Posts Tagged ‘Government Overspending’

Congressional misuse of taxpayer provided travel funds

Wednesday, September 1st, 2010

The Wall Street Journal reported yesterday that at least six lawmakers are under investigation for misusing taxpayer money intended for overseas travel expenses (Congressional rules allow members of the House and Senate to receive daily allowances for meals, cabs and other official travel-related expenses).

The House Ethics Committee is looking into whether some of these funds were instead used to purchase gifts, or pay for spouses’ travel.

According to The Journal, the amount allotted can “add up to more than $1,000 a trip for longer visits to expensive regions.” But as it is common for lawmakers’ “meals and expenses [to be] picked up by other people, such as foreign government officials or U.S. ambassadors…That can leave lawmakers with leftover money [which they] routinely keep or spend on gifts, shopping or to cover their spouses’ travel expenses, according to dozens of current and former lawmakers.”

While several Members have been questioned by Ethics — including Reps. Robert Aderholt (R-AL), G.K. Butterfield (D-NC), Alcee Hastings (D-FL), Solomon Ortiz (D-TX), Joe Wilson (R-SC), and former Rep. Mark Souder (R-IN) — some staff are questioning whether the alleged misuse of taxpayer dollars really warrants an investigation, According to The Journal, a spokeswoman for one of the Members said: “Focusing on personal purchases under $2 while over 14 million Americans are out of work does not reflect the priorities of the American people.”

We agree that Congress should be concentrating on our greatest economic and fiscal challenges. And it is important to note, as did The Journal, that there is currently “no system for lawmakers to return excess travel funds when they return to the U.S.”

But if Washington is unwilling even to control its spending on the small things ($2 bucks!!), how are American taxpayers supposed to trust them to tackle the country’s nearly $13.4 trillion debt?

The state of the States

Friday, August 13th, 2010

This summer, White House officials have been traveling all over the country on a “Recovery Summer” tour.  The general purpose of the tour is to tout the American Recovery and Reinvestment Act (aka the “stimulus” bill) as essential in saving and creating “millions” of jobs and encouraging economic growth. However, with a stalled economy and growing unemployment, we decided to take a closer look.  We’ve compiled a fact sheet for each of the 50 states and the District of Columbia and have found a very different story than that being told on the “Recovery Summer” tour.

Click here to view the fact sheets and see how your state’s economy has performed since the “stimulus” was enacted.

New video: Can you tell which of these government spending projects are real or fake?

Thursday, August 12th, 2010

Joke-telling robots, expensive walking tunnels, Blackberries for smokers, and training American prostitutes to drink responsibly. What do these things have in common?  They’re all questionable government spending projects in a time when our economy is struggling and people can’t get jobs.…or, maybe we just made them up.

Put yourself to the test.  Click below to watch our man-on-the-street video.  See if you can outwit the Rebel Economist before she stumps you. So what is it: REAL or FAKE?

Want to learn more about the projects featured in the video, the waste in your state and hundreds more examples? (Even better: want to do something about it?) Try our Spending #FAIL Map, which allows you to choose the spending projects of your (dis)liking, share the facts with others on Facebook, and call and tweet your member of Congress.

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Source List:

Location: Chicago, Illinois

Project Cost: $712,883

Northwestern University received $712,883 to develop a model of machine-generated humor.  The project will “create intelligent comedic performance agents and deploy them both on- and off-line for the enjoyment and illumination of everyday citizens.”

Source: http://www.research.northwestern.edu/stimulus/hammond.html

Location: Tallahassee, Florida

Project Cost: $3.4 million

A project to build a tunnel for turtles to pass under a Florida highway has received $3.4 million in stimulus funds.  The millions are, as reported, still not enough to completely finance the project.

Source: http://www.wcjb.com/news/4125/3-4-million-of-federal-stimulus-money-to-pay-for-turtle-tunnel

Location: Washington, DC

Project Cost: $1 million

Almost $1 million in stimulus funds were used to give out free BlackBerry smartphones to people trying to stop smoking.  The phones will reportedly make it easier for those trying to quit to access a support network.

Source: http://www.cnn.com/video/?/video/tech/2010/02/11/levs.free.blackberries.smokers.cnn

Location: Detroit, Michigan

Project Cost: $2.6 million

A five-year $2.6 million grant (2008) will help a Wayne State University School of Medicine researcher establish and evaluate whether an alcohol and HIV intervention center can assist in reducing the spread of HIV/AIDS among sex workers in China.

Source: http://prognosis.med.wayne.edu/article/grant-allows-research-to-study-link-between-alcohol-abuse-and-spread-of-hiv

Spending FAIL Map: web tool connects awareness with action

Thursday, August 12th, 2010

While the issue of government spending is serious, we thought we’d have some fun exposing some questionable spending projects when our economy is struggling <ahem, looking in your direction $712,000 joke-telling robot>.

Our interactive Spending #FAIL Map allows you to see select spending projects of your (dis)liking in your state and many more, share the facts with others on Facebook, and call and tweet your member of Congress.

Give it a go by clicking here or the image below.  You decide: are these projects a good use of your taxpayer dollars? Do they help the economy and jobs?

We’ll be updating and expanding the map continuously so it continues to be a useful tool for you.  Still want more? Check out our 50 state fact sheets and jump straight to your state’s fiscal and economic cheat sheet.

Our spending trajectory is unsustainable

Thursday, August 12th, 2010

An opinion piece in Forbes by Brian S. Wesbury and Robert Stein asks an important question: when is government spending necessary, and when is it not?

The two write: “Up to a point, some government spending is good. Defending the nation and the rule of law, and helping create some national efficiencies are positive additions to growth.”

They’re right: there are some things the federal government, and surely the state governments, must provide.

But the two caution, “[T]he U.S. is past that point.”

We’d say we’re way past that point. Our current spending trajectory is simply unsustainable. The U.S. is more than $13.3 trillion in debt. (See Public Notice’s fact sheet on irresponsible governing.) Taxpayers pay interest on that debt just like homeowners pay interest on their mortgage. That interest alone, when adjusted for inflation, will nearly triple from $221 billion to $637 billion between 2011 and 2020. (See Public Notice’s fact sheet on unsustainable spending.)

Furthermore, this spending is not helping the economy. Wesbury and Stein turn north to make this point. Our neighbors in Canada have been cutting spending and taxes for some time. Their unemployment rate, while still high by U.S. historical standards, is 1.5 percentage points lower than the current U.S. rate of 9.5 percent.

Latest ‘state bailouts’ create even bigger problems for some

Wednesday, August 11th, 2010

This week, the House of Representatives interrupted its “August Recess” to rush back to Washington to pass yet another ‘emergency’ bailout; this time, a $26-billion spending package the nation cannot afford, to supplement pay for state workers the states cannot afford.

Even the states themselves are beginning to share their concern with this unsustainable cycle of continued ‘emergency’ federal bailouts:

According to today’s Wall Street Journal, this latest state bailout will force many states to spend more – not less – and drive them further down a path of unsustainable spending.

Governor Haley Barbour of Mississippi did the math and figured out his state will be worse off. Mr. Barbour says the bill will force his state “to rewrite its current year [fiscal 2011] budget. Preliminary estimates of the Mississippi Department of Finance and Administration show that we will now have to spend between $50-100 million of state funds—funds that must be taken away from public safety, human services, mental health and other state priorities and given to education—in order for an additional $98 million of federal funds to be granted to education. There is no justification for the federal government hijacking state budgets, but that is exactly what Congress has done.”

For Texas, and only Texas, this funding rule will be in place through 2013. This is a form of punishment because the Beltway crowd believes the Lone Star State didn’t spend enough of its 2009 stimulus money. Apparently Texas politicians have been clinging to the quaint notion that the government should try to live within its means.

Texas Governor Rick Perry is also opposed to this new “assistance” from the federal government. He understands that one-time payments that force permanently higher state obligations are a windfall for government employees. But if given the choice, taxpayers would just say no.

Click here to read the entire article.

Today’s Cleveland Plain Dealer tells a similar story:

By approving $26 billion in new spending nationally, Congress will ensure that Ohio gets more than $880 million. Yet much of that is supposed to help states with Medicaid budget shortfalls, a problem Ohio doesn’t have.

More than $880 million in fresh economic aid is coming to Ohio thanks to Congress — whether Ohio needs it all or not.

“But state Republican lawmakers suggested that however the money is used, it could put Ohio in a bind later because the state will have expanded programs it could not afford in the first place. When the money runs out, the state’s looming problems will be hundreds of millions of dollars deeper, they said.”

Click here to read the entire article.

Gates on spending cuts: “There are no sacred cows.”

Tuesday, August 10th, 2010

As we have reported before, Robert Gates, the U.S. Secretary of Defense, has come out in support of trimming his department’s budget over the long run. Today, the Associated Press reports that Gates is pressuring his department to live within its means.

“The department must start setting priorities, making real trade-offs and separating appetites from real requirements,” Gates said.

Gates vowed to review every corner of the budget, including the military’s rising health care costs.

“There are no sacred cows,” Gates said.

Besides shutting down Joint Forces Command, Gates wants to:

- Trim by 10 percent the budget for contractors who support the Defense Department;

- Freeze the number of employees working for his office, defense agencies and combatant commands for the next three years; and

- Cut at least 50 general and flag officer positions and 150 senior civilian executive positions over the next two years.

Other departments could certainly learn a thing or two from Secretary Gates. Unfortunately, today Washington will be engaged in belt-loosening, not tightening, as Congress is set to vote this afternoon on a measure that will cost taxpayers $26 billion.

Bell, CA city officials cave to public pressure

Tuesday, July 27th, 2010

In an egregious example of out-of-touch government officials, city employees of Bell, CA have drawn national attention for their unusually high wages.  As part-time employees, members of the Bell City Council made nearly $97,000 a year, a more than 50% jump since 2005.  Caving to public pressure, the city council agreed last night to a 90% decrease in pay.  Top Bell city officials were also garnering outrageous pay.  The Assistant City Manager made over $376,000 a year, the police chief made $457,000, and the City Manager pulled in a staggering $787,637.  The City Manager, Robert Rizzo, has since resigned.  California State Attorney General Jerry Brown has announced an investigation into the high pay to determine if there was anything illegal involved in the compensation controversy.

We continue to see examples of fiscal irresponsibility around the country.  Considering the massive budget deficit California is currently facing, $800,000 for a city manager is hardly an example of the fiscal restraint required for California to turn its ailing economy around.

Deficit Update Release

Friday, July 23rd, 2010

The Administration today released its update to the President’s annual budget proposal. The Mid-Session Review (MSR) doesn’t bring much good news for those worried about government overspending. Here are a few highlights:

According to today’s release, under current law, assuming Congress does not enact new fiscal policies, spending in fiscal year 2010 will be $3.547 trillion dollars (this is roughly the same as it was estimated to be in the Administration’s initial budget released in 2009). This would put spending at about $30 billion more than 2009 levels.

If Congress follows all of the President’s proposals, spending in 2010 would be $3.6 trillion – about $85 billion more than last year.

$850,000 of taxpayer money goes to buy art

Friday, July 23rd, 2010

The Mackinac Center, a think tank in Michigan, is reporting that the city of Ann Arbor has spent $850,000 on a piece of art, while at the same time laying off firefighters.

The debate in Ann Arbor, where firefighters are being laid off due to a multimillion dollar budget deficit, is over an $850,000 piece of art.

That’s how much the city has agreed to pay German artist Herbert Dreiseitl for a three-piece water sculpture that would go in front of the new police and courts building right by the City Hall.

The city has the money to do it because in 2007, it agreed to set aside for public art 1 percent of money that went into capital improvement projects that were $100,000 or larger. Most capital projects involve streets, sewers and water.

Ann Arbor City Council member Stephen Kunselman, a Democrat, opposed the art deal.

“I think it is incredibly insensitive,” Kunselman said. “It is insensitive to the staff and their morale. It is insensitive to the community. There are people out there struggling financially, and here we are spending a large amount of money on a piece of art.”

Kunselman said the city is also eliminating the solid waste coordinator from the budget, which oversees trash pickup, and hiring an art coordinator.