Tin Cup Governors

Tin Cup Governors

Will Alms from Washington Be Enough?

Ohio Asks for Funding for Road, Bridge, Rail Projects

with John Michael Spinelli

Columbus, Ohio: Governors and mayors from across the nation, especially from the 44 or so states that have widening budget deficits with no shovel-ready sources of money to close those gaping gaps, are rattling their tin cups, hoping soon-to-be President-elect Barack Obama will shower them with tens of billions of federal dollars so they don't have to choose between shedding services, raising taxes or both.

The closer Obama comes to his inauguration day, the more intense will be the call for stimulus funds -- wasteful bailout funding to some, especially fiscal conservatives -- to flow like flash-flood waters to thirsty states whose budget cups are leaky and dry.

Republicans, who never batted an eye when President George W. Bush ran up record deficits to pay for expensive wars and who defined not spending massive amounts on supporting the troops as un-American and un-patriotic, have switched back to traditional anti-tax arguments.

They are warning that Obama's proposed stimulus package, designed to produce millions of jobs to replace the millions lost just this and over the course of the two terms of out-going President Bush and his tribe of fiscal and social conservatives, shouldn't be too big because it will necessarily shift the burden of repayment to future generations.

But as the debate escalates over how big the economic recovery package should be, governors of states like New York, New Jersey, Massachusetts, Wisconsin and Ohio, among others, are indeed the Chicken Little's of our time. Only in their version of this classic children's tale, the sky really is falling.

In Ohio, for example, a Republican-controlled state since 1992 that elected Democrats in 2006 and went for Obama last year, the projected budget deficit so far is about $7.1 billion, the greatest budget gap in history.

Strickland, Ohio's first Democratic governor since the early 1990s, said in early January that the situation facing the state of Ohio is so dire that in order to balance his state’s budget, he would have to fund every state program at 75 percent of its current level, according to Politico.com. “If I were simply to flat fund the operations of this government, I’d end up with $7.3 billion in deficit,” he said, adding, "We’re just trying to keep afloat.”

The governors have collectively requested Obama and a new expanded Democratic-led Congress for $1 trillion. Hard hit by jobs losses across the board, manna from Washington would be spent to prevent cuts in social services and education, as well as “shovel ready” infrastructure projects that could begin with 18 months, according to published reports.

In the Buckeye State, jobs numbers are grim. Numbers from the Department of Job and Family Services show that employment decreased by 26,600 jobs, while goods-producing industries were down 29,330; manufacturing was down 22,100; and construction lost 7,500 jobs. For a state that never recovered from the Bush recession of 2001, losing 95,000 in the past 12 months, pushing the unemployment rate to 7.3 percent, is shock and awe of a different kind. In some areas of the state, like Lucas County, home to Toledo, the unemployment rate is 9.5 percent. In nearby Ottawa County, it is 10.3 percent.

As dire as conditions are, Republicans are being taken to the wood shed on the efficacy of tax cuts versus direct government spending. Obama's economic team says alms for poor states pack a bigger bang when spent directly than through tax cuts, which recipients might save instead of spending.

For a state like Ohio, which experienced $1.2 billion in state budget cuts in 2008, the hundreds of millions can't arrive soon enough.

In one region, Cuyahoga County and four other northeastern Ohio counties, the cost of their proposed projects are at $197 million, published reports say. County leaders, the report says, have added tens of millions of dollars more to the list.

Howard Maier, executive director of the Northeast Ohio Areawide Coordinating Agency, which funnels federal money to local transportation projects says, explaining the sum to a central Ohio newspaper, said: "We have to be ready the moment a stimulus package is approved." He added, "It's not just the direct jobs; suppliers are involved. There's a multiplier effect of the construction."

Columbus Mayor Michael Coleman is using the opportunity to get his push for light rail back on track. Coleman wants $200 million to build a 13-mile transit system. Cleveland Mayor Frank Jackson wants $730 million to fund road and bridge projects.

But as this page has reported before, so-called "shovel-ready" projects may not be "future-ready" projects.

Which alms flow in what amounts to which states will be a fierce contest for sure. With consumer confidence just one point above an all-time low, doors will be open for the greenback cavalry when ever it arrives.

John Michael Spinelli is an economic development professional, business and travel writer and former Ohio Statehouse political reporter. He is also Director of Ohio Operations for Tubular Rail Inc. To send a tip or comment, email ohionewsbureau@gmail.com

Blame Forward: Holding Republicans Accountable as Obstructionists to Revival

Blame Forward: Holding Republicans Accountable as Obstructionists to Revival

with John Michael Spinelli

Op-Editude

Columbus, Ohio: Having stymied important legislation from passing for two years by preventing Senators from reaching the magic number of 60 in the Senate, backing a reckless war launched by a reckless president that will end up costing us all trillions of dollars and loosing big time in two successive election cycles that show just how fed up Americans are with their brazen, party-first policies that have brought us to the brink of disaster, it seems appropriate that Republicans be blamed forward for what appears to be their strategy of opposing at all costs President-elect Barack Obama's spending plans to bring America back to life again after eight straight years of pet Republican policies that put the nation, and much of the world, on life support.

Republicans, from George W. Bush in the White House to their control of both chambers of Congress for four years starting in 2002 when the GOP regained control of the US Senate, can rightfully be adjudicated as the party who endorsed at best and sat by idly at worst as their leaders, who said government was the problem but who became intoxicated with its power, took us from Clinton budget surpluses to massive Bush budget deficits.

It would seem that people who constantly carp about government as the enemy, who don't know how to run it efficiently or effectively when put in charge of it yet feel as happy as a pig in mud when they have that responsibility and who say starving it so it can be drowned in a bathtub is good, shouldn't be allowed to have anything to do with it; but that would be un-American and un-Democratic, not matter how much sense it makes.

As compassionate as a fox in a hen house, Republicans have brought great harm and heartache to the nation. As the minority party, they now intend to thwart the first African American president and his agenda to revive an economy that's tanked, put to work millions of people who have lost their jobs and bring about the kind of change that garnered him eight million more votes than John McCain or Sarah Palin, showing just how tired and disgusted the nation is with them and their party's so-last-century social and fiscal models.

Woody Hayes, the now infamous football coach of Ohio State University who won several national titles but who will forever be known as the military-like curmudgeon coach who was fired because he slugged an opposing team's player in a bowl game as the tide turned against the Scarlett and Gray, used the phrase "paying forward" to teach the lesson that "paying back" is retrospective while doing good deeds along the way instead of at the end of your career is prospective. Doing so, Hayes believed, you'll have built up a line of credit in being humane that will make you and those you touch better off for it.

Republicans who ruled Washington and state capitals from the mid-1990s to the election cycle of 2006 and who ladled out opportunities for Democrats to me partners in policy formulation as sparingly as a jailer giving food to prisoners and who believed unbridled spending was good as long it was for the war in Iraq, are now whining that Obama needs to be mindful of spending so future generations won't be unduly burdened. Such overt, disingenuous hypocrisy is a wonder to behold. But Republicans have no shortage of brazen chutzpah when it comes to telling others to not do what they do.

Now the minority again after an electoral drubbing of staggering proportions that will be achieved again in 2010 because hopeful GOP leaders think that doubling down on their agenda of making the rich richer, the middle class poor and siphoning off tax dollars to pay their cronies is what you do when you get elected, Republicans are staging, and the media is swallowing it whole like they did the bogus reasons for going to war in Iraq, that too much spending to put people back to work and remedy a housing situation made possible by the greedy Wall Street crowd their economic policies were crafted to satisfy, an assault on Obama and a new, expanded Democratic congress voters installed last November for following through on the campaign promises they ran on and won on.

New York Times columnist and winner of the Nobel Prize in economics, Paul Krugman, sees the new-found caution on spending by Republicans as their way to water down Obama's spending plans to a point where they won't do the job, thereby giving them the chance to say his agenda doesn't work, and please elect us again.

Krugman displays his math skills, arguing that Obama's plan to spend about $775 billion over two years is a conservative amount to do what's needed to put people back to work. He says it "takes $300 billion to reduce the unemployment rate by 1 percentage point" and that spending less will do less, playing into Republican arguments they media is already regurgitating that tax cuts for the wealthy and business is what's needed.

"I see the following scenario: a weak stimulus plan, perhaps even weaker than what we’re talking about now, is crafted to win those extra GOP votes. The plan limits the rise in unemployment, but things are still pretty bad, with the rate peaking at something like 9 percent and coming down only slowly. And then Mitch McConnell [aka "Dr. No"] says “See, government spending doesn’t work.” [Paul Krugman ]

Job losses just in 2008 is about 2 million, and news from the Gallup polling group released Tuesday forcast that the unemployment rate is likely to surge on Friday, as the Bureau of Labor Statistics is expected to show that jobs lost at the end of the year will exceed the seasonally adjusted four-week average of 552,250. The Gallup poll also predicts that the unemployment rate is likely to "surge past 7%." And for those of us who believe the official unemployment rate is tamped down from what it shoud be, the real rate, made up of categories of workers not normally factored in to calculations, could be 4-5 percent higher.

While this debate is taking place, we learn that manufacturing activity fell to its lowest point in 28 years. We also hear that some state governors, especially five from the Midwest including Ohio, are asking the new president and congress to open the cash-flow sluice gates to prevent more cuts to education, social services and infrastructure.

For states like Ohio, where about 250 thousand jobs are directly or indirectly tied to the fortunes of Detroit's Big Three, news that Chrysler sales are off 54 percent, General Motors 31 percent and Ford over 32 percent is downright scary. Even without a collapse of car makers, Ohio and two other states, New York and North Carolina, had to shut down their electronic unemployment filing systems due to system stress and heavy volume.

The report by ABC News said about 4.5 million Americans are collecting jobless benefits, a 26-year high. Web sites and phone systems now commonly used to file for benefits, it said, are being tested like never before. That's not all, folks.

John Michael Spinelli is an economic development professional, business and travel writer and former Ohio Statehouse political reporter. He is also Director of Ohio Operations for Tubular Rail Inc. To send a tip or comment, email ohionewsbureau@gmail.com