Links
Breakfast links: Slower or faster
Residents made traffic safer: Residents concerned about traffic and speeding in Arlington's Williamsburg neighborhood worked to create a plan and got it passed. Now a 4-lane road will become 2 with a median and bike lanes. (Post, HStreetLL)
Montgomery pushes Glenmont development: Eager to spur redevelopment at Glenmont, Montgomery's planning board is considering a "use it or lose it" bonus, giving owners extra density but only if move quickly. (Gazette)
Retail doesn't come to stations: A deal with Redbox a Redbox-like company to add kiosks to Metro stations never happened, but a kiosk for tours on the Mall did. The agency previously rejected ideas of selling food, so any meaningful retail in stations is now unlikely. (Examiner)
Bad bank deals hurt transit agencies: 12 big-city transit agencies, including WMATA, still pay millions every year for bad deals they made with banks pre-recession. This costs WMATA $11 million a year; NJ Transit loses $83 million. (Streetsblog)
House rejects transportation extremism: Maybe Democrats and Republicans aren't so far apart on transportation after all. A tea party-supported resolution to cut transportation spending failed 323 to 82, exposing divisions in the GOP. (Streetsblog)
Should poorer kids get priority at charters?: A task force will consider giving kids who live nearby a preference to get into DC charter schools. What about giving lower-income kids a preference as well, suggests DCFPI?
Bike bits: The Mount Vernon Trail will get a few fixes after Congressman Moran asked. ... Vornado suggests a new connection to the trail in Rosslyn. ... Here's how cyclists rode among streetcar tracks 100 years ago. (WashCycle)
And...: A Seoul train gets a beach. (BeyondDC) ... Chicago will shut down an entire line for 5 months for repairs. (Tribune, Ben Ross) ... 2 die on the Wilson Bridge. (Post)
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Comments
Bikeshare is a gateway to private biking, not competition
- Bikeshare is a gateway to private biking, not competition
- Judge denies injunction against closing schools
- Long-term closures: A solution to single-tracking?
- Metro policy for refunds after delays falls short, riders say
- M Street cycle track keeps improving, draws church anger
- O'Malley announces first projects using new gas tax money
- Prince George's County struggles to get trails right
Sun May 26
11:00 am Roosevelt Ride in Greenbelt
Sat Jun 1
10:00 am CSG walking tour of Wheaton
Tue Jun 4
6:30 pm Height limit meeting at NCPC







If you give lower-income kids a preference to charter schools, you're basically pulling the plug on them. Aside from one specialty school (KIPP), the success of charters comes in finding a way to "game" the system by excluding some percentage of poor kids. (Either by erecting social barriers (e.g. "Chinese immersion!", or by lobbying for boundary preferences as is the case here.)
There will already be a tendency for low-income kids to be highly represented at any DC charter school because the overwhelming majority of school-age kids in DC are poorer and admission is by lottery.
Anyway, there's one solution to the problem of inequality in public education, and we've known about it for decades: it's mandatory regional busing. You put poor kids from DC on a bus and send them to FCPS, and you take rich kids from Fairfax county and send them to Ballou.
Obviously that's not going to happen. So the second best thing is to subsidize poor families so they can get housing in good neighborhoods.
by oboe on Jun 11, 2012 9:15 am • link • report
"Republicans have demonstrated that they are unwilling to make the cuts to the federal budget for transportation that would be necessary if they wanted to honor their pledge to reduce the budget deficit; the vote last week proved that they care more about ensuring adequate investment in infrastructure (as they should!) than they do about taking out more federal debt in a period of record-low interest rates."
goo.gl/VS0cj
The debt only matters when it's a program benefitting poor/minority/city-dwellings constituents that is on the line.
by nbluth on Jun 11, 2012 9:20 am • link • report
The YouTube video about the company was posted in October 2008, and the kid seemed to that renting DVDs from a kiosk was the most innovative idea since sliced bread. Why did this kid get part of an eight-year, $880,000 contract from Metro? Who knows. Am I surprised that a company as solid as this one failed to perform? Not at all.
Maybe Metro should try to entice Redbox, Blockbuster Express or another established company to set up kiosks.
by Tim on Jun 11, 2012 9:20 am • link • report
Or did WMATA just want too much money?
In terms of the interest rate swaps, I think if we have a cough, democratic, urban leaning President who cared about minorities this would be a great issue to fight. But since we've elected some sort of closet Kenyan republican, I doubt this issue will get any traction.
by charlie on Jun 11, 2012 9:22 am • link • report
So apparently, the Wilson Bridge was moving around and crashed into two undefined ob- or subjects. Shocking!
A Seoul train gets a beach
I want a beach too!
by Jasper on Jun 11, 2012 9:23 am • link • report
Public works agencies reasonably would sell both fixed rate bonds and some variable rate bonds. But if they wanted to be protected from interest rate swings, why purchase expensive instrument to edge? Just issuing more fixed rate bonds and fewer variable rate bonds would have been the obvious solution. Did WMATA management think it could outsmart the market by engaging in a sophisticated arbitrage? It sounds like WMATA was just making a bet on interest rates and they bet wrong.
The article's suggestion that transit agencies should not pay their obligations because others who gambled and lost were bailed out is incredibly lame. Instead, DC.Streets should be asking the officials who made the deals to explain themselves, and if any of them still work for Metro, WMATA management should be asked why.
by Jim T on Jun 11, 2012 9:31 am • link • report
I would welcome Redbox because there are practically none in Alexandria. Some 7-11's had them before they all got shut down due to zoning violations.
by spookiness on Jun 11, 2012 9:43 am • link • report
Wait, what?
The 7-11s were violating zoning by having a RedBox kiosk on the premises?
by Alex B. on Jun 11, 2012 9:49 am • link • report
Why? It's yet another example of the public having to cough up money to support private enterprise. I'm kinda done with that. It's also somewhat unfair because (public) transit agencies generally can or will not go bankrupt preventing a situation where they could renegotiate their payments.
Sure, the public officials that made those deals should be removed. However, that said, it should be recognized that many of these contracts fail the basic concept underlying contract law: that contracts have to be fair to both parties.
by Jasper on Jun 11, 2012 9:53 am • link • report
http://oldtownalexandria.patch.com/articles/city-calls-for-removal-of-outdoor-redbox-machines
by spookiness on Jun 11, 2012 9:59 am • link • report
Export black families to Fairfax! Yep, The Plan(TM) is in full effect!
by charlie on Jun 11, 2012 10:02 am • link • report
Thanks. Wow. Zoning run amok!
by Alex B. on Jun 11, 2012 10:02 am • link • report
From the link: These machines are operating in violation of existing special use permits. According to Barbara Ross, Alexandrias deputy planning director, all operations at 7-Eleven stores must take place inside. By running a cord outside to power a Redbox machine, the permits are violated.
So if there is no cord, i.e., powered with solar panels charging batteries, the machines are legal?
by goldfish on Jun 11, 2012 10:27 am • link • report
That's what happened to Orange County a couple of decades ago and caused them to declare bankruptcy. Just like states/localities are barred from running budget deficits, they should also be barred from trading derivatives (complex financial instruments). It's very hard to maintain oversight of governments that take these off-balance-sheet risks (i.e., risks that don't show up as liabilities on a balance sheet).
The financial products that got transit agencies in trouble are called interest rate swaps deals that were supposed to protect transit agencies against increases in borrowing costs
The financial products did (do) in fact protect transit agencies against increases in borrowing costs. The transit agencies essentially purchased insurance against a future event that would have been bad for them. Just because that potential future event didn't happen, doesn't mean you get your money back. It's like asking for your premiums back from an insurance company because your house didn't end up catching on fire.
Banks sold these deals as insurance policies that would let taxpayers lock in lower interest rates without having to worry about rates shooting up in the future, the organization says in the report. However, these deals were actually more of a gamble than an insurance policy.
Every insurance policy is a gamble. You're gambling that the payout of the policy will be greater than the premiums you pay for the insurance.
by Falls Church on Jun 11, 2012 10:52 am • link • report
Except by and large, the highest performing schools get that way precisely because they don't have many low-income students. In part because there is a strong correlation between parents' education and their income, and well-educated parents are better able to prepare their children for school. Also high performing schools don't have to deal with nearly the volume of behavioral problems, absences, and other external disruptors of the educational process.
It is reasonably well established that low-income students do better when they are present in dilute numbers in an otherwise high-income/high-performance school. To apply this model universally would require that the overall system have far more high-income students than low-income students and DC simply doesn't have enough high-income students for this to work.
The outcome of the opposite situation--small numbers of high-income students in a predominantly low-income school--is not nearly so optimistic. The usual response of high-income DC parents whose only option is a predominantly low-income school is to move to Montgomery county. High-income parents have been doing non-standard enrollments for decades.
One can imagine that as gentrification proceeds, more and more neighborhoods will develop a critical mass of high-income families so that the local schools will have enough high-income students to be successful. This has already happened with some schools on Capitol Hill. Until then, the charters are a very viable option for high-income families and therefore are one of the most important elements that keep families in the city.
by thm on Jun 11, 2012 10:55 am • link • report
Regarding the cyclist amongst streetcar lines, the comments on WashCycle appear to be correct that the photo is of a procession and not necessarily representative of normal usage.
The Wilson Bridge link just seems out of place.
by selxic on Jun 11, 2012 10:56 am • link • report
This is why Arlington wins awards for smart growth and governance. Rather than take the easy way out and simply install a speed camera, they re-designed the road so that people naturally drive slower. Great job, Arlington.
by Falls Church on Jun 11, 2012 11:03 am • link • report
Since food isn't allowed on metro, this policy makes a lot of sense.
The greater question is why there is very little retail outside of many metro stations.
[WMATA] has shelved plans to add DVD rentals because officials believe more people are watching movies streamed online instead of renting discs.
This is extraordinarily stupid, however. WMATA is in no position to know whether more people are watching streamed movies or not-- let Redbox work that out. If Redbox is wrong, they go out of business and WMATA finds a retail replacement.
(cue people coming to chime in about how the DC Metro is so much more pure and hospitable because of its lack of retail in stations, compared to the chaotic ugliness of commercial activity in so many NYC subway stations)
by JustMe on Jun 11, 2012 11:06 am • link • report
In terms of the interest rate swaps, I think if we have a cough, democratic, urban leaning President who cared about minorities this would be a great issue to fight. But since we've elected some sort of closet Kenyan republican, I doubt this issue will get any traction.
Wait, what?
by Gray on Jun 11, 2012 11:09 am • link • report
@FallsChurch; in princple there is no problem with public agencies doing this sort of swap. In practice, they are muppets and are very susceptible to low level bribery/nice dinner/better jobs offers from salesmen. Not that different that what is going on with red light cameras, actuallly.
The bigger question is why should we leveage up public agencies so much?
by charlie on Jun 11, 2012 11:17 am • link • report
http://www.youtube.com/watch?v=uQ9RpQjRZb0&list=UUTeYrzSQ3YCp3RovGH4y8Ew&index=1&feature=plcp
by thump on Jun 11, 2012 11:18 am • link • report
Well, you could make the argument that The Plan came to fruition when the black middle-class emigrated en masse to the suburbs back in the 80s. That only accelerated in the 90s. Between 1995 and 2000, 158,000 people moved out of the city.
But I suppose you're right. Better to keep the poor folks segregated east of the river in mass concentrations of poverty. After all, what's another few generations lost to the grind of economic apartheid so long as the Chocolate City stays chocolate?
by oboe on Jun 11, 2012 11:24 am • link • report
by dcd on Jun 11, 2012 11:32 am • link • report
Chuckling...lol
@Oboe, So the second best thing is to subsidize poor families so they can get housing in good neighborhoods.
I believe that works best in theory.
@Thm The usual response of high-income DC parents whose only option is a predominantly low-income school is to move to Montgomery county
Or to Prince George's.
All kids in low performing school should have options..including vouchers.
by HogWash on Jun 11, 2012 11:44 am • link • report
All kids in low performing schools should have high permorming schools.
by Thayer-D on Jun 11, 2012 11:58 am • link • report
by Ward 1 Guy on Jun 11, 2012 12:20 pm • link • report
@Jasper. I think Falls Church probably answered your question directed toward me. What do you want WMATA to do, default on the agreements? The transit agencies got the stable interest rate for which they bargained. The US Government is still paying 6% interest on some old bonds, and some of them are no doubt held by banks. Do you want the US Government to default as well?
by Jim T on Jun 11, 2012 12:30 pm • link • report
by Jim T on Jun 11, 2012 12:31 pm • link • report
It's very hard to maintain oversight of governments that take these off-balance-sheet risks (i.e., risks that don't show up as liabilities on a balance sheet).
These are not off-balance sheet liabilities (or assets). They are recorded at fair value on the balance sheet and changes in the fair value of these derivatives show up in income.
by WRD on Jun 11, 2012 1:48 pm • link • report
by Kolohe on Jun 11, 2012 1:54 pm • link • report
Just a clarification, they show up in "Other Comprehensive Income" which is run through equity. They are run through income only when/if realized. That is how it is run for for-profit entities, and I know even non-profits like WMATA have thier version of Equity.
by Kyle W on Jun 11, 2012 2:34 pm • link • report
How is Chinese immersion a social barrier?
There are "soft" barriers as well as formal barriers that can be used to tweak enrollment. As an example, one of our neighborhood DCPS elementary schools got a new principal who hired a handful of young, white, gay teachers in the space of a year or two. A lot of parents transferred their kids out of the school.
There are subtle ways to make an institution (like a school) more inviting to middle- and upper-middle class parents, and less inviting to working-class and poor parents. Obviously those don't even have to be intentional--but they have an effect on enrollment mix, demographic mix, and therefore, school success.
by oboe on Jun 11, 2012 3:52 pm • link • report
Sounds like parental ignorance. But what there some sort of method to hiring a handful of young, white, gay teachers?
by HogWash on Jun 11, 2012 4:52 pm • link • report
Thanks for the clarification. So, they're not off balance sheet but the level of risk is still hard to maintain oversight over since it requires familiarity with the insyruments. That might be fine for Treasury which has very sophisticated financial oversight but not for local governments.
by Falls Church on Jun 11, 2012 5:06 pm • link • report
Conversely, the elementary school you mention may have hired young, white, gay teachers to make the school less attractive to certain parents. While that may be a little underhanded, I certainly wouldn't want schools NOT hiring gay teachers because some parents don't like it. I rarely use the "if you don't like it, move" argument, because it's logically suspect at best, but in this instance, if parents are so opposed to equal employment rights for gay people that they'll remove their kids from a school rather than let them be taught by a gay person, I woudl suggest a move to the west - the Commonwealth of Virginia has an ethos more suited to their belief structure.
Full disclosure - my daughter attends a charter (EL Haynes) that (I believe) is widely regarded as welcoming to low SES students. For us, the issue isn't limiting attendance, but ensuring that middle and upper-middle class families stay at the school, especially once we hit the middle school years.
by dcd on Jun 11, 2012 5:13 pm • link • report
I think that oversimplifies.
One could make the counterargument that hiring middle-aged black female teachers provides the successful role models that poor young black kids need. Which is the "best" teacher to hire?
In short, there are no right answers. But whichever choice a school administration makes, they're going to alienate some group. My point is that, by alienating one group instead of another, you can make your tests scores go up. (And that can happen even if everyone's acting in good faith.)
by oboe on Jun 11, 2012 5:16 pm • link • report
While I do not know local law on teacher hiring, and the commonwealth overall has plenty of homophobia, its much less so in NoVa, and particularly Alexandria and Arlington are gay friendly.
by AWalkerInTheCity on Jun 11, 2012 5:23 pm • link • report
Well put. For the record, I don't think any of these things are done maliciously, or as part of a plan. Interesting stuff though.
by oboe on Jun 11, 2012 5:25 pm • link • report
By the way, dcd =/= dcdriver.
by dcd on Jun 11, 2012 5:40 pm • link • report
It runs through OCI only if the derivative is classified as a Cash Flow Hedge.
And to anyone else who still cares:
Also note that I can't find any disclosure about interest rate swaps in the CAFR for FY 10 or FY 11. The only hedging transactions disclosed are commodity hedges, in Note 10. Am I wrong here?
And is Metro wrong to use interest rate swaps but commodity swaps are acceptable?
by WRD on Jun 11, 2012 9:04 pm • link • report
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