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  • House and Senate Cloakroom: April 4 - April 8, 2011

    Analysis provided by Heritage Action for America.

    House Cloakroom: April 4 – April 8, 2011

    Analysis:

    An interesting week in the House of Representatives is brewing as they return to action Monday morning to tackle a variety of issues. The current continuing resolution (CR) expires on April 8th, thus all eyes will be on if a deal will be struck with negotiations between House leadership and Senate Democrats and the White House or a potential shutdown could occur.

    Tuesday evening, a vote is expected on a House Joint Resolution disapproving the rule submitted by the FCC with respect to regulating the internet and broadband industry practices known as net neutrality.

    On Thursday, the House is expected to take up the Energy Tax Prevention Act of 2011. This measure would prohibit the EPA from pursing its climate change agenda for regulating greenhouse gases under the Clean Air Act.

    Major Floor Action:

    • HR 910 – Energy Tax Prevention Act of 2011
    • H.J. Res. 37 – A resolution disapproving the rule submitted by the Federal Communications Commission with respect to regulating the Internet and broadband industry practices.

    Major Committee Action:

    • The House Education & the Workforce will hold a full committee hearing on “Federal Education and Workforce Programs and Government Waste” and another hearing on “Education Flexibility and Innovation”.
    • The House Energy and Commerce Committee will hold a full committee markup hearing on “Defunding Health Care Overhaul”.
    • The House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises will have a markup hearing on “Overhaul of Housing Related Government-Sponsored Enterprises”.
    • The House Natural Resources Subcommittee on Energy and Mineral Resources will hold a hearing on “Offshore Drilling Legislation”.
    • The House Ways and Means Subcommittee on Trade will hold a hearing on the “South Korean Trade Agreement”.

    Senate Cloakroom: April 4 – April 8, 2010

    Analysis:

    In what is beginning to become the norm in Washington, the Senate made very little progress on the Small Business bill last week. There was a bit of a logjam regarding which amendments would be allowed to be brought up on the Floor for a vote, but it looks like that dam burst late last week and there should be more movement on amendments this week, including both the McConnell EPA amendment and a vote on H.R. 4, which repeals the 1099 reporting requirement imposed by the passage of Obamacare a year ago.

    We will also see much discussion from Members this week on the next steps regarding the Continuing Resolution since the current short-term CR expires this Friday.

    Major Floor Action:

    • S. 493: SBIR/STTR Reauthorization Act of 2011

    Major Committee Action:

    Posted in Ongoing Priorities [slideshow_deploy]

    3 Responses to House and Senate Cloakroom: April 4 - April 8, 2011

    1. Pingback: Big Propaganda

    2. George Colgrove VA says:

      Reckless Federal Spending April 2011 peek.

      (This is based on estimates; it is subjected to corrections when the April Monthly Treasury Statement is released.)

      March 2011 will be known for the month the federal workforce drove up America’s national debt by the single largest daily increase of debt of all times – $72 billion, the same day congress voted to cut only $6 billion from the budget. Mind you, the total loss of WorldCom, Enron and Madoff (all investigated and prosecuted by feds) totaled about $40 billion. Yet the feds get away with stealing nearly twice that in ONE DAY from people whose parents have yet to be born. The American people just cannot win against these thugs.

      There is a bright light however, with spending controlled by CR’s, though it is difficult in getting a handle on excessive federal spending, it is showing that the CR’s based on FY10 is making the budget look more like FY10 budget ($3.45 trillion) than the FY11 budget ($3.82 trillion). This lack of fulfilling their duty, has essentially forced congress to cut $370 billion out of the FY11 Budget. Somewhat self-defeating for the federal workforce, but good news for the taxpayer, never-the-less. Sometimes incompetence can be a good thing! We surely we have a very long way to go and these schemers can do a lot of damage in six short months. Kudos to the congress for cutting another $6 billion from the budget in the last CR (total of $10 billion in cuts – $1.590 trillion to go!), and my hopes that the next CR will cut the tabled $61 billion in cuts passes by the house as well. Incompetence and cuts so far could potentially bring the cost of government down by $380 billion. Let us hope congress continues to trip over its self – it is proving to get us in the right direction to reducing the size, scope, and cost of the federal government.

      From the recently released US Treasury “Monthly Treasury Statement” – March, 2011 and from the “Daily Treasury Statement” – March 30, 2011 and the interest summary at http://treasurydirect.gov/govt/reports/ir/ir_expe… here is the following debt update:

      So far, receipts are up over last year by $72.943 billion ($639.85 per taxpayer), however based on the rate the feds have collected so far, they may be lower than last year by $108.074 billion (-5%) for the entire year compared to last year it is still too early to predict for certain.

      FY11 Spending to date has increased by $61.272 Billion from last year with spending now projected to be $8.362 billion higher than last year – so far ($3.464 trillion or $365.69 billion below the FY11 proposed budget. The one time federal incompetence has saved the taxpayer! So far providing funding by CR is a cut in itself as it is keeping the federal workforce to FY10 levels and away from spending at the higher FY11 levels.)

      The annual debt thus far has gone up by $705.319 billion in spending and $229.35 billion in interest (six months). At this rate, the annual debt for the year will likely be $1.82 trillion. So far this year 41% of the federal budget is covered by debt . Last year the overall debt percentage was 37%.

      Incidentally, if one were to take the dedicated tax revenue (roughly 36% of receipts – or $739.32 billion) that goes to social security and Medicaid/Medicare and take that out of both mandatory spending and the total budget, the remaining budget ($2.725 trillion) is being funded by 52% debt ($1.410 trillion). These numbers are based on current spending.

      At 41% debt spending and ignoring the interest expense, the figurative date the federal government runs out of real money during FY11 (Oct. – Sept.) is May 27th. After that date, all paychecks, entitlement checks, contract payments and all other expenditures from the federal government will add to the national debt.

      An example on how fast we are going into debt:

      As of 04-01-2011, we are going into debt by $1.68 Trillion this fiscal year FY11. This is at a rate of $139.87 Billion per month; $32.28 Billion per week; $4.61 Billion per day and $192.13 Million per hour. Every minute we are going into debt by $3.20 Million, and every second we are blowing through what a typical household that is doing comfortably, earns in a year – $53,370.74.

      A four hour congressional hearing to discuss federal budget cuts puts America $768.54 Million deeper in debt, with nothing to see out of it.

      FY 2011 [Monthly Debt spending - millions]

      October [140,432] – (lower by $35,931 from FY10)

      November [150,394] – (more by $30,107 from FY10)

      December [78,134] – (lower by $13,276 from FY10)

      January [49,796] – (more by $7,162 from FY10)

      February [222,500] – (more by $1,591 from FY10)

      March [64,062] – (estimate – less by 1,325 from FY10)

      FY 2011 [Monthly Interest on Debt – millions]

      FY 2010 average monthly interest expense = $34,496 Million ($413.95 Billion annually – paid only $143 billion)

      FY00 – FY10 average has been $31 billion per month or $375 billion annually.

      October [24,142]

      November [19,396]

      December [104,700]

      January [21,123]

      February [21,123]

      March [38,224 estimate]

      Total interest charged in FY11 is $229,345 Billion – paid only $95.422 billion.

      Projected FY 2011 interest expense will be $458.69 Billion – budgeted to pay only $188.78 Billion.

      Current debt at the close of March 2011 is $14.217 Trillion ($124,718.09 per taxpayer)

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

      Available Credit is $76.14 Billion.

      Average monthly debt spending thus far = $139.87 billion. Average interest charge is $38.22 billion.

      By the end of April 2011, the debt will likely be $14.335 trillion at that rate, taking us over the debt limit by $76.14 billion of available debt. By close of business April 21, 2011, we will run out of debt at the current rate of spending.

      By the end of September (close of FY11), the debt will likely be $15.25 trillion (with added interest not paid). This is $0.955 trillion over the debt limit and represents $133,766.89 per active taxpayer (the only people who have “skin in the game”).

      It has been four 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):

      In the 4/4/11 CR there were cuts totaling $4 billion in mostly one time items. The annual budget has yet to be cut significantly.

      In the 4/18/11 CR there were cuts totaling $6 billion in mostly one time items. The annual budget has yet to be cut significantly.

      Required 2011 (no more debt) Budget for remaining 7 months of FY11:

      (This is an exercise in absurdity – provided to give an idea of what a balanced budget would look like)

      Expected Revenue = $2.054 trillion (based on receipts thus far)

      Spent thus far = $1.732 trillion (six months)

      Remaining available revenue = $321.52 Billion

      National Debt Interest = $458.69 billion ($58 billion has been paid back)

      2011 Deficit = $137.17 Billion

      Available debt = $136.06 Billion

      Game over! At this point, we have run out of money! After paying the full interest for the year, we are now in deficit spending zone. Nothing we do will prevent us from going deeper into debt. Congress, even if they wanted to cannot fund the rest of the federal workforce and programs without going into debt. It is a sure bet that congress will be raising the debt ceiling. The federal workforce and congressional Inaction has cost America dearly.

      A debt of $14.2 at an interest rate of 4% and an insufferably slow payoff period of 50 years (3 generations) will require an initial annual interest payment of $566.35 billion with an annual principal payment of $90.90 billion or a total annual payment of $657.24 – or just shy of the current DoD Budget. The total interest we will pay on this debt is $18.66 trillion for a total debt burden of $32.86.

      If we raise the debt ceiling to $15.4 trillion with the same loan criteria, the new debt will require an initial annual interest payment of $614.21 billion with an annual principal payment of $98.58 billion or a total payment of $712.79 – or equal to the current DoD Budget. The total interest we will pay on this debt is $20.24 trillion for a total debt burden of $35.64.

      Paying back this debt will cost three generations the equivalent of a defense department budget. What if they needed that cash for something – emergency, a real war, or whatever. WE STOLE IT FROM THEM! One year of reckless deficit spending will drive up the total federal workforce sponsored debt burden by $2.78 trillion. Just some food for thought.

      Reckless indeed!

    3. Pingback: ~ JUST IN ~ Daily News Digest for Monday, April 4, 2011 | Just Piper

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