Commentary and Background on the DACA Decision 

President Trump announced last week via U.S. Attorney General Jeff Sessions that he is ending the Deferred Action for Childhood Arrivals (DACA) program that President Obama instituted in 2012 by executive order. DACA allows for certain illegal immigrants who entered the country as minors to receive a renewable two-year period of deferred action from deportation and eligibility for a work permit.

Under this decision, the U.S. Department of Homeland Security will rescind the executive order that established DACA and not accept new program applicants. It puts 800,000 “dreamers” (including an estimated 10,000 Hoosiers) – children who arrived in the U.S. illegally with their parents at a young age – into legal limbo until it takes effect March 2018. This is an unfortunate turn of events for a demographic group where 90% are either in college or working.

As a result, 15 state attorneys general (all Democrats) filed suit this week to block the President’s plan to end DACA.

During the announcement, Sessions commented that actions under the Obama administration were unconstitutional and that the program should be enacted by Congress. Even Sen. Dianne Feinstein (D-CA) implied that President Obama’s executive order to protect young immigrants brought here as minors was on shaky legal ground and that is why Congress must act.

Over the next six months, President Trump is counting on Congress to do just that and essentially fix the DACA situation once and for all.

The Indiana Chamber believes lawmakers must address the issue as part of a larger immigration reform package, but it remains unclear whether both sides can compromise to reach a solution. Some are adamant that they will not accept any deal to fund even small amounts of a border wall or increased immigration enforcement, and cuts to legal immigration would be unacceptable. Other members of Congress are saying you need to pass this as part of border security, while a contingent believes you need to pass this on its own – which makes the possibility of its success very difficult.

On Wednesday, Sen. Tom Cotton (R-AR) said he was open to adding legal status for DACA recipients to his RAISE Act legislation – the goal of which is to build a skills-based immigration system similar to Canada or Australia while decreasing the amount of legal immigration overall.

Indiana’s senators Joe Donnelly and Todd Young reacted to the DACA news.
“Our country is still in need of reforms to fix our immigration system and strengthen border security, but in the interim we should pass bipartisan legislation to give these young people, who were brought here through no fault of their own, some stability and clarity,” Donnelly said.

“Upending existing protections for the nearly 10,000 young people in Indiana who have been here for most of their lives isn’t the path we should take.” Young stated: “I continue to believe we must secure our southern border and fix our broken immigration system. Irrespective of (the Trump) announcement, that requires a bipartisan solution in Congress that reforms our legal immigration system, prevents illegal immigration and addresses the question of what to do with undocumented men, women and children already here.”

BACKGROUND

So how did we get to this point with DACA and immigration? It’s been many years in the making. Attempts to address illegal immigrants who entered this country as minors date back to as early as 2001.

In 2007, the DREAM (Development, Relief and Education for Alien Minors) Act was introduced in the Senate. The Act allowed for a process by which qualifying alien minors would first be granted conditional residency. Eventually, by meeting further qualifications, permanent residency status could be obtained. It failed to be brought up in debate for lack of a filibuster-proof 60 votes. In 2009, it was reintroduced in both the Senate and House, and provided for qualifying immigrants who were between the ages of 12 and 35 at the time of enactment; who arrived in the U.S. before 16 years of age; resided continuously in the U.S. for five years; graduated from high school or obtained a GED; and were of good moral character. The bill continued debate into 2010 when the House passed a version, but the bill again failed to reach the 60-vote threshold in the Senate. Unsuccessful attempts were made in 2011 as well.

As a result of Congress’ inability to pass legislation, the Obama administration by executive order implemented the policy position of DACA in June 2012.
In 2013, the U.S. Senate’s “Gang of Eight” passed a comprehensive immigration reform bill in the Senate. In 2014, the House indicated it had the votes to pass the bill. However, when House Majority Leader Eric Cantor lost his primary election, House Speaker John Boehner announced that the House would not bring the bill to a vote. As a result, President Obama promised to fix the immigration system as much as possible on his own without Congress and attempted to expand DACA to include the parents (known as DAPA) of these minors. In a memorandum to ICE (U.S. Immigration and Customs Enforcement), aliens without criminal histories were to be made the lowest priority and that illegal immigrants who are the parents of U.S. citizens or lawful permanent residents were to be granted deferred action.

Subsequently, the Texas attorney general – joined by 25 other Republican-led states, including Indiana – sued in federal court in Texas to prevent implementation of the expansion. The case eventually worked its way to the U.S. Supreme Court and in June of 2016, a deadlocked 4-4 decision stated that: “The judgement is affirmed by an equally divided court.”  The ruling set no precedent and simply left in place the lower court’s preliminary injunction blocking the program.

Earlier this summer, on June 15, 2017, then Homeland Security Secretary John F. Kelly signed a memo rescinding DAPA. At that time, it was clarified that the memo did not include DACA and the Trump administration had not decided on whether it would keep that policy in place.

Which brings us to action last week on September 5. Attorney generals from nine states – led by Texas – notified the Justice Department that they would amend the current DAPA lawsuit to include DACA if executive action wasn’t taken by September 5 to phase it out, which prompted the announcement by U.S. Attorney General Jeff Session.

Bachelors (Degrees) Dominate In This State

In the Indiana Vision 2025 Report Card released earlier this summer, Massachusetts led the way in percentage of the population with at least a bachelor’s degree. That’s not too surprising considering the prevalence of higher education institutions in the Boston area and the state’s entrepreneurial, tech-based economy.

(Indiana, by the way, was 39th in the 2015 statistics with 26.7% of resident possessing at least a four-year degree).

The update, according to a report from the independent Massachusetts Budget and Policy Center:

Half of all workers in Massachusetts held a bachelor’s degree or higher in 2016, marking the first time any U.S. state has reached that educational threshold.

The same analysis points to a growing wage chasm in the state, with the college-educated earning on average 99% – or nearly double – the wages of those in the labor force with only a high school education. That difference, often referred to as the “college wage premium,” was 56.6% across the entire nation in 2016.

In Massachusetts, 50.2% of individuals participating in the state’s labor force had attained at minimum a four-year degree from a college or university in 2016. The next highest states were New Jersey (45.2%), New York (43.7%), Maryland (43%) and Connecticut (42.7%), according to the Current Population Survey data. The U.S. average was 35.5% in 2016.

The numbers point to a dramatic shift in recent decades. In 1979, only about 20% of the Massachusetts labor force had bachelor’s degrees, and the college wage premium was 50%.

VIDEO: Brinegar Explains School Corporation Size Study

Indiana Chamber President and CEO Kevin Brinegar discusses the recent study from Ball State University’s Center for Business and Economic Research: “School Corporation Size & Student Performance: Evidence from Indiana,” commissioned by the Indiana Chamber Foundation.

Judge Strikes Down Obama-Era Federal Overtime Rules

A federal judge in Texas last week struck down an Obama-era federal rule on overtime pay that would have added to the regulatory burden and increased the salary threshold for overtime-eligible workers – thus increasing employers’ labor costs.

The rule would have made about 4 million people eligible for overtime that were not previously eligible and would have impacted the “white collar exemption” of the Fair Labor Standards Act.

Mike Ripley, Indiana Chamber vice president of health care and employment law policy, pointed to the overreach of the previous administration’s Department of Labor (DOL) rule and that the judge’s decision makes way for more reasonable agreement and discussion between employers and the DOL.

U.S. Chamber of Commerce President and CEO Thomas J. Donohue released this statement about the judge’s decision:

“(The) decision is another victory for the effort to free our economy from the regulatory stranglehold of the last eight years. We have consistently said that the last administration went too far in its 2016 ­overtime rule, and we are pleased that Judge Mazzant granted a final judgment that makes permanent his previous ruling against the overtime rule.

“This means that small businesses, nonprofits, and other employers throughout the economy can be certain that the 2016 salary threshold will not result in significant new labor costs and cause many disruptions in how work gets done. The Obama administration’s rule would have resulted in salaried professional employees being converted to hourly wages, reduced workplace flexibility and remote electronic access to work, and halted opportunities for career advancement. 

“We look forward to working with the Department of Labor on a new rule to develop a more appropriate update to the salary threshold.”

A coalition of national and local business groups challenged the rule in 2016 and the Indiana Attorney General’s office filed on behalf of the state of Indiana.

The Department of Justice this week dropped an appeal to save the rule after the judge’s decision.

Chamber Offers Bountiful Training Options

Amidst the falling leaves and football games, take time to update your skills with a variety of education and training opportunities from the Indiana Chamber in October.

One of the leading events is the 2017 Indiana Environmental Conference on October 23-24 at the Hyatt Regency in downtown Indianapolis. The event takes place in partnership with the Indiana Department of Environmental Management (IDEM) and is presented by Plews Shadley Racher & Braun, LLP.

Ellen Ketterson, Ph.D., Indiana University distinguished professor of biology, will give the opening keynote presentation on the university’s Grand Challenge initiative, a $55 million investment to help Hoosiers become prepared for environmental change.

IDEM attorneys Nancy King and Beth Admire will open the second day’s program by discussing the restoration of the Grand Calumet River. Sen. Ed Charbonneau (R-Valparaiso) and Jim McGoff of the Indiana Finance Authority will deliver an update on water legislation during a closing luncheon keynote presentation.

Breakout sessions on a variety of topics will take place both days; an expo runs from 10 a.m. to 5 p.m. Oct. 23.

The Gold sponsor is Bose McKinney & Evans LLP. Silver sponsors are Air Quality Services, Ice Miller LLP, Roberts Environmental Services, Taft Law and Trinity Consultants.

Register for the conference online or call (800) 824-6885.

Three other training opportunities focus on human resources and safety:

 

New Training Grants for Employers Now Available

The Indiana Chamber has been strongly encouraging our state government leaders to take bold action to address Indiana’s current and future workforce needs – a significant concern for many of our members.

We’re pleased to see Gov. Holcomb’s recent rollout of the Next Level Jobs initiative, which will help to further ensure employees have the skills needed to compete in the 21st century workforce.

What does this mean for your business?

Employer Training Grants are available! Employers in high-demand business sectors can be reimbursed up to $2,500 for each new employee that is trained, hired and retained for six months.

• Your employees can also take advantage of Workforce Ready Grants and access free education opportunities to help sharpen their skill set for the changing workforce.

Let us know if you need assistance in navigating these opportunities.

We’ve Got New BizVoice For You!

The September/October edition of BizVoice magazine is now live!

We’ve highlighted venture capital, banking/finance/investments and Indiana innovation. Our own Tom Schuman also followed Indiana Congressman Larry Bucshon (R-8th District) for a day in Washington D.C. Read his story and the rest of the new content in the online edition.

You can also subscribe to receive a hard copy every other month.

State Wants to Hear From You on How to Streamline Small Businesses Reporting

Cutting red tape for Indiana’s job creators is key to making our state a better place for small businesses to expand and hire more Hoosier workers. To that end, during the 2017 legislative session, the Indiana Chamber supported House Bill 1157, Small Business Duplicative Reporting, which was authored by Rep. Doug Miller (R-Elkhart). The law is simple, but hopefully effective in generating ideas to make early-stage and small business interactions with state government in Indiana even more business-friendly.

As a result of the successful legislation, the Indiana Economic Development Corporation has set up an online survey to gather feedback from employers and government officials on instances of duplicative reporting.

The Indiana Chamber is encouraging small business owners and local governments to take part in the survey. It only takes about five minutes to complete and asks participants to identify situations where they are required by state law, rule or guideline to submit similar information to at least two state agencies. Duplicative information can include notifications, tax reports, employment information and other statistical data.

By helping to identify these issues, the state can work to streamline reporting processes or even eliminate some – which should save business owners time and money.

Brew Up a Formula for Wellness at Annual Summit (Oct. 3-4)

Learn how to combine five key factors to create the perfect Formula for Wellness at your organization by attending the Indiana Health and Wellness Summit on October 3-4, presented in partnership by the Indiana Chamber of Commerce and the Wellness Council of Indiana (WCI).

“It will hit on all elements of wellness: mental, physical, purpose, community and financial,” remarks WCI executive director Jennifer Pferrer. “It’s important that purpose is a focus of the conversation. Connecting employees to purpose allows them to be more balanced in their well-being and more engaged in the workplace.”

The event, which is Indiana’s largest gathering of workplace wellness professionals, will take place at the Hyatt Regency in downtown Indianapolis. Topics include legal updates, engaging the community, using data technology, exploring food deserts and more.

Additional highlights:

Keynote presentation: Changing the World Through Food by chef, author and food equity advocate Michel Nischan (opening general session)

Keynote presentation: Adding More Meaningful Purpose to our Communities Through Sharing Acts of Kindness by former media executive and best-selling author Laura Schroff (morning general session: October 4)

Keynote speaker: Bryan Mills, Alliance for a Healthier Indiana and president and CEO of Community Health Network

Choose Your Own (Wellness) Adventure! A fast-paced session in which attendees can hear four different presenters speak on four topics of their choice.

AchieveWELL Awards Luncheon honoring Three-, Four- and Five-star organizations that have participated in the WCI’s comprehensive assessment and evaluation.

“The mission of the Wellness Council is really built around the wellness conversation around the state and bringing resources together to help organizations learn from each other. The Wellness Summit is a great example of that,” Pferrer adds. “Wellness isn’t a one-time event; it’s a year-round engagement. We’ll be taking what we hear at the Wellness Summit and facilitating discussions through 2018 until next year’s program.”

Register online at www.IndianaWellnessSummit.com or contact Nick at (800) 824-6885.

Delta Dental of Indiana is the presenting sponsor. Platinum sponsors are Gibson, OurHealth and Washington National. Gold sponsors: Apex Benefits and Dental Health Options by Health Resources, Inc. Silver sponsors: Complete Wellness Solutions, Hancock Health, Indiana Vein Specialists, IU School of Public Health – Bloomington, NovoNordisk, PHP and R2 FIT.

What’s Up With Federal Tax Reform

Is anything really happening? Yes.
Will something eventually get passed? Probably.

A group of key individuals who dubbed themselves the “Big 6” has been meeting for a few months and more intently in recent weeks. They include two members each from the administration (Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn), Senate (Majority Leader Mitch McConnell and Finance Committee Chair Orrin Hatch) and House (Speaker Paul Ryan and Ways and Means Chair Kevin Brady.)

Are they motivated to find common ground? Certainly. Is there a consensus? Not yet. Right now, they don’t even agree on whether, or to what extent, the legislation must be revenue neutral.

But they all seem to recognize that they need to do something – failure to coalesce is not in anyone’s interest. So what have they agreed on so far? The border-adjustment tax is out. Some method for allowing the repatriation of overseas earnings (at a one-time low-rate tax) is in. The corporate rate must drop to 25% or less (depending on how many deductions and breaks they can eliminate.) They appear to be embracing a way to allow small businesses to immediately deduct investments in new equipment and facilities, i.e. “full expensing.” On the individual income side, a collapsing of the brackets and lowering of rates (no details.)

Possible tradeoffs or “pay-fors” in tax circles: eliminating some business interest deductions, eliminating the state and local tax (SALT) deductions and capping the mortgage interest deduction. These are yet unsettled issues. But listen and watch closely to the SALT discussions going forward; there is a lot of money and a lot of political (with a small p) interest in this item. It is more a geographic than partisan issue because taking the SALT deduction away will have a significant negative impact on people (constituents of Republicans and Democrats) in states that have high state and local taxes. This item could have a big bearing on the entire effort and whether we get true reform or temporary tax cuts.

Tax cuts are the easy part for these folks. The hard part is finding ways to pay for reductions. The last true tax reform was in 1986, 31 years ago, and it required a lot of time and bipartisan buy-in. The Big 6 are all Republicans and they are anxious to get something done. They could mimic the Bush tax cuts of 2002 and 2003, passed through the reconciliation process, which means whatever they do expires after 10 years. Somewhat ironically, most of those Bush cuts were only made permanent as part of the Obama budget deal of 2012.

To recap the status of tax reform: Much remains up in the air.