Debt Limit

The debt limit is a figure of money that the legislative body of the government authorizes to be borrowed in order to meet existing financial obligations. These obligations can include: military, social security, interest on the debt, Medicare, tax refunds, and other governmental expenses (United States Treasury, 2014).  When the government cannot pay for its existing financial obligations with its current authorized limit, Congress can be asked to raise it. An article from CNBC reports that the debt limit has been raised on various occasions in order to avoid a default on debt (Koba, 2013). To be specific, since 1960 it has been raised 78 times; 49 times under republicans holding office and 29 times under democrats (Koba, 2013). Yet, this was not always the case. Prior to the Second Liberty Bond Act of 1917, Congress had to authorize each individual item; but with WWI on the horizon the act was passed in order to better manage the war (Koba, 2013). The debt ceiling was thus created to allow the government to fund involvement with the war, but still have a cap that would be respected.

Watch: http://www.youtube.com/watch?v=KIbkoop4AYE

References:

Koba, M. (2013, October 8). Debt Ceiling: CNBC Explains. Retrieved from CNBC: www.cnbc.com/id/101047518

United States Treasury. (2014, March 29). Debt Limit. Retrieved from US Department of the Treasury: www. treasury.gov/initiatives/pages/debtlimit.aspx

Governance, as defined in the United Nations Economic and Social Commission for Asia and the Pacific, is, “the process of decision-making and the process by which decisions are implemented (or not implemented) (Sheng).” It is important to understand that the government is not the only entity responsible for governance. Business organizations, civil associations, religious institutions, unions, financial institutions, military, etc. all contribute to governance of a population (Sheng). Good governance is characterized by 8 major characteristics; which include: it is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law.

            With this guideline for what constitutes good governance we can apply it to state and local level of government. Participation is exemplified by local and state elections. Voters, regardless of social class can take part in this process and have their voiced heard. State constitutions take care of the “Rule of Law” characteristic. They enact executive, legislative, and judicial branches of government that counteract and balance one another to have a fair system. State constitutions also incorporate the Bill of Rights that give citizens protection from unwarranted government interference as well. The transparency and responsiveness characteristics are also found in state constitutions. In South Carolina, the freedom of information section is found in Title 30 of the constitution. At the local level an example can be going to a police department and asking for a police report. In regards to responsiveness, citizens have the right to expect emergency services, and when facing criminal charges, the right to a speedy trial.

            As Mr. Sheng explained in the United Nations document, in governance there are many individuals with many ideas. Consolidating these ideas into broader ones is what explains the consensus oriented characteristic. Elections are a prime example. Voters elect candidates that best serve their interest; either at the local or state level. Equity and exclusiveness is characterized by voting rights and civil rights. Also, responsible use of tax revenue I feel would fall in this category. Effectiveness and efficiency can be seen by responsible use of resources within a jurisdiction. States typically have some form of agency that takes care of its natural resources and educates its citizens on how to take care of them. Finally, accountability can be seen at the local and state level when citizens urge the government for officials to step down. Transparency plays a part in this, because states can have documents available for the populous to view reports that document the actions of local and state government.

References

Sheng, Y. K. (n.d.). What is Good Governance? Retrieved from www.unescap.org/sites/default/files/good-governance.pdf

I chose to look up a town meeting of Anderson, South Carolina. The date of this town meeting was February 10, 2014. The meeting first starts out with a prayer lead by a the Mayor of Anderson and then the Pledge of Allegiance is said. During this meeting, a lifelong firefighter is being honored for his 27 years of services and is given a plaque to commemorate his accomplishments. Another firefighter was also awarded for his services; he received a Lifesaving Award for helping keep alive a man that had suffered a gunshot wound.

 Following this, the town council went on to review a few items that had previously been brought up. The first was a request of reconsideration of a city ordinance to rezone a property near Anderson University to make it a multi-family residential rather than a single family. The request was passed unanimously. The second item that was addressed also dealt with rezoning a property from limited office to neighborhood commercial. There was one issue that was raised by a citizen. The citizen was concerned about the parking in the proposed area because of the high traffic are that is there; he would also like to see the plans in order to feel better about the issue.  

The second issue was the approval or denial of a contract with Carolina Clear in order to abide by new regulations set up by the federal Clean Water Act where the city had to set up a public awareness and education program. This act was passed by split decision (5-3). The ones opposed did not feel comfortable about spending $15,000 a year when it was possible to do it in-house. They also argued that why go above and beyond following the regulations when they can just get by, still follow the rules, and save money. Those that supported it felt that going along with the contract would save money in the long run. Another item dealt with was with an ordinance that allowed citizens to keep chickens in coops within city limits. The city manager recommended approving the removal of a section that would require the council to keep voting on the section each year. 

The final item that was heard by the town council was about a contract about a storm water line in order to improve drainage and reduce sinkholes. Some questions that were raised by some council members were the lifetime of the new piping. Another question that was raised was why the area of the new storm water line preceded other areas that were worst off and needed priority. The city manager responded that area in question was not a low budget project, but would be addressed when possible.


Youtube addresss of video: http://www.youtube.com/watch?v=qeRvAzLlOAs 

This week’s reading assignment pertained to initiatives aimed at helping rural America. Dr. Bruce Ransom from Clemson University explains that since the 1950’s urban America has been the focus of attention in terms of creating opportunities for the populous, while rural communities have been left in the dark (Ransom, 1998). These communities do not receive the same help and are prone to get hit hard by various factors which include: a decline in population, jobs and tax bases (Ransom, 1998). The federal Empowerment Zones and Enterprise Communities program is designed to help communities set up a framework of plans that can help mitigate these factors and help improve the quality of life for the communities. A community must come up and implement a “broad-based community strategic planning process” in order to receive funds from the federal government.  The idea behind this plan is that helping the community fight unemployment, poverty, and eroding economies will increase the general welfare of the community (Ransom, 1998). I think that this is a great program that can have a positive outcome if it is implemented well and funds are allocated appropriately. It’s great to see the federal government has an interest in helping rural areas as opposed to concentrating all help to urban areas.

References

Ransom, B. (1998). Planning For Development In Rural Areas: An Assessment Of The Strategic Plans For South Carolina's Enterprise And Champion Communities. Clemson: Strom Thurmond Institute.