One Reason Government Spending Is Out Of Control

On Saturday the Washington Post posted an article about some of the end-of-the-year spending done by government agencies. The spending is a result of one of the side effects of baseline budgeting, which is something our government needs to get rid of. Baseline budgeting is the concept that a department’s budget is based on how much money they spent in the previous year. If they spend 90 thousand dollars and their budget was 100 thousand dollars, the department budget will be 90 thousand dollars in the following year. If they don’t spend all of the money in their budget, their budget is cut. This creates a mad rush to spend their entire budget by September 30, the end of the fiscal year. If they spend the full amount and ask for a 10 percent increase and get a 5 percent increase, that is considered a 5 percent budget cut. That is how Congress can claim they are cutting the budget while the spending continues to increase. These two concepts explain some of the rather interesting end-of-the-year spending done in the past few weeks by the government. As you read this, remember that this is under sequestration when Democrats are complaining that there is no money.

The article posts some examples of spending in recent weeks:

On Monday, VA paid $27,000 for an order of photographs showing sunsets, mountain peaks and country roads. They would go into a new center serving homeless veterans in Los Angeles; a spokeswoman described the art as “motivational and calming, professionally designed to enhance clinical operations.”

On Tuesday, the USDA bought $127,000 worth of toner cartridges (“end of year,” the order explained). VA spent another $220,000 on artwork for its hospitals.

On Wednesday, the Coast Guard paid $178,000 for cubicle furniture, replacing high-walled cubes with low-walled ones to improve the air flow in a large office area.

“Other higher-priority projects were not able to be executed, so they moved [money] to this lower-priority project” before the year’s end, said Coast Guard spokesman Carlos Diaz. “The money was going to be spent anyway.”

On Thursday, VA was buying art again. It spent $216,000 on artwork for a facility in Florida. In all, preliminary data showed that the agency made at least 18 percent of all its art purchases for the year in this one week. One-sixth of the buying in one-52nd of the year.

This is not a reasonable system. There is a spreadsheet at adelphi.edu that shows the federal deficit over the years. When President Obama took office, the deficit was approximately 12 million dollars. The deficit is now approaching 17 million dollars. That’s a pretty hefty increase in five years. However, the really interesting part of the spreadsheet is the relationship between the deficit and which party controls the House of Representatives. Remember, the House controls the spending. Please follow the link to the spreadsheet and take a look at the history of the federal deficit.

At any rate–baseline budgeting needs to go.

 

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The Real Numbers On The Sequester

Yesterday Senator Rand Paul posted an article at Investors.com detailing some of the actual numbers in the sequester. Senator Paul reminds us that the sequester cuts the federal budget by only 2.3%–leaving 97.7% of the budget intact.

Senator Paul states:

The sequester barely begins to skim the surface of the problem. Since taking office, President Obama has increased federal domestic agencies’ budget by 17%. This 17% increase since 2008 will have to endure a 5% cut.

Even with the sequester, the federal government will spend more in 2013 than it did in 2012 — or more than $15 billion.

This expansion of government is equivalent to the entire chain of Whole Foods or Macy’s department stores, in just one year.

President Obama has dramatically expanded our federal government, and the American taxpayers should not have to endure more tax increases to fund it.

We have to start cutting back.

Unfortunately, there are some people in government who do not want to see any cuts at all–they simply want to take more money out of the pockets of working Americans. The scare tactics are everywhere–from releasing prisoners to threatening longer lines at airports. Unless Americans wake up and realize that the Obama Administration and the majority of the news media are lying about the impact of these cuts, we can expect further increases in both taxes and spending and an economy that is simply not growing at an acceptable rate. The voters will determine the future of our country by how they vote in 2014. I think that the voters in that election will decide whether we become Greece or remain America.

Some Suggestions For Cutting Government

Yesterday Fox News posted a story that provided some perspective on the current sequestration debate.

The article reports:

The sequester is expected to take a $85 billion bite out of the fiscal 2013 budget, though only half of that impact is expected to be felt this year.
But lawmakers say the government already has $45 billion in unspent money which could be used to offset the shortfall.

Rep. Tom Price, R-Ga and Sen. Marco Rubio, R-Fla. introduced legislation on Tuesday that would require the director of the White House budget office to rescind funds that haven’t yet been obligated.

The article further reports:

Republican Sen. Tom Coburn has also identified several programs at the Pentagon he’d set aside, including a video called “grill sergeants” in which the instructors show their favorite recipes; money for a plan to send a space ship to another solar system; funds to find advancements in beef jerky from France; and $6 billion on questionable research, including what lessons about democracy and decision-making could be learned — from fish. 

I have enough input into my decisions–I have no plans to consult my local fish.

Please follow the link above to see some of the places where money is available and government spending can be cut. The upside of this discussion is that it will bring attention to government waste. Hopefully we can learn from our past overspending and cut our spending in order to reduce the credit card bill we are handing our children.

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Sequestration Cuts Program That No Longer Exists

Yesterday The Examiner reported that the Obama Administration has warned that as a result of sequestration the National Drug Intelligence Center would lose $2 million of its $20 million budget. The only problem with that statement is that the National Drug Intelligence Center (NDIC) closed on June 15, 2012.

The article reports:

The fear-mongering over the cuts, which amount to a pittance of the overall budget, has become the source of humor for many.

A post at Twitchy noted that the Washington Post had to “poke fun at its own coverage of the (nominal) effect of scheduled budget cuts on the critters at the National Zoo.”

“Won’t someone think of the kittens?” Twitchy asked.

“To listen to the White House if the GOP does nothing by Friday baby seals, baby kittens, baby lambs, baby puppies and baby calves will DIE,” tweeted Rich Galen.

Last Friday, ABC’s Jonathan Karl said that “officials have warned of more forest fires, workplace deaths and, heaven-forbid — chicken shortages.”

Now, we learn that an agency that has been out of business for eight months will have its budget cut.

“Might there be other errors in the OMB‘s report?” Riggs (Reason’s Mike Riggs) asked.

Yeah. There might be.

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Separating Truth From Fiction

Sequestration will take effect on Friday, March 1.To hear President Obama describe it, sequestration will be the end of life as we know it in America.

There were two articles posted in the Washington Post on Friday–one written by George Will and one written by Bob Woodward. George Will describes sequestration as a manufactured crisis, and Bob Woodward states that sequestration was initiated by Jack Lew, Rob Nabors, and President Obama (contrary to the claims of the President that it was the Republican’s idea).

George will reminds us that that USS Truman was delayed in deploying to the Persian Gulf. He is not convinced that this was necessary. He states:

The Defense Department’s civilian employment has grown 17 percent since 2002. In 2012, defense spending on civilian personnel was 21 percent higher than in 2002. And the Truman must stay in Norfolk? This is, strictly speaking, unbelievable.

George Will reminds us of previous crises that never quite materialized:

Remember when “a major cooling of the climate” was “widely considered inevitable” (New York Times, May 21, 1975) with “extensive Northern Hemisphere glaciation” (Science magazine, Dec. 10, 1976) which must “stand alongside nuclear war as a likely source of wholesale death and misery” (International Wildlife, July 1975)? Remember reports that “the world’s climatologists are agreed” that we must “prepare for the next ice age” (Science Digest, February 1973)? Armadillos were leaving Nebraska, heading south, and heat-loving snails were scampering southward from European forests (Christian Science Monitor, Aug. 27, 1974). Newsweek (April 28, 1975) said meteorologists were “almost unanimous” that cooling would “reduce agricultural productivity.”

We’ve been here before.

Bob Woodward reports:

“The sequester was something that was discussed,” Carney said. Walking back the earlier statements, he added carefully, “and as has been reported, it was an idea that the White House put forward.”

This was an acknowledgment that the president and Lew had been wrong.

Why does this matter?

First, months of White House dissembling further eroded any semblance of trust between Obama and congressional Republicans. (The Republicans are by no means blameless and have had their own episodes of denial and bald-faced message management.)

Second, Lew testified during his confirmation hearing that the Republicans would not go along with new revenue in the portion of the deficit-reduction plan that became the sequester. Reinforcing Lew’s point, a senior White House official said Friday, “The sequester was an option we were forced to take because the Republicans would not do tax increases.”

In fact, the final deal reached between Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.) in 2011 included an agreement that there would be no tax increases in the sequester in exchange for what the president was insisting on: an agreement that the nation’s debt ceiling would be increased for 18 months, so Obama would not have to go through another such negotiation in 2012, when he was running for reelection.

So when the president asks that a substitute for the sequester include not just spending cuts but also new revenue, he is moving the goal posts. His call for a balanced approach is reasonable, and he makes a strong case that those in the top income brackets could and should pay more. But that was not the deal he made.

Make no mistake–the purpose of all this panic is to create an atmosphere where Americans are willing to raise taxes–even on the middle class. The tax increases will be on everyone. The panic over sequestration is necessary to pave the way for those taxes.

As I said, we have been here before.

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Politicizing Every Part Of Government

One of the most distressing aspects of the Obama Administration has been the politicization of every area of government. The Department of Justice dropped prosecution of an obvious voter intimidation case, the National Labor Relations Board tried to stop a company from opening a manufacturing facility in a non-union state, and the Department of Justice’s involvement in Fast and Furious is still being uncovered. The latest example of this sort of playing politics with things that should not be political has to do with the impact of the defense cuts the Obama Administration has caused by refusing to engage in serious budget negotiations.

Yesterday Investors.com posted an article explaining the government’s interference in the enforcement of the WARN law. The article reports:

Federal law under the WARN (Worker Adjustment and Retraining Notice) Act required employers to give workers a minimum of 60 days notice before potential mass layoffs.

Because of sequestration, quite a few people who work for companies related to the defense industry will be getting layoff notices just before the November election. Many of those people live in swing states with electoral votes the President needs to win the election.

The article reports:

To avoid the electoral consequences of these cuts, the Department of Labor (DOL) is informing defense contractors that since sequestration hasn’t actually happened yet, and some in Congress are trying to find ways around it, it might be nice if they didn’t obey federal law and send out the pink slips just this once.

I don’t want sequestration to take effect, but as of now, it will happen. Therefore, the law should be followed, regardless of electoral consequences.

The article concludes:

“Sequestration is currently the law of the land, and our nation’s workers have a right to know how these sequestration cuts which begin in January may impact them,” Sen. McCain noted.

They deserve to know when they’re about to lose their jobs, and that President Obama did it for them. So do the voters.

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