Acting IG for Homeland Security

 

Read the Minicase: Acting IG for Homeland Security–Too Close to the Department (page 328 of your textbook). Then, prepare an executive report, of not more than 2.5 pages APA standardized to 2-line spacing, minimum three references, in which you describe the main concepts, and what your proposals are to avoid such issues.

 

Minicase: Acting IG for Homeland Security–Too Close to the Department The acting IG for Homeland Security, Charles K. Edwards, stepped down, after a congressional investigation of charges of nepotism, misuse of office, and an overly close relationship with the administration. 1 He was charged with delaying investigations and altering reports to protect the administration. The investigation began because Edwards reportedly withheld information and soft-pedaled the incident in which the president’s security detail dallied with prostitutes in Colombia. According to a report by a congressional oversight committee, he shared drinks and dinners “with department leaders and gave them inside information about the timing and findings of investigations.” He was charged with accepting guidance from the political advisers of the department head on the wording and timing of three reports. Reportedly, he asked the secretary’s advisers how he should respond to questions at a hearing. Committee officials concluded that because he was actively seeking the permanent appointment, he was not engaging in real oversight.

 

QUESTION 2
Please, read the Minicase: Balance in the Federal Highway Trust Fund (page 239 of your textbook). Then, prepare an executive report, of not more than 2.5 pages APA standardized to 2-line spacing, minimum three references, in which you describe the main concepts, and what your proposals are to avoid such issues.

Minicase: Balance in the Federal Highway Trust Fund The national level Highway Trust Fund is an account based on gas taxes primarily for building and repairing the nation’s highways. When projects are finished, the states bill the federal government for reimbursement from the Highway Trust Fund. Revenues have to be greater than obligations, not just greater than outlays, because the states are running up bills that they have not yet submitted for reimbursement. By next year, there should be more money in the fund to pay off the bills that are being incurred now but that will not be presented until next year or the year after. So how can anyone tell if the trust fund is really balanced at any time? How can Congress or the president ensure that the states do not spend more money than the fund can expect to receive? And if there is a surplus, how does anyone know how much it is? When money is committed by the states, it shows up in the trust fund as obligated but not yet spent. So the total in the fund remains high, although much of the money is already committed and cannot be spent on anything else. The result of not subtracting this committed money from the trust fund total is to make the balance in the fund look greater than it really is. This can help to make the federal budget as a whole look balanced, if the “surplus” in the Highway Trust Fund is counted as part of the consolidated balance of the federal government. But the result is misleading. Attributing future expenses to the present year’s budget is equally misleading, as matching several years’ expenditures against a single year’s revenue would normally result in deficits for that fund. To avoid this problem, Congress, through the Byrd Amendment to the Federal-Aid Highway Act of 1956, restricted the growth of future commitments to a level not to exceed the current year’s unexpended balance plus projected income for the following two fiscal years. 1

Sample Solution

The Federal Highway Trust Fund (HTF) is a fund that is used to finance highway projects in the United States. The HTF is funded by a variety of sources, including gasoline taxes, diesel fuel taxes, and vehicle registration fees.

In recent years, the HTF has been facing a financial crisis. The fund has been running a deficit, and the balance has been declining. This is due to a number of factors, including the decrease in gasoline consumption, the increase in fuel efficiency, and the aging of the highway infrastructure.

This executive report discusses the main concepts of the HTF balance and proposes solutions to avoid such issues.

Main Concepts

The HTF is a trust fund that is funded by a variety of sources, including gasoline taxes, diesel fuel taxes, and vehicle registration fees. The HTF is used to finance highway projects in the United States.

The HTF is a self-financing fund. This means that the money that is collected from the various sources is used to pay for highway projects. The HTF does not receive any money from the general fund of the U.S. Treasury.

The HTF has been facing a financial crisis in recent years. The fund has been running a deficit, and the balance has been declining. This is due to a number of factors, including the decrease in gasoline consumption, the increase in fuel efficiency, and the aging of the highway infrastructure.

Solutions

There are a number of solutions that have been proposed to address the financial crisis of the HTF. These solutions include:

  • Increasing the gasoline tax
  • Increasing the diesel fuel tax
  • Increasing the vehicle registration fee
  • Using general fund money to supplement the HTF
  • Investing in alternative fuels
  • Reducing the cost of highway construction

Conclusion

The HTF is a vital part of the U.S. transportation system. The fund is facing a financial crisis, and it is important to address this issue. There are a number of solutions that have been proposed, and it is important to consider all of the options.

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