All House Republicans on the Appropriations Committee voted against the “stimulus bill” reported out of their panel last week. This portion of the stimulus legislation will be combined with the tax provisions (reported from the Ways and Means Committee last week also on a party-line vote, with all Republicans voting “no”) and scheduled for consideration by the full House on Wednesday. Rep. Mark Kirk of Illinois – a Republican member of the Appropriations Committee – prepared an analysis (see below the fold) for his colleagues last week. Looks like the Democrats are using the demand for stimulus to satiate their pent up demand for a lot of new spending unrelated to economic growth. Arguments like these – from well-respected Republicans like Kirk – are emboldening many in the GOP to vote against this measure, which looks more like a funding platform for Democratic projects than source of economic stimulus. M E M O R A N D U M TO: Members of the Appropriations Committee FROM: Mark Kirk DATE: January 21, 2009 RE: Things You Should Know About the Stimulus Bill Here are some things you should know about the bill before our Committee today: A. Large Taxpayer Cost Per Job Saved Combined with the provisions of the Ways & Means Committee, this legislation will cost taxpayers $825 billion and claims to save “3.7 million” jobs. That means the government will save each job at an average cost of $222,972. Combined with the previous $700 billion bailout bill, the cost per job saved by recent congressional spending is $412,162 per job saved. On average, the private sector created 2007 jobs at a cost of $50,283 per job. B. Most Items Are Unrelated to Economic Stimulus The legislation contains 152 separate appropriations. Only 34 line items have estimates in the committee report estimating jobs saved. 117 appropriations have no job saving estimate at all. C. Major Job Producing Items Cost $65 Billion Just 11 appropriations out of the 152 in the bill generate over 1,846,800 jobs at a total cost of $65 billion. These programs that have the highest payoff are some of the lower cost items: 1. Highway Infrastructure Investment (835,000 jobs, $35,928 each) $30B 2. Clean Water State Revolving Fund (282,000 jobs, $21,276 each) $6B 3. Transit Capital Assistance (165,000 jobs, $36,363 each) $6B 4. Child Care Development Block Grant (125,000 jobs, $16,000 each) $2B 5. Weatherization Assistance (104,000 jobs, $59,615 each) $6.2B 6. Drinking Water State Revolving Fund (94,000 jobs, $21,276 each) $2B 7. Grants-in-Aid for Airports (75,000 jobs, $40,000 each) $3B 8. Head Start (50,000 jobs, $42,000 each) $2.1B 9. State Energy Program (41,000 jobs, $82,926 each) $3.4B 10. Energy Efficiency & Conservation Grants (40,800 jobs, $85,784 each) $3.5B 11. Capital Investment Grants (35,000 jobs, $28,571 each) $1B D. Bill Language Requires Extremely Fast Spending Under Title I of the bill, all formula grants must be allocated within 30 days and all discretionary grants must be allocated within 90 days. This will require unprecedented speeds in federal spending. E. Few and Friendly Economists Cited in Report, CBO Ignored CBO reported that of the $550 billion in spending approved by this bill, only $26 billion will be spent in FY09. Of the $30 billion appropriated for highways, only $3 billion will be spent in FY09 and $4.2 billion in FY10. Over $60 billion of spending in the bill will not be spent during President Obama’s first term. CBO’s comment on the bill is not mentioned in the committee report. The Committee report does cite the work of only three economists supporting this legislation: President Obama’s Chair of the Council of Economic Advisors, Christina Romer, Vice President Biden’s economic advisor, Jared Bernstein, and Mark Zandi of Moody’s Economy.com. Zandi is a political contributor to Sen. John McCain and Rep. Joe Sestak (D-PA). Zandi is quoted no less than six times. F. Despite $550B in Spending, No Funds for Troops in Field Despite spending $550 billion, no funds are provided for troops in Afghanistan or Iraq. The Defense Department estimates they will need $60-$80 billion soon to support immediate combat operations. G. Funds Specifically Prohibited for Casinos, Aquariums and Pools, Not Bars The text of the bill specifically prohibits funding from this bill to support “casinos, gaming institutions, aquariums, zoos, golf courses or swimming pools.” The prohibition does not mention bars or the pornography industry. H. No Bipartisan Oversight The bill creates an Accountability and Transparency Board. All board members are appointees of the President. I. No Analysis of Unprecedented Trillion Borrowing Triggered by the Bill There is no mention of the borrowing needed to finance this bill. CBO projects that if this legislation is passed, the federal government will need to borrow over $2 Trillion in the coming months. This will increase the public debt from $6 Trillion to $8 Trillion in a matter of weeks. No bond market has ever handled so much debt sold so quickly. J. Very High Cost Broadband Provided at Taxpayer Expense The bill creates a rural broadband program at a cost of $2.8 billion to serve 3.6 million people. Under these terms, the bill will provide broadband to rural (but not urban or suburban Americans) at a taxpayer cost of $784 each. K. Funding Provided for Programs About to be Out-of-Date The bill appropriates $650 million for digital-to-analog converter boxes despite the impending deadline of the program, announced two years ago of February 17, 2009.
