Government

White House Orders Fed Agencies to Cut Budgets…By ‘At Least’ 5 Percent

White House Asks Federal Agencies to Cut BudgetsWASHINGTON (The Blaze/AP) — It’s a microcosm of the budget battling that has consumed Congress all year: The Obama administration wants federal agencies to save money while Republicans push for additional savings to take a substantial bite out of the government’s towering pile of IOUs.

With Americans voicing their urge to see the nation become more fiscally sound and with the realities painting a stark picture should expenditures not be curbed, this decision will likely appease some budget hawks. That said, the push for entitlement reform is still sure to follow.

White House budget chief Jacob Lew has ordered agency heads to submit spending plans for the upcoming budget at least 5 percent below this year’s levels. He also wants them to propose ways to trim a total of at least 10 percent of their spending.

Michael Steel, a spokesman for House Speaker John Boehner, R-Ohio, said Thursday that Lew’s directive was a good way to start finding spending cuts that are required under the recent debt-ceiling agreement between the two sides.

“But the White House must get serious about real structural reform of our entitlement programs if we’re going to get our debt under control to help our economy grow and create jobs,” Steel said, referring to huge and fast-growing benefit programs like Social Security and Medicare that help drive annual deficits skyward.

White House Asks Federal Agencies to Cut Budgets

White House Budget Chief Jack Lew

Lew’s letter did not rule out, or even address, the possibility of finding savings from benefit programs. But Steel’s remark pointed directly at the major fault line that has blocked a sweeping debt-cutting deal between the two parties: Democrats have resisted paring benefits from Social Security, Medicare and Medicaid, while Republicans have refused to consider tax increases.

The Obama administration has asked agencies in years past to propose similar savings. But Lew’s order comes just two weeks after Obama and congressional Republicans ended an epic debt ceiling battle that has left both sides eager to demonstrate a willingness to trim red ink ahead of a fierce autumn battle over the economy and the debt and just as the 2012 presidential and congressional elections approach.

By requesting two sets of potential savings from agencies, Lew is moving toward fulfilling the debt-ceiling deal, which created a series of annual spending targets and would save tens of billions of dollars a year.

“By providing budgets pegged to these two scenarios, you will provide the president with the information to make the tough choices necessary to meet the hard spending targets in place and the needs of the nation,” Lew wrote to agency heads.

The American Federation of Government Employees, which represents more than 625,000 federal workers and employees of the District of Columbia, also jumped into the fray.

In a written statement, national president John Gage said the cuts “mean just one thing: more job destruction in the midst of a jobs crisis.” He said that with millions of Americans already unemployed or too discouraged to seek work, “why on earth would the administration be trying to dig an even deeper hole?”

The spending that Lew ordered federal agencies to trim will consume more than $1 trillion of this year’s $3.8 trillion federal budget. The rest of the budget covers benefit programs and interest payments on the government’s $14.3 trillion debt.

Lew’s letter suggests that savings can be found by eliminating unneeded programs and making agencies more efficient. It also invites agency heads to propose initiatives that would spark economic growth.

“Finding the savings to support these investments will be difficult, but it is possible,” Lew wrote.

In a White House blog on Thursday, Lew said his request for savings was designed to help the administration make decisions about living within overall spending limits. He said it did not mean every agency will necessarily see budget cuts.

Republicans say tax and spending cuts are needed to blow life back into the flagging economy and create jobs. Obama plans to unveil a jobs proposal next month mixing tax reductions, construction initiatives and deficit reduction.

When Congress returns from its summer recess in September, also generating political heat will be the special bipartisan panel of 12 lawmakers that the debt-ceiling agreement created to try to craft a compromise $1.5 trillion, 10-year debt reduction package.

As another part of the debt-cutting deal, the two sides agreed to a separate $900 billion in 10-year savings from agency budgets. The details of those cuts will have to be worked out every year, but they will be evenly divided between national security and domestic programs.

Earlier this year, Obama and Congress also battled down to the wire over spending cuts and came within hours of forcing a partial government shutdown. In the end, they agreed to pare agency spending by $38 billion.

Lew asked agency chiefs for the two spending scenarios as the administration plans for the 2013 budget year, which begins in October 2012. That budget will be released early next year.

Comments (98)

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  • Cynic-clinic
    Posted on August 19, 2011 at 8:53am

    It is about time that the Federal employee unions took part in saving their own jobs. Instead of complaining that they will lose their jobs through budget cuts, they should be pro-active before it gets to that point and use their collective power to help stop outragous, out-of-control government spending.

    If government stopped spending money (they don’t have) on vote-buying schemes and stupid programs (like million dollar TURTLE BRIDGES over highways), federal worker jobs and pay would be a lot safer.

    More federal spending=fewer federal jobs. Get it?

    Report Post »  
    • Gonzo
      Posted on August 19, 2011 at 8:56am

      Well stated Cynic. I am in full agreement.

      Report Post » Gonzo  
    • Snowleopard {gallery of cat folks}
      Posted on August 19, 2011 at 9:03am

      Indeed Cynic, well said.

      If Mr Obama was serious in the case of spending cuts, he would order all the departments to cut across the board 15% from the budget of this year with no more growth planned for future years to come…and not just “propose ways” to make cuts.

      Report Post » Snowleopard {gallery of cat folks}  
    • The_Almighty_Creestof
      Posted on August 19, 2011 at 9:18am

      Anyone want to bet we soon hear of programs going on behind the scenes…such as when we sold weapons to fund the Contra’s to keep it off the books?

      You know these guys are not going to care if the cookie jar is empty, they’ll just find another way to carry out their agendas.

      Report Post »  
    • turkey13
      Posted on August 19, 2011 at 9:40am

      Wait – lets back up and cancell the automatic 8% increase that all the agencies have and then cut 5%. Then you will actuall be talking of some real money.

      Report Post »  
    • loriann12
      Posted on August 19, 2011 at 9:53am

      They could cut the number of staff Michelle has. They give about $500,000 for Representatives for staff, and even more for Senators.

      Report Post »  
    • citizen32908
      Posted on August 19, 2011 at 10:11am

      Very much indeed. It seems that some among our population can not quite connect those dots.

      Report Post » citizen32908  
    • inblack
      Posted on August 19, 2011 at 11:07am

      You have to ask WHY Captain Communism would call for cuts.

      Simple – he’s spending so fast he will hit the debt ceiling again before the elections.

      Report Post »  
    • LittleBigMouth
      Posted on August 19, 2011 at 11:27am

      Retired on 52% salary after 30 years… I used to be one of the few who would tell everyone in the workplace to look for cheeper ways to do the work. As the workplace became more Progressive and the union gained more power, I was looked at as a nut. The unions in fed, state and local are doing the employees a disservice. The public is turning on them and the public is correct to do so.
      The Progressive crap in the workplace has changed the employee – they no longer care and feel the people owe them a paycheck.

      Report Post » LittleBigMouth  
    • GIDDIONKANE
      Posted on August 19, 2011 at 3:10pm

      5% really what are they going to go without paperclips this week? how about 30% or more make them feel the crunch us unemployed civilians are feeling!!

      Report Post » GIDDIONKANE  
  • TheOracleOfTruth
    Posted on August 19, 2011 at 8:50am

    Obammy the cutter, the slasher the burner, oh, wait a second, those are just our rights! 5% is fluff and frill, nothing to see here folks, move along! The Obumbler will never do the RIGHT thing for conservatives, he hasn’t got the bottle! Nero is clueless and has no clothes. Keep on fildling Obummer, we’ll put you in the Grand Ole Oprey with a banjo player, then you can have a hooten‘ and hooerlin’ good time! These cuts are a farce, never-the-less, it is a start towards reality. Unemployment will tick up in the next few weeks – and down the rabbit hole will go Odmubo’s election chances, there IS a God!

    Report Post »  
    • historyguy48
      Posted on August 19, 2011 at 8:53am

      I am so proud of Barry, doing the fearless extreame cutting necessary to save America. If they cut their budget by an enormous 5% that means the children will probably starve since they will only be increasing their budgets by 3% over last year, instead of the *% allowed under “base line budgeting”.
      Isn’t socialism wonderful?

      Report Post » historyguy48  
    • starman70
      Posted on August 19, 2011 at 9:38am

      I also am so proud of Barry Soretoro. 5% just a drop in the bucket. How about 15% from the start incrementing up to 25% in 5 years. that is far more realistic if he really wants to curb federal spending.

      Odummer should set the example for all of Washington. He should, by executive order, impose a salary cut of 20%, starting with HIS salary and applying it also to all the cabinet members, czars, department heads and Ambassadors. The money saved would go directly to pay principle on the national debt and not be channeled off to pork barrell projects and earmarks.

      Congress could then vote themselves the same 20% pay cut and scrap their Rolls Royce retirement plan for not only sitting members but all retired former congresspersons.

      Ddo you think it will ever happen? HA-HA-HA—–FAT CHANCE!!!!!

      Report Post »  
    • loriann12
      Posted on August 19, 2011 at 9:55am

      Czars shouldn’t get any pay, or if any, it should be minimum wage. All the Czars (and yes, even Bush’s) aren’t in the constitution.

      Report Post »  
    • starman70
      Posted on August 19, 2011 at 10:03am

      @ LORIANN

      SPOT ON!!!! These appointees have no constitutional basis. There is no congressional approval of these people. The American taxpayers are being forced to pay these political hacks, provide their healthcare and more than likely provide them some sort of government retirement. My vote is to FIRE THEM ALL!

      Report Post »  
  • ares338
    Posted on August 19, 2011 at 8:48am

    While this topic is at the fore front everyone is making a big show of talking about what they’ll cut. This is complete BS. At the first microscopic hint of better times watch everyone snatch those government checkbooks back up, Dems and Repubs alike.

    Report Post » ares338  
    • SREGN
      Posted on August 19, 2011 at 9:13am

      When the agencies make the cuts they get rid of the lowly workers who might actually perform some function, and keep the highly paid deadwood at the top who do absolutely nothing. Then they complain budget cuts keep their agencies from meeting goals. The only solution is to privatize and have competitive bidding for the contracts.

      Report Post »  
    • Mil-Dot
      Posted on August 19, 2011 at 9:53am

      It is phoney BS. They will probably just cut the RATE OF INCREASE in pay and benefits by 5%, you know, like congress does, then call it a cut? They are not cutting anything, and everybody knows it.

      Report Post »  
  • stinkybisquit
    Posted on August 19, 2011 at 8:46am

    I wonder if they will interpret “cut budgets 5%“ as ”increase penalties for breaking agency policies by 5%”

    Report Post »  
  • NJTMATO
    Posted on August 19, 2011 at 8:45am

    If it weren’t so stupid, it would be funny. Do the politicians actually BELIEVE that we continue to be blind to their ridiculous overtures to cut spending. 5%???!!! What a complete JOKE. Actually, I think it may be too late for us to change any of the financial distress, I am beginning to come to the conclusion that the only thing that will fix it is happening despite our efforts….I think we will hit a serious recession if not depression when everything will require revamping. I’m only praying that we can get some honest people into office that can tell us the truth and get us through something that frankly, most people don’t have the stomach for….actually taking care of themselves. God bless us all.

    Report Post » NJTMATO  
    • chicago76
      Posted on August 19, 2011 at 11:31am

      Agreed. It is going to take a calamity to stop it. The only thing the government knows is new regs and new laws. New fines and new taxes. More employees and more power. When all else fails, power will triumph.

      Report Post »  
  • vtxphantom
    Posted on August 19, 2011 at 8:45am

    Queen obama has spoken. As it is said, so shall it be. obama’s malignant narcissism is about to shine, so get ready for it

    Report Post »  
  • ColoradoMaverick
    Posted on August 19, 2011 at 8:43am

    It’s all smoke and mirrors. First off, Obama bloated the federal budget without much media coverage and now he is going to “demand” cuts of 5%, etc… The federal budget should be cut at least 5% from 2008 levels, not the bloated 2011 levels. We need serious cuts and this can be done without any layoffs. Don’t hire new employees when one quits, retires, gets fired or dies. The private sector has been forced to do this over the last few years. Taking a hard line against wastefull spending otherwise known as fraud, waste and abuse can cut the federal budget by at least 20% if not more.

    Report Post » ColoradoMaverick  
    • Stopit
      Posted on August 19, 2011 at 6:42pm

      Yep! First year in office bloated new spending up…was it 28%? This proposal sounds like +3% instead of +8%. Salary cuts should be made accross the board. Remember all the lobbying employee unions did to show they were not being paid equitably with the private sector…needs to be reversed now.

      Report Post »  
  • Want our country back
    Posted on August 19, 2011 at 8:43am

    5% are you kidding me…. the salaries are 50% higher than private sector jobs….. cut the fed agencies budgets by 50% then the American people will know that somebody in the White House is serious.

    Report Post » Want our country back  
  • UBETHECHANGE
    Posted on August 19, 2011 at 8:43am

    Why isn’t anyone on either side talking about closing tax loopholes and tax code reform? I think it would have bipartisan support. The Tea Party isn’t even talking about. WTH?

    Report Post »  
    • 338lapua
      Posted on August 19, 2011 at 9:21am

      Why would the tea party discuss a democrat talking point?
      “loopholes” are after all, legitimate tax law. There are problems that is for certain, but not consequential enough to even be considered as serious.

      Report Post »  
  • hempstead1944
    Posted on August 19, 2011 at 8:33am

    5% ? How about 50%?

    Report Post »  
  • BIGJAYINPA
    Posted on August 19, 2011 at 8:27am

    This could be a good thing, IF they are really going to cut their spending by 5-10%. But if this is one of those smoke and mirrors things where they are going to ask for a 10% increase in their budget instead of a 15% increase and call that a 5% cut then we are still in the same spiral. Cut ALL federal spending 10% across the board, DOD, Social Security everything, ALL Federal spending must be cut by 10% AS A START. When my and my wife’s income no longer covers our expenses we cut spending, we do not max out our credit cards and keep spending. WHY IS THAT SUCH A HARD CONCEPT FOR OUR CAREER POLITICIANS TO GRASP??? Either they start to grasp the basics our we need to grasp the pithforks, light the torches and proceed to clean out the cesspool that DC has become….Just sayin’

    Report Post » BIGJAYINPA  
  • Vietvet1
    Posted on August 19, 2011 at 8:25am

    I find this interesting…. 5% …and this is AFTER they all bloated their budgets by 10 times that. As with any Government Budgeted programs…IF at the end of the year, near the audit time, they find themselves with ANY monies left over…. the order goes out to spend it all on anything so their next years budget doesn’t go DOWN. I know this to be true as the Military even has this mindset. Sometimes the results were pretty weird.

    And… Correct me if I am wrong but…. wasn’t there a proposal that is more than a few years old…to cut ALL of them…10%. Whiskey Tango Foxtrot???

    Report Post »  
    • loriann12
      Posted on August 19, 2011 at 9:58am

      They did that to me in the Navy. I was command photographer and at the end of the fiscal year, they had money left over. They asked me if I needed anything (I worked out of a closet, in addition to doing my regular job as a submarine hunter). They said if they didn’t spend this surplus, they would only get next year what they actually spent.

      Report Post »  
  • kickagrandma
    Posted on August 19, 2011 at 8:23am

    Surely he meant 5-0%, right? 50%? At least! Today! Now! This minute.

    Close down Lobbyists offices. That’s a start.

    Report Post »  
    • chazman
      Posted on August 19, 2011 at 8:29am

      I agree. 30% to 50% is a good start. 5% is a spit in the bucket. Dam politicians …

      Report Post »  
  • GERATMO
    Posted on August 19, 2011 at 8:20am

    Once they cut all this spending, your going to see unemployment jump to record levels, especially in the DoD. At least its going to happen on BHO’s watch. I work for the Air Force and they allready put forth a hiring freeze and an early out proposition for people qualified for retirement.

    Report Post » GERATMO  
  • Av8tor056
    Posted on August 19, 2011 at 8:19am

    5%? Big deal. It’s a token gesture, nothing more. When they cut the budget by at least 25% I might think that they’re actually trying to do the right thing. If they ever actually put the Country ahead of themselves and pass a balanced budget amendment I‘ll believe that there’s hope for us.

    Report Post » Av8tor056  
  • GayDem4Beck
    Posted on August 19, 2011 at 8:19am

    Smoke and Mirrors – Here‘s the problem it’s close to the “FISCAL YEAR END” ! ! ! They should be voting on a new budget in October… so how much can they cut this late in the process ? Maybe 5% of what they have left and haven’t spent.

    Report Post » GayDem4Beck  
  • I_will_say_this_one_more_time
    Posted on August 19, 2011 at 8:19am

    What? O’Bambam is raising hiring by %6? Someone read the Memo wrong.

    Report Post » I_will_say_this_one_more_time  
  • Rightallalong
    Posted on August 19, 2011 at 8:18am

    Both sides of the political game are just looking for ways to SAY they are doing something. No one has offered anything more than the proverbial pi55ing on the burning building…unfortunately all the politicians keep saying its a firehose …. Hey is Anthony Weiner still hanging around?

    Report Post » Rightallalong  
  • GMI
    Posted on August 19, 2011 at 8:17am

    As an ex-govt employee, believe me, finding 5% to cut would be no problem. Just get rid of all the union officers who sit in cushy “jobs” while doing union business. Overloaded with supervisors, unwilling to get rid of the deadweight, they could have cut 40% of my department and still done the job. That being said, there were many very good employees but they had little chance of ever being promoted unless they played “the game”!

    Report Post »  
  • PATRIOTMAMA
    Posted on August 19, 2011 at 8:15am

    You won‘t convince me that this isn’t just a campaign move so that they can say “we’re trying to cut budgets.” 5% isn’t going to do much, Mr.President. Too little too late!!! Also, this is just so you can claim that you’re attempting to be fiscally responsible. Can’t really swallow that after you buy brand spanky new $2 million busses so you can go “officially” campaign at cow judging in fairs after you not even a full four years ago accused us of clinging to our God and guns. Also then go from those beautifyl busses straight to one of the most exclusive and expense vacation places in the country. Sorry, lame attempt to garner our support. NOT GONNA HAPPEN!!!!!

    Report Post »  
  • Secessionista
    Posted on August 19, 2011 at 8:14am

    Cut the budgets 95%, not 5%.

    Report Post » Secessionista  
    • cessna152
      Posted on August 19, 2011 at 8:20am

      They will cut budgets by 5% after they get a 20% raise… Treason! All of these people (Nazis/crooks) should be in jail for stealing in a cell next to Bernie Madoff!

      Report Post » cessna152  
  • Pitcher
    Posted on August 19, 2011 at 8:13am

    I remember oh so well the arm twisting during the Obamacare debate by the Dems and the assuring of the conservative Dems that they would address their concerns like a “Laser” if they would vote for the bill. Once the bill was passed this approach would be logical then if their concerns were fiscal responsibility and making an effort to create jobs. I’m not buying into their concern now.

    Report Post »  
  • AJAYW
    Posted on August 19, 2011 at 8:13am

    It will never happen-

    Report Post »  
  • smithclar3nc3
    Posted on August 19, 2011 at 8:11am

    So Obama grew a government that was already bloated and insolvent by 20% since 2008 now wants to cut it by 5% that still leaves 15% added to a bloated and insolvent government.
    Hey Washington we’re not the stupid mass of american idol watchers we were 5 years ago. We are informed and getting more informed everyday.

    Report Post »  
    • OhSuzieQ
      Posted on August 19, 2011 at 9:05am

      SmithClar3nc3 said, ” So Obama grew a government that was already bloated and insolvent by 20% since 2008 now wants to cut it by 5% that still leaves 15% added to a bloated and insolvent government.
      Hey Washington we’re not the stupid mass of american idol watchers we were 5 years ago. We are informed and getting more informed everyday.”

      Damn Right! Enough is enough already!

      Report Post » OhSuzieQ  
  • ((GB)) FAN
    Posted on August 19, 2011 at 8:03am

    for the upcoming budget? what up coming budget. it will take a complete change in washington before we get one of those.

    Report Post » ((GB)) FAN  
    • Vechorik
      Posted on August 19, 2011 at 8:14am

      LOL I agree. What budget? The proposed cuts will be as invisible as the budget. The Chief is really naive if he believes government workers will suggest cuts for their pet projects. Maybe Chief should have cut 5% and 10% by having a 2 lists of employees to get rid of. The departments could get rid of dead wood they have wanted to get rid of for years!

      Report Post »  
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