Posted by: arnegrim | April 11, 2011

Did Dems come out on top in budget compromise?

“A close look at the government shutdown-dodging agreement to cut federal spending by $38 billion reveals that lawmakers significantly eased the fiscal pain by pruning money left over from previous years, using accounting sleight of hand and going after programs President Barack Obama had targeted anyway.

Such moves permitted Obama to save favorite programs – Pell grants for poor college students, health research and “Race to the Top” aid for public schools, among others – from Republican knives.

The full details of Friday’s agreement weren’t being released until late Monday when it was officially submitted to the House. But the picture already emerging is of legislation financed with a lot of one-time savings and cuts that officially “score” as savings to pay for spending elsewhere, but that often have little to no actual impact on the deficit.

As a result of the legerdemain, Obama was able to reverse many of the cuts passed by House Republicans in February…”

http://hosted.ap.org/dynamic/stories/U/US_SPENDING_SHOWDOWN?SITE=MAHYC&SECTION=HOME&TEMPLATE=DEFAULT

 

UPDATE:

“The big news today is that the $38.5 billion in budget cuts announced with such fanfare on Friday night mostly aren’t real. A good deal of it involves money from previous years and previous budgets that hasn’t actually been spent. As the AP puts it, the budget deal is

financed with a lot of one-time savings and cuts that officially ‘score’ as savings to pay for spending elsewhere, but that often have little to no actual impact on the deficit…cuts to earmarks, unspent census money, leftover federal construction funding, and $2.5 billion from the most recent renewal of highway programs that can’t be spent because of restrictions set by other legislation. Another $3.5 billion comes from unused spending authority from a program providing health care to children of lower-income families.

The total amount actually cut appears to be $ somewhere between8 and $14.7 billion.”

http://www.commentarymagazine.com/2011/04/12/government-shutdown-its-not-over-yet/?utm_campaign=twitter&utm_medium=twitter&utm_source=twitter

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