RNC: Welcome Back Rosy, Have Democrats Traded One Form of Deception for Another in the Budget Process?

/PRNewswire-USNewswire/ -- The following was released today by the Republican National Committee:

At The Fiscal Responsibility Summit, President Obama Pledged To Introduce An Honest Budget That Is Free Of Gimmicks And Deception:

President Obama Pledged To Introduce A Budget That Is An Honest

Accounting Of The Financial Situation. President Obama: "And that's why the budget I will introduce later this week will look ahead 10 years and will include a full and honest accounting of the money we plan to spend and the deficits we will likely incur. To start reducing these deficits, I've committed to going through our budget line by line to root out waste and inefficiency, a process that Peter and our administration, our team, has already begun. And I'll soon be instructing each member of my cabinet to go through every item in their budgets as well." (President Barack Obama, Remarks To The Fiscal Responsibility Summit, Washington, DC, 2/23/09)

President Obama: "Our Budget Process In Washington Has Been An Exercise In Deception." President Obama: "We'll start by being honest with ourselves about the magnitude of our deficits. For too long, our budget process in Washington has been an exercise in deception, a series of accounting tricks to hide the extent of our spending and the shortfalls in our revenue and hope that the American people won't notice; budgeting certain expenditures for just one year, when we know we'll incur them every year for five or 10; budgeting zero dollars for the Iraq war - zero - for future years even when we knew the war would continue; budgeting no money for natural disasters, as if we would ever go 12 months without a single flood, fire, hurricane or earthquake." (President Barack Obama, Remarks To The Fiscal Responsibility Summit, Washington, DC, 2/23/09)

President Obama: "We do ourselves no favors by hiding the truth about what we spend. In order to address our fiscal crisis, we're going to have to be candid about its scope." (President Barack Obama, Remarks To The Fiscal Responsibility Summit, Washington, DC, 2/23/09)

The New Democrat Budget Has People Wondering If "Rosy Scenario" Is Back In Washington:

Private Economists Wonder If Democrats Have Brought "Rosy Scenario" Back To Washington. "The administration insists it isn't so, but some private economists are wondering if the Obama administration has brought 'Rosy Scenario' back to town." (Martin Crutsinger, "Economists Question Budget's Economic Assumptions," The Associated Press, 2/27/09)

Many Economists Say The Democrat Budget Uses "One Of The Oldest Gimmicks Around" By Relying On Overly Optimistic Economic Assumptions. "But many economists who examined the economic assumptions that undergird the spending plan believe that Obama may have resorted to one of the oldest gimmicks around - relying on overly optimistic economic assumptions to make it look like you are dealing with soaring budget deficits when in reality you are only closing the gap on paper." (Martin Crutsinger, "Economists Question Budget's Economic Assumptions," The Associated Press, 2/27/09)

In Order To Achieve The Deficit Cutting That Democrats Hope For, The Economy Would Have To Grow At Levels Similar To The Boom Of The 1990s. "The Obama budget puts the deficit at less than $600 billion starting in 2012 from $1.75 trillion this year. Getting to that point requires GDP to rise more than 4% a year by then -- meaning the U.S. would quickly return to growth rates similar to the boom years of the 1990s -- after the worst financial shock since the Great Depression. Such growth is more than a full percentage point above private-sector growth estimates for 2011 and 2012." (Sudeep Reddy, "Rosy Assumptions Hold Down Deficit," The Wall Street Journal, 2/27/09)

Economic Forecasts In The Democrat Budget Are Much Higher Than Private Forecasts:

The Economic Forecasts In The Democrat Budget Are "Far Higher" Than Many Private Analysts. "But the administration forecast is far higher than the projections for growth in the overall economy, as measured by the gross domestic product, of many private analysts." (Martin Crutsinger, "Economists Question Budget's Economic Assumptions," The Associated Press, 2/27/09)

Democrats Predict The GDP Will Grow By More Than 4 Percent In 2011, 2012, And 2013. "In its budget, the administration predicted that the overall economy, as measured by the gross domestic product, will shrink by 1.2 percent this year but will grow by a solid 3.2 percent in 2010. That growth would be followed by even stronger increases of 4 percent in 2011, 4.6 percent in 2012 and 4.2 percent in 2013." (Martin Crutsinger, "Economists Question Budget's Economic Assumptions," The Associated Press, 2/27/09)

Private Forecasters Agree That The GDP Will Not Grow As Much As The White House Forecasters Predict. "By contrast, the consensus of forecasters surveyed by Blue Chip Economic Indicators in February predicted that the GDP will fall by a larger 1.9 percent this year and then increase at weaker rates of 2.1 percent in 2010, 2.9 percent in 2011 and 2012 and 2.8 percent in 2013." (Martin Crutsinger, "Economists Question Budget's Economic Assumptions," The Associated Press, 2/27/09)

A Top White House Official Admitted That Budget Estimates Were More Optimistic Than Private Forecasts:

White House Economist Christina Romer Admitted That The Democrats' Economic Forecasts Are "Somewhat More Optimistic" Than Private Economists. "Speaking to reporters Thursday, White House economist Christina Romer called the projections an 'honest forecast' by the administration's professional forecasters. 'I'd reject the premise that we're noticeably rosier,' she said. 'We certainly are somewhat more optimistic, but certainly nothing out of the ballpark.'" (Sudeep Reddy, "Rosy Assumptions Hold Down Deficit," The Wall Street Journal, 2/27/09)

The Budget Relies On An Estimate That The Unemployment Rate Will Be 7.9 Percent In 2010, 1.6 Percent Lower Than Last Year's Most Accurate Forecasters:

The Obama Administration Anticipates The Unemployment Rate To Fall To 7.9 Percent In 2010. "Most Fed officials, who have repeatedly proven to be too hopeful about a recovery, see the unemployment rate between 8.5% and 8.8% in the fourth quarter of 2009 and around 8% to 8.3% in late 2010. The administration puts the 2010 annual average at 7.9%, even though Fed officials and most private forecasters expect joblessness to remain well above 8% - and in some cases closer to 9% - through much of the year." (Sudeep Reddy, "Rosy Assumptions Hold Down Deficit," The Wall Street Journal, 2/27/09)

Economists At Goldman Sachs Estimate The Unemployment Rate To Be 9.5 Percent In 2010. "Goldman Sachs economists, whose forecasts were among the most accurate last year, expect the unemployment rate to be at 9.5% by late 2010." (Sudeep Reddy, "Rosy Assumptions Hold Down Deficit," The Wall Street Journal, 2/27/09)

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National Legal and Policy Center Focuses on Next Phase in Blagojevich-Johnston 'Pay to Play' Saga

/PRNewswire-USNewswire/ -- Today the National Legal and Policy Center publicly released an in-depth analysis of financial contributions made to Friends of Blagojevich from Balmoral and Maywood race track owner John Johnston and other Johnston-owned/affiliated interests. The new analysis reveals that previous accounts of Johnston contributions to Friends of Blagojevich greatly under-reported the actual contributions by Johnston family interests and far exceed the $160,000 in contributions that have been reported previously.

According to the latest analysis, which was sent to the House Impeachment Committee last Thursday afternoon, Johnston-owned/affiliated interests contributed more than $343,000 to Governor Blagojevich's campaign committee from 2002-2007. The new analysis uncovered several significant and large contributions from Johnston businesses or affiliates that heretofore had not been factored into official news accounts, including contributions from Coast to Coast Food Services Ltd. ($60,000), Racing Research ($15,000), the Egyptian Trotting Association ($45,000), and Associates Racing Association, Inc. ($40,000). All businesses are either registered to Johnston family members, share addresses with known Johnston businesses such as the Balmoral and Maywood racetracks, or include officers who also serve as officers or board members of other Johnston-owned/affiliated interests.

Additionally, the new analysis reveals that large blocks of contributions were made from several Johnston-owned/affiliated interests on the same day on at least six different occasions during the 2002-2007 time period. On at least two occasions, contributions totaling $100,000 or more were received by the Friends of Blagojevich campaign on the same day or within days of each other.

The new analysis is particularly noteworthy given last week's removal of Governor Blagojevich from office and the anticipated federal indictment of the Governor by U.S. Attorney Patrick Fitzgerald.

Last week, the Illinois House Impeachment Committee released transcripts of conversations between Governor Blagojevich and his brother Rob Blagojevich concerning an expected $100,000 contribution from John Johnston allegedly in exchange for the Governor's signature on legislation benefiting horse racing interests and the Johnston family. According to transcripts of those conversations, the Governor's brother quoted Mr. Johnston as agreeing to make the $100,000 contribution and saying "I gotta just decide what, what uh, accounts to get it out of."

That conversation coupled with the new revelations of large blocks of contributions of $100,000 or more to Friends of Blagojevich from several different Johnston-owned/affiliated accounts suggest that Mr. Johnston may have chosen to make large contributions from several different entities in order to obfuscate the original source of the contributions, cobble together larger aggregate amounts that were more acceptable to Governor Blagojevich in exchange for the Governor's support of legislation or perhaps both.

Illinois election records reveal for instance that between May 21, 2002 and June 3, 2002, $100,000 in contributions were made to Friends of Blagojevich from Johnston interests with $85,000 received by Friends of Blagojevich on one day -- May 21st. Thirteen days later, Illinois election records record an additional contribution of $15,000 from Racing Research registered to William H. Johnston Jr. at 8600 W. North Ave. in Melrose Park -- the same address as the Maywood Park racetrack.

On June 27, 2006, Illinois election records reveal seven different contributions from Johnston interests to Friends of Blagojevich totaling $135,000. The contributions came almost exactly one month after Governor Blagojevich signed HB-1918 on May 26, 2008 which amended the Horse Racing Act to establish the original Horse Racing Equity Trust Fund. That legislation provided for the horse racing industry to receive 3% of the adjusted gross revenues from four riverboat casinos in Illinois.

Ken Boehm, Chairman of the National Legal and Policy Center (NLPC), a Washington DC based think tank focused on ethics and government said of the new revelations "We don't take any position on gambling or horse racing and don't have an opinion as to whether the contributions were illegal or inappropriate. However, we do believe that voters in Illinois deserve a full and complete airing of these issues to determine if campaign dollars were used in exchange for 'pay to play' politics, and if so, to what extent."

Boehm continued, "When our elected officials attempt to barter the power of their offices to the highest bidder, only those citizens who are deep pocketed enough or have the right connections retain the capability to benefit from the political process. The rest of us lose.

The Illinois General Assembly apparently found enough evidence of wrongdoing to remove Governor Blagojevich from office. It's our hope that as the Blagojevich saga now moves to the expected indictment phase, all allegations concerning the extent that the Governor may have been selling his good offices for favorable legislative outcomes will be fully explored and investigated," Boehm concluded.

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