Corporations

Big Money Behind Push for "School Choice" in Pennsylvania

School vouchers

FreedomWorks, the Washington, D.C.-based group chaired by Dick Armey that does not disclose its corporate funders, has been aggressively promoting a measure in Pennsylvania that would divert taxpayer funds to support religious and private schools. FreedomWorks has hosted town hall meetings, run a state-wide radio ad campaign and organized phone call and letter writing campaigns to support SB1, a measure to phase in a new educational system that would give parents taxpayer-funded vouchers to pay for their children to attend private and religious schools. The bill would also increase funding for an existing state program that gives businesses tax credits if they donate to private and religious schools. In addition to FreedomWorks, industry lobbying groups like the Pennsylvania Manufacturers Association support the "school choice" measures. A group called Students First, which draws membership from FreedomWorks, recently conducted a "school choice" rally at the state capitol that revealed the group has access to cash and professional organizers. The rally included T-shirts, lunches and posters for hundreds of attendees, and the group uses a professional media adviser and veteran political ad man from Pittsburgh to help organize its events. The Students First PAC, funded by wealthy Philadelphia-area businessmen, first drew media attention after it poured millions of dollars into the campaign of Pennsylvania state senator Anthony Williams, who was running for governor. Williams made school vouchers a cornerstone of his campaign. Williams also co-authored the school voucher bill now before the state Senate.

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Protests in Benton Harbor follow Martial Law Enforcement

Benton Harbor protest - San Francisco Bay ViewThe stripping of all power of the local government in Benton Harbor, Michigan has brought the national spotlight to the tiny town on the shores of Lake Michigan. The first city to be declared in a "financial emergency" by Michigan Governor Rick Snyder, CMD reported that Emergency Financial Manager (EFM) Joseph Harris was assigned to the city back in 2010 by then-Governor Jennifer Granholm. But it wasn't until March of this year that Harris essentially disbanded the local government and boards.

The Rev. Jesse Jackson, Sr. responded to this takeover while on a tour of the state, calling for a rainbow coalition to organize against the EFM bill and others that Snyder and the Republican-led Senate has passed. At a protest in Benton Harbor, Jackson said that he, along with Michigan Congressman John Conyers, Lansing Mayor Virg Bernero and Benton Harbor Mayor Wilce Cook will file a lawsuit to challenge the law's constitutionality.

Blue Cross, Blue Shield Getting Richer, Like Corporate Insurers

I've written frequently in recent weeks about the eye-popping profits the big, publicly-traded health companies have been reporting. Last year -- as the number of Americans without health insurance grew to nearly 51 million -- the five largest for-profit insurers (Aetna, CIGNA, Humana, UnitedHealth and WellPoint) had combined profits of $11.7 billion.

Health insurance dollarsBut that was so 2010.

If the profits those companies made during the first three months of this year are an indication of things to come, 2011 will more than likely be the most profitable year ever for these new darlings of Wall Street.

But lest you think only those big New York Stock Exchange-listed corporations have figured out how to make money hand over fist while their base of policyholders is shrinking, take a look at the so-called nonprofit Blue Cross and Blue Shield plans.

Colvin on Comparing the Constitutional Amendments Proposed after Citizens United

Greg Colvin, author of a new constitutional amendment

By Greg Colvin

Among those who feel the only way to overcome the Citizens United decision, which opened the door to unlimited corporate spending on elections, is to amend the U.S. Constitution, the question on everyone's mind is: "So what's the language?"

I offered a version of my own, the Citizens Election Amendment, posted three months ago at this site. It got a pretty good response (over 400 people "liked" it on Facebook) and last week I was in Washington, DC, talking to several members of Congress about it.

The main approach I take is to build upon the individual citizen's constitutional RIGHT TO VOTE (a right that Americans have shed blood and died for), protecting and expanding it to give citizen human beings the right to be the sole source of funding for election campaigns.

Could Michigan-style "Martial Law" Be On Its Way to Wisconsin?

Rumors have been circulating about a little-known initiative to subject Wisconsin local governments to "stress tests" and other new constraints. Many believe the proposal resembles the "martial law" bill that was recently passed in Michigan, which allows the state government to dissolve local governments in a "fiscal emergency," and worry that Wisconsin Governor Scott Walker or his friends in the legislature could be cooking up a similar plan.

Madison's Battle of the Brats

Brats on the grillThe "World's Largest Brat Fest," which will take place over Memorial Day weekend at Willow Island at the Alliant Energy Center, will serve brats donated by Johnsonville Sausage of Sheboygan Falls, WI. Johnsonville owners (the Stayer and Stayer-Maloney families) and other principals of Johnsonville Sausage contributed a total of $48,450 to Scott Walker's gubernatorial and other 2010 Republican state campaigns, according to the Wisconsin Democracy Campaign's Campaign Finance Database.

Governor Walker Spins New Jobs Out of Whole Cloth

Wisconsin Governor Scott Walker (AP photo by Morry Gash)Wisconsin Governor Scott Walker has pledged to create 250,000 new jobs in Wisconsin. He has an interesting way of going about it. Dan Bice of the Milwaukee Journal Sentinel reported that Walker visited Curt Manufacturing near Eau Claire, Wisconsin last week to award the state manufacturing plant a $625,000 transportation grant and congratulate himself for creating 125 extra jobs as a result. "This project directly creates 125 new jobs and indirectly creates 129 jobs, resulting in $12.6 million in annual wages right here in Wisconsin," Walker said in a news release. "By providing these funds, we are bringing quality jobs to Wisconsin while improving road access to Curt Manufacturing's expanded facility." But credit for the same 125 jobs was already claimed back in December by then-Governor Jim Doyle when the Department of Commerce announced the administration was giving the same company $400,000 in tax credits and $11 million in tax-free bonds under a 2009 stimulus program. Doyle said the extra money would "create 125 extra jobs and result in $12.8 million investment to the community." Could the firm be creating 250 new jobs? Er, no says a company spokesman. Curt has committed to adding 125 positions by 2014. So Walker simply ladled out an extra $625,000 for the same 125 jobs. That amounts to a whopping $96,000 in taxpayer support per job. Let's hope they pay more than minimum wage.

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Insurers Getting Rich By Not Paying for Care

If I had stayed in the insurance industry, my net worth would have spiked between 4 p.m. Wednesday and 4 p.m. Thursday last week -- and I wouldn't even have had to show up for work.

Mr. MonopolyI'm betting that just about every executive of a for-profit health insurance company, whose total compensation ultimately depends on the value of their stock options, woke up on Good Friday considerably wealthier than they were 24 hours earlier. Why? Because of the spectacular profits that one of those companies reported Thursday morning.

Among those suddenly wealthier executives, by the way, are the corporate medical directors who decide whether or not patients will get coverage for treatments their doctors believe might save their lives.

Action Item: Draft Executive Order Would Promote Election Disclosure, Call the President!

The White House is circulating a draft Executive Order requiring disclosure of contributions to "third party" or "independent" expenditure groups by corporations receiving government contracts. During the 2010 elections, much of the unlimited election spending made possible by the U.S. Supreme Court's Citizens United decision was kept secret by groups taking advantage of the 501(c) section of the tax code. The President's proposed order would lift the veil on secret spending in time for the 2012 elections.

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