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With Education Budgets Drained, Atlanta Wants To Use Taxpayer Money To Replace A 20-Year-Old Stadium

Georgia Dome

The Georgia Dome is a world-class sporting facility that serves the National Football League’s Atlanta Falcons and often hosts the Southeastern Conference basketball tournament, the SEC football championship, an annual bowl game, and the NCAA Tournament. In 2013, it’s slated to host the NCAA Men’s Final Four — college basketball’s biggest event — and it’s been home to two NFL Super Bowls. Judging by the fact that major events keep coming back, the place is in fine shape.

In the eyes of its inhabitants, though, the Georgia Dome is old, crumbling, and wholly inadequate, and if the Falcons and the city of Atlanta get their way, the Dome won’t stand much longer — even though it’s only 20 years old. According to new plans announced by the city of Atlanta and the Falcons yesterday, the Dome will soon be replaced by a $950-million, state-of-the-art facility with a retractable roof. The Georgia Dome — built a measly two decades ago — will be imploded, and taxpayers will be footing at least part of the bill, as the Atlanta Journal-Constitution reports:

The new plan comes with a higher price. A GWCC-commissioned study released Wednesday put the cost of a new retractable-roof stadium at $947.7 million, up from the $700 million estimated last year for an open-air stadium. Under either plan the public-sector contribution would be an estimated $300 million from an extension of the hotel-motel occupancy tax, passed by the Georgia Legislature in 2010, according to Frank Poe, executive director of the GWCC Authority, the state agency that operates the Dome.

The hotel-motel occupancy tax was originally passed to help finance the construction of the Georgia Dome. It was supposed to expire in 2010, but when the owners of the Falcons threatened to pursue a new stadium in the Atlanta suburbs, the Georgia legislature rushed to extend it so as to keep the team downtown. The extension included an agreement that the Falcons could pursue a new stadium on the same site. Less than two years later, they’re doing exactly that.

The recession and a sluggish economic recovery, meanwhile, crunched Georgia’s state budget and forced deep cuts into areas like education. The state owes local school districts more than $5 billion collectively — Atlanta-area school districts are millions of dollars short. In 2011, the state cut $403 million from its education budget after taking cuts of $300 million and $275 million in the previous two years.

The Falcons want a new stadium because they feel they’re missing out on the riches that come with new skyboxes and luxury suites — amenities the Georgia Dome lacks compared to newer NFL facilities. Still, the team’s value has increased nearly $300 million since owner Arthur Blank bought it in 2002. If the Falcons want a new stadium, they should build one. They just shouldn’t come to taxpayers asking for help.

INFOGRAPHIC: How The House GOP’s Budget Would Hurt Kids

House Republicans have touted their budget as a prescription for economic growth that will return the United States economy to prosperity. In reality, as ThinkProgress has documented, the GOP budget slashes social spending on programs that protect the most vulnerable while giving more than $3 trillion in tax breaks to the wealthiest among us — and even after all that, it not only fails to reduce the national debt but actually adds to it.

More than 60 percent of the spending cuts in the GOP budget would come from programs that benefit the poor, including food assistance, Women, Infant, and Children programs, and potentially even tax credits that have huge effects on poverty and hunger. Those cuts would undoubtedly not only hurt adults in struggling families, but harm children as well. According to a new report from the Half In Ten project at the Center for American Progress, millions of children will lose assistance from a number of services, as the following infographic shows:

As Half In Ten’s Melissa Boteach noted yesterday, the GOP budget would also boot nearly 280,000 children from school lunch programs, even while protecting a massive tax break for multimillionaires.

Under the guise of creating economic prosperity, Republicans have pursued a tax-and-cut ideology with reckless abandon over the last two years, taking the axe to vital social safety net programs while also cutting tax rates on the wealthy. The casualties of the Republican agenda, however, are not numbers on a chart — they are poor kids who are struggling to survive.

Climate Progress

Exxon Makes $104 Million In Profit Per Day So Far In 2012, While Americans Are Stuck With A Higher Gas Bill

Last year, ExxonMobil, one of the world’s most profitable companies, earned $1,300 in profits per second. As consumers paid record-high springtime gas prices, Exxon posted first quarter profits of $9.45 billion.

This is down slightly from the first quarter of 2011, when Exxon posted $10.65 billion in profits. Exxon benefited from the high price of oil, but analysts expected slightly lower profits due in part to the cheap price of natural gas, which the company is heavily invested in.

A by-the-numbers look shows how Exxon’s executives and Big Oil’s allies are rewarded generously for the company’s billions, while Americans are stuck with rising gas bills:

$9.45 billion profits, or almost $104 million per day in the first three months of the year.

13 percent: The tax rate Exxon paid last year, lower than the average American family.

60 percent of its first quarter earnings, or $5.7 billion, on buying back stock. Became world’s largest dividend payer by increasing dividends 21 percent.

$1,091,000: Political contributions sent to federal politicians for the 2012 election cycle, making it the largest oil and gas spender.

91% of these contributions went to Republicans.

More than $52,000,000: Lobbying for the first three years of the Obama presidency, 50 percent more than in the Bush Administration.

$34.9 million: Exxon CEO Rex Tillerson’s salary for 2011, a 20 percent raise.

$52,300: Political contributions from Exxon CEO Rex Tillerson in the 2012 cycle, alone.

No. 2: Fortune 500 list of richest companies and for highest-paid CEO.

Exxon not only used 60 percent of its Q1 profits to buy back its stocks, enriching executives and largest shareholders, but it funnels money through political groups like American Legislative Exchange Council (ALEC) and American Petroleum Institute, to influence legislation in its favor.

Wisconsin GOP Senate Candidate Supports Closing Tax Loophole For Wealthy Investors

Wisconsin Senate candidate Eric Hovde (R) has been a staunch opponent of the Buffett Rule, the minimum tax on millionaires co-sponsored by likely Democratic Senate nominee Rep. Tammy Baldwin, since beginning his campaign. Sticking with Republican talking points, Hovde has called the rule a “political gimmick” that “does nothing to balance the budget.”

But in a 2009 interview on CNBC, Hovde appeared to have a different take on raising taxes on the rich, as Daniel Bice from the Milwaukee Journal Sentinel reports:

During a March 2009 appearance on CNBC-TV, Hovde – CEO of Washington-based Hovde Capital Advisors and chief investment officer of private-equity firm Hovde Acquisition LLC – offered a widespread critique of President Barack Obama and congressional spending.

“And then you look over on the tax side,” the millionaire money man said (beginning at the 7:25 mark). “Look, I have no problem with me getting charged higher taxes. I’ve been blessed in my life. And I’ve been very fortunate.”

Watch it (at 7:25):


Hovde’s remark sure sounds like an implicit endorsement of raising taxes on the rich — which the Buffett Rule would do — but at an appearance this week, he assured local media that it was not. Instead, it was a call to end another egregious tax loophole that largely benefits the wealthy. “I’m almost certain that discussion was in regards to, you know, I would be willing to pay more in taxes from the standpoint [of] ‘get rid of the carried interest,’” Hovde told the Journal Sentinel.

Republicans by-and-large oppose closing the carried-interest loophole, which allows wealthy money managers to lower their tax rates, even though it would raise more than $4 billion a year from just the wealthiest 25 hedge fund managers in America. Hovde might be onto something, though — even if Republicans in Congress support the carried-interest loophole, a vast majority of Americans think it should be closed.

Religious Groups, Georgetown Faculty Protest Ryan’s Use Of Catholic Social Teaching To Justify Budget Cuts

Students outside Ryan's speech (via Faith In Public Life)

House Budget Committee Chairman Paul Ryan (R-WI) today faced further backlash from religious groups after attempting to use Catholic social teaching to justify the House Republican budget. Ryan spoke this morning at Georgetown University in Washington, where he was met by faculty members and religious groups who protested his budget’s drastic cuts to programs that help the poor.

About 90 members of Georgetown’s faculty, including two dozen Jesuit priests, signed a letter telling Ryan that he is “profoundly misreading Church teaching” and that his budget would have “devastating consequences” for poor Americans:

However, we would be remiss in our duty to you and our students if we did not challenge your continuing misuse of Catholic teaching to defend a budget plan that decimates food programs for struggling families, radically weakens protections for the elderly and sick, and gives more tax breaks to the wealthiest few. As the U.S. Conference of Catholic Bishops has wisely noted in several letters to Congress – “a just framework for future budgets cannot rely on disproportionate cuts in essential services to poor persons.” Catholic bishops recently wrote that “the House-passed budget resolution fails to meet these moral criteria.”

Small protests also occurred outside the speech, where Georgetown students held up signs that read, “Stop the war on the poor.” Catholics United, a progressive group, unfurled a 50-foot banner asking Ryan, “Were you there when they crucified the poor?”

As ThinkProgress has noted, Ryan’s budget appears to ignore Catholic social teaching, and religious leaders, including the U.S. Conference of Catholic Bishops, have criticized its cuts to programs that help the poor as “unjustified and wrong.” The backlash is similar to what Ryan faced last year, when religious leaders hammered him for adhering more closely to the policies of anti-government, anti-religion author Ayn Rand — who Ryan said inspired him to enter politics — than to the teachings of the church. Before today’s speech, however, Ryan backtracked on his admiration of Rand, saying, “I reject her philosophy.”

Update

Ryan, in his speech today, still refuses to acknowledge that he and the Catholic Church have a different of opinion on his budget cuts.

I suppose there are some Catholics who for a long time have thought they had a monopoly of sorts… not exactly on heaven, but on the social teaching of our Church. Of course there can be differences among faithful Catholics on this. The work I do as a Catholic holding office conforms to the social doctrine as best I can make of it. What I have to say about the social doctrine of the Church is from the viewpoint of a Catholic in politics applying my understanding to the problems of the day.

Watch it (via Faith In Public Life):

As FPL’s Nick Sementelli notes, Ryan isn’t just disagreeing with the Church — he’s basically issuing a public challenge to the Conference of Catholic Bishops, the Church’s official leadership.

Health

GOP Proposes Cuts In Prevention To Keep Student Loan Interest Rates From Doubling

House Speaker John Boehner (R-OH) announced on Wednesday that the House will take up legislation to extend the Bush-era 2007 College Cost Reduction and Access Act, a measure to prevent interest rates on subsidized Stafford student loans from doubling from 3.4 to 6.8 percent in July of this year. The decision comes after President Obama urged college students across America to call, tweet, and Facebook their members of Congress and ask them to pass the legislation.

But Boehner’s proposal would finance the $5.9 billion cost of maintaining the 3.4 percent interest rate for one year by repealing the Affordable Care Act’s Prevention & Public Health Fund, financing that’s designed to help states and communities fight chronic conditions like heart disease, cancer, stroke, and diabetes, and ultimately reduce health care costs. During a press conference yesterday, Boehner characterized the Fund as an affront to small businesses:

Today I’m pleased to announce that on Friday the House will vote on a bill to extend the current interest rate on federal student loans for one year. We will pay for this by taking money from one of the slush funds in the president’s health care law. [...]

“Listen, the rising cost of tuition is a serious one for students. I know this issue well. It took me seven years to work my way through college, working every job I could get my hands on. And what Washington shouldn’t be doing is exploiting the challenges that young Americans face for political gain. And it shouldn’t be sticking small businesses with a health care law that’s…making it more difficult for them to hire workers.”

In reality, the Fund is an essential tool to help re-orient the American health care system towards prevention of chronic conditions, which are “responsible for 7 of 10 deaths among Americans each year and account for 75 percent of the nation’s health spending.” The Fund will “invest $12.5 billion over the next ten years (FY2013-FY2022) in effective programs proven to prevent disease and injury.” Republicans have long considered prevention a key offset, however, scoffing at its investments as wasteful spending, or as one Republican Senate aide described it, a “slush fund for jungle gyms.” Boehner’s proposal would eliminate the Fund and rescind all unobligated balances, including money being spent this year.

Yet the GOP had supported increased federal funding for prevention before Obama embraced it, even attempting to take credit for it as a Republican idea:

- Sen. Jon Kyl (R-AZ) took to the Senate floor and proclaimed that “one of the things we did in the health care legislation was to provide a lot of different incentives for preventive care, for screening to try to help people avoid illnesses on the theory that it would be a lot cheaper if we didn’t do a lot of treatment that was unnecessary.” [7/12/2010]

- Sen. Chuck Grassley (R-IA) said the law’s emphasis on preventive care is good “because it costs less to keep people well than to treat them when they’re sick.” [10/18/2010]

- Sen. Mitch McConnell (R-KY): “Congress should be able to work together on our practical ideas that the American people support, such as reforming our medical liability laws to discourage junk lawsuits…encouraging wellness and prevention programs that have proved to be effective in cutting costs and improving care.” [8/26/2010]

- Sen. Saxby Chambliss (R-GA): “I am an original cosponsor of S. 1099, the “Patients’ Choice Act,” …. The legislation would make health care coverage accessible and affordable for all Americans through private insurance coverage, while also promoting prevention and wellness which can improve lives and lower long-term medical costs. [7/19/2009]

Sen. Lamar Alexander (R-TN) has also proposed to offset lower loan rates by requiring individuals or families who receive subsidies within the exchanges to “pay back a greater share of any excess subsidies,” while legislation offered by Senate Majority Leader Harry Reid (D-NV) would pay for the lower interest rates by requiring “shareholders in S-corporations — typically small-sized businesses — to pay payroll taxes from which they’re now exempt.” House Democrats have proposed “ending unwarranted tax subsidies to big oil and gas companies” to finance the measure.

Congress has already cut $5 billion from the Fund to pay for legislation to “renew a payroll tax cut that benefits 160 million workers, as well as extending benefits to millions of unemployed Americans.” As a result, the fund was supposed to reach $2 billion in fiscal years 2015 under current law, but now “won’t hit the $2 billion mark until fiscal 2022.”

House GOP Threatens Government Shutdown To Get Steeper Cuts To Food Assistance, Financial Regulations

House Republicans made it clear earlier this year that they had no intention of upholding the debt deal reached in 2011, despite a vow from President Obama that he would veto any appropriations bills that attempted to cut more spending than was agreed upon last August and a pledge from Senate Minority Leader Mitch McConnell (R-KY) that the deal would be upheld in the Senate.

After earlier indications that they would make substantial cuts to domestic programs to preserve defense spending, the House Appropriations Committee made it official yesterday, setting a spending level $27 billion below the level agreed to in the debt deal. The committee, bowing to the GOP’s more conservative wing, will make deep cuts to food assistance, financial regulations, and a host of other programs, setting up the potential for a government shutdown when the fiscal year ends in October, Politico reports:

The House begins with a total of $1.028 trillion for discretionary spending, $19 billion below the $1.047 trillion target set last summer and $15 billion below what was enacted just months ago for the current 2012 fiscal year. Republicans would also go $8 billion over the caps set in the Budget Control Act for defense spending, and the result would be a net reduction of more than $27 billion from all other appropriations.

This translates into an added cut of about 5 percent, with the burden falling chiefly on a half-dozen domestic spending bills affecting nutrition programs, transportation, financial regulatory agencies, natural resources, and especially the labor, health and education bill cited by Dicks.

After GOP leadership worked with Democrats to form the debt deal last year, the party’s conservatives have seemingly wrangled control back from Speaker John Boehner (R-OH). House Appropriations Chair Hal Rogers (R-KY) opposed efforts to break the deal but went along at Boehner’s urging in attempts to assuage more conservative members — even still, four conservatives pushed Rogers to cut as much as $97 billion from the debt agreement.

Senate Republicans, despite McConnell’s stated position last week, are now making similar rumblings. South Dakota Sen. John Thune (R) said Wednesday that the Senate GOP may back House Republicans in setting lower spending limits, saying, “I think we’ve got to be as aggressive as we can in trying to rein in the cost of government, the growth of government.” With White House officials reiterating the president’s veto threat, however, 2012 is shaping up similarly to the summer of 2011, when Republicans repeatedly pushed the government to the brink of shutdown and nearly caused its default before striking a debt deal at the last minute.

Education

Missouri GOP Rep. Says Federal Student Loans Gave America ‘Stage Three Cancer Of Socialism’

Under pressure from President Obama and Senate Democrats, House Republicans unveiled their plan to prevent a scheduled hike in interest rates on federal student loans Wednesday, but they probably won’t be counting on the support of Missouri Rep. Todd Akin (R).

At a debate over the weekend, Akin, who is running for Senate, said involving the government in the student loan process has given the government a “stage three cancer of socialism”:

AKIN: America has got the equivalent of the stage three cancer of socialism because the federal government is tampering in all kinds of stuff it has no business tampering in. So first, to answer your question precisely, what the Democrats get rid of the private student loans and take it all over by the government was wrong, it was a lousy bill, and that’s why I voted no. The government needs to get its nose out of the education business.

Akin isn’t the first Republican to come out against student loans recently, nor is he the first to make the false claim that the government “took over” the student loan process. The reform plan passed by Democrats as part of the health care overhaul did not take over the private student loan industry — as Akin surely knows, there is still a large private student loan industry. Instead, it removed banks from the process that was already managed by the federal government.

Obama used a speech at the University of Iowa to mock Akin yesterday. “You’ve got one member of Congress who compared these loans, I’m not kidding here, to a stage three cancer of socialism,” Obama said. “Stage three cancer? I don’t even know where to start. What do you mean? What are you talking about? C’mon. Just when you think you’ve heard it all in Washington, somebody comes up with a new way to go off the deep end.”

Econ 101: April 26, 2012

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • The Federal Reserve reduced its 2012 unemployment forecast but will not expand its efforts to aid the economic recovery, Chairman Ben Bernanke announced. [Bloomberg]
  • The Senate passed legislation to provide financial relief to the United States Postal Service. [New York Times]
  • House Republicans have unveiled their plan to prevent a scheduled hike in student loan interest rates. [The Hill]
  • An inquiry into Wal-Mart’s alleged bribery has expanded to trade groups, including the U.S. Chamber of Commerce . [Washington Post]
  • Mexico’s government has also opened a probe into Wal-Mart. [CNBC]
  • 99 Percent protesters interrupted General Electric’s annual meeting in Detroit yesterday. [Reuters]
  • The Securities and Exchange Commission is facing questions from Congress after inadvertently leaking the name of a Wall Street whistleblower. [Wall Street Journal]
  • Big banks are targeting low-income customers with products that carry heavy fees. [New York Times]

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