Economic Stimulus: Trimming the Fat
As more eyes pour over the American Recovery and Reinvestment Act (ARARA), some of the more spurious provisions come to light. In response, the Republican members of Congress have put forward a list of expenses that they regard as “waste”. After reviewing the list, I have to agree that most of their complaints are valid, insofar as they do not seem to have any direct bearing on economic stimulus. Now it could be argued that any new programs or projects will require new staff, which means new jobs, but some of these provisions clearly could be saved for future consideration. These questionable provisions, I think, can be separated into a few categories:
- Category 1: Ridiculous and extraneous
- Category 2: Useful but not directly related to stimulus
- Category 3: Useful and directly related to stimulus
For the items in Category 1, I concede to the Republicans that these provisions are unnecessary, have absolutely nothing to do with stimulus, and should be stricken from the bill. For those items in Category 2, I simply do not understand why they are being stuffed into a single bill, rather than being proposed at a future date. They do not relate directly to economic stimulus, and should be saved for a future bill. For the items in Category 3, I disagree with the Republicans, and think that these provisions should remain in the bill, as they are conducive to economic stimulus.
Category 1
- $246 million tax break for Hollywood movie producers to buy motion picture film
- $650 million for the digital television converter box coupon program
- $88 million for the Coast Guard to design a new polar icebreaker
- $448 million for constructing the Department of Homeland Security headquarters
- $248 million for furniture at the new Homeland Security headquarters
- $150 million for Smithsonian museum facilities
- $75 million for salaries of employees at the FBI
- $88 million for renovating the headquarters of the Public Health Service
- $412 million for CDC buildings and property
- $500 million for building and repairing National Institutes of Health facilities in Bethesda, Maryland
- $75 million to construct a “security training” facility for State Department Security officers when they can be trained at existing facilities of other agencies
Particularly absurd are the provisions for repairing government headquarters and buying furniture. I am certain that none of these facilities are near being condemned and that they can manage until our economy has recovered. If you are going to attach additional spending to the stimulus, then the money would be better spent renovating schools, some of which truly are on the verge of being condemned. Also ridiculous are any funds for the motion picture industry, which is the very representation of excess, or funds for the digital conversion program. If necessary, put off the digital conversion for a few years. Either way, no additional money is needed to ensure that people can watch television. That’s completely asinine.
Category 2
- $600 million to buy hybrid vehicles for federal employees.
- $400 million for the Centers for Disease Control to screen and prevent STDs
- $75 million for “smoking cessation activities”
- $200 million for public computer centers at community colleges
- $6 billion to turn federal buildings into “green” buildings
- $650 million for wildland fire management on forest service lands
- $100 million for reducing the hazard of lead-based paint
- $110 million to the Farm Service Agency to upgrade computer systems
- $200 million in funding for the lease of alternative energy vehicles for use on military installations
Any initiatives towards making our country “greener”, that is, more environmentally sensitive, are important. However, where they have no direct bearing on economic stimulus, they should be saved for a future bill. All of these initiatives could be re-introduced as the “Go Green America Act” or something of that sort. The same with the rest of the provisions in this category – they need to be saved for later rather than slipped in under the false pretext of “economic stimulus”.
Category 3
- $850 million for Amtrak
- $1.2 billion for “youth activities”, including summer job programs
- $500 million for flood reduction projects on the Mississippi River
- $10 million to inspect canals in urban areas
- $25 million for tribal alcohol and substance abuse reduction
- $160 million for “paid volunteers” at the Corporation for National and Community Service (CNCS).
- $1 billion for the 2010 Census, which has a projected cost overrun of $3 billion
- $125 million for the Washington sewer system
- $1.4 billion for rural waste disposal programs
Some of these items, it could be argued, belong in Category 2, but I have reasons for thinking that they belong in the stimulus package. Any infrastructure project will create new jobs, and given the recent D-rating given to our nation’s infrastructure by the American Society of Civil Engineers, this is something that cannot wait. We do not want a repeat of what happened with the 35-W bridge in Minnesota. It’s long been known that Amtrak is on the verge of collapsing, and so I think that funding them is necessary, but only with rigorous oversight, lest we see a repeat of the bank bailout debacle. Part of that oversight must include a legal obligation for Amtrak to create x amount of new jobs and/or to stave off any planned lay-offs.
The 1.2 billion for youth summer job programs is clearly connected to economic stimulus. More jobs equals economic growth, especially for young people, who can’t spend their money fast enough. The CNCS – which encompasses AmeriCorps and Senior Corps – not only provides jobs, but has consistently made a difference in local communities throughout the country. As for the money to reduce the epidemic alcohol abuse in Native American communities, if these programs actually worked, and changed alcoholics into viable members of the workforce, then that is directly related to economic stimulus.
What’s interesting to note, is that in spite of some of the more ridiculous provisions, all of these items only account for a little more than $17 billion of the proposed $819 billion package. I know, only $17 billion, right? That it’s such a small portion really highlights how massive the overall package will be. This raises the question of how much more waste will be found in the bill in the coming days, and whether or not they will be trimmed before it passes the Senate. The Republicans have a strong argument here, at least to the extent that it demands that this bill be examined with a microscope before it becomes law.
In my next post, I will take a look at the Economic Recovery and Middle-Class Relief Act, a proposed bill expected to be introduced by Representative Tom Price (R-GA), as an alternative to the ARARA, which has its fair share of merits, but also quite a few questionable items.
Tags: Agendas, American, Earmarks, Economy, Pork Barrel, Recovery, Reinvestment, Special Projects, Stimulus, Waste