On Jan 31, 2010, Sen. Dick Durbin spoke at a press conference held at his residence.  The State Journal-Register (SJ-R) reported that Durbin talked about proposing using nearly $18 billion from the Troubled Asset Relief Program (TARP) funds to avoid the layoff of public servants. Durbin is quoted by the SJ-R as stating the following: 

This will be money that was given to the big banks, paid back to the federal government with interest, which we will now reinvest back into creating jobs for this economy…. I think taking a portion of it to try to revitalize our local economy and create good, paying jobs is money well spent.

Senator Durbin — you have been active in politics for many, many years.  You are currently the Democratic Party Whip, the second-highest position in the Democratic Party leadership in the Senate.  With such an impressive political career, I would expect you to know that TARP funds cannot be used to “create” jobs.

While your intentions are noble -- after all, who in Springfield wouldn’t love to have all public safety/government jobs saved -- I believe that the process used to save those jobs should be legal.  Those who are facing layoffs or who have been laid off are now facing dismal prospects for finding work in this area.  I don’t believe you do them justice by giving them false hope.

TARP  money can’t be spent in the manner you are suggesting, and you should know that.  If you are already aware of the limitations of TARP and you are still convinced of the necessity of giving these kinds of false hopes to your constituents, then I would hope that many would see the shamefulness of the political games being played here.  I do not believe it is right to play on people’s fears in this way.  

TARP – should you not already know -- cannot be used to save jobs in Springfield. Senator Judd Gregg (R-NH) schooled Obama’s Budget Director Peter Orszag earlier this week when he wanted to spend TARP funds on small businesses. 

Here’s the video:

Senator Judd Gregg, one of those who helped craft the TARP legislation, told Peter Orszag, “The monies recouped from the TARP shall be paid into the general fund of the Treasury for the reduction of the public debt.”  The key word here is shall. There is no wiggle room with the word shall. The money paid back from the TARP funds SHALL be applied to the public debt. It doesn’t state that TARP money can be used by Senators to win favorable opinions in local demographics. TARP is not a funding mechanism for politicians.  TARP is not a slush fund. TARP is not a piggy-bank.  TARP is borrowed money that needs to be repayed.

No one wants to lose jobs…not in Springfield, Illinois, not anywhere. If there is a legal way to prevent layoffs in Springfield, I hope you will investigate those options, and especially those that do not increase our already too-large national debt.