$32 billion to transform the nation's energy transmission, distribution, and production systems by allowing for a smarter and better grid and focusing investment in renewable technology.
$16 billion to repair public housing and make key energy efficiency retrofits.
$6 billion to weatherize modest-income homes.
$10 billion for science facilities, research, and instrumentation.
$6 billion to expand broadband internet access so businesses in rural and other underserved areas can link up to the global economy.
$30 billion for highway construction;
$31 billion to modernize federal and other public infrastructure with investments that lead to long term energy cost savings;
$19 billion for clean water, flood control, and environmental restoration investments;
$10 billion for transit and rail to reduce traffic congestion and gas consumption.
$41 billion to local school districts through Title I ($13 billion), IDEA ($13 billion), a new School Modernization and Repair Program ($14 billion), and the Education Technology program ($1 billion).
$79 billion in state fiscal relief to prevent cutbacks to key services, including
$39 billion to local school districts and public colleges and universities distributed through existing state and federal formulas, $15 billion to states as bonus grants as a reward for meeting key performance measures, and $25 billion to states for other high priority needs such as public safety and other critical services, which may include education.
$15.6 billion to increase the Pell grant by $500.
$6 billion for higher education modernization.
$20 billion for health information technology to prevent medical mistakes, provide better care to patients and introduce cost-saving efficiencies.
$4.1 billion to provide for preventative care and to evaluate the most effective healthcare treatments.
$43 billion for increased unemployment benefits and job training.
$39 billion to support those who lose their jobs by helping them to pay the cost of keeping their employer provided healthcare under COBRA and providing short-term options to be covered by Medicaid.
$20 billion to increase the food stamp benefit by over 13% in order to help defray rising food costs.
$87 billion for a temporary increase in the Medicaid matching rate.
$4 billion for state and local law enforcement funding.
Thursday, February 5, 2009
Wednesday, January 28, 2009
Stimulus Must be Zero Fail Mission
Everyone seems to have a opinion on the Federal Stimulus package, including yours truly.
You could be a:
Pro:
"Let's stimulate now to avoid even further financial disaster," or
"If we don't act we will be starring into the next great depression," or
"Start the money flowing and stop the bleeding," or
"We need spending on shovel ready jobs now."
Con:
"We are digging ourselves into a further financial hole" or
"We are borrowing from our future to pay for today" or
"Generations of future Americans will be paying for our financial decision of today" or
"An average American can't deficit spend themselves out of debt."
What we should all agree on is the severity of the problem. Now of course it does not pay to be an eternal pessimist doom and gloom guy but the American public should realize the gravity of the situation. Both a prolonged recession deepening into a depression and the proposed unchecked deficit spending has significant drawbacks. Each could have significant long term negative economic effects. The risk of doing nothing is a continuing of a financial "death spiral." The risk of doing something (deficit spending) is the negative financial effects that are shifted to future generations. Not to mention that deficit spending to stimulate the economy right now has a sort of artificial effect on the market place. Buoying certain sectors of the economy but not others. Surely, we are counting on the ripple effect but those have got to be some ripples. So it seems we have to make the best decision from the worst of options. The risks and stakes are high and there will be very little room for error. The newly elected President Barack Obama, Congress, and indeed all Americans and world citizens are on a mission for economic recovery. It's a zero-fail mission!
You could be a:
Pro:
"Let's stimulate now to avoid even further financial disaster," or
"If we don't act we will be starring into the next great depression," or
"Start the money flowing and stop the bleeding," or
"We need spending on shovel ready jobs now."
Con:
"We are digging ourselves into a further financial hole" or
"We are borrowing from our future to pay for today" or
"Generations of future Americans will be paying for our financial decision of today" or
"An average American can't deficit spend themselves out of debt."
What we should all agree on is the severity of the problem. Now of course it does not pay to be an eternal pessimist doom and gloom guy but the American public should realize the gravity of the situation. Both a prolonged recession deepening into a depression and the proposed unchecked deficit spending has significant drawbacks. Each could have significant long term negative economic effects. The risk of doing nothing is a continuing of a financial "death spiral." The risk of doing something (deficit spending) is the negative financial effects that are shifted to future generations. Not to mention that deficit spending to stimulate the economy right now has a sort of artificial effect on the market place. Buoying certain sectors of the economy but not others. Surely, we are counting on the ripple effect but those have got to be some ripples. So it seems we have to make the best decision from the worst of options. The risks and stakes are high and there will be very little room for error. The newly elected President Barack Obama, Congress, and indeed all Americans and world citizens are on a mission for economic recovery. It's a zero-fail mission!
Tuesday, January 20, 2009
Inaugural Speech Equals Ambitious (Policy) Ideals
Inaugural Speech Equals Ambitious (Policy) Ideals
Quote: On this day, we come to proclaim an end to the petty grievances and false promises, the
recriminations and worn out dogmas, that for far too long have strangled our politics.
Implication: Work with me new Congress!
Quote: We remain a young nation, but in the words of Scripture, the time has come to set aside childish
things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry
forward that precious gift, that noble idea, passed on from generation to generation: the Godgiven
promise that all are equal, all are free, and all deserve a chance to pursue their full measure
of happiness.
Implication: Equality for all in their chances for success.
Quote: “Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.”
Policy Implication: Federal Stimulus in the style of a Works Project Administration (WPA).
Quote: We will restore science to its rightful place, and wield technologies wonders to raise health care's quality and lower its cost.
Policy Implication: Legalizing government funding for stem cell research and single payer health care.
Quote: We will harness the sun and the winds and the soil to fuel our cars and run our factories.
Policy Implication: Promotion of green technologies.
Quote: Nor is the question before us whether the market is a force for good or ill. Its power to generate
wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful
eye, the market can spin out of control - and that a nation cannot prosper long when it favors
only the prosperous.
Policy Implication: More regulation of free markets.
Quote: The success of our economy has always depended not just on the size of our
Gross Domestic Product, but on the reach of our prosperity; on our ability to extend opportunity
to every willing heart - not out of charity, but because it is the surest route to our common good.
Policy Implication: Re-distribution of wealth. Tax cuts for 95% of Americans. Tax increases for those in the top 5% income earning brackets.
Quote: Recall that earlier generations faced down fascism and communism not just with missiles and
tanks, but with sturdy alliances and enduring convictions. They understood that our power alone
cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power
grows through its prudent use; our security emanates from the justness of our cause, the force of
our example, the tempering qualities of humility and restraint.
Policy Implication: A clear preference to diplomacy before any military action.
Quote: We will begin to responsibly leave Iraq to its people, and forge a hard-earned peace in
Afghanistan.
Policy Implication: War ends in Iraq. Transfer of power to Iraqi’s. Increase pressure in Afghanistan to finish the conflict effectively.
Quote: To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect.
To those leaders around the globe who seek to sow conflict, or blame their society's ills on the
West - know that your people will judge you on what you can build, not what you destroy. To
those who cling to power through corruption and deceit and the silencing of dissent, know that
you are on the wrong side of history; but that we will extend a hand if you are willing to
unclench your fist.
Policy Implication: Ending religious fanaticism, terror, and destruction the U.S. attempt to reach out and foster new relationships throughout the world.
Quote: To the people of poor nations, we pledge to work alongside you to make your farms flourish and
let clean waters flow; to nourish starved bodies and feed hungry minds.
Policy Implication: Increasing in foreign aide, likely through the United Nations.
Quote: For as much as government can do and must do, it is ultimately the faith and determination of the
American people upon which this nation relies. It is the kindness to take in a stranger when the
levees break, the selflessness of workers who would rather cut their hours than see a friend lose
their job which sees us through our darkest hours. It is the firefighter's courage to storm a
stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides
our fate.
Policy Implication: Responsibility to family and community must re-emerge as societal virtues.
Ending Quote:
"Let it be told to the future world...that in the depth of winter, when nothing but hope and virtue
could survive...that the city and the country, alarmed at one common danger, came forth to meet
[it]."
America. In the face of our common dangers, in this winter of our hardship, let us remember
these timeless words. With hope and virtue, let us brave once more the icy currents, and endure
what storms may come. Let it be said by our children's children that when we were tested we
refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on
the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it
safely to future generations.
Quote: On this day, we come to proclaim an end to the petty grievances and false promises, the
recriminations and worn out dogmas, that for far too long have strangled our politics.
Implication: Work with me new Congress!
Quote: We remain a young nation, but in the words of Scripture, the time has come to set aside childish
things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry
forward that precious gift, that noble idea, passed on from generation to generation: the Godgiven
promise that all are equal, all are free, and all deserve a chance to pursue their full measure
of happiness.
Implication: Equality for all in their chances for success.
Quote: “Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.”
Policy Implication: Federal Stimulus in the style of a Works Project Administration (WPA).
Quote: We will restore science to its rightful place, and wield technologies wonders to raise health care's quality and lower its cost.
Policy Implication: Legalizing government funding for stem cell research and single payer health care.
Quote: We will harness the sun and the winds and the soil to fuel our cars and run our factories.
Policy Implication: Promotion of green technologies.
Quote: Nor is the question before us whether the market is a force for good or ill. Its power to generate
wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful
eye, the market can spin out of control - and that a nation cannot prosper long when it favors
only the prosperous.
Policy Implication: More regulation of free markets.
Quote: The success of our economy has always depended not just on the size of our
Gross Domestic Product, but on the reach of our prosperity; on our ability to extend opportunity
to every willing heart - not out of charity, but because it is the surest route to our common good.
Policy Implication: Re-distribution of wealth. Tax cuts for 95% of Americans. Tax increases for those in the top 5% income earning brackets.
Quote: Recall that earlier generations faced down fascism and communism not just with missiles and
tanks, but with sturdy alliances and enduring convictions. They understood that our power alone
cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power
grows through its prudent use; our security emanates from the justness of our cause, the force of
our example, the tempering qualities of humility and restraint.
Policy Implication: A clear preference to diplomacy before any military action.
Quote: We will begin to responsibly leave Iraq to its people, and forge a hard-earned peace in
Afghanistan.
Policy Implication: War ends in Iraq. Transfer of power to Iraqi’s. Increase pressure in Afghanistan to finish the conflict effectively.
Quote: To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect.
To those leaders around the globe who seek to sow conflict, or blame their society's ills on the
West - know that your people will judge you on what you can build, not what you destroy. To
those who cling to power through corruption and deceit and the silencing of dissent, know that
you are on the wrong side of history; but that we will extend a hand if you are willing to
unclench your fist.
Policy Implication: Ending religious fanaticism, terror, and destruction the U.S. attempt to reach out and foster new relationships throughout the world.
Quote: To the people of poor nations, we pledge to work alongside you to make your farms flourish and
let clean waters flow; to nourish starved bodies and feed hungry minds.
Policy Implication: Increasing in foreign aide, likely through the United Nations.
Quote: For as much as government can do and must do, it is ultimately the faith and determination of the
American people upon which this nation relies. It is the kindness to take in a stranger when the
levees break, the selflessness of workers who would rather cut their hours than see a friend lose
their job which sees us through our darkest hours. It is the firefighter's courage to storm a
stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides
our fate.
Policy Implication: Responsibility to family and community must re-emerge as societal virtues.
Ending Quote:
"Let it be told to the future world...that in the depth of winter, when nothing but hope and virtue
could survive...that the city and the country, alarmed at one common danger, came forth to meet
[it]."
America. In the face of our common dangers, in this winter of our hardship, let us remember
these timeless words. With hope and virtue, let us brave once more the icy currents, and endure
what storms may come. Let it be said by our children's children that when we were tested we
refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on
the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it
safely to future generations.
Wednesday, January 7, 2009
Rolland Burris Should be Seated
Trust me I like clean government as much or more than anyone. Obviously, I don't condone Governor Blagojevich's actions. They may have him 'dead to rights' on the charge of corruption in attempting to sell Barack Obama's vacant Senate seat to the highest bidder but he is 'innocent until proven guilty.' He is still the current Governor of Illinois, at least for now, and therefore he still has the power and the right to appoint a successor.
Rolland Burris should be seated as any other duly appointed Senator. The seal and the signature on his certificate should be applied and he should occupy his seat immediately.
Rolland Burris should be seated as any other duly appointed Senator. The seal and the signature on his certificate should be applied and he should occupy his seat immediately.
Thursday, December 18, 2008
ZBB is Not for Me!
While every good politician loves the idea of 'zero based budgeting, (ZBB)' it has incredible public relations potential, and it sounds nice and saleable to the general public. It mostly and imaginary and wholly unattainable concept to expect State Government to actually be a able to accomplish. Here are some simplistic talking points:
- Minnesota's budget is too large and too complicated for politicians to use ZBB. Minnesota's general fund budget is $34 Billion and $58 Billion all funds. BTW that's roughly $11,500 per capita.
- ZBB is impractical for large bureaucratic institutions. There are way to many programs, expenses, and justifying expense by expense would be more excruciating than watching a Coleman v. Franken recount...I mean watching paint dry...I mean you know what I mean!
-ZBB is against human nature. Everybody wants to know what a particular agency was appropriated last year. Simply D's want to give them more and R's. want to give them no more. Moreover the risk of ZBB is that if you really don't know what they got in the past you could give too much thereby exacerbating the budget conundrum!
-ZBB would take too long. I mean let's be honest here folks. It already takes R's and D's 6 months or more with many special sessions and one government shutdown to pass a budget without the added time that ZBB would require. True ZBB could take MN politicians years to complete!
-ZBB is just a political ploy to convince the public of politicians goodwill and good intentions before they find a nice easy way to let Minnesotan's down gently to the simple fact that "cuts alone won't fix this budget crisis."
I do say it's very much against the traditional Democratic model to have DFLers committing to ZBB so early. On the other side of the coin ZBB comes naturally to Republicans who would prefer this approach even in boom times. To me that shows an incredible amount of discipline and strategy on the part of the DFL, one that cannot last.
I figure that long about the February Forecast, right at the point where Mr. Stinson annouces that the economy is X million dollars worse, many DFL leaders will confirm via press conference, press release, or their own media that the worsening economic conditions highlight the need for both cuts and increased revenues (taxes). Some undisciplined DFLers might call for tax increases much earlier but for now they are singing with one voice.
R's will continue to sing with one voice as well:
- "Minnesota Government needs to live within its means."
- "The State budget GF budget has more than doubled in ten years."
- "Raising taxes is the last thing to do in a failing economy."
- "Minnesota tax code is not conducive to locating your business here."
- "Minnesota is the 12th highest taxed state in the nation and climbing."
Who's right? Well that depends on your prospective. Minnesota's Legislative and Government Affairs world is always a very large gray area. In the end, who is right is answered by who 'wins the day' with many days to come.
- Minnesota's budget is too large and too complicated for politicians to use ZBB. Minnesota's general fund budget is $34 Billion and $58 Billion all funds. BTW that's roughly $11,500 per capita.
- ZBB is impractical for large bureaucratic institutions. There are way to many programs, expenses, and justifying expense by expense would be more excruciating than watching a Coleman v. Franken recount...I mean watching paint dry...I mean you know what I mean!
-ZBB is against human nature. Everybody wants to know what a particular agency was appropriated last year. Simply D's want to give them more and R's. want to give them no more. Moreover the risk of ZBB is that if you really don't know what they got in the past you could give too much thereby exacerbating the budget conundrum!
-ZBB would take too long. I mean let's be honest here folks. It already takes R's and D's 6 months or more with many special sessions and one government shutdown to pass a budget without the added time that ZBB would require. True ZBB could take MN politicians years to complete!
-ZBB is just a political ploy to convince the public of politicians goodwill and good intentions before they find a nice easy way to let Minnesotan's down gently to the simple fact that "cuts alone won't fix this budget crisis."
I do say it's very much against the traditional Democratic model to have DFLers committing to ZBB so early. On the other side of the coin ZBB comes naturally to Republicans who would prefer this approach even in boom times. To me that shows an incredible amount of discipline and strategy on the part of the DFL, one that cannot last.
I figure that long about the February Forecast, right at the point where Mr. Stinson annouces that the economy is X million dollars worse, many DFL leaders will confirm via press conference, press release, or their own media that the worsening economic conditions highlight the need for both cuts and increased revenues (taxes). Some undisciplined DFLers might call for tax increases much earlier but for now they are singing with one voice.
R's will continue to sing with one voice as well:
- "Minnesota Government needs to live within its means."
- "The State budget GF budget has more than doubled in ten years."
- "Raising taxes is the last thing to do in a failing economy."
- "Minnesota tax code is not conducive to locating your business here."
- "Minnesota is the 12th highest taxed state in the nation and climbing."
Who's right? Well that depends on your prospective. Minnesota's Legislative and Government Affairs world is always a very large gray area. In the end, who is right is answered by who 'wins the day' with many days to come.
Tuesday, December 2, 2008
Expected Thursday: Minnesota State Budget Forecast
The Minnesota Management and Budget Office will release the perennial November Forecast for the first time ever since its the creation, this week Thursday. In June 2008, the Minnesota Department of Finance was combined with the Minnesota Department of Employee Relations (DOER); in a cost saving measure. The new Department is served by one Commissioner, Tom Hanson, a Governor Tim Pawlenty appointee, and is under one central mission:
“Our mission is to increase state government’s capacity to manage and utilize financial, human, information and analytical resources in order to provide exceptional service and value for Minnesota’s citizens.”
Regardless, of the name of the Department the economic news is likely to show a widening projected deficit. Current conjecture puts the state deficit for fiscal years 2010-2011, which begins July 1, 2009, somewhere between $1-$5 billion dollars short.
The 2008 February Forecast called for projected spending to outstrip projected revenues by a deficit of $1.086 billion and adjusting for inflation, which the current formula doesn’t do, it actually adds another $1.04 billion to the deficit. The previous forecast cited declines in individual income tax revenues, corporate tax revenues, and contracting sales tax revenue. These trends undoubtedly will re-surface and continue exacerbate Minnesota’s budget outlook. The big question is how much?
After the new numbers emerge the Governor is required to deliver a budget to the legislature before the end of January in each odd numbered year. It is important to remember the Governor’s budget is only a recommendation but practically speaking it represents the typical starting point from which the legislature starts the budget process. Also important to note that Minnesota law does not explicitly require a balanced budget rather, it derives from the limits on borrowing contained in the constitution. The state may issue debt only for specified purposes. Borrowing money to pay for a deficit at the end of the biennium is not one of these purposes. Thus the budget must be in balance at the end of the biennium Minn. Const. art. XI, sec 5.
A growing list of legislative priorities such has Education, Energy, Environment, Health Care, Housing, Human Services, Transportation, and many others combined with decreasing financial means may prompt a very divisive and politically charged legislative session. Suffice to say the newly increased Democratic majorities in both bodies of legislature will certainly have their own agenda; juxtapose that with Republican Governor Tim Pawlenty’s prerogatives and they certainly will have their (budget) work cut out for them this year.
“Our mission is to increase state government’s capacity to manage and utilize financial, human, information and analytical resources in order to provide exceptional service and value for Minnesota’s citizens.”
Regardless, of the name of the Department the economic news is likely to show a widening projected deficit. Current conjecture puts the state deficit for fiscal years 2010-2011, which begins July 1, 2009, somewhere between $1-$5 billion dollars short.
The 2008 February Forecast called for projected spending to outstrip projected revenues by a deficit of $1.086 billion and adjusting for inflation, which the current formula doesn’t do, it actually adds another $1.04 billion to the deficit. The previous forecast cited declines in individual income tax revenues, corporate tax revenues, and contracting sales tax revenue. These trends undoubtedly will re-surface and continue exacerbate Minnesota’s budget outlook. The big question is how much?
After the new numbers emerge the Governor is required to deliver a budget to the legislature before the end of January in each odd numbered year. It is important to remember the Governor’s budget is only a recommendation but practically speaking it represents the typical starting point from which the legislature starts the budget process. Also important to note that Minnesota law does not explicitly require a balanced budget rather, it derives from the limits on borrowing contained in the constitution. The state may issue debt only for specified purposes. Borrowing money to pay for a deficit at the end of the biennium is not one of these purposes. Thus the budget must be in balance at the end of the biennium Minn. Const. art. XI, sec 5.
A growing list of legislative priorities such has Education, Energy, Environment, Health Care, Housing, Human Services, Transportation, and many others combined with decreasing financial means may prompt a very divisive and politically charged legislative session. Suffice to say the newly increased Democratic majorities in both bodies of legislature will certainly have their own agenda; juxtapose that with Republican Governor Tim Pawlenty’s prerogatives and they certainly will have their (budget) work cut out for them this year.
Monday, December 1, 2008
Don't tax small business out of picture
To all those who think raising taxes on individuals making over $250,000 a year is a good idea. Stop for a minute. Put down your pre-conceived ideas and read this news article. If you are truly honest with yourself you will at least see both sides of this issue.
Don't tax small business out of picture
Tom Salonek, Star Tribune, November 30, 2008
http://www.startribune.com/templates/Print_This_Story?sid=35234499
Don't tax small business out of picture
Tom Salonek, Star Tribune, November 30, 2008
http://www.startribune.com/templates/Print_This_Story?sid=35234499
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