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CAGW's Blog
1-800-
BE-ANGRY
February, 2012
A Monthly Dispatch from Citizens Against Government Waste
State and Local Government Defined Benefit Plans Are “Inherently Flawed”
by: Erica Gordon
On January 10, 2012, Senator Orrin Hatch (R-Utah) released a report on state and local government defined benefit pension plans in which he detailed the risks associated with the nation’s $4.4 trillion public pension debt, calling the defined benefit pensions structure “inherently flawed in the state and local government setting.” This massive liability is dangerous for taxpayers and could mean future cuts in services, reductions in benefits, higher taxes, or a combination of these less-than-desirable options.
The Elephant in the Room
by: Luke Gelber
Every summer, Citizens Against Government Waste (CAGW) combs through the dozens of budget proposals drafted by Presidents past and present, senators, representatives, think tanks, and nonprofits in an effort to come up with a list called Prime Cuts that would hack away at government bloat and lighten the load for taxpayers. CAGW staff takes this project seriously, leaving no stone unturned and sparing no agency. Last year, for the first time since 1993, CAGW produced a Prime Cuts Summary detailing the federal government’s most wasteful and outdated programs.
Obama’s Proposal to Merge Agencies Merits Thorough Review
by: PJ Austin
As part of a larger proposal to shrink and streamline government, the Obama administration announced on January 13, 2012 that it is seeking congressional approval to merge federal agencies. The President’s plan would not allow Congress to modify administration proposals, but the adoption of any plan would be subject to an up-or-down vote.
Lifeline/Link -Up Reform on FCC Agenda
by: Deborah Collier
The Lifeline program is part of the Universal Service Fund’s (USF) low-income support services, providing subsidized telephone services to low-income households. The low-income support program also includes the Link-Up program, which provides a discount off the initial installation fee for one traditional, wire line telephone service at a primary residence, or the activation fee for one wireless telephone. The Link-Up program also allows subscribers to pay the remaining amount they owe for their connection on a deferred schedule, interest-free.
Food Stamp Expansion and Fraud
by: Jonathan Buono
The Supplemental Nutrition Assistance Program (SNAP), commonly referred to as food stamps, has grown dramatically under President Obama’s administration. At the start of his term, in January 2009, there were approximately 32 million Americans receiving federal assistance from SNAP, costing more than $3.6 billion per month. According to the most recent data from the U.S. Department of Agriculture (USDA), there are now more than 46 million individuals receiving SNAP benefits, or roughly one in every seven Americans. The cost to taxpayers now sits at $6.2 billion per month. These figures exclude the cost of the program’s management, enforcement, and oversight. The fiscal year 2011 SNAP program cost a record total of $75.3 billion. Based on the current trend, that number will continue to rise in 2012, and could reach $80 billion.
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