Tag: oklahoma

School Choice Lawsuit Roundup

School choice advocates have been winning in the halls of state legislatures and in the court of public opinion, so opponents have taken to the courts of law. Since the U.S. Supreme Court ruled in Zelman v. Simmons-Harris (2002) that school vouchers are consistent with the First Amendment’s Establishment Clause, opponents of choice have been scrambling to find novel reasons to challenge school choice programs. Here’s a brief summary of school choice lawsuits around the nation:

1) In Louisiana, the U.S. Department of Justice has sued to halt the state’s school voucher program, arguing that it hurts the desegregation effort. The DOJ’s already weak case was further undermined by a new study released today showing that school choice actually improves integration. Since 90 percent of the voucher recipients are black, the DOJ’s lawsuit would have the effect of keeping low-income blacks from attending the schools of their choice.

Earlier this year, Louisiana’s state supreme court ruled that the voucher program was unconstitutionally funded, but otherwise left the program intact. The governor and state legislators adjusted the funding mechanism in response.

2) Two days ago, a group of activists in Oklahoma sued the state over its special needs voucher program, arguing that it violates the state constitution’s ban on using public funds at religious schools. Last year, the state supreme court tossed out a challenge to the program by public school districts, ruling that they did not have standing since they are not taxpayers.

3) On the same day, the Arizona Court of Appeals ruled unanimously that the state’s education savings account program, the first in the nation, is constitutional. Anti-school choice activists had argued that it violates the state constitution’s ban on publicly funding religious schools. The court held that students are the primary beneficiaries and that any “aid to religious schools would be a result of the genuine and independent private choices of the parents.” The decision will likely be appealed to the state supreme court.

Voting in 2012, Libertarian and Otherwise

Somehow, election results continue to trickle in, and David Wasserman of the Cook Political Report continues to update his spreadsheet of the national popular vote. At this point, he shows President Obama reelected with 50.86 percent of the vote to Mitt Romney’s 47.43 percent. For whatever reason, the late-arriving results all seem to widen Obama’s lead.

The total vote appears to be down by almost 4 million votes from 2008, and Obama has received about 4.7 million fewer votes than he did in his first campaign. Romney received slightly more votes than John McCain did.

Libertarian Party nominee Gary Johnson received 1,265,000 votes, according to Wikipedia, whose mysterious editors show the votes for every candidate. That’s the most any Libertarian presidential candidate has ever received. It amounts to 0.99 percent, just shy of Ed Clark’s 1.06 percent in 1980. If Johnson had been on the ballot in Michigan and Oklahoma, he would surely have broken 1 percent, though he still probably wouldn’t have exceeded Clark’s percentage. (Michigan and Oklahoma haven’t been very good states for Libertarian candidates.) Johnson’s best states were New Mexico, where he served two terms as governor, followed by Montana and Alaska.

The Libertarian Party reports that seven Libertarian statewide candidates in Texas and Georgia received more than a million votes.

Don’t forget to read the new ebook The Libertarian Vote: Swing Voters, Tea Parties, and the Fiscally Conservative, Socially Liberal Center, which discusses how the millions of libertarian-leaning voters in America tend to vote. (It does not have 2012 results.)

California Officials: ObamaCare ‘Exchange’ Will Hike Premiums up to 25%

California is one of the few states charging ahead on establishing one of ObamaCare’s health insurance “exchanges.” According to the Los Angeles Times:

California insurance officials have expressed concern about substantial rate hikes for some existing policyholders going into the exchange.

Under a new rating map approved by state lawmakers, the Department of lnsurance estimated that premiums for similar coverage could increase as much as 25% in West Los Angeles, 22% in the Sacramento area and nearly 13% in Orange County.

California officials have floated the idea of legislating lower prices. One way would be to throw West Los Angeles and Orange County into the same risk pools. That might reduce premiums in West L.A., but only by increasing premiums in Orange County. With a few simplifying assumptions, premiums in both  West L.A. and the O.C. could rise by 19 percent. An alternative would be to cap premium increases. One state official proposes a cap of 8 percent. But that would just be an implicit form of government rationing. If insurers cannot charge premiums that cover their costs, they will cover fewer services.

If Oklahoma prevails in its lawsuit against the IRS, or if any similar plaintiffs prevail, California will look pretty silly for charging forward with an Exchange. California will have imposed on its employers an unnecessary tax of $2,000 per worker – a tax that California employers can avoid by relocating to states that have not created an Exchange. It will also have unnecessarily exposed 2.6 million California residents to ObamaCare’s individual mandate – i.e., a tax of $2,085 on families of four earning as little as $24,000 per year, which those residents can likewise avoid by relocating to another state.

Watch this space for development.

Oklahoma Challenges Obama’s Illegal Employer Tax

Yesterday, the attorney general of Oklahoma amended that state’s ObamaCare lawsuit. The amended complaint asks a federal court to clarify the Supreme Court’s ruling in NFIB v. Sebelius, but it also challenges an IRS rule that imposes ObamaCare’s employer mandate where the statute does not authorize it: on employers in the 30 to 40 states that decline to implement a health insurance “exchange.”

Here are a few excerpts from Oklahoma’s amended complaint:

The Final Rule was issued in contravention of the procedural and substantive requirements of the Administrative Procedures Act…; has no basis in any law of the United States; and directly conflicts with the unambiguous language of the very provision of the Internal Revenue Code it purports to interpret…

Under Defendants’ Interpretation, [this rule] expand[s] the circumstances under which an Applicable Large Employer must make an Assessable Payment…with the result that an employer may be required to make an Assessable Payment under circumstances not provided for in any statute and explicitly ruled out by unambiguous language in the Affordable Care Act.

Plaintiff believes…that subjecting the State of Oklahoma in its capacity as an employer to the employer mandate would cause the Affordable Care Act to exceed Congress’s legislative authority; to violate the Tenth Amendment; to impermissibly interfere with the residual sovereignty of the State of Oklahoma; and to violate Constitutional norms relating to the relationship between the states, including the State of Oklahoma, and the Federal Government.

As for the latest claim to be made in defense of the IRS rule – that an Exchange  established by the federal government under Section 1321 is an Exchange “established by the state under Section 1311” – the complaint says this:

If the Act provides or is interpreted to provide that an Exchange established by HHS under Section 1321(c) of the Act is a form of what the Act refers to as “an Exchange established by a State under Section 1311 of [the Act],” then Section 1321(c) is unconstitutional because it commandeers state governmental authority with respect to State Exchanges, permits HHS to exercise a State’s legislative and/or executive power, and otherwise causes the Exchange-related provisions of the Act…to exceed Congress’s legislative authority; to violate the Tenth Amendment; to infringe on the residual sovereignty of the States under the Constitution; and to violate Constitutional norms relating to the relationship between the states, including the State of Oklahoma, and the Federal Government.

Oklahoma does not yet list any private-sector employers as co-plaintiffs, but that may change.

Since this IRS rule also unlawfully taxes 250,000 Oklahomans under the individual mandate – a tax that in 2016 will reach $2,085 for a family of four earning $24,000 – the attorney general has an awful lot of individual Oklahomans that he could add to its plaintiff roster.

Jonathan Adler and I first wrote about President Obama’s illegal taxes on employers in the Wall Street Journal and again in the USA Today. Since parts of those opeds have been overtaken by events, I recommend reading our forthcoming Health Matrix article, “Taxation Without Representation: The Illegal IRS Rule to Expand Tax Credits Under the PPACA.” Yes, all 82 pages of it.

Coburn Report on Federal Job Training Programs

Oklahoma Republican Sen. Tom Coburn released a report today on federal job training programs in his state. Here’s what Coburn’s intrepid staff found: duplication, waste, ineffectiveness, and stupidity. In short, the report is another example of how Washington is better at creating problems than solving them.

The report’s most important takeaway is that providing job training assistance is not a proper function of the federal government:

The convoluted mess of job training programs exists, not because of any well-meaning Oklahoman, but because Congress created a system that is doomed to fail. Employers and communities know best what skills are needed for a successful workforce, not bureaucrats—despite good intent.

What part of this scenario makes sense: Congress taxes Oklahoma employers at record rates, to fund job training programs created by politicians in Washington, only to send taxpayer money back to Oklahoma with rules and regulations that tie the hands of state and local governmental and business and ignore the unique economic and demographic factors of their communities. This scenario is the reality of the employment programs operated by federal government.

The first step Congress took in the wrong direction was a step out of the Constitutional boundaries set forth by our founders. Providing employment and training services is not a role for federal government at all, according to the enumerated powers listed in the U.S. Constitution. [Emphasis in original.]

Of course the scenario doesn’t make any sense, but as a Cato essay on federal employment and training programs notes, federal policymakers are fixated on “doing something”:

More fundamentally, federal employment and training programs don’t fill any critical economic need that private markets don’t already fill. Instead, the federal programs provide an opportunity for policymakers to show that they are “doing something” to help the labor market. To policymakers, federal job training sounds like something that should boost the economy, but five decades of experience indicate otherwise.

Yeeow? Ayipioeeay?

And when we say
Yeeow! Ayipioeeay!
We’re only sayin’
You’re doin’ fine, Oklahoma!
Oklahoma O.K.                                  – Oscar Hammerstein, Oklahoma

And when you’re not doing fine?

I was asked recently by Brandon Dutcher of the Oklahoma Council of Public Affairs to investigate the relationship between spending and student achievement in his state, and to chart the results as I’ve done for U.S. school spending and student achievement. Here it is:

For reasons I’ve never understood, the NAEP test results for students at the end of high-school have never been broken down by state–they’re only reported nationwide–so for the achievement measure I used the ACT. Oklahoma’s participation rate in the ACT is high (between the mid 60s and low 70s), hasn’t fluctuated wildly over time, and is not significantly correlated with its actual scores (I ran a regression to find out), so it’s a reasonable measure. I’ve only carried it back to 1990 because the ACT was redesigned in that year, making the scores discontinuous.

When they see the chart, maybe Oklahoma taxpayers can say:  “Owwww! AiYaiYai!”