The American Legislative Exchange Council (ALEC) held its States and Nation Policy Summit in Scottsdale, Arizona from November 29, 2011 to December 2, 2011. Citizens Against Government Waste (CAGW) staff was present during several meetings of the Tax and Fiscal Policy Task Force. Topics included twenty-first century commerce and taxation, and different methods of simplifying current state sales tax models for online, telephone and catalog purchases. The Civil Justice Task Force also held a review of state workers’ compensation reform proposals in its newly formed Workers’ Compensation Subcommittee.
Minibus Drives Savings
On November 18, 2011, President Obama signed the “minibus” appropriations legislation, which contained three fiscal year (FY) appropriations bills: the Department of Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Commerce, Justice, Science and Related Agencies; and Transportation, Housing and Urban Development, and Related Agencies. According to a November 17, 2011 press release by House Speaker John Boehner (R-Ohio), the legislation decreases spending in these appropriations bills by $7 billion from fiscal year (FY) 2011, and comes in at $98 billion below the president’s budget request.
Federal Contractor Pensions Protected at Taxpayers’ Expense
Taxpayers may be surprised to learn that they are currently bankrolling the retirement plans of profitable, private sector companies. With a record-breaking national debt, a sinking economy, and millions of Americans facing losses to their own retirement accounts, taxpayers should not be on the hook for tens of billions of dollars for private contractor pensions and benefits.
Connect America Fund: Continuing the Universal Service Fee with No End in Sight
On November 18, 2011, the Federal Communications Commission (FCC) issued its much-anticipated 759-page proposed rulemaking for the Connect America Fund (CAF), which sets out to reform the Universal Service Fund (USF) and the Intercarrier Compensation (ICC) programs. Public comments on certain sections of the rulemaking are due by January 18, 2012, and on other sections by February 17, 2012.
Congressional Meddling in USPS Makes Bailout More Likely
Congress seems to have two legislative speeds: inertia in the face of an oncoming fiscal disaster, or ugly, last-minute scrambles to ram through sham legislation that often exacerbates already fraught situations.
California High-Speed Rail: Way Off Track
In November 2008, California voters approved Proposition 1A, a $9.95 billion bond measure to fund part of the state’s share of the proposed high-speed rail line from Anaheim to San Francisco. The bond was approved by a narrow margin of 52.7 percent of the 12.6 million votes. The railway was supposed to be up and running by 2020, and the total cost was estimated by the California High-Speed Rail Authority (CHSRA) at $33 billion. While it was easy to see why some balked at the price estimate, one could also understand its support, at least among potential beneficiaries. After all, taxpayers outside the rail corridor, both in California and across the country, were supposed to pick up $6.8 billion, or one-quarter of the railway’s $27 billion initial segment.
Two Different Worlds: Public vs. Private Sector Compensation
Despite the popular belief that federal employees are underpaid public servants, the data tells a very different story. When all of the factors that affect compensation are accounted for, there is significant evidence that federal employees make considerably more than their private sector counterparts.
As GM’s Stock Price Drops, Auto Bailout Cost Goes Up
Wastewatcher, December, 2011
Sequestration Option Discussed After Super Committee Fails to Deliver
Since the Budget Control Act (BCA) was signed into law on August 2, 2011, all eyes had been on the Joint Select Committee on Deficit Reduction. With a looming $15 trillion national debt, weak economy and failing financial markets, this “Super Committee” was tasked with finding $1.5 trillion in savings over 10 years. A bipartisan group of 12 representatives and senators were chosen for the job, including Reps. Xavier Becerra (D-Calif.), Jim Clyburn (D-S.C.), Chris Van Hollen (D-Md.), Fred Upton (R-Mich.), Dave Camp (R-Mich.), and Jeb Hensarling (R-Texas), and Senators Max Baucus (D-Mont.), John Kerry (D-Mass.), Patty Murray (D-Wash.), Jon Kyl (R-Ariz.), Rob Portman (R-Ohio) and Pat Toomey (R-Pa.).
On Fannie, Freddie, and the FHA, Two Steps Back
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.