Showing posts with label laid-off teachers. Show all posts
Showing posts with label laid-off teachers. Show all posts

Monday, January 13, 2014

My third re-posted Paul Craig Roberts blog in a row(!), this one having to do with U.S. unemployment. The remarkable fact here is that the folks at the Bureau of Labor Statistics have finally come out with a payroll jobs report that disproves the alleged recovery. This has led PCR to "wonder how the BLS civil servants who produced it can avoid retribution" ...for letting us know that there is no -- and can never be -- a recovery from the "great recession" so long as 73% of the US work force continues to earn less than $50,000, millions of others have searched for but finally given up trying to find a job, and no new jobs are being created.



No Jobs For Americans — Paul Craig Roberts

January 10, 2014 | Original Here                                              Go here to sign up to receive email notice of this news letter

No Jobs For Americans

Paul Craig Roberts

The alleged recovery took a direct hit from Friday’s payroll jobs report. The Bureau of Labor Statistics reported that the economy created 74,000 net new jobs in December.

Wholesale and retail trade accounted for 70,700 of these jobs or 95.5%. It is likely that the December wholesale and retail hires were temporary for the Christmas shopping season, which doesn’t seem to have been very exuberant, especially in light of Macy’s decision to close five stores and lay off 2,500 employees. It is a good bet that these December hires have already been laid off.

A job gain of 74,000, even if it is real, is about half of what is needed to keep the unemployment rate even with population growth. Yet the Bureau of Labor Statistics reports that the unemployment rate fell from 7.0% to 6.7%. Clearly, this decline in unemployment was not caused by the reported 74,000 jobs gain. The unemployment rate fell, because Americans unable to find jobs ceased looking for employment and, thereby, ceased to be counted as unemployed.

In America the unemployment rate is a deception just like everything else. The rate of American unemployment fell, because people can’t find jobs. The fewer the jobs, the lower the unemployment rate.

I noticed today that the financial media presstitutes were a bit hesitant to hype the drop in the rate of unemployment when there was no jobs growth to account for it. The Wall Street and bank economists did their best to disbelieve the jobs report as did some of the bought-and-paid-for academic economists. Too many interests have a stake in the non-existent recovery declared 4.5 years ago to be able to admit that it is not really there.

I have been examining the monthly jobs reports for a decade or longer. I must say that I am struck by the December report. Normally, a mainstay of jobs gain is the category “education and health services,” with “ambulatory health care services” adding thousands of jobs. In December the net contribution of “education and health services” was zero, with “ambulatory health care services” losing 4,100 jobs and health care losing 6,000 jobs. If memory serves, this is a first. Perhaps it reflects adverse impacts of the ripoff known as Obamacare, possibly the worst piece of domestic legislation passed in decades.

I was also struck by the report that the gain in employment of waitresses and bartenders, normally a large percentage of the job gain, was down to 9,400 jobs, which were offset by declines elsewhere, such as the layoff of local school teachers.

Aren’t Washington’s priorities wonderful? $1,000 billion per year in Quantitative Easing, essentially subsidies for 6 banks “too big to fail,” and nothing for school teachers. It should warm every Republican’s heart.

A tiny bright spot in the payroll jobs report is 9,000 new manufacturing jobs. The US manufacturing workforce has declined so dramatically since jobs offshoring became the policy of American corporations that 9,000 jobs hardly register on the scale. Fabricated metal products, which I think is roofing metal, accounted for 56% of the manufacturing jobs. Roofing metal is not an export. Employment in the production of manufactured products that could be exported, such as “computer and electronic equipment,” and “electronic instruments” declined by 2,400 and 3,500 respectively.

Clearly, this is not a payroll jobs report that provides cover for the looting of the prospects of ordinary Americans by the financial and offshoring elites. One can wonder how the BLS civil servants who produced it can avoid retribution. It will be interesting to see what occurs in the January payroll jobs report.



Wednesday, April 13, 2011

IT'S HIGH TIME FOR A ROBIN HOOD TAX ON WALL STREET FINANCIAL GAMBLERS







AlterNet / by Les Leopold

Hedge Fund Gamblers Earn the Same In One Hour As a Middle-Class Household Makes In Over 47 Years


How do they make so much money? Where does it come from? How can hedge fund firms with fewer than 100 employees make as much profit as firms with thousands of employees? 


April 11, 20011 |  We live in a very, very rich country. Yet we seem to be utterly consumed by a collective hysteria that we’re about to go broke. Historians are certain to look back at this period and wonder why the richest country in history consumed itself in a struggle over how many teachers to fire.

How rich are we?

Just take a look at the latest reports on what the top hedge fund managers haul in. In 2010 John Paulson led the list with a record $4.9 billion in personal earnings. That’s a whopping $2.4 million an HOUR. Here’s a factoid to make you wretch: It would take the median US household over 47 years to earn as much as Paulson pocketed in just 60 minutes. And, every hedge fund manager pays a lower tax rate than the average family.

The top 25 hedge fund earners took in $22.07 billion in 2010. Thanks to a generous tax loophole these billionaires will pay a top tax rate of 15 percent instead of 35 percent. Closing that loophole on just those 25 individuals – just 25 guys who wouldn’t miss a penny of it -- would raise $4.4 billion, which is enough to rehire 126,000 laid-off teachers.

Wait a sec. This is America, not Russia. Don’t we want our entrepreneurs to go out there and earn as much as possible? We don’t want to punish the successful who are building up our economy, do we?

Maybe that’s a strong argument when you’re talking about the CEO billionaires of Apple and Google and other successful companies that make products we use. But when it comes to financial billionaires, we don’t even know what they do for a living.

Each and every day I ask people and I get a blank stare or something like: “They invest. They make money.” Sure enough, but how do they make so much money? Where does it come from? How can hedge fund firms with fewer than 100 employees make as much profit as companies like Apple with tens of thousands of employees?

This much we know. They speculate. The place bets. They jump in and out of markets at lightening speeds. They have secret betting formulas just like card counters in Vegas. And as any state attorney general can tell you, a good number of them cheat by betting with illegal insider tips, front-running trades, sneaking in trades after markets close and so on. The entire industry is barely regulated as it plays with a bankroll of $2.2 trillion that comes mostly from enormously rich investors. You can bet the next crisis will bubble out of this vast and murky casino.

I have yet to hear a convincing argument that financial billionaires produce economic value commensurate to what they earn. And if they don’t, that means they are siphoning off the wealth from the rest of our nation. Either we do something about it or we’ll watch our standard of living crumble.

Blah, blah blah. We’ve heard it all before. We know that super-rich financiers are gaming the system. We know they pay low taxes or none at all. We know they’re stashing their cash in offshore accounts. But now that the economy isn’t crashing anymore, it seems there’s nothing we can do about it. We just have to learn to live with a new kind of aristocracy. Get used to it.

Maybe not.

There’s a movement underway for what economist Dean Baker aptly named a “financial speculation tax.” The idea, first put forth by the late James Tobin to raise money to help eradicate global poverty, is to place a very small tax on all financial transactions. Here’s how Baker’s Center for Economic and Policy Research describes it:
The FST (also known as a financial transactions tax or the Robin Hood tax) is a modest set of taxes on Wall Street trading – e.g. 0.25% (1/4 of a percent) on a stock purchase or sale and 0.02% (1/50 of a percent) on the sale or purchase of a future, option, or credit default swap. These rates are proportional to the actual transaction costs in the industry.

An FST would raise over $100 billion per year in badly needed revenue or $1 trillion over the course of a decade.This is a substantial sum of revenue, which skims the fat off of a sector of the economy that can afford to pay it.
The beauty of this kind of tax is that it grabs the financial booty before it lands in the financiers’ pockets. You avoid all the lobbying over loopholes and trying to get back money that someone already has claimed as his or her own. You also avoid the entire argument about whether or not the person has really “earned” it.

By taxing financial speculation in real time, we reclaim some of the ungodly accumulation of speculative wealth in the financial sector. Everyone knows that the financial sector has grown too large for the good of our nation. Everyone knows that its size allows it to play fast and lose with our implicit guarantee of its bets. (Correction: everyone knows but Tim Geithner, who actually believes the financial sector should get even larger so it can provide more speculative services to emerging markets all over the world.) The financial speculation tax is the perfect way to put that money back to work for the common good.

Furthermore, it’s the very best way to make the financial sector pay us back for all the damage it has done to the economy. Before we succumb to financial amnesia we should recall that Wall Street, and it alone, went on a massive gambling spree that crashed the economy and killed 8 million jobs. To save the system from falling into another Great Depression we bailed them out and now they are again making record profits. Meanwhile, long-term unemployment remains at record highs and states are in enormous fiscal distress.

Every American not tied to Wall Street knows that the high-stakes financial gamblers should be paying us back. The speculation tax is the very best way to do it -- grab the money before they stash it in their offshore accounts.

We’re not alone.

Financial transaction taxes are high on the agenda of European nations that seem much less intimidated by their financial barons. The United Kingdom already has such a tax on stock and bond transactions, and there are no adverse effects on its financial center.

On March 8, a coalition of progressives succeeded in getting the European Parliament to endorse this Robin Hood tax by a vote of 529 to 127. This non-binding proposal if enacted would raise approximately $286 billion a year for the European Union. The G20 group of the leading industrial nations is considering such a tax, but the US and its billionaire bankers are fighting hard to keep it off the agenda.

Back in the USA an ad hoc collection of economists are mounting a petition drive to put the issue back on the agenda. It says in part:

The financial crisis has shown us the dangers of unregulated finance, and the link between the financial sector and society has been broken. It is time to fix this link and for the financial sector to give something back to society. …This money is urgently needed to raise revenue for global and domestic public goods such as health, education and water, and to tackle the challenge of climate change.

Needless to say, winning won’t come easy because Wall Street is determined to kill any and all efforts to siphon money away from its casinos. The joke is that when the big boys were on their knees two years ago begging for money, this tax easily could have been a condition for bailing them out. But in truth, the Obama administration is siding with Wall Street and has come up with every lame excuse for why it can’t work, even though it’s working just fine in England.

Clearly, we need our own Robin Hood movement like the one organized in Europe that delivered more than 500,000 petitions to the European Parliament. And that in turn requires we develop the will to fight Wall Street.

Each time I write about these issues, my editors worry that you, the readers, have given up -- that nobody believes it’s possible to fight Wall Street and win.

Well, I’m not giving up on you.

.                                                                                                                                                                      .
Les Leopold is the executive director of the Labor Institute and Public Health Institute in New York, and author of The Looting of America: How Wall Street's Game of Fantasy Finance Destroyed Our Jobs, Pensions, and Prosperity—and What We Can Do About It (Chelsea Green, 2009).

Sunday, August 08, 2010

Federal Government Refuses to Bailout States: Supreme Idiocy or Deliberate Malevolence?

For parents who could not work from home or enlist the help of grandparents, a host of Furlough Friday day care programs sprang up. This one, run in Honolulu by Hawaii Kids Count, cost $25 a day; many parents said that they did not know what they would have done without it. Amanda McCann, the organization's owner, spoke to the children.
Credit: Marco Garcia for The New York Times

The motto of C-Tran, the public bus system in Clayton County, Ga., just south of Atlanta, was "Tomorrow's Transportation Today." But when this C-Tran bus pulled up at Hartsfield-Jackson Atlanta International Airport on March 31, there was no tomorrow: to save money, the county shut the entire bus system down at midnight. Some 8,400 daily riders were left without local bus service.
Credit: Kendrick Brinson for The New York Times

On the last day of C-Tran service, Constance Glenn, 22, wondered what would become of her. Ms. Glenn, who does not own a car, caught a 5:26 bus each morning to get to the airport by 7, in time for her shift at McDonald's. "With the bus service getting cut off,'' she said, "I'm out of a job.''
Credit: Kendrick Brinson for The New York Times






Governments Go to Extremes as the Downturn Wears On

By MICHAEL COOPER

Plenty of businesses and governments furloughed workers this year, but Hawaii went further — it furloughed its schoolchildren. Public schools across the state closed on 17 Fridays during the past school year to save money, giving students the shortest academic year in the nation and sending working parents scrambling to find care for them.

Many transit systems have cut service to make ends meet, but Clayton County, Ga., a suburb of Atlanta, decided to cut all the way, and shut down its entire public bus system. Its last buses ran on March 31, stranding 8,400 daily riders.

Even public safety has not been immune to the budget ax. In Colorado Springs, the downturn will be remembered, quite literally, as a dark age: the city switched off a third of its 24,512 streetlights to save money on electricity, while trimming its police force and auctioning off its police helicopters.

Faced with the steepest and longest decline in tax collections on record, state, county and city governments have resorted to major life-changing cuts in core services like education, transportation and public safety that, not too long ago, would have been unthinkable. And services in many areas could get worse before they get better.

The length of the downturn means that many places have used up all their budget gimmicks, cut services, raised taxes, spent their stimulus money — and remained in the hole. Even with Congress set to approve extra stimulus aid, some analysts say states are still facing huge shortfalls.

Cities and states are notorious for crying wolf around budget time, and for issuing dire warnings about draconian cuts that never seem to materialize. But the Great Recession has been different. Around the country, there have already been drastic cuts in core services like education, transportation and public safety, and there are likely to be more before the downturn ends. The cuts that have disrupted lives in Hawaii, Georgia and Colorado may be extreme, but they reflect the kinds of cuts being made nationwide, disrupting the lives of millions of people in ways large and small.

EDUCATION: HAWAII FURLOUGHS ITS CHILDREN

MILILANI, Hawaii — It was a Friday, and Maria Marte, an administrator for an online college that caters to members of the military, should have been at her office at a nearby Army hospital. Her daughters, Nira, 11, and Sonia, 9, should have been in school.

Instead, Ms. Marte was sitting with a laptop in the dining room of her home in this neatly manicured suburb of Honolulu. “Did you already send your registration in?” she asked a client on the phone, trying to speak above the peals of laughter coming from the backyard, where the girls were having a water-balloon fight with some friends.

It was the 17th, and last, Furlough Friday of the year, the end of a cost-cutting experiment that closed schools across the state, outraging parents and throwing a wrench into that most delicate of balances for families with children: the weekly routine

“I have to pay attention to the customers, and make sure that I’m understanding what they need,” said Ms. Marte, 37, whose husband, Odalis, an Army major, had been deployed in Afghanistan for nearly a year. Then she nodded at the window, toward the girls. “But at the same time, I have to make sure that they’re not killing each other.”

For those 17 Fridays, parents reluctantly worked from home or used up vacation and sick days. Others enlisted the help of grandparents. Many paid $25 to $50 per child each week for the new child care programs that had sprung up.

Children, meanwhile, adjusted to a new reality of T.G.I.T. Getting them up for school on Mondays grew harder. Fridays were filled with trips to pools and beaches, hours of television and Wii, long stretches alone for older children, and, occasionally, successful attempts to get them to do their homework early.

But if three-day-weekends in Hawaii sound appealing in theory, many children said that they wound up missing school.

“I’m really not a big fan of furloughs,” said Nira Marte, a fifth grader, explaining that she missed the time with her friends and her teacher.

Four-day weeks have been used by a small number of rural school districts in the United States, especially since the oil shortage of the 1970s. During the current downturn, their ranks have swelled to more than 120 districts, and more are weighing the change.

But Hawaii is an extreme case. It shut schools not only in rural areas but also in high-rise neighborhoods in Honolulu. Suffering from steep declines in tourism and construction, and owing billions of dollars to a pension system that has only 68.8 percent of the money it needs to cover its promises to state workers, Hawaii instituted the furloughs even after getting $110 million in stimulus money for schools.

Unlike most districts with four-day weeks, Hawaii did not lengthen the hours of its remaining school days: its 163-day school year was the shortest in the nation.

The furloughs were originally supposed to last two years, but the outcry was so great — some parents were arrested staging sit-ins at the office of Gov. Linda Lingle, a Republican — that a deal was hammered out to restore the days next year.

On the last furlough day, Ms. Marte toggled back and forth between her girls — making them pizza, taking them to swim practice — and a stream of e-mails and calls. At one point, a soldier on the mainland was interrupted when his baby started bawling.

“Don’t worry, that’s fine,” Ms. Marte reassured him. “I’m in the same boat.”

TRANSPORTATION: A COUNTY SHUTS ITS BUS SYSTEM

RIVERDALE, Ga. — Kelly Smith was reading a library copy of “The Politician,” the tell-all about John Edwards, as his public bus rumbled through a suburb of Atlanta. It was heading toward the airport, where he could switch to a train to his job downtown, in the finance department of the Atlanta Public Schools system. But his mind was drifting.

It was March 31, the last day of public bus service. Clayton County had decided to balance its budget by shutting down C-Tran, the bus system, stranding 8,400 daily riders. Mr. Smith, 45, like two-thirds of the riders, had no car. He needed a plan.

“I think that what they’re doing is criminal,” Mr. Smith said as his 504 bus filled up. “I’ll figure something out, but I see a lot of people here who don’t have an out.”

The next morning, this is what he had figured out: a state-run express bus stopped around three miles from his apartment in Riverdale. So Mr. Smith rose at 5, walked past the defunct C-Tran bus stop just outside his apartment complex and hiked the miles of dark, deserted streets, many of which had no sidewalks.

“If I get hit by a car, it’s my fault,” he said as he crossed a highway. “Who wants to start their day off like this? This is why I don’t get up and jog.”

Mr. Smith was determined to get to the job he had landed in November, and to get there on time. “I was out of work for two and half years, with the economic crisis,” he said. “So the last thing I want to do is walk away from a job.”

Around the country, public transportation has taken a beating during the downturn. Fares typically cover less than half the cost of each ride, and the state and local taxes that most systems depend on have been plummeting.

In most places, that has meant longer waits for more crowded, dirtier and more expensive trains and buses. But it meant the end of the line in Clayton County, a struggling suburb south of Atlanta where “Gone With the Wind” was set and which is now home to most of Hartsfield-Jackson Atlanta International Airport.

The county — hit hard by the subprime mortgage crisis and the wave of foreclosures that followed — decided it could no longer afford spending roughly $8 million a year on its bus system, which started in 2001.

It hoped that some other entity — like the state — would pick up the cost.

If the threat to shut the system down was a game of chicken, no one blinked.

Now all five bus routes are gone, and riders are trying to adjust.

Jennifer McDaniel, a hostess at a Chili’s in the airport, was forced to spend her tax refund, and take out a big loan, to buy a car. Jaime Tejada, 36, a Delta flight attendant, wondered why transit was so much better in the countries he flies to.

And Tierra Clark, 19, who studies dental hygiene and works five nights a week at the Au Bon Pain at the airport, was left with an unwanted new expense. “I’ll have to call a taxi from now on — $13.75 every night,”
Ms. Clark said, as she rode the very last C-Tran bus home.

Now there is talk of levying a new sales tax so the county can join the Metropolitan Atlanta Rapid Transit Authority, which it voted not to join when it was created nearly four decades ago. That could get the buses up and running again.

Even if that happens, though, it could be years off — too late for Mr. Smith. After spending a carless Easter vacation trying to figure out a better way to get to work, or even to get his groceries, he ended up quitting his first job in two and a half years and moving just outside Dallas, where his girlfriend had landed a job with a bank.

“A lot of people are leaving Riverdale,” he said.

PUBLIC SAFETY: LIGHTS OUT IN COLORADO SPRINGS

COLORADO SPRINGS — It was when the street lights went out, Diane Cunningham said, that the trouble started.

Her tires were slashed, she said. Her car was broken into. Strange men showed up on her porch. Her neighborhood had grown deserted at night, ever since four streetlights in a row were put out on Airport Road, the street outside her mobile home park.

That is why Ms. Cunningham, 41, and her son Jonathan, 22, were carrying a flat-screen television out of their mobile home on a recent afternoon. “I’m going to pawn this,” Ms. Cunningham said, “to get a shotgun.”
It is impossible to say whether the darkness had contributed to any of the events that frightened the Cunninghams. But ever since Colorado Springs shut off a third of its 24,512 streetlights this winter to save $1.2 million on electricity — while reducing the size of its police force — many residents have said that they feel less safe.

A few miles down Airport Road a 62-year-old man, Esteban Garcia, was shot to death in April when he was robbed outside his family’s taqueria and grocery in a parking lot that had lost the illumination of its nearest streetlight. Gaspar Martinez, a neighboring shopkeeper, said that he believed the lack of the light was partly to blame.

“You figure the robbers think that if it’s dark, it’s the best time to hit,” said Mr. Martinez, 34, whose store, Ruskin Liquor, is in the same small strip mall. Mr. Martinez said that he put more lights up outside his store after the shooting.

The police, who arrested several suspects, said that there was no indication that the doused light had played a role in the crime — or, indeed, in any crimes in Colorado Springs, which remains safer than most cities of its size. But this might be a case, they said, where perception is as important as reality.

“All the sociologists have said this for years: what matters to people isn’t really the number of reported crimes, it’s their perception of safety,” said the city’s police chief, Richard W. Myers. “And let’s say we don’t see any bump in crime — that would be a good thing. But people don’t feel as safe. They’re already telling us that, even if the numbers don’t bear that out. So do we have a problem? I think so.”

Chief Myers said he worried that if law-abiding citizens stopped going out at night or visiting parks, the city’s deserted open spaces could attract more criminals.

One of most influential policing concepts in recent years has been the “broken windows” theory, which holds that addressing minor crimes and signs of disorder can head off bigger problems down the road. Colorado Springs is taking a different tack.

To close a budget gap — the city’s voters, many of whom favor smaller government, turned down a property tax increase in November, and a taxpayer’s bill of rights makes it hard for city officials to raise taxes — Colorado Springs has stopped collecting trash in its parks, stopped watering many medians on its roads and reduced its police force.

The sprawling city of roughly 400,000 at the foot of Pike’s Peak — which covers 194 square miles — made national news when it auctioned off its police helicopters. But less-heralded police cuts could have more impact: the force, which had 687 officers two years ago, is down to 643 and dropping. At any given time, the department estimates that there is a 23 percent chance that all units will be busy.

So it has reduced the number of detectives who investigate property crimes, cut the number of officers assigned to the schools and eliminated units that tracked juvenile offenders and caught fugitives. Officers no longer respond to the scene of most burglaries, at least if they are not in progress.

At the same time, the city joined others — from Fitchburg, Mass., to Santa Rosa, Calif., and began turning off streetlights. Several recent studies have suggested that streetlights help reduce crime — something residents here say is obvious.

Natalie Bartling, a new mother, could not believe it when the light outside her home was shut off in April. Ms. Bartling, 38, had successfully lobbied for the light five years ago after a wave of vandalism and petty thefts hit her middle-class block. So this time she called daily until the city agreed to turn it back on.

“When it got shut off, it was like missing something,” she said on a recent night, standing under its glow. “Part of your life.”

Sunday, May 30, 2010

Congress has bailed out a few hundred banksters to the tune of $23 Trillion but now can't find $23 Billion to keep several hundred thousand teachers from losing their jobs. What words would you use to tell Congress what you think about this?

Blogger's Note 1: The remarkable coincidence of the number 23 is real. Find the first number here and see the article below for the second one. To put this all in perspective, $23 Trillion is about 1 1/2 times the U.S. GDP or the money supply.  The recipients of this inflationary largess have been the very people who have busted our economy, whereas the folks who are now being denied 0.1% of that amount for reasons of "fiscal responsibility" are the very ones who teach our children! What kind of country do we live in anyway?

Bloggers's Note 2: I'm running a survey: If you could meet face-to-face the Congress persons who are now saying things like "Given the size of the current federal deficit, I have reservations about the federal government taking on greater responsibility for education funding," what words would you use to tell them what you think of them?  Please give your answer by clicking "comments" at the bottom of this post and expressing yourself freely...
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Election-Year Politics Derail Bid to Save Teachers' Jobs


Washington - Congress bailed out Wall Street and the auto industry, but it appears to have drawn the line — at least for now — at rescuing teachers.

A Democratic plan to send $23 billion to the states to save the jobs of 100,000 to 300,000 public school teachers, librarians, counselors and other employees slated for layoffs looks dead for the time being.

Blame it on election-year politics. The anti-Washington, anti-spending mood has become so potent that even Democrats are antsy about helping teachers, one of their most long-standing and generous allies.
"We are in a situation now where a portion of our caucus is rebelling against just about any kind of spending," said Democratic Rep. Emanuel Cleaver of Missouri.

The layoffs already have begun. Advocates for teachers are calling them catastrophic. Critics of the emergency aid say states need to clean up their fiscal acts and make changes.

In the meantime, large, populous states such as California and Texas, for example, are each expected to absorb the loss of more than 30,000 teachers and other personnel, according to White House estimates.

Schools are cutting staff and programs because the recession has depleted state tax revenues, which pay for public education.

Democrats in the House of Representatives had hoped to pass the $23 billion emergency bailout this week as part of a spending bill for the war in Afghanistan that was slated for passage, but fiscally conservative members from tough districts weren't happy about having to defend another vote that would increase the deficit.

The school aid measure never came to a vote. Nor did it have any more luck in the Senate, where some Democrats were equally jumpy about spending, and the majority couldn't secure the necessary 60 votes for passage.

"Given the size of the current federal deficit, I have reservations about the federal government taking on greater responsibility for education funding," said Democratic Sen. Claire McCaskill of Missouri.
Teachers have been a powerful voice in Democratic Party politics. The two largest unions gave congressional Democrats more than $4 million in 2008 and have contributed more than $1.7 million so far in this election cycle.

Kim Anderson, the director of government relations for the National Education Association, the largest teachers union, said that given what schools and students were likely to face in the fall because of the layoffs and cutbacks, "We are struggling to see why people view this as a tough vote. We view this as a pretty common-sense vote. We really think (the layoffs) will have the most catastrophic impact on education that we have seen since the Great Depression."

Critics say the Education Department already received $100 billion in economic stimulus money and hasn't spent it all of it, so why should Congress approve more?

"Congress should not add to the nation's burgeoning public debt while states are still sitting on funds that were provided 15 months ago," said Republican Sen. Pat Roberts of Kansas.

Education Department officials said that most of the unspent stimulus money couldn't be used to prevent layoffs because it was obligated to other programs.

Education Department spokeswoman Sandra Abrevaya said the administration expected Congress to approve the emergency money after the weeklong Memorial Day recess.

A powerful force over the outcome could be the sour political mood, however, across the country and on Capitol Hill. A USA Today/Gallup Poll this week said that even as the public was growing optimistic about the economy, anger at the country's direction and incumbents was extremely high.

With a pivotal election in five months, lawmakers in both parties are operating on high alert. A range of issues could be affected, and there will be few hands across the aisle.

"We now cannot compromise because each party will react negatively to someone who wants to work with the other side," Cleaver said. 

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