Dollars and Sense

We hear a lot of talk from the Governor and legislators about the hard decisions being forced by tough fiscal times, and on this one, I’m sympathetic. When there isn’t enough money to do the things we need to do, finding the least painful cuts can be an incredibly difficult task.

Of course, it is made infinitely more difficult when you begin with a decision to keep your tax rates lower than those in all of the surrounding states.

So, where does HB 1000–our budget bill–aim Mitch the “Blade’s” knife? At education and social services funding. A few examples:

  • The Family and Children’s Fund is being cut by 219 million dollars (with no explanation or justification offered).
  • The 2011 appropriation for Healthy Families, Indiana’s much-touted health insurance program for poor Hoosiers (we don’t need no stinking federal healthcare reform!!) is being cut by 86%, despite the fact that there is a waiting list and the program is turning people away.
  • Health coverage under the CHIP program is also cut. Approximately 7000 eligible children will not be covered–despite the fact that over 75% of the costs of that coverage would be paid by the federal government, and the rest is supposed to be paid out of the proceeds of the tobacco lawsuit settlement.
  • Similarly, hospital care for the indigent is being cut by approximately ten million dollars–but the State will lose twice that amount in Federal Medicaid Leverage dollars.

I could go on and on, but you see the pattern. Mental health drugs are being restricted, making it more likely we’ll pay more through the criminal justice system. Public mass transit–the lack of which is already a huge drag on efforts at job creation–is cut by 15 million. Numerous cuts to K-12 and transfers to Charter schools belie all the rhetoric about improving education–while it is true that simply “throwing money at the problems” won’t solve them, it is equally true that starving public education will only make those problems worse.

I don’t want to minimize the difficulty of funding state government in tough times. But I am struck by three themes that run through these budgetary decisions: the cuts made hurt those who have the least “voice” in our political system (i.e., those who have no lobbyists at the statehouse, and whose displeasure is least likely to be felt at the polls); many of these cuts will actually cost us more in the not-so-long run, making their fiscal prudence highly questionable; and our adamant refusal to look at both the costs and income sides of the ledger not only makes this job much harder than it needs to be, it also benefits the well-to-do at the expense of our poorest citizens.

That doesn’t make either economic or moral sense.

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The Center Will Not Hold

I attended a conference on Media Reform last weekend, and came back pretty depressed. Although there were several thousand people in attendance who were determined to save journalism–not necessarily newspapers, or broadcast news, but the essential watchdog function that led our Founders to give Constitutional status to the press–it’s abundantly clear that right now, no one has a clue how to provide the public with the news democratic societies require.

In place of widely-read, credible news media serving the general public, we have “niche news” tailored to our personal prejudices and politics. Thanks to consolidation and corporate ownership focused on the bottom line to the exclusion of journalism’s social mission, we have more “human interest” and “self-help” stories and less real news; more “opinion” and less fact-checking. That we have ever-more dysfunctional government is not a coincidence.

In fact, America seems to be actively dismantling the institutions that create unum from our pluribus: those places in our society that knit individuals into a public.

I’ve written here often about our diminished constitutional literacy, and the likely consequences of that in a diverse country that depends for its very identity upon a common understanding of our form of government.

Add to that constitutional illiteracy the utterly ferocious attacks on public education we are experiencing. Whatever the defects in our public schools, they are and have been the institution that–as Benjamin Barber eloquently put it–is constitutive of a public. When we privatize education, we treat it as if it is a consumer good–skills we are “buying” so that our children can compete economically. But public education should be more than that; it should respect our diverse private identities while providing a common social umbrella.

When we no longer know our common history or political structure, when we no longer meet each other in public schools, when each of us gets our news from different sources operating out of different political and social realities, what will Americans have in common? What will make us a public?

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Political Fundamentalism

I had lunch today with a delightful young woman who, among other things, is active with the League of Women Voters. During our discussion, she remarked (rather plaintively) that she found it difficult to understand why the League was so often viewed as a “liberal” organization. “We don’t take positions until we have studied them carefully,” she said. “We gather evidence for two years, and assess it carefully, and base our position on that evidence.”

There you go! Basing positions on evidence is what is now considered liberal.

The conversation reminded me of an explanation from my book God and Country: America in Red and Blue. I was looking at the paradigm shift caused by the Enlightenment, and the profound effect that shift had on our Constitution.

When Francis Bacon insisted that laws governing the material world could be inferred through careful observation (a notion that, for contemporary Americans, is an unremarkable commonplace), it had enormous implications for the existing, traditional, deductive methods of understanding reality. The “old learning,” had begun with an a priori “given,” the bible, the absolute truth of which was unquestioned. The primary goal of Puritan education was thus directed at biblical understanding; one began with the text and learned—deduced—how to interpret it. Proper interpretation required the application of time-tested methods of exegesis and analysis, and instruction in historical context and meaning (mostly, what important theologians of the past had decreed to be correct understandings and approaches). One started with Truth, and education was the process of learning to apprehend and defend that Truth. Bacon changed the fundamental order of things by teaching that education must begin with observation of natural phenomena.

We are a country that was founded on a radical notion: evidence matters. Today, however, those of us for whom evidence still matters are dismissed as “liberals” by the political equivalents of the Puritans. Like those Puritans, our ideologues (of every stripe) begin with their “truth,” and look for evidence to support it and ways to impose it.

No wonder we find it so hard to communicate.

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Who Do They Work For?

Theoretically, members of Congress work for us–for “we the people.”

Whatever the theory, it’s clear that many of them think they work for those whose campaign contributions put them in office. To take just one recent example, ask yourself who would benefit from Paul Ryan’s much ballyhooed new budget proposal to replace Medicare with subsidies allowing the elderly to purchase insurance in the private marketplace? It doesn’t take a genius to answer that one: the beneficiaries of those subsidies would be the insurance industry.

I’m sure it is simply coincidental that insurers are among the most generous of campaign contributors.

As the Congressional Budget Office analysis pointed out,

A private health insurance plan covering the standardized benefit would be more expensive currently than traditional Medicare. Both administrative costs (including profits) and payment rates to providers are higher for private plans than for Medicare. Those higher costs would be offset partly but not fully by savings from lower utilization stemming from two sources. First, private health insurers would probably impose greater utilization management than occurs in Medicare. Second, private plans might restrict enrollees’ ability to purchase supplemental insurance plans; enrollees would thus face higher out-of-pocket costs than they do in Medicare, and that increased cost sharing would encourage lower utilization. On net, for a typical 65-year-old in 2011, CBO estimates that average spending in traditional Medicare will be 89 percent of (that is, 11 percent less than) the spending that would occur if that same package of benefits was purchased from a private insurer.

In other words, this plan would cost the government more money. To the extent there would be any “savings,” they would come from shifting costs to the individuals covered.  Protecting the disabled and elderly from those costs, of course, was the original purpose of Medicare. Essentially, this program would screw over the recipients and give a windfall to the insurance companies.

What is amazing to me is how utterly bald-faced this proposal is. Have we really convinced the American people that giving more and more to the “haves” at the expense of the most vulnerable is in the national interest? I was never a fan of the Robin Hood theory of government–robbing the rich to give to the poor–but I am appalled by the current “reverse Robin Hood” ideology, where we rob the poor to benefit the rich.

Well, we certainly know who Ryan works for. And it isn’t us.

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