Tag: deficit

IRS chief warns of bad service due to budget cuts

9:18 am

IRS Commissioner (and Democratic Party shill) John Koskinen has warned in an agency-wide email that the tax agency faces a short-term shutdown and increased bad taxpayer service because of Republican-led budget cuts.

“The effect of these cuts will hurt taxpayers and our tax system,” he wrote. He said the cuts could force the IRS to shut down operations for two days later this year, resulting in unpaid furloughs for employees and service cuts for taxpayers. But in the near-term, the commissioner said cuts in overtime and temporary staff hours could cause delays in refunds. “People who file paper tax returns could wait an extra week — or possibly longer — to see their refund,” he wrote, adding: “Taxpayers with errors or questions on their returns that require additional manual review will also face delays.”

Why am I reminded of the claims of federal agency heads everywhere just before sequestration, claiming doom and gloom should it take effect? None of their claims proved true. Sequestration did nothing to harm government operations and actually saved the taxpayers a load of money.

Koskinen is full of it. This email by him is only intended to pressure Congress to give him more money, so that his agency can continue to abuse anyone who might express opinions hostile to the Democratic Party.

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Cruz and Rubio to chair important space and science subcommittees

3:40 pm

We are about to find out how conservative and pro-private enterprise senators Ted Cruz (R-Texas) and Marco Rubio (R-Florida) really are. Both have been assigned as chairmen of important subcommittees managing NASA and NOAA.

Cruz will chair the subcommittee on Space, Science, and Competitiveness, which handles NASA, while Rubio will chair the subcommittee that handles NOAA.

For Cruz especially this position will challenge him to prove his tea party credentials. If he is in favor of private space as much as he claims, we will see him work to trim SLS, a pork project with no hope of achieving anything in space, and favor the commercial space effort, even though SLS brings much more pork into his state.

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Senate Republicans call for gas tax hike

5:57 pm

Lying slime: A number of Senate Republicans have joined with Democrats to call for an increase in the gas tax.

Though the last time the gas tax was increased was during Bill Clinton’s presidency, the only reason the highway fund is short of money is that they don’t spend it wisely, wasting a lot on stupid projects. (Sounds a lot like almost everything the federal government does, doesn’t it?) Rather than increase the tax, Congress should take a close look at how the money is being spent, and clamp down.

I should note that House Republicans have already said that they will oppose this increase. Whether they stay that course however remains to be seen.

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Another reasonable look at this week’s Congressional budget deal.

10:53 am

Link here.

Mitchell correctly notes that this deal occurred because of the reality of divided government. While Republican leaders have often acted like weak-kneed wimps, there still remains a limit on how much they can get, not controlling two-thirds of the government. As I noted earlier in discussing the science budget, the federal budget is no longer growing uncontrollably, evidence that the voters’ wishes from 2010 and 2014 are beginning to be heeded.

Only when we have elected more conservatives will it then start to shrink.

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A more positive conservative take on the budget deal

10:48 am

Link here. I think Lambo nails it. The deal might not be ideal, but it is only the beginning, and was written when Republicans only control one house of Congress, and still pushes back at many Democratic-passed initiatives.

Next year that changes. If we do not see significant cuts in the budget from Republicans when they control both houses of Congress I will then join the many conservatives who justly distrust the Republican leadership and want their heads.

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NIH panel recommends cancelling multi-billion dollar study

10:13 am

An government advisory panel has recommended the NIH cancel a controversial nationwide study to track the health of 100,000 children.

The study has already cost one billion, has had two scientists resign because they didn’t like how the study was being run, and has as yet only enrolled 4,000 children.

Update: The NIH officially cancelled the study later the same day the panel’s report was released.

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Science spending steady in proposed Congressional budget

9:18 am

The proposed budget deal announced by Congress yesterday essentially leaves level the overall spending on science.

I have a spreadsheet where I track the budgets of the various science agencies in the federal government, and from this I can say that since the Republicans took control of the House in 2010 the funding has remained very steady. Despite the partisan screams from the left that Republicans are destroying science, all these science agencies have pretty much gotten stable funding in the past four years.

Nonetheless, much of this funding could be trimmed significantly, as there is enormous featherbedding and pork among these science agencies. That won’t have a chance of happening until next year, when the Republicans control both houses of Congress. Even then, Obama and much of the Republican leadership will oppose significant cuts, Obama because he wants to see increases and the Republican leadership because they wish to maintain the status quo.

The unending growth in these budgets, routine from the 1970s through the 2000s, has definitely ceased. I also expect the political pressure to cut these budgets to grow with time. The newer Republican members of Congress tend to be much more radical than their leadership, and are much more willing to slash budgets radically.

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Lame duck Congress agrees to $1.1 trillion budget

5:03 pm

Faced with the threat of a government shutdown, Congress has worked out a continuing resolution that will fund the government through its fiscal year ending in September 2015.

There has been a lot of gnashing of teeth among conservatives about this deal. Many wanted the Republicans to fight harder now and limit this deal more. I am less worried. The political winds are clearly favoring conservatives and tea party ideals. Come next year Congress will be controlled by Republicans, and the 2016 budget will be shaped by their concerns. Whatever small gains the Democrats and Obama get now will be stymied then.

And then will come the 2016 elections. I expect an even greater win for conservatives, since Obama is making it clear he will continue to stand firm in support of Obamacare and many other liberal issues that have proved to be poison at the ballot box.

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NSF accused of misuse of funds in giant ecological project

11:08 am

The National Science Foundation (NSF) and a contractor have been accused by both an audit and by Congress of a significant misuse of funds in a major ecological monitoring project costing almost a half a billion dollars.

With a construction budget of $433.7 million, NEON is planned to consist of 106 sites across the United States. Arrays of sensors at each site will monitor climate change and human impacts for 30 years, building an unprecedented continental-scale data set. Although some initially doubted its merits, the allure of big-data ecology eventually won over most scientists.

But a 2011 audit of the project’s proposed construction budget stalled three times when, according to the independent Defense Contract Audit Agency (DCAA), NEON’s accounting proved so poor that the review could not be completed. Eventually, DCAA issued an adverse ruling, concluding that nearly 36% of NEON’s budget proposal was questionable or undocumented.

When the NSF green-lit the project, the agency’s inspector-general ordered the audit released on 24 November, which found unallowable expenses including a $25,000 winter holiday party, $11,000 to provide coffee for employees, $3,000 for board-of-directors dinners that included alcohol, $3,000 for t-shirts and other clothes, $83,000 for “business development” and $112,000 for lobbying.

Republican members of Congress have since been attacking NSF for this lax management. And though the amount of funds apparently misused does not seem very large compared to the size of the entire contract, I am willing to bet that this audit only uncovered a tiny portion of the misuse. Based on the recent behavior of federal agencies, I would expect this to only be an indicator of much worst abuse that is still buried behind stone-walling.

A side note: Remember how only a few weeks ago the NSF head was claiming that a shortage of funds was the reason they were unable to cure ebola. What really happened was that they were too busy spending money having parties to do their job.

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A scrambled SLS/Orion flight schedule

12:40 am

It ain’t gonna happen: In trying to figure out what to do with SLS/Orion, NASA has admitted that the earliest any crew mission to an asteroid can occur is now 2024.

I could quote from the article, but then I’d have to quote the entire article and comment on the absurdity of practically every sentence. NASA hasn’t the faintest idea what to do with SLS, it isn’t designed to do much of anything, and it doesn’t have the funding to anything even if they knew what they wanted to do with it. Hence, the constant scheduling rearrangements, all designed to push the actual manned flights farther and farther into the future.

The article does point out how NASA is now planning to fly its first crewed mission on SLS/Orion using an untested upper stage, since the rocket costs so much to launch they can’t afford to spend the money on an unmanned test flight beforehand. Meanwhile, they are demanding that SpaceX and Boeing do all kinds of unmanned test flights with their manned capsules at great cost to these companies, before allowing any astronauts on board.

As I’ve said repeatedly, this rocket is never going to fly anyone anywhere. By 2020 several private companies will be sending humans into space regularly at far less cost and with far greater capabilities. Congress will finally realize that they can spread their pork around more effectively by funding these companies instead, and they will cancel this bloated and wasteful program.

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Billion-dollar-plus NASA medical research contract under dispute

11:24 pm

A bidding dispute has forced NASA to again put up for bid a $1.5 billion contract for space medicine.

The dispute has to do with two dueling contractors, Wyle and SAIC, both of whom want the big bucks.

After Wyle won the Human Health and Performance contract in March 2013, SAIC filed a protest with the GAO, ultimately prompting NASA to reopen the competition.

When NASA reawarded the contract in August 2013, it chose SAIC. The following month, the McLean, Virginia-based firm — which had announced plans the previous summer to split into two companies — rebranded itself as Leidos and spun off its $4 billion government information technology and technical services unit as a publicly traded firm that kept the name SAIC and was slated to get the Human Health and Performance contract.

But Wyle filed its own protest with GAO in September 2013, arguing that NASA should discount SAIC’s lower bid — at $975 million, nearly 10 percent lower than Wyle’s — because it was submitted when the unit was still part of a much larger company with deeper pockets. This time, the GAO sided with Wyle.

The article says practically nothing about what all this money buys me, the taxpayer. And it is an awful lot of money. Is it for medical research on ISS? Is it for monitoring the health of the astronauts? Is it for biological research? What is it for exactly? I honestly can’t imagine how this kind of research or medical monitoring on ISS can cost this much. My skeptical nature has me wondering if this contract might instead be a bit inflated, much like SLS and Orion, in order to funnel pork to congressional districts to employ as many voters as possible.

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Army can’t track spending on $4 billion system to track spending

9:11 am

Our government in action: An inspector general has found that the Army was unable to track the spending on a project designed to help the Army track spending.

As of this February, the Army had spent $725.7 million on the system, which is ultimately expected to cost about $4.3 billion. The problem, according to the IG, is that the Army has failed to comply with a variety of federal laws that require agencies to standardize reporting and prepare auditable financial statements. “This occurred because DOD and Army management did not have adequate controls, including procedures and annual reviews, in place to ensure GCSS-Army compliance with Treasury and DOD guidance,” the IG report concludes.

And some people wonder why I am always skeptical of giving the federal government any job you need done.

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Air Force requests info for new engine

8:54 am

Corporate welfare: The Air Force on Thursday issued a request for information from industry for the replacement of the Russian-made engines used by ULA’s Atlas 5 rocket.

Companies are being asked to respond by Sept. 19 to 35 questions. Among them: “What solution would you recommend to replace the capability currently provided by the RD-180 engine?” Air Force officials have told Congress they only have a broad idea of how to replace the RD-180. Estimates of the investment in money and time necessary to field an American-built alternative vary widely. Congress, meanwhile, is preparing bills that would fund a full-scale engine development program starting next year; the White House is advocating a more deliberate approach that begins with an examination of applicable technologies.

In the request for information, the Air Force says it is open to a variety of options including an RD-180 facsimile, a new design, and alternative configurations featuring multiple engines, and even a brand new rocket. The Air Force is also trying to decide on the best acquisition approach. Options include a traditional acquisition or a shared investment as part of a public-private partnership. [emphasis mine]

The Atlas 5 is built by Lockheed Martin. This is really their problem, not the Air Force or ULA. In addition, the Air Force has other options, both from Boeing’s Delta rocket family as well as SpaceX’s Falcon 9 rocket. For the government to fund this new engine is nothing more than corporate welfare, at a time when the federal government is swimming in debt and is essentially bankrupt.

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Free gym memberships for Homeland Security desk jockeys

9:25 am

It’s good work if you can get it: Homeland Security is spending almost a half a million dollars to provide free gym memberships to bureaucrats in Washington.

TSA also announced more gym memberships for its employees in Phoenix.

What this tells us is that the Washington elite still consider the federal budget a blank check designed to make their lives wonderful, even as the rest of the general public struggles to make ends meet and federal government and the general economy goes bankrupt.

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In an editorial today the Washington Times labels SLS “the rocket to nowhere” and condemns Senator Richard Shelby (R-Alabama) for trying to sabotage the new commercial manned space companies in order to fund it.

8:59 am

In an editorial today the Washington Times labels SLS “the rocket to nowhere” and condemns Senator Richard Shelby (R-Alabama) for trying to sabotage the new commercial manned space companies in order to fund it.

As I’ve said for the past two years, the high cost and slow development of SLS will increasingly make it a loser in its political battle with the new commercial companies. Eventually legislators will recognize its impractically and unaffordability — especially if the commercial companies continue to meet their milestones and achieve success, as they have been doing. When that happens, the influence of individual senators like Shelby to shovel pork to their particular states or districts will be outweighed by the overall political benefits for everyone in Congress to get American astronauts into space quickly and cheaply on an American-built spaceship.

This editorial by a major newspaper signals the continuation of this political process.

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Richard Shelby’s poison pill in the Senate NASA budget bill that will double the cost of manned commercial space.

8:46 am

Senator Richard Shelby’s poison pill in the Senate NASA budget bill that will double the cost of manned commercial space.

Essentially Shelby wants to require the commercial companies to follow the older paperwork requirements used by NASA in the past. Presently, the contract arrangements NASA has used for these new companies have been efficient and relatively paperwork free, allowing them to build their cargo freighters (Dragon and Cygnus) and their manned spacecraft (Dragon V2, CST-100, and Dream Chaser) for relatively little.

The older contract rules are what NASA has used for Constellation and SLS as well as all past attempts to replace the shuttle. In every case, the costs were so high the replacement was never finished. In the case of SLS, the costs will be so high it will never accomplish anything.

Why has Shelby (R-Alabama) inserted this language? He wants pork, and SLS is the way to get it. Rather than cut the cost of SLS to make it more competitive (and which will reduce the pork in his state) Shelby instead wants to make the new commercial companies more costly, thus making SLS appear more competitive. It will still cost too much and will not accomplish anything, but this way he will be able to better argue for it in congressional negotiations.

Shelby illustrates clearly that the desire to waste the taxpayers’ money is not confined to the spendthrifts in the Democratic Party. Republicans can do it to!

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House and Senate budgets for NASA give almost full funding to manned commercial space while boosting SLS.

9:13 am

House and Senate budgets for NASA give almost full funding to manned commercial space while boosting SLS.

The bill would provide $1.7 billion for the heavy-lift SLS rocket, some $350 million more than the White House requested for 2015, and $100 million more than the House has proposed. SLS is being built at the Marshall Space Flight Center in Huntsville, Alabama. Sen. Richard Shelby (R-Ala.), ranking member of the Senate Appropriations commerce, justice, science subcommittee, is an ardent defender of the center.

The bill also provides $805 million for NASA’s Commercial Crew Program, under which the agency is funding work on three competing astronaut transportation systems with the goal of having at least one delivering crews to and from the international space station by the end of 2017. The White House requested $850 million next year for Commercial Crew, its top human spaceflight development priority. The House proposed $785 million, which would represent a high water mark on a program that has never received the full funding sought by the White House.

That the proposed budgets made only tiny cuts to commercial space indicates that the political clout of this program is growing, since in previous budget years Congress had trimmed this program’s budget much more significantly. That Congress continues to also feed gobs of money to SLS, even though it won’t be able to fly more than 1.5 missions because of a lack of a European service module, indicates that these legislators are really only throwing pork at whatever they think will buy them votes, without any concern for the overall federal budget, instead of using their brains to pick and choose the smartest projects to fund.

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Short of money for astrophysics because of the overruns on the James Webb Space Telescope as well as federal budget woes, NASA has decided to shut down the Spitzer Space Telescope.

9:11 am

Short of money for astrophysics because of the overruns on the James Webb Space Telescope as well as federal budget woes, NASA has decided to shut down the Spitzer Space Telescope.

Other missions, such as Kepler, Chandra, Hubble, NuStar, and Swift got extensions, however.

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A GAO report says that NASA has been hiding the true and very expensive cost of the SLS/Orion projects by specifically excluding the cost of any actual missions that go anywhere.

9:24 am

It is nothing but pork: A GAO report says that NASA has been hiding the true and very expensive cost of the SLS/Orion projects by specifically excluding the cost of any actual missions that go anywhere.

NASA so far has put only two SLS missions on the manifest: a late-2017 test launch of an unmanned Orion into lunar space followed by a repeat of the mission in 2021 with crew onboard. NASA officials told GAO auditors it expects to have spent at least $22 billion on SLS and Orion through 2021, an estimate that does not include the cost of building the SLS launcher for the second mission. … Moreover, NASA provided no cost estimate for the more powerful SLS rocket NASA would need to mount a crewed Mars expedition the Obama administration envisions happening in the 2030s. According to NASA’s early plans, such a mission would entail multiple SLS-Orion launches.

The cost estimates NASA has offered so far “provide no information about the longer-term, life cycle costs of developing, manufacturing, and operating the launch vehicle, crew capsule, and ground systems” the agency has identified as crucial to the eventual Mars mission, the GAO wrote in its report.

In other words, they are going to spend $22 billion to launch the thing once. Meanwhile, NASA’s commercial manned space effort is producing three different spacecraft for about $3 billion total. If anyone in Congress had any brains, picking between these two programs would be easy, a no-brainer. Sadly, they have no brains, and really aren’t making their budgetary decisions with the needs of the nation in mind.

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According to a GAO report, the sequester cuts that were going to destroy civilization as we know it resulted in exactly one layoff across the entire federal government.

11:48 am

According to a GAO report, the sequester cuts that were going to destroy civilization as we know it resulted in exactly one layoff across the entire federal government.

That is not a typo. Only one person total was laid off to meet the mandated cuts imposed by sequestration. Most agencies froze hiring or imposed furloughs, though even the number of furloughs was less than predicted.

Remember this fact the next time a politician screams dire warnings about any cuts in the federal budget.

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The porksters arrive!

9:01 am

A draft bill in Congress is proposing the Pentagon develop an engine for the Atlas 5 engine to replace the Russian engine now used.

The legislation passed by a House subcommittee Wednesday calls for up the U.S. military to spend up to $220 million next year to kick off full-scale development of the engine, which could be ready for flights no later than 2019. The bill states the Defense Department “should develop a next-generation liquid rocket engine that is made in the United States, meets the requirements of the national security space community, is developed by not later than 2019, is developed using full and open competition, and is available for purchase by all space launch providers of the United States.”

There is no reason for this funding gift to the aerospace industry. For one thing, there are two rockets that already exist that use all U.S. parts, the Delta family of rockets and the Falcon 9. For another, if Congress stays out, the private sector will take care of this need and do it for a lot less and far quicker, while costing the taxpayers relatively little. By making this a government project we guarantee it will be expensive and take forever, thus keeping the pork flowing to Congressional districts without solving the problem.

And speaking of keeping pork flowing to Congressional districts, pork king Senator Richard Shelby (R-Alabama) today ripped into NASA for trying to trim a little from the budget of SLS (which sends a lot of cash to Alabama). He also condemned NASA’s manned commercial effort.
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The Health & Human Services department spends an average of $146 per month per employee for email services.

8:40 am

Typical government: The Health & Human Services department spends an average of $146 per month per employee for email services.

Considering the number of employees, 70,000, you would think the government could get a discount making the cost less that what an ordinary citizen pays for home service. Instead, they pay about twice as much.

Which means we must of course give them control over 1/6 of the nation’s economy. How else can we rein in costs?

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The Republican leadership in the House today held a sham vote to get a spending bill passed.

2:06 pm

The Republican leadership in the House today held a sham vote to get a spending bill passed.

They did it because they couldn’t get enough votes from both Republicans and Democrats for the bill. So, “Republican leadership worked with their Democratic counterparts to orchestrate the ploy.”

It is stuff like this that makes me sick for our country: bi-partisan corruption.

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“The malignancy that is really destroying this country is low-information people with high-profile power and/or influence.”

11:11 am

“The malignancy that is really destroying this country is low-information people with high-profile power and/or influence.”

You know, people who would lobby for, comment on, advocate for, or vote on laws like ObamaCare without any understanding of its real-world impact. Such felonies are then carried out by low-information bureaucratic microbes with the power to destroy lives and businesses with impunity, and a political and talking-head class with the access and sway to codify these common malfeasances. Destruction of private property and liberty – and these two concepts are not divisible – takes place in government cubicles every minute of every day across the country. And why not?

We have a low-information president, who has appointed a low-information cabinet, including the low-information secretary of health and human services who is applying a low-information health care law (one of many such laws) behind the big power of a low-morality Internal Revenue Service. The result of all of this low information in power is a low-liberty nation.

Read it all. The events that instigated this article are profound because they illustrate just how bankrupt the intellectual community of our country presently is.

In related news, global warming advocates are increasingly refusing to debate with global warming skeptics. This article also outlines the increasing effort to blackball anyone who expresses skepticism of human-caused global warming.

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The evil polices of that evil Republican Scott Walker has now produced a $1 billion budget surplus in Wisconsin.

10:16 am

The evil polices of that evil Republican Scott Walker has now produced a $1 billion budget surplus in Wisconsin.

Senate Republicans Tuesday narrowly passed Gov. Scott Walker’s $541 million tax cut proposal in a vote that guaranteed the cuts will become law.

The tax decreases — the third round of cuts by Republicans in less than a year — passed 17-15 with GOP Sen. Dale Schultz of Richland Center joining all Democrats in voting against the proposal. The proposal now goes to the Assembly, which passed a different version of the tax cuts last month with two Democrats joining all Republicans in supporting it.

With growing tax collections now expected to give the state a $1billion budget surplus in June 2015, Walker’s bill will cut property and income taxes for families and businesses, and zero out all income taxes for manufacturers in the state. [emphasis mine]

Why is it that even with gigantic and yearly surpluses Democrats still oppose tax cuts? Or do we already know the answer?

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How Washington journalists conspire to not report accurately the President’s yearly budget proposal.

5:47 am

How Washington journalists conspire to not report accurately the President’s yearly budget proposal.

The article focuses on the bad reporting in connection with the Obama administration’s most recent budget proposal, but the criticism applies to every budget announcement since the 1970s.. Each year, the President’s budget proposal in the January/February/March time frame increases the amount the federal government will spend from year to year, as far as the eye can see. Washington journalists however report that the proposal cuts the budget instead. How can this be? As the writer notes,

In the 1970s, Congress tortured the English language by requiring that if federal spending grows less than expected, it should officially be called a spending cut. Outside of the beltway bubble, nobody talks like that. Reporters are letting the public down by accepting the word games of politicians and not reporting the real numbers in the language of ordinary Americans.

I have been fighting this dishonest reporting for decades. It is not the business of reporters to help the federal government get more money. They should report the budget, as it is.

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In testimony to Congress Wednesday, Elon Musk described how allowing SpaceX to compete as a military launch provider would significantly lower costs.

7:49 am

The competition heats up: In testimony to Congress Wednesday, Elon Musk described how allowing SpaceX to compete as a military launch provider would significantly lower costs.

[Senator Richard Shelby (R-Alabama)] said the Air Force EELV contracts require compliance with complex oversight and accounting practices that add costs to the program. As a result, he suggested comparing the cost of a SpaceX Falcon 9 and a ULA Atlas or Delta was comparing apples and oranges.

Musk agreed “there is additional cost for U.S. government missions due to the mission assurance process.” And he said SpaceX’s costs for launching a military mission would be 50 percent higher than for a purely commercial launch. Even so, he said, SpaceX could provide a Falcon 9 rocket for around $90 million as opposed to nearly $400 million for a ULA launcher. “Even when you add the Air Force overhead, there’s still a huge difference,” he said. [emphasis mine]

The only reason that Congress is against eliminating the military launch monopoly given to ULA and allowing SpaceX to compete is because the monopoly feeds a lot of pork to the districts of certain but powerful legislators like Shelby.

ULA and Shelby are losing the argument however. The cost differences are too high, and SpaceX has proven that it can do the job efficiently and effectively. Eventually the monopoly will die, and the sooner the better.

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A look at the President’s overall budget for science, which finds spending levels remain flat.

9:54 am

A look at the President’s overall budget for science, which finds spending levels remain flat.

What makes this story significant is that the budget is really flat. Some agencies will get more money, others less, with the total spent about the same as the year before. They are not discussing, as had been typical in the past, the rate of increase in spending, where a reduction in that rate would be reported falsely as a “cut.”

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