Happy 4th of July!

We hope you are having a wonderful time surrounded by family and friends.

We know many of our friends around Sacramento may not be feeling especially patriotic these days, but we choose to celebrate anyway, because as our 18th President (That’s a West Wing reference, you’re welcome.) reminded us:

TRSacramento“Patriotism means to stand by the country. It does not mean to stand by the president or any other public official, save exactly to the degree in which he himself stands by the country. It is patriotic to support him insofar as he efficiently serves the country. It is unpatriotic not to oppose him to the exact extent that by inefficiency or otherwise he fails in his duty to stand by the country. In either event, it is unpatriotic not to tell the truth, whether about the president or anyone else.”
― Theodore Roosevelt (Did you know he gave a speech in Sacramento? The Mayor he refers to in the speech was George H. Clark.)

Or as Mark Twain put it:

“Loyalty to country ALWAYS. Loyalty to government, when it deserves it.”

Most important, enjoy your celebrations safely:

385158b2-5c45-4e5a-b3f0-04bf701f7851.jpg

 

Sacramentality’s Summer Book Club

Alas, summer is upon us, the mercury is headed north and many of us are headed east to the mountains or west to the beach to escape Sacramento’s sometimes squelching heat. Since we will all need a book or two to read as we fly or drive to our destinations (or if we are instead staying home, to kill time while the networks are all on reruns), your friends at Sacramentality thought you might appreciate a recommendation or two, so we enlisted some of our friends, civic leaders from around Sacramento, to provide them. Feel free to share your thoughts and your own recommendations in the comment section and be sure to log your books at the Sacramento Public Library’s Summer Reading Challenge.

Zen Mind, Beginner’s Mind by Shunryu Suziki

Robert Nelsen
President, Sacramento State

A closed mind, an expert’s mind, is not open to innovation and experimentation—a closed mind does what it has always does.  Today’s world’s problems cannot be solved doing what we have always done. We must be open to possibilities and to change.”

The Book of Joy by Dalai Lama, Desmond Tutu & Douglas Abrams

MulvaneyJoyPatrick Mulvaney
Chef and Owner, Mulvaney’s B&L

“Two old friends talking about love and happiness. And needling each other at the same time, a great read.”

Channeling Patrick’s recommendation both Councilmembers Angelique Ashby and Eric Guerra say The Book of Joy is at the top of their summer reading lists.

The Wisdom of Sundays by Oprah Winfrey

Angelique Ashby
Councilmember, City of Sacramento

“The Wisdom of Sundays is my all time favorite inspirational book. I have read it many times, loaned it out, given it as a gift and recommended it to anyone who will listen. Each time I read it I imagine myself having coffee with Oprah and asking her tons of questions about what she has learned in all her interviews and experiences over the years. This book feels like advice from a friend. It’s inspiring and hopeful and honest. Easily my favorite reread.”

IMG_7112

Fifteen Dogs by Andre Alexis

Rivkah Sass
Executive Director, Sacramento Public Library

“The gods are at it again. Hermes and Apollo wonder if animals imbued with human intelligence and communication skills will be happier at life’s end or if that intelligence will simply lead to misery. Fifteen dogs in a veterinary clinic and readers everywhere are given the opportunity to find out.”

Good to Great by Jim Collins

Rhonda Staley-Brooks
Executive Director, Nehemiah Foundation & President Sacramento State Alumni Association

“My favorite book is authored by Jim Collins, Good to Great.  What is even better, there is a smaller version for us Do Gooders, Good to Great for Social Sectors!  Collins states ‘The difference between successful organizations is not between the business and the social sector, the difference is between good organizations and great ones.’”

Rhonda Books

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael E. Gerber

IMG-6287Isaac Gonzalez
Tahoe Park & YMCA Advocate/Gadfly

“I read this book once a year, because even though I work mostly in the non-profit space, there are many good practices and processes that successful businesses use to create efficiencies and scale up. High recommend it to anyone who feels like they’re working hard but not moving in a positive direction or encountering too many setbacks.”

Big Plans By Bob Shea

Joe Wagoner
Vice President, Sacramento Republic

“I have a five year-old daughter and seven year-old son. Most of my recreational reading revolves around ‘Big Plans’ By Bob Shea. In fact, that book was a contributing factor to the creation of Republic FC. That read is much more interesting than my numerous recommendations about sports business analytics!”

Although perhaps we are usually short on opinions, the Sacramentality team offered some recommendations of our own as well:

Fifty Inventions that Shaped the Modern Economy by Tim Harford

Devin Lavelle
Parks Commissioner, City of Sacramento & Senior Researcher, California Research Bureau

“Light enough to consume at the beach before swimming, split into bites that can be enjoyed despite interruptions, Tim Harford tells the tale of how inventions as diverse as barbed wire, infant formula, double-entry bookkeeping, leaded gasoline and index funds have fundamentally transformed the world we live in in ways most could not imagine. Whenever I pick up this book, ideas begin simmering about the way different ingredients transformed the recipe that is modern life.”

20180614_090456

1984 by George Orwell

Caity Maple
Ann Land & Bertha Henschel Memorial Funds Commission Commissioner, City of Sacramento & Lobbyist, The Quintana Cruz Company

“Be eerily reminded of elements of the current political system, and keenly aware of our tendencies to follow rather than lead. A great read and reminder of the power of opening our eyes and taking a look around!”

The Great Thirst: Californians and Water: A History by Norris Hundley, Jr.

Kevin Greene
Ethics, Transparency & Good Governance, City of Sacramento

“The History of Water in California is the history of California. This is a fascinating, and surprisingly quick read at almost 800 pages, that thoroughly and clearly describes the water wars, (politically, legal and violent) and how water has shaped California and its population growth.”

The Lorax by Dr. Seuss

Devin Lavelle
Father of Boys

As the author I’ll choose to exercise a point of personal privilege here and recommend a second book as well. Every night my oldest son Henry picks two books to read before bed. One he chooses frequently is The Lorax and I love that among the last words he hears before drifting to sleep many nights is, “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”

With that, I leave you with a short poem and my sincerest apologies to Dr. Seuss:

So catch! Cried Sacramentality, as we let something fall.
It’s a list of books.
The best books of them all!
Choose a new book. Read it with care.
Read it near water. Or in a room with conditioned air.
Read it online. Protect it from hackers that hack.
Then the autumn and all our wonderful weather
may come back.

 

Summer Book Club Supplement

In addition to her recommendation, Councilmember Ashby shared with us her entire summer reading list from last year, which we thought our readers might enjoy:

“My favorite summer read last year was First Women. I read this one over our family vacation along the California coast. It was fantastic. If you are at all curious about the type of relationships First Wives of our Presidents have with each other and with their staff and their husband’s staff, this book will be a delight.

The stack of books (plus First Women) is my summer reading list from last year. All are great. I recommend any of them – it just depends on what you’re looking for.

I like Nicholas Sparks when I want to read a love story or cry or disappear into fiction (I like Jennifer Weiner too for that purpose – but I didn’t read any of her books last year, probably because I have read most of her work already).

Calm is another great book to read and reread – it will help you feel relaxed (there is a companion meditation app to this book, also called Calm, that is a fantastic tool for slowing down and taking note of all that is happening in our lives).

Life Changing Magic of Tidying Up is great (better than you might think). I am already a bit of a minimalist so this book speaks to me – but it’s worth a read if motivation to organize and reduce clutter are on your to do list.

Little Book of Lykke is a study into happiness across countries and communities with analysis of what makes neighborhoods happy. It’s interesting and full of creative concepts from across the globe. I enjoy these type of reads because they feed my desire to think beyond our current measures.

All of these books are good reads for different reasons. Each one fed my spirit in one way or another. Should you choose to take one in, I hope it does the same for you.”

IMG_7111

Love a Library!

Here at Sacramentality we love libraries. Not just because this author happens to work for the California State Library or because the Sacramento Public Library was integral to Nicolas’ Luella series, but because, quite frankly, libraries are great!

That is a statement that the large majority of American adults agree with … even if most of us haven’t set foot in one in the last year. The truth is, I probably went about six or eight years between public library visits, when I last needed to get some information from a journal for research I was doing for a prior employer, to a few years ago, when I rediscovered all of the amazing things libraries are doing, both here in Sacramento and around the state, and started to realize they are so much more than just books (cue argument with myself about whether the phrase “just books” is appropriate). But the transition did recently lead California State Librarian Greg Lucas to ask, “What the hell is a 21st century library?

Since this is National Library Week, we at Sacramentality thought we might take the opportunity to remind you, our loyal readers, of the many, many ways that libraries contribute to our community, a few fun examples brought to you by the letter H:

  • Hacker Lab
  • Hangout on rainy days
  • Home to amazing celebrations of Dr. Seuss
  • Homework helper
  • Hub for data literacy
  • Huddle-space for community non-profits
    (Geez, he’s really stretching the “H” theme with this one …)
  • Heart of their community:

If you want the most rocking community center ever, it’s already there. It’s the library. ~ State Librarian Greg Lucas

The truth is that libraries provide the infrastructure to help overcome the educational gaps that drive so much inequality in our country. Whether helping adults achieve high school diplomas, English proficiency & literacy or completely opening a child’s world:

MeasureBCalifornia’s libraries collectively hold 82.2 million items, including about 6.7 million at the City of Los Angeles, an additional 5.7 million at the County, 5.3 million in San Diego, 3.1 million in San Francisco and, several notches down the list, 1.2 million, here in Sacramento. What our library lacks in sheer size, though, it makes up for in quality, with the average item checked out 6 times per year, sixth most in the state and second among relatively large libraries! (It’s a good thing we passed Measure B, that’s money well spent!)

It is no wonder then, that the Sacramento Public Library was nominated for the Oscar of the library world, the National Medal for Museum and Library Service. While our wonderful Director Rivkah Sass may say, “being nominated again is an honor.”  And while we agree, “the nomination is validation of what the Library does for Sacramento, and that we continue to demonstrate excellence by opening new doors for the people in our community,” here at Sacramentality we cannot help but think that the Sacramento Public Library has not just earned the honor of nomination, but of bringing that medal home next month. Check out some of the great stories shared by dozens of folks from around Sacramento in the comments:

FacebookIMLS.png

My kids and I have fun, learn, read, and make new friends every time we visit our library! What a gift to those of us with young families, always looking for affordable, accessible, high-quality activities to do with our kids. Sacramento Public Library plays such a unique and irreplaceable role in our community. ❤️ #shareyourstory

So, dear reader, if like all of us at Sacramentality (along with most Americans), you love our libraries, I hope you will consider joining me in becoming a Friend of the Sacramento Public Library. For just $20 you can help support the great work the Friends do, expanding the collection, providing books to young readers and developing fun and educational programming for community members of all ages.

AddFriend

Look Who’s Brewing Too

SacMixedCans dml.jpgSacramento makes a lot of fantastic beer! Just check out the lineup offered at my local Nugget (and thank them for offering a particularly good selection of local craft beers). While Sacramentality’s loyal readers will recall, our region is far from the biggest brewing region in the state, it has been the fastest growing over the last five years, taking a 5x multiplier to its 2011 size.

Sacramento’s brewing scene has gone through some difficult times over the 15 years we have data from the Board of Equalization (Thanks again, BOE!). Production was flat through the onset of the recession, when the closure of two of the region’s largest breweries saw production decline dramatically, even as craft beer continued to grow across the state and nationally. Production increased slowly through the recession but has caught fire since 2013.

Sacramentality-SacBreweryProduction-2016-dml.png

The Old Faithful
Sacramentality-SacOldFaithfulProduction-2016-dml.png
In 2016, seven breweries remained from the first few years of the 21st century. Sudwerk has grown slowly, but unevenly over the last decade. It became the largest brewery in the region in 2007, when Sacramento Brewing Co. began its decline, despite seeing no growth over the previous year. It fell from the top spot in 2014 after Knee Deep opened their Auburn facility. In 2016 they fell to third behind Track 7 and Berryessa may soon be nipping at their heels.

Rubicon saw several years of steady, but limited growth in the years of Sacramento Brewing’s collapse and closure, doubling from 34 thousand to 68 thousand gallons between 2006 and 2012. Production would double again over the next three years with the new brewery in place, but with little growth in 2016, it was falling well short of the planned 10x pace, leaving it destined for a duplicate appearance in our next section.

Jack Russell and Hoppy are about the same mid-size breweries they were in 2002 while the other five began and remain tiny as well.

The Dearly Departed
Sacramentality-SacDearlyDepProduction-2016-dml
Prior to the recession, production in our region was dominated by Sudwerk, Sacramento Brewing Company, Beermann’s Brewerks and Brew It Up. At their peak, these four collectively produced about three quarters of Sacramento’s local beer between 2003 and 2005. Of those four, only Sudwerk still exists. While Rubicon was smaller at the time, they grew significantly in the vacuum the larger breweries left behind, but called it quits in 2017. Similarly, American River grew relatively quickly in the New Wave, but also shut their doors last year. Brew It Up has been revived across the river in YOLO County, so perhaps we have not all enjoyed our last Monkey Knife Fight?

The New Wave

Sacramentality-SacNewWaveProduction-2016-dml

Auburn Alehouse was the first of the New Wave, opening in 2007. As something of a tweener, they opened their doors just before the string of major closures in 2009. They grew slowly for the first several years, before significantly increasing distribution in more recent years, growing to 87 thousand gallons in 2015, before declining slightly in 2016, leaving them well behind the biggest producers, but still the sixth largest brewery in the region.

With an economy in shambles and the region’s brewing scene crashing, it was no surprise that no new breweries of significance opened over the next three years. 2011, however, would prove to be the beginning of something very big. That spring Knee Deep began brewing in the old Beermann’s location. Starting with a respectable 26 thousand gallons, they would double in 2012 and, after reaching capacity at their original location and after beginning to level off in 2013, moved to their new brewery in Auburn. The new facility allowed a tripling of production in 2014, doubling that in 2015 and increasing again by nearly one-third in 2016.

Track 7 got off to a slower start. They did not begin production until the very end of 2011 (leading to their annual New Year’s Eve anniversary parties) and grew more slowly within the confines of their Curtis Park location. Since opening their larger Natomas production facility in 2015, however, Track 7 has been catching up quickly.
2011 also saw Loomis Basin and Berryessa open their doors. Loomis Basin started larger and tripled in size by 2016, becoming the seventh largest brewery in the region.

Berryessa started smaller, in the tiny Winters market, but took off starting in 2013, passing Loomis Basin in 2015 and Auburn Alehouse in 2016, reaching the fifth spot. An early look at 2017 data suggests they have continued to grow quickly.

The next few years were not only been categorized by the growth of its biggest players, but also an explosion in the number of breweries producing craft beer, nearly tripling over the last five years. Perhaps most notable is the growth in that juicy middle of the local market. In 2016, the nineteen breweries producing between 10 and 40 thousand gallons collectively account for one quarter of the market (with New Glory, Bike Dog and New Helvetia at the high end and Monks Cellar, Jack Rabbit and Mraz at the low end), providing a substantial, highly localized cornerstone of the market – and the kind of competition that can drive delicious innovation across the region. Nearly all of these breweries opened their doors in 2012 or later, offering the real possibility that many of them could follow the paths of the older, bigger brewers in the new wave.

KneeDeepTrack7Auburn.png

NewGloryAdI’ve seen our local mid-sized breweries employ two primary strategies to significantly push past their tap room-generated demand.

While nearly all breweries have limited release specialty and one-off beers they produce, some take this to a much more extreme, social media-fueled level. Visitors to New Glory in Sacramento or Moonraker in Auburn will rarely see the same beer again. While they both have a number of excellent, highly regarded beers, they only brew any given variety occasionally. When their most popular beers roll off the canning line, the most enthusiastic beer fans show up sometimes hours before the breweries open to ensure they get their share. Flatland in Elk Grove takes it further, literally never serving the same beer twice.

By creating the perception of scarcity and making each release feel like a “can’t miss” event, they help to create a buzz around their best beers and ensure that newer experiments will sell, even if they don’t live up to the reputation of their cousins.
The second approach worked very well for Track 7, but disastrously for Rubicon. If a main component of your business is operating a dedicated retail establishment to sell the product in a local market, adding more locations in more markets gives breweries the opportunity to sell more beer at much higher margins than when a distributor gets involved. Track 7 grew up as the local brewery in the relatively small Curtis Park market, but by adding their second location, they became the go-to brewery for the much larger Natomas community. Rubicon’s new West Sacramento location was likewise opening an untapped market (although the tap room opened later than the attached production facility, perhaps letting their new West Sacramento competition get too strong of a toehold in the community). While new markets offer the promise of long term stability, beyond the whims of offering the hot product on social media, it also means substantial capital investment; disappointing returns, as Rubicon experienced, could be disastrous.

Both of these earlier examples sought to double down on their investment, not just opening a second retail location, but also substantially expanded production capacity in the new location, increasing the potential for growth, the cost and the risk. The investment saw Track 7 take off, growing from a local tap room to a major regional player in just two years, while Rubicon was left with a bill it lacked the consistent revenue stream to pay down. Today, others are taking a more limited approach. Bike Dog added a new tap room just two miles from their West Sacramento brewery. The river and its unfortunate lack of bridges (a future article?), however, makes the few hundred feet between West Sacramento and West Broadway a veritable chasm. Going even further, Device is tripling down, adding Midtown and Pocket locations to their business. Their experience will be interesting to watch, as they are both going head-to-head with numerous breweries and bars in Midtown’s busy market, while also becoming the only brewery on the I-5 corridor between Broadway and Elk Grove with over two miles to the nearest bar in the Pocket. Here in the Pocket, we are excited to have them and rooting for their success!

DeviceCans dml

Going beyond the local markets and becoming the kind of breweries that add their region to the state’s leaders will take something more, however. When you look down the list of the state’s top craft breweries, you see:

Sierra Nevada, whose generous use of cascade hops came to define the west coast style and their classic pale ale remains California’s go-to craft beer decades later;

Stone, whose arrogant gargoyles were at the forefront of giving packaging real personality and who made big, high alcohol, high flavor beers the driving force of west coast craft brewing through the beginning of the 21st century;

Lagunitas, who took that full flavor, high alcohol form and reproduced it at a more consumer-friendly price point; and

Ballast Point, whose Grapefruit Sculpin caught the big wave of fruity IPA’s and rode it to near perfection.

SierraStoneSculpin dml

If one of our fantastic breweries is going to make that leap, it will probably take a genre-defining effort. Perhaps Moonraker will be able to leverage their reputation for truly fantastic hazy IPAs (and a recently announced brewery expansion) and make Auburn the west coast’s New-New England if the “haze craze” spreads to mainstream markets. Or if the market for subtle but flavorful craft lagers expands (making so many brewers’ dreams comes true), Sactown Union’s focus and talents in that area could pay huge dividends – or perhaps Sudwerk’s established market share and capacity will give them the edge. Maybe our talented and creative brewers may dream up something I could not even imagine that will set the beer world on fire. Or maybe the future of craft brewing will revert back to a more local focus, leaving the larger breweries struggling for market share as consumers seek out their favorite local flavors.

No matter way the market goes, I suspect our very last chart of the article will change substantially over the next several years – and I cannot wait to taste it – or to write about it. You can look forward to the next article in the Look Who’s Brewing series this summer when 2017’s data is released.

Sacramentality-SacBreweryPie-2016-dml

Look Who’s Brewing

FlippinGooddml

Craft beer is booming in Sacramento, California and the nation! According to the Brewer’s Association, craft beer has grown to 4.2 times its 2004 size in the ensuing twelve years. Board of Equalization data acquired by Sacramentality shows that California was ahead of the curve so has grown a little slower to 3.5 times its size, although that drops to 2.7 times if breweries recently purchased by macro conglomerates are omitted.

Sacramento (represented by a Kings flag, both because the current flag needs replacing and because the data represents the metropolitan area, not just the city) was hit hard by the recession, dropping to 2/3 its 2004 size by 2009 and growing slowly through 2013, but has exploded since, more than tripling in the last four years. We will delve deeper into the local brewing numbers in a subsequent piece, but the decline was caused almost entirely by Sacramento Brewing Company’s descent into oblivion.

 

Sacramentality-BreweryGrowth-2016-dml

Craft brewers are not the only ones brewing in California. Driving over the causeway, you’ll see a prominent billboard with the good folks of Anheuser-Busch pointing out that Bud Light, despite its strong association with St. Louis, MO is brewed in California.

BrewedInCAdml

Perusing Board of Equalization data, we see that this is true. Very, very true.

Sacramentality-BreweryMarketShare-2016-dml

Most (56%!) of the beer accounted for in the Board of Equalization Beer Manufacturer Tax Reports (provided graciously by BOE staff, thank you for that) was brewed by the good folks at everyone’s favorite Belgo-Brazilian mega-conglomerate, Anheuser-Busch InBev. Add in South African-Canadian-American mega-brewer, MillerCoors and the macro brewers collectively top 80 percent of California’s locally produced beer. Budweiser tops 400 million gallons, while MillerCoors hovers around 190 million gallons. While the macro brewers continue to dominate the shelves, their numbers have been slipping, leading the big guys to take a ‘if you can’t beat’em, join’em’ approach.

Sacramentality-MacroShare-2016-dml

Coming in third is California’s largest craft brewery (and, coincidentally, the nation’s third largest – behind Yuengling and Boston Brewing), Sierra Nevada. At 34 million gallons, Chico’s finest accounts for nearly five percent of California’s beer, nearly as much as the next three, Lagunitas (14.6 M), Ballast Point (12.2 M) and Stone (11.8 M), combined. Firestone Walker (11.5 M) rounds out the top group. There’s a large jump to the next group of breweries, with fourteen totaling between one and four million gallons (Anchor, Gallo, Bear Republic, Green Flash, Gordon Biersch, Lost Coast, North Coast, Golden Road, 21st Amendment, Anderson Valley, Karl Strauss, Coronado, Pizza Port and Hangar 24).

These seventeen breweries collectively account for 96.5 percent of California’s brewing. The remaining 600 plus breweries total less than Sierra Nevada brews alone.

Sacramentality-BreweryCategory-2016-dml

With so much of California’s craft brewing consolidated in a handful of its largest breweries, it is not surprising that its brewing is largely consolidated in five regions:

  • Northern California: over 80 percent of which is produced by Sierra Nevada
  • San Diego: two-thirds by Stone and Ballast Point
  • North Bay: nearly 80 percent by Lagunitas
  • Central Coast: nearly 90 percent by Firestone Walker
  • Bay Area: two-thirds by 21st Amendment, Anchor and Gordon Biersch

Sacramentality-BreweryRegion-2016-dml.png

Today, Sacramento remains among the smaller brewing regions, but that may soon change. Our region has been the fastest growing since 2011, increasing production by more than five times over. Check back in a few weeks and we will delve into and celebrate the enormous growth Sacramento’s brewing scene has experienced the last several years. With great breweries like Moonraker, New GloryNew Helvetia & Mraz continuing to push the envelope, an expansion announced by Device, recent newcomers including Flatland and Claimstake beginning to tickle our taste buds, highly anticipated openings in the New Year in Urban Roots and Moksa and larger, established breweries like Track 7 and Knee Deep, I think we can all agree that Sacramento’s brewing scene is Flippin’ Good!

Give Wisely. On Tuesday and Everyday.

Giving Tuesday

The concept of Black Friday emerged in Philadelphia in the 1950s, an unhappy day when the city was overrun by crowds and petty crime, forcing police to work long hours and creating the unhappy name. It remained a local tradition until emerging nationally in the late 1980s with the reimagined (and typically untrue) story that it represented the happy day when retailers finally became profitable, while offering consumers rock bottom prices.

Cyber Monday was the next shopping tradition to emerge. Coined in 2005 by Shop.Org to describe the trend, it seems to have emerged more organically than its cousin shopping days as America’s workforce returned from the Thanksgiving Holiday less than eager to dive head-on into the week’s work, instead preferring to peruse the rapidly expanding world of e-commerce.

CyberMonday

Five years later in 2010, American Express (a very large business) began promoting Small Business Saturday. The credit card company relies on small business owners as a major component of their portfolio and it proved both good marketing and a good cause as President Obama and other elected leaders began to lend their support the following year.

SmallSaturday

Two years later the family was finally complete, when Giving Tuesday emerged from the 91st Street Y in New York City, seeking to encourage giving and not just consumerism in the holiday season (Additionally, a great example of the value of including all Americans holidays in this happy season, since it was the Young Men’s Hebrew Association that brought our country together in the spirit of giving). A number of online vehicles and corporations got on board and it caught on quickly.

GenericGivingTuesday

Which brings us to today.

There are no shortage of incredible local, national and international causes that will do great work with your hard earned dollars. There are also more than a few that won’t. For example, from CharityNavigator.org:

10Worst

Giving money to organizations like these is benefitting only the executives’ yacht funds, not the first responders, veterans or children they are named for.

Of course, ratings like those are not the be-all-and-end-all of the quality of non-profits. At the extreme, they tell us who the worst swindlers are, but they do not necessarily tell us much at the margin, especially with service providing non-profits. For groups that exist primarily to raise money to disperse it to service providers, researchers, etc., these overhead-based efficiency ratings make a lot of sense because the money is all there is.

For groups that provide services directly, the money is not the point, the impact is.

While impact is not always easily quantified, especially in a way that leads to easy comparisons, the information should be readily available on the organization’s website. For example among some of our great local non-profits: My Sister’s House provided over 5,000 nights of shelter to women and children fleeing abuse; Reading Partners successfully taught 89% of their 400 students foundational reading skills; and the Front Street Shelter has taken in nearly 9,500 dogs and cats in 2017 through October, with nearly 2/3 adopted or returned home. A personal favorite of our family, is Fairy Tale Town providing incredible family fun while encouraging reading to over a quarter million visitors in the region in 2016. And, of course, the Sacramento State Alumni Association, whose board I serve on, held more than 475 events, engaged over 2,300 volunteer hours and awarded $37,000 in scholarships. Internationally, the Daraja Academy in Kenya, that a friend raises money for locally, does a particularly good job of sharing their impact:

Daraja

(These are by no means all of the charities having a great impact in our community, just a handful of good ones that came to mind.)

So while we at Sacramentality would very strongly encourage that you give generously to charities in our community, we hope in doing so that you give smart. Know the mission you are supporting and know what how much good you are buying for the world with your hard earned dollars. If a charity you are considering supporting does not make this information readily available, you may wish to consider supporting another instead.

How the Simpsons explains everything … except why they are still on the air

Our toddler freshly asleep, my wife and I sat down to watch a bit of TV before bed last night. The Simpsons popped up at the top of the “My Shows” list. Now, I have not watched the animated classic much the last few years, but I figured, “why not? A few minutes into Homer discovering that Maggie could whistle, I had my answer. How did this incredible show that wove so much timely humor through important issues in economics, religion, philosophy, American politics, political theory, parenting and so much else become such a boring, pointless exercise? I thought the show had hit rock bottom when it made an episode starring Moe’s bar rag. That was 123 episodes ago.

But instead of further calls to put the once iconic show out of its misery, I thought I might draw attention to some classic episodes (including a list of my personal favorites at the end of this article) that could provide some insight into challenges we as both Americans and Sacramentans are facing today and, perhaps more importantly, add some levity to difficult times.

Elections

Hard as it is to believe, the June 2018 Congressional midterms (and city council elections!) are right around the corner and candidates are already busy passing around the hat and dusting off their talking points. The Simpsons first waded into the art of political pandering with  “Two Cars in Every Garage and Three Eyes on Every Fish.” Appearing early in Season 2, we see the Billionaire Montgomery Burns deciding it is more cost effective to run for Governor and change the laws than comply with environmental regulations to protect against, among other things, the creation of three-eyed mutant fish. In an attempt to overcome his massive unpopularity, Burns pours millions into a smear campaign against his female opponent and appears on the verge of victory before Marge forces him into a televised gaffe, saving the day.

Another political gem was the Simpsons 200th episode, which featured U2 guest playing a concert on a trash heap while the inimitable Steve Martin played the hard working, committed public servant Ray Patterson. Patterson brought a professional seriousness and the expertise that comes with well-earned experience to the position of Sanitation Commissioner. His experience and spotless track record proved inadequate when Homer decided to run against him. Bringing bluster, unrealistic promises (“Can’t Someone Else Do It”) and a woeful disregard for budgetary math and even basic facts, Homer is elected in a landslide and disaster ensues.

We, as voters in the real world, have a responsibility to do better than the people of Springfield. The actions of our elected leaders have consequences and if we continue down the current path:

Sexual Harassment

Homer Badman proves that the Simpsons can also get it wrong, while (I suspect inadvertently) providing important insight. After a gluttonous trip to the candy convention, Homer sets off to drive their graduate student and feminist activist babysitter home. As she gets out of the car, he sees the Venus de Milo candy he had pilfered stuck to her pants. Overcome by his lust for the “sweet candy” he plucked it off of her rear end and from there is swept into a whirlwind of public outrage and over the top trashy journalism. By the end of the show the babysitter had realized she had falsely accused Homer, a clear victim of an overzealous, dishonest media and feminist activism.

“Two, four, six, eight, Homer’s crime was very great! ‘Great’ meaning large or immense, we use it in the pejorative sense!”

The episode was written, directed and show-run by men over twenty years ago. So it may not be surprising that they overlooked that, even if his intentions were not sexual, Homer did something wrong (And propagated a demonstrably false narrative that women frequently make exaggerated accusations). Homer wanted something and did not care if getting it violated the young woman’s personal space, making her feel unsafe doing her job. It is easy and feels good to condemn monsters like the President, Harvey Weinstein and an apparently huge number in the Sacramento Capitol community. Among the rest of us, harassment that stems from a lack of empathy, rather than a presence of enmity, remains pervasive.

We all need to be more aware of it than Homer Simpson, because nearly all of us have done it. (#MeToo) We may not have realized it. We may have thought it was just a collegial joke or a friendly compliment. But we did it. We hurt people. And we need to do better.

Strikes

In “Last Exit to Springfield,” out of sheer greed, Mr. Burns decides to eliminate his employees’ dental plan. The witless employees running the nuclear plant celebrate the short-term trade off of a keg of Duff Beer until Homer realizes that without the dental plan, he’ll be forced to pay out of pocket for Lisa’s expensive dental care — an important warning to any ‘young invincibles’ excited at the prospects of new high deductible Trumpcare plans — Homer leads the plant employees to strike. After a hilarious serious of foibles in attempting to run the plant without workers and wonderful Grinch-inspired efforts to crush the union have failed (And lacking any real substantive consequences), Mr. Burns relents and agrees to reinstate the dental plan.

We’ll march ’till we drop The girls and the fellas. We’ll fight ’till the death Or else fold like umbrellas.

In “The PTA Disbands,” we get a more pointed look at the reality of negotiations in the public sector setting, as expressed by Principal Skinner: “What’s the point?  There’s no more money, unless you’ve got some magic new source of revenue.” Seeking “a small cost-of-living increase and some better equipment and supplies for your children” and goaded on by a mischievous Bart, eager to escape class, the teachers go on strike. The schools continue to operate, with classes taught by members of the community … some of whom advocate corporal punishment and cannot keep their beards from being caught in the pencil sharpener. None prove adequate replacements. Once having his mother as a substitute teacher ruins Bart’s fun, he tricks the principal and teachers into negotiating and they come up with a magic new source of revenue — housing prisoners in the school.

TheFingersMean

In Sacramento, we are facing a similar situation. The teachers are on the verge of a strike, asking for a number of improvements, including smaller class sizes, filling vacancies and increased salaries to bring them in line with other districts in the region.

The teachers believe that the District has adequate funds to cover these improvements, citing high levels of reserves and increased administrator salaries. The district counters that teachers are paid competitively within the region, with modestly lower pay but more generous benefits. The reality is that meaningful apples-to-apples comparisons are challenging. Each district’s pay scale is different in regard to rewarding experience and, especially, rewarding varying levels of education.

This dispute, though, exists in no small part because California spends less than average on education. While making an apples-to-apples comparison is complicated, recent estimates have California between $614 to $1,961 below average in per student spending. D’oh! No matter the source, no matter the methodology, it is clear that California spends less on education than other states.

Perhaps then, the solution is a simple one: spend more money on education. Given the structure of education funding in California, local districts do not have the option of shifting around local spending priorities, so the only option is to increase taxes.

There are, of course, trade-offs to every tax but the reality is that for less than $20 per parcel per month (author’s calculation based on Measure G revenue estimates and 2,200 FTEs), we could provide every teacher in Sacramento City USD a ten thousand dollar raise. Such a raise would make our schools the most desirable destination for the best teachers in the region, which has been shown to increase the number of applicants and, more importantly, the quality of hires.

While money is tight in our growing household, my family would be thrilled to have the opportunity to invest in this way in our local schools, our children’s future and the future of our region’s economy. I suspect many families around our district would feel the same and, moreover, despite the recent narrow failure of Measure G, local education parcel taxes have a very strong track record at the ballot boxpurple monkey dishwasher.

While it seems pretty likely that the Simpsons production team cannot do better at this point, here in Sacramento, I know we can. In some ways we already are doing better. Our County is in the process of implementing the Voter’s Choice Act, which will make it easier for every citizen to fully participate in our democracy. And if you are interested, I happen to be holding a forum on the Voter’s Choice Act next week:

PGCA VCA Cover 2017-10-10

Devin’s Simpsons Recommended Viewing

As a proud member of the Oregon Trail Generation (those of us who straddle Gen X and Millenial cut-offs, who, being able to remember a world without computers, but having adopted them in childhood are fundamentally different from both), I sometimes run into difficulties communicating with younger colleagues because my speech is often peppered with Simpsons references. (Perhaps a better reference than Oregon Trail would be First-wave Simpsonists?) In order to help overcome these challenges, I came up with a list of recommended viewing including the best and most culturally important episodes (in the oh so humble opinion of this author), which is included at the end of the article. Enjoy!

  1. Two Cars in Every Garage and Three Eyes on Every Fish, Season 2, Episode 4
  2. Homer Defined, Season 3, Episode 5
  3. Flaming Moe’s, Season 3, Episode 10
  4. Homer at the Bat, Season 3, Episode 17
  5. Homer the Heretic, Season 4, Episode 3
  6. Homer’s Triple Bypass, Episode 4, Season 11
  7. Duffless, Season 4, Episode 16
  8. Last Exit to Springfield, Season 4, Episode 17
  9. Cape Feare, Season 5, Episode 2
  10. Treehouse of Horror V, Season 6, Episode 6
  11. Homer the Great, Season 6, Episode 12
  12. Lisa’s Wedding, Season 6, Episode 19
  13. Two Dozen and One Greyhounds, Season 6, Episode 20
  14. The PTA Disbands, Season 6, Episode 21
  15. Lisa the Vegetarian, Season 7, Episode 5
  16. King Size Homer, Season 7, Episode 7
  17. Twenty-Two Short Films About Springfield, Season 7, Episode 21
  18. Much Apu About Nothing, Season 7, Episode 23
  19. You Only Move Twice, Season 8, Episode 2
  20. El Viaje Misterioso de Nuestro Jomer, Season 8, Episode 9
  21. Homer’s Phobia, Season 8, Episode 15
  22. Simpsons Spin-off Showcase, Season 8, Episode 24
  23. Mr. Plow, Season 9, Episode 4
  24. Trash of the Titans, Season 9, Episode 22

Is Sacramento funding the arena through parking tickets?

Meter-Arena-DML

Parking “modernization” as a concept has raised eyebrows and sometimes scorn. Although presented by some as something of a free lunch (‘No New Taxes!’) in funding the Arena, the reality is that we are paying for that truly wonderful building through increased regular garage and meter rates as well as expanded operating hours and greatly increased rates during Kings games and other major events.

EventRate-DML

This was the plan our elected representatives agreed to, for better or for worse. I have found evening parking to be a pain (on the rare occasion this father of a toddler has needed it), especially the extended 2 hour enforcement. I also appreciate that funding the arena through parking revenue was a reasonably effective strategy to primarily raise revenue from the individuals who benefit from the arena itself and from surrounding developments. Moreover, it is likely the only strategy that could force regional users to pay and not allowing them to free ride on the City, as they so often are able to do.

Still, there are few things more upsetting in the moment, than returning to your car to find that you had inadvertently left it in a 2 hour zone or metered spot a little too long.

ParkingTicket-DML

As frustrating as tickets are for those of us parking for short periods downtown before returning to our wide open residential neighborhoods, for many central city residents they are practically a way of life. Dodging street sweeping days and finding parking within the small area your residential permit covers is a challenge for lower income resident who aren’t able to afford off-street parking. Moreover, these are among the folks least likely to attend expensive games or concerts at the arena. This leads to a reasonable worry: does more difficult street parking increase costs for the folks least able to afford it? (It’s worth noting that Councilman Hansen points out that this would violate state law.)

Rather than speculate, continuing my efforts to examine potential unintended consequences of the arena, let’s look at what the data suggests.

ParkingRevenueByMonthDML.png

Allaying these concerns, we find that year over year (YoY) revenue from citations has declined an average of almost 3-1/2 percent over the first third of 2017. This follows average declines of 2 percent in 2016. This suggests the City of Sacramento has not been padding its revenue and funding for the arena through increased parking enforcement; in fact, (to a small degree) the opposite has happened. Perhaps attention paid to the issue has made parkers more careful. Alternately, having more time of the week to enforce may have left the City’s 49 parking enforcement officers (the number has remained steady since at least 2013-14) spread thin. Regardless of the reason, citation revenue has been in decline the past two years.

ParkingRevenueByYearDML

Despite the small dip in citation revenue, overall parking “modernization” has proven fruitful for the City. Forecasting the last third of the months based on average YoY in 2017, we see revenue up over 15 percent from last year, which represented a 13 percent increase on 2015. This followed a dip in garage revenue (presumably) due to the closure and demolition of the mall and the parking structure beneath it. Over the last two years, garage revenues have nearly returned to pre-demolition levels, with the net increase in revenue driven by parking meters. In fact, the net increase over pre-arena parking levels exceeds required arena financing cash flow by 50 percent.

So perhaps you have read this far and are wondering, why the heck would he write an article that says everything is pretty much going as planned. That sure is boring. It is, but the publication of null results is vitally important. As Thomas Edison said:

“I never quit until I get what I’m after. Negative results are just what I’m after. They are just as valuable to me as positive results.”

Too often in research and journalism only the sexy outcomes that show surprising or upsetting outcomes get published. They make the news and drive the eyeballs but, frequently, misrepresent the overall truth.

In this case, the City seems to be doing a good job delivering the system it promised. It also did a good job in relatively promptly providing the data underlying this article. So with that, I will tip my proverbial hat, and thank the City for a job well done.

Who We Are: A City of Dreamers

A blue road sign that says Welcome to California in script, alongside a picture of a California Golden Poppy. Behind the sign is a highway, leading to mountains and a cloudy, but bright horizon.

I was born here in California. We were not wealthy, but my parents had adequate economic opportunities available to them to provide for our family, I had good schools available to me and the community was reasonably safe (although anyone complaining about crime today must have forgotten the early/mid 1990s). Today I have a very good job. My neighborhood has excellent schools and is the safest in the city (more on that later). I have no reason to go anywhere. I love my son more than anything in the world and I cannot imagine how I would feel if I were unable to provide a good life and good opportunities for him here in Sacramento.

I worked hard and made (mostly) good decisions along the way. I have faced and overcome some adversity. But most of my success can be attributed to having born to educated (white) parents in the greatest place in the world. I feel incredibly blessed.

Many have not been so lucky. Their situations were so dire, they made the choice to leave behind the only life they’ve ever known, to risk everything in hopes of giving their families a better life. All because of the luck of the draw of where and when they happened to be born. Some were forced to flee their homes because of violence and economic ruin driven by the drug cartels that thrive because of American demand and our failed War on Drugs. I cannot imagine what it is like to live that why. I cannot imagine facing the choice that Aaron Sorkin so perfectly described:

With the clothes on their backs, they came through a storm. And the ones that didn’t die want a better life. And they want it here. Talk about impressive. – President Bartlet

43 million American residents were born somewhere else, tackling either enormous bureaucratic challenges or a border with 20 thousand agents patrolling it. Impressive. About one-in-four (11 M) are undocumented. Most came as adults, some were brought by their parents as children. About one-in-ten (1.1 M) of the undocumented population were eligible for President Obama’s Deferred Action for Childhood Arrivals (DACA) status, allowing these Dreamers to live and work without fear of deportation, in two year increments. About four-in-five (790k) of the eligible Dreamers are currently enrolled, including 223 thousand in California and 8 thousand in Sacramento. (Author’s estimate: Local data has not been updated publicly since the first year of the program, but California’s statewide proportion has remained steady, so it seems likely that Sacramento’s share has as well. This estimate is based on that assumption.)

Our region is lucky to have them. Allowing Dreamers to work could be worth $200 billion to $400 billion nationally over the next ten years, which translates to $2 to 4 billion in Sacramento (Author’s estimate: Assuming a proportional share). In discussing the lower estimate, the conservative CATO Institute wrote that the estimate “is driven by the fact that the ‘Dreamers’ tend to do well in school and as a result do well in the job market after they complete their education.”

Of Sacramento’s 8,000 Dreamers, about 1,000 are currently enrolled and doing well at Sacramento State (A university known for advancing its students economic prospects). Those students will be allowed to continue to attend school and California, which will continue to charge them in-state tuition because that is simply the right thing to do. But without DACA they will no longer be allowed to work legally. Funding college these days is hard enough. Telling students they cannot work and earn the money they need to pay tuition is simply heartless.

Just as I cannot imagine having to make the choices these Dreamers’ parents had to make, I also cannot imagine the challenges these students must be facing or the fear of returning to the shadows or facing deportation. I have had too privileged of a life for that.

Even so, I hope to be able to help. I am asking friends, my fellow alumni and the Sacramento community to join me in making a contribution to Sacramento State’s Dreamer Resource Center. The Center provides a wide variety of legal, academic, personal and financial support to Dreamers at Sac State.

Please join me and tell these students that you have their back. Tell these students that all of the hard work they have put into succeeding in school and making it to college was not for nothing. Tell these students that you believe in their American Dream.

Any amount helps, $5, $20, $50, $100, $500, $1,000. Just $30 would cover tuition for the equivalent of one class session. Click here to make a tax-deductible donation.

Whazzuuuup with Budweiser’s Attack on Sacramento Brewing?

Ruhstaller AdIn July, the news broke that Golden Road had submitted plans to develop a new taproom in Midtown. Golden Road is a Los Angeles-based brewery known for mediocre beer and for recently being purchased by Anheuser-Busch InBev, the Belgo-Brazilian mega-conglomerate best known for producing an indistinguishable line of lagers, including Budweiser & Bud Light, Becks, Corona, Fosters, Labatt, Stella Artois and some of the biggest brewers from Argentina, Belgium Brazil, China, Colombia, Dominican Republic, the best of which are known for their flavorless, easy drinking demeanor. Those beers make a lot of people happy (and they help to finance amazing commercials). There is nothing wrong with that. But many of us prefer a more locally-flavored alternative and, perhaps more critically, brewing close to home offers substantial economic benefits.

Over the last two decades, the traditional mass-production brewers, or “Big Beer,” have been squeezed from all sides. With the takeoff of craft brewing and the increasing popularity of wine and spirits, Big Beer lost 1/3 of its market share.

BeverageMarketShare

Compiled by author from multiple sources,
primarily the Brewers Association and the Distilled Spirits Council

BourbonLineAt first Big Beer ignored craft brewers. Then they laughed at them (Upsetting some of their recently purchased “friends” in the process). Now, unable to beat them, AB InBev has turned to buying them up, beginning in 2011 with the purchase of Goose Island. That Chicago brewer produces of a range of quality products, including the legendary Bourbon County Brand barrel aged stout. While some saw the slippery slope we were headed down, many celebrated their ability to get Bourbon County nationwide, without long lines on Black Friday.

For nearly three years Goose Island remained the lone former-craft brewery in AB’s portfolio, however, in 2014 it became clear that AB thought this experiment had paid off. They seemed to agree with the adage, “Once you go craft, you never go back.” Over the next two years it would add six more former-craft breweries, including Golden Road, with several more added since. AB would selectively pick one growing player in major beer markets to backstop with the kind of marketing and distribution heft that only AB InBev can provide (sometimes with questionable legality). Some of the breweries, like Goose Island, Elysian and Wicked Weed were highly respected. Others, like Golden Road, Blue Point and Four Peaks appear to have been acquired more for their strategic place in the market. All have expanded significantly since their acquisition.

Meanwhile, brewing has been booming in the Sacramento region. From just a handful of breweries at the turn of the decade, Sacramento’s brewing scene has grown over 10x with about 70 breweries, including larger operations like Track 7 and Knee Deep and smaller, critically acclaimed breweries including Moonraker, Mraz, New Glory, New Helvetia and Device. With numerous neighborhoods that have yet to open their own brewery (Pocket Brewing, I’m looking for you), room for growth is plentiful.

The Midtown scene may be reaching saturation, though. The recent closure of Rubicon, Sacramento’s original craft brewery, speaks to this likelihood. In a saturated market, adding competition will only serve to undercut the existing businesses. When that competition has AB InBev’s marketing and distribution advantages behind it, the out-of-towner is ‘starting on third base’ without having to hit a triple.

Craft beer is a valuable industry. Responsible for over 400 thousand jobs nationally including over 50 thousand in California and perhaps five thousand in the Sacramento region (author’s estimate), breweries are more than simply a bar. Craft breweries are manufacturer, wholesaler and retailer in one. If we assume the menu price is a typical 4x markup that means every $6 beer of local craft brew is keeping an extra $1 in the community after accounting for state and federal taxes. That dollar ripples out through the local economy adding another 50 cents or so of economic output. If we extrapolate that to a 1,000 barrel micro-brewery (the average California craft brewery is 5,000 barrels), assuming 200 pints sold per barrel (accounting for spoilage, tasting and frequent ‘quality control’), sending our business to this purveyor of locally manufactured beers would add $300,000 to the economy, relative to a bar or taproom serving beverages produced out of the region. Multiply that by 70 and we are looking at $21 million in additional local economic output because our drinking dollars are being spent at those breweries instead of traditional bars or places like Golden Road where the brewing occurs elsewhere.

The reality is, when AB InBev’s tasting room comes in to Sacramento, it will be undercutting our own local manufacturers and causing our region to lose in a zero-sum game. As the National Beer Wholesaler Association describes it:

“Rearranging the deck chairs in your market … does not provide a real economic impact since the size of the total pie remains the same.”

I am not sure what the solution is, but it was unfortunate that Golden Road’s minimal footprint meant it was able to sail through the City’s permitting process with no discussion of the harm it would do to our economy.

So let’s start that discussion. If you would like to learn more or have thoughts on how we can protect our local industries, I encourage you to come by New Helvetia Brewing tonight (September 5th, 2017 at 6 pm) for a very special Wonk Wednesday, Tuesday edition. In honor of the California Craft Beer Summit this week in Sacramento, we will be raising a pint and discussing strategies to support the development and success of our local craft breweries. Also check out Cindy & Isaac’s discussion with Quinn Gardner of Sactown Union Brewery on Ransacked.

WonkWedsBrew