Tag Archives: Mitch Daniels

Balanced Budgets And Tax Caps

For years, it has been a GOP article of faith that the United States should pass a balanced budget amendment. Here in Indiana, Republican Governor Mitch Daniels was the driving force behind the “constitutionalization” of tax caps–adding a measure to the state’s constitution limiting state and local government’s taxing power.

Fortunately, wiser heads prevailed in Congress, and the federal government retained authority for the massive deficit spending needed to ease what will certainly be a major recession or a depression in the wake of the Covid-19 pandemic.

Here in Indiana, we weren’t so lucky; Mitch Daniels successfully curried voter favor by decimating the ability of cities to adequately fund services and hobbling the state’s ability to meet unanticipated crises.

The average voter doesn’t recognize the different functions of constitutions and statutes, or understand why specific tax provisions of this sort don’t belong in the former.  Most Hoosiers thought it was a good idea to place tax caps in the state’s charter, making it difficult–if not impossible–to change direction if the need arose. Now, the state of Georgia–which has a similar restriction–is demonstrating just how short-sighted and damaging it is to elect people who are more concerned with politics than good policy.

From Heather Cox Richardson’s daily “Letter,”(no link, but her URL is heathercoxrichardson@substack.com) we learn about an investigation by George Chidi, a Georgia journalist and former staff writer for the Atlanta Journal-Constitution.

Chidi examined Georgia Governor Brian Kemp’s decision to reopen gyms, fitness centers, bowling alleys, tattoo parlors, barbers, nail salons, restaurants, theaters, and massage therapists, among other businesses, next week.

Kemp said the businesses would be required to screen workers for illness, increase sanitation rules, separate workspaces by at least six feet, telework where at all possible, and have staggered shifts. He also said that more restrictive local rules could not override his order.

Kemp told reporters that his concern was to protect small businesses, hurt by the economic shutdown, but Chidi had a different interpretation. “It’s about making sure people can’t file unemployment,” he wrote.

The state’s unemployment fund has about $2.6 billion. The shutdown has made claims skyrocket—Chidi says the fund will empty in about 28 weeks. There is no easy way to replenish the account because Georgia has recently set a limit on income taxes that cannot be overridden without a constitutional amendment. It cannot borrow enough to cover the fund either, because by law Georgia can’t borrow more than 5% of its previous year’s revenue in any year, and any borrowing must be repaid in full before the state can borrow any more.

By ending the business closures, Kemp guarantees that workers can no longer claim they are involuntarily unemployed, and so cannot claim unemployment benefits. Chidi notes that the order did not include banks, software firms, factories, or schools. It covered businesses usually staffed by poorer people that Kemp wants to keep off the unemployment rolls. (Emphasis supplied.)

We already knew that Kemp was despicable; a man for whom the word “ethics” is clearly meaningless–as Secretary of State, he refused to recuse himself and oversaw the Gubernatorial election in which he was a candidate. By throwing out some 50,000+ registrations from African-American voters, he narrowly deprived Stacy Abrams of a victory in that race.

This effort to deprive low-income workers in Georgia of the ability to claim unemployment is equally contemptible, but it is also equally attributable to the restrictive provisions in Georgia’s constitution.

Indiana’s constitution requires a balanced budget. That requirement need not be debilitating–if the state and its subdivisions can raise taxes to meet unanticipated challenges. Thanks to Mitch Daniels, his successors in the Governor’s office are unable to do that. Governor Holcomb thus far seems like a pretty solid guy–a throwback to the kind of Republicans I used to know–so I am hopeful he won’t emulate Georgia’s Kemp.

When rightwing Congress-critters bloviated about a Balanced Budget Amendment, cooler heads pointed to the perils and prevailed. When Republicans in the Indiana statehouse crowed about putting tax caps in the constitution to “protect” taxpayers, warnings by fiscal and tax policy experts were pooh-poohed.

Politics won, sane and informed policy lost.

Isn’t there a song called “Georgia on my mind”?

Revealing Metaphors

Mitch Daniels–formerly the Governor of Indiana–is the current President of Purdue University. He was appointed by Trustees of the University who–not so coincidentally–he had appointed to those positions, a somewhat incestuous situation that raised a lot of eyebrows.

Daniels’ performance as President, while entirely satisfactory to those same Trustees, has been controversial among educators. There was, for example, Purdue’s acquisition of for-profit Kaplan University, in order to create Purdue Global, a marriage which is evidently not going so well. Forbes reports that Purdue Global had a net operating loss of $38.4 million last year. There was also an initiative encouraging students to finance their educations by pledging a percentage of their future earnings to investors, which some have dubbed “indentured servitude.” But most grumbling has been quiet.

Remarks Daniels made a few weeks ago, however, sparked a national discussion. As G. Gabrielle Starr, the President of Pomona College, wrote in the New York Times,

In late November, the president of Purdue University, Mitch Daniels, told students that he will soon “be recruiting one of the rarest creatures in America — a leading, I mean a really leading, African-American scholar.”

“Creatures?” a student asked. “Come on.”

“It’s a figure of speech. You must have taken some literature,” Mr. Daniels said. “One of the rarest, let me say, rarest birds, rarest, rarest, rarest phenomena.”

In just a few sentences, Mr. Daniels seemed to question the possibility of sustained black excellence. In response to the uproar that swiftly followed, he complained that he had “never felt so misunderstood” and that he had simply used a “figure of speech.” On Wednesday, he apologized and retracted the statement.

When I learned about Mr. Daniels’s words from another African-American scholar on my own campus, I felt indignant but also constrained. The standard etiquette for college presidents, like me, is to let the remarks of another leader pass on by.

Even though he apologized, I can’t do that. The idea that scholars of color are rare is a damaging fiction. Yet it’s pervasive in academia, causing untold damage. It allows some faculty deans to simply throw up their hands and give up on their recruitment efforts. It leads to small recruitment budgets for minority candidates.

Dr. Starr noted that the Purdue faculty had pushed back on the notion that black scholars are “rare birds” and he went on to identify a few of the many outstanding African-American scholars:

After Mr. Daniels’s remarks, Purdue faculty members said in a statement that “the idea that there is a scarcity of leading African-American scholars is simply not true.” Indeed, one might look to scholarly societies for leading figures: Alondra Nelson, president of the Social Science Research Council; Elizabeth Alexander, president of the Mellon Foundation; Cecilia Conrad, a managing director at the MacArthur Foundation; and Claude Steele, chair of the board of the Russell Sage Foundation. Or leaders at American colleges and universities like Jonathan Holloway, provost of Northwestern; Raynard Kington, president of Grinnell College; and Michael Drake, president of Ohio State University.

Starr’s column is eloquent, and worth reading in its entirety, but I remain bemused by the nature of the outcry that followed Daniels’ remarks. Most of the criticism I saw focused not on the inaccurate and damaging notion that black academic success is rare, but on Daniels’ use of the term “creature.”

I do understand black sensitivity to language that seems to equate African-Americans with animals, given America’s unfortunate racist history. But we are all creatures, and this reference seemed– to me at least– far less reprehensible than Daniels’ obvious assumption that black intellectuals are few and far between.

I’ve taught at the university level for twenty years, and during that time, the number of African-American scholars on our campus has grown significantly. My black colleagues have contributed enormously– to the educations of our students, to the scholarly literature, and–perhaps more importantly–to the creation of an inclusive, multicultural campus culture. I have to assume the same is true at Purdue.

Do we have a way to go? Sure. But ignoring the substantial presence of black scholars in academia isn’t just inaccurate. It’s evidence of implicit bias–and it deserves to be called out.

 

 

 

Indiana’s School Voucher Program–The Back Story

Toward the end of yesterday’s post about high-stakes testing, I noted that its largest-in-the-nation voucher program illustrated Indiana’s penchant for simple answers to complicated questions.

I have friends who sincerely believe that “school choice” will help poor children escape failing public schools, and none of the careful academic research that documents voucher schools’ generally poor academic results convinces them otherwise. “Private” is a word like “shazam!”– magically opening imaginary doors.

Critics of Indiana’s voucher program tend to place the most blame on Mike Pence, but a recent series of articles identifies Mitch Daniels as the political brains behind Indiana’s program. Pence certainly expanded it–and engineered amendments to ensure that religious schools, rather than other private institutions, would be the major beneficiaries. (In Indiana, some 92% of vouchers are used to attend religious schools, virtually all Christian and a sizable number fundamentalist.)

No one who knows Mike Pence, however, would describe him as the brains of any operation. That accolade belongs to Mitch Daniels.

After noting that five years after the program was established, more than half of the state’s voucher recipients had never attended Indiana public schools–failing or not–and that Hoosier taxpayers are now covering private and religious school tuition for children whose parents had previously footed that bill, the author proceeded to describe the voucher program as an outgrowth of a conversation at a dinner party hosted by Steve Hilbert, at which Daniels is quoted as saying “There is no reason even debating the abysmal, atrocious failure of the public school monopoly anymore.”

In the years that followed, three of those dinner guests — Daniels, Pence and Klipsch — would be major players in the quest to privatize traditional public education in Indiana.

Klipsch would start and run a political action committee, Hoosiers for Economic Growth (a.k.a. Hoosiers for Quality Education), that would play a major role in creating a Republican majority in the Indiana House to redistrict the state to assure future Republican control.

In 1996, however, there were no charter schools in Indiana, nor were there virtual schools or vouchers. Neighborhood public schools served communities in a state that had always taken a “liberal and leading role” in providing public education for its children.

Twenty-one years later, Hoosier public schools were showing the effects of 15 years of what the article characterizes as “relentless attack.”

Entire public school systems in Indiana cities, such as Muncie and Gary, had been decimated by funding losses, even as a hodgepodge of ineffective charter and voucher schools sprang up to replace them. Charter school closings and scandals were commonplace, with failing charters sometimes flipped into failing voucher schools. Many of the great public high schools of Indianapolis were closed from a constant churn of reform directed by a “mindtrust” infatuated with portfolio management of school systems.

The author traced the decline to Daniels.

After his election, Daniels quickly laid the groundwork for creating a system based on the belief that the market principle of competition would improve education outcomes and drive down costs. Under the guise of property tax reform, Daniels seized control of school funding by legislating that the state would pay the largest share of district costs known as the general fund, while giving localities the responsibility for paying for debt service, capital projects, transportation and bus replacement. Daniels and the legislature also made sure that districts would be hamstrung in raising their local share by capping property taxes so that they could not exceed 1 percent of a home’s assessed value. The poorer the town, the less money the district could raise.

The remainder of the lengthy article traces the changes to Indiana education made by Daniels and Tony Bennett, his chosen Superintendent of Public Instruction–changes funded by Betsy DeVos’s foundation. I encourage you to click through and read the article in its entirety. And weep.

My only quibble is with the author’s obvious belief that Daniels’ assault on public education was motivated by a malevolent intent to privatize the state’s schools. Unlike Pence, Mitch Daniels is a highly intelligent man. He is also thoroughly political and ideological. My guess is that he drank deeply from the well of GOP dogma, and believes–with an almost religious fervor, evidence be damned– that the private sector is always superior to the public sector. (Why so many people who clearly believe this nevertheless spend their professional lives in the public sector is an enduring mystery.)

So here we are. Vouchers have increased religious and racial segregation without improving academic performance. Meanwhile, public schools are struggling to perform without adequate resources, and the state’s underpaid teachers are leaving in droves.

Did Indiana’s schools need improvement? Absolutely. Were vouchers an appropriate or effective remedy? Absolutely not.

That’s what happens when ideology trumps evidence.

 

For-Profit Education Is About Profit, Not Education

It will come as a surprise to exactly no one that Betsy DeVos is a fan of for-profit colleges. After all, she has championed voucher programs that take funding from public schools and send it to private ones, many of which are run or managed as for-profit enterprises. Unfortunately, her support is not shaken either by the data rebutting the belief that such schools actually provide an education (let alone a superior education), or by the documented fraudulent behavior of for-profit “colleges.”

The New York Times editorial board recently weighed in on DeVos’ roll-back of efforts to protect college students against that fraud.

Say this for Betsy DeVos: The secretary of education has shown an impressive commitment to rescuing her friends in the for-profit college business from pesky measures to rein in their predatory behavior. As pet projects go, it lacks the sulfurous originality of her emerging idea to let states use federal dollars to put guns in schools. But it is a scandal nonetheless. Given the choice between protecting low-income students — and, by extension, American taxpayers — and facilitating the buck-raking of a scandal-ridden industry, Ms. DeVos aggressively pursues Option B.

The Obama-era regulations basically required “truth in advertising.” If too many students at the for-profit school racked up massive student debt–financed, after-all, by We the Taxpayers– and then were unable to qualify for decent jobs, and if the ratio of such failures exceeded a certain level for two out of three years, those schools became ineligible to receive taxpayer-backed loans and grants. The regulation also required for-profit programs to include whether or not they meet federal job-placement standards in their promotional materials.

DeVos said the regulation unfairly targeted for-profit schools, even though–as the Times reported-

A recent review of “borrower defense claims” — requests for loan relief filed with the Education Department by students asserting they were defrauded or misled by their schools — found that almost 99 percent involved for-profit institutions.

There is, in fact, plenty of evidence that for-profit educational institutions are much more interested in profit than in education. DeVos herself doesn’t seem very educated about data, education or the department she presumably runs. Nor is she winning many converts.

A federal court has ruled against her effort to delay implementation of the Obama rules, calling it “arbitrary and capricious.” And California just became the first state in the nation to ban for-profit charter schools. The law was inspired by a newspaper investigation confirming allegations of profiteering at the expense of children’s educations. For-profit charter schools currently operating in California “must convert to non-profit management prior to each school’s renewal deadline.”

Although I absolutely support both the regulations DeVos is attacking and California’s  requirement that for-profit institutions become nonprofit,  the problem isn’t limited to institutions that are organized as private, for-profit enterprises. Any business lawyer can explain the ways in which the line between for-profit and non-profit can be blurred. Create a corporation to provide an arguably publicly- beneficial purpose, and distribute what would otherwise be “profits” as salaries, and voila! (Take a look at some of your local “nonprofit” hospitals…)

And that brings me to Purdue University’s recent acquisition of Kaplan University, a for-profit enterprise now re-branded as public.  I think the Century Foundation got it right, when it charged that Purdue University Global Is a For-Profit College Masquerading as a Public University.

In April, the for-profit Kaplan University officially became an arm of Indiana’s public university system. With its new home and new name, Purdue University Global is the first public university to share control with a for-profit company answerable to investors. When the deal was announced last year, Purdue’s president said that critics of for-profit colleges “should be happy” that Purdue was turning Kaplan into a public rather than for-profit institution. Critics, however, wondered whether the for-profit company’s large ongoing role meant, instead, that Kaplan’s history of predatory practices would simply re-emerge under a “public” moniker.

One answer to that question arrived last week, when Purdue faculty members revealed that the online school is requiring instructors to sign a four-page nondisclosure agreement. The pledge, required for Purdue Global employees, prohibits professors and staff from discussing anything they know about the university’s operations with anyone else, including their colleagues (unless those people already have access to the information). Officials at the American Association of University Professors (AAUP) describe the pledge as “unprecedented for a public, non-profit university” and “breathtakingly inappropriate in higher education.”

Now, The Century Foundation has new documents showing that predatory practices at Purdue Global were baked into the plan from the very beginning.

Those documents–described in detail at the linked article–reveal a number of ways in which Purdue Global was designed to be much more of a for-profit college obligated to its investors than a public institution serving students.

I am a big believer in markets, profits, and capitalism…in the economic sectors where markets and profits are appropriate. Education is not one of those sectors.

Rather than strengthening performance of education’s public function, rather than recognizing the critically important role of education in producing a literate and informed polity, the Republicans running our government–and the Republican running Purdue University–are elevating profit over purpose, and moving us in precisely the wrong direction.

 

The Assault Continues….

File under: Surely you jest.

The latest, widely-reported “initiative” from former Governor and current President of Purdue Mitch Daniels is an “innovative” method of financing college educations: have private individuals “invest” in a student in return for a portion of that student’s eventual earnings.

The impetus for this brilliant idea, according to Daniels, was concern over student loan debt. How this would improve the situation is unclear; owing your “patron” is unlikely to be any less burdensome–or less costly– than owing the bank. (If we were really interested in addressing student debt, we’d pass Elizabeth Warren’s bill and lower interest rates, or follow Germany’s example and provide free public education through college.)

And echoes of feudalism aside, this does raise a few questions. Who, for example, is going to “invest” in a philosophy degree? (Oh, I forgot: Mitch and his pal in Wisconsin, Scott Walker, don’t value a “search for truth” or a liberal arts education. They’re all about “job training” and generating more worker bees…)

Young people used to pay for their passage to the New World by promising to work for a certain number of years for an employer who would finance the voyage. This was called “indentured servitude.”  Indentures couldn’t marry without the permission of the employer,  and their obligation to labor for their “owner” was enforced by the courts. Owners could buy and sell indentured servants’ contracts and the right to their labor.

This raises some fascinating possibilities: while it’s unlikely the proposed contracts to finance an education would include a right to approve marriages, could the “investor” require the student to choose a job that paid more rather than a lower-paid one that the student preferred?

Could the investor “sell” the contract at a profit if the student did well and the negotiated percentage of her income represented a better-than-anticipated return on investment?

Could the investor require his “investment” to abstain from smoking, drinking and other risky behaviors that might threaten the duration of the student’s work life?

Actually, this bizarre proposal suggests that America is overdue for a discussion of what constitutes an investment–and especially about the difference between public and private investments.

Believe it or not, Mitch, that philosophy major is a good public investment, even if it doesn’t make much sense to the rich guy looking for a kid who’ll be his annuity.