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Obama saved favorite programs from budget cuts

By ANDREW TAYLOR
April 12, 2011

President Barack Obama speaks at the White House in Washington. (AP Photo/Carolyn Kaster, File)

A close look at the government shutdown-dodging agreement to cut federal spending by $38 billion reveals that lawmakers significantly eased the fiscal pain by pruning money left over from previous years, using accounting sleight of hand and going after programs President Barack Obama had targeted anyway.

Such moves permitted Obama to save favorite programs — Pell grants for poor college students, health research and “Race to the Top” aid for public schools, among others — from Republican knives.

And big holes in foreign aid and Environmental Protection Agency accounts were patched in large part. Republicans also gave up politically treacherous cuts to the Agriculture Department’s food inspection program.

The full details of Friday’s agreement weren’t being released until overnight as it was officially submitted to the House. But the picture already emerging is of legislation financed with a lot of one-time savings and cuts that officially “score” as savings to pay for spending elsewhere, but that often have little to no actual impact on the deficit.

As a result of the legerdemain, Obama was able to reverse many of the cuts passed by House Republicans in February when the chamber passed a bill slashing this year’s budget by more than $60 billion. In doing so, the White House protected favorites like the Head Start early learning program, while maintaining the maximum Pell grant of $5,550 and funding for Obama’s “Race to the Top” initiative that provides grants to better-performing schools.

Obama also repelled Republican moves to cut $1 billion in grants for community health centers and $500 million from biomedical research at the National Institutes of Health, while blocking them from “zeroing out” the AmeriCorps national service program and subsidies for public broadcasting.

Instead, the cuts that actually will make it into law are far tamer, including cuts to earmarks, unspent census money, leftover federal construction funding, and $2.5 billion from the most recent renewal of highway programs that can’t be spent because of restrictions set by other legislation. Another $3.5 billion comes from unused spending authority from a program providing health care to children of lower-income families.

About $10 billion of the cuts already have been enacted as the price for keeping the government open as negotiations progressed; lawmakers tipped their hand regarding another $10 billion or so when the House passed a spending bill last week that ran aground in the Senate.

For instance, the spending measure reaps $350 million by cutting a one-year program enacted in 2009 for dairy farmers then suffering from low milk prices. Another $650 million comes by not repeating a one-time infusion into highway programs passed that same year. And just last Friday, Congress approved Obama’s $1 billion request for high-speed rail grants — crediting themselves with $1.5 billion in savings relative to last year.

The underlying issue is long overdue legislation to finance the day-to-day budget of every Cabinet department, including the Pentagon, for the already half-completed 2011 fiscal year. The measure caps 2011 funding for such operating budgets at about $1.2 trillion.

About $10 billion of the cuts comes from targeting appropriations accounts previously used by lawmakers for so-called earmarks, those pet projects like highways, water projects, community development grants and new equipment for police and fire departments. Republicans had already engineered a ban on earmarks when taking back the House this year.

Republicans also claimed $5 billion in savings by capping payments from a fund awarding compensation to crime victims. Under an arcane bookkeeping rule — used for years by appropriators — placing a cap on spending from the Justice Department crime victims fund allows lawmakers to claim the entire contents of the fund as budget savings. The savings are awarded year after year.

Even before details of the bill came out, some conservative Republicans were assailing it. Rep. Mike Pence, R-Ind., said he probably won’t vote for the measure, and tea party favorite Michele Bachmann, R-Minn., is a “nay” as well.

The $38 billion in cuts, Rep. Tim Huelskamp, R-Kan., wrote on his Facebook page, “barely make a dent” in the country’s budget woes.

Huelskamp and other conservatives are also upset that most conservative policy “riders” added by Republicans were dropped from the legislation in the course of the talks.

The White House rejected GOP attempts to block the Environmental Protection Agency’s ability to issue global warming rules and other reversals of environmental regulations. Obama also forced Republicans to drop an effort to cut off Planned Parenthood from federal funding, as well as GOP moves to stop implementation of Obama’s overhauls of health care and Wall Street regulation.

The administration also thwarted a GOP attempt to block new rules governing the Internet, as well as a National Rifle Association-backed attempt to neuter a little-noticed initiative aimed at catching people running guns to Mexican drug lords by having regulators gather information on batch purchases of rifles and shotguns.

Anti-abortion lawmakers did, however, succeed in winning a provision to block taxpayer-funded abortions in the District of Columbia. And House Speaker John Boehner, R-Ohio, won funding for a personal initiative to provide federally funded vouchers for District of Columbia students to attend private schools.

Copyright © 2011 The Associated Press

3 Responses to Obama saved favorite programs from budget cuts

  1. bmclellan

    April 12, 2011 at 8:35 am

    And the Wars drag on, and on, and on..

  2. Jon

    April 12, 2011 at 7:08 pm

    As do the tax cuts, which cost the government a lot (about three times) more than all the wars put together.

    J.

  3. Sandune

    April 12, 2011 at 8:20 pm

    The plan to keep government under control to pay down our debt should be the focus. Taxing Americans to pay for bigger and more intrusive government programs is not the best way.

    There is much we can do without but it would take some brain matter to figure out what this is. The Congress has no intention of prioritizing our expenses. Years ago we tried to cut back on all duplicate programs and we got nowhere. No one is willing to get the lead out of our butts and start to work to pay off our debts. All many of you can see is the profits being made and none of you are recipients of any.

    So I guess the lowly female of the species will just have to find another way to keep from getting into trouble. If the kids are sick, tough titties! If our breasts are full of cancer, we might have to hire someone else to raise our kids. The one thing we can guarantee is that Viagra will always be free for the men in retirement. Estrogen has helped women get through the change of life, but is never part of the discount programs.

    It is always easier to redistribute the money than to try and cut back programs.

    Take from the rich and stick it where the sun don’t shine.