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Economy

Exxon Whines About Push To Cut Its Subsidies On Same Day It Announces $11 Billion First-Quarter Profit

Oil giant Exxon-Mobil today announced that it made almost $11 billion in profits through the first three months of this year, a nearly 70 percent increase in its first quarter profit from last year. Democrats in Congress have, for years, been trying to cut the nearly $4 billion in taxpayer subsidies that go to oil companies every year, and cited today’s profits as one more justification for removing this taxpayer-funded largesse.

“We have to take away the subsidies for these five major oil companies,” said Senate Majority Leader Harry Reid (D-NV). “There’s no need for these subsidies. The companies have broken records [with their] profits.” Exxon-Mobil’s vice president for public and government affairs Ken Cohen responded today by whining that cutting oil company subsidies amounts to a tax increase:

“Over the last week as earnings season has approached, the Democratic Party leadership again talked about removing what they call $4 billion in oil industry subsidies,” [ExxonMobil’s vice president for public and government affairs Ken] Cohen said. “But what they really mean is that they want to increase our taxes by taking away long-standing deductions for our industry while leaving these same deductions in place for other sectors of the economy.”

Exxon, of course, paid absolutely nothing into the Federal Treasury in 2009, while still receiving these subsidies. And the rest of Exxon’s Big Oil brethren, while not doing quite as well, all made billions off of the rising price of oil. In fact, the five biggest oil companies — Exxon, Shell, ConocoPhillips, Chevron, and BP — made a combined $32.7 billion in the last three months:

At the same time that sky-high oil prices are helping Big Oil make a killing, they are slowing an already sluggish economic recovery. Gross Domestic Product grew at a paltry 1.8 percent last quarter, and rising gas prices “have nearly neutralized the 2011 payroll tax cuts that were intended as a stimulus.”

Education

White House Lays Out A Strategy For Improving Latino Education As Minority Population Soars

For the past several years, education has topped the list of Latino voter priorities — often beating out even immigration, health care, and jobs. Enthusiasm for higher education has been much higher among Latinos compared to the general population. Yet, their hopes and expectations don’t yet match up with reality. While 94 percent of Latinos say they expect their own children to go to college, only 13 percent of Latinos have a college degree or higher.

Today, the White House released a report which sets forth a strategy to address that discrepancy. Many of the proposals are part of Obama’s general education plan: creating more “Promise Neighborhood” projects, turning around low-performing schools, supporting innovative teaching methods, reforming No Child Left Behind, and boosting the number of effective teachers in the classroom. However, the White House also sets forth proposals that directly address many of the obstacles that Latinos in particular face:

– Training and growing the number of effective Latino teachers in the classroom by providing special support to Minority-Serving Institutions and through the national TEACH Campaign which “aims to increase the number, quality and diversity of candidates seeking to become teachers.”

– Providing more support for Latinos enrolled in adult education programs to learn English and to improve their reading, writing and numeracy skills.

– Strengthening Hispanic-Serving Institutions by investing $1 billion in public and private nonprofit colleges and universities with a student body that is at least 25 percent Latino.

– Strengthening Pell Grants, creating more affordable loans, and simplifying the financial aid application process.

While there will undoubtedly be at least a handful of right-wingers who accuse the Obama administration of pandering to minorities, helping Latinos raise their educational achievement should be a national priority. New Census figures show that Latinos comprise over 16 percent of the population and are the fastest growing minority group.

Juan Sepulveda, director of the White House Initiative on Educational Excellence for Hispanic Americans, points out that the number of Latinos in the U.S. has “grown so large that the future of the U.S. is inextricably linked to the future of the Latino community.” The Miami Herald noted that “Latinos are the largest minority group in America’s public education system, numbering more than 12.4 million in Pre-K through high school…nearly 22 percent, or one in five, of all Pre-K through 12 students enrolled in America’s public schools is Latino.”

Paul Ryan Endorses Ending Oil Subsidies, Even Though He Voted For Them

ThinkProgress filed this report from Wisconsin.

Rep. Paul Ryan (R-WI) agreed to end subsidies to oil companies during a town hall in Waterford, Wisconsin, this morning, eliciting great applause from an overflow crowd in a very conservative section of his district. “We also want to get rid of corporate welfare,” Ryan insisted. “So we propose to repeal all that”:

Q: The subsidy for the oil companies that the federal government gives. They’ve gotta stop.

RYAN: Sure.

Q: End the oil company subsidies…

RYAN: I agree.

Q: …and you will gain a lot of that money in the red back.

Watch it:

But Ryan voted twice this year to actually extend subsidies to oil companies, once on a motion to recommit on a shorter-term continuing resolution and again when he supported an amendment to the initial House CR. The Ryan budget, meanwhile, doesn’t specifically target oil subsidies, but only generally promises to end “corporate welfare.”

Earlier this week, House Speaker John Boehner (R-OH) also indirectly endorsed ending subsidies to the oil industry, before walking back his support.

Education

Texas Legislature To Consider Extreme Education Isolationism

Our guest blogger is Theodora Chang, Education Policy Analyst at the Center for American Progress Action Fund.

Taking its renegade reputation to a whole new level, the Texas legislature is expected to consider House Bill 2923, which would amend the state education code to explicitly prohibit the adoption of any curriculum standards that are shared by — well, anyone but Texas.

Introduced by State Rep. Dan Huberty, who campaigned on eliminating the state’s standardized tests altogether, the bill promotes extreme education isolationism:

“The State Board of Education…shall require each district to provide instruction in the essential knowledge and skills at appropriate grade levels. A district may not meet this requirement through the use of national curriculum standards…no school district or open enrollment charter school may be required to offer any aspect of a national curriculum…[and] may not adopt or develop a criterion-referenced assessment instrument based on national curriculum standards.

It further defines “national curriculum standards,” as including “any curriculum standards endorsed, approved, sanctioned or promoted by the United States Department of Education, the National Governors Association, or the Council of Chief State School Officers.”

On one hand, the bill seems to reflect some cognitive dissonance on the part of state legislators. In spite of repeated references to the idea that “local control is the key to the success of schools and districts,” Texas lawmakers are now putting forth legislation that would strip away local control over teaching and learning.

On a deeper level, HB 2923 is a thinly veiled attempt to keep Texas far away from the Common Core State Standards, a state-driven initiative to set common academic expectations. State leaders, concerned about high dropout rates and global economic competitiveness, are collaboratively developing grade-level goals for student learning that states expect to adopt and implement by 2014. Texas has not joined the more than 40 states that have adopted the Common Core Standards.

Under the Elementary and Secondary Education Act, states are responsible for getting all students to the “proficient” level, but are also allowed to adopt their own definitions of “proficiency.” Texas exemplifies this disconnect — under the state’s definition of proficiency, 84 percent of Texas 4th graders were proficient in reading in 2009, but only 28 percent of those same 4th graders scored proficient in reading on the National Assessment of Educational Progress.

Efforts like the Common Core State Standards Initiative may be challenging to implement, but they are important because they push educators to help their students become more college-and-career-ready. Instead of further closing itself off, Texas should look to provide the best possible education for its students by considering effective practices beyond its own backyard.

House Republicans Receive Sought-After Delay In Derivatives Reform, Still Not Satisfied

The Commodity Futures Trading Commission — which oversees the nation’s commodities markets — announced yesterday that it is going to allow for an additional month of comments on the rules governing derivatives that it is implementing under the Dodd-Frank financial reform law. According to Dodd-Frank, the CFTC is supposed to have finished implementing a new regulation regime for derivatives by July, but CFTC Chairman Gary Gensler has already said that the deadline will be missed.

House Republicans been pushing for the CFTC to delay derivatives reform for months, claiming that the rules were being implemented without enough input from businesses and the financial sector. So has this delay assuaged their concern? As the Wall Street Journal noted, it certainly hasn’t:

Republican Rep. Frank Lucas of Oklahoma, chairman of the House Agriculture Committee, which oversees the CFTC, said the agency’s decision to extend the comment period wasn’t enough to address his concerns.

To expect that market participants can comment on dozens of complex regulations and their cumulative impact on the marketplace meaningfully in 30 days is consistent with the process we’ve seen at the CFTC, a bare minimum and check-the-box approach. We owe more diligence to the economy,” he said in a statement.

Derivatives, remember, were the financial instruments that brought down, among others, the insurance giant AIG (necessitating a government rescue). The Financial Crisis Inquiry Commission reported that derivatives were “at the center of the storm” during the financial crisis.

Despite the role these instruments (and the huge financial firms that used them) played in bringing the economy to the brink, Republicans have been attempting to slow-walk derivatives reform for months, both legislatively and by denying the CFTC funding to implement Dodd-Frank. House Republicans earlier this month introduced a bill to delay derivatives reform for 18 months.

But as CFTC Commissioner Bart Chilton said yesterday, “dangers” still exist in the derivatives market. “There are dangers out there in the OTC world that we need to get a handle on. There are some that want to run out the clock. Many of these people are people who opposed [Dodd-Frank] to begin with want to run out the clock until the next election. Maybe consumers won’t be as hot on reform then,” Chilton said.

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