King vs Burwell: What it is, and what it means for SC

Today the US Supreme Court holds the future of Obamacare in its hands as it hears King v Burwell. Not sure what the significance of this case is? Well, you're not alone. Here's what you need to know about the case that could radically alter Obamacare as we know it.

When the Patient Protection and Affordable Care Act (PPACA) was signed into law in early 2010, there were many things we still didn’t know about the bill and its effect on everyday Americans. Now, with several years of experience under our belts, the truth has grown increasingly clear: far from living up to its name, it has become one more one-size-fits-all Washington boondoggle with a bungled website roll-out, lingering questions about consumer data privacy, rising insurance rates and many people losing the doctor they were promised that they could keep. And that’s just the tip of the iceberg.

The latest controversy: are people in the federal exchange actually eligible for the subsidies that they’ve been receiving to help them pay their premiums?

A clear reading of the law’s actual language would indicate the answer is “no.” In fact, at the time the bill was passed, now infamous PPACA architect Jonathan Gruber said that provision was intentional to encourage states to set up their own exchanges. Now however, with a majority of states like South Carolina standing strong against these federal strong arm tactics, the Administration has changed their tune and said it was a simple bill drafting oversight and should be treated as such.

This is the question that the Supreme Court will decide in King v. Burwell. So what does this mean for South Carolinians and people in other states caught in the cross-hairs of this policy?

One thing the King v Burwell ruling does not signal is the end of the world. Many in the liberal media are painting this case as a partisan attempt to derail Obamacare, lifeline of the American healthcare system. This is patently false. A ruling against the federal government in King v Burwell would simply expose yet another of the many fundamental flaws with the Obamacare system; a flaw that the Obama administration themselves wrote into the bill.

What King v Burwell does mean if the Supreme Court rules against the government, is that both state and federal lawmakers will have an outstanding opportunity to make real reforms to the failing Obamacare system. A win could pave the way for more healthcare alternatives that would give people the freedom to choose more affordable plans, improve transparency, and offer states more flexibility. If the Supreme Court sides with the government, a very dangerous precedent will be set that enables the IRS and other federal agencies to ignore and rewrite laws duly passed by Congress at will.

An important detail to remember is that the plaintiffs in King v. Burwell represent the millions of Americans harmed by Obamacare, including those who lost their health plans, doctors, jobs, and those who the law forces to pay higher insurance premiums and taxes. It's worthwhile to take a look back and remember the full extent of the damage brought about by Obamacare in the last several years.

In A Nut Shell

- The Obamacare statue explicitly says that subsidies (to help defray the cost of insurance premiums) are only available for through state exchanges.

- The reason for this provision was to strong arm states into creating their own exchanges.

- After the majority of states resisted this federal coercion and refused to create exchanges, the Obama administration backtracked and offered subsidies for the federal exchanges as well as the state exchange. (This is because without the subsidies, the outrageous cost of Obamacare is prohibitive.)

- King v Burwell is a case challenging the Obama administration's power to reinterpret the law as passed to suit their wants. It argues that the law specifically says subsidies are only available through state exchanges, and the Obama administration has no power to pay subsidies for everyone apart from Congress changing the statute.

- The US Supreme Court heard oral arguments for King v Burwell on Wednesday.

- If the Supreme Court decides against the Obama administration, while it doesn't mean the automatic end of Obamacare, it does mean there will have to be some serious reforms made my Congress, or else coverage will be prohibitively expensive for millions of Americans.

Further Reading
Check out what the Heritage Foundation says every state lawmaker should do in the wake of King v Burwell

FAQ: Offshore Drilling

As we continue to advocate offshore energy exploration because of the huge opportunities it could create for SC, there are also many important questions we need to answer. Tough questions that deserve hard thought as we decide what's the very best policy for our state. Below are some of the most pressing of those questions, and our answers.

Why is new energy exploration important?
While America is producing more and importing less oil and natural gas that in years past, with major problems in Russia, South America and violent unrest in the Middle East, we are still far too dependent on foreign oil.  Meanwhile, we are ignoring 87% of our own offshore acreage and with outdated maps in hand are not even sure what is out there. To be truly energy independent, we must maximize the areas of exploration to improve the odds of finding secure resources.6

Won’t oil rigs be visible from our beaches, affecting tourism?
No, oil rigs would be well beyond sight lines from the beach — 75-100 miles offshore.  South Carolina’s scenic beauty would be preserved intact, with major onshore infrastructure centering around existing development, such as our ports.

What about the danger of a spill like the Deepwater Horizon disaster?
While environmental risk is never entirely out of the question, a Deepwater Horizon-type incident is highly unlikely. In addition to continuing improvements in technology since then, the Deepwater Horizon rig operated 5,000 feet below the surface. This is a far different environment than South Carolina where operations would be in much shallower waters. This, along with vast coastline, is why South Carolina is in such a favorable position. The Considine analysis finds the likelihood of environmental damage unlikely and well worth any potential risk in his formal cost/benefit analysis.

Some experts say there isn’t any oil off the coast of South Carolina, so is mapping a waste of time?
Many of the same arguments were made about the presence of oil in the Gulf, and those estimates were off by a factor of 5:1 (9 billion barrels projected vs 45 billion actual). Dr. James Knapp, a Professor in the Department of Earth & Ocean Sciences at the University of South Carolina testified before Congress that estimates he has seen on South Atlantic oil and gas from Quest Offshore Resources4 appear to be very conservative (low).5

Will the researchers be using “sonic cannons” that might injure wildlife?
Researchers use air guns (nefariously dubbed “sonic cannons” by environmental activists) to produce sound waves that reach the ocean floor that scientists can then use to map the size and location of resources. There is no evidence that seismic instruments have injured animals and in fact, sea life seems to avoid an area during these seismic tests. Research vessels also follow strict safety protocols, sending out less powerful signals before actual seismic tests begin in order to warn away dolphins, whales and the like.

Shouldn’t we invest in “greener” resources like wind and solar?
Yes and no.  While the key to energy independence and a thriving environment is a diverse energy portfolio, alternative energy sources are far from ready to sustain the entire American economy and our way of life.  Oil, natural gas, coal, wind, biomass, nuclear and other energy sources are all essential to an “all of the above” strategy that meets our energy needs and strengthens our national security.

Are state and local prerogatives protected during the lease sale process?
Yes, under current law, both the Outer Continental Shelf Lands Act and the Coastal Zone Management Act require input and consultation from state, local and military officials and other interested parties or stakeholders. The Department of the Interior closely coordinates with state and local governments throughout every stage of the leasing process, from planning to exploration and production.  In fact, the Bureau of Ocean Energy Management recently reached out to South Carolina and other coastal states to gauge interest and concerns prior to formulating the next offshore energy leasing plan.

We Have a New Name!

Dear Friends,

I wanted to take a minute to share some encouraging news about an exciting new phase of growth for our organization.

Two short years ago on February 5th, 2013, we first launched what we promised would be South Carolina’s most effective “action engine” for conservative public policy.  With your help, we rolled up our sleeves and got right to work.  And I’m proud to report that your investment is already paying real dividends through the relationships we’ve fostered and the research we’ve published and promoted.

We are energized by early policy victories such as halting Medicaid expansion and Common Core in South Carolina and enacting proven K-3 literacy strategies.  As we move forward, we are confident that we can build on these wins and help make South Carolina a model among the states in embracing free-market policy reforms. 

But as we approached our two-year anniversary, we knew we couldn’t just cool our heels: there is still far too much work to be done.  We took a careful a strategic look at where we’ve been since our launch, and where we need to go to truly effect a better future for our state.

One key conclusion?  It was time to grow our brand beyond simply WHAT we do – policy – and focus on WHY we do it.  To attract and inspire people all around South Carolina, who are looking for proven solutions to our shared problems and the bold, optimistic leadership needed to inspire people from all walks of life to work together to implement them. 

That is why after much careful deliberation, I am excited to let you know that next week, we will announce a new name for our organization: Palmetto Promise Institute!

The word “promise” captures the sense of aspiration and optimism that we stand for as an organization, and evokes two powerful ideas: 

• The unlimited promise of South Carolina and her people to achieve great things when we work together to promote good policy.
• The Forum’s promise as an organization to deliver well-researched, best-practice policy ideas that will create opportunity for every South Carolinian.

And so the idea of Palmetto Promise Institute was born.  “Promise,” because we believe deeply in the limitless promise of South Carolina as we fulfill our promise to promote a policy vision that inspires people to work together for our shared future.  And that’s a promise we intend to keep.

Although the name – and an exciting website that is currently being designed – will be new, we’ll retain the same effective operating strategy you’ve come to expect from us:

• Best Practices: rigorous research methodology and thorough analysis to document and explain what’s working in public policy and why, in South Carolina and beyond.
• Policy Entrepreneurship: addressing recurring problems with innovative solutions, grounded in our conservative principles and communicated with compassion.
• Finding Common Ground: building trust and establishing relationships with South Carolinians of every background.

And please stay tuned for much more information about our ambitious 2015 agenda…

…to provide every parents with information about how to access high-quality educational options for their children regardless of income or zip code – and grow them where they don’t exist.

…to develop a comprehensive tax reform plan to create jobs and economic opportunity.

…to advocate for state-based policies that lower health care costs and increase access to health care in all our communities.

…to highlight the amazing potential of responsible offshore energy development in our state, cutting through the misinformation and scare-tactics of out-of-state environmental extremists.

There’s no question that we have our work cut out for us.  But we’re confident that with your support–and that of a growing team of South Carolinians who share our vision–it can be accomplished. The task is ours, the time is now, and we don’t have a minute to lose. 

Thank you again for the progress you have made possible.  I hope we can count on your continued partnership to help fulfill South Carolina’s full promise!

Together for Freedom,

Ellen

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Ellen E. Weaver
President & CEO
Palmetto Promise Institute

Ellen Weaver: Palmetto Policy Forum Testimony to House Education and Public Works Committee Wednesday, January 21, 2015

OUR PHILOSOPHY
Thank you for the opportunity to speak to you today for a few minutes to give a thumbnail sketch of Palmetto Policy Forum: why we exist and ways that we hope to serve as a resource for this Committee.

I come here personally today not as an academic policy expert but as someone who loves our home state of South Carolina and believes passionately that the path of opportunity both for our people and our state starts with bold, big picture thinking about how we put together key puzzle pieces for South Carolina’s future.  We focus on the issues of energy, health care, tax & budget policy…and of course, righting the injustices of our education system, which is why I am here talking with you today.

Like many leaders in our state, we believe it's time to reboot and fundamentally rethink our system of education: how we fund it, how we measure outcomes and most importantly, how we truly elevate and support teachers…because a system never taught a child!

Our philosophy of public policy could fairly be categorized as conservative.  Now I know some of you reflexively roll your eyes at that and are about 2 seconds away from tuning me out.  But let me explain what I mean…

First, our solutions-oriented approach is rooted in a belief in the inherent dignity of ourselves and everyone around us.  We believe that human nature responds rationally to incentives – both positive and negative – and I dare say that anyone who doubts this has probably never been a parent!

Which means that for us, good intentions in public policy aren’t enough.  We have to look at what works and what doesn’t, create accountability measurements that measure the right thing – in the case of education, student success – and look around our state and beyond for best practices that are creating high student achievement.

Second, our default setting in education policy will always tend towards pushing dollars and decisions back to the classroom and family level.

These are the philosophies that we bring to all of our work:  a best-practice thinking that strives to apply new solutions to old problems – which we call policy entrepreneurship – and get beyond the predictable political back and forth to focus on what actually works.  We aim to be problem-solvers, not pot-stirrers.  And like Superintendent Spearman, we believe in a collaborative approach in so far as possible.

In that vein, over the last several months we have convened a group of like-minded education advocates, which we call the South Carolina Coalition for Education Opportunity.  Many of them are here today and they all share our passion for deep, sustainable, student-centered education transformation in this state.

OUR RESOURCES
As an independent 501(c)3 non-profit organization, we exist to provide you and the citizens of South Carolina with well-research public policy information.  We do this in several different ways that I’ll mention briefly:

Events
Next week, the South Carolina Coalition for Education Opportunity will be joined by hundreds of parents, students and education professionals here at the Statehouse on Tuesday, January 27^th at 11:30 AM on the South Steps of the Statehouse for our My SC Education Rally to celebrate National School Choice Week.  We’ll be celebrating ALL forms of choice: public, private, virtual, homeschool, public charter, magnet and more.  I hope you’ll plan to join us and get your yellow scarf.  However, fair warning: don’t wear a black jacket – they shed!

Expertise
We bring the best minds to the table, both from South Carolina and beyond, like what we are currently doing in coordinate with the Department of Education to help make sure that the good policy you passed with Read to Succeed is implemented well…because implementation is where the rubber really meets the road.

So next week, on Thursday, January 29^th at Noon (or as soon thereafter as the House adjourns) in Blatt 305, our Coalition will be hosting a lunch ‘n’ learn event to considers the policy implication of the Abbeville decision.  Titled “Fund Students, Fix Systems,” we’re bringing together top state and national experts to discuss our current funding structure and look at cutting-edge funding and governance innovations happening around the country.  I hope you all received this Dear Colleague invitation last week, but I brought a few extras in case you didn’t see it and are interested in attending.

Publications
We also publish resource publications from full on policy papers like our comparison of education outcome in Florida and South Carolina, which helped inform the Read to Succeed legislation, our common sense paper on Common Core that helped provide a roadmap for to pushing back on potential federal control of our standards…and more.

We also publish must shorter publications called Fast Facts for quick consumption like this “10 Ways to Supercharge Education” paper that summarizes much of our longer research.

And last but not least, we are particularly proud of our award-winning Empower Opportunity – a resource catalog designed to inform parents in South Carolina about how to access ALL the options that are growing in South Carolina, thanks to the past work of this Committee.  In this publication, we highlight success stories from real South Carolina families who are using each of these options and show how school choice in all its many forms is delivering real results where it’s tried…and we hope to see this choices expand even further in the session before us.  All of these publications can be found at www.palmettopolicy.org.

In closing, having celebrated Martin Luther King, Jr. day this week, I’m reminded of his famous quote about the “fierce urgency of NOW.”  Our kids in South Carolina can’t wait another 20 years for us to come together to address the education challenges in our states.  We’re excited to work with you this session and beyond to take them head on.

Thank you.

What’s Hot in the Hopper

The South Carolina General Assembly will officially convene for the 2015-2016 session tomorrow, but Statehouse staff have already been hard at work drafting legislation for the “pre-filing” period, which is now complete. While some pre-filed bills are dropped in the hopper purely for shock value and will never see the light of day, others are indicative of broad support and will be up to bat as early as next week. Here is a quick review of bills that fall into the categories that the Forum has identified as the key drivers of South Carolina’s future growth and competitiveness as a state.

On education, some legislators just want to spend more...and idea that is being repudiated even by the South Carolina Supreme Court, as we saw in the recent Abbeville decision. Others want the constitution to require a “high-quality” education rather than a “minimally adequate” one or to make the currently elected Superintendent of Education a Gubernatorial appointment. Then there are bills to establish a Board of Regents for higher education, operate K-12 schools year-round, raise teacher pay, extend bus transportation, expand wireless internet access, and delay implementation of new education standards.

But the Education bills we like best are: those that expand the school choice tax credit from those currently eligible (children with Exceptional Needs) to all children trapped in poverty. We also like the bill to make that same Exceptional Needs temporary budget proviso a part of permanent law.

What are other proposals we hope to see? Our Top Ten calls for incenting excellence in teaching, strengthening charters, providing more paths to certification as a teacher, and reforming education governance among other bold reforms. We would also like to begin a statewide conversation on the need for Education Savings Accounts (ESAs) like those in Arizona and Florida. Here is a new article from the journal National Affairs on this transformative policy proposal.

On taxes and fiscal issues, there are bills to protect the capital reserve fund, to enact a Fair or flat tax, to require audits of municipal governments, to eliminate corporate income taxes, to increase the homestead tax exemption, to raise the car sales tax cap, to stop additional fees, to go to a biennial budget, and to allow a wider range of investment for state employee pension plans.

The tax and fiscal issues we really like are those that promote fiscal fitness: an analysis of the state level of dependence on federal funding, more transparency in tax incentives for attracting businesses, reduction and elimination of the state income tax, an earned income tax credit for poor South Carolinians, and state spending limitations.

On energy, there is legislation to encourage development of offshore wind research and development. An “all of the above energy” policy is important and as our Offshore Opportunity report shows, oil and natural gas exploration would also be transformative for our economy, and should be encouraged.

On healthcare, we see attempts to nullify the ACA and some attempt at needed Certificate of Need (CON) reform, but few true state-based innovations to increase access and lower costs have been filed.  It’s also critical that legislators remain vigilant against any expansion of our broken Medicaid system, for the many reasons outlined in our research on the issue.

On labor and business, and a bill has been filed to prevent public officers or employees from organizing or striking.  One interesting note is that as our research shows unionized workers actually earn less in South Carolina than their non-unionized counterparts.

On transportation and infrastructure, there are a number of bills to raise the fuel tax, focus resources on repairing existing roads, send any newly found money only to the highway fund, and restructure the transportation (DOT) commission. Look for more on this from the Forum soon.

Please let us know your thoughts on these and any other public policy issues. We are here for you and look forward to keeping you updated on how these issues develop and could impact you and your family in 2015 and beyond.