Baucus praises student deficit cut proposals

Montana’s Democratic Sen. Max Baucus has praised recommendations for deficit reductions submitted to him by a group of Flathead Valley Community College students in the elite Scholars program.

In a press release Thursday, Baucus said the students reviewed Congressional Budget Office reports and read reduction proposals, then responded to his call for deficit cut suggestions with a six-page report.

Baucus was impressed that the students got involved and came up with creative ideas.

“The combination of ideas they came up with is  really super,” he said in an audio release. “It forces us to think in a new way — kind of outside the box instead of the old ways you hear about and read about in Washington, D.C. — so I’m very, very pleased.”

Baucus serves on the bipartisan six-member super committee charged with reaching a deal on deficit reduction.

A summary of some of the ideas submitted by the Flathead Valley Community College Scholars students includes:

 Limit unnecessary medical procedures by paying physicians for health outcomes rather than by procedures. 

Provide incentives by having those who follow a healthy lifestyle pay a lower Medicare payroll tax. 

Combine Medicare and Medicaid into a universal public option health insurance program administered by the states.

Raise Social Security retirement age to 69.

Limit Social Security benefits received by high net worth households to the amount they paid into the system.

High net worth is defined as those who can live comfortably in retirement without the benefit check.

Increase investment in fraud and abuse enforcement positions and technology.

Increase transparency and accountability for military spending.

Don’t develop weapon systems not requested by the Pentagon.

Several students had received food stamp (now called SNAP) benefits and said the amount of aid exceeded basic food needs. They said that a set of eligible foods should be restricted to healthier choices, like the WIC program for women with infants.

Limit agricultural subsidies to owner-occupied and managed farms or cap eligibility based on farm revenue.

Make across the board cuts of federal agency budgets of from 2 to 5 percent of the total budget to force efficiency and for shared sacrifice.

The reports suggested increasing spending for education, since educated citizens have better health, higher wages, pay more taxes and have lower unemployment rates. The students also recommended increasing spending for scientific research with a focus on alternative energy and health.

In discussing the tax code and raising revenue, the students reached agreement on:

Eliminating corporate loopholes.

Adopting a flat tax with a floor to protect the poorest households who now pay no taxes. No agreement was reached on the level of income at which the flat tax would start.

Not changing capital gains, estate and consumption taxes as now configured. Students opposed a national sales tax.

Instituting a carbon tax to benefit the environment and raise revenue.

Brad Eldredge, the college’s executive director of Institutional Research, Assessment and Planning, wrote the report based on the discussions of two small groups of Scholars students who volunteered for the special project. He moderated the discussions along with Jeremy Fritz, adjunct professor of political science.

Eldredge said the effort started after the college was approached by some Baucus staff members who said they wanted input on deficit reduction from students. Eldredge described the students as “basically our honors students.”

“I think the students were a microcosm of the political spectrum of the country,” he said. “They had to compromise. I think they learned from each other.”

Students volunteered to put in extra time on this project without receiving any extra credit. They met in two groups in three two-and-a-half hour sessions two weeks apart.

According to Eldredge, they went over reports on the deficit as well as reduction proposals provided by Baucus’ office.  He said they discussed many different ideas about deficit reduction, and then attempted to reach consensus on items on the table during the last session.

“I wrote up the report on the ideas where they could find consensus,” Eldredge said. “I thought there were some pretty creative suggestions.”

His report was reviewed by others who attended the sessions. Eldredge said he appreciated the senator’s praise of the students’ efforts.

According to Eldredge, the students didn’t limit themselves to recommendations that were politically acceptable. He said they realized that some of their ideas wouldn’t pass with the current congressional configuration.

“They were excited to have a chance to provide input on something that is really a pertinent issue for the country,” he said.

Reporter Candace Chase may be reached at 758-4436 or by email at cchase@dailyinterlake.com.