DamianTV
04-15-2011, 06:38 PM
http://news.yahoo.com/s/yblog_exclusive/20110414/pl_yblog_exclusive/why-38-5b-budget-deal-will-only-cut-spending-by-352m%3B_ylt%3DAlxzEAq9TC2DJI2xZqOYHr6s0NUE%3B_ylu% 3DX3oDMTNmMzEyN2pnBGFzc2V0A2FwLzIwMTEwNDE0L3VzX3Nw ZW5kaW5nX3Nob3dkb3duBGNjb2RlA21vc3Rwb3B1bGFyBGNwb3 MDMQRwb3MDNQRwdANob21lX2Nva2UEc2VjA3luX3RvcF9zdG9y eQRzbGsDcmVsYXRlZA--
Why $38.5B budget deal will only cut spending by $352M
A Congressional Budget Office analysis of the fiscal 2011 spending deal that Congress passed Thursday concludes that it would cut spending this year by less than one-one hundredth of what both Republicans or Democrats have claimed.
A comparison prepared by the CBO shows that the omnibus spending bill, advertised as containing some $38.5 billion in cuts, will only reduce federal outlays by $352 million below 2010 spending rates. The nonpartisan budget agency also projects that total outlays are actually some $3.3 billion more than in 2010, if emergency spending is included in the total.
Some conservatives already opposed the deal for not going far enough to meet the GOP campaign pledges to cut $100 billion. The minimal effect on current government spending, however, could improve macroeconomic forecasts that predicted lower economic growth if government spending was drastically reduced.
"This bill will cut $315 billion in Washington spending over 10 years, $78 billion compared with the President's request this year alone," said Michael Steel, spokesman for House Speaker John Boehner, R-Ohio. "Democratic spin and arcane budget jargon doesn't change that."
The CBO did confirm that budget authority would remain $78.5 billion below what President Obama requested in his fiscal 2011 budget request, and Republicans can point to long-term savings as a result of lowering the government's spending baseline, including some $40 billion from cuts to Pell Grants.
"It is kind of crazy to have come to the brink of shutting down the government over a $350 million difference," said Scott Lilly, a former staff director at the Appropriations Committee under Chairman David Obey, D-Wis.
Why $38.5B budget deal will only cut spending by $352M
A Congressional Budget Office analysis of the fiscal 2011 spending deal that Congress passed Thursday concludes that it would cut spending this year by less than one-one hundredth of what both Republicans or Democrats have claimed.
A comparison prepared by the CBO shows that the omnibus spending bill, advertised as containing some $38.5 billion in cuts, will only reduce federal outlays by $352 million below 2010 spending rates. The nonpartisan budget agency also projects that total outlays are actually some $3.3 billion more than in 2010, if emergency spending is included in the total.
Some conservatives already opposed the deal for not going far enough to meet the GOP campaign pledges to cut $100 billion. The minimal effect on current government spending, however, could improve macroeconomic forecasts that predicted lower economic growth if government spending was drastically reduced.
"This bill will cut $315 billion in Washington spending over 10 years, $78 billion compared with the President's request this year alone," said Michael Steel, spokesman for House Speaker John Boehner, R-Ohio. "Democratic spin and arcane budget jargon doesn't change that."
The CBO did confirm that budget authority would remain $78.5 billion below what President Obama requested in his fiscal 2011 budget request, and Republicans can point to long-term savings as a result of lowering the government's spending baseline, including some $40 billion from cuts to Pell Grants.
"It is kind of crazy to have come to the brink of shutting down the government over a $350 million difference," said Scott Lilly, a former staff director at the Appropriations Committee under Chairman David Obey, D-Wis.