Tag Archives: louisiana

Governors Faced with Difficult Medicaid Decision

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The Medicaid expansion decision for each state is one of several critical aspects of the Affordable Care Act, which was recently deemed Constitutional by the Supreme Court. Although federal dollars are at stake, it’s not a given that states (including Indiana) will agree to the changes to the program for low-income residents. Stateline offers a strong summary.

Although the lineup is shifting, more than a dozen Republican governors have suggested they might decline to participate in the Medicaid expansion. Governors in Florida, Iowa, Kansas, Louisiana, Nebraska, Texas, South Carolina and Wisconsin have said they will not participate. GOP governors in Alabama, Georgia, Indiana, Mississippi, Nevada and Virginia indicate they are leaning in that direction.

Meanwhile, about a dozen Democratic governors have said their states will opt in. The rest have not declared their intentions.

According to data from the Congressional Budget Office, the federal government would spend $923 billion on a full Medicaid expansion between 2014 and 2022, and states would spend about $73 billion. But nobody is sure how many people will enroll in the Medicaid expansion. According to a 2010 report by the Kaiser Family Foundation, states’ share of the Medicaid expansion could range anywhere from $20 billion to $43 billion in the first five years.

According to Kaiser, most states opting into the expansion likely would have to ramp up their Medicaid spending between 2014 and 2019, but four would spend less (Hawaii, Maine, Massachusetts and Vermont) and several others would have to boost state spending only slightly.

Mississippi’s Medicaid program, for example, cost a total of $4 billion in 2011—the federal government paid $3 billion, and the state paid $1 billion. Expanding that program to everybody at or below 138 percent of the federal poverty line would cost the state as much as $581 million between 2014 and 2019, according to Kaiser’s 2010 study.  That’s a 6.4 percent increase in state spending compared to what Mississippi would spend without an expansion

The day after the Supreme Court ruled the Medicaid expansion was optional, Mississippi Governor Phil Bryant, a Republican, said: “Although I am continuing to review the ruling by the Supreme Court, I would resist any expansion of Medicaid that could result in significant tax increases or dramatic cuts to education, public safety and job creation.”

Power Producers: Texas Leads the Way

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Who doesn’t love a good list? If you’re in the energy business or just have an interest in which states are leaders in various production categories, check out this information from the U.S. Energy Information Administration:

Coal production (2010)

  1. Wyoming (442,522 thousand short tons)
  2. West Virginia (135,220)
  3. Kentucky (104,690)
  4. Pennsylvania (58,593)
  5. Montana (44,732)

Natural gas marketed production (2010)

  1. Texas (6.7 million cubic feet)
  2. Wyoming (2.3 million)
  3. Louisiana (2.2 million)
  4. Oklahoma (1.8 million)
  5. Colorado (1.5 million)

Crude oil production (2011)

  1. Texas (49,233 thousands of barrels)
  2. Alaska (18,956)
  3. North Dakota (16,581)
  4. California (16,454)
  5. Oklahoma (6,584)

Total net electricity generation (2011)

  1. Texas (33,689 thousands of megawatt hours)
  2. Pennsylvania (19,161)
  3. California (17,167)
  4. Illinois (16,851)
  5. Florida (16,845)

And a few more natural gas numbers courtesy of a State Legislatures article:

  • 90 years: estimated supply of domestic natural gas at current consumption levels
  • 24 trillion: cubic feet of natural gas used annually in the U.S.
  • 26%: amount of the nation’s electricity generated by natural gas in 2011
  • 25,400: number of wells fractured or re-fractured each year to produce natural gas

Chalk Up Another Victory for School Vouchers

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A rapid expansion of Louisiana’s school voucher program, officially signed into law last week, is the latest in a series of initiatives to expand school choice throughout the country. The Friedman Foundation offers its perspective. Milton Friedman first proposed vouchers in 1955.

Gov. Bobby Jindal signed into law today an expansion of Louisiana’s school voucher program, making it one of the largest such programs nationwide.

Vouchers, which allow parents to use government funding for their children’s private school tuition, were first proposed in 1955 by Nobel laureate Milton Friedman, who believed universally available vouchers were the best way to improve education. In 1990, the first voucher program was created in Milwaukee, Wisconsin, though only for low-income families. Last year, Indiana took historic action by making more than half of its student population voucher-eligible. Now, more than half of all Louisiana students will qualify for vouchers.

“States are realizing that school choice works,” said Robert Enlow, president and CEO of the Friedman Foundation for Educational Choice, Milton Friedman’s legacy foundation. “The more that states can move from limited school choice to universal availability, the greater its benefits will be to those in need. Indiana is witnessing this now. So, too, will Louisiana.”

In Louisiana, vouchers have been available since 2008, but only to New Orleans children and students with special needs in eligible parishes. In the 2012-13 school year, the Student Scholarships for Educational Excellence Program will allow low- and middle-income students statewide to receive vouchers if they are enrolled in public schools graded “C,” “D,” or “F” by Louisiana’s accountability system.

Currently, 18 states, including Louisiana, and Washington, D.C., provide private school choice through vouchers or the tax code. In 2011, called “The Year of School Choice” by voucher supporters, 13 states increased the availability of school choice; eight new programs were created and 11 existing laws were expanded. This year, Florida and Arizona have approved increases to their private school choice programs, while Virginia and New Hampshire—neither of which allow private school choice—have passed scholarship proposals.

Double the Taxing ‘Pleasure’ on April 17

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There’s something ironic (not pleasant, but ironic) about Tax Freedom Day this year occuring on April 17 — the same day taxes are due. The day, according to the Tax Foundation, is when people finally work long enough to pay their taxes for the year.

The latest Tax Freedom Day took place on May 1, 2000. With the economy booming that year, Americans paid 33% of their total income in taxes. A century earlier was more pleasant with "freedom" arriving on January 22, 1900.

State tax burdens vary the tax timeframe. Indiana residents will "celebrate" on April 14, which ranks 26th nationally. As for the best of 2012:

  • Tennessee, March 31
  • Louisiana and Mississippi, April 1 (no foolin’)
  • South Carolina, April 3
  • South Dakota, April 4

And the worst:

  • Connecticut, May 5
  • New Jersey and New York, May 1
  • Washington, April 24
  • Wyoming and Illinois, April 23

Senators Challenge “Donor State” Issue

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The term “donor” usually refers to a person who bestows something voluntarily – a vital organ to a person in need or blood to a blood bank; even someone offering money to an organization without expecting anything in return is considered a donor. 

But, Indiana’s title as a financial “donor state” in the federal transportation system has never been voluntary. (States that put more money into the federal transportation program than they receive out of it are considered donor states.) A total of 28 states have the moniker, and Indiana receives only 92 cents for every dollar given to the federal system.

To combat this inequity, Indiana Republican Dan Coats has joined with several other senators from around the nation in introducing the State Transportation Flexibility Act, legislation that would allow states to opt out of federal highway programs. The act gives states the flexibility to manage and spend the gas tax revenue collected inside each state on transportation projects without federal mandates or restrictions.

The federal gas tax is the biggest revenue generator for the federal highway trust fund. With more fuel efficient vehicles and people driving less on average, the gas tax has been pushed into a steady decline and the trust fund has been bailed out several times.

“For too long, Indiana has been a donor state and sent more gas tax dollars to Washington than it has received back,” Coats says in a press release. “This isn’t fair to Hoosier taxpayers, which is why I support the State Highway Flexibility Act. Hoosiers know our state’s transportation needs better than bureaucrats in Washington, and Indiana should be able to control its own resources.”

States that choose to opt out would have to continue to maintain the Interstate system in accordance with its current program, but all gas tax revenue gained inside its borders would be used at the state’s discretion on transportation projects without federal interference.

“Anytime you can eliminate a layer of federal bureaucracy from the state’s ability to govern, it is a good thing,” adds Sen. David Vitter (R-Louisiana) in the release. “The states know their transportation needs better than Congress, so let’s put them in the driver’s seat to manage their own gas tax.”

In 2009, Alaska received $3.28 for every dollar it put into the federal fund, the District of Columbia received $5.04 for every dollar and Montana, North Dakota, Rhode Island and Vermont had returns of greater than 200% that same year.

For more information on the federal highway transportation fund and the challenges Indiana faces with the current transportation funding system, check out the story "Stuck in Neutral" in the May/June 2011 edition of BizVoice®. 

Column: Right-to-Work States Have Economic Advantage

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Andrea Neal of the Indiana Policy Review Foundation penned the following column on right-to-work laws for the Times of Northwest Indiana. The Indiana Chamber has been an advocate for developing a right-to-work law in the state:

It doesn’t take an economist to spot the common thread in these recent economic development headlines:

• Chattanooga, Tenn., July 29: "Volkswagen hires 2,000th employee."
• Shreveport, La., July 28: "NJ-based bag manufacturer to build Louisiana plant."
• Decatur, Ala., July 21: "Polyplex to build $185 million plant."
• West Point, Ga., July 7: "Kia builds vehicle No. 300,000."

All four stories have Southern datelines. All come from states with right-to-work laws, which prohibit labor contracts that require employees to join a union or pay a union representation fee.

This is the issue that prompted the five-week House Democratic walkout during the 2011 Indiana General Assembly. The Democrats — a minority in both House and Senate — had no other leverage. So when a right-to-work bill came up unexpectedly in a session that was supposed to be about the budget, redistricting and education, they bolted. Republicans capitulated and took the legislation off the table.

In 2012, it will return with a vengeance, and this time Democrats can’t avoid it. Right-to-work has been promised a full public airing. The Interim Study Committee on Employment Issues, chaired by Sen. Phil Boots, R-Crawfordsville, is taking a first crack this summer and hopes to recommend a bill by November. Gov. Mitch Daniels, who didn’t support the bill last session, has hinted he might this time around.

The debate goes back to 1935 when Congress passed the National Labor Relations Act protecting employees’ rights to form, join and be involved in unions. One section of the law permitted contracts that made union membership a condition of employment. Congress modified that language in 1947 when it said states could prohibit these. In response, 22 states passed right-to-work laws. Indiana is one of 28 that currently does not have such a law.

Predictably, at last week’s study committee hearing, business interests favored right-to-work while union leaders opposed it. The economists were divided. Richard Vedder, of Ohio University, summarized research showing that right-to-work states have higher rates of employment, productivity and personal income growth. Marty Wolfson, of the University of Notre Dame, testified that right-to-work laws result in lower wages and benefits.

Their conclusions are not mutually exclusive. If you grant Wolfson’s point, the policy question remains: Which is better? A state with higher wages for some but a weaker economy overall or one with lower wages for some and more vibrant growth, not to mention freedom of choice for the worker?

Companies are voting with their feet. To the extent that manufacturers are expanding in the United States — and few are — they are choosing the South and West where right-to-work is prevalent.

Alabama Gov. Robert Bentley, in announcing the $185 million project by Polyplex, the world’s fourth-largest manufacturer of thin polyester film, was blunt: "Alabama is a right-to-work state, and we will continue to be one. That’s one of our advantages for companies who are looking to build on new sites."

Companies won’t readily admit this because what they say can and will be used against them. Currently pending at the National Labor Relations Board is a case against Boeing, which recently opened a second production facility in South Carolina for its 787 Dreamliner airplane.

South Carolina has a right-to-work law. Boeing’s other production site is in Washington state, which does not. The board’s complaint alleges that Boeing chose South Carolina in retaliation for strikes by Washington workers in violation of the National Labor Relations Act. Its proposed remedy would force Boeing to move its South Carolina operation to Washington. This would be an extraordinary use of federal power to promote the cause of organized labor at one company’s expense.

Right-to-work does not destroy unions. It gives workers the right to decide for themselves whether to join. "This greater accountability results in unions that are more responsive to their members and more reasonable in their wage and work rule demands," the Mackinac Center for Public Policy said.

It should come as no surprise to Indiana legislators that expanding industries favor that kind of relationship. The legislative choice is between protecting unions as we know them or protecting the long-term interests of Hoosier workers.

Insurance by the Numbers

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When the subject these days is health care, that dreaded six-letter "r" word that ends in "form" usually follows. Let’s skip that topic and its consequences. Instead, a few interesting insurance facts, courtesy of The Council of State Governments and its annual The Book of the States.

  • Top five states for percentage of residents covered by insurance: Massachusetts (97%), Hawaii (92.5%), Wisconsin (91.8%), Minnesota (91.7%) and Maine (91.2%)
  • Bottom five states for percentage of residents covered by insurance: Texas (74.8%), New Mexico (77.5%), Florida (79.8%), Mississippi (81.2%) and Louisiana (81.5%)
  • On a regional basis, percent insured are 88.6% in the Midwest, 88.5% in the East, 83.9% in the South and 82.8% in the West
  • Where people get their insurance: 53.7%, employer; 13.2%, Medicaid; 12.1%, Medicare; 4.9%, individual
  • People under age 65: 65% have private insurance and 17% are uninsured
  • Children under age 18: 58% have private insurance, 34% are on a public health plan and 8.9% are uninsured

What do all the numbers mean? Let us know your interpretation.

2010 Numbers Matter — for the Next 10 Years: Congressional Lines Redrawn

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For those politically inclined, the work on the next election often begins before the current one takes place. In other words, while November 2008 was drawing plenty of attention at this time last year, there were at least some looking ahead to 2010. That is especially true when the "next" period ends with the number zero.

The every-10-year-period means a new census, a reapportionment of House seats in Congress and new maps for both legislative and congressional districts. There will be a great deal of time to discuss the politics of drawing the lines. For now, the early projections are in place on which states will be winners and losers in the amount of representation they have in Washington.

The National Conference of State Legislatures has its reapportionment outlook. Remember, they are only estimates at this point, but Indiana’s nine seats appear safe. The state, of course, came up short after the 2000 and 1980 population counts — losing a spot in the House each time. (Indiana once had 13 districts before dropping one each after the 1940 and 1930 censuses).

So who wins and who loses in 2011? The big, big winner, according to NCSL, is Texas with the potential of gaining three seats. The South and West also look to benefit from one additional seat for Arizona, Florida, Georgia, Nevada and Utah.

On the other side, eight states stand to lose one seat each. They are Iowa, Louisiana, Massachusetts, Michigan, New Jersey, New York, Ohio and Pennsylvania.

Side notes: If the estimate holds, California would not increase its congressional power for the first time since becoming a state in 1850. Also, pending legislation would increase the size of the House from 435 to 437 — giving the District of Columbia its first vote and allowing one more state to add a seat. (Utah would gain the additional representative, for now, if the legislation passes this year.)

So Which State is Most Corrupt? (Hint: Does Prison Serve Gumbo?)

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In a recent article on Politico, this report from the Corporate Crime Reporter was referenced. It ranks the most publicly corrupt states in this here union. It only ranks the 35 most populated states, and Indiana comes in at 26th:

The Corrupt States of America?

The publication Corporate Crime Reporter crunched Department of Justice statistics in 2007 to rank the 35 most populous states of the nation by corruption. The publication calculated a corruption rate, which it defined as the total number of public corruption convictions from 1997 to 2006 per 100,000 residents.

These are the results:

1. Louisiana (7.67)
2. Mississippi (6.66)
3. Kentucky (5.18)
4. Alabama (4.76)
5. Ohio(4.69)
6. Illinois (4.68)
7. Pennsylvania (4.55)
8. Florida (4.47)
9. New Jersey (4.32)
10. New York (3.95)
11. Tennessee (3.68)
12. Virginia (3.64)
13. Oklahoma (2.96)
14. Connecticut (2.80)
15. Missouri (2.79)
16. Arkansas (2.74)
17. Massachusetts (2.66)
18. Texas (2.44)
19. Maryland (2.31)
20. Michigan (2.14)
21. Georgia (2.13)
22. Wisconsin (2.09)
23. California (2.07)
24. North Carolina (1.96)
25. Arizona (1.88)
26. Indiana (1.85)
27. South Carolina (1.74)
28. Nevada (1.72)
29. Colorado (1.56)
30. Washington (1.52)
31. Utah (1.4117)
32. Kansas (1.4109)
33. Minnesota (1.24)
34. Iowa (0.91)
35. Oregon (0.68)

Hat tip to Chamber politico Chase Downham for the heads up.