Investing in Our Quality of Life
It is often difficult to put a price tag on the intrinsic worth of something, particularly if it is associated with quality of life. Such is the case in attempting to determine the value of Texas’ state parks.
The Lone Star State has 117 state parks. They range from historical sites to natural areas such as forests, canyons, and beaches. While the primary purposes of different parks vary, there are certain common elements in the special outdoor adventures available at these areas that serve to enhance our daily lives.
Over the past several years, the budgets for the operations of these parks, which are scattered throughout the state, have steadily declined to put Texas at or near the bottom of all states in per-capita investment. Even so, Texas ranks close to the top for all states in generating income back into the system, which indicates that visitors and residents see the value of these kinds of facilities.
Many state parks incorporate irreplaceable natural beauty or historically significant sites. Repairing and upgrading the parks is, of course, not without its costs. However, doing so is imperative; investments in parks tend to lead to more usage and increased revenues, while reductions in funding tend to have the opposite effect.
The Texas State Parks Advisory Committee has reported a repair backlog amounting to more than $431 million, in addition to the funds required to provide for ongoing needs such as staff, equipment, and development.
In a couple of weeks, Texans have an opportunity to make a difference in the future of our parks. On Tuesday, November 6, 2007, 16 propositions go before voters as proposed constitutional amendments.
Proposition 4, which stems from Senate Joint Resolution 65, was developed during the 80th Legislature and pertains to the authorization of funds to pay for maintenance, repair, construction, and improvement projects sponsored by nine state agencies.
The entities that will benefit from the passage of Proposition 4 include the Texas Parks and Wildlife Department, Historical Commission, Department of Public Safety, Department of State Health Services, Department of Aging and Disability Services, Youth Commission, Building and Procurement Commission, Adjutant General’s Department, and Department of Criminal Justice.
If voters approve the amendment (which authorizes the issuance of up to $1 billion in bonds payable from the general revenues), the Texas Parks and Wildlife Department will receive close to $52 million during the next two years. These monies are part of Texas lawmakers’ efforts to provide additional funding for state parks.
A little over half of this amount (about $27 million) will be designated for major repairs at parks across the state, some of which are in desperate straits. The remaining $25 million will help fund long-term preservation of the Battleship TEXAS. This investment stands to have a substantial economic return in terms of increasing tourism and spending in and around state parks.
An additional $48 million would be used for repairs at 20 historic sites and courthouses and also to aid in the continuance of the Texas Historic Courthouse Preservation Program’s matching grants.
Along with the funds available for use in upgrading parks, historic sites, and courthouses, Proposition 4 would also provide up to $200 million for the Department of Public Safety to improve crime labs, prepare for future expected increases in caseloads, and strengthen overall crime-fighting programs.
Moreover, the Proposition would help pay for repair and renovation of mental health state schools and hospitals, construction of new incarceration facilities, and enhancement of Texas National Guard readiness centers, among many other needs.
Almost everyone in Texas will benefit to some degree from the passage of Proposition 4. It will also be a good thing for the state economy. A recent study completed by my firm showed that municipal parks alone (which receive grants from the Parks and Wildlife Department) generate a notable tourism stimulus that provides an excellent return on public investment. On a purely economic basis, approval of these funds makes sense; when you add the enhancement to our quality of life, it is a no-brainer.
posted @ 07:58 AM CST [link]
Friday, October 19, 2007
Success in Fighting Cancer
It’s always a good thing when something works according to plan. On December 23, 1971, President Nixon declared “war on cancer” by signing the National Cancer Act.
Since that time, the battle against the second leading cause of death in the US has moved steadily forward. With the announcement this week that cancer death rates are dropping faster than ever, there is evidence that we are making significant progress in this highly important life and death struggle.
During the decade beginning in 1993, cancer deaths fell by 1.1% per year. From 2002 to 2004, the rate was 2.1%. While this change may seem small, for every percentage point drop, there are 5,000 fewer people dying.
In addition to the personal pain and suffering inflicted on individuals and families by cancer, the disease also places a substantial economic burden on our society as a whole. Factors include direct costs—payments and resources used for treatment, care, and rehabilitation, and indirect costs—the loss of economic output due to days off work and premature deaths. Additionally, there are hidden costs that include health insurance premiums along with non-medical expenses such as care for children and the elderly, transportation, personal items (wigs, prostheses, etc.), and housekeeping assistance.
In 1990, cancer-related direct costs in the US were approximately $27.5 billion. Costs jumped to $60 billion by 2000, and saw a hike to $74 billion over the next five years. In 2005, the total cost of cancer in the US (direct, indirect, and hidden) reached nearly $210 billion, considerably more than the $157 billion four years earlier.
Every 30 seconds, someone in the US is diagnosed with cancer, including approximately 8,000 children this year between the ages of 1 and 14. Treatment can be difficult and expensive to patients, insurers, and state and federal health and human services entities.
In Texas this year, an estimated 95,310 cases of cancer will be diagnosed. Because of new technology and advances in treatment, however, only around 37,000 cancer patients will die in 2007.
Although scientists still do not know what causes cancer, researchers believe cancer is triggered by several factors including genetics, diet, and occupation. Medical research is frequently achieving breakthroughs in cancer detection and therapy. In 2006, approximately $116 billion annually was flowing into investments in medical and health research in the US.
Such research offers many benefits. Enhanced emphasis on cancer research serves as a catalyst for growth in biosciences industries. It helps create jobs through increases in staff and facilities and expanded business services needed by research institutes, as well as other multiplier effects. Research and development facilities can also generate significant revenues in the form of licensing and royalty streams. As findings are commercialized, consideration for startup companies is enriched.
Furthermore, medical research can help reduce the mortality and adverse health consequences from cancer and benefit not only the individuals involved, but society as a whole. Historical gains from increased longevity have been enormous. One study places the value of these gains at some $3.2 trillion annually from post-1970. The study additionally concluded that a 1% decrease in the death rate from cancer is worth about $500 billion a year.
As a result of early detection and greater access to constantly improved treatment, death rates from cancer in Texas and the US are continuing to drop. Naturally, there are costs associated with fighting the war on cancer, but their impact is far less than the alternative and far more valuable to the individuals involved and society as a whole.
It’s been a long haul since President Nixon issued his proclamation, and there is still a long road ahead. Determination and perseverance evidenced in medical research will undoubtedly be the keys to future successes. Texans are about to vote on an amendment to provide funding for a major cancer research initiative. The rates of return to medical research and their prospects for promoting economic development are enormous. This effort would be a notable step forward for the future growth of Texas and the future health of us all.
posted @ 08:07 AM CST [link]
Friday, October 12, 2007
Wake-up Call
Last week, the world recognized the 50th anniversary of the former Soviet Union’s first artificial satellite launch into space. Dubbed “Sputnik,” Russian for “fellow traveler,” the small, highly polished aluminum sphere less than two feet in diameter gave a visual and verbal representation to much of the cold war and heated up the space race between the world’s two major powers. I was only four years-old at the time, but I vividly remember everyone in my neighborhood camped on our lawns straining for a glimpse. We were all convinced that our freedom was in peril, and it was a collective wake-up call to scientists, politicians, and citizens alike.
Almost four months later in January 1958, the US launched its first satellite, and the National Aeronautics and Space Administration (NASA) was born. By 1969, men were walking on the moon. The amazing journey from Sputnik to the moon propelled us down the pathway to new dimensions of human existence. My generation grew up glued to television sets for every launch and splashdown, and the Mercury, Gemini, and Apollo astronauts held a place alongside Elvis, the Beatles, and Mickey Mantle in our collective psyche.
The space-related competition between the US and Soviets led not only to remarkable events occurring outside our atmosphere, but also to benefits in our daily lives which have been nothing short of incredible.
“Space age” became a common phrase in our vernacular, conjuring images of things new, exciting, innovative, wondrous, rewarding, and unique. Link an item or business to space, and people normally show increased interest.
Texas has a particular association with space research and development, supported by the contributions made by the Johnson Space Center. The annual economic impact on Houston and Texas includes billions in total spending and tens of thousands of jobs. The organization provides approximately $72 million in grants and contracts to Texas institutions of higher education and another $44 million to non-profit groups working in the state.
Thousands of items on the market today grew out of space-related research and development since Sputnik. In some cases, the linkages to space are clear, yet there are many other products we have become so accustomed to that we sometimes fail to appreciate any space connection. In fact, today, there are over 30,000 space science spin-offs and technologies that directly benefit those of us whose footprints will never leave this earth.
There are hundreds of important breakthroughs that trace their genesis to the Sputnik trip to space. I’ll just give a few examples. Space-age technology has impacted education and business operations around the world through the advancement of computerized study. Because of satellites, we are better able to predict earth’s weather patterns and climate changes. Space science has also enabled us to boost our national defense with the creation of intercept missiles and the improvement of military monitoring techniques.
Moreover, light-weight, high-strength plastics have resulted from overcoming challenges faced in space as did the development of microwave proof and rechargeable electric heart pacemakers. Benefits are also evident in much of the food we eat as space-age innovations have provided longer shelf lives and highly nutritional products. Of course, when I was a kid, we all drank Tang to be like the astronauts.
Additionally, the creation of improved fireproof materials and water purification techniques should be noted, as well as enhanced life support systems, particularly those related to oceanography. Furthermore, space technology has provided us with the ability to develop high-quality and low-cost modular housing.
Recently, findings from researchers at NASA improved tire deflation techniques to lower the incidence of wrecks in high-speed chases, discovered ways to make flying smoother and safer with early turbulence warnings, and helped doctors diagnose and treat heart disease. NASA researchers even determined that tiny grooves on airline runways could lower the risk of hydroplaning. This technique is now being used at airports around the world, and when implemented on our nation’s highways, can reduce highway accidents by 85%. You can also thank NASA for global beacon locators which have saved more than 13,000 lives worldwide (latest count as of 2002), vital monitoring systems utilized in intensive care and cardiac care units, and the clarity and reliability of your long-distance phone system.
There are, of course, many special categories such as books, movies, clothing fibers, household items, toys, and even gadgets we think we can’t live without that owe their existence to achievements in space over the past half century. While the space program is expensive, the payoff is even bigger as the new discoveries are channeled into the rest of the economy.
When I consider all the economic and life-altering benefits we have received from space, I am reminded of the Field of Dreams movie that starred Kevin Costner. His “if you build it, they will come” belief might well be translated into possibilities created by space science along the lines of “if you imagine it, they will come up with ways to create it.” I look forward to see what “out of this world” benefits are in store for us in the future.
posted @ 08:28 AM CST [link]
Friday, October 5, 2007
Time-outs
Sometimes when things aren’t working as well as they could, a time-out is called to give participants an opportunity to retool, regroup, or rethink the situation in hopes of improvement in the future. It’s a common practice in a wide range of activities that run the gamut from athletic contests to child discipline to even the world of economics.
In businesses, especially those involved in global trade, there is a need for continually enhancing competitiveness, particularly with regard to labor and management relationships. There has always been an underlying tension between these forces, with each one trying to get the best of the other while keeping an eye toward the success of the enterprise.
Although the fuss over carving up the pie continues, the parameters have changed markedly. In the current framework confronting many traditional industries (such as airlines, automobiles, and steel), the paramount task is to ensure that there is a pie left to share—what was once a relatively minor consideration has blown into an unavoidable obsession.
International competition is not the only force that is causing a shift in the paradigm of labor-management relations. In addition to the unique necessities associated with meeting global demands are other internal and external challenges. These include growth and development of products and distribution, the inexorable outsourcing of many tasks to domestic and foreign firms, aging of skilled workers, and environmental concerns, as well as the myriad requirements to achieve sustainable expansion. Demographic changes are affecting employee availability and costs, and technology and the quest for efficiency often undermine job security.
While the city of Las Vegas may have a slogan that indicates what happens there stays there, in the world of business, what happens one place can have a ripple effect on innumerable other places and impact the lives of many more people than those initially involved in a situation or a controversy.
The recent United Auto Workers strike at General Motors (GM) and the quick settlement that followed may serve as a harbinger of things to come. It points to the dwindling effectiveness of strikes, as well as the changing balance of power in a market that provides little comfort or flexibility to its players.
GM has traditionally claimed a large market share of the auto industry in the US. A decade ago, it was responsible for nearly one out of every three cars purchased. Through August 2007, GM’s market share has been reduced to less than one in four vehicles sold across the nation, a loss of almost 10%.
The brief strike last month involved around 73,000 employees in 30 states. Had the work stoppage continued for any period of time, corollary industries such as suppliers and truckers who transport the automobiles to specific destinations, as well as automobile dealers, could have also seen their financial opportunities drastically reduced. The shutdown of parts suppliers’ operations would have affected about 3 million workers, and a fresh round of economic challenges might have loomed on the horizon.
Lingering difficulties at GM could have resulted in significant losses to the corporation and to its workers, and thus, resolving the issues quickly was equally imperative to labor and management alike. Both sides recognized just how much they needed each other, particularly at this time when the production of 2008 models is ramping up. Fortunately, the negotiations ended the strike rather quickly. Not everyone got what they wanted, but it seemed like the most favorable answer in the current climate. At least it was a step toward mutual understanding and appreciation of the evolving partnership between labor and management which must, of necessity often preclude the traditional goals of large wage and benefit increases in favor of sustainability. This meeting of the minds was certainly not the first sign of things to come; the concessions by airline workers in recent years are also indicative of evolving patterns.
Undoubtedly, it is best that strategies to cement such partnerships not be formulated during crises. Rather, it is far more advantageous if dialogue and cooperation can be ongoing between both parties, particularly in today’s rapidly changing marketplace. This “time-out,” which had little economic impact, may well presage a new era and a fundamental shift of the labor-management equilibrium.
posted @ 08:06 AM CST [link]