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.
Obama’s Proposal to Merge Agencies Merits Thorough Review
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
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
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.
DHS Grants: Legacy of Waste
Following the attacks of September 11, 2001, the U.S. prioritized Department of Homeland Security (DHS) grants to prepare state and local emergency personnel for further incidences of terrorism or other catastrophic events. However, like most programs, members of Congress quickly began using DHS grants for parochial projects. The Center for Investigative Reporting stated in 2011 that the U.S. has spent $34 billion on such grants over ten years.
Time to End Earmarks Once and For All
Year after year, lawmakers have sullied the political process by directing chunks of the federal budget back to their home districts and states to promote their own reelections and reward special interests. In an attempt to put an end to this form of profligate spending, Senators Claire McCaskill (D-Mo.) and Pat Toomey (R-Pa.) recently introduced S. 1930, The Earmark Elimination Act, which would build upon and make permanent the current earmark moratorium that is set to expire at the end of 2012.
News from ALEC
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.