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Federal government gets failing grade for fiscal transparency and accountability

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From the Fraser Institute

By Jake Fuss and Grady Munro

Last week, Yves Giroux, the Parliamentary Budgetary Officer, raised a rarely-talked-about issue with the federal government—that is, the release of important fiscal documents is being delayed further and further each year. While at first glance this may not seem like a big deal, it’s a sign of declining transparency—an issue all Canadians should care about.

According to Giroux, the Trudeau government’s failure to yet release this year’s federal public accounts—which will report the final numbers for the 2023-24 fiscal year—“goes against fiscal transparency and accountability” that Canadians should expect.

While budgets outline the government’s plan for spending and revenue each year, the public accounts tell us whether or not the government actually stuck to this plan. Typically, the federal government releases the public accounts in October. Yet we’re entering December and last year’s federal finances remain in question.

Provinces also release public accounts, and though they have in the past displayed a similar tardiness, this year every provincial government has released their public accounts well before the federal government.

Why is this important?

Parliamentarians are expected to make important decisions that affect revenues and spending, yet many of them currently do not have the necessary information to make decisions on behalf of their constituents. Moreover, the federal government makes important commitments—referred to as “fiscal anchors”—to help ensure the sustainability of Canada’s finances. The public accounts are a critical tool for both elected officials and the public to hold government accountable to those commitments. Simply put, these fiscal documents are how we determine whether or not the government is actually staying true to its promises.

Some observers claim the Trudeau government may be intentionally delaying the release of this year’s public accounts to avoid this scrutiny. In its 2023 fall update, and again in the 2024 budget, the government promised to hold the 2023-24 deficit to $40.0 billion. Yet a recent report from the PBO suggests the deficit will instead be $46.8 billion. Since the government might be forced to deliver bad news, Giroux suggested it could be delaying the release “to find a more appropriate time where it gathers less attention.” Those are not the actions of a transparent and accountable government.

The issue of delayed fiscal releases is not limited to the public accounts. The Trudeau government has also released federal budgets later than usual. For example, this year it released the 2024 federal budget on April 16. The budget presents the fiscal plan for the upcoming fiscal year that begins April 1, meaning the federal government didn’t release its plan until more than two weeks after the fiscal year had started. In fact, three of the last four budgets from the Trudeau government have been released after the fiscal year started.

Similarly, the Trudeau government has also heretofore failed to release this year’s fall economic statement, which provides a mid-year update on the government’s budget plan. Again, the government has pushed this release later into the year compared to the past. From 2000 to 2014, no fiscal update was released later than November 22. Yet the Trudeau government has delayed the release of this update into December twice so far (in 2019 and 2021).

Canadians should expect their federal government to release important fiscal information in a timely and transparent manner. Unfortunately, transparency and accountability don’t appear high on this government’s list of priorities.

  • Jake Fuss

    Director, Fiscal Studies, Fraser Institute
  • Grady Munro

    Policy Analyst, Fraser Institute

 

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FEMA Quietly Slid $59 Million Out The Door For Illegal Migrants To Put Their Feet Up At ‘Luxury Hotels’: Musk

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From the Daily Caller News Foundation

By Jason Hopkins

“That money is meant for American disaster relief and instead is being spent on high end hotels for illegals!” he continued. “A clawback demand will be made today to recoup those funds.”

The Federal Emergency Management Agency (FEMA) handed out $59 million to “luxury” hotels in New York City to house illegal migrants, Elon Musk said Monday.

Musk — who leads the Department of Government Efficiency (DOGE), a temporary agency within the Trump administration tasked with weeding out frivolous spending by the federal government — said it was  his DOGE team that made the discovery. The top White House official said the payment was in violation of President Donald Trump’s executive order and efforts would be made to recover the funds. 

“The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants,” Musk posted on X. “Sending this money violated the law and is in gross insubordination to the President’s executive order.”

“That money is meant for American disaster relief and instead is being spent on high end hotels for illegals!” he continued. “A clawback demand will be made today to recoup those funds.”

The details around the alleged payout are not completely clear. FEMA did not immediately respond to a request for comment from the Daily Caller News Foundation, nor did a spokesperson for DOGE.

Former White House press secretary Karine Jean-Pierre in October denied the Biden administration was using FEMA funds for migrant accommodations, but in 2022 she suggested that the agency was assisting cities with the migrant crisis.

On his first day back in office, Trump signed an executive order that placed a temporary suspension on refugee resettlement into the United States. The president additionally noted how some major cities, like New York City and Chicago, have requested federal aid to help manage the massive influx of migrants entering their jurisdictions.

The president additionally signed an executive order placing a freeze on federal grants and loans as it conducts a review of the government’s spending, but that order has since been blocked by the courts.

However, New York City officials have a long history of placing illegal migrants into four-star hotels as they’ve struggled to find accommodations for the sheer number of asylum seekers flocking to the Big Apple.

New York City began housing migrants in the four-star Collective Paper Factory hotel around August 2023 after it was reorganized into a Department of Homeless Services emergency shelter. The five-story Collective Paper Factory itself is equipped with a restaurant, a gym, a bar, meeting rooms for guests and communal spaces.

The “chic” Square Hotel was converted into housing for migrants. Other “upscale” hotels in the Big Apple have also been converted into migrant housing in the past as city officials continue to deal with the migrant crisis, including The Row, which has also been described as a “four-star hotel.”

“A 4-star hotel is considered luxury lodging,” according to Kayak, a company that provides hotel booking services. “Guest rooms are noticeably more spacious, with top-quality linens, pillowtop mattresses, bathrobes, slippers, minibars, and upscale toiletries, plus equipped kitchens.”

NYC’s Department of Homeless Services was reportedly seeking a contract with local hotels to provide roughly 14,000 rooms in order to shelter migrants through 2025. City officials anticipated spending on migrants in need of housing for the current fiscal year and the past two years combined will exceed $2.3 billion, with a significant amount of these costs going toward hotel rent.

The Big Apple — a sanctuary city jurisdiction with strict laws restricting cooperation between local law enforcement and Immigration and Customs Enforcement — has become a major destination for the massive number of illegal migrants who’ve flocked into the United States. Roughly 230,000 migrants have arrived in NYC since the spring of 2022, according to data provided by the mayor’s office.

FEMA underwent an internal investigation in November after it was uncovered that a supervisor reportedly instructed disaster relief workers deployed in the aftermath of Hurricane Milton to avoid houses with Trump signs.

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Judge blocks Musk’s Department of Government Efficiency from accessing Treasury records

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From LifeSiteNews

The emergency ruling comes as 15 Soros-installed AGs seek to block Elon Musk and the Department of Government Efficiency (DOGE) from access to information that would reveal how activist groups in blue states have been funded by the U.S. government.

In a stunning and sweeping emergency injunction that has even stunned the people who demanded it, a Manhattan-based district judge has just removed Secretary of Treasury Scott Bessent from his authority over the Treasury Department; blocked any political appointee from accessing records within the Treasury Department; blocked any “special appointee” of President Trump from records within Treasury; and demanded that all information previously extracted be destroyed.

The emergency injunction, signed by District Judge Paul Engelmayer in Manhattan, was determined without any input from the Trump administration and applies until Friday, February 14, 2025, when U.S. District Judge Jeannette A. Vargas will hear the full arguments of the lawsuit.

The emergency ruling comes as a result of 15 (Soros-installed) attorneys general from New Jersey, New York, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, Nevada, Rhode Island, and Vermont all filing suit in New York seeking to block Elon Musk and the Department of Government Efficiency (DOGE) from access to information that would reveal how activist groups in their states have been funded by the U.S. government.

READ: Judge blocks Trump plan that would put thousands of USAID staff on paid leave

From Reuters:

The lawsuit said Musk and his team could disrupt federal funding for health clinics, preschools, climate initiatives, and other programs, and that Republican President Donald Trump could use the information to further his political agenda.

DOGE’s access to the system also ‘poses huge cybersecurity risks that put vast amounts of funding for the States and their residents in peril,’ the state attorneys general said. They sought a temporary restraining order blocking DOGE’s access.

The judge, an appointee of Democratic former President Barack Obama, said the states’ claims were ‘particularly strong’ and warranted him acting on their request for emergency relief pending a further hearing before another judge on February 14.

‘That is both because of the risk that the new policy presents of the disclosure of sensitive and confidential information and the heightened risk that the systems in question will be more vulnerable than before to hacking,’ Engelmayer wrote.

New York Attorney General Letitia James, a Democrat whose office is leading the case, welcomed the ruling, saying nobody was above the law and that Americans across the country had been horrified by the DOGE team’s unfettered access to their data.

‘We knew the Trump administration’s choice to give this access to unauthorized individuals was illegal, and this morning, a federal court agreed,’ James said in a statement.

‘Now, Americans can trust that Musk – the world’s richest man – and his friends will not have free rein over their personal information while our lawsuit proceeds.’

Engelmayer’s order bars access from being granted to Treasury Department payment and data systems by political appointees, special government employees and government employees detailed from an agency outside the Treasury Department.

The judge also directed that anyone prohibited under his order from accessing those systems to immediately destroy anything they copied or downloaded.

The order by the judge is transparent judicial activism; it will almost certainly be overturned and nullified by later rulings. However, it creates blocks and slows down the goal of DOGE and the objective of the Trump administration.

On what basis do states think they can sue the federal government to stop the federal government from auditing federal spending? How can a judge block the executive branch from executing the functions of the executive branch? This lawfare activism is ridiculous.

Within the ruling:

… restrained from granting access to any Treasury Department payment record, payment systems, or any other data systems maintained by the Treasury Department containing personally identifiable information and/or confidential financial information of payees, other than to civil servants with a need for access to perform their job duties within the Bureau of Fiscal Services who have passed all background checks and security clearances and taken all information security training called for in federal statutes and Treasury Department regulations… [Emphasis added.]

So the unelected bureaucracy is in charge and not the secretary of the Treasury?

Reprinted with permission from Conservative Treehouse.

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