Opinion

Stimulus vs. morality

Tuesday, February 10, 2009

Councilman Aaron Kircher was excoriated by his fellows and the City Manager at the last McCook City Council meeting. Aaron started the perfect storm when he stated that it was against his principles to ask for unneeded largess from the huge spending bill currently passed by the House and Senate but not yet cleared by the joint committees that will iron out the final compromise.

Aaron's fellow Councilman, Jack Rogers called his thinking na*ve! The very idea of not getting the City's extra spending needs registered with the Nebraska Department of Roads so we could get in the front of the line to receive "free money"!

NDOR presumably will be holding the money spout when the U.S. Congress authorizes the flood of cash. Other responses from Aaron's peers included the venerable "If we don't take the money then North Platte will." I love that one! It is related to "I want to because everyone else is doing it!" Aaron's response was along the lines that he has never been a fan of that sophomoric justification for action.

City Manager Fritch's response to the caterwauling was something like "If we get the funds from the stimulus package, they will free up money for other projects!" Ah yes, extra spending. Free money but never any thought to using the stimulus package windfall to reduce property taxes for the folk.

Gazette reporter Lorri Sughroue reported the melee in the Council Chambers with a balanced article. One reader also responded that he too agreed with Councilman Kircher on his moral stand and that for sure the reader would be voting for Aaron next time he ran for office. It is a shame that all the taxpayers in McCook weren't there to watch their representative government in action.

The nexus grandeurs that precipitated all the action came when it was revealed that the city staff, apparently without input from the council, had responded to a request by NDOR to forward any projects that had been engineered and could be ready for bid in a short time frame. Staff had indeed sent several projects to NDOR. Those were construction projects that had been delayed for funding in future budgets, or possibly in case a bundle of money (hopefully an "earmark"?) should happen to come down the pike.

And that was the point that Councilman Kircher was attempting to make. He stated, and rightly so, that we really didn't need the money at this point in time. What he feared, and of course what happened, was that all these new needs would be aggregated at state level and forwarded to Washington. Then the Democrats could make the case that "See the states and cities are in dire need of infrastructure repairs and therefore this giant spending bill must be passed." Somehow the big pork/earmark advocates neglect to mention that "Oh by the way it is essential that you reelect me because from the goodness of my heart I am sending all this 'free' money your direction."

Should the city staff have forwarded those unfunded projects to NDOR? The answer is of course YES. McCook, Red Willow County and every other local governmental entity is trying to provide the best services to their citizens for the least amount of tax money. Any chance to share in the largess of free federal money they must also jump on like a duck on a June bug. Never mind that there may be strings attached. Just remember everybody else is doing it and that makes it right.

Councilman Kircher's assertion that McCook really doesn't need the money at this time is true and carries the weight of morality in its correctness. That is the way the budget process works on state, city and local levels where the State Constitution requires that the budget be balanced every year. In 12 budget cycles while serving on the County Board and City Council I learned that each subdivision of the city or county submitted its projected need for funds for the year. All those needs are aggregated and then weighed against the projected revenues for the same time frame. Always the needs are greater than the funds to pay for them and through a painful process, some projects are delayed into the future and some are rejected outright. An ongoing alternative for the council/board is to raise taxes, but such a move normally causes an outcry from the taxpayers who often remember at the next election. Both the City of McCook and Red Willow County are fortunate to have council/boards that can say no and who set tax levies that are less than the maximum allowed. Councilman Kircher is correct, "We don't really need the money." If we truly needed it the council could have raised the tax levy and extracted it from the taxpayers.

Another aspect of the arrival of a large amount of unexpected revenue into the city's budget is that those funds will all get spent. After all, isn't that the intent of Congress, get the economy rejuvenated by spending great amounts of "free" money? Then what happens next year? The city staff will point out that we "needed" that amount of spending last year and of course the new elevated level of spending should continue. Somehow there is a ratchet effect, spending, therefore taxes, can only go up, never down. Now if the new-found largess was returned to the taxpayers by a reduction in property taxes I would be more in favor of accepting the new federal money.

One can bet that wouldn't happen. Hang in there Councilman Kircher, Mr. Frugal; you are thinking along the right line.

That is the way I saw it.

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  • Try number two: Hi there, my longer post is now on its way to ?? land, so I will make this one shorter, so it won't be missed, if it disappears.

    Well said, Dick. Well argued Councilman Kircher. I can only pray that many feel the way I do. We do not need free anything, if it is going to help bankrupt our country.

    And that's all I have to say about it. Arley Steinhour

    -- Posted by Navyblue on Tue, Feb 10, 2009, at 5:23 PM
  • Something the city council needs to understand is that there really is no such thing as "free" money. That money has to come from somewhere, and usually it comes from taxes. Councilman Kircher showed courage and level-headedness in not jumping on the greed bandwagon. We need more like him in our government, at all levels.

    Sandy Gillispie

    -- Posted by dlfiend4ever on Wed, Feb 11, 2009, at 10:23 AM
  • Again here we go, way too many people get all their facts from the likes of Hannity and Rush.

    What does the winner of the NOBEL PEACE PRIZE FOR ECONOMICS (2008)have to say about the stimulus package? Not big enough!!! He says it needs to be bigger to jump start the economy. Of course Mr. Trail, Mr. Navyblue, Rush Baby, Hannity, and 80% of the 3rd district of Nebraska all know more than the winner of the Nobel Prize for economics!! How many of you have degree in economics? or just a degree of hearing loss from listening to the big blowhard that spews his right wing bile on the EIB (Excellence in Blowharding) Radio Network. Sure things aren't as bad around here, but it's started--Parker--Valmont--Railroad, and it can get a lot worse before it gets better, take the money, improve our streets, get people jobs so they can pay taxes, spend money, stimulate the economy, so more jobs are created so more people go back to work, spend money, etc etc. Which also gets them off of the unemployment rolls, food stamps etc. Of course the publicans held out for a tax cut. Don't everyone spend the $13.00 a week all at once.

    -- Posted by goarmy67 on Thu, Feb 12, 2009, at 11:37 PM
  • Maybe you should check your facts Mr. Kidding. Valmont only let go about 40 people AFTER hiring over 200 additional emplyees over the last year. That tells me they are still + 160 workers from where they were before the recession hit. So much for your theory.

    Just because you win a Nobel prize doesn't mean you are all knowing and 100% correct, just ask Al Gore. His "Inconvienient Truth" is mostly filled with half truths and general assumptions and it's passed off as facts. It is written in the same fashion as Racheal Carson's "A Silent Spring" with led to the modern day environmental wackos.

    You seem to even contradict yourself, you want this bill stimulus, yet you want more jobs, tax payers, etc. 600 Billion in new government spending on STD education in school and the Salt Marsh Mouse in San Fran is not going to creat one real job. Only more government tax cheaters with grossly high saleries.

    -- Posted by Justin76 on Fri, Feb 13, 2009, at 7:44 AM
  • Justin, perhaps you should read my post again.

    I never said a word about how many have been hired. I said it has STARTED around here, with layoffs, at Valmont, Parker, and the railroad. Yes sir, ALL of those have been hiring people for the past few years, thank goodness for McCook and the surrounding area, that they have been. But the facts are, they are now starting to lay off workers. ONLY about 40 people at Valmont(?), bet some of those 40 do not take it as lightly as you seem to. I will again state my "theory" as you put it. Things are not so bad around here,but it (layoffs) have started, Valmont, Parker, and the railroad, and it can get a lot worse before it gets better. What part of that is wrong? Perhaps I should have used the word could instead of can?

    As far as you stating that I contradict myself about the stimulus bill and jobs. Perhaps you should read up some on economics. When the stimulus bill creates jobs,people that were on the unemployment rolls will now be working and paying taxes,and become productive workers paying taxes, spending money, and creating more jobs, which should then create more jobs, more tax payers, more consumers, buying more goods, creating more jobs supplying the goods, etc. etc. What we need now in this county is more jobs!

    And by the way that sure seems like a rather large amount for your STD education and for a mouse.Sure it is a large amount to pay back, close to a trillion, but did not your ex-fearless leader, W run up over a trillion in debt for that rat hole called Iraq? Why weren't the publicans in Congress worried about that trillion?

    I would like to know how you are such an expert on the global warming issue? Who says that Gore's ideas are half truths and assumptions? I know, Rush says! I listen to the blowhard to get a good laugh, but I can only stand that laugh about once a month! I do believe that very few in our lifetime will know the end result of the effects of the present climate change. Of course if Rush says something ain't so, it just aint' so. Ditto heads just continue to feed the blowhard, with his 20 million per year, I'm sure he is laughting all the way to the bank.

    -- Posted by goarmy67 on Fri, Feb 13, 2009, at 7:35 PM
  • Somebody's a grump! If you lived at my house, I'd send you upstairs for little nap with your Jay Jay The Jet Plane pillow...

    'kidding' We understand that the high school years are a tough time for any young girl. Your hormones are raging and that's what makes you lash out. Hang in there, it will get better.

    Who knows? Maybe you'll end up marrying some hard working farm boy. You'll learn where money really comes from. Then you'll know why it's so hard to give it to people who don't have a clue where it came from... Maybe

    You may even learn something about economics...

    Kudos to Mr Kircher. Keep up the good work.

    Josh Trail

    -- Posted by AnotherFlyinTrail on Sat, Feb 14, 2009, at 7:41 AM
  • Dear dusty trails,

    1. no airplane pillows thank you, once a grunt always a grunt. I worked for my pay in the Army, didn't sit on my fanny looking out at the clouds.

    2.wrong age and gender

    3. already married, and I do know where money comes from. Worked for every cent that came my way. Never had a 2nd mail box at the old farmstead to back up to.

    4. I do know some about economics, put 5 kids through college, try that sometime young man.

    5. Sorry but your lame attempt at humor doesn't fly! HA HA my attempt at lame humor.

    6. Perhaps the next time your mommy lets you play with the computer you can make some constructive comments about the economic situation facing this nation. By the way our governor(republican) said he is ready willing and able to take the highway money to help the Nebraska economy. (Sunday's paper front page.)Guess he knows nothing about economics either! Right?

    7. I admire Mr. Kircher for stating his views on this matter, and I normally agree with most of his positions, but I do not agree with him on this, and I guess that is one of my rights, right? Sticks and stones....sonny.

    -- Posted by goarmy67 on Sun, Feb 15, 2009, at 2:50 PM
  • Democrat philosophy: W. ran up a huge debt...that's our job and we want our shot to run up a huge debt too. I don't think that's the kind of logic that is going to help this nation move forward and it certainly won't solve any problems.

    I find it humorous that because someone opposes Al Gore or some other emocrat idea that means they only get it from Rush. It must be a good thing everyone has Rush or else NO ONE would eeeever think of these things. Rush is the only person on Earth who thinks and the rest of us just follow....typical democrat ignorance.

    Jobs, we need jobs. I keep hearing that but it seems you don't care what the actual job itself will do to help our economy. You seem to think, "people will work and everything will be ok". That's not how the economy works. We need to add value to the economy. That is through the manufacture of tangible goods that add real value such as cars, planes, computers, etc. The focus in this bill does not heavily favor these types of jobs. There are a few things that will mildly help but on a much smaller scale than the investment in police, GAO employment, roads, scientific research particularly in only showing why carbon dioxide is bad for the climate. These things do not add value to the economy because they have no value in the marketplace. It's called getting the cart before the horse. You invest in jobs that will let your economy thrive and with the income going to the government through increased tax revenue, you can appropriate money to all those particular causes. However, this was a chance to spend a lot of money for pet projects that couldn't see the light of day on their own merits and not stimulating our economy.

    The reason why these things needed to be discussed on their own merits is because there are several details on every appropriation that need to be discussed and debated but they were not because it was shoved through in the hopes that no one would object to the earmarks that were in there. I know some people consider 25, 50, 125, 300 million dollars or more, a "tiny amount" but those are taxpayer dollars and a lot of people worked hard for that money. So, if you're elected and you're in charge of that money then you are supposed to be a good steward of ALL taxpayer money not just "most of it" and good stewards of taxpayer money do not call millions of dollars "tiny" amounts. With that kind of philosophy our kids and grandkids will have more debt to pay than any generation could ever imagine. Hopefully, the future generation will do a better job than what we are doing. I sure hope, in hindsight, they will realize the foolishness of this decision to indebt our future. W. put us into a world of debt and all I hear is "he did it, so it's ok for us to do it too" and that thinking will only sink us into further debt.

    -- Posted by McCook1 on Mon, Feb 16, 2009, at 9:59 AM
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