GOP leader ups the ante: $100 billion in spending cuts this fiscal year

Details on spending cuts will be available when bill is formally introduced

If House Appropriations Committee Chairman Hal Rogers (R-Ky.) gets his way, there'll be no need to wait for fiscal 2012 to start dealing with spending cuts. Rogers plans to cut $100 billion in spending in an upcoming continuing resolution bill that will cover the remainder of fiscal 2011.

Just the day before, Rogers had estimated that his CR legislation would cut spending by more than $74 billion. The current CR is set to expire at the beginning of March.

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Rogers said in a statement that he revised his earlier estimate after meeting with his subcommittee leaders. He also said the $100 billion spending reduction is in comparison to the president’s fiscal 2011 budget proposal and will fulfill the goal outlined in Republicans’ “Pledge to America” made last year. 

“Our intent is to make deep but manageable cuts in nearly every area of government, leaving no stone unturned and allowing no agency or program to be held sacred,” Rogers said. “I have instructed my committee to include these deeper cuts, and we are continuing to work to complete this critical legislation.”

The specific cuts proposed in the CR legislation will be available when Rogers formally introduces the bill, according to the committee.

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Reader comments

Fri, Feb 11, 2011

Well, speaking to this, it appears that a certain factions pronounced objectives have been met. That is, the US has been bankrupted and now the cuts will begin -- and we will see that they are to programs that help the majority of citizens, while the pork and the corporate welfare programs are going to be given the pass card. And when they RIF and fire employees, and the state and local governments are forced to do the same (and some people will cheer of course), but what about this spike in unemployment, and effects on the housing market, etc.?

Fri, Feb 11, 2011

Our current GDP to debt ratio is ~ 1:1. We are financing our debt (mostly in short-term notes and T-bills) with more notes and bills (e.g., China 30-day; QE2 T-Bills: 2, 3, 5, and 10 years); soon in the yearly budget revenue will equal borrowing; pressure on the dollar will increase; and a lot of our unemployment is structural not cyclical. Add to this rising healthcare cost, unfunded liabilities, debt monetization, income disparity, educational relativism, and pressure on commodities (mostly due to supply and demand). Since 2008 most domestic stock market gains were the result of investing in emerging markets. These rising economies have place more demand on commodities with little increase in capacity (especially for food as a result of drought and climate change). Finally, income inequality makes saving for retirement impracticable if not impossible for most Americans. The most immediate effect on income disparity is on taxation. Without a very regressive tax (impossible) the only way to get out of this mess is were very sever cuts. I mean severe—budget cuts on an order of magnitude never seen or felt before. 100 billion is only scratching at the surface. Just do the math, (CIA World Factbook Gini coefficient for the US is 45.0 which is the 42nd lowest of 134 nations. As a comparison the 3 nations with the best coefficients are Sweden 23.0, Norway 25.0, and Luxembourg 26.0). For 2010 total revenue is ~ $2.381 trillion, and total expenditures ~ $3.552 trillion. Therefore the estimated deficit is ~ $1.171 trillion. The estimated US debt is $14.13 trillion. Debt interest payment for 2010 is estimated to exceed $430 billion or a little over 12% of the total expenditures (a budget reduction of $100 billion represents almost 3% of total expenditures). Increasing the debt ceiling will in 2011 (and aging in 2012) will only increase these cost (the rosiest estimates put the raise in debt to be 11% with, at best, 10% increase in revenues via an improving economy). Cutting the budget by $100billion from the President’s proposed 2011 budget (more like $60 Billion; not the 2010, 2009, or 2008 budget), must occur over the last 6 months of the 2011 FY budget will be a killer. But at only 3% of total expenditures, still includes an increase in borrowing and a rise in debt interest payments beyond 12%. If we cut every expenditure outside of the DoD budget we would just barely break even. Our current net operating cost is~ $2,080 billion; there is a cash deficit of ~ $1,294 billion. Finally, one more thing to ponder: From wikipedia: “As of January 31, 2011, the total Public Debt of the United States of America was and was 96.4% of calendar year 2010's annual gross domestic product (GDP) of $14.7 trillion.” It should be obvious we are not going to “grow” our way out of this one. This is more than a crisis of confidence.

Fri, Feb 11, 2011 RT

The cuts listed in "CR SPENDING CUTS TO GO DEEP" February 9th, 2011 - -appear to double count cuts in the DOT, Justice and EPA. The first part of the list says $1.6B from EPA then it lists programs in EPA for cuts of approx $1.044B. I may have missed one of the EPA programs or there may be some in the $1.6B not included in the list. If they are not double counting then the listed cuts in EPA for the remaining 2011 would total $2.644B - this amount would require RIFs and closing some facilities I think (I do not work at EPA I just read various budgets for the comedy) but I am pretty good at budget so it appears to me that the cuts of $2.64B would cost over a $1B in closure and shutdown/RIF costs so the budget in the second half for EPA would result in reduced resources by $3.6B+. Do they have that much in the second half budget or will their budget have to be increased in order to cover the savings?

Fri, Feb 11, 2011

They have no plans to go after entitlements. If they don't go after entitlements, they will not solve the country's critical debt problem. The GOP will lose my vote and I will put a Don't Tread on Me flag on my car. Say what you want about the Tea Party, but they do know the overriding national security threat to the country - DEBT. And entitlements drive the debt. It's truth time.

Fri, Feb 11, 2011

I thought the 100 billion was going to be from the 2010 budget. The president's budget for 2011 is inflated over his 2010 budget numbers.

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