Tag Archives: Kickback

CBO: each job created by stimulus cost between $4.1 million and $540,000

Here’s the latest Congressional Budget Office report. (H/T American Enterprise Institute)

When [the American Recovery and Reinvestment Act] was being considered, the Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation estimated that it would increase budget deficits by $787 billion between fiscal years 2009 and 2019. CBO now estimates that the total impact over the 2009–2019 period will amount to about $831 billion.

By CBO’s estimate, close to half of that impact occurred in fiscal year 2010, and more than 90 percent of ARRA’s budgetary impact was realized by the end of March 2012. CBO has estimated the law’s impact on employment and economic output using evidence about the effects of previous similar policies and drawing on various mathematical models that represent the workings of the economy. …

On that basis CBO estimates that ARRA’s policies had the following effects in the first quarter of calendar year 2012 compared with what would have occurred otherwise:

– They raised real (inflation-adjusted) gross domestic product (GDP) by between 0.1 percent and 1.0 percent,

– They lowered the unemployment rate by between 0.1 percentage points and 0.8 percentage points,

– They increased the number of people employed by between 0.2 million and 1.5 million,

– They increased the number of full-time-equivalent jobs by 0.3 million to 1.9 million. (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers.)

We spend $831 billion taxpayer dollars to create between 200,000 to 1.5 million jobs. That works out to a cost-per-job number of between $4.1 million and $540,000.

Go socialism! Our children can afford to pay for our generation’s irresponsible wastefulness, right? I mean the ones we don’t abort, of course.

Democrat-connected PR firm gets $20 million taxpayer dollars to promote contraception/abortion mandate

From CNS News.

Excerpt:

The Department of Health and Human Services has awarded a $20-million contract to a Democrat-connected public relations firm, which will promote awareness of Obamacare’s “preventive services” mandate.

Under that mandate, all health-care plans must cover — without any fees or co-pays — all FDA-approved contraceptives, including those that cause abortions, as well as sterilizations.

The public relations firm hired to conduct the PR campaign, Porter Novelli, is a global firm whose leadership team features former Obama campaign surrogate and Democratic operative Catherine “Kiki” McLean.
http://www.porternovelli.com/about/leadership/catherine-kiki-mclean/

McLean appeared on television on behalf of the Obama campaign in 2008. She also worked as a senior adviser to Hillary Clinton’s 2008 presidential campaign as well as the presidential campaigns of former Vice President Al Gore and Sen. John Kerry (D-Mass.).

The $20-million taxpayer-funded public relations campaign is mandated by the Patient Protection and Affordable Care Act, an HHS official told CNSNews.com.

“Section 4004 of the Affordable Care Act required the department to conduct this effort as one way to encourage utilization of preventive benefits and services,” the official said.

“This public education campaign is part of our ongoing education efforts that will inform the American people about the steps they can take to prevent disease and illness and stay healthy.”

Section 4004 of the legislation requires HHS to conduct an “education and outreach campaign regarding preventive benefits,” using radio, television and online media in a campaign that, among other things, “explains the preventive services covered under health plans offered through [ObamaCare].”

The campaign also “promotes the use of preventive services” including those covered under the sterilization-contraception-abortifacient mandate, HIV screenings for “at risk” youth, and diet and obesity prevention services for children.

I’m not sure if anyone remembers, but this is the same kind of scandal that brought down the Liberal Party in Canada in 2006.

Excerpt:

The sponsorship scandal“AdScam”“Sponsorship” or Sponsorgate, is a scandal that came as a result of a Canadian federal government “sponsorship program” in the province of Quebec and involving the Liberal Party of Canada, which was in power from 1993 to 2006. The program was originally established as an effort to raise awareness of the Government of Canada’s contributions to Quebec industries and other activities in order to counter the actions of the Parti Québécois government of the province that worked to promote Quebec independence.

The program ran from 1996 until 2004, when broad corruption was discovered in its operations and the program was discontinued. Illicit and even illegal activities within the administration of the program were revealed, involving misuse and misdirection of public funds intended for government advertising in Quebec. Such misdirections included sponsorship money awarded to ad firms in return for little or no work, which firms maintained Liberal organizers or fundraisers on their payrolls or donated back part of the money to the Liberal Party. The resulting investigations and scandal affected the Liberal Party of Canada and the then-government of Prime Minister Paul Martin. It was an ongoing affair for years, but rose to national prominence in early 2004 after the program was examined by Sheila Fraser, the federal auditor general. Her revelations led to the Martin government establishing the Gomery Commission to conduct a public inquiry and file a report on the matter. The official title of this inquiry was the Commission of Inquiry into the Sponsorship Program and Advertising Activities. In the end the Commission concluded that $2 million was awarded in contracts without a proper bidding process, $250,000 was added to one contract price for no additional work, and $1.5 million was awarded for work that was never done, of which $1 million had to be repaid.

Keep in mind that Canada is about one-tenth as big as the USA, for things like population, budget, etc. So their scandal was about the same amount of money as ours, if you correct for that.

That was the election that brought Conservative Party Prime Minister Stephen Harper into power. The Liberals also gave taxpayer money to Liberal-connected ad firms. When the truth came out, the Liberals went from having 135 seats in 2004 to 34 seats in 2011. So this is the kind of story that can bring down an entire political party. Using taxpayer dollars to promote your political party is serious, and when you put it together with Barack Obama already campaigning in swing states at taxpayer expense, it’s even more egregious. This is America, not some banana republic.

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.