Tag Archives: Inefficiency

Brookings Institution: a $1.2 billion social program that doesn’t work

This is a surprising article coming from the leftist Brookings Institution.

They write:

Afterschool programs, or out-of-school time programs, burst into view in the late 1990s. The federal government—flush with budget surpluses of hundreds of billions—began spending more on the 21st Century Community Learning Centers (CCLC) program. The program was created by the 1994 Improving America’s Schools Act and had languished as an obscure provision to promote schools as community resources. Initially, the program received no appropriation, until Congress appropriated $40 million for it in 1998.

Spending exploded after the program pivoted to support afterschool programs. By 2002, the program’s appropriation was $1 billion. For a federal program to grow from $40 million to $1 billion in a few years happens rarely. The agency overseeing the program, the U.S. Department of Education, partnered with the Charles Stewart Mott Foundation to underwrite conferences and technical assistance for program providers, pumping millions more into the program.

In 1999, the Department of Education contracted with Mathematica Policy Research to evaluate the 21st Century program. The evaluation had elements that were both rigorous and representative. The elementary school part of the study was designed as an experiment; the middle school part was designed as a random sampling of programs around the country, with students participating in the program matched with students in neighboring schools (or the same school, in rural areas) that were not participating in the program. The evaluation collected data on a wide range of outcomes including grades, test scores, attendance, and behavior.[1]

Ultimately, the evaluation reported on how the program affected outcomes. In a series of reports released between 2003 and 2005 (here, here, and here), the answers emerged: the program didn’t affect student outcomes. Except for student behavior, which got worse. And small samples were not an issue explaining why findings were insignificant. The national evaluation included about 2,300 elementary school students and 4,400 middle school students. The results were insignificant because the estimates of program effects hovered around zero.

In the face of these results, one course of action would have been to at least reduce program spending, if not eliminate the program altogether. The Bush administration proposed a reduction of $400 million in the program budget, advocates rallied to the cause, Arnold Schwarzenegger got involved, and ultimately Congress left program spending unchanged. To this day, the program spends more than a billion dollars each year.

If the national evaluation was thought to be unreliable or errant, a sensible next step would be to do another, possibly with different focuses or features. That hasn’t happened. Or perhaps the evaluation findings were dismissed because other research has shown that afterschool programs are effective. It hasn’t. Echoing a previous 2006 review by Zief, Lauver, and Maynard, a 2015 review of dozens of studies that were published up to 2014 concluded that “mean effects were small and non-significant for attendance and externalizing behaviors.”[2](This is how researchers say the evidence shows that after school programs do not improve attendance or behavior.)

Two other pieces of evidence add to this picture. First, the U.S. Department of Education continues to collect and summarize the program’s annual performance reports (each state reports on its programs to the Department). Its most recent summary noted that ‘nearly all of the performance targets for the 2009-2010 reporting period were not reached.’ Second, a recent federal study of supplemental services programs found no effects on academic outcomes. The study examined programs that are required to be offered by schools that do not meet target levels of adequate yearly progress under No Child Left Behind. They are tutoring and academic support service programs offered outside the regular school day that have a stronger academic focus than the 21st Century programs (which can offer snacks, recreation, and youth development activities), and yet they still did not improve academic outcomes.

I am linking to this because I want people to understand that not every problem has to be solved by the government. It is possible that when politicians tell us that they want to solve a problem by taxing us and spending our money, it’s possible that what they spend our money on does not work. Normally, when it comes to government spending on children,it’s very hard to cut spending because compassionate people do not want to take money away “from the children”. Most Democrat voters do not even realize that money spent by the government either comes from taxation or borrowing from the next generation does not work, it can be very hard to cut funding for those those programs, because the powerful pro-government party has no interest in cutting government spending in any area. They get contributions from people who are very interested in big government.

What happens when government gets involved in energy production?

Consider this story from Canada, found in the National Post.

Excerpt:

A $200-million wind farm in northern New Brunswick is frozen solid, cutting off a potential supply of renewable energy for NB Power.

The 25-kilometre stretch of wind turbines, located 70 kilometres northwest of Bathurst, N.B. has been completely shutdown for several weeks due to heavy ice covering the blades.

[…]Wintery conditions also temporarily shutdown the site last winter, just months after its completion. Some or all of the turbines were offline for several days, with “particularly severe icing” blamed.

The accumulated ice alters the aerodynamics of the blades, rendering them ineffective as airfoils. The added weight further immobilizes the structures.

[…]Melissa Morton, a spokeswoman for the utility, says the contract isn’t based on power delivered during a specific period, but rather on an annual basis.

“Our hopes is that it will balance out over the 12-month period and, historically, that has been the case.”

Despite running into problems in consecutive winters, Ms. Morton says NB Power doesn’t have concerns about the reliability of the supply from the Caribou Mountain site.

This story has the word Wintery in it, and spelled correctly, too. That is a good thing. However, government-run utilities wasting taxpayer money on environmentalist nonsense is a bad thing. Maybe the taxpayer-funded wind farm is doing such a good job of stopping global warming that we are now seeing global cooling?

And remember that the Ontario government provides subsidies to private companies for inefficient solar power. More waste.

Now consider this post from Red State, found in Neil Simpson’s latest round-up.

Excerpt:

As taxpayer tragedies go, Broomfield, Colorado-based Range Fuels has all the plot elements—splashy headlines, subsidies and opportunistic venture capitalists. Range got its start in 2006 when George W. Bush used a State of the Union address to extol wood chips as a source for cellulosic ethanol that would break America’s “addiction to oil.” Mr. Bush pledged that with government funding cellulosic ethanol would be “practical and competitive within six years.”

Vinod Khosla stepped in with his hand out. The political venture capitalist founded Range Fuels and in March 2007 it received a $76 million grant from the Department of Energy—one of six cellulosic projects the Bush Administration selected for $385 million in grants. Range said it would build the nation’s first commercial cellulosic plant, near Soperton, Georgia, using wood chips to produce 20 million gallons a year in 2008, with a goal of 100 million gallons. Estimated cost: $150 million.

… the EPA said Range would finally produce some fuel in 2010—but only four million gallons, not 100 million, and of methanol, not cellulosic ethanol. So taxpayers have committed $162 million (along with at least that much in private financing) to produce four million gallons of a biofuel that others have been making in quantity for decades.

Yes, George W. Bush made some mistakes… but there is someone even worse.

From USA Today, we learn the consequences of Obama’s moratorium on oil drilling. (H/T Gateway Pundit)

Excerpt:

Seahawk Drilling Inc. said it has filed for bankruptcy protection and plans to sell its fleet of offshore drilling rigs to a competitor for $105 million.

Seahawk, which announced the deal with Hercules Offshore Inc. Friday, has been hurt by a slowdown in Gulf of Mexico drilling after the BP oil spill last April. The government halted drilling in deep waters and imposed tough new rules that have curtained all energy exploration in U.S. waters.

Bottom line – keep government out of the free market.

New Jersey turnpike wasted millions on perks

From Fox New York.

Excerpt:

Auditors say the New Jersey Turnpike Authority wasted $43 million on unneeded perks and bonuses.  In one case, an employee with a base salary of $73,469 earned $321,985 when all payouts and bonuses were included.

The audit says that toll dollars From the New Jersey Turnpike and the Garden State Parkway were spent on items ranging from an employee bowling league to employee bonuses for working on birthdays and holidays.

It took place as tolls were being increased.

The biggest expense uncovered in the audit was $30 million in unjustified bonuses to employees and management in 2008 and 2009 without consideration of performance.

One example was paying employees overtime for removing snow and working holidays and then giving additional “snow removal bonuses” and “holiday bonuses.”

The Comptroller’s Office audit released Tuesday says taxpayers also paid $430,000 for free E-ZPass transponders for employees to get to work and nearly $90,000 in scholarships for workers’ kids.

The audit shows turnpike authority employees got bonuses and overtime for working their birthdays and holidays.

Comptroller Matt Boxer says tolls are set for another increase in 2012.

[…]Another audit finding was that employees were allowed to cash out a portion of their unused sick and vacation days at the end of the year to circumvent the current $15,000 limit for sick leave payouts upon retirement.  That cost $3.8 million a year.

New Jersey is a hard blue state. Deep, deep blue.

If a private company did something crazy wasting money like this, they would be out of business because their prices would be higher when compared to their competitors. That’s why government is inefficient and wasteful – it has no competitors. We need to keep everything possible in the private sector and have transparency, accountability and whistleblower protections to contain government corruption and fraud.