Public Policy and Governance – Page 162

Promises Promises…

Trump promised to revive coal mining. Bernie is once again promising to eliminate student debt. Bernie’s goal is a lot more attractive, but his strategy is equally delusional.

Trump, of course, is too dumb–and unconcerned–to know how energy markets work; he just throws red meat to his equally-uniformed base. Is that what Bernie is doing, too? Playing to his core voters without realizing how unrealistic/unworkable his promises are? I doubt that. Unlike Trump, he’s pretty smart–and he actually knows how government works.

And that’s worse, because it means he has to know his plan is an absolute non-starter.

Student debt is admittedly an enormous problem, both for the students who spend years burdened by it and for the economy, where it constitutes an enormous drag on consumer spending and economic growth. Policymakers definitely should do something to alleviate the burden, but the pertinent question is: what sorts of proposals make sense?

What would a workable solution look like?

Economists point out that simply canceling all student debt ends up helping high-income families most, which seems like a less-than-prudent use of tax dollars. Estimates are that the top 40 percent of earners would receive about two-thirds of the benefits.

Sanders has made a similar proposal before, and David Honig, a friend (who is an exceptional lawyer), took a “deep dive” into that previous plan. I am appending his analysis. It’s long, and it’s legalistic/technical, but it also demonstrates why political promises sound so much better when they aren’t closely examined.

I’ve bolded language that I think is particularly important…Here’s David’s summary.

________________________–
Time for a breakdown. Here we go:

TITLE I—FEDERAL-STATE PARTNERSHIP TO ELIMINATE TUITION

SEC. 101. GRANT PROGRAM TO ELIMINATE TUITION AND REQUIRED FEES AT PUBLIC INSTITUTIONS OF HIGHER EDUCATION.

That’s our first title, and what it tells you is that this isn’t a Federal program alone, it’s a State and Federal program. In turn, that means that States have to sign on. The King v. Burwell precedent from the ACA litigation is going to still control, and that means we’re not talking about free tuition everywhere, just in blue States.

(a) Program Authorized.—
(1) GRANTS AUTHORIZED.—From amounts appropriated under subsection (f), the Secretary of Education (referred to in this section as the “Secretary”) shall award grants, from allotments under subsection (b), to States having applications approved under subsection (d), to enable the States to eliminate tuition and required fees at public institutions of higher education.
(2) MATCHING FUNDS REQUIREMENT.—Each State that receives a grant under this section shall provide matching funds for a fiscal year in an amount that is equal to one half the amount received under this section for the fiscal year toward the cost of reducing the cost of attendance at public institutions of higher education in the State.

That’s your formula — 2/3 Fed, 1/3 State. So if Sanders’ own estimate is right, that the cost to the Feds is $750B over 10 years, that means the States are going to have to come up with $375B, and they can’t tax Wall Street.

So how much do they get? Well, that’s interesting, and the legislation quite clearly institutionalizes the vast differences in education spending from State to State:

(b) Determination Of Allotment.—

This is how the dollars are determined.

(1) INITIAL ALLOTMENT.—For fiscal year 2016, the Secretary shall allot to each eligible State that submits an application under this section an amount that is equal to 67 percent of the total revenue received by the State’s public system of higher education in the form of tuition and related fees for fiscal year 2016. For each of fiscal years 2017 through 2019, the Secretary shall allot to each eligible State that submits an application under this section—
(A) an amount equal to the allotment the State received for fiscal year 2016, plus
(B) if the State provides additional funds toward the cost of reducing the cost of attendance at public institutions of higher education in the State for any of such fiscal years that is more than the matching funds requirement under subsection (a)(2), an amount equal to such additional funding provided by the State, which amount provided by the Secretary may be used for the activities described in subsection (e)(2).

Ummm, wow. So the State gets 2/3 of the revenue it received in the form of tuition and related fees? That, by the plain language of the statute, would exclude money spent by the State from general funds, lottery funds, special education funds, etc., and include only tuition and related fees. So States that subsidized education the most would get the least? That’s how it reads. If so, this is a total non-starter, and the legislation is a complete sham — a promise written in unrealistic numbers to make it seem possible. If that is really what is intended, kill it now. Just forget it, and stop even pretending it was realistic.

But, in the interest of fairness, let’s assume it doesn’t really mean what it says, and that what it is really intended to do is replace all State spending on higher education. Okay? Is that fair, at least for the sake of discussion?

Even under that reasoning, there are problems. California’s budget is $10.5B, while Vermont’s is $84M. More important, New Hampshire is $104/capita, while Wyoming is $606/capita. So we start with that spending (assuming it’s not really tuition, which would make the whole thing a farce), and see right away that the new Federal program would instantly endorse unequal spending decisions made State-by-State, and pay for those decisions with Federal money. How long do you think that would last without challenge, either in Congress or in the courts? Yeah, not very long. If the money is coming from DC, paid via New York, what justification is there to spend so much less in one State than another?

And for years after 2016, while the States can increase their spending, they only get a one-to-one match in Federal funds, rather than the initial two-to-one match, making future State spending far more expensive than past State spending.

(2) SUBSEQUENT ALLOTMENTS.—Beginning in fiscal year 2020, the Secretary shall determine the median allotment per full-time equivalent student made to all eligible States under this section for fiscal year 2019 and incrementally reduce allotments made to States under this section such that by fiscal year 2025, no State receives an allotment under this section per full-time equivalent student that exceeds the median allotment per full-time equivalent student made under this section for fiscal year 2019.

Oh look, starting in 2020 there is an “evening out” of the money. Except, it comes down, instead of going up. So a State that was spending a lot of money on education gets a whole lot less, dropping the median, while a State that was spending less doesn’t get more. The median just keeps dropping to the lowest common denominator.

Do people really think this is a good idea?

(c) State Eligibility Requirements.—In order to be eligible to receive an allotment under this section for a fiscal year, a State shall—

Okay, so what does a State have to do to stay in the system?

ensure that public institutions of higher education in the State maintain per-pupil expenditures on instruction at levels that meet or exceed the expenditures for the previous fiscal year;

You have got to be kidding me! So one-half of the States, the ones actually trying to fund their higher education, get less starting in 2020, but the State has to keep paying just as much? So now the funding will go down from 2-1 to perhaps 1-1, or even less? This is insane. In the meantime, they have to do just as much with even less than they had before? So the University of California system is going to have funding from the feds that matches funding to Missouri, but has to put just as much California money into it, while trying to maintain their standards? Interesting.

ensure that tuition and required fees for in-State undergraduate students in the State’s public higher education system are eliminated;

Hey guys, we get less money, but we can’t charge tuition. Terrific!

(3) maintain State operating expenditures for public institutions of higher education, excluding the amount of funds provided for a fiscal year under this section, at a level that meets or exceeds the level of such support for fiscal year 2015;

Okay, this one’s not a big deal. Except, it hints that when it said “tuition” up above, it really meant “tuition.” And that’s nuts.

(4) maintain State expenditures on need-based financial aid programs for enrollment in public institutions of higher education in the State at a level that meets or exceeds the level of such support for fiscal year 2015;
(5) ensure public institutions of higher education in the State maintain funding for institutional need-based student financial aid in an amount that is equal to or exceeds the level of such funding for the previous fiscal year;

Huh? Why do they have to spend just as much on need-based student financial aid if students don’t have to pay tuition? Somebody please explain this one.

(6) provide an assurance that not later than 5 years after the date of enactment of this Act, not less than 75 percent of instruction at public institutions of higher education in the State is provided by tenured or tenure-track faculty;

A lovely goal, but the money just dropped through the floor for the highest-paying half of the States in the country.

(7) require that public institutions of higher education in the State provide, for each student enrolled at the institution who receives for the maximum Federal Pell Grant award under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.), institutional student financial aid in an amount equal to 100 percent of the difference between—
(A) the cost of attendance at such institution (as determined in accordance with section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll)), and
(B) the sum of—
(i) the amount of the maximum Federal Pell Grant award; and
(ii) the student’s expected family contribution

So in addition to the funding discussion above, now they have to make up the difference between costs and Pell grant money? This is starting to sound like a whole lot of new unfunded mandates, the kind the Supreme Court doesn’t like.

and
(8) ensure that public institutions of higher education in the State not adopt policies to reduce enrollment.

Same enrollment, less money.

(d) Submission And Contents Of Application.—For each fiscal year for which a State desires a grant under this section, the State agency with jurisdiction over higher education, or another agency designated by the Governor or chief executive of the State to administer the program under this section, shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

Only States that want to participate will need to submit applications. Guess which States will want to participate? The Democratic States that spend low amounts of money on higher education. The higher-paying States, even if they’re blue as blue can be, won’t want any part of it, for the reasons noted above.

(e) Use Of Funds.—

How do they get to use the money?

(1) IN GENERAL.—A State that receives a grant under this section shall use the grant funds and the matching funds required under this section to eliminate tuition and required fees for students at public institutions of higher education in the State.

First, reduce tuition. Okay, got it.

(2) ADDITIONAL FUNDING.—Once tuition and required fees have been eliminated pursuant to paragraph (1), a State that receives a grant under this section shall use any remaining grant funds and matching funds required under this section to increase the quality of instruction and student support services by carrying out the following:
(A) Expanding academic course offerings to students.
(B) Increasing the number and percentage of full-time instructional faculty.
(C) Providing all faculty with professional supports to help students succeed, such as professional development opportunities, office space, and shared governance in the institution.
(D) Compensating part-time faculty for work done outside of the classroom relating to instruction, such as holding office hours.
(E) Strengthening and ensuring all students have access to student support services such as academic advising, counseling, and tutoring.
(F) Any other additional activities that improve instructional quality and academic outcomes for students as approved by the Secretary through a peer review process.

Second, you have to put any additional money back into education. Savings may not be spent elsewhere. Not even State money. So the Feds are now controlling the State use of its budget, even if the State is meeting all its obligations. Interesting. How long do you think that will last in court?

(3) PROHIBITION.—A State that receives a grant under this section may not use grant funds or matching funds required under this section—
(A) for the construction of non-academic facilities, such as student centers or stadiums;
(B) for merit-based student financial aid; or
(C) to pay the salaries or benefits of school administrators.

Oh for ____’s sake! Do we really think school administrators, the people who enroll students, who handle disciplinary issues, who manage dormitories, and a thousand other things, aren’t part of running a successful university? Is there some imaginary university where the kindly professor meets the students under the ol’ oak tree to impart knowledge, while they nibble their brown-bag lunches?

(f) Authorization And Appropriation.—There are authorized to be appropriated to carry out this section $47,000,000,000 for fiscal year 2016, and such sums as may be necessary for each of the fiscal years 2017 through 2025.

And the cost? $47B the first year, and whatever is necessary for the years to follow.

Conclusion

There you go. That’s Sanders “free college” plan.

It doesn’t sound quite as great to me when you look at the details as when you put it on a bumper sticker.

That reminds me–how are all those new coal mines doing?

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Time To Take A Stand

The news media and my Facebook feed are full of stories about the horrific mistreatment of families and small children at the border.

Children are dying of disease and neglect. One seven-year-old girl died of dehydration--she wasn’t given enough water to drink! A four-month old was separated from his family. Hundreds of people are packed into shelters built to hold a fraction of the number crammed in…the horror stories go on and on.

From Lawyers for Good Government, we learn that

The Trump administration argued in court this week that detained migrant children do not require basic hygiene products (like soap and toothbrushes) to be held in “safe and sanitary” conditions. Lawyers who recently interviewed detained children report that kids are living in “traumatic and dangerous” conditions – insufficient food and water, going weeks without bathing, kids as young as 7 years old being told to care for the babies and toddlers.

Our delusional and mentally-ill President has no intention of doing anything to ameliorate the humanitarian crisis he has created. In interviews, he insists Obama began the family separation policy (he didn’t–the only time his administration removed children from their families was when they were believed to be in danger) and simply denies what numerous reports have documented.

Meanwhile, rather than calling on Congress or all those self-proclaimed “Christians” to intervene, conservative apologists attack those who–like AOC–call these facilities what they clearly are: concentration camps.

There is no ambiguity about what is happening. The heartless people who are defending the documented abuse and inhumanity are telling the rest of us who–and what– they are.

“Fox & Friends”co-host Brian Kilmeade showed his support for President Donald Trump’s “zero tolerance” approach to border policy, adding that the migrant children who have been separated from their families“aren’t our kids.”

“Like it or not, these aren’t our kids,” said Kilmeade on Friday’s episode of the Fox News morning show. “Show them compassion, but it’s not like he’s doing this to the people of Idaho or Texas. These are people from another country and now people are saying that they’re more important than people in our country who are paying taxes and who have needs as well.”

Is this really what America has come to?

Are we really prepared to defend unforgivable and inhumane treatment so long as the objects of that treatment aren’t “our” kids? Are we content to be like the “good Germans” who wouldn’t personally have taken their Jewish neighbors to the camps, but who were quite willing to close their eyes and pretend not to see the atrocities around them?

This isn’t about immigration policy. Good people can disagree about border security, about the criteria for allowing migrants to cross the border, about the number of refugees America should resettle. Good people do not and cannot excuse callous, barbaric, inhumane treatment of children and families trying to escape desperate conditions–conditions that our country has some measure of responsibility for creating and that our ignoramus President has made worse by cutting off aid that would to some extent ameliorate the conditions they are fleeing.

This humanitarian travesty is being done in our name. And to add insult to injury, private prison companies are profiting from it. Big time.

For me, there is nothing worse than the feeling of powerlessness–the recognition of a great wrong that I feel helpless to address. Surely other people feel the same.

What would it take to organize a national strike? A day when only critically important workers (policing, hospitals, etc.) show up? Those of us for whom morality means caring for our fellow humans rather than fixating on other people’s genital activity need a way to tell our broken, pathetic excuse for a government–in Howard Beale’s famous words– that we’re mad as hell and we aren’t going to take it anymore. That we aren’t going to sit by while an American government perpetuates unforgivable behaviors in our name.

I’m open to other ideas, but we need some vehicle to express our collective outrage, and send a message. We can’t just avert our eyes.

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Not-So-Merry Christmas?

I keep remembering the line Yul Brynner used whenever he was faced with a conundrum in The King and I? “It’s a puzzlement.”

As Americans count down to the 2020 elections, those of us who view the Presidential contest as a critical referendum on the American Idea and the rule of law are torn. We want to stop this corrupt and incompetent administration from doing even more harm between now and then, but we also know that preventing the worst consequences of Trump’s madness will work in his favor.

Take the damage being done to the economy by his ham-handed imposition of tariffs.

As an article in the Washington Post recently put it,

There’s a case to be made that Trump has the upper hand in these trade disputes because the United States buys more from China and Mexico than those countries buy from the United States. To put it another way, China and Mexico need Trump economically more than he needs them.

But that’s just the raw economic calculation. Trump is also facing a campaign for reelection in 2020, and he’s banking on a strong economy to propel him to victory. There are already signs that Trump’s trade policies are making the markets and economy jittery, and the pain is likely to escalate if he doesn’t make some deals by September.

People who actually understand economics and trade policy (a category that clearly excludes Donald Trump) are warning that America’s economy is losing steam. Despite Trump’s fantasies, coal is dying, factories aren’t coming back and companies that are still here are pocketing their tax windfalls, not creating new jobs.

Tariffs are taxes on the American people. So far, those costs have been modest. As Trump and top White House officials frequently point out, inflation (a good gauge of price increases across the economy) has remained low, which helps explain why there hasn’t been widespread public revolt over the tariffs, except among farmers and some manufacturers who have been hit the hardest.

Experts who follow economic trends warn that the costs of Trump’s delusional “dealmaking” are likely to ramp up in August and September. That’s because he appears intent upon announcing new rounds of tariffs– thus dramatically increasing the costs Americans will have to pay for goods, and making it probable that people will notice that they, not China, are paying the tab for Trump’s version of trade policy.

August and September are when U.S. retailers import goods for the holiday shopping period. Retailers warn that If Trump’s tariffs are still in place then, “it will be nearly impossible not to pass some — if not all — costs on to consumers for holiday season 2019.”

Consider the numbers. At the start of the year Trump’s tariffs cost the typical family of four about $480 a year, according to calculations by the right leaning Tax Foundation and The Washington Post. Last month Trump increased tariffs on China, which lifted the cost for a typical family of four to $860 a year…If Trump moves forward with his other threat to put tariffs on all Chinese imports by the end of the summer, the cost would jump even higher — to more than $2,000 for a family of four.

And it’s not just higher costs. Retailing–and retail employment– is already on the ropes. As one columnist recently noted,

Last week, 661 firms — including major players such as Costco, Target and Hallmark — signed a letter pleading with the administration not to use tariffs as a cudgel in its efforts to address China’s trade abuses. The USTR has also received more than 1,600 written comments thus far, overwhelmingly negative.

These, like the USTR public hearings, echo what big retailers had already been warning investors and customers: Sweeping tariffs will stress already-thin profit margins and lead to layoffs. They will also raise prices for U.S. households by hundreds or thousands of dollars, wiping out the value of Trump’s tax cuts.

My only quibble with that letter is with the notion that the tax cuts had value…

So here’s the conundrum: Consumer spending is the backbone of the U.S. economy. If Trump continues with his “Tariff Man” antics, the economy will suffer, and the working poor, as usual, will bear the brunt of the pain.

On the other hand, other than appeals to racism, Obama’s economy is pretty much the only thing Trump has going for him.

Should good Americans root for a downturn that would be likely to ensure Trump’s defeat, even though it would cause pain for so many people? Or should we hope that sane policymakers can keep him from tanking the economy– thereby improving his election prospects?

It’s a puzzlement.

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Sex And The State

Indianapolis’ Pride Celebration gets bigger and better every year–this year, the parade was so crowded with people enjoying the lovely day and the multiple marchers and floats that the “usual subjects”–with their signs proclaiming the sinfulness of “homo” sex– almost escaped notice.

Those “usual subjects”–the scolds who come out of the woodwork to tell LGBTQ folks that God disapproves of them, and the “good Christians” who scream invective at women entering Planned Parenthood clinics–are reminders that Americans have always had a real problem with sex. Not just gay sex, either. Any sex.

Residents of more laid-back countries (no pun intended) have found both America’s excessive religiosity and famous prudishness puzzling, and both of those elements of our political culture are barriers to reasonable policymaking. Most of the country has finally recognized that statutes forbidding fornication, sodomy and the like didn’t prevent those behaviors, but simply allowed police who were so inclined to harass marginalized folks with what lawyers call “arbitrary and capricious” enforcement.

The gratifying disappearance of these silly statutes, however, doesn’t mean we Americans have lost our obsession with sex. The fights have simply moved to other venues, like abortion, transgender bathrooms and especially sex education policy, where “family values” warriors continue to insist that only abstinence should be taught in the classroom.

Sex education has been a controversial subject for decades as public school officials and parents have debated the best ways to help teenagers avoid unplanned pregnancies and sexually transmitted diseases. Not all states require schools to teach sex ed. But many states require sex education instructors to discuss or stress abstinence from sexual activity, with some schools offering abstinence-only programming, which urges kids to wait until marriage and often excludes information about contraceptives.

So-called “comprehensive” sex education programs teach students about abstinence, but (in a nod to hormones and reality) also teach about contraception, sexual health and how to handle unwanted sexual advances. Such curricula are gaining ground in some states.

In 2019, sex education continues to make headlines even as teen pregnancy rates continue to fall. Policymakers in Colorado, California and Alabama have pushed for big changes in the way sex education is taught there. In Colorado, a bill that would ban abstinence-only education in public schools awaits the governor’s signature. The legislation, which also requires that sex education be inclusive for students who are lesbian, gay, bisexual, transgender and questioning (LGBTQ), was “one of the most contentious battles of the 2019 legislative session,”according to the Colorado Times Recorder.

In Alabama–home of the recent law banning abortion even in cases of rape or incest– the state’s sex education law requires teachers to emphasize that “homosexuality is not a lifestyle acceptable to the general public and that homosexual conduct is a criminal offense under the laws of the state.” (A bill has been introduced that would change that requirement, but as this is written, it’s still on the books.)

As of 2016, abstinence was a required topic of instruction in states such as Arkansas, South Dakota and Texas…. 29 states, including Florida, Montana and Pennsylvania, did not require their sex education curricula to be based on medically accurate information. In some schools, teachers have been accused of inflating condom failure rates to discourage use.

I know that basing policy on evidence is out of favor in the Age of Trump, but the research is instructive: abstinence-only education results in higher teen birth rates. (And those “virginity pledges” that fundamentalist dads brag about? Researchers found that girls who took pledges were more likely to become pregnant outside of marriage when compared with girls and young women who did not take abstinence pledges.)

Facts are such inconvenient things.

I know it’s heresy, but maybe–just maybe–schools should teach kids medically-and-age appropriate information about their bodies, rather than inaccurate, incomplete or counterproductive information intended to mollify prudes and religious fundamentalists.

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What Trump Doesn’t Know Can Hurt You

One of the many things about support for Donald Trump that has bemused me is the seeming belief among those supporters–and for that matter, among many Americans who don’t support him–that experience in governing, or at least expertise about governance, is irrelevant to the Presidency.

These are people who would be very unlikely to trust a doctor who had neither gone to medical school or practiced medicine. They wouldn’t call a plumber who had never “plumbed.” Yet they confidently assert that anyone who’s run a successful business of any kind can run the country. (Leave aside, for the moment, the fact that Trump quite obviously didn’t run a successful business–sound businesses don’t repeatedly refuse to pay their vendors or go bankrupt with some regularity.)

In the past two years, people who do know something about governing, about the Constitutional framework constraining executive action, and about various aspects of policy have been appalled by Trump’s very evident ignorance of all such things.

His ignorance isn’t the biggest problem: no one who assumes the Presidency knows–or can know–the details involved in every policy decision a chief executive must make. We expect a President to surround himself (or herself) with expert advisers, to consult those experts, and learn from them.

We expect a President to know what he or she doesn’t know. The buffoon currently shaming the Oval Office not only doesn’t know what he doesn’t know, he very clearly has no interest in finding out.

Trump’s ignorance is dangerous in ways both more and less obvious.

Just one example:

I’ve recently come across several news reports about America’s dependence on elements that are collectively called “rare earth.” Rare earth metals and the alloys that contain them are critical for the manufacture of everything from fighter jets to numerous devices that people use every day– everything from computer memory, DVDs, rechargeable batteries, cell phones, catalytic converters, magnets, fluorescent lighting and many more. The use of rare earth elements in computers and cell phones has grown exponentially, as has their use in rechargeable batteries that power portable electronic devices such as cell phones, readers, portable computers, and cameras.

And most rare earth comes from China.

It is highly unlikely that our bull-in-a-China-shop (pun intended) knows anything about rare earth, America’s dependence on it, or China’s virtual monopoly on it. Not only does Mr. Tariff Man not understand how tariffs work or who pays them, he just as obviously has no idea how dependent the U.S. might be on goods we import from any country. (He has displayed abysmal ignorance of the complex interrelationship of American manufacturers and Mexico, or the existence of less dangerous tools for negotiating trade disputes.)

The U.S. has exactly one mine– Mountain Pass– that harvests rare-earth elements.

China dominates the global market for these materials and has been threatening to take them hostage in the deepening trade conflict. Just the suggestion that Beijing could starve American factories of essential materials has sent rare-earth prices soaring over the past month, with dysprosium oxide, used in lasers and nuclear-reactor control rods, up by one-third.

The linked article notes that China would have some problems implementing a ban on rare earth, “including the prospect of widespread smuggling and the likelihood of hurting countries that Chinese authorities may prefer not to alienate.” But the threat is still powerful.

Officials have begun contingency planning to accelerate production in the event of a Chinese cutoff, Rosenthal said. Though Mountain Pass could not fill all domestic needs, it could boost output of substances needed for oil refining and some specialized magnets.

Yet the mine’s role at the center of the U.S.-China faceoff over 17 elements with names such as neodymium, terbium and europium is not without irony.

Mountain Pass ships its main product — a powdery substance that looks like crushed cocoa — to China for processing before it is sold to Chinese customers. A Chinese rare-earths producer, Leshan Shenghe, holds a nonvoting 10 percent stake in the U.S. mine.

The people in the U.S. and Great Britain who want to defy globalization– who are screaming “stop the world I want to get off”–are too late. The world’s economies are interrelated and interdependent in millions of complex ways.

When policy is directed by an ignoramus who has absolutely no understanding of those complexities and dependencies, the consequences can be dire.

I don’t want my cavities filled by a plumber, and I don’t want a phony “businessman” created for reality television running my country.

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