THE STATES AND LOCALITIES April 2013 #hackergov What can government learn from Silicon Valley? GOV04_Cover Final with fixes.indd 1 3/19/13 9:28 AM Protect Your Agency’s Mobile Data Meet the strictest regulatory standards for sensitive data protection. We’ll show you how to securely containerize proprietary agency information. good.com +1 866 7 BE GOOD __________Designer __________Creative Dir. 100 Blue Ravine Road Folsom, CA 95630 916-932-1300 __________Editorial __________Prepress 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 Page # __________Other ____________OK to go BLACK YELLOW MAGENTA CYAN VOL. 26, NO. 7 04.2013 FEATURES 26 GEEK SQUAD Should local government be run more like Silicon Valley? By John Buntin 34 GOING IT ALONE Flood-prone cities like Hoboken, N.J., aren’t waiting for another Superstorm Sandy. They’re taking matters into their own hands. By Jonathan Walters 40 ‘YOU’RE NOT GOING TO PLEASE EVERYBODY’ Fixing public pensions isn’t ever easy. But some states and cities have had success. By Liz Farmer 44 MESA RISING Steve Smith wants to remake his Arizona city. By Ryan Holeywell 50 COMPANY TOWNS When a city’s economy depends mostly on one employer, local leaders must make some tough decisions. By Mike Maciag 54 TEA TIME In one Georgia county, the Tea Party is running the show. By J. B. Wogan Code for America’s (CfA) Laura Meixell Cover: Notes tacked to a wall at CfA’s temporary headquarters in Louisville, Ky. PHOTO AND COVER PHOTO: DAVID KIDD PHOTO AND COVER PHOTO: DAVID April 2013 | GOVERNING 1 GOV04_01.indd 1 3/18/13 12:50 PM __________Designer __________Creative Dir. 100 Blue Ravine Road Folsom, CA 95630 916-932-1300 __________Editorial __________Prepress 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 Page # __________Other ____________OK to go BLACK YELLOW MAGENTA CYAN DEPARTMENTS 4 Publisher’s Desk 6 Letters OBSERVER 9 The Obamacare Loophole Red states are taking advantage of a drafting error in the law. 10 Locked-In Tuition Rates The University of Dayton will guarantee tuition over four years. 11 Gender-Neutral Laws Some states are removing gender- biased terms from statutes. 24 EPB POLITICS + POLICY PROBLEM SOLVER 14 Dispatch 58 Behind the Numbers Could 3-D printing be the next What words were uttered most often in governors’ big economic engine for cities? State of the State addresses this year? 16 Potomac Chronicle 60 Smart Management Republican governors think they States and localities run risks when they raise can get their party back on top. non-tax revenue. FLICKR/GAGE SKIDMORE 18 FedWatch 62 Better Government 16 What happened to the White Pay for performance sends all the wrong messages. House Offi ce of Urban Affairs? 64 Tech Talk 20 Health An infl ux of young lawmakers could lead to better A federal task force is holding up technology investments. a life-saving cancer test. 66 Public Money 22 Green Government It is possible to take some of the partisan heat out of States see insurers as allies in discussions over tax expenditures. climate change debates. 68 Last Look 24 Economic Engines A rocket ship embarks on a journey to fi nd a Private companies want to own new home. the broadband market. ARCHITECTS SPILLMAN FARMER 25 Urban Notebook It costs too much to build new 60 subways. Yet we need them. 2 GOVERNING | April 2013 GOV04_02.indd 2 3/18/13 12:52 PM __________Designer __________Creative Dir. 100 Blue Ravine Road Folsom, CA 95630 916-932-1300 __________Editorial __________Prepress 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 Page # __________Other ____________OK to go BLACK YELLOW MAGENTA CYAN THE WORLD IS OUR HOME YOU ARE OUR GUEST Look forward to the sort of relaxed, deep sleep in the air you’d usually only expect on the ground. We guarantee fully-fl at beds with direct aisle access in Pearl Business Class on all long-haul fl ights. When you fl y Diamond First Class, retire behind the doors of a private suite, in a luxurious leather 6’8” bed with a turndown service. Why do we go to such lengths? Because you are our guest. __________Designer __________Creative Dir. 100 Blue Ravine Road Folsom, CA 95630 916-932-1300 __________Editorial __________Prepress 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 5 25 50 75 95 100 Page # __________Other ____________OK to go BLACK YELLOW MAGENTA CYAN PUBLISHER’S DESK Publisher Erin Waters Executive Editor Zach Patton Editor-at-Large Paul W. Taylor Managing Editor Elizabeth Daigneau Senior Editors Tod Newcombe, Jonathan Walters Engaging Foundations Chief Copy Editor Miriam Jones; Copy Editor Elaine Pittman Staff Writers Liz Farmer, Ryan Holeywell, Dylan Scott, J.B. Wogan ast year Governing held a series of roundtables across Correspondents John Buntin, Alan Greenblatt Contributing Editors Alan Ehrenhalt, Penelope Lemov, John Martin, the country, in partnership with AARP, on the topic of Steve Towns livable communities. We visited Des Moines, Iowa; Lan- Columnists Katherine Barrett & Richard Greene, William Fulton, Peter A. L sing, Mich.; Philadelphia; Salt Lake City; and Washington, Harkness, Donald F. Kettl, Alex Marshall D.C. In planning and researching the content for those events, I found that behind every well run and livable community exists a Deputy Editor, Governing.com Caroline Cournoyer partner—a community foundation. Data Editor, Governing.com Mike Maciag At a time when local governments’ resources are stretched Social Media Specialist, Governing.com Brian Peteritas so thin, community foundations are stepping in to do some of Creative Director Kelly Martinelli the work that governments can no longer do, from maintaining Design Director & Photo Editor David Kidd public parks and public spaces to helping with service delivery Art Director Michelle Hamm in the community. They’re an important ally and one that gov- Illustrator Tom McKeith ernment needs. Production Director Stephan Widmaier In a recent conversation with Bob McNulty, founder and Chief Marketing Offi cer Margaret Mohr president of the nonprofi t Partners for Livable Communities, I Marketing Director Meg Varley-Keller learned about a handful of com- munity foundations that are doing Founder & Publisher Emeritus Peter A. Harkness great work in their communities. Advertising 202-862-8802 He specifi cally cited the Houston Associate Publisher, Infrastructure Marina Leight Endowment, Missouri’s Greater Associate Publisher, Finance Erica Pyatt Kansas City Community Founda- Account Director Jennifer Gladstone tion and the York County Commu- Account Managers Christin Evans, Kori Kemble, Kyle Koch, Joseph Lee nity Foundation in Pennsylvania, Offi ce Manager Alina Grant all of which have set high standards Digital Media Associate Elisabeth Frerichs in giving and accomplishments. Media Account Coordinators Hillary Leeb, Lauren Mandell, Kelly McEldrew, Cheleyne Summerhays I had the chance a few weeks Marketing/Classifi ed [email protected] ago to visit another great organiza- tion during a trip to California—the e.Republic Inc. CEO Dennis McKenna Erin Waters, Publisher Silicon Valley Community Founda- tion, which was just in the news Executive VP Cathilea Robinett CFO Paul Harney because Facebook founder Mark Zuckerberg announced that he’d CAO Lisa Bernard donated almost $500 million in stock to the organization. Elea- nor Clement Glass, chief of donor engagement and giving, told Reprint Information me that the foundation’s partnerships with local governments Reprints of all articles in this issue and past issues are available have been particularly successful, leading to a number of impres- (500 minimum). Please direct inquiries for reprints and licensing to Wright’s Media: 877-652-5295, [email protected] sive programs, including English language classes for more than 4,500 adults, after-school or summer math instruction for 6,000 Subscription/Circulation Service students and the planned development of 18,000 aff ordable hous- Eenie Yang [email protected] ing units in San Jose, among other eff orts. http://www.governing.com/subscribe Glass also said that public offi cials should consider that Governing (ISSN 0894-3842) is published monthly by e.Republic Inc., with offi ces foundations are an excellent way to engage citizens. Founda- at 1100 Connecticut Ave. N.W., Suite 1300, Washington, D.C. 20036 and at 100 Blue tions, she argued, have ideas too, and can invest resources to Ravine Road, Folsom, CA 95630. Telephone: 202-862-8802. Fax: 202-862-0032. Email: [email protected]. Periodical postage paid in Washington, D.C., and at create change that yields results. That’s something of interest additional mailing offi ces. Copyright 2013 e.Republic Inc. All rights reserved. Repro- to every government. duction in whole or in part without written permission of the publisher is prohibited. Governing, Governing.com and City & State are registered trademarks of e.Republic Governing will host another series of roundtables on livable Inc.; unauthorized use is strictly prohibited. U.S. subscription rates: Government communities again this year, which will focus in part on the role employees—free; all others—$19.95 for one year. Back issues $4.50. Foreign subscrip- of community foundations. If you’re interested in having us come tions: $74.95 in U.S. funds. Postmaster: Send address changes to Governing, 100 Blue Ravine Road, Folsom, CA, 95630. Subscribers: Enclose mailing label from past issue. to your community or have an idea to share, let me know. Allow six weeks. Member: BPA International. Made in the U.S.A. And as always, you can reach me at [email protected].