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Justice

Louisiana Top Court Affirms School Voucher Program Is Unconstitutional

The Louisiana Supreme Court has affirmed a lower court judgment that the state’s school voucher program is unconstitutional because of program funding that diverts money for public schools into the private voucher system. The Times-Picayune reports:

Act 2, part of Gov. Bobby Jindal’s 2012 package of education reforms, diverts money from each student’s per-pupil allocation to cover the cost of private or parochial school tuition. The act authorizes both the Louisiana Scholarship Program and the new Course Choice program.

The vote was 6-1, with Justice Greg Guidry dissenting. The plaintiffs in the case include the Louisiana Association of Educators, the Louisiana Federation of Teachers and the Louisiana School Boards Association.

The ruling states that the per-pupil allocation, called the minimum foundation program or MFP, must go to public schools. Justice John Weimer writes, “The state funds approved through the unique MFP process cannot be diverted to nonpublic schools or other nonpublic course providers according to the clear, specific and unambiguous language of the constitution.”

Furthermore, the court found that the instrument Jindal used to pass the MFP for the 2012-13 school year violated proper procedure and was therefore void from the start.

Instead of passing a law, the Legislature appropriated the MFP funds by passing a resolution, SCR 99. However, that resolution “was intended to have the effect of law,” according to the court, and it was filed after the deadline for introducing new bills, rendering it invalid. This part of the Supreme Court decision overturns the judgment made in Baton Rouge district court in November.

Within hours of the decision, Jindal responded with a statement saying he would find another way to fund a voucher program “through the budget,” although it is not clear how he will do so without violating the holding, unless he passes a voucher law.

While this ruling made clear that it is not weighing in on the merits of the program, a federal district court recently suspended the voucher program in one district over concerns that it was interfering with desegregation. Several recent studies have found that voucher programs are an ineffective way to improve student performance, draining funds and diversity from public programs, without improving the performance of even those attending the voucher schools.

Health

West Virginia Accepts Medicaid Expansion As Time Runs Out For Other Highly-Uninsured States

Gov. Earl Ray Tomblin (D-WV) (Credit: Raw Story)

West Virginia Gov. Earl Ray Tomblin (D) announced in a press conference on Thursday that his state would take part in Obamacare’s optional Medicaid expansion, calling the decision “the best choice for West Virginia.” But many states still remain up in the air with their decisions, either because they haven’t decided yet or because state executives and legislators are at odds with each other on the issue — and time is running out.

Speaking at St. Francis hospital and flanked by nurses, doctors, and hospital administrators, Tomblin laid out the medical and financial case for expanding Medicaid eligibility — a conclusion that he reached after commissioning a study to examine such a move’s effects on West Virginia. “Expansion will allow us to provide insurance coverage to 91,500 West Virginians,” said Tomblin.

Indeed, West Virginia has much to gain and very little to lose by embracing the Obamacare provision. The state has abysmal health demographics, and over half of West Virginia’s uninsured population lives below 138 percent of the Federal Poverty Level (FPL). These poor and vulnerable populations would gain access to health coverage under the Medicaid expansion, leading the Kaiser Family Foundation to conclude that expansion will reduce the number of uninsured West Virginians by a staggering 67 percent.

Those numbers likely led Tomblin to his decision. But the moderate Democrat has an advantage that governors of other conservative — and highly uninsured — states don’t: the almost assured support of his legislature. Democrats hold a supermajority in the state Senate and an eight seat edge in the House of Delegates, and both of West Virginia’s U.S. senators also support expanding Medicaid, making intraparty barriers unlikely.

The same cannot be said of Republican Govs. Jan Brewer (AZ) and Rick Scott (FL), who have been lobbying for Medicaid expansion after intense pressure from hospital associations and advocates for the poor. Their Republican-controlled state legislatures have been bending over backwards to stop it from happening. Although there is no hard deadline for expanding Medicaid under Obamacare, many of these states’ legislative sessions are quickly coming to an end — meaning that if no agreement is reached soon, they won’t receive the additional federal funds and won’t be able to extend coverage to low-income residents for at least the first full year of Obamacare implementation.

Texas and Louisiana face similar issues. Although some GOP lawmakers in those states are contemplating Arkansas Gov. Mike Beebe’s (D) alternative “private option” — which would take federal money and use it to help an expanded Medicaid pool buy private insurance — those efforts also remain in limbo, as former and current Republican presidential aspirants Govs. Rick Perry (TX) and Bobby Jindal (LA) have oscillated between flat-out rejecting expansion and being coy about their intentions.

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Economy

Jindal Heeds Public Outcry, Abandons Plan To Cut Taxes On The Rich And Raise Them On The Poor

Louisiana Gov. Bobby Jindal (R) is dropping his deeply unpopular tax plan after several weeks of outcry from advocates for the poor and business groups alike. The proposal would have abolished income and corporate taxes in exchange for a higher sales tax, effectively hitting the poor with higher taxes while giving the wealthiest Louisiana residents enormous tax cuts.

In a speech to open the 2013 legislative session, Jindal announced he would give in to the pushback:

I realize that some of you think I haven’t been listening. But you’ll be surprised to learn I have been. And here is what I’ve heard from you and from the people of Louisiana — yes, we do want to get rid of the income tax, but Governor, you’re moving too fast and we aren’t sure that your plan is the best way to do it.

So I’ve thought about that. And it certainly wasn’t the reaction I was hoping to hear. And now I’m going to give you my response and it’s not the response people are accustomed to hearing from politicians. Here is my response: Ok, I hear you. So I am going to park my tax plan.

Now, to be clear, I still like my plan. but I recognize success requires give and take. And I recognize that in this instance, I need to be the one who gives so that we can have the chance to achieve success. But I’m not going to pout, I’m not going to take my ball and go home.

Jindal’s plan would have raised taxes on an estimated 80 percent of the state’s residents while cutting taxes by more than $25,000 for the richest 1 percent. The poorest Louisianans already pay a higher share of their incomes in taxes than the wealthiest 1 percent, and Jindal’s regressive tax would have added an average of $395 of taxes on the poorest 20 percent.

While acknowledging the vehement opposition to his plan, Jindal still called for the abolishment of the income tax, without specifying how he would replace it without shifting the same repercussions onto low-income Louisianans.

The governor’s approval rating plummeted in the past few months. Two-thirds of Louisianans explicitly opposed his tax plan.

Though Jindal has conceded defeat, similar plans to replace income taxes with higher sales taxes are being considered in Kansas, Nebraska, and North Carolina.

Health

Three Republican Governors Who Were For Privatizing Medicaid Before They Were Against It

Last Friday, the U.S. Department of Health and Human Services (HHS) announced that it would allow states to pursue waivers letting them privatize their Medicaid expansions under Obamacare — an idea that took root with a deal worked out by Arkansas Gov. Mike Beebe (D) and the Obama HHS last month. Commentators and policy-makers heralded it as a “game-changer” for the reform law, as it could influence red states — many of which have high poverty levels and massive uninsurance rates — to extend coverage to poor people and help facilitate a major Obamacare provision.

But as Medicaid policy expert and George Washington University professor Sarah Rosenbaum smartly pointed out to the Washington Post’s Sarah Kliff in March, using federal dollars to put Medicaid-eligible populations into privately-contracted plans isn’t a novel concept at all — to the contrary, states have actually been doing it for decades through their increasing use of Medicaid managed care (MMC) arrangements. These arrangements contract beneficiaries’ care out to private insurers and providers, and a full “two-thirds of Medicaid enrollees now receive most or all of their benefits in managed care.”

Republicans have historically been strong proponents of MMC, touting its potential to cut costs while protecting poor Americans’ benefits. But with HHS’s new offer to institute a wide-scale version of this program now on the table, several notable Republicans are balking at the idea — including some who have pushed for similar measures themselves in the recent past:

1. TEXAS GOV. RICK PERRY. The 2012 presidential aspirant has been on an anti-Medicaid bender of sorts lately, declaring that “Texas will not be held hostage by the Obama administration’s attempt to force us into the fool’s errand of adding more than a million Texans to a broken system.” Yet, during his presidential run in late 2011, Perry struck a massive deal with federal officials allowing him to move close to a million Medicaid beneficiaries into managed care. Perry heralded the move in a press release, saying, “By approving Texas’ Healthcare Transformation and Quality Improvement Program Waiver, state and local officials can provide more efficient and effective care, and implement locally-tailored health solutions.” Apparently, Perry doesn’t view the Obama Administration’s offer on privatized Medicaid to be a similar opportunity for implementing “locally-tailored” solutions.

2. LOUISIANA GOV. BOBBY JINDAL. One of Obamacare’s most ardent critics, Jindal has steadfastly refused to expand Medicaid in his low-income state, saying that “Medicaid still operates under a 1960s model of medicine with inflexible, one-size-fits-all benefits and little consumer engagement and responsibility.” So far, he has stuck by that decision despite the urging of local lawmakers and his own state’s hospital chains. But back in 2011, Jindal aggressively — and successfully — pushed through an expansion of Louisiana’s MMC program, shifting 900,000 Medicaid and CHIP beneficiaries onto private, managed care. The measure was actually Jindal’s number one health care-related priority for 2012, and his administration publicly sold it “as a way to save taxpayer money and provide better care through coordination among doctors, hospitals and other medical professionals.”

3. MISSISSIPPI GOV. PHIL BRYANT. In an interview with Kaiser Health News, the Mississippi governor said, “I would rather pay extra to Blue Cross [to help cover uncompensated costs for the uninsured], rather than have to raise taxes to pay for additional Medicaid recipients” — a tacit endorsement of a managed care scheme. In fact, in 2012, Bryant signed a bill allowing Mississippi’s Medicaid division to increase the proportion of beneficiaries who could be placed onto managed care programs from 15 percent to 45 percent of the aggregate pool. Bryant has attributed his opposition to Medicaid expansion to his view that the program disincentivizes people “to find a better job, or to go back to school, or to get [into] a workforce training program.”

Economy

Two-Thirds Of Louisianans Oppose Gov. Jindal’s Plan To Cut Taxes For The Rich, Raise Them On The Poor

Louisiana Gov. Bobby Jindal (R) is among the Republican governors pushing an overhaul of his state’s tax code that would abolish the state income tax and replace it instead with increased sales taxes. Such plans are inherently regressive, and Jindal’s is no exception: one analysis found that it would raise taxes on 80 percent of the state’s residents while giving large tax cuts to the richest.

Perhaps its no surprise, then, that a recent poll from Southern Media Opinion & Research found that Jindal’s plan is “particularly unpopular” with Louisianans:

Gov. Jindal’s proposed tax reform plan was particularly unpopular. Sixty three percent opposed the plan to abolish personal and corporate income taxes and raise state sales taxes, while only 27 percent supported it.

Louisiana’s tax system is already regressive, and Jindal’s plan would raise taxes by an average of $395 on the poorest 20 percent of the state’s residents; the richest 1 percent, meanwhile, would see a tax cut totaling more than $25,000. And while Jindal is pushing the plan as a way to boost the state’s economy, evidence suggests the plan wouldn’t do much to help. The Center for Budget and Policy Priorities examined states that cut taxes in the mid-1990s and found that their resulting economic and job growth was slower during the next economic cycle than it was in states that did not cut taxes.

Health

Former Louisiana Health Secretaries To Bobby Jindal: It’s Time To Expand Medicaid

Two former Louisiana state Department of Health and Hospitals (DHH) secretaries have a message for Gov. Bobby Jindal (R): accept federal funding for taking part in Obamacare’s Medicaid expansion, or see taxpayer money go to funding other states’ expansions while low-income Louisianans suffer.

Fred Cerise and David Hood, the latter of whom is a Republican who actually succeeded Jindal — a former DHH head himself — after Jindal left to become president of the University of Louisiana public schools system in 1998, urged the governor to join the growing ranks of Republican state officials who have embraced Medicaid expansion in a Baton Rouge Advocate newspaper ad. The advertisement states, “Medicaid expansion offers a path to regular access to health care for working adults.”

The ad goes on to note that forgoing the expansion won’t just deprive low-income Louisiana residents of crucial health coverage, but is fiscally irresponsible, too: “If Louisiana refuses to participate, our share of the money that pays for this program will be used to support the Medicaid expansion in other states and our low-income residents will continue to lack access to care.” Multiple studies, including a comprehensive Kaiser Family Foundation analysis, have shown that states expanding Medicaid will receive massive federal funding for very little state input.

Jindal has a decidedly poor record when it comes to safety net health care entitlements, instituting massive cuts to state programs that assist vulnerable groups such as poor first-time moms and low-income HIV patients. Jindal has also been a staunch Obamacare critic and has so far explicitly ruled out expanding Medicaid — however, there have been recent reports that he and other skeptical GOP state leaders might be open to a modified expansion along the lines of the unique deal struck between Arkansas Gov. Mike Beebe (D) and the Obama Administration.

Advocates for the poor and hospital associations have been pressing Republican leaders to accept unusually generous federal funding to expand Medicaid, warning officials that providers might buckle under the weight of uncompensated care costs without a larger pool of insured low-income Americans who can actually afford to pay their medical bills. Expanding Medicaid faces an uphill battle even in states where GOP governors have embraced it, as they must still convince skeptical lawmakers in their own party to go along with the plan.

Economy

Louisiana Gov. Introduces Plan That Would Cut Taxes For The Rich, Raise Them On The Poor

Louisiana Gov. Bobby Jindal (R) introduced a plan today that would axe the state’s corporate and personal income taxes, replacing them instead with an increase in the sales tax. Jindal had promised the total elimination of income taxes during his State of the State address in January, and despite studies showing that it such a change would directly benefit the rich at the expense of the poor, he has followed through on the plan.

Jindal said his tax reform would be revenue neutral, and the sales tax would be increased to 5.88 percent. Louisianans would still pay their local sales taxes as well, meaning some residents would face double-digit sales tax rates after Jindal’s reform, the New Orleans Times-Picayune reports:

The planned increase in the sales tax would raise the current rate by about 47 percent and would come on top of local sales taxes. Residents in New Orleans, for example, would pay a combined rate of about 11 percent under the plan.

Louisiana already has one of the highest combined average state and local sales tax rate in the country and the increase would put the state at the top of that list, according to information from The Tax Foundation.

The poorest Louisianans already pay more of their income in taxes than the richest, according to a study from the Institute on Taxation and Economic Policy that shows the bottom 20 percent of the state’s residents pay 10.6 percent of their income in taxes compared to just 4.6 percent for the top 1 percent of residents. Jindal’s plan would only skew the tax code further against the poor and middle class, since it would grant tax cuts to the rich while raising taxes on 80 percent of the state’s residents, according to ITEP.

Jindal said today that he would offset the increases some residents would face by providing rebates, but when ITEP conducted its preliminary study of his plan in January, it found that “any low income tax relief will likely be insufficient to offset the impact of the large sales tax hike necessary to make this tax swap revenue neutral.” Jindal isn’t the only Republican governor pushing such a plan. Republican governors in Nebraska and Kansas and the state legislature in North Carolina are also considering replacing income taxes with increased sales taxes.

Economy

CNN Host Schools Bobby Jindal For Spouting ‘Misleading’ Economic ‘Nonsense’

CNN business correspondent Ali Velshi slammed Gov. Bobby Jindal (R-LA) for likening the federal budget to family spending and suggesting that the Obama administration should not spend more than the government takes in.

“Every family has to balance their budget, isn’t allowed to spend more than they need, every business is more efficient, tighten their belt. The reality is it can be done,” Jindal said in remarks outside of the White House on Monday, following a meeting between the National Governor’s Association and President Obama. He added that the administration can implement the automatic across-the-borad sequestration cuts that are likely to go into effect on March 1 “without jeopardizing the economy” or “critical services” by focusing on “wasteful spending.”

Velshi rejected Jindal’s comparison as “misleading” “nonsense” and pointed out that businesses and families routinely borrow money to invest in their futures, reasoning that an investment made today in college education or a new equipment can lead to greater returns down the road:

VELSHI: It’s 3% of a small part of the federal budget which makes it a very big part of some major agencies. It’s misleading stuff Bobby Jindal is saying, number one. Number two when he says families understand they have to live within their budget. I don’t know a lot of families who buy a house with cash. Buying a house on a mortgage, is that living within your budget or not living within your budget? You would have to be 80 years old to be able to buy a house with cash. We have an understanding in our society, it may be flawed, that we borrow money based on our future earnings potential. All people do that, companies do that and governments do that. There’s a point at which you can say, we’ve gone too far with that or we’re too much of a risk of not paying back so we’ll end up paying a higher interest rate. When you borrow too much money, your personal interest rate goes up, credit cards go up. But to suggest within your means and balanced budget nonsense is just misleading. That is not how families live. It’s not how businesses conduct themselves. It is certainly not since the history of time the way governments run themselves. Bobby Jindal is a smart guy. He runs a state. He needs to not talk like this and it’s become common to hear this stuff coming out in these press conferences.

Watch it:

The federal economy is fundamentally different from household budgets and economic data and history suggest that the government should be spending more, not less given the current economic circumstances. After all, overall government spending has plateaued under Obama after rising sharply under George W. Bush and the resulting fiscal contraction has resulted in a lower recovery.

Health

Top Republican: Obama Should Avoid Looming Budget Cuts By Delaying Health Care To Millions

A top Republican is suggesting that President Obama delay health care services to millions of middle and lower-income Americans to offset the automatic across-the-board budget cuts that will go into effect on March 1 if Congress does not reach a spending deal.

Appearing on Meet The Press on Sunday, Louisiana Gov. Bobby Jindal (R-LA) advised Obama to put off implementing the Affordable Care Act’s health care exchanges that are due to go online in 2014 and the expansion of the Medicaid program to offset the looming sequester cuts:

JINDAL: Just delay the Medicaid expansion, delay the health care exchanges so they can work with states on waivers, on flexibility. You can save tens of thousands of dollars there and you’re not even cutting a program that’s started yet — just delaying.

Delaying implementation of these key coverage expansion provisions would throw the law into chaos and deny health services to millions of Americans, many of whom are at or just above the federal poverty line and are struggling with medical bills. 771,600 adults and 124,200 children currently go without health care coverage in Jindal’s home state of Louisiana, for instance. The governor has declined to move forward with a state-run exchange for consumers to buy insurance, leaving its operation to the Department of Health and Human Services, and opted out of the Medicaid expansion under the law.

Defunding the Affordable Care Act has become a popular sequester offset on the right. Last week, Sen. Lindsey Graham (R-SC) said the government should protect the Defense Department from automatic spending cuts by slashing $1.2 trillion from the law. “Well, all I can say is the Commander-in-Chief thought — came up with the idea of sequestration, destroying the military and putting a lot of good programs at risk. It is my belief — take Obamacare and put it on the table,” Graham said.

LGBT

Bobby Jindal: Republicans Can Continue Discriminating Against Gays And Still Win Elections

Gov. Bobby Jindal (R-LA) — a possible Republican candidate for president in 2016 — rejected former Utah Gov. Jon Huntsman’s argument that conservatives must embrace marriage equality for gays and lesbians if they want to survive as a party and reiterated his support for “traditional marriage.”

“Look, I believe in the traditional definition of marriage,” Jindal said during an appearance on Meet The Press on Sunday, and went on to claim that Republicans don’t have to make the case on social issues to attract young voters and win future elections and instead should continue focusing on economic issues. “We lost [the 2012 election] because we didn’t present a vision showing how we believe the entire economy can grow, how people can join the middle class. We’re in aspirational party and we need policies that are consistant with that aspirational private sector growth.”

In an essay for The American Conservative entitled “Marriage Equality Is a Conservative Cause,” Huntsman — a Mormon whose previous support for civil unions set him apart from Republican presidential candidates in 2012 — argued that if the Republican Party wants to survive, it must enhance its appeal to gay Americans and the growing majority that supports marriage equality.

“[I]t’s difficult to get people even to consider your reform ideas if they think, with good reason, you don’t like or respect them,” Huntsman wrote. “Building a winning coalition to tackle the looming fiscal and trust deficits will be impossible if we continue to alienate broad segments of the population….Consistent with the Republican Party’s origins, we must demand equality under the law for all Americans.”

Polls show that most Americans support marriage equality, with many telling pollsters that their minds have evolved on the issue.

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