I used the “Show Me: The Spending” web tool to determine how much money that government agencies in Missouri spent on ”Property Damage Settlements” during the last decade. From the resulting graph, we see that the Office of Administration (in blue) and the Department of Transportation (in purple) are responsible for most of the expenditures. In fact, together they account for 98.92 percent of the total — $10,113,764.76, adjusted for inflation.

Trend of “Property Damage Settlements” by Government Agency (2009 Dollars)

The Office of Administration consistently spends $437,964.86 per year on average. The Department of Transportation’s trend of spending, however, is more volatile. It spent $77,637.71 on property damage settlements in 2007, $2,282,899.37 in 2008, and $6,500.00 in 2009. MoDOT made the largest single payment to a vendor in this category in 2008, in the amount of $1,920,556.60.

“Property Damage Settlements” for MoDOT in 2008

Why are these state agencies spending so much on property damage settlements? What property are they damaging, and why do Missouri taxpayers have to cough up $10,113,764.76 for it?

Using the Show-Me Institute’s “Show-Me: The Spending” online tool, I discovered some curious trends in the Missouri state budget. One that caught my eye was the budget for the office of the governor, which increased from $165,000 in 2008 to $1,132,000 in 2009:

One category of spending that showed a huge increase was “professional services,” which jumped from $8,000 to $428,000. The main component of this increase is “attorney services,” which cost the office of the governor $401,281. I did a quick Google News search to see if there was any media coverage explaining this increase, but no luck. Attorney services are probably necessary in some capacity, so the question is: What specifically is responsible for this steep escalation in spending?

Another large portion of this budget increase is funding for travel, which grew from $53,000 to $281,000, the largest amount spent on travel since 2000:

According to an article in the Columbia Missourian from last June, state flight records show that Gov. Jay Nixon flew on about 50 days during his first four and half months in office. As the article notes, this adds up to about one flight every three days. I have to wonder whether this amount of travel is really necessary. What’s more, the article in the Columbia Missourian also notes that Nixon has frequently charged the cost of his airplane travel to other government agencies. The governor’s explanation, when asked about this back in June, is that during these particular trips, he spent time highlighting the issues that are handled by those various other departments. Maybe this is justified in certain circumstances, but on one particular occasion, 11 different state offices, including the Departments of Agriculture and Revenue, split a $1,295 bill so that the governor and the first lady could fly to the Missouri-Kansas basketball game on March 1 (their host was Kansas Gov. Kathleen Sebelius). Even if this is deemed to be a necessary expense, which seems unlikely given the current economic climate, why wouldn’t it fall under the governor’s office travel budget?

The almost sevenfold increase in the total budget for the governor’s office is inconsistent with his claims of fiscal responsibility in the State of the State address. And the current governor isn’t the only one who has overseen questionable budget increases; there was a dramatic spike in the 2006 travel budget of former Gov. Matt Blunt, as well. The lesson here is that Missourians should keep a watchful eye on government finances, and that it is important for all Missouri officials to examine their budgets carefully in order to eliminate unnecessary expenses.

Today, the Show-Me Institute launched four new online tools that enable Missourians to track state spending, employee pay, tax credits, and stimulus projects. These tools take state-provided datasets and make them understandable and intuitive for just about anyone. You can create your own graphs or quickly compare detailed information among state agencies.

In my opinion, there couldn’t have been a better time for Missourians to have these tools. At 7 p.m. today, Gov. Jay Nixon will deliver his State of the State address. Given the continuing decline in state tax revenues, Nixon could soon announce another round of budget cuts, on top of the hundreds of millions already cut from the state budget this fiscal year.

Sen. Jason Crowell has argued that tax credits should be part of the state budget process, instead of allowing government agencies to dole out credits with little regard for how much the state can afford to give out each year. And, of course, state agencies and local governments across the board have accepted hundreds of millions in federal “budget stabilization” dollars, which lets them stave off cuts, for now.

Our online tools can help you put these issues into perspective.

Although a $200 million round of budget cuts may seem drastic, state expenditures in 2009 were up more than $1.5 billion from 2008 (see the “Spending Overview” tab). As for state tax credits, I was surprised to see that the amount issued each year varies wildly (see the “Overview” tab) — from a high of more than $500 million in 2006 to less than $150 million in 2009. Most startling is the amount of federal money that state agencies and local school districts are leaning on. The Department of Elementary and Secondary Education has spent nearly $350 million of federal budget stabilization money, and has less than $100 million left (See the “Spending & Revenue by Program” tab).

The data behind these tools will be updated each week, which means you can check back periodically to see what’s new. It’s my hope that these tools are an easy way to keep up with what the state is actually doing, instead of the latest political rhetoric.

All right, so the title of this post is a bit misleading — I just wanted to get as many acronyms and abbreviations in there as possible. Jackson County Executive Mike Sanders announced today that Jackson Co. will file suit against the make-up of the TIF Commission in Kansas City. Prime Buzz has the early scoop here.

This is a big issue, and you will see a lot more from the Show-Me Institute about it as it goes forward. Basically, I completely agree with the county on the larger issue of the KC TIF commission’s fairness. (Debating the details will have to wait a day or so until I have time to read everything carefully.) TIF commissions at the municipal level are a rigged game. The city gets to appoint so many members that the whole commission is clearly stacked. In St. Louis County, they are currently working with a modified TIF commission that gives the county more influence and the various cities less. It has not faced a real test yet, but I support the increased county role. I would support it for Jackson County, too, and I wish Co. Exec. Sanders and the county luck in this dispute.

I wrote about this issue in some detail nearly two years ago, in an op-ed arguing that all TIF decisions be made at the county level, and another piece commending St. Charles County for its resistance to the use of TIF. It looks like both of these pieces are very applicable to Kansas City and Jackson County right now. Nifty stuff.

Uh oh. News media and bloggers have been reporting all week about federal stimulus dollars going to fictitious congressional districts. The website Watchdog.org reported that, nationwide, the fictitious districts are receiving $6.4 billion in stimulus money.

I did some reporting of my own over at Policy Pulse, the Show-Me Institute’s news site, and found that four fake congressional districts had cropped up in Missouri to receive more than $900,000. KMOX picked up on the story here.

Was it fraud? Not really. The Recovery.gov website has a little data integrity problem. Federal grant and contract recipients are responsible for making their own reports of project progress. After a 20-day review period, the self-reported information is posted online. Apparently, federal agency employees can only alert a recipient that reporting errors exist; only recipients can fix them.

The reason we’re seeing so many fake districts is that recipients are required to choose a congressional district from a drop down menu. They can choose between a range from 00 to 99. And it looks like some recipients just guessed.

I looked through the data on Tuesday,which you can download in raw form here (scroll to the bottom of the page), and although fake congressional districts make for good headlines, I think there’s a bigger issue.

Contract and grant recipients aren’t required to report a project name, description, or status. In fact, for Missouri alone, 2,258 grant recipients and 76 contract recipients left all three fields blank. Yet only 18 of those were flagged for correction.

If Recovery.gov is really supposed to promote government transparency and accountability, why not require that federal stimulus recipients report what they’re actually doing with the money?

CBS’s moneywatch.com site recently released an article by Mark Thoma on the independence of the Federal Reserve, and those very real political conditions that threaten it. This situation is dangerously close to a Catch-22 scenario. Here’s the problem: When politicians get involved with monetary policy, manipulating it in their favor in order to be reelected, inflation usually results, along with a cycle of debt perpetuated in the economy. If the Fed resists such manipulation, asserting their independence, politicians could in turn place legislative restrictions on its independence — penalizing the Fed’s independence by taking it away. If that’s not a Catch-22, I don’t know what is.

Thoma’s article mentions that this very problem is currently becoming manifest in the U.S. Congress. Two pending bills are circulating in Congress, one that seeks to eliminate much of the Fed’s regulatory authority and the other to allow its monetary policy to be audited. These bills were developed as a safeguard against the Fed putting the brakes on the political business cycle, during which monetary policy plays out quicker with regard to output and unemployment than it does with regard to inflation.

So, if an incumbent politician wants to increase his chances of getting reelected, he may want output to peak right around the time of the election. To do this, he increases the money supply months before the election to reap the benefits of increased output; however, the consequent inflation will not hit until months after output peaks. This politician has begun a cycle of manipulation. It would be a wise next step to tighten monetary policy after the election to avoid inflation, but more often than not this step is not taken, because cutting the money supply will decrease output, and output is already in a state of decline after having peaked. So, rather than being perceived as responsible for a decline in output, in order to to avoid inflation, the politician lets inflation take the lead.

In addition to this sort of scenario, there is the added problem of government debt. Of the three ways to finance government purchases — increasing taxes, issuing government debt, and increasing the money supply — the most beneficial choice from a politician’s perspective would be to increase the money supply, because its drawbacks aren’t as easily seen by constituents. This also results in inflation, and can be referred to as monetizing the debt. Luckily for the politician, the blame for this inflation can be readily placed on increased prices for oil and other commodities.

As health care costs rise, and the public debt becomes more of a problem, worried politicians are resorting to the application of pressure to the Fed to act in ways that will make their political skills seem more attractive to their constituents. Consequently, it is a real possibility that the price for Fed independence — which is vital to upholding a healthy economy from the yo-yo effect of political whims — may, in the end, be that very independence.

The Show-Me Institute will be hosting a blogosphere event on Nov. 21 for established bloggers, as well as new and prospective bloggers. There will be training, panel discussions, and a panel presentation from the the Motorhome Diaries folks! It’s free, and will be a lot of fun. If you’re interested, check out the flyer posted below.

Keep government honest.
Want to know how?
Learn from the best and meet bloggers
from throughout the state, and across the country.

As more cuts are made at mainstream news media outlets, there are fewer reporters keeping tabs on what local and state government officials are doing. Increasingly, bloggers have stepped up to break stories, or call attention to issues that are being ignored. The Show-Me Institute is hosting its first blogosphere event to help train and support both Missouri bloggers who are working to help keep government transparent, and citizens who want to learn how.

Presenters include Saint Louis’ most prominent bloggers and social media practitioners, Saint Louis media, and an editor of the award-winning TexasWatchDog.org.

On Saturday, there will be training sessions in investigative reporting, social media, blogging, videography, and documentary-style reporting. Panelists will hold discussions about the tradeoff between immediacy and accuracy, how to effectively use social media, and the future of traditional and online media.

What: The Show-Me Institute’s first blogosphere event
Date: Saturday, November 21, 2009
When: 9 a.m. – 4 p.m.
How much: Free with RSVP
Location: Sheraton Hotel, 7730 Bonhomme Ave. Clayton, MO 63105

Complimentary breakfast and box lunch provided, complimentary parking. Please RSVP.

The goal of the Show-Me Institute’s blogosphere event is to empower any person interested in advancing government transparency through factual reporting. Please feel free to forward this invitation to others who may be interested in attending.

To RSVP:
by email: Jason.Hannasch@showmeinstitute.org
on Facebook: http://tinyurl.com/ygog9ku
with Twitter: tweet a reply to @MOPolicyPulse
by Phone: contact Jason Hannasch at (314) 726-5655

The Show-Me Institute (SMI) is a nonpartisan and nonprofit think tank that addresses major public policy issues facing Missouri from a free-market perspective. We publish scholarly research on the potential for applying free-market principles to six areas of public policy: taxes, education, health care, red tape, privatization, and corporate welfare.

Continue reading "Calling Missouri Bloggers!" »

On Friday, the state of Missouri surprised me. I’m used to long waits, unreturned phone calls, and copying fees whenever I ask a local or state official for public records. So, when I called the folks at the Missouri Accountability Portal (MAP), a state government website devoted to making state spending and revenues transparent, I expected the same. Even though, you know, the point of MAP is easy and quick access to information.

While MAP had readily searchable tables of employee salaries, state spending, tax revenues, and tax credits, the large databases behind those tables weren’t available for download as a whole; instead, they were exportable only in bite-sized tables. This made analyzing, say, state expenditures during the past decade impossible.

I left a voicemail; they left a voicemail. I left another voicemail. And then, on Friday, I was told that the web page was up.

That’s right, not only did the folks at MAP fulfill my request, but they thought they might as well fix this problem for everyone. Here’s the link: http://mapyourtaxes.mo.gov/MAP/Download/Default.aspx. On this page, you can download: state expenditures for the past decade, either by year or as a gigantic database; stimulus revenues and expenditures; a database of employee salaries for the past three years; and the amounts that the state has given away in tax credits during the past decade. Oh, and the spreadsheets for this year are updated each night — so you don’t get stale data.

I have never had such an experience of helpfulness and ease when requesting public information. I want to thank the folks at MAP for being so forthcoming and for working to make the website that much more useful for everyone.