Member Earmarks Increase According to Taxpayer Group

Members of Congress continue to take advantage of their positions on key committees in doling out Federal dollars to their constituents according to a recent report, TCS FY2010 Earmark Analysis: Apples-to-Apples Increase in Earmarks.

Taxpayers for Common Sense recently released an analysis of earmarks included in the Fiscal Year (FY) 2010 appropriations bill and found a slight increase in the number of pet projects included in the funding bill. Earmarks are set-asides included in an appropriations bill at the member’s request.

Taxpayers for Common Sense is an independent and non-partisan voice for taxpayers working to increase transparency and expose and eliminate wasteful and corrupt subsidies, earmarks, and corporate welfare.

According to their analysis, a Member’s position on the Appropriations Committee made a huge difference in the amount of money the Member of Congress was able to divert to his or her home state or district. Predictably the chair representing the party in power is bale to use that influence to provide funding back home.

Of the top recipients of earmarked funds in the Senate, eight of the top ten are Democrats and six of the top ten are on the Appropriations Committee. The amounts secured include Sen. Thad Cochran (R-MS) at the top of the list with close to $500 million to Sen. Dianne Feinstein (D-CA) who rounded out the top ten with $211 million.

In the House, The top ten recipients included three Republicans in the top five ranging from the top of the list, Rep. Bill Young (R-FL) with almost $90.5 million and the bottom of the list, Rep. James Moran (D-VA) with slightly more than $38 million.

The analysis showed that the majority party typically doles out 60 percent of the earmarks funds. Senate appropriators tend to receive approximately 48 percent of earmark funds while their colleagues in the House receive roughly 30 percent of all earmarks.

The group offers two principal recommendations for reform:

1. Reduce the number and cost of earmarks and the types of projects eligible for earmark funding. Included in this recommendation is the call for reducing the funding level for earmarks by 50 percent; banning earmarks for private or for-profit entities; disallowing earmarks in competitive or merit-based funding programs; and, establishing a term-limit on the funding of projects.

2. Increase transparency of earmarks. They recommend a centralized location where all earmarks are displayed in an easy-to-read downloadable format; include amplified budget information like the type included in the president’s budget; allow all legislation to be viewed 72 hours before it is under consideration; and creating a mechanism which allows some enforcement of compliance.

The report’s release coincides with the start of the annual appropriations process after the president released the FY2011 budget proposal. Hearings on next year’s budget have begun with Shaun Donovan, Secretary for the Department of Housing and Urban Development scheduled to appear before the House Subcommittee on Transportation, Housing and Urban Development and Related Agencies on February 23.

Senator’s Illness Raises New Concerns for Democrats

New Jersey Sen. Frank Lautenberg’s diagnosis of cancer creates another headache for Democrats as the mid-term election inch closer. If Lautenberg is unable to resume his work in office, the sitting governor, Chris Christie, a Republican, by law, will appoint his successor.

The announcement of Lautenberg’s illness comes at a time when the Democratic Party was reeling from the decision by Sen. Evan Bayh (D-IN) to retire instead of pursue another term. Democrats are expected to maintain control of both chambers of Congress after this fall’s elections; however, Republicans are expected to make significant gains seats in both chambers.

Losses of any sizeable number of Democrats could undermine that party’s efforts in pursuing its agenda in the future particularly for affordable housing programs. However, Republicans are not resting easy since Tea Party activists are challenging the party to veer further to the right and work towards reducing Federal funding across the board. Tea Party activists are expected to back more conservative candidates in the Republicans primaries. This tactic could result in a Republican candidate running for office in the fall which satisfies the desires of the party activists but is not compatible with voters in that particular district.

Home-Based Businesses Contribute to Employment and Overall Economy

Home-based businesses are becoming a growing force in the US economy and are as successful as non-home based businesses with a median household income higher than the general population, according to a research report Homepreneurs: A Vital Economic Force.

According to the Small Business Success Index (SBSI) home-based businesses account for 34 percent of all small businesses which provide more than half of the owner’s household income. According to the analysis:

- The vast majority of them, 75 percent, work full-time in their home business.

- Half have employees.

- Thirty-nine percent have between three and five employees.

- Ten percent have more than five employees.

- It is estimated that home-based businesses, homepreneurs, hire roughly 13.2 million people versus 10.4 million hired by companies funded by venture capitalists and 9.2 million hired in the oil and gas sector.

Home-based businesses are expected to increase in the next few years because of the lower start-up costs associated with home-based businesses; demographic and social shifts as home-based businesses are a viable work option; and, the lack of corporate jobs.

SBSA is a collaboration between Network Solutions and the Robert H. Smith School of Business at the University of Maryland. The index measures small business competitiveness and success looking at six key factors: access to capital, marketing and innovation, workforce, customer service, computer technology and compliance as it relates to small businesses.

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