In February, I highlighted the Department of Energy’s issuance of a $6.5 billion loan guarantee to build a nuclear power facility in Georgia. At the time, the project was behind schedule with cost overruns, and the project’s owners had already secured private financing. Yet DOE issued the loan guarantee anyway.
The Government Accountability Office’s annual duplication report is out. This year, the report highlights 30 ways that the federal government can save money. One way is to terminate the Advanced Technology Vehicles Manufacturing (ATVM) program, which provides government-subsidized loans to companies that make fuel-efficient cars. The program has been a failure, and it has cost taxpayers millions of dollars.
House Budget Committee Chairman Paul Ryan released his budget proposal yesterday, his last as committee chairman. This budget differs greatly from the budget request submitted by President Obama last month. Ryan would “cut” federal spending by $5.1 trillion over the next 10 years and calls upon Congress to pass pro-growth tax reform. However, Ryan’s budget is still a mixed bag from a small-government perspective.
Chairman Ryan’s budget released today “cuts spending by $5.1 trillion over the next ten years,” the document claims. Similarly, the headline from the Washington Post says that Ryan’s budget “would slash $5 trillion over next decade.”
Yesterday’s budget from President Obama claimed to raise taxes by $650 billion, which would come in addition to the $650 billion in tax hikes in January 2013. However, it appears that the president wants much more money from our pocketbooks. The exact amount isn’t entirely clear due to the games the Office of Management and Budget is playing with its various tables. But if the president had his way, more than $1 trillion in tax hikes would be coming.
President Obama released his fiscal year 2015 budget request today. Sadly, for those who support smart, sensible budgeting, the president’s budget is nothing to celebrate. The budget increases spending and fails to tackle the main driver of our budget problem—entitlement spending. All deficit reduction included in the budget is from revenue increases, not spending cuts.
Today, Senate Budget Chairman Patty Murray sent her caucus a memo on the country’s fiscal outlook. She details the “$3.3 trillion in deficit reduction put in place over the last few years;” a likely refrain in President Obama’s budget next week. However, Chairman Murray’s memo leaves much to be desired.
For the fourth day in a row, the Arkansas House of Representatives has refused to approve the yearly appropriation for its Medicaid program, dubbed the “private-option.” If the legislature continues this refusal and reverses its decision to expand Medicaid under Obamacare, state and federal taxpayers will save billions of dollars, making the Little Rock legislative battle the most important spending fight in the country.
After Solyndra collapsed, the Department of Energy (DOE) should have learned it lesson. Guaranteeing loans for energy and industrial companies is a bad idea. The failures of Beacon Power and Fisker Automotive should have driven home the message. Now, we have further proof that the DOE isn’t paying attention.
In today’s issue of Nature, scientists from the National Ignition Facility (NIF) in California are trumpeting their advance in achieving fusion ignition. However, the National Ignition Facility is just like so many other projects from the Department of Energy. It’s behind schedule and over budget.