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Saturday, March 18, 2017

Fiscal Year 2017

The President has just released a partial budget proposal for the 2018 fiscal year and I have taken the last few days to examine just what it entails. The President's message at the beginning of this proposal states the following:
Our aim is to meet the simple, but crucial demand of our citizens- a Government that puts the needs of it's own people first. When we do that, we will set free the dreams of every American, and we will begin a new chapter of American greatness.
Today I will endeavor to show just what the President means by our "own people" and how he thinks he can "set free the dreams of every American." You be the judge...

Because of it's length I have included my full synopsis of the budget proposal at the end of this post. For my actual analysis I would like to highlight my top 5 concerns with this budget:

1) Fear tactic defense spending
2) Threats to the poor, seniors, and people with disabilities
3) Reckless environmental actions
4) Dissolution of public education
5) Disintegration of arts and sciences

Here is my analysis:

1) Fear tactic defense spending

One of the most basic and agreed upon responsibilities of the Federal government is to provide for a national defense. That being said, the US already has the greatest military spending in the world by a substantial margin. In fact, we spend more to fund our military than the next 7 countries combined, 34% of the world's military spending. While every other area on the budget has significant emphasis on efficiency and reducing redundancy this seemingly does not apply to defense spending.

I have no issues with the comparatively moderate increases to the Department of Veteran's Affairs, but the Department of Defense already has nearly 10 times the budget of the next largest department and is set to receive an additional 10% boost to funding. If there was any area where efficiency and redundancy should be looked at for cost saving measures it should be here. However, that is apparently not the President's plan. The President's obsession with winning has resulted in him stating:
Lays the groundwork for a larger, more capable, and more lethal joint force, driven by... the need for American superiority not only on land, at sea, in the air, and in space, but also in cyberspace.
This choice of words is chilling to me. Even in military operations more death should never be the objective. He states further on that the investment of more Navy ships is only a "down payment" suggesting that there is much more to come.

He keeps pressing this idea of how insecure our nation is but, I don't know about you, but I don't feel unsafe or in imminent threat from foreigners. Granted, I don't have access to top secret threat analysis data, but we will never be 100% secure and, while prevention is important, strength at home can mean a lot more than military might. Investments in education, infrastructure, and health care can go a lot farther towards improving the daily quality of life for Americans than stockpiling weapons for some vague possibility of threat. The President's proposed increase in military spending to the detriment of other fundamental programs does not speak of a man wishing to "make America great" it says to me that he wants to keep America in fear.

People living in fear find it harder to make rational decisions and are more easily provoked. Teaching the American people to live in fear, which seems to be the President's plan, puts us at risk of turning against each other. It is essential for communities to band together for their own betterment and be constantly critical of the real reason the President wants such a large military power under his control.

2) Threats to the poor, seniors, and people with disabilities

The President's plan calls for substantial cuts to programs that assist the poor, seniors, and people with disabilities. Just a partial list includes the following:

Eliminates:
-Economic Development Administration- encourages economic development in depressed regions
-Federal Supplemental Education Opportunity Grant- grants to college students with financial need
-Low Income Home Energy Assistance- assists families with energy costs
-Community Services Block Grant- funds programs for low-income individuals
-Community Development Block Grant- for the development of viable urban communities
-Capacity Building for Community Development and Affordable Housing- assists communities in developing affordable housing
-HOME Investment Partnerships Program- low-income housing assistance
-Choice Neighborhoods- assisting struggling neighborhoods
-Self-help Homeownership Opportunity Program- grants to non profits who build low-income housing
-Senior Community Service Employment Program- job training for low-income, unemployed seniors

Reduces:
WIC
Work study
Department of Health and Human Services
Job training grants
Office of Disability Employment Policy
Job Corp

Also, while the budget protects funding to IDEA, which is an agency to protect disabled students under the Department of Education, the institution of vouchers, also outlined in the budget, will put disabled students at risk (see my previous post on education vouchers here). There is also the proposed health care bill, which I have not yet covered but seems to be implied in the substantial cuts to the Department of Health and Human Services, which may result in millions of Americans losing their coverage.

The justification for much of these cuts seems to fall into one of two categories: reducing overlap or that a program is better provided by the states. The former excuse fails on two fronts as many grant programs have specific requirements with slight variations that mean organizations qualify for some but not others though at first look the grants may appear to overlap each other in purpose. It also fails in that it reduces overlap but fails to supplement the remaining programs to ensure continued coverage. The secondary excuse fails because states will be required to make up for the loss of Federal funding which will result in an increase in American taxes on the state level or cuts to programs. In any case these cuts will most likely have a direct impact on some of America's most vulnerable citizens

3) Reckless environmental actions

Not much needs to be said on this front. The President has made it clear that he plans to take no action to prevent climate change and has outlined said goals in his budget. He has also set forth in his budget to strip much of the EPA and give authority instead to the states. Considering there are several bills currently pending in Congress to allow states to permit things like fracking this is a dangerous trend. The actions of one state on the environment can have an effect on the entire nation and so it is important that as a nation we stand together on environmental issues.

4) Dissolution of education system

I have already posted at length about the dangers of voucher programs and much of the threat in the current budget comes from stripping the Department of Education and putting funds instead into so called school choice programs. The budget goes further however in reducing grants and work study programs for college students and doing away with other training programs that insure the public receives quality education to be productive members of society.

5) Disintegration of arts and sciences

Related to education but serving a separate roll, the President seems intent on removing all arts and sciences from the national scene. Between reducing or completely eliminating funding for the Corporation for Public Broadcasting, the National Endowment for the Arts, the National Endowment for the Humanities, public libraries, national heritage areas, and wildlife refuges among other programs he is dismantling much of the vibrancy of our nation. Some, possibly many, of these programs will survive, but the cost will be an additional financial burden at the state and local level with no reduction of Federal obligations.

My final thoughts as I turn you over to my lengthy synopsis are these:

If the President's goal is to make America great his budget is misguided at best, dangerous at worst. National defense is important but without real justification to increase spending the precious dollars in the hands of our government should be going to grow our economy and infrastructure and protect the most vulnerable among us. We need to tell Congress and the President that they can, and in fact must, do better.

Proposed Budget Synopsis

Department of Agriculture
- $4.7 billion reduction (21%)
- Fully funds Food Safety and Inspection Service
- $6.2 billion to WIC (reduction of $400 million)
- $2.4 wildland fire preparedness and suppression- fully funded
- Reduces funding for National Forest System "lower priority activities"
- $350 million for farmer-focused research
- Reduces funding for statistical capabilities while maintaining funding for the Census for Agriculture
- Eliminates duplicate water and wastewater loan and grant program ($498 million) stating that rural communities can be serviced by the private sector or other funds such as the EPA's State Revolving Funds
- Reduce staffing to the USDA Service Center Agencies to reflect reduced workload and encourage private sector conservation
- Eliminate discretionary activities of the Rural Business and Cooperative Service ($95 million)
- Eliminate McGovern-Dole International Food for Education

Department of Commerce
- $1.5 billion reduction (16%)
- Strengthen International Trade Administration enforcement and compliance functions while reducing export promotion and trade analysis
- Increase of $100 million to Census Bureau to prepare for the 2020 Census
- Consolidates parts of the Economics and Statistics Administration, US Census Bureau, and Department of Commerce's Office of the Secretary
- Eliminate Economic Development Administration ($221 million)
- Eliminates the Minority Business Development Agency
- Discontinue Manufacturing Extension Partnership Program ($124 million)
- Eliminates certain National Oceanic and Atmospheric Administration grants and programs ($250 million)
- Maintains polar orbiting and geostationary satellites for weather forecasting
- Savings from the Polar Follow On program by utilizing commercial data
- Maintains National Weather Service forecasting with $1 billion in investments
- Maintains National Telecommunication and Information Administration

Department of Defense
- $52 billion increase (10%)
- Repeal of defense sequestration plus an additional $2 billion in funding
- Providing resources to "accelerate the defeat of ISIS"
- Use funds for war fighting readiness
- Increase/improve training, equipment, and infrastructure
- "Lays the groundwork for a larger, more capable, and more lethal joint force"
- Reduce cost of military programs wherever "feasible"
- Rebuild readiness of US Army
- Increase number of Navy ships- "This budget reflects a down payment on the President's commitment to expanding the fleet"
- Ensure a ready and fully equipped Marine Corps
- Invest in Air Force maintenance, training, and additional F-35 Joint Strike Firghters

Department of Education
- $9 billion reduction (13%)
- Increase funding for school choice such as private and charter schools ($1.4 billion)
- Maintains current IDEA funding for students with disabilities
- Eliminates Supporting Effective Instruction State Grants program ($2.4 billion)
- Eliminates 21st Century Community Learning Centers program ($1.2 billion)
- Eliminates Federal Supplemental Educational Opportunity Grant ($732 million)
- Maintains the Pell Grant while cancelling $3.9 billion in unobligated carryover funding
- Maintains funding for programs that serve high percentage minority students
- Significant reduction to Federal Work Study
- Reduce Federal TRIO Programs and GEAR UP (reduction of $193 million)
- Reduce or eliminate over 20 additional programs including Striving Readers, Teacher Quality Partnership, Impact Aid Support Payments for Federal Property, and International Education programs

Department of Energy
- $1.7 billion reduction (5.6%) however a $1.4 billion increase to the National Nuclear Security Administration (11%)
- Restart Yucca Mountain nuclear waste repository ($120 million)
- Eliminate defense sequestration for the National Nuclear Security Administration
- $6.5 billion to the Environmental Management program to clean up nuclear waste
- Eliminates the Advanced Research Projects Agency-Energy, Title 17 Innovative Technology Loan Guarantee Program, and the Advanced Technology Vehicle Manufacturing Program
- Prioritization of projects within the Office of Science (reduction of $900 million)
- Limits scope of the Office of Energy Efficiency and Renewable Energy, the Office of Nuclear Energy, the Office of Electricity Delivery and Energy Reliability, and the Fossil Energy Research and Development program as well as eliminating the Weatherization Assistance Program and State Energy Program (reduction of $2 billion)
- Support cyber security  and grid resiliency within the Office of Electricity Delivery and Energy Reliability
- Continues and enhances research, development, and construction of expanded Navy fleet

Department of Health and Human Services
- $15.1 billion reduction (17.9%)
- Maintain direct health care services such as community health centers
- Increase Health Care Fraud and Abuse Program funding by $70 million
- Support "efficient operations" of Medicare, Medicaid, and the Children's Health Insurance Program
- Increase opioid misuse prevention efforts and access to treatment and recovery services ($500 million)
- Increase the FDA medical product user fees (revenue increase of $1 billion)
- Reduce National Institute of Health ($5.8 billion) including eliminating the Fogarty International Center and consolidating the Agency for Healthcare Research and Quality
- Creates a new Federal Emergency Response Fund and a new $500 million block grant within the CDC
- Invest in "high-performing entities" to focus on "high priority" mental health activities
- Eliminate some health and nurse training programs ($403 million)
- Eliminate discretionary programs in the Office of Community Service including the Low Income Home Energy Assistance Program and the Community Services Block Grant ($4.2 billion)

Department of Homeland Security
- $2.8 billion increase (6.8%)
- $2.6 billion for border security technology including planning of a border wall
- $324 million to recruit, hire, and train Border Patrol, ICE Agents, and support staff
- Increase funding for detention, transport, and removal of illegal immigrants ($1.5 billion)
- Mandatory implementation of nationwide E-Verify usage for employers ($15 million)
- Safeguard cyber space ($1.5 billion)
- Increase Passenger Security Fee to recover 75% of TSA operation costs and eliminate NFIP's Flood Hazard Mapping Program ($190 million)
- Eliminate or reduce FEMA state and local grant funding and require a 25% non-Federal cost match for preparedness grants ($667 million)
- Eliminate or reduce certain TSA programs ($80 million)

Department of Housing and Urban Development
- $6.2 billion reduction (13.2%)
- Provides $35 billion for HUD rental assistance programs
- Eliminates the Community Development Block Grant ($3 billion)
- Eliminate "low priority" programs such as HOME Investment Partnerships Program, Choice Neighborhoods, and the Self-help Homeownership Opportunity Program ($1.1 billion)
- Increase funding to promote lead-safe homes ($20 million)
- Eliminate Section 4 Capacity Building for Community Development and Affordable Housing ($35 million)
- Support FHA mortgage insurance programs

Department of the Interior
- $1.5 billion reduction (12%)
- Increase funding to develop energy on public land and streamline permitting
- Maintains Office of Natural Resources Revenue
- Eliminates "lower priority" programs including Abandoned Mine Land grants, National Heritage Areas, and National Wildlife Refuge payments
- Maintains "stewardship capacity" operations for National Park Service, Fish and Wildlife Service, and Bureau of Land Management
- Maintains tribal sovereignty and self-determination but reduces funds for "more recent" projects and initiatives that only serve a few tribes
- Reduces funds for land acquisition ($120 million)
- Increases funding for deferred maintenance but overall reduces funds for construction and major maintenance programs in National Park Service
- Provides $900 million for US Geological Survey
- Public/private matching plan for wildlife conservation, historic preservation, and recreation grants
- Maintain wildland fire suppression funding
- $1 billion for water resource management in western US
- Minor reduction to Payments in Lieu of Taxes program

Department of Justice
- $1.1 billion reduction (3.8%)
- Increase FBI funding ($249 million)
- Increase law enforcement component funding ($175 million)
- Link prosecutors and intelligence attorneys with investigations and the intelligence community
- Increase number of immigration judges ($80 million)
- Increase number of border enforcement prosecutors and deputy US Marshals
- Increase number of attorneys for immigration legislation and for obtaining land for border wall
- Increases detention space ($171 million)
- Maintain grants to protect state, local, and tribal law enforcement as well as grants for victims of crime
- Eliminates outdated programs ($700 million)
- Reduce prison construction spending (estimated almost $1 billion) however, provides $80 million for prison activation and $113 million for repair and modernization (Net reduction estimate of $800 million)
- Increase bankruptcy-filing fees ($150 million in increased revenue)

Department of Labor
- $2.5 billion reduction (21%)
- Expands Reemployment and Eligibility Assessments
- Reduce certain job training grants including elimination of the Senior Community Service Employment Program ($434 million)
- Eliminates Bureau of International Labor Affairs grant funding ($60 million)
- Closes low performing Job Corps locations
- Decreases funding for job training and employment services
- Fund states to expand apprenticeships
- Refocus the Office of Disability Employment Policy with less funding for technical assistance grants and more funding for early intervention projects
- Eliminates OSHA training grants ($11 million)

Department of State, USAID, and Treasury International Programs
- $10.1 billion reduction (28%) for Department of State and USAID, $12 billion to fund Overseas Contingency Operations, and $803 million reduction (35%) for Treasury International Programs
- Maintains embassy security and core diplomatic functions with $2.2 billion towards embassy construction and maintenance
- Increases funding to $3.1 billion for Israel security assistance
- Eliminates Global Climate Change Initiative and ends all funding to UN climate change programs
- Maintains funds to Gavi, the Vaccine Alliance
- Maintains funding for AIDS, Tuberculosis, and Malaria programs
- Turn some foreign assistance from grants to loans
- Reduce funding for international peacekeeping operations, cap contributions to UN at 25% of peacekeeping costs
- Adjust economic and development assistance to countries that are of greater strategic importance to the US
- Eliminates Emergency Refugee and Migration Assistance
- Reduces funding to Educational and Cultural Exchange programs and focuses remaining funds on the Fulbright Program
- Eliminates certain peacekeeping and security building efforts including the Complex Crisis Fund and small organizations that also have non Federal funds such as the East-West Center
- Consolidates and Reorganizes the DOS and USAID
- Reduces funding of development banks such as the World Bank ($650 million over 3 years)

Department of Transportation
- $2.4 billion reduction (13%)
- Privatize air traffic control
- Reduce Amtrak subsidies, particularly those associated with long distance service
- Only allocate funds for currently approved grants under the Capital Investment Program (New Starts)
- Eliminates Essential Air Service funding ($175 million)
- Eliminates TIGER grant program ($499 million)

Department of the Treasury
- $519 million reduction (4.1%)
- Preserve IRS funding but reduce paper based review ($239 million)
- Enhance cyber security capabilities
- Prioritize funds for economic enforcement tools
- Eliminate Community Development Financial Institutions Fund grants ($210 million)
- End taxpayer bailouts and advance financial regulatory reform
- Reduce federal workforce

Department of Veterans Affairs
- $4.4 billion increase (6%)
- Increase $4.6 billion to improve VA health care
- Extend and fund Veterans Choice Program- set to expire in August 2017
- Fund programs to aid homeless and at-risk veterans
- Fund programs to assist veterans transitioning to civilian life
- Continue funding efforts to optimize the VA claims process
- Fund IT systems to improve quality of services

Environmental Protection Agency
- $2.6 billion reduction (31%) including the elimination of 3,200 jobs
- Marginal increase to funding for drinking and wastewater infrastructure including the State Revolving Funds and Water Infrastructure Finance and Innovation Act ($4 million)
- Defunds the Clean Power Plan and climate change initiatives ($100 million)
- Reduce Hazardous Substance Superfund Account ($330 million)
- Reduce EPA enforcement budget to focus on programs not delegated to the States ($419 million)
- Reduce Office of Research and Development activities by half ($233 million)
- Reduce Categorical Grants ($482 million)
- Eliminate region specific efforts such as Great Lakes Restoration Initiative and Chesapeake Bay ($427 million)
- Eliminates more than 50 additional programs deemed low priority or poorly performing including Energy Star and infrastructure assistance to Alaska Native Villages and the Mexico Border ($347 million)

National Aeronautics and Space Administration
- Funded at $19.1 billion (0.8% decrease)
- Increase use of public-private partnerships
- Allocates $624 million for aeronautics research
- Allocates $1.9 billion for the Planetary Science Program but no funding for a mission to land on Europa
- Allocates $3.7 billion to send astronauts into deep space but cancels the Asteroid Redirect Mission
- Allocates $1.8 billion for Earth science portfolio, eliminates PACE, OCO-3, DSCOVR, and CLARREO missions as well as reducing Earth science grants ($102 million)
- Eliminates Office of Education ($115)
- Restructures robotic satellite refueling demonstration mission ($88 million)
- Strengthen cyber security capabilities

Small Business Administration
- $43.2 million reduction (5%)
- Maintain loan guarantees
- Reduce duplication and coordinate best practices for outreach center programs
- Maintain disaster relief lending
- Eliminate grant programs covered by the private sector ($12 million)
- Provide training and support for transitioning veterans towards business ownership
- Maintain funding for microloan financing
- Ensure SBA can advocate and assist small businesses in accessing government contracts and research opportunities

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