The case of the Alphabet Soup

P

P

A

C

AR

L

CP

T P

CATTORNEY

Lawyer

PPACA: The Case of SCOTUS

Through the Looking Glass

The Affordable Care Act and the Three-Legged Stool

Eliminate Pre-Existing Conditions

Individual Mandate Penalty (“Tax”)

State Exchange Subsidies

A.C.A. §1311:

Subsidies for premiums purchased “through an Exchange established by the State.”

50 States (plus DC)…17 State Exchanges…

34 Federal Exchanges…

Eliminate Pre-Existing Conditions

Individual Mandate Penalty (“Tax”)

State Exchange Subsidies

50 States (plus DC)…17 State Exchanges…

34 Federal Exchanges…

11.2 Million Taxpayers sought coverage;

87% qualified for subsidies. Without subsidies, individual

mandates are crippled.

Insurance pool reduced.

A.C.A. §1321:

If state does not elect to set

up exchange, HHS “shall

establish and operate such

exchange within the state.”

RLC: The Case of the Upside

Down Tax

Required

Local

Contribution

“RLC”

AS 14.17.410(b)(1)

“State aid

equals basic

need minus a

required local

contribution…”

AS 14.17.410(b)(1)

“State aid

equals basic

need minus a

required local

contribution…”

AS 14.17.410(b)(1)

“State aid

equals basic

need minus a

required local

contribution…”

AS 14.17.410(d)

“State aid may not be provided to a city or borough school district if

the [RLC] have not been made.”

$4.2 Million

October 2013

Title 14.17

AK Constitution

Article IX, Section 7

“The proceeds of any

state tax or license shall

not be dedicated to any

special purpose…”

1. Prohibit Earmarking

2. Promote Flexibility of the General Fund

3. Prevent Abdication of Legislative Responsibility

? ? ?

Dedicated “Tax or License” Examples:

1. Mandatory assessments on sale of salmon

2. Sale of land transferred to UA

Dedicated “Tax or License” Examples:

But Not:

1. Whittier tunnel

2. Tobacco settlement

Is the RLC an unconstitutional dedicated tax?

Is the RLC an unconstitutional dedicated tax?

Judge Bill CareyAlaska Superior Court

YES

The RLC is a

proceed that comes

from a “state tax.”

Is the RLC an unconstitutional dedicated tax?

Judge Bill CareyAlaska Superior Court

YES

And, RLC funds are

earmarked for a specific

purpose.

If RLC is unconstitutional, then Ketchikan Borough gets its $4.2 million back.

TRUE or FALSE ?

$$

Theory: Unjust Enrichment / Assumpsit

1. A benefit conferred on State by Borough.2. Appreciation of the benefit. 3. Retention of the benefit would be inequitable without paying the value.

Theory: Unjust Enrichment / Assumpsit

1. A benefit conferred on State by Borough.2. Appreciation of the benefit. 3. Retention of the benefit would be inequitable without paying the value.

FALSE

Theory: Unjust Enrichment / Assumpsit

1. A benefit conferred on State by Borough.2. Appreciation of the benefit. 3. Retention of the benefit would be inequitable without paying the value.

FALSE

AS 14.17.410(d):

No aid if no RLC

Footnote 8: “The court recognizes that although the State is constitutionally mandated to ‘establish and maintain a system of public schools,’ it is not mandated to fully fund public schools… Public school districts are ‘eligible’ for, not entitled to, State aid.”

William B. Carey11/21/14Superior Court

Are Municipal Districts better off if RLC is unconstitutional?

YES or NO?

What is “full funding” of

schools?

?? ?

DEEP THOUGHTS…

Are REAA’s immune?

?? ?

??

What happens for FY15, FY16?

?? ?

Who wins / loses

if foundation formulas

are completely

rewritten?

??

?

Why is this dog not on a leash?

? ??

AK Supreme Court Oral ArgumentSeptember 16, 2015

Chat for Happy Hour:1. 2 of 4 wonder if State obligated for “full funding.” If so, what is “full funding”?

2. If remanded, will it morph into direct adequacy consideration?3. Historical analysis.

AK Supreme Court Oral ArgumentSeptember 16, 2015

Chat for Happy Hour:4. Fish/land sales different? It is the Constitution, silly.5. The glass is never ½ full. 6. One key—is it a tax? Socrates might ask do you have to pay it? “is the ante, not the wager.

PTPC:The Case of the Alaskan

Socrates