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Thursday, June 28, 2007

Nation's Most Comprehensive Health Plan Approved in Wisconsin Senate

Conference Call: How States are Taking the Lead

Progressive States Network has just released a first of its kind report, Taking the Lead: An Interim Report on State Legislative Successes in Enacting Progressive Policy.

Today we will be hosting a conference call to discuss the best policies of this year’s state legislative sessions as highlighted in Taking the Lead, with the goal of showing that states are setting the path to a more progressive America and how these individual legislative achievements can be reproduced in other states. Maryland Delegate Tom Hucker, Colorado Representative Morgan Carroll, and New Mexico Representative Mimi Stewart will speak about the progressive successes of their states -- including Maryland’s first-in-the-nation living wage law, Colorado’s health care and electoral reform measures, and New Mexico's energy and environmental advances -- and share how those victories were achieved.

Click here to RSVP for the conference call.

Valuing Families

by Adam Thompson

Nation's Most Comprehensive Health Plan Approved in Wisconsin Senate

In perhaps the boldest move on health care reform ever in a state, Wisconsin Senate leaders included in the state budget a plan ensuring health care coverage for all residents. The plan, called Healthy Wisconsin, would provide comprehensive coverage and preserve freedom of choice of doctors for all residents who are under age 65 and don't qualify for expanded Medicaid programs. Under the plan, there would be no monthly premiums and only minimal co-pays and low annual deductibles. 

Healthy Wisconsin would be financed with a simple payroll tax paid by employees (2-4% of social security wages) and employers (9-12% of wages).  Similarly, sole proprietors would pay 10% of Social Security wages and unemployed individuals not eligible for public programs would pay 10% of the adjusted gross income.  To ensure affordability for low-income residents, Healthy Wisconsin expands BadgerCare, the state's Medicaid program, to 300% of income for families and to 200% for childless adults.

Progressive Financing - Savings Achieved: By replacing premiums with a payroll tax tied to each person's ability to pay, Senate leaders and advocates estimate the average family would save $750 per year and employers that currently provide health benefits would spend 15% less on average than what they currently spend.  In fact Healthy Wisconsin is estimated to save state and local governments $1.3 billion per year, which the Senate leaders pledged to use to reduce property taxes. The Lewin Group estimates the program will save the state $13.8 billion over the next ten years.

Comprehensive Benefits and Maximum Choice:  The benefit plan would preserve residents' freedom to choose providers and mirror the state employees' and legislators' own health plan.  It is fee-for-service and would guarantee coverage for comprehensive care, including prescription drugs, mental health parity, free preventive care, preventive dental care for children, and incentives to choose high quality providers and manage chronic illnesses like diabetes. 

Cost-sharing would include a $20 co-pay for non-preventive care services, annual deductibles of $300 per individual adult and $600 per family, Rx co-pays from $5 to $40 after the deductible, and maximum out-of-pocket expenses of $2,000 per individual adult and $3,000 per family. 

Political Prospects:  While the plan faces an uncertain future in the face of right-wing leadership in the Assembly, its inclusion in the Senate's budget is a huge step for reform and ensures the plan will be debated on its merits. Senate leaders and advocates are pledging a campaign swing across the state to educate the public and build support for the program. Already some business executives are speaking out in favor of the plan.  One human resources director of an 800-employee firm estimated that the plan would save his company $4.4 million a year on employee health care.

If Senate leaders can get Healthy Wisconsin through budget negotiations intact, it would be hands down the boldest and most comprehensive health care reform from any state. 

More Resources

Growing-Economy

by J. Mijin Cha

Green Jobs Corps in Oakland, CA

Oakland's City Council unanimously approved allocating $250,000 as seed money to create the nation's first Green Jobs Corps. Oakland's Green Jobs Corp will provide complete job training for residents that have had barriers to employment. The job training includes case managements skills and vocational training in areas such as bio-fuels manufacturing and solar panel installation. Participants in the program finish with paid internships in renewable energy and energy efficiency projects. 

The program was envisioned by the Oakland Apollo Alliance and will eventually recruit green businesses to settle in Oakland to build links between businesses and job training programs-- a move that not only provides good jobs but is a huge boost to Oakland's economy. 

The Broader Opportunity:  The potential for Green Jobs Corps is not limited to Oakland.  A recent study analyzed Los Angeles' green technology center and showed that there were seventeen different green technology industries in the city that could provide 500 or more jobs in L.A., had stable or growing employment and paid an average monthly wage of $2,500 or more in 2002.  The study encouraged the city to develop the job potential in these areas that would not only have environmental gains, but provide good jobs for residents.  The green technology jobs could provide a pathway out of the low-wage consumer services sector and into living-wage green jobs.

The blue-green marriage has long been promoted by the Apollo Alliance, who point to the benefits that arise when labor and environmentalists work together.  The drain of manufacturing jobs has left a void in our economy and jobs tied to renewable energy development can fill that void. 

The Oakland example is part of a larger trend; Sen. Bernie Sanders successfully pushed an amendment to the Energy Savings Act of 2007 that allots $100 million to train workers in green collar jobs, of which up to $40 million will go for state training partnership programs. 

More Resources

Growing Economy

By Nathan Newman

Tax Investigation of Wal-Mart in New Mexico

When the Wall Street Journal revealed that Wal-Mart was using investment vehicles, Real Estate Investment Trusts, to "rent" property to itself and evade billions of dollars in taxes, it sparked outrage in statehouses across the country.  

On the legislative front, New York and West Virginia joined eighteen other states in enacting combined reporting, a requirement that corporations file a joint tax return for all subsidiaries in a state to prevent the Wal-Mart kind of tax avoidance schemes.  Other states still in session like North Carolina are debating introducing combined reporting as well. 

However, legislators in states like New Mexico that have finished their sessions are still pushing to stop the Wal-Mart tax abuse. The top leadership of both legislative chambers and nineteen of their colleagues have signed onto a letter asking their governor to investigate Wal-Mart and shut down the tax loophole administratively:

"We urge you to exercise your authority to investigate Wal-Mart’s tax record in New Mexico. If Wal-Mart has used the captive REIT structure to avoid state income taxes, the state has the power and duty to make Wal-Mart return this money and pay what it owes."

The reason states need such investigations is that in almost all states, companies don't have to publicly report how much corporate income tax they are paying.  An exception is Wisconsin, where records show that Wal-Mart paid only $3 million in taxes on an estimated $852 million in Wisconsin profits between 2000 and 2003, a tax rate of only 0.35 percent. 

In related action, Maine's Governor John Baldacci signed the Informed Growth Act, LD 1810, the first law in the nation to require an economic impact analysis of big-box retail stores to assure that tax and other benefits generated by such stores balance out any subsidies or other tax subsidies used by companies building them.

More Resources

Research Roundup

Research Roundup

Two new studies document the progressive views of younger adults, promising a more progressive future for the country. The New Politics Institute released "The Progressive Politics of the Millennial Generation", which sketches a portrait of Americans born after 1978, as a 50-million voting block in 2008 that is civic-minded, politically-engaged and concerned about economic inequality, has a desire for a multilateral foreign policy, and holds a strong belief in government. Similarly, a New York Times/CBS/MTV poll finds young people more in favor of government-run health care, more open immigration, and legalization of gay marriage.

A new report by the Integrated Benefits Institute shows that health care "market solutions" like increasing co-pays for prescription drugs often cost insurers and employers more due to less use of those drugs, resulting in later illness that often costs far more. 

Responding to recent moves by the nuclear power industry to tout nuclear as the solution to global warming, the Oxford Research Group argues in a new report that not only would building so many new nuclear plants be logistically impossible, it would create multiple flashpoints for nuclear terrorism, both in leaking uranium to terrorists and being choice targets for attack.

Highlighting the rise in economic inequality, the Merrill Lynch/Capgemini World Wealth Report shows that individuals owning more than $1 million in assets increased their total holdings by 11.4% between 2005 and 2006, for a total collective wealth of $37.2 trillion among the super-wealthy.

A report by the Communication Workers of America's SpeedMatters campaign highlights how far the United States is falling behind other countries in high-speed Internet access. Using speed tests by 80,000 computer users around the country, they show that in all of the fifty states, Americans are getting slower and more costly broadband Internet services than countries like Japan, Sweden and South Korea.

Because of the legacy of Colorado's Taxpayer Bill Of Rights (TABOR), Colorado continues to lag far behind other states in investments in state services like K-12 education, Medicaid and basic infrastructure like transit, according to a new study by the Colorado Fiscal Policy Institute. The report is a sobering, cautionary tale for other states considering tax limitation initiatives.

A new report by the Commonwealth Fund, Closing the Divide: How Medical Homes Promote Equity in Health Care, shows that ensuring general access to health care coverage is only part of the solution for eliminating racial and ethnic disparities in health care. Ongoing relationships with medical providers that work with them to manage chronic conditions and provide preventive care are critical in helping make racial and ethnic disparities in access and quality disappear.

Please email us leads on good research at research@progressivestates.org

Resources

Nation's Most Comprehensive Health Plan Approved in Wisconsin Senate

Citizen Action of Wisconsin, Healthy Wisconsin Resource Center (with Plan Details, Talking Points, Bill Language, Frequently Asked Questions)

Healthy Wisconsin, Cost and Coverage Impacts (The Lewin Group) and Legislative Language

www.WisPolitics.com, WisPolitics Budget Blog and WisOpinion.com

Green Jobs Corps in Oakland, CA

Ella Baker Center, Reclaim the Future

Economic Round Table, Jobs in L.A.'s Green Technology Sector

Apollo Alliance, The Ten-Point Plan for Good Jobs and Energy Independence

The Nation, Bernie Sanders Fights for Green Collar Jobs

Progressive States Network, Blue and Green: So Happy Together

Tax Investigation of Wal-Mart in New Mexico

Progressive States Network, Reforming the Corporate Income Tax

Citizens for Tax Justice, New Research Shows Wal-Mart Rigs the System to Skip Out on $2.3 Billion in State Taxes

Institute on Taxation and Economic Policy, Combined Reporting: How Does Your State Stack Up?

Maine Informed Growth Act, LD 1810

Wakeup Wal-Mart, Research on Wal-Mart

Wal-Mart Watch, Model State Policies

Eye on the Right

In an embarrassing twist of irony, the California GOP recently had to use an H1-B visa to hire Australian Michael Kamburowski as their new chief operations officer. It certainly says something when the nation's most populated state can't find a qualified resident, or even another American, to head it's operations, but the real madness lies in the hypocrisy.

It turns out the head of the party, Ron Nehring, isn't aware of anyone having checked the new hire's green card that would prove the legality of his residence. That's because Mr. Kamburowski isn't a legal resident. He was to be deported in 2001, and in 2004 was jailed for visa violations. The plot only thickens with accusations from the RNC treasurer that conservative mastermind Grover Norquist visited California to introduce Kamburowski to party members.

Kamburowski and his lawyer insist that he has become a legal resident since he moved to the US 12 years ago, though it seems the federal government disagrees. Perhaps it's time for a little "touchback" to Australia. Maybe next time the party will practice a little of what it preaches.

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Masthead

The Stateside Dispatch is written and edited by:

Nathan Newman, Policy Director
Mijin Cha, Policy Specialist
Adam Thompson, Policy Specialist
John Bacino, Communications Associate

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Please shoot me an email at jbacino@progressivestates.org if you have feedback, tips, suggestions, criticisms, or nominations for any of our sidebar features.

John Bacino
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