What's going on with the budget?

Posted on 04/04/2011 @ 06:00 PM

Tags: Budget

Right now, both the fiscal year 2011 and 2012 are being negotiated in separate, parallel processes. We’re now six months into FY2011, and Congress has not decided on spending, instead going from temporary resolution to the next. These “continuing resolutions,” which extend federal funding as-is for as few as 2 weeks to as long as several months, give each party more time to negotiate with hopes that they’ll settle on a budget that reflects its fiscal priorities. In the meantime, programs and services that rely on federal money, and the people that depend on them, are on shaky ground.

On Friday, the most recent three-week CR expires. Current negotiations are around a tentative agreement to cut spending by around $33 billion, which is basically a halfway point between the Republicans’ initial goal of cutting more than $61 billion and Democrats wanting to keep spending at 2010 levels.

Unfortunately, there are a bunch of policy “riders” (non-spending-oriented policy amendments) attached to the bill, many of which are pretty controversial. They include blocking funding for the health care overhaul and defunding National Public Radio and Planned Parenthood. Last week, President Obama said that “neither Democrats nor Republicans are going to get 100% of what they want. They’re going to have to compromise.” And if they don’t come up with a compromise by Friday night, the government will be shut down until an agreement is reached.

Simultaneously, budget negotiations are happening for next year’s budget, which begins October 1. Appropriations committees have started hosting hearings to discuss how much should be spent where, and will continue to meet before the spring recess in two weeks. As President Obama released his budget proposal in February, this week, Rep. Paul Ryan, Chair of the House Budget Committee will release his budget. It’s expected to propose major changes (reductions, mostly) in spending, especially to entitlement programs like Medicare, Medicaid and Social Security, and also to be a greater statement on Republicans’ fiscal priorities. Rep. Ryan said last week that it will reduce projected deficits by more than $4 trillion over the next 10 years.

We’re pretty concerned about all of the proposed cuts to human needs programs. Rep. Ryan has made it clear, for example, that his plan slashes Medicare pretty deeply, which will endanger or even eliminate health care benefits for older Americans. Now is not the time to take away services that Americans depend on. As the budget drama continues to unfold over the next couple weeks, we're working really hard to protect poverty programs and encourage Congress to look at other places to cut. Say, the Pentagon!

See ten reasons why we should cut the Pentagon budget, and who's calling for it.