It is “unacceptable that HHS fails to maintain accurate financial records and fails to adhere to federal law designed to protect taxpayer dollars from mismanagement and waste,” Sen. Tom Coburn, R-Okla., and Rep. Charles Boustany, R-La., wrote in a Monday letter to the department’s secretary, Kathleen Sebelius. (HT:Federal Times) The USG may not appear to have a very tight wrap on how and where it’s dollars (expropriated or borrowed) get dispersed. This is particularly true when the US Senate has gone over 1,000 days without the benefit of an actual budget resolution instead of a legislative gimmick that relieves them of that responsibility. However, in the street-level reality inhabited by people who actually handle government funds, tight and exacting regulations do exist. One very important one is The Anti-Deficiancy Act which is described below. The Anti-Deficiency Act prohibits federal employees from • making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law. 31 U.S.C. § 1341(a)(1)(A). • involving the government in any obligation to pay money before funds have been appropriated for that purpose, unless otherwise allowed by law. 31 U.S.C. § 1341(a)(1)(B). • accepting voluntary services for the United States, or employing personal services not authorized by law, except in cases of emergency involving the safety of human life or the protection of property. 31 U.S.C. § 1342. • making obligations or expenditures in excess of an apportionment or reapportionment, or in excess of the amount permitted by agency regulations. 31 U.S.C. § 1517(a). (HT: Gao.gov) It seems the accounting firm of Ernest and Young has audited the books at HHS. This occurred in response to HHS identifying and declaring several violations of the Anti-Deficiancy Act. The audit turned over several large rocks and found even more things that stunk in the books of the HHS. At present, HHS reports $500M in discrepancies between what they admit to have spent and what the US Treasury agrees that they were authorized and should have spent. Ernest and Young claims the discrepancy involves an additional $900M that the HHS does not currently adequately account for. Sen. Coburn and Rep. Boustany want to know exactly who in HHS made these regrettable “oversights” and if they were related to the American Affordable Care Act. The Members of Congress in question apparently don’t believe that not reporting $900M in spending is an acceptable methodology by which healthcare can become more affordable. The rest of us shouldn’t either. But then again, when the US Senate cannot even be bothered with debating and formulating a budget for over 1,000 days, it’s not exactly surprising to see mid-level bureaucrats honoring Federal Budgetary Jurisprudence in the breach.
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Secretary Sebelius, Meet The Anti-Deficiency Act.
Wisconsin, the birthplace of the American socialist movement and the first state to allow public employees to unionize, has a blunt conservative governor named Scott Walker who has become a familiar face in the national spotlight. Walker, who signed Republican-backed legislation last year to eliminate most public sector unions’ abilities to collectively bargain while requiring employees to start contributing to their pensions (5.8% of their salaries, on average) and double their health care premium (12.4% of their salaries), has balanced a budget that started with a $3.6 billion deficit. So far, the modest changes in state law are working. For example, Walker’s reforms allow schools to take private bids on health care insurance, saving schools hundreds of dollars per pupil. In addition, school districts have been able to implement performance-based payment systems, which has saved hundreds of teachers from being laid off. For his efforts, Walker now faces a recall effort. Supporters recently filed more than 1 million signatures (twice as many as required). Walker will now be forced to defend himself in a special election. According to Democratic and Republican Party officials, the spending on the recall by both sides is expected to total $100 million. That does not include $9 million in processing and software costs to taxpayers, according to estimates from the Wisconsin Government Accountability Board, the agency tasked with verifying petitions. This week, the MacIver Institute informs TAS , the agency failed to fulfill its promise to post the signed petitions online for inspection, which will only encourage additional expensive legal battles. Thanks to Wisconsin law that allows political committees to raise unlimited funds for recall campaigns, Walker last month added an impressive $5.1 million added to a $12 war chest built up since January of last year. A notable $500,000 donor is Texas homebuilder Bob Perry, a conservative activist and major funder of 527s, such as American Crossroads and the Club for Growth. Recalls in Wisconsin have been permitted since 1926, but only four were held until last year. In an August special election, Democrats and outside union groups spent $44 million trying to recall six state senators. They succeeded only in removing two of them, and thus failed to win back a majority in the state senate. Now, with labor unions making it a high priority to spend heavily in Wisconsin, Democratic consultants are concerned about using so many resources just months before the 2012 general election. Gov. Walker, seeing the political challenges ahead, is proposing a major income tax cut, but he has backed off supporting right-to-work legislation of the sort that has just passed in Indiana. His approval number is at 51% (higher than President Obama’s 47% in Wisconsin), and Democrats are yet to find a strong, well-known candidate to challenge him. Former Senator Russ Feingold was the most popular name floated as a potential opponent, but he is not interested. Dane County Executive Kathleen Falk announced her candidacy in mid-January, but has a record of defeat and extreme-left views. Likely candidates Milwaukee Mayor Tom Barrett and former Rep. David Obey, according to a recent Marquette Law School poll, trail Walker 50-44 and 49-43 percent, respectively. And State Senator Tim Cullen, a candidate who’s won the backing of the increasingly RINO-ish Republican Senate candidate, former Governor Tommy Thompson, also trails 50-40. Walker faces an additional problem: a widening corruption investigation stemming from his tenure as Milwaukee County executive, which has led to the arrest of some of his former top aides. Although Walker himself is not under suspicion, former deputy chief of staff Tim Russell faces embezzlement charges involving more than $21,000 from a nonprofit Walker asked him to run. During the investigation, Russell’s domestic partner Brian Pierick, who has donated $250 to Walker, was charged with a felony child enticement after seized phones and computers showed him trying to lure young children into his van. In addition, prosecutors have charged former aid Kevin Kavanaugh with stealing $43,232 in donations while serving as treasurer of the local Military Order of the Purple Heart. Democrats will certainly make political hay as more details emerge from the investigation that is being led Milwaukee County district attorney John Chistholm, a Democrat. It remains to be seen how badly the corruption investigation will hurt Walker’s chances. But it is clear that the outcome of recall election will set the tone for the rest of the country as states continue to wrestle with the interests of unions and serious fiscal crises.
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Total Recall
This was reported back in December. With this kind of thinking there will never be a recovery in this nation. California ought to be ashamed considering the economic situation in that State.
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Nocovery With Decisions Like This
From F.A.Hayek’s `Road to Serfdom` The Great Utopia There can be no doubt that most of those in the democracies who demand a central direction of all economic activity still believe that socialism and individual freedom can be combined. Yet socialism was early recognized by many thinkers as the gravest threat to freedom. It is
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You Take the High Road, I’ll Take the Dirt Road
George Soros folks George Soros… the guy who almost collapse the British pound George Soros… the guy who fund the liberal attack groups George Soros… the guy who funded Obama Soros confesses at Davos he sees little difference between Romney and Obama. Hey George, Romney is the white guy on the left. Not only did
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George Soros says: Little Difference between Romney or Obama
