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Stimulus Updates - Highlights and more...
Perdue is among a handful of Republican governors in Washington for their annual conference who have publicly said strings attached to some of the funds make the money "unattractive." Perdue says his staff is analyzing each component of the stimulus plan to decide what's in the best long term interest of Georgia. At least $6 billion has been earmarked by Congress for Georgia. Perdue is not alone in his opposition to some parts of the president's plan. Mississippi Governor Haley Barbour said he is considering turning down millions of dollars in unemployment aid because it would force his state to raise taxes when the stimulus money runs out by putting in place a tax on employers. Louisiana Governor Bobby Jindal and South Carolina's Mark Sanford share Barbour's concern about strings attached to stimulus dollars as well as the plan's overall approach to dealing with the economic crisis. Some Republican governors played down a split over the stimulus plan. Florida's Charlie Crist was among those who said they are behind the plan even if they have qualms about it. Georgia Mayors Meet with President Obama ATLANTA - Two Georgia mayors traveled to Washington to meet with President Obama and learn more about the stimulus package. "We learned about the conditions for the money and the President himself as well as the Vice-president as well as the cabinet members all kind of sounded the alarm that this was going to be very closely scrutinized by the naysayers and the dissenters and that there was absolutely no room in this for waste or fraud or mismanagement." Reichert says the president also discussed the importance of rebuilding in urban parts of the country.
-------------------------------------------------------------- Stimulus News... Local - State Govs head to Washington to stake their claim in the stimulus money... Some governors may shun stimulus funds On orders from his boss, Idaho chief legal counsel David Hensley spent three days poring through the fine print of the gargantuan stimulus legislation, returning bleary-eyed to Boise with what looked like a college freshman's dog-eared copy of Tolstoy's "War and Peace." His boss, the cowboy hat-wearing Gov. Butch Otter, is one of at least half a dozen Republican state executives who have said they may reject some, even all, of the money their states would get under a stimulus package expected to enlarge the government's slice of gross domestic product and slow, if not reverse, the economic downturn. Critics such as Rep. Jim Clyburn of South Carolina say the Republican resistance is a political, even racist, ploy to withhold critical help from the nation's poorest and most hard-hit communities. But with Americans - even Republicans - split on support for the bill, there could also be fiscal wisdom in cautiously approaching a spending package that could weaken states' rights, put state taxpayers on the hook to fill future funding gaps, and stymie local innovation to turn the economy around. "We're concerned that we're just going to be doling out million dollar hugs," says Jon Hanian, Governor Otter's press secretary. "It really comes down to the proper role of government, and that is a soul-searching question we're engaged in here in Idaho right now." Alaska Gov. Sarah Palin, Mississippi Gov. Haley Barbour, Louisiana Gov. Bobby Jindal, South Carolina Gov. Mark Sanford, and Texas Gov. Rick Perry have joined Otter's revolt. Indiana Gov. Mitch Daniels has also raised concerns about future state obligations especially for education, welfare, and healthcare spending, which make up the bulk of the $787 billion package. "Some school systems will see a gusher of money the like of which no one has seen before," said Governor Daniels at a press conference last week. "When federal funds stop coming, there will not be any way to replace all of that." The rift in the GOP became evident on "Meet the Press" Sunday as Governor Jindal faced off with Gov. Charlie Crist of Florida, who welcomed the package faster than he could say "Sunshine State." "We are at a time of need and to do nothing is not acceptable," said Governor Crist. "I've looked into the eyes of people [in unemployment lines] and I understand the challenge." But Jindal, who called the stimulus debate "a great opportunity" to offer conservative-based solutions, countered, "We should be unafraid to stand up on principles and point out alternative solutions." The topic is also likely to overshadow the Republican Governors Association conference that begins Monday in Washington. Facing a massive budget crisis, California Gov. Arnold Schwarzenegger is one of the nation's 22 GOP governors who has said he is quite happy to take the money. In a study released late last week, the Rockefeller Institute found that states are wise to take the money, but should plan judiciously. By the time the money runs out in 2011-12, conservative estimates show states could face budget gaps equaling 6 percent of general revenues, or about $100 billion nationwide. Spending cuts or tax hikes would be inevitable, the report concluded. "This stimulus gives states some time, but it doesn't make the problem go away," says Donald Boyd, who wrote the report. "There is a risk of losing discipline, [but] in the end, I'd be very surprised to see a state reject the money. It's fine to take a stand, but retreat may look pretty good." Rebel Republicans say that the focus of the stimulus package on expanding the government payroll may hobble the ability of states to target local and regional problems that have contributed to the downturn. Mississippi's Governor Barbour objects to a provision that extends unemployment benefits to people who have turned down full-time employment. Similarly, South Carolina's Governor Sanford thinks extending unemployment benefits to part-time workers will bankrupt the state's unemployment trust. In Idaho, Governor Otter would rather have seen money go toward the federal government paying more so-called "payment in lieu of taxes" to local communities for the huge chunks of federally owned lands in the West. "This shows that states like Idaho that have creative ideas ... are being stymied by an uncreative, old-ideas bill," says Scott Ward, president of the Republican State Leadership Committee in Washington. The rebel governors may be playing to simmering taxpayer discontent over the size and obligations of the package, evident in anti-tax protests across the country, including one that greeted President Obama recently in Denver. Politically, the GOP has found some success in painting the package as an overblown spending bill. Support for the package has waned in recent days, polls show. "These are people jockeying for the next round of president, vice president and cabinet for Republican administrations.... [T]hey've understood the symbolic importance of saying no to what appears to be expanding federal government and deficits and social programs that their constituents, frankly, wouldn't necessarily care for," says Pearson Cross, a political science professor at the University of Louisiana in Lafayette. At the same time, Professor Cross says, "It's a bit disingenuous to say, ‘Well, we may not take it,' when in fact we need it desperately." Expecting just such a revolt from Southern governors who may resist expanding welfare for minorities, South Carolina Congressman Jim Clyburn fought for an amendment that would give state legislatures, not governors, the final say on receipts. "The only strings attached to this money is if you have a community that for the last 30 years has had persistent poverty rates ... then you must direct 10 percent of this money to those communities," says Rep. Clyburn. "If you don't want this pot of money because that string is attached, what am I to conclude from that?" The underlying cause for the resistance has to do with state sovereignty, says Byron Schlomach at the conservative Goldwater Institute in Phoenix. Will a short-term federal government intervention weaken states' rights by making them more financially beholden to Washington? That's an issue that is particularly relevant as the revolt is largely coming from states such as Louisiana, Mississippi, and Alaska, whose residents currently receive some of the highest shares of federal subsidies in the country. These states, argues Mr. Schlomach, know the price that comes with federal largess. "We're giving up our sovereignty and putting the federal government even more in the driver's seat," he says. Schwarzenegger defends tax hikes, applauds stimulus WASHINGTON—Gov. Arnold Schwarzenegger says it might take years for California to recover from its economic problems. But Schwarzenegger warns that it could take years for things to return to normal. After months of gridlock in Sacramento, the governor and lawmakers agreed last week to increase taxes and cut spending to help close a projected $42 billion budget gap. Key parts of the plan will go before voters in May. GEORGIA -
Bi-Partisanship - Despite a rough start on the job for President Barack Obama and contentious bickering over government rescue efforts, one prominent Washington insider thinks the country still can work together to bolster the economy. "I don't think bipartisanship is dead," said David Gergen, senior political analyst for CNN. "I'm still hopeful there will be times when the two parties can come together." Gergen, who has lived around the nation's capital for nearly four decades and served in the administrations of four presidents, said it's important to get some cooperation going to contain the recession. "The bottom line is I've never seen a crisis like this - where no one is sure of the right answer," he said during a talk in Tempe on Thursday evening. Gergen indicated the nation's low morale on the economy might be partly a reaction to the heightened anticipation after Obama's election. "The administration built up expectations too much," he said. Still, Gergen said he supports White House efforts to stabilize the economy through the stimulus bill, along with foreclosure relief and aid to banks. If anything, he thinks stimulus spending might be too little, especially on infrastructure. "We're looking at $3 trillion in lost economic activity over the next three years," he said of the recession's impact. Gergen said he hopes a bipartisan spirit can emerge in Washington to tackle the economic challenges. "Can Obama inspire enough trust and channel that through to consumer confidence?" he asked. "I'm hopeful . . . but holding my breath." Gergen also warned that budget-deficit numbers to be released soon will be huge. He expects the White House to be more transparent than the Bush administration was in terms of not pushing some costs off budget. "I think we'll have a more realistic picture than in the past, but therefore we'll see some eye-popping budget deficits," he said. Gergen spoke at an event hosted by Scottsdale's First Western Trust Bank of Arizona, which opened in November, just as the recession and credit crunch were intensifying. Even so, bank President and CEO Dino Camunez said the timing was good. "Opening when we did gave us a major competitive advantage," he said. "Clients are just so fed up with the big banks." He said the bank isn't hobbled with bad loans from the real-estate bust and has money to lend.
Guards to Guard the Guards Transparency is the name of the game, says former community organizer President Barack Obama. Don't let the broken promise of the White House to post the "Stimulus Bill" for 48 hours before the vote cloud your thinking. According to Mike Allen at Politico, President Obama will announce while meeting with the nation’s governors Monday that he is naming one of the government's most aggressive, experienced government investigators to oversee spending of the stimulus package, administration officials said. The new board gets a new name: The White House's Recovery Act Transparency and Accountability Board, and will be headed by Earl E. Devaney. Devaney became the Interior Department’s inspector general in August 1999. From his official bio: Mr. Devaney began his law enforcement career in 1968 as a police officer in his native state of Massachusetts. After graduating from Franklin and Marshall College in 1970 with a degree in Government, Mr. Devaney became a Special Agent with the United States Secret Service. At the time of his retirement from the Secret Service in 1991, Mr. Devaney was serving as the Special Agent-in-Charge of the Fraud Division and had become an internationally recognized white-collar crime expert regularly sought by major media including USA Today, The Wall Street Journal and CNN. The Obama team gives additional assurance of spending accountability to taxpayers by announcing that Vice President Biden will also be on board to provide oversight. An administration official said that the President has asked the vice president, Joe Biden, to oversee the Administration’s implementation of the Recovery Act’s provisions -- meeting regularly with key members of the Cabinet, Governors and Mayors to make sure their efforts are speedy and effective. He will make regular reports to the President that will be posted on recovery.gov. Transparency reigns, according to White House reports on the formation of this new watchdog group. The White House will account for the spending of the stimulus monies. We have heard these promises before. The Obama Transition Team reassured citizens on its efforts at transparency when it performed an "internal review" in assessing possible ethics violations related to the transition team’s contacts with former Illinois Governor Blagojevich. The public was assured, after careful internal oversight, that all was well. Now, the Obama White House will appoint a new internal "stimulus czar" to the Obama White House, to oversee the Obama White House. All is well. All is well. Keep repeating: All is well.
ATLANTA - Former US President Bill Clinton has admitted fault for lack of regulation on derivatives during his eight years in office, a problem some economists believe helped contribute to the nation's economic woes. "Alan Greenspan (former Federal Reserve Chairman) and others thought we shouldn't regulate, didn't need to regulate derivatives, 'cause they would only be bought by very large, very wealthy, very sophisticated institutional buyers," said Clinton, although he largely defended his own economic record, "The problem is (that) if enough of 'em are bought, they become so much a part of the economy that if they crater, they still affect everybody else, anyway," he said. "So, I think I should have done more on that." PTI <--> |
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