Time for a Medicaid-Education Grand Swap

Lamar Alexander:

Staring down steep tuition hikes, students at the University of California have taken to carrying picket signs. As far as I can tell, though, none has demanded that President Barack Obama accept a Grand Swap that could protect their education while saving them money. Allow me to explain.

When I was governor of Tennessee in the early 1980s, I traveled to meet with President Ronald Reagan in the Oval Office and offer that Grand Swap: Medicaid for K-12 education. The federal government would take over 100% of Medicaid, the federal health-care program mainly for low-income Americans, and states would assume all responsibility for the nation's 100,000 public schools. Reagan liked the idea, but it went nowhere.

If we had made that swap in 1981, states would have come out ahead, keeping $13.2 billion in Medicaid spending and giving $8.7 billion in education spending back to Washington. Today, states would have about $92 billion a year in extra funds, as they'd keep the $149 billion they're now spending on Medicaid and give back to Washington the $57 billion that the federal government spends per year on schools.

Posted by Jim Zellmer at May 17, 2012 1:08 AM
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