GOP Earmarks Website Ordered Shuttered

On Feb. 13, we noted the launch of a GOP/congressional website entitled "Earmark Reform" -- which we said "purports to promote the bipartisan message 'Stop the Earmarks. Fix Washington,' but appears to be a forum for federalist fury and partisan posturing." It's a weird site -- have a look here. Official congressional websites tend to be party-neutral, or, if they are party-based, their name, domain, and/or location make transparent their partisan identity. Here, the site is housed in a neutral name, domain, and location, but the content and tone are unmistakably apparatchik.

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DAILY FISCAL POLICY REVIEW -- 02-22-08

Stimulus 2.0 -- Senate to Consider Housing Package: Majority Leader Reid may bring a housing-oriented 'stimulus' package to the Senate floor with a vote perhaps sometime next week... The housing piece looks like a grab-bag of provisions:
  • a controversial bankruptcy law revision allowing judges to alter home mortgage terms
  • increased caps on state mortgage-revenue bonds
  • tax breaks for homebuilders
[Query: what makes this a stimulus package? A PAYGO waiver?]

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Economic State Misery Snapshot

Rankings of Jobless Claims and and Home Foreclosures Joblessness:
  • the five states with the largest increases in initial jobless claims for the week ending Feb. 15 were: California, (+7,857), Kentucky (+4,166), Illinois (+1,955), Georgia (+1,009), and Massachusetts (+501)
  • the five states wth the largest decreases were: Ohio (-2,752), Wisconsin (-2,232), North Carolina (-1,746), Pennsylvania (-1,608), and Florida (-1,410)
Homelessness:

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    Ashcroft and US Attorney Christie Testimony Delayed

    Readers may recall that last month we wrote about a no-bid contract worth between $28 million and $52 million former Attorney General John Ashcroft's firm received to oversee a court settlement. The contract was awarded by a former employee of Mr. Ashcroft - New Jersey's US Attorney Christopher Christie.

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    Are Contractors Taking Over?

    This morning, the New York Times published a fantastic article by Scott Shane and Ron Nixon about how contractors are taking over huge parts of the federal government. The article, "In Washington, Contractors Take On Biggest Role Ever," is the first in a series of articles by the Times that will investigate government contracting. And rightly so. Outsourcing of government jobs, services, and product development has more than doubled in the last 6 years - a staggering growth rate. The article in today's paper shows, contrary to popular belief, that contractors often end up costing the government more money than it would otherwise spend, with inflated hourly wages ($104 per hour in one example from the article), poor performance and management, and little oversight or accountability from government employees. Scott and Nixon profile problems at the General Services Administration and the Department of Homeland Security, among other agencies, as case examples of following poor contracting practices and making wasteful decisions that have squandered billions of taxpayer dollars while enriching private companies. In fact, one study cited in the article concluded the explosion of contracting "poses a threat to the government's long-term ability to perform its mission" and could "undermine the integrity of the government's decision making." The entire article is worth reading and does a great job summarizing some major concerns about the current contracting environment. I'm looking forward to the rest of the articles in the series and my only hope at this point is that every member of Congress will read the articles as well.

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    Economics and Statistics Administration Reverses Shutdown Decision for EconomicIndicators.gov

    EconomicIndicators.gov will continue operation. Last week, we noted that the U.S. Department of Commerce's Economics and Statistics Administration, which runs the economic data site, would be shutting it down due to budgetary constraints. This arrived in my inbox this morning: ESA initially planned to discontinue the service due to cost concerns but given the feedback ESA received, the decision has been made to continue the site and improve its functionality.

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    Worker Earnings Continue Decline

    According to yesterday's BLS Real Earnings report, for the fourth month in a row, workers saw a year-over-year decline in their paychecks. In January workers saw their pay drop by 0.5% from Dec. 2007 and 1.4% from Jan. 2007. Although a recession has not been officially declared, for millions of wage earners it certainly feels like one. (click to enlarge)

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    DAILY FISCAL POLICY REVIEW -- 02-21-08

    Economy -- Slow Growth Ahead Says Fed:
    • The Federal Reserve yesterday revised growth estimates downward to the 1.3 to 2 percent range for this year, compared to its 1.8 to 2.5 percent estimate in October. Despite yesterday's CPI figures, a 50 bp rate cut at the Mar. 18 FMOC meeting "would likely not contribute to an increase in inflation pressures"...
    • But yesterday's inflation figures pose a problem for the Fed which, on one hand, does not want to vitiate the effect of the stimulus package but, on the other, is on the lookout for... That '70s Look: Stagflation

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    DAILY FISCAL POLICY REVIEW -- -02-20-08

    Economy -- CPI up 4.3 percent, Year-on-Year: Per the Washington Post this morning: On the day after oil closed at a record high of more than $100 a barrel, new federal data show that... The consumer price index was 4.3 percent higher last month compared to January a year ago.

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    Contracting Shenannigans: Before and After

    Two stories this morning that bookend contracting scandals we've been following over the past few months. First, wrapping up an extensive bribery scandal, the Washington Post reports former Defense contractor Brent Wilkes, who was convicted in November of 13 felony crimes including bribery, conspiracy and fraud for giving gifts to former representative Randy 'Duke' Cunningham (R-CA), was sentenced to 12 years in federal prison. And second, opening up what might be another front in the post-Katrina contracting scandals, the Associated Press reports the Federal Emergency Management Agency "misspent millions of dollars it received from selling used travel trailers" using the funds for "tree-removal services, agency decals and banners and global positioning systems" instead of returning the funds to the U.S.. Treasury, as required by law. The news article is based on a Homeland Security Inspector General's report to be released this Friday.

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