On major federal regulations

As we navigate our dizzying dysfunctional relationship with the feds, there emerge dark clouds of some 106 major federal regulations from the Obama administration. These measures are being crafted for implementation throughout the country, including the NMI over the next year.

Known as the “administrative state” or “regulatory state,” the authority to make public policy is unlimited, centralized, and delegated to unelected federal bureaucrats. The policies crafted aren’t subject to congressional oversight or judicial review.

Congress simply emasculated itself of its lawmaking authority, a violation of the basic constitutional principle limiting legislative power to elected members and not appointed bureaucrats. There are various agencies throughout the federal bureaucracy: executive agencies, executive departments, federal departments and independent regulatory commissions.

The disturbing aspect of this contemporary trend in Washington is the massive powers the various agencies have over national policy in what’s known as the “fourth branch.” It combines the powers of the three branches and pens regulations without due regard to the views and opinions of citizens. What happens to the constitutional foundation of a “government for the people, by the people and of the people?”

Our Washington office can’t ignore the 106 impending regulations. It must work the clock so it shares it with “we the people”. It’s substantive issues we need to explore to the hilt!

Whenever a Trojan horse (freebie) is found, Kilili brings it here with official announcement that more goodies are on the way. We meet it with a full round of applause. We accept it grandly without critical review what the programs are all about headed into the future.

For instance, we applaud the reported $150 million for Medicaid and the economic multiplier effects it would bring to the islands. While it’s available for expenditure it’s tacitly accepted as a positive thing. Is it really?

If I may illustrate a point based on a study by a highly credible foundation: “Virginia’s Medicaid expansion is estimated to cost the state $137 million from 2010 to 2022. There’s the estimated savings of $555 million over the first 10 years due to additional state savings and positive economic effects.

“By including economic savings, the Medicaid expansion will cost the state of Virginia $77 million in 2020. In 2021, this cost increases to $168 million and climbs in 2022 to $188 million. From 2020 to 2022, the Medicaid expansion will cost the state $433 million. While state savings are clearly concentrated in the first five years of expansion, it is also clear that costs will be coming in the out years.

“It is important to note that the most rigorous studies of costs and savings in Virginia show that, by 2022, the Medicaid expansion will cost the state nearly $190 million annually. At this point, the state will have to find new ways to pay for the Medicaid expansion, as the federal government will no longer fully subsidize the program. This will create a tax burden or cause resources to be shifted from other public programs, such as education.

“The Virginia analysis does not take into account the negative economic effects of funding in the later years. This portrays Medicaid expansion in a more positive light, since spending in the early years is assumed to affect economic multipliers, but in later years, the negative economic impacts are simply ignored.

Are we poised to embrace the eventual cost of Medicaid down the stretch? If you answer is in the affirmative, isn’t it true that the NMI is basically bankrupt and had to cut pension pay for retirees by 25 percent? Isn’t the local government struggling with a debt of about $369 million thus the continuing deficit spending? Just thought I’d pass these set of factual fiscal phenomena along given that the Geyser of unintended consequences will dog us to death fiscally.

Nearly 10 years ago, I handed the administration—through MPLT—the sum of $3.5 million to avert an impending major brownouts island-wide. The contractor (Aggreko) immediately bought and installed temporary units to support the system while it underwent major overhaul and repair. We saved the island from coming to a screeching halt.

If history renders lessons to be learned, apparently our grand mañana reverted to the comfort zone once more after the relief entered the fold. We continue feeding an old power generation system sinking at the base ready for inclusion in the NMI museum of arts. If anything, the costly system needed replacement and relocation with renewable energy technology more so than ever before.

But it seems the arcane system remains the crown jewel of incompetency so glorified and slapped with Band-Aid solutions every so often. Either we know what it would realistically take to resolve an impending power failure or aren’t necessarily adept at “planning for” the future.

Indeed, we see investment of interests as though they’d pop up everywhere like wild tañgantañgan ignoring that each facility will need reliable and sufficient power to operate. Even hotels throughout the island aren’t even hooked to the grid because of a deficiency in the system. And we’re taking forward leaps ahead of our shadows? How about getting our ducks in order first?

My kanaka friend once chimed, “Many problems braddah!” Couldn’t agree more though not even sure what’s the pathology inherent in the obvious disregard to move the needle of growth forward. There’s just sheer apathy on urgency. As we dilly-dally with time, the hardship downstairs is hardened and cemented further forcing the multitude to pine for divine intervention.

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Why do public officials continue traveling (at our expense) when this government is basically bankrupt? Appalling the little sense of appearance and the bottom line. Call it sheer arrogance!

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