Can reaching across the political aisle lead to policies that expand opportunity in urban areas?
Three decades ago, a Democratic president and Republican governor agreed in Arkansas’ sister state of Michigan about policies that work.
In 1997, Democrat Bill Clinton (1993-2001) became the first president since Theodore Roosevelt to address Michigan’s legislature. Clinton discussed “educational excellence” and “high standards for all students.”
Michigan’s Republican Gov. John Engler (1991-2003) observed, “Where our children are concerned, our search is not strictly for a Republican solution or strictly Democratic solution — but an American solution.”
Independent reporting for Pine Bluff & Jefferson County since 1879.
Some background: several years before this historic event, Clinton, Engler and supporters reached across the aisle on urban policy.
Clinton advanced Empowerment Zones to encourage economic growth in distressed Michigan urban areas like Detroit.
The program used tax incentives and federal investment. Engler advanced Renaissance Zones to encourage economic growth in urban areas by eliminating taxes.
Today, tax incentives are used in leading Arkansas urban areas including Pine Bluff and Little Rock.
One example are Opportunity Zones, “an economic development tool that allows people to invest in distressed areas in the United States,” according to the Internal Revenue Service.
Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors. Opportunity Zones were created by a federal law in 2017.
In 2018, the secretary of the U.S. Treasury approved 85 Opportunity Zones in Arkansas, according to the state’s Economic Development Commission.
Could a consensus emerge on other policies?
Today, the shortage of housing has emerged as a major policy issue across Arkansas.
Housing is the first item in the following statement on the City of Pine Bluff’s Community and Economic Development site:
“The community must challenge itself to coordinate efforts in housing, transportation, community, economic and workforce development activities in an effort to promote more livable communities throughout the city.”
How to expand the stock of housing? Let the policy discussion begin and hope it can cross the aisle.
One might start with the U.S. Department of Housing and Urban Development’s Office of Policy Development and Research.
Ideas include accessory dwelling units (ADUs), cluster housing developments and tiny houses.
“Housing advocates and policymakers have grown increasingly interested in accessory dwelling units (ADUs) or “granny flats” — small units of housing built inside, attached to, or on the same property as a primary residence — as an important strategy for increasing housing supply.”
Cluster developments are houses concentrated around shared green spaces.
The HUD “Guide to Housing Types for Housing Counselors” states, “There is no universally accepted definition of a tiny home. However, they are generally sized 400 square feet or less and built on either a permanent foundation or a moveable trailer. They may be purchased ready-made or built on site. A tiny home may be a Manufactured Home if it meets the HUD definition and is built to HUD code.”
Arkansas reaches its full potential when all of its citizens share in prosperity.
Greg Kaza is an economist and executive director of the Arkansas Policy Foundation, a nonpartisan think tank in Little Rock. He served in the Michigan House of Representatives (1993-98) and chaired the Urban Policy Committee.