Will John Kline Lobby Norm Coleman on Earmark Proposal

Have you made your 2009 New Year’s Resolution yet ?

Well, according to The Hill, the Senate Republican are scheduled to discuss a conference-wide rule change and policy statement regarding earmarks on Tuesday.

So, will John “Pork-Free” Kline lobby Norm “Minnesota’s $10,780,000 Man” Coleman ?
Will it make any difference ?

Well, first of all, the changes would take effect the first day of the next Congress. This is not the first time Republicans have tried this joke before as some Republicans called for a six month moratorium on earmarks … what a joke … we have a Fiscal Year … all the money gets authorized at year end, so what would 6 months due ?

This meeting is a result of a meeting at the beginning of the year which was reported by Roll Call.
Senate Republicans outlined a modest election-year agenda Wednesday based on the cooperative, bipartisan approach that new Republican Conference Chairman Lamar Alexander (Tenn.) has pushed while avoiding issues like immigration and earmark reform that have caused rifts within the party.
[SNIP]
Republican leaders … made it clear during the retreat that they would not support any effort by President Bush to strip earmarks from this year’s omnibus bill and saw no need to overhaul the practice … arguing any move {by Bush} to eliminate the earmarks would be an inappropriate infringement on Congress’ authority to appropriate funding.
[SNIP]
A Senator attending the retreat said later, "to the extent that the floor was open I didn't hear much opposition... I kept expecting to hear someone say 'yeah but earmarks are evil,' but I didn't."

Also, The Washington Examiner writes
“House Republican Whip Roy Blunt R-MO, has reportedly warned administration officials that meddling with earmarks will anger GOP members who are responsible for 40 percent of those in the 2008 spending bills.”

Republicans, based on their votes and comments by party leaders, are not serious about ending the use of earmarks.
And they shouldn’t.
All earmarks are not pork barrel spending. Without earmarks, the Executive Branch can spend funds as they deem appropriate.
For example, Office of Juvenile Justice and Delinquency Prevention which issued grants to youth golf programs and other projects--often run by administration cronies.
Or, the $350 to $500 million spent on Al-Hurra -- "The Free One" –US sponsored Arabic television.
Or, even $2.4 million for COMIC BOOKS !

There are plenty of “projects” that should be carefully reviewed, that’s why transparency and accountability are important.

The Republican Senators policy change is just an election year campaign trick to garner some media attention … and like many New Year’s Resolutions will be long forgotten by mid-2009.

John Kline’s pork-free diet has only cost the State getting a fair return on the monies that Minnesota taxpayers have sent to Washington.

MN-02 : Does John Kline put his money where his mouth is ?

Republican Congressman John Kline (MN-02) wrote “Some say America has an addiction to oil. What is abundantly clear is our addiction to foreign oil, which is not only an economic issue but also a national-security concern.”

This view is echoed by Republican-endorsed First District candidate, Dr. Brian Davis with the warning that “If you’re like me, knowing that our economy is partly dependent on countries like Venezuela, Nigeria, and Saudi Arabia is troublesome. Just imagine the potential disastrous consequences if several of these countries were to cut off our supply of oil.”

For these Republicans, the message being sent is that America is in peril as too much of our oil comes from countries whose governments may not be reliably friendly to the United States.

Interestingly, MinnPost reviewed the Financial Disclosure statement of these candidates and reported
“Rep. John Kline reported assets between $253,000 and $720,000, including a Russian investment fund valued between $1,000 and $15,000.

Dr. Brian Davis, who reported a salary of $411,720 in 2007. His wife also received a salary from the Mayo Clinic totaling $52,009.31 in 2007. Davis holds between $2000 and $30,000 in Pfizer stock. Overall, his assets total between $244,000 and $710,000.”

Dr. Davis owning stock in a US headquartered pharmacetical company would not be surprising. Many people’s investment strategy is based on Peter Lynch’s principle of investing in companies that are intimately familiar.

But why would John Kline make an investment in ING Russia Fund ? The ING Russia Fund is composed of 47.8% investment in the oil and gas industry. Once again, many people’s investment strategy includes global investments … not a bad strategy considering the weak US dollar. But Russia ? An investment that is tied exclusively to a single country ?

Admittedly, Russia is not officially in the “Axis of Evil” but since Kline likes to remind voters that during the Cold War, he carried the “nuclear football” that contained the President's launch codes used for nuclear attack, it is surprising that it is where he would make a direct investment.
Yet, he did.
On September 12, 2006, Congressman Kline sold two mutual funds and purchased a number of other funds including the ING Russia Fund.
Once again, a good move to re-position your investments.
But why Russia ?
The dollar amount of his investment is immaterial, it's the message that he values investments in Russia over US or other countries.

Russia and America have a number of disagreements – from the US plans to deploy interceptor missiles in Poland and a radar system in the Czech Republic to Russia’s stance at sanctions against Iran.
Yet, Davis’ warning has been used by Russia. Moscow's sudden cut in gas to Ukraine this winter was Russia using energy as a lever, a weapon or, in Vice President Dick Cheney's words, "a tool of intimidation and blackmail".

It's not just Saudi Arabia that supplies America's oil --- many countries do. As Mexico's productions slow, Russia has increased its shipments to America. What they do with American dollars could be what Congressman Kline means when he raises the fears of "a national-security concern.”

I ask again, WHY does John Kline wish to invest his money in Russia ? It’s his right, but quite surprising.

Then again, maybe Kline is planning for his “retirement years.” After all, as the Rochester Post Bulletin reported on November 28, 2007, former First District Congressman Gil Gutknecht “ serves as a consultant or is involved with six different companies, he said. He is also involved in conducting market research in Russia and drops hints about an energy deal in the works that could make headlines in the Wall Street Journal.” Ah, I guess there is always a career for Congressman after they leave office.

I suppose the lesson is that we should consider diversifying our portfolio from American companies to the ING Russia Fund. After all, Congressman Kline is an advocate of privatizing Social Security, so maybe it’s follow the leader time.

And a sidebar comment about Dr. Davis.
Voters, such as me, must wonder why someone would want take a pay cut of over $240,000 ?
Will he work for Middle Class working families or vote to maintain low tax rates for the doctors and others in the "country club crowd" ?
Would his votes embrace PAYGO, as Congressman Tim Walz advocates, or will his votes reflect increasing the national debt ?

Want Lower Prices ? Reduce the Ethanol Tariff !

Watching the devastation impacting farmlands in Iowa and the surrounding states is a stark foretelling that food prices will increase.

The Bureau of Labor Statistics released CPI data for the first quarter of this year showing food and beverage prices rising at an annualized, seasonally adjusted rate of 5.1 percent.
“Federal food-to-fuel mandates have led to over one quarter of corn to be diverted from food to ethanol production, driving up the price of corn and other commodities to historic highs,” was the immediate reaction from Scott Faber, vice president for Federal Affairs at the Grocery Manufacturers Association. “These rates will only increase following the USDA’s report that farmers will plant less corn in the coming year. Before these effects spread further across our economy and around the world, Congress should take immediate action by revisiting food-to-fuel mandates.”

Faber’s assertions can be debated, but with Congressional mandating the use of ethanol, there is a demand yet the cost of corn is actually delaying the opening of two brand new VeraSun facilities in Welcome MN and Hartley IA. Clark Fredericksen said "I think the ethanol industry, as a whole as some of these new plants come on are going to look at whether the margins are profitable enough to start right now, at the price of corn, or would they be better off, cost effective to delay them, until the price of corn eventually does come back down."
That’s millions of gallons of ethanol that these facilities may not produce this year … as well as jobs.

Congress’ ethanol mandate impacting prices has been a concern since First District Congressman Gil Gutknecht was promoting his 10/10 Act (10% ethanol by 2010). I contacted Gutknecht suggesting that H.R. 4409 The Fuel Choices for American Security Act of 2005 seemed to be a better bill. Included in H.R. 4409 was a 10 % ethanol requirement with a deadline of 2015, but also many more provisions; such as vehicle efficiency improvement, promoting hybrid technology, and requiring a 20% petroleum reduction by 2015 for vehicles used by federal agencies. H.R. 4409 had a broad group of 83 co-sponsors including many fiscal conservative members. Gutknecht wrote me that he has concerns with H.R. 4409 since it would repeal the tariff on imported ethanol. We do not want to be replacing foreign oil with foreign ethanol. I believe we should produce as much ethanol domestically as possible.

Despite all of Congress’ efforts, ethanol domestic production is struggling.

Since Congress has enacted mandates, foreign markets may be part of the answer. Unfortunately, foreign ethanol is subject to a 54-cents-per-gallon tariff and a 2.5 percent duty.

Ben Lieberman of the Heritage Foundation wrote “Consumers would benefit if the market—not special-interest politics—decided how much ethanol to use and where it should come from. ”

May I remind everyone that is advocating drilling in ANWR or the Outer Continental Shelf (OCS) that those projects will take years (maybe decades before meaningful production is achieved) but eliminating the ethanol tariff could impact supply and prices immediately … plus allow more corn to be used in foodstuff.

The efforts to make America “independent of foreign producers” should be a grave concern to all free market advocates and a trend toward an Isolationist Worldview and that is troubling in a global economy.
George Bush warned during his State of the Union address that “America rejects the false comfort of isolationism.
Isolationism would not only tie our hands in fighting enemies, it would keep us from helping our friends in desperate need.
In a dynamic world economy, we are seeing new competitors, like China and India, and this creates uncertainty, which makes it easier to feed people's fears. So we're seeing some old temptations return. Protectionists want to escape competition, pretending that we can keep our high standard of living while walling off our economy. … We hear claims that immigrants are somehow bad for the economy -- even though this economy could not function without them. (Applause.) All these are forms of economic retreat, and they lead in the same direction -- toward a stagnant and second-rate economy.

We need to remember that Canada is America’s leading importer of crude oil. Mexico is number three. With Iraq as number six, the question begs to be asked: Why are American troops in the middle of a civil war to determine the future of Iraq yet some people are advocating that America become "oil independent"? How will the Iraqi economy advance, if America is not an active trading partner?

In the world economy, remember the words of Baron de Montesquieu who wrote in his 1748 work, The Spirit of the Laws, “Peace is the natural effect of trade. Two nations who traffic with each other become reciprocally dependent; for if one has an interest in buying, the other has an interest in selling: and thus their union is founded on their mutual necessities.”

Closing our ports to foreign trade will hurt America in the long run.

MN-02 : Lonely Kline Votes Against Gas Price Relief

Why does John Kline stand alone against the Gas Price Relief for Consumers Act of 2008 ?

When 7 out of 8 members of the Minnesota’s Congressional delegation agree that a piece of legislation would be good, why doesn’t John Kline ?
That’s right, Michelle Bachmann, Keith Ellison, Betty McCollum, Jim Oberstar, Colin Peterson, Jim Ramstad and Tim Walz, all voted for HR 6074 … but not John Kline.
In fact a majority of Republicans and Democrats voted for this legislation … but not John Kline.

Why ?

I suppose there could be many reasons … in fact 10,390,091 reasons … if you believe that the donations to Republicans by the oil and gas industry could be good reasons.

But why would Minnesotans be surprised when after all Kline voted against the HR 5351 Renewable Energy and Energy Conservation Tax Act of 2008 and H.R.3221: New Direction for Energy Independence, National Security, and Consumer Protection Act.

I guess that the wind, biomass, geothermal, and hydropower industries don’t have $10,390,091 available as contributions for political campaigns.

Why Do Bachmann and Kline Oppose Using the FUT Reserve ?

It’s the economy, stupid !

This election season, that old mantra is being spoken by the voters but some of our politicians do not hear it.

Foreclosures, Gas Prices, Food Prices, Health Care Costs … their all going UP … but what is going DOWN is also a concern – employment.

The Department of Labor reported last week that the advance number for seasonally adjusted insured unemployment during the week ending May 31 was 3,139,000 versus 2,500,000 for the same period one year ago.

That’s a lot of families.
If they are out of work, the impact is on all of us. More foreclosures potentially putting property tax payments in arrears. There is a strain on food shelves and health care systems. Financial strains can lead to emotional strains.

Long ago, Congress set up a system to address this. If a worker is terminated, unemployment benefits may be available for a certain period of time. Once the benefits are exercised, you’re on your own.

Considering the current unemployment level and uneasy economic environment, Congress debated extending the benefit period by thirteen weeks.
Last week, the House voted twice on HR 5749 – Emergency Extended Unemployment Compensation Act of 2008. The final vote Roll Call 403 passed with sufficient number of Republicans and Democrats to override a veto if one was used. Voting in favor of this legislation was Republican Jim Ramstad (MN-03) and all Democrats … voting against this were Republicans Michelle Bachmann (MN-06) and John Kline (MN-02).

As a fiscal conservative, my first question is how will this benefit be paid ?
I opposed the Economic Stimulus prebate as it was paid by adding to the national debt … however I note that Bachmann and Kline supported that legislation. In a press release, Kline stated “The best way to move our economy forward is to allow Minnesotans to keep more of what they earn and to spend on what is important to their families.” So to Kline, the message is to spend today regardless of that the future generations will have to pay.

In this instance funding for unemployment benefits will not be an add-on to the national debt.
Why?
Because the Federal Unemployment Tax Trust Fund is currently overfunded at $35 billion dollars. Extending the unemployment benefits would cost $12 billion dollars over 10 years. FYI : A FUT payment is made by your employer based on the first $7000 of wages with most employers paying $42 per employee per year. In fact, as those workers become employed, the FUT Trust Fund will be repaid.

Extending unemployment benefits has the potential to help the entire American economy. According to the Congressional Budget Office, it is one of the most cost-effective and fast-acting ways to stimulate the economy because the money is spent quickly. For every $1 spent on unemployment benefits generates $1.64 in new economic demand.

This makes so much sense, so why would Bachmann and Kline be opposed to it?

The only reason that makes sense to me is that they realize that if they take money from the FUT Trust Fund to pay for what it was intended (Unemployment Benefits), then they cannot use those monies to help offset other spending. This is the same problem as when Congress borrows from the Social Security Trust Fund.

If Kline is truly concerned about getting our economy moving and creating more jobs, the extending the unemployment benefits using the overfunded reserve will do that.

This legislation will go the Senate next and then on to the President. Since Bush may veto this, please contact the offices of Congresswoman Bachmann and Congressman Kline to express your concerns.

Politico Bachmann Puff-piece Fails on Follow-up Questions

Daniel Libit of Politico was granted an interview
with Congresswoman Michele Bachmann (R-MN-06). Since the Congresswoman is very selective about who gets interviews, it is disappointing that such a well-regarded news service would not confront her answers with her votes.

From the article, she responds to a question of what she will do when she gets back home :
Bachmann: … Every weekend now when I go home, I will go to the grocery store, I’ll buy food for the family. We have five kids and 23 foster kids that we raise. So I go to the grocery store and buy a lot of food.
Politico: How much is your bill usually?
[SNIP]
Bachmann: Oh, coupons, generic brands, I don’t get the fluff. I’m just buying staples. It’s always boring when Mom goes to shop, the kids like when Dad goes to shop. And it was $79 for three bags of groceries, and I went home and told my husband, "I just feel for families of young children right now, because energy has had a direct impact for increases in the prices of food."

Let’s ignore the implication that there are 28 children at her table, and focus on how she “feel for families of young children right now.”

In all our communities there are families struggling … her district is not immune to foreclosures and food shelf shortages.

But her votes do not support families.

Consider Food, Conservation, and Energy Act of 2008 which she consistently voted against even when a majority of Republicans voted in Favor of this legislation.
The bill devotes about two-thirds of its funds to nutrition programs such as food stamps and healthy school snacks.

Or this week, where twice she voted Against the Emergency Extended Unemployment Compensation Act of 2008. The vote indicates that a veto could be overridden thanks to the number of Republicans who recognize the impacts to American families. The funds for this program are already available, and by authorizing this expenditure, could actually stimulate the economy --- maintaining jobs and providing for families.

Politico fell for her Motherly talk without looking at her votes.

MN-01 : Davis Press Release – Blame Walz First

Dr. Brian Davis, the Republican candidate for Minnesota’s First District, may be a political newcomer but he has already exhibiting great skill at staying on his talking points …. regardless of the subject.

Davis’ press release starts “(Winona, MN) - Despite appearing at the closed Highway 43 Bridge in Winona near the Mississippi river, Congressman Tim Walz has failed to propose any real solutions to our transportation needs, especially as it concerns finding relief for working families in southern Minnesota and the burden of high gas prices. ”

From the topic of the bridge closing, Davis then immediately switches to promoting his vision of energy policy and fails to address the infrastructure that is the immediate problem.

In politics, jabbing the opponent is norm, but at least stay on the subject at hand !

Addressing Minnesota infrastructure is a problem that starts at the State level which is why MNDOT closed the bridge. Congress has some responsiblity, but the State is generally the first on the scene.

Congressman Walz going to the bridge site is not an election year ploy as Dr. Davis implies. Walz has been “boots on the ground” whenever emergencies impact the District. Somehow, I suspect that all those years in the National Guard - being ready to respond to the State’s needs - has something to do with it.
Yes, Walz was there … but he also brought the Chairman of the House Transportation Committee… seeing first hand and engaging the right people are a mark of competency.

It’s odd that Davis whose mantra is for a limited government and promises in his campaign website to eliminate the practice of Congressional ‘earmarks’ would use the Hwy 43 bridge as a backdrop.

Davis confuses “earmarks” with “pork barrel” spending projects. “Earmarks” are Congressional authorization for a specific project. Congress appropriates funds and without earmarks then the Administration can spend the monies as them deem necessary. When members of Congress record an earmark, it forces those funds to be spent on that project. Are there “pork barrel" projects … absolutely ! For years, many projects were hidden from public view which is why former Congressman Duke Cunningham (R-CA) is now in jail. (Oh, and it also allowed Charlie Wilson (D-TX) to get funding for the Afghanistan rebels versus the Soviet Union.)

Earmarks can be a good investment and those that fail to utilize the system, fail our state’s infrastructure needs. For example, consider Congressman John Kline (R-MN-02) and the Hastings bridge. Listen to the words of Kline’s challenger, Steve Sarvi. "We've got a bridge in Hastings over the Mississippi that's in danger of falling down and now is when we need a Representative in Congress who will deliver the district an earmark and get this bridge rebuilt. Our infrastructure is crumbling all over the district and Kline has done nothing. This wouldn't be some kind of bridge to nowhere, it's desperately needed. Look, I'm not scared of spending money," Steve stated. "There are many things we need to spend money on like that bridge in Hastings. I'm more concerned with wasting money."

And that’s the difference between “pork barrel spending” and “earmarks”. The solution is TRANSPARENCY. For example, Congressman Walz has issued a list of 47 "earmark" requests for 2009 appropriations totaling $211,509, 561. Some are repeats from last year, such as improvements to Highway 14, the Lewis and Clark Rural Water System that would pipe Missouri River water to southwestern Minnesota, etc.and some new ones, including the four-lane expansion of 55th Street in Rochester, the dredging and restoration of Lake Zumbro, etc.
You don’t get everything you need, but the First District needs a Congressman that will keep going back to get our monies.
As Walz explained “Minnesota sends more money to Washington that it gets back, and it’s appropriate for us to advocate for the good use of tax dollars (in the district.)”

That’s the key … appropriations need to be open and above board. Walz is a co-sponsor of resolutions to address transparency in appropriations.

The awareness of transparency in appropriations is not only championed by Walz, but also Senators Barak Obama and John McCain who recently offered S. 3077 - the Strengthening Transparency and Accountability in Federal Spending Act of 2008. Senator Obama said “"We should do everything we can to ensure that the American public can easily access and track how the Federal government does its business."

As a voter, that’s what I want. Republicans and Democrats working together in a transparent government serving the people’s needs … not a newbie politician spewing talking points to advance his personal ideology.

And as a postscript, Dr. Davis should be aware that the Highway 43 Bridge will re-open shortly ... and that Congressman Walz will continue fighting for funds !


Hat Tip to Evil Bobby for alerting us to the Dr. Brian Davis election strategy.