More McHenry County Blog

THE “3-2-1” FEDERAL SAVINGS DEPLOYMENT PROGRAMg

BACKGROUND AND PROBLEM:

Our Federal government’s present budgeting and spending processes can best be characterized as:

“The ill informed, voting on the unknown, who
place others in debt into infinity…”

This status quo is a perversion to what our founders desired of “Congressional oversight” to all operations of the Federal government and as well as the wise and frugal use of such tax monies. Far too often, modern special interests allow the continuation of spending that should not occur and the starting of spending that should never be allowed to happen.

Too often today – most recently in very late December, 2007 - legislators vote on “omnibus packages” that are handed to them just hours before a vote. These packages are more known for the number of pounds they weigh than the number of problems they solve. Much of this can be argued as caused by the shear growth in the unwieldy size and scope of the Federal government. But some of this is simply the nature of the present Congressional processes handling such budgetary matters.

This current environment of spending and lack of congressional oversight can be well remedied by many of Ken Arnold’s “White Paper Solution” innovations such as The Fly Spec Budgeting Act (FSBA). FSBA structures future budget cycles in a way to allow Congress to well review all operations -- and places an initial assumption on a Departments that they receive nothing until they justify their missions, recent spending, and successes with such spending. But with FSBA, initiatives in healthcare and retirement income plan reform, the innovative improvements in federal highway construction and funding, and many other innovations and initiatives of Ken Arnold, one has to then ask the question:

“What shall be done with the hundreds of billions
in annual savings from these many Arnold initiatives?”

That, indeed, is the challenging question to be answered within this white paper. In a sense, the “problem” that arises with Ken Arnold’s numerous creative initiatives is due to various competing interests (which most certainly, we hope, includes the taxpayers too often forgotten in the process) who would wish to then employ such budgetary savings for their own uses. We last saw these conflicts arise in the late 1990s during the last budgetary surplus situation.

Obviously, Democrats would love to take 100% of such monies and place them in all sorts of new Federal programs -- leaving the taxpayers continuing to suffer heavy tax burdens. In contrast, traditional conservative Republicans (which include Ken Arnold) would have loved to return 100% of such savings to the taxpayer and/or toward reducing the Federal debt. However: Due to admittedly practical and patriotic - not political – considerations, neither view must prevail for the national good. All must presently realize that a middle alternative is best to ensure that, politically, all of these money saving initiatives of Ken Arnold are signed onto and passed by a majority in Congress, and, from a public policy standpoint, that real and very neglected infrastructure needs are addressed by the employing some of these funds saved by the various Federal initiatives.

ANALYSIS AND SOLUTION:

Our country’s government has, for far too long, been living in a fantasy. Too many have believed that we could turn into a “Nanny State” where all our wants and needs are satisfied and that the financial tab for this would, miraculously, somehow not ever come due. And in many ways it hasn’t come due – until now.

As the late Senator Barry M. Goldwater once said: “A government big enough to give you everything you want is also big enough to take it all away!” And while some have strived for the Federal government to attempt to give us everything we want, it is already becoming apparent that it may end up having to take much of it away in huge tax increases, collapsing financial and currency markets, and brutal reductions in some of the very prorams intended to sustain some Americans. In essence: The “house of cards” we have built is starting to fall down. An important part of this “sentinel cry” came to us in the collapse of the Minneapolis bridge in 2007. It literally exposed the now weak underpinnings of our entire country’s infrastructure.

Sadly, we Americans have been living on the legacy built by our parents and grandparents – far too often taking of our national infrastructure without putting back into it an equal amount, and more, for the next generation. Just some examples of this “rot from within” are the following:

A) Our planes flying across our country are controlled by air traffic control systems still stuck in

B) Our inland waterway systems of locks and dams have not had substantial renovation or building since they were constructed in the 1930s under the Works Project Administration (WPA) – and it shows.

C) Our interstate highway system, much of it built from the mid 1960s to the late 1970s, is now deteriorating due to lack of reasonable maintenance.

D) A majority of our bridges on Federal, State and local highways are rated as highly deficient or materially deficient in their present condition.

E) Nowhere but in a very narrow corridor of the Eastern Seaboard of the United States is there any high speed rail capabilities to help relieve congestion on our highways as well as our airports.

F) The list could go on and on…

Yes…we sadly HAVE lived on the coattails of our parents and grandparents! And although we could presently analyze the full causes of such short-sighted, self indulgent behavior by the baby boomer generation (a generation that includes this writer), that would do nothing to remedy these problems. So we will not dwell on the causes. Instead: We must face the facts that we HAVE for far too long been “living off our laurels”, we’ve now gone about as far as we could ever hope to go on them, and we must now “pay the piper” and embark on repairing, restoring, and renovating the various infrastructure that our economy, society, and future generations depend on.

This need to spend on infrastructure is what makes, as previously mentioned, neither historical position of the two major Parties currently appropriate when it comes to deploying newly available Federal funds.. Even without the pressing needs of infrastructure – its rebuilding as well as enhancement for future generations – there would never be a time to apply any material Federal budget savings toward new and grand health and welfare programs like the Democrat Party would love to do. Taxpayers are simply too overburdened and the budget and deficits have ballooned to too large of levels for any such initiative to even be dreamed of.

Likewise, however: What even Ken Arnold would have insisted on (i.e. total return to taxpayers of such monies and/or pay down of the Federal deficit) in the 1970s, 1980s, and even 1990s with such savings - can no longer be 100% adopted with today’s realities. There is simply too much unmet infrastructure need to fully adopt that route, either. So “An American Compromise” must be had – a compromise having more to do with true public needs rather than politics or even political philosophies.

Ken Arnold proposes The 3-2-1 Federal Savings Deployment Program. This program would be a pact adopted by the Congress that would essentially have the following elements:

1) The total Federal budget in the year of adoption would be fully assessed and noted as to the various spending programs and amounts. This shall be called the “Basis Year”.

2) Starting with the next budget cycle and continuing thereafter, the “Basis Year” shall only have a Consumer Price Index adjustment applied to it for purposes of the Act.

3) From the following budget year and thereafter, any and all spending reduction initiatives and operational efficiencies that cause the total Federal budget to decline relative to the “Basis Year” (as adjusted annually) shall be considered to be the pool of money to which “The 3-2-1 Plan” shall be applied in the budget year thereafter.

4) The Federal budget savings had from all employed money saving initiatives and efficiencies (had from not only Ken Arnold’s many “white paper solutions” but the ones from many other Congressmen now strongly motivated to provide such initiatives by this 3-2-1 Plan), hereafter called the “savings pool”, shall then be allocated by Congress into three categories:

For every six (6) dollars placed in the “savings pool”…

* THREE (3) dollars shall be applied and spent on reducing the Federal taxation burdens of the people of the United States of America. “Tax Reduction Dollars”.

* TWO (2) dollars shall be applied and spent on various national infrastructure projects needed in the national interest. “Infrastructure Dollars”

* ONE (1) dollar shall be applied and spent to pay down the Federal deficit. “Deficit Reduction Dollars”

CONCLUSION:

Historically and objectively, one has to say that there is no more fiscally conservative Republican than Ken Arnold. I have led the way in being “a friend of the taxpayer” both locally and on national issues. Moreover: I continue to be fully dedicated to this “Goldwater Republican” philosophy of a minimum of government – and a maximum of liberty by that fine instrument we call the U.S. Constitution.

Miraculously, however, what all would initially see as a quagmire of national infrastructure problems I see, politically, as also being our Nation’s ticket to getting a grip on government spending, lowering Federal taxation rates, and reducing Federal deficits. Throughout my travels in the Congressional District, ALL voters acknowledge that we’ve for far too long lived on the laurels of our past American generations and not invested what we should have in maintaining - let alone expanding – such infrastructure. And these same Americans know that they are already overburdened in taxes. This is what gave birth to this “3-2-1 Plan” idea – an initiative that looks with the cold eye of reality in seeing true, National needs and thereafter adjusts what is a true Republican’s normal inclination of returning all savings back to the citizens. Unfortunately, until this infrastructure is restored, and our deficits reduced, not all of these Federal savings can realistically be returned to the Federal taxpayers. From such door to door work, it is already known that taxpayers surely are accepting of this situation -- if Congress is under these guidelines and strictures. With the taxpayers solidly accepting of such “American Compromise”, moreover, both Democrat and Republican leaders will surely follow.

With our Federal spending seen as out of control, our debt swelling to inconceivable levels on a per capita basis, and the increasing demands upon the Federal treasury; developing a disciplined and tight budgeting/spending process with Ken Arnold’s many innovative and documented initiatives is an imperative. However: We must ensure that all such initiatives are adopted via a wide range of support within Congress. For this reason, and to honestly and clearly see thru the politics and dogma and toward the national need for various investments to be made in our infrastructure, this “3-2-1 Plan” would be adopted.

The 3-2-1 Federal Savings Deployment Program is truly the carrot that all members of Congress can be given while also adopting the various sticks to fiscal sanity that Ken Arnold will initiate within Congress. Congressmen can return to their voters and point to not only significant public works being performed and tax rates being reduced – but all of their material and innovative savings initiatives that helped make these happen! It can be a concrete “win” for Democrats and Republicans alike.

Truly for Democrats and Republicans alike - Americans all: The “3-2-1 Plan” is a “grand American compact” and very real win/win for the Nation. Future American generations will both admire its initiation and greatly benefit from it very real results.


Ken Arnold – Republican Candidate
U.S. Congress – 8th District of Illinois
Ken@Arnoldforyou.com
www.ArnoldforCongress.com

Written: January 1, 2008


ARNOLD FOR CONGRESS

“ Strong, Creative Leadership . . . for the 21 st Century ! “


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Labels: 8th Congressional District, Ken Arnold