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Politics

After Rejecting Stimulus Funds For Education, Palin And Sanford Now Opt-Out Of National Standards

George Allen yells at a McCain Palin rally Yesterday, Education Week reported that 46 states have agreed to join forces to create common academic standards in math and English language arts through an effort led by the National Governors Association and the Council of Chief State School Officers. A primary goal of the initiative is to “eliminate the patchwork of academic standards across the country that result in students in the same grades learning different things in different states.” In Mississippi, for instance, 90 percent of fourth-graders passed the state reading exam in 2007, according to U.S. Department of Education data. But only 51 percent had at least “basic” or “partial mastery” on the test known as the Nation’s Report Card.

Republican Governors Sarah Palin of Alaska and Mark Sanford of South Carolina – the same governors who postured to reject millions of education stimulus funds – are among the four governors refusing to join the initiative. In a press release Palin said:

Alaska’s decision not to participate until after we monitor this is based on our desire to spend our time and public resources to improve instruction in the classroom and to form productive relationships between schools and the communities they serve.

However, Alaska state education commissioner Larry LeDoux noted that merely signing up for the initiative would not drain any state resources. The Washington Post reported that the sign-up phase for the initiative is a preliminary step and that later “each state would decide individually whether to adopt” the proposal recommended by the organizers.

South Carolina cannot officially join the initiative because Sanford refused to co-sign South Carolina’s application with State Superintendent of Education Jim Rex. Sanford’s spokesman said he opposed signing the application because the “governor does not have a role in implementing education policy.” However, Rex is a strong proponent of the initiative and by refusing to sign the letter, Sanford is essentially setting education policy. Sanford’s obstruction most likely stems from Rex’s outspoken criticism of Sanford’s decision to block $700 million in stimulus money for education and public safety.

According to a report by the Center for American Progress and the U.S. Chamber of Commerce on educational effectiveness, both South Carolina and Alaska received a ‘D’ in overall academic achievement:

Notably, this initiative is a voluntary effort that promotes ideas from the states – something conservatives claim to support – rather than a mandate decided by an agency in Washington, DC.

Climate Progress

Morning Joe: The Time To Build A Green Economy Is Now

On MSNBC’s Morning Joe today, co-hosts Joe Scarborough and Mika Brzezinski discussed the Waxman-Markey American Clean Energy and Security Act (H.R. 2454) with guests Tom Brokaw and Phaedra Ellis-Lamkins of Green for All. The table agreed that the passage of clean energy jobs legislation could be the one “silver lining” of the current economic devastation, allowing the United States to rebuild its economy to be greener, stronger, and more competitive in the 21st century. Scarborough asked the key question:

We’re really at a reset right now. The opportunities that we have, it seems like America is restructuring its entire economy. So why don’t we restructure it in a way that prepares us for the next generation?

Watch it:

Ellis-Lamkins asked, “Will we be a country that imports its batteries from China and oil from the Middle East, or will we be a country that creates its own energy?” Brokaw related how both Henry Ford and Lee Iacocca missed the boat in the 1970s on energy efficiency and safety for automotives, stuck in the smug complacency of past success. “This is a generational thing,” Donny Deutsch remarked. “Kids today, it’s in their DNA. And that’s what’s going to save us.”

Scarborough concluded:

I can’t state this any more clearly. This is our best chance economically to reengage and once again be leaders. If we take the lead in the green economy, we’ll be economically in good shape.

Economy

Highway Trust Fund Going Broke…Again

roadconstruction2Just like last year, it seems that the federal Highway Trust Fund is going broke:

The federal Highway Trust Fund will run out of cash this summer, marking the second year in a row that gasoline tax revenues have failed to meet prior projections and federal spending commitments. Congress will need to add between $5 billion and $7 billion to keep the trust fund solvent for now, Sen. Barbara Boxer , D-Calif., announced Tuesday.

As Reuters noted, “rising gasoline prices, along with more Americans driving fuel-efficient cars, have pushed down gas purchases, and with them, gas tax collections.” And since the Highway Trust Fund is funded by gas tax collections, it’s now in a state of perpetual shortfalls.

This then, would seem like an opportune time to examine what purpose the fund is going to serve going forward and where its money is going to come from, particularly because its spending guidelines need to be reauthorized by this fall.

Currently, 81 percent of the fund’s money is dedicated to highways, while 19 goes toward mass transit. Sens. John Rockefeller (D-WV) and Frank Lautenberg (D-NJ) have submitted legislation stipulating that the next incarnation of the spending plan aim to “reduce per capita motor vehicle miles traveled on an annual basis, reduce national surface transportation-generated carbon dioxide levels by 40 percent by 2030, and increase the proportion of national freight provided by means other than trucks by 10 percent by 2020,” which would likely mean shuffling this ratio, with more emphasis on transit.

This has been met with stiff opposition from lobbyists (Congressional Quarterly calls them “highway groups“), who say that they won’t support any effort to raise the gas tax to cover the fund’s deficit unless the spending ratios stay as they are. But just like during the stimulus debate, if we’re trying to move toward a green economy, giving highways a much higher priority than mass transit seems misguided.

In any case, in light of new CAFE standards and a growing emphasis on fuel efficient vehicles, raising the gas tax is not a permanent fix for the fund’s woes. Two congressionally mandated commissions have recommended that “Congress find a new revenue source to pay for highway and transit programs,” and “their top recommendation was to tax motorists based on how many miles they drive.”

Yglesias

Israel’s Changing Democraphics

This is one of these things that people are sort of hazily aware of, but the real numbers are quite stark:

090602_fig1-israel_prmry-students

In 1960, the Israeli Central Statistical Bureau (ICSB) reported that just 15 percent of students in the Israeli primary-school system were either Israeli Arabs or haredim. Now, about 46 percent are. Around 2020, the majority of primary-school students will likely be composed of children from those two groups, each segregated into its own segment of the school system (Fig. 1). And though, at current rates, it will be well beyond the time horizon of our current projections before these two politically disparate groups “dominate” the Israeli electorate (Fig. 2), by 2030 they are likely to be very close to composing half of all 18- and 19-year olds, the youngest tier of the electorate and the age at which Israelis are first eligible for conscription (Fig. 3a & b) — a dramatic shift in Israeli ethnic and religious composition.

Such a development is completely contrary to the demographic hopes of Israel’s secular Zionist founders, which hinged on a healthy pace of secular-Jewish childbearing and steady streams of Jewish immigrants. For the long run, the founders trusted in the powers of prosperity and modernity to turn Israel’s kaleidoscopic assortment of Jewish and non-Jewish ethnic communities into a modern multi-ethnic population with European-like aspirations for women and European-like levels of fertility (a measure demographers use to estimate the trend in lifetime childbirths per woman).

The piece argues that this rise in the Arab and Haredi population is also fueling the rise of Avigdor Lieberman as a polarizing alternative to Arabs and the ultra-Orthodox.

Politics

Manuel Miranda: Latinos are ‘not like African-Americans. We think just like everybody else.’

Manuel Miranda, who was busted for hacking into the files of Senate Democrats while he served as an aide to former Senate Majority Leader Bill Frist (R-TN), is leading the conservative charge against Judge Sonia Sotomayor’s nomination to the Supreme Court. At a Heritage Foundation lunch for conservative bloggers today, Miranda discussed how conservatives could attack Sotomayor’s qualifications without alienating the Latino community. Miranda, who is Latino himself, argued that Latinos had concerns similar to those of “everyone else,” but then appeared to suggest that African-Americans somehow think differently from other people. Latinos are “not like African-Americans. We think just like everybody else”:

Hispanic polls, Hispanic surveys, indicate that Hispanics think just like everyone else. We’re not like African-Americans. We think just like everybody else. When I was on the leader’s staff, someone called me once and asked me: ‘What’s Senator Frist’s Hispanic agenda?’ I said, ‘low taxes, better education, more jobs … what are you talking about?’ And that’s how Hispanics are. This is an opportunity to educate them on all of our issues and they will resonate in the way that they resonate with everyone else.

Adam Serwer remarks, “I’m interested to hear Miranda’s explanation of the cognitive differences between black people and the rest of America.”

Yglesias

The Biggest Debtload Since Something Comparably Debt-Inducing Happened

Nial Ferguson’s indignant observation that “a deficit this size has not been seen in the US since the second world war” is an interesting exercise in rhetoric. Conveniently, it’s completely accurate! But what’s missing here is that the deficit projected for next year is way smaller than WWII deficits:

obamabudget2

To say something like “Obama is going to run a deficit slightly bigger than what we saw in the Reagan years” is a lot less terrifying than “a deficit this size has not been seen in the US since the second world war.” But we’re looking at a debt level that’s much more comparable to what was wracked up in the 1980s and early 90s than to what we saw in the late-1940s.

What’s more, by definition some level of deficits has to be “the biggest deficit since World War II.” What we have right now is the most several global downturn since World War II. That seems to me like a perfectly reasonable candidate for biggest deficit since World War II. What would be a better time?

Politics

George Allen officially launches his ‘industry-backed anti-regulatory group.’

George Allen yells at a McCain Palin rallyEarlier today, former Republican senator George Allen officially launched his latest venture, “an industry-backed anti-regulatory group” called American Energy Freedom Center. In a webcast today, Allen claimed that he wants to “tell people the truthful story about America’s energy potential that has never been told before.” Allen’s new organization is a partner group to the Institute for Energy Research, which is partially funded by Exxon Mobil and run by Robert Bradley Jr., who worked at Enron. In 2003, Bradley wrote the book “Climate Alarmism Reconsidered,” which argued that “that climate alarmism and its corollary, policy activism, are unwarranted and counterproductive” in the face of global climate change.

Health

Options For Modifying The Exclusion Of Employer-Provided Health Coverage

The AP is reporting that during his meeting with the President, Sen. Max Baucus (D-MT) will make the case for taxing employer-sponsored health care benefits as a way to finance reform:

Baucus says the tax-free benefit packages Americans now enjoy are a big factor in the high costs of the country’s health care system, because they provide workers free or low-cost access to too many health care services.

Indeed, the exclusion of employer-based health insurance from income or payroll taxes has contributed to rising health care costs. Since compensating an employee with cash is taxed, but compensating with health care benefits is not, the employer has an incentive to shift compensation toward health insurance (or another kind of benefit). Under this arrangement employees are desensitized to the true cost of health care coverage and higher-income Americans — those who need the least help paying for health coverage — benefit most. Workers in a lower tax bracket “receive a smaller tax benefit from the exclusion.” From the Center on Budget and Policy Priorities’ new report:

esiunfair

Democrats don’t want to get rid of the exclusion all together — as Sen. John McCain had proposed during the campaign — but some are considering limiting or capping the subsidy to raise some of the revenue needed to pay for health care reform and make the tax system more progressive. Below are some of the options currently under consideration:

- Limit based on the actuarial value of the plan: The employee will have to pay taxes for health care plans that exceed the actuarial value (i.e. the entire value of the plan) of a certain benchmark plan (the Senate Finance Committee suggests that initially, the standard option in the Federal Employee Health Benefit Program could be used as the benchmark). The taxes would only be paid on the difference, not the entire value of the expensive plan.

- Limit based on the income of the insured: Employees who earn a gross-adjusted income in excess of a certain amount (i.e. $200,000) would no longer be able to exclude their health care benefits from income and payroll taxes.

- Limit based on both the value of the plan and the income of the insured: An employee who earns in excess of $200,000 and has a plan that is above the value of a standard package would have to pay taxes on the difference of the value of the expensive plan and the benchmark plan.

Limiting the tax exclusion rather than abandoning it entirely (as McCain tried to do) has the benefit of preserving the employer-based system. Employers, after all, are fairly good at pooling risk — they have a good mix of healthy and sick people — and most employees like the coverage they currently receive. Maintaining the employer’s role also preserves the employer contribution to health care benefits, protecting the government or the individual from suddenly paying far more for coverage.

Most of the media reports have characterized modifying the tax treatment of employer-provided coverage as politically problematic for the administration, which harshly criticized McCain for taxing the full value of employer-sponsored benefits. But while McCain proposed eliminating the exclusion entirely, and thus blowing-up the employer market, Obama is proposing changes at the margin. McCain would have ended the employer’s role; Democrats are considering improving it.

Yglesias

The Demographics of the Uninsured

You sometimes hear talk suggesting that the bulk of the uninsured are just young and overconfident people who don’t really want to pay for health insurance. Today’s new report on health care from the Council of Economic Advisers shows that while there are certainly a lot of uninsured young people, this is hardly the whole story:

uninsuredage

It’s also worth emphasizing, as this chart illustrates, that for all the scare stories you hear about “socialized medicine” or the government “coming between you and your doctor” it’s not a coincidence that senior citizens are almost never uninsured. There’s a government program which does that. And of course senior citizens have the most health care needs. If a universal system is good enough for grandma, it’s not clear why we’d view it as terrifying for the rest of us.

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