Tag: Senate

School Choice Going, Going, Gone Bipartisan (In Some States)

The USA Today takes note of the fact that support for school choice is growing among Democratic, often black, politicians:

While vouchers will likely never be the clarion call of Democrats, they’re beginning to make inroads among a group of young black lawmakers, mayors and school officials who have split with party and teachers union orthodoxy on school reform. The group includes Sacramento Mayor Kevin Johnson, Newark Mayor Cory Booker and former Washington, D.C., mayor Anthony Williams.

I’d only add that this broadening support is hardly limited to black Democrats, and that support for education tax credits is spreading even more quickly among Democrats. And while choice might never become a Democratic “clarion call,” it just might become the new consensus among serious education reformers in both parties.

For instance, a Democrat-controlled and, I assume, mostly white legislature in Rhode Island passed a donation tax credit. And Democratic governor and legislature in Iowa raised their tax credit dollar cap by 50 percent in 2007. The paper mentions black mayor Corey Booker’s support for school choice in New Jersey, but the white, former Democratic state party chair, and current state Senator Ray Lesniak is also pushing for a donation tax credit bill.

The model case is Florida. When the Florida legislature passed its education tax credit program to fund private school choice in 2001, only one Democrat supported the measure. Last year, the state legislature expanded the program with the votes of one third of statehouse Democrats, half the black caucus and the entire Hispanic caucus.

In the past few weeks, nearly a third of Senate Democrats and half of House Democrats voted to significantly expand the program’s revenue base. Virtually all Republicans did the same, and Republican Governor Crist is expected to sign the bill soon. In all, 43 percent of state Democratic legislators in Florida voted in favor of education tax credits.

The toothpaste is out, and the teachers unions can’t put it back in with all the dues money in the world.

Now Is Not the Time to Reduce Credit Card Availability

With the House having passed credit card legislation and the Senate scheduled to take up its own bill this week, one questions keeps coming back to me: What’s the hurry?

We are in the midst of a recession, which will not turn around until consumer spending turns around—so why reduce the availability of consumer credit now? And the Federal Reserve has already proposed a rule that would address many of Congress’ supposed concerns. The Fed rule will be implemented July 2010. Were Congress to get a bill to the president by Memorial Day, as he has asked, the Federal Reserve and the industry still couldn’t implement it before maybe January, if they were lucky.

Congress should keep in mind that credit cards have been a significant source of consumer liquidity during this downturn. While few of us want to have to cover our basic living expenses on our credit card, that option is certainly better than going without those basic needs. The wide availability of credit cards has helped to significantly maintain some level of consumer purchasing, even while confidence and other indicators have nosedived.

It was the massive under-pricing of risk, often at the urging of Washington, that brought on our current financial market crisis. To now pressure credit card companies not to raise their fees or more accurately price credit risk, will only reduce the availability of credit while undermining the financial viability of the companies, ultimately prolonging the recession and potentially increasing the cost of bank bailouts to the taxpayer.

As Treasury Secretary Timothy Geithner has repeatedly said, some of the biggest credit card issuers will not be allowed to fail (think Citibank, American Express, Capital One, KepCorp) should they suffer significant losses to their credit card portfolios. Will taxpayers ultimately be the ones covering those losses?

Congress should also further examine the wisdom of restricting credit to college students under the age of 21. Outside of the obvious age discrimination, why treat adults between the ages of 18 and 21 any differently from those above 21? The basic premise of college is making sacrifices today in order to have a wealthier tomorrow—accordingly being able to borrow against that better tomorrow should be an option for any college student. Just as some small number of college students don’t benefit from college, some don’t benefit from credit cards, but throwing the “baby out with the bathwater” hardly seems the idea solution.

Jim DeMint’s Freedom Tent

Sen. Jim DeMint (R-SC) has been a leader in the fight for fiscal responsibility in Congress. He’s even led on issues that many elected officials have shied away from, such as Social Security reform and free trade. Recently he said that he would support Pat Toomey over Arlen Specter in a Republican primary, which may have prompted Specter’s party switch. DeMint was widely quoted as saying, “I would rather have 30 Republicans in the Senate who really believe in principles of limited government, free markets, free people, than to have 60 that don’t have a set of beliefs.”

It may have been feedback from that comment that caused DeMint to write an op-ed in the Wall Street Journal on his vision of a “Big Tent” Republican party. He makes some excellent points:

But big tents need strong poles, and the strongest pole of our party – the organizing principle and the crucial alternative to the Democrats – must be freedom. The federal government is too big, takes too much of our money, and makes too many of our decisions….

We can argue about how to rein in the federal Leviathan; but we should agree that centralized government infringes on individual liberty and that problems are best solved by the people or the government closest to them.

Moderate and liberal Republicans who think a South Carolina conservative like me has too much influence are right! I don’t want to make decisions for them. That’s why I’m working to reduce Washington’s grip on our lives and devolve power to the states, communities and individuals, so that Northeastern Republicans, Western Republicans, Southern Republicans, and Midwestern Republicans can define their own brands of Republicanism. It’s the Democrats who want to impose a rigid, uniform agenda on all Americans. Freedom Republicanism is about choice – in education, health care, energy and more. It’s OK if those choices look different in South Carolina, Maine and California.

That’s a good federalist, or libertarian, or traditional American conservative vision. But is it really Jim DeMint’s vision?

DeMint says “that centralized government infringes on individual liberty and that problems are best solved by the people or the government closest to them.” And he says it’s OK if “choices look different in South Carolina, Maine and California.” But marriage is traditionally a matter for the states to decide. Some states allow first cousins to marry, others don’t.  Some states recognized interracial marriage in the early 20th century, others didn’t. And in every case the federal government accepted each state’s rules; if you had a marriage license from one of the states, the federal government considered you married. But Senator DeMint has twice voted for a constitutional amendment to overrule the states’ power to grant marriage licenses to same-sex couples. In his op-ed, he writes, “Republicans can welcome a vigorous debate about legalized abortion or same-sex marriage; but we should be able to agree that social policies should be set through a democratic process, not by unelected judges.” That’s a reasonable argument, but the amendment that DeMint voted for would overturn state legislative decisions as well as judicial decisions.

Does Jim DeMint believe that “it’s OK if choices [about marriage] look different in South Carolina, Maine, [Vermont, New Hampshire], and California”? If so, he should renounce his support for the anti-federalist federal marriage amendment. If not, then it seems that he opposes the Democrats’ attempts to “impose a rigid, uniform agenda on all Americans …  in education, health care, energy and more,” but he has no problem with Republicans imposing their own “rigid, uniform agenda on all Americans” from South Carolina to Vermont.

It might be noted that Senator DeMint also supported the federal attempt to overturn Florida court decisions regarding Terri Schiavo, but we can hope all Republicans have learned their lesson on that bit of mass hysteria.

With ‘Cramdown’ Rejection, Is Senate Ready to Respect Marketplace Contracts Again?

After rejecting the proposed ‘cramdown’ changes to the bankruptcy code, the Senate may be slowly waking up to the need to respect contracts.  One cannot rebuild trust and confidence in our markets, while at the same type trying to destroy the trust that underlies contractual relations.  Were the cramdown legislation approved, the message to investors, or any market participants, would be that the enforceability and terms of your private agreements will be subject to the direction of the political winds.

Proponents of cramdown claimed that the bankruptcy code favored one’s vacation home or yacht over one’s primary residence, as the mortgages on these assets could be reduced to reflect their current value.  Such a claim is at best misleading, if not outright false.  One’s primary residence is already the most favored asset in bankruptcy – due to the very simple fact that one generally gets to keep their home, while one usually has to give up their boat or vacation home in order to satisfy one’s debts.  There simply is no ‘yacht-stead’ exemption.  In fact, under Chapter 13, primary residences whose equity values are greater than the homestead exemption are crammed-down, and the home is transferred to the lender.

Our economy will only turn around once families, investors, entrepreneurs and other market participants believe the rules of the game will be fair and certain, and not constantly subject to political manipulation.  Voluntary consensual agreements are one of the basic pillars of our society, and should be respected as such.  They should not be written solely as a means of taking from one groups of citizens and giving to another.

Vetting the Future Supreme Court Justice

In choosing a Supreme Court nominee to replace Justice Souter, President Obama will have an opportunity to avoid the partisanship he promised to reduce on the campaign trail, which his legislative agenda has thus far only exacerbated.

But given the way Bush nominees were treated by Senate Democrats, it won’t be easy. After the stormy confirmation hearings for Judges Bork and Thomas, President Clinton’s nominations of Judges Ginsburg and Breyer sailed through the confirmation process with little opposition and even less acrimony. With the return of Republican nominees after the election of George W. Bush, however, Senate Democrats resumed their scorched earth practices, starting with appellate court nominees and continuing to the nominations of Judges Roberts and Alito to the High Court.

Hearings were never held, filibusters were threatened and reputations were tarnished.

The question now for Senate Republicans will be, is turnabout fair-play?

The answer may turn on just who President Obama selects. At the least, given this recent history, there is no reason Senate Republicans need to be unduly deferential to the president’s nominee. We will need to know both the judicial philosophy and the constitutional philosophy of the nominee.

That will require respectful but sharp questioning by members of the loyal opposition. Their duty under the Constitution requires nothing less.

Will Specter Turn Left?

I offer some evidence in today’s Chicago Tribune:

Last week, Pennsylvania Sen. Arlen Specter was one of the most liberal Republicans in the Senate. Today, he’s the most conservative Democrat….

But party-switchers often change their votes as well as their labels.

The day after Republicans won control of the Senate in 1994, Sen. Richard Shelby of Alabama switched to the Republican Party. He had been a relatively conservative Democrat and had high-profile conflicts with President Bill Clinton, so the switch wasn’t a great surprise. But observers might be surprised to look back at what happened to Shelby’s voting record. According to the American Conservative Union, for eight years Shelby’s conservative voting percentage had ranged between 43 and 76. Even in 1994, as Shelby often found himself opposing the Clinton administration, the ACU gave him only a 55. But from 1995 to 2000, his ACU rating only once dipped below 90, and he scored a perfectly conservative 100 in 2000 and 2001….

In 2001, Sen. Jim Jeffords of Vermont left the Republican Party and became an independent. Conservatives said he was actually voting like a liberal Democrat. But that wasn’t quite right. Since he entered the Senate in 1989, his average ACU rating had been 27 – definitely the most liberal Republican, but not Ted Kennedy country. His ADA average was 58 – liberal for a Republican, but a long way from Vermont Democrat Pat Leahy. After the switch, Jeffords’ ACU rating started falling like GOP approval ratings: from 40 in 1999 to 29 in the year of the switch to 6, 10, 4, 8 and 4 during the rest of his tenure.

Specter says he won’t become a party-line Democrat, any more than he’s been a reliable Republican vote. But the evidence from previous party-switchers is that his votes will end up much more in line with his new party.

Bipartisan Support for Choice Grows Every Year

When the Florida Legislature passed its education tax credit program in 2001, only one Democrat supported the measure.

Last year, the legislature expanded the program with votes from one third of statehouse Democrats, half the black caucus and the entire Hispanic caucus.

Last week, nearly half of House Democrats —47 percent—voted to significantly expand the revenue base for the state’s business donation tax credit program. House Republicans voted 100 percent in favor.

And yesterday, nearly a third of Senate Democrats—31 percent—voted to expand the tax credit program. And 92 percent of their Republican colleagues voted for the bill.

In all, 43 percent of state Democratic legislators voted in favor of education tax credits. Governor Crist is expected to sign the bill shortly.

They are not alone.

In 2006, Democratic governors in Arizona, Iowa and Pennsylvania signed new or expanded tax-credit initiatives. That same year, a Democrat-controlled legislature in Rhode Island passed a donation tax credit. A Democratic governor and legislature in Iowa raised their tax credit dollar cap by 50 percent in 2007.

Partisanship on choice is fading away because many politicians have come to realize that school choice saves money and children. The truth is beginning to spread; school choice is the most proven and effective systemic reform available.

The future of education reform is looking bright in the Sunshine State and across the nation.