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Former BB&T CEO John Allison and Taxpayers for Common Sense V.P. Steve Ellis on how federal and state governments should plan financially for emer...
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Big Cassandra this my friends of the -- -- wheel gets the grease always has been always will be.
But something about calling an emergency every other week to get more -- well.
I don't -- to me it just seems greasy and my next guests are fearing that it's gonna get Greece here.
We've got what is now a former top banker John Allison government -- -- Steve Ellis Steve what do you negatives using an -- -- To make a point for more cash.
Well as the way that they can actually get free money -- if you know if you're governor how much better to get the federal taxpayer to pick up the cost rather than actually having to.
Did have your own constituents pay this money it's free money you started to walk around a hand -- the cash and so.
It's something that every governor wants to do is that declared disaster of some sort.
Or a major health emergency in gets free cash.
Well it -- a day after a -- look John like to -- cried wolf I -- only so many times you can do before people start saying again.
The only difference here is every time the kid doesn't we have to give a lot of money billions.
It's a classic example pork barrel.
In his work a lot of the years.
You know there is.
A solution to this problem and that would be -- for people actually planted by chance for examples that the government's could have an emergency fund like individuals have.
Business that has been in all their money every year they can be prepared partly for their bird business.
And it and the federal government could plan in advance the -- in fact disasters do happen every year.
And they can set up a fund for disasters and they can set up the rules which would be -- To handle disasters so that all this emotion -- she gets described couldn't be used to manipulate congress to take a lot of money from people.
That.
Have earned it to give to people that yes had a problem but -- but got a lot more than the actual the actual calls of the brawl.
Well you know words are these -- -- is that I know that did that sandy was different and and and most severe storm and certainly for the northeast.
Completely out of the norm maybe even -- century -- So I'm not here today whether they needed special funding for that how they came up with a sixty billion dollars that was Steve.
Exit bigger question whether the governors in part just handed that figure and then Washington any insults it is -- and agony here.
Bomb also provided for the for their friends and and their cronies.
Under the guise of of helping people in the well I absolutely -- I mean what are the issues so it's striking to me that surely after -- that are coming out to with figures that are going to several decimal points and exactly what they need.
And clearly we we don't we don't really know nobody knows exactly what the right amount is.
And so what we've always advocated for is let's start here early and incrementally.
So instead of of one big sixty billion dollar.
Cash infusion.
That in the present -- get around to requesting until December 7.
Why don't we start with a smaller amounts and then figure out what else we need and then go incrementally we actually did that with Katrina we spent we did several different bills over several different years trying to to recover there.
And the only thing -- note is that.
There does seem to be this proliferation of major disasters if you look at that this theme is major disaster declaration unemployment does not -- to -- when you prepare -- What what it is certainly you prepare form but it's also the fact that.
People are asking for more more of these you know so.
If you look at from the late fifties until the mid ninety's there were only three years that thirty or more states had major -- disaster declarations.
And 34 was the high number since 96.
Every single year more than 35 states that had major disaster declarations.
We don't Johnny has withdrawals in the latest fluke thing I've -- might very well be an epidemic the numbers -- higher from a lot of on the health experts don't don't.
Confirmed that.
But I guess we've learned there's a method to the Watson -- money madness and getting money from Watson and declare an emergency say things in this environment now way out of control.
Beyond your State's coffers abilities to deal when it so you have to -- You have to say its emergency to get -- -- -- and and this is the same song we keep repeating that's what worries.
Well we've created a first incentive obviously it is an easy way for a -- to justify getting money.
And and they usually of course they asked for way way more than problem is that this is -- classic problem and insurance companies have to deal with.
You know somebody has a car -- may damage their -- they -- -- -- car and insurance companies however have a profit auditor motive to discipline that behavior.
Hearsay a lot of got to get a whole new budget for the year credit they've already got all of the budget and goods that it wanted to be longer so I think guys we just only police their money so -- to that point whether.
We police there requests enough and then once we do.
Whether we're making sure that congress doesn't add to that.
What do you do.
Well I think we have to set up a process in advance because this is the classic case where under the heat of battle we're really are bad stories like around saying the it's tough for congress to discipline itself how many just saw live.
You look at those of you don't you look in different -- Governor Christie -- -- about then you're just trying to make product.
That the monies are wasted and you look like you know a robot.
Won't you do that's why you have to have us a process.
So Steve why -- way and that part of this process to go back at a governor Chris I admire him greatly say -- you -- so wrong on this it makes my -- Started so you're -- is at a controlled you know governor I know it.
You know that your residence in your state aren't gonna get his money because it's gonna bypass you to pay -- -- at the Smithsonian.
Suggests you know a new rules put in and end -- -- -- and -- governors are your people.
Yeah absolutely -- and and and you know there is some process and -- there's a disaster relief fund isn't available immediately for funding and billions of dollars went out immediately.
And then it's really about making sure that were always funding the most important -- most critical needs.
And so what you which you look at it once you start adding in all this extra stuff.
That's when you invite controversy that's what delays the process and so while.
Congress is trying to -- -- their nest and a lot of places it's actually delaying didn't need the actual aid getting to the sandy victims and if you look at it.
For instance they put in billions of dollars for Army Corps of Engineers.
Construction they put in 3.4 billion dollars for Army Corps of Engineers construction projects in the sandy related area.
That's more than twice the amount that the army corps gets for construction projects.
Across the country in a year.
But there is an example but John real quickly this latest thing with the so called flu emergency by the numbers he's requesting.
This would have to be like something out of a movie outbreak.
It is so just reports it -- of the that this that the problem on the ground it's insulting to people even have a flow on -- I'd agree with that plus -- mean.
That's such a nebulous problem and if it if it really is a flu epidemic is going to be national flu -- -- through it all over the country so it's a national emergency if there is one that.
All right guys are reflective of clarifying this but there is a -- to -- man has -- what they do is they just you know Hutchinson it is tells -- -- say it's really really bad.
And that's the way they get money.
