Thursday, October 2, 2008
Obama Voted To Cut Regulatory Agency Budgets & Staffs In 2003!
Welcome to Illinois in 2003:
In 2003, Democrats took the reigns of Illinois government with control of both houses of the legislative branch and the Governor's office. Facing a budget deficit caused by out of control spending and budgetary shortfalls from post 9/11 recession, Democrats, such as Barack Obama promised to restore fiscal responsibility to the budget. Their solution to this budgetary crisis was the implementation of nearly $2 billion in new social programs, increases in fees and taxes imposed upon Illinois' business community, and massive budgetary cuts in agencies across the board. Over the next 5 years the Democratically controlled legislature and executive branch would fail to balance a single budget, wasting billions on unsuccessful and costly programs while taxing Illinois businesses to the point that Illinois would rank among the bottom 25% of all states in economic growth.
Today, we hear Senator Obama, the prodigal son of the Chicago Political Machine, running on a platform nearly identical to that of the 2002 platform that brought Democrats to power in Illinois. Obama has taken the financial crisis head-on by pointing blame to Republicans and calling for a new 21st century Regulatory platform. Yet, Senator Obama's record in regard to regulation is far from Stellar, especially in Illinois.
After taking control of Illinois in 2003, over the course of the following two years the State would double regulatory fees collected by it's two financial regulatory agencies. Increased fees collected by the Department of Financial Institutions and Office of Banks and Real Estate would balloon. The Office of Banks & Real Estate, under fee increases would see regulatory collections double to over $60 million dollars. Senator Obama proudly voted for bills that imposed over 300 increased fees and taxes on Illinois businesses including regulatory fees.
Yet, with an increase in the collection of regulatory fees, we would expect that these 2 agencies would be better staffed to handle their regulatory functions. Not the case in Illinois.
The increased regulatory fees imposed on banks and financial institutions in Illinois were diverted into the State's general fund and used to help fund Obama and Blagojevichs' new social programs. The regulators in Illinois never received a dime.
More importantly however, is the budgetary cuts that Senator Obama voted for in both 2003 and 2004. Obama supported and voted for Blagojevich's budget cuts which directly affected both financial regulatory agencies in Illinois. In 2004, the Office of Banks and Real Estate suffered an 11.6% cut in it's funding. Obama voted for the $3.6 million cut which resulted in the elimination of 45 positions within the agency which included the elimination of auditors and regulators of banks, financial accounting and real estate transaction auditors. But remember, regulatory fees doubled in 2004. In addition, 2004 budget cuts, supported and voted for by Obama led to a 10.8% cut in the funding of the Department of Financial Institutions. The cut led to a reduction in the staffing from 117 positions to just 90 positions. Now for the kicker...As of 2002, Illinois had the largest number of Commercial banks whose main offices were located within the state of any state in the nation.
Once again, Obama's short lived record just doesn't cut it. He talks the talk, but when push comes to shove he has not walked the walk. Over the past 5 years Illinois has consistently ranked among the bottom of all states in economic growth. Coupled by 6 straight years of fiscal policies identical to those Obama has called for in his campaign, this lack of fiscal constraint has led to a government unable to balance a single budget. It has not worked in Illinois and will not work nationally.
Obama record in Illinois is clear, when given the chance he raised regulatory fees, diverted the money to other agencies, and voted to cut the budgets of the very agencies responsible for regulatory oversight of the financial industry.
J Brown
October 2nd, 2008 |
