Nebraska Pulse Political Blog

News and Views about Politics in the Great State of Nebraska

Look to Europe For Health Reform’s True Costs

No Comments »

Just as the U.S. enacts its own version of an universal health-care system, Europe is struggling with how to trim costly social-welfare benefits that have acted as a long-term drag on hiring and economic growth.

That’s according to an article Thursday in The Wall Street Journal, a sister publication of MarketWatch, in a frontpage article titled, “Europe’s Choice: Growth or Safety Net.”

Of course, the U.S. is still far from becoming a European-style social democracy, but Republicans plan to try to paint President Obama as exactly that in the fall elections. They argue that higher taxes to pay for the new health-care law and proposed regulations on key sectors like energy and finance will hurt U.S. competitiveness at a time of high unemployment.

If the jobless rate stays near its current rate of 9.7% when the November elections arrive, that argument might just hold some sway with the public.

Democrats scoff at the notion, and Obama has taken delight in mocking opponents who accuse him of being a socialist. He and other party leaders say the public will view health care more favorably as the benefits become known and some of wilder claims of Republicans fail to pan out. They insist there’s no turning back and vow to defend the health-care overhaul vigorously.

“We are not going to let them take it away from the American people,” an emotional Tom Harkin, D-Iowa, said Thursday after the Senate passed a fix-it bill to the main health-care law.

In a turnabout, Europe is having a different debate. They are trying to figure out ways to cut the costs of their social-welfare state, boost efficiency and competitiveness and create more jobs. They are loathe to become identical to the U.S., whose system they view as too callous, but they are worried about their future prosperity and their ability to fund existing programs.

According to the Journal article on the European Union: “Its 16 member nations now face a stark choice. They can spur economic growth across the region by following through on long-overdue pledges to trim benefits and free up labor markets. Or, many economists say, they can face a decade of economic stagnation.”

In short, there’s no free lunch. Every benefit has a cost, and sometimes too many benefits can be just as harmful as too few. The U.S. and Europe are both groping for an ideal middle ground between social welfare and economic growth – a process that’s contentious as ever as the health-care debate showed.

Obama Labor Board Recess Appointment Controversial

No Comments »

One of President Obama’s Saturday recess appointments to the National Labor Relations Board quickly triggered intense opposition from business groups and Republicans, who called the appointee a radical who represents a White House gift to labor unions.

The fury is aimed at Obama’s appointment of Craig Becker — a labor lawyer — to the NLRB, the federal agency that oversees relations between unions and employers.

“Mr. Becker’s prolific writings … suggest a radical view of labor law that flies in the face of established precedent and case law and is far outside the mainstream,” the U.S. Chamber of Commerce said in a statement Saturday.

“This recess appointment disregards the Senate’s bipartisan rejection of Craig Becker’s nomination to the NLRB,” said Randel K. Johnson, the chamber’s senior vice president of labor, immigration and employee benefits. “The business community should be on red alert for radical changes that could significantly impair the ability of America’s job creators to compete.”

Obama announced Saturday that he will make recess appointments of 15 nominees to administration posts who are awaiting confirmation by the full Senate. None has generated nearly as much outcry as Becker.

The Republican National Committee sent out a memo Saturday titled “Union Bosses’ Bailout Begins — Recess Appointment Of Becker Payback From Obama To His Union Paymasters, With More Job-Killing Bailouts To Come.”

Becker is currently a general counsel for the Service Employees International Union and for the AFL-CIO. He has taught at the law schools of the University of Chicago and Georgetown University, among other places.

Business groups and Republicans say that Becker has voiced support for skirting Congress to enact so-called card-check legislation regarding labor unions. They say that he has proposed that the bill be enforced through federal regulators such as the NLRB.

The card-check bill — officially called the Employee Free Choice Act — would allow employees at a workplace to join a union if a majority signed cards. Opponents say the system is undemocratic because it discourages secret ballot elections.

On Thursday, all 41 Republican senators signed a letter urging Obama not to appoint Becker, saying it would “bypass the advice and consent traditions of the Senate.”

Senate Republicans, along with two Democrats, effectively blocked Becker’s nomination on February 9.

“The president’s decision to override bipartisan Senate rejection of Craig Becker’s nomination is yet another episode of choosing a partisan path despite bipartisan opposition,” said U.S. Senate Minority Leader Mitch McConnell.

McConnell also objected to Obama’s appointment of Mark Pearce, a labor lawyer, to the NLRB, because he said that both he and Becker are Democrats.

“This is a purely partisan move that will make a traditionally bipartisan labor board an unbalanced agenda-driven panel,” he said in a statement.

Many other Republican lawmakers blasted Becker’s appointment.

“This is clear payback by the administration to organized labor,” said Sen. John McCain in a statement on Saturday. “Time and again questions have been raised over Mr. Becker’s ability to serve in an honest and impartial manner on the NLRB, yet this administration chose to ignore the questions and concerns and instead forced their will on the American people.”

Labor groups, meanwhile, applauded Becker’s appointment.

“When jobs are scarce, workers are often forced to endure unfair working conditions,” said Kimberly Freeman Brown, executive director for American Rights at Work. “America’s workers need a fully functioning NLRB to mediate their claims for better wages, benefits and other rights now more than ever — and after two long years they have one.”

SkillsUSA Makes Final Stop in Columbus

No Comments »

Saturday’s awards program at Central Community College marked the sixth and final year of the Nebraska SkillsUSA State Leadership and Skills Conference in Columbus.

The competition, which kicked-off Thursday, will move to Central Community College-Hastings next year. Columbus was chosen as the host site for two, three-year terms. The first conference was held here in 2005.

Greg Stahr, state director of SkillsUSA Nebraska, said Columbus has been a great host site for the event because of the willingness of local and area businesses and industries to get involved.

SkillsUSA is a national organization that readies students for the work force.

“We prepare our young people to be world-class workers and responsible American citizens,” Stahr said.

The conference features students in secondary and post-secondary school. They take part in a variety of contests, including trade, industrial, technical, technology and health occupations, leadership, citizenship and character development programs.

The contests are judged by people involved in business and industries, which was new when the competition moved to Columbus. Previously, judges were educators. Allowing businesses to be a part of the competition exposes them to the future work force.

“They need to see what our kids can do. Kids have skills and are willing to put themselves on the line. Some will fall on their faces and others will do well,” Stahr said.

There are about 70 SkillsUSA chapters in Nebraska and about 65 were represented at the state competition, including teams from Columbus High School and Central Community College-Columbus. Overall, about 850 students, 100 advisers and 250 contest judges and coordinators took part.

During the event, students competed in a variety of contests.

“They come to compete in hands-on skills contests and leadership contests,” he said. There are about 100 contests and some of those include carpentry, computer maintenance, fire fighting, masonry, photography and welding.

After opening ceremonies Thursday at the college, leadership contests got under way. More contests were held throughout the day and evening Friday, and the awards ceremony was Saturday.

First-place winners at the state conference are eligible to participate at the national conference in Kansas City, Mo., in June.

Senator Johanns Release Highlights Real Healthcare Reform Costs

No Comments »

Sen. Mike Johanns today issued the following statement after a string of reports on the negative impact the new health care law is having on America’s businesses and their employees:

“The President signed the new health care law just three days ago, and already, several major American companies are reporting its dramatic financial impact. The announcement today that AT&T will have to make a $1 billion revision to its first quarter balance sheet because of the new health care law comes on the heels of similar announcements from other major employers such as John Deere and Caterpillar. Businesses large and small are struggling to stay afloat and make payroll, yet Washington continues to swamp their boats with higher taxes and more regulations. Throughout the health care debate, I repeatedly raised concerns that the new law’s burden on businesses and their employees would be harmful to the economy. Unfortunately, when Washington rams through a mammoth piece of legislation, outright rejecting improvements suggested by the minority, there will be negative consequences. I fear these stifling taxes on businesses are only the start. It’s only a matter of time before these burdens lead to decreased benefits and wages to employees or worse – more layoffs and less hiring.”

Background:

“AT&T Inc. Will Take A $1 Billion Non-Cash Charge In The First Quarter Because Of The Health Care Overhaul And May Cut Benefits It Offers To Current And Retired Workers.” (“AT&T Will Take $1B Non-Cash Charge For Health Care,” The Associated Press, 3/26/10)

“Deere & Company, Iowa’s Largest Manufacturing Employer, Said In A Statement This Morning That The Recently-Passed Health Care Legislation Will Cost The Company $150 Million After Tax This Year.” (“Deere Says Health Care Bill Will Cost It $150 Million,” Des Moines Register, 3/25/10)

“Caterpillar Inc. Said Wednesday It Will Take A $100 Million Charge To Earnings This Quarter To Reflect Additional Taxes Stemming From Newly Enacted U.S. Health-Care Legislation.” (“Caterpillar Takes Hit On Health Care,” The Wall Street Journal, 3/25/10)

“3M Company Today That It Expects To Record A One-Time Non-Cash Charge Of $85 To $90 Million After Tax… Resulting From The Recently Enacted Patient Protection And Affordable Care Act.” (“3M Anticipates New U.S. Healthcare Law to Result in One-Time Charge of $85 — $90 Million After Tax in First Quarter of 2010,” 3M, 3/26/10)

“AK Steel Holding Corp., The Third Largest U.S. Steelmaker By Sales, Said It Will Record A Non-Cash Charge Of About $31 Million Resulting From The Health-Care Overhaul Signed Into Law By President Barack Obama.” (“AK Steel Sees $31 Million Charge From New Health Law,” Business Week, 3/23/10)

Nebraska’s economy called not as dire

No Comments »

Omaha.com reports that “Nebraska will face challenges as its economy recovers, but the situation won’t be as dire as that facing many other states, according to the Nebraska Business Forecast Council.”

“Nebraska will benefit from relatively strong key industries, including agriculture, and stable property values,” said Eric Thompson, a University of Nebraska-Lincoln economist who helped write the report.

The story notes that “the forecasters expect that the U.S. economy will begin to grow before the end of 2009,” and “in 2010, the economists expect solid job and income growth, with farm incomes stable and above average.”

China Sending Jobs to Central City, NE

No Comments »

Two businesses are teaming up to bring jobs from China to Nebraska following a ribbon cutting held last week in Central City.  According to the story, “Sunheat Zone Heating Products announced they’ll move cabinet production from overseas back to Nebraska. The collaboration shows just how strong Nebraska’s economy is, according to Governor Dave Heineman.”

For the full story, go to http://www.kolnkgin.com/home/headlines/49634937.html

North Dakota and Nebraska Ranked as the Least Stressed States

No Comments »

The AP reports that “California, Michigan and South Carolina suffered the most financial pain in May as unemployment, home foreclosures and bankruptcies rose,” while “North Dakota and Nebraska” were the least stressed states.”  “Both states also fared the best over the past year,” the story notes, adding “Nebraska has benefited from the relative strength of two of its main industries: agriculture and food-production.”

See the story at http://www.omaha.com/article/20090706/MONEY/707069926

While the U.S. economy struggles, ten states — including Nebraska — are doing OK

No Comments »

The Christian Science Monitor reports that “the economies of 10 states are outperforming the U.S. economy as a whole, according to a just-released study by the Nelson A. Rockefeller Institute of Government, an independent research group in Albany, NY.”  According to the magazine, “the two biggest reasons, say the authors of the report, are that most of these states have economies that benefited through much of 2008 from high and rising oil and natural gas prices, and their real estate markets have not suffered the bust to the extent seen elsewhere.”  Donald Boyd, co-author of the report, and other analysts say that the ten states (Alaska, Wyoming, Louisiana, Nebraska, Texas, Iowa, New Mexico, Utah, Oklahoma, and South Dakota) did not enjoy the real estate boom seen in places like California, Arizona, and Nevada – and therefore have not gone bust to the same degree.  The Monitor reports: “That’s because banks did not practice what Bob Denk of the National Association of Home Builders (NAHB) calls the ‘grotesque deterioration of lending standards’ which fueled housing demand and produced rapid price increases

Nebraska energy plan touts renewable energy mandate

No Comments »

The Nebraska Energy Office is proposing that the Legislature do something it has yet to do. Require the state’s utilities to generate a minimum amount of electricity from renewable sources. The proposed plan, which provides a vision but is nonbinding, continues Nebraska’s heavy emphasis on ethanol as a transportation fuel and calls for more aggressive efforts to construct energy-efficient buildings.

Hundreds of Nebraskans contributed suggestions that were incorporated into the draft plan, said Jerry Loos, spokesman for the Nebraska Energy Office. The 22-page plan is available for public review, and final suggestions are due by Jan. 23. A so-called renewable portfolio standard – or minimum requirement for electricity to be generated from renewable energy sources has never made it out of the Legislature.

Renewable sources can include solar, wind, methane gas and hydropower dams. Don Preister, a former state senator who championed a minimum standard and made several attempts to get one passed, said he’s glad to see the idea in the plan. NPPD’s board will discuss the renewable portfolio standard today at a committee meeting. OPPD is still going over the proposed plan and is developing its own goal for renewable energy. Preister said he believes that 25% of Nebraska’s electricity can be generated from renewable sources by 2025.

Nebraska utilities have been at a tax disadvantage compared with other utilities when it comes to the development of renewable energy because the state’s utilities are publicly owned and don’t benefit from tax credits that the government uses to encourage investor owned utilities to build such things as wind farms.

Potholes may lie in funding path for Nebraska road work

No Comments »

The economy presents major roadblocks for any road bonds legislation in the 2009 Legislature, which convenes Jan. 7. In a pre-session survey of Nebraska lawmakers, only nine senators supported going into debt to build roads. Eight opposed it. More than half in the survey 22 were undecided. (Not all lawmakers responded to the survey.)

Several said that although they were intrigued by the concept, economic uncertainty made it difficult to commit. The Greater Omaha Chamber of Commerce is joining chambers from across the state in pushing a proposal to authorize the issuing of bonds for major roads projects. They say lawmakers shouldn’t let short-term considerations keep them from considering longer-term fixes to the state’s problems paying for roads.

Senator Mike Friend of Omaha plans to introduce a road bonds bill. Most states issue bonds for road construction; 41 states currently have outstanding bonds. But both Nebraska has no current road bonds and has been reluctant to issue them. Nebraska has issued a mere $20 million worth of road bonds in its history. Those bonds in 1969 helped complete Interstate 80 across Nebraska. With a growing state and local road construction backlog and falling gas tax revenues, some advocates say it’s time for Nebraska to consider issuing bonds to fast-track highway improvements.

The Omaha Chamber this past year pitched a road bonds proposal to local government officials and business leaders statewide. It drew particular interest in communities along the state’s proposed expressway system major projects on which construction has largely ground to a halt. For example, the expressway between Omaha and Norfolk was supposed to have been completed in 2003, but no work is scheduled on the project in the next 15 years.

As drafted, the chamber proposal would authorize the state to issue up to $250 million in road bonds to fund major projects. A five-member board would decide which projects would be funded based on need and their economic development potential. The plan also would create a fund from which local governments could borrow for road projects. A state revenue source would have to be designated to repay the bonds, although the proposal currently does not specify what that would be. Other states typically allocate a portion of the gas tax or other road-related revenue for that purpose. Although there is concern about going into debt to pay for roads, chamber officials say high inflation in road construction actually makes issuing bond cost-effective.

The cost of road construction has been increasing at double-digit rates over the past five years, at one point hitting an annual rate of 27%. At those levels, advocates of bonds say, it makes economic sense to borrow at 5% interest to build the projects now. Governor Dave Heineman has voiced opposition to road bonds. And the survey of state lawmakers shows there are other potential potholes.

Senator Tony Fulton of Lincoln said the potential of beating inflation by issuing road bonds makes him open to the proposal. However, he said, indiscriminate borrowing is one of the reasons the national economy is in such sad shape.