State Policy Network
3 State Policy Solutions to be Thankful For

Meaningful policy reforms rarely come from the federal government in Washington, DC. They come from the states, which are closer to the people and can more easily tailor policies to fit the unique needs of the families in their communities. In 2023, the states advanced several policy reforms that make life better for Americans.

As we gather with family and friends this Thanksgiving, here are three state policy solutions to be thankful for.

1. School Choice

More education options are now available to students across the country. In 2023, Iowa, Utah, Arkansas, Florida, Oklahoma, Ohio, and North Carolina passed  “universal” school choice programs—which means all students in the state, regardless of income level, are eligible for the program. Nine states now have these programs, with Arizona and West Virginia passing similar policies in previous years.

Families in these states can now access funds that can be used towards their education, including paying for textbooks, tutoring, homeschooling, or even private school.

America’s education system is failing to provide children with the tools they need to succeed in life. While many students receive a quality education that sets them up for success, a good education is unfortunately out of reach for so many kids—especially those from low- income communities.

School choice policies, such as Education Savings Accounts, tax credit scholarship programs, or education vouchers are one way to improve education outcomes for K-12 students. These policies empower parents to choose the education that best fits the unique needs of their children—whether that’s public, private, or even home school.

These policies passed in so many states this year thanks to the efforts of several Network groups, who worked to educate policymakers and parents on the benefits of school choice.

This momentum to improve education should continue into next year. During the 2024 legislative sessions, Louisiana, Mississippi, and Alabama could advance universal school choice legislation—bringing more education options to even more families.

2. Tax Cuts

Millions of Americans are struggling to cope with inflation that has increased prices over the last few years. Families across the country are finding it hard to afford their rent, mortgage, electricity bill, and groceries, among other necessities.

While Washington DC has provided little solutions to historic price increases, the states are providing relief in the form of tax cuts. This year, Arkansas, Connecticut, Indiana, Kentucky, Montana, Nebraska, North Dakota, Utah, and West Virginia cut income taxes.

In Michigan, the Mackinac Center helped stop legislation that would have prevented an automatic income tax cut. Thanks to Mackinac’s efforts, Michigan’s income tax rate will drop from 4.25% to 4.05% this year.

Mississippi passed something called “full expensing,” a policy that enables businesses to immediately deduct the entire cost of capital expenditures from taxable income, rather than spreading out those deductions over years or decades. As SPN’s Michael Lucci explains, full expensing will grow the economy, re-shore critical supply chains, create jobs, and increase wages.

Tennessee passed the “Tennessee Works Tax Act” the largest tax cut in Tennessee history, with over $400 million in taxes cuts. Other states reduced property taxes, including Iowa, Montana, Nebraska, North Dakota, Texas, and West Virginia.

By lowering taxes, state governments are easing the financial burden on hardworking families. Now these families can keep more of the money in their paycheck—allowing them to better afford living expenses.

3. Healthcare Reform

One of the biggest strains on a family’s budget is often healthcare costs. The federal government has failed to pass healthcare reforms that significantly reduce costs.

The states, however, continue to advance policies that lower costs and improve access to care. This year, South Carolina significantly repealed its certificate-of-need (CON) laws—regulations that require healthcare providers to get special permission from the government before adding or expanding healthcare services or facilities. CON laws increase healthcare costs while making it harder for people to access care. South Carolina’s repeal is the most comprehensive in the United States since Pennsylvania’s repeal in 1996. The Palmetto Promise Institute has worked for years to educate policymakers about how these laws hurt patients—and was instrumental getting this win across the finish line.

West Virginia also repealed some of its certificate-of-need laws. The Cardinal Institute played a key role in helping West Virginia lawmakers remove some of the Mountain State’s CON laws during the 2023 legislative session.

Minnesota passed the most robust package of price transparency policies in the country, thanks in part to the Center of the American Experiment.

And in Nevada, state lawmakers adopted a “Right to Try” for individualized treatments thanks to the efforts of the Goldwater Institute. The law allows terminally ill patients to seek potentially lifesaving treatments without asking the federal government for permission.

These are just some of the many examples of states advancing reforms that improve the lives and livelihoods of the people in their communities. While most of the attention is on Washington, DC, the federal government consistently fails to find solutions to the problems that matter most to American families.

Thankfully, America’s system of government places much of the power with the states—which continue to advance policies that improve education, lower taxes, and increase access to healthcare.

Categories: News
Organization: State Policy Network