Government: Operation Offset - a Detailed Analysis
The Republican Study Committee has a paper outlining their proposed budget cuts to pay for the Katrina relief efforts. I had to do an analysis of it for my job, and let me tell you, whoever compiled this is nuts.
Dubbed "Operation Offset," (seriously, I can't make stuff up that silly) it is estimated that the plan could save over $949 billion over 10 years.
They sort their proposed cuts by Title, which is an appropriations law thing which approximately 18 people in this country understand. This is an obvious attempt to obfuscate the true impact of the proposed cuts. So I re-sorted their cuts by category: Health Care, Anti-Poverty, Environmental Protection, Defense, etc. And low and behold, it turns out that the Republican Study Committee wants to cut billions of dollars from the poor and elderly and a token amount from Defense, Farm Subsidies, and Corporate Subsidies.
What follows is my chart, a brief analysis, and some commentary...
Dubbed "Operation Offset," (seriously, I can't make stuff up that silly) it is estimated that the plan could save over $949 billion over 10 years.
They sort their proposed cuts by Title, which is an appropriations law thing which approximately 18 people in this country understand. This is an obvious attempt to obfuscate the true impact of the proposed cuts. So I re-sorted their cuts by category: Health Care, Anti-Poverty, Environmental Protection, Defense, etc. And low and behold, it turns out that the Republican Study Committee wants to cut billions of dollars from the poor and elderly and a token amount from Defense, Farm Subsidies, and Corporate Subsidies.
What follows is my chart, a brief analysis, and some commentary...
In millions of dollars - so add six zeroes to the end of each number.
As you can see, the proposed cuts come mostly out of Health Care, Anti-Poverty programs, Research, and Environmental Protection. Notable cuts include:
- Eliminating Subsidized Loans to Graduate Students
- Eliminate Fiscal Assistance to District of Columbia
- Auditing the (poverty level) recipients of the Earned Income Tax Credit
- Increasing Medicaid Co-payments
- Increase Medicare Premiums
- Lower funding for the Global AIDS Initiative
- Lower funding for the Peace Corps
- Lower funding for Amtrak
- Eliminate funding for next generation high-speed rail service
- Eliminate the Minority Business Development Agency
- Eliminate the State grants for Drug-Free Schools
- Eliminate public funding of Presidential elections
- Eliminate funding for the Corporation for Public Broadcasting (PBS)
- Paying immigrant wages for government contracting (Davis-Bacon Coverage)
- Eliminate funding for the National Endowment for the Arts
- Lower funding for the Centers for Disease Control
- Eliminate funding for various forms of renewable energy research
90% of the cuts are scheduled to come in budget years 2-10. As every Congressman knows, spending cuts only occur if the program is eliminated or if the cut is for the next fiscal year. Five and ten year budget projections are worthless - unless the cut permanently alters a funding formula (which their proposals do in a few instances - such as screwing the poor and elderly by raising their health care costs).
And if you dig into the numbers, you'll notice that cuts to defense and government pork are relatively small and temporary compared to the permanent, institutional cuts to health care, anti-poverty programs, mass transit, environmental programs, etc.
The most insulting accounting chicanery is the "Delay the Medicare Prescription Drug Bill for one year," which is not a spending cut at all, but rather just one year delay in massive spending, which accounts for $30 billion worth of their proposed "cuts."
The plan is also entirely devoid of "revenue side" increases - i.e., delaying the President's tax cuts on the top income brackets, or on inherited estates, etc.
Having said that, the plan does have a few laudable cuts, such as skipping this year's automatic annual pay raise for Congressmen and Senators, and some minor cuts to corporate subsidies.
And the quote on the cover is amusing:
"Give us a quiet room, copies of the spending bills, a box of red pencils, and watch what happens."-Constituent from New Mexico
I think that pretty much sums up the perspective of a lot of Americans. Government = Bad. Of course, the moment something needs to be done - a road, a hospital, a school, a disaster - well then, we should have been prepared for it years ago. Or if their job, community, or state is somehow helped by the program. Sigh.
Here's the my full break down by category, for the interested. Again, these are millions of dollars, so add six zeros to the end of each number.
| Republican Study Committee - "Operation Offset" Cuts by Category | |||
| Description | 2006 | 5-Yr. Savings | 10-Yr. Savings |
| Health Care | |||
| Delay the Medicare Prescription Drug Bill for One year | -$30,800 | -$30,800 | -$30,800 |
| Reduce Medicaid Administrative Spending | -$600 | -$4,230 | -$12,860 |
| Increase Allowable Co-pays in Medicaid | -$90 | -$1,970 | -$7,730 |
| Block Grant Medicaid Acute Services | -$2,300 | -$44,000 | -$225,000 |
| Increase Medicare Part B Premium from 25% to 30% | -$4,650 | -$33,500 | -$84,770 |
| Restructure Medicare's Cost-Sharing Requirement | -$4,750 | -$34,230 | -$87,460 |
| Impose a Home Health Co-payment of 10% | -$1,470 | -$11,800 | -$31,480 |
| Eliminate Teen Funding Portion of Title X Family Planning | -$95 | -$511 | -$1,322 |
| End the Redistribution of Unused Federal Funds from SCHIP | -$20 | -$350 | -$1,140 |
| Eliminate Childless Adult Coverage in SCHIP | n/a | -$330 | -$660 |
| Eliminate Funding for Penile Implants Under Medicare | n/a | -$4 | -$8 |
| Level Funding for Community Health Centers | -$100 | -$538 | -$1,392 |
| Total Health Care Cuts | -$44,875 | -$162,263 | -$484,622 |
| Anti Poverty Programs | |||
| Eliminate State and Community Grants for Energy Conservation | -$36 | -$223 | -$479 |
| Drop Wealthy Communities from CDBG | -$837 | -$4,330 | -$9,064 |
| Convert Rural Community Advancement Program to State Revolving Funds | -$12 | -$194 | -$4,517 |
| Eliminate the Neighborhood Reinvestment Corporation | -$116 | -$600 | -$1,257 |
| Eliminate the Community Development Financial Institutions Fund | -$52 | -$270 | -$566 |
| Eliminate the Economic Development Administration | -$201 | -$1,081 | -$2,797 |
| Eliminate the Minority Business Development Agency | -$30 | -$161 | -$417 |
| Eliminate the Even Start Program | -$114 | -$592 | -$1,238 |
| Eliminate Funding for the National and Community Service Act | -$560 | -$3,000 | -$6,480 |
| Tie Rent Subsidies for One Person to Cost of Efficiency Apartments | -$62 | -$894 | -$3,146 |
| Eliminate School Lunches for Students Above 350% of Poverty | -$125 | -$3,150 | -$6,690 |
| Remove Ceiling for Collecting Overpayments from SSI | -$70 | -$425 | -$920 |
| Verify Income of Earned Income Tax Credit Participants | -$8,500 | -$42,500 | -$85,000 |
| Eliminate Rural Empowerment Zone Grant | -$10 | -$54 | -$139 |
| Eliminate the Denali Commission | -$3 | -$16 | -$42 |
| Eliminate Native Hawaiian Funding | -$40 | -$215 | -$557 |
| Impose a Fee on the GSEs Investment Portfolio | -$1,624 | -$8,762 | -$19,885 |
| Require GSEs to Register with the SEC and Pay Fees | -$490 | -$1,250 | -$2,710 |
| Raise the Threshold for Davis-Bacon Coverage | -$200 | -$1,025 | -$2,130 |
| Total Anti-Poverty Cuts | -$13,082 | -$68,742 | -$148,034 |
| Scientific Research | |||
| Cancel NASA's New Moon/Mars Initiative | -$1,493 | -$11,511 | -$44,042 |
| Eliminate the Science to Achieve Results Program | -$90 | -$472 | -$1,007 |
| Reduce Funding for the Centers for Disease Control | -$1,797 | -$9,668 | -$25,006 |
| Reduce Funding for the Agriculture Research Service | -$62 | -$334 | -$863 |
| Eliminate the Applied Research for Renewable Energy Sources Program | -$314 | -$1,959 | -$4,202 |
| Eliminate the Research Initiative for Future Agriculture Systems | -$300 | -$1,100 | -$2,100 |
| Eliminate the Advanced Technology Program | -$139 | -$721 | -$1,523 |
| Total Scientific Research Cuts | -$4,195 | -$25,765 | -$78,743 |
| Environmental Protection | |||
| Scale Back the Conservation Security Program | -$58 | -$2,216 | -$6,676 |
| Limit Future Enrollment in the Conservation Reserve Program | -$14 | -$1,910 | -$5,285 |
| Eliminate the National Parks Heritage Areas and Statutory Aid | -$26 | -$134 | -$280 |
| Eliminate Federal Grants for Wastewater Infrastructure | -$950 | -$9,899 | -$23,332 |
| Eliminate the Energy Star Program | -$75 | -$391 | -$835 |
| Eliminate the Essential Air Service | -$103 | -$525 | -$1,075 |
| Reduce Bureau of Land Management Construction | -$6 | -$32 | -$83 |
| Reduce Fish and Wildlife Construction | -$26 | -$140 | -$362 |
| Eliminate Funding for the Forest ServiceÂs Economic Action Program | -$10 | -$54 | -$139 |
| Reduce Funds for the Water Quality Cooperative Agreement | -$15 | -$81 | -$209 |
| Reduce Funds for Forest Service Capital Improvements | -$60 | -$323 | -$835 |
| Reduce Funds for the NCRS Operations | -$26 | -$140 | -$362 |
| Reduce Funds for Waste Disposal Grants | -$116 | -$624 | -$1,614 |
| Reduce DOE Environmental Management | -$400 | -$2,152 | -$5,566 |
| Level Funding DOE Departmental Administration Funding | -$15 | -$81 | -$209 |
| Eliminate the Clean Coal Technology Program | -$50 | -$259 | -$543 |
| Eliminate the FreedomCAR Program | -$163 | -$845 | -$1,774 |
| Eliminate the Hydrogen Fuel Initiative | -$183 | -$985 | -$2,547 |
| Total Environmental Protection Cuts | -$2,296 | -$20,791 | -$51,726 |
| Transportation | |||
| Repeal the Highway Earmarks in TEA-LU | -$25,000 | -$25,000 | -$25,000 |
| Eliminate the Appalachian Regional Commission | -$39 | -$210 | -$543 |
| Reduce Funding for the Airport Improvement Program | -$600 | -$3,228 | -$8,349 |
| Level Funding for FAA Operations | -$329 | -$1,770 | -$4,578 |
| Total Transportation Cuts | -$25,968 | -$30,208 | -$38,470 |
| Foreign Aid | |||
| Eliminate US Subscriptions to the European Bank | -$36 | -$184 | -$386 |
| Reduce Economic Assistance to Egypt | -$12 | -$400 | -$1,200 |
| Eliminate Millennium Challenge Accounts | -$1,750 | -$9,415 | -$24,352 |
| Level Funding for Peacekeeping Operations | -$93 | -$500 | -$1,294 |
| Eliminate International Fund for Ireland | -$14 | -$75 | -$195 |
| Level Funding for Global AIDS Initiative | -$546 | -$2,938 | -$7,598 |
| Level Funding for Inter-American Foundation | -$2 | -$11 | -$28 |
| Level Funding for the African Development Foundation | -$2 | -$11 | -$28 |
| Level Funding for the Peace Corps | -$8 | -$43 | -$111 |
| Reduce USAID Operating Expenses | -$57 | -$307 | -$793 |
| Level Funding for the International Development Assoc. | -$107 | -$576 | -$1,489 |
| Level Funding for Asian Development Bank | -$16 | -$86 | -$223 |
| Eliminate Attaché Positions in the Foreign Agricultural Service | -$46 | -$247 | -$640 |
| Total Foreign Aid Cuts | -$2,689 | -$14,793 | -$38,337 |
| Education | |||
| Eliminate Subsidized Loans to Graduate Students | -$840 | -$4,170 | -$8,555 |
| Eliminate the National Science Foundation Math and Science Program | -$188 | -$973 | -$2,036 |
| Eliminate the Administration Fees to Schools | -$144 | -$744 | -$1,557 |
| Eliminate the Leveraging Educational Assistance Program | -$67 | -$345 | -$722 |
| Eliminate Federal Funding for the Corporation for Public Broadcasting | -$400 | -$2,152 | -$5,566 |
| Eliminate Funding for the National Endowment for the Arts | -$126 | -$678 | -$1,753 |
| Eliminate Funding for National Endowment for Humanities | -$143 | -$769 | -$1,990 |
| Reduce Funds for Bureau of Indian Affairs School Construction | -$36 | -$194 | -$501 |
| Reduce Funds for Cooperative State Research and Education | -$110 | -$592 | -$1,531 |
| Reduce Funding for Department of Education Administration | -$6 | -$28 | -$57 |
| Total Education Cuts | -$2,060 | -$10,645 | -$24,268 |
| Civil Service & Military Personell | |||
| Base New Federal Retiree Health on Length of Service | -$130 | -$1,560 | -$6,330 |
| Update the Formula Used for Federal Pension | -$50 | -$1,305 | -$5,170 |
| Charge Federal Employees for Parking | -$140 | -$720 | -$1,540 |
| Eliminate Legal Services Corporation | -$331 | -$1,781 | -$4,606 |
| United States Postal Service Foregone | -$43 | -$231 | -$598 |
| Close the Domestic Dependent School System | $18 | -$126 | -$788 |
| Introduce HSAs as a TRICARE Option | -$20 | -$807 | -$2,367 |
| Total Civil Service & Military Personell Cuts | -$696 | -$6,530 | -$21,399 |
| Mass Transportation | |||
| Reduce Federal Subsidies for Amtrak | -$250 | -$1,250 | -$2,500 |
| Eliminate the Next Generation of High-Speed Rail | -$20 | -$105 | -$220 |
| Eliminate the New Starts Transit Program | -$1,204 | -$6,055 | -$12,200 |
| Total Mass Transportation Cuts | -$1,474 | -$7,410 | -$14,920 |
| Government Administration | |||
| Eliminate Fiscal Assistance to District of Columbia | -$154 | -$800 | -$1,675 |
| Require IRS to Deposit Fees Collected by Treasury | -$91 | -$473 | -$989 |
| Eliminate Presidential Election Campaign Fund | -$55 | -$275 | -$550 |
| Decline Member Pay Raise | -$2 | -$9 | -$24 |
| Level Funding for Treasury Departmental Offices | -$31 | -$167 | -$432 |
| Level Funding for the Federal Building Fund | -$552 | -$2,970 | -$7,681 |
| Level Funding for OMB | -$9 | -$48 | -$125 |
| Level Funding for GSA | -$108 | -$581 | -$1,500 |
| Eliminate Money-Losing Timber Sales | -$130 | -$710 | -$1,550 |
| Total Government Administration Cuts | -$1,132 | -$6,033 | -$14,526 |
| Corporate Subsidies | |||
| Eliminate the Export-Import Bank and OPIC | -$84 | -$616 | -$1,507 |
| Limit the Repayment Period of Export Credit Guarantees | -$147 | -$735 | -$1,470 |
| Eliminate the ITA's Trade Promotion Activates | -$401 | -$2,125 | -$4,579 |
| Eliminate the Hollings Manufacturing Extension Partnerships | -$110 | -$573 | -$1,210 |
| Repeal the Continued Dumping and Subsidy Offset Act | -$1,300 | -$3,000 | -$4,500 |
| Eliminate the Market Access Program | -$3 | -$231 | -$531 |
| Eliminate the Export Enhancement Program | -$28 | -$151 | -$390 |
| Total Corporate Subsidy Cuts | -$2,073 | -$7,431 | -$14,187 |
| Anti-Drug | |||
| Level Funding for Andean Counter-Drug Initiative | -$9 | -$48 | -$125 |
| Eliminate State Grants for Safe and Drug-Free Schools | -$444 | -$2,298 | -$4,810 |
| Eliminate the Federal Anti-Drug Advertising | -$122 | -$631 | -$1,320 |
| Eliminate High Intensity Drug Trafficking Area Program | -$227 | -$1,221 | -$3,159 |
| Total Anti-Drug Cuts | -$802 | -$4,198 | -$9,414 |
| Defense | |||
| Speed the Sale of Old and Excess Naval Vessels | -$23 | -$178 | -$444 |
| Consolidate the Military Exchanges | -$76 | -$796 | -$1,882 |
| Reduce DOD Administrative Accounts | -$10 | -$50 | -$100 |
| Restrict First-Responder Grants to At-Risk Communities | -$630 | -$3,260 | -$6,826 |
| Total Defense Cuts | -$739 | -$4,284 | -$9,252 |
| Farm Subsidies | |||
| Reduce Farm Payment Acreage by 1% | -$31 | -$452 | -$941 |
| Eliminate Payments to Socially Disadvantaged Farmers and Ranchers | -$6 | -$32 | -$83 |
| Eliminate Citrus Canker Compensation | -$10 | -$54 | -$139 |
| Level Funding for Agriculture Building and Facilities | -$20 | -$108 | -$278 |
| Eliminate the Foreign Market Development Program | -$24 | -$160 | -$335 |
| Total Farm Subsidies Cuts | -$91 | -$806 | -$1,776 |
| Total Proposed Spending Cuts | -$102,172 | -$369,899 | -$949,674 |
I had to make some judgment calls categorizing a few of the proposed cuts. But I think that the main thrust of the document is clear.
Labels: Government
posted by SomeGuyInDC @ 6:29 AM
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