The
Federal Budget, FY07
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On
February 6, 2006, the President
released his proposed budget
for FY07. This edition of
the WAND News Bulletin is
all about the budget: what
it looks like, and what
it means for all of us.
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|
| This
year, it's quite distressing.
You know how politicians
like to talk about needing new
ideas, and not doing "business
as usual"? We agree. We think
we need to make some vital, and
drastic, changes to the federal
budget. We
need to move forward: toward more
peace, more prosperity, more security.
But
instead, we're moving backward.
We're getting just more of the
same, only -- well, more and more
of it. This Congress and this
administration are making slight
changes to the budget, but in
all the wrong ways. The
things they're touting -- cutting
back programs, beefing up the
military -- are digging us deeper
into a bad situation: more war,
more poverty, more insecurity.
We
see some simple, stark facts about
the budget. And each year, when
the President proposes a new one,
we take a close look to see if
any of these things are being
changed. The news is not good.
We'll
explore these points one by one.
Here they are:
- We
say it all the time, but still
most people don't know: the
Pentagon gets OVER HALF of the
discretionary federal budget.
THE PENTAGON. Not
veterans, not the wars in Iraq
and Afghanistan, not homeland
security. It's totally out of
proportion -- to our domestic
needs, to our security needs,
to the international budgetary
reality.
- Cutting
the pie in this way does not
make us safer. The
biggest, shiniest military machine
in the world will not protect
people if a terrorist sneaks
into the country with a nuclear
bomb. Game over.
We
could easily cut the Pentagon
budget, and still be just as
safe. In fact,
if we redirect the money toward
things that do make us safe
-- such as locking down nuclear
materials or safeguarding our
ports -- we'll be much better
protected from the real threats
out there today.
- As
the budget shifts money away
from domestic human needs, we
falter as a country.
We become more polarized, weaker,
and inhumane. It is not right
nor necessary to cut programs
that care for the least able
among us.
- There
are at least two extraordinary
demands on our national budget
right now: the wars in
Iraq and Afghanistan; and the
need to rebuild the Gulf Coast
in the wake of Katrina and Rita.
It is never easy to ask for
more revenue from our population,
but this is the time. We
need to increase the size of
the pie in order to provide
what we need.
In fact,
the truth is that our pie has
grown, but the President is
hiding behind some tricks of
the trade. First,
the wars are funded by "supplemental
appropriations"
-- which were once reserved
for true emergencies, but now
seem to come in handy when you
need over $300 billion for a
multi-year campaign of your
liking. Second,
the U.S. has got some major
credit card debt going on.
And it's growing to immense
proportions. Our kids, our grandkids,
are inheriting a world of pain
in that yawning national debt.
- Cutting
taxes for the wealthiest among
us is doing little to reinvigorate
the economy. It
may in fact be holding it back.We
could reinvest in programs that
create jobs and retrain the
unemployed instead.
We
take these lenses, and we hold
them up to the proposed budget,
and what do we find? You guessed
it: it exacerbates every single
problem listed.
Rather
than touting the cosmetic and
harmful changes he has made (cutting
Medicare! increasing the "security"
budget!), we ask: isn't
it time to make real change? Change
that will help, rather than harm,
all of us, as a country?
It
wouldn't really be that hard.
But it would take vision, and
heart. And it is long overdue.
Itching
to know more about Capitol Hill?
Okay,
if the information here just isn't
enough for you, you can dip into
these documents. They're in PDF
format, so you need Adobe Acrobat
Reader.
All Our
Dollars
A
guide to the soap-opera saga of
the federal budget process.
American
Pie
How
do you think America's budget
pie is sliced?
It's
your federal government: a citizen's
guide
Helpful
tips about understanding Congress
and taking action.
Loads of Info: Making
Sense of Capitol Hill
A
28-page booklet with detailed
info: budget and appropriations
process; legislative process;
and names and numbers on the 109th
Congress.
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THE
SIZE OF THE PENTAGON BUDGET |
|
Here's
our message
again:
the Pentagon
gets OVER
HALF of
the discretionary
federal
budget.
THE PENTAGON.
Not
veterans,
not the
wars in
Iraq and
Afghanistan,
not homeland
security.
It's totally
out of
proportion
-- to
our domestic
needs,
to our
security
needs,
to the
international
budgetary
reality.
For
FY07,
the Pentagon
will eat
up over
$463 billion.
Sounds
like a
big number,
and it
is a big
number;
how to
picture
how much?
We
like to
use charts
so you
can see
what we
mean.
Here's
a good
one, even
though
the budget
figures
are from
last year.
(The song
remains
the same,
only more
so.)
Here's
a another
from our
friends
at the
Center
for Arms
Control
and Non-Proliferation.
Click
to enlarge.

But
wait,
there's
more.
Loads
more.
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|
We
like ice cream, but we like
Ben Cohen of Ben & Jerry's
fame even more.
Here's
a link to his video cartoon
illustrating the federal budget
in Oreo cookies. |
| Well,
what if we compare our military
budget with the other countries
in the world?
Actually,
makes us look totally out of
balance.

Doesn't it seem
odd? And these figures are old;
more recent figures put our
military budget at 47-50% of
the world total.
The
U.S. has 5% of the world population,
and our military budget is 47%
of the world's total military
budget.
Think
what we could do with that
money. |
|
Well,
these are dangerous times, though,
right? And we need to do everything
we can to make ourselves safe
and secure.
Indeed, we do;
but our military expenditures
are painfully outmoded. We need
to change our "security"
concerns all around, and spend
money where it will make a difference.
On to the next part. |
|
NOT
ONLY IS IT TOO BIG, IT'S NO
GOOD |
So
the Pentagon budget is enormous, and
it's out of line with military budgets
of every other country in the world
-- even the "axis of evil,"
even the rising China, even the USSR.
So
the question becomes, is that gigantic
Pentagon doing what it's supposed
to do: keeping us safe?
And
increasingly, it appears that the
answer is: No. It appears that the
Pentagon continues to aim in the wrong
direction: toward the threats of old.
We maintain an arsenal of thousands
and thousands of nuclear weapons;
we squander billions on new-fangled
high-tech Cold War weapons (like missile
defense).
And
we do not spend enough money on what
would keep us truly safer: homeland
security, programs to locate and lock
down nuclear materials to keep them
out of the hands of terrorists, and
things like that.
The
truth is, the biggest threat to our
security today is from extremists
and terrorists; and our efforts to
protect ourselves should be oriented
in that direction.
|
"Our
Badly Run Budget"
Ben
Cohen, the ice cream guy, weighs
in here:
"Such
an analysis would reveal that
the Pentagon budget, more than
the ledger of any other single
federal department, could yield
big-time savings if subjected
to the cost-cutting methodology
of a business executive intent
on ferreting out waste.
"That
view is held by former President
Ronald Reagan's Assistant Secretary
of Defense Lawrence J. Korb,
who argues that America could
save $60 billion by cutting
weapons still being built or
maintained, believe it or not,
to fight the defunct Soviet
Union."
He
also heads up Business
Leaders for Sensible Priorities,
and they got a lot to say, too.
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|
Yep,
we can do better: building a
better security budget
One
of WAND's good friends is Lawrence
Korb, former Assistant Secretary
of Defense under Reagan, now
a Senior Fellow at the Center
for American Progress.
He
thinks the Pentagon budget could
easily be trimmed, and the money
funnelled toward programs that
really do protect us.

Without diminishing America’s
ability to fight terrorists, America
can safely trim $60 billion (15
percent) from President George
W. Bush’s proposed fiscal
year 2006 Pentagon budget, freeing
up much-needed funding for America’s
broader national security needs.
Here's
where these savings would come
from:
- About
$13 billion would be saved
by reducing the nuclear arsenal
to no more than 1,000 warheads,
more than enough to maintain
nuclear deterrence.
- About
$7 billion would be saved
by cutting most of the National
Missile Defense program, retaining
only a basic research program
to determine if this attractive
idea, which has proven to
be an utter failure in actual
tests, could ever work in
the real world.
- About
$26 billion would be saved
by scaling back or stopping
the research, development,
and construction of weapons
that are useless to combat
modern threats. Many of the
weapons involved, like the
F/A-22 fighter jet and the
Virginia Class Submarine,
were designed to fight the
defunct Soviet Union.
-
Another $9 billion would be
saved by eliminating forces,
including two active Air Force
wings and one carrier group,
which are not needed in the
current geopolitical environment.
- And
about $5 billion would be
saved if the giant Pentagon
bureaucracy simply functioned
in a more efficient manner
If
Congress and the president make
these cuts, not only would they
have more money to spend on
other priorities, but they would
also make our military stronger,
allowing our soldiers to focus
on the weapons, training, and
tactics they need to do their
jobs and defend our nation.
Download
his whole excellent report:
Click
here. |
|
CUTTING
PROGRAMS FOR HUMAN NEEDS HURTS
US AS A COUNTRY |
So,
you keep the pie the same size; you make
the one slice for the Pentagon even beigger;
and what happens to the rest of the slices?
You
got it: they get squeezed even smaller.
We're chiseling away at programs that
serve the most disadvantaged among us:
the elderly, the disabled, children,
low-income families. You know the drill.
As
budget wonks are peeling away layers
of obfuscation in the newly proposed
budget, they're finding an ugly reality
underneath. Despite the way Katrina
ripped the cover off the truth of poverty
and despair in just one city, we are
continuing to trim programs that seek
to even the playing field.
As
the budget shifts money away from domestic
human needs, we falter as a country.
We become more polarized, weaker, and
inhumane. It is not right nor necessary
to cut programs that care for the least
able among us.
| The
Coalition on Human Needs calls
it "The President’s
Scandalous Budget"
 |
Here's
a bit of their analysis; Click
here for the whole thing. |
The
President’s budget abandons
investments in shared prosperity
for all Americans.
Education Slashed. This
budget actually cuts spending
on education – if enacted,
it would be the biggest cut in
the Department of Education’s
27-year history, down from $88.9
billion this year to $63.4 billion
in the President’s FY 2007
proposal, a $25.5 billion cut
(29 percent).
Closing off Routes to
Good Jobs. The budget
slashes vocational education funding
and further reduces student loans,
even after the big cuts just enacted
for the current year.
Head Start for Fewer Children.
Head Start is frozen in the President’s
proposal; the National Head Start
Association estimates that this
failure to keep pace with inflation
will result in 19,000 fewer children
served in FY 2007.
The
budget reduces vital help to vulnerable
people.
Less Food Aid.
The President would stop providing
food packages to 420,000 low-income
elders and 50,000 pregnant women
and young children by eliminating
the Commodity Supplemental Food
Program – a one-year cut
of $108 million.
Working Families Lose
Food Stamps. Once again,
the Administration seeks to deny
food stamps to about 300,000 people
in working families – a
cut of $656 million over five
years.
Services Cut for Abused
and Neglected, Young and Old.
Funding for the Social
Services Block Grant is slashed
by nearly 30 percent (from $1.7
billion to $1.2 billion) in one
year.
Less Housing for Elderly
and Disabled. Funds for
housing for the elderly is cut
by one-quarter (a cut of $190
million in FY 2007); housing for
people with disabilities is cut
in half (a reduction of $119 million).
The
budget cuts services that strengthen
low-income working families.
Child
Care Slashed, Year After Year.
At least 400,000 children
will lose child care help under
President Bush’s budget
plans.
Fewer Community Services.
The Community Services Block Grant
would be terminated, a one-year
cut of $670 million. |
|
National
Women's Law Center says budget
places women last -- again
Here's
a bit of their analysis; Click
here for the whole thing.
The
administration's budget moves
in a direction that increases
insecurity and reduces opportunity,
especially for already vulnerable
single mothers and elderly women.
Programs providing important
educational and training opportunities
for women and other disadvantaged
groups will be eliminated. More
elderly people and low-income
families will face hunger. Fewer
children in low-income families
will receive child care assistance.
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| What
to know what's going to happen
in your state?
Those
budget gurus at National Priorities
Project have been working just
for you. They've figured out how
the FY07 budget is going to affect
every state in the country (really).
Here's
a bit of the report on New York.
Find out about your state: click
here. They rock.
THE
PRESIDENT’S BUDGET: IMPACT
ON NEW YORK
Food
& nutrition: The
budget proposal would eliminate
the Commodity
Supplemental Food Program, cutting
off at least 400,000 senior citizens
from nutritious, packaged meals.
The budget also proposes to cut
funding for the Special Supplemental
Nutrition Program for Women, Infants
and Children (WIC) by $200 million,
after taking inflation into account.
New York would lose $12.1 million
in WIC funding, while 10.5% of
the state’s residents currently
experience food insecurity.
Community
development: The budget
proposes once again to cut
Community Development Block Grants
(CDBG), which help cities and
towns ensure affordable housing,
provide services and create jobs.
New York would lose $80.8 million
in CDBG funds under the budget
proposal. The loss to Albany would
total $875,146 and New York City
would lose $42.4 million. |
| But
wait, there's more: The Center
for American Progress says the
budget has "wrong priorities"
For
their analysis, click
here. Here's a bit:
- The
president proposes to reduce
Medicare funding by $36 billion
through provider payment cuts
and through increasing premium
payments for some higher-income
Medicare beneficiaries. The
budget also calls for further
reductions in Medicaid funding.
- The
budget proposes to cut
$276 million from the Centers
for Disease Control and Prevention
budget, eliminating the $99
million block grant for preventive
health and health services and
cutting $34 million in funds
for health promotion.
- The
president's budget proposes
a 3.8 percent cut in
the Department of Education's
fiscal year 2007 budget. While
the president has proposed several
new education initiatives, they
are more than offset by the
underfunding of No Child Left
Behind and other important programs.
- The
president's budget proposes
to cut funding for science
and technology by approximately
$600 million; to cut
funding for the Environmental
Protection Agency by more than
$300 million; and to short-change
renewable energy funding.
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NOT
A TIME TO SHRINK THE PIE
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|
There
are at least two extraordinary
demands on our national budget
right now: the
wars in Iraq and Afghanistan;
and the need to rebuild the Gulf
Coast in the wake of Katrina and
Rita. It is never easy to ask
for more revenue from our population,
but this is the time. We
need to increase the size of the
pie in order to provide what we
need.
It
is time to ask many questions
about this budget: is it keeping
us safe? is it keeping us healthy
and prosperous? AND, is it responsible
to us, and to future generations?
For
some reason, the administration
thinks it's acceptable to keep
borrowing, to pile onto our credit
card debt. The deficit is soaring;
and the national debt is quickly
becoming immense.
OMB
Watch characterizes the budget as
setting us on a dangerous and somewhat
dishonest path...
The
president's Fiscal Year 2007 (FY
07) budget would set the nation
on a dangerous fiscal path and
does nothing to honestly address
the federal government's looming
budgetary challenges. The
budget--totaling $2.77 trillion--would
make permanent the president's
first-term tax cuts, which primarily
benefit the wealthy, and pay for
those cuts in part by cutting
some entitlement programs and
drastically reducing domestic
discretionary spending (outside
of homeland security and defense).
Despite the spending cuts, deficits
will continue to rise each year
after President Bush leaves office
if this budget is enacted.
|
|
Center
on Budget and Policy Priorities
faults the budget on several important
grounds
This
analysis assesses the President’s
budget on three basic criteria
— fiscal responsibility,
fairness and balance (i.e., does
it call for shared sacrifice?),
and the degree to which it is
transparent (does it conceal or
omit basic budget information
or resort to budget gimmickry?).
This analysis indicates that the
budget falls well short on all
three standards.

|
Center
for American Progress: Setting
the Wrong Priorities: An Analysis of the
President's 2007 Budget
Click
here
for the full report.
- The
budget proposes to continue the downward
spiral from record surpluses to massive
deficits. In 2000, the federal
government was running a surplus of
2.4 percent of GDP, or $236 billion.
In just a few short years, deficits
have returned, and for 2006 deficits
are estimated to be 3.2 percent of
GDP, or about $423 billion, according
to the president's budget.
National
Women's Law Center faults budget
on how it treats women; and how
it handles budget deficits...
Here's
a bit of their analysis; Click
here for the whole thing.
There
are two sides of the ledger in
every budget: income and expenses.
Largely due to five years of tax
cuts that overwhelmingly benefit
the wealthy, America's budget
is now seriously out of balance...
While
the President proposes to cut
domestic programs to achieve "deficit
reduction," deficits will
grow under this budget because
of the President's tax cut proposals:
making the 2001 to 2003 tax cuts
permanent, expanding health savings
accounts, and creating new tax-sheltered
savings vehicles. The cost of
these tax cuts is enormous...
$3.3 trillion over just the next
ten years -- and most of the benefits
will go to the wealthiest Americans. |
|
WHEW.
ONE LAST THING: THEM TAX CUTS?
NOT DOING ANY GOOD |
Unless
you're Donald Trump, that is. If you're
wealthy, you're enjoying yet more of your
good luck. If you're not, you're losing
your job at an auto factory and taking
one without benefits at a bigbox store.
It's
increasingly being proved that those
vaunted, tasty tax cuts are NOT, in
fact, revitalizing the economy or rising
all boats or dripping down.
They're just tax cuts for the wealthy.
Our
friends at United for a Fair Economy just
issued a report.
Click here to read more.
 |
As
President Bush and his senior advisors
traveled across the country this
past weekend touting 2005 job growth
numbers and demanding that Congress
make the administration's tax cuts
permanent, a study examines the
administration's claim that tax
cuts create jobs—and finds
it without merit. |
While
two million jobs were created in 2005,
this is 3.5 million jobs short of expectations
by the President's Council of Economic
Advisors, who estimate job growth at
3.1% in a normal year. Jobs grew by
only 1.5% in 2005.
"The
president's tax-cutting policy is a
failure in regard to job creation, and
we need to recognize it as such, "
said Anisha Desai, program
director at UFE and one of the report's
co-authors. "While there
is no evidence that massive tax cuts
create jobs, there is considerable evidence
that they contribute to economy-choking
deficits."
The
report reviewed administration claims
that "tax cuts create jobs"
and found the following:
- Tax
cuts have no predictable effect on
employment, either in job creation
or job destruction.
- Since
2003, job creation has fallen millions
of jobs short of the administration's
promises.
- The
current weakness in job creation during
an economic recovery is unprecedented
since World War II.
 |
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