On Friday April 8 the government avoided a complete shut down by a mere hour.† The deciding factors in this 2011 budget debate were federal funding for family planning institutions and federal funding for the Environmental Protection Agency. In the end the government has tentatively planned to cut $38 billion in federal spending for the next year.
The Republicans were successful in the 2011 midterm elections. It was these wins that gave them control of the House and the ability to fight for a change of course in federal spending. In order to reign in government spending, Republicans proposed $33 billion in cuts from social programs such as the EPA and Planned Parenthood. What Republicans saw as a step toward financial stability, Democrats accused as partisan efforts† and that the cuts they outlined were not for the good of the country but instead for the good of the Republican social agenda.
As the April 8 date approached, there was tension amongst the parties in the House and the Senate. At a White House meeting on April 5, House Majority leader John Boehner insisted that at least $40 billion in federal spending needed to be eliminated in order for it to pass through the House. Republican policy riders also requested the repeal of the health care reform bill of 2009 and to limit the EPA’s power. In a private meeting Friday afternoon before the final negotiations, Boehner revealed to Republican law makers that he was fighting for as many cuts as possible and that President Obama was angry with his partisan outlook on negotiation.
While the negotiations up until the final budget was decided upon was partisan, the final agreement is viewed, somewhat, as bipartisan. The final budget includes cuts to both mandatory and discretionary spending. However, $17 billion of the more than $37 billion cuts are coming from mandatory programs, programs in which the federal government requires citizens to participate.† It does not include the defunding of Planned Parenthood, which is the federally funded social program that led the negotiations to go to such a late hour.
While Planned Parenthood did not lose its funding, there was a separate measure that prevents the city of Washington from paying for abortions with its tax revenues. Boehner told the New York Times that the deal is “far from perfect” but believes it is “a positive first step and a credible down payment” on future spending reductions.
Hundreds of programs are facing financial set back because of the budget restructure. The biggest cuts are running in excess of $1 billion dollars. Almost $3 billion for high-speed train rail funs are cut, and another $3 billion have been cut from highway construction. In total, $6.2 billion in Department of Defense construction projects.† A social program called WIC (Women, Infants and Children) which subsidizes the food and nutrition needs of children in low-income families, was cut by more than $500 million. Grants for states to pay for clean drinking water projects are cut by $1 billion dollars. In terms of international financial support, the bill cut $377 million in U.S. contributions to the United Nations. USAID will get $39 million less for operating expenses. Almost $1 billion is cut from a community development fund run by the Department of Housing and Urban Development.
Not all Republicans are in support of the proposed budget. Congressional representative Jim Jordan, who is an Ohio Republican like Boehner, believes the $38.5 billion in cuts was insufficient. He believes the $61 billion blue print proposal, which was passed through the House in January, would be more efficient in getting the the country back on track financially. “While I respect that some of my Republican colleagues will ultimately support this spending deal, I believe voters are asking us to set our sights higher,” said Jordan.
The final budget cut $78.5 billion below President Obama’s 2011 proposed budget. In the mean time, a short resolution to keep the government running through the rest of this past week was passed. The initial cuts coming forward in the next 6 months will total $2 billion in federal savings. The House is set to vote on the deal Thursday April 14, followed shortly after by the Senate. If passed, the package will fund the federal government for the remainder of 2011 fiscal year, which ends Sept. 30.