Governor Mitch Daniels: A Plan for Economic Reform

Governor Daniels has an opinion piece today in the Wall Street Journal that lays out his thoughts on how we can reinvigorate the economic condition of the country.  It is a reasonable and timely reminder that there are alternatives to Washington’s government-driven solutions that would help the private sector jump-start the economic engine of the United States. 

As election season officially kicks off, it is clear that improving the economy and the creation of private sector jobs are the key issues facing voters this election. Voters need to know that there are leaders who have ideas that don’t involve more debt and bigger government. 

We have reprinted Governor Daniels’s op-ed in its entirety below and hope you will share it with anyone who is concerned about the direction of the nation’s economy. 

Time for Emergency Economic Reform

By MITCH DANIELS

Ronald Reagan enjoyed telling of the elderly Blitz victim rescued from her demolished London flat in World War II. A fireman found a bottle of brandy under the ruins of her staircase and offered her a nip for her pain. “Leave it right there,” the matron ordered. “That’s for emergencies.” A look around the American economy suggests that it’s time to break out the brandy.

By any measure, growth is anemic—alarmingly so for this time in what is supposed to be a recovery period. The administration’s wild foray into trickle-down government spending has clearly failed. Funneling borrowed billions to government workers hasn’t stimulated anything where it counts, in the private sector.

Moreover, the administration’s big-government policies—most notably health-care reform—are holding back job creation. Drowning in new or pending regulations and taxes, businesses, banks and investors are understandably sitting on dollars that could be putting Americans to work.

Especially ominous are the implications of slow growth for the nation’s burgeoning debt. The government’s projections, which already point to national bankruptcy, rely on growth assumptions we aren’t even close to achieving. They say the economy must grow at an average rate of 3.4% for 10 years—better than any previous decade in a half century. And that is just to achieve disaster, with debt rising to as much as 90% of GDP. To stave off catastrophe, nothing short of a truly vibrant, extended boom will do.

Most Americans don’t know these figures in detail, but they have a strong sense that we are in a dangerous place. As I was leaving a small-town Indiana diner a couple weeks ago, a local said to me, “When the boys in there are discussing Greece, and it doesn’t refer to the cheeseburgers, something is different.” Odds seem strong that a degree of balance is about to be restored to the currently lopsided Congress.

Republicans may not reach a majority, but they will be looked to for constructive answers to this central dilemma of our era. A time-limited, emergency growth program aimed at triggering new private investment should be a primary goal of the next Congress, one hopes on a bipartisan basis.

What might such a project comprise? Here are a few suggestions:

Payroll tax holiday. Suspend or reduce for the emergency period, say one year, the Social Security payroll tax on workers. Offset the revenue loss twice over through a combination of the following four policies.

• Impoundment power. Presidents once had the authority to spend less than Congress made available through appropriation. On reflection, nothing else makes sense. Plowing ahead with spending when revenues plummet is something only government would do. In Indiana, we are still solvent, with no new taxes, money in reserve, and a AAA credit rating only because our legislature gave me the power to adjust spending to new realities. I promise you that a president who wanted to could put the kibosh on enormous amounts of spending that a Congress might never vote to eliminate, but the average citizen would never miss.

 • Recall federal funds. Rescind unspent Troubled Asset Relief Program (TARP) funds and any unspent funds from last year’s $862 billion “stimulus” package, as well as large amounts of the hundreds of billions of “unobligated funds” unspent from previous appropriations bills.

 • Federal hiring and pay freeze. Better yet cut federal pay, which now vastly outstrips private-sector wages, by 10% during the emergency term, and freeze it after that.

 • A “freedom window.” Might we try some sort of regulatory forbearance period in which the job-killing practice of agonizingly slow environmental permitting is suspended, perhaps in favor of a self-certification safe harbor process? Businesses could proceed with new job creation immediately based on plans that meet current pollution or safety standards, or use best current technology, subject only to fines and remediation if a subsequent look-back shows that the promised standards were not met.

 • Accelerated or full expensing of business investment. Economists differ about its success on past occasions, and certainly it involves a degree of pulling forward investment that would have happened eventually. But it seems well matched to the current situation where so much money is cowering on the sidelines, and a burst of new investment might jump-start growth that enables more investment in the future. (Reports indicate that the administration is about to propose this very idea. If so, good.)

Surely there are better ideas or variations on these suggestions that a jobs-minded Congress could fashion. And clearly permanent tax and regulatory moderation is vastly superior to temporary. But to have a prayer of avoiding fiscal ruin, we need to go to economic general quarters immediately.

It may be fanciful to imagine that the Obama administration, chastened by economic reality and an election setback, might join or even champion such a plan. But no one has a bigger stake in the kind of private-sector growth it would attempt to generate. Any hopes of paying for their health-care and other spending schemes depend on it.

With or without Democratic help, Republicans should step forward with these or superior ideas. A stagnant, impoverished America will not be a greener or safer or fairer place. Grown-ups make trade-offs. Pass the brandy, then let’s get busy.

 Mr. Daniels, a Republican, is the governor of Indiana.

Does how We Pay Teachers Impact Children?

The first question we should ask when making education policy is how does the policy impact the educational outcome for children.  When it comes to teacher compensation, we should ask how paying all teachers the same impacts student achievement.

This recent Indianapolis Star editorial argues that we should change the way we pay teachers. We now have a system the basically pays all teachers the same, regardless of educational outcomes. The payoff for the adults seems to be the security and benefits of a union protected job. The benefits for the kids?  Not sure.

Every time there are budget constraints the call comes out that teachers are going to lose jobs. Taxpayers are now aware that the first on the chopping block are newer teachers at the expense of protecting teachers who have been around longer, regardless of other factors.

Forgetting for a moment that you might lose some of your best and most enthusiastic teachers, who might have some fresh ideas on how to educate kids, does it seem fair that the only measure that determines whether or not you lose your job is how long you have had your job?

Wouldn’t our students be better off if they had access to the best teachers, regardless of how long someone has been teaching? And wouldn’t a system that rewarded the best teachers more than the average teacher lead to better educational outcomes for students?

Simply paying teachers more is not going to solve every problem in our education system.  And certainly all stakeholders in education -from administrators, teachers, parents and students – need to understand what is expected of them and be held accountable to fulfill their part of the deal.  But that said, what is the harm in rewarding our best teachers differently than teachers who do an average job?

The Votes are In! Who Supports Small Business in Indiana?

The National Federation of Independent Business put out its rankings for Indiana legislators.  According to the NFIB, not one member of the current Democratic Majority scored above the 70% threshold needed to receive NFIB support.

NOT ONE!

The whole report is here .   But here are some of the greatest hits!

Legislator          NFIB Voting Record

Pat Bauer                      0%

Nancy Michael            33%

Scott Reske                   33%

John Barnes                 33%

Dale Grubb                   33%

Joe Pearson                 33%

Ron Herrell                  44%

As there is a lot of noise out there from a lot of groups, this from the NFIB website www.nfib.com is how they describe themselves.

“The National Federation of Independent Business is the leading small business association representing small and independent businesses. A nonprofit, nonpartisan organization founded in 1943, NFIB represents the consensus views of its members in Washington and all 50 state capitals.

NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses.”

This is truly a non-partisan group. You probably have seen an NFIB sticker in the window of some of the businesses you visit in your community.

This Voting Record should serve as a stark reminder of why it is important to vote for candidates who actually mean it when they say they are supportive of small business and entrepreneurs.  Everyone knows that it is small business that creates jobs, and with economic conditions the way they are, these businesses need all the help they can get.  Growing the private sector, not the government sector, is the way we will get out of these tough times.

With the way Democrats are treating small business in Indiana, NFIB is going to have a hard time finding a Democrats to support.  But there are lots of pro-growth, pro-business candidates on our Candidates page.

Go here today  http://www.aiminghigherindiana.com/find-your-candidate/ and find one to support.

Voters are Tired of the Big Spenders and are Showing them the Door

This election cycle has seen voters show their wrath at big spenders.  This recent report by ABC news illustrates the phenomenon well.

Voters, who are seeing their own family budgets dwindle, are tired of political leaders who spend taxpayer money like teenagers with thier first credit card.  These voters are forced to make tough spending choices for their families every day, yet they watch the President and Congress ratchet up the debt with little or no regard for the future.

Governor Daniels recently told a group of young professionals that they were about to “get the shaft” with all the debt being loaded on them.  He also has chastised his own generation for what he called their immoral behavior of taking care of themselves at the expense of future generations.

In Indiana, Governor Daniels has made it his administrations strategic objective to allow Hoosiers to keep more of their money.  He has cut the size of government and refused to spend more than the state takes in.  Despite the howls of the big spending opposition, his leadership has garnered him a 65% approval rating.

Under the proposed 2009 budget of the current Democrat House leadership, Indiana would have budgeted for more than $2 billion than it would have brought in.  The state would have gone broke last December under their plan.

That is just not serious leadership, and it needs to be replaced.

Governor Daniels has recruited a new set of candidates who share his vision of keeping taxes low and making government more efficient and responsive to taxpayers.  Go to our Candidates page, find one in your area, and help Governor Daniels elect them to the Indiana House of Representatives on November 2.  He needs allies who are serious about leading Indiana.

As an educator, Wendy McNamara understands how reform benefits Hoosier students

As someone who has spent the last 15 years as a teacher and education administrator, Wendy McNamara has seen first hand what works and what doesn’t to help Hoosier students.  That’s valuable experience that will go a long way in the Indiana House of Representatives.

Perhaps most importantly, Wendy understands children today need educational options that fit their individual needs and desires.  As the Director of the Early College High School, she currently works to help students both prepare for college and earn college credits while still in high school.  That early start will be highly beneficial in helping the next generation of Hoosier leaders get a head start on their careers.

Wendy has also been recognized numerous times by her education peers for her outstanding work helping students.  Most recently, she was recognized by the Indiana Council for Economic Education as the Lawrence Senesh Administrator of the Year. She has been in Who’s Who Among America’s Teachers and received the Bosse Teacher of the Year Award, 2001 – 2002 and the Indiana National Guard Nighthawk Educator Award in both 2000 and 2006.

If we really want to move the needle on education reform in Indiana, we need to send more educators like Wendy to the State House.  You can learn more about her and her campaign at www.WendyMac2010.com.

Is More Money the Answer to the Question Everyone is Asking?

In the ongoing education debate, it seems that “more money” is often the reflexive answer when the question is “how do we improve educational outcomes for kids.”

But since education spending has gone up repeatedly over the years, yet outcomes seem to be stagnant, can money really be the answer?

The State of Indiana spends about half of its budget on K-12 education.  Over the last 10 years education spending has increased from $4.5 billion a year to about $6.5 billion a year.  Even if that continued growth in dollars was desireable and proven to make a difference, in this current economic environment, is it reasonable to think that the State can continue its history of ever increasing education budgets?

Many states have gutted education during the economic recession.  Because of strong fiscal management, Indiana on the other hand cut $300 million, and while that is a lot of money, it is only a small percentage of the overall spending on education.  Luckily, the state seems confident that further cuts will not be needed to get to the end of the fiscal year.   But what of next year, and the years after?

About a year ago, Governor Daniels wrote in the Wall Street Journal that he suspected that   ”What we are being hit by isn’t a tropical storm that will come and go, with sunshine soon to follow. It’s much more likely that we’re facing a near permanent reduction in state tax revenues that will require us to reduce the size and scope of our state governments. And the time to prepare for this new reality is already at hand.”

Indiana has a proud history of funding education.  But these are tough times and taxpayers deserve to know they are getting a good return on investment.  It is time for us to reward the best teachers, and focus our education dollars in the classroom.  It is time for school districts to focus on their primary task – educating kids – and get rid of task that can be done more cost effectively by others.

“(A)s we confront an uncertain and rapidly changing American economy, we must accept that more money is not the answer to the problems that challenge Indiana’s schools,” Bennett said.

Our state’s leaders owe it to taxpayers to spend their money wisely, and they owe it to children to find creative ways to educate them.

The State of Education …. is Changing!

“We are putting students first because ‘students first’ is the right thing to do. And by having the courage to do what is right – instead of what might be safe or polite or popular – we are opening doors to educational opportunity for each and every one of our children.”

So said Dr. Tony Bennett, Superintendent of Indiana Public Schools, during his first State of Education address.  It’s a sentiment that is long overdue.  Let’s hope that all the adults who are part of the education debate agree and live up to the idea that all decisions about education should be made by looking through the prism of how does a policy decision or action impact kids.

To that point, Dr. Bennett said he will fight to “make student learning the primary consideration for teacher promotion and recognition.” Currently, how long a teacher has taught and the degrees they hold are the main criteria for how a teacher is rewarded.

This would be a change in worldview for many, but a much needed one.  And it would flow nicely with Dr. Bennett’s growth plan, which would evaluate whether students are learning by measuring their academic growth in one year.

Tony Bennett is an aggressvie leader and he ended his address with this; ”It’s going to take bold proposals to transform educator accountability. Make no mistake, ladies and gentlemen, small changes won’t cut it, and we’re not here to make small changes.”

If Indiana is going to continue to differentiate itself from other states, we must continue to balance budgets and let private sector jobs be created.  But that will only allow us to go so far as a state.  If you care about the future, you must join the fight to make Indiana a place where education is truly valued, where every child has a chance to succeed, and where stong educators are rewarded.

In Tony Bennett, we have someone to lead that fight.  In our House candidates, we also have people who want to engage in that fight.  Go to our candidates page and find one to support.

Rhonda Rhoads is Pro-Education, Pro-Taxpayer

Harrison County’s Rhonda Rhoads knows about education.  After graduating high school, she received her Bachelors degree in education from Indiana State, followed up by here Masters in Education from Indiana University. Rhonda then spent 29 years as a non-union teacher in the North Harrison Community School Corporation.

Now Rhonda is running to be State Representative in District 70 so she can bring her experience in the classroom to work in the Indiana House of Representatives.  She believes that our best teachers should be paid more and that our education dollars need to be focused on the classroom.  Currently, Indiana only spends 63% of the nearly $11 billion we spend on education every year on classroom instruction.  The national average is near 66%.

In addition to education issues, Rhonda believes in protecting taxpayers and getting government out of the way so the private sector can create jobs.  Even though Indiana leads the nation in private sector job growth, we need leaders in the Statehouse who will work with Governor Daniels to continue the work of developing a strong business climate.  Rhonda’s history of supporitng a pro-growth environment  helped earn her the endorsement of the Indiana Manufacturers Association.

Rhonda was first elected to the Harrison County Council in 2000 and was reelected in 2004.  She served as vice-chair of the council in 2004-2005.

Help bring Rhonda and her pro-education and pro-taxpayer ideas to the Statehouse so Governor Daniels and the citizens of Indiana will have another ally.  To find out more about Rhonda, go to http://rhondarhoads.com/ .

Teachers: Pay the Best More!

In most professions, the best employees are generally  paid more than average employees.  But in education, that is not the case.  Why?  Don’t you want to be paid more in your job than a co-worker who is not as productive?

Public school teachers work under a collective bargaining agreement that locks in salaries for teachers based on tenure.  That is, the longer you work, the higher your salary, regardless of other factors. In 2008, average teacher salary in Indiana was $48,508 according to the National Education Association, or about $32 per hour.

Is longevity a fair or prudent way to compensate teachers?  Each spring when local school districts wrestle with budgets and dire warnings are made about firing teachers (many of whom are ultimately brought back), the first on the chopping block are the newest teachers.  It has been highlighted recently in the Indy Star that some of the best and brightest, but also newest, teachers in Indianapolis Public Schools were going to be let go, preserving jobs for longer serving teachers who may not have been as effective in the classroom.

That seems like a crazy way to run any organization, but especially one that is responsible for the education of 90% of students in Indiana, and thus ultimately should be accountable to the taxpayers of this state.

Certainly money is not the only motivator.  Teaching is a calling for many, and more money alone would not automatically make someone a better teacher.  But its human nature to want be rewarded for doing a good job, and it seems any compensation system should consider some measure of performance.

As Indiana continues on its journey of reform and change, perhaps the time has come to have a real discussion about how we as a community want our educators compensated. Shouldn’t the best be paid more?

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Kim Builta knows what it means to create jobs for Anderson

Candidates for nearly every office often talk about the importance of job creation and managing a budget, but what makes Kim Builta different is that she has experience with both.  As the president and owner of Rowland Title Company–one of Indiana’s oldest and most successful title companies–Kim knows what it takes to run a business.  She’s hired employees, managed expenses and made sure revenues were coming in.

As Indiana prepares to face one of the toughest budget sessions in decades, and the national recession continues to put a damper on job growth, we need to elect leaders like Kim Builta who have been in the trenches running small businesses.  In places like Anderson, where the decline of automobile manufacturing has left a big mark, it’s vital to bring in new legislators to help turn things around.

Kim is committed to the Anderson area, having lived there since her teenage years.  Her children grew up in Anderson as she worked her way up the ladder at Rowland.  As a member of the Chamber of Commerce of Anderson and Madison County, the Madison County Builders Association and several other local organizations, she has heavily invested her time in the area and knows her neighbors and fellow citizens well.

You can learn more about Kim at her website www.KimBuilta.com.