WasteWatcher - 2011, December
December, 2011
WasteWatcher
A Monthly Dispatch from Citizens Against Government Waste
Sequestration Option Discussed After Super Committee Fails to Deliver
by: Erica Gordon
Wall Street Journal op-ed reminded taxpayers that domestic discretionary spending more than doubled from $298 billion in 2000 to $614 billion in 2010. Domestic programs received an additional $300 billion through the 2009 stimulus bill; sequestration would only take back slightly more than one-fifth of that amount in 2013.
On Fannie, Freddie, and the FHA, Two Steps Back
by: Leslie Paige
Taxpayers are both in awe of and enraged by the schizophrenic behavior of government officials and lawmakers when it comes to taking action on the nation’s thorniest public policy conundrums. Over and over, taxpayers hear the rhetoric emanating from Washington urging opportune and commonsense action to solve a host of public policy issues and then watch, with horror, as the administration and members of Congress fail to turn that lofty rhetoric into forward-moving action; instead, they often make matters even worse. The evolution of reform efforts vis-a-vis the nation’s housing giants Fannie Mae and Freddie Mac and the Federal Housing Administration (FHA) is a perfect case study in that phenomenon.
As GM’s Stock Price Drops, Auto Bailout Cost Goes Up
by: PJ Austin
Despite claims to the contrary, U.S. taxpayers are still on the hook for billions of dollars that were given to General Motors (GM). According to a November 14, 2011 article in the Detroit News, the Treasury Department in its November report to Congress now says it expects to lose $23.6 billion, an increase of more than $9 billion from its previous estimate of $14.33 billion. This adjustment is the result of the recent precipitous drop in the value of GM stock, of which the federal government still owns 500 million shares.
Another Failing Federal Loan Program
by: Deb Collier
The U.S. Department of Agriculture’s (USDA) Rural Electrification Administration (REA) program began during the New Deal Era of the 1930’s. The program’s primary goal was to promote rural electrification to farmers and other rural residents, where due to the high cost borne by utility providers, such investments were not considered feasible. By 1981, 98.7 percent of these homes and businesses received electricity and 95 percent received telephone service. Rather than declaring victory and closing its doors, REA was transformed into the Rural Utilities Service (RUS), which expanded to provide loans for broadband communications to underserved areas of the country. Through the RUS program, the USDA acts as a credit agency assisting rural electric and telecommunications utilities obtain financing, as well as administers nationwide water and waste loan and grant programs that are intended to improve the quality of life and promote economic development in rural America.
GAO Skewers United Launch Alliance Contract Plans
by: Luke Gelber
The Evolved Expendable Launch Vehicle (EELV) program began in 1995 and was designed to allow the Department of Defense (DOD) access to space with the intention of reducing the cost of satellite launches by at least 25 percent while striving for up to 50 percent. Four contractors were initially approved to compete for the contract, but two EELVs were eventually selected: Boeing’s Delta IV and Lockheed Martin’s Atlas V.
MEADS Test “Successful,” Cost and Purpose Uncertain
by: Sean Kennedy
In an apparent last-ditch attempt to secure funding for the troubled Medium Extended Air Defense System (MEADS) program, MEADS International, the primary contractor comprised of Lockheed Martin and MBDA, conducted a flight test at the White Sands Missile Range on November 17, 2011. According to a press release, the test “demonstrated an unprecedented over-the-shoulder launch of the MSE [missile segment enhancement] missile against a simulated target attacking from behind.” Even though the U.S. and Germany have already indicated that they do not intend to undertake the acquisition phase of MEADS, funding has been approved for two flight tests. An intercept flight test is scheduled for the end of 2012. It is unclear how much these tests will cost.
