No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Archive for the 'Budget Chop' Category

January 24, 2011

A Preview

by @ 18:53. Filed under Budget Chop, Politics - National.

Tomorrow evening, President Obama will address a joint session of Congress and present the annual State of the Union Address.  We here at NRE will be joining the festivities and Drunkblog the event live, or as close to “live” as several Tanqueray martinis will allow me to be.

You can watch the SOTU address and determine for yourself, whether Obama has become the centrist that the MSM claims he has been reincarnated as or whether he remains the hard leftist that brought us Placebocare, stimulus and bail outs for all of his leftist friends.

As a public service, NRE brings you the following preview of the SOTU address:

Do you remember the Godzilla movies? Do you remember how the sound tracks were never in sync with the video?

Exactly two weeks prior to the SOTU address, President Obama went to Arizona to address the memorial for those killed in the assassination attempt on Representative Giffords. In that address, Obama lectured us about civility. He did so even though he himself, and those advisers like Rahm Emanuel, who have been closest to him, have rarely had a second thought about using graphic, violent language to describe a political opponent or policy they don’t agree with.

It was as I watched the Arizona address that the visual of the old Godzilla films hit me. Like them, the words that come from Obama’s mouth rarely match the actions of his administration or himself.

Tuesday night you will hear Obama talk about our need for fiscal responsibility. You’ll hear Obama give a nod to things like smart and efficient oversight that is somehow intended to be different than the ever increasing excesses that all administration agencies have lorded over their subjects. You may also hear Obama talk about corporate tax reform but don’t be fooled. Regardless of what you hear from his lips that may have you saying “Clintonesque,” ignore it. There is no “center” or “movement to the center” with Obama.

The Godzilla movies were fairly formulaic: monster arrives, monster destroys everything in sight, monster is subdued by a resilient people. Our national Godzilla movie has seen the first two acts. Will we see the resilient people subdue Godzilla?

Revisions/extensions (6:54 am 1/25/2011, steveegg) – I’m just adding a little reminder widget from Cover It Live so you guys will know where to head tonight.

January 4, 2011

Budget Chop – Oil and Gas Management

by @ 20:10. Filed under Budget Chop, Energy, Politics - National.

I’ve already highlighted the Bureau of Ocean Energy Management for the need of a budget reduction.  My argument at the time was that if they didn’t want to issue any permits for drilling, there wasn’t need for more than one person to be able to answer the phone and say “NO!”

In one of the first acts of the new year, the Obama administration announced that they would now allow 13 companies to resume their deep water drilling in the Gulf of Mexico.  While this doesn’t mean that they will be issuing new permits, I take this as a sign that the Administration is concerned that my suggestions are sure to be implemented.

It’s becoming clearer and clearer that despite Obama’s rhetoric about job creation, there is no desire to create jobs in the oil and gas industry.  The Energy Information Administration now projects that offshore energy production will be nearly 20% below what they had predicted for the year.  That shortfall translates into thousands of lost jobs and the wages associated with them.  Not only does the Administration’s war on fossil fuels cause lost jobs, it also causes lost revenues.

According to this spreadsheet (I’ve verified them to the reported revenue) in FY 2008, the Federal Treasury received over $22 Billion in revenue from all oil and gas leasing activity.  in FY 2009, that number dropped to to under $9 Billion and in FY 2010 it was about $8 Billion. Now admittedly, there was approximately $10 Billion of “bonuses” received in 2008 which inflates that number a bit. However, even when adjusting for that, revenue to the treasury for oil and gas leasing has dropped by 33% in just two years.

Let’s recap:  No new leasing, more drilling area restrictions, lost jobs and wages….Oh, that’s not so bad…..

Former executive predicts gas to hit $5 by 2012

January 3, 2011

The Budget Chop – Federal Headcount

by @ 10:36. Filed under Budget Chop, Politics - National.

I have a riddle for you:

Q.  What do Russia and Cuba have that the United States doesn’t?

No, it’s not a massive federal deficit; they each have that.

No, it’s not a hard core leftist as the leader;they each have that.

Nope, it’s not a government that is more interested in itself than it’s citizens; they each have that.

The correct answer is: Federal employment that is being reduced.

After announcing earlier that they would be reducing the size of their federal government employment, Russian President Medvedev signed a decree  that will reduce the number of people employed by the Russian government by 20% over the next few years.

The civilian federal employment jumped over 10% from 2008 to 2010 and that is after subtracting the temporary census workers.  2011 is slated to grow that number by another 3.5%.  So federal employment has grown by double digit percentages will private employment has decreased by millions.

An area for the new GOP House to focus on for balancing the budget is the number of people employed by the federal government. 

Senator Orrin Hatch introduced a bill last year, that would have reduced federal employment to 2008 levels.  According to Hatch, this would be a reduction of 20% although I don’t think his math is quite right as he’s including the temporary census workers.  Not surprisingly, Senator Hatch’s bill went no where. 

Fewer federal employees would be good for at least three reasons:

1.  Fewer employees means fewer dollars spent today.

2.  Fewer employees should be coupled with privatizing more of the things that the federal government does but doesn’t need to do.

3.  Fewer employees means fewer dollars spent tomorrow in the way of pensions and other retirement benefits.

The next few weeks will be interesting to watch.  By the end of January, we should know whether the message of reducing spending, has been received by Congress.  I know the message hasn’t been received by President Obama but we’ll cross one bridge at a time.

December 23, 2010

Budget Chop – Bureau of Ocean Energy Management

During his 2010 victory lap yesterday, President Obama laid out his priority for 2011:

Asked about the often-used car in the ditch analogy, Obama said that the “car [the economy in the analogy] is on level ground.” He spoke about a new direction for the government’s economic focus: “We now have to pivot and focus on jobs and growth,” and education, innovation, and R & D.

While Obama’s lips may be saying “yes, yes,” his double crossed fingers are saying, “no, no!”

Gulf oil drilling jobs continue to be decimated as Obama via the Bureau of Ocean Energy Management, works to interfere with, delay or halt altogether, permits for drilling. Most people are aware that Obama has denied an expansion of drilling areas and has delayed permits for new deep water rigs. What folks aren’t aware of is that even in areas where drilling is allowed, even in shallow water, the Bureau has implemented a plan that some would interpret as down right hostile towards all drilling efforts.

While you might think the Bureau is taking time advancing permits to ensure that safety comes first, they’re not. They are doing mostly what bureaucracies do, create process for no end result benefit:

Yet regulators have tightened processes so much that permit applications are being returned six and seven times for more information, says Randall Stilley, Seahawk’s chief exec­utive. One operator con­fided its last rejection was because the application contained two font sizes, he said.

(emphasis mine)

I’m a big believer in pay for performance i.e. if you perform well, you get paid more. I think we should use this type of approach to government agencies. Going forward, I would propose that Congress cut the budget for the Bureau of Ocean Energy Management. After all, how many people should it take to just say “no” to every inquiry of permitting for an ocean drilling rig?

December 20, 2010

The Budget Chop

Reports are circulating that Republicans and someone on the Democrat side (who is in charge there anymore?) have agreed to a clean continuing resolution bill that will extend the current budget levels into sometime in the first quarter of 2011.  All in all, that’s probably good news.  I don’t trust the current set of Republicans to actually have a spine and argue with any Democrats over budget levels.  I certainly don’t have any hope that the current bunch could actually cut the budget.  I lay all of my hopes on the incoming freshman class.  I hope I’m not disappointed.

However, I don’t think it’s fair to toss these freshmen to the wolves.  

As part or our ongoing public service efforts to provide clear, conservative thinking, we here at NRE have decided to start providing crib notes for the freshmen class on where, what and how to cut the federal budget.  This post is the first in the series.

Janet Napolitano announced today that the Department of Homeland Security, along with it being ever vigilant in finding new ways to amuse terrorists and piss off non Muslim air travelers, is taking on a new task.  DHS is making contingency plans in the event that climate change impacts domestic security.  Under the banner of “evironmental justice,” Napolitano has DHS making plans of what to do if oceans rise, glaciers melt or some change in weather occurs. 

As if it wasn’t bad enough that Napolitano wasted DHS time on this nonsense, she also included other executive staff. White House Council on Environmental Quality Chair Nancy Sutley, EPA Administrator Lisa P. Jackson, Attorney General Eric Holder, Secretary of the Interior Ken Salazar, Secretary of Labor Hilda Solis, and Secretary of Health and Human Services Kathleen Sebelius were all included as speakers for the event.

Hey Freshmen, if Napolitano has enough people with enough time to worry about such things as “evironmental justice,” regardless of what the real focus is, she has too many people with too much time in her budget! DHS should be the first agency to experience significant budget cuts!

As I said, we’ll be pointing out budget chop items as we find them. My plan is to get a neato graphic that can be added to highlight the budget chop posts. I don’t have it yet. In the meantime, let’s see if this sets the mood:

[No Runny Eggs is proudly powered by WordPress.]