The SS Proposal Gets Even More Bizarre

Apparently the President’s proposal is to significantly reduce the COLAs for Social Security over time. The problem being:

The Social Security Administration calculates that the system will deplete its reserve of Treasury bonds by 2041, after which it will be able to pay out in benefits only what it receives in taxes. But even then, benefits would be almost three-quarters what is currently promised, and considerably higher in inflation-adjusted terms than they are now. If nothing is done to Social Security, the system will be able to meet the president’s promise to ensure that all seniors receive a benefit larger than current levels.

He’s apparently going to make the system worse.

But remember that the trust fund is not a real obligation and the bonds in there can just be ignored? That would appear to be a rather bad idea from which to then move to this position:

Despite opposition from Democrats and a lukewarm response from the public, he intensified his push for private accounts financed by a portion of a worker’s payroll taxes. To pacify those worried about the risk associated with investment, the president, for the first time, said one of the investment options should be no-risk Treasury bonds.

I believe we now know where CMS learned it’s accounting practices.

Speaking of Speaking

I don’t do these often, but I found this kind of interesting:

Your Linguistic Profile:

70% General American English
10% Dixie
10% Upper Midwestern
5% Midwestern
5% Yankee

I grew up in Central Illinois, but spent many summers in Georgia with my Dad who worked for Lockheed and Martin Marietta there. The legacy of both continues. Of course, I’ll be heading to Greene County for the weekend with the relatives where pop is soda.

Trib Takes Guv to Woodshed

Rightfully:

A scathing audit released this week on one of the state’s most powerful agencies bolsters the impression that the Blagojevich administration is taking on the hue of its predecessor. The audit found so many troubling practices regarding how contracts were awarded and managed that Auditor Gen. William Holland turned the findings over to the Illinois attorney general to investigate.

This mess comes amid a growing list of cases in which the governor’s favored people seemingly have been beating the odds to get rich.

Unlike the state’s slot machines, blackjack tables and lottery tickets, this new game isn’t regulated … at least not on the surface.

A soup line of clout-heavy insiders profited from the bond work generated by a $10 billion pension deal Blagojevich pushed through the legislature.

Blagojevich’s campaign political director, John Wyma, has cashed in on his close relationship with the governor. Since being hired by Lehman Brothers to help land business in Illinois, Wyma has scored $400,000 for himself and nearly $2 billion for Lehman in state-connected bond work, according to filings with a government bond oversight board.

Lucrative rights to operate restaurants in revamped tollway oases have been granted to firms with ties to two members of Blagojevich’s kitchen cabinet. Both have raised oodles of campaign money for the governor.

Other close advisers-turned-lobbyists have been hired by hospital groups to influence action by a state board that the governor appoints. There are, however, supposed to be restrictions on lobbying of that board.

Blagojevich usually responds to these questions about insider-deals by attacking the messengers. This time, he should try something more credible and concrete. He should clear out the advisers who are making money off of him. And he should get the state to put all state contracts, including bond work, out for competitive bid.

Tone Deaf Governor

For all of his skills as a candidate, the Governor is completely tone deaf in relation to CMS with his first quote being:

“My understanding is that the conflict between the auditor general and CMS is sort of like a prize fight between accountants, OK?” the governor said. “There’s not a lot of muscle there but a lot of argument and quarrel.”

The strategy isn’t a horrible one if this was the first hint of these problems, but in this case, other Constitutional Officers have been involved on several of these issues including Hynes in relation to the time it takes to submit contracts.

The idea is to post-modernize the debate into a he said-he said argument between the two and stay above the fray, but in this case, for many reasons, this isn’t that easy to solve.

First, there is an arbiter of the legal issues called the AG and when she comes back with charges and clear findings, it comes down to state law.

Second, at this point, Holland has a lot more allies than does the Administration in the Lege. The Governor has angered most of the Democratic caucus at various times and the only real incentive is to go after him. He doesn’t have the political machine and 30 years of relationships that George Ryan had when he got into trouble.

The Republicans already have every reason to attack the guy, he just gave the Democrats a reason–to distance themselves from him and his falling poll numbers. When his numbers were up around 60%, people went with him because he had the public at his back, when that is gone, its better to oppose him if you are from a swing district and a Democrat. And safe seat Dems see little reason to back a guy who has cut him off at the shins.

Being difficult with the Lege can work–Edgar showed that, but you have to keep yourself popular and relatively clean.

Third, Holland worked for Phil Rock and knows the Lege well. He’s not just some hapless bureaucrat. He has long standing relationships on both sides of the aisle, and no one in the Lege is going to back the administration over him. He already did a bang up job on the audit response comments. As someone who has done a evaluation that include document reviews chosen from samples, everything in that audit stands as reasonable. He was smart in hitting back immediately instead of letting the administration get out in front of this and attack him.

Fourth, the audit provided a roadmap to those who want to follow-up and investigate what is going on–instead of just being one time report, this offers reporters months of stories with the documentation to back it up and a legit explanation to editors to give them the time to track down more examples.

Fifth, it hits at a time where the refrain amongst the chattering class is that he’s more of the same instead of changing business as usual. Combine this with number four and you have a meme starting just as the lines of attack for the general election are starting to get going.

Smelling Blood in the Water

I’ll go out on a limb and say Paul Campbell won’t be confirmed to head CMS–the audit is damning and his ridiculous claims that the audit gives them a chance to show off their good work is one of the most politically tone deaf statements ever heard in Springfield–right next to Wynn’s claim that he didn’t include the information on the Auditor’s office as a warning.

On top of that, Campbell is one of the few people in the entire fiasco with an easy to target problem–people don’t want to hear about state officials getting freebies and no one is going to defend him at the Statehouse.

The Economic Advantage of Safety Nets

One of the fascinating things about Barack Obama is his ability to boil down complex, but important issues to good soundbites. It is a skill he shares with Clinton and that too many damn Democrats can’t figure out–you don’t need a forty point policy paper to defend social security or unemployment or other issues, you need a simple statement that points to values and how the issue affects it. Lynn Sweet picked out one statement that is especially strong in a recent column on social security (my emphasis):

Obama talked about the origins of Social Security as a safety net for retirees who had nothing. It was intended to be the minimum, not the maximum, and never to take the place of regular savings and other investments. It was a way, said Obama, for people to share — and minimize — risk.

“Since Social Security was first signed in to law, almost 70 years ago, by James’ grandfather, at a time when FDR’s opponents were calling it a hoax that would never work and that some likened to communism,” said Obama, “there has been movement, there has been movement after movement, to get rid of the program for purely ideological reasons.

“Because some still believe that we can’t solve the problems we face as one American community, they think this country works better when we’re left to face fate by ourselves.”

The irony, said Obama, of this “all-out assault against every existing form of social insurance is that these safety nets are exactly what encourages each of us to be risk-takers, what encourages entrepreneurship, what allows us to pursue our individual ambitions.’

What’s funny about the quote is that the odious and statistically incompetent Charles Murray makes nearly the same point in defending unemployment insurance in his book Losing Ground. Two people could not be much further apart.

Obama comments on it over at his official blog

More on Sweet “blog”

From a Faithful ArchPundit Reader:

Agree on your point, but there was another recent article/column somehwere that also used this device (written like a blog) that TOTALLY MISSES THE POINT that the most recent entries come first and the first entries come last. Lynn’s column was therefore upside down.

I first kind of chuckled at it, but one of the more interesting things that does happen in blogging is how the story evolves and reading it from most recent to oldest does add an interesting element to how stories evolve so this is more important than one might think.

Ethics Win For Dems Appears to Be An Illinois Affair

Sweet writes that LaHood, Biggert and Kirk all pressured Hastert to return to the rules for the Ethics Committee that were in place last year.

Republican Rep. Ray LaHood of East Peoria said he told Hastert to back down while flying on Air Force One after the April 19 dedication of the Lincoln library.

LaHood said he told the speaker: “You’re the one who has got to be able to turn this thing around. Because of your special relationship with DeLay and because you are the speaker and you are the one who changed the rules. . . . You’ve got to pivot, you probably have to eat a little crow, but we’ve got to get the ability for our members to go back home and talk about our issues.”

Kirk, from Highland Park, chairs the Tuesday Group, 45 moderates who wield enormous leverage. He said he told Hastert his group “felt that we should not change ethics rules in a partisan way.”

Biggert, a Hinsdale resident, said she talked to Hastert and said: “We needed to get our business done in the ethics committee, not on the front pages of the newspapers.”

Biggert’s line may simply be covering her butt, but traditionally Biggert isn’t on the right wing so who knows…

While there are still issues of staffing, the Democrats won this one, and more importantly, citizens did–the ethics deal made between the parties only served incumbents and not the integrity of the institution. If Democrats are to face more investigations because of this as well as DeLay–well good. That’s how it should be–not a farce of truce.

Doing it Differently

Wayyyyyy differently is taken on by the State Journal Register

GOV. ROD BLAGOJEVICH promised to change the way Illinois government does business. A harshly critical audit of Central Management Services released Tuesday would indicate maybe the governor’s administrators are doing things a bit too differently.

And that is putting Auditor General Bill Holland’s report in the kindest possible light.

The audit raises serious concerns about how Illinois’ chief administrative agency has conducted its business in the two years ending June 30, 2004. Holland’s report hit like a meteorite Tuesday, streaking in with a lot of heat and raising a huge cloud of dust.

Actually, the editorial is far too easy on CMS. The response section is one of the most obnoxious and deluded responses to an audit I’ve ever seen and I’ve seen a few doozies. It was a complete denial of reality that was competently documented by Holland and his team.

Unfortunately, we can’t do it based on faith alone

Community Development Block Grant funds have been targeted by the Bush Administration to be cut. The problem is that block grant funding was the choice over specific forms of aid years ago to give states and localities more flexibility–now the Bush Administration wants to simply end them.

CDBG funds often are used for gap financing for affordable housing. When a project is under development and the numbers can’t quite make it a profitable without a boost, wise development officials apply CDBG funds to make up the difference (horribly simplified, but most should get the point). If these funds disappear, cities across America will see a significant decrease in production of affordable housing units by private developers.

On top of that, HOPE VI housing which is mixed income and provides significant support to families residing in them is being cut, because it hit the 100,000 unit mark. Kit Bond of Missouri is attacking these cuts because as one of the movers behind the movement towards HOPE VI programs to help the working poor, the original goal was to see how the program worked–and now that is has been largely successful in providing a more humane and integrated on class at least setting for families, the program is being pulled.

Richard Daley is protesting the cuts to CDBG, but to go further, the two most successful programs in providing livable and decent housing to low-income families are on the chopping block.

Especially in the case of CDBG funding, the disconnect between the President’s babbling about faith based initiatives and reality comes home:

The city’s block grant money goes for such things as “affordable housing, youth programming, health clinics, job training and support services for seniors, domestic violence victims and others with special needs,” Daley said at a news conference at Neighborhood Housing Services, 1279 N. Milwaukee Ave.

That not-for-profit group is one of 350 local organizations, from the YMCA of Metropolitan Chicago to Hull House Association, that receive federal grant monies funneled through the city.

Officials in Washington talk about using faith-based organizations to help people, said Rev. Richard Tolliver, president of St. Edmund’s Redevelopment Corp., which has built eight housing developments with more than 500 living units with the help of $3.6 million in grants.

“Unfortunately, we can’t do it based on faith alone,” he said.

Funding over the years has declined. Chicago received $95.5 million in 2005, nearly $14 million less than the city received in 2002. If Bush’s proposal for next year is approved by Congress, it could mean a loss of almost $48 million, according to the mayor.

CDBG funding isn’t only for housing, but is the primary issue for which I have some understanding of the impact in terms of these funds.

Cities have largely been expected to warehouse the poorest amongst us for some time. Mayors like Daley, despite all of his faults, have done an admirable job getting the most out of these funds and effectively utilized the funds to help revitalize slums, the overall level of funding for these programs isn’t that high and for the dollar most cities use them very effectively.