02.03.09
A few items on state spending and the federal stimulus
Lt. Gov. Dewhurst and Speaker Straus sent a letter to state agencies yesterday asking them to make voluntary across the board cuts, so they, Dewhurst and Straus, don’t have to make involuntary across the board cuts. Elise Hu has the letter.
While Washington is debating an economic stimulus package, it would be irresponsible to factor it into our budget process at this time as there are many details yet to be known, including the amount Texas may receive and what mandates may be attached. However, because most of the funding appears to be one-time in nature, we must avoid spending one-time money on on-going projects which will result in unsustainable future costs to the state budget.
To that end, we will be looking for recommendations to reduce the Fiscal Year 2009 General Revenue and General Revenue-Dedicated appropriations by approximately 2.5%. We do not anticipate an across the board cut if we have your guidance as to how to specifically achieve that goal while still preserving the funding for essential programs, including but not limited to the Foundation School Program, acute care Medicaid, CHIP and debt service for previously issued debt.
About that federal stimulus. With the economy in free-fall it’s politics as usual on the boob tube. From TPM, It’s the Stupid, Stupid:
But there also shouldn’t be much question why Republicans are having such a field day spreading disinformation and simple nonsense about this bill. We’ve heard virtually nothing over the last couple weeks about the big issue, which is that the economy is in severe free-fall because of a once-in-a-century financial crisis. And because of that, the federal government needs to step in with big short term spending to create jobs to see us through the crisis. Those jobs are needed in the short-term to prevent unemployment from getting out of hand and in the longer term to reshape the economy so that we’re not dependent on recurrent bubbles to keep the economy afloat. This is an emergency jobs bill. And it costs a lot of money because we’re in a deep crisis. But this basic point has disappeared almost entirely from the public debate.
Think Progress has admirably demonstrated that the cable networks continue to tip the scales in favor of Republicans by booking like twice or even three times as many Republicans as Democrats to discuss the Stimulus Bill. But that only tells us what we already know, which is that the Washington press establishment is still wired for Republicans. But there is a Democratic president. And he does have the bully pulpit. And he needs to make this argument, which he’s not. Absent that, we can’t be surprised and the Democrats are not in much of a position to complain if the vacuum is filled by a bunch of Republicans making statements that are either demonstrable nonsense or just lies.
Look at what people are talking about and you wouldn’t get the sense that we’re actually in the midst of a major economic crisis that will likely send unemployment well into double digits if nothing is done quickly — and a crisis that is in large measure the result of the economic policies that the Boehners and Cantors and McConnells are telling us, all the evidence to the contrary, will now save us. Everyone who’s taking this situation seriously realizes that spending is the pivotal part of what the government needs to do to stabilize the economy in the face of this crisis. The multipliers for spending versus tax cuts simply leaves no question about that. Ask McCain economic advisor Mark Zandi. The solid critiques from the right aren’t about whether spending is needed but which types are most efficient.
Without a clear argument about why this whole exercise is necessary, it’s inevitable that the debate will be ground down to the inconsequential minutiae which is the aim of its opponents. Big things need a president to argue for them.
More here as well, Tear down these myths about the economic stimulus plan.
The age of Obama doesn’t seem to have improved one thing: Public discourse, and the flow of information. Bush and Cheney may be gone from the scene, but the same congressional and media buffoons are still in Washington, still misleading and misinforming the American people.
1) The complaints over spending in the bill amount to something on the order of 1-2 percent of the overall plan to get the economy moving again.
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2) Despite the impression you might get from clicking on CNN, most Americans still want this thing passed
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3) Government spending creates jobs
President Obama will use the bully pulpet, rally Democrats, and get this plan passed. But he needs help, call your Senators. Yes we can.