Spratt Statement on the Introduction of Statutory PAYGO Legislation

WASHINGTON – House Budget Committee Chairman John Spratt made the following statement at a press conference today announcing the introduction of statutory PAYGO legislation in the House.

“I’m pleased to join arms with the Majority Leader, Steny Hoyer; the OMB Director, Peter Orszag; and with Blue Dogs and a host of others concerned about fiscal soundness. We have a common purpose: to make pay-go statutory, and add it to our tool kit of budget rules.

“At the outset of the 1990s, Congress passed the Budget Enforcement Act to ensure that the Budget Summit Agreement was carried out. Among its provisions was a rule called ‘pay-as-you-go’ or PAYGO for short. Critics disdained our resort to budget process. They accused us of dodging the hard choices we had to make if we were going to wipe out the deficit. But by the end of the 1990s, the budget was in surplus for the first time in 30 years; and it was clear that process rules like PAYGO played a big part in our success.

“Republicans were in the majority in 2002 when the Budget Enforcement Act expired, and they chose not to reinstate PAYGO, knowing that it would impede passage of their tax cutting agenda. Without the process rules, the budget plunged from a surplus of $236 billion in the year 2000 to a deficit of $413 billion in the year 2004.

“When Democrats took back the House, the reinstatement of PAYGO was at the top of our agenda. We made PAYGO a rule of the House the first day we convened the 110th Congress.

“Last week, the President proposed a bill to make PAYGO statutory – and today we introduce that bill as a starting point toward making statutory PAYGO part of our budget process. Tomorrow the House Budget Committee will hold a hearing to explore our bill with OMB Director Orszag as lead witness. We have begun the process of meeting with various groups and gathering feedback on the proposal. The House is likely to make changes to the Administration’s bill before passing it, but if we differ a bit on the means, we are in full agreement on the end, which is to make PAYGO a prevailing rule.

“The Obama Administration and the current Congress have inherited a colossal deficit, swollen this year to accommodate massive recovery measures. As these measures pull us out of the slump, we must focus attention on our longer-term fiscal fate. Two weeks ago, Chairman Bernanke told our Budget Committee that the long-run fiscal path is simply not sustainable.

“Statutory PAYGO works because it reins in new entitlement spending and new tax cuts. Both tend to be long lasting – easy to pass, hard to repeal. By insisting on offsets and deficit neutrality, PAYGO buffers the bottom-line. Its terms are complex, but at its core, it is a common-sense rule that everyone can understand: when you are in a hole, stop digging.

“We share the Administration’s commitment to fiscal discipline, and believe that statutory PAYGO will put greater rigor into the budget process. I look forward to working with all interested parties as we move statutory PAYGO through Congress.”

Spratt Statement on Obama Administration’s Pay-As-You-Go (PAYGO) Proposal

House Budget Committee Chairman John Spratt issued the following statement on the Obama Administration’s PAYGO proposal, which was announced by the President today at the White House.

“At the outset of the 1990s, Congress passed the Budget Enforcement Act to ensure that the Budget Summit Agreement was carried out. Among its provisions was a rule called ‘pay-as-you-go’ (PAYGO). Critics disdained our resort to budget process. They accused us of dodging the substantive issues we had to face if we were going to wipe out the deficit. But by the end of the 1990s, the budget was in surplus for the first time in 30 years; and it was clear that process rules like PAYGO played a big part in our success.

“Republicans were in the majority in 2002 when the Budget Enforcement Act expired, and they chose not to reinstate PAYGO, knowing that it would impede passage of their agenda. Without the process rules, the budget plunged from a surplus of $236 billion in 2000 to a deficit of $413 billion in 2004.

“When Democrats took back the House, the reinstatement of PAYGO was at the top of our agenda. To expedite passage, PAYGO was made a rule of the House the first day we convened the 110th Congress.

“Today, we take another, longer stride towards budget discipline. The President is proposing a bill to make PAYGO statutory. I share the Administration’s commitment to fiscal discipline, and believe that statutory PAYGO will help put greater rigor back in the budget process.

“The Obama Administration and the current Congress have inherited a colossal deficit, swollen largely to accommodate massive recovery measures. As these measures pull us out of the slump, we must focus attention on our longer-term fiscal fate. Last week, Chairman Bernanke told our Budget Committee that the long-run fiscal path is simply not sustainable.

“Statutory PAYGO is effective because it restrains new entitlement spending and new tax cuts. Both tend to be permanent – easy to pass, hard to repeal. PAYGO buffers the bottom-line, insisting on offsets and deficit neutrality. Its terms are complex, but at its core, it is a common-sense rule that everyone can understand: when you are in a hole, you should quit digging.

“The President, the House Democratic leadership, and members of the Blue Dog Coalition have spearheaded this initiative. I welcome their efforts and look forward to working with all interested parties as we move statutory PAYGO through Congress.”

State Dem Chair Applauds President Obama's New Proposals to Help SC's Unemployed

Columbia, SC – Today, President Obama announced new proposals that will help more unemployed workers attend community college and allow workers to continue receiving unemployment benefits while they are enrolled in college and/or training programs. South Carolina Democratic Party Chair Carol Fowler issued the following statement on the President's program:

"I applaud the President's continued efforts to give unemployed workers across the country the skills and education they need to succeed in today's economy and build a foundation for strong economic growth. This new plan is greatly needed in South Carolina where the unemployment rate continues to rise and our governor continues to fail working families. South Carolina Democrats believe that our next governor will be a Democrat who is dedicated to building on the strong foundation that the Obama Administration is putting in place for our economy."

$1.25 billion dollars to be designated in payments to qualified Black farmers

Federation of Southern Cooperatives Congratulates the Obama Administration on
Historic Approach to Settling Pigford Lawsuit

ATLANTA – Today the Obama Administration and Secretary of Agriculture Thomas Vilsack made an historic announcement in the Pigford Class Action Lawsuit first filed by Black farmers against the United States of Agriculture in 1997. The settlement announced today will provide $1.25 billion dollars in payments to qualified plaintiffs for past discriminatory treatment.

The Federation of Southern Cooperatives/Land Assistance Fund congratulates the Obama Administration on taking this historic step toward a meaningful settlement.

"This can lead to closure in the long sad history of discrimination by the USDA against Black farmers," said Ralph Paige, Executive Director. "The announcement follows the policy directives by the Secretary that provided a moratorium on federal farm foreclosures and strengthens the USDA's Office of Civil Rights to respond to numerous complaints of discrimination in USDA program activities and employment. We look forward to working with the USDA in providing fair access and equitable treatment to all Black farmers and distressed rural communities."

Note: The Federation/LAF, now in its 42nd year, assists Black family farmers across the South with farm management, debt restructuring, alternative crop suggestions, marketing expertise and a whole range of services to ensure family farm survivability.

Gunn Applauds Tenenbaum’s Nomination to CPSC

State Rep. Anton Gunn congratulates Inez Tenenbaum on her nomination to the Consumer Product Safety Commission.

COLUMBIA , SC - South Carolina State Representative Anton J. Gunn (District 79) congratulated Inez Tenenbaum on her nomination to the Consumer Product Safety Commission by President Barack Obama.

“Inez will do a fantastic job in Washington , DC . It is rare that South Carolina finds such an impressive and driven leader as Inez and we are proud of her,” said Gunn.

Tenenbaum was appointed by President Obama to the three member commission Tuesday. Gunn added, “Our President is committed to product safety. We will not allow US citizens, especially our children, to be threatened by the reckless production of hazardous goods. Inez’s appointment will provide the commission with the tenacity it needs to prevent the distribution of dangerous products that have been in the media over the past year."

Obama chooses former South Carolina State Superintendent to head federal agency

WASHINGTON – President Barack Obama has named former South Carolina state schools chief Inez Tenenbaum to head the Consumer Product Safety Commission.

Obama also named Robert Adler, a former commission aide who teaches business ethics and product safety at UNC-Chapel Hill, to one of the panel’s seven-year seats.

“We must do more to protect the American public — especially our nation’s children — from being harmed by unsafe products,” Obama said. “I am confident that Inez and Bob have the commitment and expertise necessary to fill these roles and raise the standard of safety.”

Jim Rex, Tenenbaum’s successor as State Superintendent of Education, called her selection “a natural extension of her long-held commitment to children and families” and said that he looks forward to supporting her work.

Tenenbaum worked as an attorney and child advocate before serving two terms as State Superintendent of Education from 1999 to 2007.

“Inez’s law background will certainly help in her new role,” Rex said. “She has in some ways always been a consumer advocate, focused on children. And she is a good listener and has good skills as far as analysis is concerned. She knows how to balance the interests of different constituencies. She's got the right skill set to be very successful in this job.”

If confirmed by the Senate, Tenenbaum will oversee an agency with about 450 employees. Both of South Carolina’s senators, Lindsey Graham and Jim DeMint, pledged to help Tenenbaum gain Senate confirmation.

Take the Money or Lose It

From The Palmetto Scoop

Among the numerous rumors swirling around Columbia tonight is a report that President Barack Obama has told Gov. Mark Sanford that if he does not apply for federal stimulus funds, the money will not be available for South Carolina.

And The Palmetto Scoop has now confirmed that Obama has, in fact, sent Sanford a very blunt, personal letter saying just that.

The correspondence reportedly states that roughly $700 million in discretionary stimulus money allocated for South Carolina will be revoked on Friday if Sanford declines to accept the funds and that, by law, no alternative options can be accepted.

The letter is in line with a nonbinding opinion issued Tuesday by Attorney General Henry McMaster that said Sanford — not state lawmakers — have the final say over whether the state accepts federal stimulus money.

“Under the (stimulus act’s) express provisions, only the Governor (or in other cases, other officials pursuant to the particular terms of the Act) may apply to the Secretary of Education (or other federal agencies) for such funds, based upon the federal criteria for eligibility of such funds,” McMaster wrote. “Federal law bestows upon the Governor, as chief executive of the State, the discretion as to whether to apply for these funds.”

Sanford has requested on numerous occasions that the money be used to pay down debt. Obama has repeatedly denied those requests.

But tonight — with the deadline to accept stimulus funding only 72 hours away — marked the first time that Obama has formally told Sanford that he must either take the money or lose it.

Obama’s letter would explain reports that Sanford has approached the General Assembly with an offer to cut a deal. Sanford has allegedly offered to accept the stimulus money if the legislature diverts state funds to pay off debt.

Obama voices support for teacher performance pay, spotlights SC

WASHINGTON, DC - President Barack Obama today renewed his support for a merit-based system of paying educators and praised the work being done in this area by South Carolina.

In his first major speech after taking office seven weeks ago, Obama, in an address to the U.S. Hispanic Chamber of Commerce, presented his agenda for improving America’s schools and called on a new generation of Americans to step forward and serve in classrooms across the country.
In challenging prospective teachers to make a difference in the life of the nation, the President promised his administration would do its part to support them.

“That’s why we’re taking steps to prepare teachers for their difficult responsibilities, and encourage them to stay in the profession,” Obama said. “It’s why we’re building on the promising work being done in places like South Carolina’s Teacher Advancement Program.”

“It’s time to expect more from our students,” the president said. “It’s time to start rewarding good teachers, stop making excuses for bad ones. It’s time to prepare every child, everywhere in
America, to out-compete any worker anywhere in the world. It’s time to give all Americans a complete and comprehensive education form the cradle up through a career. America’s entire education system must once more be the envy of the world - and that’s exactly what we intend
to do.”

South Carolina has been widely recognized for its involvement in the Teacher Advancement Program (TAP), a national initiative created by the Milken Family Foundation in 1999 to draw more talented people into education. Last year the state was featured in a Time magazine cover story on attracting and retaining high-quality public school teachers.
TAP was called “an impressive model” for giving teachers an opportunity to earn higher salaries and advance their professional skills.

State Superintendent of Education Jim Rex, a strong proponent of performance pay for educators, said the TAP program highlights South Carolina’s efforts to elevate the teaching profession and create a team approach at the school level. He said TAP should be a key component of a larger, comprehensive system of teacher pay.

“We need a comprehensive restructuring plan for teacher pay,” Rex said. “That plan might include salaries at the national average, financial incentives for improved classroom performance, incentives for teaching in schools that are struggling due to high poverty levels or low academic achievement, and National Board certification stipends.”


Rex said that TAP has expanded from 18 South Carolina schools to 43.
“It provides teachers with the tools they need for success and rewards those who improve student achievement the most,” he said.

Teachers and principals in TAP schools are eligible to earn incentive pay that can range from $2,000 to $10,000 per year, based on factors including individual and schoolwide student achievement, plus classroom observations made four to six times during the year. Teachers can earn monetary rewards for remaining in the classroom while taking on additional responsibilities and leadership roles, such as master and mentor teachers.

President Obama’s address today was a first step in laying out his agenda to improve America’s schools. White House officials said that more specifics would be outlined to Congress in the coming weeks.

Summary of President Obama's Budget

Here is a summary of President Obama’s budget, prepared by the staff of the House Budget Committee.

http://budget.house.gov/pres_budgets/fy2010/02.27.2009_FY2010_Pres_Budget_Summary.pdf

Updated summary of the President’s budget

Updated summary of the President’s budget

http://budget.house.gov/pres_budgets/fy2010/02.27.2009_FY2010_Pres_Budget_Summary.pdf

Obama’s Speech Highlights How Libraries Serve Everyday Americans and Students

The American Library Association (ALA) and the South Carolina Library Association (SCLA) lauds President Barack Obama for noting how libraries assist Americans during the president’s recent address to Congress.

The president shared a story about Ty’Sheoma Bethea, a young student from Dillon, South Carolina, who went to her local public library to write a letter to Congress to tell them how students today are committed to their education and determined to change the world.

“This anecdote not only shows how engaged the young people in our country are, but it also sheds light on how important the library is to these students,” ALA President Jim Rettig said. Yolanda McCormick, director of the Dillon County Library System, said, “I’m excited that she mentioned the library. We’re a poor county and everyone comes here to the library when they need to use a computer and the Internet. It makes me happy that we have these kinds of services available to the public. I’m glad we were here when she needed us!”

According to Jim Rettig, “The public library is the only source of no-fee access to the Internet for 73 percent of communities and a place where individuals like Ty’Sheoma can access computers and technology as well as benefit from the trusted guidance of a librarian. I thank President Obama for sharing Ty’Sheoma’s inspiring story. I hope it encourages our nation’s governors to use stimulus money wisely to ensure that every community has a local library – a library open ample hours with a librarian to help every child like Ty’Sheoma who needs a place to study or aspire. Our libraries are important not only to our youth, but also to adults; libraries are helping to rebuild the economy through assistance with online job searching and resume development, education on personal finances, and other services that respond to today’s pressing needs.”

SCLA president Libby Young said that she was elated that President Obama highlighted libraries in his address. “It’s important that the general public understand what kinds of resources are available at their local libraries. The fact that Ty’Sheoma was able to use her local library speaks a lot to what wonderful resources are available even in an underfunded county such as Dillon."

Spratt Reaction to President Obama’s Speech

House Budget Committee Chairman John Spratt (D-SC) issued the following statement on President Obama’s speech.

“The Bush Administration passed on to President Obama an economy in crisis and a budget in deficit – deep deficit, $1.4 trillion this year alone. Tonight’s speech shows that President Obama is not flinching or stalling; he’s taking the challenge head-on.

“The President recognized that the economy’s recovery is our most compelling problem, and I agree with him. He restated his commitment to putting the economy on its feet and the budget on a path toward balance. Yesterday’s fiscal summit at the White House set the stage for tonight’s address, when the President stated his determination to cut the deficit by half by 2013. This will not be easy, because balancing the budget when the economy is in recession is all but impossible, and what we do to make the economy better often makes the deficit worse, at least in the short-run.

“We cannot turn this battleship around overnight. But this speech signals the President’s intention to come out fighting. He intends to fire up the economy, bring down the deficit, and still do energy, education, and health care. He has lots of political capital, and is investing it in a big, bold venture, and betting that the Congress and the country will follow.

“If the reaction on the House floor is any measure, Congress is responding. Republicans stood and applauded almost as often as Democrats. That’s a sure sign of a great speech.”

Senate Passes Stimulus Package

From Associated Press via MSNBC

President Barack Obama's economic recovery plan has passed the Senate and is on its way to difficult House-Senate negotiations.

Just three Republicans helped pass the plan on a 61-37 vote and they're already signaling they'll play hardball to preserve more than $108 billion in spending cuts made last week in Senate dealmaking. Obama wants to restore cuts in funds for school construction jobs and help for cash-starved states.

Those cuts are among the major differences between the $819 billion House version of Obama's plan and a Senate bill costing $838 billion. Obama has warned of a deepening economic crisis if Congress fails to act. He wants a bill completed by the weekend.

The bill backed by the White House survived a key test vote in the Senate Monday despite strong Republican opposition, and Democratic leaders vowed to deliver legislation for President Barack Obama's signature within a few days.

Now, a conference committee has to hash out hte differences between the House and Senate versions to come up with one bill to send to the President. The differences between the House and Senate versions are detailed here. More here.

The three Republicans voting yesterday to end debate on the Senate bill were Susan Collins and Olympia Snowe of Maine and Arlen Specter of Pennsylvania. So they are probably the three who voted for the package as well. Details of the vote will be posted on senate.gov in about an hour.

ETV to Broadcast Presidential Inauguration

On Tuesday, Jan. 20 at 11 a.m., ETV will provide LIVE statewide coverage of the Inauguration of Barack Obama as the 44th president of the United States.

Hosted by PBS News Anchor Jim Lehrer, the program will feature excerpts of the morning events including church services and the Obama’s arrival at the White House, coverage of all events at the Capitol, as well as the official swearing-in at noon and Obama’s first speech as president.

Following the address, Lehrer will be joined by the NewsHour’s regular analysts, Mark Shields, David Brooks and others, for reaction and commentary.
Later that evening, ETV will air Frontline: Dreams of Obama. This hour-long program examines the rich personal and political biography of President Barack Obama. The program starts at 9 p.m.

Tell Obama What You Want

Contact the next administration with your ideas on what should be done to help our country.
Here's the link.

Budget Busters

President-elect Barack Obama is warning the U.S. deficit will top one trillion dollars this year, leading to what he says could be extensive cuts to government budgets. Obama made the warning Tuesday as he meanwhile prepares an economic stimulus package that will cost almost the same amount.

View a report from Democracy Now on the topic here.

Great Depression II?

From Alternet.org

Milton Friedman, in particular, persuaded many economists that the Federal Reserve could have stopped the Depression in its tracks simply by providing banks with more liquidity, which would have prevented a sharp fall in the money supply. Ben Bernanke, the Federal Reserve chairman, famously apologized to Friedman on his institution’s behalf: “You’re right. We did it. We’re very sorry. But thanks to you, we won’t do it again.”

It turns out, however, that preventing depressions isn’t that easy after all. Under Mr. Bernanke’s leadership, the Fed has been supplying liquidity like an engine crew trying to put out a five-alarm fire, and the money supply has been rising rapidly. Yet credit remains scarce, and the economy is still in free fall.

Friedman’s claim that monetary policy could have prevented the Great Depression was an attempt to refute the analysis of John Maynard Keynes, who argued that monetary policy is ineffective under depression conditions and that fiscal policy -- large-scale deficit spending by the government -- is needed to fight mass unemployment. The failure of monetary policy in the current crisis shows that Keynes had it right the first time. And Keynesian thinking lies behind Mr. Obama’s plans to rescue the economy.

But these plans may turn out to be a hard sell.

Will the government do enough to put the brakes on the sliding economy? Is it too late even if they come up with a big enough plan? Should the government keep its hands off and let the market do its bellyflop?

If you want to learn more about Milton Friedmanism, check out Naomi Klein's book The Shock Doctrine.

Women in the Cabinet

Obama’s Cabinet-level composition has only three women. Gov. Bill Richardson's announcement that he will not be taking the Commerce Secretary slot leaves an open position to fill, and one more chance for diversity.

Whereas the presidents of Chile and Spain, also elected as change candidates, appointed women to half of their Cabinet seats, Obama has named (including Richardson), 12 men to the 15 Cabinet-level department head positions. Leaving his team very diverse in terms of race and ethnicity – but not in gender. This is a diminished representation from both Bush presidencies and the Clinton administration.

The U.S. is ranked 27th on the World Economic Forum’s Gender Gap Report and 71st in terms of women’s representation in Congress.

Does this bother anyone?

Sermons on Obama Wanted

The Associated Press reports that the American Folklife Center Collections wants churches, synagogues and mosques to submit audio, video and text or the sermons being prepared for and delivered inauguration week. The American Folklife Center provides online access to selected portions of their collections. It creates online presentations on various topics and the American Memory project provides additional online access to selected collections. Online content may include audio samples of music and stories, digital images of rare letters and photographs, and video clips.

Please send these inauguration-week sermons to The News & Press as well to be featured in a possible upcoming story. Mail to PO Box 513, Darlington, SC 29532 or email them here with the subject line OBAMA SERMON.

Also, feel free to post comments and questions for President-Elect Obama here or in a Letter to the Editor.

Everyone needs to participate in our democracy. That means more than just voting every 2-4 years. Write or call your elected officials, writer letters to the editor and make your voice heard. Individual citizens don't have lobbying firms with millions of dollars to catch officials' ears. We have to work harder to get our wishes known.

What Will Your FCC Chair Look Like?

The American public is inviting applications for the position of chair of the Federal Communications Commission. We seek a dynamic candidate who will champion the public interest at a time of hope and transformation for our national media.

The Web site FressPress.Net invites people to vote on the priorities of the new FCC Chair that President-Elect Obama will select.

Go here to vote.