A Better Budget for All: Saving Our Economy and Helping Those in Need

Posted by on March 06, 2011

Report: millions victimized by planned federal budget cuts

At a time when 14 million people are out of work, the House approach to the federal budget fails those who are struggling most, according to a new report issued by the Coalition on Human Needs.

A Better Budget for All: Saving Our Economy and Helping Those in Need draws a sharp contrast between the White House budget for next fiscal year and the House plan for the remainder of this year, although it also notes serious concerns with elements of the president’s budget. It shows how the proposed budget cuts would affect individuals and the country’s fragile economic recovery.

The House plan includes the largest cuts, on an annualized basis, in domestic appropriations funding in history.

Threats of an imminent government shutdown have been allayed in recent days as Democrats reacted favorably to a Republican plan that would keep agencies operating past March 4 while making a first down payment toward a larger budget deal.

The Republican proposal would allow a temporary extension of the existing federal spending plan for two weeks, through March 18th, to try to resolve demands for more than $60 billion in spending cuts, all concentrated in the second half of this fiscal year, included in the proposal already adopted by the House.

A first installment of $4 billion in savings would be part of the deal now and Republicans have said they will insist on $2 billion more in cuts for each additional week the talks continue past the new deadline.

The CHN report argues that the biggest deficit-reduction measure is an expanding economy, with more people working and paying taxes.  The report also calls on the Obama Administration and Congress to look at the entire federal budget — including revenues, tax loopholes, and military spending — not just domestic annual appropriations.

“Cutting only from a portion of domestic spending that constitutes less than a fifth of our total budget simply cannot solve our federal deficit and debt, but it will cause enormous pain and cripple our economic future,” said Deborah Weinstein, executive director of the Coalition on Human Needs.

To view the report, go here.

http://www.chn.org/pdf/2011/BetterBudget4AllReport.pdf