 Ibid, 25. 46 The National Complete Streets Coalition defines 50 Ibid, 25.

Where the Water Meets the Road WOLK 59 Where the Water Meets the Road WOLK 59 60 Vol. XVIII, 2010–2011 The Wagner Review 60 Vol. XVIII, 2010–2011 The Wagner Review Efficient Spectrum Policy: Efficient Spectrum Policy: D Block for the Public or Profit? D Block for the Public or Profit?

Douglas Coulter Douglas Coulter

For nearly a For nearly a ABSTRACT decade, the ABSTRACT decade, the federal government has attempted to devel- federal government has attempted to develop a nationwide, interoperable broadband op a nationwide, interoperable broadband communications network for public safety communications network for public safety agencies, such as police, firefighters, and agencies, such as police, firefighters, and medical first responders. The current patch- medical first responders. The current patchwork of communication services has exacer- work of communication services has exacerbated the loss of life during such tragedies bated the loss of life during such tragedies as the September 11 attacks and Hurricane as the September 11 attacks and Hurricane Katrina, but little has been done to move Katrina, but little has been done to move the issue forward. A major roadblock in the the issue forward. A major roadblock in the progress of this issue has been the stagger- progress of this issue has been the stagger- ing cost of building such a network and the ing cost of building such a network and the allocation of the D Block band of wireless allocation of the D Block band of wireless spectrum. This article draws on the recent spectrum. This article draws on the recent history of spectrum-allocation policy and history of spectrum-allocation policy and the arguments from the major players in the the arguments from the major players in the D Block debate to conclude with the most ec- D Block debate to conclude with the most economically viable solution to the impasse. onomically viable solution to the impasse.

Efficient Spectrum Policy Coulter 61 Efficient Spectrum Policy Coulter 61 Introduction Introduction

For the past decade, modernizing the United If the use of a frequency For the past decade, modernizing the United If the use of a frequency States’ public safety communication infrastruc- which if used industrially States’ public safety communication infrastruc- which if used industrially ture has been a priority for Congress, the public would contribute goods ture has been a priority for Congress, the public would contribute goods safety community, and voters. But despite such worth $1 million could safety community, and voters. But despite such worth $1 million could examples as the September 11 attacks and Hurri- be avoided by the examples as the September 11 attacks and Hurri- be avoided by the cane Katrina, which illustrate how upgrading these “ construction of a wire cane Katrina, which illustrate how upgrading these “ construction of a wire tools could have saved lives, progress has been system or the purchase tools could have saved lives, progress has been system or the purchase slow. At the same time, wireless-communication of reserve vehicles cost- slow. At the same time, wireless-communication of reserve vehicles cost- advances provide a stark contrast to the antiquated ing $100,000, advances provide a stark contrast to the antiquated ing $100,000, equipment used by public safety agencies, such as it is better that the equipment used by public safety agencies, such as it is better that the firefighters, police officers, medical providers, and frequency should not be firefighters, police officers, medical providers, and frequency should not be other emergency responders.1 Most smart-phone used, however essential other emergency responders.1 Most smart-phone used, however essential users can access real-time maps and upload video, the project. users can access real-time maps and upload video, the project. while a firefighter typically can use his device only while a firefighter typically can use his device only for two-way voice communication. With the recent for two-way voice communication. With the recent licensing of spectrum for faster wireless broadband has successfully characterized the debate about D licensing of spectrum for faster wireless broadband has successfully characterized the debate about D communication technologies—known as 4G—the Block as a trade-off between the public’s safety and communication technologies—known as 4G—the Block as a trade-off between the public’s safety and U.S. has a chance to capitalize on these develop- a temporary revenue increase for the government. U.S. has a chance to capitalize on these develop- a temporary revenue increase for the government. ments and pull public safety communications into These arguments often rely on the communication ments and pull public safety communications into These arguments often rely on the communication the 21st century. failures during Hurricane Katrina and September the 21st century. failures during Hurricane Katrina and September 11 to illustrate the need for a private network and 11 to illustrate the need for a private network and The public safety network debate now focuses on imply that a government-built network is the best The public safety network debate now focuses on imply that a government-built network is the best the allocation of a section of spectrum called the way to prevent more failures. the allocation of a section of spectrum called the way to prevent more failures. D Block. This spectrum band sits between the D Block. This spectrum band sits between the sections already dedicated to public safety and the I argue that though this solution is the most likely sections already dedicated to public safety and the I argue that though this solution is the most likely bands purchased by wireless broadband provid- to succeed in Congress, a federally constructed net- bands purchased by wireless broadband provid- to succeed in Congress, a federally constructed net- ers like AT&T and Verizon2 (see figure 1). Public work is more likely to lead to more of these types ers like AT&T and Verizon2 (see figure 1). Public work is more likely to lead to more of these types safety advocates believe that Congress should allo- of tragic communication failures in the future. safety advocates believe that Congress should allo- of tragic communication failures in the future. cate the D Block solely for their use in order to In order to position the current situation, I will cate the D Block solely for their use in order to In order to position the current situation, I will guarantee sufficient spectrum for communication provide background on spectrum allocation, the guarantee sufficient spectrum for communication provide background on spectrum allocation, the in emergencies, with the federal government con- players involved in the D Block debate, and their in emergencies, with the federal government con- players involved in the D Block debate, and their structing a nationwide network for this purpose. arguments for or against the D Block auction. structing a nationwide network for this purpose. arguments for or against the D Block auction. Opponents of this proposal, such as the Federal I conclude that Congress should allocate the D Opponents of this proposal, such as the Federal I conclude that Congress should allocate the D Communications Commission (FCC), argue that Block based on the economic realities of the tech- Communications Commission (FCC), argue that Block based on the economic realities of the tech- Congress should auction the D Block for private nology, capital expenses, and maintenance. Congress should auction the D Block for private nology, capital expenses, and maintenance. use, with public safety priority access in emergen- use, with public safety priority access in emergencies (figure 1). Current Technology Failures cies (figure 1). Current Technology Failures

Because of intense lobbying by the public safety The technologies deployed by public safety have changed Because of intense lobbying by the public safety The technologies deployed by public safety have changed community, the issue has come up for congres- little in the past 30 years. In the past decade, two major community, the issue has come up for congres- little in the past 30 years. In the past decade, two major sional deliberation. The public safety community disasters have illustrated the real-world consequences of sional deliberation. The public safety community disasters have illustrated the real-world consequences of

Block A B C D E A B C C A D PS B C A D PS B Block A B C D E A B C C A D PS B C A D PS B 698 704 710 716 722 728 734 740 746 752 758 764 770 776 782 788 794 800 804 698 704 710 716 722 728 734 740 746 752 758 764 770 776 782 788 794 800 804

MHz MHz Former TV Former TV 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Channels Channels

Figure 1. 700MHz Band Figure 1. 700MHz Band

62 Vol. XVIII, 2010–2011 The Wagner Review 62 Vol. XVIII, 2010–2011 The Wagner Review

a dysfunctional communications infrastructure. During Spectrum and Auctions a dysfunctional communications infrastructure. During Spectrum and Auctions both tragedies, the outmoded technologies used by pub- both tragedies, the outmoded technologies used by public safety agencies reduced the efficiency of rescue efforts, Recent Spectrum History lic safety agencies reduced the efficiency of rescue efforts, Recent Spectrum History causing unnecessary loss of life. Radio spectrum is a highly prized and scarce resource. causing unnecessary loss of life. Radio spectrum is a highly prized and scarce resource. Since the early 20th century, the federal government Since the early 20th century, the federal government Attack on the World has controlled allocation of spectrum through the Attack on the World has controlled allocation of spectrum through the Trade Center FCC. Until the 1980s, the FCC primarily allocated Trade Center FCC. Until the 1980s, the FCC primarily allocated spectrum through a series of closed-door hearings spectrum through a series of closed-door hearings The lack of interoperability and the weak signal sometimes referred to as “beauty contests,” where The lack of interoperability and the weak signal sometimes referred to as “beauty contests,” where strength of the radio communication devices used regulators picked the most attractive use.6 This was strength of the radio communication devices used regulators picked the most attractive use.6 This was by the emergency responders hampered the evacu- followed by lotteries, which in theory would level the by the emergency responders hampered the evacu- followed by lotteries, which in theory would level the ation and rescue efforts at the World Trade Center playing field for potential users through random selec- ation and rescue efforts at the World Trade Center playing field for potential users through random selec- (WTC) during the chaotic 102 minutes between tion from a pool of applicants. This system, however, (WTC) during the chaotic 102 minutes between tion from a pool of applicants. This system, however, the first plane’s impact and the North Tower’s col- proved problematic because the FCC did not account the first plane’s impact and the North Tower’s col- proved problematic because the FCC did not account lapse on September 11, 2001. The U.S. Congress’s for the capabilities or qualities of the applicants. lapse on September 11, 2001. The U.S. Congress’s for the capabilities or qualities of the applicants. 9/11 Commission Report noted that the New York 9/11 Commission Report noted that the New York Police Department’s (NYPD) radio systems were Long before both of these failed methods were used, Police Department’s (NYPD) radio systems were Long before both of these failed methods were used, able to communicate on multiple channels, its chiefs Ronald Coase proposed in his famous 1959 article able to communicate on multiple channels, its chiefs Ronald Coase proposed in his famous 1959 article could easily transmit to all officers with radios, and “The Federal Communications Commission” that could easily transmit to all officers with radios, and “The Federal Communications Commission” that its equipment could broadcast great distances. The auctions were the best way to allocate spectrum. its equipment could broadcast great distances. The auctions were the best way to allocate spectrum. report also notes, however, that the Fire Department Regulators suggested that spectrum was too scarce, report also notes, however, that the Fire Department Regulators suggested that spectrum was too scarce, of New York’s communication system experienced and therefore the market could not allocate its use of New York’s communication system experienced and therefore the market could not allocate its use significant failures because of weak signal strength correctly. Coase however noted that “land, labor, significant failures because of weak signal strength correctly. Coase however noted that “land, labor, within the WTC, the sheer number of firefighters and capital are all scarce, but this, of itself, does not within the WTC, the sheer number of firefighters and capital are all scarce, but this, of itself, does not trying to use the system, and the lack of interop- call for government regulation.”7 His notion, radical trying to use the system, and the lack of interop- call for government regulation.”7 His notion, radical erability with the NYPD. This communication for the time, was that all spectrum be auctioned to erability with the NYPD. This communication for the time, was that all spectrum be auctioned to breakdown played a role in the failure to evacuate whomever could afford the licenses.8 breakdown played a role in the failure to evacuate whomever could afford the licenses.8 all rescue personnel after the collapse of the first all rescue personnel after the collapse of the first tower.3 Coase also contended against allocation of spectrum tower.3 Coase also contended against allocation of spectrum to public use for free. He argues, to public use for free. He argues, Hurricane Katrina Hurricane Katrina If the use of a frequency which if used industrially If the use of a frequency which if used industrially The congressional report on Hurricane Katrina, A would contribute goods worth $1 million could be The congressional report on Hurricane Katrina, A would contribute goods worth $1 million could be Failure of Initiative, found that “massive commu- avoided by the construction of a wire system or Failure of Initiative, found that “massive commu- avoided by the construction of a wire system or nications damage and a failure to adequately plan the purchase of reserve vehicles costing $100,000, nications damage and a failure to adequately plan the purchase of reserve vehicles costing $100,000, for alternatives impaired response efforts, command it is better that the frequency should not be used, for alternatives impaired response efforts, command it is better that the frequency should not be used, and control, and situational awareness.”4 The report however essential the project.9 and control, and situational awareness.”4 The report however essential the project.9 details how the New Orleans Police Department details how the New Orleans Police Department and New Orleans Fire Department both lost their His argument is that if it is not worth it to the gov- and New Orleans Fire Department both lost their His argument is that if it is not worth it to the gov- radio communication systems for the three days ernment to pay for the licenses for its own uses, then radio communication systems for the three days ernment to pay for the licenses for its own uses, then after Katrina made landfall because of flooding in it should go to the market, where someone with a after Katrina made landfall because of flooding in it should go to the market, where someone with a the radio system’s backup generators. This left much higher willingness to pay will acquire the rights and the radio system’s backup generators. This left much higher willingness to pay will acquire the rights and of the city’s emergency responders crowding on to thus increase societal utility. of the city’s emergency responders crowding on to thus increase societal utility. just one radio frequency, slowing response times and just one radio frequency, slowing response times and coordination efforts. The report also details how the Despite economic-efficiency arguments for auc- coordination efforts. The report also details how the Despite economic-efficiency arguments for auc- hurricane’s effect on private communication net- tioning spectrum and, surprisingly, the poten- hurricane’s effect on private communication net- tioning spectrum and, surprisingly, the poten- works was devastating, knocking out hundreds of tial for a new revenue source, Congress and the works was devastating, knocking out hundreds of tial for a new revenue source, Congress and the cellular towers, shutting down 911 services, and cut- FCC ignored Coase’s recommendations. It was cellular towers, shutting down 911 services, and cut- FCC ignored Coase’s recommendations. It was ting the fiber-optic cable line that served as the city’s not until the Omnibus Budget Reconciliation Act ting the fiber-optic cable line that served as the city’s not until the Omnibus Budget Reconciliation Act primary conduit for internet and voice calls.5 of 1993 that Congress gave the FCC the author- primary conduit for internet and voice calls.5 of 1993 that Congress gave the FCC the author-

Efficient Spectrum Policy Coulter 63 Efficient Spectrum Policy Coulter 63 ity to auction spectrum. This allocation process, cantly lower than the FCC’s reserve price of $1.33 ity to auction spectrum. This allocation process, cantly lower than the FCC’s reserve price of $1.33 coupled with the shrinking of cellular devices, led billion.14 Former FCC commissioner Jonathan coupled with the shrinking of cellular devices, led billion.14 Former FCC commissioner Jonathan to explosive growth in mobile usage. According Adelstein suggested the financial burdens were to explosive growth in mobile usage. According Adelstein suggested the financial burdens were to CTIA-The Wireless Association, in December too significant in the auction, saying, “We clearly to CTIA-The Wireless Association, in December too significant in the auction, saying, “We clearly 1995, there were 33.8 million cellular subscribers misjudged the interest [in the D Block] and set 1995, there were 33.8 million cellular subscribers misjudged the interest [in the D Block] and set and as of December 2009, there were 285.6 mil- rules that apparently inhibited the financing [for and as of December 2009, there were 285.6 mil- rules that apparently inhibited the financing [for lion—effectively 91 percent of the U.S. popula- bidders].”15 With no D Block winner, the FCC lion—effectively 91 percent of the U.S. popula- bidders].”15 With no D Block winner, the FCC tion.10 This rapid growth led to increased demand left the issue of the public safety network to be tion.10 This rapid growth led to increased demand left the issue of the public safety network to be for spectrum. decided later. for spectrum. decided later.

The 700 MHz Spectrum Auction D Block The 700 MHz Spectrum Auction D Block In the late 1990s, Congress and the FCC wanted In the late 1990s, Congress and the FCC wanted to provide more broadband spectrum for commer- The FCC’s Public Safety Plan to provide more broadband spectrum for commer- The FCC’s Public Safety Plan cial purposes. To wit, the Balanced Budget Act of Congress directed the FCC to release the National cial purposes. To wit, the Balanced Budget Act of Congress directed the FCC to release the National 1997 stipulated that the FCC should reclaim the Broadband Plan (NBP) in the spring of 2009.16 The 1997 stipulated that the FCC should reclaim the Broadband Plan (NBP) in the spring of 2009.16 The 700 MHz band from television providers and auc- NBP specifically recommends the construction of 700 MHz band from television providers and auc- NBP specifically recommends the construction of tion it in 2005, though the auction was ultimately a public safety broadband network. As the head of tion it in 2005, though the auction was ultimately a public safety broadband network. As the head of delayed until 2009. The law stipulated that within the FCC’s Public Safety and Homeland Security delayed until 2009. The law stipulated that within the FCC’s Public Safety and Homeland Security this band, 24 MHz must be set aside exclusively Bureau, Rear Admiral James Barnett, said, “We this band, 24 MHz must be set aside exclusively Bureau, Rear Admiral James Barnett, said, “We for public safety use for broadband data access. have a brief technological window to get everybody for public safety use for broadband data access. have a brief technological window to get everybody The FCC broke the 700 MHz band into six blocks on the same page from the beginning and build a The FCC broke the 700 MHz band into six blocks on the same page from the beginning and build a (A through E Blocks, plus a public safety block) 21st Century ... broadband system.”17 (A through E Blocks, plus a public safety block) 21st Century ... broadband system.”17 with hundreds of sublicenses within those blocks. with hundreds of sublicenses within those blocks. A bidder could win any combination and number The FCC outlines a public safety network com- A bidder could win any combination and number The FCC outlines a public safety network com- of the licenses offered by the FCC. A reserve price, posed of four levels. The core of the network of the licenses offered by the FCC. A reserve price, posed of four levels. The core of the network or minimum required bid, was set for each license. would be the wireless network deployed exclu- or minimum required bid, was set for each license. would be the wireless network deployed exclu- According to estimates, the auction brought up to sively for public safety’s use. Additionally, users According to estimates, the auction brought up to sively for public safety’s use. Additionally, users $15 billion in profit for the federal government.11 could rely on the commercial wireless networks $15 billion in profit for the federal government.11 could rely on the commercial wireless networks for priority roaming; then there would be micro- for priority roaming; then there would be micro- The 700 MHz auction—FCC’s Auction 73—began cells and distributed antenna systems and—in The 700 MHz auction—FCC’s Auction 73—began cells and distributed antenna systems and—in on January 24, 2008, and generated over $18.957 situations where all towers were rendered inop- on January 24, 2008, and generated over $18.957 situations where all towers were rendered inop- billion after 38 days of bidding, well over esti- erable—deployable equipment such as satellite billion after 38 days of bidding, well over esti- erable—deployable equipment such as satellite mates.12 Dozens of companies engaged in the pro- phones. By giving public safety priority access on mates.12 Dozens of companies engaged in the pro- phones. By giving public safety priority access on cess, but two companies clearly emerged as the other networks, this plan would provide a signifi- cess, but two companies clearly emerged as the other networks, this plan would provide a signifi- leaders. Wireless Strategy, a wireless consulting cant amount of redundancy to the public safety leaders. Wireless Strategy, a wireless consulting cant amount of redundancy to the public safety company, found that AT&T spent $6.637 billion system. The emergence of new wireless technolo- company, found that AT&T spent $6.637 billion system. The emergence of new wireless technolo- and won 227 auctions within the B Block, covering gies now gives carriers a more robust ability to and won 227 auctions within the B Block, covering gies now gives carriers a more robust ability to 62 percent of the U.S. population.13 Verizon spent allow for prioritization of calls. In an emergency, 62 percent of the U.S. population.13 Verizon spent allow for prioritization of calls. In an emergency, $9.363 billion and won 109 auctions: 7 C Block for instance, connecting a call for a firefighter or $9.363 billion and won 109 auctions: 7 C Block for instance, connecting a call for a firefighter or auctions, which included enough spectra to cover police officer would have first priority. auctions, which included enough spectra to cover police officer would have first priority. wireless use by 98 percent of the U.S. population; wireless use by 98 percent of the U.S. population; 25 A Blocks, which could cover 52 percent; and 77 The most controversial element of the NBP’s pub- 25 A Blocks, which could cover 52 percent; and 77 The most controversial element of the NBP’s pub- B Blocks, which could cover 16 percent. lic safety recommendations is “licensing the D Block B Blocks, which could cover 16 percent. lic safety recommendations is “licensing the D Block for commercial use, with options for public safety for commercial use, with options for public safety The FCC, however, did not successfully auction partnership.”18 Unlike the previous auction, this new The FCC, however, did not successfully auction partnership.”18 Unlike the previous auction, this new the D Block. Many restrictions were placed on auction would attach fewer restrictions and allow the the D Block. Many restrictions were placed on auction would attach fewer restrictions and allow the this band, including one that would allow the winner to use the full band. The purchase of the D this band, including one that would allow the winner to use the full band. The purchase of the D winner to only use a fraction of the spectrum for Block, though, would come with stipulations that all winner to only use a fraction of the spectrum for Block, though, would come with stipulations that all their own purposes. Just one company bid for devices function in both the D Block and public safety their own purposes. Just one company bid for devices function in both the D Block and public safety the block but set its bid for $472 million, signifi- blocks. the block but set its bid for $472 million, signifi- blocks.

64 Vol. XVIII, 2010–2011 The Wagner Review 64 Vol. XVIII, 2010–2011 The Wagner Review By ensuring that the communication technologies would cost approximately $15.7 billion in capital By ensuring that the communication technologies would cost approximately $15.7 billion in capital are similar for commercial and public safety uses, expenditures, the rise due to the cost of building are similar for commercial and public safety uses, expenditures, the rise due to the cost of building the NBP recommendation will allow public safety completely new cell towers and complications the NBP recommendation will allow public safety completely new cell towers and complications to benefit from the economies of scale associated with acquiring land to build the towers. The net to benefit from the economies of scale associated with acquiring land to build the towers. The net with a large customer base. Without this interop- present value of the capital expenditures and 10 with a large customer base. Without this interop- present value of the capital expenditures and 10 erability with the commercial networks, public years of operation of a stand-alone network would erability with the commercial networks, public years of operation of a stand-alone network would safety agencies could be forced to purchase equip- be anywhere from $34 billion to $47 billion. safety agencies could be forced to purchase equip- be anywhere from $34 billion to $47 billion. ment that function only in its frequency. For such ment that function only in its frequency. For such specialized and limited users, the costs could be Public Safety’s Opposition specialized and limited users, the costs could be Public Safety’s Opposition quite high. Since agencies will periodically need The organizations representing public safety have quite high. Since agencies will periodically need The organizations representing public safety have to change or upgrade their equipment, this lack fiercely argued against the proposed D Block auction. to change or upgrade their equipment, this lack fiercely argued against the proposed D Block auction. of economies of scale would pose a continuously The National Public-Safety Telecommunications of economies of scale would pose a continuously The National Public-Safety Telecommunications high expense for decades to come. Moreover, by Council established the 700 MHz Broadband Task high expense for decades to come. Moreover, by Council established the 700 MHz Broadband Task tying public safety’s devices to the continually Force in 2008 in order to determine the requirements tying public safety’s devices to the continually Force in 2008 in order to determine the requirements improving commercial networks, there would be for a nationwide, public safety broadband system. improving commercial networks, there would be for a nationwide, public safety broadband system. technological advances that continue to enhance They indicated in their report that allocating the D technological advances that continue to enhance They indicated in their report that allocating the D the spectral efficiency of the communication net- Block to public safety was essential during a disaster: the spectral efficiency of the communication net- Block to public safety was essential during a disaster: works, as well as improvements in interference relying only on the 10 MHz allocated exclusively to works, as well as improvements in interference relying only on the 10 MHz allocated exclusively to prevention.19 public safety would not be enough,21 despite the fact prevention.19 public safety would not be enough,21 despite the fact that the FCC has pointed out that spectrum does not that the FCC has pointed out that spectrum does not equate with capacity.22 equate with capacity.22

We clearly misjudged In February 2010, New York City released a substan- We clearly misjudged In February 2010, New York City released a substan- the interest [in the D tial report furthering the argument for the public allo- the interest [in the D tial report furthering the argument for the public allo- Block] and set rules cation of D Block.23 They argue that beyond the fact Block] and set rules cation of D Block.23 They argue that beyond the fact that apparently that 10 MHz will not provide enough capacity, it also that apparently that 10 MHz will not provide enough capacity, it also inhibited the financing makes technical sense to pair the D Block and public inhibited the financing makes technical sense to pair the D Block and public “ [for bidders]. safety bands because they are parallel. The city agen- “ [for bidders]. safety bands because they are parallel. The city agencies maintain that this pairing will reduce the cost of cies maintain that this pairing will reduce the cost of equipment as auctioning the D Block will split the equipment as auctioning the D Block will split the public safety bands, requiring separate wireless net- public safety bands, requiring separate wireless networks for voice and data transmissions. works for voice and data transmissions. The FCC’s Omnibus Broadband Initiative (OBI), The FCC’s Omnibus Broadband Initiative (OBI), a cost analysis of the public safety network plan Public safety officials also claim that commercial a cost analysis of the public safety network plan Public safety officials also claim that commercial in the NBP, estimates that the federal government networks are simply not reliable enough. Whatever in the NBP, estimates that the federal government networks are simply not reliable enough. Whatever would need to spend $6.5 billion over 10 years knocks the public safety network offline would prob- would need to spend $6.5 billion over 10 years knocks the public safety network offline would prob- to develop a public safety network with public- ably also knock out the commercial networks, as to develop a public safety network with public- ably also knock out the commercial networks, as private partnerships.20 The bulk of this estimated happened during Hurricane Katrina. Even if the net- private partnerships.20 The bulk of this estimated happened during Hurricane Katrina. Even if the net- expense would be $4 billion to add public safety works are not knocked offline, customers tend to rush expense would be $4 billion to add public safety works are not knocked offline, customers tend to rush hardware onto 41,600 commercial towers and $1.5 to use their devices during an emergency, bringing hardware onto 41,600 commercial towers and $1.5 to use their devices during an emergency, bringing billion to upgrade the security and backup energy down local networks. This was the case on September billion to upgrade the security and backup energy down local networks. This was the case on September for commercial towers. After these initial expen- 11, when most of the local telephone infrastructure for commercial towers. After these initial expen- 11, when most of the local telephone infrastructure ditures, the OBI estimates approximately $1.3 bil- was inoperable. Consequently, the NYPD and the ditures, the OBI estimates approximately $1.3 bil- was inoperable. Consequently, the NYPD and the lion per year will be necessary for ongoing costs, Association of Public-Safety Communications Offi- lion per year will be necessary for ongoing costs, Association of Public-Safety Communications Offi- which it suggests could be collected from a broad- cials International both explain that during these crit- which it suggests could be collected from a broad- cials International both explain that during these crit- band tax. ical incidents, emergency responders cannot even rely band tax. ical incidents, emergency responders cannot even rely on the commercial networks as a backup. This logic on the commercial networks as a backup. This logic An independent network deployed by the states highlights, though, that even if public safety had the An independent network deployed by the states highlights, though, that even if public safety had the and federal government, however, has much D Block, there would be no effect on the stability of and federal government, however, has much D Block, there would be no effect on the stability of higher estimated costs. The FCC estimates it the physical infrastructure of cell towers. More spec- higher estimated costs. The FCC estimates it the physical infrastructure of cell towers. More spec-

Efficient Spectrum Policy Coulter 65 Efficient Spectrum Policy Coulter 65 tra would do little to ensure the physical strength of Block to public safety.26 The bill would raise initial tra would do little to ensure the physical strength of Block to public safety.26 The bill would raise initial the towers during a disaster. funds for building the network by auctioning a differ- the towers during a disaster. funds for building the network by auctioning a different piece of spectrum for $5.5 billion and would raise ent piece of spectrum for $5.5 billion and would raise The D Block is also a relatively small section of the an additional $5.5 billion for ongoing costs through The D Block is also a relatively small section of the an additional $5.5 billion for ongoing costs through spectrum. The New York City white paper specifi- another auction. This funding, however, is less than spectrum. The New York City white paper specifi- another auction. This funding, however, is less than cally addressed the National Telecommunications the FCC cost estimates for building a public safety cally addressed the National Telecommunications the FCC cost estimates for building a public safety and Information Administration’s suggestion that 700 network with a commercial partner and significantly and Information Administration’s suggestion that 700 network with a commercial partner and significantly MHz more spectrum will need to be opened to sup- less than a government-built network. MHz more spectrum will need to be opened to sup- less than a government-built network. port increases in mobile broadband demand. Since port increases in mobile broadband demand. Since the publication of the paper, the Obama administra- Opposed to the auction in the House are Representa- the publication of the paper, the Obama administra- Opposed to the auction in the House are Representa- tion announced its plans to reallocate 500 MHz to tive Peter King (R-NY) and Representative Anthony tion announced its plans to reallocate 500 MHz to tive Peter King (R-NY) and Representative Anthony auction for mobile broadband.24 This 500 MHz will Weiner (D-NY). King is the primary sponsor of the auction for mobile broadband.24 This 500 MHz will Weiner (D-NY). King is the primary sponsor of the come from federal use as well as from potential agree- Broadband for First Responders Act, which would come from federal use as well as from potential agree- Broadband for First Responders Act, which would ments with television broadcasters to sublicense their amend the previous legislation to use the D Block to ments with television broadcasters to sublicense their amend the previous legislation to use the D Block to spectrum. The D Block represents 10 MHz—or only increase public safety’s spectrum allocation. A look at spectrum. The D Block represents 10 MHz—or only increase public safety’s spectrum allocation. A look at 2 percent—of the total amount of broadband that the the co-sponsors of the bill shows the bipartisan nature 2 percent—of the total amount of broadband that the the co-sponsors of the bill shows the bipartisan nature federal government will open up for commercial use. of the issue, with 43 Democrats and 26 Republicans federal government will open up for commercial use. of the issue, with 43 Democrats and 26 Republicans They contend that with so many spectra opening up supporting the legislation.27 They contend that with so many spectra opening up supporting the legislation.27 in the future, why does the government not simply in the future, why does the government not simply look elsewhere for profit-generating spectra? On the other hand, the House Committee on Energy look elsewhere for profit-generating spectra? On the other hand, the House Committee on Energy and Commerce is considering a bill supporting the and Commerce is considering a bill supporting the Politically, public safety officials frame the proposal to auction of the D Block. Representative Henry Wax- Politically, public safety officials frame the proposal to auction of the D Block. Representative Henry Wax- auction the D Block as the federal government favor- man (D-CA) and Representative Rick Boucher auction the D Block as the federal government favor- man (D-CA) and Representative Rick Boucher ing short-term economic benefits over the long-term (D-VA) are working on the draft of the public safety ing short-term economic benefits over the long-term (D-VA) are working on the draft of the public safety public good. This is a compelling argument, suggest- Broadband Act of 2010, which would enact many of public good. This is a compelling argument, suggest- Broadband Act of 2010, which would enact many of ing that the FCC and the federal government are the FCC recommendations. The legislation directs ing that the FCC and the federal government are the FCC recommendations. The legislation directs more interested in money than firefighters. Another the FCC to increase the flexibility of its rules sur- more interested in money than firefighters. Another the FCC to increase the flexibility of its rules sur- public safety advocacy group, the Public Safety Alli- rounding public safety communication to allow for public safety advocacy group, the Public Safety Alli- rounding public safety communication to allow for ance, used similar language when they launched a sharing of bands with commercial providers. 28 In this ance, used similar language when they launched a sharing of bands with commercial providers. 28 In this $500,000 advertising campaign and lobbying effort to plan, funding for the public safety network would $500,000 advertising campaign and lobbying effort to plan, funding for the public safety network would oppose the D Block auction in the summer of 2010.25 come primarily from the auction of the D Block. oppose the D Block auction in the summer of 2010.25 come primarily from the auction of the D Block. These lobbying efforts focused congressional atten- These lobbying efforts focused congressional attention to this issue and began developing momentum Mobile Providers tion to this issue and began developing momentum Mobile Providers for public safety taking over the D Block. Further aligned against a D Block auction are for public safety taking over the D Block. Further aligned against a D Block auction are the winners of the 700 MHz auction: AT&T and the winners of the 700 MHz auction: AT&T and Congress Verizon.29 Both companies have made a signifi- Congress Verizon.29 Both companies have made a signifi- Members of Congress also want a public safety net- cant investment in the 700 MHz band and appear Members of Congress also want a public safety net- cant investment in the 700 MHz band and appear work but are somewhat divided on the D Block interested in preventing further entrants into the work but are somewhat divided on the D Block interested in preventing further entrants into the question. The debate in the House is similar to the market. Limiting access to this lucrative band will question. The debate in the House is similar to the market. Limiting access to this lucrative band will argument between public safety agencies and the help limit competitors and potentially allow them argument between public safety agencies and the help limit competitors and potentially allow them FCC: either auction the D Block for private use or to keep prices up on their 4G wireless services. FCC: either auction the D Block for private use or to keep prices up on their 4G wireless services. give it exclusively to public safety. Interestingly, there Hardware manufacturers are also opposed to the give it exclusively to public safety. Interestingly, there Hardware manufacturers are also opposed to the does not appear to be any partisan split on this issue: potential auction. Motorola, the major provider of does not appear to be any partisan split on this issue: potential auction. Motorola, the major provider of the D Block auction has strong opposition from both most public safety equipment, resists the auction, the D Block auction has strong opposition from both most public safety equipment, resists the auction, Democrats and Republicans. likely because the requirement of device interoper- Democrats and Republicans. likely because the requirement of device interoperability across the entire 700 MHz band would draw ability across the entire 700 MHz band would draw Those against the auction currently include Joe Lieber- new competition into the market.30 On the other Those against the auction currently include Joe Lieber- new competition into the market.30 On the other man (I-CT) and Senator John McCain (R-AZ). Both hand, wireless providers that were shut out of the man (I-CT) and Senator John McCain (R-AZ). Both hand, wireless providers that were shut out of the of these senators are sponsors of the First Respond- 700 MHz auction support an auction. Sprint Nex- of these senators are sponsors of the First Respond- 700 MHz auction support an auction. Sprint Nex- ers Protection Act of 2010, which would give the D tel and T-Mobile welcome the auction because it ers Protection Act of 2010, which would give the D tel and T-Mobile welcome the auction because it

66 Vol. XVIII, 2010–2011 The Wagner Review 66 Vol. XVIII, 2010–2011 The Wagner Review would give them an opportunity to acquire some In the following section, I recommend the first would give them an opportunity to acquire some In the following section, I recommend the first of the best spectrum available.31 In fact, specula- option—auctioning the D Block to a commercial of the best spectrum available.31 In fact, specula- option—auctioning the D Block to a commercial tion is that the FCC will set up the auction rules carrier—based on the economic realities of the tech- tion is that the FCC will set up the auction rules carrier—based on the economic realities of the tech- to either explicitly block AT&T and Verizon from nology, capital expenses, and maintenance involved to either explicitly block AT&T and Verizon from nology, capital expenses, and maintenance involved bidding or set a technical restriction that prevents in establishing a safety-communications network. bidding or set a technical restriction that prevents in establishing a safety-communications network. any user with more than a certain amount of the These significant costs support the plan to auction the any user with more than a certain amount of the These significant costs support the plan to auction the 700 MHz spectrum from bidding.32 spectrum to a commercial carrier with whom public 700 MHz spectrum from bidding.32 spectrum to a commercial carrier with whom public safety agencies would collaborate to build a network. safety agencies would collaborate to build a network. Therefore, it is not surprising that BusinessWeek However, because of the current political climate, the Therefore, it is not surprising that BusinessWeek However, because of the current political climate, the notes that the Public Safety Alliance is indirectly FCC may ultimately be unable to achieve this. notes that the Public Safety Alliance is indirectly FCC may ultimately be unable to achieve this. sponsored by two of the largest winners of the sponsored by two of the largest winners of the 700 MHz auction, AT&T and Verizon, as well as Technology 700 MHz auction, AT&T and Verizon, as well as Technology two of the largest public safety equipment manu- The arguments for auctioning the D Block based two of the largest public safety equipment manu- The arguments for auctioning the D Block based facturers, Motorola and Alcatel-Lucent.33 Though on technological needs are ultimately stron- facturers, Motorola and Alcatel-Lucent.33 Though on technological needs are ultimately stron- this is not an unusual practice, it is important to ger than the opposition’s. All players in the D this is not an unusual practice, it is important to ger than the opposition’s. All players in the D differentiate between valid public safety concerns Block debate support building a new, interoper- differentiate between valid public safety concerns Block debate support building a new, interoper- and what are perhaps inflated concerns to protect able broadband network for public safety. From and what are perhaps inflated concerns to protect able broadband network for public safety. From business interests. The funding that public safety an efficient-spectrum-usage standpoint, though, business interests. The funding that public safety an efficient-spectrum-usage standpoint, though, advocacy organizations receive from large corpora- public safety has nominal day-to-day usage, with advocacy organizations receive from large corpora- public safety has nominal day-to-day usage, with tions, which would benefit greatly from the pub- intermittent spikes during emergencies. As the tions, which would benefit greatly from the pub- intermittent spikes during emergencies. As the lic use of the D Block, undermine their argument FCC argues, it would be inefficient for public lic use of the D Block, undermine their argument FCC argues, it would be inefficient for public that the federal government is more interested in safety to be allotted vast amounts of spectrum that that the federal government is more interested in safety to be allotted vast amounts of spectrum that short-term economics than long-term safety. would most of the time go unused. As examples short-term economics than long-term safety. would most of the time go unused. As examples like Hurricane Katrina and September 11 show, like Hurricane Katrina and September 11 show, The White House however, it is critically important that public The White House however, it is critically important that public Throughout 2010, the Obama administration sup- safety has the capacity to handle these emergency Throughout 2010, the Obama administration sup- safety has the capacity to handle these emergency ported the FCC’s arguments about the D Block situations. While not tested on a large-scale yet, ported the FCC’s arguments about the D Block situations. While not tested on a large-scale yet, auction but had not endorsed any plan for fear of priority roaming of public safety agencies onto auction but had not endorsed any plan for fear of priority roaming of public safety agencies onto upsetting public safety interests. However, the White commercial networks should provide a vastly upsetting public safety interests. However, the White commercial networks should provide a vastly House reversed positions in the beginning of 2011 larger amount of potential capacity for the opera- House reversed positions in the beginning of 2011 larger amount of potential capacity for the opera- and began to push Congress to allocate the D Block tion of their devices during emergencies. and began to push Congress to allocate the D Block tion of their devices during emergencies. exclusively to public safety.34 This was likely a political exclusively to public safety.34 This was likely a political response to the approaching 10th anniversary of the Another important consideration is the power of response to the approaching 10th anniversary of the Another important consideration is the power of September 11 attacks. market forces in driving technological innovation. September 11 attacks. market forces in driving technological innovation. As the advances in mobile technology have illus- As the advances in mobile technology have illus- Recommendations trated over the past decade, the consumer demand Recommendations trated over the past decade, the consumer demand and Discussion for newer and faster devices drives technological and Discussion for newer and faster devices drives technological improvement. Public safety has generally not been improvement. Public safety has generally not been As I have detailed in this paper, any decision about a part of these advances because its networks were As I have detailed in this paper, any decision about a part of these advances because its networks were the D Block is complicated. There appear, however, technologically isolated from commercial networks. the D Block is complicated. There appear, however, technologically isolated from commercial networks. to be two clear options under consideration: By connecting the technological evolution of the to be two clear options under consideration: By connecting the technological evolution of the public safety network to the advancement of com- public safety network to the advancement of com- Auction the D Block to a private company, with mercial networks, it is likely that data compression Auction the D Block to a private company, with mercial networks, it is likely that data compression the federal and state governments supplementing will improve and speeds will increase, allowing for the federal and state governments supplementing will improve and speeds will increase, allowing for building costs for a public safety network with more-efficient spectrum use for all users. building costs for a public safety network with more-efficient spectrum use for all users. this commercial partner. this commercial partner. Finally, an auction would provide needed compe- Finally, an auction would provide needed compe- Allocate the D Block to public safety, with the tition in the 700 MHz band. AT&T and Verizon Allocate the D Block to public safety, with the tition in the 700 MHz band. AT&T and Verizon federal and state governments absorbing all costs dominate this band and have little incentive to federal and state governments absorbing all costs dominate this band and have little incentive to to build a public safety network. lower prices. While wireless carriers will face com- to build a public safety network. lower prices. While wireless carriers will face com-

Efficient Spectrum Policy Coulter 67 Efficient Spectrum Policy Coulter 67 petition from wire-line internet providers such as and firefighters frequently face cuts in staff and petition from wire-line internet providers such as and firefighters frequently face cuts in staff and cable companies, the future of broadband is in resources, a broadband network will most likely cable companies, the future of broadband is in resources, a broadband network will most likely wireless connections. By allowing more firms into never receive adequate financial support. wireless connections. By allowing more firms into never receive adequate financial support. this space, the government is ensuring a competi- this space, the government is ensuring a competitive and robust wireless broadband future. While this may not always be the case, the United tive and robust wireless broadband future. While this may not always be the case, the United States appears increasingly unable to maintain its States appears increasingly unable to maintain its Capital Expenditures infrastructure, from roads to levees to water pipes. Capital Expenditures infrastructure, from roads to levees to water pipes. Auctioning the D Block, building out a nation- The American Society of Civil Engineers released Auctioning the D Block, building out a nation- The American Society of Civil Engineers released wide broadband network, and the long-term a report in 2009 estimating that the federal gov- wide broadband network, and the long-term a report in 2009 estimating that the federal gov- ramifications of a public-private partnership ernment needed to spend upwards of $2.2 trillion ramifications of a public-private partnership ernment needed to spend upwards of $2.2 trillion are overwhelmingly strong arguments for the to bring the country’s infrastructure up to date.36 are overwhelmingly strong arguments for the to bring the country’s infrastructure up to date.36 FCC’s plan to auction the D Block and develop Considering the U.S.’s inability to fund the main- FCC’s plan to auction the D Block and develop Considering the U.S.’s inability to fund the main- a close collaboration with a commercial partner. tenance of essential services like water and sewage, a close collaboration with a commercial partner. tenance of essential services like water and sewage, While some argue this is a crass justification at it appears increasingly likely that the same fate While some argue this is a crass justification at it appears increasingly likely that the same fate the expense of the public good, the economics would befall a national wireless network. the expense of the public good, the economics would befall a national wireless network. of building and maintaining this network work of building and maintaining this network work out such that a public-private partnership is the These concerns should caution anyone suggest- out such that a public-private partnership is the These concerns should caution anyone suggest- most feasible way of building a network that can ing a fully government run network. Relying on most feasible way of building a network that can ing a fully government run network. Relying on be effectively maintained over the long run. First, federal money for network construction could be effectively maintained over the long run. First, federal money for network construction could with estimates of over $3 billion, the auction will potentially be more detrimental than relying on a with estimates of over $3 billion, the auction will potentially be more detrimental than relying on a generate significant revenue for the federal gov- private company. For instance, the initial build- generate significant revenue for the federal gov- private company. For instance, the initial build- ernment to build the network.35 out will require significant spending, as much as ernment to build the network.35 out will require significant spending, as much as the $40 billion estimated by the FCC. Consid- the $40 billion estimated by the FCC. Consid- Considering current economic conditions, a part- ering the conservative turn in the 2010 midterm Considering current economic conditions, a part- ering the conservative turn in the 2010 midterm nership between a private company and the public elections, it is unlikely that Congress will be able nership between a private company and the public elections, it is unlikely that Congress will be able safety network entity, as proposed by the FCC, will to secure this additional spending. safety network entity, as proposed by the FCC, will to secure this additional spending. be the most feasible solution for covering construc- be the most feasible solution for covering construction costs. Allowing public safety to rely on its com- Politics of the Auction tion costs. Allowing public safety to rely on its com- Politics of the Auction mercial partner to cover initial construction outlays, Politically, public safety has a significantly stron- mercial partner to cover initial construction outlays, Politically, public safety has a significantly stron- with federal and state governments covering only ger argument for not auctioning the D Block. with federal and state governments covering only ger argument for not auctioning the D Block. the additional costs associated with increasing pub- Framing the issue as one of profit over people the additional costs associated with increasing pub- Framing the issue as one of profit over people lic safety’s standards, is the most realistic scheme of works on a number of levels. For instance, the lic safety’s standards, is the most realistic scheme of works on a number of levels. For instance, the covering these capital expenditures. suggestion of helping the public good at the covering these capital expenditures. suggestion of helping the public good at the expense of wireless carriers will appeal to many expense of wireless carriers will appeal to many Maintenance liberal and Democratic politicians. On the con- Maintenance liberal and Democratic politicians. On the con- A partnership presents an opportunity to not only servative side, politicians can also easily recall the A partnership presents an opportunity to not only servative side, politicians can also easily recall the lower initial costs but also decrease ongoing costs. heroism of emergency responders during Septem- lower initial costs but also decrease ongoing costs. heroism of emergency responders during Septem- As a commercial network faces pressure from con- ber 11 and imply that supporting the allocation of As a commercial network faces pressure from con- ber 11 and imply that supporting the allocation of sumers to continue to maintain its infrastructure, the D Block to public safety is the equivalent of sumers to continue to maintain its infrastructure, the D Block to public safety is the equivalent of maintenance will be prioritized more quickly than supporting those heroes. By stating the issue as maintenance will be prioritized more quickly than supporting those heroes. By stating the issue as if it were the sole responsibility of the government. a choice between helping first responders or put- if it were the sole responsibility of the government. a choice between helping first responders or put- As public safety is not a paying customer with the ting them in jeopardy, supporters of allocation for As public safety is not a paying customer with the ting them in jeopardy, supporters of allocation for ability to switch providers, a network built and public safety currently have the upper hand and ability to switch providers, a network built and public safety currently have the upper hand and run by the government will never face the same momentum behind their plans. run by the government will never face the same momentum behind their plans. demands for upgrades as a commercial network. demands for upgrades as a commercial network. A completely public network would face almost This is not to say that there is no other way to A completely public network would face almost This is not to say that there is no other way to none of the economic pressures of a commercial frame this issue and potentially realign political none of the economic pressures of a commercial frame this issue and potentially realign political broadband network and would be dependent on consensus on the FCC’s recommendations. As broadband network and would be dependent on consensus on the FCC’s recommendations. As the fickle nature of government funding. Con- discussed earlier, the economic situation provides the fickle nature of government funding. Con- discussed earlier, the economic situation provides sidering that during economic downturns, police a strong basis for the auction. Arguing that this sidering that during economic downturns, police a strong basis for the auction. Arguing that this

68 Vol. XVIII, 2010–2011 The Wagner Review 68 Vol. XVIII, 2010–2011 The Wagner Review plan is the most fiscally sound option may increase Public safety makes a valid argument about its plan is the most fiscally sound option may increase Public safety makes a valid argument about its support. In many ways, a public-private partner- capacity needs in the future. In fact, the allocation support. In many ways, a public-private partner- capacity needs in the future. In fact, the allocation ship is a more conservative, smaller-government of a wide swathe of spectrum for public safety to ship is a more conservative, smaller-government of a wide swathe of spectrum for public safety to approach to achieving the public safety network. allow for growth and expansion is convincing. The approach to achieving the public safety network. allow for growth and expansion is convincing. The Suggesting that the public safety network is an reality, though, is that current economic uncertainty Suggesting that the public safety network is an reality, though, is that current economic uncertainty unnecessary waste of taxpayers’ money as well as and the inability of the U.S. to address critical issues unnecessary waste of taxpayers’ money as well as and the inability of the U.S. to address critical issues a burdensome cost that will prevent reduction of of infrastructure maintenance and upgrades suggest a burdensome cost that will prevent reduction of of infrastructure maintenance and upgrades suggest the federal deficit could garner support for the that the federal government is not in a position to the federal deficit could garner support for the that the federal government is not in a position to FCC’s plan. However, the fiscal responsibility do this. FCC’s plan. However, the fiscal responsibility do this. argument may not have more traction than the argument may not have more traction than the patriotism-inducing arguments of helping those Should the FCC auction off the D Block, it is pos- patriotism-inducing arguments of helping those Should the FCC auction off the D Block, it is pos- who helped us on September 11 with conserva- sible that, decades from now, public safety will who helped us on September 11 with conserva- sible that, decades from now, public safety will tives, but it is a potential strategy to combat pub- require more capacity. This is a real risk and a valid tives, but it is a potential strategy to combat pub- require more capacity. This is a real risk and a valid lic safety’s argument. concern for public safety organizations. But it is also lic safety’s argument. concern for public safety organizations. But it is also just as likely that 40 years from now, a government- just as likely that 40 years from now, a government- Conclusion run network will be exactly the same as the day it Conclusion run network will be exactly the same as the day it was built, or perhaps even in a state of disrepair was built, or perhaps even in a state of disrepair The best course of action for Congress and the Obama because of Congress’s inability to fund upkeep. Fur- The best course of action for Congress and the Obama because of Congress’s inability to fund upkeep. Fur- administration is to support the auction of the D ther, the technologies used in a hypothetical pub- administration is to support the auction of the D ther, the technologies used in a hypothetical pub- Block for commercial use and create a public-private lic safety network with no commercial partner will Block for commercial use and create a public-private lic safety network with no commercial partner will partnership with the winner. Auctioning the D Block likely advance very slowly. Without the benefits of partnership with the winner. Auctioning the D Block likely advance very slowly. Without the benefits of will generate revenue that will go directly to building the technological improvements that public safety will generate revenue that will go directly to building the technological improvements that public safety the public safety network. The winner of the auction will receive from a commercial network, officials the public safety network. The winner of the auction will receive from a commercial network, officials will be required to build a network that will function as might eventually be left with outdated equipment will be required to build a network that will function as might eventually be left with outdated equipment the infrastructure of the public safety network. Twen- and network technology. Without a commercial the infrastructure of the public safety network. Twen- and network technology. Without a commercial ty-four megahertz will be solely for the use of public partner, public safety could find its communication ty-four megahertz will be solely for the use of public partner, public safety could find its communication safety and, in extreme situations, public safety may infrastructure in the same outdated condition it is safety and, in extreme situations, public safety may infrastructure in the same outdated condition it is roam onto the commercial networks on the D Block. in now. roam onto the commercial networks on the D Block. in now.

GLOSSARY GLOSSARY

4G: Refers to “Fourth Generation” wireless tech- allowing for narrower transmissions. Common 4G: Refers to “Fourth Generation” wireless tech- allowing for narrower transmissions. Common nology. Starting with the original analog net- uses of the spectrum include FM radio stations nology. Starting with the original analog net- uses of the spectrum include FM radio stations works—1G—in the 1980’s meant solely for voice (88-108 MHz) and television stations (such as 54 works—1G—in the 1980’s meant solely for voice (88-108 MHz) and television stations (such as 54 use to the newest technology, 4G will allow data to 88 megahertz for channels 2 through 6, 174 to use to the newest technology, 4G will allow data to 88 megahertz for channels 2 through 6, 174 to transmissions up to 40-50 Mbit/s and signifi- 220 megahertz for channels 7 through 13). 39 transmissions up to 40-50 Mbit/s and signifi- 220 megahertz for channels 7 through 13). 39 cantly faster speeds in the next decade. 37 cantly faster speeds in the next decade. 37 D Block: An FCC-designated 10 MHz band of D Block: An FCC-designated 10 MHz band of 700 MHz Band: The section of spectrum freed up spectrum located within the 700 MHz band from 700 MHz Band: The section of spectrum freed up spectrum located within the 700 MHz band from after the transition to digital television. The 700 758-763 and 788-793 MHz.40 after the transition to digital television. The 700 758-763 and 788-793 MHz.40 MHz band is considered the “sweet spot” of spec- MHz band is considered the “sweet spot” of spectrum because of its potential for faster speeds and Spectrum: The electromagnetic spectrum trum because of its potential for faster speeds and Spectrum: The electromagnetic spectrum better penetration through walls and buildings. 38 includes everything from x-rays to light. Radio better penetration through walls and buildings. 38 includes everything from x-rays to light. Radio spectrum—or simply spectrum in this paper— spectrum—or simply spectrum in this paper— Bands/blocks: Spectrum is divided by regula- refers the electromagnetic radio frequencies that Bands/blocks: Spectrum is divided by regula- refers the electromagnetic radio frequencies that tory agencies according to bands or blocks. These can wirelessly carry data such as text, audio, and tory agencies according to bands or blocks. These can wirelessly carry data such as text, audio, and chunks are then subdivided into further channels, video that occurs between 3 KHz to 3700 MHz.41 chunks are then subdivided into further channels, video that occurs between 3 KHz to 3700 MHz.41

Efficient Spectrum Policy Coulter 69 Efficient Spectrum Policy Coulter 69 Notes News/2010/07/Policy-and-Industry-FCC-Public-Safety-Broadband- Notes News/2010/07/Policy-and-Industry-FCC-Public-Safety-Broadband- Plan-Government/. Plan-Government/. 1 One of the leading representatives of the public safety commu- 18 FCC, Connecting America: The National Broadband Plan, (Wash- 1 One of the leading representatives of the public safety commu- 18 FCC, Connecting America: The National Broadband Plan, (Wash- nity is the National Public-Safety Telecommunications Council, ington, D.C: 2010), http://www.broadband.gov/download-plan/, nity is the National Public-Safety Telecommunications Council, ington, D.C: 2010), http://www.broadband.gov/download-plan/, an advocacy organization that represents a number of member 316. an advocacy organization that represents a number of member 316. organizations such as the American Association of State Highway 19 FCC, “White Paper: The Public Safety Nationwide Interoperable organizations such as the American Association of State Highway 19 FCC, “White Paper: The Public Safety Nationwide Interoperable Transportation Officials, the International Association of Chiefs of Broadband Network: A New Model for Capacity, Performance and Transportation Officials, the International Association of Chiefs of Broadband Network: A New Model for Capacity, Performance and Police, and the International Association of Fire Chiefs. “Who We Cost,” (Washington, D.C: 2010), http://fcc.gov/pshs/docs/releases/ Police, and the International Association of Fire Chiefs. “Who We Cost,” (Washington, D.C: 2010), http://fcc.gov/pshs/docs/releases/ Are,” Public Safety Alliance, retrieved August 28, 2010, http://www. DOC-298799A1.pdf. Are,” Public Safety Alliance, retrieved August 28, 2010, http://www. DOC-298799A1.pdf. psafirst.org/who-we-are. 20 FCC, “A Broadband Network Cost Model: A Basis for Public psafirst.org/who-we-are. 20 FCC, “A Broadband Network Cost Model: A Basis for Public 2 “Public Safety/Private Partnership,” FCC, retrieved September 1, Funding Essential to Bringing Nationwide Interoperable Com- 2 “Public Safety/Private Partnership,” FCC, retrieved September 1, Funding Essential to Bringing Nationwide Interoperable Com- 2010, http://www.fcc.gov/pshs/public-safety-spectrum/700-MHz/ munications to America’s First Responders, OBI Technical Paper 2010, http://www.fcc.gov/pshs/public-safety-spectrum/700-MHz/ munications to America’s First Responders, OBI Technical Paper partnership.html. No. 2.” (Washington, D.C: 2010), http://download.broadband. partnership.html. No. 2.” (Washington, D.C: 2010), http://download.broadband. 3 9/11 Commission, The 9/11 Commission Report, New York (2004): gov/plan/fcc-omnibus-broadband-initiative-(obi)-technical-paper- 3 9/11 Commission, The 9/11 Commission Report, New York (2004): gov/plan/fcc-omnibus-broadband-initiative-(obi)-technical-paper- 278-323. broadband-network-cost-model-basis-for-public-funding-essential- 278-323. broadband-network-cost-model-basis-for-public-funding-essential- 4 “Hurricane Katrina” section is drawn directly from: United States to-bringing-nationwide-interoperable-communications-to-ameri- 4 “Hurricane Katrina” section is drawn directly from: United States to-bringing-nationwide-interoperable-communications-to-ameri- House of Representatives, A Failure of Initiative: The Final Report of cas-first-responders.pdf. House of Representatives, A Failure of Initiative: The Final Report of cas-first-responders.pdf. the Select Bipartisan Committee to Investigate the Preparation for and 21 The Broadband Working Group of the National Public Safety the Select Bipartisan Committee to Investigate the Preparation for and 21 The Broadband Working Group of the National Public Safety Response to Hurricane Katrina, Washington, D.C (2006). Telecommunications Council, “Public Safety 700 MHz Broadband Response to Hurricane Katrina, Washington, D.C (2006). Telecommunications Council, “Public Safety 700 MHz Broadband 5 Ibid. Statement of Requirements,” (Washington D.C.: 2007), http:// 5 Ibid. Statement of Requirements,” (Washington D.C.: 2007), http:// 6 Peter Cramton, “Spectrum Auctions,” in Handbook of Telecommuni- www.npstc.org/documents/Public%20Safety%20700MHz%20 6 Peter Cramton, “Spectrum Auctions,” in Handbook of Telecommuni- www.npstc.org/documents/Public%20Safety%20700MHz%20 cations Economics, eds. Martin Cave, Sumit Kumar Majumdar and Broadband%20SoR%20v0.6.pdf. cations Economics, eds. Martin Cave, Sumit Kumar Majumdar and Broadband%20SoR%20v0.6.pdf. Ingo Vogelsang, (Boston: Elsevier, 2002): 605-639. 22 FCC, “White Paper: The Public Safety Nationwide Interoperable Ingo Vogelsang, (Boston: Elsevier, 2002): 605-639. 22 FCC, “White Paper: The Public Safety Nationwide Interoperable 7 Ronald H. Coase, “The Federal Communications Commission.” Broadband Network: A New Model for Capacity, Performance and 7 Ronald H. Coase, “The Federal Communications Commission.” Broadband Network: A New Model for Capacity, Performance and Journal of Law and Economics 2 (1959): 14. Cost,” (Washington, D.C: 2010), http://fcc.gov/pshs/docs/releases/ Journal of Law and Economics 2 (1959): 14. Cost,” (Washington, D.C: 2010), http://fcc.gov/pshs/docs/releases/ 8 Ibid. 21. DOC-298799A1.pdf. 8 Ibid. 21. DOC-298799A1.pdf. 9 Ibid. 21. 23 Fire Department of the City of New York, Police Department of 9 Ibid. 21. 23 Fire Department of the City of New York, Police Department of 10 “Who We Are,” Public Safety Alliance, retrieved August 28, 2010, the City of New York, and New York City Department of Informa- 10 “Who We Are,” Public Safety Alliance, retrieved August 28, 2010, the City of New York, and New York City Department of Informa- http://www.psafirst.org/who-we-are. tion Technology and Telecommunications, “700 MHz Broadband http://www.psafirst.org/who-we-are. tion Technology and Telecommunications, “700 MHz Broadband 11 John Richtel and Matt Markoff, “F.C.C. Hands Google a Partial Public Safety Applications And Spectrum Requirements,” (New 11 John Richtel and Matt Markoff, “F.C.C. Hands Google a Partial Public Safety Applications And Spectrum Requirements,” (New Victory,” The New York Times, August 1, 2007, http://www.nytimes. York: February 2010), http://www.iwceexpo.com/iwce2010/ Victory,” The New York Times, August 1, 2007, http://www.nytimes. York: February 2010), http://www.iwceexpo.com/iwce2010/ com/2007/08/01/technology/01spectrum.html. CUSTOM/700MHz%20Whitepaper%20on%20Spectrum%20 com/2007/08/01/technology/01spectrum.html. CUSTOM/700MHz%20Whitepaper%20on%20Spectrum%20 12 “Summary for Auction 73,” FCC, retrieved August 20, 2010, Feb%202010%20FINAL.pdf. 12 “Summary for Auction 73,” FCC, retrieved August 20, 2010, Feb%202010%20FINAL.pdf. http://wireless.fcc.gov/auctions/default.htm?job=auction_ 24 Edward Wyatt, “Broadband Availability to Expand,” The New http://wireless.fcc.gov/auctions/default.htm?job=auction_ 24 Edward Wyatt, “Broadband Availability to Expand,” The New summary&id=73. York Times, June 27, 2010, http://www.nytimes.com/2010/06/28/ summary&id=73. York Times, June 27, 2010, http://www.nytimes.com/2010/06/28/ 13 “Summary of Top 10 Winners by Net Winning Bids,” Wireless technology/28broadband.html?_r=1. 13 “Summary of Top 10 Winners by Net Winning Bids,” Wireless technology/28broadband.html?_r=1. Strategy, Retrieved August 2, 2010, http://www.wirelessstrategy. 25 Todd Shields, “AT&T, Verizon Join Police to Fight FCC Airwaves Strategy, Retrieved August 2, 2010, http://www.wirelessstrategy. 25 Todd Shields, “AT&T, Verizon Join Police to Fight FCC Airwaves com/700auction.html. Plan,” BusinessWeek, June 17, 2010, retrieved August 2, 2010, http:// com/700auction.html. Plan,” BusinessWeek, June 17, 2010, retrieved August 2, 2010, http:// 14 “Summary for Auction 73,” FCC, Retrieved August 20, 2010, www.businessweek.com/news/2010-06-17/at-t-verizon-join-police- 14 “Summary for Auction 73,” FCC, Retrieved August 20, 2010, www.businessweek.com/news/2010-06-17/at-t-verizon-join-police- 2010, http://wireless.fcc.gov/auctions/default.htm?job=auction_ to-fight-fcc-airwaves-plan-update1-.html. 2010, http://wireless.fcc.gov/auctions/default.htm?job=auction_ to-fight-fcc-airwaves-plan-update1-.html. summary&id=73. 26 Office of Senator John McCain, “Senators McCain and Lieberman summary&id=73. 26 Office of Senator John McCain, “Senators McCain and Lieberman 15 Paul Kapustka, “FCC May Examine ‘D’ Block Auction Fiasco,” Move to Open More Spectrum to First Responders,” July 21, 2010, 15 Paul Kapustka, “FCC May Examine ‘D’ Block Auction Fiasco,” Move to Open More Spectrum to First Responders,” July 21, 2010, 2008, in GigaOM, edited by Om Malik, retrieved August 20, 2010, retrieved August 12, 2010, http://mccain.senate.gov/public/index. 2008, in GigaOM, edited by Om Malik, retrieved August 20, 2010, retrieved August 12, 2010, http://mccain.senate.gov/public/index. http://gigaom.com/2008/02/11/fcc-may-examine-d-block-auction- cfm?FuseAction=PressOffice.PressReleases&ContentRecord_ http://gigaom.com/2008/02/11/fcc-may-examine-d-block-auction- cfm?FuseAction=PressOffice.PressReleases&ContentRecord_ fiasco/. id=f6f4bfa4-ece0-1ceb-98e1-ebbdcd599205. fiasco/. id=f6f4bfa4-ece0-1ceb-98e1-ebbdcd599205. 16 FCC, Connecting America: The National Broadband Plan, (Wash- 27 Broadband for First Responders Act of 2010, H.R.5081, (2010). 16 FCC, Connecting America: The National Broadband Plan, (Wash- 27 Broadband for First Responders Act of 2010, H.R.5081, (2010). ington, D.C: 2010), http://www.broadband.gov/download-plan/. 28 Committee on Energy and Commerce, “Discussion Draft ington, D.C: 2010), http://www.broadband.gov/download-plan/. 28 Committee on Energy and Commerce, “Discussion Draft 17 Joelle Tessler, “FCC, Public Safety at Odds Over Broadband Summary The Public Safety Broadband Act Of 2010,” retrieved 17 Joelle Tessler, “FCC, Public Safety at Odds Over Broadband Summary The Public Safety Broadband Act Of 2010,” retrieved Plan(2),” July 26, 2010, WirelessWeek, http://www.wirelessweek.com/ August 28th, 2010, http://energycommerce.house.gov/ Plan(2),” July 26, 2010, WirelessWeek, http://www.wirelessweek.com/ August 28th, 2010, http://energycommerce.house.gov/

70 Vol. XVIII, 2010–2011 The Wagner Review 70 Vol. XVIII, 2010–2011 The Wagner Review documents/20100615/Public.Safety.Broadband.Act.Discussion. 36 Michael Cooper, “U.S. Infrastructure Is in Dire Straits, Report documents/20100615/Public.Safety.Broadband.Act.Discussion. 36 Michael Cooper, “U.S. Infrastructure Is in Dire Straits, Report Draft.Summary.6.14.10.pdf. Says,” The New York Times, January 27, 2009, retrieved August 25, Draft.Summary.6.14.10.pdf. Says,” The New York Times, January 27, 2009, retrieved August 25, 29 Todd Shields, “AT&T, Verizon Join Police to Fight FCC Airwaves 2010, http://www.nytimes.com/2009/01/28/us/politics/28projects. 29 Todd Shields, “AT&T, Verizon Join Police to Fight FCC Airwaves 2010, http://www.nytimes.com/2009/01/28/us/politics/28projects. Plan,” BuisnessWeek, June 17, 2010, retrieved August 2, 2010, http:// html. Plan,” BuisnessWeek, June 17, 2010, retrieved August 2, 2010, http:// html. www.businessweek.com/news/2010-06-17/at-t-verizon-join-police- 37 Verizon Wireless, “Verizon Wireless’ 4G LTE Network Testing www.businessweek.com/news/2010-06-17/at-t-verizon-join-police- 37 Verizon Wireless, “Verizon Wireless’ 4G LTE Network Testing to-fight-fcc-airwaves-plan-update1-.html. Promises Significantly Faster Speeds Than Current 3G Networks,” to-fight-fcc-airwaves-plan-update1-.html. Promises Significantly Faster Speeds Than Current 3G Networks,” 30 Ibid. March 8, 2010, retrieved August 20, 2010, http://news.vzw.com/ 30 Ibid. March 8, 2010, retrieved August 20, 2010, http://news.vzw.com/ 31 Sprint Nextel, “Sprint Voices Support for FCC Chairman on 700 news/2010/03/pr2010-03-02b.html. 31 Sprint Nextel, “Sprint Voices Support for FCC Chairman on 700 news/2010/03/pr2010-03-02b.html. MHz D Block Announcement,” retrieved August 29, 2010, http:// 38 Daniel Langendorf, “FCC’s 700 Mhz spectrum auction begins MHz D Block Announcement,” retrieved August 29, 2010, http:// 38 Daniel Langendorf, “FCC’s 700 Mhz spectrum auction begins newsroom.sprint.com/article_display.cfm?article_id=1458. today; why it matters and gives us hope,” January 24, 2008, newsroom.sprint.com/article_display.cfm?article_id=1458. today; why it matters and gives us hope,” January 24, 2008, 32 Cecilia Kang, “Disputes weigh on proposed public safety network.” retrieved August 12, 2010, http://www.last100.com/2008/01/24/fccs- 32 Cecilia Kang, “Disputes weigh on proposed public safety network.” retrieved August 12, 2010, http://www.last100.com/2008/01/24/fccs- The Washington Post, June 3, 2010, retrieved August 28, 2010, http:// 700-mhz-spectrum-auction-begins-today-why-it-matters-and-gives- The Washington Post, June 3, 2010, retrieved August 28, 2010, http:// 700-mhz-spectrum-auction-begins-today-why-it-matters-and-gives- voices.washingtonpost.com/posttech/2010/06/after_the_terror- us-hope/. voices.washingtonpost.com/posttech/2010/06/after_the_terror- us-hope/. ist_attacks_of.html. 39 Om Malik, “700 MHz Explained in 10 Steps,” March 4, 2007, in ist_attacks_of.html. 39 Om Malik, “700 MHz Explained in 10 Steps,” March 4, 2007, in 33 Todd Shields, “AT&T, Verizon Join Police to Fight FCC Airwaves GigaOM, edited by Om Malik, Retrieved August 2, 2010, http:// 33 Todd Shields, “AT&T, Verizon Join Police to Fight FCC Airwaves GigaOM, edited by Om Malik, Retrieved August 2, 2010, http:// Plan,” BusinessWeek, June 17, 2010, retrieved August 2, 2010, http:// gigaom.com/2007/03/14/700mhz-explained/. Plan,” BusinessWeek, June 17, 2010, retrieved August 2, 2010, http:// gigaom.com/2007/03/14/700mhz-explained/. www.businessweek.com/news/2010-06-17/at-t-verizon-join-police- 40 FCC, “Factsheet for Auction 73,” March 20, 2008, retrieved www.businessweek.com/news/2010-06-17/at-t-verizon-join-police- 40 FCC, “Factsheet for Auction 73,” March 20, 2008, retrieved to-fight-fcc-airwaves-plan-update1-.html. September, 9, 2010, http://wireless.fcc.gov/auctions/default. to-fight-fcc-airwaves-plan-update1-.html. September, 9, 2010, http://wireless.fcc.gov/auctions/default. 34 Edward Wyatt, “A Big Boost for National Emergency Network,” htm?job=auction_factsheet&id=73. 34 Edward Wyatt, “A Big Boost for National Emergency Network,” htm?job=auction_factsheet&id=73. The New York Times, January 27, 2011, retrieved February 9, 2011, 41 Radio-Electronics.com, “Electromagnetic waves and the elec- The New York Times, January 27, 2011, retrieved February 9, 2011, 41 Radio-Electronics.com, “Electromagnetic waves and the elec- http://www.nytimes.com/2011/01/28/business/media/28spectrum. tromagnetic spectrum,” retrieved August 28, 2010, http://www. http://www.nytimes.com/2011/01/28/business/media/28spectrum. tromagnetic spectrum,” retrieved August 28, 2010, http://www. html. radio-electronics.com/info/propagation/em_waves/electromagnetic- html. radio-electronics.com/info/propagation/em_waves/electromagnetic- 35 Ibid. waves-spectrum.php. 35 Ibid. waves-spectrum.php.

Efficient Spectrum Policy Coulter 71 Efficient Spectrum Policy Coulter 71 72 Vol. XVIII, 2010–2011 The Wagner Review 72 Vol. XVIII, 2010–2011 The Wagner Review The Nuts and Bolts of The Nuts and Bolts of Building Democracy in Egypt Building Democracy in Egypt

Brianne Lute Brianne Lute

Significant Significant ABSTRACT political ABSTRACT political questions remain unanswered in Egypt. questions remain unanswered in Egypt. However, at this fateful moment it is vital to However, at this fateful moment it is vital to ask not just whether there will be democra- ask not just whether there will be democracy in Egypt, but how. The natural tendency cy in Egypt, but how. The natural tendency is to focus on “free and fair elections” with- is to focus on “free and fair elections” without paying adequate attention to the insti- out paying adequate attention to the institutions and processes that must be estab- tutions and processes that must be established to ensure the long-term success of lished to ensure the long-term success of a transition to democracy. In addition to an a transition to democracy. In addition to an immediate constitutional-reform process, immediate constitutional-reform process, four key elements must be established in four key elements must be established in order for a functioning democracy to take order for a functioning democracy to take root: civil society, institutions of democratic root: civil society, institutions of democratic governance, political parties, and a free governance, political parties, and a free and fair electoral process. and fair electoral process.

The Nuts and Bolts of LUTE 73 The Nuts and Bolts of LUTE 73 Building Democracy in Egypt Building Democracy in Egypt The Egyptian army has shunted Hosni Mubarak they want greater freedom, they have little practi- The Egyptian army has shunted Hosni Mubarak they want greater freedom, they have little practi- aside. Now what? Pundits, politicians, professors, cal experience in exercising it. aside. Now what? Pundits, politicians, professors, cal experience in exercising it. and people around the world are all debating the and people around the world are all debating the prospects for democracy in Egypt. What role will the A healthy political transition depends not just on the prospects for democracy in Egypt. What role will the A healthy political transition depends not just on the army play? What does the Muslim Brotherhood want? demand for freedom but on the supply of processes, army play? What does the Muslim Brotherhood want? demand for freedom but on the supply of processes, Can it function as just another party in a multiparty systems, and services that will allow the people to Can it function as just another party in a multiparty systems, and services that will allow the people to system? What policy will the United States follow? express their will. It is public institutions that translate system? What policy will the United States follow? express their will. It is public institutions that translate These political questions are certainly important, but that popular enthusiasm for change into a sustainable These political questions are certainly important, but that popular enthusiasm for change into a sustainable at this fateful moment it is also vital to ask not just democracy. In addition to an immediate constitution- at this fateful moment it is also vital to ask not just democracy. In addition to an immediate constitution- whether there will be democracy in Egypt, but how. al-reform process involving all of the country’s stake- whether there will be democracy in Egypt, but how. al-reform process involving all of the country’s stake- The natural tendency at moments such as this is to holders, four key elements must be established in order The natural tendency at moments such as this is to holders, four key elements must be established in order focus on “free and fair elections” without paying ade- for a functioning democracy to take root: civil society, focus on “free and fair elections” without paying ade- for a functioning democracy to take root: civil society, quate attention to the institutions and processes that institutions of democratic governance, political parties, quate attention to the institutions and processes that institutions of democratic governance, political parties, must be established to ensure the long-term success of and a free and fair electoral process. must be established to ensure the long-term success of and a free and fair electoral process. a transition to democracy. What exactly are the prac- a transition to democracy. What exactly are the practical steps that must be taken to establish the systems Civil Society: Capacity tical steps that must be taken to establish the systems Civil Society: Capacity and institutions necessary for sustainable democratic Development, Accountability, and institutions necessary for sustainable democratic Development, Accountability, governance? and Access governance? and Access

Without a free civil society, the revolution risks losing Without a free civil society, the revolution risks losing momentum and could perhaps result in a collective momentum and could perhaps result in a collective feeling of disenchantment with democracy itself. To feeling of disenchantment with democracy itself. To But, while the But, while the truly effect change, citizens must organize and work truly effect change, citizens must organize and work Egyptians know that Egyptians know that independently toward finding solutions to the prob- independently toward finding solutions to the prob- they want greater they want greater lems facing the country. The transition from a large lems facing the country. The transition from a large freedom, they have freedom, they have mass of protesters to a network of organized civil- mass of protesters to a network of organized civil- little practical experi- little practical experi- society organizations (CSOs) will not be an easy one. society organizations (CSOs) will not be an easy one. “ ence in exercising it. “ ence in exercising it. In addition to creating a legal framework that truly In addition to creating a legal framework that truly allows CSOs to function openly, these groups must allows CSOs to function openly, these groups must develop their own capacity to implement organized develop their own capacity to implement organized agendas and provide services to the citizenry—such agendas and provide services to the citizenry—such In Egypt, the challenge is daunting. After the assas- as, for instance, voter education, issue advocacy, and In Egypt, the challenge is daunting. After the assas- as, for instance, voter education, issue advocacy, and sination of former president Anwar Sadat, Mubarak election monitoring. Implementing these programs sination of former president Anwar Sadat, Mubarak election monitoring. Implementing these programs established a legal state of emergency. He concen- requires the skills and, importantly, the resources that established a legal state of emergency. He concen- requires the skills and, importantly, the resources that trated powers in the president’s office, ostensibly will permit these groups to recruit, motivate, and trated powers in the president’s office, ostensibly will permit these groups to recruit, motivate, and in order to crack down on Islamic extremism, but teach citizens how to engage in a democratic process. in order to crack down on Islamic extremism, but teach citizens how to engage in a democratic process. Mubarak actually used those powers to destroy all First and foremost, it requires leadership. Mubarak actually used those powers to destroy all First and foremost, it requires leadership. independent political life in Egypt. The heavy hand independent political life in Egypt. The heavy hand of his regime extended throughout society. For Past experience from democratic transitions teaches of his regime extended throughout society. For Past experience from democratic transitions teaches three decades it stifled political development and us that most newly formed CSOs will be very three decades it stifled political development and us that most newly formed CSOs will be very innovation, and suppressed human rights. To make loosely organized and will need a significant amount innovation, and suppressed human rights. To make loosely organized and will need a significant amount matters worse, Mubarak’s 30-year state of emer- of external assistance in the initial stages of their matters worse, Mubarak’s 30-year state of emer- of external assistance in the initial stages of their gency was preceded by nearly 30 years of dictato- development. Ideally, international organizations gency was preceded by nearly 30 years of dictato- development. Ideally, international organizations rial rule by Gamal Abd al-Nasser and Anwar Sadat. and the more advanced Egyptian CSOs (to the rial rule by Gamal Abd al-Nasser and Anwar Sadat. and the more advanced Egyptian CSOs (to the Over half of Egypt’s population is under the age extent that their existence had been permitted) will Over half of Egypt’s population is under the age extent that their existence had been permitted) will of 24. These young people and their parents have help these fledgling groups get on their feet. Because of 24. These young people and their parents have help these fledgling groups get on their feet. Because never known anything but an oppressive, single- CSOs are the sinew of a healthy democratic system, never known anything but an oppressive, single- CSOs are the sinew of a healthy democratic system, party state. The news coverage from Tahrir Square connecting people and the government, it is very party state. The news coverage from Tahrir Square connecting people and the government, it is very eloquently demonstrates that many Egyptians long important that CSOs be separate and independent eloquently demonstrates that many Egyptians long important that CSOs be separate and independent for reform. But while the Egyptians know that from the political parties. They must occupy a dis- for reform. But while the Egyptians know that from the political parties. They must occupy a dis-

74 Vol. XVIII, 2010–2011 The Wagner Review 74 Vol. XVIII, 2010–2011 The Wagner Review tinct space that will allow them to build credibility tinct space that will allow them to build credibility with the people and politicians alike. At first, how- with the people and politicians alike. At first, however, their role will not be well understood by either A healthy political ever, their role will not be well understood by either A healthy political group, and much of their time will be spent educat- transition depends group, and much of their time will be spent educat- transition depends ing politicians whose attitudes toward CSOs typi- not just on demand ing politicians whose attitudes toward CSOs typi- not just on demand cally swing back and forth between two unhealthy for freedom but on the cally swing back and forth between two unhealthy for freedom but on the impulses. On the one hand, the politicians will fear supply of processes, impulses. On the one hand, the politicians will fear supply of processes, that the CSOs are trying to supplant them. On the “ systems, and ser- that the CSOs are trying to supplant them. On the “ systems, and ser- other hand, they will see them as potential power vices that will allow the other hand, they will see them as potential power vices that will allow the bases and seek to turn them into pliant vehicles for people to express bases and seek to turn them into pliant vehicles for people to express personal aggrandizement. Therefore, external actors their will. personal aggrandizement. Therefore, external actors their will. seeking to foster the growth of CSOs must avoid seeking to foster the growth of CSOs must avoid the tendency to cut corners by simply empowering the tendency to cut corners by simply empowering dynamic personalities who talk a good game. The Democratic Governance: dynamic personalities who talk a good game. The Democratic Governance: focus should be on helping to build organizations Representation, Oversight, focus should be on helping to build organizations Representation, Oversight, dedicated to serving a broad constituency. Lawmaking, Implementation dedicated to serving a broad constituency. Lawmaking, Implementation Any government, no matter how democratic, will not Any government, no matter how democratic, will not fully represent the will of the people unless it is held Historically, Egypt’s parliament has been nothing but fully represent the will of the people unless it is held Historically, Egypt’s parliament has been nothing but accountable. Therefore, the heart of the CSOs’ mis- a rubber stamp for the regime. Members of parlia- accountable. Therefore, the heart of the CSOs’ mis- a rubber stamp for the regime. Members of parlia- sion is to safeguard the public’s access to information ment have failed to fulfill even the most basic roles of sion is to safeguard the public’s access to information ment have failed to fulfill even the most basic roles of about the government’s policies, budget, and delivery a legislative body: to represent citizens, conduct over- about the government’s policies, budget, and delivery a legislative body: to represent citizens, conduct over- of services. With that in mind, CSOs would be wise sight of the executive (including budgets and appro- of services. With that in mind, CSOs would be wise sight of the executive (including budgets and appro- to advocate for a freedom of information law. priations), and make laws. This body will have to shift to advocate for a freedom of information law. priations), and make laws. This body will have to shift dramatically from being an agent of the president’s dramatically from being an agent of the president’s Montenegro: Parliamentary will to being a true representative of the people. This Montenegro: Parliamentary will to being a true representative of the people. This Monitoring change will require the creation of a new institutional Monitoring change will require the creation of a new institutional Fortunately for Egyptians, waves of democratization culture, a task that begins with changing the mindset Fortunately for Egyptians, waves of democratization culture, a task that begins with changing the mindset around the world have produced a wealth of expe- of members of parliament. Of course, the desire of the around the world have produced a wealth of expe- of members of parliament. Of course, the desire of the rience from which they will be able to draw valu- Egyptian people themselves for change will provide rience from which they will be able to draw valu- Egyptian people themselves for change will provide able lessons. For instance, in Montenegro—which the greatest impetus for this reform in parliamentary able lessons. For instance, in Montenegro—which the greatest impetus for this reform in parliamentary peacefully declared independence from Serbia in culture. Additionally, foreign states, organizations, peacefully declared independence from Serbia in culture. Additionally, foreign states, organizations, 2006—local CSOs play a critical role in moving the and experts with experience in democratic systems 2006—local CSOs play a critical role in moving the and experts with experience in democratic systems country toward sustainable democratic practice by can play a particularly helpful role, not least because country toward sustainable democratic practice by can play a particularly helpful role, not least because monitoring and assessing the work of parliament. they constitute a repository of experience from which monitoring and assessing the work of parliament. they constitute a repository of experience from which Civil-society organizations such as the Montenegrin the Egyptians can draw. Civil-society organizations such as the Montenegrin the Egyptians can draw. Center for Democratic Transition and the Network Center for Democratic Transition and the Network for Affirmation of the NGO Sector assiduously fol- The task requires assistance on many levels: educat- for Affirmation of the NGO Sector assiduously fol- The task requires assistance on many levels: educat- low parliamentary proceedings and, using a variety of ing members on true parliamentary procedure, devel- low parliamentary proceedings and, using a variety of ing members on true parliamentary procedure, devel- practical tools, hold elected officials to account while oping legal reforms to create a foundation for true practical tools, hold elected officials to account while oping legal reforms to create a foundation for true also informing the public of the parliament’s work. democracy, and simply training staff and providing also informing the public of the parliament’s work. democracy, and simply training staff and providing For their part, politicians often feel threatened by the the resources necessary to conduct oversight of the For their part, politicians often feel threatened by the the resources necessary to conduct oversight of the CSOs’ influence at home and abroad, and their ready executive. Some key areas for development include CSOs’ influence at home and abroad, and their ready executive. Some key areas for development include access to the media. Politicians frequently accuse rules of procedure; executive-legislative relations; access to the media. Politicians frequently accuse rules of procedure; executive-legislative relations; these organizations of trying to form their own politi- committee structure and function; constituency rela- these organizations of trying to form their own politi- committee structure and function; constituency rela- cal parties. However, these CSOs have learned how tions and public outreach; staffing, ethics rules, and cal parties. However, these CSOs have learned how tions and public outreach; staffing, ethics rules, and to take the heat and continue to apply pressure to the financial disclosure reporting; and legislative develop- to take the heat and continue to apply pressure to the financial disclosure reporting; and legislative develop- political system. The value of their work in generating ment, research, and analysis. Members of parliament political system. The value of their work in generating ment, research, and analysis. Members of parliament greater transparency and accountability in Montene- who have been schooled in the backroom methods of greater transparency and accountability in Montene- who have been schooled in the backroom methods of gro cannot be exaggerated. dictatorship must be made aware of the importance gro cannot be exaggerated. dictatorship must be made aware of the importance

The Nuts and Bolts of LUTE 75 The Nuts and Bolts of LUTE 75 Building Democracy in Egypt Building Democracy in Egypt of publicly legitimizing their activities. If they fail future. One of the greatest acts of practical assistance of publicly legitimizing their activities. If they fail future. One of the greatest acts of practical assistance to demonstrate their understanding of the people’s that established democracies could provide the Egyp- to demonstrate their understanding of the people’s that established democracies could provide the Egyp- needs, they will at best find themselves voted out tians at this stage would be to identify potential lead- needs, they will at best find themselves voted out tians at this stage would be to identify potential lead- of office at the first opportunity. At worst, they will ers and stakeholders, bring them together as a group, of office at the first opportunity. At worst, they will ers and stakeholders, bring them together as a group, undermine the legitimacy of a fragile new system. and impress upon them the value of developing a undermine the legitimacy of a fragile new system. and impress upon them the value of developing a Therefore, after elections are held, the education of coherent institutional plan. Likewise, countries that Therefore, after elections are held, the education of coherent institutional plan. Likewise, countries that new members is crucial. As in every country, includ- traditionally provide development funds to Egypt, new members is crucial. As in every country, includ- traditionally provide development funds to Egypt, ing advanced democracies, newly elected members together with the relevant international organiza- ing advanced democracies, newly elected members together with the relevant international organiza- are often ignorant of the way the institution functions, should quickly agree upon a unified approach are often ignorant of the way the institution functions, should quickly agree upon a unified approach tions and their individual role in it. to providing assistance. Without such a plan, it is tions and their individual role in it. to providing assistance. Without such a plan, it is likely that the competing interests of the countries likely that the competing interests of the countries Egyptians in favor of democracy can hope that, once and organizations offering assistance will result in Egyptians in favor of democracy can hope that, once and organizations offering assistance will result in leadership emerges, the candidates for parliament the duplication of efforts and mass confusion on the leadership emerges, the candidates for parliament the duplication of efforts and mass confusion on the will recognize the changing tide and join in democ- ground, rather than providing valuable resources for will recognize the changing tide and join in democ- ground, rather than providing valuable resources for ratization efforts. One key way the new parliament, the local movement. ratization efforts. One key way the new parliament, the local movement. when it is seated, can strengthen the institution is by when it is seated, can strengthen the institution is by Liberia: Legislative Moderniza- Liberia: Legislative Moderniza- tion Plan tion Plan In 2009, after years of violent conflict, Liberia’s In 2009, after years of violent conflict, Liberia’s However, it will take national legislature adopted a five-year legislative However, it will take national legislature adopted a five-year legislative time for Egyptians to modernization plan. It details the institution’s priori- time for Egyptians to modernization plan. It details the institution’s priori- trust a new political ties, identifies its sources of assistance, and determines trust a new political ties, identifies its sources of assistance, and determines party system in the how resources will be allocated. The plan identifies party system in the how resources will be allocated. The plan identifies country. In a society key goals and develops processes to provide, among country. In a society key goals and develops processes to provide, among “ where people have other things, tools and techniques to help individual “ where people have other things, tools and techniques to help individual been brutalized for legislators fulfill their roles, training for legislative been brutalized for legislators fulfill their roles, training for legislative simply expressing a staff, and improvements to the legislature’s infrastruc- simply expressing a staff, and improvements to the legislature’s infrastruc- political opinion, fear ture. The Liberian legislature also adopted a Freedom political opinion, fear ture. The Liberian legislature also adopted a Freedom does not fade quickly. of Information Act and established a legislative bud- does not fade quickly. of Information Act and established a legislative budget office which allows it to more successfully fulfill get office which allows it to more successfully fulfill its all-important oversight role.1 Understanding and its all-important oversight role.1 Understanding and analyzing how the executive budgets and spends the analyzing how the executive budgets and spends the passing a law to designate parliamentary staff as civil country’s money bestows tremendous power on the passing a law to designate parliamentary staff as civil country’s money bestows tremendous power on the servants. Civil servants are nonpartisan employees legislature and serves as an important check on the servants. Civil servants are nonpartisan employees legislature and serves as an important check on the who provide assistance to the institution of parlia- executive. A democratic parliament in Egypt would who provide assistance to the institution of parlia- executive. A democratic parliament in Egypt would ment and its members, and serve as the institutional be wise to implement similar plans. ment and its members, and serve as the institutional be wise to implement similar plans. memory for a body, which through the various elec- memory for a body, which through the various election cycles, will see parliamentarians come and go. Parliament, however, is by no means the only institution cycles, will see parliamentarians come and go. Parliament, however, is by no means the only institu- Further, establishing a civil service helps ensure that tion that will require assistance. The offices of the pres- Further, establishing a civil service helps ensure that tion that will require assistance. The offices of the pres- all parliamentarians have access to the same resources ident, vice president, prime minister, and ministries all parliamentarians have access to the same resources ident, vice president, prime minister, and ministries to carry out their work. will be equally needy. The parliament can function in to carry out their work. will be equally needy. The parliament can function in perfect democratic fashion, producing laws that ensure perfect democratic fashion, producing laws that ensure In addition to building the capacity of parliament’s the rights of the Egyptian people, but as long as the In addition to building the capacity of parliament’s the rights of the Egyptian people, but as long as the members and staff, the Egyptians should also create executive branch is unable to implement the legisla- members and staff, the Egyptians should also create executive branch is unable to implement the legisla- a strategic plan for the parliament. Many parliaments tion, it will have absolutely no impact on people’s lives. a strategic plan for the parliament. Many parliaments tion, it will have absolutely no impact on people’s lives. and national legislatures around the world have seized These offices will inevitably experience great upheaval and national legislatures around the world have seized These offices will inevitably experience great upheaval the moment of transition and established moderniza- in the coming months. They will be in desperate need, the moment of transition and established moderniza- in the coming months. They will be in desperate need, tion committees to organize their work, to take own- in general, of structures, processes, and policies that tion committees to organize their work, to take own- in general, of structures, processes, and policies that ership over the inevitable influx of foreign funds and will allow the executive branch to identify the needs ership over the inevitable influx of foreign funds and will allow the executive branch to identify the needs technical parliamentary assistance, and to plan for the of the people, fix priorities, and implement the laws technical parliamentary assistance, and to plan for the of the people, fix priorities, and implement the laws

76 Vol. XVIII, 2010–2011 The Wagner Review 76 Vol. XVIII, 2010–2011 The Wagner Review passed by parliament. More specifically, executive ety of groups with competing interests and needs, and passed by parliament. More specifically, executive ety of groups with competing interests and needs, and branch offices will need assistance developing strate- Egypt is no different. Each nonviolent group should branch offices will need assistance developing strate- Egypt is no different. Each nonviolent group should gic plans, determining a division of labor, conducting be given an opportunity to participate in the demo- gic plans, determining a division of labor, conducting be given an opportunity to participate in the demo- communications, and simply formulating day-to-day cratic process and have their voices heard—whether communications, and simply formulating day-to-day cratic process and have their voices heard—whether policy in the new, pluralistic environment. it’s Coptic Christians, liberal or conservative Muslims, policy in the new, pluralistic environment. it’s Coptic Christians, liberal or conservative Muslims, the educated or the illiterate, the elite or the average the educated or the illiterate, the elite or the average It is often the case in democratic transitions that Egyptian, the young or the elderly, farmers or urban- It is often the case in democratic transitions that Egyptian, the young or the elderly, farmers or urban- the legislature receives the lion’s share of attention, ites. Gathering ideas directly from the people expands the legislature receives the lion’s share of attention, ites. Gathering ideas directly from the people expands because it is the “people’s body.” In addition, execu- the range of possible solutions for the problems fac- because it is the “people’s body.” In addition, execu- the range of possible solutions for the problems fac- tive office assistance programs are often politically ing the country and helps ensure that the government tive office assistance programs are often politically ing the country and helps ensure that the government unpopular, because they are easily depicted as politi- will tailor policies in a way that will benefit the largest unpopular, because they are easily depicted as politi- will tailor policies in a way that will benefit the largest cally biased—as efforts to prop up a particular leader number of people. cally biased—as efforts to prop up a particular leader number of people. or political party. Indeed, they are often perceived as or political party. Indeed, they are often perceived as an illegitimate intrusion by international actors into Furthermore, a competitive, multiparty system pro- an illegitimate intrusion by international actors into Furthermore, a competitive, multiparty system pro- domestic politics. However, if implemented appropri- vides a constructive avenue for public policy debates domestic politics. However, if implemented appropri- vides a constructive avenue for public policy debates ately, these programs can avoid hot-button domestic and introduces accountability into the political sys- ately, these programs can avoid hot-button domestic and introduces accountability into the political sys- issues and instead focus on the creation of a demo- tem. Citizens can choose the party that most closely issues and instead focus on the creation of a demo- tem. Citizens can choose the party that most closely cratic executive office. aligns with their values, ideas, needs, and expecta- cratic executive office. aligns with their values, ideas, needs, and expectations. If the party does not fulfill its role, a member tions. If the party does not fulfill its role, a member The executive branch is the avenue through which has the option to switch affiliation. This freedom of The executive branch is the avenue through which has the option to switch affiliation. This freedom of the tangible benefits of democracy are actually deliv- movement pressures parties to live up to their cam- the tangible benefits of democracy are actually deliv- movement pressures parties to live up to their cam- ered. If laws are not implemented appropriately, citi- paign promises and deliver the best possible outcomes ered. If laws are not implemented appropriately, citi- paign promises and deliver the best possible outcomes zens see the clamor of democracy but they still lack for constituents. zens see the clamor of democracy but they still lack for constituents. the goods and services that they expect most from the goods and services that they expect most from government: security, clean water, economic oppor- In addition to their rights being enshrined in the law, government: security, clean water, economic oppor- In addition to their rights being enshrined in the law, tunity, education, etc. As a result, they will turn their nascent political parties have several other pressing tunity, education, etc. As a result, they will turn their nascent political parties have several other pressing back on the entire system. Sentences that begin with needs. They must build their internal party structure back on the entire system. Sentences that begin with needs. They must build their internal party structure “Mubarak had his faults, but at least he gave us ...” (including a formal leadership), establish guidelines “Mubarak had his faults, but at least he gave us ...” (including a formal leadership), establish guidelines will be a common phrase on everyone’s lips. for funding the party’s work and public disclosure will be a common phrase on everyone’s lips. for funding the party’s work and public disclosure of its finances, determine recruiting and member- of its finances, determine recruiting and member- Political Parties: Linking ship strategies, and develop a policy platform that Political Parties: Linking ship strategies, and develop a policy platform that Groups to Government, addresses constituents’ needs and around which they Groups to Government, addresses constituents’ needs and around which they Organizing Differences, can message and apply pressure to the political sys- Organizing Differences, can message and apply pressure to the political sys- and Creating Competition tem. However, it will take time for Egyptians to trust and Creating Competition tem. However, it will take time for Egyptians to trust a new political party system. In a society where people a new political party system. In a society where people For almost 60 years, people in Egypt have been have been brutalized for simply expressing a politi- For almost 60 years, people in Egypt have been have been brutalized for simply expressing a politi- deprived of the opportunity to gather formally with cal opinion, fear does not fade quickly. Even though deprived of the opportunity to gather formally with cal opinion, fear does not fade quickly. Even though like-minded Egyptians to discuss their aspirations, the protests resulted in Mubarak’s departure, a clear like-minded Egyptians to discuss their aspirations, the protests resulted in Mubarak’s departure, a clear ideas, hopes, and plans for their country. In democ- political opening and competitive landscape has yet ideas, hopes, and plans for their country. In democ- political opening and competitive landscape has yet racies, political parties provide an important link to emerge. racies, political parties provide an important link to emerge. between citizens and their government. When func- between citizens and their government. When functioning at a high level, parties can influence how Going forward, as parties try to recruit members, tioning at a high level, parties can influence how Going forward, as parties try to recruit members, people’s needs are addressed and advocate on behalf record their affiliations, and organize their campaign people’s needs are addressed and advocate on behalf record their affiliations, and organize their campaign of their membership. A necessary reform, therefore, efforts, they will encounter wariness from the people. of their membership. A necessary reform, therefore, efforts, they will encounter wariness from the people. is a political party law that grants Egyptians the legal The tradition of political participation and public is a political party law that grants Egyptians the legal The tradition of political participation and public right to form and act on behalf of political parties of debate of policies will likely take time to emerge. right to form and act on behalf of political parties of debate of policies will likely take time to emerge. their choosing. For example, in many countries where political party their choosing. For example, in many countries where political party public opinion polling is not as prevalent as it is in public opinion polling is not as prevalent as it is in Political parties can facilitate greater understanding Western democracies, people are extremely hesitant Political parties can facilitate greater understanding Western democracies, people are extremely hesitant and compromise in society. Every country has a vari- to be interviewed and offer their uncensored opinions and compromise in society. Every country has a vari- to be interviewed and offer their uncensored opinions

The Nuts and Bolts of LUTE 77 The Nuts and Bolts of LUTE 77 Building Democracy in Egypt Building Democracy in Egypt for a pollster to record. People often assume that it is power serves as a testament to the stability of a country’s for a pollster to record. People often assume that it is power serves as a testament to the stability of a country’s a tool the government is using to track their allies and democratic system. a tool the government is using to track their allies and democratic system. enemies. Additionally, when non-local interviewers enemies. Additionally, when non-local interviewers are involved, many people assume that the poll is an However, holding elections on the heels of a revolu- are involved, many people assume that the poll is an However, holding elections on the heels of a revolu- effort to collect intelligence information for foreign tion or civil war can have a deleterious impact on a effort to collect intelligence information for foreign tion or civil war can have a deleterious impact on a governments. Conspiracy theories abound when new healthy transition. If political tensions are at a height governments. Conspiracy theories abound when new healthy transition. If political tensions are at a height techniques are introduced into a political system, so and legitimate democratic structures are not in place, techniques are introduced into a political system, so and legitimate democratic structures are not in place, parties must proceed with caution and transparency. elections will yield results that exacerbate political life. parties must proceed with caution and transparency. elections will yield results that exacerbate political life. Prior to elections in Egypt, it would likely be beneficial Prior to elections in Egypt, it would likely be beneficial Dominican Republic: to review the existing election law. Holding public dia- Dominican Republic: to review the existing election law. Holding public dia- Political-Party Ethics Code logues with CSO leaders, parliamentarians, executive Political-Party Ethics Code logues with CSO leaders, parliamentarians, executive As political parties work to gain the trust of the people branch representatives, legal experts, and representa- As political parties work to gain the trust of the people branch representatives, legal experts, and representa- and demonstrate that their mission is to improve the tives from organizations and countries with experience and demonstrate that their mission is to improve the tives from organizations and countries with experience lives of Egyptians, they should establish internal safe- in this area of reform would allow all stakeholders to lives of Egyptians, they should establish internal safe- in this area of reform would allow all stakeholders to guards that promote ethical behavior, transparency, and participate and expose the public to the discussion. guards that promote ethical behavior, transparency, and participate and expose the public to the discussion. accountability. Like many developing democracies, the accountability. Like many developing democracies, the Dominican Republic has experienced years of tumult in Dominican Republic has experienced years of tumult in its political landscape. Opposition political parties have its political landscape. Opposition political parties have been marginalized, election results have been manipu- An unobstructed voting been marginalized, election results have been manipu- An unobstructed voting lated, and citizens’ needs have been ignored. However, in process yielding results lated, and citizens’ needs have been ignored. However, in process yielding results the late 1990s, the major political parties came together that reflect the will the late 1990s, the major political parties came together that reflect the will to sign an agreement for electoral reform that has allowed of the voters and a to sign an agreement for electoral reform that has allowed of the voters and a consistent, peaceful elections rendering results that all peaceful transfer of consistent, peaceful elections rendering results that all peaceful transfer of parties have accepted. In recent years, individual political “ power serves as a parties have accepted. In recent years, individual political “ power serves as a parties have undertaken initiatives to improve their trans- testament to the parties have undertaken initiatives to improve their trans- testament to the parency and accountability. For example, the Dominican stability of a country’s parency and accountability. For example, the Dominican stability of a country’s Revolutionary Party created a party ethics code which democratic system. Revolutionary Party created a party ethics code which democratic system. serves as an agreement and guide when dealing with eth- serves as an agreement and guide when dealing with ethics violations within the party.2 These steps improve the ics violations within the party.2 These steps improve the public reputation of political parties and, indirectly, of public reputation of political parties and, indirectly, of the democratic process. While discussions commence about the legal framework the democratic process. While discussions commence about the legal framework and plans are put in place for democratic elections, politi- and plans are put in place for democratic elections, politi- Free and Fair Elections: cal parties and CSOs should use that time to organize their Free and Fair Elections: cal parties and CSOs should use that time to organize their Planning, Education, own activities. Political parties could develop their plat- Planning, Education, own activities. Political parties could develop their plat- and Monitoring forms, recruit members, and create campaign strategies. and Monitoring forms, recruit members, and create campaign strategies. The opposition parties will have a particularly difficult The opposition parties will have a particularly difficult Free and fair elections will be a major step forward task. It is easy to demonstrate that they are anti-Mubarak Free and fair elections will be a major step forward task. It is easy to demonstrate that they are anti-Mubarak in Egypt, but they are not a silver bullet and, if poorly or anti-regime. That fact alone has been enough to iden- in Egypt, but they are not a silver bullet and, if poorly or anti-regime. That fact alone has been enough to iden- managed, can actually set back the larger effort. In any tify someone as a member of the opposition throughout managed, can actually set back the larger effort. In any tify someone as a member of the opposition throughout democracy, elections are one mechanism intended to give the revolution. However, once elections are scheduled, democracy, elections are one mechanism intended to give the revolution. However, once elections are scheduled, citizens a voice and provide a direct link between the citi- it is no longer enough to say what you are against (i.e., citizens a voice and provide a direct link between the citi- it is no longer enough to say what you are against (i.e., zenry and the institutions that govern it. This civil right is Mubarak and the regime); parties will then have to indi- zenry and the institutions that govern it. This civil right is Mubarak and the regime); parties will then have to indi- intended to align the needs and desires of the people with cate clearly what they are for. This is a more nuanced and intended to align the needs and desires of the people with cate clearly what they are for. This is a more nuanced and their representatives and to peacefully direct the course of detailed task, given that hundreds of opposition parties their representatives and to peacefully direct the course of detailed task, given that hundreds of opposition parties a country by indicating public policy priorities. But from will likely emerge and will have to differentiate themselves a country by indicating public policy priorities. But from will likely emerge and will have to differentiate themselves a technical perspective, elections are also a test of a democ- from one another. a technical perspective, elections are also a test of a democ- from one another. racy. They provide insight into the strength of a country’s racy. They provide insight into the strength of a country’s institutions and the competitiveness of the political land- Civil society organizations must devote considerable time institutions and the competitiveness of the political land- Civil society organizations must devote considerable time scape. An unobstructed voting process yielding results and resources to their voter education campaigns, creat- scape. An unobstructed voting process yielding results and resources to their voter education campaigns, creat- that reflect the will of the voters and a peaceful transfer of ing election monitoring strategies, and holding voter that reflect the will of the voters and a peaceful transfer of ing election monitoring strategies, and holding voter

78 Vol. XVIII, 2010–2011 The Wagner Review 78 Vol. XVIII, 2010–2011 The Wagner Review registration drives. The environment in which they will democracy had arrived and symbolized a new order in registration drives. The environment in which they will democracy had arrived and symbolized a new order in be operating will be unfamiliar, chaotic, and competi- the country. Unfortunately, some viewed these elections be operating will be unfamiliar, chaotic, and competi- the country. Unfortunately, some viewed these elections tive. Like the opposition parties, hundreds of CSOs will as a success simply because they took place. The logisti- tive. Like the opposition parties, hundreds of CSOs will as a success simply because they took place. The logisti- emerge. The challenge for them will be to work together cal and organizational challenges were so significant that emerge. The challenge for them will be to work together cal and organizational challenges were so significant that as a network, rather than duplicating one another’s efforts carrying out the election felt as though it were a great as a network, rather than duplicating one another’s efforts carrying out the election felt as though it were a great needlessly. Also they will need careful strategies to reach achievement. However, the elections did not carry much needlessly. Also they will need careful strategies to reach achievement. However, the elections did not carry much diverse communities in Egypt. The outreach toward the political significance, and holding elections too early only diverse communities in Egypt. The outreach toward the political significance, and holding elections too early only youth population should be drastically different from allowed well-resourced men, some of whom were unscru- youth population should be drastically different from allowed well-resourced men, some of whom were unscru- that toward the elderly population. Similarly, the out- pulous, to contest the elections on the basis of democratic that toward the elderly population. Similarly, the out- pulous, to contest the elections on the basis of democratic reach efforts to those in Cairo will be much different principles to which they did not truly adhere. The flawed reach efforts to those in Cairo will be much different principles to which they did not truly adhere. The flawed from that to those in Aswan. Civil-society organizations exercise had a negative impact on democratic governance from that to those in Aswan. Civil-society organizations exercise had a negative impact on democratic governance will have to use creative means to educate people about by institutionalizing the existing weaknesses in the politi- will have to use creative means to educate people about by institutionalizing the existing weaknesses in the politi- voting and the elections, particularly when conducting cal system. Specifically, the system under which elections voting and the elections, particularly when conducting cal system. Specifically, the system under which elections outreach to illiterate populations. Some organizations in were held was designed to make political parties weak and outreach to illiterate populations. Some organizations in were held was designed to make political parties weak and Egypt have already used skits and street theater to dem- therefore keep the parliament weak and unable to provide Egypt have already used skits and street theater to dem- therefore keep the parliament weak and unable to provide onstrate the voting process for citizens. Similarly, in sub- the proper check on the executive.3 onstrate the voting process for citizens. Similarly, in sub- the proper check on the executive.3 Saharan Africa, CSO representatives often travel to rural Saharan Africa, CSO representatives often travel to rural areas carrying backpacks containing everything they need This flawed election strategy squandered the most pre- areas carrying backpacks containing everything they need This flawed election strategy squandered the most pre- to demonstrate how to vote. They act out the experience cious resource: the desire of the Afghan people to par- to demonstrate how to vote. They act out the experience cious resource: the desire of the Afghan people to par- and allow people to practice voting. This effort reduces ticipate freely in their governance. This spirit was clearly and allow people to practice voting. This effort reduces ticipate freely in their governance. This spirit was clearly intimidation, contributes to the habituation of voting, reflected in the fact that, despite continued violence, intimidation, contributes to the habituation of voting, reflected in the fact that, despite continued violence, and encourages people to participate. millions of people turned out to vote in Afghanistan’s and encourages people to participate. millions of people turned out to vote in Afghanistan’s 2010 parliamentary elections. A significant number of 2010 parliamentary elections. A significant number of Additionally, to give the elections greater credibility, to election observers—both international and domestic— Additionally, to give the elections greater credibility, to election observers—both international and domestic— increase public confidence, and to deter violence, moni- monitored the election in nearly all the country’s prov- increase public confidence, and to deter violence, moni- monitored the election in nearly all the country’s prov- toring efforts should be employed. Both domestic and inces. There were indications of fraud, as there were in toring efforts should be employed. Both domestic and inces. There were indications of fraud, as there were in international election observers as well as party poll- previous elections, but observers reported that improve- international election observers as well as party poll- previous elections, but observers reported that improve- watchers should participate to represent the interests of ments had been made. However, most Afghans did not watchers should participate to represent the interests of ments had been made. However, most Afghans did not Egyptians, the political parties, and the international trust the electoral institutions or the election results they Egyptians, the political parties, and the international trust the electoral institutions or the election results they community. Further, local CSOs and international orga- reported. Frustration with a system that does not reflect community. Further, local CSOs and international orga- reported. Frustration with a system that does not reflect nizations should conduct parallel vote tabulations in an the will of the people or address their needs will, in time, nizations should conduct parallel vote tabulations in an the will of the people or address their needs will, in time, effort to expose fraudulent activity. result in a growing disenchantment with the govern- effort to expose fraudulent activity. result in a growing disenchantment with the government and the transition to democracy. ment and the transition to democracy. Without a window of time to educate voters on any new Without a window of time to educate voters on any new election processes, to allow political parties to campaign, Following the elections, observers suggested that the election processes, to allow political parties to campaign, Following the elections, observers suggested that the and to establish a voting infrastructure that is transparent Afghan government conduct a comprehensive review of and to establish a voting infrastructure that is transparent Afghan government conduct a comprehensive review of and conducive to monitoring, citizens will likely have little the electoral system, as public confidence in the system and conducive to monitoring, citizens will likely have little the electoral system, as public confidence in the system confidence in the election. With thoughtful implementa- rapidly declined. Specifically, an international delega- confidence in the election. With thoughtful implementa- rapidly declined. Specifically, an international delega- tion, there is a better chance that elections will advance tion called on the government to make the country’s two tion, there is a better chance that elections will advance tion called on the government to make the country’s two the democratic progress in Egypt rather than set it back. electoral institutions—the Independent Election Com- the democratic progress in Egypt rather than set it back. electoral institutions—the Independent Election Com- mission and the Electoral Complaints Commission— mission and the Electoral Complaints Commission— Afghanistan: Monitoring and independent from the executive. While the security Afghanistan: Monitoring and independent from the executive. While the security the Perils of Early Elections situation, access to polling stations, and widespread fraud the Perils of Early Elections situation, access to polling stations, and widespread fraud After years of international military, political, and finan- remain enormous problems in Afghanistan, observers After years of international military, political, and finan- remain enormous problems in Afghanistan, observers cial intervention, Afghanistan remains in the fledgling were able to participate in the elections and offer concrete cial intervention, Afghanistan remains in the fledgling were able to participate in the elections and offer concrete stages of democratic development. The country demon- steps to improve the process. Additionally, this provides stages of democratic development. The country demon- steps to improve the process. Additionally, this provides strates the perils of holding elections too early—before an opening for international pressure to be applied to the strates the perils of holding elections too early—before an opening for international pressure to be applied to the the establishment of the rule of law and the reform of Afghan government to implement reforms and move the establishment of the rule of law and the reform of Afghan government to implement reforms and move political party law. Many pushed for elections in Afghani- toward a more robust democratic system that meets its political party law. Many pushed for elections in Afghani- toward a more robust democratic system that meets its stan because it provided a public demonstration that citizens’ needs.4 stan because it provided a public demonstration that citizens’ needs.4

The Nuts and Bolts of LUTE 79 The Nuts and Bolts of LUTE 79 Building Democracy in Egypt Building Democracy in Egypt Conclusion open and frequent communication with the public. Conclusion open and frequent communication with the public. The people of Egypt feel empowered and in control The people of Egypt feel empowered and in control Building a democratic system in Egypt will not be of their country following the departure of President Building a democratic system in Egypt will not be of their country following the departure of President easy. The political situation is extremely fragile and Mubarak. If they are not regularly informed of plans easy. The political situation is extremely fragile and Mubarak. If they are not regularly informed of plans could succeed just as easily as it could fail. The Egyp- and actions being taken during the transition, the could succeed just as easily as it could fail. The Egyp- and actions being taken during the transition, the tians, however, have started out well. They overthrew caretaker government may find itself on the wrong tians, however, have started out well. They overthrew caretaker government may find itself on the wrong the leader peacefully, and groups with radically dif- side of the popular momentum. the leader peacefully, and groups with radically dif- side of the popular momentum. ferent visions of Egypt’s future acted in unison. The ferent visions of Egypt’s future acted in unison. The reform movement thus brought about a momentous Second, look to comparative examples of demo- reform movement thus brought about a momentous Second, look to comparative examples of demo- change in a relatively short amount of time. Political cratic transitions. Egypt is not the first country change in a relatively short amount of time. Political cratic transitions. Egypt is not the first country leaders, Egyptians, and the international community to experience a popular uprising and transition to leaders, Egyptians, and the international community to experience a popular uprising and transition to must now recognize that the transition to democ- democracy, and likely will not be the last. Call- must now recognize that the transition to democ- democracy, and likely will not be the last. Call- racy—a system characterized by slow, incremental ing on others who have experience in democratic racy—a system characterized by slow, incremental ing on others who have experience in democratic change—will require patience, thoughtful planning, reform will help leaders avoid mistakes made in the change—will require patience, thoughtful planning, reform will help leaders avoid mistakes made in the and a spirit of great compromise. past and will allow them to apply lessons learned to and a spirit of great compromise. past and will allow them to apply lessons learned to their own unique situation. Third, Egyptian stake- their own unique situation. Third, Egyptian stake- It is clear that the international community has an holders must come together and develop a detailed It is clear that the international community has an holders must come together and develop a detailed important role to play in this transition. First, devel- plan for the transition. This plan should include important role to play in this transition. First, devel- plan for the transition. This plan should include oped democracies and other external actors should concrete steps for reform of the legal framework oped democracies and other external actors should concrete steps for reform of the legal framework bring Egyptian stakeholders together and encourage and a timeline that allows CSOs and political par- bring Egyptian stakeholders together and encourage and a timeline that allows CSOs and political par- them to create a coherent institutional plan. Second, ties time to organize and interact with citizens in them to create a coherent institutional plan. Second, ties time to organize and interact with citizens in the countries which provide financial assistance to advance of elections. the countries which provide financial assistance to advance of elections. Egypt and the international political development Egypt and the international political development organizations implementing programs on the ground The events in Egypt have the world’s attention. organizations implementing programs on the ground The events in Egypt have the world’s attention. should come together and work to develop a uni- Democratic countries and energized activists living should come together and work to develop a uni- Democratic countries and energized activists living fied approach to providing assistance. Third, inter- under oppressive regimes are hopeful that Egypt’s fied approach to providing assistance. Third, inter- under oppressive regimes are hopeful that Egypt’s national political development organizations should transition is a successful one. While developed national political development organizations should transition is a successful one. While developed help build the capacity of CSOs, the legislative and democracies, namely the United States, are invested help build the capacity of CSOs, the legislative and democracies, namely the United States, are invested executive branches, political parties, and the election in this transition, it would be a mistake for outside executive branches, political parties, and the election in this transition, it would be a mistake for outside administration. This technical assistance can provide actors to get involved in the selection of any leaders administration. This technical assistance can provide actors to get involved in the selection of any leaders a framework for a democratic system. or offer support for a specific political party. Rather, a framework for a democratic system. or offer support for a specific political party. Rather, it is more appropriate and useful for external actors it is more appropriate and useful for external actors While the international community can provide to help build local capacity and assist in develop- While the international community can provide to help build local capacity and assist in develop- resources and assistance, the transition to democ- ing the four key elements needed for a functioning resources and assistance, the transition to democ- ing the four key elements needed for a functioning racy is in the hands of the Egyptian people. There is democracy to take root: civil society, institutions of racy is in the hands of the Egyptian people. There is democracy to take root: civil society, institutions of much to be done, but at least initially, Egypt should democratic governance, political parties, and a free much to be done, but at least initially, Egypt should democratic governance, political parties, and a free focus on the following three priorities. First, maintain and fair electoral process. focus on the following three priorities. First, maintain and fair electoral process.

Notes Achievement, but Complaints Pile Up,” PBS Newshour, Sep- Notes Achievement, but Complaints Pile Up,” PBS Newshour, Sep- tember 20, 2010, accessed February 11, 2011, http://www.pbs. tember 20, 2010, accessed February 11, 2011, http://www.pbs. org/newshour/rundown/2010/09/afghan-elections.html. org/newshour/rundown/2010/09/afghan-elections.html. 1 “Liberia,” The National Democratic Institute for International 1 “Liberia,” The National Democratic Institute for International Affairs, accessed February 10, 2011, http://www.ndi.org/ 4 “Electoral Reform Needed to Build Public Confidence in Affairs, accessed February 10, 2011, http://www.ndi.org/ 4 “Electoral Reform Needed to Build Public Confidence in node/14060. Afghan Electoral Process and Political Institutions,” The node/14060. Afghan Electoral Process and Political Institutions,” The 2 “Dominican Republic,” The National Democratic Institute for National Democratic Institute for International Affairs, accessed 2 “Dominican Republic,” The National Democratic Institute for National Democratic Institute for International Affairs, accessed International Affairs, accessed February 10, 2011, http://www. February 10, 2011, http://www.ndi.org/Electoral_Reform_ International Affairs, accessed February 10, 2011, http://www. February 10, 2011, http://www.ndi.org/Electoral_Reform_ ndi.org/dominican_republic. Needed_Afghanistan. ndi.org/dominican_republic. Needed_Afghanistan. 3 Larisa Epatko, “Afghanistan Analyst: Election Marks an 3 Larisa Epatko, “Afghanistan Analyst: Election Marks an

80 Vol. XVIII, 2010–2011 The Wagner Review 80 Vol. XVIII, 2010–2011 The Wagner Review Agricultural Industrialization, Agricultural Industrialization, Policy, and Crop Diversity Policy, and Crop Diversity in the U.S.: in the U.S.: A Panel Data Analysis 1978-2007 A Panel Data Analysis 1978-2007

Zayne Abdessalam, Zayne Abdessalam, Fernando Henao, Fernando Henao, Shana Wright Shana Wright

F a r m i n g F a r m i n g ABSTRACT practices in ABSTRACT practices in the United States have shifted dramatical- the United States have shifted dramatically over the past 30 years, trending toward ly over the past 30 years, trending toward increased use of factory farms and single increased use of factory farms and single crop production. Evidence has emerged crop production. Evidence has emerged that these types of input-intensive agricul- that these types of input-intensive agricultural methods come at steep environmental, tural methods come at steep environmental, health, and social costs. This article exam- health, and social costs. This article examines the impact of federal and state poli- ines the impact of federal and state policies on farm-ownership structure and crop cies on farm-ownership structure and crop diversity. The authors composed various diversity. The authors composed various county-level crop indices based on models county-level crop indices based on models suggested in existent literature in order to suggested in existent literature in order to compare diversity trends across states from compare diversity trends across states from 1978 to 2007. Using data from the Census 1978 to 2007. Using data from the Census of Agriculture, the authors then analyze of Agriculture, the authors then analyze policy as a contributor to state agricultural policy as a contributor to state agricultural landscapes, ranging from industrial mon- landscapes, ranging from industrial monoculture to diverse cropping. This article oculture to diverse cropping. This article focuses on the effects of state and federal focuses on the effects of state and federal policies on crop diversity as a vehicle for policies on crop diversity as a vehicle for understanding the impact of government understanding the impact of government policy on agricultural sustainability. policy on agricultural sustainability.

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 81 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 81 Crop Diversity in the U.S. Crop Diversity in the U.S. After decades of U.S. policy promoting a shift in agri- Administration helped farmers increase capacity in After decades of U.S. policy promoting a shift in agri- Administration helped farmers increase capacity in cultural production from traditional, small-plot fam- the face of changing demands and opportunities to cultural production from traditional, small-plot fam- the face of changing demands and opportunities to ily farms to expansive, industrial farm units, evidence increase productivity. In response to overproduction ily farms to expansive, industrial farm units, evidence increase productivity. In response to overproduction is emerging that industrial agriculture comes at steep and price decreases, farmers grew more dependent on is emerging that industrial agriculture comes at steep and price decreases, farmers grew more dependent on environmental, health, and social costs. Through this governmental price supports and crop subsidization. environmental, health, and social costs. Through this governmental price supports and crop subsidization. debate, current consumer trends and public policies This combination of machines and market distor- debate, current consumer trends and public policies This combination of machines and market distor- are beginning to reflect a preference for more ecolog- tions encouraged actors to increase the size of farms are beginning to reflect a preference for more ecolog- tions encouraged actors to increase the size of farms ical-minded farm practices, including local produc- and use of machinery and other inorganic inputs ical-minded farm practices, including local produc- and use of machinery and other inorganic inputs tion and organic growing methods. In what many see to capture efficiencies and circuits of public money. tion and organic growing methods. In what many see to capture efficiencies and circuits of public money. as a long overdue food revolution, there are now agri- Paralleling these trends was a tendency toward prod- as a long overdue food revolution, there are now agri- Paralleling these trends was a tendency toward prod- cultural practices promoting a new type of farm that uct specialization through monocropping, creating cultural practices promoting a new type of farm that uct specialization through monocropping, creating is smaller, sustainable, and crop-diversified. profound structural changes whereby agricultural is smaller, sustainable, and crop-diversified. profound structural changes whereby agricultural production became concentrated on fewer and fewer production became concentrated on fewer and fewer This paper focuses on the effect of state and federal farms. Throughout the 20th century, average farm size This paper focuses on the effect of state and federal farms. Throughout the 20th century, average farm size policies on crop diversity as a way of interpreting its in the U.S. steadily increased from 150 acres to more policies on crop diversity as a way of interpreting its in the U.S. steadily increased from 150 acres to more role in creating more or less sustainable agriculture. than 400 acres per farm, while the number of farms fell role in creating more or less sustainable agriculture. than 400 acres per farm, while the number of farms fell The analysis uses measures of crop diversity as the pri- by several thousand.1 See table 1 for national measures The analysis uses measures of crop diversity as the pri- by several thousand.1 See table 1 for national measures mary dependent variables of interest for the statistical of U.S. farm variables for study years. mary dependent variables of interest for the statistical of U.S. farm variables for study years. model and as indicators of sustainable agriculture. By model and as indicators of sustainable agriculture. By calculating crop-diversity indices, the authors ana- Though the average farm unit expanded in size, the calculating crop-diversity indices, the authors ana- Though the average farm unit expanded in size, the lyze production trends from 1978 to 2007 to answer total number of farms decreased for the period from lyze production trends from 1978 to 2007 to answer total number of farms decreased for the period from the question: How do state and federal farm poli- 1978 to 2007. During this time, the total number of the question: How do state and federal farm poli- 1978 to 2007. During this time, the total number of cies affect the way agriculture is institutionalized and farms in the U.S. is upward parabolic, with levels in cies affect the way agriculture is institutionalized and farms in the U.S. is upward parabolic, with levels in practiced? Surveying agricultural policy as reflected 2007 similar to those observed in 1978. In spite of practiced? Surveying agricultural policy as reflected 2007 similar to those observed in 1978. In spite of in legislation and through funding may help identify the regain in number of farms, total farm acreage in legislation and through funding may help identify the regain in number of farms, total farm acreage whether specific policies promote sustainable agri- continued the downward trend that began in the whether specific policies promote sustainable agri- continued the downward trend that began in the culture or monoculture, independent of ownership peak year of 1950, while average farm size peaked in culture or monoculture, independent of ownership peak year of 1950, while average farm size peaked in characteristics. The authors also analyze the effects of 1992 at 491 acres and decreased to a still sizeable 418 characteristics. The authors also analyze the effects of 1992 at 491 acres and decreased to a still sizeable 418 policy on other dependent variables that indicate size by 2007. The largest increase took place at the small policy on other dependent variables that indicate size by 2007. The largest increase took place at the small and ownership structure and consider those results in farm level (less than 50 acres). Moderate increases and ownership structure and consider those results in farm level (less than 50 acres). Moderate increases light of findings from the diversity analyses. also occurred at the very large farm level (greater light of findings from the diversity analyses. also occurred at the very large farm level (greater than 2,000 acres). Medium-size farms, which tend than 2,000 acres). Medium-size farms, which tend Context: Agricultural toward higher crop diversity than those on either Context: Agricultural toward higher crop diversity than those on either Industrialization in the end, have decreased in number.2 Ownership struc- Industrialization in the end, have decreased in number.2 Ownership struc- 20t h Century United States tures did not change as noticeably as farm size. 20t h Century United States tures did not change as noticeably as farm size. Noncorporate family farm ownership stayed fairly Noncorporate family farm ownership stayed fairly Industrial agriculture as practiced during the 20th constant through the years while corporate owner- Industrial agriculture as practiced during the 20th constant through the years while corporate owner- century adapted the principles of manufacturing ship increased 2.2 percentage points. century adapted the principles of manufacturing ship increased 2.2 percentage points. production from the industrial revolution, focusing production from the industrial revolution, focusing on profit maximization by expanding economies of There are currently no state or federal laws legislating on profit maximization by expanding economies of There are currently no state or federal laws legislating scale and efficiency. In this fashion, farmers substi- sustainable agriculture. The federal statutory defini- scale and efficiency. In this fashion, farmers substi- sustainable agriculture. The federal statutory defini- tuted capital for labor, farm units became larger and tion of sustainable agriculture is tuted capital for labor, farm units became larger and tion of sustainable agriculture is fewer, and work was routinized and organized around fewer, and work was routinized and organized around single tasks so that any remaining labor was based on [a]n integrated system … that will satisfy human food single tasks so that any remaining labor was based on [a]n integrated system … that will satisfy human food exchangeable and replaceable units. and fiber needs; enhance environmental quality and the exchangeable and replaceable units. and fiber needs; enhance environmental quality and the natural resource base …; make the most efficient use of natural resource base …; make the most efficient use of A major driver of agricultural shifts toward industrial- nonrenewable resources … and integrate, where appro- A major driver of agricultural shifts toward industrial- nonrenewable resources … and integrate, where appro- ization was heightened reliance on machines and tech- priate, natural biological cycles and controls; sustain the ization was heightened reliance on machines and tech- priate, natural biological cycles and controls; sustain the nology to increase food-production density. Programs economic viability of farm operations; and enhance the nology to increase food-production density. Programs economic viability of farm operations; and enhance the like loan distribution run through the Farm Credit quality of life for farmers and society as a whole.3,4 like loan distribution run through the Farm Credit quality of life for farmers and society as a whole.3,4

82 Vol. XVIII, 2010–2011 The Wagner Review 82 Vol. XVIII, 2010–2011 The Wagner Review Table 1. National measures of U.S. farm variables for study years Table 1. National measures of U.S. farm variables for study years Farm characteristic 1978 1982 1987 1992 1997 2002 2007 Farm characteristic 1978 1982 1987 1992 1997 2002 2007

Total farms 2,257,775 2,240,976 2,087,759 1,925,300 1,911,859 2,128,982 2,204,792 Total farms 2,257,775 2,240,976 2,087,759 1,925,300 1,911,859 2,128,982 2,204,792 Total farm size (thousands of acres) 1,014,777 986,797 964,471 945,532 931,795 938,279 922,096 Total farm size (thousands of acres) 1,014,777 986,797 964,471 945,532 931,795 938,279 922,096 Average farm size (acres) 449 440 462 491 487 441 418 Average farm size (acres) 449 440 462 491 487 441 418 Total market value of sales (thousands) $2,826,649 $2,353,680 $2,061,966 $1,995,684 $2,111,828 $1,920,796 $2,468,404 Total market value of sales (thousands) $2,826,649 $2,353,680 $2,061,966 $1,995,684 $2,111,828 $1,920,796 $2,468,404 Market value of sales (average per farm) $1,252 $1,050 $988 $1,037 $1,105 $902 $1,120 Market value of sales (average per farm) $1,252 $1,050 $988 $1,037 $1,105 $902 $1,120

Farm ownership (%) Farm ownership (%) Family or individual 87.1 86.8 86.7 85.9 86.0 89.7 86.5 Family or individual 87.1 86.8 86.7 85.9 86.0 89.7 86.5 Partnership 10.3 10.0 9.6 9.7 8.9 6.1 7.9 Partnership 10.3 10.0 9.6 9.7 8.9 6.1 7.9 Corporation 2.2 2.7 3.2 3.8 4.4 3.5 4.4 Corporation 2.2 2.7 3.2 3.8 4.4 3.5 4.4 Other 0.41 0.55 0.57 0.65 0.78 0.75 1.28 Other 0.41 0.55 0.57 0.65 0.78 0.75 1.28

Farms by acreage (%) Farms by acreage (%) 1-9 acres 6.7 8.4 8.8 8.6 8.0 8.4 10.6 1-9 acres 6.7 8.4 8.8 8.6 8.0 8.4 10.6 10-49 acres 17.3 20.0 19.8 20.1 21.5 26.5 28.1 10-49 acres 17.3 20.0 19.8 20.1 21.5 26.5 28.1 50-179 acres 33.6 31.8 30.9 30.3 31.0 30.9 30.0 50-179 acres 33.6 31.8 30.9 30.3 31.0 30.9 30.0 180-499 acres 25.8 23.5 22.9 22.2 21.1 18.3 16.7 180-499 acres 25.8 23.5 22.9 22.2 21.1 18.3 16.7 500-999 acres 9.4 9.1 9.6 9.7 9.2 7.6 6.8 500-999 acres 9.4 9.1 9.6 9.7 9.2 7.6 6.8 1,000-1,999 acres 4.3 4.3 4.9 5.3 5.3 4.7 4.2 1,000-1,999 acres 4.3 4.3 4.9 5.3 5.3 4.7 4.2 2,000+ acres 2.8 2.9 3.2 3.7 3.9 3.7 3.6 2,000+ acres 2.8 2.9 3.2 3.7 3.9 3.7 3.6

Farms by value of sales (%) Farms by value of sales (%) Less than $2,500 20.4 23.9 23.5 22.0 26.0 38.8 40.8 Less than $2,500 20.4 23.9 23.5 22.0 26.0 38.8 40.8 $2,500-4,999 13.3 12.4 12.6 12.0 12.0 10.0 9.1 $2,500-4,999 13.3 12.4 12.6 12.0 12.0 10.0 9.1 $5,000-9,999 13.9 12.6 13.2 13.1 12.4 10.5 9.9 $5,000-9,999 13.9 12.6 13.2 13.1 12.4 10.5 9.9 $10000-24999 17.5 15.2 15.6 15.7 14.3 12.0 11.3 $10000-24999 17.5 15.2 15.6 15.7 14.3 12.0 11.3 $25000-49,999 13.3 11.1 10.5 10.1 8.9 7.4 7.0 $25000-49,999 13.3 11.1 10.5 10.1 8.9 7.4 7.0 $50,000-99,999 11.7 11.2 10.4 9.8 8.3 6.6 5.7 $50,000-99,999 11.7 11.2 10.4 9.8 8.3 6.6 5.7 $100,000-499,999 9.0 12.3 12.6 14.9 14.5 11.3 10.9 $100,000-499,999 9.0 12.3 12.6 14.9 14.5 11.3 10.9 $500,000+ 0.8 1.2 1.5 2.4 3.6 3.3 5.3 $500,000+ 0.8 1.2 1.5 2.4 3.6 3.3 5.3

Government payments to the farm sector Government payments to the farm sector $3,030,004 $3,491,965 $16,746,732 $9,168,920 $7,495,294 $12,414,897 $11,903,243 $3,030,004 $3,491,965 $16,746,732 $9,168,920 $7,495,294 $12,414,897 $11,903,243 (thousands)* (thousands)* * Adjusted for inflation considering the CPI, base 2000 * Adjusted for inflation considering the CPI, base 2000

Table 1. National measures of U.S. farm variables for study years Table 1. National measures of U.S. farm variables for study years

Industrial and sustainable agriculture may be viewed It was not until the 1980s that social scientists joined Industrial and sustainable agriculture may be viewed It was not until the 1980s that social scientists joined as oppositional modes of farm production. One the debate over sustainable and industrial agricul- as oppositional modes of farm production. One the debate over sustainable and industrial agricul- core measurable factor of differentiation between ture with quantitative studies, which informed agri- core measurable factor of differentiation between ture with quantitative studies, which informed agri- the two is crop diversification.5 Sustainable modal cultural knowledge and practices. During the 1980s, the two is crop diversification.5 Sustainable modal cultural knowledge and practices. During the 1980s, agriculture advocates diversification through mul- academic writers such as John Cobb wrote of how agriculture advocates diversification through mul- academic writers such as John Cobb wrote of how tiple crops and crop rotation with residual benefits U.S. agriculture was in the midst of “the early stages tiple crops and crop rotation with residual benefits U.S. agriculture was in the midst of “the early stages of pest control and maintenance of soil fertility that of a shift of thinking from that which is based on a of pest control and maintenance of soil fertility that of a shift of thinking from that which is based on a may reduce dependence on chemical pesticides and mechanical model to that which is based on an eco- may reduce dependence on chemical pesticides and mechanical model to that which is based on an eco- fertilizers. Crop diversification is aligned with vari- logical model.”6 In 1985, C. Dean Freudenberger fertilizers. Crop diversification is aligned with vari- logical model.”6 In 1985, C. Dean Freudenberger ous sustainable practices, such as minimizing till- wrote about this paradigmatic shift from an agricul- ous sustainable practices, such as minimizing till- wrote about this paradigmatic shift from an agricul- age, reducing chemical inputs, limiting fossil-fuel tural attitude that “looks upon the land in modern, age, reducing chemical inputs, limiting fossil-fuel tural attitude that “looks upon the land in modern, consumption, and harvesting water. Therefore, the industrialized terms … [and measures everything in] consumption, and harvesting water. Therefore, the industrialized terms … [and measures everything in] authors look to crop diversity as a useful measure terms of production efficiency and profit generation authors look to crop diversity as a useful measure terms of production efficiency and profit generation to evaluate levels of sustainable agriculture. The … [to one that contributes to the] beauty, health, and to evaluate levels of sustainable agriculture. The … [to one that contributes to the] beauty, health, and agrarian notion of the pastoral family farm does not integrity of the biotic community.”7 agrarian notion of the pastoral family farm does not integrity of the biotic community.”7 necessarily correspond to sustainability. Beyond the necessarily correspond to sustainability. Beyond the association of ownership type with a specific prac- Out of this more philosophical perspective came association of ownership type with a specific prac- Out of this more philosophical perspective came tice, this analysis attempts to determine if particu- the economic-based research of Thomas Lyson and tice, this analysis attempts to determine if particu- the economic-based research of Thomas Lyson and lar regulations affect diversity while controlling for Rick Welsh. In their 1993 research paper, “The Pro- lar regulations affect diversity while controlling for Rick Welsh. In their 1993 research paper, “The Pro- farm size and structure. However, the authors also duction Function, Crop Diversity, and the Debate farm size and structure. However, the authors also duction Function, Crop Diversity, and the Debate evaluated how those descriptors might attenuate Between Conventional and Sustainable Agricul- evaluated how those descriptors might attenuate Between Conventional and Sustainable Agricul- sustainability results. ture,” they directly examined the link between sustainability results. ture,” they directly examined the link between

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 83 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 83 Crop Diversity in the U.S. Crop Diversity in the U.S. crop diversity and the two modes of agricultural If higher wages from off-farming activities increase the crop diversity and the two modes of agricultural If higher wages from off-farming activities increase the production. “Measuring crop diversity on har- opportunity cost of farming activities, labor-intensive production. “Measuring crop diversity on har- opportunity cost of farming activities, labor-intensive vested cropland within a county provides insight processes like those required to maintain crop diversity vested cropland within a county provides insight processes like those required to maintain crop diversity into the nature of agricultural production in that would more likely be displaced by other inputs promi- into the nature of agricultural production in that would more likely be displaced by other inputs promi- county….”8 This paper sets the baseline for our nent in nonsustainable agriculture.19,20 Industrialization county….”8 This paper sets the baseline for our nent in nonsustainable agriculture.19,20 Industrialization research into state policies and crop diversity. It uses encourages farmers to expand their operations and stan- research into state policies and crop diversity. It uses encourages farmers to expand their operations and stan- county-level data for the lower 48 states from the dardize production processes in order to increase effi- county-level data for the lower 48 states from the dardize production processes in order to increase effi- 1978, 1982, and 1987 agricultural censuses and cat- ciency by capturing economies of size and scale. 1978, 1982, and 1987 agricultural censuses and cat- ciency by capturing economies of size and scale. egorizing the concentration of harvested cropland in egorizing the concentration of harvested cropland in a county by the two types of agricultural produc- There is a trade-off between farm size, specialization, a county by the two types of agricultural produc- There is a trade-off between farm size, specialization, tion. Their results show conclusive linkages between and risk mitigation.21 If specialization, i.e. monocul- tion. Their results show conclusive linkages between and risk mitigation.21 If specialization, i.e. monocul- industrial methods of production with lower levels ture, leads to economies of scale, the forgone return industrial methods of production with lower levels ture, leads to economies of scale, the forgone return of crop diversity. They conclude: associated with diversity may be so large that mon- of crop diversity. They conclude: associated with diversity may be so large that monoculture will remain as an attractive and rational oculture will remain as an attractive and rational Increases in expenditures for equipment and decision. Additionally, if farm size is associated with Increases in expenditures for equipment and decision. Additionally, if farm size is associated with machinery, the prevalence of corporate farms, ownership structure, potential for vertical integration machinery, the prevalence of corporate farms, ownership structure, potential for vertical integration higher rates of tenancy, and the prevalence of may reinforce the case for monoculture. For exam- higher rates of tenancy, and the prevalence of may reinforce the case for monoculture. For exam- larger farms all are associated with less diversity ple, a corporation interested in risk-averse strategies larger farms all are associated with less diversity ple, a corporation interested in risk-averse strategies of crops grown. Conversely, there is a greater could achieve its objective by expanding in sectors in of crops grown. Conversely, there is a greater could achieve its objective by expanding in sectors in diversity of crops grown in counties in which which it operates and still balance the risks associated diversity of crops grown in counties in which which it operates and still balance the risks associated farm labor expenditures are higher, where there with specialized agriculture. If such rationality pays farm labor expenditures are higher, where there with specialized agriculture. If such rationality pays are more medium-size farms, and where there is off, corporations and large-scale farms may be prone are more medium-size farms, and where there is off, corporations and large-scale farms may be prone a prevalence of farmers who derive most of their to engage in industrial agriculture characterized by a prevalence of farmers who derive most of their to engage in industrial agriculture characterized by income from farming.9 monoculture. income from farming.9 monoculture.

Agriculture that is less oriented toward mass pro- Specialization is also the result of intensive capital Agriculture that is less oriented toward mass pro- Specialization is also the result of intensive capital duction preserves the relationship between farms utilization. Since the path to crop diversity is labor- duction preserves the relationship between farms utilization. Since the path to crop diversity is labor- and the social and natural contexts in which they intensive, it requires the substitution of capital with and the social and natural contexts in which they intensive, it requires the substitution of capital with exist.10 labor, a process that is easier for medium farms com- exist.10 labor, a process that is easier for medium farms compared with large farms, since medium farms typically pared with large farms, since medium farms typically The existing literature suggests positive environ- use less equipment and may be more flexible and The existing literature suggests positive environ- use less equipment and may be more flexible and mental and economic implications associated with responsive to changes in local demand.22 Theoreti- mental and economic implications associated with responsive to changes in local demand.22 Theoreti- increased crop diversity. There are several environ- cally, very small and very large farms will be engaged increased crop diversity. There are several environ- cally, very small and very large farms will be engaged mental benefits,11 such as resistance to pests and resil- in monoculture because of limitations of scale and mental benefits,11 such as resistance to pests and resil- in monoculture because of limitations of scale and ience to changes in rainfall patterns. Equally, there economies of scale correspondingly, while midsize ience to changes in rainfall patterns. Equally, there economies of scale correspondingly, while midsize are several potential economic benefits, such as higher farms have more flexibility to be crop diverse. are several potential economic benefits, such as higher farms have more flexibility to be crop diverse. mean income and less variability. Crop diversity may mean income and less variability. Crop diversity may also function as a financial-risk-mitigation strategy, Policy Context also function as a financial-risk-mitigation strategy, Policy Context potentially compensating farmers for forgone cost potentially compensating farmers for forgone cost advantages of crop concentration.12,13 National and state policies have played a significant advantages of crop concentration.12,13 National and state policies have played a significant role in shaping the U.S. agricultural landscape. Regu- role in shaping the U.S. agricultural landscape. Regu- A recurrent theme in the literature is that while diver- lations such as crop subsidization, tax policies, and A recurrent theme in the literature is that while diver- lations such as crop subsidization, tax policies, and sity may provide benefits to society, economies, and corporate regulatory laws affect farm decisions regard- sity may provide benefits to society, economies, and corporate regulatory laws affect farm decisions regard- the environment,14 farmers are not adequately compen- ing crop production and business structure. For sev- the environment,14 farmers are not adequately compen- ing crop production and business structure. For sev- sated for responsible choices.15 Consequently, as farmers eral decades, short term productivity has grown along sated for responsible choices.15 Consequently, as farmers eral decades, short term productivity has grown along rationally tend to underinvest in conservation strategies, with industrialization. While increased food produc- rationally tend to underinvest in conservation strategies, with industrialization. While increased food produc- including diversity, government intervention may be jus- tion is a laudable goal, policies that encourage such including diversity, government intervention may be jus- tion is a laudable goal, policies that encourage such tified to remedy this situation.16 However, when diver- shifts deserve scrutiny. Politically, powerful interests tified to remedy this situation.16 However, when diver- shifts deserve scrutiny. Politically, powerful interests sity is also associated with higher productivity,17 the gap shape national and state farm legislation. These spe- sity is also associated with higher productivity,17 the gap shape national and state farm legislation. These spe- between private and public benefits is reduced.18 cial interests often diverge in goals and strategies, between private and public benefits is reduced.18 cial interests often diverge in goals and strategies,

84 Vol. XVIII, 2010–2011 The Wagner Review 84 Vol. XVIII, 2010–2011 The Wagner Review resulting in a complex, substantial, and sometimes ments made in that year. These payouts were highly con- resulting in a complex, substantial, and sometimes ments made in that year. These payouts were highly con- contradictory regulatory framework. centrated in the Midwest and Texas.25 Top commodities contradictory regulatory framework. centrated in the Midwest and Texas.25 Top commodities for which direct payments were made to farmers in 2007 for which direct payments were made to farmers in 2007 Federal and state policies shape the decisions of individ- were corn, wheat, cotton, soy, rice, sorghum, barley, and Federal and state policies shape the decisions of individ- were corn, wheat, cotton, soy, rice, sorghum, barley, and ual farms and the industry as a whole. Investigating fed- peanuts.26 ual farms and the industry as a whole. Investigating fed- peanuts.26 eral policy creates a context for analysis of changes that eral policy creates a context for analysis of changes that may affect all states. This analysis also examines the effect The Farm Bills, which have been released at intervals may affect all states. This analysis also examines the effect The Farm Bills, which have been released at intervals of state policy on agricultural trends to assess whether since the Agricultural Adjustment Act of 1933, determine of state policy on agricultural trends to assess whether since the Agricultural Adjustment Act of 1933, determine states play a role in regulating crop diversity and, if so, farm subsidies. Farm Bills cover a number of policy areas, states play a role in regulating crop diversity and, if so, farm subsidies. Farm Bills cover a number of policy areas, to what magnitude. Changes in national policy can be from food assistance to conservation programs, and are to what magnitude. Changes in national policy can be from food assistance to conservation programs, and are less responsive to emerging trends and local needs than important in specifying which crops are subsidized and less responsive to emerging trends and local needs than important in specifying which crops are subsidized and state policy reforms. State and local policies offer plat- how payments are made. Agricultural subsidies were state policy reforms. State and local policies offer plat- how payments are made. Agricultural subsidies were forms for encouraging responsible farm practices, should initially included in the Farm Bills as compensation for forms for encouraging responsible farm practices, should initially included in the Farm Bills as compensation for legislators choose to pursue them. Given current con- diminished income to farmers because of the stresses legislators choose to pursue them. Given current con- diminished income to farmers because of the stresses cerns over health and environmental implications that of World War I and the Great Depression. In the mid- cerns over health and environmental implications that of World War I and the Great Depression. In the mid- may accompany increased industrialization, understand- 1960s, subsidies were restructured to encourage more of a may accompany increased industrialization, understand- 1960s, subsidies were restructured to encourage more of a ing the impact of state policy is fundamental to crafting market model and promote food exports.27 Theoretically, ing the impact of state policy is fundamental to crafting market model and promote food exports.27 Theoretically, informed farm legislation. market-oriented policies continued through the remain- informed farm legislation. market-oriented policies continued through the remain- der of the century, and in the 1980s, there was a higher der of the century, and in the 1980s, there was a higher The team examined multiple policies to answer the reliance on loan programs than in previous years.28 Addi- The team examined multiple policies to answer the reliance on loan programs than in previous years.28 Addi- research question. After this preliminary research, three tionally, the 1985 Farm Bill (Food Security Act) reduced research question. After this preliminary research, three tionally, the 1985 Farm Bill (Food Security Act) reduced policies emerged as quantifiable, varied across state and price supports, encouraged more production on previ- policies emerged as quantifiable, varied across state and price supports, encouraged more production on previ- time, and statistically significant in ways warranting fur- ously idled land, and began to ease restrictions on plant- time, and statistically significant in ways warranting fur- ously idled land, and began to ease restrictions on plant- ther examination. The following sections examine the ing related to subsidies.29 ther examination. The following sections examine the ing related to subsidies.29 three main policies of interest in this paper: federal farm three main policies of interest in this paper: federal farm subsidies, state tax burden, and anticorporate farm laws. The Farm Bill released in 1996, the Federal Agri- subsidies, state tax burden, and anticorporate farm laws. The Farm Bill released in 1996, the Federal Agri- Policies determined to not lend themselves well to this cultural Improvement and Reform (FAIR) Act, Policies determined to not lend themselves well to this cultural Improvement and Reform (FAIR) Act, analysis include state enforcement of the Packers and substantially changed the allocation of commod- analysis include state enforcement of the Packers and substantially changed the allocation of commod- Stockyards Act (1921), right-to-farm laws, pesticide and ity payments by decoupling price supports with Stockyards Act (1921), right-to-farm laws, pesticide and ity payments by decoupling price supports with fertilizer regulation, pre-emption laws, and biofuel subsi- the intention of further supporting a free-market fertilizer regulation, pre-emption laws, and biofuel subsi- the intention of further supporting a free-market dies. Each of these may be worth further consideration, framework of subsidy allocation. Before this legisla- dies. Each of these may be worth further consideration, framework of subsidy allocation. Before this legisla- as they offer potential stories for how policy may affect tion, Farm Bills specified a direct payment increase as they offer potential stories for how policy may affect tion, Farm Bills specified a direct payment increase the agricultural landscape. when market prices fell to compensate farmers the agricultural landscape. when market prices fell to compensate farmers for deficits. With the FAIR Act, direct payments for deficits. With the FAIR Act, direct payments Federal Farm Subsidies to farmers were decoupled, meaning they were no Federal Farm Subsidies to farmers were decoupled, meaning they were no The federal government subsidizes agricultural produc- longer tied to current production but rather fixed The federal government subsidizes agricultural produc- longer tied to current production but rather fixed tion in a number of ways that significantly shape the based on acreage historically allocated to commod- tion in a number of ways that significantly shape the based on acreage historically allocated to commod- farming landscape in the United States. This amount ity crops. Along with other important changes, farming landscape in the United States. This amount ity crops. Along with other important changes, varies greatly by year but represents billions of dollars in the bill allowed for more flexibility in which crops varies greatly by year but represents billions of dollars in the bill allowed for more flexibility in which crops federal spending annually. To date, payments in the 21st could be grown on commodity program land.30,31 federal spending annually. To date, payments in the 21st could be grown on commodity program land.30,31 century have ranged from nearly $12 billion in 2007 to century have ranged from nearly $12 billion in 2007 to well over $24 billion in 2005.23 Farm subsidies incorporate Despite the liberalizing rhetoric around the farm bill, well over $24 billion in 2005.23 Farm subsidies incorporate Despite the liberalizing rhetoric around the farm bill, direct payments, loans, transition programs, countercycli- direct payments to farmers after 1996 have remained sub- direct payments, loans, transition programs, countercycli- direct payments to farmers after 1996 have remained sub- cal payments, emergency assistance, deficiency payments, stantial. Although payments were supposedly fixed and cal payments, emergency assistance, deficiency payments, stantial. Although payments were supposedly fixed and some conservation programs, and more. Approximately therefore should not have caused market distortion, in some conservation programs, and more. Approximately therefore should not have caused market distortion, in one-third of farms receive federal subsidies, and alloca- reality, when commodity prices fell, legislators responded one-third of farms receive federal subsidies, and alloca- reality, when commodity prices fell, legislators responded tion of these payments favors certain commodities, types to political pressures by setting up ad hoc payments to tion of these payments favors certain commodities, types to political pressures by setting up ad hoc payments to of farms, and regions.24 According to a 2002 Congressio- further subsidize crops. Along with the fact that loan proof farms, and regions.24 According to a 2002 Congressio- further subsidize crops. Along with the fact that loan pro- nal Research Service report, the top five percent of farms grams were still responsive to market fluctuations, this nal Research Service report, the top five percent of farms grams were still responsive to market fluctuations, this receiving crop subsidies were given half of the total pay- meant that crop subsidies did not decline.32 In the U.S., receiving crop subsidies were given half of the total pay- meant that crop subsidies did not decline.32 In the U.S.,

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 85 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 85 Crop Diversity in the U.S. Crop Diversity in the U.S. Figure 1. Federal farm subsidies 1975-2008, adjusted for inflation35 Figure 1. Federal farm subsidies 1975-2008, adjusted for inflation35 Source: USDA Economic Research Service Source: USDA Economic Research Service direct payments to farm bills from 1999 to 2001 alone State and Local Tax Burden direct payments to farm bills from 1999 to 2001 alone State and Local Tax Burden 33 33 totaled more than $20 billion annually. The 2002 Farm Different analytical mechanisms, including statistical totaled more than $20 billion annually. The 2002 Farm Different analytical mechanisms, including statistical Bill extended the ad hoc legislation tying subsidies to mar- analysis and general-equilibrium models, are useful when Bill extended the ad hoc legislation tying subsidies to mar- analysis and general-equilibrium models, are useful when ket fluctuations and also allowed farmers to claim updates considering the effect of agriculture taxation more gener- ket fluctuations and also allowed farmers to claim updates considering the effect of agriculture taxation more gener- on historical acreage. Effectively, this basis for payment ally. Results from both approaches indicate that taxation on historical acreage. Effectively, this basis for payment ally. Results from both approaches indicate that taxation reflected near current production, further weakening the is likely to affect the way production decisions are made reflected near current production, further weakening the is likely to affect the way production decisions are made realities of decoupling. Research shows that corn, soy, and and may specifically influence the selection of input com- realities of decoupling. Research shows that corn, soy, and and may specifically influence the selection of input com- wheat crops were still responsive to subsidies after the binations (technology).40 Consequently, lower taxes are wheat crops were still responsive to subsidies after the binations (technology).40 Consequently, lower taxes are 34 34 decoupling under the FAIR Act. Figure 1 shows farm- a frequent strategy for attracting resources to agriculture decoupling under the FAIR Act. Figure 1 shows farm- a frequent strategy for attracting resources to agriculture subsidy trends throughout the timeframe of this paper. but also for determining the balance between land, capi- subsidy trends throughout the timeframe of this paper. but also for determining the balance between land, capital, and labor in agricultural production. Tax benefits for tal, and labor in agricultural production. Tax benefits for Analysis of the data from the Census of Agriculture farmers may encourage growth of larger-scale farms.41 Analysis of the data from the Census of Agriculture farmers may encourage growth of larger-scale farms.41 reports shows that U.S. Department of Agriculture reports shows that U.S. Department of Agriculture (USDA) regions 3, 4, and 8, representing the Mid- One may argue that taxing agriculture is a way to (USDA) regions 3, 4, and 8, representing the Mid- One may argue that taxing agriculture is a way to west and Texas, are highly positively correlated with internalize the negative externalities caused by agricul- west and Texas, are highly positively correlated with internalize the negative externalities caused by agricul- share of federal subsidies. The Northeast and the tural production. In that sense, as farming can produce share of federal subsidies. The Northeast and the tural production. In that sense, as farming can produce Southwest regions are negatively correlated with share noise and odors deemed offensive and thus impose Southwest regions are negatively correlated with share noise and odors deemed offensive and thus impose of subsidies.36 Commodity crops that command sub- costs to neighbors, like declining values of surround- of subsidies.36 Commodity crops that command sub- costs to neighbors, like declining values of surround- sidies are mostly grains like corn and soy, while gov- ing property, those expenses may be internalized and sidies are mostly grains like corn and soy, while gov- ing property, those expenses may be internalized and ernment payments specifically discriminate against redistributed as benefits to the community through ernment payments specifically discriminate against redistributed as benefits to the community through production of fruits and vegetables.37 Additionally, taxation and other regulations. production of fruits and vegetables.37 Additionally, taxation and other regulations. evidence in the literature shows that farm subsidies evidence in the literature shows that farm subsidies tend to disproportionately benefit larger operations,38 From 1978 to 2007, agriculture benefited from several tend to disproportionately benefit larger operations,38 From 1978 to 2007, agriculture benefited from several so increased subsidies may encourage growth of large specific tax provisions granted through preferential so increased subsidies may encourage growth of large specific tax provisions granted through preferential farms that are more likely to engage in nondiverse treatments, differential assessments, and depreciation farms that are more likely to engage in nondiverse treatments, differential assessments, and depreciation cropping practices at the expense of smaller more allowances, as well as general tax policies like those cropping practices at the expense of smaller more allowances, as well as general tax policies like those diverse farms.39 Federal subsidies may work to spe- adopted in the 1980s under the economic-recovery diverse farms.39 Federal subsidies may work to spe- adopted in the 1980s under the economic-recovery cifically discourage crop diversity by supporting only program. The findings of significant studies on how cifically discourage crop diversity by supporting only program. The findings of significant studies on how certain producers and encouraging profit maximiza- income tax provisions affect famers’ decisionmaking certain producers and encouraging profit maximiza- income tax provisions affect famers’ decisionmaking tion through production of select commodity crops. process do not show consistent results.42 tion through production of select commodity crops. process do not show consistent results.42

86 Vol. XVIII, 2010–2011 The Wagner Review 86 Vol. XVIII, 2010–2011 The Wagner Review From a federal perspective, the most important taxes for The tax burden measure calculated by the Tax Foun- From a federal perspective, the most important taxes for The tax burden measure calculated by the Tax Foun- farmers are the income, self-employment, and the estate dation uses revenues collected by state and local farmers are the income, self-employment, and the estate dation uses revenues collected by state and local gift taxes.43 Tax policies may drive other factors at the governments as a proportion of the total income gift taxes.43 Tax policies may drive other factors at the governments as a proportion of the total income farm level, such as technology adoption, labor contract- reported in the state in a given year. The advan- farm level, such as technology adoption, labor contract- reported in the state in a given year. The advan- ing, and scale. Simultaneously, those for whom agri- tage of a tax burden measure that goes beyond the ing, and scale. Simultaneously, those for whom agri- tage of a tax burden measure that goes beyond the culture is the only or most important source of income statutory rates is that it captures differences in real culture is the only or most important source of income statutory rates is that it captures differences in real often do not generate enough taxable income, farm or costs of doing business by location. In addition, often do not generate enough taxable income, farm or costs of doing business by location. In addition, non-farm, to fully use available tax benefits. Across the the tax burden measure includes taxes as recorded non-farm, to fully use available tax benefits. Across the the tax burden measure includes taxes as recorded farming sector, federal tax policies affect land prices, the by the Census Bureau and also adds special assess- farming sector, federal tax policies affect land prices, the by the Census Bureau and also adds special assess- relative cost of capital and labor, input allocation, size, ments and revenue from occupational, business, and relative cost of capital and labor, input allocation, size, ments and revenue from occupational, business, and organizational structure, management practices, and motor-vehicle license fees. organizational structure, management practices, and motor-vehicle license fees. product supply.44 Partial equilibrium analysis that iso- product supply.44 Partial equilibrium analysis that iso- lates tax effects from other economic decisions already Anticorporate Farm Law Policy lates tax effects from other economic decisions already Anticorporate Farm Law Policy indicates that changes in tax policy can be expected to Context indicates that changes in tax policy can be expected to Context affect agricultural investment. In particular, removing Several states have passed statutes or constitutional affect agricultural investment. In particular, removing Several states have passed statutes or constitutional some investment tax credits like those adopted under amendments that regulate against certain corporations some investment tax credits like those adopted under amendments that regulate against certain corporations the Economic Recovery Act of the early 1980s could from engaging in farming, either in the form of purchas- the Economic Recovery Act of the early 1980s could from engaging in farming, either in the form of purchas- have decreased total agricultural investment and pro- ing land used for agricultural production or involvement have decreased total agricultural investment and pro- ing land used for agricultural production or involvement moted a shift to other land uses.45 In his paper “Impacts in the production of commodities. Anticorporate farm- moted a shift to other land uses.45 In his paper “Impacts in the production of commodities. Anticorporate farm- of Federal Tax Policies on Potential Growth in Size of ing laws were adopted in nine states in the 1970s and of Federal Tax Policies on Potential Growth in Size of ing laws were adopted in nine states in the 1970s and Typical Farms” Charles Eginton states, “The highly early 1980s, placing restrictions on corporate ownership Typical Farms” Charles Eginton states, “The highly early 1980s, placing restrictions on corporate ownership mechanized, capital-intensive farms grew at rapid rates of farmland and on vertical integration of food-produc- mechanized, capital-intensive farms grew at rapid rates of farmland and on vertical integration of food-produc- due to the depreciation allowance; the net effect over the tion firms.50 Until 2003, the nine states that restricted or due to the depreciation allowance; the net effect over the tion firms.50 Until 2003, the nine states that restricted or long run was to encourage the use of capital relative to prohibited corporate farming were Iowa, Kansas, Min- long run was to encourage the use of capital relative to prohibited corporate farming were Iowa, Kansas, Min- labor, thus exacerbating the trend to increased size and nesota, Missouri, Nebraska, North Dakota, Oklahoma, labor, thus exacerbating the trend to increased size and nesota, Missouri, Nebraska, North Dakota, Oklahoma, reduced number of farms.”46 South Dakota, and Wisconsin.51 Each of these states’ reduced number of farms.”46 South Dakota, and Wisconsin.51 Each of these states’ statutes emphasizes the founding principle to secure the statutes emphasizes the founding principle to secure the Isolating federal tax policies from state and local taxes social fabric of rural America by protecting the economic Isolating federal tax policies from state and local taxes social fabric of rural America by protecting the economic could provide a framework for analyzing the impact viability of family farms.52 could provide a framework for analyzing the impact viability of family farms.52 of state and local governance on individual and cor- of state and local governance on individual and corporate decisions to engage in agriculture or not, and Another reason for these statutes is that corporate farms porate decisions to engage in agriculture or not, and Another reason for these statutes is that corporate farms what type of agricultural practices to use. Local gov- are more likely than family farms to practice modern what type of agricultural practices to use. Local gov- are more likely than family farms to practice modern ernment reliance on property and land taxes provides industrial agriculture and thereby cause environmental ernment reliance on property and land taxes provides industrial agriculture and thereby cause environmental incentives for the development of land. The fact that damage. On this level, anticorporate farming laws, while incentives for the development of land. The fact that damage. On this level, anticorporate farming laws, while there are positive and negative externalities at the state not directly legislating sustainable agricultural practices, there are positive and negative externalities at the state not directly legislating sustainable agricultural practices, and county level associated with agriculture suggests should prohibit the more environmentally damaging prac- and county level associated with agriculture suggests should prohibit the more environmentally damaging prac- that there must be nonfederal policies for address- tices of industrial agriculture. Opponents vigorously decry that there must be nonfederal policies for address- tices of industrial agriculture. Opponents vigorously decry ing these spillovers, creating an opening for state and that not only are these laws anticapitalistic but they are ing these spillovers, creating an opening for state and that not only are these laws anticapitalistic but they are local regulation to integrate unaccounted costs and also ineffective and unconstitutional in that they impede local regulation to integrate unaccounted costs and also ineffective and unconstitutional in that they impede benefits of agriculture.47 free trade between states. This research does not focus on benefits of agriculture.47 free trade between states. This research does not focus on the constitutionality of anticorporate farming laws or the the constitutionality of anticorporate farming laws or the All states provide preferential treatments to land taxation political debates around them. Of fundamental concern is All states provide preferential treatments to land taxation political debates around them. Of fundamental concern is through assessments or current use values, and conse- whether they are effective in legislating against industrial through assessments or current use values, and conse- whether they are effective in legislating against industrial quently, agriculture pays a relatively small part of total agricultural practices by limiting or prohibiting the pres- quently, agriculture pays a relatively small part of total agricultural practices by limiting or prohibiting the pres- real property taxes in the U.S.48 Nonetheless, farm-labor ence of corporate farms and if the presence of these laws real property taxes in the U.S.48 Nonetheless, farm-labor ence of corporate farms and if the presence of these laws earnings, proprietor income, and corporate farm income impacts crop diversity. earnings, proprietor income, and corporate farm income impacts crop diversity. constitute part of the economic base that state and local constitute part of the economic base that state and local governments tax.49 Analysis of state and local tax struc- According to a memorandum distributed by the Com- governments tax.49 Analysis of state and local tax struc- According to a memorandum distributed by the Com- tures may provide elements for understanding the pres- munity Environmental Legal Defense Fund, there is a tures may provide elements for understanding the pres- munity Environmental Legal Defense Fund, there is a ence of capital-intensive large-scale agriculture. serious need to limit corporate involvement in farm- ence of capital-intensive large-scale agriculture. serious need to limit corporate involvement in farm-

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 87 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 87 Crop Diversity in the U.S. Crop Diversity in the U.S. ing.53 The corporatization of American agriculture is well individual. Besides this, banks demonstrate preferential ing.53 The corporatization of American agriculture is well individual. Besides this, banks demonstrate preferential established: Four corporations control 82 percent of the treatment in lending capital to corporations over noncor- established: Four corporations control 82 percent of the treatment in lending capital to corporations over noncor- nation’s beef market, five major packers control 55 per- porate entities. With the mechanization of agriculture, nation’s beef market, five major packers control 55 per- porate entities. With the mechanization of agriculture, cent of the hog industry, and there are 300,000 fewer access to these funding sources are crucial not only to cent of the hog industry, and there are 300,000 fewer access to these funding sources are crucial not only to farmers than there were 20 years ago.54 The nine states growth but survival. farmers than there were 20 years ago.54 The nine states growth but survival. that have anticorporate farming statutes receive 30 per- that have anticorporate farming statutes receive 30 percent of all U.S. agricultural revenue and therefore con- The stringency of anticorporate farm laws varies by state, cent of all U.S. agricultural revenue and therefore con- The stringency of anticorporate farm laws varies by state, stitute significant agricultural interests. As agricultural and for many states these laws have over time become stitute significant agricultural interests. As agricultural and for many states these laws have over time become policy, these laws have the potential to have a significant weaker in their scope and ability to enforce limitations.56 policy, these laws have the potential to have a significant weaker in their scope and ability to enforce limitations.56 impact on farm size, structure, and crop diversity, and Since anticorporate farm laws theoretically restrict direct impact on farm size, structure, and crop diversity, and Since anticorporate farm laws theoretically restrict direct they deserve extensive research. corporate involvement in farming, they may exert some they deserve extensive research. corporate involvement in farming, they may exert some influence over crop choice. Limited research indicates that influence over crop choice. Limited research indicates that The fundamental assumptions behind protecting these laws have worked to slow agricultural industrializa- The fundamental assumptions behind protecting these laws have worked to slow agricultural industrializa- family farms by preventing the further corporatization and may be beneficial to local communities and the family farms by preventing the further corporatization and may be beneficial to local communities and the tion of agriculture are enveloped within an agrarian environment.57,58 tion of agriculture are enveloped within an agrarian environment.57,58 view of life, which is intricately bound with the foun- view of life, which is intricately bound with the foun- dational self-image of the U.S. In his historical essay After first testing whether anticorporate farm laws are dational self-image of the U.S. In his historical essay After first testing whether anticorporate farm laws are on American agriculture, Richard Kirkendall wrote, effective at reducing the presence of corporate ownership on American agriculture, Richard Kirkendall wrote, effective at reducing the presence of corporate ownership “This heritage maintained that farming was the best of agricultural land, the authors then analyze the causal “This heritage maintained that farming was the best of agricultural land, the authors then analyze the causal way of life and the most important economic activity, connections between ownership and sustainability. The way of life and the most important economic activity, connections between ownership and sustainability. The research hypothesis holds that the family farm that prac- research hypothesis holds that the family farm that practices sound ecology is something of an American myth. tices sound ecology is something of an American myth. This is not to say that there is necessarily a uniform causal This is not to say that there is necessarily a uniform causal The authors hypothesize mechanism between ownership and specific agricultural The authors hypothesize mechanism between ownership and specific agricultural that federal subsidies practices. If crop diversity does not decrease in the face that federal subsidies practices. If crop diversity does not decrease in the face attract corporate and of corporate ownership, the causal connection between attract corporate and of corporate ownership, the causal connection between large farms, and that ownership and sustainable practices is not stable. We hold large farms, and that ownership and sustainable practices is not stable. We hold these farms decrease farm size to be a much more important prompter of sus- these farms decrease farm size to be a much more important prompter of sus- “ diversity. Subsidies also tainable practices than ownership type. One fundamental “ diversity. Subsidies also tainable practices than ownership type. One fundamental act to decrease reason behind our policy analysis of anticorporate farm act to decrease reason behind our policy analysis of anticorporate farm diversity directly by laws is to understand the link between ownership and the diversity directly by laws is to understand the link between ownership and the explicitly encouraging practice of specific agricultural techniques. explicitly encouraging practice of specific agricultural techniques. farmers to produce farmers to produce subsidized crops at the There are exceptions built into the anticorporate farm subsidized crops at the There are exceptions built into the anticorporate farm detriment of other plants. laws that allow for the involvement of certain types of detriment of other plants. laws that allow for the involvement of certain types of corporations and may render the laws ineffective in pro- corporations and may render the laws ineffective in prohibiting corporations from farming. This would disrupt hibiting corporations from farming. This would disrupt specific parts of the anticorporate-farm-law causal model. specific parts of the anticorporate-farm-law causal model. that it conferred psychological as well as economic Kansas and Missouri provide typical examples of these that it conferred psychological as well as economic Kansas and Missouri provide typical examples of these benefits, and that it produced the best citizens.”55 exemptions. The Kansas legislature voted in 1995 to allow benefits, and that it produced the best citizens.”55 exemptions. The Kansas legislature voted in 1995 to allow Thus the proponents of the family farm have argued counties to opt out of the anticorporate farm laws and Thus the proponents of the family farm have argued counties to opt out of the anticorporate farm laws and persuasively in these nine states that the corporation allow agricultural land to be held or leased by a corpora- persuasively in these nine states that the corporation allow agricultural land to be held or leased by a corpora- has no place in agriculture. tion for use as a dairy-production facility or to establish has no place in agriculture. tion for use as a dairy-production facility or to establish a swine-production facility.59 It also reversed the initial a swine-production facility.59 It also reversed the initial While this agrarian view is difficult to monetize, a strong prohibition against contract farming. Most of the struc- While this agrarian view is difficult to monetize, a strong prohibition against contract farming. Most of the struc- economic argument does exist for limiting corporate tural exceptions to Kansas’s anticorporate farm law simply economic argument does exist for limiting corporate tural exceptions to Kansas’s anticorporate farm law simply farming. The financial capacities of corporations create require limitations on the number of stockholders and the farming. The financial capacities of corporations create require limitations on the number of stockholders and the an unfair and unlevel playing field on the farm. Corpora- blood relations among the stockholders, and it stipulates an unfair and unlevel playing field on the farm. Corpora- blood relations among the stockholders, and it stipulates tions have additional sources of funding, such as equity that at least one stockholder reside on the farm or manage tions have additional sources of funding, such as equity that at least one stockholder reside on the farm or manage financing or debt financing, that are not available to the its operation. financing or debt financing, that are not available to the its operation.

88 Vol. XVIII, 2010–2011 The Wagner Review 88 Vol. XVIII, 2010–2011 The Wagner Review In 1993, Missouri exempted three counties from its anti- The policies that assign federal subsidies are not prod- In 1993, Missouri exempted three counties from its anti- The policies that assign federal subsidies are not prod- corporate farm law because the counties had less than uct neutral. Consequently, some products are eligible corporate farm law because the counties had less than uct neutral. Consequently, some products are eligible 7,500 inhabitants.60 Furthermore, the law includes two to obtain payments from the federal government 7,500 inhabitants.60 Furthermore, the law includes two to obtain payments from the federal government major exemptions—the family-farm corporation and while others are not or are actively discouraged. Since major exemptions—the family-farm corporation and while others are not or are actively discouraged. Since the authorized farm corporation. The first exemption corporations are profit-oriented, it is possible to estab- the authorized farm corporation. The first exemption corporations are profit-oriented, it is possible to estab- holds that the family corporation has similar require- lish a causal pathway through which the existence of holds that the family corporation has similar require- lish a causal pathway through which the existence of ments for shareholders seen in the Kansas legislation. government payments attracts corporations to be ments for shareholders seen in the Kansas legislation. government payments attracts corporations to be The second exemption requires of the authorized farm engaged in agriculture. The authors hypothesize that The second exemption requires of the authorized farm engaged in agriculture. The authors hypothesize that corporation that all shareholders be natural persons federal subsidies attract corporations and cause indus- corporation that all shareholders be natural persons federal subsidies attract corporations and cause indus- and that two-thirds of the corporate income come trial agricultural practices to expand, thus reducing and that two-thirds of the corporate income come trial agricultural practices to expand, thus reducing from farming (not a specific farm but from farming). product diversity. In addition to corporate presence, from farming (not a specific farm but from farming). product diversity. In addition to corporate presence, Missouri exemplifies some other fairly common excep- federal subsidies may encourage and disproportion- Missouri exemplifies some other fairly common excep- federal subsidies may encourage and disproportion- tions, such as allowing for the possibility of expansion ately support larger farms, and therefore may encour- tions, such as allowing for the possibility of expansion ately support larger farms, and therefore may encour- of corporate farms owned before the enactment of the age industrial nondiverse agriculture. However, it is of corporate farms owned before the enactment of the age industrial nondiverse agriculture. However, it is anticorporate farm law. It also exempts certain agricul- also possible to think that the effect of federal sub- anticorporate farm law. It also exempts certain agricul- also possible to think that the effect of federal sub- tural productions such as winemaking, production of sidies on the small farm is magnified when low crop tural productions such as winemaking, production of sidies on the small farm is magnified when low crop poultry or poultry products, fishing, and mushroom prices and/or high debt drive farmers to grow sub- poultry or poultry products, fishing, and mushroom prices and/or high debt drive farmers to grow sub- farming. It also allows for establishment of non-profit sidized commodity crops. Federal subsidies increase farming. It also allows for establishment of non-profit sidized commodity crops. Federal subsidies increase corporate farms and those that perform experimental monoculture on the family farm. Consequently, the corporate farms and those that perform experimental monoculture on the family farm. Consequently, the research on genetically modified hogs. logic model suggests both direct and indirect effects research on genetically modified hogs. logic model suggests both direct and indirect effects of subsidies on reducing diversity. of subsidies on reducing diversity. South Dakota’s history with anticorporate farming leg- South Dakota’s history with anticorporate farming legislation also provides a spotty record, pointing to the A higher state tax burden increases the cost of run- islation also provides a spotty record, pointing to the A higher state tax burden increases the cost of run- relative ineffectiveness of such legislation at stopping ning businesses, including agriculture. In this case, relative ineffectiveness of such legislation at stopping ning businesses, including agriculture. In this case, the growth of corporate influence. South Dakota origi- corporations may try to avoid establishment in a state the growth of corporate influence. South Dakota origi- corporations may try to avoid establishment in a state nally passed its anticorporate farm law in 1974, but over where the tax burden is comparatively high, and in nally passed its anticorporate farm law in 1974, but over where the tax burden is comparatively high, and in the following few decades, it was deemed ineffective turn individual or family farms may be more preva- the following few decades, it was deemed ineffective turn individual or family farms may be more preva- by many local farm groups because of the many excep- lent. The tax burden measurement shows an effective by many local farm groups because of the many excep- lent. The tax burden measurement shows an effective tions. In 1989, the attorney general exempted many state and local average tax rate.62 For the purposes of tions. In 1989, the attorney general exempted many state and local average tax rate.62 For the purposes of large corporations, completely rendering South Dakota’s this study, this measure provides a basis that signals large corporations, completely rendering South Dakota’s this study, this measure provides a basis that signals anticorporate farm law nonexistent.61 Then, in 1998, which type of agriculture could be practiced based anticorporate farm law nonexistent.61 Then, in 1998, which type of agriculture could be practiced based Amendment E was added to the state’s constitution on how the state and local taxes favor corporate and/ Amendment E was added to the state’s constitution on how the state and local taxes favor corporate and/ through popular ballot and became one of the strictest or large-scale farming. If fewer corporations and/or through popular ballot and became one of the strictest or large-scale farming. If fewer corporations and/or anticorporate measures in the nation. In 2003, Amend- large-scale farms settle in a given state, industrial agri- anticorporate measures in the nation. In 2003, Amend- large-scale farms settle in a given state, industrial agri- ment E was ruled unconstitutional and in violation of culture is less likely to occur and crop diversity will ment E was ruled unconstitutional and in violation of culture is less likely to occur and crop diversity will the Interstate Commerce Clause, leaving South Dakota prevail. If higher taxes are a vehicle for driving away the Interstate Commerce Clause, leaving South Dakota prevail. If higher taxes are a vehicle for driving away open to corporate agriculture. corporate and large-scale farming, more ecological open to corporate agriculture. corporate and large-scale farming, more ecological farming is expected. farming is expected. Causal Model Causal Model The presence of anticorporate farming laws should The presence of anticorporate farming laws should This report examines three distinct policies, one federal inhibit corporate ownership of agricultural land. This This report examines three distinct policies, one federal inhibit corporate ownership of agricultural land. This and two that are more locally determined. The authors analysis tests whether the existence of such laws effect and two that are more locally determined. The authors analysis tests whether the existence of such laws effect hypothesize that federal subsidies attract corporate and changes on crop diversity, with the expectation that hypothesize that federal subsidies attract corporate and changes on crop diversity, with the expectation that large farms, and that these farms decrease diversity. Sub- negative trends in diversity may be reduced by the exis- large farms, and that these farms decrease diversity. Sub- negative trends in diversity may be reduced by the exis- sidies also act to decrease diversity directly by explic- tence of such laws. If corporations are more likely to sidies also act to decrease diversity directly by explic- tence of such laws. If corporations are more likely to itly encouraging farmers to produce subsidized crops practice industrial agriculture, corporate farms would itly encouraging farmers to produce subsidized crops practice industrial agriculture, corporate farms would at the detriment of other plants. The state tax burden tend toward monoculture. Therefore there should be at the detriment of other plants. The state tax burden tend toward monoculture. Therefore there should be and anticorporate farm laws should work the opposite more crop diversity in states that have anticorporate and anticorporate farm laws should work the opposite more crop diversity in states that have anticorporate way, deterring corporate and large-scale agriculture and farming laws than in states that do not. This analy- way, deterring corporate and large-scale agriculture and farming laws than in states that do not. This analy- thereby promoting crop diversity. sis also examines whether anticorporate laws actually thereby promoting crop diversity. sis also examines whether anticorporate laws actually

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 89 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 89 Crop Diversity in the U.S. Crop Diversity in the U.S. Hypothesized Causal Model timeframe of this project. Notable changes were Hypothesized Causal Model timeframe of this project. Notable changes were observed for the 2002 and 2007 data, which pro- observed for the 2002 and 2007 data, which pro- Anti-Corporate vide a more comprehensive accounting for all Anti-Corporate vide a more comprehensive accounting for all Federal Subsidies State Tax Burden Federal Subsidies State Tax Burden Farming Laws farms. Though greater detail is available on total Farming Laws farms. Though greater detail is available on total farms and farm structure, crop sales informa- farms and farm structure, crop sales information is less comprehensive than in previous years, tion is less comprehensive than in previous years, Corporate Presence Large Scale Corporate Presence Large Scale In Agriculture Farms reducing usability of sales data. The data set com- In Agriculture Farms reducing usability of sales data. The data set com- piled for this project includes 343 state-year obser- piled for this project includes 343 state-year observations, representing one for each of the 50 U.S. vations, representing one for each of the 50 U.S.

Crop states for each year from 1978 to 2007. It does not Crop states for each year from 1978 to 2007. It does not Diversity include Alaska, which was dropped due to sparse Diversity include Alaska, which was dropped due to sparse Figure 2. Hypothesized Causal Model, Policies on Crop Diversity data reporting, changes to county classification, Figure 2. Hypothesized Causal Model, Policies on Crop Diversity data reporting, changes to county classification, and demonstration of extreme outlier characteris- and demonstration of extreme outlier characteris- reduce corporate presence in comparison with states tics.64 See table 2 for various descriptive statistics reduce corporate presence in comparison with states tics.64 See table 2 for various descriptive statistics without such regulation, and how these laws might on independent and dependent variables. without such regulation, and how these laws might on independent and dependent variables. work on crop diversity through size variables. Anticor- work on crop diversity through size variables. Anticor- porate farming laws should establish barriers for corpo- Dependent Variables: Ownership porate farming laws should establish barriers for corpo- Dependent Variables: Ownership rations to engage in agriculture. As corporations’ share and Size Structures rations to engage in agriculture. As corporations’ share and Size Structures decreases, intensive agricultural practices are imple- It is essential to understand the mechanisms decreases, intensive agricultural practices are imple- It is essential to understand the mechanisms mented less frequently and higher crop diversity will through which state and federal policies provide mented less frequently and higher crop diversity will through which state and federal policies provide result. incentives or establish obstacles to engage corpora- result. incentives or establish obstacles to engage corporations in agriculture or to create favorable conditions tions in agriculture or to create favorable conditions Figure 2 graphically represents the hypothesized for development of large-scale industrial farming. Figure 2 graphically represents the hypothesized for development of large-scale industrial farming. causal model underlying the analysis, as described As the hypotheses indicate, the presence of either causal model underlying the analysis, as described As the hypotheses indicate, the presence of either above. A double line indicates a positive relationship corporately owned or very large farms may threaten above. A double line indicates a positive relationship corporately owned or very large farms may threaten between entities, while a single line denotes negative the prevalence of practices that promote diversity. between entities, while a single line denotes negative the prevalence of practices that promote diversity. influence. For example, the arrow from federal subsi- In order to address that pattern, the first analyses influence. For example, the arrow from federal subsi- In order to address that pattern, the first analyses dies to large-scale farms signals a positive hypotheti- deal with size and structure as dependent variables. dies to large-scale farms signals a positive hypotheti- deal with size and structure as dependent variables. cal relationship, so that higher subsidies will result in The Agricultural Census provides actual numbers cal relationship, so that higher subsidies will result in The Agricultural Census provides actual numbers more big farms. In turn, more large-scale farms nega- of farms and acres that are owned by individuals/ more big farms. In turn, more large-scale farms nega- of farms and acres that are owned by individuals/ tively impact crop diversity. According to this model, families, corporations, partnerships, or other types tively impact crop diversity. According to this model, families, corporations, partnerships, or other types federal subsidies should also directly result in lower of arrangements (trusts, cooperatives, etc.). Based federal subsidies should also directly result in lower of arrangements (trusts, cooperatives, etc.). Based crop diversity for reasons independent of farm size or on this information, it is possible to construct two crop diversity for reasons independent of farm size or on this information, it is possible to construct two structure. main variables that will guide the first set of regres- structure. main variables that will guide the first set of regressions in the analysis. Those variables are: sions in the analysis. Those variables are: Data Measures and Indices Data Measures and Indices Corpacreit = Share of total agricultural acres Corpacreit = Share of total agricultural acres For this analysis, data were culled from a variety owned by corporations For this analysis, data were culled from a variety owned by corporations of sources in order to compose the dependent Corpit = Share of total agricultural farms owned by of sources in order to compose the dependent Corpit = Share of total agricultural farms owned by and independent variables for this analysis. The corporations and independent variables for this analysis. The corporations majority of data for this project were drawn from majority of data for this project were drawn from the USDA Censuses of Agriculture for the period Where i and t stand for the state and time subscripts. the USDA Censuses of Agriculture for the period Where i and t stand for the state and time subscripts. 1978 to 2007. Starting in 1982, the census was These indicators capture the evolution of corporate 1978 to 2007. Starting in 1982, the census was These indicators capture the evolution of corporate conducted every five years. County level data for influence in the agricultural development of each conducted every five years. County level data for influence in the agricultural development of each 1978 to 1997 were provided by the National Agri- state. Following the logic model, this presence should 1978 to 1997 were provided by the National Agri- state. Following the logic model, this presence should cultural Statistics Service, USDA upon request.63 negatively affect crop diversity. cultural Statistics Service, USDA upon request.63 negatively affect crop diversity. Data for 2002 and 2007 were accessed through Data for 2002 and 2007 were accessed through the 2007 Desktop Data Query Tool 1.02, avail- Besides corporate ownership, scale may be another the 2007 Desktop Data Query Tool 1.02, avail- Besides corporate ownership, scale may be another able at the agricultural census website. USDA driving force of monoculture. In order to measure that able at the agricultural census website. USDA driving force of monoculture. In order to measure that data reporting has varied substantially across the influence, using the breakdown by size of farms avail- data reporting has varied substantially across the influence, using the breakdown by size of farms avail-

90 Vol. XVIII, 2010–2011 The Wagner Review 90 Vol. XVIII, 2010–2011 The Wagner Review Table 2. Descriptive statistics of dependent and independent variables (N = 343) Table 2. Descriptive statistics of dependent and independent variables (N = 343) Variable Share Mean Median Max. Min. Variable Share Mean Median Max. Min. Dependent variables Dependent variables Ownership structures and characteristics Ownership structures and characteristics Share of acres owned by corporations 0.138 0.106 0.770 0.006 Share of acres owned by corporations 0.138 0.106 0.770 0.006 Share of farms owned by corporations 0.047 0.042 0.144 0.003 Share of farms owned by corporations 0.047 0.042 0.144 0.003 Share of farms larger than 2,000 acres 0.044 0.014 0.317 0.000 Share of farms larger than 2,000 acres 0.044 0.014 0.317 0.000 Share of farms larger than 1,000 acres 0.090 0.047 0.470 0.002 Share of farms larger than 1,000 acres 0.090 0.047 0.470 0.002 Indexes based on acreage Indexes based on acreage NAICS - acres index 0.451 0.432 0.939 0.254 NAICS - acres index 0.451 0.432 0.939 0.254 USDA detailed product - acres index 0.338 0.343 0.623 0.146 USDA detailed product - acres index 0.338 0.343 0.623 0.146 Indexes based on sales Indexes based on sales NAICS to the fourth digit - sales index 0.487 0.478 0.889 0.165 NAICS to the fourth digit - sales index 0.487 0.478 0.889 0.165 USDA detailed product - sales index 0.436 0.425 0.421 0.221 USDA detailed product - sales index 0.436 0.425 0.421 0.221 Plant concentration - sales index 0.590 0.559 0.968 0.271 Plant concentration - sales index 0.590 0.559 0.968 0.271 Indexes based on farms Indexes based on farms USDA detailed product - farms index 0.116 0.114 0.257 0.027 USDA detailed product - farms index 0.116 0.114 0.257 0.027 Count of number of crops per farm 2.887 2.805 5.493 1.152 Count of number of crops per farm 2.887 2.805 5.493 1.152

Independent variables Independent variables Policies Policies States with anti-corporate farming laws 0.21 States with anti-corporate farming laws 0.21 Federal subsidy share 0.020 0.010 0.173 0.000 Federal subsidy share 0.020 0.010 0.173 0.000 State tax 0.096 0.096 0.124 0.066 State tax 0.096 0.096 0.124 0.066 Controls Controls Precipitation 37.21 40.78 84.49 6.94 Precipitation 37.21 40.78 84.49 6.94 Mean temperature 52.84 51.80 72.60 38.10 Mean temperature 52.84 51.80 72.60 38.10 Unemployment rate 0.060 0.060 0.155 0.023 Unemployment rate 0.060 0.060 0.155 0.023 State GDP share 0.020 0.013 0.133 0.002 State GDP share 0.020 0.013 0.133 0.002 Share of farms using contract labor 0.101 0.089 0.345 0.025 Share of farms using contract labor 0.101 0.089 0.345 0.025 Share farms farming is primary occupation 0.537 0.520 0.845 0.360 Share farms farming is primary occupation 0.537 0.520 0.845 0.360   Table 2. Descriptive statistics of dependent and independent variables (N = 343) Table 2. Descriptive statistics of dependent and independent variables (N = 343) able in the Agricultural Census, the authors calculated richness within an ecosystem, but does not provide any able in the Agricultural Census, the authors calculated richness within an ecosystem, but does not provide any two variables to represent large-scale agriculture.65 illustration in terms of concentration. two variables to represent large-scale agriculture.65 illustration in terms of concentration.

Lgfarmit = Share of total agricultural farms with Other indices use alternative measures for the proportion Lgfarmit = Share of total agricultural farms with Other indices use alternative measures for the proportion more than 1,000 acres. of area planted with the top varieties or the number of more than 1,000 acres. of area planted with the top varieties or the number of

Verylgfarmit = Share of total agricultural farms with varieties accounting for a given percentage of cultivated Verylgfarmit = Share of total agricultural farms with varieties accounting for a given percentage of cultivated more than 2,000 acres. area. Indices based on economic literature like the Herfin- more than 2,000 acres. area. Indices based on economic literature like the Herfin- dahl index—the sum of squared shares of total crop area dahl index—the sum of squared shares of total crop area These two variables complete the potential drivers of planted to each unique variety—are commonly used for These two variables complete the potential drivers of planted to each unique variety—are commonly used for monoculture. measuring diversity. The Shannon-Wiener index and the monoculture. measuring diversity. The Shannon-Wiener index and the Simpson index are also based on spatial diversity. These Simpson index are also based on spatial diversity. These Dependent Variables: Diversity indices measure proportional abundance of specific prod- Dependent Variables: Diversity indices measure proportional abundance of specific prod- Indices ucts; that is, they combine indicators of crop-population Indices ucts; that is, they combine indicators of crop-population There is an extensive ecologic and economic literature richness as well as abundance. Dominance indices, such There is an extensive ecologic and economic literature richness as well as abundance. Dominance indices, such on how to measure diversity. A comprehensive measure as Simpson and Herfindahl, are relevant particularly for on how to measure diversity. A comprehensive measure as Simpson and Herfindahl, are relevant particularly for of diversity should include both richness and concentra- intervarietal diversity, because they provide a measure not of diversity should include both richness and concentra- intervarietal diversity, because they provide a measure not tion. A simple count of the number of species (frequently only of the number of distinct populations planted but tion. A simple count of the number of species (frequently only of the number of distinct populations planted but used for ecological purposes) may be a good indicator for also of their relative importance.66 used for ecological purposes) may be a good indicator for also of their relative importance.66

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 91 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 91 Crop Diversity in the U.S. Crop Diversity in the U.S. In addition to spatial diversity, economic diversity based The second indicator of diversity is a simple count of In addition to spatial diversity, economic diversity based The second indicator of diversity is a simple count of on the sources of income may also be a useful indicator. the average number of products per farm, both plants on the sources of income may also be a useful indicator. the average number of products per farm, both plants Although the mechanics of the indices may be similar to and animals, in each state. This measure is closer to Although the mechanics of the indices may be similar to and animals, in each state. This measure is closer to those used under a spatial perspective, the common unit that usually referenced in ecological studies and can those used under a spatial perspective, the common unit that usually referenced in ecological studies and can of analysis is no longer a spatial one but a monetary mea- be calculated by a simple formula: of analysis is no longer a spatial one but a monetary mea- be calculated by a simple formula: sure, typically net income or sales income.67 sure, typically net income or sales income.67 Number of products/farm = Number of products/farm = Calculation of crop diversity could be made at county, Calculation of crop diversity could be made at county, state, and national levels. Though crop diversity at the state, and national levels. Though crop diversity at the farm level would have been an ideal variable, USDA farm level would have been an ideal variable, USDA restrictions on data access prompted by proprietary con- Again, the measure is calculated for every county and a restrictions on data access prompted by proprietary con- Again, the measure is calculated for every county and a cerns prevented access to such detail. Instead, we calculate weighted average for each state is obtained using the share cerns prevented access to such detail. Instead, we calculate weighted average for each state is obtained using the share county-level diversity as a proxy based on product mix of sales as the proper weight.69 For this measure, a higher county-level diversity as a proxy based on product mix of sales as the proper weight.69 For this measure, a higher and build weighted averages in order to provide a state- number indicates increased diversity, so that the oppo- and build weighted averages in order to provide a state- number indicates increased diversity, so that the oppo- level representation of farm diversity within a particular sitional directions between this variable and the spatial level representation of farm diversity within a particular sitional directions between this variable and the spatial state in a given year. The alternative, using state-level data diversity index capture similar ideas. state in a given year. The alternative, using state-level data diversity index capture similar ideas. to calculate an index, may lead to inaccurate results due to to calculate an index, may lead to inaccurate results due to aggregation. In other words, although the overall state may A higher number of average products per farm indicates aggregation. In other words, although the overall state may A higher number of average products per farm indicates look diverse, each single farm within it may be engaged in greater diversity. This dependent variable on diversity is look diverse, each single farm within it may be engaged in greater diversity. This dependent variable on diversity is monoculture. Since farm-level data is unfeasible and state- a simple measure to interpret, as it captures the average monoculture. Since farm-level data is unfeasible and state- a simple measure to interpret, as it captures the average level data risks overgeneralization, county-level data is the number of crops and livestock products per farm. How- level data risks overgeneralization, county-level data is the number of crops and livestock products per farm. How- best alternative and one that is commonly used as the unit ever, it is limited in that it does not take into consideration best alternative and one that is commonly used as the unit ever, it is limited in that it does not take into consideration in ecological analysis.68 the relative importance of each product, either through in ecological analysis.68 the relative importance of each product, either through acreage or economic participation. acreage or economic participation. The specific variables of analysis are: The specific variables of analysis are: Independent Variables: Independent Variables: (1) A spatial diversity index (Herfindahl index) Covariates (1) A spatial diversity index (Herfindahl index) Covariates with the data based on acreage. Several significant covariates are included in the full with the data based on acreage. Several significant covariates are included in the full Herfindahl Index of products based on acreage regressions, capturing geographic, economic, and Herfindahl Index of products based on acreage regressions, capturing geographic, economic, and coverage = social characteristics of the states. Since crop pro- coverage = social characteristics of the states. Since crop production and diversity are sensitive to weather, each duction and diversity are sensitive to weather, each Where is the proportion of acres cultivated with adjusted regression controls for precipitation and Where is the proportion of acres cultivated with adjusted regression controls for precipitation and crop i within the specific unit of observation. The average temperature. Precipitation is taken as a three- crop i within the specific unit of observation. The average temperature. Precipitation is taken as a three- index is calculated for every county and a state indica- year average of annual rainfall inches for that year index is calculated for every county and a state indica- year average of annual rainfall inches for that year tor is obtained through a weighted average based on and the two years prior. The temperature control is tor is obtained through a weighted average based on and the two years prior. The temperature control is each county’s acreage contribution to total state farm- an average Fahrenheit temperature for the year repre- each county’s acreage contribution to total state farm- an average Fahrenheit temperature for the year repre- land. This index is measured on a 0 to 1 scale, where sented. Both of these measures were obtained through land. This index is measured on a 0 to 1 scale, where sented. Both of these measures were obtained through 0 means complete diversity and 1 indicates a scenario LexisNexis.70 0 means complete diversity and 1 indicates a scenario LexisNexis.70 in which one crop covers all the acreage or accounts in which one crop covers all the acreage or accounts for 100 percent of the total sales. A lower value on In order to control for important state economic for 100 percent of the total sales. A lower value on In order to control for important state economic the Herfindahl index indicates a more diverse agricul- factors, variables are included for the unemploy- the Herfindahl index indicates a more diverse agricul- factors, variables are included for the unemploy- ture. ment rate and state GDP in the state-year. Data ture. ment rate and state GDP in the state-year. Data on unemployment were obtained through the U.S. on unemployment were obtained through the U.S. The main advantage of this indicator is that it takes Department of Labor71 and are calculated as a rate. The main advantage of this indicator is that it takes Department of Labor71 and are calculated as a rate. into consideration both the number of crops and State GDP, as reported by the Bureau of Economic into consideration both the number of crops and State GDP, as reported by the Bureau of Economic the relative importance based on acreage coverage. A Analysis,72 is formatted as the share of state gross the relative importance based on acreage coverage. A Analysis,72 is formatted as the share of state gross limitation is that it only considers crops and not live- domestic product out of the total national GDP. limitation is that it only considers crops and not live- domestic product out of the total national GDP. stock or animal products such as eggs or dairy. Including this measurement as a ratio obviates the stock or animal products such as eggs or dairy. Including this measurement as a ratio obviates the need to account for inflation and gives a relational need to account for inflation and gives a relational (2) A count of the total number of products per farm perspective of the states. (2) A count of the total number of products per farm perspective of the states.

92 Vol. XVIII, 2010–2011 The Wagner Review 92 Vol. XVIII, 2010–2011 The Wagner Review Farm-specific indicators taken from the Census of Agri- The second set of regressions attempts to ana- Farm-specific indicators taken from the Census of Agri- The second set of regressions attempts to ana- culture are included to control for varying factors, as well lyze the effect of the policies on the preva- culture are included to control for varying factors, as well lyze the effect of the policies on the preva- as to get a sense of the significance of these variables on lence of extensive agriculture as measured by as to get a sense of the significance of these variables on lence of extensive agriculture as measured by the dependent measures of size, structure, and diversity. the share of large (greater than or equal to the dependent measures of size, structure, and diversity. the share of large (greater than or equal to When not represented as a main independent policy 1,000 acres) and very large (greater than or When not represented as a main independent policy 1,000 acres) and very large (greater than or variable, share of federal farm subsidies is included as a equal to 2,000 acres) farms (equations 3 and 4). variable, share of federal farm subsidies is included as a equal to 2,000 acres) farms (equations 3 and 4). control in all regressions. Measures of farm size and own- control in all regressions. Measures of farm size and ownership are also included as control variables. In analyses (3) ership are also included as control variables. In analyses (3) of policy effects on large farms, a covariate is included for (4) of policy effects on large farms, a covariate is included for (4) share of acres owned by corporations, in order to control share of acres owned by corporations, in order to control for and examine corporate presence. When the dependent The final step in the analysis relates each of the policies for and examine corporate presence. When the dependent The final step in the analysis relates each of the policies variable is a measure of corporate ownership and diversity, to the measure of diversity as stated in equations 5 and 6. variable is a measure of corporate ownership and diversity, to the measure of diversity as stated in equations 5 and 6. the authors control for the presence of very large farms by the authors control for the presence of very large farms by including a variable that represents the share of total farm- (5) including a variable that represents the share of total farm- (5) land in farms that are 2,000 acres or larger. Variables that (6) land in farms that are 2,000 acres or larger. Variables that (6) measure the proportion of farms in the state that use con- measure the proportion of farms in the state that use contract labor and the proportion of farms where the princi- All estimates were initially run using ordinary least tract labor and the proportion of farms where the princi- All estimates were initially run using ordinary least pal occupation of the owners is farming are also included. squares (OLS) methodology.73 Due to the presence pal occupation of the owners is farming are also included. squares (OLS) methodology.73 Due to the presence Prevalence of contract labor may indicate a more corpo- of heteroskedasticity (nonconstant variance in the Prevalence of contract labor may indicate a more corpo- of heteroskedasticity (nonconstant variance in the rate structure and a certain degree of vertical integration, residuals of the OLS estimation), robust regression74 rate structure and a certain degree of vertical integration, residuals of the OLS estimation), robust regression74 while previous research suggests that farming as a primary estimates were then performed, and those results are while previous research suggests that farming as a primary estimates were then performed, and those results are occupation may be strongly related to crop diversity. reported in the adjusted columns in results tables occupation may be strongly related to crop diversity. reported in the adjusted columns in results tables below. Calculations were also made using region below. Calculations were also made using region Region controls are included in a number of the regres- and time effects, and those are reported here, as they Region controls are included in a number of the regres- and time effects, and those are reported here, as they sions in order to account for geographical variations that provide a better estimate by capturing homogenous sions in order to account for geographical variations that provide a better estimate by capturing homogenous may not be captured through the other controls noted socioeconomic and ecologic patterns.75 may not be captured through the other controls noted socioeconomic and ecologic patterns.75 above. This analysis uses the USDA’s division of farm pro- above. This analysis uses the USDA’s division of farm production regions in order to assign a region to each state. Construction of duction regions in order to assign a region to each state. Construction of Though this accounting is broader than the land resource Policy Variables Though this accounting is broader than the land resource Policy Variables or farm resource regions delineated, it is a useful measure Federal subsidy share: The variable for federal farm or farm resource regions delineated, it is a useful measure Federal subsidy share: The variable for federal farm for these purposes as the lines are drawn along state bor- subsidies represents the state share of total pay- for these purposes as the lines are drawn along state bor- subsidies represents the state share of total pay- ders. As a result, the measure may capture regional com- ments to U.S. farms made by the federal gov- ders. As a result, the measure may capture regional com- ments to U.S. farms made by the federal gov- plexities beyond those specifically related to agriculture. ernment. It is calculated by dividing the total plexities beyond those specifically related to agriculture. ernment. It is calculated by dividing the total There are 11 regions, which are codified as binary variables payments reported by the USDA Economic There are 11 regions, which are codified as binary variables payments reported by the USDA Economic and used as dummies in regressions with region controls, Research Service in nominal dollars into the figure and used as dummies in regressions with region controls, Research Service in nominal dollars into the figure with region 0 (Alaska and Hawaii) as the referent region. assigned to each of the 50 states. This is a lagged with region 0 (Alaska and Hawaii) as the referent region. assigned to each of the 50 states. This is a lagged variable that averages state farm subsidies for the variable that averages state farm subsidies for the Methodology two previous years. Using the two year lagged Methodology two previous years. Using the two year lagged average helps to smooth out some of the yearly average helps to smooth out some of the yearly Multivariate regression analysis was conducted on variance in federal subsidies. The federal farm Multivariate regression analysis was conducted on variance in federal subsidies. The federal farm policy variables in order to test the causal path- subsidy share variable is useful in determining policy variables in order to test the causal path- subsidy share variable is useful in determining ways hypothesized in the model. Equations used how payments are allocated among states, regard- ways hypothesized in the model. Equations used how payments are allocated among states, regard- for each of the primary models are detailed below. less of subsidy amounts for the year. Lagging this for each of the primary models are detailed below. less of subsidy amounts for the year. Lagging this The first set of regressions examines the impact of measure allows for more confidence in making The first set of regressions examines the impact of measure allows for more confidence in making the policies on the involvement of corporations causal observations, though the cyclical nature of the policies on the involvement of corporations causal observations, though the cyclical nature of in the ownership of agricultural land (equations federal subsidies prevents the use of fully causal in the ownership of agricultural land (equations federal subsidies prevents the use of fully causal 1 and 2). statements in this paper. 1 and 2). statements in this paper.

(1) State and local tax burden: The state and local tax (1) State and local tax burden: The state and local tax (2) burden is reported as a rate based on the one to (2) burden is reported as a rate based on the one to

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 93 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 93 Crop Diversity in the U.S. Crop Diversity in the U.S. Table 3. Regression analysis of federal subsidy share on U.S. farm size, ownership, and diversity measures, 1978-2007 Table 3. Regression analysis of federal subsidy share on U.S. farm size, ownership, and diversity measures, 1978-2007

Share of farm acres owned by Share of farms owned by Share of farm acres from farms Share of farm acres from farms Share of farm acres owned by Share of farms owned by Share of farm acres from farms Share of farm acres from farms Panel 1: Ownership and size corporations corporations with > 1,000 acres with > 2,000 acres Panel 1: Ownership and size corporations corporations with > 1,000 acres with > 2,000 acres Region Region Region Region Region Region Region Region Not & time Not & time Not & time Not & time Not & time Not & time Not & time Not & time Variable adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects Variable adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects Policy: Federal subsidy share -.461** -0.373** 0.126 -.300** -0.343* 0.054 .889** 0.742** 0.372** .335** 0.235** 0.146** Policy: Federal subsidy share -.461** -0.373** 0.126 -.300** -0.343* 0.054 .889** 0.742** 0.372** .335** 0.235** 0.146** (standard error) (.161) (.143) (.151) (.062) (0.058) (0.053) (.067) (0.078) (0.507) (.033) (0.037) (0.020) (standard error) (.161) (.143) (.151) (.062) (0.058) (0.053) (.067) (0.078) (0.507) (.033) (0.037) (0.020) Covariates Covariates Precipitation, 3 year mean 0.001 0.001 0.000 0.000 -0.002** 0.000 -0.001** 0.000 Precipitation, 3 year mean 0.001 0.001 0.000 0.000 -0.002** 0.000 -0.001** 0.000 Mean temperature -0.002** 0.005** 0.000 0.002** 0.002** 0.000 0.001** 0.000 Mean temperature -0.002** 0.005** 0.000 0.002** 0.002** 0.000 0.001** 0.000 Unemployment rate -0.156 -0.387* -0.237** -0.124* 0.101 0.059 0.060 0.017 Unemployment rate -0.156 -0.387* -0.237** -0.124* 0.101 0.059 0.060 0.017 State GDP as share of national GDP -0.032 -0.668** -0.001 -0.160* -0.670** -0.152** -0.276** -0.033 State GDP as share of national GDP -0.032 -0.668** -0.001 -0.160* -0.670** -0.152** -0.276** -0.033 Farm acres in very large farms share 0.487** 0.436** 0.129** 0.186** – – – – Farm acres in very large farms share 0.487** 0.436** 0.129** 0.186** – – – – Farm acres in corporate farms share – – – – 0.045* 0.083** 0.046** 0.044** Farm acres in corporate farms share – – – – 0.045* 0.083** 0.046** 0.044** Farms using contract labor share 0.479** 0.273** 0.223** 0.107** 0.150** -0.077** 0.095** -0.038** Farms using contract labor share 0.479** 0.273** 0.223** 0.107** 0.150** -0.077** 0.095** -0.038** Farming as primary occupation share -0.062 0.079* 0.035* 0.029* 0.016 0.044** -0.017 -0.001 Farming as primary occupation share -0.062 0.079* 0.035* 0.029* 0.016 0.044** -0.017 -0.001 Region controls † † † † Region controls † † † † Year controls ‡ ‡ ‡ ‡ Year controls ‡ ‡ ‡ ‡

Panel 2: Diversity Index of crops by acre Average number products per farm Panel 2: Diversity Index of crops by acre Average number products per farm Region Region Region Region Not & time Not & time Not & time Not & time Variable adjusted Adjusted effects adjusted Adjusted effects Variable adjusted Adjusted effects adjusted Adjusted effects Policy: Federal subsidy share 1.04** 1.250** 0.902** 1.58 -1.599 -3.880** Policy: Federal subsidy share 1.04** 1.250** 0.902** 1.58 -1.599 -3.880** (standard error) (.189) (0.164) (0.198) (1.262) (1.263) (standard error) (.189) (0.164) (0.198) (1.262) (1.263) Covariates Covariates Precipitation, 3 year mean -0.002** 0.000 0.004 -0.007 Precipitation, 3 year mean -0.002** 0.000 0.004 -0.007 Mean temperature 0.004** 0.001 -0.039** -0.024** Mean temperature 0.004** 0.001 -0.039** -0.024** Unemployment rate 0.160 0.171 3.959** -1.199 Unemployment rate 0.160 0.171 3.959** -1.199 State GDP as share of national GDP -1.527** -1.478** 2.672 5.098** State GDP as share of national GDP -1.527** -1.478** 2.672 5.098** Farm acres in very large farms share 0.291** -0.103 -3.613** -1.936** Farm acres in very large farms share 0.291** -0.103 -3.613** -1.936** Farms using contract labor share -0.048 0.088 -1.161 -2.801** Farms using contract labor share -0.048 0.088 -1.161 -2.801** Farming as primary occupation share -0.260** -0.009 4.360** 2.730** Farming as primary occupation share -0.260** -0.009 4.360** 2.730** Region controls † † Region controls † † Year controls ‡ ‡ Year controls ‡ ‡ Results reported utilize robust standard errors Results reported utilize robust standard errors * p < 0.05 ** p < 0.01 * p < 0.05 ** p < 0.01 † Vector of dummy variables representing USDA regions 0-10, 0 as referent † Vector of dummy variables representing USDA regions 0-10, 0 as referent ‡ Year dummy variables for 1978-2007, 1978 as referent ‡ Year dummy variables for 1978-2007, 1978 as referent

Table 3. Regression analysis of federal subsidy share on U.S. farm size, ownership, and diversity measures, 1978-2007 Table 3. Regression analysis of federal subsidy share on U.S. farm size, ownership, and diversity measures, 1978-2007

100 percent scale built by the Tax Foundation for farming laws available at the National Agricultural 100 percent scale built by the Tax Foundation for farming laws available at the National Agricultural the corresponding year76 and is analyzed as a com- Law Center, individual state statues and codes,77 the corresponding year76 and is analyzed as a com- Law Center, individual state statues and codes,77 prehensive rate. The burden is the result of the and the Community Environmental Legal Defense prehensive rate. The burden is the result of the and the Community Environmental Legal Defense sum of the collections divided by the total state Fund. sum of the collections divided by the total state Fund. income and, comprehensively, is a good proxy for income and, comprehensively, is a good proxy for the general cost of doing business, allowing for Results and Policy the general cost of doing business, allowing for Results and Policy comparisons between states in terms of the rela- Implications comparisons between states in terms of the rela- Implications tive burdens. It is important to understand the tive burdens. It is important to understand the way the rate is measured in order to grasp its vari- Federal Farm Subsidies way the rate is measured in order to grasp its vari- Federal Farm Subsidies ability and dynamism. The tax burden changes ability and dynamism. The tax burden changes Results from the analysis using federal subsidies are Results from the analysis using federal subsidies are from one year to another, as opposed to the state from one year to another, as opposed to the state reported in table 3 and show generally that subsidies are reported in table 3 and show generally that subsidies are and local tax statutory tax rates, which remain and local tax statutory tax rates, which remain negatively associated with crop diversity. The association negatively associated with crop diversity. The association fairly static. Exemptions, preferential treatments, fairly static. Exemptions, preferential treatments, between government payments and corporate owner- between government payments and corporate owner- different assessments, or any other adjustment in different assessments, or any other adjustment in ship is not substantial in this model when controlling for ship is not substantial in this model when controlling for setting the tax bases also affect the tax burden. setting the tax bases also affect the tax burden. region and time.78 Though the relationship is not strong region and time.78 Though the relationship is not strong at the crop-production level, corporate influence should at the crop-production level, corporate influence should Anticorporate farming laws: Binomial variable cod- not be fully discounted. Corporations likely benefit indi- Anticorporate farming laws: Binomial variable cod- not be fully discounted. Corporations likely benefit indi- ing was adopted for anticorporate farming laws. If rectly from subsidies through cheaper prices at the pro- ing was adopted for anticorporate farming laws. If rectly from subsidies through cheaper prices at the pro- state x at year t has one of these laws, the value cessor level, and large food processors may be more likely state x at year t has one of these laws, the value cessor level, and large food processors may be more likely was indicated as 1, and otherwise the value is 0. A to contract with larger farms as a matter of convenience was indicated as 1, and otherwise the value is 0. A to contract with larger farms as a matter of convenience total of 60 observations out of 343 (17.4 percent) and to promote economies of scale. total of 60 observations out of 343 (17.4 percent) and to promote economies of scale. are coded as 1. In order to specify the existence of are coded as 1. In order to specify the existence of a law in a specific state, the authors used informa- The 2002 CRS paper to Congress referenced above a law in a specific state, the authors used informa- The 2002 CRS paper to Congress referenced above tion from the legislation tracker for anticorporate states that “data on state averages obscure the high tion from the legislation tracker for anticorporate states that “data on state averages obscure the high

94 Vol. XVIII, 2010–2011 The Wagner Review 94 Vol. XVIII, 2010–2011 The Wagner Review Table 4. Regression analysis of state tax burden on U.S. farm size, ownership, and diversity measures, 1978-2007 Table 4. Regression analysis of state tax burden on U.S. farm size, ownership, and diversity measures, 1978-2007

Share of farm acres owned by Share of farms owned by Share of farm acres from farms Share of farm acres from farms Share of farm acres owned by Share of farms owned by Share of farm acres from farms Share of farm acres from farms Panel 1: Ownership and Size corporations corporations with > 1,000 Acres with > 2,000 acres Panel 1: Ownership and Size corporations corporations with > 1,000 Acres with > 2,000 acres Region Region Region & Region & Region Region Region & Region &   Not  & time  Not  & time  Not  time  Not time   Not  & time  Not  & time  Not  time  Not time Variable adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects Variable adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects Policy: State tax burden 0.449 1.535** 0.830** 0.197 0.237 0.140 -1.214** -0.437* -.358** -.282** -0.234** -0.066 Policy: State tax burden 0.449 1.535** 0.830** 0.197 0.237 0.140 -1.214** -0.437* -.358** -.282** -0.234** -0.066 (standard error) (.381) (.333) (.293) (.155) (0.146) (0.103) (.236) (.177) (.098) (.091) (0.086) (0.036) (standard error) (.381) (.333) (.293) (.155) (0.146) (0.103) (.236) (.177) (.098) (.091) (0.086) (0.036) Covariates Covariates Precipitation, 3 year mean 0.001* 0.001 0.000 0.000 -0.002** 0.000 -0.001** 0.000 Precipitation, 3 year mean 0.001* 0.001 0.000 0.000 -0.002** 0.000 -0.001** 0.000 Mean temperature -0.002** 0.004** 0.000 0.002** 0.002** 0.000 0.001** 0.000 Mean temperature -0.002** 0.004** 0.000 0.002** 0.002** 0.000 0.001** 0.000 Unemployment rate -0.064 -0.444* -0.223** -0.126* 0.081 0.073 0.051 0.019 Unemployment rate -0.064 -0.444* -0.223** -0.126* 0.081 0.073 0.051 0.019 State GDP as share of national GDP -0.110 -0.705** -0.022** -0.180** -0.623** -0.109* -0.258** -0.025 State GDP as share of national GDP -0.110 -0.705** -0.022** -0.180** -0.623** -0.109* -0.258** -0.025 Federal farm subsidy share -0.164 0.166 -0.331** 0.055 0.711** 0.356** 0.213** 0.142** Federal farm subsidy share -0.164 0.166 -0.331** 0.055 0.711** 0.356** 0.213** 0.142** Farm acres in very large farms share 0.627** 0.530** 0.146** 0.200* – – – – Farm acres in very large farms share 0.627** 0.530** 0.146** 0.200* – – – – Farm acres in corporate farms share – – – – 0.047* 0.084** 0.051** 0.043** Farm acres in corporate farms share – – – – 0.047* 0.084** 0.051** 0.043** Farms using contract labor share 0.416** 0.325** 0.217** 0.111** 0.156** -0.094** 0.096** -0.040** Farms using contract labor share 0.416** 0.325** 0.217** 0.111** 0.156** -0.094** 0.096** -0.040** Farming as primary occupation share -0.126** 0.024 0.029 0.023 0.023 0.054** -0.012 0.001 Farming as primary occupation share -0.126** 0.024 0.029 0.023 0.023 0.054** -0.012 0.001 Region controls † † † † Region controls † † † † Year controls ‡ ‡ ‡ ‡ Year controls ‡ ‡ ‡ ‡

Panel 2: Diversity Index of crops by acre Average number products per farm Panel 2: Diversity Index of crops by acre Average number products per farm Region Region Region Region Not & time Not & time Not & time Not & time Variable adjusted Adjusted effects adjusted Adjusted effects Variable adjusted Adjusted effects adjusted Adjusted effects Policy: State tax burden -4.763** -2.125** -2.020** 29.6** 8.844** 9.854** Policy: State tax burden -4.763** -2.125** -2.020** 29.6** 8.844** 9.854** (standard error) (.417) (0.411) (0.395) (3.780) (3.16) (2.331) (standard error) (.417) (0.411) (0.395) (3.780) (3.16) (2.331) Covariates Covariates Precipitation, 3 year mean -0.002** 0.000 0.003 -0.007 Precipitation, 3 year mean -0.002** 0.000 0.003 -0.007 Mean temperature 0.003* 0.000 -0.034** -0.021** Mean temperature 0.003* 0.000 -0.034** -0.021** Unemployment rate 0.078 0.171 4.276** -1.968 Unemployment rate 0.078 0.171 4.276** -1.968 State GDP as share of national GDP -1.353** -1.131** 1.907 3.890** State GDP as share of national GDP -1.353** -1.131** 1.907 3.890** Federal farm subsidy share 1.062** 0.837** -1.296 -4.077** Federal farm subsidy share 1.062** 0.837** -1.296 -4.077** Farm acres in very large farms share 0.149 -0.222* -3.047** -1.139* Farm acres in very large farms share 0.149 -0.222* -3.047** -1.139* Farms using contract labor share -0.026 -0.177 -1.408* -2.350** Farms using contract labor share -0.026 -0.177 -1.408* -2.350** Farming as primary occupation share -0.183** 0.057 4.139** 2.370** Farming as primary occupation share -0.183** 0.057 4.139** 2.370** Region controls † † Region controls † † Year controls ‡ ‡ Year controls ‡ ‡ Results reported utilize robust standard errors Results reported utilize robust standard errors * p < 0.05 ** p < 0.01 * p < 0.05 ** p < 0.01 † Vector of dummy variables representing USDA regions 0-10, 0 as referent † Vector of dummy variables representing USDA regions 0-10, 0 as referent ‡ Year dummy variables for 1978-2007, 1978 as referent ‡ Year dummy variables for 1978-2007, 1978 as referent

Table 4. Regression analysis of state tax burden on U.S. farm size, ownership, and diversity measures, 1978-2007 Table 4. Regression analysis of state tax burden on U.S. farm size, ownership, and diversity measures, 1978-2007 concentrations of payments to a relatively small pro- in the diversity index, a small but significant rise that indi- concentrations of payments to a relatively small pro- in the diversity index, a small but significant rise that indi- portion of the farms receiving subsidies.”79 This fact is cates diversity reduction. The impact on crops per farm portion of the farms receiving subsidies.”79 This fact is cates diversity reduction. The impact on crops per farm seen in the data presented. A regression on the large is similar in that subsidies show increased monoculture. seen in the data presented. A regression on the large is similar in that subsidies show increased monoculture. farm variables shows federal subsidies to be positive For this measure, a one point increase in share of subsidies farm variables shows federal subsidies to be positive For this measure, a one point increase in share of subsidies and statistically significant, which supports the idea reduces products per farm by nearly 0.04.81 and statistically significant, which supports the idea reduces products per farm by nearly 0.04.81 that farm subsidies disproportionately favor large that farm subsidies disproportionately favor large farms over small ones.80 When controlling for region The relationship between subsidies and crop diversity does farms over small ones.80 When controlling for region The relationship between subsidies and crop diversity does and time effects, a one percent increase in share of not run one way but can be seen as a feedback loop in and time effects, a one percent increase in share of not run one way but can be seen as a feedback loop in federal subsidies is associated with a 0.37 percentage which product concentration also requires more subsidies. federal subsidies is associated with a 0.37 percentage which product concentration also requires more subsidies. point increase in share of farms that are 1,000 acres or While subsidies encourage production of certain types of point increase in share of farms that are 1,000 acres or While subsidies encourage production of certain types of larger. Such an increase is also highly significant and crops, growing these crops will result in greater subsidiza- larger. Such an increase is also highly significant and crops, growing these crops will result in greater subsidiza- results in an increased coefficient of 0.15 percentage tion. Analyzing future federal subsidies as the dependent results in an increased coefficient of 0.15 percentage tion. Analyzing future federal subsidies as the dependent points of farms greater than 2,000 acres. variable shows that subsidies are inversely associated with points of farms greater than 2,000 acres. variable shows that subsidies are inversely associated with crop diversity in the previous year, as measured in the crop diversity in the previous year, as measured in the As projected, subsidy share is negatively associated with products per acre index. Given the amount of volatility As projected, subsidy share is negatively associated with products per acre index. Given the amount of volatility crop diversity. Federal payments to farms are concentrated in federal subsidies, further analysis of this measure will be crop diversity. Federal payments to farms are concentrated in federal subsidies, further analysis of this measure will be by region, and the inclusion of region covariates reduces necessary to make more concrete statements. by region, and the inclusion of region covariates reduces necessary to make more concrete statements. the magnitude of the effect on the index of crops by acre, the magnitude of the effect on the index of crops by acre, though when looking at the basic measure of crops per Government payments to farms are consistently associated though when looking at the basic measure of crops per Government payments to farms are consistently associated farm the effect is more pronounced. Controlling for year with decreases to crop diversity, as measured both in the farm the effect is more pronounced. Controlling for year with decreases to crop diversity, as measured both in the and region, a one percentage point increase in the share of product index and the crops-per-farm figures. The poli- and region, a one percentage point increase in the share of product index and the crops-per-farm figures. The poli- government payments is associated with a 0.009 increase cies surrounding crop subsidization in the United States government payments is associated with a 0.009 increase cies surrounding crop subsidization in the United States

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 95 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 95 Crop Diversity in the U.S. Crop Diversity in the U.S. are volatile topics in policy debates. To some extent, these the deductibility of state and local taxes paid from federal are volatile topics in policy debates. To some extent, these the deductibility of state and local taxes paid from federal support mechanisms are reformed with each new Farm income tax may balance out the effect of the local burden, support mechanisms are reformed with each new Farm income tax may balance out the effect of the local burden, Bill, but at the core they are difficult to change substan- a result that cannot be tested using the current model. Bill, but at the core they are difficult to change substan- a result that cannot be tested using the current model. tially. Numerous powerful stakeholders within domestic tially. Numerous powerful stakeholders within domestic and international realms advocate oppositional reforms, As expected, the relationship between state tax and pro- and international realms advocate oppositional reforms, As expected, the relationship between state tax and pro- and policy effects can be difficult to tease apart in order portion of large farms is strong and negative. Controlling and policy effects can be difficult to tease apart in order portion of large farms is strong and negative. Controlling to make objective assessments. One outcome that became for region and time, a one percentage point increase in to make objective assessments. One outcome that became for region and time, a one percentage point increase in clear through this analysis is that federal farm subsidies, state tax burden relates to a decrease in the proportion of clear through this analysis is that federal farm subsidies, state tax burden relates to a decrease in the proportion of as they are currently allocated, work against crop diversity farms with more than 1,000 acres by 0.0036. The coef- as they are currently allocated, work against crop diversity farms with more than 1,000 acres by 0.0036. The coef- and may promote farm practices that are environmentally ficient remains negative but not statistically significant and may promote farm practices that are environmentally ficient remains negative but not statistically significant unsound. A farmer that produces subsidized crops is not for the share of farms of more than 2,000 acres.83 The unsound. A farmer that produces subsidized crops is not for the share of farms of more than 2,000 acres.83 The likely to shift output in ways that will reduce income. results indicate that the state and local tax burden works likely to shift output in ways that will reduce income. results indicate that the state and local tax burden works Additionally, new farms entering the market are likely to as an effective obstacle to large-scale farming. The coef- Additionally, new farms entering the market are likely to as an effective obstacle to large-scale farming. The coef- be influenced by the financial incentives and stability that ficient showing that a higher share of federal subsidies to be influenced by the financial incentives and stability that ficient showing that a higher share of federal subsidies to crop subsidization offers, particularly when the primary agriculture promotes large-scale farming confirms results crop subsidization offers, particularly when the primary agriculture promotes large-scale farming confirms results objective is maximizing profit. reported in the previous section. objective is maximizing profit. reported in the previous section.

In some cases, farmers may be responsive to demand- State tax burden is statistically significant on both mea- In some cases, farmers may be responsive to demand- State tax burden is statistically significant on both mea- driven market forces that show profitability for produc- sures of crop diversity at 99 percent under a specification driven market forces that show profitability for produc- sures of crop diversity at 99 percent under a specification ing unsubsidized crops and for using healthy practices. that includes region and time effects. As expected, the ing unsubsidized crops and for using healthy practices. that includes region and time effects. As expected, the In other cases, federal incentives may overshadow such relationship between tax burden and crop diversity is a In other cases, federal incentives may overshadow such relationship between tax burden and crop diversity is a drivers. One policy suggestion to increase crop diversity positive one, so that higher state and local taxes result in drivers. One policy suggestion to increase crop diversity positive one, so that higher state and local taxes result in is to actualize payment decoupling through reduction in greater diversity. Controlling for region and year, a one is to actualize payment decoupling through reduction in greater diversity. Controlling for region and year, a one ad hoc subsidization. Another positive step would be to percentage point increase in state tax burden is associated ad hoc subsidization. Another positive step would be to percentage point increase in state tax burden is associated eliminate restrictions on fruit and vegetable production with a .10 increase in the number of products per farm, eliminate restrictions on fruit and vegetable production with a .10 increase in the number of products per farm, in order to decouple payments and to encourage policies and a reduction on the crop-diversity index of 0.02 (indi- in order to decouple payments and to encourage policies and a reduction on the crop-diversity index of 0.02 (indi- that have minimal impact on markets. A recent USDA cating increased diversity). A causal relationship between that have minimal impact on markets. A recent USDA cating increased diversity). A causal relationship between report projected that eliminating these restrictions would tax burden and crop diversity is likely to be seen through report projected that eliminating these restrictions would tax burden and crop diversity is likely to be seen through have positive effects on the production of fruit and veg- a modifying variable or set of variables. In this case, it is have positive effects on the production of fruit and veg- a modifying variable or set of variables. In this case, it is etables, both working to maintain current levels while likely that farm size, rather than type of ownership, is act- etables, both working to maintain current levels while likely that farm size, rather than type of ownership, is act- also encouraging new production.82 Legislation could be ing as a modifier. The variable representing farm acres also encouraging new production.82 Legislation could be ing as a modifier. The variable representing farm acres directed one step further to reallocate federal money from in very large farms (2,000-plus acres) shows a negative directed one step further to reallocate federal money from in very large farms (2,000-plus acres) shows a negative commodity crop subsidies to intentional funding of a relationship on products per farm, indicating that larger commodity crop subsidies to intentional funding of a relationship on products per farm, indicating that larger diverse array of foods and to restructure allocation criteria farms are less diverse. diverse array of foods and to restructure allocation criteria farms are less diverse. to more directly benefit small and midsize farms. to more directly benefit small and midsize farms. This analysis provides a relative indicator of the intra- This analysis provides a relative indicator of the intra- State and Local Tax Burden farm decisionmaking process based on inputs. Tax bur- State and Local Tax Burden farm decisionmaking process based on inputs. Tax bur- The policy variable indicating state tax burden is highly den seems to work effectively as a deterrent of extensive The policy variable indicating state tax burden is highly den seems to work effectively as a deterrent of extensive significant across measures of corporate ownership, size, agriculture and indicates a possible path through which significant across measures of corporate ownership, size, agriculture and indicates a possible path through which and crop diversity (see table 4). A surprising result is that diversity may be achieved. Alternative explanations sup- and crop diversity (see table 4). A surprising result is that diversity may be achieved. Alternative explanations sup- under the region and time effects specification, a higher porting the results could be further explored by analyzing under the region and time effects specification, a higher porting the results could be further explored by analyzing state and local tax burden is associated positively and the impact on different factors of production like machin- state and local tax burden is associated positively and the impact on different factors of production like machin- significantly with a higher share of acres owned by cor- ery and labor prevalence. significantly with a higher share of acres owned by cor- ery and labor prevalence. porations. One potential explanation for this result may porations. One potential explanation for this result may be that state and local tax collection could rely heavily The first policy observation that emerges is that tax breaks be that state and local tax collection could rely heavily The first policy observation that emerges is that tax breaks on individuals and families rather than corporations and and preferential treatments are neither the only nor the on individuals and families rather than corporations and and preferential treatments are neither the only nor the does not necessarily deter corporate involvement in agri- most efficient way to attract investment and resources to does not necessarily deter corporate involvement in agri- most efficient way to attract investment and resources to culture. Another cause may be that the effect of land pref- agriculture. As those differential interventions are often culture. Another cause may be that the effect of land pref- agriculture. As those differential interventions are often erences in taxation and their presence across several states accompanied by distortions based on size or sales, the erences in taxation and their presence across several states accompanied by distortions based on size or sales, the favor and encourage corporate ownership. Furthermore, final outcomes are not only regressive in that they favor favor and encourage corporate ownership. Furthermore, final outcomes are not only regressive in that they favor

96 Vol. XVIII, 2010–2011 The Wagner Review 96 Vol. XVIII, 2010–2011 The Wagner Review Table 5. Regression analysis of anticorporate farm laws on U.S. farm size, ownership, and diversity measures, 1978-2007  Table 5. Regression analysis of anticorporate farm laws on U.S. farm size, ownership, and diversity measures, 1978-2007 

Share of farm acres owned by Share of farms owned by Share of farm acres from farms Share of farm acres from farms  Share of farm acres owned by Share of farms owned by Share of farm acres from farms Share of farm acres from farms  Panel 1: Ownership and size corporations corporations with > 1,000 acres with > 2,000 acres  Panel 1: Ownership and size corporations corporations with > 1,000 acres with > 2,000 acres  Region Region Region Region Region Region Region Region  Not & time Not & time Not & time Not & time  Not & time Not & time Not & time Not & time adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects Policy: Anticorporate farm law -.019 -0.009 -0.005 -.009* 0.002 0.004 .031** -0.013* -0.007* 0.004 -0.008** -0.005** Policy: Anticorporate farm law -.019 -0.009 -0.005 -.009* 0.002 0.004 .031** -0.013* -0.007* 0.004 -0.008** -0.005** (standard error) (.010) (.010) (.008) (.004) (0.004) (0.003) (.007) (.005) (.003) (.003) (0.002) (0.001) (standard error) (.010) (.010) (.008) (.004) (0.004) (0.003) (.007) (.005) (.003) (.003) (0.002) (0.001) Covariates Covariates Precipitation, 3 year mean 0.001 0.001 0.000 0.000 -0.003** 0.000 -0.001** 0.000 Precipitation, 3 year mean 0.001 0.001 0.000 0.000 -0.003** 0.000 -0.001** 0.000 Mean temperature -0.002** 0.005** 0.000 0.002** 0.002** 0.000 0.001** 0.000 Mean temperature -0.002** 0.005** 0.000 0.002** 0.002** 0.000 0.001** 0.000 Unemployment rate -0.173 -0.403* -0.235** -0.112 0.087 0.041 0.051 -0.002 Unemployment rate -0.173 -0.403* -0.235** -0.112 0.087 0.041 0.051 -0.002 State GDP as share of national GDP -0.066 -0.701** 0.003 -0.145** -0.689** -0.178** -0.286** -0.060** State GDP as share of national GDP -0.066 -0.701** 0.003 -0.145** -0.689** -0.178** -0.286** -0.060** Federal farm subsidy share -0.325* 0.127 -0.353** 0.052 0.796** 0.368** 0.267** 0.140** Federal farm subsidy share -0.325* 0.127 -0.353** 0.052 0.796** 0.368** 0.267** 0.140** Farm acres in very large farms share 0.485** 0.443** 0.129** 0.181** – – – – Farm acres in very large farms share 0.485** 0.443** 0.129** 0.181** – – – – Farm acres in corporate farms share – – – – 0.042* 0.082** 0.042** 0.040** Farm acres in corporate farms share – – – – 0.042* 0.082** 0.042** 0.040** Farms using contract labor share 0.470** 0.274** 0.224** 0.117** 0.141** -0.074** 0.090** -0.031** Farms using contract labor share 0.470** 0.274** 0.224** 0.117** 0.141** -0.074** 0.090** -0.031** Farming as primary occupation share -0.048 0.087* 0.034* 0.023 0.023 0.049** -0.011 0.006 Farming as primary occupation share -0.048 0.087* 0.034* 0.023 0.023 0.049** -0.011 0.006 Region controls † † † † Region controls † † † † Year controls ‡ ‡ ‡ ‡ Year controls ‡ ‡ ‡ ‡

Panel 2: Diversity Index of crops by acre Average number products per farm Panel 2: Diversity Index of crops by acre Average number products per farm Region Region Region Region Not & time Not & time Not & time Not & time adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects adjusted Adjusted effects Policy: Anticorporate farm law 0.018 -0.025* -0.029** .627** 0.231* 0.168* Policy: Anticorporate farm law 0.018 -0.025* -0.029** .627** 0.231* 0.168* (standard error) (.013) (0.012) (0.011) (.111) (0.090) (0.070) (standard error) (.013) (0.012) (0.011) (.111) (0.090) (0.070) Covariates Covariates Precipitation, 3 year mean -0.002** 0.000 0.004 -0.007 Precipitation, 3 year mean -0.002** 0.000 0.004 -0.007 Mean temperature 0.004** 0.000 -0.038** -0.026 Mean temperature 0.004** 0.000 -0.038** -0.026 Unemployment rate 0.128 0.104 4.178** -0.766 Unemployment rate 0.128 0.104 4.178** -0.766 State GDP as share of national GDP -1.590** -1.616** 3.376* 5.837 State GDP as share of national GDP -1.590** -1.616** 3.376* 5.837 Federal farm subsidy share 1.414** 0.980** -3.084* -4.199 Federal farm subsidy share 1.414** 0.980** -3.084* -4.199 Farm acres in very large farms share 0.290** -0.131 -3.556** -2.096 Farm acres in very large farms share 0.290** -0.131 -3.556** -2.096 Farms using contract labor share -0.071 0.117 -1.079 -2.747 Farms using contract labor share -0.071 0.117 -1.079 -2.747 Farming as primary occupation share -0.239** 0.036 4.191** 2.504 Farming as primary occupation share -0.239** 0.036 4.191** 2.504 Region controls † † Region controls † † Year controls ‡ ‡ Year controls ‡ ‡ Results reported utilize robust standard errors Results reported utilize robust standard errors * p < 0.05 ** p < 0.01 * p < 0.05 ** p < 0.01 † Vector of dummy variables representing USDA regions 0-10, 0 as referent † Vector of dummy variables representing USDA regions 0-10, 0 as referent ‡ Year dummy variables for 1978-2007, 1978 as referent ‡ Year dummy variables for 1978-2007, 1978 as referent  

Table 5. Regression analysis of anticorporate farm laws on U.S. farm size, ownership, and diversity measures, 1978-2007 Table 5. Regression analysis of anticorporate farm laws on U.S. farm size, ownership, and diversity measures, 1978-2007 disproportionately large farms, but they also inhibit crop 12.6 percent respectively. The corporate share of farm acres disproportionately large farms, but they also inhibit crop 12.6 percent respectively. The corporate share of farm acres diversity and therefore prevent positive environmental increased slightly for both types of states in parallel ways. diversity and therefore prevent positive environmental increased slightly for both types of states in parallel ways. and health spillovers. State and local taxes are effective However, in anticorporate-farm-law states, the share grew and health spillovers. State and local taxes are effective However, in anticorporate-farm-law states, the share grew mechanisms for controlling extensive agriculture and, at a greater rate than states without such statutes (see figure mechanisms for controlling extensive agriculture and, at a greater rate than states without such statutes (see figure consequently, have the potential to prevent intensive uses 3). consequently, have the potential to prevent intensive uses 3). of land that can lead to degradation. A regime that taxes of land that can lead to degradation. A regime that taxes all inputs and activities evenly makes it harder to rely on all inputs and activities evenly makes it harder to rely on From 1978 to 2007, corporate ownership of farm From 1978 to 2007, corporate ownership of farm capital-intensive and/or land-intensive agriculture and capital-intensive and/or land-intensive agriculture and acres increased by 64 percent in anticorporate-farm- acres increased by 64 percent in anticorporate-farm- through barriers may promote sustainability. Finally, by through barriers may promote sustainability. Finally, by law states compared with an increase of only 25 per- law states compared with an increase of only 25 per- establishing benefit ceilings, state and local governments establishing benefit ceilings, state and local governments cent for states without these laws. A comparison of cent for states without these laws. A comparison of may ensure engagement in agriculture while simultane- may ensure engagement in agriculture while simultane- data points between 1982 and 1997, which allows data points between 1982 and 1997, which allows ously addressing small farming interests and limiting the ously addressing small farming interests and limiting the for all nine anticorporate farm states to be evaluated for all nine anticorporate farm states to be evaluated attractiveness of large-scale unsustainable agriculture. attractiveness of large-scale unsustainable agriculture. together against the remaining 41 states, shows a per- together against the remaining 41 states, shows a percent change increase in corporate owned acres of 28.4 cent change increase in corporate owned acres of 28.4 Anticorporate Farm Laws percent (ACL) to 25.7 percent (non-ACL). Even with Anticorporate Farm Laws percent (ACL) to 25.7 percent (non-ACL). Even with Despite the existence of anticorporate farm laws (ACLs), these figures it is notable that rates of change are not Despite the existence of anticorporate farm laws (ACLs), these figures it is notable that rates of change are not states with these laws show similar trends in corporate slowed by the presence of anticorporate farm laws, states with these laws show similar trends in corporate slowed by the presence of anticorporate farm laws, ownership of farm acres as those that do not have such though ultimately, corporate farms are less present in ownership of farm acres as those that do not have such though ultimately, corporate farms are less present in laws. The numbers show that states with anticorpo- states with anticorporate farm laws. laws. The numbers show that states with anticorpo- states with anticorporate farm laws. rate farm laws had a relatively smaller share of corporate rate farm laws had a relatively smaller share of corporate owned farm acres at the beginning of the period of analy- Examination of the anticorporate farm laws in regres- owned farm acres at the beginning of the period of analy- Examination of the anticorporate farm laws in regres- sis (1978) than those without such laws, 7.8 percent and sions on key ownership variables shows little significance. sis (1978) than those without such laws, 7.8 percent and sions on key ownership variables shows little significance.

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 97 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 97 Crop Diversity in the U.S. Crop Diversity in the U.S. Figure 3. Corporate Farm Ownership Prevalence in States With and Without Anticorporate Farm Laws Figure 3. Corporate Farm Ownership Prevalence in States With and Without Anticorporate Farm Laws

See table 5 for ACL regression results. The laws show subsidies, lending further credibility to this finding, See table 5 for ACL regression results. The laws show subsidies, lending further credibility to this finding, no significant association with corporate ownership since farm subsidies persistently show a negative rela- no significant association with corporate ownership since farm subsidies persistently show a negative rela- measured by farms or by acres when controlling for tionship with crop diversity. Furthermore, the regions measured by farms or by acres when controlling for tionship with crop diversity. Furthermore, the regions region and time effects.84 One possible explanation in which ACLs are found are two of the top regions to region and time effects.84 One possible explanation in which ACLs are found are two of the top regions to could be the presence of corporate exemptions in the receive subsidies. could be the presence of corporate exemptions in the receive subsidies. statutes discussed above. Though anticorporate farm- statutes discussed above. Though anticorporate farming laws do not appear to be very effective in relation The results for the diversity index of crops by acre are ing laws do not appear to be very effective in relation The results for the diversity index of crops by acre are to ownership variables, they have a significant effect highly significant and support the research model. In to ownership variables, they have a significant effect highly significant and support the research model. In on farm size, as the causal model predicts. Anticor- states with anticorporate farming laws, the diversity on farm size, as the causal model predicts. Anticor- states with anticorporate farming laws, the diversity porate farming laws decreased share of farms larger index decreases by 0.029, trending toward more crop porate farming laws decreased share of farms larger index decreases by 0.029, trending toward more crop than 1,000 acres by 0.007, and share of farms with diversity. The coefficient on share of farm subsidies is than 1,000 acres by 0.007, and share of farms with diversity. The coefficient on share of farm subsidies is more than 2,000 acres by 0.005. This is an important similarly highly significant, further strengthening infer- more than 2,000 acres by 0.005. This is an important similarly highly significant, further strengthening infer- effect, given that large farms tend to practice the least ences from the products per farm analysis. effect, given that large farms tend to practice the least ences from the products per farm analysis. sustainable agriculture. sustainable agriculture. While ACLs have been ineffective in slowing corporatiza- While ACLs have been ineffective in slowing corporatiza- Though anticorporate farm laws do not appear impor- tion of agriculture, they have significantly affected farm Though anticorporate farm laws do not appear impor- tion of agriculture, they have significantly affected farm tant in relation to corporate ownership, they do show size and crop diversity, as predicted by the model. The tant in relation to corporate ownership, they do show size and crop diversity, as predicted by the model. The significant results in relation to crop diversity, as indi- authors hypothesize that the very form of the exemptions significant results in relation to crop diversity, as indi- authors hypothesize that the very form of the exemptions cated in regressions on the index of crops by acre and the on corporate ownership in these states—conditions of cated in regressions on the index of crops by acre and the on corporate ownership in these states—conditions of average number of products per farm. A simple com- blood relationship, limitations on number of sharehold- average number of products per farm. A simple com- blood relationship, limitations on number of sharehold- parison of products per farm for ACL versus non-ACL ers, legal restrictions on type of corporation, and more— parison of products per farm for ACL versus non-ACL ers, legal restrictions on type of corporation, and more— observations shows that those with corporate restric- may account for these complex findings. Corporatization observations shows that those with corporate restric- may account for these complex findings. Corporatization tions average 3.4 products while those without average occurs, but in an almost nominal way when such conditions average 3.4 products while those without average occurs, but in an almost nominal way when such condi- 2.8 products.85 When controlling for regional and time tions are taken into account. In certain ways, ACLs restrict 2.8 products.85 When controlling for regional and time tions are taken into account. In certain ways, ACLs restrict effects, the presence of an anticorporate farm law is farms from becoming excessively large, through restrictions effects, the presence of an anticorporate farm law is farms from becoming excessively large, through restrictions associated with an increase of 0.168 products per farm. on blood and the number of owners of the farm. Although associated with an increase of 0.168 products per farm. on blood and the number of owners of the farm. Although The coefficient on the laws is significant at 95 percent ACLs do not deter corporate presence, they seem to work The coefficient on the laws is significant at 95 percent ACLs do not deter corporate presence, they seem to work and appears practically significant as well, given that the as a mechanism that controls extensive large-scale agricul- and appears practically significant as well, given that the as a mechanism that controls extensive large-scale agricul- mean number of products per farm for this data set is ture and attenuates certain kinds of corporate practices and, mean number of products per farm for this data set is ture and attenuates certain kinds of corporate practices and, 2.9. This analysis includes a control for share of federal by extension, promotes crop diversity and sustainability. 2.9. This analysis includes a control for share of federal by extension, promotes crop diversity and sustainability.

98 Vol. XVIII, 2010–2011 The Wagner Review 98 Vol. XVIII, 2010–2011 The Wagner Review Final Causal Model effect of specific policies in the changes in ownership Final Causal Model effect of specific policies in the changes in ownership structures and crop diversity. structures and crop diversity. Anti-Corporate Anti-Corporate Federal Subsidies State Tax Burden Farming Laws Federal Subsidies State Tax Burden Farming Laws Although every effort was made to ensure com- Although every effort was made to ensure com- parability across all the years, different reporting parability across all the years, different reporting issues, including but not limited to data aggre- issues, including but not limited to data aggre- Corporate Presence Large Scale Corporate Presence Large Scale In Agriculture Farms gation, may still impose limits on running com- In Agriculture Farms gation, may still impose limits on running comprehensive models that fully capture the three prehensive models that fully capture the three decades analyzed in this study. For example, the decades analyzed in this study. For example, the Crop exact contribution of the very small farms—less Crop exact contribution of the very small farms—less Diversity than 10 acres in size—may be underreported Diversity than 10 acres in size—may be underreported Figure 4. Actual Causal Model as Determined by Analyses before 2002, thus influencing both the owner- Figure 4. Actual Causal Model as Determined by Analyses before 2002, thus influencing both the ownership structures and the diversity indices. Data ship structures and the diversity indices. Data In order to reduce corporate presence in agriculture, aggregation on the sales data for the later years In order to reduce corporate presence in agriculture, aggregation on the sales data for the later years exemptions should be revised and loopholes closed in considerably limits the ability to build detailed exemptions should be revised and loopholes closed in considerably limits the ability to build detailed the ACLs. The breadth of exclusions listed in the stat- distributional indices. the ACLs. The breadth of exclusions listed in the stat- distributional indices. utes render ACLs all but ineffective in restricting cor- utes render ACLs all but ineffective in restricting corporate farming, as can be seen by the more rapid rate Future Research porate farming, as can be seen by the more rapid rate Future Research of corporate growth in these states. Further, limits to of corporate growth in these states. Further, limits to farm size can be legislated in order to accomplish many The present analysis considers the ways in which farm size can be legislated in order to accomplish many The present analysis considers the ways in which of the objectives of these laws. certain state and federal policies affect the sup- of the objectives of these laws. certain state and federal policies affect the supply of agricultural products. There are reasons ply of agricultural products. There are reasons The hypothesized causal model may now be altered to to believe that demand-driven interventions The hypothesized causal model may now be altered to to believe that demand-driven interventions reflect results of the preceding analyses. Figure 4 is an and policies are very likely to affect diversity reflect results of the preceding analyses. Figure 4 is an and policies are very likely to affect diversity actual causal model based on these results, depicting at the farm level. Conscious consumers, inter- actual causal model based on these results, depicting at the farm level. Conscious consumers, inter- a revised diagram of significant relationships between est in organic agriculture, and the slow-food a revised diagram of significant relationships between est in organic agriculture, and the slow-food policy, farm characteristics, and outcomes. One key movement are no longer isolated efforts and are policy, farm characteristics, and outcomes. One key movement are no longer isolated efforts and are difference between the hypothesized and actual causal beginning to influence specific policies. Initia- difference between the hypothesized and actual causal beginning to influence specific policies. Initia- models is that federal subsidies are not significantly tives like Know Your Farmer, farm-to-school models is that federal subsidies are not significantly tives like Know Your Farmer, farm-to-school associated with corporate presence. Another change programs, and the emergence and consolidation associated with corporate presence. Another change programs, and the emergence and consolidation shown is that a relationship exists between ACLs and of alternative food networks and farmers’ mar- shown is that a relationship exists between ACLs and of alternative food networks and farmers’ mar- crop diversity that circumvents farm size and struc- kets may influence farming practices and policy. crop diversity that circumvents farm size and struc- kets may influence farming practices and policy. ture. The USDA is beginning to collect data on these ture. The USDA is beginning to collect data on these initiatives, and a relevant analysis of the impact initiatives, and a relevant analysis of the impact Limitations of the Analysis of demand-driven forces on crop diversity could Limitations of the Analysis of demand-driven forces on crop diversity could provide valuable insights. provide valuable insights. There are a number of primary limitations on the There are a number of primary limitations on the current analysis. First, the nature of the federal subsi- Relatively recent adjustments to the Farm Bill current analysis. First, the nature of the federal subsi- Relatively recent adjustments to the Farm Bill dies makes it difficult to establish a causal statement, structure and guidelines for subsidy allocation are dies makes it difficult to establish a causal statement, structure and guidelines for subsidy allocation are and consequently a threat of possible reverse causal- not fully captured here and merit deeper analysis. and consequently a threat of possible reverse causal- not fully captured here and merit deeper analysis. ity remains untested. Possible solutions may include Additionally, the differences in crop diversity and ity remains untested. Possible solutions may include Additionally, the differences in crop diversity and adjusting with a lagged value of the subsidies indi- average farm size observed across counties within adjusting with a lagged value of the subsidies indi- average farm size observed across counties within cator or including an instrumental variable.86 Also, a state suggest that some detailed studies within a cator or including an instrumental variable.86 Also, a state suggest that some detailed studies within a comparisons between states that establish anticorpo- state that focus on local policies might provide a comparisons between states that establish anticorpo- state that focus on local policies might provide a rate farming laws and those that do not may not pro- useful perspective that is not fully captured in the rate farming laws and those that do not may not pro- useful perspective that is not fully captured in the vide a proper balance since the number of state-year current analysis given the lack of available infor- vide a proper balance since the number of state-year current analysis given the lack of available infor- combinations differs substantially and means at base- mation on local policies. combinations differs substantially and means at base- mation on local policies. line are different. The analysis presented in this report line are different. The analysis presented in this report refers to variables measured in either percentages or A final line of research focusing on the usefulness refers to variables measured in either percentages or A final line of research focusing on the usefulness indices, though a different analysis could examine the of crop-diversity indices could analyze their rel- indices, though a different analysis could examine the of crop-diversity indices could analyze their rel-

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 99 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 99 Crop Diversity in the U.S. Crop Diversity in the U.S. evance for understanding the environmental con- different levels of government. While state and local ini- evance for understanding the environmental con- different levels of government. While state and local ini- sequences of specific agricultural arrangements, tiatives may work as a vehicle for promoting crop diversity sequences of specific agricultural arrangements, tiatives may work as a vehicle for promoting crop diversity either on farm size or ownership structure. The and sustainability, federal policies can offset state efforts. either on farm size or ownership structure. The and sustainability, federal policies can offset state efforts. indices could be applied to analyses of soil degra- Pre-emption, the notion that preference is given to regu- indices could be applied to analyses of soil degra- Pre-emption, the notion that preference is given to regu- dation, water pollution, or other environmental lation at higher levels of government, may play a role in dation, water pollution, or other environmental lation at higher levels of government, may play a role in externalities. A similar approach could be helpful the supremacy of federal regulation over state and local externalities. A similar approach could be helpful the supremacy of federal regulation over state and local for linking food availability and food distribution laws. The results presented here raise fundamental ques- for linking food availability and food distribution laws. The results presented here raise fundamental ques- at the state and local level, based on the supply tions about the role and nature of federal interventions at the state and local level, based on the supply tions about the role and nature of federal interventions characteristics that the diversity analysis in the in agriculture. Should the federal government have a pri- characteristics that the diversity analysis in the in agriculture. Should the federal government have a pri- present paper attempts to provide. mary role in the farming structure and output of the most present paper attempts to provide. mary role in the farming structure and output of the most important agricultural states, and if so, does it establish important agricultural states, and if so, does it establish Discussion the proper mechanisms through which the affected states Discussion the proper mechanisms through which the affected states raise their concerns and intentions? raise their concerns and intentions? Crop diversity in the U.S. has shown significant decreases Crop diversity in the U.S. has shown significant decreases in the past 30 years. This loss may be viewed as one con- Ideally, agricultural policies should be coordinated across in the past 30 years. This loss may be viewed as one con- Ideally, agricultural policies should be coordinated across sequence of increased industrialization in agriculture different governmental tiers, which would allow for sequence of increased industrialization in agriculture different governmental tiers, which would allow for and increased uptake of monocropping practices that interactions with related policy concerns, such as nutri- and increased uptake of monocropping practices that interactions with related policy concerns, such as nutri- are enabled and favored by industrial farming methods. tion-based health outcomes and environment. Since are enabled and favored by industrial farming methods. tion-based health outcomes and environment. Since As a proxy for sustainability, diverse cropping patterns local control over policy tends to promote environ- As a proxy for sustainability, diverse cropping patterns local control over policy tends to promote environ- indicate agricultural practices are trending toward more mental protections, unduly influential federal policies indicate agricultural practices are trending toward more mental protections, unduly influential federal policies harm. The results from this analysis show the impact favoring business may inhibit ecological initiatives, thus harm. The results from this analysis show the impact favoring business may inhibit ecological initiatives, thus of three policies on crop diversity, both directly and as exacerbating the negative spillovers embedded in large- of three policies on crop diversity, both directly and as exacerbating the negative spillovers embedded in large- attenuated through farm size and ownership structure. scale monoculture practices. This analysis shows that attenuated through farm size and ownership structure. scale monoculture practices. This analysis shows that These findings indicate that federal farm subsidies have federal subsidies are strongly associated with decreased These findings indicate that federal farm subsidies have federal subsidies are strongly associated with decreased a detrimental effect on diversity, while higher state tax crop diversity, but that state regulations can influence a detrimental effect on diversity, while higher state tax crop diversity, but that state regulations can influence burdens and state anticorporate farm laws both encour- these results. If the federal government is unwilling to burdens and state anticorporate farm laws both encour- these results. If the federal government is unwilling to age sustainable practices. pursue strong environmental policies associated with age sustainable practices. pursue strong environmental policies associated with agriculture, farm policy devolution may be one key solu- agriculture, farm policy devolution may be one key solu- Policies do not occur in isolation. Examination of all three tion in bringing agricultural practice into alignment Policies do not occur in isolation. Examination of all three tion in bringing agricultural practice into alignment policies together shows only slight shifts in the magnitude with environmental sustainability. policies together shows only slight shifts in the magnitude with environmental sustainability. of effects but underscores a tension between policies at of effects but underscores a tension between policies at

Notes tive Agriculture: The Paradigmatic Roots of the Debate,” Rural Notes tive Agriculture: The Paradigmatic Roots of the Debate,” Rural Sociology 55, No. 4 (1990): 7. Sociology 55, No. 4 (1990): 7.

1 Carolyn Dimitri, Anne Effland, and Neilson Conklin, “The 20th 8 Thomas A. Lyson and Rick Welsh, “The Production Function, Crop 1 Carolyn Dimitri, Anne Effland, and Neilson Conklin, “The 20th 8 Thomas A. Lyson and Rick Welsh, “The Production Function, Crop Century Transformation of U.S. Agriculture and Farm Policy,” Diversity, and the Debate Between Conventional and Sustainable Century Transformation of U.S. Agriculture and Farm Policy,” Diversity, and the Debate Between Conventional and Sustainable Economic Information Bulletin 3 (2005): 1-17. Agriculture,” Rural Sociology 58, No. 3 (1993): 424-439. Economic Information Bulletin 3 (2005): 1-17. Agriculture,” Rural Sociology 58, No. 3 (1993): 424-439. 2 U.S. Department of Agriculture, Agricultural Outlook 12 (1989): 20. 9 Ibid. 2 U.S. Department of Agriculture, Agricultural Outlook 12 (1989): 20. 9 Ibid. 3 7 USC. § 3103(18) 10 Ibid. 3 7 USC. § 3103(18) 10 Ibid. 4 National Agricultural Law Center, “Sustainable Agriculture: An 11 Pamela A. Matson, William J. Parton, Alison G. Power, and 4 National Agricultural Law Center, “Sustainable Agriculture: An 11 Pamela A. Matson, William J. Parton, Alison G. Power, and Overview,” accessed March 30, 2010, http://www.nationalaglawcen- Michael J. Swift, “Agricultural Intensification and Ecosystem Overview,” accessed March 30, 2010, http://www.nationalaglawcen- Michael J. Swift, “Agricultural Intensification and Ecosystem ter.org/assets/overviews/sustainableag.html. Properties,” Science 277 (1997): 504-505. ter.org/assets/overviews/sustainableag.html. Properties,” Science 277 (1997): 504-505. 5 Use of the expression crop diversity in this paper refers to unprocessed 12 Salvatore Di Falco S and Charles Perrings. “Crop Genetic 5 Use of the expression crop diversity in this paper refers to unprocessed 12 Salvatore Di Falco S and Charles Perrings. “Crop Genetic outputs beyond just plants, incorporating all types of living species Diversity, Productivity, and Stability of Agroecosystems. A outputs beyond just plants, incorporating all types of living species Diversity, Productivity, and Stability of Agroecosystems. A with an on-farm production vocation: plants, trees, and animals. Theoretical and Empirical Investigation,” Scottish Journal of with an on-farm production vocation: plants, trees, and animals. Theoretical and Empirical Investigation,” Scottish Journal of 6 John B. Cobb, “Theology, Perception, and Agriculture,” in Agri- Political Economy 50, No. 2 (2003): 214. 6 John B. Cobb, “Theology, Perception, and Agriculture,” in Agri- Political Economy 50, No. 2 (2003): 214. cultural Sustainability in a Changing World Order, ed. Gordon K. 13 Lyson and Welsh, “The Production Function, Crop Diversity, cultural Sustainability in a Changing World Order, ed. Gordon K. 13 Lyson and Welsh, “The Production Function, Crop Diversity, Douglass (Boulder, Westview, 1984): 210. and the Debate Between Conventional and Sustainable Agri- Douglass (Boulder, Westview, 1984): 210. and the Debate Between Conventional and Sustainable Agri- 7 Curtis E. Beus and Riley E. Dunlap, “Conventional Versus Alterna- culture,” 426. 7 Curtis E. Beus and Riley E. Dunlap, “Conventional Versus Alterna- culture,” 426.

100 Vol. XVIII, 2010–2011 The Wagner Review 100 Vol. XVIII, 2010–2011 The Wagner Review 14 Melinda Smale, Mauricio Bellon, Devra Jarvis, and Bhuwon 29 Daniel A. Sumner, “Farm Subsidy Tradition and Modern 14 Melinda Smale, Mauricio Bellon, Devra Jarvis, and Bhuwon 29 Daniel A. Sumner, “Farm Subsidy Tradition and Modern Sthapit, “Economic Concepts for Designing Policies to Con- Agricultural Realities,” UC Agricultural Issues Center Farm Sthapit, “Economic Concepts for Designing Policies to Con- Agricultural Realities,” UC Agricultural Issues Center Farm serve Crop Genetic Resources on Farms,” Genetic Resources and Bill Brief 1 (2007): 1-33. serve Crop Genetic Resources on Farms,” Genetic Resources and Bill Brief 1 (2007): 1-33. Crop Evolution 51 (2004): 122. 30 David Abler and David Blandford, “A Review of Empiri- Crop Evolution 51 (2004): 122. 30 David Abler and David Blandford, “A Review of Empiri- 15 Lyson and Welsh, “The Production Function, Crop Diversity, cal Studies of the Acreage and Production Response to U.S. 15 Lyson and Welsh, “The Production Function, Crop Diversity, cal Studies of the Acreage and Production Response to U.S. and the Debate Between Conventional and Sustainable Agri- Production Flexibility Contract Payments under the FAIR and the Debate Between Conventional and Sustainable Agri- Production Flexibility Contract Payments under the FAIR culture,” 426. Act and Related Payments under Supplementary Legislation,” culture,” 426. Act and Related Payments under Supplementary Legislation,” 16 Rulon D. Pope and Richard Prescott, “Diversification in (Organisation for Economic Cooperation and Development, 16 Rulon D. Pope and Richard Prescott, “Diversification in (Organisation for Economic Cooperation and Development, Relation to Farm Size and Other Economic Characteristics,” Directorate for Food, Agriculture and Fisheries, Committee Relation to Farm Size and Other Economic Characteristics,” Directorate for Food, Agriculture and Fisheries, Committee American Journal of Agricultural Economics 62, No. 3 (1980): for Agriculture, 2005): 1-30. American Journal of Agricultural Economics 62, No. 3 (1980): for Agriculture, 2005): 1-30. 555. 31 Luther Tweeten and Carl Zulauf, “Public Policy for Agriculture 555. 31 Luther Tweeten and Carl Zulauf, “Public Policy for Agriculture 17 Michael R.Dicks and Katahrine C. Buckley eds., Alterna- After Commodity Programs,” Review of Agricultural Economics 17 Michael R.Dicks and Katahrine C. 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Debertin, “Why Farmers Quit: 35 U.S. Department of Agriculture Economic Research Service A County-Level Analysis,” American Journal of Agricultural Constant dollars at base year 2000, U.S. Bureau of Labor Sta- A County-Level Analysis,” American Journal of Agricultural Constant dollars at base year 2000, U.S. Bureau of Labor Sta- Economics 83, No. 4 (2001): 1010-23. tistics, Consumer Price Index, accessed March 2010, at www. Economics 83, No. 4 (2001): 1010-23. tistics, Consumer Price Index, accessed March 2010, at www. 21 Pope and Prescott, “Diversification in Relation to Farm Size bls.gov/cpi/. Farm subsidy data from Government Payments: 21 Pope and Prescott, “Diversification in Relation to Farm Size bls.gov/cpi/. Farm subsidy data from Government Payments: and Other Economic Characteristics,” 555. Totals by State, 1949-2008, accessed March 2010 at http:// and Other Economic Characteristics,” 555. Totals by State, 1949-2008, accessed March 2010 at http:// 22 Frederick H. 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Agricultural Industrialization, Policy, and Abdessalam, ET AL. 101 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 101 Crop Diversity in the U.S. Crop Diversity in the U.S. nomics 18, No. 2 (1986): 215-225. 58 Welsh, Carpentier and Hubbell, “On the Effectiveness of State nomics 18, No. 2 (1986): 215-225. 58 Welsh, Carpentier and Hubbell, “On the Effectiveness of State 43 Ron Durst and James Monke, “Effects of Federal Tax Policy on Anti-corporate Farming Laws in the United States,” 543-548. 43 Ron Durst and James Monke, “Effects of Federal Tax Policy on Anti-corporate Farming Laws in the United States,” 543-548. Agriculture,” Agricultural Economic Report 800 (2001): iii. 59 Kan. Stat. Ann. 17-5904. Agriculture,” Agricultural Economic Report 800 (2001): iii. 59 Kan. Stat. Ann. 17-5904. 44 Ibid. 60 Mo. Rev. Stat. 350.015. 44 Ibid. 60 Mo. Rev. Stat. 350.015. 45 Robert Halvorsen. “The Effects of Tax Policy on Investment in 61 Community Environmental Legal Defense Fund, Anti- 45 Robert Halvorsen. “The Effects of Tax Policy on Investment in 61 Community Environmental Legal Defense Fund, Anti- Agriculture,” The Review of Economics and Statistics73, No. 3 Corporate Farming in the Heartland, accessed March 28, 2010, Agriculture,” The Review of Economics and Statistics 73, No. 3 Corporate Farming in the Heartland, accessed March 28, 2010, (1991): 393-400. http://celdf.org/article.php?id=758. (1991): 393-400. http://celdf.org/article.php?id=758. 46 Eginton, “Impacts of Federal Tax Policies on Potential Growth 62 Gerald Prante, “State-Local Tax Burdens Dip As Income 46 Eginton, “Impacts of Federal Tax Policies on Potential Growth 62 Gerald Prante, “State-Local Tax Burdens Dip As Income in size of Typical Farms,” 935. Growth Outpaces Tax Growth,” The Tax Foundation Special in size of Typical Farms,” 935. Growth Outpaces Tax Growth,” The Tax Foundation Special 47 Lawrence W. Libby, “Land Use Policy: Implications for Com- Report 163 (2008). 47 Lawrence W. Libby, “Land Use Policy: Implications for Com- Report 163 (2008). mercial Agriculture,” American Journal of Agricultural Econom- 63 We want to thank Shelly Busse at the NASS for assistance in mercial Agriculture,” American Journal of Agricultural Econom- 63 We want to thank Shelly Busse at the NASS for assistance in ics 56, No. 5 (1974): 1143-1152. attaining data files for the Census of Agriculture 1978, 1982, ics 56, No. 5 (1974): 1143-1152. attaining data files for the Census of Agriculture 1978, 1982, 48 Gene Wunderlich, “Land Taxes in Agriculture: Preferential and 1987, and Marlene Diehl for access to data for 1992 and 48 Gene Wunderlich, “Land Taxes in Agriculture: Preferential and 1987, and Marlene Diehl for access to data for 1992 and Rate and Assessment Effects,” American Journal of Economics 1997. Rate and Assessment Effects,” American Journal of Economics 1997. and Sociology 56, No. 2 (1997): 216. 64 Given that Alaska is not considered an important agricultural and Sociology 56, No. 2 (1997): 216. 64 Given that Alaska is not considered an important agricultural 49 Eric Thompson, Ernie Goss, Chris Decker, Cheryl A. Bur- state, we do not expect this deletion to bias the results signifi- 49 Eric Thompson, Ernie Goss, Chris Decker, Cheryl A. Bur- state, we do not expect this deletion to bias the results signifi- khart-Kriesel, Bruce Johnson, Ben Schmitz, Julian Neira, Pavel cantly. khart-Kriesel, Bruce Johnson, Ben Schmitz, Julian Neira, Pavel cantly. Jeutang, “Pillars of Growth in Nebraska’s Non-Metropolitan 65 Considering that the average farm size during all the period of Jeutang, “Pillars of Growth in Nebraska’s Non-Metropolitan 65 Considering that the average farm size during all the period of Economy,” The University of Nebraska Rural Initiative (2006): analysis fluctuates between 400 and 500 acres, it is possible to Economy,” The University of Nebraska Rural Initiative (2006): analysis fluctuates between 400 and 500 acres, it is possible to 43. state that farms over 1,000 acres may be considered large scale. 43. state that farms over 1,000 acres may be considered large scale. 50 Thomas A. Lyson and Rick Welsh, “Agricultural Industrializa- 66 Erika C.H. Meng, Melinda Smale, Mauricio Bellon, and 50 Thomas A. Lyson and Rick Welsh, “Agricultural Industrializa- 66 Erika C.H. Meng, Melinda Smale, Mauricio Bellon, and tion, Anticorporate Farming Laws, and Rural Community Daniel Grimanelli, “Definition and Measurement of Crop tion, Anticorporate Farming Laws, and Rural Community Daniel Grimanelli, “Definition and Measurement of Crop Welfare,” Environment and Planning 37 (2005): 1479-1491. Diversity for Economic Analysis,” in Farmers, Gene Banks and Welfare,” Environment and Planning 37 (2005): 1479-1491. Diversity for Economic Analysis,” in Farmers, Gene Banks and 51 Today there are eight states with anticorporate legislation. Crop Breeding: Economic Analyses of Diversity in Wheat, Maize, 51 Today there are eight states with anticorporate legislation. Crop Breeding: Economic Analyses of Diversity in Wheat, Maize, South Dakota’s constitutional amendment was found to be and Rice, ed. Melinda Smale (Kluwer Academic Publishers, South Dakota’s constitutional amendment was found to be and Rice, ed. Melinda Smale (Kluwer Academic Publishers, unconstitutional in 2003. 1998): 28 unconstitutional in 2003. 1998): 28 52 For example, Iowa’s law states, “The purpose of this chapter 67 Pope and Prescott, “Diversification in Relation to Farm Size 52 For example, Iowa’s law states, “The purpose of this chapter 67 Pope and Prescott, “Diversification in Relation to Farm Size is to preserve free and private enterprise, prevent monopoly, and Other Economic Characteristics,” 556. is to preserve free and private enterprise, prevent monopoly, and Other Economic Characteristics,” 556. and also to protect consumers by regulating the balance of 68 M. Micklin, “Whatever Happened to Human Ecology? A and also to protect consumers by regulating the balance of 68 M. Micklin, “Whatever Happened to Human Ecology? A competitive forces in beef and swine production, by enhancing Theoretical Autopsy,” Presented at the annual meeting of the competitive forces in beef and swine production, by enhancing Theoretical Autopsy,” Presented at the annual meeting of the the welfare of the farming community, and also by preventing Southwestern Social Science Association, Houston, 1983, cited the welfare of the farming community, and also by preventing Southwestern Social Science Association, Houston, 1983, cited processors from gaining control of beef or swine production.” by Don E. Albrecht and Steve H. Murdock, “Understanding processors from gaining control of beef or swine production.” by Don E. Albrecht and Steve H. Murdock, “Understanding IA 202B.101. Minnesota’s law begins, “The legislature finds Farm Structure and Demographic Change: An Ecological IA 202B.101. Minnesota’s law begins, “The legislature finds Farm Structure and Demographic Change: An Ecological that it is in the interests of the state to encourage and protect Analysis of the Impacts of Irrigation.” Sociological Perspec- that it is in the interests of the state to encourage and protect Analysis of the Impacts of Irrigation.” Sociological Perspec- the family farm as a basic economic unit, to insure it as the tives, 29(4):492. the family farm as a basic economic unit, to insure it as the tives, 29(4):492. most socially desirable mode of agricultural production, and 69 Sales data provide a good indicator of weight for the farm most socially desirable mode of agricultural production, and 69 Sales data provide a good indicator of weight for the farm to enhance and promote the stability and well-being of rural diversity measures because they account for plants and live- to enhance and promote the stability and well-being of rural diversity measures because they account for plants and live- society in Minnesota and the nuclear family.” MN 500.24. stock. The number of farms is not a good indicator of weight society in Minnesota and the nuclear family.” MN 500.24. stock. The number of farms is not a good indicator of weight 53 Community Environmental Legal Defense Fund, Anti-Corpo- in this case since it does not differentiate between scale of 53 Community Environmental Legal Defense Fund, Anti-Corpo- in this case since it does not differentiate between scale of rate Farming in the Heartland, accessed March 28, 2010. http:// products sold. rate Farming in the Heartland, accessed March 28, 2010. http:// products sold. celdf.org/article.php?id=758. 70 Lexis-Nexis, Monthly Precipitation and Temperature Data celdf.org/article.php?id=758. 70 Lexis-Nexis, Monthly Precipitation and Temperature Data 54 Ibid. 1978-2007, accessed November 2009, www.lexisnexis.com. 54 Ibid. 1978-2007, accessed November 2009, www.lexisnexis.com. 55 Richard S. Kirkendall, “Up to Now: A History of American 71 U.S. Department of Labor, Statistics: Employment and Unem- 55 Richard S. Kirkendall, “Up to Now: A History of American 71 U.S. Department of Labor, Statistics: Employment and Unem- Agriculture from Jefferson to Revolution to Crisis,” Agriculture ployment, accessed October 2009, http://www.dol.gov/dol/ Agriculture from Jefferson to Revolution to Crisis,” Agriculture ployment, accessed October 2009, http://www.dol.gov/dol/ and Human Values 4, No. 1 (1987): 4-26. topic/statistics/employment.htm. and Human Values 4, No. 1 (1987): 4-26. topic/statistics/employment.htm. 56 Rick Welsh, Chantal L. Carpentier and Byran Hubbell, “On 72 U.S. Bureau of Economic Analysis, National Economic 56 Rick Welsh, Chantal L. Carpentier and Byran Hubbell, “On 72 U.S. Bureau of Economic Analysis, National Economic the Effectiveness of State Anti-corporate Farming Laws in the Accounts: Gross Domestic Product, accessed March 2010 the Effectiveness of State Anti-corporate Farming Laws in the Accounts: Gross Domestic Product, accessed March 2010 United States,” Food Policy 26 (2001): 543-548. http://www.bea.gov/national/index.htm#gdp. United States,” Food Policy 26 (2001): 543-548. http://www.bea.gov/national/index.htm#gdp. 57 Lyson and Welsh, “Agricultural Industrialization, Anticorpo- 73 Variance inflation factor tests were used to check for multicol- 57 Lyson and Welsh, “Agricultural Industrialization, Anticorpo- 73 Variance inflation factor tests were used to check for multicol- rate Farming Laws, and Rural Community Welfare.” 1479-91. linearity. None of the models presented this problem. rate Farming Laws, and Rural Community Welfare.” 1479-91. linearity. None of the models presented this problem.

102 Vol. XVIII, 2010–2011 The Wagner Review 102 Vol. XVIII, 2010–2011 The Wagner Review 74 Results from the Breusch-Pagan and White tests run on each 79 Womach, “Average Farm Subsidy Payments, by State, 2002.” 74 Results from the Breusch-Pagan and White tests run on each 79 Womach, “Average Farm Subsidy Payments, by State, 2002.” of the regressions indicated problems with heteroskedasticity 80 Key and Roberts, “Do Government Payments Influence Farm of the regressions indicated problems with heteroskedasticity 80 Key and Roberts, “Do Government Payments Influence Farm in most of the regressions. Although this resulted in a cost Business Survival?” in most of the regressions. Although this resulted in a cost Business Survival?” to efficiency, robust regressions were conducted in order to 81 In regressions where an interaction variable for pre/post 1996 to efficiency, robust regressions were conducted in order to 81 In regressions where an interaction variable for pre/post 1996 address this and maintain the integrity of our analysis. All (FAIR Act) was included, it made little impact and was not address this and maintain the integrity of our analysis. All (FAIR Act) was included, it made little impact and was not results are reported with the robust coefficients. significant across most models, indicating that crop diversity results are reported with the robust coefficients. significant across most models, indicating that crop diversity 75 A model using state fixed effects would also disentangle was unresponsive to payment changes in the FAIR Act. 75 A model using state fixed effects would also disentangle was unresponsive to payment changes in the FAIR Act. within region state differences, but the efficiency cost and the 82 Johnson, Krissoff, Young, Hoffman, Lucier and Breneman, within region state differences, but the efficiency cost and the 82 Johnson, Krissoff, Young, Hoffman, Lucier and Breneman, reduction in the degrees of freedom must also be taken into “Eliminating Fruit and Vegetable Planting Restrictions: How reduction in the degrees of freedom must also be taken into “Eliminating Fruit and Vegetable Planting Restrictions: How consideration. Given that USDA regional groupings are based Would Markets be Affected?” consideration. Given that USDA regional groupings are based Would Markets be Affected?” on agricultural, geographic, and ecologic factors, we believe 83 That coefficient is statistically significant at the 99 percent level on agricultural, geographic, and ecologic factors, we believe 83 That coefficient is statistically significant at the 99 percent level these offer reasonable boundaries for control while allowing for before controlling for regional and time effects. these offer reasonable boundaries for control while allowing for before controlling for regional and time effects. some additional variation. Alternative results using the state 84 An additional model including state and time fixed effects some additional variation. Alternative results using the state 84 An additional model including state and time fixed effects and time fixed effects specification are available upon request. shows a significant association between ACL and corporate and time fixed effects specification are available upon request. shows a significant association between ACL and corporate 76 State and local tax burden is available for all years from 1977 to acres ownership, however, the relationship is positive indicat- 76 State and local tax burden is available for all years from 1977 to acres ownership, however, the relationship is positive indicat- 2008. ing that ACL effects are oppositional to intention. 2008. ing that ACL effects are oppositional to intention. 77 State statutes were accessed through LexisNexis and directly 85 These descriptive measures are not noted in tables here and are 77 State statutes were accessed through LexisNexis and directly 85 These descriptive measures are not noted in tables here and are through individual state legislative websites. available upon request. through individual state legislative websites. available upon request. 78 When this regression is run using state fixed effects as well as 86 A preliminary analysis was conducted using a future vari- 78 When this regression is run using state fixed effects as well as 86 A preliminary analysis was conducted using a future vari- state and time fixed effects, share of federal subsidies does have able on federal subsidies, however, it was limited due to the state and time fixed effects, share of federal subsidies does have able on federal subsidies, however, it was limited due to the a positive and statistically significant relationship with share of volatility in federal subsidies from year to year. More extensive a positive and statistically significant relationship with share of volatility in federal subsidies from year to year. More extensive corporate acres and number of corporations, though the coef- research of this variable would be in order to better understand corporate acres and number of corporations, though the coef- research of this variable would be in order to better understand ficient is not large. the relationship. ficient is not large. the relationship.

Agricultural Industrialization, Policy, and Abdessalam, ET AL. 103 Agricultural Industrialization, Policy, and Abdessalam, ET AL. 103 Crop Diversity in the U.S. Crop Diversity in the U.S. 104 Vol. XVIII, 2010–2011 The Wagner Review 104 Vol. XVIII, 2010–2011 The Wagner Review LONG SHADOWS: LONG SHADOWS: MEANING-MAKING AMID MEANING-MAKING AMID DUELING NARRATIVES DUELING NARRATIVES OF THE FINANCIAL CRISIS OF THE FINANCIAL CRISIS

David Colby Reed David Colby Reed

Much ink Much ink ABSTRACT has been ABSTRACT has been spilled in discussion of the financial cri- spilled in discussion of the financial crisis of 2007-2009, but there have been few sis of 2007-2009, but there have been few compelling causal accounts of the crisis compelling causal accounts of the crisis advanced in the public sphere. Instead, advanced in the public sphere. Instead, there has been a profusion of financial cri- there has been a profusion of financial crisis narratives that have sought to explain sis narratives that have sought to explain the crisis as the exclusive fault of one party the crisis as the exclusive fault of one party or another. If blame assignment drives the or another. If blame assignment drives the causal narratives of the crisis, the resulting causal narratives of the crisis, the resulting policy prescriptions are more likely to treat policy prescriptions are more likely to treat the symptoms of the crisis rather than its the symptoms of the crisis rather than its causes. Thus, communication of the crisis’s causes. Thus, communication of the crisis’s origins is imperative. This review assesses origins is imperative. This review assesses three prominent blame-based causal narra- three prominent blame-based causal narratives of the crisis. Faulting those narratives tives of the crisis. Faulting those narratives for explanatory inadequacy, I advance an for explanatory inadequacy, I advance an alternate narrative of the financial crisis as alternate narrative of the financial crisis as a panic in the shadow banking system. a panic in the shadow banking system.

MEANING-MAKING AMID Reed 105 MEANING-MAKING AMID Reed 105 DUELING NARRATIVES OF THE FINANCIAL CRISIS DUELING NARRATIVES OF THE FINANCIAL CRISIS Introduction: Making place, the stakes of the epistemic crisis are high. This paper Introduction: Making place, the stakes of the epistemic crisis are high. This paper Meaning and Red Herrings is a treatment of the foremost causal narratives that have Meaning and Red Herrings is a treatment of the foremost causal narratives that have been used to explain the financial crisis and, by exten- been used to explain the financial crisis and, by exten- The financial crisis of 2007-2009 and the great recession sion, justify the particular courses of policy action pursued The financial crisis of 2007-2009 and the great recession sion, justify the particular courses of policy action pursued that ensued realigned economic policy around energetic by the narratives’ proponents. I conclude by advancing that ensued realigned economic policy around energetic by the narratives’ proponents. I conclude by advancing intervention. For dyed-in-the-wool progressives and stal- an alternative causal narrative for the financial crisis in intervention. For dyed-in-the-wool progressives and stal- an alternative causal narrative for the financial crisis in wart evangelists of laissez-faire alike, the collapse of com- order to highlight policy questions crowded out by blame wart evangelists of laissez-faire alike, the collapse of com- order to highlight policy questions crowded out by blame mercial credit and stock markets was an unmitigated social assignment. mercial credit and stock markets was an unmitigated social assignment. ill that required robust countermeasures. Throughout ill that required robust countermeasures. Throughout 2008, free-market Republicans Secretary of the Treasury Part I: Financial Crisis as 2008, free-market Republicans Secretary of the Treasury Part I: Financial Crisis as Hank Paulson, Federal Reserve Chairman Ben Bernanke, Epistemic Crisis Hank Paulson, Federal Reserve Chairman Ben Bernanke, Epistemic Crisis and President George W. Bush initiated an unprecedented and President George W. Bush initiated an unprecedented intervention of the federal government and central bank Waxman: You found a flaw? intervention of the federal government and central bank Waxman: You found a flaw? in the financial system of the United States. The Secretary Greenspan: I found a flaw in the model that I in the financial system of the United States. The Secretary Greenspan: I found a flaw in the model that I of the Treasury, described by contemporary accounts as a perceived is the critical functioning structure that of the Treasury, described by contemporary accounts as a perceived is the critical functioning structure that “reluctant socialist,”1 relied on the support of congressional defines how the world works, so to speak. “reluctant socialist,”1 relied on the support of congressional defines how the world works, so to speak. Democrats to secure passage of the Emergency Economic Waxman: In other words, you found that your Democrats to secure passage of the Emergency Economic Waxman: In other words, you found that your Stabilization Act of 2008, progenitor of the ill-famed view of the world, your ideology, was not right. It Stabilization Act of 2008, progenitor of the ill-famed view of the world, your ideology, was not right. It TARP. Through expanded lending facilities and quantita- was not working. TARP. Through expanded lending facilities and quantita- was not working. tive easing—the purchase of corporate debt, such as credit Greenspan: Precisely. That’s precisely the reason tive easing—the purchase of corporate debt, such as credit Greenspan: Precisely. That’s precisely the reason card receivables, auto loans, and commercial real estate— I was shocked, because I had been going for 40 card receivables, auto loans, and commercial real estate— I was shocked, because I had been going for 40 the Federal Reserve stanched the hemorrhage of massive years or more with very considerable evidence that the Federal Reserve stanched the hemorrhage of massive years or more with very considerable evidence that corporate losses. The president, in a prime-time address, it was working exceptionally well. corporate losses. The president, in a prime-time address, it was working exceptionally well. affirmed that he is “a strong believer in free enterprise,” yet — Henry Waxman and Alan Greenspan, during affirmed that he is “a strong believer in free enterprise,” yet — Henry Waxman and Alan Greenspan, during advanced his proposal to “put up to $700 billion of tax- Greenspan’s testimony to the House Committee on advanced his proposal to “put up to $700 billion of tax- Greenspan’s testimony to the House Committee on payer dollars on the line to purchase troubled assets that Oversight and Government Reform at a hearing on payer dollars on the line to purchase troubled assets that Oversight and Government Reform at a hearing on are clogging the financial system.” 2 the role of federal regulators in the financial crisis, are clogging the financial system.” 2 the role of federal regulators in the financial crisis, October 23, 2008 3 October 23, 2008 3 Today, the immediate ravages of the financial crisis have Today, the immediate ravages of the financial crisis have been contained. Modest economic recovery has taken Arjen Boin and colleagues write that a crisis can be been contained. Modest economic recovery has taken Arjen Boin and colleagues write that a crisis can be root in the United States, and the prospect of a wave of regarded as a “transitional phas[e] during which the nor- root in the United States, and the prospect of a wave of regarded as a “transitional phas[e] during which the nor- bankruptcies and even higher levels of unemployment has mal ways of operating no longer work.”4 This definition bankruptcies and even higher levels of unemployment has mal ways of operating no longer work.”4 This definition receded in the minds of policymakers. Curiously, amid is somewhat misleading, inasmuch as it implies that the receded in the minds of policymakers. Curiously, amid is somewhat misleading, inasmuch as it implies that the tentative recovery and contentious debate on financial-re- effects of the crisis are localized within the transitional tentative recovery and contentious debate on financial-re- effects of the crisis are localized within the transitional form legislation, there are few comprehensive accounts of phase exclusively. The reality is more fraught: even after form legislation, there are few comprehensive accounts of phase exclusively. The reality is more fraught: even after the financial crisis in the public sphere. Instead, the domi- the immediate, operational elements of a crisis have been the financial crisis in the public sphere. Instead, the domi- the immediate, operational elements of a crisis have been nant memes are alike only in their emphasis on assigning mitigated, the crisis’s enabling conditions remain largely nant memes are alike only in their emphasis on assigning mitigated, the crisis’s enabling conditions remain largely blame for the crisis. The present focus on blame attribu- intact. Sound crisis management, then, requires that blame for the crisis. The present focus on blame attribu- intact. Sound crisis management, then, requires that tion advances causal narratives of the crisis that militate in these precrisis conditions be addressed. tion advances causal narratives of the crisis that militate in these precrisis conditions be addressed. favor of unsatisfactory policy interventions. By advancing favor of unsatisfactory policy interventions. By advancing blame-based causal narratives, policymakers risk treating However, addressing precrisis conditions requires that blame-based causal narratives, policymakers risk treating However, addressing precrisis conditions requires that the symptoms of the crisis rather than addressing its root there be a broadly held agreement on how the crisis the symptoms of the crisis rather than addressing its root there be a broadly held agreement on how the crisis causes. unfolded. Such a consensus view is missing from the causes. unfolded. Such a consensus view is missing from the current debate, and in what Boin and colleagues might current debate, and in what Boin and colleagues might Bereft of a coherent, comprehensive origin story of the call an “incomprehensible,” “long shadow crisis,” there is Bereft of a coherent, comprehensive origin story of the call an “incomprehensible,” “long shadow crisis,” there is financial crisis, policymakers and the public are now grap- an increasingly heated public contest over the shape of a financial crisis, policymakers and the public are now grap- an increasingly heated public contest over the shape of a pling with a second, epistemic crisis: how to avert another causal narrative for the financial crisis. pling with a second, epistemic crisis: how to avert another causal narrative for the financial crisis. such crisis in a world in which fundamental theories of such crisis in a world in which fundamental theories of finance lack predictive validity. Because the underlying Proponents of the various causal narratives at play rec- finance lack predictive validity. Because the underlying Proponents of the various causal narratives at play rec- institutions that enabled the financial crisis remain in ognize that the stakes of problem definition are high. institutions that enabled the financial crisis remain in ognize that the stakes of problem definition are high.

106 Vol. XVIII, 2010–2011 The Wagner Review 106 Vol. XVIII, 2010–2011 The Wagner Review inevitably bring more rationality to economic activity. inevitably bring more rationality to economic activity. The belief has many intellectual contributors, but argu- The belief has many intellectual contributors, but argu- But causal narratives do ably the most prominent were Friedrich Hayek, Milton But causal narratives do ably the most prominent were Friedrich Hayek, Milton more than explain, ex Friedman, George Stigler, and Eugene Fama. Hayek more than explain, ex Friedman, George Stigler, and Eugene Fama. Hayek post, a crisis; importantly, offered the premise that the information required to post, a crisis; importantly, offered the premise that the information required to they shape options make an economy run “never exists in a concentrated or they shape options make an economy run “never exists in a concentrated or concerning future reforms. integrated form, but solely as the dispersed bits of incom- concerning future reforms. integrated form, but solely as the dispersed bits of incom- “ plete and frequently contradictory knowledge which all “ plete and frequently contradictory knowledge which all the separate individuals possess.”5 the separate individuals possess.”5

Prices were the mechanism by which Hayek’s disaggre- Prices were the mechanism by which Hayek’s disaggre- Narrative frames have long been used to make sense of gated actors communicated their special knowledge, Narrative frames have long been used to make sense of gated actors communicated their special knowledge, a problem and make multiple policy positions cohere as and financial and commodities markets were forums for a problem and make multiple policy positions cohere as and financial and commodities markets were forums for a bundled package. Policies are often complex, and an the collection and communication of prices. Given suf- a bundled package. Policies are often complex, and an the collection and communication of prices. Given suf- effective narrative will define the problem in such a way ficiently high numbers of traders and trading volumes, effective narrative will define the problem in such a way ficiently high numbers of traders and trading volumes, as to make the implementation of the favored policies an the market should always offer the best estimate of the as to make the implementation of the favored policies an the market should always offer the best estimate of the inescapably sound conclusion. Boin and colleagues define intrinsic values of the items being traded. Because market inescapably sound conclusion. Boin and colleagues define intrinsic values of the items being traded. Because market the formation of such causal narratives as “meaning- participants are profit-seeking, they will take advantage the formation of such causal narratives as “meaning- participants are profit-seeking, they will take advantage making” and argue the case for the special significance of of any new information and, through competition, erase making” and argue the case for the special significance of of any new information and, through competition, erase meaning-making in a postcrisis scenario. They assert that the profitable nature of that information. In so doing, meaning-making in a postcrisis scenario. They assert that the profitable nature of that information. In so doing, crisis communication is key to securing the “permissive they constantly drive the market price back to the best crisis communication is key to securing the “permissive they constantly drive the market price back to the best consensus” of the governed that leaders need in order to possible estimate of value. Fluctuation around a market consensus” of the governed that leaders need in order to possible estimate of value. Fluctuation around a market shape postcrisis learning and reform. price, then, is just random noise. According to Fama, “in shape postcrisis learning and reform. price, then, is just random noise. According to Fama, “in an efficient market, the actions of the many competing an efficient market, the actions of the many competing The contest over meaning-making and causal narratives participants should cause the actual price of the security The contest over meaning-making and causal narratives participants should cause the actual price of the security is ordinarily intense, but it is all the more important fol- to wander randomly about its intrinsic value.”6 If stock is ordinarily intense, but it is all the more important fol- to wander randomly about its intrinsic value.”6 If stock lowing the financial crisis of 2007-2009. This financial -market prices are random, they cannot be predicted on lowing the financial crisis of 2007-2009. This financial -market prices are random, they cannot be predicted on crisis resulted in the destruction of prodigious amounts the basis of past movements. As the volume and veloc- crisis resulted in the destruction of prodigious amounts the basis of past movements. As the volume and veloc- of wealth, but an unexpected victim was a neoliberal eco- ity of trades increased, so did the credence of a second of wealth, but an unexpected victim was a neoliberal eco- ity of trades increased, so did the credence of a second nomic view that had risen to international prominence notion of stock prices: that they are impossible to predict nomic view that had risen to international prominence notion of stock prices: that they are impossible to predict over the preceding half-century: the rational-market the- based on publicly available information. As these ideas over the preceding half-century: the rational-market the- based on publicly available information. As these ideas ory and its efficient-markets hypothesis. Rational-market gained in popularity, they came to drive government ory and its efficient-markets hypothesis. Rational-market gained in popularity, they came to drive government theory has been the intellectual underpinning of count- decisionmaking and private investment decisions. theory has been the intellectual underpinning of count- decisionmaking and private investment decisions. less business decisions and government policies, and has less business decisions and government policies, and has informed the backbone of entire generations’ academic The exchange between Henry Waxman and Alan Green- informed the backbone of entire generations’ academic The exchange between Henry Waxman and Alan Green- training. The crisis was a strong refutation of rational- span reprinted above captures the extent of the influence training. The crisis was a strong refutation of rational- span reprinted above captures the extent of the influence market theory, and it required deep revisions to the of rational-market theory in both its ascent and decline. market theory, and it required deep revisions to the of rational-market theory in both its ascent and decline. worldviews of policymakers and businesspeople. Con- The shadow of rational-market theory hangs over the worldviews of policymakers and businesspeople. Con- The shadow of rational-market theory hangs over the sequently, meaning-making for the financial crisis is not present contest over causal narratives of the financial sequently, meaning-making for the financial crisis is not present contest over causal narratives of the financial simply a tool of policy promotion; instead, it is essential crisis as well. Boin et al. describe the difficulty of post- simply a tool of policy promotion; instead, it is essential crisis as well. Boin et al. describe the difficulty of post- to an active search for certainty in economic theory and crisis reform as arising from tensions between “reform- to an active search for certainty in economic theory and crisis reform as arising from tensions between “reform- all its derivative applications. Thus, the financial crisis is ist” and “conservative” approaches to crisis management. all its derivative applications. Thus, the financial crisis is ist” and “conservative” approaches to crisis management. also a crisis of political epistemology. Reformists attempt deep changes to precrisis institutions, also a crisis of political epistemology. Reformists attempt deep changes to precrisis institutions, whereas proponents of the conservative approach advo- whereas proponents of the conservative approach advo- To understand the nature of the dual meaning of the cate gradual change to these institutions and defend their To understand the nature of the dual meaning of the cate gradual change to these institutions and defend their financial crisis and its influence on causal narratives, it is fundamental social value. The two approaches to post- financial crisis and its influence on causal narratives, it is fundamental social value. The two approaches to post- necessary to understand the vacuum created by the fall crisis reform find voice in causal narratives that seek to necessary to understand the vacuum created by the fall crisis reform find voice in causal narratives that seek to of rational-market theory. The theory has a long and either thoroughly reject rational-market theory or offer of rational-market theory. The theory has a long and either thoroughly reject rational-market theory or offer fascinating history, but pertinently, it posits that as more qualified restatements of the theory. The approaches are fascinating history, but pertinently, it posits that as more qualified restatements of the theory. The approaches are financial instruments are created and traded, they will distinguished by the parties on which they foist blame. financial instruments are created and traded, they will distinguished by the parties on which they foist blame.

MEANING-MAKING AMID Reed 107 MEANING-MAKING AMID Reed 107 DUELING NARRATIVES OF THE FINANCIAL CRISIS DUELING NARRATIVES OF THE FINANCIAL CRISIS Part II: The Blame Game market accounting rules, which work well in ordinary Part II: The Blame Game market accounting rules, which work well in ordinary times but depress prices and promote insolvency in times but depress prices and promote insolvency in There has been a profusion of blame-based explana- times of investor panic. There has been a profusion of blame-based explana- times of investor panic. tions for the financial crisis, and it is not the place of tions for the financial crisis, and it is not the place of this paper to review them all. Instead, I identify three The Regulators: this paper to review them all. Instead, I identify three The Regulators: prominent examples of blame-based narratives: The Maestro Is Tone-Deaf prominent examples of blame-based narratives: The Maestro Is Tone-Deaf Other parties fault the regulators who kept interest rates Other parties fault the regulators who kept interest rates 1. “Greedy Wall Street bankers duped consumers low and the officials who supported deregulation of the 1. “Greedy Wall Street bankers duped consumers low and the officials who supported deregulation of the for personal gain.” financial sector. They point to the Gramm-Leach-Bliley for personal gain.” financial sector. They point to the Gramm-Leach-Bliley 2. “Feckless regulators pushed for deregulation Act of 1999 (which repealed the Glass-Steagall Act of 1933, 2. “Feckless regulators pushed for deregulation Act of 1999 (which repealed the Glass-Steagall Act of 1933, and were too incompetent to do their jobs.” the law that forced the separation of commercial deposit- and were too incompetent to do their jobs.” the law that forced the separation of commercial deposit- 3. “Consumers bought more house than they taking and investment banking) and argue that low target 3. “Consumers bought more house than they taking and investment banking) and argue that low target could afford, either through ignorance or fraud.” federal funds rates set by the Federal Reserve Bank’s Open could afford, either through ignorance or fraud.” federal funds rates set by the Federal Reserve Bank’s Open Market Committee inflated house prices by making other Market Committee inflated house prices by making other I review briefly the components of each narrative in turn. assets less desirable investments. The Fed is also faulted for I review briefly the components of each narrative in turn. assets less desirable investments. The Fed is also faulted for failing to “stem the flow of toxic mortgages” through bet- failing to “stem the flow of toxic mortgages” through bet- Wall Street: Greed is Good; ter regulation of mortgage-lending standards.8 Wall Street: Greed is Good; ter regulation of mortgage-lending standards.8 Originate-to-Distribute Originate-to-Distribute To advance the financial-regulation legislation in the Again, this view identifies only part of the problem. It is To advance the financial-regulation legislation in the Again, this view identifies only part of the problem. It is Senate and overcome Republican filibusters, Democrats true that following the repeal of the Glass-Steagall Act, Senate and overcome Republican filibusters, Democrats true that following the repeal of the Glass-Steagall Act, described the legislation as “a Wall Street reform bill,” deposit-taking banks like Bank of America and Citigroup described the legislation as “a Wall Street reform bill,” deposit-taking banks like Bank of America and Citigroup and this sobriquet captures the crux of the “evil bank- leveraged publicly insured customer deposits in order to and this sobriquet captures the crux of the “evil bank- leveraged publicly insured customer deposits in order to ers” narrative. In this construction, greedy bankers cre- trade on their own accounts and thereby use a subsidy for ers” narrative. In this construction, greedy bankers cre- trade on their own accounts and thereby use a subsidy for ated predatory subprime mortgages that they quickly speculative investments. But large multiservice banks did ated predatory subprime mortgages that they quickly speculative investments. But large multiservice banks did sold to other, unsuspecting investors through securiti- not suffer the sorts of losses incurred by Lehman Brothers, sold to other, unsuspecting investors through securiti- not suffer the sorts of losses incurred by Lehman Brothers, zation. Because bankers originated loans that they did Bear Sterns, Merrill Lynch, Morgan Stanley, and Gold- zation. Because bankers originated loans that they did Bear Sterns, Merrill Lynch, Morgan Stanley, and Gold- not intend to keep on their balance sheets, they applied man Sachs.9 Investment banks and broker dealers were not intend to keep on their balance sheets, they applied man Sachs.9 Investment banks and broker dealers were loose lending criteria to prospective borrowers and failed not regulated under New Deal–era rules and thus did not loose lending criteria to prospective borrowers and failed not regulated under New Deal–era rules and thus did not to exercise due diligence. Moreover, bankers used lever- benefit from their repeal. to exercise due diligence. Moreover, bankers used lever- benefit from their repeal. age to take risky bets that would line their pockets if the age to take risky bets that would line their pockets if the bets paid off. Should the bets fail, losses would accrue to Similarly, low interest rates were partly a function of regula- bets paid off. Should the bets fail, losses would accrue to Similarly, low interest rates were partly a function of regula- disparate shareholders and, ultimately, taxpayers. tors’ decisions, but they were also a product of high global disparate shareholders and, ultimately, taxpayers. tors’ decisions, but they were also a product of high global demand for U.S. Treasurys following the Asian financial cri- demand for U.S. Treasurys following the Asian financial cri- This view is not without merit. Because of compensation sis of the 1990s. Sovereign investors sought foreign reserves This view is not without merit. Because of compensation sis of the 1990s. Sovereign investors sought foreign reserves structures that rewarded traders for short-term gains and to insure against currency runs, and explosive growth in structures that rewarded traders for short-term gains and to insure against currency runs, and explosive growth in provided incentive for the creation and sale of opaque export-oriented countries like China continued to increase provided incentive for the creation and sale of opaque export-oriented countries like China continued to increase financial products as risk-management tools, bankers demand for dollars, thereby driving down interest rates and, financial products as risk-management tools, bankers demand for dollars, thereby driving down interest rates and, indeed reaped private profits even as they socialized risk. with them, credit spreads across a variety of asset classes. indeed reaped private profits even as they socialized risk. with them, credit spreads across a variety of asset classes. Moreover, bank critics like Elizabeth Warren note that Moreover, bank critics like Elizabeth Warren note that consumers are routinely unable to understand many This narrative favors stricter rules for banks and their regu- consumers are routinely unable to understand many This narrative favors stricter rules for banks and their regu- mortgage-related terms as presented in contracts and lators to minimize the risks of lax oversight and regulatory mortgage-related terms as presented in contracts and lators to minimize the risks of lax oversight and regulatory cite repeated instances of borrowers who qualified for capture.10,11 Strict rules bind regulators and make them less cite repeated instances of borrowers who qualified for capture.10,11 Strict rules bind regulators and make them less prime loans but were sold subprime loans that proved capable of responding to changes in financial markets. prime loans but were sold subprime loans that proved capable of responding to changes in financial markets. more lucrative for originators.7 But the narrative fails to While the current regulatory patchwork failed to preempt more lucrative for originators.7 But the narrative fails to While the current regulatory patchwork failed to preempt explain why banks themselves should have kept so many the financial crisis, there are not laws on the books that explain why banks themselves should have kept so many the financial crisis, there are not laws on the books that poorly performing assets on their balance sheets. Worse, empower regulators to regulate most of the actions taken poorly performing assets on their balance sheets. Worse, empower regulators to regulate most of the actions taken the recommendations that flow from this narrative fail by the nonbanks that precipitated the crisis. the recommendations that flow from this narrative fail by the nonbanks that precipitated the crisis. to address the shadow banking system (described in Part to address the shadow banking system (described in Part III). By focusing attentions of executive and trader pay, A second, less widespread view of policy ineptitude sug- III). By focusing attentions of executive and trader pay, A second, less widespread view of policy ineptitude sug- the “evil bankers” narrative also supports daily mark-to- gests that the federal housing policy meant to promote the “evil bankers” narrative also supports daily mark-to- gests that the federal housing policy meant to promote

108 Vol. XVIII, 2010–2011 The Wagner Review 108 Vol. XVIII, 2010–2011 The Wagner Review homeownership resulted in a flood of low-quality, high- Blame-based causal narratives of the financial crisis are homeownership resulted in a flood of low-quality, high- Blame-based causal narratives of the financial crisis are risk loans that later failed in large numbers. This narra- mutually exclusive, and collectively they fail the test of risk loans that later failed in large numbers. This narra- mutually exclusive, and collectively they fail the test of tive is supported by the poor performance of subprime epistemic completeness. tive is supported by the poor performance of subprime epistemic completeness. loans in the run-up to the crisis, and it favors curtailment loans in the run-up to the crisis, and it favors curtailment of federal efforts to boost homeownership. But this view, More damning is the effect blame-based causal narratives of federal efforts to boost homeownership. But this view, More damning is the effect blame-based causal narratives too, fails to account for how underperforming subprime exert on the deliberation over postcrisis policy revisions. too, fails to account for how underperforming subprime exert on the deliberation over postcrisis policy revisions. mortgages are related to the broader financial crisis. Because blame-based causal narratives have clear villains mortgages are related to the broader financial crisis. Because blame-based causal narratives have clear villains and victims, their recommendations are straightfor- and victims, their recommendations are straightfor- Consumers: Gullible, ward. And because these narratives are emotional, they Consumers: Gullible, ward. And because these narratives are emotional, they Fraudsters, or Both recruit passionate partisans who are unwilling to revisit Fraudsters, or Both recruit passionate partisans who are unwilling to revisit The final blame-based narrative faults homebuyers for their preferred causal accounts of the crisis. The zero-sum The final blame-based narrative faults homebuyers for their preferred causal accounts of the crisis. The zero-sum failing to be more discriminating customers of mort- prescriptions and uncompromising advocates associated failing to be more discriminating customers of mort- prescriptions and uncompromising advocates associated gages and for “buying more house than they could with blame-based causal narratives combine to effec- gages and for “buying more house than they could with blame-based causal narratives combine to effec- afford.” Proponents often cite the popularity of NINJA tively crowd out policy recommendations that target root afford.” Proponents often cite the popularity of NINJA tively crowd out policy recommendations that target root (“no income, no job, and no assets”) loans to argue that causes. In this section, I outline a more ecumenical causal (“no income, no job, and no assets”) loans to argue that causes. In this section, I outline a more ecumenical causal buyer avarice, speculation, and gullibility are to blame narrative of the financial crisis: that it was, in essence, a buyer avarice, speculation, and gullibility are to blame narrative of the financial crisis: that it was, in essence, a for the subprime meltdown and resultant crisis. bank panic in the shadow banking system. Viewing the for the subprime meltdown and resultant crisis. bank panic in the shadow banking system. Viewing the financial crisis as a bank panic opens up additional lines financial crisis as a bank panic opens up additional lines Doubtless, mortgage fraud was a nontrivial factor in of policy reform that are omitted from narrower, blame- Doubtless, mortgage fraud was a nontrivial factor in of policy reform that are omitted from narrower, blame- the wave of defaults, and it implicates borrowers and based causal narratives. Finally, understanding the pecu- the wave of defaults, and it implicates borrowers and based causal narratives. Finally, understanding the pecu- creditors alike. However, it fails to explain the conta- liar nature of the recent panic helps to explain the dearth creditors alike. However, it fails to explain the conta- liar nature of the recent panic helps to explain the dearth gion effect of mortgage defaults on a variety of asset of positive, rather than blame-based, narratives of the gion effect of mortgage defaults on a variety of asset of positive, rather than blame-based, narratives of the classes, and politically, it imperils efforts to promote financial crisis. classes, and politically, it imperils efforts to promote financial crisis. mortgage modifications to reduce foreclosure and shore mortgage modifications to reduce foreclosure and shore up bank finances. By directing the lion’s share of legis- What Is Banking? up bank finances. By directing the lion’s share of legis- What Is Banking? lative effort to consumer protection and fraud detec- The familiar role of banking is the transformation of lative effort to consumer protection and fraud detec- The familiar role of banking is the transformation of tion, it both discounts and distracts attention from the savings in one part of an economy to investment in tion, it both discounts and distracts attention from the savings in one part of an economy to investment in structural forces (such as the contemporary realities another part of the economy. Thus, one customer’s structural forces (such as the contemporary realities another part of the economy. Thus, one customer’s of corporate finance and the function of the shadow checking account (i.e., a demand deposit) might be of corporate finance and the function of the shadow checking account (i.e., a demand deposit) might be banking system) that propagated distress across asset used to extend a loan to another customer. Banks serve banking system) that propagated distress across asset used to extend a loan to another customer. Banks serve classes more sound than subprime-mortgage bonds. a second, less obvious function in creating additional classes more sound than subprime-mortgage bonds. a second, less obvious function in creating additional media of exchange. These new media of exchange media of exchange. These new media of exchange Part III: An Alternate take the form of bonds of various terms of maturity. Part III: An Alternate take the form of bonds of various terms of maturity. Hypothesis Such bonds are, in effect, private money, and they are Hypothesis Such bonds are, in effect, private money, and they are endemic to a capitalist system of exchange.12 endemic to a capitalist system of exchange.12 As the evidence offered in Part II suggests, there is a As the evidence offered in Part II suggests, there is a substantial measure of truth to each of the foregoing The most common form of these bonds is repo, or “sale substantial measure of truth to each of the foregoing The most common form of these bonds is repo, or “sale blame-based causal narratives. The problem with blame- and repurchase agreements,” and it is used for short-term blame-based causal narratives. The problem with blame- and repurchase agreements,” and it is used for short-term based causal narratives is not that they are individually savings by large institutional investors and companies. based causal narratives is not that they are individually savings by large institutional investors and companies. inaccurate; rather they are detrimental to sound policy Repo functions like a checking account for institutions.13 inaccurate; rather they are detrimental to sound policy Repo functions like a checking account for institutions.13 formation when they are considered jointly. The appeal In the case of a consumer checking account, the cus- formation when they are considered jointly. The appeal In the case of a consumer checking account, the cus- of the blame-based narrative is its simplicity: it localizes tomer opens an account by loaning funds to the bank. In of the blame-based narrative is its simplicity: it localizes tomer opens an account by loaning funds to the bank. In all fault within a given party. By creating clear-cut vil- exchange, the bank pays the customer some interest rate i, all fault within a given party. By creating clear-cut vil- exchange, the bank pays the customer some interest rate i, lains and victims, blame-based narratives are ultimately and makes loans to other borrowers at some higher inter- lains and victims, blame-based narratives are ultimately and makes loans to other borrowers at some higher inter- too spare to contain a comprehensive causal account. est rate, l. There is no collateral exchanged because indi- too spare to contain a comprehensive causal account. est rate, l. There is no collateral exchanged because indi- If greedy bankers preyed on a gullible public, how can viduals’ deposits are insured by the federal government. If greedy bankers preyed on a gullible public, how can viduals’ deposits are insured by the federal government. speculative consumers be blamed for the mortgage (Currently, federal deposit insurance is $250,000 per indi- speculative consumers be blamed for the mortgage (Currently, federal deposit insurance is $250,000 per indi- meltdown? If the Federal Reserve’s Open Markets Com- vidual per account.) Because a customer can withdraw meltdown? If the Federal Reserve’s Open Markets Com- vidual per account.) Because a customer can withdraw mittee kept interest rates too low for too long, how can her funds at any time, the bank effectively uses short-term mittee kept interest rates too low for too long, how can her funds at any time, the bank effectively uses short-term we fault bankers for seeking higher returns elsewhere? debt to finance long-term investments. we fault bankers for seeking higher returns elsewhere? debt to finance long-term investments.

MEANING-MAKING AMID Reed 109 MEANING-MAKING AMID Reed 109 DUELING NARRATIVES OF THE FINANCIAL CRISIS DUELING NARRATIVES OF THE FINANCIAL CRISIS July ‘07 Late Q3 Q4 Q1 Q2 Q2 2008 - July ‘07 Late Q3 Q4 Q1 Q2 Q2 2008 - Bond Class23 Bond Class23 (Preccrisis) July-Aug. 2007 2007 2008 2008 9/15/08 (Preccrisis) July-Aug. 2007 2007 2008 2008 9/15/08 Corporate A-AA rated 0% 0% 0% 0% 0% 0% 0% Corporate A-AA rated 0% 0% 0% 0% 0% 0% 0% Corporate BBB rated 0% 0% 0% 0% 0% 0-5% 0-5% Corporate BBB rated 0% 0% 0% 0% 0% 0-5% 0-5% Corporate < BBB- rated 0% 0% 0% 0% 0% 0-5% 0-5% Corporate < BBB- rated 0% 0% 0% 0% 0% 0-5% 0-5% ABS AA-AA 0% 2-5% 3-7% 5-10% 10-15% 15-20% 20-25% ABS AA-AA 0% 2-5% 3-7% 5-10% 10-15% 15-20% 20-25% ABS BBB-AA 0% 3-7% 5-10% 10-15% 15-20% 20-25% 20-30%+ ABS BBB-AA 0% 3-7% 5-10% 10-15% 15-20% 20-25% 20-30%+ ABS < BBB 0-2% 5-10% 10-15% 15-20% 20-25% 100% 100% ABS < BBB 0-2% 5-10% 10-15% 15-20% 20-25% 100% 100% CLO, Other AA-AAA 0% 2-5% 3-7% 5-10% 10-15% 15-20% 15-25% CLO, Other AA-AAA 0% 2-5% 3-7% 5-10% 10-15% 15-20% 15-25% CLO, Other BBB-AA 0% 3-7% 5-10% 10-15% 15-20% 20-25% 20-30% CLO, Other BBB-AA 0% 3-7% 5-10% 10-15% 15-20% 20-25% 20-30% CLO, Other < BBB 0-2% 5-10% 10-15% 15-20% 20-25% 100% 100% CLO, Other < BBB 0-2% 5-10% 10-15% 15-20% 20-25% 100% 100% CMO, Other AA-AAA 0% 3-7% 4-8% 5-10%+ 15-20% 20-25% 20-30%+ CMO, Other AA-AAA 0% 3-7% 4-8% 5-10%+ 15-20% 20-25% 20-30%+ CMO, Other BBB-AA 0% 5-10% 5-10%+ 15-20% 20-25% 20-25% 100% CMO, Other BBB-AA 0% 5-10% 5-10%+ 15-20% 20-25% 20-25% 100% CMO, Other < BBB 0-2% 5-10% 10-20% 20-25% 100% 100% 100% CMO, Other < BBB 0-2% 5-10% 10-20% 20-25% 100% 100% 100% CDO AA-AAA 0% 3-7% 5-10% 10-20% 15-20% 15-20% 15-20% CDO AA-AAA 0% 3-7% 5-10% 10-20% 15-20% 15-20% 15-20% CDO BBB-AA 0% 5-10% 10-15% 15-25% 20-30% 25-30% 100% CDO BBB-AA 0% 5-10% 10-15% 15-25% 20-30% 25-30% 100% CDO < BBB 0-2% 10%+ 15-20% 25-30% 100% 100% 100% CDO < BBB 0-2% 10%+ 15-20% 25-30% 100% 100% 100% Average Haircut 0% 5% 8% 12% 26% 38% 51% Average Haircut 0% 5% 8% 12% 26% 38% 51% Table 1: A Run on Repo Table 1: A Run on Repo Haircuts on collateral indicate the withdrawal of depositors’ funds in the repo market. Bond classes with a 100 percent haircut are not tradable in the Haircuts on collateral indicate the withdrawal of depositors’ funds in the repo market. Bond classes with a 100 percent haircut are not tradable in the repo market; their values have fallen to $0. Haircut ranges are for average terms of one to three months for interdealer or investment-grade major repo market; their values have fallen to $0. Haircut ranges are for average terms of one to three months for interdealer or investment-grade major market participants. All haircuts are approximations and vary by specific counterparty. In calculating mean haircut values in the final row, each asset market participants. All haircuts are approximations and vary by specific counterparty. In calculating mean haircut values in the final row, each asset class is weighted equally and, where haircuts appear as ranges, the midpoints of the ranges have been used (adapted from Gorton). class is weighted equally and, where haircuts appear as ranges, the midpoints of the ranges have been used (adapted from Gorton).

Similarly, if a company has cash on hand and would like Over the years, Gorton has made a compelling case Similarly, if a company has cash on hand and would like Over the years, Gorton has made a compelling case to earn interest, it can lend the money to a bank or other that the defining attribute of high-quality collateral is its to earn interest, it can lend the money to a bank or other that the defining attribute of high-quality collateral is its institution in exchange for collateral. Here, the exchange information insensitivity.15,16,17 If the value of a bond is institution in exchange for collateral. Here, the exchange information insensitivity.15,16,17 If the value of a bond is of collateral for cash is necessary, because the overnight perceived to be information-insensitive, no bond inves- of collateral for cash is necessary, because the overnight perceived to be information-insensitive, no bond inves- “deposit” amounts are typically many millions of dollars, tor has incentive to find material information about that “deposit” amounts are typically many millions of dollars, tor has incentive to find material information about that and there is no corporate equivalent of the FDIC’s insur- bond that gives him advantages in a transaction concern- and there is no corporate equivalent of the FDIC’s insur- bond that gives him advantages in a transaction concern- ance fund for consumers. The quality of collateral offered ing that bond. Consider the case of U.S. Treasurys: a ance fund for consumers. The quality of collateral offered ing that bond. Consider the case of U.S. Treasurys: a is significant, because when collateral valued at the dollar short-term buyer of Treasurys does not need to examine is significant, because when collateral valued at the dollar short-term buyer of Treasurys does not need to examine value of the repo “deposit” is offered in exchange for that the long-run debt projections of the United States. The value of the repo “deposit” is offered in exchange for that the long-run debt projections of the United States. The deposit, the market enjoys broad liquidity and holders yield of the bond is equivalent to its coupon value, and deposit, the market enjoys broad liquidity and holders yield of the bond is equivalent to its coupon value, and of collateral can use that collateral in other transactions. the market price equals its face value plus yield because of collateral can use that collateral in other transactions. the market price equals its face value plus yield because Thus, collateral functions as currency. In order to serve other buyers and sellers are dealing in a security with a Thus, collateral functions as currency. In order to serve other buyers and sellers are dealing in a security with a large-scale depositors, then, the banking system requires known future value. Thus, information-insensitive bonds large-scale depositors, then, the banking system requires known future value. Thus, information-insensitive bonds high-quality collateral. provide liquidity to a debt market because no party has an high-quality collateral. provide liquidity to a debt market because no party has an incentive to exploit information asymmetries for arbitrage incentive to exploit information asymmetries for arbitrage Long Shadows: The Rise purposes. High liquidity is what makes investment in Long Shadows: The Rise purposes. High liquidity is what makes investment in of the Shadow Banking System the repo market appealing to large-scale investors, and it of the Shadow Banking System the repo market appealing to large-scale investors, and it High-quality collateral has uses distinct from the repo enables borrowers to finance their short-term obligations. High-quality collateral has uses distinct from the repo enables borrowers to finance their short-term obligations. market; it is used by firms to take derivative positions market; it is used by firms to take derivative positions and clear financial transactions, and private and sover- The shadow banking system arose as a mechanism for cre- and clear financial transactions, and private and sover- The shadow banking system arose as a mechanism for cre- eign demand for high-value collateral for investment pur- ating high-quality, information-insensitive (and thereby eign demand for high-value collateral for investment pur- ating high-quality, information-insensitive (and thereby poses is strong.14 Treasury bonds and U.S. government information-symmetric) collateral to supply to repo and poses is strong.14 Treasury bonds and U.S. government information-symmetric) collateral to supply to repo and agency debt are the highest-value collateral (because they other markets. It did so through securitization, a financ- agency debt are the highest-value collateral (because they other markets. It did so through securitization, a financ- are backed by the federal government), though highly ing vehicle wherein certain of a firm’s assets are purchased are backed by the federal government), though highly ing vehicle wherein certain of a firm’s assets are purchased rated corporate debt is also valuable collateral. Given by another legal entity of the firm. Special-Purpose Vehi- rated corporate debt is also valuable collateral. Given by another legal entity of the firm. Special-Purpose Vehi- the importance of high-quality collateral, it is important cles (SPVs) are the legal entities that agglomerate assets the importance of high-quality collateral, it is important cles (SPVs) are the legal entities that agglomerate assets to address those factors that give rise to collateral of the (like mortgages) and pool the cash flows from those assets. to address those factors that give rise to collateral of the (like mortgages) and pool the cash flows from those assets. high-quality sort. Essentially, the SPV creates a pool of money from securi- high-quality sort. Essentially, the SPV creates a pool of money from securi-

110 Vol. XVIII, 2010–2011 The Wagner Review 110 Vol. XVIII, 2010–2011 The Wagner Review Blame Narrative Preferred Policy Policy Cost/Shortcoming Blame Narrative Preferred Policy Policy Cost/Shortcoming

Automatic rules: • Regulation grows static while the private Automatic rules: • Regulation grows static while the private Banking Deregulation/ • Return to Glass-Steagall sector remains dynamic; regulated entities Banking Deregulation/ • Return to Glass-Steagall sector remains dynamic; regulated entities Regulatory Laxity • Tight capital ratios will outpace regulators as their discretion is Regulatory Laxity • Tight capital ratios will outpace regulators as their discretion is • Size restrictions for banks constrained • Size restrictions for banks constrained

• Executive-pay restrictions • Ignores the shadow banking system • Executive-pay restrictions • Ignores the shadow banking system • Consumer Financial Products Safety • Mark-to-market rules work well in ordinary • Consumer Financial Products Safety • Mark-to-market rules work well in ordinary Bankers’ Greed & Predation Bankers’ Greed & Predation Commission times, but artificially depress balance sheets Commission times, but artificially depress balance sheets • Mark-to-market accounting rules in a bank panic • Mark-to-market accounting rules in a bank panic

• Undermines political efforts to stem losses • Undermines political efforts to stem losses Homebuyers’ Ignorance and • Consumer Financial Products Safety Homebuyers’ Ignorance and • Consumer Financial Products Safety from underwater mortgages from underwater mortgages Fraud Commission Fraud Commission • Hinders reform of Fannie and Freddie • Hinders reform of Fannie and Freddie

Table 2: Blame Narratives and Associated Policy Preferences Table 2: Blame Narratives and Associated Policy Preferences Here, each blame-based causal narrative is related to its associated policies. Each narrative intimates a role for useful policies, but none Here, each blame-based causal narrative is related to its associated policies. Each narrative intimates a role for useful policies, but none addresses the root causes of the bank panic. addresses the root causes of the bank panic.

tized cash flows and then sells shares of that pool to inves- loans to risky borrowers. To do so, subprime mortgages tized cash flows and then sells shares of that pool to inves- loans to risky borrowers. To do so, subprime mortgages tors in the form of bonds. The most abundant source of were designed with the expectation of homeowner refi- tors in the form of bonds. The most abundant source of were designed with the expectation of homeowner refi- assets for securitization were home mortgages, as they nancing in mind. The general idea was that both bor- assets for securitization were home mortgages, as they nancing in mind. The general idea was that both bor- promised long-term cash flows that could be pooled via rower and lender could benefit from constant house promised long-term cash flows that could be pooled via rower and lender could benefit from constant house a somewhat straightforward assessment of default risk. price appreciation over short time horizons,18 however a somewhat straightforward assessment of default risk. price appreciation over short time horizons,18 however Bonds created by pools of mortgages are called Residen- imprudent it proved to be. Most subprime mortgages Bonds created by pools of mortgages are called Residen- imprudent it proved to be. Most subprime mortgages tial Mortgage-Backed Securities (RMBS), and they grew were adjustable-rate mortgages (ARMs) that combined tial Mortgage-Backed Securities (RMBS), and they grew were adjustable-rate mortgages (ARMs) that combined to become an enormous source of collateral. fixed and variable interest rates in a single security. In to become an enormous source of collateral. fixed and variable interest rates in a single security. In the initial period of an ARM term (typically the first the initial period of an ARM term (typically the first Shadow banks and their structured products thus (1) two or three years of a 30-year term), the interest rate Shadow banks and their structured products thus (1) two or three years of a 30-year term), the interest rate serve as a financing mechanism for firms engaged in the on the loan remains fixed at a moderate level. After this serve as a financing mechanism for firms engaged in the on the loan remains fixed at a moderate level. After this repo market, and (2) create collateral used for clearing initial period ends, the loan resets to a higher, variable repo market, and (2) create collateral used for clearing initial period ends, the loan resets to a higher, variable and settling derivatives and less exotic transactions. The rate, typically LIBOR19 plus some four percent to seven and settling derivatives and less exotic transactions. The rate, typically LIBOR19 plus some four percent to seven collateral created by shadow banks (i.e., bonds based on percent. At this point, the homeowner has a power- collateral created by shadow banks (i.e., bonds based on percent. At this point, the homeowner has a power- pooled cash flows) is high-quality because it is informa- ful incentive to refinance her loan, either with another pooled cash flows) is high-quality because it is informa- ful incentive to refinance her loan, either with another tion-insensitive; based on the level of their seniority and subprime loan or, if her equity and consumer-credit tion-insensitive; based on the level of their seniority and subprime loan or, if her equity and consumer-credit the rating of the pool of cash flows, securitized bond- positions have improved, a prime, fixed-rate mortgage. the rating of the pool of cash flows, securitized bond- positions have improved, a prime, fixed-rate mortgage. holders enjoy a liquid market for their bonds, provided holders enjoy a liquid market for their bonds, provided that there is no incentive for counterparties to pursue As long as house prices continue to rise, refinancing sub- that there is no incentive for counterparties to pursue As long as house prices continue to rise, refinancing sub- arbitrage based on asymmetric information. prime mortgages is relatively straightforward, and the arbitrage based on asymmetric information. prime mortgages is relatively straightforward, and the securitized products created with subprime mortgages securitized products created with subprime mortgages The foregoing model explains the shadow banking sys- remain information-insensitive. These bonds formed The foregoing model explains the shadow banking sys- remain information-insensitive. These bonds formed tem through 2006. When the information insensitivity of the collateral used to secure borrowing and lending in tem through 2006. When the information insensitivity of the collateral used to secure borrowing and lending in securitized collateral was called into question by subprime- the repo market, and given their information-insensitive securitized collateral was called into question by subprime- the repo market, and given their information-insensitive mortgage defaults, the result was the financing-market nature, the market was liquid and collateral traded at face mortgage defaults, the result was the financing-market nature, the market was liquid and collateral traded at face collapse that began in 2007. I treat briefly the subprime value. This system is threatened when house prices fall collapse that began in 2007. I treat briefly the subprime value. This system is threatened when house prices fall meltdown to explain the relationship between homebuy- or, indeed, rise more slowly than projected by issuers of meltdown to explain the relationship between homebuy- or, indeed, rise more slowly than projected by issuers of ers and panic in the shadow banking system. subprime mortgages. A homeowner has a considerably ers and panic in the shadow banking system. subprime mortgages. A homeowner has a considerably depressed incentive to refinance his home if he stands to depressed incentive to refinance his home if he stands to Subprime Mortgages Link Wall lose the equity stake he established in the first two or three Subprime Mortgages Link Wall lose the equity stake he established in the first two or three Street and Main Street years of his subprime mortgage, yet he faces the threat Street and Main Street years of his subprime mortgage, yet he faces the threat Subprime mortgages are securities that were initially of dramatically higher interest rates on his mortgage Subprime mortgages are securities that were initially of dramatically higher interest rates on his mortgage developed by lenders as a means of extending mortgage if he does not. A lender is less willing to finance a sec- developed by lenders as a means of extending mortgage if he does not. A lender is less willing to finance a sec-

MEANING-MAKING AMID Reed 111 MEANING-MAKING AMID Reed 111 DUELING NARRATIVES OF THE FINANCIAL CRISIS DUELING NARRATIVES OF THE FINANCIAL CRISIS ond mortgage if the borrower has negative equity in the As collateral haircuts increased, it became harder to ond mortgage if the borrower has negative equity in the As collateral haircuts increased, it became harder to home, as that borrower’s risk of default is higher. Because use that collateral in other transactions, for no party home, as that borrower’s risk of default is higher. Because use that collateral in other transactions, for no party subprime-loan repayment almost uniformly requires refi- wanted to be saddled with an asset whose value was subprime-loan repayment almost uniformly requires refi- wanted to be saddled with an asset whose value was nancing, a subprime borrower’s ability to repay his loan uncertain and likely to decline with reference to the nancing, a subprime borrower’s ability to repay his loan uncertain and likely to decline with reference to the is highly sensitive to the market price of his home at the price paid for it; thus the sudden change of RMBSs is highly sensitive to the market price of his home at the price paid for it; thus the sudden change of RMBSs conclusion of the fixed-rate period of his mortgage. The from information-insensitive to information-intensive conclusion of the fixed-rate period of his mortgage. The from information-insensitive to information-intensive fall of house prices in 2006-2007 severely limited hom- bonds desiccated the liquidity of the repo market. As fall of house prices in 2006-2007 severely limited hom- bonds desiccated the liquidity of the repo market. As eowners’ ability to refinance, and resulted in uncertainty the issuers of collateral, shadow banks and the financial eowners’ ability to refinance, and resulted in uncertainty the issuers of collateral, shadow banks and the financial in the cash flows that backed the RMBSs that served as institutions that gave rise to them were forced to raise in the cash flows that backed the RMBSs that served as institutions that gave rise to them were forced to raise collateral in a wide variety of transactions. cash to return deposits to repo creditors. The massive collateral in a wide variety of transactions. cash to return deposits to repo creditors. The massive assets sales that provided this cash depressed the price assets sales that provided this cash depressed the price Bringing It All Together: The of assets and made repayment of creditors difficult. Bringing It All Together: The of assets and made repayment of creditors difficult. Financial Crisis as a Bank Panic Once creditors in the repo market began to fear for the Financial Crisis as a Bank Panic Once creditors in the repo market began to fear for the In light of the discussion of subprime mortgages and the security of their deposits, they raced to withdraw their In light of the discussion of subprime mortgages and the security of their deposits, they raced to withdraw their collateral they created, it is possible to construct a nar- money from their counterparties, precipitating runs on collateral they created, it is possible to construct a nar- money from their counterparties, precipitating runs on rative of the financial crisis as a bank panic. In a bank other repo borrowers. Gorton puts it best: rative of the financial crisis as a bank panic. In a bank other repo borrowers. Gorton puts it best: panic, a bank’s creditors have reason to doubt the safety panic, a bank’s creditors have reason to doubt the safety of their deposits and rush en masse to demand their Uncertain about the solvency of counterparties, of their deposits and rush en masse to demand their Uncertain about the solvency of counterparties, return. As the “What Is Banking?” discussion implies, repo depositors became concerned that the collat- return. As the “What Is Banking?” discussion implies, repo depositors became concerned that the collat- by their nature, banks are vulnerable to panics because eral bonds might not be liquid; if all firms wanted by their nature, banks are vulnerable to panics because eral bonds might not be liquid; if all firms wanted they use short-term assets to make long-term invest- to hold cash—a flight to quality—then collateral they use short-term assets to make long-term invest- to hold cash—a flight to quality—then collateral ments. A run of sufficient size on a bank will cause the would have to decline in price to find buyers. This ments. A run of sufficient size on a bank will cause the would have to decline in price to find buyers. This failure of that bank, and the failure of a bank injures its is the crucial link between the subprime shock and failure of that bank, and the failure of a bank injures its is the crucial link between the subprime shock and counterparties and incites runs on those counterparties. other asset categories.24 counterparties and incites runs on those counterparties. other asset categories.24 Bank panics have a long history in the U.S., but the Bank panics have a long history in the U.S., but the recent crisis is the first bona fide panic since the 1920s. In this way, the financial crisis can accurately be recent crisis is the first bona fide panic since the 1920s. In this way, the financial crisis can accurately be The creation of the FDIC and deposit insurance in the described as a panic in the shadow banking system. The creation of the FDIC and deposit insurance in the described as a panic in the shadow banking system. 1930s eliminated the primary risk of panics in consumer 1930s eliminated the primary risk of panics in consumer banking, but the financial crisis of 2007-2009 was differ- Part IV: Drawing Conclusions banking, but the financial crisis of 2007-2009 was differ- Part IV: Drawing Conclusions ent. It was a panic in the shadow banking system.20 ent. It was a panic in the shadow banking system.20 In Parts II and III, I outline four causal narratives for the In Parts II and III, I outline four causal narratives for the As house prices fell, subprime borrowers were unable to financial crisis. The first three narratives lack explana- As house prices fell, subprime borrowers were unable to financial crisis. The first three narratives lack explana- refinance their mortgages. Because they faced interest tory power because, in their race to assign blame for the refinance their mortgages. Because they faced interest tory power because, in their race to assign blame for the rates they could not afford, subprime borrowers began to crisis on bankers, regulators, or consumers, they are too rates they could not afford, subprime borrowers began to crisis on bankers, regulators, or consumers, they are too default on their mortgages. The SPVs that raised funds spare to account for the relationship between subprime- default on their mortgages. The SPVs that raised funds spare to account for the relationship between subprime- for their chartering entities by issuing bonds based on mortgage defaults and the ensuing crisis. The fourth for their chartering entities by issuing bonds based on mortgage defaults and the ensuing crisis. The fourth expected cash flows found themselves incapable of meet- narrative—the financial crisis as a panic in the shadow expected cash flows found themselves incapable of meet- narrative—the financial crisis as a panic in the shadow ing bondholder-payment obligations. The bonds—which banking system—can adequately account for the pro- ing bondholder-payment obligations. The bonds—which banking system—can adequately account for the pro- formed the collateral in repo, derivatives, and clearing gression of the financial crisis. But causal narratives do formed the collateral in repo, derivatives, and clearing gression of the financial crisis. But causal narratives do transactions—ceased to be information-insensitive. Cred- more than explain, ex post, a crisis; importantly, they transactions—ceased to be information-insensitive. Cred- more than explain, ex post, a crisis; importantly, they itors suddenly had a very powerful incentive to discover shape options concerning future reforms. Table 2 out- itors suddenly had a very powerful incentive to discover shape options concerning future reforms. Table 2 out- the nature of the mortgages underwriting their bonds. lines briefly the policy preferences and shortcomings of the nature of the mortgages underwriting their bonds. lines briefly the policy preferences and shortcomings of Because of the secondary market in mortgages and their the three blame-based narratives. Because of the secondary market in mortgages and their the three blame-based narratives. pooled cash flows, this feat proved impossible. With a pooled cash flows, this feat proved impossible. With a powerful incentive to distrust borrowers’ ability to repay Each of the blame-based narratives sketched above fails powerful incentive to distrust borrowers’ ability to repay Each of the blame-based narratives sketched above fails their obligations, creditors began to withdraw their funds to address the causes of panic in the shadow banking sys- their obligations, creditors began to withdraw their funds to address the causes of panic in the shadow banking sys- from the repo market through ever-higher “haircuts,”21 the tem. In this way, they foreclose on meaningful reform. from the repo market through ever-higher “haircuts,”21 the tem. In this way, they foreclose on meaningful reform. requirement that borrowing institutions post collateral at Viewing the financial crisis as a bank panic focuses atten- requirement that borrowing institutions post collateral at Viewing the financial crisis as a bank panic focuses atten- a premium to the cash deposited.22 Table 1 illustrates the tions on repo market liquidity and the standards used in a premium to the cash deposited.22 Table 1 illustrates the tions on repo market liquidity and the standards used in magnitude of capital withdrawal through repo haircuts. establishing high-quality collateral. By eschewing blame, magnitude of capital withdrawal through repo haircuts. establishing high-quality collateral. By eschewing blame,

112 Vol. XVIII, 2010–2011 The Wagner Review 112 Vol. XVIII, 2010–2011 The Wagner Review the bank panic narrative militates policy interventions “funeral plans” that articulate exposures and creditors. the bank panic narrative militates policy interventions “funeral plans” that articulate exposures and creditors. that monitor the shadow banking and securitization It establishes regulatory oversight for nonbank financial that monitor the shadow banking and securitization It establishes regulatory oversight for nonbank financial markets, and focuses attentions on the credit-ratings institutions important to the function of the financial markets, and focuses attentions on the credit-ratings institutions important to the function of the financial agencies whose bond ratings drove demand for secu- system and grants resolution authority to regulators for agencies whose bond ratings drove demand for secu- system and grants resolution authority to regulators for ritized collateral and obscured the riskiness of that col- the winding down of such institutions. ritized collateral and obscured the riskiness of that col- the winding down of such institutions. lateral. By focusing attention on the profound reach of lateral. By focusing attention on the profound reach of shadow banking products on firms’ day-to-day financing However, for all that Dodd-Frank does, it is also notable shadow banking products on firms’ day-to-day financing However, for all that Dodd-Frank does, it is also notable decisions, the bank panic narrative also directs attentions for what it does not do. A fair critique of the legislation decisions, the bank panic narrative also directs attentions for what it does not do. A fair critique of the legislation to business practices (such as firms’ overreliance on capi- is that Dodd-Frank will help to avoid the regulatory to business practices (such as firms’ overreliance on capi- is that Dodd-Frank will help to avoid the regulatory tal markets for short-term financing) that propagate and confusion that we witnessed in the thick of the financial tal markets for short-term financing) that propagate and confusion that we witnessed in the thick of the financial amplify financial shocks. crisis (which is no small feat), but it does little to redress amplify financial shocks. crisis (which is no small feat), but it does little to redress the conditions that enabled and precipitated the finan- the conditions that enabled and precipitated the finan- Afterword cial crisis in the first place. While the difficulty of that Afterword cial crisis in the first place. While the difficulty of that task is doubtless exceptional in any political body, it is task is doubtless exceptional in any political body, it is The initial version of this piece was written in early exacerbated by the lack of agreement on the structural, The initial version of this piece was written in early exacerbated by the lack of agreement on the structural, 2010 as the Senate moved to begin debate on financial- rather than proximate, causes of the financial crisis. Part 2010 as the Senate moved to begin debate on financial- rather than proximate, causes of the financial crisis. Part regulatory-reform measures. Since that time, Congress III of this review offers what I believe to be the most regulatory-reform measures. Since that time, Congress III of this review offers what I believe to be the most has passed the Dodd-Frank Wall Street Reform and compelling causal view, but neither it nor any other nar- has passed the Dodd-Frank Wall Street Reform and compelling causal view, but neither it nor any other nar- Consumer Protection Act (Public Law 111 – 203), and rative has gained the broad legitimacy afforded by an Consumer Protection Act (Public Law 111 – 203), and rative has gained the broad legitimacy afforded by an in late January 2011, the Financial Crisis Inquiry Com- official endorsement. The responsibility to provide such in late January 2011, the Financial Crisis Inquiry Com- official endorsement. The responsibility to provide such mission (FCIC) issued its report on the causes of the an account fell to the Financial Crisis Inquiry Commis- mission (FCIC) issued its report on the causes of the an account fell to the Financial Crisis Inquiry Commis- financial crisis. Despite these milestones, there remains sion, and its members failed to enumerate the causes of financial crisis. Despite these milestones, there remains sion, and its members failed to enumerate the causes of little consensus on an overarching narrative for the crisis. the crisis with a unified voice. little consensus on an overarching narrative for the crisis. the crisis with a unified voice. The lack of a popular causal narrative continues to yield The lack of a popular causal narrative continues to yield inadequate policy and practice. The FCIC was created by an act of Congress (Public inadequate policy and practice. The FCIC was created by an act of Congress (Public Law 111-21) and established a bipartisan panel of nota- Law 111-21) and established a bipartisan panel of nota- At the start of this review, I mention some of the extreme ble private citizens with experience in housing, finan- At the start of this review, I mention some of the extreme ble private citizens with experience in housing, finan- measures that the Treasury, Federal Reserve, Congress, cial markets, banking, and economics. It was given measures that the Treasury, Federal Reserve, Congress, cial markets, banking, and economics. It was given and President took to mitigate the worst effects of the subpoena power and an $8 million budget to inves- and President took to mitigate the worst effects of the subpoena power and an $8 million budget to inves- financial crisis, but it was a very partial catalog of extraor- tigate the root causes of the financial crisis. Despite financial crisis, but it was a very partial catalog of extraor- tigate the root causes of the financial crisis. Despite dinary action. For months before the collapse of Lehman this mandate, the FCIC’s members fractured along dinary action. For months before the collapse of Lehman this mandate, the FCIC’s members fractured along Brothers, officials from Treasury and the New York Fed party lines in issuing their findings. The six commis- Brothers, officials from Treasury and the New York Fed party lines in issuing their findings. The six commis- brokered secret meetings among the management teams sioners appointed by Democrats issued the official brokered secret meetings among the management teams sioners appointed by Democrats issued the official of ailing and stronger firms, both domestic and interna- majority report, three commissioners appointed by of ailing and stronger firms, both domestic and interna- majority report, three commissioners appointed by tional, to facilitate mergers that the federal government Republicans issued a dissenting report, and a fourth tional, to facilitate mergers that the federal government Republicans issued a dissenting report, and a fourth would backstop or insure.25 There were two principle Republican commissioner issued a separate dissent- would backstop or insure.25 There were two principle Republican commissioner issued a separate dissent- reasons for such clandestine actions: (1) federal agencies ing report. The majority and primary dissidents share reasons for such clandestine actions: (1) federal agencies ing report. The majority and primary dissidents share were unaware of the derivative positions (and conse- many analyses, but the rupture emerges over whether were unaware of the derivative positions (and conse- many analyses, but the rupture emerges over whether quently, overall financial positions) of vulnerable firms to deem the financial crisis “avoidable.” The majority quently, overall financial positions) of vulnerable firms to deem the financial crisis “avoidable.” The majority and needed outside auditors to reassess those firms, and believes it was avoidable, and the dissenting minority and needed outside auditors to reassess those firms, and believes it was avoidable, and the dissenting minority (2) federal agencies lacked the legal authority to intervene argues that it was not. It appears that the final com- (2) federal agencies lacked the legal authority to intervene argues that it was not. It appears that the final com- directly in winding down troubled institutions. missioner deems the crisis avoidable, but his expla- directly in winding down troubled institutions. missioner deems the crisis avoidable, but his explanation of the crisis squarely pegs blame on federal nation of the crisis squarely pegs blame on federal Dodd-Frank changed this picture by making many housing policy and so differs from the general view of Dodd-Frank changed this picture by making many housing policy and so differs from the general view of financial transactions more transparent and by enu- other commissioners. financial transactions more transparent and by enu- other commissioners. merating and arrogating powers of financial regulatory merating and arrogating powers of financial regulatory bodies. The act requires that most derivatives trades be The two main camps of FCIC commissioners are split bodies. The act requires that most derivatives trades be The two main camps of FCIC commissioners are split placed on exchanges or clearinghouses. It creates a coun- on the avoidability question because its answer implies placed on exchanges or clearinghouses. It creates a coun- on the avoidability question because its answer implies cil of regulators to monitor the financial system for sys- different courses of policy action. The majority empha- cil of regulators to monitor the financial system for sys- different courses of policy action. The majority empha- temic risks, and it requires financial institutions to draft size the role that regulation can play to restrain the per- temic risks, and it requires financial institutions to draft size the role that regulation can play to restrain the per-

MEANING-MAKING AMID Reed 113 MEANING-MAKING AMID Reed 113 DUELING NARRATIVES OF THE FINANCIAL CRISIS DUELING NARRATIVES OF THE FINANCIAL CRISIS missive tendencies regarding risk of individuals, firms, to avoid such a crisis from recurring, they appear to shy missive tendencies regarding risk of individuals, firms, to avoid such a crisis from recurring, they appear to shy and regulatory bodies. The minority’s view of the finan- away from prescriptive remedies. Both camps still strug- and regulatory bodies. The minority’s view of the finan- away from prescriptive remedies. Both camps still strug- cial crisis is that is akin to an act of nature. They are leery gle with the vacuum left by the decline of the efficient- cial crisis is that is akin to an act of nature. They are leery gle with the vacuum left by the decline of the efficient- of the same risk-taking behaviors noted by the majority, markets worldview. The search for a causal narrative of of the same risk-taking behaviors noted by the majority, markets worldview. The search for a causal narrative of but faced with the scope of reform measures required the financial crisis continues. but faced with the scope of reform measures required the financial crisis continues.

Notes Notes Prepared for the U.S. Financial Crisis Inquiry Commission,” Prepared for the U.S. Financial Crisis Inquiry Commission,” 1 Richard Lowenstein, The End of Wall Street, (New York: The Pen- Testimony prepared for the Financial Crisis Inquiry Commission, 1 Richard Lowenstein, The End of Wall Street, (New York: The Pen- Testimony prepared for the Financial Crisis Inquiry Commission, guin Press, 2010), 136. February 20, 2010, 2-13. guin Press, 2010), 136. February 20, 2010, 2-13. 2 TalkingPointsMemoTV, “President Bush Addresses Nation on 14 Ibid. 2 TalkingPointsMemoTV, “President Bush Addresses Nation on 14 Ibid. Economic Crisis,” YouTube, http://www.youtube.com/watch?y=Ys 15 Gary Gorton, Slapped by the Invisible Hand: The Panic of 2007, (New Economic Crisis,” YouTube, http://www.youtube.com/watch?y=Ys 15 Gary Gorton, Slapped by the Invisible Hand: The Panic of 2007, (New DmPEeurfA&feature=related, accessed May 3, 2010. York: Oxford University Press, 2010), 119-127. DmPEeurfA&feature=related, accessed May 3, 2010. York: Oxford University Press, 2010), 119-127. 3 U.S. Congress, House of Representatives, House Committee on 16 Gary Gorton, “Information, Liquidity, and the (Ongoing) Panic of 3 U.S. Congress, House of Representatives, House Committee on 16 Gary Gorton, “Information, Liquidity, and the (Ongoing) Panic of Oversight and Government Reform, 2008, The Financial Crisis and 2007,” NBER Working Paper No. 14358, 2008, 11, http://www.nber. Oversight and Government Reform, 2008, The Financial Crisis and 2007,” NBER Working Paper No. 14358, 2008, 11, http://www.nber. the Role of Federal Regulators, October 23, 2008, 37-38. org/papers/w14358. the Role of Federal Regulators, October 23, 2008, 37-38. org/papers/w14358. 4 Arjen Boin, Paul t’Hart, Eric Stern, and Bengt Sundelius, The 17 Gary Gorton and Andrew Metrick, “Haircuts,” NBER Working 4 Arjen Boin, Paul t’Hart, Eric Stern, and Bengt Sundelius, The 17 Gary Gorton and Andrew Metrick, “Haircuts,” NBER Working Politics of Crisis Management, (New York: Cambridge University Paper No. 15273, 2009, 5-8. http://www.nber.org/papers/w15273.pdf Politics of Crisis Management, (New York: Cambridge University Paper No. 15273, 2009, 5-8. http://www.nber.org/papers/w15273.pdf Press, 2005), 2. 18 Gorton, “Information, Liquidity, and the (Ongoing) Panic of Press, 2005), 2. 18 Gorton, “Information, Liquidity, and the (Ongoing) Panic of 5 Friedrich A. Hayek, “The Use of Knowledge in Society,” American 2007,” 4-9. 5 Friedrich A. Hayek, “The Use of Knowledge in Society,” American 2007,” 4-9. Economic Review (1945): 519. 19 LIBOR is the acronym for the London Interbank Offered Rate Economic Review (1945): 519. 19 LIBOR is the acronym for the London Interbank Offered Rate 6 Eugene F. Fama, “Random Walks in Stock Prices,” Financial Ana- and typically refers to the “one-month LIBOR,” a measure of what 6 Eugene F. Fama, “Random Walks in Stock Prices,” Financial Ana- and typically refers to the “one-month LIBOR,” a measure of what lysts Journal (1965, reprinted 1995): 76. banks pay for 30-day loans. LIBOR is a common feature of many lysts Journal (1965, reprinted 1995): 76. banks pay for 30-day loans. LIBOR is a common feature of many 7 Elizabeth Warren, “Consumer Safety as Systemic Safety,” variable interest-rate agreements. 7 Elizabeth Warren, “Consumer Safety as Systemic Safety,” variable interest-rate agreements. The American Prospect, April 26, 2010, www.prospect.org/cs/ 20 Gorton, Slapped by the Invisible Hand, 15-45; Leonhardt, Heading off The American Prospect, April 26, 2010, www.prospect.org/cs/ 20 Gorton, Slapped by the Invisible Hand, 15-45; Leonhardt, Heading off articles?article=consumer_protection_as_systemic_safety. the Next Financial Crisis, 36; Lowenstein, The End of Wall Street, 136. articles?article=consumer_protection_as_systemic_safety. the Next Financial Crisis, 36; Lowenstein, The End of Wall Street, 136. 8 Financial Crisis Inquiry Commission, The Financial Crisis 21 Put another way, haircuts are an instance of market destruction 8 Financial Crisis Inquiry Commission, The Financial Crisis 21 Put another way, haircuts are an instance of market destruction Inquiry Report: Final Report of the National Commission on through information asymmetries. In work published in 1970 Inquiry Report: Final Report of the National Commission on through information asymmetries. In work published in 1970 the Causes of the Financial and Economic Crisis in the United States, that later resulted in a Nobel Prize in Economics, George Akerlof the Causes of the Financial and Economic Crisis in the United States, that later resulted in a Nobel Prize in Economics, George Akerlof Washington, D.C.: U.S. Government Printing Office, 2011, xvii. describes the effect of information asymmetries on the quality of Washington, D.C.: U.S. Government Printing Office, 2011, xvii. describes the effect of information asymmetries on the quality of 9 David Leonhardt, “Heading Off the Next Financial Crisis,” The markets as a “lemons problem.” He sketches a model based on the 9 David Leonhardt, “Heading Off the Next Financial Crisis,” The markets as a “lemons problem.” He sketches a model based on the New York Times Magazine, March 22, 2010, 36. used-car market and posits that the market will cease to function if New York Times Magazine, March 22, 2010, 36. used-car market and posits that the market will cease to function if 10 Regulatory capture is the theory (advanced by George Stigler) that “lemons”(poor-quality used cars) are unmarked as such and perva- 10 Regulatory capture is the theory (advanced by George Stigler) that “lemons”(poor-quality used cars) are unmarked as such and perva- regulatory discretion and power corrupt the function of markets sive within the market. Sellers of high-quality used cars will exit the regulatory discretion and power corrupt the function of markets sive within the market. Sellers of high-quality used cars will exit the and give incentive to market participants to influence regulators market because used-car prices are depressed by buyers’ expectations and give incentive to market participants to influence regulators market because used-car prices are depressed by buyers’ expectations to minimize the competitive threats to incumbents. As a cure, the that they may wind up with a lemon. The remaining cars will be to minimize the competitive threats to incumbents. As a cure, the that they may wind up with a lemon. The remaining cars will be theory counsels less regulation. It advances an antigovernment posi- lemons, which buyers will not want to buy. theory counsels less regulation. It advances an antigovernment posi- lemons, which buyers will not want to buy. tion echoed by contemporary critics of the Federal Reserve and the 22 Gorton and Metrick, “Haircuts,” 1-11. tion echoed by contemporary critics of the Federal Reserve and the 22 Gorton and Metrick, “Haircuts,” 1-11. neo-Keynesian fiscal interventions that prevented a depression in 23 ABS = Asset-Backed Securities; CLO = Collateralized Loan neo-Keynesian fiscal interventions that prevented a depression in 23 ABS = Asset-Backed Securities; CLO = Collateralized Loan response to the economic crisis. Obligation; CMO = Collateralized Mortgage Obligation; CDO = response to the economic crisis. Obligation; CMO = Collateralized Mortgage Obligation; CDO = 11 George J. Stigler, “The Theory of Economic Regulation,” The Bell Collateralized Debt Obligation. 11 George J. Stigler, “The Theory of Economic Regulation,” The Bell Collateralized Debt Obligation. Journal of Economics and Management (1971): 3-21. 24 Gorton, Slapped by the Invisible Hand, 47. Journal of Economics and Management (1971): 3-21. 24 Gorton, Slapped by the Invisible Hand, 47. 12 Johnathan Wilmot, James Sweeny, Matthias Klein, and Carl Lantz, 25 Andrew R. Sorkin, Too Big to Fail: The Inside Story of How Wall 12 Johnathan Wilmot, James Sweeny, Matthias Klein, and Carl Lantz, 25 Andrew R. Sorkin, Too Big to Fail: The Inside Story of How Wall “Long Shadows: Collateral Money, Asset Bubbles, and Inflation,” Street and Washington Fought to Save the Financial System, (Kindle “Long Shadows: Collateral Money, Asset Bubbles, and Inflation,” Street and Washington Fought to Save the Financial System, (Kindle Credit Suisse: Fixed Income Research (2009). Edition), Kindle Locations 4022-4033; 4247. Credit Suisse: Fixed Income Research (2009). Edition), Kindle Locations 4022-4033; 4247. 13 Gary Gorton, “Questions and Answers about the Financial Crisis: 13 Gary Gorton, “Questions and Answers about the Financial Crisis:

114 Vol. XVIII, 2010–2011 The Wagner Review 114 Vol. XVIII, 2010–2011 The Wagner Review BIOGRAPHIES BIOGRAPHIES

AUTHOR BIOGRAPHIES AUTHOR BIOGRAPHIES Blanca Esquivel is a graduate of NYU Wagner Blanca Esquivel is a graduate of NYU Wagner specializing in public health policy. She earned specializing in public health policy. She earned Zayne Abdessalam graduated from NYU Wagner in her bachelor of arts in government from Smith Zayne Abdessalam graduated from NYU Wagner in her bachelor of arts in government from Smith 2010 with a master of urban planning. He is currently a College. Currently, Blanca manages several pro- 2010 with a master of urban planning. He is currently a College. Currently, Blanca manages several pro- research analyst for the retail, wholesale, and department- grams that offer case management and supportive research analyst for the retail, wholesale, and department- grams that offer case management and supportive store union, UFCW, for which he analyzes local policies services for people living with HIV/AIDS, as well store union, UFCW, for which he analyzes local policies services for people living with HIV/AIDS, as well around urban-labor issues. Conducting research for the as high-risk HIV-negative individuals in Central around urban-labor issues. Conducting research for the as high-risk HIV-negative individuals in Central current living-wage campaign, Fair Wages for New York- and East Harlem. Her research and work inter- current living-wage campaign, Fair Wages for New York- and East Harlem. Her research and work inter- ers Act, and also the detrimental effects of Walmart on ests focus on improving the health outcomes of ers Act, and also the detrimental effects of Walmart on ests focus on improving the health outcomes of local communities, his professional and personal research communities of color in New York City that face local communities, his professional and personal research communities of color in New York City that face is guided by concern for workers. high rates of disease. Previously, she has collabo- is guided by concern for workers. high rates of disease. Previously, she has collabo- rated with or worked at non-profits that empower rated with or worked at non-profits that empower Douglas Coulter is a master of public administra- underserved communities by providing them with Douglas Coulter is a master of public administra- underserved communities by providing them with tion candidate specializing in public policy analysis. access to quality health education and services. tion candidate specializing in public policy analysis. access to quality health education and services. Originally from Norman, Oklahoma, he moved to Originally from Norman, Oklahoma, he moved to New York in 2001 to attend NYU’s College of Arts Timothy Farrell is senior communications officer New York in 2001 to attend NYU’s College of Arts Timothy Farrell is senior communications officer and Sciences. After receiving his degree, he worked at New Visions for Public Schools, an education non- and Sciences. After receiving his degree, he worked at New Visions for Public Schools, an education non- at Idealist.org, developing community-outreach pro- profit located in New York City. He holds a bachelor at Idealist.org, developing community-outreach pro- profit located in New York City. He holds a bachelor grams as well as establishing its multimedia program. of arts in English and American literature from Brown grams as well as establishing its multimedia program. of arts in English and American literature from Brown His graduate work focuses on telecommunication University and a master of public administration from His graduate work focuses on telecommunication University and a master of public administration from and technology policy and economic development. NYU Wagner, from which he graduated in 2010. He and technology policy and economic development. NYU Wagner, from which he graduated in 2010. He He helped form and is the co-chair of the Stonewall has handled media relations for the New York Public He helped form and is the co-chair of the Stonewall has handled media relations for the New York Public Policy Alliance, an LGBTQ and allies student group. Library and NYU’s Steinhardt School of Culture, Edu- Policy Alliance, an LGBTQ and allies student group. Library and NYU’s Steinhardt School of Culture, Edu- During the summer of 2010 he worked on spectrum cation, and Human Development. He began his pro- During the summer of 2010 he worked on spectrum cation, and Human Development. He began his pro- policy for his internship at the White House Office of fessional career in book publishing and worked as an policy for his internship at the White House Office of fessional career in book publishing and worked as an Science and Technology Policy. editor at Random House. Science and Technology Policy. editor at Random House.

Rebecca DiBennardo is currently a sociology doc- Fernando Henao is a recent graduate of NYU Wag- Rebecca DiBennardo is currently a sociology doc- Fernando Henao is a recent graduate of NYU Wag- toral student at the University of California, Los ner, where he received a master of public administra- toral student at the University of California, Los ner, where he received a master of public administra- Angeles. She holds a bachelor of arts in international tion and specialized in policy analysis. He currently Angeles. She holds a bachelor of arts in international tion and specialized in policy analysis. He currently studies and Hispanic studies from Vassar College and a works as a consultant for the United Nations Develop- studies and Hispanic studies from Vassar College and a works as a consultant for the United Nations Develop- master of public administration in health policy from ment Programme—Bureau for Development Policy in master of public administration in health policy from ment Programme—Bureau for Development Policy in NYU Wagner. Previously, Rebecca served as a National the areas of local development and poverty reduction. NYU Wagner. Previously, Rebecca served as a National the areas of local development and poverty reduction. Compton Mentor Fellow, working on issues of health He has previously held positions with the government Compton Mentor Fellow, working on issues of health He has previously held positions with the government and sexuality among young females, and as a youth of Colombia, the Colombian Coffee Federation, and and sexuality among young females, and as a youth of Colombia, the Colombian Coffee Federation, and program associate at EngenderHealth. During her time USAID, promoting sustainable and viable income- program associate at EngenderHealth. During her time USAID, promoting sustainable and viable income- at NYU Wagner, she worked as a health policy gradu- generation projects for vulnerable populations. at NYU Wagner, she worked as a health policy gradu- generation projects for vulnerable populations. ate assistant, teaching assistant, and research assistant. ate assistant, teaching assistant, and research assistant. Her current research focuses on gender and sexuality, Brianne Lute is a second-year NYU Wagner student Her current research focuses on gender and sexuality, Brianne Lute is a second-year NYU Wagner student particularly experiences of stigma in gay families. specializing in public policy. Prior to NYU Wagner, particularly experiences of stigma in gay families. specializing in public policy. Prior to NYU Wagner,

Biographies 115 Biographies 115 Brianne worked for the National Democratic Insti- and legislative affairs. She was an analyst intern this Brianne worked for the National Democratic Insti- and legislative affairs. She was an analyst intern this tute for International Affairs (NDI) where she focused past summer at the U.S. Government Accountabil- tute for International Affairs (NDI) where she focused past summer at the U.S. Government Accountabil- on legislative strengthening and executive office assis- ity Office in San Francisco. Michelle holds bachelor on legislative strengthening and executive office assis- ity Office in San Francisco. Michelle holds bachelor tance programs. For three years, Brianne supported of arts degrees in the College Scholar program and tance programs. For three years, Brianne supported of arts degrees in the College Scholar program and projects worldwide and directly implemented pro- sociology from Cornell University and was a Public projects worldwide and directly implemented pro- sociology from Cornell University and was a Public grams in the Balkans and the Middle East. Before Policy and International Affairs Fellow at University grams in the Balkans and the Middle East. Before Policy and International Affairs Fellow at University NDI, Brianne spent five years working for U.S. Sena- of California, Berkeley. NDI, Brianne spent five years working for U.S. Sena- of California, Berkeley. tor Evan Bayh (D-IN). As a member of the senator’s tor Evan Bayh (D-IN). As a member of the senator’s senior staff, she supported legislative initiatives as well Kristin Van Busum received her master in public senior staff, she supported legislative initiatives as well Kristin Van Busum received her master in public as strategic and political efforts. Brianne graduated administration in health policy analysis from NYU as strategic and political efforts. Brianne graduated administration in health policy analysis from NYU from Indiana University in 2001. Wagner in May 2010. She joined RAND Corpora- from Indiana University in 2001. Wagner in May 2010. She joined RAND Corpora- tion in the health division as a research assistant in tion in the health division as a research assistant in David Colby Reed is a master of public administra- July 2010. Van Busum works on a variety of projects David Colby Reed is a master of public administra- July 2010. Van Busum works on a variety of projects tion student at NYU Wagner and studies issues of addressing workplace health promotion, cost contain- tion student at NYU Wagner and studies issues of addressing workplace health promotion, cost contain- global poverty and economic development. ment, and care quality and access. Prior to coming global poverty and economic development. ment, and care quality and access. Prior to coming to RAND, Van Busum was a research data associate to RAND, Van Busum was a research data associate Amalea Smirniotopoulos will be graduating from at NYU School of Medicine, where she worked on Amalea Smirniotopoulos will be graduating from at NYU School of Medicine, where she worked on NYU Wagner and NYU School of Law in May 2011 projects that examined patient decisionmaking and NYU Wagner and NYU School of Law in May 2011 projects that examined patient decisionmaking and with a master of public administration and a juris use of quality data from a behavioral-economics per- with a master of public administration and a juris use of quality data from a behavioral-economics per- doctor. Before returning to NYU, Amalea worked for spective. doctor. Before returning to NYU, Amalea worked for spective. the Bronx Defenders, a public defender office in the the Bronx Defenders, a public defender office in the Bronx. She has interned at the Brennan Center for Alissa Vladimir is a recent graduate of NYU Wag- Bronx. She has interned at the Brennan Center for Alissa Vladimir is a recent graduate of NYU Wag- Justice, the ACLU’s National Prison Project, and the ner. Before attending NYU, she worked as an account Justice, the ACLU’s National Prison Project, and the ner. Before attending NYU, she worked as an account Center for Constitutional Rights among other orga- executive at a boutique public relations firm in Phila- Center for Constitutional Rights among other orga- executive at a boutique public relations firm in Phila- nizations. She graduated from NYU’s College of Arts delphia, creating successful campaigns for clients in nizations. She graduated from NYU’s College of Arts delphia, creating successful campaigns for clients in and Sciences in 2005 with bachelor of arts in English. fields such as health care, senior housing, hospital- and Sciences in 2005 with bachelor of arts in English. fields such as health care, senior housing, hospital- ity, and entertainment. Alissa graduated summa cum ity, and entertainment. Alissa graduated summa cum Alexander J. Wolk received a master of urban laude with a bachelor of arts in communications Alexander J. Wolk received a master of urban laude with a bachelor of arts in communications planning degree from New York University’s Wag- from Temple University in Philadelphia. She has also planning degree from New York University’s Wag- from Temple University in Philadelphia. She has also ner School of Public Service in 2010. While there, worked at a number of women’s empowerment and ner School of Public Service in 2010. While there, worked at a number of women’s empowerment and he served as a member of the Green Building and human rights organizations throughout New York he served as a member of the Green Building and human rights organizations throughout New York Campus Planning Working Group and was also a City, including MADRE, the White House Project, Campus Planning Working Group and was also a City, including MADRE, the White House Project, September 11th Memorial Fellow at the New York and the National Council for Research on Women. September 11th Memorial Fellow at the New York and the National Council for Research on Women. City Department of Transportation. Prior to gradu- City Department of Transportation. Prior to graduate school, he was a program coordinator for Micro- Elizabeth Wolff, M.D. is a board-certified family ate school, he was a program coordinator for Micro- Elizabeth Wolff, M.D. is a board-certified family soft’s Community Affairs program, where he helped physician and currently works at the NYU Student soft’s Community Affairs program, where he helped physician and currently works at the NYU Student implement community technology learning centers Health Center. She has been active in academic medi- implement community technology learning centers Health Center. She has been active in academic medi- throughout Latin America. Currently, Wolk is a proj- cine for more than 10 years in New York City and throughout Latin America. Currently, Wolk is a proj- cine for more than 10 years in New York City and ect manager at the New York City Department of served as the medical director of a Federally Qualified ect manager at the New York City Department of served as the medical director of a Federally Qualified Environmental Protection and serves on the advisory Health Center in Manhattan prior to her matricu- Environmental Protection and serves on the advisory Health Center in Manhattan prior to her matricu- board of the Gowanus Canal Community Develop- lation at NYU. She graduated from NYU Wagner board of the Gowanus Canal Community Develop- lation at NYU. She graduated from NYU Wagner ment Corporation. in January 2011 with a specialization in health pol- ment Corporation. in January 2011 with a specialization in health policy. Her research interests include electronic health icy. Her research interests include electronic health Michelle R. Wong is a master of public administra- records, physician decisionmaking, models of pri- Michelle R. Wong is a master of public administra- records, physician decisionmaking, models of pri- tion candidate specializing in public policy analysis. mary care, and women’s reproductive health. tion candidate specializing in public policy analysis. mary care, and women’s reproductive health. A native Philadelphian, her policy interests relate to A native Philadelphian, her policy interests relate to education, poverty, immigrant communities, and Shana Wright currently works as an assistant research education, poverty, immigrant communities, and Shana Wright currently works as an assistant research voting rights. She hopes to pursue a career in policy scientist for the NYU School of Medicine. Her work voting rights. She hopes to pursue a career in policy scientist for the NYU School of Medicine. Her work and program evaluation. Prior to NYU Wagner, she incorporates projects related to substance-abuse inter- and program evaluation. Prior to NYU Wagner, she incorporates projects related to substance-abuse inter- worked in higher education and federal community ventions as well as addiction research dissemination, worked in higher education and federal community ventions as well as addiction research dissemination,

116 Vol. XVIII, 2010–2011 The Wagner Review 116 Vol. XVIII, 2010–2011 The Wagner Review implementation, and sustainability initiatives for the of the non-profit model for news organizations. implementation, and sustainability initiatives for the of the non-profit model for news organizations. New York Node of NIDA’s Clinical Trials Network. Diana was able to join these interests this past sum- New York Node of NIDA’s Clinical Trials Network. Diana was able to join these interests this past sum- Her personal research centers on food policy and herbal mer through a reporting internship with the Gotham Her personal research centers on food policy and herbal mer through a reporting internship with the Gotham medicine. She graduated from NYU Wagner in May Gazette. Currently, she works part-time as a develop- medicine. She graduated from NYU Wagner in May Gazette. Currently, she works part-time as a develop- 2010 with a master of public administration in health ment associate at AAFE Community Development 2010 with a master of public administration in health ment associate at AAFE Community Development policy. Fund and as an intern for Freakonomics Radio at policy. Fund and as an intern for Freakonomics Radio at WNYC. She holds a B.A. in journalism from Temple WNYC. She holds a B.A. in journalism from Temple STAFF BIOGRAPHIES University in Philadelphia. STAFF BIOGRAPHIES University in Philadelphia. EXECUTIVE BOARD EXECUTIVE BOARD Business Manager Business Manager Editor-in-Chief Edna Marinelarena is a master of public admin- Editor-in-Chief Edna Marinelarena is a master of public admin- Sean Capperis is a master of public administra- istration candidate with a specialization in financial Sean Capperis is a master of public administra- istration candidate with a specialization in financial tion candidate specializing in public policy analysis. management and public finance. She has experience tion candidate specializing in public policy analysis. management and public finance. She has experience A David Bohnett Public Service Fellow at NYU working in the non-profit and public sectors, and A David Bohnett Public Service Fellow at NYU working in the non-profit and public sectors, and Wagner, he served in the office of Chicago Mayor anticipates a career as an executive leader in public Wagner, he served in the office of Chicago Mayor anticipates a career as an executive leader in public Richard Daley in summer 2010. Sean currently works finance. Edna holds a bachelor’s degree of interdisci- Richard Daley in summer 2010. Sean currently works finance. Edna holds a bachelor’s degree of interdisci- as a research assistant on analyses of New York City’s plinary studies in business and public administration as a research assistant on analyses of New York City’s plinary studies in business and public administration land-use regulations at NYU’s Furman Center for and management. Edna’s interests include U.S. and land-use regulations at NYU’s Furman Center for and management. Edna’s interests include U.S. and Real Estate and Urban Policy. Sean holds a bachelor foreign policy, homeland security, and immigration Real Estate and Urban Policy. Sean holds a bachelor foreign policy, homeland security, and immigration of arts in urban studies and English writing from the issues. of arts in urban studies and English writing from the issues. University of Pittsburgh and is a member of the Phi University of Pittsburgh and is a member of the Phi Beta Kappa Society. Prior to NYU, Sean worked in Beta Kappa Society. Prior to NYU, Sean worked in Public Relations Manager Public Relations Manager community development and city government in community development and city government in Amanda Doreson Amanda Doreson Pittsburgh, Pennsylvania. is a second-year master of public Pittsburgh, Pennsylvania. is a second-year master of public administration student with a specialization in man- administration student with a specialization in management of public and nonprofit organizations. Prior agement of public and nonprofit organizations. Prior Managing Editor to attending NYU Wagner, she held communications Managing Editor to attending NYU Wagner, she held communications Emma Hersh is a second-year master of public and fundraising roles at a reproductive-rights orga- Emma Hersh is a second-year master of public and fundraising roles at a reproductive-rights orga- administration candidate specializing in public policy nization as well as a Jewish philanthropic organiza- administration candidate specializing in public policy nization as well as a Jewish philanthropic organiza- analysis. Her work experience includes consulting for a tion. This past summer, Amanda worked at the NYC analysis. Her work experience includes consulting for a tion. This past summer, Amanda worked at the NYC non-profit economic development corporation, serving Department of Health performing an evaluation of non-profit economic development corporation, serving Department of Health performing an evaluation of as policy adviser to two city-council members, and field New York City’s Healthy Teens’ Initiative. She has also as policy adviser to two city-council members, and field New York City’s Healthy Teens’ Initiative. She has also organizing for a number of local, state, and national written many policy reports on estimating impacts of organizing for a number of local, state, and national written many policy reports on estimating impacts of political campaigns. Emma received her bachelor of arts foundations on the local legislative landscape. Amanda political campaigns. Emma received her bachelor of arts foundations on the local legislative landscape. Amanda from Trinity University (San Antonio, Texas) in urban graduated summa cum laude from Washington Uni- from Trinity University (San Antonio, Texas) in urban graduated summa cum laude from Washington Uni- studies and sociology, and she holds a certification in versity in St. Louis with a bachelor’s degree in political studies and sociology, and she holds a certification in versity in St. Louis with a bachelor’s degree in political non-profit management from the University of Texas at science and women’s studies. non-profit management from the University of Texas at science and women’s studies. San Antonio. A native of Bethesda, Maryland, she looks San Antonio. A native of Bethesda, Maryland, she looks forward to returning to her hometown postgraduation REVIEWERS forward to returning to her hometown postgraduation REVIEWERS to work in public service. to work in public service.

Boykin Clarke is a first-year master of public admin- Boykin Clarke is a first-year master of public admin- Online Editor istration student specializing in international policy Online Editor istration student specializing in international policy Diana Huynh is a second-year master of public and management. He has a bachelor of arts in interna- Diana Huynh is a second-year master of public and management. He has a bachelor of arts in interna- administration candidate specializing in public tional affairs and African studies from the University of administration candidate specializing in public tional affairs and African studies from the University of policy analysis. Her interests lie in domestic policy Georgia in Athens. Prior to attending NYU Wagner, he policy analysis. Her interests lie in domestic policy Georgia in Athens. Prior to attending NYU Wagner, he and politics, particularly campaign finance and ballot worked with both domestic non-profit organizations and politics, particularly campaign finance and ballot worked with both domestic non-profit organizations reformation. On the side, she is studying the viability and international private corporations as a community reformation. On the side, she is studying the viability and international private corporations as a community outreach specialist helping both types of organizations outreach specialist helping both types of organizations

Biographies 117 Biographies 117 align their missions with the interests and needs of trafficking in informal and formal settings, including align their missions with the interests and needs of trafficking in informal and formal settings, including low-income, underserved communities. as a panelist and guest lecturer. She has four years of low-income, underserved communities. as a panelist and guest lecturer. She has four years of management-level non-profit experience and received management-level non-profit experience and received Emma Taya Darch is a 2012 master of public admin- an executive certificate in non-profit management Emma Taya Darch is a 2012 master of public admin- an executive certificate in non-profit management istration candidate in international public policy from Georgetown University in 2006. istration candidate in international public policy from Georgetown University in 2006. and non-profit management. She holds an L.L.B. and non-profit management. She holds an L.L.B. from the University of Cape Town, South Africa. Barbara Kiviat is a master of public administration can- from the University of Cape Town, South Africa. Barbara Kiviat is a master of public administration can- Before attending NYU Wagner, she worked in Dar es didate specializing in public policy analysis and is also a Before attending NYU Wagner, she worked in Dar es didate specializing in public policy analysis and is also a Salaam, Tanzania, where she assisted in the launching David Bohnett Public Service Fellow. She holds a bach- Salaam, Tanzania, where she assisted in the launching David Bohnett Public Service Fellow. She holds a bach- of a job recruitment agency for people with disabili- elor of arts in the Writing Seminars from Johns Hop- of a job recruitment agency for people with disabili- elor of arts in the Writing Seminars from Johns Hop- ties. She also coordinated a project on trade capac- kins University and a master of arts in journalism from ties. She also coordinated a project on trade capac- kins University and a master of arts in journalism from ity building in agriculture at UNIDO. A pan-Africa Columbia University. She works as a research assistant ity building in agriculture at UNIDO. A pan-Africa Columbia University. She works as a research assistant optimist, Taya plans to return to the continent upon at the Financial Access Initiative, a research consortium optimist, Taya plans to return to the continent upon at the Financial Access Initiative, a research consortium completion of her studies. housed at NYU Wagner. Barbara previously worked as a completion of her studies. housed at NYU Wagner. Barbara previously worked as a journalist, most recently covering business and economics journalist, most recently covering business and economics Susan Hayes is a master of public administration at Time magazine, and she continues to freelance. Susan Hayes is a master of public administration at Time magazine, and she continues to freelance. candidate specializing in health policy. Prior to NYU candidate specializing in health policy. Prior to NYU Wagner, she had a lengthy career as a magazine edi- Steven Kohn is a first-year master of public admin- Wagner, she had a lengthy career as a magazine edi- Steven Kohn is a first-year master of public admin- tor and writer, including senior staff positions at istration student with a specialization in international tor and writer, including senior staff positions at istration student with a specialization in international Woman’s Day and National Geographic Kids. She has policy and management. Steven has a bachelor of arts Woman’s Day and National Geographic Kids. She has policy and management. Steven has a bachelor of arts a longstanding interest in health and has written and from Georgia State University in community psychol- a longstanding interest in health and has written and from Georgia State University in community psychol- edited articles on health topics for numerous maga- ogy and a post-baccalaureate certificate in non-profit edited articles on health topics for numerous maga- ogy and a post-baccalaureate certificate in non-profit zines, including Natural Health, Parent & Child, Pre- management and fundraising from Louisiana State zines, including Natural Health, Parent & Child, Pre- management and fundraising from Louisiana State vention, and Weight Watchers. She is the co-author, University, Shreveport. Steven’s public service experi- vention, and Weight Watchers. She is the co-author, University, Shreveport. Steven’s public service experi- with Naomi Steiner, M.D., a developmental-behav- ence includes a service year with AmeriCorps NCCC with Naomi Steiner, M.D., a developmental-behav- ence includes a service year with AmeriCorps NCCC ioral pediatrician at Tufts Medical Center, of 7 Steps Class 14 of 2008. He also spent a year as a freelance ioral pediatrician at Tufts Medical Center, of 7 Steps Class 14 of 2008. He also spent a year as a freelance to Raising a Bilingual Child. Susan holds an A.B. in grant writer for the city of Huntsville, Texas, focusing to Raising a Bilingual Child. Susan holds an A.B. in grant writer for the city of Huntsville, Texas, focusing English from Dartmouth College. his efforts on affordable housing and environmental English from Dartmouth College. his efforts on affordable housing and environmental issues. Steven currently moonlights as a tutor on the issues. Steven currently moonlights as a tutor on the Patrick Hess is a first-year master of urban planning weekends, but once completed with school, he seeks Patrick Hess is a first-year master of urban planning weekends, but once completed with school, he seeks candidate specializing in economic development and an international engagement to work on sustainable candidate specializing in economic development and an international engagement to work on sustainable environmental sustainability. Patrick holds a bachelor community building. environmental sustainability. Patrick holds a bachelor community building. of arts degree in history from Boston College and a of arts degree in history from Boston College and a master of science in teaching degree in bilingual edu- David Krantz is a freelance journalist whose work master of science in teaching degree in bilingual edu- David Krantz is a freelance journalist whose work cation from Fordham University. A former Ameri- has been published worldwide by the Associated Press, cation from Fordham University. A former Ameri- has been published worldwide by the Associated Press, Corps volunteer and New York City Teaching Fellow, ESPN.com, and the Jerusalem Post. An associate edi- Corps volunteer and New York City Teaching Fellow, ESPN.com, and the Jerusalem Post. An associate edi- he currently serves as the assessment director and sus- tor of PresenTense magazine, David completed his first he currently serves as the assessment director and sus- tor of PresenTense magazine, David completed his first tainability coordinator at PS/MS 161 in West Harlem. master’s degree at the University of California, Berke- tainability coordinator at PS/MS 161 in West Harlem. master’s degree at the University of California, Berke- Previously, he worked in microfinance development ley, Graduate School of Journalism. He is a first-year Previously, he worked in microfinance development ley, Graduate School of Journalism. He is a first-year with ACCION International and the construction of student in the Wagner-Skirball dual-degree program in with ACCION International and the construction of student in the Wagner-Skirball dual-degree program in affordable housing with Habitat for Humanity. non-profit management and Judaic studies. affordable housing with Habitat for Humanity. non-profit management and Judaic studies.

Kate Horner is a master of public administration Brian Marson is a class of 2011 master of public Kate Horner is a master of public administration Brian Marson is a class of 2011 master of public candidate whose primary research interest is the inter- administration student specializing in public policy candidate whose primary research interest is the inter- administration student specializing in public policy section of women’s rights, power dynamics, and inter- analysis. He studied political science at Carleton Col- section of women’s rights, power dynamics, and inter- analysis. He studied political science at Carleton Col- national development. Before coming to NYU Wagner, lege, from which he graduated in 2004. His work his- national development. Before coming to NYU Wagner, lege, from which he graduated in 2004. His work his- Kate worked several years for an international anti- tory includes medical journalism for a leading trade Kate worked several years for an international anti- tory includes medical journalism for a leading trade trafficking organization and was a leader in commu- publication and numerous political internships. He trafficking organization and was a leader in commu- publication and numerous political internships. He nity organizing against trafficking in the Washington, is currently working on developing a predictions nity organizing against trafficking in the Washington, is currently working on developing a predictions D.C., area. She has frequently spoken publicly about market for a social venture-capital organization. D.C., area. She has frequently spoken publicly about market for a social venture-capital organization.

118 Vol. XVIII, 2010–2011 The Wagner Review 118 Vol. XVIII, 2010–2011 The Wagner Review Michael Patullo is a master of public administra- financial contract language for Goldman Sachs. Her Michael Patullo is a master of public administra- financial contract language for Goldman Sachs. Her tion candidate specializing in public policy analysis. interest in health care stems from her undergraduate tion candidate specializing in public policy analysis. interest in health care stems from her undergraduate Prior to attending NYU Wagner, he worked as pol- studies in health management and policy at George- Prior to attending NYU Wagner, he worked as pol- studies in health management and policy at George- icy analyst at the Institute for Children and Poverty, town University. icy analyst at the Institute for Children and Poverty, town University. studying the extent and effects of family homeless- studying the extent and effects of family homeless- ness in the U.S. He also led several large renewable- Angela Cheng is a master of public administration ness in the U.S. He also led several large renewable- Angela Cheng is a master of public administration energy research studies for government agencies candidate specializing in public policy analysis. She energy research studies for government agencies candidate specializing in public policy analysis. She and non-profit organizations as a post-baccalaureate serves as co-chair of NYU Wagner’s Students for and non-profit organizations as a post-baccalaureate serves as co-chair of NYU Wagner’s Students for research fellow. His research interests include domes- Criminal Justice Reform. She is a program associate research fellow. His research interests include domes- Criminal Justice Reform. She is a program associate tic poverty, public policy formation, spatial analysis, at the Open Society Foundations, where she supports tic poverty, public policy formation, spatial analysis, at the Open Society Foundations, where she supports and renewable-energy development. Michael holds grant making that focuses on reducing mass incar- and renewable-energy development. Michael holds grant making that focuses on reducing mass incar- a bachelor of science degree in secondary education ceration, eliminating harsh punishment, and securing a bachelor of science degree in secondary education ceration, eliminating harsh punishment, and securing with a minor in geography from Pennsylvania State a fair and equitable system of justice in the United with a minor in geography from Pennsylvania State a fair and equitable system of justice in the United University’s Schreyer Honors College. States. Previously, she worked for Lawyers Alliance University’s Schreyer Honors College. States. Previously, she worked for Lawyers Alliance for New York. Angela received a B.A. in politics from for New York. Angela received a B.A. in politics from Laura Robitzek is a master of public administra- New York University with minors in French and Laura Robitzek is a master of public administra- New York University with minors in French and tion candidate with a specialization in international journalism. tion candidate with a specialization in international journalism. policy and management. She holds a bachelor of arts policy and management. She holds a bachelor of arts degree in economics and international development Caitlin Gokey is a 2011 master of public administra- degree in economics and international development Caitlin Gokey is a 2011 master of public administra- from Smith College. Laura has worked for an eclec- tion candidate serving her second year as editor for from Smith College. Laura has worked for an eclec- tion candidate serving her second year as editor for tic group of international non-profits, ranging from The Wagner Review. Her academic specialization is tic group of international non-profits, ranging from The Wagner Review. Her academic specialization is environmental to educational, and anticipates a career international policy and management with an empha- environmental to educational, and anticipates a career international policy and management with an empha- as an executive director or chief operating officer of a sis on human rights. She has a bachelor’s degree in as an executive director or chief operating officer of a sis on human rights. She has a bachelor’s degree in similar organization. Currently she is working in the English and creative writing from the University of similar organization. Currently she is working in the English and creative writing from the University of foreign policy department of the William J. Clinton Colorado-Boulder. Before attending NYU Wagner, foreign policy department of the William J. Clinton Colorado-Boulder. Before attending NYU Wagner, Foundation. Originally from Auburn, Maine, Laura’s Caitlin served for three years as a Peace Corps volun- Foundation. Originally from Auburn, Maine, Laura’s Caitlin served for three years as a Peace Corps volun- interests include international policy, food security, teer in Namibia. She now works as a recruiter for the interests include international policy, food security, teer in Namibia. She now works as a recruiter for the and disaster preparedness and relief. Peace Corps at NYU. and disaster preparedness and relief. Peace Corps at NYU.

Sarah Schwimmer is a master of public administra- Effie O. Johnson is a master of public administra- Sarah Schwimmer is a master of public administra- Effie O. Johnson is a master of public administration candidate with a specialization in international tion candidate specializing in international policy tion candidate with a specialization in international tion candidate specializing in international policy policy and management. Prior to enrolling at NYU, and management. Johnson previously worked as policy and management. Prior to enrolling at NYU, and management. Johnson previously worked as she spent six years in Washington, D.C., where she a staff assistant in the district office of U.S. Repre- she spent six years in Washington, D.C., where she a staff assistant in the district office of U.S. Repre- worked for World Wildlife Fund and the United sentative Jim Cooper and interned for the National worked for World Wildlife Fund and the United sentative Jim Cooper and interned for the National States Senate. She currently works for a start-up non- Democratic Institute for International Affairs, where States Senate. She currently works for a start-up non- Democratic Institute for International Affairs, where profit focused on improving quality of life in rural she worked on development programs. Her academic profit focused on improving quality of life in rural she worked on development programs. Her academic Uganda. Originally from Chicago, Sarah is especially interests include democratization, conflict resolution, Uganda. Originally from Chicago, Sarah is especially interests include democratization, conflict resolution, interested in the relationship between natural-re- and the political and economic development of sub- interested in the relationship between natural-re- and the political and economic development of sub- source management and poverty, and she spends her Saharan Africa and the Middle East. She previously source management and poverty, and she spends her Saharan Africa and the Middle East. She previously free time training for the NYC Marathon. interned for the United Nations Development group free time training for the NYC Marathon. interned for the United Nations Development group and currently serves as the global communications and currently serves as the global communications SENIOR EDITORS officer for the Wagner Student Alliance for Africa. SENIOR EDITORS officer for the Wagner Student Alliance for Africa. Johnson earned an A.B. in government at Harvard Johnson earned an A.B. in government at Harvard Nicole Krop Casey is a second-year master of pub- University in 2008. Nicole Krop Casey is a second-year master of pub- University in 2008. lic administration candidate, focusing on health care lic administration candidate, focusing on health care public finance. She interns for NewYork-Presbyterian Tom Ogletree is a master of public administra- public finance. She interns for NewYork-Presbyterian Tom Ogletree is a master of public administra- Hospital in international services business develop- tion candidate specializing in public policy and Hospital in international services business develop- tion candidate specializing in public policy and ment. Nicole’s interests lie in health policy analy- currently works in the corporate social engagement ment. Nicole’s interests lie in health policy analy- currently works in the corporate social engagement sis and economics of the health care sector. Before division of Changing Our World, a fundraising sis and economics of the health care sector. Before division of Changing Our World, a fundraising attending NYU Wagner full-time, Nicole reviewed and philanthropy consulting firm. Before coming attending NYU Wagner full-time, Nicole reviewed and philanthropy consulting firm. Before coming

Biographies 119 Biographies 119 to NYU Wagner, he developed communication Stacy Edwards is a master of public administration to NYU Wagner, he developed communication Stacy Edwards is a master of public administration and messaging strategy for the Gay and Lesbian candidate specializing in public policy analysis. She and messaging strategy for the Gay and Lesbian candidate specializing in public policy analysis. She Alliance Against Defamation and has prior experi- holds a bachelor of arts in sociology and communi- Alliance Against Defamation and has prior experi- holds a bachelor of arts in sociology and communi- ence in budget oversight and production manage- cation from Texas A&M University. Because of her ence in budget oversight and production manage- cation from Texas A&M University. Because of her ment for television and non-profit theater. Tom wide variety of interests, Stacy has held communica- ment for television and non-profit theater. Tom wide variety of interests, Stacy has held communica- holds a bachelor of arts degree in English from Yale tion, marketing, and organizing roles at a number of holds a bachelor of arts degree in English from Yale tion, marketing, and organizing roles at a number of University. organizations. These include the food organization University. organizations. These include the food organization Basis, the social network Jumo, Habitat for Human- Basis, the social network Jumo, Habitat for Human- Laura Rivera is a master of public administration ity, and the Wagner Food Policy Network. She is Laura Rivera is a master of public administration ity, and the Wagner Food Policy Network. She is candidate with a specialization in health policy. She currently interning as a social media strategist at candidate with a specialization in health policy. She currently interning as a social media strategist at holds a bachelor of arts degree in English and Ameri- StrawberryFrog. holds a bachelor of arts degree in English and Ameri- StrawberryFrog. can studies from Barnard College. Currently, she is can studies from Barnard College. Currently, she is the director of external affairs for a community health Amy Finnegan is a master of public administration the director of external affairs for a community health Amy Finnegan is a master of public administration center. Laura’s interests include public health and candidate with a specialization in international pol- center. Laura’s interests include public health and candidate with a specialization in international pol- economic justice issues. icy and management. Amy is interested in corporate economic justice issues. icy and management. Amy is interested in corporate social responsibility and the intersection of industrial social responsibility and the intersection of industrial Carly Rothman is a master of public administra- policy and ethical trading initiatives. Amy is origi- Carly Rothman is a master of public administra- policy and ethical trading initiatives. Amy is origi- tion candidate. A graduate of Yale University, she is nally from South Dakota and holds a bachelor of arts tion candidate. A graduate of Yale University, she is nally from South Dakota and holds a bachelor of arts currently the public education manager for the Food degree in political science from the Honors College currently the public education manager for the Food degree in political science from the Honors College Bank For New York City. Previously, she worked as a at South Dakota State University. Amy has worked Bank For New York City. Previously, she worked as a at South Dakota State University. Amy has worked reporter for The Star-Ledger in New Jersey, where she and studied in Estonia, Guatemala, and Jordan and reporter for The Star-Ledger in New Jersey, where she and studied in Estonia, Guatemala, and Jordan and covered local news, health, and the state’s non-profit intends to pursue a doctoral degree in public policy covered local news, health, and the state’s non-profit intends to pursue a doctoral degree in public policy community, and served as a graduate intern at the studies. community, and served as a graduate intern at the studies. Center for Non-Profits in New Jersey. Center for Non-Profits in New Jersey. Alexander Habib is a master of public administra- Alexander Habib is a master of public administra- EDITORS tion candidate specializing in public policy analysis. EDITORS tion candidate specializing in public policy analysis. He holds a bachelor of arts in political science from He holds a bachelor of arts in political science from Nora Anderson is a master of public administration Rowan University. Born and raised in New Jersey, his Nora Anderson is a master of public administration Rowan University. Born and raised in New Jersey, his candidate specializing in international health policy background is in politics and state government. Alex candidate specializing in international health policy background is in politics and state government. Alex and management. She is currently an intern at the has worked in emergency management, three state and management. She is currently an intern at the has worked in emergency management, three state United Nations Children’s Fund in the Knowledge legislative offices, and a number of successful cam- United Nations Children’s Fund in the Knowledge legislative offices, and a number of successful cam- Management unit. Prior to attending NYU Wag- paigns. In 2008 he was named a Rising Star in N.J. Management unit. Prior to attending NYU Wag- paigns. In 2008 he was named a Rising Star in N.J. ner, Nora worked as both a staffer and consultant for Politics. He currently serves as chief of staff to a mem- ner, Nora worked as both a staffer and consultant for Politics. He currently serves as chief of staff to a mem- domestic political campaigns. She received her bach- ber of New Jersey’s General Assembly and advises on domestic political campaigns. She received her bach- ber of New Jersey’s General Assembly and advises on elor of arts in political science with a concentration issues including but not limited to education, public elor of arts in political science with a concentration issues including but not limited to education, public in social and economic justice from the University of finance, commerce, economic development, housing, in social and economic justice from the University of finance, commerce, economic development, housing, North Carolina in Chapel Hill. and the environment. North Carolina in Chapel Hill. and the environment.

Supurna Banerjee is a master of public admin- Li Huang is a master of public administration can- Supurna Banerjee is a master of public admin- Li Huang is a master of public administration can- istration candidate with a specialization in inter- didate with a specialization in financial management istration candidate with a specialization in inter- didate with a specialization in financial management national policy and management. She worked as and public finance. She previously participated in an national policy and management. She worked as and public finance. She previously participated in an an editor in the book publishing industry for seven international dual-degree program between NYU and an editor in the book publishing industry for seven international dual-degree program between NYU and years and currently acts as the co-director of Write Southwest Jiaotong University from 2005 to 2009 and years and currently acts as the co-director of Write Southwest Jiaotong University from 2005 to 2009 and on Brooklyn, a company she co-founded that pro- holds a bachelor of science degree in integrated digi- on Brooklyn, a company she co-founded that pro- holds a bachelor of science degree in integrated digi- vides writing and consulting services to aspiring tal media from New York University and a bachelor of vides writing and consulting services to aspiring tal media from New York University and a bachelor of authors and nonprofit organizations. Supurna, who arts degree in communication studies from Southwest authors and nonprofit organizations. Supurna, who arts degree in communication studies from Southwest is interested in policy work in the areas of humani- Jiaotong University in China. Li anticipates a career is interested in policy work in the areas of humani- Jiaotong University in China. Li anticipates a career tarian relief issues, human rights, women’s rights, as a financial analyst or investment counselor. Origi- tarian relief issues, human rights, women’s rights, as a financial analyst or investment counselor. Origi- and postconflict development, graduated with nally from Hunan, China, Li Huang’s interests include and postconflict development, graduated with nally from Hunan, China, Li Huang’s interests include a bachelor of arts degree from Amherst College. financial policy and strategic communication. a bachelor of arts degree from Amherst College. financial policy and strategic communication.

120 Vol. XVIII, 2010–2011 The Wagner Review 120 Vol. XVIII, 2010–2011 The Wagner Review Carlyn Maksymuk is a master of urban planning newspaper in Kyiv, Ukraine. She enjoys volun- Carlyn Maksymuk is a master of urban planning newspaper in Kyiv, Ukraine. She enjoys volun- candidate. After obtaining a degree in landscape archi- teering for Kiva and playing softball. She looks candidate. After obtaining a degree in landscape archi- teering for Kiva and playing softball. She looks tecture from Cornell University, Carlyn conducted forward to deepening her knowledge of interna- tecture from Cornell University, Carlyn conducted forward to deepening her knowledge of interna- research on zoo exhibit design in Europe. She has tional development, social entrepreneurship, and research on zoo exhibit design in Europe. She has tional development, social entrepreneurship, and since worked as a landscape-architectural designer on policy analysis while at NYU Wagner. since worked as a landscape-architectural designer on policy analysis while at NYU Wagner. diverse projects such as animal exhibits for the Bronx diverse projects such as animal exhibits for the Bronx Zoo, a Brooklyn streetscape, and a LEED-certified Allie Skayne is a master of public administra- Zoo, a Brooklyn streetscape, and a LEED-certified Allie Skayne is a master of public administra- recreation facility in Prospect Park, among others. tion candidate specializing in international policy. recreation facility in Prospect Park, among others. tion candidate specializing in international policy. In those roles, she gained an interest in sustainable She received a bachelor of arts degree from New In those roles, she gained an interest in sustainable She received a bachelor of arts degree from New design and environmental compliance. Carlyn hopes York University in English and American literature. design and environmental compliance. Carlyn hopes York University in English and American literature. to one day work to develop environmental policy and Allie currently works in New York Mayor Michael to one day work to develop environmental policy and Allie currently works in New York Mayor Michael regulations that will enhance environmental sustain- Bloomberg’s Correspondence Unit as a writer. Her regulations that will enhance environmental sustain- Bloomberg’s Correspondence Unit as a writer. Her ability and public health in our urban areas. academic interests include New York City public pol- ability and public health in our urban areas. academic interests include New York City public policy, women’s issues, and international development. icy, women’s issues, and international development. Elisabeth Sewall is a first-year NYU Wagner Elisabeth Sewall is a first-year NYU Wagner student with a background in journalism, human Valerie Stevens is a master of public administra- student with a background in journalism, human Valerie Stevens is a master of public administra- rights, and non-profit program management. tion candidate studying international development rights, and non-profit program management. tion candidate studying international development Most recently, she managed a volunteer program and finance. She holds a bachelor of arts with honors Most recently, she managed a volunteer program and finance. She holds a bachelor of arts with honors at Physicians for Human Rights that provided in applied economics from Queen’s University and a at Physicians for Human Rights that provided in applied economics from Queen’s University and a asylum seekers with access to medical assistance juris doctor from the University of Toronto. Before asylum seekers with access to medical assistance juris doctor from the University of Toronto. Before to support their legal claims for asylum in the attending NYU Wagner, Valerie was an attorney at to support their legal claims for asylum in the attending NYU Wagner, Valerie was an attorney at U.S. Earlier, Sewall conducted research on con- Hodgson Russ, specializing in mergers and acquisi- U.S. Earlier, Sewall conducted research on con- Hodgson Russ, specializing in mergers and acquisi- temporary Ukrainian national identity through a tions and antitrust law. temporary Ukrainian national identity through a tions and antitrust law. Fulbright fellowship and worked at the Kyiv Post Fulbright fellowship and worked at the Kyiv Post

Biographies 121 Biographies 121 122 Vol. XVIII, 2010–2011 The Wagner Review 122 Vol. XVIII, 2010–2011 The Wagner Review