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  • Dissecting the House Budget Committee’s 2011 Budget Cuts

    House Budget Committee chairman Paul Ryan (R–WI) has released a fiscal year (FY) 2011 budget target. This target—302 allocation in budgetary parlance—was necessary since the previous congressional Democratic majority failed to pass a 2011 budget resolution or even enact a single 2011 appropriations bill. Instead they passed a continuing resolution (CR) to fund the government, which expires on March 4. Thus, this dereliction of the basic duties of governing required the new Congress to start from scratch.

    The Ryan proposal would cut non-security discretionary spending by $58 billion below the level proposed by President Obama, and when security spending is factored in total discretionary spending, it would be cut by $74 billion.

    With a federal budget deficit projected at $1.5 trillion for this year, spending cuts are essential. After growing consistently over the past decade, non-security discretionary spending alone jumped an additional 25 percent between 2007 and 2010—not even counting the $311 billion in “stimulus” funding these programs received. Given the historic trillion-dollar deficits Washington faces, fiscal reality requires paring back these increases and doing so immediately. So these cuts are welcome.

    However, more needs to be done. For example, this target is well below the $100 billion in cuts the conservative Republican Study Committee (RSC) recently proposed. Ryan’s proposal, thus, could be a vehicle for lawmakers to reduce spending even further. As the appropriations committees work out the details of these allocations, adding additional cuts along the lines the RSC laid out could achieve even further steps on the necessary path to getting the federal spending crisis under control.

    Unfortunately, the House Budget Committee’s allocation for security spending does not provide adequate defense funding levels to meet current national security requirements. Achieving the $74 billion in total discretionary spending cuts from the President’s proposal requires $16 billion in cuts to security, which includes defense. Congress should separately evaluate defense spending on its own merits to determine what is necessary to keep Americans safe.

    Lawmakers should continue to rein in spending by quickly and decisively paring spending back for 2011 and turning next to 2012.

    Posted in Economics [slideshow_deploy]

    10 Responses to Dissecting the House Budget Committee’s 2011 Budget Cuts

    1. GringoBob - Costa Ri says:

      all the "R"s need do is NOT raise the debt ceiling and force Obama and his merry band of no communist left behind to take the fall and need to slash their own budget – and NO, that will NOT cause the sky to fall as taxcheat Geithner likes to claim – simply re-order your priorities and pay the principle-interest on the debt FIRST, not las as you usually do –

    2. OhioHistorian says:

      I am deeply disappointed. Paul Ryan is better than that. I guess we just need to get rid of Boehner and the other old RINOs and show the Congress who is the boss.

    3. Pingback: » Financial News Update – 02/03/11 NoisyRoom.net: The Progressive Hunter

    4. George Colgrove, VA says:

      Reagan said that a trillion dollars represented a stack of $1,000 dollar bills 67 miles high.

      This is hard to imagine.

      When you look at the Washington monument (which is 555 ft 5-1/8 inches high), and using Reagan’s analogy, the Washington monument represents only $1.67 billion. Our current debt of $14.1 billion represents 8,451 Washington Monuments stacked one on top of another.

      Using Reagan’s analogy, we would need two stacks of $2 dollar bills that spans the full distance between the moon and the earth (238,700 miles) to represent the current national debt.

    5. George Colgrove, VA says:

      The feds are covering 40% of their budget using debt, meaning that in FY11 (starting on October 1, 2010) on May7th and beyond, every paycheck a federal employee gets, every entitlement check a recipient gets, every military action, every contractor payout, every PIA advertisement on TV or radio, everything that has to do with the federal government is putting us into debt. This will go on until September 31, 2011 when we will do it all over again!

      For every action, process and procedure this body of self serving goons are doing, we need to ask, is it worth going into debt over? The newly elected republicans were easily folded into the fray. The cost they are proposing are not even a drop in the bucket. We are no closer to getting these goons under control then we were before the election.

    6. George Colgrove, VA says:

      With 40% of the budget covered by debt, why not start with a 15% across the board (everyone gets hit) cut. We can do that now. Let each office figure out what to cut, who to let go and so on.

      The legislation does not need to be complex – just say “beginning on April 1st, 2011 each and every program office, agency, department and so on are required to begin cutting 15% of their workforce and operating expenses by implementing a “make-do” mind set, consolidating, removing redundancy, implementing efficiencies, simplifying processes and procedures and eliminating useless procedures, processes and purchases. This task shall be completed by the close of business on September 30th, 2011. By the close of business at the end of each of the six months, 17% of the cuts is required to be implemented.“

      That will give the feds far more time than is needed to cut themselves. Congress does not need to show favoritism to any particular program – this would be a blanket cut. This will be a reduction of $575 billion from this year’s budget. We will still be going into debt by $925 billion (about 400 billion less than last year.) This is progress. If the nickel and dime cuts can carve off another $75 billion, so much the better!

    7. George Colgrove, VA says:

      Reckless Federal Spending February 2011 update

      From the US Treasury “Monthly Treasury Statement” and from the “Daily Treasury Statement” – Jan 31, 2011 here is the following debt update:

      So far, receipts are up over last year by $9.5 billion ($83 per taxpayer), however based on the rate the feds have collected so far, they may be lower by $54.1 billion for the entire year compared to last year. However, it is still early.

      FY11 Spending to date has increased by $55.5 Billion over last year with spending projected to be $81.6 billion over last year – so far.

      The annual debt thus far has gone up by $476.7 billion (four months). At this rate, the annual debt for the year will be $1.43 trillion – $135.8 billion over last year. So far this year 40% of the federal budget is covered by debt. Last year the overall debt percentage was 37%.

      FY 2011 [Monthly Debt Spending - Billions]

      October [140,432]

      November [150,394]

      December [79,996]

      January [105,836]* subject to change with final Feb MTS.

      Current debt at the Close of Business – January 2011 is $14.078 Trillion ($123,491 per taxpayer)

      The Statutory Debt Limit is $14.294 Trillion (Set on Feb 12, 2010 by the 111 congress)

      Available Credit is $215.5 Billion

      Average monthly debt increases thus far = $120 billion

      By the end of February 2011, the debt will likely be $14.198 Trillion

      By the end of March 2011, the debt will likely be $14.318 Trillion ($24.5 billion over the limit.)

      By the end of September (close of FY11), the debt will likely be $15.031 Trillion ($737 billion over the limit and $131,851 per taxpayer)

      It has been three months since the November Elections let us see what the federal workforce has done to honor the demands of the people.

      Current actions that reduce spending (does not include intent, planned reductions or pending legislation):

      - Obama: Freeze federal employee pay – countered by federal employees giving themselves merit bonuses, merit step increases and in-seat promotions.

      Current actions that reduce the deficit (does not include intent, planned reductions or pending legislation):

      - None -

      Required 2011 (no more debt) Budget for remaining 8 months of FY11:

      (this is an exercise in absurdity)

      Expected Revenue = $2.11 Trillion (based on receipts thus far)

      Spent thus far = $1.18 Trillion (four months)

      Remaining available revenue = $930 Billion

      Mandatory Spending (entitlements) = $251 Billion

      Defense = $113 Billion

      Government Operations and domestic programs = $213 Billion (based on GOP impotent attempt to cut “non-security” government by 31% – yet to be enacted)

      National Debt Interest = $353 Billion (assuming $77 billion has been paid at current rate)

      We are running out of real money.

    8. Bobbie says:

      Thank goodness for Mr. Ryan. Please be practical and reasonable regarding funding that is equally beneficial to all Americans. The safety and security of this country.

      Let the constitution be your guide and deplete everything else.

    9. Pingback: On Those “Draconian” Spending Cuts | The Foundry: Conservative Policy News.

    10. Pingback: On Those “Draconian” Spending Cuts | Step Down Obama

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