The Question On Everyone's Mind: Is the Stimulus Working Yet?

By Annie Berman – Talk Radio News Service

It is still unclear if the American Recovery Reinvestment Act (ARRA), also known as the stimulus bill, is helping states create and retain jobs, despite the current 9.5 percent unemployment rate.

This is the third in a series of hearings the Oversight and Government Reform Committee has held to discuss the ARRA, specifically to review the state and local uses of Recovery Act funds and the Government Accountability Office’s second bi-monthly report of those allocations.

According to Robert Nabors, Deputy director of the Office of Management and Budget, the stimulus bill is having a positive impact.

“The Recovery Act is making significant resources available to states that are struggling…funding has relieved pressure on state budgets, allowing them to provide better service and avoid job cuts,” Nabors said.

Nabors also stressed that states should not rely on stimulus money in
the long term.

“We always view the Recovery Act as a short term effort. The President has been very clear that we need to get the economy jump started. We need to expend resources now to actually get them started. But over the long term, the funding levels that are contained within the Recovery Act should not be thought of as permanent,” said Nabors.

The three governors that testified at today’s hearing maintained that direct aid to states provided by the stimulus plan has greatly helped their states’ economies through job creation and projects such as highway restorations and solar energy panels for buildings.

“Things are happening,” said Pennsylvania Gov. Edward Rendell (D). “Construction and manufacturing. It’s working. And the good news is it’s going to get better…you are going to see a huge impact. I think the stimulus is going to work. Any judgment on it is premature. Let’s see how it works. I’d like to see a second stimulus dedicated solely to infrastructure.”

Rep. Darrell Issa (R-Calif) voiced strong opposition to the possibility of a second stimulus bill, even though he voted in favor of the first.

“The U.S. economy lost 433 net jobs in June bringing the unemployment rate to 9.5%,” said Issa. “These job losses pump on the heels of other declining economic indicators that bring total American job losses since President Obama took office to 2.6 million…fool me once shame on you, fool me twice, shame on me.”

New Report Urges Immediate Conservation Action To Save Nation’s Outdoor Resources

A report released today by The Outdoor Resources Review Group recommended allocating $3.2 billion annually toward the conservation of American land.  The report, entitled “Great Outdoors America”, also includes recommendations for recreational trends, identification of policy failures, and a description of technological changes that have affected the U.S.' outdoor resources.

Honorary Co-Chairs Sen. Jeff Bingaman (D-NM) and Sen. Lamar Alexander (R-Tenn.) presented the report to Secretary of the Interior Ken Salazar.  

Patrick Noonan, Chairman Emeritus of The Conservation Fund and Member of the President’s Commission on Americans Outdoors, briefly outlined a number of recommendations from the report including better coordination with the Department of the Interior and new tax incentives for non-profit and private conservation groups.

“We recommend a nationwide system of blueways and water trails to mobilize communities and organizations to improve water quality close to home,” said Noonan.

The report builds on the Outdoor Recreation Resources Review Campaign of 1962 and the President’s Commission on American Outdoors of 1987.

“Much has changed since [the previous reports]: demographics are different, there are more of us...larger minority participation, different roles of women, urbanization...cities have grown to 80% of our population,” said Henry Diamond, partner at Beveridge & Diamond and former commissioner of the New York Department of Environmental Conservation.

Diamond added,“Federal government plays a substantial role and spends a lot of money but it is rather disorganized in this field.  There are many agencies...that we think needs changing.  We think the land and water fund has a history of being starved."  

Secretary of the Interior Ken Salazar emphasized that action to conserve America’s landscapes is necessary now because of the troubled economy, wars, and health care issues Americans face today.

“It is in the most difficult times of our country that we look to the landscapes to refuel the spirit and the greatness of our country,” Salazar explained.

Salazar provided three reasons why conservations efforts should be a top priority including job creation, health benefits, and response to climate change.

Certain Meds Could Inhibit Commercial Drivers' Safety, Experts Say

By Annie Berman-Talk Radio News Service

Participants of a meeting with the U.S. Department of Transportation's Medical Review Board suggested Wednesday that medication used to treat certain psychological disorders may affect the safety of commercial drivers.

“These drugs may affect cognitive and psycho motor abilities that could contribute to crash risk,” said James Reston, a Senior Research Analyst at the ECRI Institute during the review board's public meeting.

The medication in question is called benzodiazepine, a drug that is used to help treat certain psychological disorders such as anxiety, insomnia, and seizures.

“Individuals who are diagnosed with one of the psychiatric disorders of concern should demonstrate that they are likely to be able to perform their normal duties by undergoing an evaluation of both physical and mental functions by qualified psychiatrists,” said Jessica Williams of the Manila Consulting Group.

Board member Dr. Benjamin Hoffman also proposed a recommendation to allow any licensed medical professional that has obtained a Masters degree or higher to evaluate an individual who is a high-risk driver due to their prescription drug use and psychological disorder. The panelists did not choose to discuss this recommendation during their deliberations, but said they would discuss it in the future.

The effects of daytime sleepiness on the safety of commercial drivers was also addressed.

“The other risk factors [for crash] that we found in terms of a sleep disorder in general include having sleep apnea, insomnia, or the quality of sleep…The time of day was associated with increased crash risk. People driving at night…sleep habits, [etc.],” said Stephen Tregear of the Manila Consulting Group

“Sleepiness is episodic,” added review board member Dr. Barbara Phillips. “So much of sleepiness depends on behavior. We don’t have to have an illness to have a crash based on sleepiness. It really depends on our behavior. Whether or not you take antihistamines, sleeping pills, [etc.]…there has to be a real time evaluation in order for this to have any meaning.”

Bernanke Says He Did Not Threaten Bank Of America CEO

By Annie Berman -- Talk Radio News Service

In a second hearing on the merger between Bank of America and Merrill Lynch, Federal Reserve Chairman Ben Bernanke testified that he did not threaten to fire Bank of America CEO Ken Lewis if the merge was not finalized.

In his June 11, 2009 testimony, Lewis claimed that he had decided to invoke a Material Adverse Change (MAC) clause, which would have stopped the merger between Bank of America and Merrill Lynch. Based on this information, it is possible that Lewis knew about Merrill Lynch’s major losses before the merger was finalized.

Bernanke claims that he was advising, not threatening, Lewis to not invoke a MAC clause because doing so would have been bad for the economy.

“[Bank of America] was obligated to make the choice they believed was in the best interest of their shareholders and company. I did not tell Bank of America’s management that the Federal Reserve would take action against the board or management if they decided to proceed with the MAC. Moreover, I did not instruct anyone to indicate to Bank of America that the Federal Reserve would take any particular action under these circumstances,” said Bernanke in his opening statements.

Lewis confirmed in his testimony that he wanted to invoke a MAC clause, but claimed that he had no prior knowledge of the huge fourth quarter losses that Merrill Lynch suffered in 2008. The committee concluded that Lewis would not have tried to invoke a MAC clause if he did not know about Merrill Lynch’s potential losses.

In this morning’s testimony, Bernanke also claimed that he did not know about Merrill Lynch’s losses prior to the merger.

“Mr. Bernanke, your staff believed that bank of America knew about Merrill Lynch’s accelerating losses in mid November, a full month before coming to you and weeks before it’s shareholders voted to approve the merger. Those 4th quarter losses rose to over $15 billion out of the pockets of Bank of America’s shareholders… The Fed knew what Bank of America knew [about the Merrill Lynch losses],” said Rep. Dennis Kucinich (D-Ohio).

Additional hearings regarding the merger are expected to take place in July. Treasury Secretary Hank Paulson is expected to testify in these hearings.

Pelosi: New Bill Will Transfer GI Benefits Of Fallen Soldiers To Children

By Annie Berman- Talk Radio News Service

A supplement to the Post 9/11 Veterans Educational Assistance Act, also known as The New Post 9/11 GI Bill, will transfer educational benefits to the children of fallen soldiers, has recently been approved by Congress.

“The bill includes more than 10% over last year in funding veteran’s medical care claims processors and facility improvements. In addition, the bill includes more than $48 billion in advance appropriations for 2011. This ensures timely and predictable funding for veteran’s health care initiatives,” said Pelosi Wednesday during a press conference with members of numerous veteran groups.

Rep. Chet Edwards (D-Texas), who helped lead a round table discussion with members of veterans services organizations, also introduced The Marine Gunnery Sgt. John David Fry Scholarship, which will give the children of fallen soldiers on active-duty the same Post-9/11 GI Bill benefits as those who served three years of active-duty.

“We hope that this scholarship program will honor those who were lost in combat and serviced the country [and] be a sign of respect to every service man and woman and to every military family,” Edwards said.