Fixing What’s Wrong, Not Breaking What’s Right

September 12, 2009 in Health Care Reform, Indiana by Staff | 2 comments

By: Wes Culver

The American health care system is ailing and policymakers at the national level are experimenting with various prescriptions trying to determine which one will cure the patient.  If we are not careful though, in our search for a cure we may end up failing to fix what is wrong with the system and harming what is already right with it.  I believe that our health care system can be fixed by giving it a strong dose of patient oriented reform that puts individuals and their doctors at the center of the system and forces third-parties to take a back seat role.  Overreaching federal regulation, heavily regulated insurance companies, and overzealous trial lawyers should not be in the driver’s seat of this vehicle.

For years we have looked on the health care sector as something different and unique from other consumer products or services.  While it certainly possesses dimensions that other sectors do not have, it is not too unique to be exempted from the innovative mindset that has generated advanced technology and better products at a reduced cost in other areas of our economy.  If we can make high quality electronic devices widely available at an affordable price, I think it is time for us to look at harnessing the principles that made that happen and put them to good use lowering the cost of health care and increasing our accessibility to that care.

The problem we must grapple with today in improving our health care system is not one of quality, but of affordability and accessibility.  Today, 85% of Americans are satisfied with the quality of care they receive from doctors, hospitals and other health care providers.  Yet even as the majority of our population approves of the job that our medical professionals and institutions are doing, no one is satisfied with the rising cost of that care.  From 2000 to 2008 the annual cost of employer provided health insurance rose from $6,438 per family to $12,680 per family.   Our nation annually spends $2.4 trillion on health care.

According to the President and Democrat members of Congress, the best way to control rising health care costs and increase accessibility to health insurance is to create a “public option” insurance plan that puts the federal government in charge of your medical care.  Observing the incompetency of Medicaid and the trillions of dollars in unfunded obligations in Medicare, expanding the federal government’s role in the health care sector is a bad idea.  Furthermore, our neighbor to the north, Canada, has been on a sort of public option health care program for decades and they recently concluded that the system has failed and now they are moving away from the direction the President wants to take us.

If the solution offered by Washington, D.C. is wrong, what can we do to fix our health care system?  I am proposing that Indiana do three things at the State level to lower costs, improve accessibility, and advance the quality of care that Hoosiers receive.  First, we should eliminate the mandate that our state places on insurance companies that their health insurance plans contain certain policy elements.  This mandate discourages insurance companies from competing in Indiana and limits Hoosiers to choosing from plans that might not be the best ones for them.  Second, we should allow Hoosiers to buy insurance from companies not located in Indiana and not currently competing in the Indiana insurance market.  By breaking down this barrier that surrounds our state, we can foster a more dynamic and competitive environment that gives Hoosiers access to more affordable health insurance.  Third, we can institute a system that calls for price transparency in all medical procedures.  Just as you expect to know what a particular item or service will cost you in another sector, you deserve to know what a particular health care procedure or service will cost you.

By moving forward at the state level with reforms that do not involve costly, inefficient and wasteful government programs that dictate how much health care you can access, we can make Indiana a leader in the area of affordable health care.  It’s time for us to once again become an innovator and build a better future for ourselves and those who will use the system after us.

State Rep. Wes Culver represents the 49th District in the Indiana House of Representatives.  Any questions or comments about health care can be directed to him by e-mailing healthcare@electwesculver.com.

The Real Story of Elkhart County

August 25, 2009 in Economy, Elkhart, Indiana, Jobs by Wes Culver | 1 comment

A couple of weeks ago President Obama visited Elkhart County, Indiana for the fourth time in roughly a year.  Our community has become a backdrop against which he feels he can communicate his policies.  It is to be expected that when a president visits an area, all eyes are on him.  That is unfortunate, because the real story, and quite an opposite one, is happening off camera here in Elkhart County.

Because our entire local economy rests heavily on the RV industry, when it fell under the weight of soaring energy prices in 2008 the entire region felt the blow. We experienced some of the nation’s fastest growing unemployment rates—rising over 350% in roughly twelve months from 5.5% to 18.9%.

The story that has not been told, and that must be told before the president takes undue credit, is that in the last two months our county has seen its unemployment rate decrease while the rest of our state and the rest of the country have seen unemployment rates continue to increase.  What’s more, federal stimulus money has not been the source of this growth nor has it been the source of the long-term growth we see beginning to taking place.  Our local county commissioners, county council and Economic Development Corporation have worked tirelessly to bring in new business. They are successfully diversifying our business mix. They are doing the work, but were not invited to attend the Presidents event as he takes the credit.

Our county has been known for starting new businesses, creating patents and having an incredible workforce.  The entrepreneurial spirit is alive and well here in the heartland of America.  We do not have a large union labor force, a powerful local bureaucracy, or a dependence on government subsidies.  These are the reasons why our community will recover, and yet it is because of federal stimulus money that the president will likely take the credit for the recovery.

The cameras were on the President’s speech when he was here.  Yet, as the late Paul Harvey would say, ‘now for the rest of the story’.  Many of those invited to attend and hear his speech were bused in from out of town and out of state.   There was another, much larger crowd present outside, but they weren’t there to cheer him on.  According to some news reports it was estimated that 600 local people made up this crowd.  They were business people, local elected officials, young adults, teachers, and retirees.  They peacefully and articulately spoke about the misguided decisions they feel are being made by our President.

The White House released a statement before the event urging people to not pay attention to this “manufactured anger.”  What they must have overlooked is that the people at the alternative event are local citizens who were not bussed in. They are the backbone of America, the blue collar workers, the small business people, and the ones who are the true instruments of change.   They have different views, they were exercising their right of free speech and they see serious flaws in the President’s policies.

We in Elkhart County ask that the next time you hear the president taking credit for something, look beyond the self congratulatory remarks and understand that the real credit is owed to and shared by the very people who make up Elkhart County.

In the News – Wes on Health Care Reform

August 18, 2009 in Elkhart, Health Care Reform, In The News, Indiana by Wes Culver | 2 comments

Following his press conference in Chicago last week, Wes’s remarks on the subject of health care reform were featured on WSBT-TV and in the Elkhart Truth.  You can find the Truth’s story here and see the WSBT coverage below.

Wes is focusing a lot on how various state and federal issues interact to impact the people of Elkhart County and the entire state.  Moving the economy forward and reforming our health care system requires careful, thoughtful analysis of the problems that face us, the reform plans on the table, and how we should go about maximizing freedom with the right kind of reform.

A great way to stay up-to-date on what Wes is doing is to sign up for his e-mail newsletter “Common Sense”.

Wes Culver’s Statement at Chicago Press Conference

August 13, 2009 in Health Care Reform, Indiana, Press Events by Wes Culver | 1 comment

Note: On Thursday, August 13th, Rep. Culver spoke at a press conference in Chicago with a number of state legislators from around the nation. They addressed the topic of how national health care reform proposals will impact the states, and what states can do to begin the process of providing solutions to our nation’s health care challenges. What follows below is an excerpt of Rep. Culver’s remarks, as prepared for delivery.

“The American people want health care reform; they just don’t want the disaster that Washington is offering them right now. Today, our health care system stands in need of vital systemic change. Accessibility, accountability, and affordability must be increased so hard working individuals and families across this nation can find it easier to get the medical care they need.

“But reform simply for the sake of reform will not do. The 1,000 plus page proposal put out by Speaker Nancy Pelosi, and advocated by President Obama, is far too costly for our country. In my state of Indiana, every man, woman and child will find themselves on the hook for $4,247 in combined state and federal obligations if this measure becomes law. If the federal government ends up forcing the states to pick up the cost of extending health care benefits to more lower-income individuals, essentially creating a tremendous new unfunded mandate, every person in Indiana will face an additional $900 in tax liability.

“Through our Healthy Indiana Program, and our CHOICE program for senior citizens and the disabled (Community and Home Options to Institutional Care for the Elderly and Disabled), Indiana has focused reform attempts on the critical doctor-patient relationship. By including measures that give an ownership interest in their health insurance plan to the people enrolled in those programs, we have seen the level of care that these people receive increase while the number of unnecessary emergency room visits decrease. Appropriate federal and state health care reforms will focus on empowering consumers to connect with producers to achieve healthier outcomes for all.” — Rep. Wes Culver (R-District 49)

The Costs Keep Adding Up

July 28, 2009 in Higher Education Reform, Indiana, Public Universities by Wes Culver | 2 comments

By: Wes Culver

Are our state universities financing inefficiencies on the backs of students? Recently Purdue University announced a 5% increase in its tuition rate in addition to a new annual per-student $500 surcharge that must be paid on top of tuition and room and board fees.  These increases are, according to a trustee, necessary to maintain Purdue’s status as an excellent school.  Purdue is not the only state funded university looking to raise tuition rates.  Indiana University, Ivy Tech, Ball State, Indiana State University, Vincennes University and Southern Indiana University are all proposing or adopting tuition increases in the 4%-5% range for the upcoming academic year.

The rise in tuition rates at Indiana’s state funded public universities is not without precedent.  According to Andrea Neal, a scholar with the Indiana Policy Review Foundation, the historical trend in Indiana is for college tuition rates to double every 10 years.*  This figure does not include increases in room and board fees that also come on a frequent basis.  In 2006 Indiana earned an “F” from the National Center for Public Policy and Higher Education in terms of college affordability.  Hoosier students and their families bear a heavy financial burden when they pursue a college education.  Those who chose to finance their degree through a private loan frequently find themselves paying much more for their degree once interest on the loan is factored in and paid back. 

But the cost to students is more than just a financial one, as young people trying to start life often find the cloud of college debt hanging over them and their finances to be a hindrance to personal and professional development.  If we are going to make sure that Indiana is ready for the 21st Century economy, we must reform our college education system to make it more affordable and more accountable.  The rising costs hurt many students, and all too often have the disappointing effect of discouraging many well-qualified high-school students and adults from pursuing a college degree.

There are ways to make college education more affordable. Let me suggest three ways to achieve this goal.  First, we can start the reform process by requiring every college faculty member to personally teach at least two subjects per semester. Many professors teach no classes at all, but are paid to do research.  Since up to 75% of a college or university’s budget relates to personnel expenses, maximizing our faculty resources will help us control costs.  If a faculty member is unable to proficiently educate students, or fails to fully perform teaching duties, their compensation will be adjusted downward in proportion to the handicaps faced by students who were unable to maximize their class time.

To help control long-term cost, the General Assembly should form a study committee to look into the two highest costing budget items for our public universities: faculty and staff compensation and capital expansion and renovation projects.  Reforms in these areas, including stricter accountability measures between faculty and school for compensation, and between schools and the state and students for capital expansion projects, will allow us to make college more affordable in Indiana.

Secondly, our state’s public high-schools should be offering classes to students that will transfer over to college credits once the student enrolls in a state college.  Because many of the things a student learns in their first two years of college have a very similar relationship to what they learned in high-school, there is no reason why bright students should be denied the opportunity to get a jump start on college while saving money. 

Third, if we began to require schools to help students maximize their tuition and time by giving them better guidance on what type of classes they will need to take to complete the degree that they want, we would see a decrease in the number of graduates who take 5 years to complete a 4 year degree.  Schools that organize class schedules inefficiently, and provide little support to students as to what their major requires, should face penalties for actions that result in students spending more of their own money and time on a degree that should have taken them less time and cost them less money.

We will not suddenly reshape Indiana’s college education system overnight.  But we can begin the process of controlling costs and increasing accessibility by expanding accountability and opportunity.  Indiana must have an edge to compete today, and we cannot afford to settle for an “F” grade in our college accessibility rankings.  Our students deserve better, and our future success demands more than what we are doing now.

*Neal, Andrea “The Hidden Costs of Higher Education”, Indiana Policy Review Summer 2008 p. 7

Cap Spending and Grow the Economy

July 6, 2009 in Economy, Jobs, State Budget by Wes Culver | 1 comment

By: Wes Culver

Last year when state government worked to produce a property tax reform plan that capped property taxes, they took a step in the right direction.  The problem of rising property taxes is a regular story in Indiana.   It is almost with cyclical frequency that every decade or so we see Hoosier property owners rightfully express indignation about rising property tax bills. 

In 2008 the property tax reform effort centered on shifting the cost of some local government activities to the state, raising the statewide sales tax from 6% to 7%, an overall increase of 16%, and placing caps on how high a tax bill could go in relation to the assessed value of the property.  For residential real estate the cap was placed at 1%, for rental property the cap was set at 2%, and for business property the cap was placed at 3%.  In 2010 these caps will be fully phased in and already many Hoosier property owners are seeing some form of property tax relief.

If we are not careful, though, the plan that we passed in 2008 will need to be fixed again in the not-so-distant future because we failed to address the fundamental and underlying cause behind property tax increases: government spending. 

As legislators look to bring more permanent tax relief to Hoosiers, we must also realize that reigning in tax increases means reigning in government spending.  Unless something further is done the end result will be higher taxes for all of us.  The only difference is in whether we pay them via a property tax or some other tax.

A long-term solution to the problem of government spending increases is state and local government budget caps.  This plan is simple in its concept, but powerful in its application.  As a legislator, I know the pressures that come with being part of the budget process.  There are always more ideas to be funded, and if you lack a store of ideas you can find plenty from the lobbyists that roam outside House and Senate chambers.  But more ideas for spending greater amounts of taxpayer money is not what citizens want.

Capping the growth of government does not mean that we limit the ability of the state or local governments to respond to legitimate expansions in their budgets.   Some budget growth is necessary, but certainly it is not necessary, or good, if our state budget keeps growing year after year regardless of how well our state’s economy is doing or by how much our state’s population is increasing.  Requiring policymakers to live on a strict budget would be a positive change for Indiana.

Because of the ongoing decline in state revenues, Governor Daniels has imposed budget cuts on state agencies under his control.  If these cuts are used as the baseline from which we index future state growth, we will be shrinking the already large size of state government to a more reasonable level before indexing and controlling its future expansion.  

I propose that the rate of government spending not increase more than the rate of income growth for Hoosier families.  This means that state government could not grow faster than the ability of Hoosier families to move up the economic ladder.  If our state’s citizens did not prosper, then legislators would not be allowed to spend more than they did in the past.  If the average individual income around the state rises, then that is an indication that state government can grow on a limited basis to meet the greater demands placed on it.

Until we place a ceiling on how much government can spend, and by how much legislators can increase spending, attempts to reform government by shifting tax burdens around is like getting a glass of water in the desert: it’s only temporary relief for a hopeless situation.

State Representative Wes Culver represents Indiana House District 49.  Do you believe state spending should be capped?  E-mail your response to wes@electwesculver.com.

Well Done, Mr. Mourdock

June 29, 2009 in Economy, Indiana by Wes Culver | No comments

By: Wes Culver

On Tuesday, June 2nd, the US Court of Appeals for the 2nd Circuit agreed to hear Indiana State Treasurer Richard Mourdock’s claims against the government’s managed restructuring of Chrysler Corporation.   The centerpiece of the plan is to sell the bankrupt automaker to Italian automobile manufacturer Fiat.  Unlike bankruptcies of the past though, this bankruptcy is like none ever before.   The federal government managers of this situation have used the power of the federal government to step in and dissolve the rights of Chrysler bond-holders. 

Chrysler bonds are owned by many, many people in our country.   Many people may have them as part of their 401K or their retirement investment fund and not even know it.  The elimination of the rights of these bondholders substantially decreases the value of any fund or portfolio that owns Chrysler debt.

In Indiana three public funds, the State Police Pension fund, the Teachers Retirement Fund and the Major Moves Highway Construction Fund own large amounts of Chrysler bonds.  These funds have collectively lost roughly $5 million as a result of the federal government’s unwise rewriting of bankruptcy law and the rules that govern bankruptcy court proceedings.

The question about Chrysler is not whether or not they should go bankrupt, but who they should belong to coming out of that bankruptcy.  Law and history both say that those who invested in the company and owned the company should the ones that own it upon its emergence from court.   Perhaps because of political expediency, or perhaps because of well-intentioned but misguided thinking, the government has changed long-standing law with the result being a terrible shift away from previous bankruptcy precedents.
 
The transfer of wealth that is taking place here is not the transfer of wealth from the “rich” to the “poor”.  The transfer of wealth is going from those who invested in an American company to an Italian automaker that is getting 20% ownership for free!  Indiana State Treasurer Richard Mourdock’s principled opposition to this action should earn him the respect of all who believe that obligations are to be honored and responsibilities are to be fulfilled irrespective of how convenient such action is.

Pro-Life Advances in Indiana

June 3, 2009 in Uncategorized by Wes Culver | No comments

By: Wes Culver

As a legislator this past session I considered it an honor to be able to advocate for legislation designed to protect unborn children.  We must do what we can to protect those who have no audible voice in our society and yet possess the exact same right to life, liberty, and happiness that you and I do.

When President Obama visited Notre Dame and gave this year’s commencement address, I couldn’t help but note the sad irony of his visit.  On the one hand he was present to commend graduates on their entry into the world beyond school, a world where they will find more opportunities to live up to their calling and to fulfill their dreams.  On the other hand he did all of this while holding to the belief that unborn human life is worth less than life outside of the womb. 

To the President, an unborn child is something to be discounted, regarded as less than equal to other humans, and not entitled to the legal protections that that rest of us enjoy.  He often speaks of equality and the need to insure that all Americans have a fair chance at moving ahead in life and living out their dreams.  But one cannot speak credibly of equality if they believe one person’s equality comes at the expense of another’s.

Prior to this past session of the General Assembly, Indiana law regarded some unborn children as less equal to children outside of the womb in cases of murder or attempted murder.  If an unborn child under the age of 7 months in the womb died because of a murder, attempted murder, or violent assault on the mother, that child was not counted as a second victim of the crime.  This meant that criminals could assault pregnant women without fear of being held accountable for two victims if the unborn child was under a certain age. 

By closing this loophole in the law, legislators not only strengthened our state’s criminal law statutes, but they also said that an unborn child does have some rights regardless of its age or development.  This is a tremendous step forward and I am proud to have been part of this effort.  On July 1st of this year, less than a month from now, this law SEA 236, goes into effect.

It is time for our state, our country, and our society to stop trying to explain away the rights of unborn children.  As I serve in Indianapolis I will continue to work towards the day when each and every human being in our state is recognized in the eyes of the law as being entitled to the same rights and freedoms that so many of us enjoy.  Our progress may not always be fast, but it will be the steady onward advancement of a movement that seeks to expand freedom and promote liberty.

Passing a Pro-Growth State Budget

May 25, 2009 in 116th General Assembly, Indiana, State Budget by Wes Culver | No comments

May 25th, 2009

By: Wes Culver

In the next few weeks Indiana legislators will be reconvening for a special legislative session in Indianapolis to finish the work of passing a state budget.  The only piece of legislation that the Indiana General Assembly was required to pass this year was the state budget.  Unfortunately,  it failed to do so because some chose to promote spending policies that our state simply cannot afford.

During the final hours of the regular session I voted against the version of the state budget that was brought to the House floor.  In my opinion, it adhered to flawed budget principles and was fiscally irresponsible when considered against the backdrop of our state’s economy.  I also believed that if we passed that version of the budget we would be doing the state more harm than good because of the tax increases that would have been needed to support the same level of funding in future budgets.

As we go back into session it is my hope that the special committee tasked with negotiating the outline of the revised budget will present us with a pro-growth budget, a budget that I and other legislators can vote for in good conscience.  Our state must not have a budget that places us squarely on the path to deficits and higher taxes.  Fortunately, we as a state are not contending with the billion dollar budget shortfalls that plague most states today.  Passing a pro-growth budget, however, will mean more than just hitting auto-pilot and allowing politics to proceed as usual. 

The right budget for our state will be one that encourages economic growth and positions our state to thrive whenever the national economic climate changes for the better.  Such a budget will be defined by several notable characteristics.  First, it will not assume that past revenue levels indicate future revenue levels.  The steady decline in revenues below the rate forecasted by experts should give pause to those who believe we do not need to adjust our state’s fiscal belt.  State government must learn a lesson from individual Hoosiers and businesses that are cutting back and looking for ways to save money.

Second, an acceptable budget will realistically acknowledge that we cannot increase state spending this year.  We know that revenues are below the level we expected them to be at so we must practically apply that knowledge to the budget by holding the line on spending.  Contrary to what some may say, this does not mean the state budget is cutting spending for vital programs, it only means that the spending levels for key programs will be held constant to the funding levels found in the last budget  A majority of other states are facing large budget cuts, including cuts in education and highway funding.  Our past fiscal conservatism has helped us avoid such cuts and we should consider ourselves fortunate to be able to keeping spending on an even level.

Third, we cannot use federal stimulus money to increase spending on annual budget items.  After two years this money will not be coming into Indiana and prudence calls for us to refrain from spending the money when it comes to us with too many strings attached.  Rather, we should spend it on one-time initiatives whenever we find it to be less regulated.  Relying on the hand of the federal government to relieve us of our responsibility as state legislators is the wrong thing to do.  This is Indiana, we solve our own problems and we do not look to an ever growing national government for help in state matters.

Whether or not the final budget plan measures up to these three criteria remains to be seen.  But I will do my part to advocate for a pro-growth budget and my final vote will depend on how close the budget comes to meet these criteria.  A state budget cannot directly generate economic growth and recovery, but a carefully crafted budget that spends no more than necessary and avoids future tax increases can encourage new investment and job creation here in Indiana.

Focusing Help on Those Who Need It

April 5, 2009 in Economy, Indiana, Jobs, Unemployment Insurance by Wes Culver | No comments

By: Wes Culver 

Recently, the Indiana Senate passed a measure aimed at reforming Indiana’s unemployment insurance program. While our state’s unemployment fund has been experiencing problems for several years, the problems of the past were compounded by the economic downturn that has swept across our nation in recent months. Reform is certainly necessary to maintain the viability and sustainability of the fund, but that reform must not come at the expense of those who need the program most.

 The national and state unemployment numbers tell the story of an economy hit hard by a crisis that picked up speed as energy prices rose and banks failed. But even the nationwide unemployment rate of 8.9% and the Indiana unemployment rate of 10.1% do not begin to measure up to Elkhart County’s unemployment rate of 18.0%.

 I believe that any reform plan should insure that a worker who has not drawn more than 26 weeks of unemployment benefits in the past 3 years from the same employer will receive full benefits until they reach the current 26 week benchmark.  I will fight to make sure that individuals like our county’s RV workers, who have not abused the system, get the full benefits they need.  Between this reform, and federally provided extended unemployment benefits, unemployed workers in Elkhart County would potentially be able to receive up to 72 weeks of benefits.

I am also in favor of Indiana creating an unemployment plan with some of the characteristics of the Wisconsin unemployment insurance plan. The Wisconsin plan allows a person receiving unemployment benefits to get a combination of unemployment money and money from a new job, with the unemployment benefits tapering off as the individual earns more money. In fact, it allows the combination of the two to be greater than the amount the recipient was receiving on unemployment, thus creating a win/win scenario. The State’s expenses go down (saving taxpayers money) and the unemployed worker does not have to turn away jobs that pay less than unemployment benefits.

While we work to return Indiana’s unemployment fund to a surplus, my fellow legislators must keep in mind that we will not be able to fix this problem immediately.  Our first order of business is to make sure that workers who genuinely need the system get the benefits they need.  In the future we can look for ways to build the fund’s reserve, but raising taxes in a recession is not the way to accomplish this goal.

The men and women of Elkhart County rank as one of the best workforces in the world. Possessed of a hard work ethic and a can-do attitude, they can outwork and out-produce other workers in this country and around the globe. They have weathered the downturns of the past and with the proper help they will weather the downturn of the present.

I am honored to represent Elkhart County in Indianapolis, and I will work hard to insure that the final version of unemployment insurance reform reflects the needs and concerns of the workers and employers of Elkhart County. It is my goal to serve you in keeping with my campaign promises and I know that together we can overcome this storm.