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Cato Podcast

Big Ed Gropes for Stimulus

Cato Podcast

Cato Institute

Immigration, News, News Commentary, Peace, 424708, Markets, Government, Libertarian, Policy, Politics, Cato, Defense

4.5979 Ratings

🗓️ 9 February 2009

⏱️ 5 minutes

🧾️ Download transcript

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Transcript

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0:00.0

This is the Cato Daily Podcast for Monday, February 9, 2009.

0:07.0

I'm Caleb Brown.

0:08.0

The massive stimulus plan grinding through Congress contains tens of billions for education, but to what end?

0:15.5

Is it stimulus or just filling in budget holes for state education bureaucracies?

0:20.6

Neil McCluskey, Associate Director of the Cato Institute's Center for Educational Freedom comments.

0:27.0

Well there's about $140 billion in it for education.

0:32.0

The biggest chunk of that is about 75 billion dollars that will go to states specifically for K-12 education to kind of do what they want with.

0:40.0

Then there's around 6 billion to increase Pell Grants for higher education.

0:45.0

There's about 13 billion to add to no child up behind.

0:48.0

There's about 15 billion for the discretionary use of the Secretary of Education, so there is a gigantic chunk of this stimulus

0:56.2

that is earmarked for education.

0:58.8

It's all supposed to be used in the first year or two after it's passed.

1:03.9

The problem always is they'll pass this,

1:07.4

and then in two years or three years,

1:10.1

they'll propose, well, we'll spend less money now and invariably the people on education

1:14.8

will say well this is going to be a huge cut because in previous years we got X amount and so

1:21.0

even if this was intended to be sunset at or stop when we have recovery, it won't because that's not how budgeting works. Budgeting works by special interests saying,

1:32.0

we used to get this, now you're trying to give us

1:34.8

less than this and we want this back and there's a perfect example in

1:37.5

education national science foundation which has lots of lobbying done by higher education for that.

1:45.2

They had their budget doubled between 1996 and 2006, roughly.

1:51.5

After that doubling, they didn't continue to get increases,

...

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