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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (11589)	1/11/2003 12:11:53 AM
From: stockman_scott	Read Replies (2) \| Respond to of 89467

TP: thanks for sharing your insights... No job can be taken for granted in this environment (even if you're working for yourself / consulting). regards, -s2 btw, what are you hearing from your contacts at DELL..? Are they still tightening their belt...?

To: TigerPaw who wrote (11589)	1/11/2003 12:14:13 AM
From: stockman_scott	Respond to of 89467

Latest Budget Figures Show States Falling Deeper Into Deficit; CA's $35B Deficit Leads Nation; TX Now Surpasses NY as 2nd Worst To: National Desk Contact: Bob Adams of the American Legislative Exchange Council, 202-466-3800 WASHINGTON, Jan. 7 /U.S. Newswire/ -- Latest budget figures released today by the American Legislative Exchange Council (ALEC) show state budget deficits deepening with California's alarming $35 billion deficit leading as the worst in the nation. Texas, which recently surpassed troubled New York, is second worst with a potential $12 billion budget deficit. Total state budget deficits for fiscal years 2003-04 now approach $90 billion nationwide. "These figures are simply staggering," said Michael Flynn, ALEC's Director of Policy and Legislation. "But what's more alarming is that few states have yet to responsibly address this self-inflicted crisis, a decade in the making, which finally hit home well over a year ago." The American Legislative Exchange Council (ALEC) is the nation's largest bipartisan, individual membership organization of state legislators with over 2,400 legislator members from all fifty states. The top-ten states experiencing massive budget deficits include: 1. California, $35 billion 2. Texas, $12 billion 3. New York, $10 billion 4. Minnesota, $4.6 billion 5. Wisconsin, $2.6 billion 6. Michigan, $2.4 billion 7. Illinois, $2.25 billion 8. Washington, $2 billion 9. Connecticut, $2 billion 10.Maryland, $1.8 billion "Raising taxes or clamoring for a federal bailout is not the answer, and in fact will only perpetuate and deepen the current fiscal crisis," said Flynn. "What's required is a candid and sober evaluation of each state's medium and long-term costs of operating government. It's only by reducing the size and scope of government in strategic and imaginative ways that each state finds a way out of its woes." Recently, the American Legislative Exchange Council and the Manhattan Institute for Policy Research released a groundbreaking report on state budgets, "Show Me the Money": Budget-Cutting Strategies for Cash-Strapped States. The report is a comprehensive evaluation of state budgets, offering 10 strategies for cutting state budget deficits, including short-, medium-, and long-term plans for reducing the cost of government. For a complete list of deficit figures from all fifty states, a copy of the report "Show Me the Money," or for more information, visit ALEC's Web site at alec.org or contact Bob Adams at (202) 466-3800. usnewswire.com -0- /U.S. Newswire 202-347-2770/ 01/07 09:42 Copyright 2003, U.S. Newswire usnewswire.com

To: TigerPaw who wrote (11589)	1/12/2003 12:03:05 AM
From: stockman_scott	Respond to of 89467

Bush Proposes Big Increase in S.E.C. Budget By RICHARD W. STEVENSON The New York Times January 12, 2003 WASHINGTON — President Bush made good today on a promise to seek a big increase in spending for the beleaguered Securities and Exchange Commission, saying that his budget for next year will propose a 73 percent increase from last year's level to help the commission fight corporate fraud. Mr. Bush also disclosed that he would propose spending increases for the Justice Department to expand corporate fraud investigations, as well as more money to help the Labor Department recover pension-fund assets for the employees of companies victimized by fraud. The announcement continued an effort by the administration to deal with last year's wave of corporate scandals, an issue that has weighed heavily on the stock market, exposed deficiencies at the commission and left Mr. Bush vulnerable to criticism from Democrats that he had not done enough to crack down on malfeasance by business executives and their accountants and bankers. "The S.E.C. and Justice Department are the referees of corporate conduct," Mr. Bush said in his weekly radio address. "Under my budget they will have every resource they need to enforce the laws that punish fraud and protect investors." Democrats said in response that Mr. Bush had been slow to come around to the need for more funding to fight corporate wrongdoing. David Sirota, the spokesman for Democrats on the House Appropriations Committee, said Mr. Bush had "no credibility" on corporate responsibility. "George Bush's promises to fully fund the S.E.C. are about as believable as his Enron buddies saying they balance their books," Mr. Sirota said. Today's announcement was part of a campaign by the White House to highlight the relatively few substantial spending increases contained in what is sure to be an otherwise tight budget that Mr. Bush is scheduled to deliver to Congress early next month. The president's budget proposal, covering the fiscal year starting on Oct. 1, will seek spending increases for the military and domestic security, but is expected to demand freezes or cuts in many other programs. This reflects the administration's desire to check the growth of government and partly offset the upward pressure being put on the budget deficit by the weak economy, tax cuts, the costs of battling terrorism and the potential bill for a war with Iraq. Through much of last fall, Mr. Bush rebuffed efforts by Congress to win his approval for a large spending increase for the commission. But last month, Mr. Bush reversed course and pledged to nearly double the agency's budget for the next fiscal year, relative to its budget for last year. Today, Mr. Bush was specific, saying he would seek $842 million for the commission, 73 percent more than last year's level of just under $487 million. Congress has not yet agreed on a budget for the commission for the current fiscal year. The president said he would also add $25 million to the Justice Department's budget for fighting corporate fraud: $16 million for the F.B.I. to hire additional staff members, including 56 new agents, and $9 million for 29 new prosecutors and positions to support them. The White House said Mr. Bush's plan would also include additional money to help the Labor Department seek to recover $500 million in pension plan assets looted or lost because of corporate malfeasance. In his radio address, Mr. Bush tied his efforts to combat corporate wrongdoing to the $670 billion tax cut he proposed this week, saying both were essential to promoting robust economic growth. "Our country has made great progress in restoring investor confidence and putting the recession behind us," the president said. "We cannot be satisfied, however, until every corporate wrongdoer is held to account, and every part of our economy is strong, and every person who wants to work can find a job." Mr. Bush did not address the commission's budget for the current fiscal year. The agency's budget for this year has been in limbo, partly because Congress is late in completing work on the annual government spending bills and partly because the administration had resisted efforts on Capitol Hill to give the agency the full $776 million promised to it in legislation last summer. The administration had originally sought to hold the budget to $568 million for this year, but more recently has signaled some flexibility. Representative Frank R. Wolf, the Virginia Republican who is chairman of the Appropriations subcommittee that deals with the agency's budget, said this week that he would seek the full $776 million for this year. If Mr. Bush were to agree to the $776 million figure for this year, his $842 million figure for next year would represent a one-year increase of 8.5 percent. The commission's leadership, budget and capabilities have been central topics in the debate over whether the federal government has been adequately equipped to deter, detect and prosecute schemes to inflate earnings, hide debt or otherwise mislead investors. After drawing intense criticism for his stewardship of the commission, Harvey L. Pitt resigned as chairman two months ago, but he remains on the job pending Senate confirmation of the former Wall Street executive the president nominated to succeed him, William H. Donaldson. The commission's enforcement and compliance divisions have been understaffed and limited in their ability to open investigations. The corporate finance division has been unable to keep up with the flood of corporate filings. The market regulation division has had little success in winning approval for rules regulating how stock markets set prices. With Mr. Bush now committed to a substantial budget increase, Mr. Donaldson now seems likely to take office with the ability to hire more accountants and lawyers to examine corporate books and crack down on suspected wrongdoing. But he will also have to address a catalog of other troubles, including low morale and the possibility that the commission has lost its status as the primary enforcer of honesty and transparency in the markets to state prosecutors and other watchdog agencies.