|
February 14, 2011
OMB Director
Lew Describes FY12 Budget as Painful
The Obama Administration released its
$3.73 trillion Fiscal Year 2012 (FY12) Budget Proposal this
morning. Despite reducing the deficit by over $1 trillion over
the next 10 years, Republicans roundly criticized the proposal as
maintaining the status quo.
Highlights from the President's FY12 Budget include:
- $1.1 trillion in deficit reduction
over 10 years, two-thirds from spending cuts;
- Five-year non-security discretionary
spending freeze;
- Over 200 terminations and reductions,
resulting in an excess of $33 billion in savings;
- New/expanded investments of $148
billion in Research & Development funding, funding to train
100,000 new science and math teachers, and $50 billion up-front
investment in infrastructure;
- Creates a National Infrastructure Bank
to support projects of national importance; and
- Makes targeted cuts to popular
programs:
- $300 million cut to Community
Development Block Grant;
- $2.5 billion cut to the Low-Income
Heating and Energy Partnership;
- $125 million cut to the Great Lakes
Restoration Initiative;
- $1 billion cut in grants to large
airports; and
- $950 million cut to state revolving
funds for water treatment plants.
While significant, the unveiling of
the FY12 Budget will share the spotlight this year with the House's
consideration of its FY11 Continuing Resolution (CR) to fund the
federal government for the remainder of the current fiscal year
(through September 30).
Early last week, the House Budget Committee presented a proposal to
cut $74 billion from the President's FY11 Budget request, but that
number did not satisfy newly-elected conservative members that helped
the GOP to its landslide victory last November.
Instead, by the end of last week, a revised proposal was put forth by
leadership calling for $100 billion in cuts, a figure that was
prominent in many Republican campaigns last year.
The House will spend most of this week considering the FY11 CR, while
the Senate waits for the House in order to begin negotiations for
funding levels for the last seven months of this fiscal year.
An agreement is not expected before the current CR expires on March
4, leading to at least one short-term CR to ensure funds continue to
flow to federal agencies.
Conservative Republicans have said they do not want a government
shutdown, but have refused to rule it out if they feel negotiations
with the Senate are not progressing positively.
If you have
any questions concerning these issues, please contact Chris Wagner at
202.772.0924 or cwagner@clarkhill.com.
|
