We’re cutting through the noise of the Big Labor-funded protesters and the overheated rhetoric of the Big-Labor funded politicians to spread the news:  when it comes to budget reform in Wisconsin, It’s Working.

We’re proud to introduce the ItsWorkingWisconsin website. We heard some say the sky would fall, that there would be massive layoffs of state and local government workers and teachers. Some asserted that Wisconsin’s budget reform would mark the end of the state as we know it. But the sky’s still there, and Wisconsin is stronger than ever, thanks to Wisconsin’s budget reform.

As a result of Wisconsin’s budget reform, the state has cut the deficit and reduced the strain on local governments by giving them the tools to reduce their labor costs without massive program cuts or layoffs. This website is committed to providing the facts to Wisconsin taxpayers. Every week there are more examples of how It’s Working. Together, the Americans for Prosperity Foundation and the John K. MacIver Institute for Public Policy have chronicled success stories from across Wisconsin. (more…)

Like the recent east coast earthquake, the Budget Control Act of 2011 left Washington shaken and completely confused, the epicenter being the Department of Defense.

While some are saying that the super committee will be able to reach a deal and cut the additional $1.5 trillion (half from defense), others are not so confident there will be any agreement, resulting in automatic caps for the next nine years.  Either way, defense spending will make or break a super committee budget deal.

Truthfully, Congress has a better chance of willfully trimming the budget at the super committee stage because they have more tools to orchestrate a reduction. Even if they deadlock, they’ll push through artificial savings mechanisms, anything to merit a Mission Accomplished banner. Medicare doc fixes are an example of such “solutions”. Though Congress’s intention was to curb Medicare spending, they came up with an unworkable formula that has now resulted in temporary increases and extensions of existing physician reimbursement rates, all in an attempt to circumvent a long-term solution. Applying this to what Congress may do with defense spending, a successful deal may be nothing more than a tacit convention of today’s culture on Capitol Hill, do anything to avoid Armageddon. And some do consider the trigger provision of the bill to be deadly. Secretary of Defense Leon Panetta even called it the “doomsday mechanism.”

Under sequestration, or the trigger, defense cuts are still a variable certainty. We simply do not know how bad it is. It all boils down to the language of the bill. Here’s why:

1.The bill does not organize any of its spending requirements against any baseline.

2.Positive numbers (discretionary spending caps) without context forces you to make arbitrary assumptions.

3.No analyst can come up with a number that is reasonable/unreasonable.

The question on everyone’s mind: What on earth do we base these numbers against?

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With Rep. Pelosi’s picks announced today, the SuperCongress is set. From The Associated Press:

House Minority Leader Nancy Pelosi’s appointment Thursday of three Democrats to Congress’ new debt-reduction supercommittee completes the roster of a panel whose members are already being tugged in competing directions.

Pelosi selected Reps. James E. Clyburn of South Carolina and Xavier Becerra of California, who both are members of the party’s House leadership, and Maryland’s Chris Van Hollen, the top Democrat on the Budget Committee. The choices bring racial diversity to the supercommittee because Clyburn is black and Becerra is Hispanic.

The 12-member panel, divided evenly among Democrats and Republicans, has until Thanksgiving to propose $1.5 trillion in 10-year budget savings. If it does not propose a package or if Congress doesn’t approve it, $1.2 trillion in automatic budget cuts will be triggered.

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The Mohair subsidy. The AmTrak subsidy. The Ready to Learn TV Program subsidy. What all of these federal subsidies (and scores more) have in common is that they are on the specific list of federal programs that Republicans are proposing to eliminate to cut the debt and preserve America’s fiscal integrity.

Hey, with the U. S. national debt increasing by $4.1 billion each day, we are faced with national bankruptcy—which has aroused the Republicans from their lethargy. They will agree to raise the debt ceiling if the politicians will agree to restrain their spending appetite by making specific cuts.

What specific suggestions for cuts has President Obama made? Almost none. It doesn’t count to talk about future savings from possible cuts in national defense, or alleged savings from Obamacare. It’s all in the future, and we don’t know if any of it will happen.

For the president to make no suggested cuts in our bloated federal budget is astonishing. Let’s take the more than $100,000,000 annual subsidy to Amtrak as one example. Amtrak is expensive and inefficient, which is no surprise. The first transcontinental railroads—the Union Pacific and the Central Pacific—were built in the 1860s and they ran about $60 million (in 1869 dollars) in debt in building costs, and both went bankrupt (the Union Pacific several times) before the end of the 1800s. By contrast, the Great Northern Railroad, which went from St. Paul to Seattle was built with no federal subsidies and never went bankrupt. The subsidies to the Union Pacific and Central Pacific made them dependent on the government, and helped lead to their downfall. Thus, if the federal subsidies to transcontinental railroads failed when first tried in the 1800s, why should we be surprised that AmTrak loses money every year now. And what does this tell us about the huge subsidies President Obama has planned for high-speed rail?

Why is the president failing to join the current debate? Why is he offering almost no specific cuts?

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Imagine my surprise to receive, within the span of minutes, both the following news story in Energy &Environment Daily — ” EPA: Jackson summons top aides for budget pow-wow as GOP sharpens knife: In the face of drastic funding cuts and a hostile political environment, U.S. EPA Administrator Lisa Jackson has told her top deputies to rank which of their programs they deem to be essential and which could fall on the budgetary chopping block” — and the following invitation, just circulated around EPA headquarters.

Just keep this in mind when the results of this “pow-wow” — ritual demagoguery and a lot of talk about children, seniors and the poor — pop in the next few days.

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So much for the unions caring about their members like ‘family.’  I guess in the teachers’ union ‘family’ when times are tight the whole family doesn’t sacrifice, the youngest two kids are just kicked to the curb to fend for themselves.

Can they stop using the term ‘union brothers and sisters,’ now?

[MILWAUKEE] The Milwaukee teachers’ union wants area businesses to donate $94 million to solve the district’s financial problems, hoping that will save some of the 519 jobs to be lost on Friday.

Milwaukee Public Schools announced the layoffs on Wednesday.  Dr. Gregory Thornton, MPS superintendent, said at least 200 teachers’ jobs could be saved if the union would have agreed to a 5.8 percent pension contribution from its members.

“We will move into a new school year with a big loss of a lot of talent and a lot of strong educators,” Thornton said.

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From the Associated Press:

Riot police fired tear gas at youths hurling rocks near the Greek finance ministry Tuesday, trying to quell the anger unleashed by a general strike as parliament debated new cost-cutting measures.

The latest austerity measures must pass in two parliamentary votes Wednesday and Thursday if Greece is to receive bailout funds from the EU and the IMF to stave off a possible default in July. If the votes don’t pass, Greece could become the first eurozone nation to default on its debts, sending shock waves through the global economy.

The clashes with police came at the start of a two-day strike called by unions furious that the new euro28 billion ($40 billion) austerity program will slap taxes on minimum wage earners and other struggling Greeks. The measures come on top of other spending cuts and tax hikes that have sent Greek unemployment soaring to over 16 percent.

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The media and education establishment’s hair has been on fire over the thousands of layoffs that are occurring in American public schools. They’ve bought into the union line that school funding is in crisis, when in reality, spending is unsustainable.

Because of collective bargaining agreements, many school districts’ hands are tied and layoffs are the only option. They can’t save money by changing employee health insurance policies, or obtaining salary freezes or wage concessions, because the unions won’t allow it.

This all supposedly leads to what the unions denigrate the most (besides Republicans): larger class sizes.

The Obama education stimulus package accomplished two things: it temporarily maintained artificially large school employment levels and created the layoff “crisis” that school boards are now grappling with.  You see, the stimulus lasted for two years and provided money to keep unnecessary staff on the job. But then the money was cut off and schools could no longer afford to keep extra teachers on the payroll.

So school districts are now laying teachers off, some by the thousands.  And the layoffs may be justified.

Census figures, first dissected by the Education Intelligence Agency’s Mike Antonucci, show that government school employment rates have been increasing as student enrollment has been decreasing.

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For months the public employee unions have been orchestrating daily events in Madison to keep the media attention on their battle with Wisconsin Governror Scott Walker (check out #wiunion on twitter). You’ve seen the Entitledtown tent city, you know about the marches, the sing-a-longs and the other stunts. Well, on Wednesday the stunt of the day was supposed to be having students dress up like zombies and hold a ‘die in’ at the Capitol. Before that happened however, these pro-union protesters picketed and disrupted the Governor’s appearance at a Special Olympics ceremony.

Words escape me.

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I was seeing red this morning when I read this first-person account of 3^rd grade socialist indoctrination in Millwaukee Public Schools.

It came from Dale Weiss, an MPS teacher and devoted radical.

“The process of addressing budget cuts with my students taught me an incredible amount,” Weiss recently wrote. “I learned that laying a social justice foundation for young students is a complex process. I learned when issues are addressed, they need to be revisited many, many times.”

“Social justice foundation?”  Oh wait, dear readers, the giddy and proud Ms. Weiss explains how she set the 8- and 9-year olds up for a fall:

“Several weeks later, right as the bell was about to ring at the end of the school day, I casually mentioned to my students that I wanted to learn more about doing art with children since Ms. Sue [the art teacher] would not be with us next year. The students clearly were taken off guard:

“But I thought if we wrote letters to the school board there would be more money for MPS and we could keep Ms. Sue.

“Michael and Dakota read their letters at that meeting, and they asked for more money for our school. I really thought we would get more money. But now I don’t think it happened.

“Looking at the disappointment on their faces, I realized I had unintentionally led my students to conclude that if we believed something to be unfair and took action, the unfair situation would turn into a fair one. I remembered saying over and over: ‘There is always something you can do to try to turn the unfair situation into a fair one.’

Yet my students heard something quite different. In their hope and optimism as 8- and 9-year-old children, they knew that their actions would bring about a miracle. My heart sank; I felt I had let my students down.”

To Ms. Weiss and other unionists, the students are little more than political pawns in their game.  They’re setting them up to do their dirty lobbying work.

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It seems Gov. Scott Walker’s ideas are catching on, even in Massachusetts. From Boston.com:

House lawmakers voted overwhelmingly last night to strip police officers, teachers, and other municipal employees of most of their rights to bargain over health care, saying the change would save millions of dollars for financially strapped cities and towns.

The 111-to-42 vote followed tougher measures to broadly eliminate collective bargaining rights for public employees in Ohio, Wisconsin, and other states. But unlike those efforts, the push in Massachusetts was led by Democrats who have traditionally stood with labor to oppose any reduction in workers’ rights.

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I have a crazy idea: let’s save millions of dollars by not spending money to build broadband networks where they already exist. The insanity of so-called “broadband stimulus” projects has been covered quite nicely here at BigGovernment by Seton Motley, but my good friend Dave Williams of the newly-formed Taxpayers’ Protection Alliance wrote about a part of this debate that hasn’t been covered enough: loan guarantees given out by the Rural Utilities Service, a division of the U.S. Department of Agriculture.

With a budget deficit that is as large on its own as the entire federal budget of 1998, the folks in Congress who’d like to avoid a crippling debt crisis (those crazy kids!) are looking for ways to trim the fat. Luckily for legislators there is an area of “USDA prime” waste they can carve out: the U.S. Department of Agriculture’s desperate dash for taxpayer cash in the form of superfluous subsidies for rural broadband efforts.

USDA’s Rural Utilities Service (RUS) is an outdated agency whose roots go all the way back to FDR’s New Deal-era Rural Electrification Administration. Originally meant to help bring electricity to farmers in remote areas, its mission was expanded in 1949 to include telephone service and, half a century later, Internet service. Ostensibly, its goal is to subsidize the construction of broadband networks in sparsely-populated areas that do not have them.

But in its ham-fisted attempt to bring high-speed Internet service to areas where there is none, RUS has consistently given money to organizations which build over existing private broadband networks. A 2005 report from the USDA Inspector General found that “RUS has not maintained its focus on rural communities without preexisting service.” The same report determined that “in one of the more highly publicized cases, RUS issued loans to a company providing broadband access to affluent suburban communities a few miles outside of Houston, Texas.”

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From Associated Press:

Perilously close to a government shutdown, congressional leaders reached agreement with the White House late Friday night on a deal to cut tens of billions of dollars in federal spending and avert the closure.

House Speaker John Boehner informed the GOP rank and file of the accord, reached in grueling negotiations over several weeks, an official said.

“We have an agreement,” concurred a spokesman for Senate Majority Leader Harry Reid, Jon Summers.

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The media are reporting that if a governmental shutdown occurs, it will affect only “nonessential services and personnel.” Now, call me superficial, but I have a question:

At a time when we face a $1.4 trillion deficit this year alone, why are we funding anything or anyone that is admittedly “nonessential”?

I have been pondering an analogy that ought to be easy for anyone to grasp. Let’s compare the current congressional battle over federal spending with a hypothetical family feud over your own household budget.

Suppose you and your spouse are arguing about your finances. You have discovered, to your horror, that you are spending $1,400 per month over and above your total household income. Terrified, you inform your spouse that this is completely insane and unsustainable, and that it must stop immediately.

Your spouse nods in nominal agreement — but then digs in his or her heels against every single specific spending cut that you propose.

Knowing of your partner’s stubborn, spendthrift ways, you eventually propose just $100 in reduced spending. That would still have you falling behind each month by $1300, but at least it’s a start. However, your spouse is outraged and rejects the figure out of hand; it’s “draconian,” and would undermine the profligate lifestyle to which you’ve become accustomed.

You argue, and argue, and argue. Getting nowhere, and desperate for any point of agreement, you say: “Look, can’t we cut just $61 from our monthly spending? We both know that this won’t even make a dent in our obligations, but at least it might slow our rush toward bankruptcy, if only by a few days.”

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On today’s edition of Coffee and Markets, Brad Jackson is joined by Francis Cianfrocca and Pejman Yousefzadeh to discuss Paul Ryan’s budget proposal, plus Francis explains why the Fed loaned billions to foreign banks.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

GOP Aim: Cut $4 Trillion
The GOP Path to Prosperity
Paul Ryan is Not Jesus, But His Path To Prosperity Gospel is Really Good
US Debt Clock
Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak

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From The Wall Street Journal:

Our budget, which we call The Path to Prosperity, is very different. For starters, it cuts $6.2 trillion in spending from the president’s budget over the next 10 years, reduces the debt as a percentage of the economy, and puts the nation on a path to actually pay off our national debt. Our proposal brings federal spending to below 20% of gross domestic product (GDP), consistent with the postwar average, and reduces deficits by $4.4 trillion.

A study just released by the Heritage Center for Data Analysis projects that The Path to Prosperity will help create nearly one million new private-sector jobs next year, bring the unemployment rate down to 4% by 2015, and result in 2.5 million additional private-sector jobs in the last year of the decade. It spurs economic growth, with $1.5 trillion in additional real GDP over the decade. According to Heritage’s analysis, it would result in $1.1 trillion in higher wages and an average of $1,000 in additional family income each year.

Here are its major components:

• Reducing spending: This budget proposes to bring spending on domestic government agencies to below 2008 levels, and it freezes this category of spending for five years. The savings proposals are numerous, and include reforming agricultural subsidies, shrinking the federal work force through a sensible attrition policy, and accepting Defense Secretary Robert Gates’s plan to target inefficiencies at the Pentagon.

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The numbers being floated around by President Obama and Congressional Democrats during this year’s budget battle are all spin and sleight of hand. Not that this should surprise anyone – the President has a history of using smoke and mirrors – especially when it comes to taxpayer dollars.

Last year’s Democrat-controlled Congress failed to pass a budget for Fiscal Year 2011, so the government is currently being funded mostly at 2010 levels. While the administration claims it has offered to cut $51 billion, about $41 billion of that is based on a budget proposal that was never enacted, so the real number is closer to $10 billion. Compare this to House Republicans who voted in February to enact $61 billion in real cuts. Like most important legislative matters, the President has chosen not to lead, but to instead hide behind budget gimmicks to give the appearance that he is taking our fiscal crisis seriously.

The Obama Administration has used these kinds of budget tricks in the past, most notably when pushing Obamacare through early last year. Just last week, Secretary of Health and Human Services Kathleen Sebelius admitted at a hearing on Capitol Hill that the administration double counted $500 billion in Medicare cuts. When pressed by Congressman John Shimkus (R-Ill) on what the $500 billion was for – preserving Medicare or funding Obamacare – Secretary Sebelius unbelievably responded, “Both.” The shenanigans that the Obama Administration and Democrats in Congress pulled to pass Obamacare are finally coming to light and they are the same kind of tactics that the Obama Administration is employing in the current budget fight.

With less than ten legislative days to work out a deal, you would think the White House would be burning the midnight oil to avoid a shutdown. Last week, President Obama, in his infinite wisdom, appointed Vice President Joe Biden as the administration’s point person in the budget talks. One problem: the Vice President is going to Europe this week and will not be able to participate. Meanwhile, President Obama played his 60th round of golf this weekend. If President Obama is concerned about a government shutdown, he and his administration are certainly not showing it.

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All across the land, it would seem that there is but one story to be written regardless of the locale – and budget cuts are that story.  For years, rational legislators and commentators have warned American voters, and those legislators that have thrown economics to the wind, that spending beyond our means will lead to government meltdowns – and so it is today.

Here in California, during the recent State of the State by California Governor Jerry Brown – remarkable only for its brevity – Brown demanded more tax increases to “solve” the State’s now perennial budget crisis.  In doing so, he decried politics as usual but demanded policies as usual.  California has become the tax and spend capitol of the world (outside of Washington DC) and its budget next year will feature a $7.65 billion in debt repayment alone – more than it spends on public universities and more than the overall budget of 21 states.  By comparison, Wisconsin’s $137 million deficit seems quaint compared to California’s $20 billion+ deficit.

Brown also falsely claimed in his State of the State that no one was giving ideas on where else to cut and that if Republicans (and voters) didn’t go along with his tax hikes, he would cut deeper into education.  Brown didn’t offer to cut the state bureaucracy – he threatened to cut education funding – as Democrats are wont to do in order to scare voters.

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From the Associated Press:

The Senate on Wednesday sent President Barack Obama a Republican-drafted bill to trim $4 billion from the budget, completing hastily processed legislation aimed at keeping partisan budget divisions from causing a government shutdown.

The Senate cleared the measure by an overwhelming 91-9 vote that gives the GOP an early but modest victory in its drive to rein in government. Obama has until Friday to sign the measure and keep federal offices open and operations intact. The House passed the legislation on Tuesday.

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Republicans are considering ways to trim the federal budget — and the funds that go toward public broadcasting are on the chopping block. Now it appears that certain public radio stations may be violating federal law to convince listeners to lobby Congress to stop these cuts.

Reps. Betty McCollum (D-MN) and Ed Markey (D-Mass.) already staged a silly press conference this week with Elmo, Grover and Big Bird dolls, along with someone in an Arthur the Aardvark costume, to try to embarrass Republicans into continuing to pay for public broadcasting. Of course, using these characters was probably not a good marketing idea to begin with, given the money-making powerhouse that Sesame Street represents and the enormous profits that have been earned through merchandising these characters.

Now public radio stations such as KCRW 89.9 in Santa Monica are sending out press releases with detailed information about the recommended spending cuts from the House Appropriations Committee in H.R. 1, the Full Year Continuing Appropriation Act. KCRW’s message comes from Sarah Spitz at kcrw.org and urges listeners to “take action in support of public broadcasting” by visiting another website. That website allows you to “Click Here to Write Congress” and asks visitors to “contact your representatives in Congress now and urge them to stand up for public broadcasting funding.”

What KCRW is doing, however, may violate the federal Anti-Lobbying Act. 18 U.S.C. § 1913 provides that “No part of the money appropriated by any enactment of Congress shall, in the absence of express authorization by Congress, be used directly or indirectly to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any manner a Member of Congress, a jurisdiction, or an official of any government, to favor, adopt, or oppose by vote or otherwise, any legislation, law, ratification, policy, or appropriation, whether before or after the introduction of any bill, measure or resolution proposing such legislation, law, ratification, policy or appropriation.”

Under a prior version of the statute as it was interpreted by at least one court decision, this anti-lobbying provision applied only to federal officers and employees. But the law was amended in 2002 and now applies to anyone who receives federally appropriated funds including recipients of federal grants such as NPR. Such grants cannot be used to lobby Congress directly or indirectly, which would include trying to persuade NPR listeners to lobby Congress on NPR’s behalf. So if any of the funds received by KCRW from the Corporation for Public Broadcasting were used to pay Sarah Spritz’s salary in writing this lobbying appeal or to fund the facilities used to broadcast her message on behalf of the radio station, then KCRW has violated federal law.   And if any federal funds were used to pay for this website, that is also a violation of the law.

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