Chamber Teams on Plan Calling for Workforce Solutions

Posted on October 5, 2010 by Tom Schuman

Community colleges are not lacking in attention. Indiana has a rapidly growing two-year system in Ivy Tech, which has surged the last three-plus years under the leadership of longtime Indiana automotive industry veteran Tom Snyder. President Obama has highlighted the need for additional community college graduates and certifications, including today’s White House Summit on Community Colleges.

While Snyder and an Ivy Tech student are among the attendees, the Indiana Chamber is also contributing to that effort (along with many other initiatives in higher education and workforce development). The Chamber’s Derek Redelman is one of more than 30 leaders from business, education and philanthropy that joined Business Champions, Inc. in submitting an action plan to today’s summit.

The plan outlines specific and concrete action steps employers, corporate philanthropy and community college trustees can take to build partnerships that prepare Americans for high-value jobs, expand opportunities for degrees and support entrepreneurs.

If current trends continue, our workforce will be less educated in 2020 than it is today. Among older adults – those between the ages of 55 and 64 – the United States ranks first with the highest percentage of postsecondary degree holders of all developed countries. However, among young adults aged 24 to 35, the U.S. ranks 12th.

Many of the recommendations for action stem from seven White House meetings Business Champions, Inc. facilitated earlier this year for the Workforce and Education Subcommittee of the President’s Economic Recovery Advisory Board.

“It’s time to move from analyzing America’s skilled workforce problems to implementing solutions.” said Mary Gershwin, president of Business Champions, Inc. “Our workforce development problems can be solved, but business-as-usual will not work. Leaders from community colleges, the business community and corporate philanthropy must become much more deliberate about working in partnership to build skills, degrees and entrepreneurial capacity. This brief provides a much-needed road map to results.”

Business Champions, Inc. is a national non-profit organization committed to building the skills of our workforce by mobilizing the influence of business leaders to stimulate new thinking, strengthen political will and reform systems so that more Americans earn valuable degrees and credentials after high school.

Read the action plan. Learn more about Business Champions, Inc.

Getting Conventional: Cities Named Party Faves

Posted on July 9, 2010 by Tom Schuman

The significance of political party conventions — in this writer’s opinion — is minimal. Sure, there are some subplots regarding up-and-comers and the speaking slots they receive, the length of the boost in the polls following the get-togethers, etc. In this age of instant news and act/react before all the facts are in, however, a drawn out orchestrated party for party faithful seems to have little long-term consequence.

Where the confabs take place, though, and the reactions of the locals is of some interest. And the 2012 sites have been narrowed down for the Dems after the GOP picked its rallying point earlier in the year.

The Democrats will choose between St. Louis, Charlotte, Minneapolis and Cleveland. The political factors at play: President Obama barely lost Missouri in 2008 and earned a narrow victory in North Carolina, while Ohio seems to always be a battleground and Minnesota has stayed "true blue" in most cases.

A Republican panel chose Tampa over Phoenix and Salt Lake City. That decision is expected to be ratified next month.

Let the mudslinging begin (as if it ever really stops)!

Financial Reform Bill: It’s a Whopper

Posted on May 27, 2010 by Bill Waltz

(Part 1 of 2)

A sweeping financial reform package passed the U.S. Senate last week. With a version already passed in the House, now compromises must be worked out by a conference committee to be led by Senate Banking Committee Chairman Christopher Dodd (D-Conn.) and House Financial Services Committee Chairman Barney Frank (D- Mass.). The indication is they would like to send a final bill to President Obama by July 4.

However, there remain significant points of contention to be negotiated between the House and Senate; perhaps most notably the Senate provisions forwarded by Sen. Blanche Lincoln (D-Ark.) that require banks to spin off their derivative trading to affiliate entities. Over the next few weeks, advocates will continue to promote their position on the several items at play and the final product is still in question.

Below are descriptions of the major components in the Senate bill (see the 1,300-plus page bill in its entirety):

New Regulatory Authority – Gives federal regulators new authority to seize and break up large troubled financial firms without taxpayer bailouts in cases where the firm’s collapse could destabilize the financial system. Sets up a liquidation procedure run by the FDIC. Management could be removed, with shareholders and unsecured creditors bearing losses. Other provisions would make it harder for top executives at the failed firms to claim large compensation packages, and it would give the government power to limit payments for certain creditors of failed firms. The Treasury would supply funds to cover the upfront costs of winding down the failed firm.
Consumer Agency – Creates a new Consumer Financial Protection Bureau within the Federal Reserve, with rulemaking and some enforcement power over banks and non-banks that offer consumer financial products or services such as credit cards, mortgages and other loans. The new watchdog would have authority to examine and enforce regulations for all mortgage-related businesses, large non-bank financial companies such as big payday lenders and consumer reporting companies, and for banks and credit unions with assets of more than $10 billion.
Derivatives – Requires the vast majority of all derivatives trading be executed on a public exchange as opposed to between banks and their customers as many contracts are currently. Most controversially, the bill would adopt language written by Sen. Lincoln that would compel any large commercial banks that have access to the Federal Reserve’s discount window to spin off their derivatives trading business. The Fed, FDIC andTreasury, as well as the banking industry, have argued against this measure.
Financial Stability Council – Establishes a new, nine-member Financial Stability Oversight Council, comprised of existing regulators, charged with monitoring and addressing system-wide risks to the nation’s financial stability. Among its duties, the council would recommend to the Fed stricter capital, leverage and other rules for large, complex financial firms that are judged to threaten the financial system. In extreme cases, would have the power to break up financial firms.
Oversight Changes – Eliminates the Office of Thrift Supervision, but an attempt to strip the Fed of its oversight of thousands of community banks was reversed with an amendment. Would empower the Fed to supervise the largest, most complex financial companies to ensure that the government understands the risks and complexities of firms that could pose a risk to the broader economy.
Federal Reserve Oversight – Calls for a one-time government audit of all of the Fed’s emergency lending programs from December 2007 onward, including facilities used to help deal with the collapse of Bear Stearns & Co. and the program to stabilize asset-backed securities markets. The Government Accountability Office would also review the Fed’s corporate governance, including whether there are conflicts of interest inherent in the current design of the Federal Reserve System.

Summary of remaining key components to be posted later today.

Disaster? Yes; Stop Drilling? No

Posted on May 3, 2010 by Tom Schuman

Yes, there is an environmental disaster taking place in the Gulf of Mexico with the Deepwater Horizon oil rig explosion and spill. No, that should not mean the end of any future offshore drilling.

Four New Jersey Democrats have already written President Obama, asking him to reverse his earlier decision to open up a variety of East Coast, eastern Gulf of Mexico and some Alaska waters for drilling as well exploration of future oil and natural gas. And Florida Sen. Bill Nelson says he will introduce legislation to stop expanded drilling.

The White House is acting correctly. All rigs and platforms currently in use are being inspected. No additional drilling will take place until the current investigation is complete. Washington is taking this seriously, just as it did the determination to expand domestic oil production as part of an important national security strategy.

Accidents, with often tragic consequences, unfortunately happen — in this industry and nearly all others. (I’m not going to succumb to comparisons; I’ll take it for granted that you understand what I mean). That does not mean we climb into a shell and refuse to utilize the resources and technologies that provide, in this case, vital energy supplies. We find out what went wrong, why it happened, make improvements and do everything possible to prevent future problems.

Many Placing Their Money on House GOP Surge

Posted on April 30, 2010 by Tom Schuman

Many, but not all, were surprised when Massachusetts Rep. Scott Brown earned the special election victory earlier this year to replace Ted Kennedy. The same group that called that upset also predicted President Obama’s electoral vote total nearly a month before the 2008 election.

That same entity — Dublin, Ireland-based InTrade, an online futures market — now is giving House Republicans a 50-50 chance to reclaim control of their chamber in November.

On Tuesday, April 20 at 4:55 p.m., InTrade’s market for GOP control of the House hit 50.5, meaning traders believed there was a 50.5 percent chance the House would change hands in November. According to CongressDaily:

Analysts at the Wharton School of Business have pegged InTrade’s margin of error at 1 to 1.5 percent, or half that of comparable Gallup polls.

Although one or two major market-makers with deep pockets and an axe to grind can sometimes influence the betting, InTrade has proved to be accurate more often than not. That’s because traders are more likely to do their homework with actual money on the line than with a pollster’s voice on the line, Wharton professors and others argue.

At the close of trading in April 22, Democrats had only a 48.4 percent chance to retain the House. That chance has steadily declined throughout the year but only dropped below 50 percent this week. InTrade’s market for House Republicans picking up at least 35 seats hit 59.5 percent.

The Senate picture is brighter for Democrats, based on InTrade betting. The latest trading puts Senate Democrats’ chances at holding their majority at 77.9 percent. But the market for Republicans picking up at least seven seats stood at 50 percent.

Federal Loan Proposal Would Cost Hoosiers

Posted on November 2, 2009 by Tom Schuman

With all the attention on health care reform, cap and trade, and other widespread federal issues, little notice has apparently been given to a proposal that would directly eliminate Indiana jobs.

President Obama announced earlier this year the intention to do away with private origination of student loans, turning the job over completely to the U.S. Department of Education. Based on past experiences in various areas, do we really want the government running this program?

I don’t claim to know a great deal about the process (it has been 25 years since I exited Ball State and began paying back a fortunately small amount). I expect to learn a lot more in the coming months as the parent of a high school senior who, despite excellent grades and likely scholarships, will be entering the borrowing world in some phase.

What I do know is that Sallie Mae employs 2,300 Hoosiers, with the company reporting a $148 million payroll in 2008. In addition to the Fishers operation, there is a fairly new facility in Delaware County. Throw in related non-company jobs and the impact grows.

It’s all (or should be) about students and supporting their abilities to complete their higher education. The administration proposal would seemingly minimize options and be an obstacle toward that ultimate goal. And there are those Hoosier jobs.

Health Care Messaging: They’re Buying; Are You Watching?

Posted on September 30, 2009 by Tom Schuman

Tired of hearing health care messages during breaks in your favorite TV shows. Maybe that’s because more than $1 million dollars a day is being spent on such commercials.

According to the Campaign Media Analysis Group, overall TV spending reached $110 million on Sunday. The breakdown is $47 million in favor of a health care overhaul, $32 million opposed to the reform efforts and the rest focused on general health care discussion.

Who’s spending the most? The U.S. Chamber of Commerce (there is no official relationship between the U.S. and Indiana chambers; in fact, we support some of the principles offered by the national organization but are opposed to others) and AARP are at the top of the list.

With the debate continuing in Congress and President Obama making this his signature issue, expect the dollar outlays, the commercials (and just maybe the TiVo usage) to continue at high levels.

Stop the Insurance Industry Attacks

Posted on August 19, 2009 by Mike Ripley

While many agree that health care reform is necessary, the level of disagreement on the current proposals in Washington is extremely high. Let’s hope that reasonable debate and compromise will lead to a sensible solution.

No matter how that plays out, one aspect that needs to stop is the all-out attack on the insurance industry. House Speaker Nancy Pelosi (D-California) has made insurance companies the primary culprit. "It’s almost immoral what they are doing," Pelosi told reporters, adding, "Of course they’ve been immoral all along in how they have treated the people that they insure. They are the villians. They have been part of the problem in a major way."

President Obama, in discussing the public option for health insurance, said, "We want to keep the insurance industry honest" and that can be done by having a public option that will compete with private insurers.

I understand that many folks don’t like the fact that insurance companies make a profit. Profit in this country, for some unknown reason, has become an evil pursuit. In a recent Fortune magazine ranking of industries, health insurers ranked 35th with a 2.2% profit margin. (The larger numbers cited for earlier in the decade were primarily a result of significant consolidation in the industry).

Let’s face it: Either the employee-based system of using private insurance to provide for our health care needs is a good thing or it’s not. If it’s not, then go to the public plan and be honest with the American people. If it is good, let’s promote an environment that allows insurers the ability to compete and make a profit while holding them accountable to improve administrative efficiencies.

Without the ability to underwrite business, an insurance company can’t make a profit. That ability is what has afforded us the best policy benefits and coverages in the world. It also has resulted in private initiatives between insurers and employers to address some of the system’s runaway costs. Let’s work together to continue to do a better job in that area instead of simply casting blame on insurers.

An Early Look at the 2010 Congressional Vote

Posted on July 29, 2009 by Tom Schuman

Politicos tell us it’s never too early to look ahead to the next election. Washington’s CQ Politics does so for Congress, rating 100 House districts in play in some form in the 2010 mid-term elections.

CQ has eight of Indiana’s nine incumbents in the safe category. They are Visclosky, Donnelly, Carson and Ellsworth on the Dems’ side, and Souder, Buyer, Burton and Pence for the Republicans. Baron Hill (9th District) is in the Democrat Favored listing.

Key items to watch, according to CQ:

Democrats will likely lose a portion of their 256-178 (one current opening) advantage. The party in charge of the White House typically loses seats during the first mid-term vote (although the GOP and President Bush were an exception in 2002)
Swing seats will be a big focus. In 49 districts, voters favored John McCain for president but elected a Democrat to the House; conversely, 34 districsts backed President Obama but put a Republican in the House
Of the 100 seats rated competitive, 59 are held by Democrats. Only three are viewed as toss-ups, a slightly higher numbers as highly competitive and the majority as slightly competitive

Much can change, however, over the next 15 months.

Indiana Chamber Blogs

The Business Blog of the Indiana Chamber of Commerce

Tag Archives: president obama