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Entries in ALG (1618)

Thursday
Aug122010

ALG Warns States of Mandatory Funding in $10 Billion Education Fund, Urges Them to Fight Provision

"This bill gives the federal government the power to administer state budgets and force unsustainable levels of funding on the states, a flagrant violation of the Tenth Amendment and state sovereignty.  If states fail to push back against this usurpation, it will just be the first of many new federal mandates imposed on states by the Obama regime."—ALG President Bill Wilson.

August 10th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today warned governors of the fifty states that the $10 billion in state education spending included in legislation signed into law "is for all intents and purposes mandatory under the federal statute."

Wilson pointed to Section 101(8) of H.R. 1586 which states that if a governor fails to apply for funding within 30 days, "the Secretary shall provide for funds allocated to that State to be distributed to another entity or other entities in the State … for support of elementary and secondary education, under such terms and conditions as the Secretary may establish."

"This is completely unconstitutional, as it coerces states to accept the terms and conditions that come with the money.  The federal government has no power to compel states to spend money on a mandatory basis, but that is exactly what this law does," Wilson declared.

"The federal government is forcing states to keep funding through FY 2011, and through FY 2013 solely for the state of Texas, at pre-recession levels despite the obvious need for cuts at the state and local levels of government, and telling governors that if they do not apply for the funding, then the federal government will force them to accept it," Wilson explained.

Wilson said Section 101(8) explained the statement issued by New Jersey Governor Chris Christie's press secretary yesterday that "the Governor will apply for the education funding passed by the House today in order to ensure it is managed and distributed to local school districts by the State of New Jersey, and not the federal government."

The statement continued, "Guaranteeing New Jersey is in control of these education dollars will ensure that these funds are used by all school districts to help restore some of the federal stimulus funds lost in this year's difficult budget."

Wilson said that Governor Christie's position was "understandable since the federal government would otherwise come in and distribute the funds one way or another," but added, "it forces New Jersey and other states to keep this level of pre-recession funding through FY 2011 when revenue will not likely recover next year."

Governor Christie's press secretary statement criticized the legislation for that exact reason, saying, "Governor Chris Christie believes that using this type of non-recurring funding for operating expenses is ill advised because it will disappear after one year".

According to Katherine Cesinger, Deputy Press Secretary of Texas Governor Rick Perry, Texas has to provide the funding through FY 2013: "[H.R. 1586] mandates that the governor guarantee the Legislature will provide a certain level of state funding through 2013, a funding scheme prohibited by the Texas Constitution.  It will be at least June 1, 2011, before the legislature passes and the Comptroller certifies the 2012-2013 budget."

Yesterday, Governor Perry issued a statement saying, "We'll continue to work with state leaders, including the attorney general, to fight this injustice."

Wilson praised Perry's vow to fight the bill: "Governor Perry deserves the thanks of all Texans for standing up to the federal government's invasive meddling in state budgetary matters.  Budget determinations are granted to the legislative and executive branches of Texas under its sovereign constitution, not to Barack Obama."

According to Mississippi Governor Haley Barbour, the terms of the bill force states to reallocate money away from other parts of the state budget directly to education: "The Bill as passed the Senate will force Mississippi to rewrite its current year (FY11) budget.  Preliminary estimates of the Mississippi Department of Finance and Administration show that we will now have to spend between $50-100 million of state funds — funds that must be taken away from public safety, human services, mental health and other state priorities and given to education — in order for an additional $98 million of federal funds to be granted to education."

Governor Barbour continued, "There is no justification for the federal government hijacking state budgets, but that is exactly what Congress has done."

Wilson urged states to fight the measure, concluding, "This bill gives the federal government the power to administer state budgets and force unsustainable levels of funding on the states, a flagrant violation of the Tenth Amendment and state sovereignty.  If states fail to push back against this usurpation, it will just be the first of many new federal mandates imposed on states by the Obama regime."

Attachments:

"ALG Condemns House for Approving $26.1 Billion States Bailout, Urges States to Reject Funds," August 10th, 2010.

"States Should Reject $26.1 Billion Bailout," by ALG Senior Editor Robert Romano, August 10th, 2010.

"House to End Recess Early to Bail Out Bankrupt States," by ALG President Bill Wilson, August 5th, 2010.

"The Return of the States Bailout," by ALG President Bill Wilson, August 2nd, 2010.

"The Reverse Smoot-Hawley Act," by ALG President Bill Wilson, August 4th, 2010.

"Special Research Report from Americans for Limited Government on the Report, 'Unfair Advantage,'" Americans for Limited Government, August 2010.

"Radical Left-Wing Non-Profits Aligned with Sen. Levin Falsely Posture as Small Business Advocates," by Kevin Mooney, August 3rd, 2010.

Wednesday
Aug112010

NRN - Must Reads for August 11, 2010

Americans for Limited Government President Bill Wilson's quote of the day from House Passes States Bailout: "The House has once again voted to forestall the day of reckoning for bankrupt states, which really do need to cut spending.  While Americans struggle to balance their family budgets, government has become the only sector of the economy that has not faced cuts during this recession. Since Nancy Pelosi and Harry Reid took over Congress in 2007 when the recession began, the federal government has added $4.3 trillion to the $13.3 trillion national debt."

Read more at NetRightDaily.com.

Wednesday
Aug112010

ALG Condemns House for Approving $26.1 Billion States Bailout, Urges States to Reject Funds

"The House has voted to side with bankrupt states and greedy public teachers unions, and to reject the concerns of taxpayers, who are being saddled with a mountain of debt that cannot possibly be paid."—ALG President Bill Wilson.

August 10th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today condemned the House of Representatives for "voting for another $26.1 billion bailout for bankrupt states like New York and California, which simply refuse to cut any spending despite a lack of revenue."

"The House has once again voted to forestall the day of reckoning for bankrupt states, which really do need to cut spending.  While Americans struggle to balance their family budgets, government has become the only sector of the economy that has not faced cuts during this recession," Wilson said, noting that "since Nancy Pelosi and Harry Reid took over Congress in 2007 when the recession began, the federal government has added $4.3 trillion to the $13.3 trillion national debt."

"The states already got $145 billion in the $862 billion 'stimulus,'" Wilson added, saying that the bailout would disproportionately favor those states that spent the most money:  "Out of the estimated 3.3 million public school teachers nationwide, teachers unions were expecting 160,000 layoffs this year — just 4.8 percent of all teachers.  38.1 percent of those layoffs are centered in just three states: 9,000 in New Jersey, 16,000 in New York and 36,000 in California."

Wilson called on state governors and legislatures to reject the funds saying, "It is time to say, 'thanks, but no thanks' to endless federal bailouts that only put off the day when necessary cuts to state budgets must occur." For Fiscal Year 2011, CNN reports that states face $180 billion in shortfalls

Wilson said that "stimulus" already was distorting the budget process of several states, pointing to a  Los Angeles Times report: "Many states had already counted on the extra federal aid in their spending calculations — raising the possibility of new budget crunches if the measure failed."

House Speaker Nancy Pelosi had pulled members of Congress away from the August recess for a special session to vote on the legislation, included $16.1 billion for state Medicaid funding, and $10 billion for public teachers spending. 

The final vote in the House was 247 – 161.

Wilson called the $10 billion teachers funding "a vote to pad the public sector unions' political coffers with at least $40 million to union bosses."

"Members of the House members have been warned that the American people are simply sick of these endless bailouts.  They do not want to pay to balance the budgets of states they do not even live in to save unsustainable government employees that will only have to be cut next year as the economy and revenues fail to recover," Wilson explained.

Wilson also blasted members for limiting the use of the Section 956 foreign income tax credits for profits generated overseas.

"Nancy Pelosi's House has voted to guarantee higher unemployment and to reduce future capital investment in the U.S. by eliminating the foreign income tax credit.  Now jobs and business capital will simply be shifted overseas," Wilson said.

"Phony small business groups have estimated that this tax increase will raise $37 billion in revenue from $149 billion in profits generated overseas, but they are wrong.  That capital flow will not be repatriated into the economy, costing the economy $149 billion annually without generating any significant revenue," Wilson explained, adding, "For that reason, this bill will only add to the debt."

Wilson concluded, "The House has voted to side with bankrupt states and greedy public teachers unions, and to reject the concerns of taxpayers, who are being saddled with a mountain of debt that cannot possibly be paid."

Attachments:

"House to End Recess Early to Bail Out Bankrupt States," by ALG President Bill Wilson, August 5th, 2010.

"The Return of the States Bailout," by ALG President Bill Wilson, August 2nd, 2010.

"The Reverse Smoot-Hawley Act," by ALG President Bill Wilson, August 4th, 2010.

"Special Research Report from Americans for Limited Government on the Report, 'Unfair Advantage,'" Americans for Limited Government, August 2010.

"Radical Left-Wing Non-Profits Aligned with Sen. Levin Falsely Posture as Small Business Advocates," by Kevin Mooney, August 3rd, 2010.

Tuesday
Aug102010

NRN - Must Reads for August 10, 2010

Tuesday
Aug102010

NRN - Must Reads for August 10, 2010