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The Abstract
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> By Torie Ludwin, Arnold Ventures
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Now topping $33 trillion, the highest peak in its history, the United States federal debt is beginning to cause palpitations for Americans of all political stripes. Both parties added to the total when interest rates were low and economic stimulus was on the agenda, but times have changed. An outsized federal debt can lead to economic and financial instability both domestically and abroad. To amend the consequences of Congress’ proclivity toward debt, both tax increases and spending cuts will need to be introduced.
Reducing the deficit, especially in a gridlocked Congress, is no easy task. As we have seen throughout the year, passing a budget to keep the country afloat was so controversial to a few members of Congress that the House lost its Speaker because of it. No matter where you sit politically, reducing the growth in the national debt will require across-the-aisle collaboration. Executive Vice President of Public Finance George Callas recently published an op-ed in The Wall Street Journal outlining five fiscal fixes both parties could get behind. Yes, both parties.
We won’t spoil it for you (you can read his piece here), but what we will say is that bipartisan solutions are often the only solutions worth bringing to the table. A reduced national debt gives the country a greater capacity to respond to crisis, protects the solvency of the safety net, fuels economic growth, and pushes interest rates (and inflation) down.
Public finance isn’t the only field that is looking at bipartisan solutions. We’re looking at evidence that supports a bipartisan way forward in higher education, criminal justice, health care, and other areas. As the country goes into budget negotiations for 2024, we’re hoping to see more sound bipartisan solutions grounded in evidence to maximize opportunity and minimize injustice. In our sugarplum dreams, this wouldn’t be a holiday miracle, it would be everyday governance.
Read George Callas' op-ed>
Related: Hear AV grantee and President of the Committee for a Responsible Federal Budget (CRFB) Maya MacGuineas speak on the debt situation, the CRFB debt thermometer, and how things might change for the better.
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A News Roundup On Tuesday's SCOTUS Tax Code Case
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By Torie Ludwin, communications manager
This case has been brewing in the news since the summer. Moore v. United States, purportedly over a $15,000 tax bill from an overseas investment, has implications to upend a third of the federal tax code. The Moores claim they are being unfairly taxed.
What's Happening: Arnold Ventures' Executive Vice President for Public Finance George Callas, who worked on the 2017 tax code pivotal to the case, has been sounding the alarm about the ramifications should the court rule in favor of the Moores. New details on the Moores' involvement with the company in which they invested were published this week in The Washington Post. (free link)
Why It Matters: Some see the case as a vehicle to stave off a wealth tax. However, as Callas has pointed out, this would be an incorrect understanding of income and wealth. “The Moores aren’t being taxed on the change in the value of their shares,” said Callas in The Washington Post. “They’re not being taxed on the price of their shares, which would be like a wealth tax. … What’s being taxed is actual earnings and profit.”
What’s Next: The Supreme Court will hear the case on Tuesday.
Read our news round-up>
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What's Next for
Gainful Employment
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By Evan Mintz, communications director
The new Gainful Employment rule, which is designed to hold career education programs accountable for student outcomes, is set to take effect on July 1, 2024. But more work remains to ensure that postsecondary education truly pays off for all students in all programs.
What’s Happening: The Department of Education recently reinstated and strengthened federal regulations that will require career education programs to meet basic labor market outcomes standards for their graduates or risk losing access to federal financial aid. However, the Higher Education Act (HEA) limits the rules to the for-profit and certificate sectors.
Why It Matters: Public or nonprofit degree programs are not required by the HEA to demonstrate they prepare students for “gainful employment in a recognized occupation” in order to qualify for federal financial aid dollars. The protection extended to students in for-profit and certificate programs because of the Gainful Employment rule should be extended to all students, regardless of their program.
What’s Next: As lawmakers consider updates to the HEA, further reforms will be necessary to ensure that programs deliver value for students and taxpayers.
Read our policy focus>
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$20,928,991
The amount of money the American Hospital Association (AHA) spent on lobbying in 2023, more than Facebook parent company Meta.
Earlier this month, STAT News reporter Rachel Cohrs pointed out this breathtaking sum in the context of the AHA formally asking congressional leaders to “oppose bipartisan, incremental site-neutral payment proposals.”
At a time when 89 percent of the public is on board with proposals to lower hospital prices, site-neutral policies currently being considered by a bipartisan coalition in Congress should be an obvious first step.
Learn more about site-neutral billing, and why the same service should mean the same price.
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Criminal Justice
- In an op-ed for Law360, Matt Alsdorf, associate director and co-director of advancing pretrial policy and research at the Center for Effective Public Policy, discusses how the concept of bail has changed over time and originally did not usually include monetary conditions.
- Based on a roundtable supported by AV, a new policy brief from the Center for Justice Innovation identifies areas where public defenders and jurisdictions are testing out new initiatives to improve public defense and fulfil the promise of the Supreme Court’s Gideon decision.
- AP reports on how Missouri’s Republican Governor Mike Parson, a former sheriff, has pardoned more people than any other Missouri governor has in the past 80 years. In an interview, the Governor expressed his belief that law and order and second chances go hand in hand.
Health Care
- When it comes to the challenge of complex care, the headline for this op-ed in STAT News says it all: “I worked for CMS. Even I struggle to help family navigate dual eligibility.”
- A new op-ed in RealClearHealth lays out the case for site-neural billing as a way to prevent consolidation in the health care industry and help lower prices.
- AV grantee the Washington Center for Equitable Growth released a new report that found hospital consolidation reduces competition, often leading to lower wages for nurses and pharmacy workers, economic harm for local communities, and higher prices for patients.
Public Finance
- AV grantee the Committee for a Responsible Federal Budget released a report comparing the 2024 appropriations levels in the recently passed continuing resolution with the deficit-reduction deal struck earlier this year.
- Elaine Maag of AV grantee the Tax Policy Center provided updated options for improving the Child Tax Credit for low-income families.
- Naomi Feldman and Kevin Corinth released a report for the American Enterprise Institute concluding there is no evidence of a private investment response to Opportunity Zones beyond modest impacts on investments in multi-family housing.
Higher Education
- The Department of Education has fined Union Institute and University, a private Ohio college, and cut off Title IV aid for illegally taking more financial aid than it was owed, Higher Ed Dive reports.
Infrastructure
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In her TED Talk “ A crash course in making political change,” Michigander Katie Fahey tells the story of how she led a movement to end gerrymandering in her home state. She went on to found Voters Not Politicians and fought through the courts to help create an independent redistricting commission. TED Talks has a whole suite of videos devoted to democracy that might pique your interest.
NewsNation took a look at how ranked choice voting worked in Alaska to help create a political system where politicians can be more honest with voters and bipartisan cooperation is easier to make happen. Commentator Dan Kanninen posits that Lisa Murkowski might become the most powerful Senator in Congress in 2024.
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- Sandra Day O'Connor, a trailblazer as the first woman to serve as a Supreme Court justice, passed away this morning. From 1981 to her retirement in 2006, she was known for her independence, her well-written opinions (read several excerpts here), and her often-pivotal votes. Less known is her commitment to civic education; in 2009, she founded iCivics, a set of free, nonpartisan online games and resources to teach students about social studies.
“If we want our democracy to thrive, we must commit to educating our youth about civics, and to helping young people understand their crucial role as informed, active citizens in their communities and in our nation,” Justice O’Connor said in her final remarks to the public in 2018.
- A crane operator in the U.K. rescued a worker from a burning high-rise.
- Nova, a dog lost in the Colorado mountains for two months, was found and brought home.
- Iowa high schooler Lauren Schroeder is a food philanthropist: she has grown and given away over 7,000 pounds of produce.
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We're Seeking Proposals
and Fellows
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The Criminal Justice team at Arnold Ventures is supporting a new Social Science Research Council fellowship program. This program will provide generous and unrestricted support to postdoctoral fellows working to innovate and evaluate more effective and equitable criminal justice policy solutions. The application deadline is January 15, 2024.
The Higher Education and Evidence-Based Policy teams have created a request for proposals for rigorous impact evaluations of programs and practices (“interventions”) to promote college success in the United States.
The Criminal Justice and Evidence-Based Policy teams at Arnold Ventures are teaming up to learn more about what works in criminal justice reform in an ongoing request for proposals for randomized controlled trials (RCTs) that will test programs and practices. There is no deadline for submissions.
The Evidence-Based Policy team invites grant applications to conduct randomized controlled trials (RCTs) of social programs in any area of U.S. policy. Details are here.
View our RFPs here>
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Have an evidence-based week,
– Torie
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Torie Ludwin leads strategic branding efforts across digital, print, and multimedia, including this delightful newsletter. |
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