# Federal Budget



Pawlenty appealing to "Party of Hoover" set

Not content to push for a balanced-budget constitutional amendment in his own state, Minnesota Governor Tim Pawlenty has endorsed the idea of a federal constitutional amendment to require Congress to pass balanced budgets every year. The Wall Street Journal’s Amy Merrick observes,

Previous efforts to pass a national balanced-budget amendment have foundered in Congress. Many lawmakers believe deficit spending can help boost the U.S. economy during downturns, and calls to balance the budget sometimes fade as other priorities surface.

It would be insane to restrict the federal government’s ability to run deficits during a recession. That’s not just something many members of Congress “believe,” it’s a consensus view among economists. But don’t worry, Pawlenty isn’t entirely rigid on the subject of deficit spending:

Mr. Pawlenty’s proposal for a federal amendment would include exceptions for war, natural disasters and other emergencies. The U.S. has been at war for most of the past decade.

No self-respecting Republican ever let spending worries stand in the way of a blank check for war.

Although it’s tempting to laugh at Pawlenty’s proposal, I think highlighting the budget amendment could boost his standing in the 2012 presidential race. His idea isn’t outside the GOP mainstream; leading Republicans proposed a federal spending freeze instead of the stimulus bill Congress passed in February. Republican politicians in Iowa have also embraced Hoovernomics.

The idea could prove popular with the GOP rank and file too. Mike Huckabee gained a lot of traction in Iowa during the summer of 2007 by being the only Republican to endorse the so-called “fair tax.” That idea is even wackier than a federal spending freeze during a recession, but many caucus-goers embraced it.

Any comments about Pawlenty’s prospects or the Republican presidential field are welcome in this thread.

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Mr. President, please ignore the deficit hawks

Barack Obama’s job approval in Iowa fell to 49 percent according to the latest statewide poll by Selzer and Co. for the Des Moines Register. His lowest marks were for his handling of the budget deficit (30 percent approve, 61 percent disapprove), leading Kathie Obradovich to suggest that “Cut spending and balance the budget” should be at the top of Obama’s to-do list.

No matter what today’s polls say about the deficit, it would be poor economic policy and foolish politics to make deficit reduction a priority now.

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Open thread on Obama's 100th day in office

Please share any thoughts about President Barack Obama’s first 100 days in office in this thread. Are you thrilled, satisfied, or disappointed? What have been his best and worst decisions so far, in your opinion?

Congress marked the occasion by approving the president’s $3.5 trillion budget outline in the House and in the Senate.

I will update later with highlights from the president’s press conference this evening.

UPDATE: The consensus seems to be that Obama did very well at the press conference. Over at Popular Progressive, Gark says the president hit a home run on the question about what surprised, troubled, enchanted and humbled him.

Huffington Post has the full transcript from the press conference here. I particularly liked his comments about bipartisanship, and I’ve bolded my favorite remarks:

I do think that, to my Republican friends, I want them to realize that me reaching out to them has been genuine. I can’t sort of define bipartisanship as simply being willing to accept certain theories of theirs that we tried for eight years and didn’t work and the American people voted to change.

But there are a whole host of areas where we can work together. And I’ve said this to people like Mitch McConnell . I said, look, on health care reform, you may not agree with me that I — we should have a public plan. That may be philosophically just too much for you to swallow.

On the other hand, there are some areas like reducing the costs of medical malpractice insurance where you do agree with me. If I’m taking some of your ideas and giving you credit for good ideas, the fact that you didn’t get 100 percent can’t be a reason every single time to oppose my position.

And if that is how bipartisanship is defined, a situation in which basically, wherever there are philosophical differences, I have to simply go along with ideas that have been rejected by the American people in a historic election, you know, we’re probably not going to make progress.

If, on the other hand, the definition is that we’re open to each other’s ideas, there are going to be differences, the majority will probably be determinative when it comes to resolving just hard, core differences that we can’t resolve, but there is a whole host of other areas where we can work together, then I think we can make progress.

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Obama's budget splits Iowa delegation on party lines

The U.S. House of Representatives approved President Barack Obama’s proposed $3.55 trillion 2010 budget on Thursday by a vote of 233 to 196. As you can see from the roll call, all three Democrats representing Iowa voted for the budget: Bruce Braley (IA-01), Dave Loebsack (IA-02), and Leonard Boswell (IA-03). Every House Republican voted against Obama’s budget, including Tom Latham (IA-04) and Steve King (IA-05).

Twenty House Democrats joined Republicans in voting against the budget (Dennis Kucinich plus a minority of the Blue Dog caucus). But it’s notable that most Blue Dogs, like Boswell, supported this budget. Obama has met twice with the Blue Dog caucus this year, most recently on March 30.

House Republicans offered an alternative budget proposal with all kinds of crazy ideas in it, like privatizing Medicare, giving the wealthy more tax cuts, and freezing most non-defense discretionary federal spending. As you can see from the roll call, Tom Latham was among the 28 Republicans who joined House Democrats in voting down the GOP budget alternative. Steve King was among the 137 Republicans who voted yes.

White House officials were right to mock the GOP’s budget alternative as a “joke.” Freezing federal spending is a good way to turn a severe economic recession into a depression.

Soon after the House budget vote, I received press releases from the Democratic Congressional Campaign Committee slamming Latham and King for voting against a wide range of tax cuts contained in the budget resolution. I’ve posted those after the jump.

I suspect that the the DCCC is not putting out statements attacking the House Democrats who voted against the budget, and I’m seeking a comment from their communications staff about whether my hunch is correct. DCCC chair Chris Van Hollen warned on Thursday that liberal groups supporting primary challengers against unreliable House Democrats could cost the party seats in 2010. I wonder why we are supposed to look the other way when members of our own party take positions that the DCCC finds atrocious in House Republicans.

Meanwhile, the U.S. Senate approved a 2010 budget resolution late on Thursday after a nearly 12-hour marathon of votes on various amendments. David Waldman (formerly known as Kagro X) gives you the play-by-play from yesterday’s Senate action at Congress Matters. The final vote in the Senate was 55-43 (roll call here). Iowa’s Tom Harkin voted yes, along with all Senate Democrats except for Evan Bayh of Indiana and Ben Nelson of Nebraska, who voted with Republicans, and Robert Byrd of West Virginia, who did not vote. The 41 Senate Republicans, including Iowa’s Chuck Grassley, voted no.

CNN went over the key similarities and differences between the House and Senate budget resolutions. Most important difference, in my opinion:

[House Democrats] also included language that allows for the controversial procedure called “budget reconciliation” for health care, a tool that would limit debate on major policy legislation.

Senate Democrats did not include reconciliation in their version of the budget. The matter is guaranteed to be a major partisan sticking point when the two chambers meet to hammer out a final version of next year’s spending plan. If it passes, it would allow the Senate to pass Obama’s proposed health care reform without the threat of a Republican-led Senate filibuster.

Notably, both the House and Senate budget bills “do away with Obama’s request for an additional $250 billion, if needed, in financial-sector bailout money.” Thank goodness for that.

Any comments or speculation regarding federal tax or spending policies are welcome in this thread.

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Iowans Deserve the Clean Water in President Obama's Budget Proposal

( - promoted by desmoinesdem)

 As Congress prepares to act on President Obama’s budget this week, the Congressional Budget Office’s estimate of the budget deficit has created new pressure to reduce spending. Fifteen Senators, and a number of House members, have already suggested that Congress must reduce spending significantly below the levels that President Obama requested.

But Iowans need to be aware that reducing spending on domestic appropriations could make this recession longer and hurt our environment while doing very little to reduce the long term deficit.

As the Center on Budget and Policy Priorities warns policy makers:

(click “There's more” to read on) 

 

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Republican hypocrisy watch: Tom Latham edition

Remember when I asked Bleeding Heartland readers to let me know if Representatives Tom Latham or Steve King tried to take credit for infrastructure projects funded by the stimulus bill they opposed?

The Democratic Congressional Campaign Committee noticed that Latham has been sending out press releases touting earmarks in the 2009 omnibus spending bill that he and nearly every other House Republican voted against. That’s right, Latham has been bragging about earmarks he inserted in a bill he didn’t support on the House floor. This is from the DCCC’s press release of March 12:

In a striking example of hypocrisy, after voting against the recently enacted FY 2009 Omnibus Appropriations, Congressman Tom Latham is taking credit for millions of dollars included in the legislation that will help local community colleges, health care clinics, and renewable energy producers in  Iowa ‘s 4th Congressional District.

“Congressman Latham keeps telling people he ‘secured’ millions of dollars in funding for Iowa, but the truth is he voted against these investments,” said Gabby Adler, the Midwestern Regional Press Secretary for the Democratic Congressional Campaign Committee.  “Congressman Latham can’t hide from his voting record, no matter how hard he tries.  Counter to what Congressman Latham would have you believe, these millions of dollars aren’t coming to Iowa because of his hard work, these investments are being made in spite of Congressman Latham’s efforts to defeat this bill and the funding for Iowa.”

In every single press release sent out by Congressman Latham announcing investments for Iowa included in the FY 2009 Appropriations, he not only hid the fact he voted against the legislation but he led people to believe he championed its passage.  One release read Congressman Latham “once again this past week demonstrated his commitment to community colleges,” another one discussed his role as a “long-time supporter” of new health care technologies.  In a third release, Congressman Latham even referred to his support of Iowa’s renewable energy industry as “steadfast” despite his vote against $1.4 million for a cutting edge wind energy project in Iowa.

After the jump I’ve posted the rest of the DCCC’s release, which contains further details about the earmarks Latham voted against but is now taking credit for.

The two-faced Republican position on earmarks is truly sickening.

Latham may feel secure in IA-04 for 2010, but in 2012 he will probably have to run in a redrawn third district, which may not be as friendly as his current turf. For that reason, I have wondered whether voting for some of President Barack Obama’s policies would be in Latham’s political interest, or whether he would be better off rejecting every significant White House proposal, like most House Republicans.

Apparently Latham plans to have it both ways and hope Iowans don’t notice.

Let me know if you see any news reports in the fourth district that tell the whole truth about Latham’s position on the omnibus spending bill. My hunch is that most journalists will pass along the information from Latham’s press releases without mentioning that he didn’t vote for the final package.

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I've had it with phony Republican outrage over earmarks

The right-wing noise machine is in high gear regarding the $7.7 billion earmarked for various projects in the fiscal year 2009 omnibus spending bill.

Where was the outrage when the Defense Department inspector general determined last year that the DOD can’t account for $7.8 billion spent in Iraq?

Why didn’t they cheer on President Barack Obama when he moved this week to reduce the billions wasted on no-bid and fraudulent government contracts?

Senator Tom Harkin is under fire for getting so many earmarks in the omnibus bill (though Chuck Grassley also helped secure a substantial number of earmarks). I don’t agree with everything Harkin said yesterday about the earmarks, but he was right on target here:

What needs more attention, according to Harkin, are no-bid contracts done by federal agencies.

“I had a hearing a year ago on the Department of Labor and there were — I forget the exact figure – but several hundred million dollars that had gone out under Secretary of Labor Elaine Chao on no-bid contracts,” he said.

When Harkin directed a federal oversight agency to look into the contracts, it was discovered that the contractors had not done what they were hired to do and, according to Harkin, “didn’t really do anything. …

“At least we are transparent,” he said. “You can see where it is going. But on a lot of these non-bid contracts that go through the executive branch, no one knows what they are doing. We have no transparency there.”

Hundreds of millions of dollars wasted in just one department of the executive branch–but conservatives won’t get upset about that. Nor will they express outrage upon learning that George Bush’s political appointees awarded pricey USDA consulting contracts that did nothing for the Department of Agriculture.

I’ve got another post coming later about the infamous Harkin earmark for studying pig odor. I want to know where the angry Republicans were last year when progressives and environmentalists were trying to persuade the Iowa legislature not to pass the deeply flawed odor-study bill (see here, here or here).

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More details on highway stimulus funds coming to Iowa

The White House released detailed information today on the $28 billion the stimulus bill directs toward highway construction. According to a press release (sorry, no link), the highway spending will “lead to 150,000 jobs saved or created by the end of 2010.” An estimated 95,000 jobs would come from the “direct impact of building new roads and fixing old ones,” while 55,000 jobs would come from “the economic activity generated when these new workers spend more than they would have otherwise.”

It is also worth noting that jobs in highway construction tend to pay better than average. The typical, or median hourly wage for all jobs in the economy was $15.10 in 2007 according to the most recent data from the Bureau of Labor Statistics. But for workers in the highway industry, the typical hourly wage was $18.31, a premium of over $3 per hour over the economy-wide median wage.

Looking more closely at different types of jobs within the industry helps to explain the difference. The median wage of blue collar, or production workers-folks who do jobs like welding and mixing-comes to about $16 per hour in highway construction compared to about $13.50 in the overall economy.

This page at Recovery.gov has a map you can use to see how much money in highway funds will go to individual states.

Iowa is slated to receive about $358 million, of which about $240 million can be used in any part of the state.

The remaining money is to be allocated as follows: $10.7 million for “mandatory transportation enhancements,” $20.8 million for use in urban areas, $73.2 million for use in suburban areas and $13.4 million for use in rural areas. (By the way, “‘enhancement’ is a legally defined term for projects such as sidewalk repairs, bicycle paths, and beautification projects.”)

Decisions within each state on where to spend the money need to be made quickly:

Parts of the allocation are set aside to make sure that urban, suburban, and rural areas alike all get a share. But since local leaders — mayors and governors — know their communities best, much of the money is left to states’ discretion. And if states don’t use it, they lose it. To make sure that funds go out quickly to give our economy the jolt it needs, states have 120 days to assign the funds to specific projects.

As a rule, federal highway funds tend to go toward new road construction, but it would be better to direct the stimulus funds primarily toward fixing the roads and bridges we have. Repairing crumbling roads and bridges improves safety, the quality of life and property values in existing neighborhoods. Building new roads stimulates sprawl without solving traffic congestion problems.

Sprawling development also increases “vehicle miles traveled” per capita and consequently greenhouse-gas emissions from cars and trucks.

Spending stimulus highway money on a “fix-it-first basis” would not only be wise, but also popular. As I mentioned in my previous post, a national survey by Hart Research Associates, released last week, found that “An overwhelming majority of Americans believe restoring existing roads and bridges and expanding transportation options should take precedence over building new roads […].”

Here’s hoping Iowa transportation officials will spend the stimulus money wisely.

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Open thread on Obama's 2010 budget and cabinet

President Barack Obama will present his first budget request to Congress today.

Early leaks indicate that he will propose some tax increases on the wealthiest Americans as well as some spending cuts to help pay for health care reform.

Ezra Klein, an excellent blogger on health care, is excited about what’s in the budget regarding health care reform. Although there is no detailed plan, Obama is submitting eight principles that should define health care reform efforts. Klein believes the principle of “universality” is likely to lead Congress to propose an individual mandate to hold health insurance.

I support mandated coverate only if there is a public plan that any American, regardless of age and income, can purchase as an alternative to private health insurance. The public plan would work like Medicare, in that individuals would be able to choose their own providers. Unfortunately, the Massachusetts model of mandatory private insurance without a meaningful public option has left a lot of problems unsolved.

It is not clear how much Obama will do to roll back George W. Bush’s tax cuts for the wealthiest Americans. I am with House Speaker Nancy Pelosi and others who would prefer to start rolling back tax cuts for the top 1 percent immediately. Last month the president seemed to be leaning toward letting those tax cuts expire over the next two years rather than fighting to repeal them this year.

According to Bloomberg,

President Barack Obama’s first budget request would provide as much as $750 billion in new aid to the financial industry […]

No wonder Obama went out of his way to make the case for helping banks during his address to Congress on Tuesday night. I firmly oppose shelling out another $750 billion toward this end, especially since the bailout money we’ve already spent hasn’t accomplished the stated goals of the program.

According to AFP, today’s budget proposal will include a plan

to raise money through a mandatory cap on greenhouse emissions.

Obama’s budget director Peter Orszag earlier estimated that a cap-and-trade scheme could generate 112 billion dollars by 2012, and up to 300 billion dollars a year by 2020.

Cap-and-trade may be more politically palatable, but a carbon tax may be a better approach for reducing greenhouse-gas emissions.

In cabinet-related news, have calculated that expanding the food-stamp program

Interior Secretary Ken Salazar wasn’t the top choice of environmentalists, but I was pleased to read this post:

Interior Secretary Ken Salazar canceled oil shale development leases on Federal lands in Colorado, Utah and Wyoming and announced that the Interior Department would first study the water, power and land-use issues surrounding the development oil shale.

Meanwhile, Homeland Security Secretary wants to review US Immigration and Customs Enforcement raids and told Congress that employers should be the focus of raids seeking to enforce immigration laws at workplaces. Obviously, swooping in and arresting a bunch of undocumented workers does nothing to address the root of the problem if employers are not forced to change their hiring practice.

Yesterday Obama named former Washington Governor Gary Locke as his latest choice to run the Commerce Department. Locke seems like a business-friendly Democrat, which is a big improvement over conservative Republican Judd Gregg, who thankfully withdrew his nomination for this post.

Republicans have been freaking out because of alleged plans by the Obama administration to “take control of the census.” Of course the GOP wants to continue the practices that have caused millions of white Americans to be double-counted in past censuses while millions more Americans in urban centers (largely non-whites) were not counted at all. Click here for more on the political battle over the census.

This thread is for any thoughts or comments about Obama’s cabinet or budget.

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The cost of war vs. the cost of earmarks

Not long ago I wrote about the earmarks secured by the Iowa delegation in 2007. I commented,

I also get a little tired of self-appointed taxpayer watchdogs expressing righteous indignation about this or that project that got a few hundred thousand dollars from the federal government. The Pig Book shows that the more than 11,000 earmarks in 2007 accounted for about $17.2 billion in federal spending.

Meanwhile, the U.S. spent several times that amount on the continuing war in Iraq in 2007, with little to show for it besides more American casualties.

Today bonddad wrote a great piece called We Can’t Afford The War Anymore. Click through to see the graphics, but here is the key paragraph:

According to the Congressional Budget office, this war has cost $752 billion dollars.  Let that figure sink in — $752 billion dollars.  And it’s getting more expensive.  According to the same report, the yearly increase in costs are increasing at a high rate.  In 2003 total appropriations for the war were $76 billion.  In 2007 they were $165 billion.  And the increase in cost is largely from the ongoing operations.  Operation and Maintenance costs were $46 billion in 2003 and $92 billion in 2007 — a doubling of costs within 5 years.  In addition, procurement expenses over the same period of time increased from $10 billion to $51 billion.  So, the longer this war progresses, the more expensive it gets.

The Iraq War cost nearly ten times as much in 2007 as all earmarks secured by all members of Congress combined.

Remember that next time some Republican rubber-stamp for George Bush’s Iraq policy complains about wasteful government spending.

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Report on earmarks is a treasure trove of information

A few days ago, Des Moines Register reporter Jane Norman wrote a story about earmarks Iowa’s members of Congress obtained for projects in 2007. The article was based on the 2008 “Congressional Pig Book,” published by Citizens against Government Waste.

The Register notes:

Citizens Against Government Waste is a nonprofit, nonpartisan group that takes aim at waste and fraud in government.

To qualify as pork, projects must meet one of seven criteria: a request by just one member of Congress; no specific authorization; no competitive award; no presidential request; a greatly increased budget amount compared with the previous year; serving only a local or special interest; or no congressional hearing.

Norman’s main point was that Iowa’s members of Congress obtained far more earmarks in 2007 than they had the previous year, totaling

$184.6 million in earmarks, or $61.79 in Iowa pork for every man, woman and child in the state.

It’s a major rebound for Iowa, which languished in 37th place in a similar study in 2006. That year, lawmakers obtained $72.2 million in earmarks, or $24.34 per Iowan.

(Note: Earlier this year, the group Taxpayers for Common Sense did its own analysis and came up with somewhat different numbers for 2007: the Iowa delegation was calculated to have obtained about “$152 million in earmarked money from Congress – or $51.10 for every man, woman and child in the state.”)

Norman noted that since Democrats took control of Congress in he 2006 elections, Senator Tom Harkin now chairs a “key appropriations subcommittee.” The “Congressional Pig Book” apparently singled him out for getting “$40 million for 44 projects in his own bill,” according to Norman.

I don’t know why the authors would single out Harkin, when their own book shows that Senator Chuck Grassley obtained more pork for Iowa in terms of total dollar value. Grassley collaborated with Harkin on a large number of earmarks for Iowa projects.

I also get a little tired of self-appointed taxpayer watchdogs expressing righteous indignation about this or that project that got a few hundred thousand dollars from the federal government. The Pig Book shows that the more than 11,000 earmarks in 2007 accounted for about $17.2 billion in federal spending.

Meanwhile, the U.S. spent several times that amount on the continuing war in Iraq in 2007, with little to show for it besides more American casualties.

That said, there’s no doubt that a lot of earmarks are wasteful appropriations for projects of limited benefit to the broader community. The Pig Book contains a ton of information about the earmarks each member of Congress has obtained. You can search all the Iowa earmarks from 2007 on this page of the Des Moines Register’s website, or search for earmarks by any member of Congress at the Citizens Against Government Waste site.

I used that search engine to find the total number of earmarks that each Iowa member of Congress obtained last year. The total dollar amount for each member comes from a table published in the Des Moines Register on April 3 (no link, because I could only find this table in the print version). Note that not every dollar earmarked by an Iowan ends up in Iowa, because some of these projects operate in many states.

Chuck Grassley (R), 155 earmarks, $321.4 million

Tom Harkin (D), 194 earmarks, $302.8 million

Tom Latham (R, IA-04), 63 earmarks, $67 million

Dave Loebsack (D, IA-02), 27 earmarks, $53.5 million

Leonard Boswell (D, IA-03), 27 earmarks, $33.1 million

Bruce Braley (D, IA-01), 26 earmarks, $27.5 million

Steve King (R, IA-05), 13 earmarks, $9.8 million

Why does Latham, a Republican, lead our House delegation in terms of earmarks? He is the longest-serving Iowan in the House (having been first elected in 1994) and serves on several subcommittees of the House Appropriations Committee. Also, his district includes Iowa State University, and a lot of federal funding goes to major research universities.

The data for the Democrats surprised me. How did the freshman Dave Loebsack secure so much more than Leonard Boswell? At first I thought it must be because Loebsack’s district includes the University of Iowa, but only two of Loebsack’s 27 earmarks were for the university.

Looking down the list more carefully, I realized that the dollar amount credited to Loebsack is inflated because he was one of 13 House members to earmark $24 million for the Department of Education’s National Writing Project. Most of that money will not go to Iowa.

Even if we remove that one from Loebsack’s list, he is still left with 26 earmarks (almost as many as Boswell), totaling $29.5 million (almost as much as Boswell). Keep in mind that Loebsack is only halfway through his first term, while Boswell was elected to Congress in 1996.

Braley is not far behind, despite being a freshman as well.

It’s no surprise that King is at the bottom of the list. Not only is he a Republican in a Democratic-controlled chamber, his idea of constituent service seems to revolve around making outrageous statements. Oh, and also suing to prevent non-native English speakers from receiving voter information in other languages. He has no major universities in his district either.

If you dig around in the database and find anything particularly noteworthy, please put a comment in this thread.

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