Today in Washington D. C. - May 13, 2009 - More Stimulus Problems

This morning, the Senate failed to invoke cloture on the nomination of David Hayes to be Deputy Secretary of the Interior by a vote of 57-39. Later today, the Senate is expected to resume consideration of a bill to place restrictions on credit card companies, H.R. 627.

Yesterday, the Senate voted 67-29 to approve an amendment by Sen. Tom Coburn (R-OK) to allow individuals to carry guns in national parks, in accordance with state laws.

More Stimulus Problems: Money Paid Out Slowly & Paid To Dead People, Unions

Though the $787 billion stimulus package was originally supposed to be timely, temporary, and targeted, it’s become clear over the three months since it passed that it is none of those things. This week, even more problems with the bill have come to light, ranging from slow distribution to poor targeting and even potential political issues.

The New York Times reports today, “Nearly three months after President Obama approved a $787 billion economic stimulus package, intended to create or save jobs, the federal government has paid out less than 6 percent of the money, largely in the form of social service payments to states.” The Times notes, “The intent of the stimulus program was to pump money into the economy quickly, and many members of Congress said at the time of its passage that speed was of the essence. But the huge program has been a challenge to administer for both a new administration and for states and local governments grappling with their own fiscal problems.”

Calling the stimulus program “a challenge to administer” may be a bit of an understatement in light of a report from WBAL-TV in Baltimore yesterday that a stimulus check was sent to a Maryland man’s mother, who died in 1967. The report noted that as many as 10,000 stimulus checks may have gone to dead people.

Even when stimulus money gets where it is supposed to go, it hasn’t been having the intended effect. According to The Washington Post, “Eleven weeks after Congress settled on a stimulus package that provided $135 billion to limit layoffs in state governments, many states are finding that the funds are not enough and are moving to lay off thousands of public employees.” Little wonder, then, that “some economists have questioned the administration’s claims that the bill has saved or created 150,000 jobs,” as The New York Times points out.

Meanwhile, the Los Angeles Times reported yesterday about a dispute between over $6.8 billion in stimulus money for the state of California. According to the report, “Gov. Arnold Schwarzenegger’s administration said they were notified by senior Obama staff on May 3 that California’s plan to cut wages for unionized home healthcare workers violated the law that authorized the stimulus package.”

The LA Times writes, “The Obama administration’s stance has sparked concerns about the influence of the Service Employees International Union. The wages at issue are paid to unionized workers who look after about 440,000 disabled and elderly Californians. . . . SEIU opposed the cuts and asked the Obama administration to look into whether they ran afoul of stimulus package provisions. . . . SEIU has myriad political ties to the Obama administration . . . The union was among President Barack Obama’s largest campaign donors, contributing $33 million. The White House political director, Patrick Gaspard, is a former executive vice president of SEIU 1199 . . . SEIU’s California State Council is actively opposing a May 19 state ballot measure, with help from a consulting firm founded by one of Obama’s most trusted advisors.”

John Ruberry at the Marathon Pundit identified an interview with the Las Vegas Sun, where Service Employee International Union (SEIU) President Andy Stern said: "We spent a fortune to elect Barack Obama — $60.7 million to be exact — and we're proud of it." Ruberry wonders, "Are there other organizations--on the left or the right--that spend that kind of money on a presidential race?"

Given how Congress was told that speed was important in getting stimulus funding out and given California’s unemployment rate reaching 11.2% in March, it is more than odd that the Obama administration would consider holding up funds for the state based on complaints from a state emplyees union unless it is payback time for SEIU's $60.7 million investment in Obama's campaign. This appears to be an unconstitutional dictatorial attempt to force California and potentially other sovereign state to make decisions not in their own best interests but rather in the interests of SEIU, another union or special interest group. Also, this may not be very pragmatic unless in truth the Obama political machine expects further quid pro quo from SEIU or other special interest groups exceeding the potential blow back from tramping on the Constitutional rights of the States to govern themselves.

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