Staff report
TheStatehouseFile.com

INDIANAPOLIS – State employees won’t get raises next year but could instead receive one-time bonuses of $500 to $1,000 if they do well enough on performance evaluations to be completed next month.

In an email, Gov. Mike Pence told employees Friday that the state’s “present circumstances do not permit us to increase base pay.”

Through the first five months of the current fiscal year, tax receipts missed the previous forecast by $114 million. That’s led Pence to order cuts for universities and state agencies and put a state plan up for sale.

Also on Friday, a forecast team predicted that state revenues through Fiscal Year 2015 will be less than lawmakers anticipated when they wrote the current, two-year budget. However, the state is still projected to end the current budget cycle with nearly $1.9 billion in the bank.

Lawmakers had included money in the current state budget for Pence to give raises but he opted instead for the one-time payments, which won’t tie the state to higher personnel costs in the future.

Employees whose evaluations find they meet expectations will receive a $500 bonus. Those who exceed expectations will receive $750 and those rated outstanding will receive $1,000.

“I hope this news will be an encouragement to you for a job well done in 2013,” Pence said in his email.

By Lesley Weidenbener
TheStatehouseFile.com

INDIANAPOLIS – When the State Board of Education meeting went off Friday without a hitch, it was hard to tell who was more relieved – the participants or the observers.

Certainly, there was a collective sigh of relief.

For months now, the board has been bickering. Or more accurately, the 10 members appointed by current and former Republican governors have been wrangling with state Superintendent of Public Instruction Glenda Ritz, a Democrat who won the office in 2012.

Last summer, Gov. Mike Pence even created a new state agency – the Center for Education and Career Innovation – to essentially represent the board in the disputes.

Things got so bad that the 10 board members went behind Ritz’s back to ask for help from legislative leaders and then Ritz actually sued her fellow board members. Later, she walked out of a meeting.

Along the way, the group was barely functioning, despite some incredibly important work on its agenda, including the crafting of new curriculum standards and new school accountability polices – as well as the assignment of grades to schools.

State Board of Education members B.J. Watts, Sarah O’Brien and Tony Walker shared a light moment at a meeting Friday after Superintendent Glenda Ritz announced she has a new grandchild. Photo by Lesley Weidenbener, TheStatehouseFile.com

In a sort of deal brokered by Ritz and Pence, the board brought in the National Association of School Boards of Education to try to mediate the dispute. Still, the first meeting where NASBE’s Kristen Amundson tried to work with the board was all but a disaster.

Because of the way the superintendent had notified the public about the meeting, no official action could be taken. The members couldn’t really debate some of the problems that had plagued it, including the way it operated, and couldn’t vote on any new procedures. Members left ticked.

But sometime between that messy meeting and the one the board had last week, something happened. Amundson solicited information from all the members – asking what was working, what wasn’t, about relations among members, about frustrations and problems.

She took those results and worked with a smaller team to try to hammer out a new board procedures agreement, one that would govern how the group operates inside and outside its meetings and include details about how items get on the agenda, the rules for the way votes are handled and who can speak at meetings.

The board didn’t work out everything. But members got far enough that on Friday, the board approved a new set of operating procedures. Among the changes is a reduction in the amount of notice a member must give to put an item on the agenda for consideration, a new rule that requires the public only to speak to items on the agenda, and a line that says no board member can be deprived of the basic rights of board membership, including the ability to put items on the agenda.

That’s been a big issue for the board. Members say they’ve spent months trying to get Ritz to put an item on the agenda – in a way that it can be discussed and voted on – to no avail. The new rules appear to solve the problem.

The board approved the new procedures with barely a discussion and then agreed to keep working on a few issues that remain unresolved. Among them are proposals to have a board parliamentarian, create board committees, and when the board’s attorney (rather than the Department of Education attorney) can address the group or answer questions.

The board later approved A-F grades for schools after a cordial discussion that led to suggestions for next year but never erupted into a quarrel. And it even discussed curriculum issues without raised voices.

To anyone who hasn’t been watching the board, these may seem like the way business ought to be done. But for the State Board of Education, the meeting was a big step forward. Whether the battle is still smoldering under the surface is unclear. But for now, the ceasefire is a welcome.

Lesley Weidenbener is executive editor of TheStatehouseFile.com, a news website powered by Franklin College journalism students.

Next ObamaCare crisis: Small-business costs? – “Think the canceled health policies hurt the ObamaCare cause? There’s another political time bomb lurking that could explode not too long before next year’s elections: rate hikes for small businesses. Like the canceled individual health plans, it’s another example of a trade-off that health care experts have long known about, as the new rules for health insurance prices create winners and losers.” (Politico; 12/17/2013)

Obama administration relaxes rules of health-care law four days before deadline – “The Obama administration on Thursday night significantly relaxed the rules of the federal health-care law for millions of consumers whose individual insurance policies have been canceled, saying they can buy bare-bones plans or entirely avoid a requirement that most Americans have health coverage.” (The Washington Post; 12/19/2013)

 

45 States Still Haven’t Hit 10 Percent of Enrollment Goals for ObamaCare – “Let’s make this simpler. The only states that have reached 10 percent of their enrollment goals are California, Colorado, Connecticut, New York and Rhode Island; Kentucky is close.” (National Review Online; 12/17/2013)

EXography: States say most uninsured still won’t be covered in 2014 – “More than two-thirds of the estimated 46 million uninsured Americans still won’t have health insurance at the end of ObamaCare’s first year of operation, according to forecasts by the 50 states.” (Washington Examiner; 12/16/2013)

Less than 1,000 health care enrollments in Delaware – “Delaware Health and Social Services Secretary Rita Landgraf told the state health care commission that 793 Delawareans had chosen an insurance plan under the federal Affordable Care Act as of Dec. 12 and had paid the first month’s premium. The announcement marks the first time officials have said how many Delawareans have actually paid for coverage under the ACA.” (The Washington Post; 12/16/2013)

California’s health exchange botched letters to 114,000 households – “Adding to consumer confusion ahead of a major enrollment deadline, California’s health insurance exchange sent flawed eligibility notices to nearly 114,000 households due to a computer error.” (LA Times; 12/18/2013)

Insurers adjust deadlines in response to HHS – “Major insurers agreed to extend deadlines for premium payments until Jan. 10 for consumers who select their plans by Dec. 23. Doing so would give consumers insurance coverage that’s retroactive to Jan. 1, the trade group America’s Health Insurance Plans said Wednesday.” (USA Today; 12/18/2013)

Colorado college students face job losses due to ObamaCare – “Students in the University of Colorado networks could see their full-time jobs cuts to part-time as a result of ObamaCare, but Health and Human Services regulators aren’t responding to questions about the new rules even with the implementation of the law just weeks away.” (Washington Examiner; 12/18/2013)

Fox News Poll: 67 percent say delay ObamaCare, 53 percent would vote to repeal it – “Americans remain unhappy with the health care law: Majorities say they wish it had never passed, would vote to repeal it if they could, and think implementation should be delayed until the kinks are worked out.  At the same time, a shrinking majority believes the law will survive.” (Fox News; 12/18/2013)

 

State Representative Ron Bacon (R-Chandler) issued the following statement in response to the agreement reached for financing of $1billion fertilizer plant at Rockport, Ind.

STATEHOUSE – “As a state representative serving southwest Indiana, I could not be more excited with the announcement of 1,200 additional jobs to our community over the next few years. Job creation has been, and continues to be one of my top priorities.”

“Not only will new jobs be created but local farmers and the trucking industry will also benefit from the products produced at this plant. I look forward to the ground breaking in the coming months and would like to thank Doug Wilson, president of Ohio Valley Resources on choosing Spencer County for this new fertilizer plant.”

INDIANAPOLIS – Indiana Attorney General Greg Zoeller joined 41 other attorneys general recently to ask Congress to extend soon-to-be expired tax relief for distressed homeowners.

Under the federal Mortgage Debt Relief Act, in effect since 2007, mortgage debt that is forgiven after a foreclosure or short sale or through a loan modification may be excluded from a taxpayer’s calculation of taxable income. This exclusion only applies to mortgage debt forgiven on primary residences, not second homes, and is set to expire on Dec. 31.

“We believe if Congress does not extend this critical tax exclusion into next year, struggling homeowners and the slowing improving housing market will take a setback,” Zoeller said. “Failure to act means Hoosier homeowners who have received mortgage debt relief could be hit with a tax bill they simply can’t afford.”

An extension for 2014 is included in the Mortgage Forgiveness Tax Relief Act (S. 1187 and H.R. 2788), both of which are in committee; it is uncertain when these critical bills may be considered. The current Ryan-Murray budget proposal does not include the exemption provision.

Zoeller said the expiration comes at a time when the housing market, while still fragile, has shown signs of gradual improvement over the last year. Data shows that home prices have increased this year, and the S&P/Case-Shiller home price index reported gains of 12 percent or more. CoreLogic has also estimated that 2.5 million more families have had their homes returned to positive equity in the second quarter of 2013.

Last year, Zoeller joined 41 other attorneys general in successfully persuading Congress to extend these benefits into 2013.

Click here to view the letter sent by attorneys general to Congress.

Fourth largest mortgage servicer, Ocwen, to pay
relief to borrowers & follow stricter standards

INDIANAPOLIS – Ocwen Financial Corporation of Georgia and its subsidiary, Ocwen Loan Servicing, have agreed to a $2.1 billion joint state-federal settlement with Indiana Attorney General Greg Zoeller, 48 additional attorneys general, and the Consumer Financial Protection Bureau (CFPB).

The settlement terms address servicing misconduct by Ocwen, and two companies later acquired by Ocwen, Homeward Residential Inc. and Litton Home Servicing LP. Ocwen specializes in servicing high-risk mortgage loans.

Ocwen will provide $2 billion in first lien principal reduction to borrowers nationwide, including borrowers in Indiana who are projected to benefit with principal reductions worth up to $18.6 million. Additionally, 2,957 borrowers in Indiana who experienced a foreclosure sale will be eligible to receive a cash payment. The payment amount, which is contingent on the number of consumers who submit valid claims, is projected to exceed $1,000.

“This settlement with the nation’s fourth largest mortgage servicer stems from a massive civil law enforcement investigation and initiative that includes state attorneys general, state mortgage regulators and the CFPB,” Zoeller said. “It’s critical for state and federal partners to work together and use the resources available to ensure borrowers are being treated fairly and mortgage servicers are held accountable.”

According to a complaint filed in the U.S. District Court for the District of Columbia, the misconduct resulted in premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits, including “robo-signing.”

Through a court order, the settlement holds Ocwen accountable for past mortgage servicing and foreclosure abuses, provides relief to homeowners, and prevents future fraud and abuse. Under the settlement, Ocwen agreed to $2 billion in first-lien principal reduction, and $125 million for cash payments to borrowers on nearly 185,000 foreclosed loans.

Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement, will oversee the Ocwen agreement’s implementation and compliance through the Office of Mortgage Settlement Oversight.

The National Mortgage Settlement, a three-year  agreement reached in 2012 with the attorneys general of 49 states and the District of Columbia, the federal government, and five mortgage servicers (Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo), has so far provided more than $51 billion in relief to distressed homeowners and created significant new servicing standards.

The Ocwen settlement does not grant immunity from criminal offenses and would not affect criminal prosecutions. The agreement does not prevent homeowners or investors from pursuing individual, institutional or class action civil cases. The agreement also preserves the authority of state attorneys general and federal agencies to investigate and pursue other aspects of the mortgage crisis, including securities cases.

Ocwen Agreement Highlights

• Ocwen commits to $2 billion in first-lien principal reduction.
• Ocwen pays $125 million cash to borrowers associated with 183,984 foreclosed loans.
• Homeowners receive comprehensive new protections from new mortgage loan servicing and foreclosure standards.
• An independent monitor will oversee implementation of the settlement to ensure compliance.
• The government can pursue civil claims outside of the agreement, and any criminal case; borrowers and investors can pursue individual, institutional or class action cases regardless of the agreement.
• Ocwen pays $2.3 million for settlement administration costs.

The final agreement, through a consent judgment, will be filed in U.S. District Court in Washington, D.C.  If approved by a judge, it will have the authority of a court order.

Because of the complexity of the mortgage market and this agreement, which will span a three year period, in some cases Ocwen will contact borrowers directly regarding principal reductions.  However, borrowers should contact Ocwen to obtain more information about principal reductions and whether they qualify under terms of this settlement.

A settlement administrator will contact qualified borrowers associated with foreclosed loans regarding cash payments. More information will be made available as the settlement programs are implemented.

For more information on the agreement visit www.IndianaConsumer.com or visitwww.CFPB.gov.