Carolina Politics Online

FOR IMMEDIATE RELEASE
Contact: Aaron Groen

November 20, 2008
202-225-2071

Foxx introduces measure to cut bailout funds by half

Legislation will restrict second payment of $350 billion government
bailout

Washington, DC-Congresswoman Virginia Foxx has introduced legislation that denies authorization of the second half of the $700 billion federal government bailout. The legislation (H.J. Res 101) is designed to take advantage of a provision in the bailout law that allows Congress to “disapprove” of the second half of the bailout.

“The American people were sold a false bill of goods with this $700 billion bailout,” Rep. Foxx said. “Not only did the administration completely change course in its use of bailout money, but there has been absolutely no oversight of the first $290 billion of spending. This is taxpayers’ money we’re talking about.”

Last week the Washington Post reported that the federal government had already doled out $290 billion of the bailout money. The Post also found that the independent oversight required by the bailout law is virtually non-existent and the progress report to Congress detailing where the bailout money is flowing is already late.

According to the new bailout law, Congress can withhold the second half of the bailout-$350 billion-when the President in office requests the money. Foxx’s legislation does just that. Thanks to the way the bailout was written, by law this measure must be considered by Congress within five days of when the White House requests the balance of the bailout cash.

“As the Treasury Department throws its weight around the economy, we’re hearing talk of bailouts for everyone ranging from life insurance and credit card companies to automakers and state governments,” Foxx said. “Where does it stop?”

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Sanford said the federal government has injected $2.3 trillion into the private markets, leaving taxpayers to foot the bill.

Sanford also voiced concerns about the abrupt retirement of Mack Whittle, chief executive of The South Financial Group.

Whittle was scheduled to retire at year’s end but stepped down earlier this month. Critics said that move protected his $18 million retirement package.

Sanford said that package would have been jeopardized if South Financial, which operates as Carolina First Bank in South Carolina, sought a taxpayer bailout before Whittle’s departure.

The State

The Federal Government is actively fleecing the American people right before their eyes to prop up the lifestyles of multi-millionaire CEOs.  That’s what the entire bailout was about, protecting the fat cats on Wall Street.  Reports have been in the news for weeks now that the banks receiving this money aren’t using it to cover the bad debt, but instead for acquisitions, executive raises, and retirement packages.

In a letter Friday to U.S. Treasury Secretary Henry Paulson, Sanford wrote: “I’d appreciate you looking into this and seeing if there is anything that can be done to keep each one of the taxpayers I represent from in essence having this $18 million, or other millions like it, plucked from their respective pocketbooks and wallets.”

You’re wasting your time, Mark.  Paulson doesn’t give a damn.  This is exactly what he wanted.  He controls the purse strings.

And what will the incoming Obama Administration do about this?  He’s out there calling for money for the automakers now!

RALEIGH - Governor-elect Bev Perdue says O. Max Gardner, a governor and Democratic power broker in the first half of the 20th century, is one of her favorite political figures in Tar Heel history. Gardner was in office at the beginning of the Great Depression, and Perdue said he set an example relevant to the current economic crisis.

“He used the time as a transformational period for the state of North Carolina,” Perdue said. Instead of simply cutting the state’s budget, Gardner invested in roads and universities so the state would be positioned to prosper when the economy turned around.

And even as North Carolina faces a budget shortfall that could be as large as $1.6 billion this year, according to state economists, Perdue says the state needs to invest in education, transportation and other pillars of economic development.

The News & Record

No, it’s not as simple as just cutting the budget.  LOL!  It never is to bureaucrats.  The state faces a potential deficit of $1.6 billion but she won’t cut the budget, instead she’ll throw money away on the already over funded education system.  If Perdue does not responsibly trim back the government then either the state’s deficit will continue to grow or the already high taxes will increase or both.  But hey, this is apparently what residents of North Carolina because that’s what they voted for.

The Hickory Daily Record has given their endorsement to Daniel Johnson (D) in the race for Congress in the 10th Congressional District.  Once again, like in The State endorsements, they refer to those in the Republican Party who opposed the $700 Billion Federal bailout as “extremists.”

The State’s Editorial Board endorsed the incumbents in three South Carolina Congressional race today.  That’s not really surprising and the makeup of South Carolina’s Congressional delegation is unlikely to change after this election, but something stuck out at me as I was reading their article.

Republican Albert Spencer supports term limits and takes the extreme position of having opposed Congress’ rescue of credit markets.

Evidently the writers at The State don’t feel that borrowing $700 billion, when the country was already $9.5 trillion in debt, to give to financial institutions to bail them out, which so far has had zero effect, is not considered extreme, but rather those who opposed this Federal catastrophe with our tax dollars are the ones on the extremities.  Never mind that most Americans didn’t want the bailout passed and never mind that the banks that received the bailout money are not using it for its intended purpose, but rather for acquisitions, raises, and executive bonuses.  You see, it is we who are the extreme ones and the far left leaning “journalists” at The State hold all the wisdom.

On Wednesday, Governor Sanford was joined by New York Governor David Paterson (D) in speaking before Congress regarding the current economic situation and other proposed Federal bailouts.  Sanford took the opportunity to stress the need for fiscal discipline in Congress while Paterson begged for more handouts for his welfare ridden state.

“Just like the financial services industry, we need a partner in the federal government in order to help stave off an impending financial calamity and stabilize our fiscal condition,” said Paterson, a Democrat.

On Tuesday, Paterson said New York is facing a $47 billion deficit by 2012.

Paterson is seeking higher Medicaid payments to states, greater unemployment benefits, infrastructure spending, and a boost in food stamp benefits to help state budgets.

The Post and Courier

Gee Dave, do you think that could be the problem with your budget??  Stop wasting your state’s money on welfare handouts for God’s sake!  The nerve of this guy.  He blows billions of dollars of his state’s money on welfare trash and then runs to the Feds begging that they hand over our tax dollars when his state falls into the hole $40 billion.

Sanford, a Republican who was also appearing before the committee, contended they should not pass another stimulus package because it will not fix the economic problems but drive the country deeper into debt.

“I’m here to beg of you not to approve or advance the contemplated $150 billion stimulus package,” Sanford said. “This $150 billion salve may in fact further infect our economy with unnecessary government influence and unintended fiscal consequences.”

It’s too bad Mark Sanford isn’t the President.  He’s exactly right.  The massive debt spending is what is hurting this country.  Our government is going to turn this nation into a banana republic for future generations when the debt reaches levels where it can no longer be paid or warrants our currency worthless like Zimbabwe.  These people need to balance the damn budget like we had in the 90s and that balance should include payments on the national debt.

RALEIGH - State Auditor Les Merritt said this morning that trips to France, Russia and Estonia by First Lady Mary Easley and others included “unreasonable and excessive expenses,” including a taxpayer-funded $332 lunchtime caviar cocktail.

Taxpayers picked up hundreds of dollars in alcohol purchases, against state policy. They paid for ballet tickets, and an executive assistant to Easley billed the state $227 dollars for a linen jacket.

Merritt found that the trips to France and Russia — which cost a total of $110,000 — were of questionable value to taxpayers.

The News & Observer

Les Merritt is about the only thing standing between the corruption in Raleigh and the taxpayers.  If the folks of North Carolina do not reelect him on Tuesday they will be doing an enormous disservice to themselves.

As lawmakers found themselves in the position of cutting services for autistic children, draining funds for land conservation and eliminating an advocacy program for disabled residents, they started asking the half-a-billion-dollar question:

What’s happening to the state’s money?

The Post and Courier

Is this a serious question??  What has happened to the money???  It’s been spent on crap!!  How many posts have been made on this blog and others throughout the state hammering the state legislature for reckless spending?  How many think tanks in the state like the Club for Growth and South Carolinians for Responsible Government have detailed all of the wasteful pork projects the legislature throws our money away on every single year?  This has to be a rhetorical inquiry.

Those changes set the backdrop in a state that’s becoming increasingly dependent on the volatile sales tax that also gives $1.5 billion in exemptions to everything from furniture purchased by churches to paper used to print the news and fuel burned by shrimpers.

There is nothing wrong with depending on a sales tax for state revenue.  Tennessee and Florida do not have a state income tax and rely heavily on their sales tax to provide money for the government.  They’ve been existing in that form of government since day one.  I do agree that South Carolina has too many exemptions in our sales tax and many of those should probably be removed.

Several lawmakers also are calling for the creation of a commission to review the more than 100 sales tax exemptions, many of which have been in place since 1951.

Quite frankly, I think everything should be subject to sales tax and we should do away with the income tax in this state.  Minor adjustments can be made to the tax each year if there is a suspected revenue shortage or windfall in the near future.

Sen. Robert Ford, D-Charleston, wants South Carolina to legalize gaming, a cash cow he said could cure all the economic woes.

I agree with Ford on this.  Why the hell not?  Of course, it’s not going to happen.  This is a state where we still have dry towns and counties that won’t allow bars to serve alcohol on Sunday, God forbid ye be cast into the firey depths of Hell.

Senate President Pro Tem Glenn McConnell, R-Charleston, has been lobbying for a constitutional amendment that would limit what the Legislature can spend during a given year, based on average of revenue collections over a decade.

Another good safety guard that would help the state so naturally, we’ll never see it.

Republican Gov. Mark Sanford said he thinks the Legislature simply is spending too much, and doing it recklessly. His potential vetoes of the budget cuts could bring lawmakers back on Oct. 31, with all likelihood that any changes to the tax structure will wait until next year, when a new Legislature convenes.

Sanford is right on the money as usual.  People in this state are not paying attention to what their representatives are doing.  They better wake up or this kind of incompetence will continue to plague this state.

You can view all of the cuts here.

I gave what I consider my “Dose of Reality” speech to the Professional Engineers and other candidates present last night at their meet the candidates forum. And you can correspond this with the October 2008 Decision Maker poll that you can link to. A vast majority of North Carolinian voters polled believe we are headed in the wrong direction and blame the state legislature.

The last 8 years have brought us to where we are. The criminal mismanagement of our state budget will leave us with a $2 BILLION shortfall next year by CONSERVATIVE estimates. The idea is not to raise taxes in good economic times but to accumulate rainy day funds for times like these. And this is one of those rainy day periods that proves that uncontrolled spending by the legislature is as I have said above, CRIMINAL.

As we creep towards “Socialism” nationally, we must resist the urge to do so locally. Electing “Economically Conservative” candidates is a necessity if we are to balance the State Budget and ensure fairness to all of us. Electing the same tax and spend politicians will only continue our slide into indebtedness and ultimately a socialist state that benefits no one.

Tell all of your friends and colleagues that they can make a HUGE difference in this year’s election and send a message that CHANGE is desperately needed in our North Carolina General Assembly.

COLUMBIA — South Carolina state senators approved $488 million in budget cuts today that carve into health care and college spending plans.

The 60-page bill won key approval in the Senate on a voice vote and agreement for a final OK Friday that will send the bill to Gov. Mark Sanford. The House approved it Tuesday with a 109-3 vote.

Health care-related programs lose $160 million and universities and technical colleges give up $123 million out of a $7 billion state spending plan that fell short as soon as it took effect in July when state sales tax collections stalled.

The plan mostly spares spending on Medicaid programs for the state’s poorest children, but other children did not fare so well. For instance, $3.3 million is cut from care for children with autism.

Colleges will lose more than 14 percent of their state funding and more than $10 million aimed at spurring research at Clemson University, the Medical University of South Carolina and the University of South Carolina. The universities also lose cash for new high-speed data networks. And Clemson gives up $1 million — half of what the state had put up for an automotive research facility in Greenville with ties to BMW.

The Herald-Journal

Well, you know, what can you do?  When you increase spending by 40% over a three year period and throw money away like spending $1 million on a green bean museum or money on the “Pigs on the Ridge Festival” what more can you ask for?

Neil Mellen with South Carolinians for Responsible Government has been writing about the lavish salaries and expenses of some of our school superintendents across South Carolina while the state legislature is in emergency session getting ready to slash education funding.  Naturally, the threat being trumpeted by those opposed to this cost cutting is that there will be less teachers and programs.  However, as I have said many times, there is plenty of waste to go around in our various school districts being spent not on the students, but on the administration.  I recommend you take a gander over to this Web site and read about some of the expenses they’ve been uncovering.

Remember, if you don’t hold your school boards accountable this will not change.

A state audit has questioned N.C. A&T State University’s use of state procurement cards to buy suits for student leaders to wear at homecoming festivities.

The audit, released today by State Auditor Les Merritt, questioned the purchase of $1,672 for the suits, along with two cases of gift and gift card purchases without proper documentation and credit card finance charges of $755. It also found that N.C. A&T violated policy when it made purchases to support travel to the Jena Six Rally last year in Louisiana.

The N&O

Will you PLEASE get a Les Merritt sign and put it in your yard?!

FOR IMMEDIATE RELEASE
Contact: Aaron Groen

October 17, 2008
202-225-2071

Foxx legislation signed into law

Law helps protect federal workers from ID theft, saves millions in printing/mailing costs

WASHINGTON, DC-Congresswoman Virginia Foxx’s “Electronic Paystub” legislation was signed into law this week. Her bill, the Electronic Pay Stub Act, ensures that all federal employees are given the option of receiving their pay stubs electronically. The legislation has the potential to save the federal government millions of dollars each year and will ensure federal workers’ pay stubs are delivered faster and more securely.

“This law is a common sense step that will save taxpayer dollars, reduce waste and help federal employees keep their identities secure,” Foxx said. “This legislation gives every federal employee the opportunity to receive their pay stub via a secure web site instead of in the mail. It will save millions in taxpayer dollars, dramatically reduce paper consumption and reduce the risk of identity theft for federal employees.”

Many private companies, corporations and state governments like Florida, Idaho, Kentucky, South Dakota and Nebraska offer the option of accessing employee pay stubs electronically (e-stubs). Until now the federal government has not offered this option to every federal employee. Giving all federal employees the option of accessing their pay stubs electronically will save taxpayers millions every year. In fact, a study conducted in Idaho found that paper stubs cost ten times more than e-stubs: $.30 vs. $.03.

E-stubs not only save money and paper, they are also safer than sending pay stubs via ground mail, reducing the chance of them getting lost or falling into the wrong hands. Employees who receive electronic pay stubs will be able to instantly access their pay information with considerably less risk of this information falling prey to identity theft.

The Electronic Pay Stub Act, or H.R. 6073, is the second substantive bill authored by Foxx to become law. Her first bill, the HERO Act , was signed into law on Memorial Day 2006. The HERO Act changed IRS law to allow members of the armed services to save for retirement by investing their combat pay into Individual Retirement Accounts.

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When Gov. Mike Easley and the first lady fly in state aircraft, most of their trips include a connection to Brunswick County, where the couple owns two homes. Easley does not reimburse the state for any portion of the coastal trips, although state documents apparently require that he do so.

Easley and his wife, Mary, flew on state-owned aircraft 237 days over the past four years, according to records obtained by Carolina Journal from the N.C. Department of Commerce, which is charged with managing the three aircraft available to the governor. The actual period of study was from Jan. 1, 2004 through April 10, 2008.

Easley or his wife were transported to the coast, remained there after an “official” event, or were picked up at the coast on 119 days. On 28 additional days the trip request form shows Easley or his wife planned a coastal connection, but the flight logs indicate plans changed and the official business became a round trip originating in Raleigh.

The Carolina Journal

Now that his wife has a cushy job (partially paid for by tax dollars), I’m sure they’ll be more than able to pay back what they owe the state… with interest.

Or, things will continue as they are- people won’t give a damn that their government is corrupt and wasteful and clowns like Easley will continue to run the state like a circus.

In North Carolina’s Ninth Senate District, incumbent Democrat Julia Boseman is running for her third term and facing Republican attorney Michael Lee.  Boseman got herself embroiled in a bit of a scandal earlier this year when it got reported that she owed several thousand dollars in back taxes on a home she owed.  Furthermore, issues came out about her past drug use and she was confronted by an angry group of voters demanding that she “pay for taxes, not for pot.”  I have to admit.  That would be a tough decision for me too…….

The question is will the negative attention she received earlier this year hurt her reelection chances next month?  It’s hard to say.  The seat she represents used to be held by former Republican Senator Patrick Ballantine who gave it up to make what turned out to be an unsuccessful run for governor in 2004.  Attorney Woody White was appointed to replace Ballantine for the remainder of his term and Boseman defeated White in the 2004 general election.  So, this is more of a swing seat than your typical gerrymander.  The Republicans do have a better than normal chance winning this seat than in many others.  However, due to the recent turmoil in the financial markets, 2008 is starting to look like it may be another 2006 so that may be exactly what Boseman needs to save her skin.

Regarding her voting record, Boseman was the sponsor of Senate Bill 17, an act to ammend the pretrial release requirements for sex offenders.  It basically amounted to a virtual restraining order against anyone accused of a sexual crime against a child.  She also sponsored Senate Bill 30 which provided additional protections to domestic violence victims.

On the wasteful end of things she wrote Senate Bill 1103 requesting $16.3 million of taxpayer dollars be given to three aquariums to create oyster hatcheries.  She voted to extend the vehicle registration fee increase until June of next year. She also voted in favor of the bloated $21.3 billion budget for the 2008-09 fiscal year which incorporated over $1 billion in earmark and pork barrel spending. In the 2007-08 session Boseman has racked up $62,613,658 in earmark requests altogether.

Michael Lee has a fairly detailed description of his Senate agenda should be get elected.  He wants to change the way road and highway infrastructure is prioritized and notes that while much attention has been given to Raleigh’s highway and Charlotte’s lite rail system, the Wilmington area is being ignored.  He wants North Carolina to recognize the death of a fetus in the event of an attack on the mother as murder.  Lee is a strong advocate of solving the problem of illegal immigration in North Carolina and and putting an end to the taxpayer subsidizing of state benefits for illegals.

Lee appeared on Carolina Talk earlier this year and you can watch the interview below:

          At the AKA Sorority function last night Kay Hagan attacked Dole with the same talking points from her commercial. She talked about Dole’s effectiveness rating and voting with Bush 90% of the time. Hagan forgot to mention that she voted with Marc Basnight and Tony Rand 100% of the time and also voted for that $9 million jet Easley had to cancel. Hagan was very negative and condescending towards Dole while talking to a small probably receptive audience.

          My opponent Dan Blue was too busy talking about Voting for Obama to be worried about his own race. And I got Vernon Malone angry at me because I said that the leadership in Raleigh was responsible for our failures on Mental healthcare, Roads, Schools, and many other failures. I did mention to a voter that it took a Democratic consultant to start the downfall of Jim Black, not the General Assembly leadership. Also Malone did not ask for the expulsion of Representative Wright when overwhelming evidence caused the full House to eject him. Malone only wanted a slap on the wrist of Wright. Maybe corrupt is a label that DOES fit the leadership of the Democratic Party in Raleigh.

Tens of thousands of poor children aren’t getting access to more than $160 million in medical attention they’re due because of a slow-moving bureaucracy.

In June 2007, state lawmakers authorized the expansion of the entitlement program for children called South Carolina Healthy Connections Kids, which would give 60,000 more children access to a generous set of benefits for the first time.

Now, 16 months later, only 7,000 children have been signed up and a state budget meltdown could mean the rest never see the benefits.

The Post and Courier

So let’s go ahead and put the government in charge of all of our health care.  Universal health care for everyone in America!  After all, the government does such an effective job!

Sue Berkowitz is outraged.

“Nothing is more compelling than to get kids on this program, especially at this time,” said Berkowitz, an advocate and director of the South Carolina Appleseed Legal Justice Center. “These families really need the help.”

I agree.  These children do need help.  That’s why I fully support telling the parents of these children to get off their asses, stop making excuses, accept some responsibility, and start acting like parents and provide for their kids.

The City of Charlotte has announced this morning that they are going to freeze all further hiring for the rest of the year and suspend all unnecessary travel.  This is in response to a perceived recession and an anticipated loss in revenue.  The freeze is supposed to last through January.  It’s good that the city is taking a proactive measure on this rather than ignoring the problem and then passing a tax hike on the residents when they get into an “emergency” financial situation.  Perhaps if Pat McCrory becomes mayor, the state will function in the same manner.

It looks like the governor is ready to wield his budget axe in the face of a sinking economy.  I readily welcome this.  Cut it!  Cut it all down to the very bare essentials and bare in mind that a lot of this would not be necessary had your Republican controlled state legislature not increased spending over %40 the past few years to buy votes for their reelection and had they not overridden hundreds of Sanford’s vetoes meant to reign in wasteful spending.

FOR IMMEDIATE RELEASE
Contact: Aaron Groen

October 3, 2008
202-225-2071

Foxx statement on House bailout vote

Washington, DC-Congresswoman Virginia Foxx released the following statement today after the House of Representatives voted for the second time on a $700 billion bailout bill:

“Over the past week, I’ve been working hard to convince my colleagues that we have superior alternatives to the Bush/Paulson plan. In conversations with both Democrats and Republicans I’ve been convinced that Congress has real alternatives to this risky $700 billion bailout.

“That’s why I joined with a bipartisan group who asked Speaker Pelosi and Republican Leader Boehner to take a second look. Unfortunately, our leadership chose not to listen to concerns from both sides of the aisle and once again forced a flawed plan on the House. This plan does not address the underlying causes of today’s financial crisis, it contains billions in pork from the Senate and it puts taxpayers on the hook for Wall Street’s bad investment decisions. I can not vote to support such an ill-advised plan.”

Note: Yesterday Congresswoman Virginia Foxx joined a bipartisan group of Congresswomen to write to Speaker Nancy Pelosi and Republican Leader Boehner urging them to consider an alternative plan. You can read the entire letter by clicking here

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