Missouri Legislators Decline to Name an Official State Dog

Posted on by Sarah Brodsky

The Missouri House of Representatives defeated the bill that would have inducted the Newfoundland breed and Seaman, the dog that accompanied Lewis and Clark, into the list of Missouri’s official state symbols.

Some state representatives objected to an official honor for Seaman because they thought there wasn’t enough evidence that he traveled through this state:

“If we’re going to have an official dead dog for the state of Missouri, we should have some evidence that the dog actually went to Missouri,” said Rep. Vicki Englund, D-St. Louis County.

Others commented that, now that Missouri has plenty of official symbols, “enough is enough.”

I’m happy with the results of the Missouri House’s vote, and I hope that Newfoundland fans will find ways to promote the breed outside of government. It just isn’t practical for the General Assembly to confer honors on everyone’s favorite animals. At some point, enthusiasts have to step back from lobbying the state and take their message directly to their fellow Missourians.

Teacher Union Advocates Get Schooled in Debate

Posted on by Dave Roland

Intelligence Squared is a public charity dedicated to providing a public forum for intelligent discussion on a wide range of important and/or controversial issues. They host Oxford-style debates in which teams of three argue opposing sides of a motion. Before the debate begins, the live audience members register their opinions on the topic, and they do the same after the debate so that, in effect, observers can discern which side’s arguments the listeners found most persuasive.

On March 16, the topic up for debate was whether teacher unions should be blamed for failing public schools. Arguing that teacher unions should not be blamed were Randi Weingarten, the president of the American Federation of Teachers; Gary Smuts, a superintendent of a successful public school district in California; and Kate McLaughlin, an elementary school teacher in Lowell, Mass. Arguing that unions should be blamed were Dr. Terry Moe, a senior fellow at the Hoover Institution at Stanford University; Rod Paige, former U.S. Secretary of Education; and Larry Sand, a teacher from Los Angeles.

The debate itself is incredibly interesting and well worth watching for anyone interested in the topic of education reform. Although the details of the debate are too numerous to go into here, I will give you an idea of how it turns out.

Before the debate, 43 percent of the audience said that unions were to blame, 24 percent said they were not to blame, and 33 percent were undecided. After the debate, 68 percent said that unions were to blame, 25 percent said they were not to blame, and only 7 percent remained undecided. In short, only one percent of the audience’s undecideds were persuaded by the union advocates, while 25 percent were persuaded by the union’s detractors.

Columbia Board of Education Candidates Discuss Cafeteria Food

Posted on by Sarah Brodsky

The Columbia Daily Tribune asks school board candidates which improvements they would like to see in school lunches. One candidate mentions local food in his response:

Nutritional Services is working with vendors to provide food and educational opportunities from local food producers and farmers to reduce the impact CPS has on the environment and to educate students about where their food comes from.

The assertion that local food is superior for environmental reasons comes up often in local food debates. To understand why districts should not conflate local food with environmentally friendly food, I recommend reading Caitlin Hartsell’s excellent post about why growing food closer to consumers is not always better.

In addition to in his claim that local food is better for the environment, the candidate says that purchasing food locally will teach students where their food comes from. I don’t know how he expects the food to do that. From the students’ point of view, food from Missouri looks the same as food from Illinois or food from Indiana. Of course, teachers could point out to students where the food originated from, and they could conduct lessons on where the food was cultivated and harvested — but they could do that just as well if the food came from a different state. In fact, if the place where cafeteria food is grown is to become a subject of study, it might be better to buy food from a distance. That way, students can learn about a place with which they wouldn’t otherwise become familiar, instead of focusing their local area, which they already know something about from experience.

This Just In: Health Care Legislation Passed by Congress Has Unintended Consequences

Posted on by Charis Fischer

On Friday, U.S. Reps. Henry Waxman (D-Calif.) and Bart Stupak (D-Mich.) sent a letter to AT&T and several other companies requesting that they verify that the health care bill’s passage will indeed cost the corporations additional expenses. This came after AT&T, which employs 9,000 people in the St. Louis area, said it would record a $1 billion non-cash charge during the first quarter of 2010 because of the tax changes associated with the bill. Under the new law, companies will continue to receive a tax-free subsidy of 28 percent on programs to provide their employees with prescription drug benefits, but they will no longer be able receive the double benefit of deducting the value of the subsidy on their taxes. AT&T said that they will evaluate possible changes to the active and retiree health care benefits offered by the company.

So, let’s recap: The United States Congress passed a bill that makes tax changes. Those tax changes will by design affect corporations’ balance sheets and generate more revenue for the government. When corporations inform the public of these effects, members of Congress request verification of the accuracy of these effects, merely because they contradict what the legislators expected and said would happen.

In the letter, the congressmen state that the bill is “designed to expand coverage and bring down costs,” which makes AT&T’s claims “troubling.” The key word here is “designed.” The legislation may indeed have been designed with the intention of reducing costs, but that doesn’t mean it will actually have that effect when implemented. The letter also cites reports from the Congressional Budget Office and the Business Roundtable projecting that premiums could decrease during the next six to 10 years as a result of the reforms. The report by the Business Roundtable says that “if enacted properly, the right legislative reforms could potentially reduce [premiums] by more than $3,000 per employee” (emphasis added). So, this depends on the right reforms being enacted in the proper way (which we know almost never happens), and then premiums could potentially be reduced. The congressmen neglect to mention in their letter that this report also has a section titled “Risks Could Jeopardize Cost Reductions,” which points out that revenue raisers such as a “high-cost” tax could make health insurance costs worse for affected plans and employees.

The worst thing about this is that the government is asking a private company to explain its accounting, something they have no authority to demand. Beyond filing their taxes accurately, AT&T has no obligation to the government to explain itself, only an obligation to its shareholders. The shareholders are perfectly capable of “verifying” the company’s financial information on their own. The congressmen’s request that AT&T justify the increase in expenses reflects the apparent unwillingness of many legislators to acknowledge the unintended consequences of their legislation.

You Have Three Years to Understand the New Health Care Act

Posted on by Alyssa Curran

The Patient Protection and Affordable Care Act was signed into law by President Barack Obama last week, but that won’t stop opponents from continuing to try to shoot it down, or at least shoot holes in it. If you have ever tried to read the provisions of the bill, you know that it is excessively lengthy and wordy, requiring patience and a certain level of commitment to read through in its entirety. Bill sponsors claim the legislation will ensure health care coverage for the 32 million Americans currently living without it, and provide more affordable access to health care. The most central provision, however, is that Americans will be required to purchase health insurance policies.

The signing of the bill has not ended the debate. In fact, it may only be the beginning. House Republicans have already begun fighting the bill, and some have suggested that the Supreme Court may overturn the bill because it violates constitutional provisions. Dave Roland, a Show-Me Institute policy analyst, has written about the potential legal pitfalls that may be faced by the requirement to purchase health insurance.

More information about the final provisions of the bill will undoubtedly become available to the public in the coming days, so that we may better grasp what exactly the bill entails. However, it may well be shot down before it is scheduled to take effect in 2014. We have three years to really understand the changes this legislation will bring.

As Harvard economics professor Jeffrey Miron pointed out at his Obamanomics lecture last week, such intense conflict could be a good thing for the American people. This butting of heads can lead to gridlock, which can help prevent either side from getting everything it wants. Taking into consideration all of the debate and conflict initiated by the bill so far, it may look completely different by the time 2014 rolls around.

The Costs of Remedial Education

Posted on by Caitlin Hartsell

A decade ago, education expert Dr. Jay P. Greene published a study for the Mackinac Center for Public Policy in Michigan about the direct costs of developmental (or remedial) education for colleges and industry. His conservative estimate then was that developmental education cost Michigan an astounding $601 million each year, and cost the entire United States $16.6 billion.

His figure does not take into account intangibles like lost productivity, college classes that must be taught at a lower level of comprehension, loss of human capital and some mechanization costs that are necessary to circumvent the lack of skill within the workforce (like installing cash registers that automatically dispense change).

The numbers tell a troubling story about the state of public education. The Department of Elementary and Secondary Education in Missouri alone had an allocation of $5.4 billion in 2010; some school districts spend as much as $22,000 per student. Clearly, not all of this money translates into higher educational outcomes. (See below for a map of school district spending per student created by Audrey Spalding.)

Achieving the Dream, a research group focused on improving community college students’ educations, reported that 60 percent of community college students took a developmental course, but that the number of students in need of these courses was undoubtedly higher. Community colleges tend to absorb the majority of remedial class costs, because they often serve as a bridge from high school to a four-year institution.

Community colleges in Missouri received $148,377,417 in appropriations for 2010. How much of this is devoted to remedial education? Michigan colleges devoted an estimate of between 6 to 33 percent of their budgets on remedial courses; if Missouri colleges are at all similar to that, this entails a substantial amount of money being devoted to teaching skills like reading, algebra, and trigonometry that should have been learned in high school.

In February of this year, the agenda for the Coordinating Board of Higher Education created a new Developmental Education Data and Policy Task Force (DEDPT) to quantify this problem in Missouri. Its stated purpose:

Too many freshmen (both traditional and nontraditional) are not adequately prepared for collegiate work.  As a result, substantial numbers of entering students are forced to take remedial coursework to address shortcomings in their preparation and to achieve mastery of the knowledge and skills needed to be successful college students. […]

The DEDPT was established to work with MDHE staff to understand better the variation in definitions used by different institutions and sectors and to make recommendations for uniform data definitions about developmental students and coursework. This work will better position Missouri to implement strategies to reduce the need for remediation and shorten time-to-degree.

The task force will bring clarity to the true scope of the inadequate preparation being imparted by the public schools in Missouri. This is a good first step, but beyond just mapping the problems, immediate steps can be taken to address these concerns and improve education before the college level. For example, a Show-Me Institute study showed that charter schools have been shown to increase competition and improve educational outcomes. At any rate, Missouri and states across the country are spending far too much money on education for such a large group of students to graduate without acquiring basic skills.

(Jay Greene spoke last month in Kansas City at a Show-Me Institute event about education reform. The audio of his speech is now available on the Show-Me Institute website.)

Missouri’s Tax Freedom Day Falls on April 4

Posted on by Christine Harbin

Today, the Tax Foundation released its annual Tax Freedom Day Special Report. According to the foundation’s calculations, Missouri’s “Tax Freedom Day” in 2010 falls on April 4. This is the day on which taxpayers will have earned enough money to pay their tax obligations at the federal, state, and local levels for 2010.

Source: Tax Foundation”
Source: Tax Foundation

Above is a table of Missouri and its border states taken from the report. It indicates that residents of Missouri enjoy a lower tax burden than residents of Illinois, Kansas, and Nebraska. Residents of Missouri have the same tax burden as residents of Iowa, but they have a greater tax burden than residents of Arkansas, Kentucky, and Tennessee.

A Victory for Doctors and Patients Alike

Posted on by Charis Fischer

Last week, the Missouri Supreme Court ruled on the case Klotz v. Shapiro, which challenged the 2005 tort reform legislation and its $350,000 cap on non-economic damages. The court unanimously declared that state caps on non-economic damages cannot be applied retroactively, but did not declare the caps themselves unconstitutional. This is a big victory for both doctors and patients in Missouri, which is one of several states in which caps on non-economic damages have been challenged in the courts. Just the day before this decision came from the Missouri Supreme Court, the Georgia Supreme Court unanimously overturned the pain and suffering caps that were implemented in 2005. Earlier this year, the Illinois Supreme Court also struck down a law that provided for such caps. We are lucky that Missouri did not follow suit.

In 2004, the Congressional Budget Office conducted a review of nine studies that looked at the effects of tort reform. The review notes that studying tort reform is difficult because of the many types of reform and the issue of controlling for differences between states, but it does present some evidence in favor of imposing caps on non-economic damages. Of the three studies that examined this specific type of reform, two found that premiums declined significantly for at least some insurance lines (the other one found no significant effect). These three studies also found that insurers’ profitability increased after the imposition of caps. Contrary to what some politicians may have you believe, this is a good thing. Health insurance profit margins are typically about 6 percent, give or take a few points, which is very low compared to other forms of insurance. Increased profitability for health insurance companies allows for more firms to survive and compete for business, which will drive down costs and make insurance more affordable.

Opponents of caps on non-economic damages would probably point to this same CBO study, which also points out that malpractice costs account for less than 2 percent of health care spending. But this does not take into account the amount of defensive medicine that is practiced by physicians on a daily basis. According to this Gallup poll of 462 randomly selected U.S. physicians, one in four health care dollars is spent on defensive medicine. The study defined defensive medicine as “the practice of diagnostic or therapeutic measures conducted primarily not to ensure the health of the patient, but as a safeguard against possible malpractice liability. This may include tests, prescriptions, hospitalizations and referrals that may not be medically necessary, but are viewed as providing protection from a potential lawsuit.”

As demonstrated by this survey, this is a very real phenomenon. For example, a young female who complains of frequent headaches might get a brain MRI to rule out a tumor, even though she is young and has minimal risk factors. The only way to legally and definitively say that there is no tumor is by using an MRI, even though clinical suspicion is low and does not warrant the scan. So in a case like this (a real example provided to me by a medical student), legal implication trumps clinical judgment, and the unnecessary tests that result then drive up the cost of health care. Caps on non-economic damages mean that doctors can reduce the amount of defensive medicine they practice, because they know they’re not subject to the arbitrary determinations of juries about how much a plaintiff may deserve in compensation. They can instead focus on using their clinical training to make the proper diagnoses and do their jobs as doctors.

Another tangible benefit of imposing caps on non-economic damages is the increased physician supply that occurs as a result. A study published in 2005 looked at the impact of caps on non-economic damages from 1985 to 2000, and concluded that caps increased the per-capita supply of physicians by 2.2 percent relative to states without caps (another study put this number at 2.4 percent; these studies were summarized by the American Medical Association in this report). Missourians will therefore have greater access to care as a result of the court’s decision in this case.

Unfortunately, because the court did not specifically invalidate the plaintiff’s other complaints about the 2005 tort reform bill’s supposed unconstitutionality, the door is open for more challenges in the future. Let us hope that any such challenges are rejected.

Political Party Symbols and Voter Cues

Posted on by David Stokes

Prime Buzz over at the KC Star has a story from the AP about a proposal to eliminate the party symbols from our ballots in Missouri. When I first read the headline, I thought the idea was to remove the words “Republican” or “Democrat” or “Libertarian” from the ballot and expect people to remember who was affiliated with which party. After a full reading, though, it appears that the proposal only entails taking away the pictures of the elephant or donkey that commonly symbolize the major parties. (Question: What is the symbol of the Libertarian Party? I don’t know, but it should be a cat with a lasso around it.)

Removing the party symbols would hardly be a disaster, but I still don’t support it. Simply put, such symbols are an easy and simple way to provide people with voting cues, and this helps people cast a more informed vote. In this instance, the symbols may only be a very minor cue that only provide additional information to a few people, but it is still a cue — and one with negligible costs, at that. For a more detailed analysis of why party labels improve voter information, check out the op-ed I wrote last year about Franklin County’s charter proposal to move toward nonpartisan elections. The overall proposal for Franklin County was fine, but the idea to move to nonpartisan elections was bad enough to rescind my support for the entire proposal.

Thanks to that reliable elephant Combest for the link.

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