Kentucky Kickback: How the Olmsted Dam Project Exposed Mitch McConnell's Hypocrisy on Government Spending

by Nomad

Though McConnell now says he is dead set against any more government shutdowns, Kentucky voters have every reason to be a little dubious.

After all, in the last shutdown, Senator McConnell was able to parlay the last one into what one conservative group called a "boondoggle" sticking with an eye-watering $3 billion bill for taxpayers.

Back in October 2013 U.S. Senate Majority Leader Harry Reid and and Senate Minority Leader Mitch McConnell were pitted against each other at the negotiation table, in an attempt to work out some kind of compromise to end the 16-day-long government shutdown. The Republicans had refused to increase the debt ceiling in an attempt to roll back Obamacare- or Affordable Care.

Despite the usual talk about limiting Big Government spending, McConnell managed to slip a provision into the debt ceiling bill on the sly that included nearly $3 billion for a dam project.

A provision in the funding bill includes $2.918 billion in funding to the Army Corps of Engineers to install locks as part of the Olmsted Dam and Lock Authority Project on the Ohio River.

That was in fact an increase in the $1.5 billion funding that Congress had authorized several years earlier.

The Dam that Ran Away

According to an investigation by the St. Louis Post Dospatch, the Olmsted dam project has run way over budget since it was first proposed back in 1988. 

A Post-Dispatch review of thousands of pages of documents and more than two dozen interviews reveal a project plagued by cost overruns, delays and engineering challenges stemming largely from the corps’ stubborn insistence on an innovative construction method that met its match in the unruly Ohio River.

It was originally given a budget of $775 million (that's not accounting for inflation). According to the builders, the price tag has soared to an estimated $ 3.1 billion dollars. (So the McConnell deal in effect doubled the funding.)

This project- if it is ever finished- will be the largest and most expensive inland water navigation installation ever built in the United States. Sen. Rand Paul (R-Ky.) has called the whole project a "boondoggle’ and in an unusually clever turn of phrase said that it was a case of "one of these things where we're damned if we do, damned if we don't." According to Paul, as expensive as it has become, we have no choice but to plow ahead. 

With cost soaring for Olmsted project, Rep. Ed Whitfeld, a Republican from Kentucky, who had ushered through the House of Representatives critical funding for project in 2009, was even more blunt back. By 2011, he was calling the project "a complete failure."

Why The Proposed Ryan-Murray Budget Deal Renders the Tea Party Powerless

by Nomad

Here's a little Interesting news. Reuters is reporting today that:

Budget negotiators in the U.S. Congress have reached a two-year agreement aimed at avoiding a government shutdown on January 15 and setting federal government spending levels through October 1, 2015.

While it might seem like a step in the right direction, it is hard not to be a little cynical about the deal. Even as a first symbolic step toward a real bipartisan compromise, the fine print reveals some horrors for the unemployed. (I'll talk about that at a later date.) What's more interesting is the underlying motive for the Republican party to offer any deal at all.  

This budget deal,  hammered out by Washington Democrat Senator Patty Murray, and Republican Paul Ryan from Wisconsin, may be bipartisan but it is hard to see why anybody would claim it was progress. (One site actually hailed it as "a new era of cooperation." Where have these people been the last five years, I wonder!)

Congressional negotiators reached a modest budget agreement Tuesday to restore about $65 billion in automatic spending cuts from programs ranging from parks to the Pentagon, with votes expected in both houses by week's end.

Now, sixty-five billion might seem like a large figure to you and me but when it comes to government spending it is practically nothing. A superpower can spend that money much faster than you can blow your nose.

In fact, these were spending cuts to the budget which have now been restored. So count that as a step back from the reducing government spending. Shrinking big government, (except when it came to the military) has been the rallying cry of the Republicans since Reagan's day. 

Reducing government spending was supposed to be what the last budget bust-up in Washington was all about. Remember that shutdown thingy?

And that turned out to be a political disaster for Congress, but especially for the Republicans. So it is no surprise that somebody in the party would be happy to avoid a repeat of that disgrace next January. 

Apparently the leader of the House John Boehner-who, in the end, just wants to be loved, sent Pretty-boy Ryan into the thick of the negotiations. It was probably a wise but cynical move on his part.

Clearly the Tea Party will take one look at this and begin frothing at the mouth.

Delusions over Tea Time

Despite the damage done to the Republican party in October, threats of shutting down government -basically holding the government hostage-was the only weapon that the Tea Party minority had. This deal effectively takes that loaded pistol out of the hands of the petulant baby.

And this baby has a nasty disposition and has some old Republicans scared for their political lives.