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Special Edition | February 2006 |  News Bulletin Archive     

Special edition:

Our amazing federal budget pie!

Table of Contents | Click to move to content within the Bulletin.

FY07, An overview: The federal budget song remains the same

The size of the Pentagon budget: too big and getting bigger

Real security: The game has changed. We need to retool the security budget to face real threats.

Cutting human needs programs endangers us as a country

Not a time to shrink the pie. As the national debt grows, our economic future is more uncertain

Tax cuts for the wealthiest are not helping

And our regular old features!

Notable National Events

Jobs and Opportunities

In the Field: WAND Chapter/Partner News & Events


The Federal Budget, FY07

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.

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:

  1. 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.
    Read all about it:
    The size of the Pentagon budget: too big and getting bigger
  2. 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.
    Read all about it:
    Real security: The game has changed. We need to retool the security budget to face real threats.

  3. 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.
    Read all about it:
    Cutting human needs programs endangers us as a country

  4. 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.
    Read all about it:
    Not a time to shrink the pie. As the national debt grows, our economic future is more uncertain
  5. 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.
    Read all about it:
    Tax cuts for the wealthiest are not helping

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.


* Take action here: Tell Congress to change the federal budget priorities: Don't increase Pentagon spending while decreasing spending for human needs
* 2006 Congressional Schedule
* WAND Legislative Priorities 2006

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.


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.


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.


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.


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.

NOT A TIME TO SHRINK THE PIE

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...
Click here to read more.

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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