Fiscal Appropriations: Republicans Insist on Spending Cuts

Febuary 08, 2011                

                                  

By Williams Ekanem

Senate Minority leader, Mitch McConnell led a group of Republican Senators on Tuesday to press for cut in government spending even as Congress faces an upcoming clash over 2011 fiscal appropriations.

In particular, McConnell wondered why the Obama administration is proposing to spend $3.2 trillion even when income stands at $2.2 trillion.

Republicans have made cutting government spending an overwhelming priority in the 112^th Congress.

At the stake-out on Tuesday led by the minority leader, Republican Senators insist that there must be a cut in spending to create jobs.

All the Republican senators at the briefing spoke with one voice of the urgent need for the government to slash the 2011 fiscal spending by a considerable amount.

The Republicans fell back on their Study Committee which a fourth night ago amongst others recommended that:

FY 2011 CR Amendment: Replace the spending levels in the FY 2011 continuing resolution (CR) with non-defense, non-homeland security, non-veterans spending at FY 2008 levels. The legislation will further prohibit any FY 2011 funding from being used to carry out any provision of the Democrat government takeover of health care, or to defend the health care law against any lawsuit challenging any provision of the act., $80 billion savings.

Discretionary Spending Limit, FY 2012-2021: Eliminate automatic increases for inflation from CBO baseline projections for future discretionary appropriations. Further, impose discretionary spending limits through 2021 at 2006 levels on the non-defense portion of the discretionary budget, $2.29 trillion savings over ten years.

Federal Workforce Reforms: Eliminate automatic pay increases for civilian federal workers for five years. Additionally, cut the civilian workforce by a total of 15 percent through attrition. Allow the hiring of only one new worker for every two workers who leave federal employment until the reduction target has been met.

(Savings included in above discretionary savings figure).

"Stimulus" Repeal: Eliminate all remaining "stimulus" funding. $45 billion total savings.

Eliminate federal control of Fannie Mae and Freddie Mac. $30 billion total savings.

Repeal the Medicaid FMAP increase in the "State Bailout" (Senate amendments to S. 1586). $16.1 billion total savings.

In the spirit of bipartisan politics however, President Obama has responded offering some proposals that might appeal to the Republicans, who control the House of Representatives. These include a corporate tax cut, while closing existing loopholes, and reform of the tax code. He also threatened to veto lawmakers' pet spending projects.