The Stimulus Package Unleashed

[we vs us]

From the National Conference of State Legislatures: 

"The state revenue nightmare continues. Officials were hopeful that fiscal year (FY) 2009 would mark the bottom of the revenue plunge, but their hopes have been shattered. Not only have revenues continued to fall below expectations, they are projected to be anemic for years to come. This means another round of budget gaps, certainly in FY 2010, but even beyond in many states.

State lawmakers closed a cumulative budget gap of $145.9 billion in their FY 2010 budgets. This was on top of the gaps they closed in FY 2009 and for many, the ones they faced in FY 2008. Now, midway through FY 2010 for most states, new gaps have opened. And that will not be the end of it. The longest economic downturn in decades appears to be well entrenched and is manifesting itself in multi-year budget shortfalls. Many states already foresee budget gaps in FY 2011 and FY 2012. It is hard to see when they will end.

Ironically, a contributing factor to future state budget gaps is the end of federal stimulus funds provided by the American Recovery and Reinvestment Act (ARRA). Those additional funds supported state budgets in FY 2009 and, to an even greater extent, in FY 2010. That money recedes in FY 2011 and, when it is gone, will leave big holes in state budgets—what many state officials are calling the "cliff effect."

This was posted in Q4 of 2009, but remains true today and into the immediate future. FY 2011's cumulative budget deficit is estimated to be $89 billion, on top of the drops from FY 2008 - 2010. 

So the question is, do we demand that states keep tightening their belts to the point of partial shutdown or do make sure they can continue to run with some semblance of normalcy? 

[Red Arrow]

So the question is, do we demand that states keep tightening their belts to the point of partial shutdown or do make sure they can continue to run with some semblance of normalcy? 

Yes

[Conan71]

From the National Conference of State Legislatures: 

"The state revenue nightmare continues. Officials were hopeful that fiscal year (FY) 2009 would mark the bottom of the revenue plunge, but their hopes have been shattered. Not only have revenues continued to fall below expectations, they are projected to be anemic for years to come. This means another round of budget gaps, certainly in FY 2010, but even beyond in many states.

State lawmakers closed a cumulative budget gap of $145.9 billion in their FY 2010 budgets. This was on top of the gaps they closed in FY 2009 and for many, the ones they faced in FY 2008. Now, midway through FY 2010 for most states, new gaps have opened. And that will not be the end of it. The longest economic downturn in decades appears to be well entrenched and is manifesting itself in multi-year budget shortfalls. Many states already foresee budget gaps in FY 2011 and FY 2012. It is hard to see when they will end.

Ironically, a contributing factor to future state budget gaps is the end of federal stimulus funds provided by the American Recovery and Reinvestment Act (ARRA). Those additional funds supported state budgets in FY 2009 and, to an even greater extent, in FY 2010. That money recedes in FY 2011 and, when it is gone, will leave big holes in state budgets—what many state officials are calling the "cliff effect."

This was posted in Q4 of 2009, but remains true today and into the immediate future. FY 2011's cumulative budget deficit is estimated to be $89 billion, on top of the drops from FY 2008 - 2010. 

So the question is, do we demand that states keep tightening their belts to the point of partial shutdown or do make sure they can continue to run with some semblance of normalcy? 

No better time for government at all levels to re-invent itself by identifying essential services and getting out of areas which are not essential for the gov't to be in.  You can't keep asking for more money or racking up more debt by threatening to shut down.  Some services must be dropped and some need to be consolidated where possible.  Government has become so big and deft, it's now assumed that every government job and function is "essential".  That's an absolutely untrue assumption.

At some point the demand for more revenue is going to have to come to an end.  Things like creating more government jobs with mortgaged funds isn't an appropriate way to deal with growing unemployment.  Increasing government regulations on companies which make it harder and costlier to compete in a global economy whilst creating whole new bureaucracies to oversee such regs is not an appropriate way to help grow American industry.

[nathanm]

Not even worth dignifying.

Really? Why don't you explain what's so ludicrous about the statement that hyperinflation is not a concern when trillions of dollars were recently destroyed causing enormous deflationary pressures and inflation is below 1%, when 2% is almost universally considered to be a more healthy level.

I don't think anybody is advocating unlimited deficit spending for decades to come.

[we vs us]

No better time for government at all levels to re-invent itself by identifying essential services and getting out of areas which are not essential for the gov't to be in.  You can't keep asking for more money or racking up more debt by threatening to shut down.  Some services must be dropped and some need to be consolidated where possible.  Government has become so big and deft, it's now assumed that every government job and function is "essential".  That's an absolutely untrue assumption.

At some point the demand for more revenue is going to have to come to an end.  Things like creating more government jobs with mortgaged funds isn't an appropriate way to deal with growing unemployment.  Increasing government regulations on companies which make it harder and costlier to compete in a global economy whilst creating whole new bureaucracies to oversee such regs is not an appropriate way to help grow American industry.

What, then, shall we cut?  Or rather, what more?  

I'd actually challenge you back and say that "government is too big" is an unsourced canard that is getting repeated without much fact or thought.  What makes you think that the government actually has lots of fat to cut? Just because government is "big" doesn't mean that it isn't doing what it's been asked to do.  

As far as the state goes, what programs are you ready to cut?  

[guido911]

What, then, shall we cut?  Or rather, what more?  

I'd actually challenge you back and say that "government is too big" is an unsourced canard that is getting repeated without much fact or thought.  What makes you think that the government actually has lots of fat to cut? Just because government is "big" doesn't mean that it isn't doing what it's been asked to do.  

As far as the state goes, what programs are you ready to cut?  

I guess my question to you is, before I give my examples where to cut, what do you consider essential government services? Does the Parks Department, PAC, or other cultural services "essential"?  What about Tulsa Transit?  Must we have that?

[TURobY]

I guess my question to you is, before I give my examples where to cut, what do you consider essential government services? Does the Parks Department, PAC, or other cultural services "essential"?  What about Tulsa Transit?  Must we have that?

I would argue yes. I certainly don't want to live in a city that doesn't offer recreational, cultural, and transit services.

[guido911]

I would argue yes. I certainly don't want to live in a city that doesn't offer recreational, cultural, and transit services.

Parks and transit are essential to the point that we mortgage our economic future on them? Seriously?

[Conan71]

What, then, shall we cut?  Or rather, what more?  

I'd actually challenge you back and say that "government is too big" is an unsourced canard that is getting repeated without much fact or thought.  What makes you think that the government actually has lots of fat to cut? Just because government is "big" doesn't mean that it isn't doing what it's been asked to do.  

As far as the state goes, what programs are you ready to cut?  

That's a huge can of worms you just opened, but if you must, here's but one example of more to come:

The U. S. Commission on International Religious Freedom:

"Is the USCIRF a private organization, such as a religious body, an advocacy organization, or an interest group?

The Commission is a government entity created by Congress. It is funded entirely by the federal government on an annual basis and its staff members are government employees. The White House and Congressional leadership appoint the Commissioners."

Worthwhile, eh?

The Corporation For National & Community Service:

"On February 1, 2010, President Barack Obama released his Fiscal Year 2011 budget request, including proposed funding for the Corporation for National and Community Service and its programs.   The Corporation's FY 2011 budget request of $1.416 billion will strengthen our nation's volunteer sector, foster innovation and civic engagement, and mobilize more than six million Americans to solve critical problems through national service."  Wow, could you come up with a more nebulous description for what this does?

"Jobs for Main Street Act of 2010
On December 16, 2009, the House of Representatives passed the Jobs for Main Street Act of 2010, which includes $200 million for the Corporation for National and Community Service to support up to 25,000 AmeriCorps member positions and corresponding Segal AmeriCorps Education Awards."

WTH does this little entity do for $1.416 bln a year again?

The Committee for Purchase From People Who Are Blind or Severely Disabled

"The Committee for Purchase From People Who Are Blind or Severely Disabled maintains a Procurement List of products and services which have been placed in the AbilityOne Program, as referenced in FAR Subparts 8.0 and 8.7. Once a product or service is on the Procurement List, the Government must buy it from the organization designated by the Committee until the government no longer has requirements for that item, or until a nonprofit agency employing people with severe disabilities can no longer furnish that item."

In other words, even if the government can procure for less money elsewhere, they MUST purchase certain items from specified groups of disabled or disadvantaged.  This is where $60 hammers and $500 toilet seats come from.  It's not the innocent government getting buggered by greedy business owners, it's government entrapping itself into buying preference programs.

Government procurement still wastes a ton of taxpayer money at every level, but nowhere is it near as bad as the Federal level.  I see it quite a bit in my industry.  There was one particular job which comes to mind from a few years ago.  We were contacted a few years back by a company to sub-contract some major pressure vessel repairs for a government installation.  The curious part was who the prime contractor was: a fire alarm company.  The type of work was nowhere related to fire alarms but the owner of that company had the good fortune to have some Indian blood in him.  That gave him preference.  Due to government procurement programs designed to help small and disadvantaged business, he could pick out 10 SIC codes he wanted to do business in.  He selected pressure vessels as one thing even though he had no prior experience, nor qualification, nor personnel to perform any work whatsoever on pressure vessels.  Long and short of it was, my company supplied five men, welding equipment, large compressor, all materials, and we even pushed the brooms at the end of every work day.  He supplied one supervisor to stand around and drink coffee all day and watch our men.  For this, he doubled the price of our work to the government.  It did not ensure the government got better workmanship, in fact it added ZERO value to the government.

This is not an isolated incident at the Federal, State, or local level.  This is incredibly common.  I'm all for trying to make sure that businesses get their fair share of government business, but it should not come at such a great expense to taxpayers.  The company I work for is a certified HUB Zone, Woman-owned business.  Should that alone ensure that we get projects at a 25% premium over our competition?  From a business and tax payer standpoint, I don't believe it should.

Here's more reading, I will be happy to audit the list and come up with a comprehensive list of wasteful areas the government is in.

http://www.usa.gov/Agencies/Federal/All_Agencies/index.shtml

[TURobY]

Parks and transit are essential to the point that we mortgage our economic future on them? Seriously?

You have no economic future without them, as people like me move away to cities with them. So... yes.

[Conan71]

Parks and transit are essential to the point that we mortgage our economic future on them? Seriously?

Without commenting on the merits, I would argue that mass transit and parks are an "expected" government service. 

[Red Arrow]

Most transit companies at the turn of the 19/20th century were privately owned.  (At least from my research on real trolleys.)  They had to pay fees to cities for permission to operate. They had to maintain the streets when they operated there.  They became unprofitable and mostly disappeared.  Buses took over for a while.  Buses didn't have to maintain the streets and (I believe) didn't pay any special fees to use the streets.  Eventually even bus companies became unprofitable and were taken over by government units.

[Conan71]

Wevus, here's the "E" page, I've highlighted in red ones which seem redundant to me:

http://www.usa.gov/Agencies/Federal/All_Agencies/E.shtml

Economic, Business and Agricultural Affairs (State Department)
Economic Adjustment Office
Economic Analysis, Bureau of
Economic Development Administration
Economic Research Service
Economics & Statistics Administration There simply has to be some overlap here where there could be consolidation.
Education Department (ED)
Election Assistance Commission -- Seriously?
Elementary and Secondary Education
Employee Benefits Security Administration (formerly Pension and Welfare Benefits Administration)
Employment and Training Administration (Labor Department)
Endangered Species Committee
Energy Department (DOE)
Energy Efficiency and Renewable Energy
Energy Information Administration
English Language Acquisition Office
Engraving and Printing, Bureau of
Environmental Management (Energy Department)
Environmental Protection Agency (EPA)
Equal Employment Opportunity Commission (EEOC)
European Command
Executive Office for Immigration Review
Export Administration (now the Bureau of Industry and Security)
Export-Import Bank of the United States

Take the time to educate yourself on just how big government really is and peruse the list to figure out the redundancy and how many tentacles each major department has in the way of sub-departments.

[Gaspar]

Lets all take a letter.  I'm taking Rs.

Radio and TV Marti (Español)
Radio Free Asia (RFA)
Radio Free Europe/Radio Liberty (RFE/RL)
Railroad Retirement Board
Reclamation, Bureau of
Refugee Resettlement
Regulatory Information Service Center
Rehabilitation Services Administration (Education Department)
Research, Education and Economics (Agriculture Department)
Research and Innovative Technology Administration (Transportation Department)
Rhode Island State, County and City Websites
Risk Management Agency (Agriculture Department)
Rural Business and Cooperative Programs
Rural Development
Rural Housing Service
Rural Utilities Service

[Gaspar]

I'll do Ms too. . .

Maine Home Page
Maine State, County and City Websites
Marine Corps
Marine Mammal Commission
Maritime Administration
Marketing and Regulatory Programs (Agriculture Department)
Marshals Service
Maryland Home Page
Maryland State, County and City Websites
Massachusetts Home Page
Massachusetts State, County and City Websites
Medicare Payment Advisory Commission
Merit Systems Protection Board
Michigan Home Page
Michigan State, County and City Websites
Migratory Bird Conservation Commission
Military Postal Service Agency
Millennium Challenge Corporation
Minerals Management Service
Mine Safety and Health Administration
Minnesota Home Page
Minnesota State, County and City Websites
Minority Business Development Agency
Mint (Treasury Department)
Missile Defense Agency (MDA)
Mississippi Home Page
Mississippi River Commission
Mississippi State, County and City Websites
Missouri Home Page
Missouri State, County and City Websites
Montana Home Page
Montana State, County and City Websites
Morris K. Udall Foundation: Scholarship and Excellence in National Environmental Policy
Multifamily Housing Office