I found some info on the stimulus money that the state of Tennessee is getting. Thought I’d post this article on where the money is going. See if you think it will stimulate the economy or grow government.
If it’s not Stimulating the Economy Then What is it Stimulating?
Christian Grantham over at Channel 2’s Nashville is Talking posted Tennessee’s portion of the Stimulus Package swag. Keep in mind this is supposed to be spending that stimulates the Economy. This is a joke – and a bad one. The total amount Tennessee is to receive is $3,779,708,000 – almost $4 billion dollars to pump into the economy of the state of Tennessee. Let’s see where the pork is earmarked to go …
The first $943,288,000 under the heading Fiscal Stabilization, whatever that means, is spent as follows: $771,610,000 on Education and $171,678,000 on General Purpose. How spending three quarters of a billion dollars on Education is going to stimulate the Economy is beyond me. I know, I know … an educated populace is a prosperous one. I even agree. But the sky is falling, remember? We have to pass the Stimulus now or Economic ruin is upon us. How even $771 trillion spent on education over the next 5 years is going to do anything but prosper the Teacher’s Union is beyond me. This is not stimulating the Economy anytime soon. General Purpose sounds like the money is going into the state’s General Budget.
This is nothing more than Welfare for Tennessee instead of Tennesseans. The state gets another $172 million dollars to spend on whatever it wants. I wish we had checkbook transparency in Tennessee so we could know that money was spent in the Private Sector and thus be sure it was stimulating the Economy. Government spending on Government is only Economically depressing as once the “Stimulus” funds are gone taxpayers still pick up the tab for the bureaucracy it created. Two line items down, we’ve spent a billion dollars – so far no stimulus.
The next several line items are spending for various projects and we get a bit more specific.
The list of recipients is instructive:
- $771,610,000 on Education
- $171,678,000 on “General Purpose”
- $1,100,000,000 for Medicaid
- $10,200,000 for the Foster Care system
- $71,988,000 to mass transit capital grants
- $20,394,000 to “clean water” programs
- $57,814,000 to drinking water programs
- $97,467,000 to something called “weatherization”
- $59,065,000 to the state energy program
- $7,199,000 for immunization
- $2,614,000 for elderly nutrition
- $41,932,000 to child care
- $19,699,000 to the shadowy idea of “community services”
- $2,069,000 to the “temporary emergency food assistance program”
- $2,064,000 for emergency food and shelter
- $11,500,000 for vocational rehabilitation
- $174,210,000 for K thru 12 education
- $50,386,000 for school improvement
- $236,163,000 goes to the individuals with disabilities act
Under this expense Special Education gets $229 million and Early Intervention a mere $7 million. Why does this sound like more payoffs to the Teacher’s Union and not an Economic Stimulus. Again, leaving for the moment the ongoing expense of such programs after the Stimulus money is gone when taxpayers right here in Tennessee will have to pick up the tab for it. I’m giving this an “F” in Stimulus accomplishment while noting that the program does manage to play well with other expensive Government boondoggle programs.
Education mercifully peters out at long last with a final gasp of $10,994,000 for Education Technology, $669,000 for Education for the Homeless and $1,985,000 for School Lunch Equipment. I’m excited to be able to finally score a couple of “Yes” votes. Ed Tech and the Lunch Equipment will almost certainly have to be purchased from a Private Sector company thereby providing non-Government jobs and capital to the only people able to actually impact the Economy. Education for the Homeless? Not so much…
Another long list of non-stimulating expenditures follows. HOME Investment Partnership Program gets $30,394,000. $49,518,000 goes to Byrne Justice Assistance Grant. Crimefighting gets stimulated with $9,770,000 for Crime Victims Assistance, $646,000 for Internet Crimes Against Children and $4,496,000 for Violence Against Women. $9,600,000 for State Administration Grants for Unemployment Insurance would appear to be federal money to pay for overseeing a federal program. It might help end a bit of unfunded mandates but it’s not stimulating. $10,945,000 for Adult Workforce Investment Act and an additional $25,353,000 for the Youth version of the same sound unlikely to do anything but produce bureaucracy. Dislocated Workers get stimulated to the tune of $19,777,000. $2,472,000 goes to Community Service for Older Americans and Employment Service gets $7,426,000 which, if it is to help people find work may be stimulating but I wonder how the state’s Private Sector businesses doing the same thing will feel about their tax dollars going to create Governmental competition for them? None of this is economically stimulating.
Our $3.8 billion in Economic Stimulus funds is finished up by our final entries. Head Start, that powerful and ancient economic engine, gets $13,775,000. $80,710,000 goes to the Public Housing Capital Fund. That sounds too much like another Government program as opposed to actual construction work so we’ll vote “No”. CDBG and Neighborhood Revitalization gets a “?” on the amount to be spent on it but it doesn’t sound promising. And the final line item is … drum roll, please … $20,397,000 for Homelessness Prevention.
Our totals are quite interesting. Of our total $3,779,708,000 – $1,246,017 goes to various Education programs, $1,100,000,000 goes to Medicaid leaving just $1,433,691,000 to spend on everything else. Almost two thirds of the money is excluded from stimulating the Economy in just two general items. Of the monies left, $771,282,000 also fails to stimulate the Economy, $662,409,000 falls under the “Maybe” category and only $12,979,000 has the appearance of true Stimulus spending.
This is why only 3 Republican votes could be squeezed out of Congress. This is why hundreds of Economists, including Nobel Laureates, disagree with the President’s contention that Government must do something to fix the problem. This is why the more people found out about the idea, the less they liked it. This is the reason the President broke campaign promises to permit legislation to be viewed and debated before voting on it. This is the reason millions of Americans believe the bill to be nothing but Earmarks and Pork and little or no real Economic Stimulus.
It’s also the reason Governor Phil Bredesen and the Tennessee Legislature should simply refuse to accept the money and send it back. While failing in its stated intention to stimulate the Economy, it succeeds quite nicely at funding taxpayer unfriendly special interest groups and non-profits. It succeeds handsomely at invigorating the growth of Government and bureaucracy. In short, it is actually damaging to the Economy because it creates billions of dollars in federal programs which are left to taxpayers to pay for after the Stimulus funds run out. Not to mention they must pay back the original money, with interest. This is not stimulating to Tennessee or Tennesseans. Our elected officials should understand this and refuse to accept such tremendous financial burdens in the name of fiscal responsibility. (But you know they won’t!)
Read at Conservablogs.com