Transcript Welcome Delegates

Federal Budget Problems
Economic Woes
National debt = $16 trillion +
US Budget Deficit = $1.2 trillion
National unemployment rate 7.9%
Unemployment in some Alaska
villages over 60% in winter
Stock market very volatile
Where do Federal Tax Dollars Go?
FY 2013 Proposed Outlays
Other
17.5%
Medicare
13.8%
National Defense
18.2%
Medicaid
7.4%
Mandatory
Discretionary
BIA
0.07%
IHS
0.12%
Non-Defense
14.8%
Social Security
21.6%
Net Interest
6.5%
Non-Defense, Discretionary portion of budget very small!
Budget Control Act of 2011
1. Increased debt limit into 2013 in two stages enabling
payment for existing commitments
2. Cut discretionary spending by $917 B over 10 years
3. Established a bipartisan, bicameral committee to
identify additional $1.5 trillion or more in deficit
reduction by November 23. House and Senate to vote
by December 23 without amendment or filibuster.
4. Balanced Budget Amendment to Constitution to be
considered separately.
5
WHAT CONTRIBUTES TO
DEFICIT SPENDING &
NATIONAL DEBT?
Sources of Federal Deficits 2009-2019
Legislation Adding to Deficits:
Mostly Tax Cuts & Defense
Cost in 2005 of legislation enacted since January 2001
Domestic
Discretionary
(except
Homeland
Security), 7%
Entitlements,
8%
Tax Cuts, 48%
Defense,
Homeland
Security, and
International,
37%
Source: CBPP calculations from Congressional Budget Office data. Reflects costs above an
adjusted CBO current services baseline.
Center on Budget and Policy Priorities; last revised Feb. 3, 2005.
9
Budget Control Act: Discretionary Cuts Less
Severe than Ryan Budget Cuts
Income Gains Have been Concentrated at the Top
Income Growth has been Very Uneven Recently
cbpp.org
7/20/2015
11
THE MOST EXPENSIVE
MYTH:
Tax breaks for the rich will stimulate
the economy!
Dow Jones Index
1990
95
Clinton
years
2000
2005
Bush Tax
Cuts
2010
Obama
Elected
Letting Tax Cuts Expire Would Stabilize
Debt Over Next Decade
Tax Breaks Impact on
Unemployment Rates
Rate at January of Each Year
12
Tax
Breaks
10
8
6
Rate
4
2
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Coming Fiscal Cliff (Crisis)
1/2/13 - Automatic across-the-board cuts will kick in:
– The “Sequester”
– Defense and non-defense programs
12/31/2012 - The 2001/2003/2010 tax cuts expire
12/31/2012 - Expiration of Unemployment Insurance
If Congress does nothing, it could spark
another recession
– Would dramatically increase pressure on programs
to our needy!
SEQUESTRATION
Various Options Being Considered
Accepting the deal reached in the Budget
Control Act of 2011
Modifying the Budget Control Act only to
protect the defense
House Republican leadership’s budget
proposal to replace the sequester
The President’s budget proposal to replace the
sequester
Non-Defense Discretionary Spending
3.6%
3.4%
Lowest Level since
1970
3.2%
3.0%
CBO Jan 2011 NDD
Projections
% of GDP
2.8%
2.6%
2.4%
BCA Caps/Obama/
Domenici-Rivlin
2.2%
Bowles-Simpson
2.0%
BCA with Sequester
1.8%
1.6%
Chairman Ryan's
Budget
1.4%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Ryan Budget: two-thirds of cuts from programs
for low- and moderate-income people
Source: “The Path to Prosperity” FY2012 Budget Resolution
20
Chairman Ryan Plan
 Chairman Paul Ryan’s plan gets nearly twothirds of its $4.5 trillion in budget cuts over 10
years from programs for the needy
 $2.17 trillion in reductions from Medicaid and
related health care.
 $350 billion in cuts in mandatory programs serving
low-income Americans (other than Medicaid).
 $400 billion in cuts in low-income discretionary
programs.
CBO Report: Ryan Plan Would Nearly End
Most of Government Other Than Social
Security, Health Care, and Defense by 2050
• Plan would shrink federal spending to 20 % of Gross
Domestic Product (GDP) by 2015 and to 14.75 % of
GDP by 2050
• The lowest level since 1951, a time when Medicare
and Medicaid did not exist.
Center on Budget and Policy Priorities; last revised Feb. 3, 2004
Domestic Discretionary Funding Is a
Shrinking Share of Total Program Costs
Share of Total
2001
2008
Change
Defense & security
21.7%
29.2%
+7.5%
Social Security, Medicare/caid
45.9%
43.5%
-2.4%
Other mandatory programs
14.0%
12.5%
-1.4%
Domestic discretionary
18.4%
14.7%
-3.7%
Total program costs
100%
100%
0.0%
Notes: Figures may not add due to rounding. The defense/security figures also include veterans, homeland
security, and international affairs. Medicare is net of premiums. Figures for 2008 are CBO’s January estimate plus
supplemental discretionary funding requested by President Bush. Totals exclude net interest.
Center on Budget and Policy Priorities; last revised Feb. 3, 2004
Domestic Discretionary Funding Has Been Growing More Slowly Than Any Other
Set of Programs
(Average annual rate of growth, from 2001 through 2008)
nominal
real
real per person
Defense & security
12.0%
9.1%
8.1%
Social Security, Medicare/caid
6.5%
3.8%
2.8%
Other mandatory programs
5.7%
3.0%
2.0%
Domestic discretionary
4.0%
1.3%
0.3%
Average, all program costs
7.3%
4.6%
3.6%
Center on Budget and Policy Priorities; last revised Feb. 3, 2004
Sequester Impact
Lack of Super Committee agreement last fall
led to across the board spending cuts,
“Sequestration.” 8.2% Cut.
Sequestration means all deficit reduction is
from spending.
Non-Defense Discretionary budgets are
already cut deeply through 10 year spending
caps.
Impacts on Specific Indian Programs
Across the Board cuts will be worse than 8.2%
compared to FY10:
– Due to recent year reductions…
– Indian Housing Block Grant -21%
– Indian Student Education, -13%
– Tribal Community Oriented Policing Grants -25%
– BIA, Operation of Indian Programs - 14%
– Indian Health Service is subjected to the higher
8.2% cut, not the 2% special rule that the CRS
reported in August.
NATIVE AMERICAN PROGRAMS
IN THE DEPARTMENT OF THE
INTERIOR
Since 1980 Native American
programs have lost ground to
inflation while per capita spending
has gone up for other citizens
Overall Per Capita Vs.
Indian Per Capita
Relative Budget Change From 1975 (inflation adjusted)
80%
Overall U.S. Per Capita Expenditure
Indian Per Capita Expenditure
60%
40%
20%
0%
-20%
-40%
2001
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
19
77
19
75
-60%
When Congress has approved
increases to the BIA budgets those
increases went to Central Office
administration
BIA 2002 to 2008
1
2
2002
Tribal Priority
Allocation
Other
Recurring
Non-Recurring
Central Office
Ops
4
3
5
Inflation
Change
2008
-$57,662
$694,534
-7.7%
$586,968 $433,454
$1,020,422
73.8%
-$
$
-%
$58,106 $116,954
$175,060
201.3%
$752,156
$72,798
16%
Regional
Office Ops
$62,679
-$18,182
$44,497
-29%
Special
Programs
$267,102
-$91,414
$223,467
-33.7%
BUDGET INCREASES: 6 LARGEST INTERIOR AGENCY
FY2004 TO FY2012
8%
Indian Affairs
Roads
Land Management
Geo Survey
Park Service
30%
Fish Wildlife
0
5
10
15
20
25
30
BUDGET INCREASES (DECREASES): 6 LARGEST INTERIOR AGENCIES
FY2012 PRESIDENT’S REQUEST VS. FY 2010 ENACTED LEVEL
$200
$150
+ $140 million
Millions
$100
$50
$0
($50)
($100)
- $120 million
($150)
NPS
FWS
USGS
BLM
BOR
BIA
Widening Class Disparities
The rich have never been richer
42 million Americans live in poverty
– 1 out of every 6
– 15.6 % of all Americans
– 22% of all children
– The highest rate of poverty since 1993
Countries Where Rich Are
Too Rich and Poor Too Poor
Libya
Egypt
Syria
Mexico
I wonder why there is so much
political unrest in these countries!
Thank You for Your Kind Attention!
Gunalcheesh!
Howa!
MY NAME IS ED THOMAS
And I Approved This Message!
How a Bill Becomes Law
As
Introduced
As enacted
As
amended in
committee
As funded
by joint
committee
As amended
on the second
reading
As implemented
by state agencies
As reported
by the media
As
understood
by the Public
What was
actually
needed!