SB 2018-223: Don't Bank With Us Act (Tabled)

[Mr. Reactionary]

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Sponsor: Mr. Reactionary

[NeverAgain]

Would you mind clarifying why these Programs, specifically, are deserving of abolition? A few of these I could understand, especially for specific industries (Sugar processor nonrecourse loan program - WTF?) but the extent is worrying to me. Particularly as some of these provide good benefits. If you are on the path of trying to ensure efficiency, I would be more than happy to discuss consolidation or reforming the loan processes, but I am worried about ending programs that do provide necessary loans to hardworking Atlasians.

For example, let's go through a couple on the chopping block:

Rural Energy for America Loan Guarantee Program: Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to purchase or install renewable energy systems or make energy efficiency improvements. Specifically for purchase, installation and construction of renewable energy systems (Geothermal, big and small wind power, Hydrogen, Tidal Wave) or purchase, installation and construction of energy efficiency improvements (High efficiency heating, diesel to electric motors, replacement of energy-inefficient equipment).

The Distance Learning and Telemedicine Loan and Grant Program: Assists rural communities use the unique capabilities of telecommunications to connect to each other and to the world, overcoming the effects of remoteness and low population density. For example, this program can link teachers and medical service providers in one area to students and patients in another. On an anecdotal note, we actually here in NoVA are planning to use a part of this grant to help aid us in accessing Lee County, Virginia in a new RAM program GWU is setting up (my mom works there, and is the head of this program). This helps provide a link for medical students to gain experience, for individuals to get low-cost and efficient care, and all for very little cost to John G. Taxpayer. Much less than a $100,000 Medicaid/are bill would be.

Export-Import Bank: Ah, of course. You all really have a knack for picking the important ones. Now, I personally have always loved the work that the Ex-Im bank does. While estimates vary that the bank earns or loses roughly between $1 or $2 Billion each year, its true non-monetary value to Atlasia (and the world) remains constant. The Ex-Im bank provides a variety of loan, guarantee, and insurance products intended to aid the export of American goods and services. The mission of the Bank is to create and sustain U.S. jobs by financing sales of U.S. exports to international buyers. Projects such as the Pan-American Highway, Lend-Lease and subsequent Marshall Plan, along with the first loans to help post-Soviet nations rebuild and grow after the fall of Communism (arguably one of the reasons many are striving today is because of the aid provided by the US, and specifically through the Ex-Im bank). According the the NAM,  The Bank assists nearly 300,000 export related jobs and each year is helping more and more small and medium-sized manufacturers grow their businesses and hire new workers. More than 85% of all Ex-Im transactions directly benefit small business exporters—the economic engine that powers our economy and job creation. While I agree there are certainly reforms we can make, the abolition of an almost century long program, integral to our economic reputation domestically and abroad should not be pursued.

I can explain the same with many of these programs (no response that Sugar one though, kill it). See when we line them all up like a firing squad, their individual importance and effect on the working people of Atlasia is lost. Believe me, ending government waste, redundancies, and ineffective programs is of EXTREME importance to me, as I think it is to many of us (I introduced a bill to that extent, currently in the House). But these are not the demons we should focus on. We can cut the fat, while not butchering the cow.

I strongly encourage the Senate to vote against this measure, even with possible reforms, for I think the number of vital programs on the chopping block makes me unsure whether even that would boost my support. One quote that always stands out to me is by John Sharp who says that "government cuts are easy to do, but being in government means you don't do the easy thing, you do the right one." In my opinion, this is the easy route, and not one I believe the government of Atlasia should take. Thank you.

[Mr. Reactionary]

I'll go through why each program is redundant corporate welfare bloat later. Notice I didnt include a single HUD loan program on the chopping block, just redundant USDA loans to big ag.

[NeverAgain]

Notice I didnt include a single HUD loan program on the chopping block, just redundant USDA loans to big ag.

So you are saying that some of these "socialist banking programs" are needed?

Well, if we're going through all of them, let's go through all of them.

Beginning Farmer Down Payment Loan Program: This, to me, could be weaned down a bit. Currently loan applicants must contribute a minimum downpayment of 5 percent of the purchase price of the farm and the Agency will finance 45 percent to a maximum loan amount of $300,000. I am perfectly fine with limiting that to farmers of specific need, and mandating that they must use sustainable (very subjective term, but we can define it if we want to redraft legislation) agriculture practices on the new land. I think you hit two birds with one stone - the big agribusiness, which doesn't adhere to such sustainable practices would not bother to have their new farmers take this loan, and loan the money themselves.

My rating: KEEP WITH REFORMS

Rural Development Business and Industry (B&I) Guaranteed Loan Program guarantees loans made by eligible lenders to rural businesses. Basically, what it does is say "if this rural business defaults, we will pay off part their debt". Whereas many banks are unsure whether to loan to businesses in rural communities, due to the perceived (and legitimate, in some cases) issue with a lack of demand. I, personally, believe that rural persons, as well as those in more populated areas deserve access to capitalist enterprises. This allows for the free market to take its course, and takes some of the risk away on the lending side if the business flops.

My rating: KEEP

The Biorefinery Assistance Loan Guarantee Program assists in the development, construction, and retrofitting of new and emerging technologies for advanced biofuels, renewable chemicals and biobased products by providing loan guarantees up to $250 million. Now, I am usually a supporter of biofuels, but there is A LOT of back and forth on the issue. As I see it, their cleanliness, carbon neutrality (PHOTOSYNTHESIS), and low cost all seem like it should be a strong competitor as we try to move away from fossil fuels. But, as you know there are A LOT of different types of biomass and bioenergies - ethanol, one of the most discussed, and one I am not a supporter of, cannot receive taxpayer-backed loan guarantees through this program. There are problems with the program - Range Fuels went under with a $80 million loan guarantee from taxpayers without producing a single drop of Woody biomass fuel. Is the solution to abolish it? I don't think so. We can limit the extent, we can ensure that infrastructure is secure before we even guarantee a dollar, etc.

My rating: KEEP WITH REFORMS

The Community Facility Loan Program provides affordable funding to develop essential community facilities which provide essential services to the local community in rural areas. NOTE: This does not include private, commercial or business undertakings. Examples include health care facilities such as hospitals, medical clinics, dental clinics, nursing homes or assisted living facilities. Local food systems such as community gardens, food pantries, community kitchens, food banks, food hubs or greenhouses. Along with public safety services such as fire departments, police stations, prisons, police vehicles, fire trucks, public works vehicles or equipment. This only specifically goes to places with very little in terms of population, and covers more (progressively so) the fewer are in the local area. Now my question is, if we're not lending to help these communities provide these basic services - who will? I see this as a great program for rural communities.

My rating: KEEP

Already touched on my support for the Distance Learning and Telemedicine program

Electric Infrastructure Direct Loan Program and the Electric Infrastructure Loan Guarantee Program help finance the construction of electric distribution, transmission, and generation facilities, including system improvements and replacement required to furnish and improve electric service in rural areas, as well as demand side management, energy conservation programs, along with on-grid and off-grid renewable energy systems. I see no reason for this to change. I certainly don't see it as an example of corporate welfare. Explanation is needed

My rating: KEEP/REQUIRES EXPLAINATION

I have other things to do rn. But I will continue this list when I can.

[Lumine]

Certainly some of those programs should be eliminated but yes, this goes (as usual) way too far. I look forward to seeing what can be removed to make it a more viable effort.

[_]

I'm agreeing with Nev on a lot of these, I don't see a need to cut through so many programs that help the Atlasian people.

[Wells]

I am of course hesitant to cut so many things in one fell swoop as anyone should be. And as it has been pointed out that many of these are actually beneficial, I don't support the bill in its current state.

[Lumine]

For the time being, I'll be introducing a motion to table here.

[Mr. Reactionary]

Despite the lack of a second, I will voluntarily table this for now and reintroduce it in a few weeks when hopefully I have the time to post a thorough response. My goal is to try and have the floor clear in time for the main election. 24 hours to assume sponsorship before the bill is tabled.