Obama Concedes On Jobs Funding; Won't Use TARP Money

W.H. Won't Use Repaid Bank Funds For Jobs Plan


In his State of the Union address, President Barack Obama proposed using $30 billion in bailout funds for small-business lending. He later repeated the idea in Nashua, N.H.

Both times, Obama said he would use bailout funds that were “repaid” to the government by financial firms — conjuring up the politically appealing image of taking money from a chastened Wall Street and sending it straight to Main Street.

But Obama’s description didn’t give an accurate picture of how he plans to pay for the new program. And his comments sowed controversy and confusion on Capitol Hill.

In reality, the administration is proposing taking $30 billion from the unspent portion of the Troubled Asset Relief Program to seed the new initiative, not — as Obama’s language suggested — taking the funds from the approximately $170 billion that banks have returned to government coffers.

While that distinction might seems painfully technical, it carries significant political weight on Capitol Hill. The reason: The legislation creating TARP dictates that repaid funds must go to pay down the national debt.

The program as “originally outlined” was “totally inconsistent with the law,” Sen. Judd Gregg (R-N.H.) said in an interview with POLITICO.

Earlier this week, Gregg accused Obama of trying to create a “slush fund” from the repaid TARP cash. And he tore into White House budget chief Peter Orszag based on the description that repaid TARP dollars would be used to fund it.

“You don't appear to understand the law! The law is very clear!” Gregg told Orszag during a hearing on the administration’s budget. He went on to read the TARP law to Orszag: “ ‘The monies recouped from the TARP shall be paid into the general fund of the treasury for the reduction of the public debt.’ It's not for a piggy bank because you're concerned about lending to small businesses… This money is to reduce the debt of our children!”

But it wasn’t just Republicans who had concerns. Sen. Mark Warner (D-Va.), who has been working with the administration to create a small-business program, said he sought clarification on the issue from the administration on Thursday.

“This is a major difference, particularly for some of my Republican colleagues,” Warner said. “It makes, I think, a stronger case that it fits within the footprint of the original TARP,” shoring up financial system and sending credit where it’s needed.

“And clearly one of the areas where credit is not moving is to small businesses,” Warner said.

White House officials didn’t say why Obama specifically talked of using “repaid” funds in both settings —including the State of the Union address, in which every word is carefully vetted.

But they say Obama didn’t intend to suggest that the actual repaid TARP funds would be used.

“The policy was always to transfer $30 billion of existing unused TARP authority to a new small-business lending fund, not to use repayments,” said Gene Sperling, a top Treasury adviser. “The moment we realized that there was any confusion we took immediate steps to clarify. The point the President and others were making was that the combination of repayments and increased financial stability … allowed there to be TARP funds available to have a special reserve for small banks and small businesses.”

But Greggsays he sees politics at work and that he urged Treasury not to use TARP to fund the program because it would only tempt Congress to dip into TARP for other purposes as well.

“They were trying to set up a political juxtaposition here of having [bailout] money that was used to stabilize the big banks used to help the little banks. That’s the politics, and that’s all this is about, is politics,” he said.

Gregg said he had two extensive discussions with Treasury Secretary Timothy Geithner on Wednesday and Thursday in which Geithner explained that they were using unallocated TARP authority. Gregg still believes the program is bad policy and outside the intent of TARP.

And he thinks the officials who green-lighted the original rhetoric in the State of the Union speech didn’t understand what the words meant. “I think Treasury did understand what they were doing, but there was some miscommunication somewhere along the line, and the politics of the presentation caused them to make a statement that was totally unsupportable as a practical legal act.”

Administration officials have changed the way they describe the program. On Thursday, Geithner told the Senate Budget Committee that “we will support legislation that would take existing authority that we've reserved under the TARP,” to fund the new lending program.

Obama, too, has changed his rhetoric. Speaking to a group of small business owners Friday, the president described the initiative as a lending program “that would take $30 billion of the fund originally used to rescue big banks on Wall Street, and use it to provide lending capital to community banks on Main Street.”

Warner said he plans to introduce legislation along the lines of the administration’s proposal — though not necessarily exactly the same — as early as next week. And despite the confusion on funding, he’s optimistic he can get bipartisan support.


Sources: Politico, CNN, Zimbio

Gregg & Orszag Face-Off Over Obama's 2011 Budget

Senator Grills White House Budget Director




Sources: CNN

Pres. Obama To Unveil Omnibus $3.8 Trillion 2010 Budget

Visit msnbc.com for breaking news, world news, and news about the economy

Five years, $5.08 Trillion In Debt


President Barack Obama’s new $3.83 trillion budget — on its way to Congress Monday — anticipates an even worse deficit this year than last and no big improvement until the economy improves and the nation sheds the crushing costs of two wars overseas.

It’s a bleak, nerve-wracking landscape for any White House, but the president is still betting on significant new spending for education and clean energy initiatives, including billions in loan guarantees for the nuclear power industry.

He would hire thousands of new personnel to process veterans’ claims faster, and amid everything else, wants billions to resolve the complaints of soldiers and airmen exposed to Agent Orange in the Vietnam War.

But behind the brave face, Obama’s budget anticipates that Iraq and Afghanistan war funding will hover near $160 billion for both 2010 and 2011— far more than he had hoped when elected and only modestly less than in the last years of the Bush Administration.

The strain shows itself in the new deficit projections, far worse than what the White House forecast in its first budget at this time a year ago.

After a record $1.4 trillion shortfall in 2009, the administration now says the red ink will reach $1.56 trillion this year and be little better, $1.27 trillion in 2011.

In fact, it’s not until 2014 and 2015— when Obama hopes to be in his second term— that he has any hope of deficits approaching a sustainable level. Even then he is banking heavily on a new bipartisan fiscal commission to really finish the job.

The outlook— more pessimistic than Congressional Budget Office deficit estimates last week—adds up to $5.08 trillion in red ink over the next five years. That’s $1.32 trillion or 35% more than the White House predicted 12 months ago; about two-thirds of this deterioration can be traced directly back to lower revenues and the higher cost of the wars.

Obama’s response thus far has been to allow high-end Bush-era tax breaks to expire after 2010 for those earning more than $250,000 and to impose a three-year freeze on domestic spending. A new levy on big banks would help recoup government losses from the Treasury’s financial industry rescue plan, and he is again targeting oil, gas and coal tax preferences worth about $40 billion over 10 years.

In a conference call with reporters late Sunday, White House officials portrayed the budget as pragmatic and leaning neither to the left or right. But the president’s credibility is sure to be tested by the effectiveness of his promised freeze, impacting about $447 billion in annual appropriations.

The Environmental Protection Agency’s new $10 billion budget reflects a cut of about 3% or $278 million, for example. This leaves less money to sustain the very rapid growth seen last year in clean water programs. And annual funding for the Great Lakes restoration initiative — a big priority for Obama’s Chicago friends and House Appropriations Committee Chairman David Obey (D-Wis.) —will be scaled back from $475 million last year to $300 million now.

But on balance, the president’s plan seems less restrictive in many areas than lawmakers had anticipated. With the Senate having just passed a $1.9 trillion debt ceiling increase last week, fiscal moderates in his own party may insist on even tighter limits.

Obama begins with a built-in cushion since about $5 billion in 2010 Census spending won’t have to be repeated in 2011. A big portion of expanded Pell Grant funding for low-income college students is being treated as a mandatory cost outside the freeze covering the Education Department’s discretionary budget. And both Veterans Affairs and Homeland Security are exempted altogether and are expected to get combined spending increases of $5 billion.

In the case of education, a top priority for the president, the department’s appropriations would grow by about $3.5 billion to $49.7 billion, a 7.5% increase. But when Pell Grants are counted, the total increase is closer to $11.4 billion or 16% above current spending.

The Energy Department’s budget would grow by about $1.8 billion or 6.8%. And to stretch these dollars further, Obama is devoting $500 million to a new credit program with the potential to generate up to $36 billion in loan guarantees for the nuclear power industry.

Other departments like Health and Human Services or Labor receive much smaller increases, more in the range of inflation or less. But within these totals, the National Institutes of Health would grow by about $1 billion or 3%. Community health centers and Head Start are also promised increases, and a teen pregnancy program would be expanded from $100 million to almost $180 million.

Mindful of the strain on state and local law enforcement budgets, the administration proposes increased funding for the COP’s program within the Justice Department. And the Homeland Security budget includes $200 million in new grant funding to help cities pay for beefed-up security in the event of a Guantanamo detainee being tried in a local federal court.

The budget’s increased war funding is not entirely surprising given Obama’s decision to add more U.S. forces in Afghanistan. And his early estimates for 2011 in last year’s budget were always suspect and more of a “plug” than real.

Nonetheless, seeing everything in a single budget brings the war costs more into focus. Democrats are increasingly agitated by the pace of withdrawal from Iraq, and the combined costs of the two wars is striking -– especially when measured against the much more hopeful rhetoric of Obama’s campaign.

The president’s 2010 defense budget a year ago requested $130 billion for operations in Afghanistan and Iraq and just $50 billion in 2011. The new budget ramps up 2010 spending to $163 billion and, for 2011, requests $159 billion in overseas contingency funds for the military.

This reverses the drop in war-related spending seen in fiscal 2009, which ended last Sept. 30 and was a transition year of sorts between the two administrations. When compared to the peak war spending of the Bush years, Obama is only about 10% below Bush’s annual average of $176 billion in fiscal years 2007 and 2008—the time of the Iraq war surge.

Core defense spending is also feeling the strain, and the president’s $549 billion request reflects less than 2% real growth over inflation,

At a time when Obama is emphasizing jobs creation, this sets up what could be bitter election-year fights with Democrats over plans to halt airplane and truck production important to employment California and the Midwest.

Indiana, for example, promises to be a tough battleground for Sen. Evan Bayh and fellow Democrats in the House, but the defense budget would terminate Army purchases of HMMWV vehicles built by AM General in the northern portion of the state.

Defense Secretary Robert Gates is expected to redouble his campaign against the C-17 transport plane this year, much as he successfully went after F-22 production last year. And while the Pentagon is committing still more money to the F-35 joint strike fighter, production will slip a year to allow more testing, and Gates seems determined to take on lawmakers again over their insistence that that there be a second manufacturer to produce engines for the fighter.

The 2011 budget debate won’t hit full stride until this spring, but Democrats may move earlier than usual on a supplemental spending bill for the current fiscal year.

The Defense Department is seeking $33 billion in additional war-related funding, on top of which the State Department will also be receiving additional funds for its beefed up operations in Afghanistan. Rep. John Murtha (D—Pa.), chairman of the House defense appropriations panel, wants to include any requests related to Haiti in the same package, and the budget reflects at least two supplemental spending requests for 2010 from domestic departments.

The Homeland Security budget anticipates $3.6 billion in disaster-related funds for FEMA, and the VA may seek another $13.4 billion, much of it in relationship with a fund to resolve health claims related to exposure to Agent Orange.


Sources: Politico, MSNBC

U.S. Deficit Out Of Control! $1.6 Trillion! Freeze Not Enough!

Visit msnbc.com for breaking news, world news, and news about the economy

Obama White House To Paint Grim Fiscal Picture


The White House will predict a $1.6 trillion U.S. budget deficit in the 2010 fiscal year, a fresh record and the biggest since World War Two as a share of the economy, a congressional source told Reuters on Sunday.

The grim forecast adds to the challenges facing President Barack Obama, who is emphasizing a message of fiscal discipline but is also seeking stimulus measures to boost the struggling economy in the near term.

Obama's budget proposal, which will be released at 10 a.m. EST on Monday, will predict a narrowing of the deficits to $700 billion by fiscal 2013 before they gradually rise back to $1 trillion by the end of the decade, the Capitol Hill source said.

He will submit his spending blueprint for the 2011 fiscal year that begins October 1 and runs through September 30 next year.

Obama is trying to strike a balance between long-term deficit reduction and easing the pain of double-digit unemployment through proposals such as tax credits to encourage business hiring and tax breaks for middle class families.

He is to deliver remarks on the U.S. fiscal situation at 10:45 a.m. EST.

Visit msnbc.com for breaking news, world news, and news about the economy

Criticized by Republicans as a big spender, Obama used his State of the Union address last week to tell Americans he would dig the country out of a "massive fiscal hole."

That hole is even deeper than previously believed, according to the estimate by the White House's Office of Management and Budget.

The estimate for the current 2010 fiscal year that ends September 30 is significantly higher than the $1.35 trillion figure forecast by the nonpartisan Congressional Budget Office last week.

Despite the difference, both estimates indicate that the deficit will continue to hover near 10 percent of gross domestic product, a level not seen since World War Two, when measured as a percentage of the economy.

Last year, the government posted a $1.4 trillion deficit, equivalent to 9.9 percent of GDP.

Visit msnbc.com for breaking news, world news, and news about the economy

THREE-YEAR FREEZE WON'T BE ENOUGH

In his budget, Obama will propose a three-year freeze on some domestic programs to save $20 billion next year and $250 billion over the coming decade.

But that will not be enough to get deficits down permanently to the 3 percent of GDP that most economists consider sustainable.

Deficits are projected to fall as the economy recovers, but they will still average roughly 4.5 percent of GDP over the coming decade, according to the estimate.

Deficits are expected to rise again toward the end of the decade due to the increasing cost of retirement and healthcare programs as the "baby boom" generation retires.

Obama has warned that the burgeoning U.S. debt could unnerve U.S. financial markets, driving up borrowing costs and putting future economic growth at risk.

China, the biggest foreign holder of U.S. Treasuries, has urged the United States to get its fiscal house in order.

The bleak numbers could help build support for a bipartisan commission proposed by the White House that would recommend ways to address the budget problems.

Obama and his fellow Democrats face a growing voter backlash for the aggressive spending measures they have taken to stimulate the economy.

But Democrats point out that most of the fiscal mess has been inherited from the previous administration of Republican George W. Bush, who cut taxes and created an expensive prescription drug-benefit while pursuing wars in Iraq and Afghanistan.

The recession, which began in December 2007, also worsened the fiscal picture by depressing government revenues while forcing up spending on unemployment benefits and other safety-net programs.

The U.S. economy returned to growth last year after the worst downturn since the 1930s.


Sources: Reuters, NY Times, The Daily Beast, MSNBC, CNBC

Peter Orszag Has A Love Child? NY Post Says Yes!

White House Budget Director Ditched Pregnant Girlfriend For ABC News Gal



President Obama’s budget guru has a secret love child — with the woman he jilted before hooking up with his hot new fiance, The Post has learned.

White House budget director Peter Orszag’s ex, shipping heiress Claire Milonas, gave birth to little Tatiana Zoe in New York Nov. 17. That was just six weeks before Orzsag and ABC news babe Bianna Golodryga gleefully announced their engagement on national TV and in the press.

Orszag and Milonas, the daughter of New York-based Greek shipping magnate Spiros Milonas, were a serious item when he met the stunning Golodgryga at the White House correspondents' dinner.

‘‘Claire told Peter she was pregnant, and he said he’d marry her — and then something went wrong,’’ a source close to the situation told The Post.

‘‘Orszag knocked up (Claire) and now is dumping her to marry Bianna,’’ another insider said.

Orszag and Milonas released this statement:

"We were in a committed relationship until the spring of 2009. In November, Claire gave birth to a beautiful baby girl. Although we are no longer together, we are both thrilled she is happy and healthy, and we would hope that everyone will respect her privacy."

Claire’s family and close-knit inner circle were stunned by Orszag’s boorish behavior — and her tycoon dad, 82, hit the roof.

‘‘He had to be calmed down,’’ recalled one close family friend.

Milonas, a brainy Yale grad and Harvard MBA who had her own venture capital firm, was three months pregnant when Orszag kicked her to the curb.

A source close to Orszag disputed the idea that Claire got jilted or that there were hard feelings. "The relationship was clearly over before he met Bianna," said the source.

The source said Orszag's relationship with Milonas ended in March, more than a month before the Correspondents' dinner, and that Orszag and Gologyrga didn't start dating until about a month after they met.



Sources: NY Post, Huffington Post, Youtube

"Congress Before Christmas", Sen. Kit Bond Blasts Dems

Sen. Bond Slams Dems in Christmas Poem

Here Senator Kit Bond (Rep.) sits down with his dog, Tiger, and Shana Marchio's (his Communications Director) dog, Pooley, and gives his rendition of "Twas the Night Before Christmas" originally penned by Clement Clarke Moore.

Sorry about the sound quality of this video.

I think its fuzzy due to the way it was uploaded on Youtube.

You can blame Bond's Communications Director or the equipment he used to record with.

That's the spirit Sen. Bond!

He turns a sour situation into lemonade with this prose.







Here's the full script I borrowed from TPM:



'Twas the week before Christmas, when all through the Hill Not a creature was stirring, not even a bill; The walls were all marked by junk not so jolly Dead measures Harry'd flung in his health care folly;

The members were nestled all snug in their steads,
While visions of home danced in their heads;
And mamma in her 'travel clothes', and I with my bag,
Hoped Harry's bill had hit the final snag,

When out of CBO there arose such a clatter,
We knew the media would never ask what's the matter.
Away to the sink I flew like a flash,
Threw up in the basin o'er the loss of our cash.

The score from the deal from Harry's back-room
Showed a massive debt explosion coming too soon,
When, what to my wondering eyes should appear,
But the President and 8 Democrats trembling with fear!

Obama admonished them all filibusters to block
No matter if it meant we'd all soon be in hock
More rapid than eagles his minions they came,
And he whistled, and shouted, and prepared to lay blame;

Now Schumer, now Sanders, now Durbin and Harkin
On Landrieu, on Nelson, on Bayh and Lincoln
To the well of the Senate, to the top of the wall
Vote away! Vote Away! Vote Away all!

As spending before the wild deficits fly
Roll over all obstacles, mount to the sky
So up to the house-top, the debt it flew
With a sleigh full of goodies, cap-and-trade too!

And then, in a twinkling, I heard on the roofs
The prancing and pawing of White House goofs.
As I drew in my hand, and was turning around,
Down the chimney Pete Orszag came with a bound.

He was dressed all in promises, from his head to his foot,
Carrying ads from big Pharma's loot
A bundle of payoffs he had flung on his back,
He looked like a peddler just opening his pack.

His eyes -- how they twinkled! His dimples how merry!
He and the White House got the goods from old Harry!
His droll little mouth was drawn up like a bow,
"Don't bother reading it; no need to go slow."

Ignore all those voters, it's ok if they seethe,
Suck it up and sell it, even if they are peeved.
These folks have had their financial confidence shaken;
It will be years 'til they know how badly they've been taken.

He was happy and cheerful, a right jolly old elf,
But I could not catch the holiday spirit myself;
How far away from common sense we've been led,
Our kids and our grandkids have their futures to dread;

He spoke not a word, but turned with a jerk,
Planning and plotting, to make the numbers work,
He distributed the benefits as far as can be;
And dreamed up new taxes, levies and fees.
With a flick of his wrist he waived off the Minority,
In a scary display of his unelected authority.
To all he warned, the voters at home be ignored,
They have figured out it's their ox t'will be gored.



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Sources: The Daily Beast, TPM, The Hill, Youtube, Google Maps

White House Nervous About High Unemployment Rate (10.2%) & Crazy Spending...Wake Up Charlotte!

W.H. feels pressure on jobs, spending



Caught between Tuesday’s election results and Friday’s unemployment numbers, the White House faces increased pressure to slow spending next year but also to produce more Main Street jobs to match Wall Street’s recovery.

Going into the 2011 budget cycle, the administration now appears on course to impose close to a freeze on new discretionary appropriations after the double-barrel increases in 2009 and 2010. The costs of the Afghanistan war are a wild card, but even before the polls closed Tuesday, White House Budget Director Peter Orszag was talking up deficit reduction in New York, and his earlier guidance to agencies calls for alternatives that assume a freeze at 2010 funding levels, or a 5 percent reduction.

Republicans warn that President Barack Obama can’t ignore what they see as Tuesday’s backlash against the “overspending” and “overgovernment” in his first year in office. “The Obama administration would do well not to underestimate the intensity of voter opinion on these issues — or the impact they have on independent voters,” Republican pollster Neil Newhouse told POLITICO.

Matched against this sentiment is the increased frustration among Democrats over the jobs outlook — and a continued stalemate with the White House over funding for highway construction.

The Labor Department will release new monthly numbers Friday, and Democrats anticipate no improvement over September’s 9.8 percent unemployment rate. “We face a long road back,” said Rep. Jim McDermott (D-Wash.).

To help the jobless through the holidays, Congress sent Obama a bill Thursday that would add up to 20 weeks in assistance for those who have exhausted their unemployment benefits. But the future of the highway program, hurt by a drop-off in gasoline tax revenues, remains a bone of contention.

The White House has said it wants to extend the current program only through the 2010 elections and then address increased funding. But 15 states are already so short of cash they can’t meet their 20 percent matching requirement. And that number could double next year — greatly reducing the chance to let contracts and create jobs.

House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) has argued for an upfront investment of $80 billion over two years to get over this hurdle.

“The concrete is cracking,” Oberstar said, laughing, hinting that the administration’s resistance is weakening. And though he denies any role in the discussions, White House chief of staff Rahm Emanuel keeps popping up in conversations, drawn into the fray through his ties to old House colleagues, seen in the gym or at dinner.

The big question is where the money will come from. Rep. Steve LaTourette (R-Ohio) said he is prepared to round up 30 Republican votes for a plan tapping unspent stimulus funds — an idea that he said had been discussed by Emanuel with an old Chicago friend, Rep. Jerry Costello (D-Ill.). House Appropriations Committee Chairman Dave Obey (D-Wis.) said he knew nothing of this approach and would oppose it — leaving others to look for revenues.

House Majority Whip Jim Clyburn is most insistent on action requiring some give from the White House.

“I’ve told the administration, I don’t care who says it, that [it] is absolutely wrongheaded,” the South Carolina Democrat told POLITICO. “We have to reauthorize that highway bill for at least four years. I would prefer five or six,” Clyburn said, even if it meant imposing a securities transaction tax on the financial community to cover the costs.

“There are some painless ways to fund the highway bill,” Clyburn said. “Transaction taxes, that’s a painless way; that’s a painless way.”

“Where are the shared contributions to all this? If you’re sitting there on Wall Street, if you’re Goldman Sachs, if you’re making all this money, if you got all this federal money [in a] bailout, and you are paying all these big bonuses to your folks, where is your contribution to this recovery? That’s why it’s painless.”

Rep. Peter DeFazio, a major player on the House Transportation and Infrastructure Committee and a gymmate of Emanuel’s, has been drafting legislation along these lines: “Let Wall Street Pay for the Restoration of Main Street Act.” And the Oregon Democrat argues that the proposed 0.25 percent excise tax would have a negligible impact on the average investor and yield sufficient revenues to both cover increased highway funding and make a down payment toward reducing the deficit.

The financial industry is sure to fight any such levy and enjoys powerful allies, such as Sen. Chuck Schumer (D-N.Y.). But the anti-Wall Street sentiment in Congress goes well beyond DeFazio’s populist caucus. And the administration admits it will also be looking for new sources of revenue as part of its 2011 budget, due in February.

In this context, some transaction tax could potentially be part of a compromise in smoothing out the adjustment in capital gains taxes as Congress and the president decide which of the Bush-era income taxes will survive — and which will expire.

The capital gains tax rate is slated to rise from 15 percent to 20 percent, but if House Democrats succeed in adding their surtax on the wealthy, it could be a swing of 15 percent to 25.4 percent for big investors in January 2011. That’s enough to have some officials worried about the impact on the markets as individuals cash in on gains at the end of next year, and one option would be to use transaction tax revenues to craft a gentler glide path.

Obama in the past has cast himself as a supporter of long-term investments encouraged by capital gains tax breaks. By contrast, advocates of a transaction tax argue that it would fall more heavily on frequent traders and short-term speculators.

“It would be a good thing if we could do it internationally, but those transactions are so internationally mobile you can’t do it in one country,” House Financial Services Committee Chairman Barney Frank (D-Mass.) told POLITICO. “Stocks trade on multiple exchanges. That’s one of the few where the business community has a legitimate anti-competitive argument.”





Unemployment tops 10 percent


Democrats – headed into an historic health care vote this weekend — got smacked in the face with a 10.2 percent unemployment rate in October, the government reported Friday.

The 10.2 percent figure is well above the 9.9 percent that economists expected and breaks the psychological barrier of 10 percent, breaking double digits for the first time in 26 years. It's the last headline the Obama administration wanted to see going into the House healthcare vote.

In all, employers shed 190,000 non-farm jobs last month.

The tough numbers arm House Republicans with fresh political ammo against the trillion-dollar House health care bill, which could come to a vote as early as Saturday. The GOP has been relentlessly pushing the narrative that Democrats obsessed with creating ever-bigger government at the expense of the economy.

"As unemployment tops 10 percent this holiday season, Republicans have put jobs and the economy first, and are focused on developing real solutions that will put Americans back to work," House Minority Whip Eric Cantor (R-Va.) said. "Increasing taxes on small business, as Democrats will do to pay for government run health care, is the wrong approach."

Even thought it was a point higher than expected, the upward trend in unemployment comes as no surprise to economists and administration officials alike. Nonetheless, the increase is an uncomfortable reminder for the Obama administration that they’re facing a long string of bad headlines on the economy, despite other evidence that the economy is shaking off the recession.

There’s wide consensus that the jobless rate will surpass 10 percent before it starts to head back down, and it could remain above 10 percent well into 2010. Hiring typically lags behind other signs of economic recovery in a recession, and this recession has seen deeper job cuts than previous recessions.

It’s also sure to up the pressure on Democrats to take steps to boost job creation – all while being careful not to do anything large enough to earn the label of “stimulus,” which would suggest that the first one they did this year didn’t work.

Democrats did what they could to insulate themselves ahead of the October jobs report, clearing an extension for jobless benefits Thursday, as well as some tax breaks, including an expanded homebuyer tax credit.

“The bill will mark another step toward a boost in our economic growth and it will make critical investments for our families and our workers,” House Speaker Nancy Pelosi said Thursday.





Charlotte Leaders Give Harry Jones A Bonus, Cut Mental Health Care...Vote No Next Elections!


Charlotte Politicians especially the Democrats, think just because Anthony Foxx recently slid into Mayor McCrory's seat, everything will be smooth sailing from here on out.

Their arrogant behavior demonstrated by giving Charlotte-Mecklenburg County Harry Jones a $38,000 Bonus he does NOT deserve, proves Charlotte's Leaders actually think they rule the roost and that Voters are Stupid!

Notice how they didn't approve of Jones' bonus until AFTER Foxx won the Mayor's race. Sneaky bunch aren't they?

If Charlotte Politicians were bold and arrogant enough to pull this stunt, voters can be assured that when they get some more Stimulus Funds into their hands its going to be wasted on experiments and junk just like in the past.

Nothing valuable or helpful to Constituents. No, instead that money will be wasted fulfilling personal Political Favors and other junk, along with more Property Tax Increases for voters (low income and middle class citizens only) of course.

Well guess what people??

In case you've missed the latest news reports Democrats recently lost important races in Virginia, New Jersey and New York City!

NY-23 was just a mercy win, not anything to really brag about.

Perhaps Charlotte's Leaders aren't aware of this fact but Virginia is a key state for Political victory.

Voters who were fed up with status quo drama and broken campaign promises showed their displeasure at the polls on Super Tuesday 2009.

If Anthony Foxx does a poor job (I hope he doesn't) and if Pres. Obama doesn't get this country's High Unemployment Rate (10% and rising) situation under control, Democrats will NOT survive another sweeping victory like 2008 for a long time!

This includes North Carolina because Senator Richard Burr (R-NC) is looking pretty good to voters right about now. Including Democrat voters.

Only a few dumb diehards are still voting Straight Tickets or along strict Partisan party lines.

There are now more Dems voting for Republicans, more Republicans voting for Dems, more Black voters casting ballots for White Candidates and Independent Voters doing their own thing.

Do Charlotte's Leaders really think that Dirty Politics, the Charlotte Observer, Law degrees, Fraternity brothers or Sorority sisters will be able to save them during the next two elections if they continue this Tax and Spend, Public Corruption, Cronyism crap?

Do they also really think Partisan Politics is the answer to longevity in Public Office?

If Charlotte Politicians especially Dems, really believe those false ideologies I have some swamp land in Florida I want to sell them. Ha Ha!

So....

If Charlotte's Leaders especially Dems, keep up their same status quo stupidity, during the next two elections (2011 & 2012) NOT even Black Voters are going to support them.

You think that Voters, especially Black Voters are stupid??

Just ask former Greensboro Mayor Yvonne Johnson or Creigh Deeds.

While your at it also check out the Atlanta Mayor's Runoff election scheduled to take place this December between Caucasian candidate Mary Norwood and African-American candidate Kasim Reed.

People are tired of Status Quo Politics!

Charlotte Leaders you better wake up and stop being Arrogant or your days in Public Office will be short lived.

Here's a word to the wise: "He who laughs first, laughs last".






Jones gets bonus but total pay is same


Mecklenburg County Manager Harry Jones will receive a $38,400 performance bonus, but his total compensation remains the same as last year, under a deal unanimously approved Wednesday by county commissioners.

Charlotte-Mecklenburg County Commissioners praised Jones for, among other things, leading the county during a difficult economic time.

The "pay-at-risk" money - which commissioners have in previous years called a performance bonus - is part of an overall $302,854 compensation package. It also includes $215,655 in base salary.

The pay plan keeps Jones' compensation the same as in 2008-09, though a board committee determined he actually would have been due more money this year, said commissioner Dumont Clarke.

Jones, however, asked that his pay be kept level. "That was his request," said commissioners' Chairman Jennifer Roberts. He "wants to be treated like all the other county employees." The county didn't award any merit raises this year.

Jones' evaluation has been in the works for weeks, with talks largely being kept private initially as allowed by state law.

But some commissioners acknowledged last month that paying the money could raise questions in light of steep budget cuts across the county. Two other local public officials - Charlotte City Manager Curt Walton and Charlotte-Mecklenburg Schools Superintendent Peter Gorman - declined merit raises or bonuses for themselves and staff to help save money.

Jones is eligible for a higher bonus than Gorman or Walton, up to 30 percent of his base salary.

Commissioners Chair Jennifer Roberts said the board had a "difficult conversation" about the pay plan because of the economic conditions.

Still, commissioners also have said they wanted to reward Jones for meeting goals previously outlined by the board.

Clarke said Jones told commissioners earlier Tuesday evening that 2008-09 was both his most challenging and best year as manager.

Roberts said Jones "has done a very, very good job, an excellent job as manager in a very difficult year." She cited Jones' work addressing budget cuts because of falling tax revenues and his work on the Critical Needs Task Force to help address social services needs in the community.

But the county also faced questions about inadequate accounting at the Department of Social Services, including an investigation into possible misused money in a charity program for Foster Children. The county announced steps to help shore up practices within DSS, including putting its finances under control of the main county finance department.

Mecklenburg has offered bonuses to the manager for years, but decided five years ago to restructure the pay system to reflect a CEO-style package of a base salary with another piece of pay tied to performance.

Under the plan, Jones is eligible for a bonus of up to 30 percent of his annual salary based on a series of criteria, including how well the county performs on annual goals and a management plan approved by commissioners. Based on his current salary, he could have received a bonus up to about $65,000 this year.

Jones has not received the full bonus since commissioners approved the new pay structure in 2004.

Clarke said Jones' performance in the past year earned him more money. He said he's being paid about 10 percent less than what his performance score called for.

Cuts in mental health

Also on Tuesday, commissioners approved about $2.76million worth of service cuts to the county's Area Mental Health department because of reduced money from the state. The state cuts were actually larger, but county staff has promised $3.7 million to help make up the gap.

Jones said he hasn't yet identified where the money would come from.




Foxx: No property tax hike for streetcar


Democratic mayoral candidate Anthony Foxx said Thursday he wouldn't raise property taxes to pay for a streetcar, despite his vote to move ahead with the project and suggestions from city staff that a hike may be needed.

"We aren't proposing or considering any increase in property taxes, and now would be a terrible time to think of that," he told the Observer. "I will not raise property taxes for the streetcar."

The streetcar and property tax issues came up when Foxx and Republican John Lassiter spoke to a luncheon of the Charlotte Regional Mortgage Lenders Association at the Myers Park Country Club.

Lassiter has also opposed property tax increases.

The rivals, both at-large city council members, were on opposite sides last month when council Democrats overrode Mayor Pat McCrory's veto of $4.5 million to start design work on the line.

The project, which would run from Johnson C. Smith University through uptown to Eastland Mall, would cost over $450 million. It's unclear where the money would come from.

"I could not promise to build something I didn't know how to pay for," Lassiter told the mortgage group.

Foxx defended his vote. He said the line would bring economic development to neighborhoods that need it. One study showed new development could generate $112million in new property taxes over 20 years.

"The future of our city is dependent on making every part ... a great place to live in," he told the group.

On Monday the city staff outlined ways to pay for the line to the council's Transportation Committee, which Foxx chairs. One option called for creating a special taxing district along the line and enacting a 4-cent tax hike for every $100 of taxable value. Another called for a citywide tax increase of 2 cents.

The city's current tax rate is 45.86cents.

"By supporting the streetcar, I'm not committing myself to a property tax increase," Foxx said later.

During the meeting, he defended his vote for a 2006 city budget that raised property taxes 9 percent - the first increase in at least a decade. Lassiter voted against the budget.

Foxx said the tax hike helped pay for the 70 new officers the police chief requested, more than in the no-new-tax budget supported by Lassiter and McCrory. It also brought in money for new roads and neighborhood improvements.

He suggested that without the tax hike, Charlotte's crime rate might not have gone down. Police say it's down 20percent from a year ago.

"You can't out a price on (a) family's sense of safety, put a value on the life saved because we had the additional police officers," he told the group.

Lassiter has criticized "unnecessary and unmanaged government spending" that he says had nothing to do with police, roads or neighborhoods.

Thursday he alluded to this year's General Assembly actions that raised the state sales tax by a penny and enacted surcharges of 2 percent or 3percent on some taxpayers. He told the mortgage lenders that he'll keep taxes down.

"We're in a high-taxed city in a high-taxed state," he said. "We've got to right the ship."



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Sources: Politico, McClatchy Newspapers, Charlotte Observer, Charmeck.org, Google Maps

G.O.P. & Centrists Advocating Delay To Kill HC Reform...Status Quo Politicians Who Don't Care About Voters

Huffington Post----

(During a recent CNN interview Peter Orszag explains how the G.O.P. is trying to use delay to kill Health Care Reform.)




President Obama's Director of the Office of Management and Budget, Peter Orszag, accused Senate Republicans on Sunday of trying to kill health care reform by dragging out the legislative process.

Appearing on CNN's State of the Union, Orszag labeled the attempts to push back the health care reform timeline as a "typical Washington bureaucratic game of if you don't have a better alternative just delay in hopes that that kills something."

"We want to get this done by August and we think we can," he added. "There are those that are advocating delay just as a desperation move to try and kill this."

Orszag stressed that not everyone calling for delay had sinister motives. The moderate Democrats in the Senate and Blue Dog Democrats in the House, he said, were "actively participating in the debate and that is great." This past week, Sens. Ben Nelson (D-Neb.) Mary Landrieu (La.) and Ron Wyden (Ore.), along with Independent Sen. Joe Lieberman (Conn.) and Maine Republican Sens. Olympia Snowe and Susan Collins signed a letter asking to slow down the health care reform debate.

Nevertheless, from Orszag's CNN appearance, it seemed clear that the administration thinks pushing back the health care timeline amounts to a death sentence for reform. On Sunday, the OMB Director repeated that the White House's goal was to have legislation passed through both the House and the Senate by the time both chambers break for August recess.

"It's still the goal," he said. "We think we can make that. We are working towards that."

He added that the White House had been in discussion over the weekend with many of the recalcitrant House Democrats and Senate Finance Committee members to hammer out some sort of agreement.

Sources: Huffington Post, CNN, Think Progress, Whitehouse.gov, Youtube

President Obama Terminates or Shrinks 121 Ineffective Government Programs

"We're doing everything that we can to create jobs and to get our economy moving while building a new foundation for lasting prosperity -- a foundation that invests in quality education, lowers health care costs, and develops new sources of energy powered by new jobs and industries.

But one of the pillars of this foundation is fiscal responsibility. We can no longer afford to spend as if deficits don't matter and waste is not our problem. We can no longer afford to leave the hard choices for the next budget, the next administration -- or the next generation.

That's why I've charged the Office of Management and Budget, led by Peter Orszag and Rob Nabors who are standing behind me today, with going through the budget -- program by program, item by item, line by line -- looking for areas where we can save taxpayer dollars."

"In addition, we're going to save money by eliminating unnecessary defense programs that do nothing to keep us safe, but rather prevent us from spending money on what does keep us safe. One example is a $465 million program to build an alternate engine for the Joint Strike Fighter. The Defense Department is already pleased with the engine it has. The engine it has works. The Pentagon does not want and does not plan to use the alternative version. That's why the Pentagon stopped requesting this funding two years ago. Yet it's still being funded.

These are just a few examples. But the point to remember is that there are consequences for this kind of spending. It makes the development of new tools for our military, like the Joint Strike Fighter, more expensive -- even prohibitively so -- and crowds out money that we could be using, for example, to improve our troops' quality of life and their safety and security. It makes government less effective. It makes our nation less resilient and less able to address immediate concerns and long-term challenges. And it leaves behind a massive burden for our children and grandchildren."


LORAN-C ($35 million). This long-range, radio-navigation system has been made obsolete by GPS.

· Abandoned Mine Lands Payments ($142 million). This program now pays to clean up mines that have already been cleaned up.

· Educational attaché, Paris, France ($632,000). The Department of Education can use e-mail, video conferencing, and modest travel to replace a full-time representative to UNESCO in Paris, France.

· Los Alamos Neutron Science Center refurbishment ($19 million). The linear accelerator housed here was built 30 years ago and no longer plays a critical role in weapons research.

· Even Start ($66 million). The most recent evaluation found no difference between families in the program and those not in it across 38 of 41 outcomes. Strengthening early childhood education is accomplished through significant investments in proven, more effective programs such as Head Start, Early Head Start, and the Early Learning Challenge Fund.

· Christopher Columbus Fellowship Foundation ($1 million). Due to high overhead, the Foundation would spend only 20 percent of its 2010 appropriation on the fellowships it awards.

· Advanced Earned Income Tax Credit ($125 million). This program benefits very few taxpayers, and has an extremely high error rate: GAO found that 80 percent of recipients did not meet at least one of its requirements.

· Javits Gifted and Talented Education Program ($7 million). Grants from this program go to only 15 school districts nationwide, and there are no empirical measures to judge their efficacy.

· Public Broadcasting Grants ($5 million). USDA made these grants to support rural public broadcasting stations in their conversions to digital broadcasting. That transition is now almost complete.

· Rail Line Relocation Grants ($25 million). This program, duplicative of a merit-based program, is loaded with earmarks.

President Obama's Budget for the Fiscal Year 2010.



Sources: Whitehouse.gov, MSNBC, Huffington Post, ABC News, USA Today, Political Base, Youtube