Friday, February 25, 2011

Recipe for Disaster

Yesterday afternoon, after getting some projects out the door for the National Grange State Master’s Meeting, I decided that I had let my snail-mail cubby in our supply room fill up to an embarrassing level and it was time to get the letter opener out. In the collection of invoices and political newsletters was a lovely hand-addressed #10 envelope from a Wib Justi, from the National Junior Horticultural Association in Ohio.

The envelop contained an article from the February 2011 Issue of Country Living which detailed a certain M.A. Fox’s search for the perfect pie and how pie had become this individual’s medium for connecting with the past, and all other things inherited. The talented author of the piece points out how very difficult it is to make a perfect pie. How the components must be in perfect measure, with precise process and collaboration.

Unfortunately, in my warped, politically-charged brain, it made me think of this little situation we have inherited in Washington right now as we sit on the eve of a possible government shut-down. Now, in some cases, nostalgia can be just as detrimental to one’s soul as it can be restorative. However, sometimes taking a walk down memory lane is just what is needed to avoid making political mistakes of the past.

The federal government has shut-down 15 times since 1977, but the government shut-down that is the freshest in most folk’s memories is the one that resulted from the stand-off between President Bill Clinton and then House Speaker Newt Gingrich. The shut-down, which was the longest in history, lasted 21 days and occurred over the Christmas holidays. The two Clinton-era government shut-downs resulted in a gross furlough of over 1 million federal employees and countless contractors.

During the 1995-96 shutdowns, the unemployment rate was about 5.5% and today it currently hovers just under 10%. I don’t think this is the fat that we need to be trimming. Is sending a bunch of people home from work really the message we want to send to our unemployed? When the U.S. government tells small businesses to reinvest in their companies and hire more staff to energize the economy, yet can’t play well enough with others to do so itself, it speaks with a forked tongue.

I am the first to jump on the bandwagon of tightening our fiscal belt but I am not sure that shutting down the federal government leads by example or achieves the financial relief that so many are lead to believe. I don’t believe that the following is the recipe for a balanced budget:

2 Chambers diametrically oppose
1 White House that doesn’t even want to address the current FY2011 budget
1 The largest employer in the United States shutting down
1 The highest sustained unemployment rate since the Great Depression

PS: In the article from Country Living cited earlier in this blog, the Grange is noted for having the best of all country auction food stands (and pies). Maybe Grangers hold the best of all recipes.

- Nicole Palya Wood
National Grange Legislative Director

Friday, February 18, 2011

Show Me the Money

Congress is currently addressing the daunting task of drafting the 2012 federal budget, a major issue given their new drive to cut federal spending and reduce the deficit. The current budget is set to expire March 4, forcing Congress to draft some sort of spending bill just to keep the government operating. On Monday, President Obama issued his own proposals for the 2012, $3.7 trillion budget, and so far, his recommendations have been met with some harsh sentiment from Congress. Obama’s proposals include cutting $350 million from the Community Development Block Program, reducing the EPA’s funding by $1.3 billion, and reducing Pell grant funding for college students. Simultaneously, he intends to increase funding for projects like his high-speed railway system, set to cost an astounding $53 billion.

Republicans see Obama’s budget as a feeble attempt to reduce government spending as they propose over $60 billion in reductions for the remaining seven months of the fiscal year. "This is business as usual at a time when bold, creative solutions are needed. This is not an I-got-the-message budget,” says Senate Minority Leader Mitch McConnell (R-KY). Republicans have their own ideas for reducing government spending, including blocking federal aid to Planned Parenthood, reducing EPA funding by nearly $3 billion, and banning Pentagon dollars from sponsoring NASCAR teams, an expense most Americans are appalled to learn existed in the first place. As for foreign spending, the Defense Department’s budget has already been reduced by $78 billion over the next 5 years, and the Pentagon is now threatening that an additional reduction in funding could affect weapons programs, limit training, maintenance, and even payroll for personnel. Obviously, with 47,000 troops still in Iraq, protecting defense spending should become a priority for Congressional leaders.

Programs like the Market Access Program (MAP) are also on the chopping block. Representative Scott Garret (R-NJ) is proposing to eliminate the program, created in 1985 and currently sustained at $200 million annually, which helps to create and maintain foreign markets for U.S. agricultural goods. Under Obama’s budget, funding for the Agriculture Department would be reduced by $3.2 billion, mostly affecting direct farm payments and subsidies to high-income farmers. Rural home loan programs and wetlands conservation programs would also be subject to a reduction in funding. The Obama administration claims this would save $2.5 billion over the next 10 years. On Monday, the Agricultural Department estimated that net farm income would exceed over $95 billion this year (Brasher). That’s a 20% increase from 2010. Let’s hope their right, because with so many farming programs becoming a target for funding cuts, an increase in income might be the only thing to keep American farmers afloat.

From the looks of things, nobody will escape the wrath of government spending cuts, from the Pentagon to American farmers. A current deficit of over $14 trillion, unemployment at 9.8%, and no end in sight, a reduction in spending is just what the country needs. Both sides seem to have mixed views on how to make that happen, but in Congress’ defense, I have a hard time balancing my checkbook, let alone billions of dollars spread over hundreds of programs with thousands of individuals pining for assistance. We better know the outcome before March 4, or we wont have a government to worry about.

-Grace Boatright
National Grange Program Assistant

Brasher, Philip. “Vilsack calls subsidy cuts for large farms affordable.” 15 February 2011. Web. 18 February 2011. http://www.desmoinesregister.com/article/20110215/BUSINESS01/102150363/Vilsack-calls-subsidy-cuts-for-large-farms-affordable?SPORTS09

Friday, February 11, 2011

Stealing from Landline and Giving to Broadband ….The Robin Hood Story for Today’s Rural America?

On Tuesday, the Federal Communications Commission (FCC) voted to re-task the $8.7 billion Universal Service Fund (USF) monies to address mobile broadband in rural areas and those without high-speed internet access. The move would cut federal subsidies to landline service providers and invest those funds towards mobile and fixed broadband internet services. Echoing this announcement, President Obama was in Michigan on Thursday when he announced his National Wireless Initiative, which aims to expand wireless coverage to 98% of Americans.

Established in the 1990’s, the USF was created to insure that phone service was available to all Americans in all of its far-reaching realms. Today, billions still flow into the USF. Both traditional landline and mobile phone service providers pay into the USF by way of a small user fee assessed on their customers. These fees then pay for the telephone service to customers in rural, sparsely populated or areas with rough terrain where the service is more expensive to provide.

Why the switch? In 1990, the average household relied on a landline as their number one source for communication, but today, cell phones, Skype and Voice over Internet Protocol (VoIP) have created new alternatives and magnified a broadband divide between urban and rural communities. The President thinks he has the answer to bridging the gap by retooling the use of the USF to satisfy the growing need for all Americans to have universal access to broadband.

How big of a boost is this for rural America? Huge. How likely is this to happen? Pretty darn good if the experts wrapped around the axel on speed and deployment don’t get in the way. The President has committed to, and now has a very large fund to pay for, the build-out of broadband. Plus, there are 94 shiny new freshman in Congress who ran on little else but creating jobs and cutting spending. I am not sure if it is our Sputnik moment, but it sure sounds like the awful fax-like, record-scratching sound of dial-up could become a relic of the past.

There is no greater technology available today that can do so much to change the lives of rural Americans. Having access to affordable broadband is the key to opening the doors of businesses, providing virtual marketplaces, tapping into the convenience of tele-health and in general staying competitive no matter where you live. The connectivity to healthcare, jobs, on-line educations, and markets can help repopulate rural areas, slow down the brain drain and give hope to Americans who are desperately trying to keep their hometowns alive. It may not restore what many of us remember as “Main Street U.S.A.” but it definitely gives us the tools to reinvent it. After all, the idea of “Main Street U.S.A.” doesn’t need to go away, it just needs to evolve.

-Nicole Palya Wood
Legislative Director