Taxpayer's Tab: Federal Reserve Transparency & A New "Private" Foundation

NTUF & Friends Commemorate the Late Milton Friedman's Birthday

Sponsored by: National Taxpayers Union Foundation, Alexandria Taxpayers United, BlueSkin Solutions, Carleson Center for Public Policy, and Alexandria Liberty on the Rocks

Calling all free-market advocates, policy experts, lawmakers, and citizens! Join the National Taxpayers Union Foundation for our 4th Milton Friedman Legacy Day event at the famous Columbia Firehouse Restaurant (3rd floor) in Old Town Alexandria, Virginia. Over the years, we’ve celebrated Dr. Friedman’s work in economics, education reform, and liberty through roundtable discussions and film viewings. This year, be on hand with NTUF and friends as we debut an EXCLUSIVE interview between Friedman and the late NTUF President John Berthoud. Friedman and Berthoud spoke about the role of antitrust laws in driving businesses to lobby government and divert resources from producing goods that make our lives better. This will be the first time that the interview has been made available in a digital format.

Complimentary hors d’oeuvres will be served and drinks will be available for purchase.

Please feel free to invite your co-workers and friends to what will be a great remembrance of a great man!

Details:

• DATE: Tuesday, July 31st, 2012 5:30PM to 9:00PM
• LOCATION: Columbia Firehouse
• Register: Facebook or Evite
• Metro: Blue/Yellow Line – King Street Station
  (20-minute walk) Trolley
• Parking: Street parking out front and parking garages are nearby

If you have any questions or wish to join the other Alexandria organizations in cosponsoring this event, email dbarrett@ntu.org.

Most Expensive Bill of the Week

The Bill: H.R. 3990, Encouraging Innovation and Effective Teachers Act

Annualized Cost: $2 billion ($10.4 billion over five years)

Education policy is perennially a popular topic in Congress and several issues of the Tab have covered the Elementary and Secondary Education Act (ESEA), the core legislation establishing the federal government’s role in education. ESEA has gone through many revisions since its enactment in 1965; most recently it was overhauled in 2001 under the No Child Left Behind Act. Sponsored by Congressman John Kline (R-MN), H.R. 3990 would amend ESEA programs that foster interactions with parents, teachers, and school districts. According to the bill's Committee Report, its purpose is to “to encourage states and school districts to identify, recruit, and retain the teachers who have the most talent for improving student achievement and provide state and local leaders with the freedom to direct federal resources to the programs that best serve their student populations.”

The Act would authorize a state-based grant program to foster parental engagement in their children’s learning. Federal funds would be awarded to local districts and organizations to encourage parents to help their children achieve academic success and to promote communication with teachers. In turn, educators would receive funds to develop improved teacher evaluation systems and for professional development activities, such as implementing performance-based pay or new teacher mentoring. Another program to attract and retain quality teachers who formerly served in the military, the Troops-To-Teachers program, is also reauthorized and expanded under the Act.

H.R 3990 would also increase funding for Impact Aid, a program that compensates local school districts that have been disproportionately, financially-burdened by policies of the federal government. For example, a local district that is near an Indian reservation (or a military base) does not receive property tax revenue from those lands because the federal government has deemed it a tax-exempt property. Through the expansion of Impact Aid, these localities would receive public funds to support or integrate charter and magnet school reforms into their districts.

By comparing current spending with figures in the text of the bill and in the Congressional Budget Office’s cost estimate, NTUF determined that H.R. 3990 would increase outlays by $10.4 billion if enacted. The provisions to establish and expand parental engagement would receive the most funding of at least $8.3 billion over the next five years.

To learn more or discuss this bill visit WashingtonWatch.com.

Least Expensive Bill of the Week

The Bill: H.R. 3974, Smarter Approach to Nuclear Expenditures (SANE) Act

Annualized Savings: $10 billion ($50 billion over five years)

Congressman Edward Markey (D-MA) has introduced the SANE Act to make targeted cuts to America’s nuclear weapons budget. He argues that the bill would “cut spending on outdated, wasteful nuclear weapons and related programs over the next ten years and will strengthen our long-term economic and national security.”

H.R. 3974 would end funding for long-range bomber aircraft, such as the B-2 stealth bomber, and would prohibit the development or purchase of any new bombers or other aircraft platforms capable of carrying out nuclear missions. The Air Force would also be required to reduce the number of Intercontinental Ballistic Missiles by approximately 90 to 200 or less. To cut down on nuclear spending at sea, the Navy would have to reduce the number of nuclear-armed submarines by four, leaving eight in operation. The purchase of new submarines would be delayed. A number of facilities and projects related to the refinement, storage, and support of nuclear warfare would also be terminated.

The sponsor asserts these proposals would save $100 billion over the next ten years. Normally, NTUF looks at a five-year budget window of a bill’s impact. Because a yearly breakdown of the SANE Act’s savings is unavailable, the estimate was prorated over five years.

To learn more or discuss this bill visit WashingtonWatch.com.

Most Friended

The Bill: H.R. 459/H.R. 1496/S. 202, Federal Reserve Transparency Act of 2011

Annualized Savings: $3 million ($5 million over two years)

Number of Cosponsors: 274 Congressmen, None, 21 Senators

The Federal Reserve -- the financial entity whose mission is to safeguard the nation’s money supply and monetary stability -- is audited by the Government Accountability Office (GAO). However, the audits performed are limited to certain operations, such as check-processing and some regulatory functions. Examinations of the reserve holdings of member banks and the Fed's transaction with foreign institutions are conducted but through independent studies that are not made available to the public.

Congressman Ron Paul (R-TX) and Senator Rand Paul (R-KY) introduced the Federal Reserve Transparency Act to "eliminate the current audit restrictions placed on the [GAO] and mandate a complete audit of the Federal Reserve to be completed... ."

According to the Congressional Budget Office, the Federal Reserve Transparency Act would require the GAO to hire additional staff and cover increased administrative expenses, totaling $5 million in FY 2013 and 2014.

Cosponsors include:

• H.R. 459: 44 Democrats and 230 Republicans
• H.R. 1496: None
• S. 202: 21 Republicans

To learn more or discuss this bill visit WashingtonWatch.com.

Missed an Issue?

Issue 17 - July 13
Let's Grow Act

Issue 16 - July 6
Tax Reform:
Fair, Flat, & Transaction Systems

Issue 15 - June 27
Health Care Reform Alternatives

Issue 14 - June 20
Veterans' Compensation Cost-of-Living Adjustment Act

Issue 13 - June 15
Prepare All Kids Act