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Politico: Obama will announce a temporary multiyear freeze on discretionary, non-defense spending

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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:23 PM
Original message
Politico: Obama will announce a temporary multiyear freeze on discretionary, non-defense spending
Edited on Mon Jan-25-10 06:54 PM by highplainsdem
http://www.politico.com/blogs/glennthrush/0110/Sources_...

President Obama plans to announce a temporary multi-year freeze on discretionary, non-defense spending in the lead-up Wednesday's State of the Union address, two Hill Democratic sources familiar with the plan tell POLITICO.

The move, intended to blunt the populist backlash against Obama's $787 billion stimulus and an era of trillion-dollar deficits -- and to quell Democratic anxiety over last Tuesday's Massachusetts Senate election -- is projected to save tens of billions, the Democrats said.

The proposal is in line with a plan floated by Sen. Evan Bayh (D-Ind.), a fiscal hawk, who told Bloomberg's Al Hunt last week that there was a fighting chance Obama would propose a freeze in most discretionary spending by the federal government as part of his address.

The president can say in this State of the Union address, Im going to include in my budget a freeze on discretionary spending, Im drawing a line in the sand, and Im going to use my veto pen to enforce that, Bayh said in an interview on Bloomberg Televisions Political Capital with Al Hunt.

The move would likely be welcomed by Blue Dog Democrats and deficit hawks, but party liberals would likely bridle at baselining a wide array of popular domestic spending programs.

The White House didn't respond to a request for comment.

-snip-







ABC has the story now, too:

http://blogs.abcnews.com/politicalpunch/2010/01/preside...

In his budget for Fiscal Year 2011, to be presented on Monday, February 1, President Obama will propose a three-year hard freeze on non-security discretionary spending, to last from 2011 through 2013.

This will save $250 billion over the next decade, senior administration officials told reporters. By 2015, non-security discretionary spending will be at its lowest level as a component of the nations Gross Domestic Product in 50 years.

The announcement will come at a time when the White House and Democrats are trying to deal with voters angry about a dysfunctional Washington, DC, with many concerned about the deficit and out-of-control government spending. The president and his team have said for months that he would address deficits in his State of the Union address, knowing that the massive spending in the Wall Street bailout and stimulus package would make many Americans uneasy, but the upset victory of Sen.-elect Scott Brown, R-Mass., underscored that concern.

Senior administration officials acknowledged that various government officials were already protesting the potential cuts and freezes in their budgets and favored projects, but wouldnt go into detail.

Tune in Monday to see who protests after the budget is released, an official joked.

The base level of non-security discretionary spending for Fiscal Year 2010 is $477 billion. From 2011 through 2013, a senior administration official said, spending will be no higher than that.

The administration is defining security-related discretionary spending which will not be impacted by this freeze as spending related to the Pentagon, the Department of Veterans Affairs, the Department of Homeland Security, and spending related to international affairs.

We are at war and were going to make sure our troops are funded at an adequate level, a senior administration official said.

This category roughly one-seventh of the overall budget, or about 1/3rd of total discretionary spending -- is generally what people think about when they say they want Washington, DC, to rein in spending, a senior administration official said. They dont mean Medicare, Social Security, or defense spending, the official said.

-snip-
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villager Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:26 PM
Response to Original message
1. He definitely *isn't* FDR, is he?
n/t
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DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:28 PM
Response to Reply #1
2. Sadly......... no
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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 09:34 PM
Response to Reply #1
37. No, he isn't.
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bertman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:30 PM
Response to Original message
3. How about a freeze on DEFENSE spending. That's what we need. nt.
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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:32 PM
Original message
+1
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pscot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:50 PM
Response to Original message
16. +10
I'm trying hard to keep the faith. But he isn't making it any easier.
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Bluebear Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:11 PM
Response to Reply #16
20. +100
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Luciferous Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:51 PM
Response to Reply #3
18. Yep.
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uponit7771 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:16 PM
Response to Reply #3
22. +1000
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inna Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 09:02 PM
Response to Reply #3
35. +1, but... "Defense" (more like, "offense") spending is only a fraction

of what is getting "upwardly redistributed" to the banksters (we're talking, literally multiple TRILLIONS). x(
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lib_wit_it Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 11:03 PM
Response to Reply #3
39. +1,000,000,000,000...
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bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:32 PM
Response to Original message
4. Politico tends to be wrong a lot. nt
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Bluebear Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:35 PM
Response to Reply #4
8. 'The White House didn't respond to a request for comment.' - you'd think they would want to clarify!
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bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:16 PM
Response to Reply #8
23. Well, my tendency would be to want to ignore, but ... nt
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Parker CA Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:33 PM
Response to Original message
5. Wasn't this same idea proposed by McCain in the debates and bashed by Obama? Weirder every day. nt
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leftstreet Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:39 PM
Response to Reply #5
9. "How about a spending freeze on everything but defense..."
http://www.huffingtonpost.com/kim-mance/mccains-spendin...

With all the horrible decisions coming out of the McCain/Palin campaign, it's almost like shooting fish in a barrel (or wolves from a helicopter) to point out more failure.

But we shouldn't let McCain get a free-ride on his proposed government spending freeze. If for some fluke of a reason (2000 election, anyone?) McCain wins this thing, his proposed freeze will send us back into the Dark Ages.

During the first debate, McCain's off-the-cuff answer about fixing the ailing economy:
"How about a spending freeze on everything but defense, veteran affairs and entitlement programs."


Some would think after a hot-headed, ill-advised statement like that, the presidential hopeful would try and distance himself -- pretend it never happened.
But instead, he fought back against Barack Obama's previous description of his vast spending freeze, in the final presidential debate saying:
"OK, what -- what would I cut? I would have, first of all, across-the-board spending freeze, OK? Some people say that's a hatchet. That's a hatchet, and then I would get out a scalpel, OK?"

No Senator McCain -- a government spending freeze of "everything but defense, veteran affairs and entitlement programs" is not OK.
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DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:43 PM
Response to Reply #9
11. "everything but defense, veteran affairs and entitlement programs"
So McCain's proposal was actually better than Obama's?

At least McCain wouldnt freeze entitlements.
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slipslidingaway Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:51 PM
Response to Reply #11
17. Very stange :( n/t
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Smashcut Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:54 PM
Response to Reply #9
26. Wow. Who did we elect again?
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marshall Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 11:58 PM
Response to Reply #5
40. I knew it sounded familiar!
We shall see if it actually comes to pass.
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Uzybone Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:34 PM
Response to Original message
6. I guess we will find out tonight or tomorrow
I take Politico with a barrel of salt.
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donco6 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:35 PM
Response to Original message
7. Horrible idea.
Hurts the poor the most. Dries up revenue streams for government vendors. Bad.
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DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:41 PM
Response to Reply #7
10. It really is a stupid idea in the midst of a deep recession
Edited on Mon Jan-25-10 06:41 PM by DJ13
Now is NOT the time to placate the conservatives over spending, now is the time to get money out to Main Street if Obama is serious about a recovery.

Didnt he read the history of the Great Depression and how FDR nearly destroyed the economy by listening to the GOP deficit hawks in the mid 30's when he cut spending?
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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:44 PM
Response to Original message
12. ABC picked this up too, their Political Punch blog, according to Google News results
Edited on Mon Jan-25-10 06:47 PM by highplainsdem
when I looked for the keywords

obama freeze spending

but that page

http://blogs.abcnews.com/politicalpunch/2010/01/preside...

is no longer there.

EDITING - THAT BLOG ENTRY IS BACK.

As the link and headline showed, this will be a 3-year spending freeze.

And this link to a KFSM story says it's "embargoed" and will be released at 9 PM Eastern time

http://www.kfsm.com/sc-dc-obama-middle-class25-20100125...

but the story is there and includes this:

On the soaring federal deficit, which polls show is a major factor in voters' discontent, Obama will announce on Wednesday that the budget blueprint he files next week will contain a "hard freeze" on discretionary spending that lasts through 2013, an effort his advisors liken to the fiscal discipline average families impose on themselves every day.
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Bluebear Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:49 PM
Response to Reply #12
15. Don't trust ABC!!!
Or the Home Shopping Channel, or Sunset Magazine. They never liked Obama to begin with. :silly:
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pscot Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-26-10 02:24 PM
Response to Reply #15
41. Sunset Magazine?
Is their advice on rhodedendron varieties suspect?
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laughingliberal Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:48 PM
Response to Original message
13. Well, if it's in line with a plan floated by Evan Bayh, need we say more?
BOHICA
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slipslidingaway Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 06:49 PM
Response to Original message
14. CNN just reporting this as well - must keep the war machine. n/t
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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:10 PM
Response to Original message
19. .
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TCJ70 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:15 PM
Response to Original message
21. This does nothing to refocus the priorities...
...of our government. Not that Obama said he would refocus them, it'd just be nice for a change.
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marshall Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:31 PM
Response to Original message
24. Beat 'em at their own game?
Sounds like a strange new world.
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Mythbuster Donating Member (269 posts) Send PM | Profile | Ignore Mon Jan-25-10 07:42 PM
Response to Reply #24
25. I think that's exactly the point...
Tell them all "fine... you want to curb spending? Here it is!" Then let any of the GOP oppose it, and when they do, burn them at the stake of hypocrisy.
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Smashcut Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 07:57 PM
Response to Original message
27. NYT has the story now: "Obama Seeks Freeze on Many Domestic Programs"
Edited on Mon Jan-25-10 07:59 PM by Smashcut
WASHINGTON President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday.

The freeze would cover the agencies and programs for which Congress allocates specific budgets each year, from air traffic control and farm subsidies to education, nutrition and national parks.

But it would exempt the Pentagon, foreign aid, Veterans Administration and homeland security budgets, as well as the entitlement programs that make up the biggest and fastest-growing part of the federal budget: Medicare, Medicaid and Social Security.


http://www.nytimes.com/2010/01/26/us/politics/26budget....

I guess the latter 3 are being handled already by the "bipartisan commission" he endorsed.

Edit: also from the article:

The payoff in budget savings would be small relative to the deficit: The estimated $250 billion in savings over 10 years is less than 5 percent of the $9 trillion to $10 trillion in additional debt the government is expected to accumulate over that time.


So how many domestic programs to help the people will be starved to death so we can continue funding the war machine while appearing to "do something" about our debt problem?
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Bluebear Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 08:12 PM
Response to Reply #27
29. 'But it would exempt the Pentagon' - but of course.
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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 08:34 PM
Response to Reply #29
30. Of course.
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krabigirl Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 08:41 PM
Response to Reply #27
31. wow...how is this ANY different from a Republican?!
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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 08:11 PM
Response to Original message
28. Both Keith and Rachel disapprove of this plan.
Rachel pointed out that even an introductory economics class would show that this is NOT the way to get out of a recession.

The term she's using for this is "stupid Hooverism."
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Generator Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 08:46 PM
Response to Reply #28
32. Ah they're just mediawhores, doncha know
Trust your president, young man. Would you rahter have McCain-? BWHAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

Hollow words now. We got mandates, we got budget freeze, we got war.
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Bluebear Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 09:03 PM
Response to Reply #28
36. Keith & Rachel just want PRESIDENT PALIN!!!!1
Poutrage! :silly:
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PA Democrat Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 08:47 PM
Response to Original message
33. Cue Archie and Edith Bunker singing Those Were the Days
Boy the way Glen Miller played
Songs that made the hit parade.
Guys like us we had it made,
Those were the days.

And you knew who you were then,
Girls were girls and men were men,
Mister we could use a man
Like Herbert Hoover again.

Didn't need no welfare state,
Everybody pulled his weight.
Gee our old LaSalle ran great.
Those were the days.


http://www.youtube.com/watch?v=0d8FTPv955I
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inna Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 08:50 PM
Response to Original message
34. KR. Here's a sister thread btw, I saw that one first, before I saw yours, and reacted there already:
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highplainsdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 10:29 PM
Response to Reply #34
38. Thanks for the link!
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