
GOP Stimulus Myths (with video)
- It's not true that the bill contains spending for "golf carts." It has $300 million to buy fuel-efficient vehicles, some of which may be electric cart-like utility vehicles like those already in use on military bases and at other government facilities.
- Money claimed to be for "remodeled federal offices" is mostly designated for upgrading buildings to "green" status through such things as thicker insulation and highly efficient lighting, not new drapes or paneling.
- A widely repeated claim that $8 billion is set aside for a "levitating train" to Disneyland is untrue. That total is for unspecified high-speed rail projects, and some of it may or may not end up going to a proposed 300-mph "maglev" train connecting Anaheim, Calif., with Las Vegas.
- There's no money in the bill specified for butterfly parks, Frisbee golf courses or water slides, despite a GOP congressman's claim that the bill "will fund" those projects. He culled those silly-sounding items from a list of 18,750 city projects that the U.S. Conference of Mayors cobbled together as examples of "shovel-ready" projects.
There are serious concerns about this measure from serious people, conservative and liberal alike. Harvard economist Martin Feldstein, for example, a Republican who endorsed the idea of a stimulus, calls it an "$800 billion mistake," saying its spending measures are the wrong ones to "do much for employment." University of Texas economist James Galbraith, a liberal, predicts that the stimulus is too small to “really have an impact” and thinks larger steps will be necessary. The bipartisan Concord Coalition worries that "[c]ommitting to large and persistent deficit spending beyond the recession – even for apparently worthy purposes – would be detrimental to longer-term economic growth through reduced national saving." And as we pointed out in our Feb. 13 article, "Stimulus Bill Bravado," President Obama's claim that the bill will produce millions of jobs rests on unusually uncertain economic assumptions.
However, many Republicans have been focusing their critiques not on the big issues, but on blaming the Democrats for allegedly stuffing the legislation with that lip-smacking, crowd-agitating snack of heathens: pork! As we detail below, some prominent claims of porcine characteristics are either untrue or wildly exaggerated.
"Every Single Day"
So what did you get? Economists say most of the money won’t help this year. The non-partisan Congressional Budget Office says the plan will actually hurt the economy in the long run.
On Screen: Billions for Pork and Pet Projects. Golf Carts. Fish Hatcheries. Remodeled Federal Offices.
Announcer: And what about the billions wasted on pork and pet projects?
On Screen: Sen. Charles Schumer (D-NY).
Announcer: Congressional Liberals say:
Schumer: Let me say this, to all of the chattering class that so much focuses on those little tiny, yes, porky amendments – the American people really don’t care.
Announcer: Is this change you can believe in? Tell Congress to stop the wasteful spending.
Back on the scene is a group that made a splash in the 2008 election with an ad tying Obama to former Weather Underground radical Bill Ayers. (We wrote about Obama and Ayers back in October.) After disclosing at one point that most of its funds came from a Republican billionaire Texan, Harold Simmons, it has managed to keep its funding sources confidential.
The group says its new ad will be running on FOX News, CNN, CNN Headline News, CNBC and FOX Business Network. The ad gets some things right. It's correct, for example, that the stimulus package totals more than you would get by spending $1 million a day since the birth of Christ (2009 x 365 x 1 million = $733.3 billion).
And there is some truth – though not a lot – to the ad's claim that the Congressional Budget Office says the bill "will actually hurt the economy in the long run." What the CBO said in a Feb. 4 letter to Republican Sen. Judd Gregg of New Hampshire was this:
CBO, Feb. 4: [T]he Senate legislationBut what the ad omits is that the CBO also said, in the same letter, that productive government investment could lead to increased output and that overall, the effect on output down the road would be quite small:would reduce output slightly in the long run, CBO estimates, as would other similar proposals. The principal channel for this effect is that the legislation would result in an increase in government debt. To the extent that people hold their wealth as government bonds rather than in a form that can be used to finance private investment, the increased debt would tend to reduce the stock of
productive capital. In economic parlance, the debt would “crowd out” private investment.
CBO, Feb. 4: Including the effects of both crowding out of private investment (which would reduce output in the long run) and possibly productive government investment (which could increase output), CBO estimates that by 2019 the Senate legislation would reduce GDP by 0.1 percent to 0.3 percent on net. H.R. 1, as passed by the House, would have similar long-run effects.
![]()
|
Some of the Army's new Neighborhood Electric Vehicles |
The "electric vehicles" mentioned in the legislation could include what are known as "neighborhood electric vehicles." Though described by some as "streamlined golf carts," NEVs are not actually for golfers. They are vehicles that can go up to 25 mph and are powered by batteries that plug into electrical outlets to recharge, thereby emitting no carbon dioxide. Some do resemble golf carts; others look more like mini-cars.American Recovery and Reinvestment Act of 2009: For capital expenditures and necessary expenses of acquiring motor vehicles with higher fuel economy, including: hybrid vehicles; electric vehicles; and commercially-available, plug-in hybrid vehicles, $300,000,000, to remain available until September 30, 2011.
As it turns out, NEVs are nothing new for the federal government. It already has hundreds of them deployed around the country, says General Services Administration spokesman Bob Lesino, including on military bases and at the government's Solar Park in Denver, a collection of government facilities that are powered partly with solar energy. In fact, the U.S. Army announced last month that it will lease 4,000 NEVs over the next two years. According to the Army, the NEVs cost just $460 per year to power, versus $1,200 for a conventional gasoline-fed vehicle.
The military is even working on developing hybrid vehicles that could be used on the battlefield.
Fish Hatcheries
So,
there is no telling how much of that amount will actually be used for work on fish hatcheries. Interior Department spokesman Frank Quimby told us: "We have no specific information at this point." Winchell said that the emphasis would be on funding projects that create the most jobs in the shortest amount of time and provide value over a long period.
According to an Interior Department press release, the agency is developing a Web page through Recovery.gov for the public and will begin providing detailed information on its efforts by March 3.
The AIP ad also mentions money for "remodeled federal offices," which is seriously misleading. The bill allots $5.5 billion to the Federal Buildings Fund of the Public Buildings Service, of which $4.5 billion
is reserved for converting GSA facilities to "High-Performance Green Buildings." According to GSA's acting administrator, Paul F. Prouty, this will allow the agency to comply with laws requiring it to reduce energy and fossil fuel consumption. Plans for making the buildings more environmentally friendly include thicker insulation, more efficient windows, dual flush toilets and LED lighting in parking garages – small changes, but GSA owns about 1,500 properties that would need to be updated. They also have bigger plans, such as installing energy-producing roofs and intelligent lighting systems.
Officials at the General Services Administration, the PBS' parent, declined to discuss their proposed projects with us, because they are still finalizing plans. So we can't say how much of the remaining $1 billion will go for new construction, and how much might go for upgrading existing government offices. But for the most part, the ad's claim can be considered true only to the extent that anyone considers such things as weatherstripping and added insulation to be "remodeling."
For the record, a GSA press release on Feb. 20 quoted Anthony Costa, acting commissioner of PBS, explaining why an investment in federal buildings belongs in the stimulus bill. “We can help stimulate the economy by getting money flowing to the building industries – to construction workers, electricians, plumbers, air conditioning mechanics, carpenters, architects, and engineers,” Costa said. PBS owns and leases buildings and historic properties all over the U.S., meaning that the FBF appropriation could potentially provide jobs throughout the country.
A number of congressional Republicans, including Reps. Patrick McHenry (N.C.), Thaddeus McCotter (Mich.), Candice Miller (Mich.), and Sens. John McCain (Ariz.) and Jim DeMint (S.C.), have accused Senate Majority Leader Harry Reid, a Democrat from Nevada, of inserting an $8 billion "earmark" into the stimulus bill for a levitating train from Disneyland to Las Vegas. That’s a major distortion. No money is specifically set aside for such a train.
What the bill contains is $8 billion in funding for unspecified high speed rail projects (skip to p. 237 for the relevant section). The money is to be allocated by the secretary of transportation. A DOT spokesperson told us that it is “premature to speculate” about what exactly will be funded. Even vigilant pork-busting budget watchdogs agree that the "levitating train earmark" charge is without merit: Taxpayers for Common Sense, a nonpartisan group that scours legislation for earmarks, told us that there is "no way that this provision is an earmark for Sen. Reid."
In truth, “levitating” trains really do exist – but they are properly called maglev trains, and they are high-tech marvels. The technology uses electromagnets to lift the train off the tracks. That reduces friction and allows trains to reach extremely high speeds; in 2003, an experimental Japanese maglev train reached a record speed of 581 kilometers (or about 361 miles) per hour. Here it is in action:
Officials in both Nevada and California, including California Gov. Arnold Schwarzenegger and Nevada Gov. Jim Gibbons (both Republicans) have agreed to back a maglev train between Anaheim (home of Disneyland) and Las Vegas. In June 2008, Reid did help to secure $45 million for an environmental study of the proposed route.
It's possible the Anaheim-Las Vegas project will receive some of the stimulus funds, though how much remains uncertain. It's not even clear how much Reid expects will go to it. On Feb. 12, the Associated Press reported that a statement from Reid's office bragged that the Anaheim-Las Vegas project could receive what AP called "a big chunk of the money." But The Washington Post later quoted a Reid spokesman as saying that while the project is “eligible" for funding, the transportation secretary, Ray LaHood – a former Republican congressman – "will have complete flexibility as to which program he uses to allocate the funds." We asked Reid's office to explain the discrepancy – "big chunk" or merely "eligible" – but we received no response.
In any case, the weaker statement is more in line with the actual text of the legislation:
American Recovery and Reinvestment Act of 2009: Within 60 days of the enactment of this Act, the Secretary shall submit to the House and Senate Committees on Appropriations a strategic plan that describes how the Secretary will use the funding provided under this heading to improve and deploy high speed passenger rail systems.
Is this pork? Taxpayers for Common Sense's Ehrich Zimmermann told us: "Nothing about the bill indicates that maglev has a higher priority than other types of high speed rail." That is the DOT's view as well. A spokesperson for the DOT told us: "The Secretary of Transportation is developing a comprehensive plan over the next 60 days to ensure the allocated high-speed rail funds are spent on projects that will have the highest-impact across the country."
The L.A.-to-Vegas project may well be under consideration for funding; according to a FAQ
posted on the Federal Railroad Administration's Web site, maglev projects are eligible for funding under ARRA. But that same FAQ also points to a 2005 Railroad Administration report to Congress that found that outside of the heavily populated northeast corridor (roughly D.C. through Boston) and a 527-mile section along California's coast, maglev’s costs exceeded its benefits. That implies that the proposed Disneyland-to-Las Vegas route doesn't make economic sense to the FRA.
We can’t predict the future, and it’s certainly within the realm of possibility that the Republican who is Obama's transportation secretary will decide to devote the entire $8 billion to a project that is nowhere near shovel-ready and that the Federal Railroad Administration says is not cost-effective – all for the benefit of the Democratic majority leader. But we wouldn’t bet on it.
Of Dog Parks and Frisbee Golf
ARRA: Sec. 1604: None of the funds appropriated or otherwise made available in this Act may be used by any State or local government, or any private entity, for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool.
All of Paulsen’s picks are also in a Wall Street Journal article highlighting these seemingly less-than-necessary requests. The Journal said "the bulk of proposals are roads, sewers and similar projects." But "some localities," it noted, "are using a kitchen-sink strategy."
Chula Vista also included a $500,000 dog park as a project worthy of possible federal funding, but Pursell says it “was never a priority” on the stimulus list and any of the proposed projects still would need to be vetted by the city council. So far Chula Vista hasn't received a penny of stimulus funds.
— by Viveca Novak, Joe Miller, Lori Robertson, Jess Henig and D'Angelo Gore
Prouty, Paul F. "General Services Administration's Contribution to Our Nation's Economic Recovery." 11 Feb. 2009.
General Services Administration. "GSA Plans for Recovery Act Funding Increase." 20 Feb. 2009.
111th Congress. H.R. 1, as passed by Congress, Feb. 2009.
Earle, Geoff. “Congress $hopping Carts.” New York Post, 11 Feb. 2009.
Elmendorf, Douglas W. Letter to Sen. Judd Gregg. Congressional Budget Office, 4 Feb. 2009.
Congressional Record 10 Feb. 2009: S2042.
“Army Announces Historic Electric Vehicle Lease.” News release, U.S. Army. 12 Jan. 2009.
U.S. Conference of Mayors. “ 'Ready to Go': Jobs and Infrastructure Projects." America’s Mayors Report to the Nation on Projects to Strengthen Metro Economies and Create Jobs Now, 17 Jan. 2009.
Levitz, Jennifer and Philip Shishkin. “Stimulus Brings Out City Wish Lists: Neon for Vegas, Harleys for Shreveport.” Wall Street Journal, 4 Feb. 2009.
The Federal Stimulus Bill. City of Austin, Texas, Web site, accessed 24 Feb. 2009.
City of Chula Vista, Calif. “Economic Stimulus Proposal,” 18 Dec. 2008.
Interview with Liz Pursell, director of communications, city of Chula Vista, Calif, 23 Feb. 2009.
Interview with John Hrncir, government relations officer, city of Austin, Texas, 23 Feb. 2009.
Interview with Erich Zimmermann, senior policy analyist, Taxpayers for Common Sense, 23 Feb. 2009.
Interview with Bob Lesino, spokesman, U.S. General Services Administration, 23 Feb. 2009.
Eggen, Dan and Nakashima, Ellen. "Despite Pledges, Package Has Some Pork." 13 Feb. 2009. Washington Post. 23 Feb. 2009.
Federal Railroad Administration. "Rail Programs Funded Under The American Recovery and Reinvestment Act (ARRA) of 2009: FAQ." 23 Feb. 2009. U.S. Department of Transportation: Federal Railroad Administration. 23 Feb. 2009.
Federal Railroad Administration. "Report to Congress: Costs and Benefits of Magnetic Levitation." Sept. 2005. U.S. Department of Transportation: Federal Railroad Administration. 23 Feb. 2009.
Rogers, David. "Obama plots huge railroad expansion." 17 Feb. 2009. Politico. 23 Feb. 2009.
Schwartz, David McGrath. "Governors agree to back fast train." 22 Dec. 2008. The Las Vegas Sun. 23 Feb. 2009.
Taylor, Andrew. "Economic Stimulus Package on Track for Final Votes." 12 Feb. 2009. Associated Press. 23 Feb. 2009.
U.S. Department of Interior. “Salazar Begins Rapid, Responsible Implementation of Interior’s $3 Billion in Economic Recovery Plan.” News Release, 20 Feb. 2009