A Taint of Tyranny?

The dictionary defines “tyranny” as oppressive power exerted by government.

Founder Thomas Jefferson warned “Experience hath shown, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.”

Is a taint of tyranny infecting our Medicaid standoff?

Compare the Senate’s actions with those of the House and the Governor.

Medicaid must be reauthorized this year. A bill to do so was introduced in the Senate. It included a section that could be amended to allow Medicaid expansion as envisioned by Obamacare. Sen. John Horhn’s amendment to expand Medicaid was defeated in committee. The full Senate passed the reauthorization bill 50 to 0. Lieutenant Governor Tate Reeves sent the bill to the House for consideration. No big deal.

A Medicaid reauthorization bill was introduced in the House. It did not include the section that could allow Medicaid expansion. When Speaker Philip Gunn stifled debate on expansion, House Democrats blocked reauthorization.

The Senate bill that included the amendable section arrived at the House. Gunn killed it along with the last chance to reauthorize Medicaid.

Denied the right to even debate Medicaid expansion, House Democrats then derailed funding for Medicaid. As a result, the Legislature adjourned without reauthorizing or funding Medicaid. The program will end June 30 unless Governor Phil Bryant calls a special legislative session and something gets passed.

Now comes the Governor saying he will not call a special session unless Democrats agree in advance to reauthorize and fund Medicaid as he wants it.

Instead, he told the Northeast Mississippi Daily Journal, he will personally take over the agency and run it without a legislative reauthorization or appropriation of matching funds.

“As head of the Governor’s Division of Medicaid, I will do all I can to continue to provide Medicaid to the citizens who qualify in the state of Mississippi,” said Bryant. “That is my legal argument. If someone wants to challenge me in court, what is their argument?”

There has been no indication that either the House or Senate has votes enough to pass Medicaid expansion if given the chance. Neither body could overturn a certain gubernatorial veto.

Why, then, the heavy hand oppressing House Democrats’ desire to debate the issue and the Governor’s overt threat to takeover Medicaid?

Earlier the Governor single-handedly killed the state insurance exchange developed by Insurance Commissioner Mike Chaney that would have helped the uninsured gain coverage. Former Governor Haley Barbour thought state controlled exchanges were good government.

Resistance to Medicaid expansion and Obamacare is one thing. Power plays that oppress free and open debate and good government are quite another, and display a taint liberty resists.

Founder Ben Franklin told us “Rebellion to tyrants is obedience to God.”

Reshoring Output Requires STEM Input

“Reshoring” is the catchy name used to describe efforts to bring manufacturing jobs back to America. It includes the return of jobs “off-shored” or “out-sourced” by U.S. companies as well as jobs brought to America by direct foreign investment.

While General Electric, Caterpillar, and Ford have brought jobs back to the U.S., we see more direct foreign investment jobs. The just announced Japanese Yokohama Tire project in West Point joins Russian Severstal, Israeli Stark Aerospace, and European Eurocopter as examples in East Mississippi, Toyota in Northeast Mississippi, European Airbus and German ThyssenKrupp near Mobile, and Chinese Golden Dragon near Thomasville, AL.

Why are these manufacturing jobs coming to or back to America?

Rising shipping costs matter, but a narrowing wage gap as foreign wages go up and U.S. wages go down may matter more. Boston Consulting Group found that “the United States is on pace to have lower manufacturing costs than Europe and Japan by 2015,” reported the Washington Post.

President Barack Obama wants to reshore one million jobs by the end of his presidency. Federal agencies support this initiative by offering competitive grants. The most recent is a multi-agency grant entitled the Make It In America Challenge.

The Make it in America Challenge will provide $40 million through the Department of Commerce, the Department of Labor, and the National Institute of Standards and Technology to support the development and implementation of regionally driven economic development strategies “that accelerate job creation by encouraging re-shoring of productive activity by U.S. firms, fostering increased Foreign Direct Investment, encouraging U.S. companies to keep or expand their businesses—and jobs— in the United States, and training local workers to meet the needs of those businesses.”

“Training local workers” is a vital part of the reshoring formula.

You see, many high-tech manufacturing companies located in the U.S. import skilled foreign workers to fill high-tech positions. They do this through the H-1B Visa program. The Make It In America Challenge requires the training of American workers for jobs now being filled by H-1B foreign workers.

Through reshoring, we want more high-tech manufacturing jobs…for Americans.

These H-1B manufacturing jobs include mechanical, chemical, and electronics engineers and advanced technicians in the same fields.

Here lies the challenge for many parts of America and Mississippi. Too many of our K-12 students fare poorly in the science, technology, engineering and math (STEM) programs that produce engineers and advanced technicians. Our global STEM rankings have been on the decline.

We expect our universities to output engineers and our community colleges to output credentialed advanced manufacturing technicians. But to do so, they have to input students with STEM competencies and interests.

Mississippi and America can reshore only so many high-tech jobs with a weak STEM educational system.

Regionalism Good for Golden Triangle

Just 15 months after they affiliated with his highly successful development team, Joe Max Higgins landed major Japanese tire manufacturer, Yokohama, and hundreds of high paying jobs for unemployment ravaged West Point and Clay County.

Friday, the Legislature approved a $130 million investment package plus millions in tax abatements for the project. “This is an historic day for Mississippi,” said Governor Phil Bryant, “and we are proud to welcome this world-leader in tire manufacturing to our great state. The passing of this legislation will result initially in 500 new jobs, with the potential to create up to 2,000 total jobs, and it will have a positive impact on the state’s economy for years to come.”

It was a year ago January that West Point and Clay County made the decision to turn over economic development efforts to the Columbus-Lowndes Development LINK managed by Higgins.

“The LINK has had the kind of success that we want our county to experience,” Jackie Edwards, president of the West Point-Clay County Growth Alliance, said at the time. That success was $4.4 billion in investments and 5,600 jobs created in Lowndes County over a five-year period and included companies such as Severstal, American Eurocopter, PACCAR, Stark Aerospace, Aurora Flight Services, and KiOR.

“We decided that with their proven track record and similarities between our two communities, we should make a proposal to join forces instead of searching for a new executive director,” said Edwards.

Six months ago Starkville and Oktibbeha County made a similar decision, signing a three year agreement with the LINK. Higgins says he already has a major prospect looking at Starkville and his team is working to identify new development sites in the area.

Meanwhile, the LINK renamed itself the Golden Triangle Regional Development LINK and expanded its board of directors to better reflect its new footprint. But, a more significant change is envisioned.

“We will propose legislation to the Mississippi Legislature to create the Golden Triangle Regional Development Authority,” said Higgins. “This will be a new organization that will replace the GTR Development LINK. It will become the permanent organization responsible for recruiting and doing all the things associated with landing business and industry in the three counties.” The LINK executive committee is charged with accomplishing this final transition.

TVA, the North Mississippi Industrial Development Authority, and MDA encouraged local leaders to pursue a regional approach.

“This … is a new beginning of regionalism that will ensure a smart future for our area,” said Jim McAlexander, past chairman of the LINK board. “Together we will become stronger as we capitalize on a larger economic base, more diversified assets and the resulting economies of scale we create.”

Going regional is hard for local officials. Good to see it paying off.

Truth Management Manipulates Beliefs

Since the earliest days of civilization “truth management” has been practiced by governments, religions, and powerful organizations to further their own interests. Today, the practice of truth management has proliferated to organizations throughout the United States, including Mississippi.

Envision a persuasion scheme that integrates widespread publicity, rampant disinformation, and tailored “truths.” You get the picture.

For example, our Defense Department has long practiced “perception management” and “truth projection” to influence beliefs – usually foreign but not always.

In recent decades well-funded national policy institutes and research centers have emerged that propagate research and analysis supportive of pre-conceived notions, i.e., they tailor “truth” to fit stipulated concepts. Today, these perverted truths are shared with bloggers, talking heads, publicity organizations, and lobbyists who adeptly use them to manipulate the public, politicians and policy makers into believing and proclaiming such as actual truths.

Consider this excerpt from a study of the tobacco industry published by the Department of Social and Behavioral Sciences, School of Nursing, University of California:

“This study adds to the growing literature that draws upon previously secret tobacco industry documents to understand the inner workings of the industry. Previous research has, among other things, revealed how the industry has deceived the public and policymakers about the harms of tobacco, manipulated science, used third parties to promote its agenda, targeted vulnerable populations, and interfered with regulatory and public policy processes. These behaviors are not unique to the tobacco industry; research on internal asbestos and chemical industry documents has uncovered similar actions.”

The tobacco companies managed truth by getting institutes and research centers, which they funded directly and indirectly, to publish studies showing tobacco usage to be not very harmful. They then used these deceitful studies and powerful publicity to manipulate users and politicians into believing that smoking was safe.

Senators, congressmen, and their staffs are too busy to do much research. So, they rely on information from institutes and research centers provided to them by lobbyists and interest groups. For example, the NRA recently looked to the Colorado-based Independence Institute, which it helps fund, for an analysis (unfavorable) of the Manchin-Toomey background check proposal.

Policy institutes and research centers actuated by pre-conceived notions have begun cropping up to shape “truth” at the state level too. Legislators have even less time and resources than congressmen to research complex issues like Medicaid, charter schools, or tax policies.

Folks, it’s one thing to use facts that support arguments and overlook facts that don’t. It’s quite another to deliberately create and disseminate false truths. And that’s what insidious truth managers do.

So, whether it’s the NRA, AARP, big business, government, or a state policy institute, realize the propensity of such to engage in truth management.

Don’t be duped. As Ronald Reagan insisted, verify.

Reading Reform Weakened

“Transformational change” said Governor Phil Bryant, thanking the Legislature for enacting key elements of his “Education Works” agenda. “I thank the Legislature for working with me to raise the bar for public education and create transformational change for our children,” he said.

“Half-hearted” said the Northeast Mississippi Daily Journal, describing the Bryant’s “Third Grade Gate” literacy measure as passed by the Legislature, one of the key elements in Education Works. “The third-gate idea has proven merit, but a half-hearted effort won’t get the job done,” the newspaper said.

Bryant says his Third Grade Gate program will improve literacy achievement by “ending social promotion of third grade students who are not reading on grade level.”

He said the program provides resources to schools to screen students’ literacy skills and provide those who are struggling with additional reading help. K-3 teachers and administrators will participate in training on best practices for reading instruction.
The newspaper says the Legislature weakened the program by making screening tests voluntary, underfunding the program, and leaving out reading coaches.

As originally written, Senate Bill 2347 required literacy screening at the beginning of each school year for kindergarten through third grade students. For students identified with reading deficiencies, schools would have had to provide intensive intervention.

As finally adopted, the bill makes annual screening optional, giving schools a loophole to avoid intervention activities until students complete third grade. At that time, schools may not socially promote students who read below grade level but must retain them in the third grade and, finally, provide them extensive levels of intervention, such as small group instruction and tutoring.

Citing former State Superintendent Tom Burnham, the newspaper wrote, “students should be measured each year and those who are behind should get additional days of instruction. ‘If you don’t do it that way and you just build a wall at the end of third grade, you are going to have another crisis in education.’”

To implement this comprehensive statewide program, the Legislature provided $9.5 million. “Woefully inadequate,” the newspaper quotes Nancy Loome, Parents’ Campaign executive director.

Bryant’s Third Grade Gate copies Florida’s highly successful program. But Florida required annual screening, committed substantial resources for intervention, and included reading coaches in its program.

“Reading proficiency is the foundation for all education progress, and many public school supporters believed that using the Florida model, which achieved substantial results, could become effective in Mississippi,” said the newspaper. “Florida made a full commitment, and Mississippi must match that vigor.”

The newspaper called for Bryant to correct program deficiencies by adding it to his likely call for a special session on Medicaid.

Agreed.

Transformation does not come from half-hearted efforts.

(Shhhh. The bill still allows social promotion for third-graders retained two years who don’t succeed in reading.)

PERS Allowed to Take Higher Risks

While you were sleeping the Governor and Legislature gave PERS authority to make higher risk investments with retirement funds.

House Bill 990, introduced by the vice chairman of the House Appropriations Committee, Mac Huddleston of Pontotoc, and co-sponsored by committee chairman Herb Frierson of Poplarville, passed the House 82 to 3 and the Senate 52 to 0 and was signed into law by Governor Phil Bryant on March 21st.

The PERS Board requested this bill “to reflect the current investment environment.”

What this means is that the lay board will rely more heavily on its “professional investment advisors” to manage risk as they chase higher investment returns.

What changed?

PERS may now invest in “non-agency” residential and mortgage-backed securities and collateralized mortgage obligations that are not guaranteed or backed by any government agency; asset-backed securities such as car loans, credit card receivables, etc.; and bank loans, usually packages of commercial loans. Previously, PERS was limited to fully guaranteed or highly rated securities. Now, there is no reference to guarantees, ratings, or any indication of credit risk for these newly authorized investments.

PERS may now utilize “foreign currency as an investment vehicle” to effectuate or hedge transactions for foreign stocks. The old language for hedging foreign transactions was more restrictive.

PERS may now purchase revenue bonds or notes issued by any state or any size city or county in the U.S. Previously, PERS was limited to general obligation bonds and notes that had the full faith and credit of the issuing entity behind them. Also, any city or county issuer had to have a population 25,000 or more and have not defaulted on interest or principal payments for at least 10 years. These limitations were removed.

The bill also removed requirements that U.S. corporate bonds and taxable municipal bonds and foreign corporate bonds and government securities have credit ratings. Ratings reveal the credit risk associated with the investment, e.g., lowly rated bonds are called junk bonds.

The bill eliminated provisions that PERS protect its bank deposits by requiring banks to post securities covering the deposited amounts. Every city, county, and other public entity is required to so collateralize their deposits that exceed federal insurance limits.

The bill even removed deposit collateralization requirements for foreign bank deposits.

Given PERS’ challenges, it’s not too surprising that the Legislature and Governor authorized new investment opportunities. What is surprising is their willingness to eliminate risk safeguards from the statute. With the exception of short-term corporate obligations, the only investment risk safeguard remaining in the statute is language telling PERS to act as “a prudent investor.”

This is the same PERS, now, that opposed legislation to add board members with private sector financial experience.

Sure looks like an all-in bet to me.

Teacher Standards in Dispute

Governor Phil Bryant ruffled feathers when he dinged the IHL Board for not supporting his new teacher education entrance standards.

“That was quite a tantrum Gov. Phil Bryant pitched at the College Board recently, criticizing its members for voicing concerns about his effort to increase standards for education majors,” read an editorial in the McComb Enterprise-Journal. “Bryant’s snide remarks to the board were undignified at best.”

Bryant had a cordial dinner with board members the night before, leaving them to believe he was satisfied with a compromise proposed by IHL Commissioner Hank Bounds. Apparently that was not the case. The Associated Press reported Bryant addressed the board and, when it failed to agree with him, snapped, “We’ll make sure we keep those standards low.”

Bryant proposed embedding into state law entry level requirements for teacher education programs. He wants future teachers to have a 21 score on the ACT and a 3.0 GPA on first and second year college courses.

Bounds wrote to Bryant on March 5th saying, “The IHL Board and I share your desire to raise standards and uphold rigor for teacher education candidates.” He then went on to say Bryant’s proposal would have “unintended consequences.” Among them were potential accreditation issues that arise when politicians interfere with governing board authority over educational policy, including university entrance requirements, and impacts on alternative route teachers who comprise 40% of teacher certifications each year; minimum ACT and GPA are not currently required for alternative route pathways.

“Given the issues raised above, and in support of the intent of the bill to raise standards, I recommend modifying the language in the bill to raise licensure requirements rather than teacher education admission requirements,” wrote Bounds.

But, Bounds’ letter turned right back to simply amend Bryant’s admission requirements, not licensure requirements. In addition to Bryant’s 21 ACT and 3.0 GPA, Bounds proposed a 3.0 GPA and scoring at the national median in reading, writing, and mathematics on the Praxis I teacher examination.

Neither of these simplistic proposals should be set into concrete state law with no exceptions. How many of our children have failed to take the first two years of college seriously, but come back later to achieve success and even obtain graduate degrees? How many alternate route individuals with the experience, maturity, and honed intellect to be great teachers had average college grades scores years ago?

In a state in dire need of quality teachers, how many shall we needlessly exclude?

The Governor’s intention was right, we do need better teachers. Bounds was initially right, we should focus on tougher teacher licensure requirements.

All this should be about readiness to teach, not early college scores and grades…and who is best to asses such readiness.

Legislators or educators?