Rescissions and Politics

Senator Richard Burr (R, NC), recall, voted against a rescission of $15 billion  in unspent money because he wanted to preserve $15 million in unspent money in the Land and Water Conservation Fund.

The good Senator, objecting to The Wall Street Journal having called him out, wrote a Letter to the Editor, explaining himself.  The center of his argument is this:

The LWCF isn’t, as you suggest, a “slush fund” or a “land grab.” Nor is it a piggy bank Washington should raid at its convenience. Instead, it is a rare example of an effective government program that costs taxpayers nothing and benefits them entirely.

So, the Senator voted to tank a multi-billion dollar reclama of unspent money over a bit of trivium with a value of a bare one-tenth of one per cent of the total being reclama-ed.  Never mind that if the LWCF were all that useful, it would have been spending that pocket change, and that if it were that valuable, it could be restored in the next budget.

In any event, the money, not having been used by the LWCF and having been reclama-ed, would have been lost to the LWCF not at all.

Brilliant.

Two Birds

I’ve often argued against government spending on matters unrelated to the Constitutionally mandated payment of government debt, providing for the national defense, and seeing to the general Welfare (as defined by the clauses of Article I, Section 8).  I’ve also argued for privatizing the major social welfare programs of Social Security and Medicare.

Now Oklahoma illustrates the failure to limit the one and do the other at the State level, with Medicaid standing in for Medicare.

Following the nationwide trend, Medicaid has taken a growing toll on Oklahoma’s budget. In 2017 the health-care program that is supposedly for the poor consumed nearly 25% of the state’s general fund, up from 14% in 2008, as nearly 200,000 more people enrolled. Lawmakers are left with less money for everything else, not least education.

Which also means crowding out spending on voucher and charter schools, which means crowding out school choice and competition-improved schools—including public schools.

All that spending on Medicaid, too, instead of the State privatizing that—to an extent; this program, after all, is intended to help the poor, so their contributions can’t cover all their medical costs—means Oklahoma’s citizens have less money to spend on their own needs and wants, which depresses economic activity, which reduces revenues to the State, which reduces monies available for programs like Medicaid….  And this chain doesn’t even address the addition of those 200,000 folks since 2008.  That was the year the Panic began, and it may be that most of those added to the Medicaid rolls then truly should have been—but do all of them need to be on the rolls today, or is it time to re-tighten the eligibility criteria?

Taxing vs Spending

In a Wall Street Journal piece about Tennessee’s required closure of failing bridges problem, a Leake County Democrat supervisor, Joe Andy Helton, had this:

…he was frustrated by politicians being afraid to raise taxes—even to pay for basic services like roads and bridges.

“There’s only but one way to fix things on the local, state or federal level and that’s taxes,” he said.

Of course. Reallocating spending is utterly inconceivable to him.

The two bridges in Helton’s county that must be closed until repaired would cost, at most, a bit over a half-million dollars, together.  That’s not pocket money for a rural county like Leake, but it’s not that much, either.  County and State spending could be (re)directed toward the repairs.

This is a local failure of performance, but rising taxes and no spending responsibility nationally are what we can expect if Progressive-Democratic Party politicians like this one gain the majority in the House this fall.

Infrastructure Funding

Much has been made about the deteriorating state of our nation’s infrastructure, from past todos that worked out to be just political chit-chat with nothing done to today’s efforts and commentary.

The commentary, as far as it goes, isn’t far wrong: our infrastructure, our roads, bridges, railroads, airports, even our communications infrastructure are in terrible shape.  But the commentary continues to be largely chit-chat, and the NLMSM isn’t helping.

Take this opening from a piece on President Donald Trump’s latest budget proposal from Fox News, for instance.

President Trump is calling to pump $1.5 trillion into fixing America’s infrastructure while streamlining the often-cumbersome permitting process, as part of a $4 trillion-plus budget plan unveiled Monday.

We’re going to spend 3/8 of our 2019 Federal budget on infrastructure, are we?  That’s the impression the author of this piece has chosen to give.

The truth of the matter, though, is buried deeper into the piece.

The infrastructure component, however, would not necessarily be a huge driver of Washington’s red ink.

Well, NSS.  It turns out the infrastructure spending component of Trump’s budget proposal is just $200 billion—just about 1/8 of those $1.5 trillion.  The Federal part of that spending is just seed money, with the States and local jurisdictions, and importantly, private enterprise, putting up the rest.

And that’s entirely appropriate.  While our national infrastructure benefits our nation as a whole—is critical to it, in fact—the vast majority of use and of benefit is local: it’s the States and local regions that get the first and the most of the benefit of a functioning and sound set of bridges, roads, airports, and so on.  Of course, then, it’s the States and locals who should front most of the money for infrastructure rehab.  After all, why should Illinois or Missouri, with their citizens’ tax dollars, contribute a whole lot to improving Iowa’s lousy highway system?  A bit, yes; some interstate commerce traffic into and out of Illinois and Missouri uses Iowa roads.  But far and away the bulk of Iowa highway traffic is intrastate.  It’s Iowans who are the largest users of Iowa roads.

There’s another reason to put the cost of improvement on the State and locals.  They’re the ones closest to the problem, and so they’re the ones with the most impact from regulations and permitting and other red tape; they’re the ones who can have the most impact on these impediments to improvements.  Private enterprises best know the surrounding regulatory and permit environment, and it’s private enterprise that will employ local workers.

Bigger Budgets and Spending Cuts

Last week, Congress passed and President Donald Trump signed, a budget covering the next two years that has significantly larger spending caps than the last several budgets have had, including in particular a large increase in domestic spending.  Of course, that means spending must rise, right?  Every dollar budgeted must be spent; the budget is a spending floor, not a cap?

Not at all, as the budget proposal Trump has sent over to Congress for FY2019 demonstrates.

The Trump budget is proposing to reduce nondefense discretionary spending caps by 41% over the coming decade.

Cuts to domestic spending instead of spending every dollar budgeted.  Hmm….