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"content": "\u003cp>On Tuesday, San Francisco Supervisor Jane Kim will introduce emergency legislation to force the city to renegotiate its deal with the NFL over the cost of hosting Super Bowl events.\u003c/p>\n\u003cp>A recently commissioned city budget and legislative \u003ca href=\"http://www.sfbos.org/Modules/ShowDocument.aspx?documentid=54799\" target=\"_blank\">analysis \u003c/a>estimates the cost of San Francisco's nine days of fan festivities at nearly $5 million.\u003c/p>\n\u003cp>The move comes less than two weeks before the big game comes to Santa Clara on Feb. 7. While the city has been on board with hosting the festivities for years, some supervisors have complained that the mayor's office and the local group in charge of raising money for Bay Area events -- the Super Bowl Host Committee -- largely negotiated in secret.\u003c/p>\n\u003cfigure id=\"attachment_10844854\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-10844854\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/FerryBldg50-800x1200.jpg\" alt=\"The Embarcadero around the Ferry Building is transforming into Super Bowl City.\" width=\"800\" height=\"1200\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-800x1200.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-400x600.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-768x1152.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-1440x2160.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-1180x1770.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-960x1440.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Embarcadero around the Ferry Building is transforming into Super Bowl City. \u003ccite>(Alan Toth/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Kim says the Board of Supervisors approved this year's city budget of just $307,843 in Super Bowl-related expenses for two departments, the Fire Department and Department of Emergency Management.\u003c/p>\n\u003cp>Although San Francisco often provides such services to support city events, like Gay Pride or Chinese New Year, Kim says the Super Bowl events -- which she calls \"corporate private parties\" -- don't count as a \"civic celebration.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Super Bowl Host Committee spokesman P.J. Johnston disagrees.\u003c/p>\n\u003cp>\"Every city that has ever hosted a Super Bowl has wanted to do it again,\" says Johnston.\u003c/p>\n\u003cp>[contextly_sidebar id=\"ueYWc6SV1ZCw8LDxewAdPLVO9n4JemhE\"]\u003c/p>\n\u003cp>Johnston says the city will more than recoup its expenses from the increase in sales and hotel tax revenues. He notes that local Bay Area businesses have already signed $3 million in contracts related to the events, which also include a number of private ticketed gatherings and the league's \"NFL Experience\" and Media Center at the Moscone Center.\u003c/p>\n\u003cp>Johnston says San Francisco knew it was signing up to absorb security, transportation and other costs for events because it's \"always part of the puzzle ... and what every city does.\"\u003c/p>\n\u003cp>Not so, says Supervisor Kim. She points to Santa Clara, which is poised to get reimbursed for all Super Bowl-related city costs from the Host Committee -- something she says San Francisco's Board of Supervisors just learned about last week.\u003c/p>\n\u003cp>On Monday, Kim and fellow supervisor Mark Farrell \u003ca href=\"http://www.kqed.org/a/forum/R201601250900\" target=\"_blank\">joined KQED's Forum\u003c/a> to discuss the deal.\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/243750256\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>\"Santa Clara cut a better deal than San Francisco did, and I think we should acknowledge that we got it wrong, and let's try to fix it,\" says Kim.\u003c/p>\n\u003cp>Opponents of a new deal say Santa Clara's and San Francisco's situation don't compare. They note that Santa Clara cannot legally spend public dollars on the events as a condition of its taxpayer-funded new stadium.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>So far, Mayor Ed Lee's office has stood by his deal with the Host Committee as the best possible agreement for the city, although Lee suggested last week that extra security now planned for events may be \"grounds for further discussion\" with the NFL.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>On Tuesday, San Francisco Supervisor Jane Kim will introduce emergency legislation to force the city to renegotiate its deal with the NFL over the cost of hosting Super Bowl events.\u003c/p>\n\u003cp>A recently commissioned city budget and legislative \u003ca href=\"http://www.sfbos.org/Modules/ShowDocument.aspx?documentid=54799\" target=\"_blank\">analysis \u003c/a>estimates the cost of San Francisco's nine days of fan festivities at nearly $5 million.\u003c/p>\n\u003cp>The move comes less than two weeks before the big game comes to Santa Clara on Feb. 7. While the city has been on board with hosting the festivities for years, some supervisors have complained that the mayor's office and the local group in charge of raising money for Bay Area events -- the Super Bowl Host Committee -- largely negotiated in secret.\u003c/p>\n\u003cfigure id=\"attachment_10844854\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-10844854\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/FerryBldg50-800x1200.jpg\" alt=\"The Embarcadero around the Ferry Building is transforming into Super Bowl City.\" width=\"800\" height=\"1200\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-800x1200.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-400x600.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-768x1152.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-1440x2160.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-1180x1770.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/FerryBldg50-960x1440.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Embarcadero around the Ferry Building is transforming into Super Bowl City. \u003ccite>(Alan Toth/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Kim says the Board of Supervisors approved this year's city budget of just $307,843 in Super Bowl-related expenses for two departments, the Fire Department and Department of Emergency Management.\u003c/p>\n\u003cp>Although San Francisco often provides such services to support city events, like Gay Pride or Chinese New Year, Kim says the Super Bowl events -- which she calls \"corporate private parties\" -- don't count as a \"civic celebration.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Super Bowl Host Committee spokesman P.J. Johnston disagrees.\u003c/p>\n\u003cp>\"Every city that has ever hosted a Super Bowl has wanted to do it again,\" says Johnston.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Johnston says the city will more than recoup its expenses from the increase in sales and hotel tax revenues. He notes that local Bay Area businesses have already signed $3 million in contracts related to the events, which also include a number of private ticketed gatherings and the league's \"NFL Experience\" and Media Center at the Moscone Center.\u003c/p>\n\u003cp>Johnston says San Francisco knew it was signing up to absorb security, transportation and other costs for events because it's \"always part of the puzzle ... and what every city does.\"\u003c/p>\n\u003cp>Not so, says Supervisor Kim. She points to Santa Clara, which is poised to get reimbursed for all Super Bowl-related city costs from the Host Committee -- something she says San Francisco's Board of Supervisors just learned about last week.\u003c/p>\n\u003cp>On Monday, Kim and fellow supervisor Mark Farrell \u003ca href=\"http://www.kqed.org/a/forum/R201601250900\" target=\"_blank\">joined KQED's Forum\u003c/a> to discuss the deal.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/243750256&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/243750256'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>\"Santa Clara cut a better deal than San Francisco did, and I think we should acknowledge that we got it wrong, and let's try to fix it,\" says Kim.\u003c/p>\n\u003cp>Opponents of a new deal say Santa Clara's and San Francisco's situation don't compare. They note that Santa Clara cannot legally spend public dollars on the events as a condition of its taxpayer-funded new stadium.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>So far, Mayor Ed Lee's office has stood by his deal with the Host Committee as the best possible agreement for the city, although Lee suggested last week that extra security now planned for events may be \"grounds for further discussion\" with the NFL.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>No one's saying the party's over or anything, but the spectacle of stock indexes opening with drops of 2 or 3 percent, the way they have this week, can start you thinking about the past. \u003ca href=\"http://www.investopedia.com/features/crashes/crashes8.asp\" target=\"_blank\">The end of the dot-com bubble,\u003c/a> for instance.\u003c/p>\n\u003cp>That plunge, which began early in 2001, \u003cem>did\u003c/em> shut down a prolonged round of partying in the Bay Area. The story need not be repeated in detail, but yes, billions were invested and lost on can't-miss Internet-based enterprises like online grocery shopping and delivery (\u003ca href=\"http://www.wsj.com/articles/rebuilding-historys-biggest-dot-come-bust-1421111794\" target=\"_blank\">Webvan\u003c/a>), pet food shopping and delivery (\u003ca href=\"http://www.marketwatch.com/story/pet-project-history-lessons-for-a-petfood-startup-1306600428322\" target=\"_blank\">Pets.com\u003c/a>), and ill-conceived or badly timed or fabulously cash-intensive search and publishing efforts too numerous to want to remember.\u003c/p>\n\u003cp>Again, 2016 isn't 2001. Sure, it's not hard to spot new-generation Web companies that are stumbling along after highly touted public stock offerings. Twitter, for instance, and Zynga. But the most talked-about new-wave companies, Uber and Airbnb, have stayed away from the public markets while they pile up round after round of private investment and build their valuations into the tens of billions of dollars.\u003c/p>\n\u003cp>What have those companies and their more established counterparts wrought?\u003c/p>\n\u003cp>The technology sector, old-line and new, has played such an outsize role in driving the Bay Area's economic boom that's it's spawned a series of best-selling books, Hollywood movies and even \u003ca href=\"http://www.hbo.com/silicon-valley\" target=\"_blank\">an HBO geek sitcom\u003c/a>.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The $4,500-a-month, one-bedroom apartments? The appalling crowding on BART, sudden popularity of ferries and daily traffic gridlock? The nearly weekly appearance of hip, expensive new eateries that are instantly full? The ubiquitous microbrews, artisanal java and $6 bagels? The plague of bad fedoras? Yeah -- that all looks like part of the Bay Area that tech has built.\u003c/p>\n\u003cp>Part of what's fueled that tech-aided transformation, of course, is the compensation many tech employees get -- including stock options that, when exercised, may reappear in the form of cash offers on that house down the street.\u003c/p>\n\u003cp>That's why indications of trouble in the markets and the current ebb in stock prices for most of our local technology firms triggers a little bit of, \"Hey, what's that?\" A little like the first seconds of an earthquake seem to always trigger the thought, \"Is this it? The big one?\" Is this the market correction that turns out to be a downturn that turns out to be a collapse?\u003c/p>\n\u003cp>Nah. Although you wonder how much money has been taken out of people's pockets as the biggest tech companies watch their share prices slide. The decline, which for some firms began a year or more ago, has wiped out about $500 billion in market capitalization (the cumulative value of publicly traded shares) for 14 of the region's largest tech concerns.\u003c/p>\n\u003cp>Having been through a big one 15 years ago -- with its mass layoffs, empty office buildings and scads of suddenly orphaned Aeron chairs -- we're not anxious to see that again. Though it might be OK if the fedoras went away.\u003c/p>\n\u003cp>\u003cem>Below: Leading Bay Area tech companies and their current market capitalization compared to recent peak capitalization. Sources: Google Finance, Yahoo Finance.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"http://bay-tech-stocks.silk.co/s/embed/VOWmvBM\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>No one's saying the party's over or anything, but the spectacle of stock indexes opening with drops of 2 or 3 percent, the way they have this week, can start you thinking about the past. \u003ca href=\"http://www.investopedia.com/features/crashes/crashes8.asp\" target=\"_blank\">The end of the dot-com bubble,\u003c/a> for instance.\u003c/p>\n\u003cp>That plunge, which began early in 2001, \u003cem>did\u003c/em> shut down a prolonged round of partying in the Bay Area. The story need not be repeated in detail, but yes, billions were invested and lost on can't-miss Internet-based enterprises like online grocery shopping and delivery (\u003ca href=\"http://www.wsj.com/articles/rebuilding-historys-biggest-dot-come-bust-1421111794\" target=\"_blank\">Webvan\u003c/a>), pet food shopping and delivery (\u003ca href=\"http://www.marketwatch.com/story/pet-project-history-lessons-for-a-petfood-startup-1306600428322\" target=\"_blank\">Pets.com\u003c/a>), and ill-conceived or badly timed or fabulously cash-intensive search and publishing efforts too numerous to want to remember.\u003c/p>\n\u003cp>Again, 2016 isn't 2001. Sure, it's not hard to spot new-generation Web companies that are stumbling along after highly touted public stock offerings. Twitter, for instance, and Zynga. But the most talked-about new-wave companies, Uber and Airbnb, have stayed away from the public markets while they pile up round after round of private investment and build their valuations into the tens of billions of dollars.\u003c/p>\n\u003cp>What have those companies and their more established counterparts wrought?\u003c/p>\n\u003cp>The technology sector, old-line and new, has played such an outsize role in driving the Bay Area's economic boom that's it's spawned a series of best-selling books, Hollywood movies and even \u003ca href=\"http://www.hbo.com/silicon-valley\" target=\"_blank\">an HBO geek sitcom\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The $4,500-a-month, one-bedroom apartments? The appalling crowding on BART, sudden popularity of ferries and daily traffic gridlock? The nearly weekly appearance of hip, expensive new eateries that are instantly full? The ubiquitous microbrews, artisanal java and $6 bagels? The plague of bad fedoras? Yeah -- that all looks like part of the Bay Area that tech has built.\u003c/p>\n\u003cp>Part of what's fueled that tech-aided transformation, of course, is the compensation many tech employees get -- including stock options that, when exercised, may reappear in the form of cash offers on that house down the street.\u003c/p>\n\u003cp>That's why indications of trouble in the markets and the current ebb in stock prices for most of our local technology firms triggers a little bit of, \"Hey, what's that?\" A little like the first seconds of an earthquake seem to always trigger the thought, \"Is this it? The big one?\" Is this the market correction that turns out to be a downturn that turns out to be a collapse?\u003c/p>\n\u003cp>Nah. Although you wonder how much money has been taken out of people's pockets as the biggest tech companies watch their share prices slide. The decline, which for some firms began a year or more ago, has wiped out about $500 billion in market capitalization (the cumulative value of publicly traded shares) for 14 of the region's largest tech concerns.\u003c/p>\n\u003cp>Having been through a big one 15 years ago -- with its mass layoffs, empty office buildings and scads of suddenly orphaned Aeron chairs -- we're not anxious to see that again. Though it might be OK if the fedoras went away.\u003c/p>\n\u003cp>\u003cem>Below: Leading Bay Area tech companies and their current market capitalization compared to recent peak capitalization. Sources: Google Finance, Yahoo Finance.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"http://bay-tech-stocks.silk.co/s/embed/VOWmvBM\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>The California Air Resources Board (CARB) has rejected Volkswagen's plan to recall cars with 2-liter diesel engines that trick emissions tests, saying the company's plan is incomplete. The Environmental Protection Agency says it concurs.\u003c/p>\n\u003cp>The move comes one week after the EPA \u003ca href=\"http://www.npr.org/sections/thetwo-way/2016/01/04/461927119/u-s-files-lawsuit-against-volkswagen-over-emissions-trickery\">filed a civil complaint against VW\u003c/a> in federal court over the carmaker's use of a defeat device to mislead customers and fool inspectors into thinking the vehicles complied with U.S. rules — when in fact the vehicles were putting out up to 40 times more pollution than is allowed under federal standards.\u003c/p>\n\u003cp>The EPA says Volkswagen is responsible for nearly 600,000 diesel-powered vehicles that are now producing harmful air pollution in the U.S.\u003c/p>\n\u003cp>\"Volkswagen made a decision to cheat on emissions tests and then tried to cover it up,\" says CARB chair Mary D. Nichols, announcing her agency's rejection of VW's plan Tuesday.\u003c/p>\n\u003cp>[contextly_sidebar id=\"IlSoSKn2IZf0cVQ75rnbT1iXUDfqkufU\"]\u003c/p>\n\u003cp>\"They continued and compounded the lie, and when they were caught they tried to deny it. The result is thousands of tons of nitrogen oxide that have harmed the health of Californians. They need to make it right. Today's action is a step in the direction of assuring that will happen.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Those remarks echo ones from EPA assistant administrator Cynthia Giles, who said last week that the legal action would set the agency and Volkswagen \"on a path to resolution.\"\u003c/p>\n\u003cp>According to NPR's John Ydstie, California regulators say VW's recall plan fell short in several areas:\u003c/p>\n\u003cblockquote>\u003cp>The proposed plans contain gaps and lack sufficient detail;\u003c/p>\n\u003cp>The descriptions of proposed repairs lack enough information for a technical evaluation;\u003c/p>\n\u003cp>The proposals do not adequately address overall impacts on vehicle performance, emissions and safety.\u003c/p>\u003c/blockquote>\n\u003cp>The California Air Resources Board says it has been conducting its own investigation into the vehicles' diesel emissions, in parallel with a federal inquiry. Together, the agencies confronted Volkswagen in September with data that showed VW was using software to circumvent emissions standards. In November, Volkswagen acknowledged that the problems also exist in its 3-liter diesel engines.\u003c/p>\n\u003cp>The rejection by CARB and the EPA comes two days after Volkswagen CEO Matthias Mueller said of his company's reaction to the EPA's findings, \"We didn't lie.\"\u003c/p>\n\u003cp>\"We had the wrong reaction when we got information year by year from the EPA and from the [California Air Resources Board],\" Mueller said \u003ca href=\"http://www.npr.org/sections/thetwo-way/2016/01/11/462682378/we-didnt-lie-volkswagen-ceo-says-of-emissions-scandal\">in an interview with NPR\u003c/a>.\u003c/p>\n\u003cp>He later added, \"We have to apologize for that, and we'll do our utmost to do things right for the future.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>To see more, visit http://www.npr.org/\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The California Air Resources Board (CARB) has rejected Volkswagen's plan to recall cars with 2-liter diesel engines that trick emissions tests, saying the company's plan is incomplete. The Environmental Protection Agency says it concurs.\u003c/p>\n\u003cp>The move comes one week after the EPA \u003ca href=\"http://www.npr.org/sections/thetwo-way/2016/01/04/461927119/u-s-files-lawsuit-against-volkswagen-over-emissions-trickery\">filed a civil complaint against VW\u003c/a> in federal court over the carmaker's use of a defeat device to mislead customers and fool inspectors into thinking the vehicles complied with U.S. rules — when in fact the vehicles were putting out up to 40 times more pollution than is allowed under federal standards.\u003c/p>\n\u003cp>The EPA says Volkswagen is responsible for nearly 600,000 diesel-powered vehicles that are now producing harmful air pollution in the U.S.\u003c/p>\n\u003cp>\"Volkswagen made a decision to cheat on emissions tests and then tried to cover it up,\" says CARB chair Mary D. Nichols, announcing her agency's rejection of VW's plan Tuesday.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>\"They continued and compounded the lie, and when they were caught they tried to deny it. The result is thousands of tons of nitrogen oxide that have harmed the health of Californians. They need to make it right. Today's action is a step in the direction of assuring that will happen.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Those remarks echo ones from EPA assistant administrator Cynthia Giles, who said last week that the legal action would set the agency and Volkswagen \"on a path to resolution.\"\u003c/p>\n\u003cp>According to NPR's John Ydstie, California regulators say VW's recall plan fell short in several areas:\u003c/p>\n\u003cblockquote>\u003cp>The proposed plans contain gaps and lack sufficient detail;\u003c/p>\n\u003cp>The descriptions of proposed repairs lack enough information for a technical evaluation;\u003c/p>\n\u003cp>The proposals do not adequately address overall impacts on vehicle performance, emissions and safety.\u003c/p>\u003c/blockquote>\n\u003cp>The California Air Resources Board says it has been conducting its own investigation into the vehicles' diesel emissions, in parallel with a federal inquiry. Together, the agencies confronted Volkswagen in September with data that showed VW was using software to circumvent emissions standards. In November, Volkswagen acknowledged that the problems also exist in its 3-liter diesel engines.\u003c/p>\n\u003cp>The rejection by CARB and the EPA comes two days after Volkswagen CEO Matthias Mueller said of his company's reaction to the EPA's findings, \"We didn't lie.\"\u003c/p>\n\u003cp>\"We had the wrong reaction when we got information year by year from the EPA and from the [California Air Resources Board],\" Mueller said \u003ca href=\"http://www.npr.org/sections/thetwo-way/2016/01/11/462682378/we-didnt-lie-volkswagen-ceo-says-of-emissions-scandal\">in an interview with NPR\u003c/a>.\u003c/p>\n\u003cp>He later added, \"We have to apologize for that, and we'll do our utmost to do things right for the future.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>To see more, visit http://www.npr.org/\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Saru Jayaraman: Give Restaurant Workers One Fair Wage",
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"content": "\u003cp>Here’s something that might surprise you. It surprised me. When I got my first paycheck for my first job in Massachusetts, the total was under $10, and that was for two weeks, 40 hours a week.\u003c/p>\n\u003cp>My job? I was a waitress.\u003c/p>\n\u003cp>\u003ca href=\"http://laborcenter.berkeley.edu/author/saru-jayaraman/\" target=\"_blank\">Saru Jayaraman\u003c/a>, co-founder and co-director of the \u003ca href=\"http://rocunited.org/\" target=\"_blank\">Restaurant Opportunities Centers United\u003c/a> and director of the Food Labor Research Center at UC Berkeley, says we can change that by giving all workers, including restaurant workers, one fair wage.\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/241462661\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>“The restaurant industry is the second-largest and absolute fastest-growing sector of the U.S. economy with over 11 million workers,” Jayaraman says. In 43 states, she says the industry pays “as little as $2.13 an hour to workers who earn tips.” That's a far lower minimum wage than what other workers make, currently set at $7.25 federally.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Jayaraman wants to eliminate that gap between the standard and lower minimum wage.\u003c/p>\n\u003cp>But before getting into that, she says you need to know the history of tipping in the United States.\u003c/p>\n\u003cp>“Tipping actually originated in Europe as a vestige of the feudal system,” Jayaraman says, “It was a superior giving money to an inferior.\"\u003c/p>\n\u003cp>When wealthy U.S. citizens traveled to Europe in the mid-1800s and returned home, they attempted to show off their worldliness by tipping. But Americans weren’t having it. They called it un-American and elitist. The sentiment was so strong that by the early 1900s, six states (Arkansas, Iowa, Mississippi, South Carolina, Tennessee and Washington) actually passed anti-tipping laws.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'Not only is this a vestige of the feudal system, it is a legacy of slavery.'\u003ccite>Saru Jayaraman\u003c/cite>\u003c/aside>\n\u003cp>While an anti-tipping movement also grew in Europe, it “was squashed here in the States by the restaurant industry and the Pullman train company,” says Jayaraman. She says both industries \"wanted the right to hire newly freed slaves and not pay them anything and let them live on customer tips.”\u003c/p>\n\u003cp>These train porters and maids worked long hours loading luggage and serving passengers. They eventually unionized and won a full salary. But restaurant workers -- many of whom were also former slaves -- didn’t organize.\u003c/p>\n\u003cp>\"That history really educated us about the fact that not only is this a vestige of the feudal system, it is a legacy of slavery,\" Jayaraman says.\u003c/p>\n\u003cp>There is a federal law that requires employers to make sure tipped workers are making the standard minimum wage through both salary and tips, and if not, to supplement their income so that they do.\u003c/p>\n\u003cp>So if that's the case, what's wrong with the minimum wage status quo?\u003c/p>\n\u003cp>\"There are plenty of laws on the books that really aren't enforced, and this is one of the biggest,\" Jayaraman says. According to the Bureau of Labor Statistics, 16 percent of restaurant workers make below the minimum wage.\u003c/p>\n\u003cp>[contextly_sidebar id=\"iFqACdEJdZjdJwY7ZJood8jW5CDs9CZH\"]\u003c/p>\n\u003cp>While some restaurant workers are at mid- to high-end restaurants, \"in fact 70 percent of tipped workers are women who largely work at places like IHOP and Applebee's and Olive Garden.\"\u003c/p>\n\u003cp>This overrepresentation of women leads to another tipping-related challenge: sexual harassment.\u003c/p>\n\u003cp>Jayaraman says women in these jobs “suffer from the absolute worst sexual harassment of any industry in the United States.” She says it’s embedded in the culture, from customers to management. When a server is working to get the most money from tips, “you are basically encouraged to objectify yourself,\" she adds.\u003c/p>\n\u003cp>Some argue that the customer’s power to tip brings better service, but Jayaraman disagrees.\u003c/p>\n\u003cp>“Sadly, the studies show that tipping is correlated to workers’ skin color, hair color, eye color, breast size, gender, race,\" she says. \"And that actually there's no correlation between better service and tipping.”\u003c/p>\n\u003cp>If customers are unhappy with their service, Jayaraman says they should tell the management, similar to the recourses available in other customer service industries.\u003c/p>\n\u003cp>\"In this industry, somehow we think that we as customers not only should have the right to implicate a worker's wages through our power of tipping, but determine whether they eat that day, whether they can feed their kids that day.”\u003c/p>\n\u003cp>[contextly_sidebar id=\"RdCVHwgE2T1Gf8P94w6FwhQgWV4Ki7Wh\"]\u003c/p>\n\u003cp>Jayaraman says we can avoid this mess by giving all workers an equal minimum wage.\u003c/p>\n\u003cp>California, along with six other states, has one minimum wage regardless of profession. Jayaraman and her team have researched how one minimum wage has impacted these states. Their findings are promising.\u003c/p>\n\u003cp>“We as a state are faring better on every measure than the 43 states with lower wages for tipped workers,\" Jayaraman says.\u003c/p>\n\u003cp>She says California and the other states -- Alaska, Minnesota, Montana, Nevada, Oregon and Washington -- have higher restaurant sales per capita and higher job growth in the restaurant industry.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Now, Jayaraman's mission is to get the rest of country to sign on.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Here’s something that might surprise you. It surprised me. When I got my first paycheck for my first job in Massachusetts, the total was under $10, and that was for two weeks, 40 hours a week.\u003c/p>\n\u003cp>My job? I was a waitress.\u003c/p>\n\u003cp>\u003ca href=\"http://laborcenter.berkeley.edu/author/saru-jayaraman/\" target=\"_blank\">Saru Jayaraman\u003c/a>, co-founder and co-director of the \u003ca href=\"http://rocunited.org/\" target=\"_blank\">Restaurant Opportunities Centers United\u003c/a> and director of the Food Labor Research Center at UC Berkeley, says we can change that by giving all workers, including restaurant workers, one fair wage.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/241462661&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/241462661'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“The restaurant industry is the second-largest and absolute fastest-growing sector of the U.S. economy with over 11 million workers,” Jayaraman says. In 43 states, she says the industry pays “as little as $2.13 an hour to workers who earn tips.” That's a far lower minimum wage than what other workers make, currently set at $7.25 federally.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Jayaraman wants to eliminate that gap between the standard and lower minimum wage.\u003c/p>\n\u003cp>But before getting into that, she says you need to know the history of tipping in the United States.\u003c/p>\n\u003cp>“Tipping actually originated in Europe as a vestige of the feudal system,” Jayaraman says, “It was a superior giving money to an inferior.\"\u003c/p>\n\u003cp>When wealthy U.S. citizens traveled to Europe in the mid-1800s and returned home, they attempted to show off their worldliness by tipping. But Americans weren’t having it. They called it un-American and elitist. The sentiment was so strong that by the early 1900s, six states (Arkansas, Iowa, Mississippi, South Carolina, Tennessee and Washington) actually passed anti-tipping laws.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'Not only is this a vestige of the feudal system, it is a legacy of slavery.'\u003ccite>Saru Jayaraman\u003c/cite>\u003c/aside>\n\u003cp>While an anti-tipping movement also grew in Europe, it “was squashed here in the States by the restaurant industry and the Pullman train company,” says Jayaraman. She says both industries \"wanted the right to hire newly freed slaves and not pay them anything and let them live on customer tips.”\u003c/p>\n\u003cp>These train porters and maids worked long hours loading luggage and serving passengers. They eventually unionized and won a full salary. But restaurant workers -- many of whom were also former slaves -- didn’t organize.\u003c/p>\n\u003cp>\"That history really educated us about the fact that not only is this a vestige of the feudal system, it is a legacy of slavery,\" Jayaraman says.\u003c/p>\n\u003cp>There is a federal law that requires employers to make sure tipped workers are making the standard minimum wage through both salary and tips, and if not, to supplement their income so that they do.\u003c/p>\n\u003cp>So if that's the case, what's wrong with the minimum wage status quo?\u003c/p>\n\u003cp>\"There are plenty of laws on the books that really aren't enforced, and this is one of the biggest,\" Jayaraman says. According to the Bureau of Labor Statistics, 16 percent of restaurant workers make below the minimum wage.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>While some restaurant workers are at mid- to high-end restaurants, \"in fact 70 percent of tipped workers are women who largely work at places like IHOP and Applebee's and Olive Garden.\"\u003c/p>\n\u003cp>This overrepresentation of women leads to another tipping-related challenge: sexual harassment.\u003c/p>\n\u003cp>Jayaraman says women in these jobs “suffer from the absolute worst sexual harassment of any industry in the United States.” She says it’s embedded in the culture, from customers to management. When a server is working to get the most money from tips, “you are basically encouraged to objectify yourself,\" she adds.\u003c/p>\n\u003cp>Some argue that the customer’s power to tip brings better service, but Jayaraman disagrees.\u003c/p>\n\u003cp>“Sadly, the studies show that tipping is correlated to workers’ skin color, hair color, eye color, breast size, gender, race,\" she says. \"And that actually there's no correlation between better service and tipping.”\u003c/p>\n\u003cp>If customers are unhappy with their service, Jayaraman says they should tell the management, similar to the recourses available in other customer service industries.\u003c/p>\n\u003cp>\"In this industry, somehow we think that we as customers not only should have the right to implicate a worker's wages through our power of tipping, but determine whether they eat that day, whether they can feed their kids that day.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Jayaraman says we can avoid this mess by giving all workers an equal minimum wage.\u003c/p>\n\u003cp>California, along with six other states, has one minimum wage regardless of profession. Jayaraman and her team have researched how one minimum wage has impacted these states. Their findings are promising.\u003c/p>\n\u003cp>“We as a state are faring better on every measure than the 43 states with lower wages for tipped workers,\" Jayaraman says.\u003c/p>\n\u003cp>She says California and the other states -- Alaska, Minnesota, Montana, Nevada, Oregon and Washington -- have higher restaurant sales per capita and higher job growth in the restaurant industry.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Now, Jayaraman's mission is to get the rest of country to sign on.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "Solar Surges Past Wind, Hydro as California's No. 1 Renewable Energy Source",
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"content": "\u003cp>In just a few short years, solar power has gotten big in California, and now it’s at the top of the renewable energy heap.\u003c/p>\n\u003cp>Data compiled from daily reports by the state’s major grid manager indicate that in 2015, solar became the No. 1 source of renewable energy in California. Not only did solar beat wind power for the first time, but it also topped drought-depleted hydropower, the long-standing leader in California electricity generation outside fossil fuels and nuclear.\u003c/p>\n\u003cp>The California Independent System Operator doesn’t cover the entire state, but it does manage about 80 percent of the California grid, including those portions served by PG&E, Southern California Edison and San Diego Gas & Electric, the state’s three big investor-owned utilities.\u003c/p>\n\u003cp>Every day, CAISO reports on the hourly electrical output from a long list of sources for the electricity used by 30 million Californians, ranging from biogas at the low end of generation to thermal — natural gas, essentially — at the high end. \u003c/p>\n\u003cp>The reports in sum show that in 2015, utility-scale solar power plants produced 15,591,964 megawatt-hours of electricity for CAISO. That’s 6.7 percent of the system’s total of 231,965,326 MWh. Wind came in at 5.3 percent. Hydro contributed 5.9 percent, with the portion that the state considers renewable, “small hydro,” at 0.6 percent of generation.\u003c/p>\n\u003cfigure id=\"attachment_10826476\" class=\"wp-caption alignright\" style=\"max-width: 542px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart.png\" rel=\"attachment wp-att-10826476\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10826476\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart.png\" alt=\"Power generated from large solar installations has overtaken wind-power generation in California.\" width=\"542\" height=\"391\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart.png 542w, https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart-400x289.png 400w\" sizes=\"(max-width: 542px) 100vw, 542px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Power generated from large solar installations has overtaken wind-power generation in California.\u003c/figcaption>\u003c/figure>\n\u003cp>That’s a vastly changed picture from just a few years ago. As recently as 2012, solar accounted for just 0.9 percent of CAISO generation, less than one-quarter of the 4 percent share that wind had at the time. (Hydro, with the drought beginning to unfold, produced 9.3 percent of the system’s energy that year.)\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>And here’s the kicker: These figures \u003cem>undercount\u003c/em> solar’s true contribution. CAISO’s solar data are derived only from big plants that sell their power at the wholesale level. The agency’s numbers don’t include the ubiquitous small systems installed throughout the state.\u003c/p>\n\u003cp>Variously labeled rooftop, distributed or behind-the-meter solar, there are hundreds of thousands of small installations on California homes and businesses, and their output adds up. Experts estimate that including these systems would boost solar’s tally by nearly half — meaning solar in all its sizes, shapes and forms probably accounted for close to 10 percent of California’s electricity in 2015.\u003c/p>\n\u003cp>\u003cstrong>A Benefit During Drought\u003c/strong>\u003c/p>\n\u003cp>One payoff from all the solar: Despite the big drop in hydropower due to the drought, CAISO used less thermal and imported energy last year than it did in 2012. Bernadette Del Chiaro, who heads the California Solar Energy Industries Association, called that “a really interesting story that has not gotten enough play.”\u003c/p>\n\u003cp>Financial incentives and ever-increasing requirements through the state’s renewable portfolio standard are driving the growth of renewable energy, and solar in California has some particular advantages, Del Chiaro said.\u003c/p>\n\u003cp>We all know there’s a lot of sunshine here. But beyond that, Del Chiaro said, “As utilities have worked to meet their renewable energy mandates, solar has become a favorite choice because the cost of PV [photovoltaic] panels has declined so much that it is more competitive than most other forms of energy.”\u003c/p>\n\u003cp>That includes wind, said Mark Jacobson, a Stanford professor who has been researching and promoting scenarios for achieving 100 percent renewable energy for all purposes, not just electricity, by 2050.\u003c/p>\n\u003cp>“While wind costs in the national average are much lower than both solar and gas due to extremely fast Great Plains wind, they are more comparable in California,” Jacobson said in an email. “And wind has a little more siting difficulty in California.”\u003c/p>\n\u003cp>According to GTM Research, which tracks solar trends, utility-scale photovoltaic solar in California (including non-CAISO areas) grew from 0.8 gigawatts installed capacity at the beginning of 2013 to 6.6 GW by last October, the most recent update available. Concentrating solar — what CAISO calls “solar thermal” plants, like Ivanpah in the Mojave Desert — adds nearly another gigawatt of generating capacity.\u003c/p>\n\u003cp>Wind power capacity in the state inched up from 5.5 GW to 6 GW during the same period.\u003c/p>\n\u003cp>Nancy Rader, executive director of the California Wind Energy Association, says that’s cause for concern.\u003c/p>\n\u003cp>“We cannot have just solar,” Rader said. “We have to have a mix. It is clear from all the studies that have been done.”\u003c/p>\n\u003cp>\u003cstrong>Challenges for Wind Power Development\u003c/strong>\u003c/p>\n\u003cp>In an op-ed in the Sacramento Bee last November, Rader blamed wind’s meager growth on “sweeping restrictions” that “have been adopted or are slated for adoption by Los Angeles, San Diego and Solano counties in rural areas hosting some of the state’s best remaining wind resources.” Rader was also critical of a draft plan to regulate desert development that would put “80 percent of the high-quality wind resources on remote federal lands in the vast deserts of Southern California … permanently off-limits.”\u003c/p>\n\u003cp>The most realistic scenario for adding significant wind power in California is wiring it in from out of state, Rader said. Developers in Wyoming, which has a monstrous wind resource but practically nobody to use it, are especially keen to send wind power California’s way.\u003c/p>\n\u003cp>California has largely cut off new out-of-state renewables, but that could change. The Legislature last year opened the door to expanding the Independent System Operator, and CAISO has been talking up a plan to bring in PacifiCorp, which serves around 1.8 million customers in six Western states, including California’s far north and big chunks of Utah and Wyoming.\u003c/p>\n\u003cp>\u003ca href=\"https://www.caiso.com/Documents/StudyBenefits-PacifiCorp-ISOIntegration.pdf\" target=\"_blank\" rel=\"noopener\">A recent report\u003c/a> commissioned by CAISO and PacifiCorp suggested a merger could help solve a problem that comes with the rapid growth of solar power generation: The grid can handle only so much power at one time.\u003c/p>\n\u003cp>Since solar power is generated only during daylight hours and ramps up rapidly after sunrise, it could create what amounts to an overload and force grid operators to curtail the amount of solar power flowing into the system. Adding PacifiCorp to its system would give CAISO an outlet for the surplus solar power, the report says.\u003c/p>\n\u003cfigure id=\"attachment_10826477\" class=\"wp-caption alignleft\" style=\"max-width: 584px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart.png\" rel=\"attachment wp-att-10826477\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10826477\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart.png\" alt=\"Solar power has become California's No. 1 source of the renewable energy over the last four years. \" width=\"584\" height=\"393\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart.png 584w, https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart-400x269.png 400w\" sizes=\"(max-width: 584px) 100vw, 584px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Solar power has become California’s No. 1 source of the renewable energy over the last four years.\u003c/figcaption>\u003c/figure>\n\u003cp>Del Chiaro’s group hasn’t taken a position on the CAISO expansion, but she said solar growth that includes a significant rooftop component would promote grid innovation.\u003c/p>\n\u003cp>“If we did nothing, obviously we’d have problems,” she said. “But if we model a vision that takes advantage of localized generation and incorporates storage, that is the answer to the concern.”\u003c/p>\n\u003cp>Residential rooftop solar capacity was at 2.4 GW at the beginning of October 2015, with another 1.9 GW in the “non-residential” rooftop category, according to GTM Research.\u003c/p>\n\u003cp>\u003cstrong>Tax, Metering Policies Impact Solar Development\u003c/strong>\u003c/p>\n\u003cp>Last month, Congress passed and President Obama signed into law an extension of a 30 percent investment tax credit for solar. It applies to all forms of solar, but will especially aid utility solar, Del Chiaro said. She expects it to continue to thrive in California, although she suspects most new plants will be in the 5 MW to 20 MW range as opposed to the 50 MW and larger facilities that have been built in recent years.\u003c/p>\n\u003cp>But the tax credit won’t be enough to keep rooftop solar growing, Del Chiaro added. The key there, she said, is the potential for \u003ca href=\"http://ww2.kqed.org/science/2014/11/24/california-utilities-and-solar-companies-battle-over-electricity-prices/\" target=\"_blank\" rel=\"noopener\">changes in net metering\u003c/a>, the policy of compensating small-system owners at the retail rate for the solar power they generate.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Utilities around the country, including in California, say net metering results in non-solar users carrying an unfair burden in maintaining a grid that benefits all. They’re pushing for reduced solar payments and/or new fees for solar adopters. In December, the California Public Utilities Commission proposed \u003ca href=\"http://www.pe.com/articles/solar-789435-proposed-utilities.html\" target=\"_blank\" rel=\"noopener\">maintaining the full retail rate\u003c/a> for net metering, with only modest new fees. The commission could vote on that proposal as early as Jan. 28.\u003c/p>\n\n",
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"nprByline": "\u003cstrong>\u003ca href=\"http://petedanko.net/\" target=\"_blank\">Pete Danko\u003c/a>\u003c/strong>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>In just a few short years, solar power has gotten big in California, and now it’s at the top of the renewable energy heap.\u003c/p>\n\u003cp>Data compiled from daily reports by the state’s major grid manager indicate that in 2015, solar became the No. 1 source of renewable energy in California. Not only did solar beat wind power for the first time, but it also topped drought-depleted hydropower, the long-standing leader in California electricity generation outside fossil fuels and nuclear.\u003c/p>\n\u003cp>The California Independent System Operator doesn’t cover the entire state, but it does manage about 80 percent of the California grid, including those portions served by PG&E, Southern California Edison and San Diego Gas & Electric, the state’s three big investor-owned utilities.\u003c/p>\n\u003cp>Every day, CAISO reports on the hourly electrical output from a long list of sources for the electricity used by 30 million Californians, ranging from biogas at the low end of generation to thermal — natural gas, essentially — at the high end. \u003c/p>\n\u003cp>The reports in sum show that in 2015, utility-scale solar power plants produced 15,591,964 megawatt-hours of electricity for CAISO. That’s 6.7 percent of the system’s total of 231,965,326 MWh. Wind came in at 5.3 percent. Hydro contributed 5.9 percent, with the portion that the state considers renewable, “small hydro,” at 0.6 percent of generation.\u003c/p>\n\u003cfigure id=\"attachment_10826476\" class=\"wp-caption alignright\" style=\"max-width: 542px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart.png\" rel=\"attachment wp-att-10826476\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10826476\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart.png\" alt=\"Power generated from large solar installations has overtaken wind-power generation in California.\" width=\"542\" height=\"391\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart.png 542w, https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Wind-and-Solar-Line-Chart-400x289.png 400w\" sizes=\"(max-width: 542px) 100vw, 542px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Power generated from large solar installations has overtaken wind-power generation in California.\u003c/figcaption>\u003c/figure>\n\u003cp>That’s a vastly changed picture from just a few years ago. As recently as 2012, solar accounted for just 0.9 percent of CAISO generation, less than one-quarter of the 4 percent share that wind had at the time. (Hydro, with the drought beginning to unfold, produced 9.3 percent of the system’s energy that year.)\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>And here’s the kicker: These figures \u003cem>undercount\u003c/em> solar’s true contribution. CAISO’s solar data are derived only from big plants that sell their power at the wholesale level. The agency’s numbers don’t include the ubiquitous small systems installed throughout the state.\u003c/p>\n\u003cp>Variously labeled rooftop, distributed or behind-the-meter solar, there are hundreds of thousands of small installations on California homes and businesses, and their output adds up. Experts estimate that including these systems would boost solar’s tally by nearly half — meaning solar in all its sizes, shapes and forms probably accounted for close to 10 percent of California’s electricity in 2015.\u003c/p>\n\u003cp>\u003cstrong>A Benefit During Drought\u003c/strong>\u003c/p>\n\u003cp>One payoff from all the solar: Despite the big drop in hydropower due to the drought, CAISO used less thermal and imported energy last year than it did in 2012. Bernadette Del Chiaro, who heads the California Solar Energy Industries Association, called that “a really interesting story that has not gotten enough play.”\u003c/p>\n\u003cp>Financial incentives and ever-increasing requirements through the state’s renewable portfolio standard are driving the growth of renewable energy, and solar in California has some particular advantages, Del Chiaro said.\u003c/p>\n\u003cp>We all know there’s a lot of sunshine here. But beyond that, Del Chiaro said, “As utilities have worked to meet their renewable energy mandates, solar has become a favorite choice because the cost of PV [photovoltaic] panels has declined so much that it is more competitive than most other forms of energy.”\u003c/p>\n\u003cp>That includes wind, said Mark Jacobson, a Stanford professor who has been researching and promoting scenarios for achieving 100 percent renewable energy for all purposes, not just electricity, by 2050.\u003c/p>\n\u003cp>“While wind costs in the national average are much lower than both solar and gas due to extremely fast Great Plains wind, they are more comparable in California,” Jacobson said in an email. “And wind has a little more siting difficulty in California.”\u003c/p>\n\u003cp>According to GTM Research, which tracks solar trends, utility-scale photovoltaic solar in California (including non-CAISO areas) grew from 0.8 gigawatts installed capacity at the beginning of 2013 to 6.6 GW by last October, the most recent update available. Concentrating solar — what CAISO calls “solar thermal” plants, like Ivanpah in the Mojave Desert — adds nearly another gigawatt of generating capacity.\u003c/p>\n\u003cp>Wind power capacity in the state inched up from 5.5 GW to 6 GW during the same period.\u003c/p>\n\u003cp>Nancy Rader, executive director of the California Wind Energy Association, says that’s cause for concern.\u003c/p>\n\u003cp>“We cannot have just solar,” Rader said. “We have to have a mix. It is clear from all the studies that have been done.”\u003c/p>\n\u003cp>\u003cstrong>Challenges for Wind Power Development\u003c/strong>\u003c/p>\n\u003cp>In an op-ed in the Sacramento Bee last November, Rader blamed wind’s meager growth on “sweeping restrictions” that “have been adopted or are slated for adoption by Los Angeles, San Diego and Solano counties in rural areas hosting some of the state’s best remaining wind resources.” Rader was also critical of a draft plan to regulate desert development that would put “80 percent of the high-quality wind resources on remote federal lands in the vast deserts of Southern California … permanently off-limits.”\u003c/p>\n\u003cp>The most realistic scenario for adding significant wind power in California is wiring it in from out of state, Rader said. Developers in Wyoming, which has a monstrous wind resource but practically nobody to use it, are especially keen to send wind power California’s way.\u003c/p>\n\u003cp>California has largely cut off new out-of-state renewables, but that could change. The Legislature last year opened the door to expanding the Independent System Operator, and CAISO has been talking up a plan to bring in PacifiCorp, which serves around 1.8 million customers in six Western states, including California’s far north and big chunks of Utah and Wyoming.\u003c/p>\n\u003cp>\u003ca href=\"https://www.caiso.com/Documents/StudyBenefits-PacifiCorp-ISOIntegration.pdf\" target=\"_blank\" rel=\"noopener\">A recent report\u003c/a> commissioned by CAISO and PacifiCorp suggested a merger could help solve a problem that comes with the rapid growth of solar power generation: The grid can handle only so much power at one time.\u003c/p>\n\u003cp>Since solar power is generated only during daylight hours and ramps up rapidly after sunrise, it could create what amounts to an overload and force grid operators to curtail the amount of solar power flowing into the system. Adding PacifiCorp to its system would give CAISO an outlet for the surplus solar power, the report says.\u003c/p>\n\u003cfigure id=\"attachment_10826477\" class=\"wp-caption alignleft\" style=\"max-width: 584px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart.png\" rel=\"attachment wp-att-10826477\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10826477\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart.png\" alt=\"Solar power has become California's No. 1 source of the renewable energy over the last four years. \" width=\"584\" height=\"393\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart.png 584w, https://cdn.kqed.org/wp-content/uploads/sites/10/2016/01/2012-2015-CAISO-Bar-Chart-400x269.png 400w\" sizes=\"(max-width: 584px) 100vw, 584px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Solar power has become California’s No. 1 source of the renewable energy over the last four years.\u003c/figcaption>\u003c/figure>\n\u003cp>Del Chiaro’s group hasn’t taken a position on the CAISO expansion, but she said solar growth that includes a significant rooftop component would promote grid innovation.\u003c/p>\n\u003cp>“If we did nothing, obviously we’d have problems,” she said. “But if we model a vision that takes advantage of localized generation and incorporates storage, that is the answer to the concern.”\u003c/p>\n\u003cp>Residential rooftop solar capacity was at 2.4 GW at the beginning of October 2015, with another 1.9 GW in the “non-residential” rooftop category, according to GTM Research.\u003c/p>\n\u003cp>\u003cstrong>Tax, Metering Policies Impact Solar Development\u003c/strong>\u003c/p>\n\u003cp>Last month, Congress passed and President Obama signed into law an extension of a 30 percent investment tax credit for solar. It applies to all forms of solar, but will especially aid utility solar, Del Chiaro said. She expects it to continue to thrive in California, although she suspects most new plants will be in the 5 MW to 20 MW range as opposed to the 50 MW and larger facilities that have been built in recent years.\u003c/p>\n\u003cp>But the tax credit won’t be enough to keep rooftop solar growing, Del Chiaro added. The key there, she said, is the potential for \u003ca href=\"http://ww2.kqed.org/science/2014/11/24/california-utilities-and-solar-companies-battle-over-electricity-prices/\" target=\"_blank\" rel=\"noopener\">changes in net metering\u003c/a>, the policy of compensating small-system owners at the retail rate for the solar power they generate.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Utilities around the country, including in California, say net metering results in non-solar users carrying an unfair burden in maintaining a grid that benefits all. They’re pushing for reduced solar payments and/or new fees for solar adopters. In December, the California Public Utilities Commission proposed \u003ca href=\"http://www.pe.com/articles/solar-789435-proposed-utilities.html\" target=\"_blank\" rel=\"noopener\">maintaining the full retail rate\u003c/a> for net metering, with only modest new fees. The commission could vote on that proposal as early as Jan. 28.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Brown's Budget Mantra: Caution",
"title": "Brown's Budget Mantra: Caution",
"headTitle": "The California Report | KQED News",
"content": "\u003cp>In the middle of his \"good news\" budget press conference Thursday morning, Gov. Jerry Brown took a moment to fondly remember a Jesuit teacher he had at \u003ca href=\"http://www.siprep.org/\">St. Ignatius High School \u003c/a>in San Francisco.\u003c/p>\n\u003cp>\"Father Clark taught economics,\" said Brown, who referred to a jagged line the instructor drew for the class. \"And I still remember him going to the blackboard and saying, \"You know what this is? It's the business cycle.'\"\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/240982971\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>Brown had his own chart, which looked like the Sierra Nevada, with jagged peaks and deep valleys representing the unpredictable boom and bust of California's capital gains revenue.\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder.png\" rel=\"attachment wp-att-10824950\">\u003cimg class=\"aligncenter size-medium wp-image-10824950\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-800x450.png\" alt=\"Capital_Gains_Cap_Gains_chartbuilder\" width=\"800\" height=\"450\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-800x450.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-400x225.png 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-768x432.png 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-1180x664.png 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-960x540.png 960w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder.png 1280w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>His point: \"It's a very simple matter. If you don't remember anything else, just remember everything that goes up comes down.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>He clearly relishes his role as the Capitol's \u003ca href=\"https://en.wikipedia.org/wiki/Cassandra\" target=\"_blank\">Cassandra\u003c/a>, warning of impending doom just around the corner.\u003c/p>\n\u003cp>\"We've had 10 recessions since World War II,\" Professor Brown said, \"but nobody ever plans for it. So it's always a surprise -- oh my gosh, the budget's dropped $40 billion!\"\u003c/p>\n\u003cp>At least for now, state revenue is running billions ahead of the governor's own projections. And, to be sure, Brown's proposed spending plan reflects that.\u003c/p>\n\u003cp>[contextly_sidebar id=\"V2JnbdPl23D16Zz7bN0o80Olw8SetV3o\"]\u003c/p>\n\u003cp>His $122.6 billion \u003ca href=\"http://www.ebudget.ca.gov/FullBudgetSummary.pdf\" target=\"_blank\">general fund budget\u003c/a> keeps higher education tuition flat, adds billions for K-12 education and drops another $2 billion into the voter-approved rainy day fund.\u003c/p>\n\u003cp>Brown also \u003ca href=\"http://ww2.kqed.org/stateofhealth/2016/01/07/browns-budget-plan-new-managed-care-tax-increase-ssi-benefits-more-medi-cal-enrollment/\" target=\"_blank\">offers a fix \u003c/a>for a state tax on managed care organizations (\u003ca href=\"http://www.lao.ca.gov/handouts/health/2015/Overview-of-MCO-Tax-070215.pdf\" target=\"_blank\">MCO\u003c/a>) that's set to expire July 1. That expiration would leave a $1.1 billion gap (state and matching federal funds) in the budget unless it's fixed.\u003c/p>\n\u003cp>The governor has been working with insurers to develop a compromise plan they can live with. The MCO tax will provide more funds for Medi-Cal recipients, which, thanks to the Affordable Care Act, now number more than 13 million Californians.\u003c/p>\n\u003cp>And he linked passage of that tax to something relished by Republicans and Democrats alike: More funding for services to the developmentally disabled.\u003c/p>\n\u003cp>The governor's spending plan already includes $130 million in additional funds for the developmentally disabled, but passage of the MCO could be used to supplement those funds.\u003c/p>\n\u003caside class=\"pullquote alignright\">'This is not a candy store where you can pick out whatever you want... There’ll be a tendency just to do everything and I’ll have to straighten it out in the end.'\u003ccite>Gov. Jerry Brown\u003c/cite>\u003c/aside>\n\u003cp>Initial reaction from Republicans was lukewarm.\u003c/p>\n\u003cp>\"It's a bit unconscionable that one would tie the funding for the developmentally disabled community to a tax that has nothing to do with them,\" said Assemblywoman Melissa Melendez (R-Lake Elsinore). \"I think we can fund that community with the resources we have.\"\u003c/p>\n\u003cp>The governor called a special session of the Legislature last summer urging lawmakers to deal with the MCO tax before it expired. But there was no action, as Republicans refused to go along with the revenue plan. Brown is offering this plan, which health insurers support, in hopes of solving this dilemma sooner rather than later.\u003c/p>\n\u003cp>Other highlights in the budget:\u003c/p>\n\u003cul>\n\u003cli>$24.6 million to fund 126 state workers tasked with creating the state's first licensing and operating rules for marijuana growers, dispensaries, etc. The money would be spread among several oversight agencies, including Consumer Affairs and Food and Agriculture.\u003c/li>\n\u003cli>$323 million to address the drought and another $215 million to fight wildfires.\u003c/li>\n\u003cli>A 10-year transportation proposal to spend $16 billion on highway and roads maintenance.\u003c/li>\n\u003cli>A new $65 fee on vehicles and changes to gas and diesel taxes to generate $1 billion a year to help pay for highway maintenance. The fee would apply to electric and hybrid vehicles, which pay less in taxes since they use less gasoline than other cars.\u003c/li>\n\u003cli>A cost-of-living increase for low-income seniors and disabled individuals, the first since 2006.\u003c/li>\n\u003c/ul>\n\u003cp>For their part, Democrats expressed restrained praise for the governor's plan. \"While I appreciate the governor's continued conservative approach reflected in his budget, we must discuss the needs of Californians still impacted by the deep cuts of the recession,\" Sen. Mark Leno (D-San Francisco) said in a written statement.\u003c/p>\n\u003cp>State Senate President pro Tempore \u003ca href=\"http://sd24.senate.ca.gov/\" target=\"_blank\">Kevin de León \u003c/a>added, \"We still have to take a closer look at strengthening our health care system for the poor and developmentally disabled that has been starved for far too long.\"\u003c/p>\n\u003cp>Today's budget is just the first move by a governor who clearly wants his legacy to include fiscal prudence.\u003c/p>\n\u003cp>\"You know this is not a candy store where you can pick out whatever you want,\" Brown said. \"But there'll be a tendency just to do everything and I'll have to straighten it out in the end.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Father Clark would be proud.\u003c/p>\n\n",
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"excerpt": "As he released a new budget Thursday, Gov. Brown clearly relished his role as the Capitol's Cassandra, warning of impending economic doom.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>In the middle of his \"good news\" budget press conference Thursday morning, Gov. Jerry Brown took a moment to fondly remember a Jesuit teacher he had at \u003ca href=\"http://www.siprep.org/\">St. Ignatius High School \u003c/a>in San Francisco.\u003c/p>\n\u003cp>\"Father Clark taught economics,\" said Brown, who referred to a jagged line the instructor drew for the class. \"And I still remember him going to the blackboard and saying, \"You know what this is? It's the business cycle.'\"\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/240982971&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/240982971'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Brown had his own chart, which looked like the Sierra Nevada, with jagged peaks and deep valleys representing the unpredictable boom and bust of California's capital gains revenue.\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder.png\" rel=\"attachment wp-att-10824950\">\u003cimg class=\"aligncenter size-medium wp-image-10824950\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-800x450.png\" alt=\"Capital_Gains_Cap_Gains_chartbuilder\" width=\"800\" height=\"450\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-800x450.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-400x225.png 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-768x432.png 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-1180x664.png 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder-960x540.png 960w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/Capital_Gains_Cap_Gains_chartbuilder.png 1280w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>His point: \"It's a very simple matter. If you don't remember anything else, just remember everything that goes up comes down.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>He clearly relishes his role as the Capitol's \u003ca href=\"https://en.wikipedia.org/wiki/Cassandra\" target=\"_blank\">Cassandra\u003c/a>, warning of impending doom just around the corner.\u003c/p>\n\u003cp>\"We've had 10 recessions since World War II,\" Professor Brown said, \"but nobody ever plans for it. So it's always a surprise -- oh my gosh, the budget's dropped $40 billion!\"\u003c/p>\n\u003cp>At least for now, state revenue is running billions ahead of the governor's own projections. And, to be sure, Brown's proposed spending plan reflects that.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>His $122.6 billion \u003ca href=\"http://www.ebudget.ca.gov/FullBudgetSummary.pdf\" target=\"_blank\">general fund budget\u003c/a> keeps higher education tuition flat, adds billions for K-12 education and drops another $2 billion into the voter-approved rainy day fund.\u003c/p>\n\u003cp>Brown also \u003ca href=\"http://ww2.kqed.org/stateofhealth/2016/01/07/browns-budget-plan-new-managed-care-tax-increase-ssi-benefits-more-medi-cal-enrollment/\" target=\"_blank\">offers a fix \u003c/a>for a state tax on managed care organizations (\u003ca href=\"http://www.lao.ca.gov/handouts/health/2015/Overview-of-MCO-Tax-070215.pdf\" target=\"_blank\">MCO\u003c/a>) that's set to expire July 1. That expiration would leave a $1.1 billion gap (state and matching federal funds) in the budget unless it's fixed.\u003c/p>\n\u003cp>The governor has been working with insurers to develop a compromise plan they can live with. The MCO tax will provide more funds for Medi-Cal recipients, which, thanks to the Affordable Care Act, now number more than 13 million Californians.\u003c/p>\n\u003cp>And he linked passage of that tax to something relished by Republicans and Democrats alike: More funding for services to the developmentally disabled.\u003c/p>\n\u003cp>The governor's spending plan already includes $130 million in additional funds for the developmentally disabled, but passage of the MCO could be used to supplement those funds.\u003c/p>\n\u003caside class=\"pullquote alignright\">'This is not a candy store where you can pick out whatever you want... There’ll be a tendency just to do everything and I’ll have to straighten it out in the end.'\u003ccite>Gov. Jerry Brown\u003c/cite>\u003c/aside>\n\u003cp>Initial reaction from Republicans was lukewarm.\u003c/p>\n\u003cp>\"It's a bit unconscionable that one would tie the funding for the developmentally disabled community to a tax that has nothing to do with them,\" said Assemblywoman Melissa Melendez (R-Lake Elsinore). \"I think we can fund that community with the resources we have.\"\u003c/p>\n\u003cp>The governor called a special session of the Legislature last summer urging lawmakers to deal with the MCO tax before it expired. But there was no action, as Republicans refused to go along with the revenue plan. Brown is offering this plan, which health insurers support, in hopes of solving this dilemma sooner rather than later.\u003c/p>\n\u003cp>Other highlights in the budget:\u003c/p>\n\u003cul>\n\u003cli>$24.6 million to fund 126 state workers tasked with creating the state's first licensing and operating rules for marijuana growers, dispensaries, etc. The money would be spread among several oversight agencies, including Consumer Affairs and Food and Agriculture.\u003c/li>\n\u003cli>$323 million to address the drought and another $215 million to fight wildfires.\u003c/li>\n\u003cli>A 10-year transportation proposal to spend $16 billion on highway and roads maintenance.\u003c/li>\n\u003cli>A new $65 fee on vehicles and changes to gas and diesel taxes to generate $1 billion a year to help pay for highway maintenance. The fee would apply to electric and hybrid vehicles, which pay less in taxes since they use less gasoline than other cars.\u003c/li>\n\u003cli>A cost-of-living increase for low-income seniors and disabled individuals, the first since 2006.\u003c/li>\n\u003c/ul>\n\u003cp>For their part, Democrats expressed restrained praise for the governor's plan. \"While I appreciate the governor's continued conservative approach reflected in his budget, we must discuss the needs of Californians still impacted by the deep cuts of the recession,\" Sen. Mark Leno (D-San Francisco) said in a written statement.\u003c/p>\n\u003cp>State Senate President pro Tempore \u003ca href=\"http://sd24.senate.ca.gov/\" target=\"_blank\">Kevin de León \u003c/a>added, \"We still have to take a closer look at strengthening our health care system for the poor and developmentally disabled that has been starved for far too long.\"\u003c/p>\n\u003cp>Today's budget is just the first move by a governor who clearly wants his legacy to include fiscal prudence.\u003c/p>\n\u003cp>\"You know this is not a candy store where you can pick out whatever you want,\" Brown said. \"But there'll be a tendency just to do everything and I'll have to straighten it out in the end.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Father Clark would be proud.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "In Reversal, Some Drivers Ditching Uber and Lyft for Cabs",
"title": "In Reversal, Some Drivers Ditching Uber and Lyft for Cabs",
"headTitle": "News Fix | KQED News",
"content": "\u003cp>As you will quickly discover if you ask your cab driver what he or she thinks about Uber and Lyft, those who work in the taxi industry consider the ride-service companies to be four-letter words of another order.\u003c/p>\n\u003cp>Still, over the past few years, San Francisco taxi companies have had trouble filling their shifts. That's because drivers have jumped ship to work for the upstarts, and new drivers entering the profession have opted for the ride services as well.\u003c/p>\n\u003cp>The San Francisco Examiner reported on Wednesday that Yellow Cab, the largest taxi company in the city, \u003ca href=\"http://www.sfexaminer.com/yellow-cab-to-file-for-bankruptcy/\" target=\"_blank\">will soon file for bankruptcy\u003c/a> in order to restructure its business.\u003c/p>\n\u003cp>\"On background, multiple sources told the Examiner that cab companies are having a tough time hiring competent drivers and may be hiring drivers with spotty driving records,\" the paper said.\u003c/p>\n\u003cp>Yet, there are other drivers who have taken the opposite route, going from Uber and Lyft to driving a cab.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Mickey Kelley operates the San Francisco Taxi School, which offers prospective cab drivers the courses they must take to get licensed. Classes range from five to 15 students each week. He estimates that from one-third to one-half of his students over the last six months have been former Uber and Lyft drivers.\u003c/p>\n\u003cp>“It started longer than six months ago, but about six months ago it really picked up,” he said.\u003c/p>\n\u003cp>Some of those were former cab drivers who had let their licenses expire when they moved on to the ride-service companies but now wanted to return to taxi work, Kelley says.\u003c/p>\n\u003cp>\"We’ve had cab drivers that quit driving a cab [to work for a ride-service firm], and a lot of those guys have come back and had to drive a cab again,“ he said.\u003c/p>\n\u003cp>Hansu Kim, owner of Flywheel Cab, said he's seen the same thing.\u003c/p>\n\u003cp>“We’re seeing a stream of UberX and Lyft drivers looking to drive a taxi now,\" Kim said. \"It used to be a trickle, now it’s more of a stream. Not the floodgates, yet.”\u003c/p>\n\u003cp>Flywheel referred me to Abdallah Hammad, 49, who has been driving for the company for about three years. To supplement his income, he drove on the side for both Uber and Lyft for about a year, but stopped around seven or eight months ago. The main reason: the extra cost and \"wear and tear\" of using his own car to do business.\u003c/p>\n\u003cp>(Note: Ride-service drivers can get partial relief from this expense by using the standard mileage-rate deduction on their tax returns.)\u003c/p>\n\u003cp>Hammad said that twice during Uber calls, customers became angry at the inflated fares they had to pay during a \u003ca href=\"https://www.google.com/search?q=surge+pricing+ube\" target=\"_blank\">surge pricing period\u003c/a> and slammed his car door so hard he had to have his automatic windows repaired.\u003c/p>\n\u003cp>But hadn't those customers agreed to accept the surge price when they ordered the ride?\u003c/p>\n\u003cp>“[Passengers] are \u003ca href=\"http://thegrio.com/2016/01/03/ubers-new-years-eve-surge-pricing-outrages-passengers-worldwide/\" target=\"_blank\">still mad\u003c/a>, even though they know in advance,” he said.\u003c/p>\n\u003cp>Hammad said passengers who had to fork over during a surge also tended to give him a lower rating. Uber drivers must maintain a 4.6 passenger rating or be \u003ca href=\"http://observer.com/2015/02/uber-drivers-the-punishment-for-bad-ratings-is-costly-training-courses/\" target=\"_blank\">suspended from driving\u003c/a>.\u003c/p>\n\u003cp>Kelly Dessaint, 44, who chronicles his \u003ca href=\"http://www.sfexaminer.com/author/k_dessaint/\" target=\"_blank\">adventures as a cab driver\u003c/a> for the San Francisco Examiner, started his professional driving career working for Uber and Lyft in 2014. But he quit early last year, went to taxi school, and has been driving for National Veterans Cab in San Francisco since February. He says he likes the feeling of community among cab drivers and that he makes more money driving a taxi than he did for Uber and Lyft.\u003c/p>\n\u003cp>“You’re doing all these $5 rides, you’re not getting tipped,” he said about driving for the ride services. “With a cab you can talk it up and people will tip you really well.”\u003c/p>\n\u003cp>Uber doesn’t \u003ca href=\"http://www.scpr.org/news/2015/10/21/55137/uber-tips-policy-causing-confusion-possibly-lower/\">allow tipping\u003c/a>, and Dessaint says \"you can tip on Lyft but nobody does. It’s so rare.” (Lyft says passengers collectively \u003ca href=\"http://thehub.lyft.com/blog/2015-highlights-for-drivers?utm_medium=Email&utm_source=ExactTarget&utm_campaign=82821259\" target=\"_blank\">gave more than $40 million in tips\u003c/a> to its 100,000 drivers in 2015. That's an average of $400 for each driver.)\u003c/p>\n\u003cp>Kelley, of the San Francisco Taxi School, believes that ride-service drivers who do the math discover that after maintenance and depreciation on their vehicle, they can do better driving a cab, which hasn't always been the case.\u003c/p>\n\u003cp>\"If you go back two years ago, it used to be pretty profitable to drive for [the ride services],\" he said. \"It’s just not anymore.\"\u003c/p>\n\u003cp>A price war between Uber and Lyft has contributed to a \u003ca href=\"http://fortune.com/2014/05/28/in-price-wars-some-uber-and-lyft-drivers-feel-the-crunch/\" target=\"_blank\">decline in driver pay\u003c/a>. Michael Banko, for instance, who has been driving for Lyft in San Francisco since 2012, said the lower rates that Lyft now charges have cut his driving income in half. He did say, however, that he gets tips from passengers “all the time.”\u003c/p>\n\u003cp>\u003cstrong>How Much Do Ride Service Drivers Really Make? \u003c/strong>\u003c/p>\n\u003cp>Nobody has really figured out, empirically, whether taxi or TNC (transportation network company) drivers make more money. Early last year, Uber released data that showed their drivers having the advantage.\u003c/p>\n\u003cp>\"A lot of former taxi drivers have decided they wanted to work for themselves and become self-employed,” the company wrote in an April 2015 \u003ca href=\"https://newsroom.uber.com/taxi-driver-jobs-vs-driving-with-uber/\">Uber Newsroom post\u003c/a>. \"These ex-taxicab drivers are choosing Uber because they like making more money and having a much more flexible schedule.” The post included this graphic: \u003cimg class=\"aligncenter size-full wp-image-10815071\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/12/uberEarnings.jpg\" alt=\"uberEarnings\" width=\"788\" height=\"525\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/12/uberEarnings.jpg 788w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/uberEarnings-400x266.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/uberEarnings-768x512.jpg 768w\" sizes=\"(max-width: 788px) 100vw, 788px\">\u003c/p>\n\u003cp>That $19.04 per hour figure comes from a \u003ca href=\"http://www.bsgco.com/insights/uber-the-driver-roadmap\" target=\"_blank\">December 2014 survey\u003c/a> by Benenson Strategy Group of 601 Uber \"driver partners\" in 20 markets. An Uber \u003ca href=\"https://s3.amazonaws.com/uber-static/comms/PDF/Uber_Driver-Partners_Hall_Kreuger_2015.pdf\" target=\"_blank\">analysis\u003c/a>, put together in conjunction with economist Alan B. Krueger, also cited data in a \u003ca href=\"http://stats.bls.gov/oes/2013/may/oes533041.htm\" target=\"_blank\">May 2013 Occupational Employment Statistics Survey\u003c/a> by the U.S. Bureau of Labor Statistics to show that taxi and limo drivers in six key markets made a median wage of $12.90 per hour, compared with Uber drivers' $19.19. But the Uber earnings figures \u003ca href=\"https://www.washingtonpost.com/news/the-switch/wp/2015/01/22/the-missing-data-point-from-ubers-driver-analysis-how-far-they-drive/\" target=\"_blank\">do not subtract the cost of gas, insurance and other expenses, like repairs\u003c/a>. (Newsweek \u003ca href=\"http://www.newsweek.com/thousands-drivers-declined-take-uber-survey-which-claims-78-drivers-satisfied-301252\" target=\"_blank\">also noted \u003c/a>that Uber price cuts went into effect soon after the survey. )\u003c/p>\n\u003cp>A similar survey released by Uber last month notably didn't address \u003ca href=\"http://www.sfgate.com/business/article/Uber-survey-highlights-driver-happiness-ignores-6676872.php\" target=\"_blank\">how much\u003c/a> drivers make.\u003c/p>\n\u003cp>Another data point: In September and October 2015, Sherpashare, a company that helps ride-service drivers track their earnings, surveyed 963 Uber and Lyft drivers. You can see self-reported gross income in this \u003ca href=\"https://www.sherpashare.com/share/the-top-demographic-trends-of-the-on-demand-workforce-appendix/\" target=\"_blank\">chart\u003c/a>.\u003c/p>\n\u003cp>The data found a big discrepancy in earnings between drivers over and under 55. Those who worked 31 to 40 hours per week and were 55 or under made an average of $2,162 gross per month, while those over 55 made $1,662.\u003c/p>\n\u003cp>Another \u003ca href=\"https://www.sherpashare.com/share/what-uber-lyft-drivers-earn-per-trip/\" target=\"_blank\">SherpaShare study\u003c/a>, “based on millions of UberX and Lyft trips tracked by drivers on the SherpaShare platform,” reported the average gross earnings per trip in May 2015 for each company in major cities.\u003c/p>\n\u003cp>In San Francisco, the average trip earned UberX drivers -- and again, these are gross earnings --- $14.65. Lyft drivers grossed $13.42 a trip.\u003c/p>\n\u003cp>And yet another set of numbers: \u003ca href=\"http://ww2.kqed.org/news/2015/11/16/california-regulators-offer-a-tiny-glimpse-of-data-from-uber-and-lyft\" target=\"_blank\">Aggregated data for all ride-service trips\u003c/a> in California presented at a Nov. 5 meeting of the California Public Utilities Commission and obtained by KQED combine stats submitted by UberX, Lyft, Sidecar, Summon, Wings and Shuddle. It shows the distribution of rides by the amount that passengers paid over 2014-15. Almost half of all fares were under $10, with an additional 23 percent between $10 to $15. A driver's share would be less than that after Uber and Lyft took their cut.\u003c/p>\n\u003cp>The \u003ca href=\"http://www.bls.gov/oes/current/oes533041.htm\" target=\"_blank\">May 2014 Occupational Employment Statistics Survey\u003c/a> found 178,000 cab drivers and chauffeurs in the country made an average of almost $26,000, or $12.35 per hour. In California, the average was $28,190 and $13.56 per hour.\u003c/p>\n\u003cp>\u003cstrong>A Former Cab Driver Who Loves Uber\u003c/strong>\u003c/p>\n\u003cp>In response to taxi driver Abdallah Hammad's negative experience driving for Uber, company spokeswoman Eva Behrend referred me to current UberX driver Tammy Johnson, of East Oakland.\u003c/p>\n\u003cp>Johnson, 38, told me she loves working for Uber, after driving for cab companies in San Leandro and Walnut Creek, where she experienced \"harassment in different forms. Everyone trying to hit on you.\"\u003c/p>\n\u003cp>Financial concerns also compelled her to switch. In general, every time taxi drivers go out on a shift, there's a chance they'll actually \u003cem>lose\u003c/em> money, because most of them lease their vehicles from the cab companies. Combine that with the cost of gas, and drivers start every shift in the hole. Johnson says that at least five times she didn't make enough money in fares to cover her daily costs.\u003c/p>\n\u003cp>She also said there was \"too much favoritism. Family members and insiders got the best calls.\" She felt compelled to buy dispatchers lunch or a bottle of wine to gain favor.\u003c/p>\n\u003cp>To be sure, the taxi industry has long had a reputation as a place where drivers \u003ca href=\"http://ww2.kqed.org/news/2013/12/11/taxi-drivers-and-whos-taking-money-out-of-their-pockets\" target=\"_blank\">have to pay cab company employees\u003c/a>. The San Francisco Transportation Code prohibits these payments, which some in the industry call tips, and others refer to as bribes, but the rule is unenforced.\u003c/p>\n\u003cp>While the amounts may seem small, they can add up. For example, John Han, a longtime San Francisco cab driver, told me he switched back to working at Yellow Cab in part because dispatchers at another company, which he didn't want to name, were demanding a total of $10 per day instead of the $6 he had been paying at Yellow.\u003c/p>\n\u003cp>Drivers are generally split over the fairness of this tipping system -- some don't mind, some say it's onerous. Either way, even $10 a day over the course of a year can easily add up to a couple of thousand dollars in a job that doesn't pay much to begin with. In 2014, one cab driver I talked to told me he was quitting to go to work for a ride service specifically because of having to pay taxi dispatchers.\u003c/p>\n\u003cp>\u003cstrong>New Taxi Meters: Leveling the Playing Field?\u003c/strong>\u003c/p>\n\u003cp>Last month, California's Division of Measurement Standards \u003ca href=\"http://www.sfchronicle.com/business/article/Flywheel-aims-to-replace-taxi-meters-with-6713925.php\" target=\"_blank\">approved TaxiOS\u003c/a> from Redwood City's Flywheel, a new GPS-based taxicab metering system. That's the same Flywheel that enables passengers to request cabs, track their location and pay, all via smartphones, just like Uber and Lyft.\u003c/p>\n\u003cp>Flywheel says about 80 percent of San Francisco cabs now accept calls from its app. The requests go out to every taxi that uses the system regardless of which company they work for.\u003c/p>\n\u003cp>Susan Shaheen, co-director of the \u003ca href=\"http://tsrc.berkeley.edu/\" target=\"_blank\">Transportation Sustainability Research Center\u003c/a> at UC Berkeley, last month \u003ca href=\"https://soundcloud.com/kqed/california-allows-smartphone-metered-taxis\" target=\"_blank\">told KQED's Mina Kim\u003c/a> that TaxiOS, which works with Android phones, will add \"an additional layer of flexibility to the taxi industry,\" allowing fare-splitting among customers and dynamic prices based on demand.\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/238752982\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>Hansu Kim -- who likes Flywheel's e-hailing system so much he \u003ca href=\"http://www.sfgate.com/business/article/DeSoto-S-F-s-oldest-taxi-firm-rebrands-6087480.php\" target=\"_blank\">renamed his company\u003c/a> after it -- thinks the new TaxiOS meters will further enable cabbies to compete with Uber and Lyft drivers. About 50 Flywheel cabs participated in a recent two-month pilot program of the new meters.\u003c/p>\n\u003cp>Kim believes the abundance of San Francisco cabs that have adopted Flywheel's convenient e-hailing system leaves Uber and Lyft with the sole advantage of lower prices. He says the new meters will offer his drivers the ability to compete on cost, too.\u003c/p>\n\u003cp>\"With our [new] system we can now go to lower rates, more competitive rates ... where they’re appropriate,\" he said.\u003c/p>\n\u003cp>Flywheel -- the smartphone platform, not the cab company -- will create an algorithm that lowers prices when demand is low, Kim said. Those calls will be offered to cab drivers, who can decide whether to take them or not.\u003c/p>\n\u003cp>Cabs will still not be able to charge more during periods of high demand, as Uber has \u003ca href=\"http://bgr.com/2016/01/04/new-years-eve-uber-surge-pricing-reactions/\" target=\"_blank\">notoriously done\u003c/a>, because the San Francisco Municipal Transportation Agency has to approve any higher fares. However, Kim says, customers can lure cabs when they appear to be scarce through a pre-tipping component on the Flywheel app.\u003c/p>\n\u003cp>\"A passenger through their app can say I’m going to tip you 10 bucks, or 20 percent, and that creates a tremendous incentive for someone to ... go pick up that fare.\"\u003c/p>\n\u003cp>Kim said TaxiOS will also allow him to offer drivers a \"split meter system,\" in which the problem that former cab driver Tammy Johnson described -- leasing a cab and then not making enough money to cover the cost of the rental -- wouldn't be a risk, because the cab company will take only a portion of what the driver makes, the same business model that Uber and Lyft use.\u003c/p>\n\u003cp>\"I need to be able to lease vehicles to drivers who want to drive just a few hours a week part time,\" Kim said. \"So the traditional payment system, where you pay a lease for a cab for a certain amount of time, that needs to change.\"\u003c/p>\n\u003cp>The two taxi drivers I spoke to about the new TaxiOS meters were less than enthusiastic, if not downright suspicious.\u003c/p>\n\u003cp>\"Ultimately, the new Flywheel meters are fixing a problem that doesn’t exist,\" said Kelly Dessaint. He said his customers already split fares and negotiate for lower fares on slow nights. And he considers the algorithmic ability to decrease prices to be a bug, not a feature.\u003c/p>\n\u003cp>\"It becomes a race to the bottom,\" he said. \"And that's how Uber and Lyft screw their drivers.\"\u003c/p>\n\u003cp>(Uber has \u003ca href=\"https://newsroom.uber.com/beating-the-winter-slump-price-cuts-for-riders-with-guaranteed-earnings-for-drivers/\" target=\"_blank\">claimed\u003c/a> drivers actually make more in \u003ca href=\"https://ww2.kqed.org/wp-content/uploads/2015/01/uber_PriceCuts_BlogInfographic-01.png\" target=\"_blank\">some cities\u003c/a> under the price cuts.)\u003c/p>\n\u003cp>John Han, who drives for Yellow Cab, echoed Dessaint's concern.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“I think that’s just participating in a race to the bottom,\" Han said. \"I don't want to compete for these lesser fares. It would be another reason to hand in my keys as a taxi driver.\"\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>As you will quickly discover if you ask your cab driver what he or she thinks about Uber and Lyft, those who work in the taxi industry consider the ride-service companies to be four-letter words of another order.\u003c/p>\n\u003cp>Still, over the past few years, San Francisco taxi companies have had trouble filling their shifts. That's because drivers have jumped ship to work for the upstarts, and new drivers entering the profession have opted for the ride services as well.\u003c/p>\n\u003cp>The San Francisco Examiner reported on Wednesday that Yellow Cab, the largest taxi company in the city, \u003ca href=\"http://www.sfexaminer.com/yellow-cab-to-file-for-bankruptcy/\" target=\"_blank\">will soon file for bankruptcy\u003c/a> in order to restructure its business.\u003c/p>\n\u003cp>\"On background, multiple sources told the Examiner that cab companies are having a tough time hiring competent drivers and may be hiring drivers with spotty driving records,\" the paper said.\u003c/p>\n\u003cp>Yet, there are other drivers who have taken the opposite route, going from Uber and Lyft to driving a cab.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Mickey Kelley operates the San Francisco Taxi School, which offers prospective cab drivers the courses they must take to get licensed. Classes range from five to 15 students each week. He estimates that from one-third to one-half of his students over the last six months have been former Uber and Lyft drivers.\u003c/p>\n\u003cp>“It started longer than six months ago, but about six months ago it really picked up,” he said.\u003c/p>\n\u003cp>Some of those were former cab drivers who had let their licenses expire when they moved on to the ride-service companies but now wanted to return to taxi work, Kelley says.\u003c/p>\n\u003cp>\"We’ve had cab drivers that quit driving a cab [to work for a ride-service firm], and a lot of those guys have come back and had to drive a cab again,“ he said.\u003c/p>\n\u003cp>Hansu Kim, owner of Flywheel Cab, said he's seen the same thing.\u003c/p>\n\u003cp>“We’re seeing a stream of UberX and Lyft drivers looking to drive a taxi now,\" Kim said. \"It used to be a trickle, now it’s more of a stream. Not the floodgates, yet.”\u003c/p>\n\u003cp>Flywheel referred me to Abdallah Hammad, 49, who has been driving for the company for about three years. To supplement his income, he drove on the side for both Uber and Lyft for about a year, but stopped around seven or eight months ago. The main reason: the extra cost and \"wear and tear\" of using his own car to do business.\u003c/p>\n\u003cp>(Note: Ride-service drivers can get partial relief from this expense by using the standard mileage-rate deduction on their tax returns.)\u003c/p>\n\u003cp>Hammad said that twice during Uber calls, customers became angry at the inflated fares they had to pay during a \u003ca href=\"https://www.google.com/search?q=surge+pricing+ube\" target=\"_blank\">surge pricing period\u003c/a> and slammed his car door so hard he had to have his automatic windows repaired.\u003c/p>\n\u003cp>But hadn't those customers agreed to accept the surge price when they ordered the ride?\u003c/p>\n\u003cp>“[Passengers] are \u003ca href=\"http://thegrio.com/2016/01/03/ubers-new-years-eve-surge-pricing-outrages-passengers-worldwide/\" target=\"_blank\">still mad\u003c/a>, even though they know in advance,” he said.\u003c/p>\n\u003cp>Hammad said passengers who had to fork over during a surge also tended to give him a lower rating. Uber drivers must maintain a 4.6 passenger rating or be \u003ca href=\"http://observer.com/2015/02/uber-drivers-the-punishment-for-bad-ratings-is-costly-training-courses/\" target=\"_blank\">suspended from driving\u003c/a>.\u003c/p>\n\u003cp>Kelly Dessaint, 44, who chronicles his \u003ca href=\"http://www.sfexaminer.com/author/k_dessaint/\" target=\"_blank\">adventures as a cab driver\u003c/a> for the San Francisco Examiner, started his professional driving career working for Uber and Lyft in 2014. But he quit early last year, went to taxi school, and has been driving for National Veterans Cab in San Francisco since February. He says he likes the feeling of community among cab drivers and that he makes more money driving a taxi than he did for Uber and Lyft.\u003c/p>\n\u003cp>“You’re doing all these $5 rides, you’re not getting tipped,” he said about driving for the ride services. “With a cab you can talk it up and people will tip you really well.”\u003c/p>\n\u003cp>Uber doesn’t \u003ca href=\"http://www.scpr.org/news/2015/10/21/55137/uber-tips-policy-causing-confusion-possibly-lower/\">allow tipping\u003c/a>, and Dessaint says \"you can tip on Lyft but nobody does. It’s so rare.” (Lyft says passengers collectively \u003ca href=\"http://thehub.lyft.com/blog/2015-highlights-for-drivers?utm_medium=Email&utm_source=ExactTarget&utm_campaign=82821259\" target=\"_blank\">gave more than $40 million in tips\u003c/a> to its 100,000 drivers in 2015. That's an average of $400 for each driver.)\u003c/p>\n\u003cp>Kelley, of the San Francisco Taxi School, believes that ride-service drivers who do the math discover that after maintenance and depreciation on their vehicle, they can do better driving a cab, which hasn't always been the case.\u003c/p>\n\u003cp>\"If you go back two years ago, it used to be pretty profitable to drive for [the ride services],\" he said. \"It’s just not anymore.\"\u003c/p>\n\u003cp>A price war between Uber and Lyft has contributed to a \u003ca href=\"http://fortune.com/2014/05/28/in-price-wars-some-uber-and-lyft-drivers-feel-the-crunch/\" target=\"_blank\">decline in driver pay\u003c/a>. Michael Banko, for instance, who has been driving for Lyft in San Francisco since 2012, said the lower rates that Lyft now charges have cut his driving income in half. He did say, however, that he gets tips from passengers “all the time.”\u003c/p>\n\u003cp>\u003cstrong>How Much Do Ride Service Drivers Really Make? \u003c/strong>\u003c/p>\n\u003cp>Nobody has really figured out, empirically, whether taxi or TNC (transportation network company) drivers make more money. Early last year, Uber released data that showed their drivers having the advantage.\u003c/p>\n\u003cp>\"A lot of former taxi drivers have decided they wanted to work for themselves and become self-employed,” the company wrote in an April 2015 \u003ca href=\"https://newsroom.uber.com/taxi-driver-jobs-vs-driving-with-uber/\">Uber Newsroom post\u003c/a>. \"These ex-taxicab drivers are choosing Uber because they like making more money and having a much more flexible schedule.” The post included this graphic: \u003cimg class=\"aligncenter size-full wp-image-10815071\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/12/uberEarnings.jpg\" alt=\"uberEarnings\" width=\"788\" height=\"525\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/12/uberEarnings.jpg 788w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/uberEarnings-400x266.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/uberEarnings-768x512.jpg 768w\" sizes=\"(max-width: 788px) 100vw, 788px\">\u003c/p>\n\u003cp>That $19.04 per hour figure comes from a \u003ca href=\"http://www.bsgco.com/insights/uber-the-driver-roadmap\" target=\"_blank\">December 2014 survey\u003c/a> by Benenson Strategy Group of 601 Uber \"driver partners\" in 20 markets. An Uber \u003ca href=\"https://s3.amazonaws.com/uber-static/comms/PDF/Uber_Driver-Partners_Hall_Kreuger_2015.pdf\" target=\"_blank\">analysis\u003c/a>, put together in conjunction with economist Alan B. Krueger, also cited data in a \u003ca href=\"http://stats.bls.gov/oes/2013/may/oes533041.htm\" target=\"_blank\">May 2013 Occupational Employment Statistics Survey\u003c/a> by the U.S. Bureau of Labor Statistics to show that taxi and limo drivers in six key markets made a median wage of $12.90 per hour, compared with Uber drivers' $19.19. But the Uber earnings figures \u003ca href=\"https://www.washingtonpost.com/news/the-switch/wp/2015/01/22/the-missing-data-point-from-ubers-driver-analysis-how-far-they-drive/\" target=\"_blank\">do not subtract the cost of gas, insurance and other expenses, like repairs\u003c/a>. (Newsweek \u003ca href=\"http://www.newsweek.com/thousands-drivers-declined-take-uber-survey-which-claims-78-drivers-satisfied-301252\" target=\"_blank\">also noted \u003c/a>that Uber price cuts went into effect soon after the survey. )\u003c/p>\n\u003cp>A similar survey released by Uber last month notably didn't address \u003ca href=\"http://www.sfgate.com/business/article/Uber-survey-highlights-driver-happiness-ignores-6676872.php\" target=\"_blank\">how much\u003c/a> drivers make.\u003c/p>\n\u003cp>Another data point: In September and October 2015, Sherpashare, a company that helps ride-service drivers track their earnings, surveyed 963 Uber and Lyft drivers. You can see self-reported gross income in this \u003ca href=\"https://www.sherpashare.com/share/the-top-demographic-trends-of-the-on-demand-workforce-appendix/\" target=\"_blank\">chart\u003c/a>.\u003c/p>\n\u003cp>The data found a big discrepancy in earnings between drivers over and under 55. Those who worked 31 to 40 hours per week and were 55 or under made an average of $2,162 gross per month, while those over 55 made $1,662.\u003c/p>\n\u003cp>Another \u003ca href=\"https://www.sherpashare.com/share/what-uber-lyft-drivers-earn-per-trip/\" target=\"_blank\">SherpaShare study\u003c/a>, “based on millions of UberX and Lyft trips tracked by drivers on the SherpaShare platform,” reported the average gross earnings per trip in May 2015 for each company in major cities.\u003c/p>\n\u003cp>In San Francisco, the average trip earned UberX drivers -- and again, these are gross earnings --- $14.65. Lyft drivers grossed $13.42 a trip.\u003c/p>\n\u003cp>And yet another set of numbers: \u003ca href=\"http://ww2.kqed.org/news/2015/11/16/california-regulators-offer-a-tiny-glimpse-of-data-from-uber-and-lyft\" target=\"_blank\">Aggregated data for all ride-service trips\u003c/a> in California presented at a Nov. 5 meeting of the California Public Utilities Commission and obtained by KQED combine stats submitted by UberX, Lyft, Sidecar, Summon, Wings and Shuddle. It shows the distribution of rides by the amount that passengers paid over 2014-15. Almost half of all fares were under $10, with an additional 23 percent between $10 to $15. A driver's share would be less than that after Uber and Lyft took their cut.\u003c/p>\n\u003cp>The \u003ca href=\"http://www.bls.gov/oes/current/oes533041.htm\" target=\"_blank\">May 2014 Occupational Employment Statistics Survey\u003c/a> found 178,000 cab drivers and chauffeurs in the country made an average of almost $26,000, or $12.35 per hour. In California, the average was $28,190 and $13.56 per hour.\u003c/p>\n\u003cp>\u003cstrong>A Former Cab Driver Who Loves Uber\u003c/strong>\u003c/p>\n\u003cp>In response to taxi driver Abdallah Hammad's negative experience driving for Uber, company spokeswoman Eva Behrend referred me to current UberX driver Tammy Johnson, of East Oakland.\u003c/p>\n\u003cp>Johnson, 38, told me she loves working for Uber, after driving for cab companies in San Leandro and Walnut Creek, where she experienced \"harassment in different forms. Everyone trying to hit on you.\"\u003c/p>\n\u003cp>Financial concerns also compelled her to switch. In general, every time taxi drivers go out on a shift, there's a chance they'll actually \u003cem>lose\u003c/em> money, because most of them lease their vehicles from the cab companies. Combine that with the cost of gas, and drivers start every shift in the hole. Johnson says that at least five times she didn't make enough money in fares to cover her daily costs.\u003c/p>\n\u003cp>She also said there was \"too much favoritism. Family members and insiders got the best calls.\" She felt compelled to buy dispatchers lunch or a bottle of wine to gain favor.\u003c/p>\n\u003cp>To be sure, the taxi industry has long had a reputation as a place where drivers \u003ca href=\"http://ww2.kqed.org/news/2013/12/11/taxi-drivers-and-whos-taking-money-out-of-their-pockets\" target=\"_blank\">have to pay cab company employees\u003c/a>. The San Francisco Transportation Code prohibits these payments, which some in the industry call tips, and others refer to as bribes, but the rule is unenforced.\u003c/p>\n\u003cp>While the amounts may seem small, they can add up. For example, John Han, a longtime San Francisco cab driver, told me he switched back to working at Yellow Cab in part because dispatchers at another company, which he didn't want to name, were demanding a total of $10 per day instead of the $6 he had been paying at Yellow.\u003c/p>\n\u003cp>Drivers are generally split over the fairness of this tipping system -- some don't mind, some say it's onerous. Either way, even $10 a day over the course of a year can easily add up to a couple of thousand dollars in a job that doesn't pay much to begin with. In 2014, one cab driver I talked to told me he was quitting to go to work for a ride service specifically because of having to pay taxi dispatchers.\u003c/p>\n\u003cp>\u003cstrong>New Taxi Meters: Leveling the Playing Field?\u003c/strong>\u003c/p>\n\u003cp>Last month, California's Division of Measurement Standards \u003ca href=\"http://www.sfchronicle.com/business/article/Flywheel-aims-to-replace-taxi-meters-with-6713925.php\" target=\"_blank\">approved TaxiOS\u003c/a> from Redwood City's Flywheel, a new GPS-based taxicab metering system. That's the same Flywheel that enables passengers to request cabs, track their location and pay, all via smartphones, just like Uber and Lyft.\u003c/p>\n\u003cp>Flywheel says about 80 percent of San Francisco cabs now accept calls from its app. The requests go out to every taxi that uses the system regardless of which company they work for.\u003c/p>\n\u003cp>Susan Shaheen, co-director of the \u003ca href=\"http://tsrc.berkeley.edu/\" target=\"_blank\">Transportation Sustainability Research Center\u003c/a> at UC Berkeley, last month \u003ca href=\"https://soundcloud.com/kqed/california-allows-smartphone-metered-taxis\" target=\"_blank\">told KQED's Mina Kim\u003c/a> that TaxiOS, which works with Android phones, will add \"an additional layer of flexibility to the taxi industry,\" allowing fare-splitting among customers and dynamic prices based on demand.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/238752982&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/238752982'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Hansu Kim -- who likes Flywheel's e-hailing system so much he \u003ca href=\"http://www.sfgate.com/business/article/DeSoto-S-F-s-oldest-taxi-firm-rebrands-6087480.php\" target=\"_blank\">renamed his company\u003c/a> after it -- thinks the new TaxiOS meters will further enable cabbies to compete with Uber and Lyft drivers. About 50 Flywheel cabs participated in a recent two-month pilot program of the new meters.\u003c/p>\n\u003cp>Kim believes the abundance of San Francisco cabs that have adopted Flywheel's convenient e-hailing system leaves Uber and Lyft with the sole advantage of lower prices. He says the new meters will offer his drivers the ability to compete on cost, too.\u003c/p>\n\u003cp>\"With our [new] system we can now go to lower rates, more competitive rates ... where they’re appropriate,\" he said.\u003c/p>\n\u003cp>Flywheel -- the smartphone platform, not the cab company -- will create an algorithm that lowers prices when demand is low, Kim said. Those calls will be offered to cab drivers, who can decide whether to take them or not.\u003c/p>\n\u003cp>Cabs will still not be able to charge more during periods of high demand, as Uber has \u003ca href=\"http://bgr.com/2016/01/04/new-years-eve-uber-surge-pricing-reactions/\" target=\"_blank\">notoriously done\u003c/a>, because the San Francisco Municipal Transportation Agency has to approve any higher fares. However, Kim says, customers can lure cabs when they appear to be scarce through a pre-tipping component on the Flywheel app.\u003c/p>\n\u003cp>\"A passenger through their app can say I’m going to tip you 10 bucks, or 20 percent, and that creates a tremendous incentive for someone to ... go pick up that fare.\"\u003c/p>\n\u003cp>Kim said TaxiOS will also allow him to offer drivers a \"split meter system,\" in which the problem that former cab driver Tammy Johnson described -- leasing a cab and then not making enough money to cover the cost of the rental -- wouldn't be a risk, because the cab company will take only a portion of what the driver makes, the same business model that Uber and Lyft use.\u003c/p>\n\u003cp>\"I need to be able to lease vehicles to drivers who want to drive just a few hours a week part time,\" Kim said. \"So the traditional payment system, where you pay a lease for a cab for a certain amount of time, that needs to change.\"\u003c/p>\n\u003cp>The two taxi drivers I spoke to about the new TaxiOS meters were less than enthusiastic, if not downright suspicious.\u003c/p>\n\u003cp>\"Ultimately, the new Flywheel meters are fixing a problem that doesn’t exist,\" said Kelly Dessaint. He said his customers already split fares and negotiate for lower fares on slow nights. And he considers the algorithmic ability to decrease prices to be a bug, not a feature.\u003c/p>\n\u003cp>\"It becomes a race to the bottom,\" he said. \"And that's how Uber and Lyft screw their drivers.\"\u003c/p>\n\u003cp>(Uber has \u003ca href=\"https://newsroom.uber.com/beating-the-winter-slump-price-cuts-for-riders-with-guaranteed-earnings-for-drivers/\" target=\"_blank\">claimed\u003c/a> drivers actually make more in \u003ca href=\"https://ww2.kqed.org/wp-content/uploads/2015/01/uber_PriceCuts_BlogInfographic-01.png\" target=\"_blank\">some cities\u003c/a> under the price cuts.)\u003c/p>\n\u003cp>John Han, who drives for Yellow Cab, echoed Dessaint's concern.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“I think that’s just participating in a race to the bottom,\" Han said. \"I don't want to compete for these lesser fares. It would be another reason to hand in my keys as a taxi driver.\"\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>As he prepares to release a new state budget proposal Thursday, Gov. Jerry Brown is looking at a more-than-generous surplus.\u003c/p>\n\u003cp>The nonpartisan Legislative Analyst’s Office estimates revenues could be \u003ca href=\"http://www.lao.ca.gov/Publications/Detail/3305\" target=\"_blank\">$3.6 billion\u003c/a> above projections. The influx of cash means many will be eager to replenish programs that were slashed during the recession.\u003c/p>\n\u003cp>Chris Hoene leads the California Budget and Policy Center.\u003c/p>\n\u003cp>“The reality is that the revenue collections the state’s been realizing over the last year are dramatically above where the governor had projected and even where the budget ended up,\" he says. \"And that means there’s enough money on the table to be fiscally prudent and make some of these investments in the people that have been left behind.”\u003c/p>\n\u003cp>[contextly_sidebar id=\"aJ0ZOXJSPfgi3hFuO7eLP2lHCGUetUo2\"]\u003c/p>\n\u003cp>Hoene lists the state’s welfare program, early childhood education and assistance for low-income seniors and the disabled among the priorities.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>But Claremont McKenna College government professor Jack Pitney says Brown would be smart to maintain his cautious approach, which includes bolstering the state’s reserves.\u003c/p>\n\u003cp>“Because California has a progressive system that’s heavily dependent on the fortunes of the fortunate, the stock market has a lot to say about whether that surplus will continue,\" he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Still, the budget has come a long way since Brown began his second stint as governor in 2011. \u003ca href=\"http://www.lao.ca.gov/reports/2010/bud/fiscal_outlook/fiscal_outlook_2010.aspx\" target=\"_blank\">Back then\u003c/a> California faced a $25 billion deficit.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>As he prepares to release a new state budget proposal Thursday, Gov. Jerry Brown is looking at a more-than-generous surplus.\u003c/p>\n\u003cp>The nonpartisan Legislative Analyst’s Office estimates revenues could be \u003ca href=\"http://www.lao.ca.gov/Publications/Detail/3305\" target=\"_blank\">$3.6 billion\u003c/a> above projections. The influx of cash means many will be eager to replenish programs that were slashed during the recession.\u003c/p>\n\u003cp>Chris Hoene leads the California Budget and Policy Center.\u003c/p>\n\u003cp>“The reality is that the revenue collections the state’s been realizing over the last year are dramatically above where the governor had projected and even where the budget ended up,\" he says. \"And that means there’s enough money on the table to be fiscally prudent and make some of these investments in the people that have been left behind.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Hoene lists the state’s welfare program, early childhood education and assistance for low-income seniors and the disabled among the priorities.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But Claremont McKenna College government professor Jack Pitney says Brown would be smart to maintain his cautious approach, which includes bolstering the state’s reserves.\u003c/p>\n\u003cp>“Because California has a progressive system that’s heavily dependent on the fortunes of the fortunate, the stock market has a lot to say about whether that surplus will continue,\" he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Still, the budget has come a long way since Brown began his second stint as governor in 2011. \u003ca href=\"http://www.lao.ca.gov/reports/2010/bud/fiscal_outlook/fiscal_outlook_2010.aspx\" target=\"_blank\">Back then\u003c/a> California faced a $25 billion deficit.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>DETROIT — General Motors and San Francisco-based ride-hailing company Lyft are forming a partnership they say could help them beat their rivals to the self-driving future.\u003c/p>\n\u003cp>Lyft said Monday that GM invested $500 million in the company as part of a $1 billion round of fundraising.\u003c/p>\n\u003cp>GM gets a seat on Lyft's board and access to the 3-year-old company's software, which matches riders with drivers and automates payments. It also becomes a preferred vehicle provider, with the chance to get many more people behind the wheel of a Chevrolet, Buick, GMC or Cadillac.\u003c/p>\n\u003cp>Lyft gets the expertise of a 108-year-old automaker with decades of experience in making connected and autonomous vehicles. Detroit-based GM also has an enviable global reach; it sells almost 10 million cars each year in more than 100 countries. Lyft operates in 190 U.S. cities, although it recently formed partnerships with ride-sharing services in China and India.\u003c/p>\n\u003cp>Together, the companies plan to open a network of U.S. hubs where Lyft drivers can rent GM vehicles. That could expand Lyft's business by giving people who don't own cars a way to drive and earn money through Lyft. It will also give GM a leg up on competitors like Daimler AG and Ford Motor Co., which are developing their own ride-sharing services.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Longer term, GM and Lyft will work together to develop a fleet of autonomous vehicles that city dwellers could summon using Lyft's mobile app. Partnering with GM could give Lyft a boost over its arch-rival, Uber Technologies Inc., which is working on its own driverless cars.\u003c/p>\n\u003cp>Lyft President John Zimmer and GM President Dan Ammann say the two companies began serious discussions about three months ago. Both see big changes coming in the traditional model of car ownership, and they had similar ideas about how to address it.\u003c/p>\n\u003cp>\"It felt very natural very quickly,\" Zimmer said.\u003c/p>\n\u003cp>Ammann said the resulting partnership is unlike any other in the auto and tech industries.\u003c/p>\n\u003cp>\"Do we want to deploy the resources and people to do everything ourselves, or get there faster by working in partnership?\" Ammann said. \"We see a really compelling, complementary set of capabilities.\"\u003c/p>\n\u003cp>Following its latest round of fundraising — which also included a $100 million investment from Saudi Arabia's Kingdom Holding Co. — privately held Lyft set its value at $5.5 billion. The company expects revenue of around $1 billion this year. By comparison, GM is valued at $53 billion and earned $153 billion in revenue in 2014.\u003c/p>\n\u003cp>But neither company can afford to rest. Uber's value could soon surpass GM's, and newcomers like Apple and Google are also eager to disrupt the traditional auto industry.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"We see the world of mobility changing more in the next five years than it has in the last 50,\" Ammann said.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>DETROIT — General Motors and San Francisco-based ride-hailing company Lyft are forming a partnership they say could help them beat their rivals to the self-driving future.\u003c/p>\n\u003cp>Lyft said Monday that GM invested $500 million in the company as part of a $1 billion round of fundraising.\u003c/p>\n\u003cp>GM gets a seat on Lyft's board and access to the 3-year-old company's software, which matches riders with drivers and automates payments. It also becomes a preferred vehicle provider, with the chance to get many more people behind the wheel of a Chevrolet, Buick, GMC or Cadillac.\u003c/p>\n\u003cp>Lyft gets the expertise of a 108-year-old automaker with decades of experience in making connected and autonomous vehicles. Detroit-based GM also has an enviable global reach; it sells almost 10 million cars each year in more than 100 countries. Lyft operates in 190 U.S. cities, although it recently formed partnerships with ride-sharing services in China and India.\u003c/p>\n\u003cp>Together, the companies plan to open a network of U.S. hubs where Lyft drivers can rent GM vehicles. That could expand Lyft's business by giving people who don't own cars a way to drive and earn money through Lyft. It will also give GM a leg up on competitors like Daimler AG and Ford Motor Co., which are developing their own ride-sharing services.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Longer term, GM and Lyft will work together to develop a fleet of autonomous vehicles that city dwellers could summon using Lyft's mobile app. Partnering with GM could give Lyft a boost over its arch-rival, Uber Technologies Inc., which is working on its own driverless cars.\u003c/p>\n\u003cp>Lyft President John Zimmer and GM President Dan Ammann say the two companies began serious discussions about three months ago. Both see big changes coming in the traditional model of car ownership, and they had similar ideas about how to address it.\u003c/p>\n\u003cp>\"It felt very natural very quickly,\" Zimmer said.\u003c/p>\n\u003cp>Ammann said the resulting partnership is unlike any other in the auto and tech industries.\u003c/p>\n\u003cp>\"Do we want to deploy the resources and people to do everything ourselves, or get there faster by working in partnership?\" Ammann said. \"We see a really compelling, complementary set of capabilities.\"\u003c/p>\n\u003cp>Following its latest round of fundraising — which also included a $100 million investment from Saudi Arabia's Kingdom Holding Co. — privately held Lyft set its value at $5.5 billion. The company expects revenue of around $1 billion this year. By comparison, GM is valued at $53 billion and earned $153 billion in revenue in 2014.\u003c/p>\n\u003cp>But neither company can afford to rest. Uber's value could soon surpass GM's, and newcomers like Apple and Google are also eager to disrupt the traditional auto industry.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"We see the world of mobility changing more in the next five years than it has in the last 50,\" Ammann said.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>After Los Angeles passed an ordinance this summer to increase the minimum wage to $15 an hour by 2020, Richard LoGuercio spent the following weekend driving around a nearby city, looking for warehouses to move his business.\u003c/p>\n\u003cp>“I am just screwed,” said LoGuercio, owner and president of Town and Country Event Rentals in Van Nuys, which employs 450 people, more than half of whom earn between $10 to $13 an hour. Moving his shop to another county could help him escape the mandated wage increase.\u003c/p>\n\u003cp>“Labor has kind of become our enemy, because it’s just so high,” he said.\u003c/p>\n\u003cp>When the minimum wage goes up to $15 an hour, LoGuercio estimates his labor costs will increase by 62 percent. He says he fears his labor costs may rise even further because his more experienced workers will need to be paid more than a new employee.\u003c/p>\n\u003cp>“I’m in favor of (raising) the minimum wage, but not so much and not so fast,” said LoGuercio, who says he’s weighing his options for cutting labor costs.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“Wherever technology can help, that’s where we’re looking into.”\u003c/p>\n\u003cp>After the minimum wage ordinance was approved, LoGuercio invested in a $150,000 industrial dishwasher he had been eyeing to save on utility costs. The machine will also allow him to stop paying six to eight people who earn $10 to $11 an hour washing dishes. LoGuercio expects to recoup his costs in nine months, and save a couple of hundred thousand dollars a year going forward.\u003c/p>\n\u003cp>“It’s a start,” he said.\u003c/p>\n\u003cp>\u003cstrong>Employers: Minimum Wage Increases Will Put More Machines in the Workplace\u003c/strong>\u003c/p>\n\u003cp>Employer groups opposed to raising the minimum wage say labor costs are already driving decisions to replace human labor with technology. They say higher minimum wages will accelerate automation trends in the workplace.\u003c/p>\n\u003cp>But economists say even when jobs are replaced by technology, overall employment may not suffer.\u003c/p>\n\u003cp>Machines are already doing what humans had done for decades in supermarkets and some restaurants; shoppers can pay using self-checkout kiosks, and diners at Chili’s can order baby back ribs on a tabletop tablet.\u003c/p>\n\u003cp>The California Restaurant Association says self-ordering could become more common if the minimum wage is increased to $15 statewide, a scenario proposed in competing initiatives currently trying to qualify for the 2016 November ballot.\u003c/p>\n\u003cfigure id=\"attachment_10795510\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"size-full wp-image-10795510\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/12/CondieResto.jpg\" alt=\"Jot Condie, president of the California Restaurant Association, picks up his lunch at an automated restaurant in San Francisco.\" width=\"1920\" height=\"1272\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-400x265.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-800x530.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-768x509.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-1440x954.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-1180x782.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-960x636.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Jot Condie, president of the California Restaurant Association, picks up his lunch at an automated restaurant in San Francisco. \u003ccite>(Beatrice Katcher/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“When you’re talking about a 60 percent increase in the minimum wage over a short period of time, that absolutely is a game changer,” said Jot Condie, chief executive and president of the restaurant association. “They’re all planning” on ways to cut costs, including buying pre-chopped ingredients, sourcing food from international sources instead of local farmers, or hiring more discriminately.\u003c/p>\n\u003cp>“If they haven’t adopted technology, they are absolutely looking at technology as an option, a way to cut costs,” Condie said.\u003c/p>\n\u003cp>Kiosks and tablets are most likely to be seen in fast-food restaurants -- but that’s not just because of labor costs, Condie said. Technology helps deliver food more quickly.\u003c/p>\n\u003cp>\u003cstrong>Farmers May Grow What Can Be Mechanized\u003c/strong>\u003c/p>\n\u003cp>When it comes to agriculture, the California Farm Bureau Federation says it’s like any other industry that employs large numbers of low-skilled workers. Growers look for “every opportunity” to cut labor costs, and technology is part of that.\u003c/p>\n\u003cp>Bryan Little, director of employment policy at the farm bureau, said for the past 25 years more and more agricultural products -– including tomatoes, raisins and nuts -– are being harvested by machine. As labor costs go up, Little said, farmers decide what to grow partly on how easily production can be mechanized.\u003c/p>\n\u003cp>[contextly_sidebar id=\"6sxbuv8q9BkiV30DzUu1qqAK3TWv4iTg\"]\u003c/p>\n\u003cp>“There’s a lot more interest in growing almonds, walnuts, pistachios, other types of tree nuts that can be harvested with a crew of four or five people,” said Little, explaining that machines can shake nuts from a tree, without harming color or texture. Not so for a strawberry or melons.\u003c/p>\n\u003cp>He said if there were a statewide $15 minimum wage, farming would likely become more mechanized.\u003c/p>\n\u003cp>“You’d see more interest in developing commodities that can be machine harvested, or (growers) changing to commodities that lend themselves to machine harvesting,” Little said.\u003c/p>\n\u003cp>\u003cstrong>When Automation Happens, It May Not Be So Bad\u003c/strong>\u003c/p>\n\u003cp>Recent economic research suggests that job loss does occur following minimum wage increases, but the losses are evened out by other job gains.\u003c/p>\n\u003cp>Chicago-area economists who analyzed employment data between 1999 and 2009 found for every 10 percent increase in the minimum wage, low-wage jobs that involve routine cognitive tasks -– such as cashiers -- declined 1.5 percent a year or two after the hike. The researchers inferred the decline was caused by technology replacing workers.\u003c/p>\n\u003cp>“At the same time, there was this employment growth in jobs that are not easily replaced by technology, “ said Brian Phelan, assistant professor of economics at the Driehaus College of Business at DePaul University.\u003c/p>\n\u003cp>But Phelan says the kinds of increases being proposed and implemented in California could accelerate automation in the workplace. The balance between job losses and gains he found in more modest minimum wage increases may not hold in other wage hike scenarios.\u003c/p>\n\u003cp>However, a different economist says the falling price of technology, not minimum wage increases, is a more significant driver of automation in the workplace.\u003c/p>\n\u003cp>“Increasing the minimum wage to $15 isn’t going to change very much at all,” said Michael Reich, economics professor and director of the Institute for Research on Labor and Employment at UC Berkeley.\u003c/p>\n\u003cp>“It (would) be a little bump on the road compared to the big effects of the cheapening price of technology.”\u003c/p>\n\u003cp>Reich said technological substitution in the workplace is not necessarily a net job destroyer. A firm could expand and hire more workers. Or jobs may reappear in other industries. In restaurants, former cashiers could be trained as cooks.\u003c/p>\n\u003cp>“It means the job has been displaced, but not necessarily the worker,” he said.\u003c/p>\n\u003cp>\u003cstrong>Preparing for the Los Angeles Minimum Wage Increase\u003c/strong>\u003c/p>\n\u003cp>Back at Town and Country Event Rentals in Los Angeles, owner LoGuercio is still crunching numbers about how his manual-labor heavy, service-oriented business will account for the $15 wage increase by 2020.\u003c/p>\n\u003cp>“If I could find robots … to load trucks, I would do that,” LoGuercio said.\u003c/p>\n\u003cfigure id=\"attachment_10795556\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"size-full wp-image-10795556\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/12/LoGuercio.jpg\" alt=\"Pauline Bartolone for CALmatters\" width=\"1920\" height=\"1397\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-400x291.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-800x582.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-768x559.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-1440x1048.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-1180x859.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-960x699.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Richard LoGuercio, president and owner of Town & Country Event Rentals, poses in his warehouse in Los Angeles. LoGuercio employs 450 people, more than half of whom earn between $10 and $13 an hour. \u003ccite>(Pauline Bartolone/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He hasn’t decided what he’ll do with the workers who used to be dishwashers, but he may move them to other jobs within the company. He’s also looking into an online ordering system, which would eliminate the need for one or two office positions.\u003c/p>\n\u003cp>But LoGuercio says he has acquired one new “expensive” worker because of Los Angeles’ wage increase: a chief financial officer. While he says he considers himself an experienced entrepreneur, when it comes to figuring out the variables created by the upcoming wage increase, he needs help.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“I’m not that smart,\" he says.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>After Los Angeles passed an ordinance this summer to increase the minimum wage to $15 an hour by 2020, Richard LoGuercio spent the following weekend driving around a nearby city, looking for warehouses to move his business.\u003c/p>\n\u003cp>“I am just screwed,” said LoGuercio, owner and president of Town and Country Event Rentals in Van Nuys, which employs 450 people, more than half of whom earn between $10 to $13 an hour. Moving his shop to another county could help him escape the mandated wage increase.\u003c/p>\n\u003cp>“Labor has kind of become our enemy, because it’s just so high,” he said.\u003c/p>\n\u003cp>When the minimum wage goes up to $15 an hour, LoGuercio estimates his labor costs will increase by 62 percent. He says he fears his labor costs may rise even further because his more experienced workers will need to be paid more than a new employee.\u003c/p>\n\u003cp>“I’m in favor of (raising) the minimum wage, but not so much and not so fast,” said LoGuercio, who says he’s weighing his options for cutting labor costs.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Wherever technology can help, that’s where we’re looking into.”\u003c/p>\n\u003cp>After the minimum wage ordinance was approved, LoGuercio invested in a $150,000 industrial dishwasher he had been eyeing to save on utility costs. The machine will also allow him to stop paying six to eight people who earn $10 to $11 an hour washing dishes. LoGuercio expects to recoup his costs in nine months, and save a couple of hundred thousand dollars a year going forward.\u003c/p>\n\u003cp>“It’s a start,” he said.\u003c/p>\n\u003cp>\u003cstrong>Employers: Minimum Wage Increases Will Put More Machines in the Workplace\u003c/strong>\u003c/p>\n\u003cp>Employer groups opposed to raising the minimum wage say labor costs are already driving decisions to replace human labor with technology. They say higher minimum wages will accelerate automation trends in the workplace.\u003c/p>\n\u003cp>But economists say even when jobs are replaced by technology, overall employment may not suffer.\u003c/p>\n\u003cp>Machines are already doing what humans had done for decades in supermarkets and some restaurants; shoppers can pay using self-checkout kiosks, and diners at Chili’s can order baby back ribs on a tabletop tablet.\u003c/p>\n\u003cp>The California Restaurant Association says self-ordering could become more common if the minimum wage is increased to $15 statewide, a scenario proposed in competing initiatives currently trying to qualify for the 2016 November ballot.\u003c/p>\n\u003cfigure id=\"attachment_10795510\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"size-full wp-image-10795510\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/12/CondieResto.jpg\" alt=\"Jot Condie, president of the California Restaurant Association, picks up his lunch at an automated restaurant in San Francisco.\" width=\"1920\" height=\"1272\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-400x265.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-800x530.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-768x509.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-1440x954.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-1180x782.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/CondieResto-960x636.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Jot Condie, president of the California Restaurant Association, picks up his lunch at an automated restaurant in San Francisco. \u003ccite>(Beatrice Katcher/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“When you’re talking about a 60 percent increase in the minimum wage over a short period of time, that absolutely is a game changer,” said Jot Condie, chief executive and president of the restaurant association. “They’re all planning” on ways to cut costs, including buying pre-chopped ingredients, sourcing food from international sources instead of local farmers, or hiring more discriminately.\u003c/p>\n\u003cp>“If they haven’t adopted technology, they are absolutely looking at technology as an option, a way to cut costs,” Condie said.\u003c/p>\n\u003cp>Kiosks and tablets are most likely to be seen in fast-food restaurants -- but that’s not just because of labor costs, Condie said. Technology helps deliver food more quickly.\u003c/p>\n\u003cp>\u003cstrong>Farmers May Grow What Can Be Mechanized\u003c/strong>\u003c/p>\n\u003cp>When it comes to agriculture, the California Farm Bureau Federation says it’s like any other industry that employs large numbers of low-skilled workers. Growers look for “every opportunity” to cut labor costs, and technology is part of that.\u003c/p>\n\u003cp>Bryan Little, director of employment policy at the farm bureau, said for the past 25 years more and more agricultural products -– including tomatoes, raisins and nuts -– are being harvested by machine. As labor costs go up, Little said, farmers decide what to grow partly on how easily production can be mechanized.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“There’s a lot more interest in growing almonds, walnuts, pistachios, other types of tree nuts that can be harvested with a crew of four or five people,” said Little, explaining that machines can shake nuts from a tree, without harming color or texture. Not so for a strawberry or melons.\u003c/p>\n\u003cp>He said if there were a statewide $15 minimum wage, farming would likely become more mechanized.\u003c/p>\n\u003cp>“You’d see more interest in developing commodities that can be machine harvested, or (growers) changing to commodities that lend themselves to machine harvesting,” Little said.\u003c/p>\n\u003cp>\u003cstrong>When Automation Happens, It May Not Be So Bad\u003c/strong>\u003c/p>\n\u003cp>Recent economic research suggests that job loss does occur following minimum wage increases, but the losses are evened out by other job gains.\u003c/p>\n\u003cp>Chicago-area economists who analyzed employment data between 1999 and 2009 found for every 10 percent increase in the minimum wage, low-wage jobs that involve routine cognitive tasks -– such as cashiers -- declined 1.5 percent a year or two after the hike. The researchers inferred the decline was caused by technology replacing workers.\u003c/p>\n\u003cp>“At the same time, there was this employment growth in jobs that are not easily replaced by technology, “ said Brian Phelan, assistant professor of economics at the Driehaus College of Business at DePaul University.\u003c/p>\n\u003cp>But Phelan says the kinds of increases being proposed and implemented in California could accelerate automation in the workplace. The balance between job losses and gains he found in more modest minimum wage increases may not hold in other wage hike scenarios.\u003c/p>\n\u003cp>However, a different economist says the falling price of technology, not minimum wage increases, is a more significant driver of automation in the workplace.\u003c/p>\n\u003cp>“Increasing the minimum wage to $15 isn’t going to change very much at all,” said Michael Reich, economics professor and director of the Institute for Research on Labor and Employment at UC Berkeley.\u003c/p>\n\u003cp>“It (would) be a little bump on the road compared to the big effects of the cheapening price of technology.”\u003c/p>\n\u003cp>Reich said technological substitution in the workplace is not necessarily a net job destroyer. A firm could expand and hire more workers. Or jobs may reappear in other industries. In restaurants, former cashiers could be trained as cooks.\u003c/p>\n\u003cp>“It means the job has been displaced, but not necessarily the worker,” he said.\u003c/p>\n\u003cp>\u003cstrong>Preparing for the Los Angeles Minimum Wage Increase\u003c/strong>\u003c/p>\n\u003cp>Back at Town and Country Event Rentals in Los Angeles, owner LoGuercio is still crunching numbers about how his manual-labor heavy, service-oriented business will account for the $15 wage increase by 2020.\u003c/p>\n\u003cp>“If I could find robots … to load trucks, I would do that,” LoGuercio said.\u003c/p>\n\u003cfigure id=\"attachment_10795556\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"size-full wp-image-10795556\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/12/LoGuercio.jpg\" alt=\"Pauline Bartolone for CALmatters\" width=\"1920\" height=\"1397\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-400x291.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-800x582.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-768x559.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-1440x1048.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-1180x859.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/12/LoGuercio-960x699.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Richard LoGuercio, president and owner of Town & Country Event Rentals, poses in his warehouse in Los Angeles. LoGuercio employs 450 people, more than half of whom earn between $10 and $13 an hour. \u003ccite>(Pauline Bartolone/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He hasn’t decided what he’ll do with the workers who used to be dishwashers, but he may move them to other jobs within the company. He’s also looking into an online ordering system, which would eliminate the need for one or two office positions.\u003c/p>\n\u003cp>But LoGuercio says he has acquired one new “expensive” worker because of Los Angeles’ wage increase: a chief financial officer. While he says he considers himself an experienced entrepreneur, when it comes to figuring out the variables created by the upcoming wage increase, he needs help.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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