In order to avert a fiscal crisis and ensure that future state employees have dependable retirement savings, New Jersey should follow the lead of the federal government and the private sector and move from defined benefit pensions to defined contribution pensions.

This paper assesses the quality and use of regulatory analysis for economically significant regulations produced by federal agencies in 2008. A nine-member research team used a six-point (0-5) scale to evaluate regulatory analyses according to criteria drawn from Executive Order 12866 on Regulatory Planning and Review, Office of Management and Budget Circular A-4 on Regulatory Analysis, and scholarly research.

Consumers’ out-of pocket spending on healthcare has decreased steadily as a percentage of the United States’ overall healthcare spending since the passage of Medicare in 1965 from its peak of 43% in 1965.

The federal government’s deficit will reach $1.4 trillion this year—a whopping 10 percent of Gross Domestic Product (GDP)—and the total federal debt stands at almost $14 trillion. That’s $40,000 for every citizen of the United States. The U.S. fiscal picture is shaping up to be a category 3 hurricane of red ink. Unless Congress takes action immediately to reduce the deficit, the deficit will inflict devastating damage on our economy.

After a seven-year hiatus, the statutory "pay-as-you-go" (PAYGO) federal spending rule is once again the law of the land. Numerous policy makers have touted its benefits while emphasizing their renewed commitment to fiscal responsibility. President Obama recently described PAYGO as a very simple restraint: "Congress can only spend a dollar if it saves a dollar elsewhere."

In this testimony, Richard Williams, Director of Regulatory Studies and Government Accountability at the Mercatus Center, addresses the key question of whether there are sufficient checks and balances on federal regulatory agencies. He recommends that 1) all aspects of regulations should be evidence-based, 2) that OIRA analysts should be focused on their role as quality control officers, and 3) that an examination should be made to determine the extent to which too many regulations result in organizational issues that adversely affect the underlying goals regulations are intended to address.

As always, OMB has produced a very thorough report based on the instructions provided in the Regulatory-Right-to Know Act. Nevertheless, it is time to re-examine this report to see if it can be made more useful for those responsible for the regulatory state.