Tennessee has a problem and its sucking the life out of Tennessee’s largest county. The problem is corporate socialism, as evidenced by an excessive 512 property parcels under payment-in-lieu of tax (PILOT) contract in Shelby County. 

The excessive number of PILOTs in Shelby County is a policy product of Fred Smith’s and Pitt Hyde’s failed FedEx/Memphis Tomorrow (FMT) 20 yr. public-private complex. The product is that of idiots and that is not rhetoric, but an assertion of fact that will be proven in the below data section. 

Why would the State of Tennessee continue to invest taxpayer money, that is indeed desperately needed in a Tennessee, Shelby County community in need, with the same people and failed FMT public-private complex?

In this way, in a Tennessee impoverished community in need, State of Tennessee taxpayers work to fund community betterment in Shelby County, only to have it transferred away from local Memphis/Shelby public investments, to local and foreign corporate/real estate interests that need it least ! 

The FedEx/Memphis Tomorrow complex is a 20 year Un-American corporate socialist experiment, that has failed Tennessee taxpayers in Memphis. And its failure, is a curriculum development opportunity ripe for History, Civics and Economics texts throughout the United States. 

I am just a grassroots taxpayer advocate and I want to confront Fred Smith and Pitt Hyde, or their best bureaucrats, in public TN General Assembly Committee testimony, at which time they will be publicly destroyed. 

After all, Memphis has steadily declined over 20 yrs without an external event, with the largely taxpayer funded FMT complex, down in all of their selected community betterment categories. How is that even done, unless it is intentional ?

Lacking most in Memphis, is thought diversity, where community decline, has been normalized under the FMT complex. When using taxpayer dollars, most glaring is the lack of course correction that occurs within the elitist and racially diverse FMT public-private complex, all while the same people are rewarded for running the community into the ground. 

Having worked in imperfect communities across the country, where they course correct, the general acceptance of community decline and lack of course correction in the Memphis public domain, is what garnered my attention, that something was dreadfully wrong in Memphis. The local Memphis press does not question the FMT complex nor does the public University of Memphis. In fact, the University of Memphis, under the new local Board of Trustees, in many ways, has become a planning bunker for the extension of corporate socialism. 

The University of Memphis is oddly partnered with the local Industrial Development Board (IDB) in the Memphis/Shelby Economic Development Growth Engine (EDGE), where they routinely publicly endorse taxpayer losing incentives and suppress economic development policy measurement. This suppression would seem uncharacteristic of a public university exercising independent thought leadership. But, then again, the UofM Board of Trustees is representative of the failed FMT complex, where 3 of the 9 Board members have direct connections to FedEx. 

Additionally, The UofM is partnered with Greater Memphis Chamber of Commerce, The Memphis Shelby Crime Commission (MSCC), the anonymous donor created Daily Memphian press publication and of course FedEx. The MSCC, in partnership with the UofM Public Safety Institute, recently failed to produce any police use of force data, which was part of their data driven policing charge.

With the former partnerships, public university thought leadership for societal betterment, is seriously compromised if not impossible. And if that is not enough, the UofM recently bullied local taxpayers, in an impoverished Memphis community in need, out of $5M for tennis courts and swimming pools. 

As for local public officials, which includes the Shelby County Legislative Delegation, they accept all that they have known, for the past 20 yrs, in community decline. Living in a bubble and institutionally sheltered from reality, local leaders know Fred Smith and Pitt Hyde as economic development “visionaries”. Smith and Hyde are not even revisionists. Their complex has routinely failed to course correct over the last 20 yrs. 

Similar to the Crump Machine of days gone by, The Elitist FMT complex consists of a web of public-private nonprofits and boards to include the local social justice apparatus. Hijacked by the elitists, the overamplified Memphis social justice complex, seems to have been used to divide taxpayers along racial lines, while the corporate elitists undermine the local tax base and tactically weaponize social justice efforts against a majority Black community in need through failed economic progress. 

While there are exceptions, anchored by the National Civil Rights Museum, the Memphis establishment social justice complex is, for the most part, pageantry and a tourist attraction. Its a failed complex that should be disregarded in the consideration of public policy. The problem is not systemic racism in Memphis, as is often touted, but runaway corporate socialism carried out by a closed, elitist and racially diverse public-private complex. Its just like the old Crump Machine, but much more racially diverse.  

The focus should be on the taxpayer. And to that extent, without taxpayer justice, in a majority Black community in need, there will be no social justice. 

And again, according to the State of Tennessee Comptroller report, Shelby County has 512 parcels under PILOT contract, with other Tennessee municipal counties in Davidson at 35 contracts, Hamilton-37 and Knox-68. PILOTs are supposed to incent increased wage growth through job creation and attracting new residents.

One would think, with 512 PILOT contracts, Shelby County growth would be off the charts when compared to the other Tennessee municipalities. But that is not the case. Let’s review the data to see the failure of corporate socialism.

The Data of Corporate Socialism

The above 2010-19 table, sourced from the United States Bureau of Labor and Statistics (BLS) Quarterly Census of Employment Wages (QCEW) program, shows Shelby County with 512 PILOT contracts, trailing all Tennessee municipal counties in every economic development category.

To be fair, the following data observations will be benchmarked against Knox County, which is a respectable third in Tennessee municipal economic performance, to arrive at deficiencies in public investments, that come as a product of corporate socialism. 

Small Business. For starters, corporate socialism has stifled commerce in Shelby County. While unfortunately, pro-corporate policy is often mistaken, in political circles, as being pro-business, that is not always the case. Most telling, is the number of business establishments per 1k population in Shelby County with only 23. 

With most establishments as small, Shelby County lacks the small business horsepower to drive competitive economic progress. Had Shelby County had Knox’s 28 per 1K business establishments, that would equate to 4,600 more small business establishments. Assuming 10 employees per small business at $50K in wages, that would equate to 46K more employed and $2.3B more in local annual wages. The $2.3B fully accounts for the deficiency in total wage growth of 10% at Shelby County’s 29.7% compared to Knox’s 39.9%, while using base 2010 total Shelby County wages of $22B.

Assuming 3% of wages makes it back into public coffers, $2.3B in deficient wage production from the small business sector, is $69M per year. And considering the $50 of $100M in excessive annual tax incentives, since 2010, while prorating the $69M per year down by 50%, within an improving business cycle, that would  equate to $760M in deficient local Shelby County public investments. Deficient public investments erode the societal framework in which commerce thrives.  

Employment. Employment growth was slowed in Shelby County by a botched workforce development system under the FMT complex. The botching was further enabled by the Tennessee Higher Education Commission’s  (THEC) poor oversight of the LEAP Grant in 2014-16. The failure of the grant to deliver for Tennessee taxpayers was later revealed in the Complete Tennessee: Room to Grow Report.

The report stated that in the Memphis Region, “Institutions voiced concerns about understanding the region’s labor market priorities.” That was a core deliverable of the LEAP grant that never has materialized. As a consequence, a botched and disconnected workforce development system remains, under the FMT complex of Smith and Hyde. 

Had Shelby County had Knox County’s employment growth, that would have equated to 15,921 more filled jobs and at $50k per year, $796M more in annual wages in 2019. Between 2010-19, prorating down the $796M in wages by 50% per year, that would equate to $3.6B more in wages and $108M more in local tax coffers. 

Total Wages. In isolation, total wages is an aggregation of all of the above variables. Small business and employment growth were reviewed more closely, because they are the core contributors of the sluggish Memphis economy. 

At the same time, had Shelby County had Knox’s wage growth of 39.9% and starting from a base of $22B in total annual wages, that would have been $10B more in wages from 2010-19 and $300M more in tax revenue. Add the $450M in excessive incentives that occurred in the same period, and the result is a $750M local public investment deficit. 

Conclusion

Since 2010, with $750M in deficient public investments, regardless of what the FMT complex may roll out, the public destruction of corporate socialism is on full display and will take years to overcome if at all. 

To that extent and since it is not going to come from other Memphis sources, an assertive dissenting view of Smith and Hyde’s failed experiment and public destruction needs to be formally put on the Tennessee General Assembly Legislative record. I would like to put the former on the legislative record, at which time the FMT complex will be permanently destroyed. 

After all, history says the Crump Machine was brought down at the State level. The FMT complex, in many ways, is just a reincarnation of the elitist Crump Machine, which is all that Smith and Hyde really know. And besides, based on Blackjack Smith’s advice, one needs to leverage history to make their case. And, with the above, the case is profoundly made, while leveraging history, against Smith and Hyde’s corporate socialism.

On the record legislative testimony will provide support for the update of curriculum materials for History, Civics and Economic texts throughout the country, to document the failure of Un-American corporate socialism. Its a  failed system that continues to defecate on Tennessee taxpayers today and should be immediately destroyed.   

I hope to see you in the 2021 legislative session. 

In a sustained and horrific occurrence, rich with pageantry and hijacked by the Elitists, the Memphis social justice complex is a complete failure. Why wouldn’t it be? In large measure, the Memphis social justice complex is part of the FedEx/Memphis Tomorrow and racially diverse public-private complex. 

An impressive historical attraction, the National Civil Rights Museum (NCRM) was established in 1991. But what about the local movement? There really isn’t one for improving the quality of life for a majority Black Memphis community in need.

Since 2010, Memphis MSA counties, outside of Shelby, collectively have dramatically outpaced Memphis and Shelby County’s median household income growth. Those collective counties are: Crittenden, Fayette, Tipton, Benton, Marshall, Tate and Tunica

Meanwhile, the seemingly overamplified Memphis social justice effort, that drowns out pursuits for example, around taxpayer justice, focuses on police reform and symbolic endeavors like moving statues and changing street names. In this way, police get, not part but all of the blame for societal ills. 

With high Black poverty levels and sluggish median household income growth, for there to be no critical examination of economic policy, seems to be an Elitist design for decline. Its a design that affords an exhaustive and public critical evaluation of police, while looking the other way as excessive corporate/real estate incentives roar for the benefit of the small few.

Just taking a look at the NCRM Board  may provide clues of an elitist hijacked Memphis social justice movement. The NCRM Board includes: First Tennessee, Pittco, FedEx, Kemmons Wilson Companies, Auto Zone, Sun Trust, KBG Technologies, Baptist and Methodist hospitals. 

Anyway, in 2008, I did some work in Raleigh, NC. It was a different world than Memphis. Focused on the customer taxpayer, Raleigh just seemed to be a diverse community working to make things better for all. Race was hardly an issue there and it certainly was not part of almost every public discussion. 

And on another note, I spoke to an old friend, not long ago, that moved from Memphis to Desoto County, MS. He said, “Memphis is archaic. It seems caught in the past. Sure race comes up here in Desoto County from time to time but its far from a focal point.” All that to say, the City of Raleigh, per the 5 year Census averages, has an 18.6% Black poverty rate and Desoto County, MS. 11.6%.

Lets look at some more regional median household income data: 

Memphis MSA Regional Median Income – 5yr Census Estimates

As shown in the above table, Memphis MSA Counties outside Shelby County had increased Black median household incomes of 25.1%  from 2010-18 compared to 5.2% for Memphis and 10.1% for Shelby County. The MSA outside Shelby percentage gain is weighted by county population, to be a collective percentage growth for all of the MSA counties outside of Shelby. Individual county growth can be seen in the table at the end of this blog. 

This blog could care less about race. But it does care about taxpayers. And in a majority Black community in need, increasing Black household income is paramount to improving the quality of life for all in Memphis and Shelby County. 

But sadly, in a horrific hijacking by the elitists, the Memphis social justice movement, is far removed from a quality of life focus, while looking the other way on matters of economic development policy and compliance. Taxpayer justice advocacy by this blog, and not social justice,  is why Nike raised their wages recently resulting in approximately $5M in annual wage increases while not costing Memphis/Shelby taxpayers a penny more. 

Without taxpayer justice, there will be no social justice. Forget it. And nobody systemically botches their workforce development system. NOBODY !

Conclusion

Other communities seem much more focused on taxpayers, without the overamplification of race in every issue. The overamplification of race in the Memphis discourse, at the expense of taxpayer advocacy, appears to be an elitist tactic to divide the community along racial lines, while the small few benefit. In the end, it tragically fails for all. 

The elitists don’t want anybody to make any money in Shelby County. In a nightmare scenario, the elitists just dismiss the resident population and taxpayer in a Memphis community in need. Anecdotally, that was shown, when the local realtors got beat out of their commission on the FedEx Downtown deal. And I personally experienced it, when Fred Smith and Pitt Hyde ripped off my small business in their quest to botch the workforce development system. 

Further, Census sourced data verifies this assertion with those outside of Shelby County, but in the Memphis Metropolitan Statistical Area (MSA), having a higher median household incomes. Those counties outside of Shelby County, but in the Memphis MSA include: Benton, Crittenden, Desoto, Fayette, Marshall, Tate, Tipton and Tunica counties.

This is a one hell of a note, with 512 parcels under payment-in-lieu of taxes (PILOT) contract, according to the State of TN Comptroller. 512 PILOT contracts is 200% more than the other municipal counties in Tennessee in Davidson, Knox and Hamilton counties, who all together, have 140 PILOT contracts.

PILOTs are an economic development tax abatement tool that promised higher wages and quality of life to Shelby Countians. But instead, excessive PILOTs have turned out to be a wealth transfer vehicle for the elitists, occurring on the back of a majority Black community in need, while insufficient income conditions persist in Shelby County. 

Insufficient Memphis and Shelby County incomes help explain declining neighborhoods as found in Orange Mound.  The Memphis elitists really know how to do it. Excessive PILOTs, along with insufficient incomes, insures the undermining of the tax base and neighborhood decline. Let’s look at the data. 

Median Household Income

First, pre COVID,  the highest wages and 80% of the filled jobs in the Memphis MSA are in Shelby County. And 80 to 90K commute daily to work in Shelby County from within the MSA. So, the higher median household incomes (MHI) are being supported by businesses located in Shelby County. The above data are the MHI averages from 2010-19. 

With that stated, the above data, derived from sourced Census data, reveals those  households from outside of Shelby County but within the MSA, have a 40.6% higher MHI than Memphis and 12.4% higher than Shelby County. Blacks and Non Hispanic Whites, outside of Shelby County, have higher MHIs than those of Memphis, while Blacks from outside Shelby County have 5.1%  higher MHIs than those in Shelby County. 

Could it be elitist geographical bias against Shelby Countians? Sure it could, based on both anecdotal and Census data. The elitists seemingly don’t want folks making any money in Shelby County. Or could it be a workforce issue ? It could be a workforce issue. Other communities do not systemically botch their workforce development system like the elitist in Shelby County. Either way, lower MHIs for Shelby Countians is a product of runaway elitism occurring on the back of a majority Black community in need. 

Below are the populations supporting MHIs in Memphis, Shelby County and MSA counties outside of Memphis. 

Conclusion

 What can you say? Its an elitist led design for decline with excessive tax incentives and insufficient incomes for Shelby Countians.  

The most recent publication of the University of Memphis Poverty Fact Sheet seemed rushed. And there remains significant questions with some stunning underlying statistics that drove the change, like a single year decrease of 38K Memphis Blacks in poverty. Do what ?!?!

Recent reporting by the UofM partner, in the Daily Memphian, cited greatly improved poverty statistics forthcoming in the now released Poverty Fact Sheet. This coincided with further local reporting of a new UofM / Greater Memphis Chamber partnership. The challenge with such reporting, without deeper analysis, is that it may unfortunately protect the directional status quo of locally deficient economic development efforts. 

Used widely, the Poverty Fact Sheet is a a healthy local innovation by Dr. Elena Delavega of the University of Memphis. Delavega first produced the Fact Sheet in 2012, prior to the 2016 installment of the new largely local corporate UofM Board of Trustees. 

Seemingly rushed, with barely released Census estimates, the math in the Daily Memphian article, pertaining to City of Memphis poverty statistics, made no sense and social media erupted. The article stated a 21.9% improvement in the City of Memphis poverty rate with subgroup percentages not supporting the overall increase.

Folks naturally had questions, regarding a drastically improved poverty rate with no great inflow of new jobs or meaningful uptick in average wages (BLS) and virtually flat local tax revenues Pre-COVID.

Again, without the visionary innovation of the Poverty Fact Sheet by Dr. Delavega, this blog would not be happening nor would many local conversations regarding poverty. But the drastic improvement in the poverty rate, as mostly stagnant conditions persist, led this blog to search for answers.

And the answers are in the United States Census data that Delavega uses for the Poverty Fact Sheet. At the same time, this blog could not find agreement between the published Census data and the population data in the Delavega Poverty Fact Sheet for the City of Memphis, Shelby County and MSA. Perhaps there is a rationale for this discrepancy.

On the other hand, the poverty rates from the Census data, as contained in this blog and the Poverty Fact Sheet, match up. With that stated, could  Dr. Delavega, please provide the population figures used to calculate the poverty rates to this blog ? Let’s see what is in the data:

Memphis Poverty Data

The below values are taken directly from the 2018-19 Census tables. The percentages are externally calculated values from the Census provided data.

Based on the United States Census Data above and shaded in black, drastic improvement in the City of Memphis Black poverty rate, drove rate improvement for all of the City of Memphis, County and Tri-State MSA region. Primary findings from the data are above and summarized below:

In 2019, Blacks in poverty in the City of Memphis decreased by a whopping 37,749 from 141,980 to 104,231. The Black poverty rate in Memphis decreased by 22.7% from 33.8% to 26.1%. The 37,749 drop dwarfed next in line in Philadelphia, which had an 18K decrease in Black poverty and has about a 50% larger Black population than Memphis. The drastically lower Black poverty population is the numerator in calculating the percentage poverty rate. 

From 2010 to 2019, the 2019 38K City of Memphis decrease in Black poverty, dwarfed all cities with large Black populations. Based on cities with at least 100K in Black population and 30% Black, the next greatest decrease, was again The City of Philadelphia in 2017 at 22.6K and Chicago at 20.4K in 2018. In fact, the 2019 City of Memphis decrease of 38K dwarfed even the entire Philadelphia MSA at 27.5K which has a Black population 3 times the size of Memphis at 1.2M.

In 2019, City of Memphis Black Population decreased by 20,913 or 5%, from 420,403 to 399,490. White population in the City of Memphis increased by 16,078 or 9.1%, from 177,118 to 193,196. The County only shows losing 4,364 in Black population. The lower Black population is the denominator in calculating the poverty rate. 

While the rate decreased for Whites, the actual number of Whites in poverty increased in Memphis by 1,469.

The Hispanic poverty rate increased by 1.1% in Memphis, while falling in the MSA. 

Shelby County Data

The below values are taken directly from the 2018-19 Census tables. The percentages are externally calculated values from the Census provided data.

Again, the Shelby County data, was largely driven by The City of Memphis data. 

Memphis TN-AR-MS MSA Data

The below values are taken directly from the 2018-19 Census tables. The percentages are externally calculated values from the Census provided data.

These are some concluding findings regarding Shelby County and the MSA:

While the Hispanic poverty rate increased for both Memphis and Shelby County, it decreased in the MSA by 7%,  from 23.5% to 21.9% 

After Memphis lost 21K in Black population, Shelby County lost 4,364 and the MSA 2,351. That implies that Blacks moved out of the City of Memphis and remained in the County or in the MSA. 

This above implies that approximately 16.5K Blacks moved out of the City but stayed in the County while another 2K moved into other parts of the MSA outside of Shelby County and 2.5K moved out of the MSA altogether.  

Below are statistics for populations outside of Memphis. 

Shelby Residents (Outside of Memphis)

This table contains externally calculated values derived from the 2018-19 Census Estimates.

Memphis MSA Residents (Outside of Shelby County) 

This table contains externally calculated values derived from the 2018-19 Census Estimates.

Median Income

The below values are taken directly from the 2018-19 Census tables. The percentages are externally calculated values from the Census provided data.

Shelby County (Not In Memphis)

This table contains externally calculated values derived from the 2018-19 Census Estimates.

Memphis MSA (Not In Shelby County)

This table contains externally calculated values derived from the 2018-19 Census Estimates.

Memphis MSA vs Memphis/Shelby Median Household Income

Conclusion 

Drastic changes in calculated rates, of any sort, most often need the underlying values to explain the causes for drastic changes. Without it, taxpayers and policymakers will potentially be misinformed. 

One of the community products of the University of Memphis Carnegie R1 campaign is tanking Shelby County post-secondary completions. This occurs under the local proclamation that workforce development is the #1 priority. 

Total Shelby County post-secondary completions were down by 895 or 7.7% from 11,692 to 10797 year over year in 2019. And that comes as Shelby County is at the bottom of the peer group in post-secondary completions per 1k population. Below percentage average employment gains, can be shown to cost Memphis/Shelby taxpayers $147M since 2010 with recurring annual losses at $32M.

Further, another bi-product of the UofM Carnegie R1 campaign, are local grants for elitist tennis courts and swimming pools. These grants are in addition to the recent taxpayer losing Poplar Plaza PILOT that the UofM co-sponsored. 

A better use than tennis courts and swimming pools of those funds, would have funded $500K per year for wrap around services to support disadvantaged students while accelerating and increasing completion rates in the community college system.

Besides, the City of Memphis provided the land for the tennis courts and there was significant private funding for both tennis courts and swimming pools at the UofM. But runaway elitism won out, while post secondary completions tanked.  

Post Secondary Completion Data

A survey, using the Integrated Post-Secondary Education Data System (IPEDS) was conducted against 14 national and 4 in-state peer communities to include Shelby County in a ranking of 19 total communities. Those communities are listed at the end of this blog. 

Shelby County ranked last in enrollment and completions per 1K population. Additionally, percentage change rankings for each of the communities for 4 years and 1 year were compiled. Shelby County ranked 11 and 17 for completions and enrollment 4 year percentage change. And 19 and 10 for 1 year percentage change for completions and enrollment (above table).

To competitively fuel the talent pipeline for economic development purposes, Shelby County needs to reside near the top of peer rankings and not the bottom for some years to come. 

As far as post-secondary completion award levels percentage change rankings, those statistics are immediately above. 

Conclusion

Without a connected workforce development plan to fuel economic development, the low post-secondary completion rankings are likely to continue, while the same small few, continue to botch the workforce development system. 

Peers Surveyed

Birmingham, Charlotte, Chattanooga, Cincinnati, Greensboro, Indianapolis, Jacksonville, Johnson City/Tri Cities, Kansas City, Knoxville, Little Rock, Louisville, Memphis, Nashville, New Orleans, Oklahoma City, Omaha, St. Louis and Tulsa

Shelby County commercial vitality lags its peers due to an insufficient number of business establishments with employees. In fact, according to census data, to catch below average Birmingham, Memphis would need 4500 new business establishments with employees. 

While the greatest opportunity to increase establishments resides in the Black community, with a gap like 4500, Shelby County cannot be choosy. Sadly, local MWBE programming is of little help for very small locally owned businesses like mine. These are the type of new businesses that are needed to come online to increase the number of local establishments with employees. 

At the same time, local MWBE programming is an elitist sham. Its a true statement, that one can inherit a highly established business, like Duncan Donuts Williams has done, while your mother maintains controlling interest and qualify for local MWBE participation. Or, one can retire as a senior executive from your family owned corporate holding company, as Kathy Buckman Gibson (KBG) did, and start a woman owned business enterprise and qualify for local MWBE participation. Even out of town companies due quite well, in the local business space to even include Canadian companies based in Tennessee. 

In reality, these folks business interests are going to do just fine without help from local MWBE programming. On the other hand, my small LOSB doesn’t even qualify for EDGE’s local business program that disallowed LOSBs in 2016. EDGE just released their latest MWBE propaganda piece, showing massive overperformance. So after years of MWBE programming and such overperformance, why is Shelby County commerce lagging so badly ?

This is Why Its Lagging

The real reason that commerce lags in Shelby County is because local elitists don’t support small business. This condition necessitates the need for government “programming” that is then, not surprisingly, again highjacked by local elitists. The 2011-19 EDGE report provides insufficient detail on what is really happening by not showing the distribution of MWBE receipts. Maybe Commissioner Van Turner, who is Commission MWBE Committee Chair, might want to know what is really going on. Then again, he may not. 

Here is what is happening. Based on a survey of EDGE’s 2016-19 Local Business Program (LBP), 25 of 385 or 6% of the MWBE companies controlled 83% of the receipts. Of the $163M in MWBE receipts from the 2016-19 LBP, the top 25 of 385 companies took down $136M in receipts. The top receipt generator was KBG, with the top 25 companies being highly established local firms with an average business life of 33 years !

And some of the leading MWBE receipt generators are not even based in Shelby County ! See below:

This type of elitist programming is not going to move the needle with a 4500 firm gap to catch the next below average peer of Birmingham. Additionally, one easily can see what happened when EDGE ended LOSB participation in their local business program in 2016. Highly established businesses, just piled into WBEs. See graphical representation below:

Conclusion

The only way to increase commercial vitality is for an all hands on deck support for local small, less established business and startups through increased transactional velocity. The local effort always seems to be on raising capital, business planning advice and expos and not transactions. 

As far as MWBE and LOSB programming, that needs to be prioritized for businesses with the need and startups. Not the type, Epicenter and UMRF are focused on with sights on going public but small businesses that build commercial vitality. And yes, right sizing PILOTs will help as well, as small business depends on public resources for success. 

After all, at least with Shelby County Government, one can be a $100M WBE or MBE company and participate in MWBE. Something is wrong with that and apparently leads to only a few companies dominating MWBE receipts……

Please keep in mind, at one point, the blackboard was a new “technology”. However, with respect to the tech tsunami, “computer” technology will continue to increase into all industry sectors, while soft skills, reading, writing, math and computer technology are all basic skills. 

To that extent, computer technology will evolve and become more industry specific. Given this coming technological specialization, regional economic development efforts will need to ride the tech tsunami through industry specialization. Agriculture or AgTech in Memphis is an example of a qualified economic development industry growth target.

From a talent pipeline development standpoint, as a common language staple, industrial occupational demand should drive educational programming and academically aligned career planning for ALL students. Common language communication between professionally diverse stakeholders, as informed by data, is the bedrock that supports regional workforce development implementation.

Unlike other areas of the country that are struggling with an aging workforce, Memphis has an economic development asset in its youthful population when compared to municipal peers. Unfortunately, this economic asset has been systemically ignored in Memphis, through disconnected workforce development programming while not prioritizing the community college system.

As communities throughout the country prioritize their local community college system to accelerate and increase post-secondary completion rates, Memphis instead, has prioritized its 4 yr University of Memphis (UofM) public university.

Evidence of this comes in the form of local appropriations for UofM tennis courts and swimming pools, while the UofM partners with the local EDGE industrial development board and advocates for taxpayer losing tax abatements. These actions negatively impact local educational funding and come after the 2016 installation of a local corporate UofM Board of Trustees. 

Sadly, this is a strategic economic development nightmare and miscalculation of MAMMOTH proportion. As a result, post-secondary completions fell in Shelby County by 827 or 7% in 2019. This reveals that Memphis is not strategically leveraging a key economic development asset in its youthful population. And this decline in completions is not good when Shelby County resides at the bottom of their peer group in post-secondary completions per 1K population.

Conclusion and Solution

So, an overall solution to riding the tech tsunami, is a demand and data driven curriculum, that informs common language supported career planning and skill development in the academic curriculum.

Based on regional occupational demand data, the curriculum naturally promotes alternatives to 4 yr degrees to accelerate and increase post-secondary completion rates. This promotion will better satisfy labor market demand as shown in the above “Success in the New Economy” video. Watch for the 1:2:7 ratio in the above video.

And finally, funding wrap around services for disadvantaged students should be prioritized to help increase completion rates as opposed to university tennis courts and swimming pools. The former alternatives would further promote career pathways that include 4 yr degrees and beyond as part of a lifelong learning continuum.

Robot Rudd doesn’t know what taxpayer justice or corporate elitism is. He’s just a robot for the corporate elitist University of Memphis Board of Bullies (Trustees). Another systemic racism initiative, just won’t work.

Its sad, but seemingly by design, just about every question in Memphis, divides the taxpaying public along racial lines, while protecting, through ignorance, runaway corporate elitism. 

Nothing, other than taxpayer justice, that confronts corporate elitism will work for a majority Black Memphis community in need. Its the very type of corporate elitism that the UofM participates in with $3M local grants for tennis courts while advocating for the taxpayer losing Poplar Plaza abatement award within their university development district.

Another systemic racism initiative, is just another elitist trick bag that has been old hat in Memphis for decades. The new initiative, yet again,  boasts of increasing post secondary completion rates just like the Brookings FOCUS plan did a few years back. The failed Brookings Plan was co-chaired by FedEx’s Chief Counsel at the time, Christine Richards.

Prior to the new local Board of Trustees, in the 2015 Spring, Dr. Charles Santo, of the UofM questioned Richards co-chair role at the time, in a paper entitled Economic Development in Memphis. The paper is a diplomatic attempt to ask the question “What in the Hell is Going on with Economic Development?” With regard to Richards, Santo said,

The most concerning component of the power structure is the conflict of interest that results from the plan’s [Brookings FOCUS] intention to lessen our dependence on the logistics industry and having the vice president of FedEx chair the steering committee. 

Today, Santo’s 2015 paper, is interesting reading and for the most part, accurately predicts current imbalances as shown in today’s corporate elitist economic development policy outcomes. In the paper, Santo when on to say, regarding the Brookings FOCUS plan:

The plan contains no specific timelines, deadlines, or deliverables and there are no methods for target setting or performance tracking of implementation.  

But because of the local news and measurement blackout, of the local public-private complex, carried out in many ways by the UofM’s Institute of Public Service Reporting in partnership with the anonymous donor led Daily Memphian, no one knows the Brookings FOCUS Plan was/is a total failure. 

For example, no one knows that 2019 Shelby County post secondary completions dropped by 827 from 11,561 to 10,734, a 7% decrease. That’s not good news, when Shelby County is already at the bottom of the peer group, in post secondary completions, per 1k population.  

At the same time, some good news here. Santo is on the systemic racism community engagement, policy and advocacy task force with Daphane McFerran and Elena Delavega. But, its really not advocacy at the UofM. Its “politically correct” wait until you are formally invited to speak about your research in front of local bodies.

In any event, its more of the same faces with another relabeled initiative. 

Thought Stagnation: Same People and MWBE

The same people and corporations serve on multiple local boards furthering thought stagnation. For example, the UofM Board of Bullies has 3 Board members with direct connections to FedEx, with the same old crew rounding out most of the remaining board seats in First Horizons, International Paper (IP), Sedgwick, Methodist and Baptist. This is the standard lineup of corporations that serve on multiple public private boards, resulting in local thought and growth stagnation. 

Then there is J.W. Gibson and Carolyn Hardy (above), who serve on multiple local boards, participating on the Minority Business task force. For years, Gibson and Hardy have witnessed the local elitist sham of minority women business enterprise (MWBE) programming.

After all, Kathy Buckman Gibson, from one of the wealthiest families in Memphis and owner of KBG Technologies, took down the most EDGE MWBE receipts with $13M from International Paper. Gibson and KBG are the very type that don’t need the help from MWBE.

Further, the overall data shows a trend in long established Memphis businesses and even affluent businesses dominating MWBE receipts. Effectively, the corporate recipients of excessive EDGE PILOTs are trading with those they most likely would trade with in any circumstance.

And as a matter of note, Buckman-Gibson sits on the National Civil Rights Museum Board with IP and IP is part of the University of Memphis Board of Bullies. And the UofM’s Spark’s Memphis Economy project has a formal partnership with EDGE. So why can people not see the connections ? It’s not reported furthering community ignorance !

Here Come’s The Press Sham and More Ignorance

In most cities, the sham of the Memphis press would be a scandal. But its just one of many. As an example and broke by this blog, the recent massive Nike $58M PILOT compliance breech went locally unreported. This nonreporting furthers local corporate elitism making the local press a primary enabler of communitywide ignorance and corporate elitism. 

Status quo Quotis Sanford and David Waters are heading up the systemic racism press effort through the UofM Institute of Public Service Reporting (UMIPSR). The UMIPSR partners with the anonymous donor led Daily Memphian (DM) for investigative journalism. And additionally, the DM and UMIPSR are entering into a partnership on UofM radio. This is in addition to the DM’s, Behind the Headlines, that leverages public broadcasting. 

Collectively, the UofM and anonymous donor led Daily Memphian are fully leveraging public funding to cost effectively control the local narrative that amplifies systemic racism while muffling any discussion of the very corporate elitism that feeds on a majority Black community in need. 

One would think other competitive journalistic outlets would respond with more investigation of the corporate elitist establishment. But not so fast. As much as anything, the non-investigative press enables communitywide ignorance while runaway corporate elitism persists in a Memphis community in need.

Conclusion

The elitist and racially diverse public private complex feels entitled to violate and feed, unchecked, on a Memphis majority Black community in need. Without competitive and transformational checks and balances, the design is set for a trajectory of stagnation and community decline. This is because with persistent runway elitism and without taxpayer justice, there will be no social justice. So much for another systemic racism initiative.

The architects of the former in Fred Smith and Pitt Hyde would never step into the arena to debate the cultural outcomes of their 20 yr public private complex. And this comes after Smith’s favorable talk of Roosevelt’s “Man in the Arena”. Nor would they allow their bureaucratic twerps in harm’s way.

This is because, the bullies in Smith and Hyde know, with certainty, that they would be spanked…..

Councilman Chase Carlisle and Caissa Public Strategy’s Brian Stephens are supporting, yet another, old hat elitist public-private initiative and tactic in distraction. While requiring a complex referendum, the distraction is, wasted time spent, discussing the marginal benefits that might come, with the unlikely consolidation of City/County government. 

Meanwhile, local economic development efforts, that could be legislatively addressed today, are in disarray, while being functionally redundant and inefficient, costing taxpayers millions.

More interesting, is what this public-private effort does not advocate for in 1) consolidating and better measurement of economic development, 2) right sizing excessive corporate/real estate incentives to confront the structural revenue problem occurring on the back of a majority Black community in need and 3) MWBE / PILOT compliance. 

Don’t kid yourself. Memphis problems are a product of an archaic elitist design for decline, carried out by a racially diverse and unmeasured public-private complex, that feeds on the taxpayer, in a majority Black Memphis community in need.

And if that is not enough, the data on the benefits of governmental consolidation is inconclusive, with more unconsolidated than consolidated cities, outperforming Memphis/Shelby County in total wage growth. Maybe consolidated government is best, but it should not delay addressing improvement opportunities within legislative reach today.

So, why not get real and focus on consolidating the local economic development function ?

First Things First – County then Regional 

Louisville, a similar border, river and logistics hub city to Memphis, leverages a regional interstate collaborative, to achieve above peer average economic development outcomes. For example, per BLS data expressed in thousands, Louisville/Jefferson County, from 2010-18, achieved above average 40% total wage growth, compared to the below average, Shelby County at 26%.

Had Shelby County achieved Jefferson County’s 40% total wage growth, for the same 2010-18 period, that would have translated into $2.7B more in annual wages and $81M in recurring local tax revenues. Or, over the 8 yr period, cumulatively, approximately $10.8B more in total wages and $325M more in total local tax revenue would have resulted. 

But here is the problem. Before any interstate regional approach, Shelby County must consolidate the local economic development effort. Shelby County municipals, outside Memphis, remain unrepresented on the Shelby County Regional Alliance. What is that all about?!?!

And per the Shelby County Trustee website, there are 9 abating boards, performing the largely redundant function of abating taxes. The former occurs as EDGE and the Downtown Memphis Commission, have over $50M in cash reserves on their balance sheet, with only $17M in annual operating costs. C’mon Man ! With the former in mind, County economic development consolidation is paramount.

County Economic Development Functional Consolidation

Having the municipals represented on the Shelby Regional Economic Alliance, would seem to be a common sense slam dunk. And with the Port and workforce as distinct economic development functions from incentives, consolidation of the tax incentive function, is common sense too. 

Besides, with 9 abating boards, in the present unconsolidated state, taxpayers and public officials cannot easily measure or see what is going on with tax incentives. The lack of legislative curiosity, investigative press and public university thought leadership, further compound the problem. This reality leaves the Memphis taxpaying, majority Black community in need, holding the bag with over $100M in annual corporate/real estate incentives.  

At the same time, from an administrative staff perspective, the redundant tax abatement function can be easily consolidated, to serve multiple boards, with centralized web based administration, to facilitate public oversight, research based incentive sizing, compliance and measurement. 

In this model, some abating board staff, can be reallocated to compliance monitoring. With multiple reports of non-compliance, PILOT compliance monitoring is needed to fill the gap. To this extent, relying on corporate self reporting, EDGE, for example, has not conducted compliance audits since 2014. More onsite compliance monitors would address this gap. 

Further, abating board incentive fee structures need to be aligned with economic development and public revenue needs. Economic development is most commonly defined around increasing wages. Currently, EDGE is financially incented on maximizing corporate/real estate abatement awards and Downtown Memphis Commission is incented to offer more than 10 year abatement terms. These fee structures are unrelated to increasing wages or public revenue needs. 

And finally, while new abating Board appointments are desperately needed, beyond staff, some Memphis/Shelby Boards such as EDGE, Downtown Memphis Commission and Health, Education and Housing Facility Boards, may be ripe for consolidation as well. With fewer meetings, public officials could more easily participate on abating boards, ideally through voting participation.

Conclusion – Get Real

The current functionally redundant, inefficient and confusing economic development system is a design for decline. The confusion contributes to enabling a culture of corporate elitism while transferring wealth from a community in need to those who need it least.

And without a plan, the current local system is unaligned to real economic development measures which would precede more optimal and collaborative regional economic development efforts. 

Carlisle and Stephens should get real and focus on consolidating and aligning Shelby County economic development efforts with an eye on regionalism. As far as the elitist and wishful distraction of consolidating local government, if it were to occur, it alone would be much more difficult and much less prosperous than consolidating economic development….