Transcript Slide 1

Addressing
Anti-Government
Actions
Valentine’s Day Crisis
February 14, 2011
Gary D. Bass
1742 Connecticut Ave., N.W.
Washington, D.C. 20009
(202) 234-8494
Source: 8/6/10 at http://calculatedriskimages.blogspot.com/2010/08/employment-recessions-july-2010.html
Source: OMB Watch, based on Dept of Labor data
House FY 11 Continuing Resolution:
Comparison to FY 10 Enacted
In Millions of Dollars
$10,000
$0
($10,000)
($20,000)
($30,000)
($40,000)
($50,000)
($60,000)
($70,000)
Non-Security
Discretionary
Spending
Cut
$65.5 Billion
or
-14.2%
Security
Spending
Increased
$4.7 Billion or
+0.7%
Bye Bye, Big Bird. Hello, E. Coli.
Examples of House Budget Cuts
•
Meat and Poultry Inspections
CUT: $88 million
– IMPACT: Furloughing federal inspectors, requiring plants to shut down for 6 to 9
weeks. RESULT: Loss of $11 billion in economic activity
•
FDA
CUT: $241 million
– IMPACT: Furloughing &/or RIFs of hundreds of workers including those
inspecting domestic & foreign foods; also reductions in food and medical
products coming in from overseas
•
Cops & Law Enforcement
CUT: $1.3 billion
– IMPACT: Eliminates the COPS (community policing) hiring program; 5,200 fewer
criminal justice jobs
•
Head Start
CUT: $1.1 billion
– IMPACT: More than 200,000 children kicked out of Head Start; thousands of
Head Start teacher out of work; cuts to research, training and technical
assistance
•
Homeless Veterans
CUT: $75 million
– IMPACT: Eliminates housing vouchers; 10,000 given out last year; there are an
estimated 75,000 homeless veterans many from Iraq and Afghanistan wars –
many battling drug and PTSD issues
•
Pell Grants for College Students
CUT: Freezes Funding
– IMPACT: Maximum grant to be reduced by more than $800 per student because
of growth in number of eligible students & levels of financial need.
•
AmeriCorps & Corp for Public Broadcasting
CUT: Eliminated
“When you have this meat ax,
it just doesn’t work.”
Senate Majority Leader Harry Reid’s (D-NV) reaction to House spending cuts
• IDEA Grants to States
• Title VI-B State Grants: Supported Employment
• Section 811 Supportive Housing for Persons
with Disabilities
• Projects with Industry
• Recordings for Blind & Dyslexic
• Special Olympics
• Community Health Centers
• Maternal & Child Health Block Grant
• LIHEAP
• Community Services Block Grant
• Child Care Development Block Grant
• Section 202 Housing for Elderly
• Public Housing funds
• Employment & Training State Grants
$558 million
$29 million
$210 million
$19 million
$13 million
$8 million
$1,000 million
$50 million
$390.3 million
$341 million
$39 million
$551 million
$1,221 million
$1,397 million
Baby Boomers Come of Age:
Deficit Explodes
Surplus (+)/Deficit(-) as Percent of GDP, 2000 - 2050
5
Surplus
Source: GAO, Alternative Assumptions, 2010
0
Deficit
Percent of GDP
-5
-10
-15
2010 Budget
Policy Extended
-20
-25
-30
-35
2000
2010
2020
2030
2040
2050
Under Continuation of Current Policies
Debt Will Exceed 300 Percent of GDP in 2050
Source: Center on Budget & Policy Priorities calculations based on CBO data .
What’s Causing Deficits?
Health Care Costs
Federal Spending and Revenue, 2010 - 2050
60
% of GDP
40
Revenue
30
20
10
0
2010
2020
2030
Social Security
Health Care
All other spending
Revenue
2050
Net Interest
Source: GAO, Alternative Assumptions, 2010
50
Attack on Federal Regulations
• Regulations as “job killers”
• Rep. Darrell Issa’s more than 170 letters to
companies and trade associations to identify
rules to kill or modify
• This week 7 House hearings; last week 4
hearings
• More than 9 hours House floor discussion
about regulations impact on job creation
• REINS Act
Starve the Beast
“I don’t want to abolish government. I
simply want to reduce it to the size where I
can drag it into the bathroom and drown it in
the bathtub.”
Grover Norquist, Americans for Tax Reform
June 25, 2003
The president will find the new Republic
majority in the House “standing on principle,
checking Washington's power and leading
the drive for a smaller, less costly, and more
accountable government.”
John Boehner, expected Speaker of the House
after November 2010 elections
“When I give food to
the poor, they call me
a saint. When I ask
why the poor have no
food, they call me a
communist.”
- Helder Camara, Archbishop of Olinda
and Recife, Brazil (1909-1999)
A Proposed Agenda
• More Revenue
• Smart Entitlement Reform
• Protect Human Needs Discretionary
Programs
• Stop Attacks on Federal Regulations
Passing
the ADA
Passing
Rosa’s Law
Passing
Affordable
Care Act