Obama Budget Chief Wants Agencies to Cut Spending 5 Percent
Tom Diemer
Correspondent
Posted:
06/8/10
President Obama's top budget adviser wants federal agencies to identify "laggard programs" that they can trim as a step toward reducing spending by 5 percent. The idea is to "make it easier" to comply with the president's plan to freeze some federal outlays for three years beginning with the 2011 federal budget.
But there are caveats and exceptions. Budget Director Peter Orszag said in a speech Tuesday to the Center for American Progress that the proposed cuts would not begin until 2012 and would apply only to non-defense and non-security-related agencies. In other words, the Pentagon and Department of Homeland Security would be immune -- so too would be entitlements such as Social Security.
In addition, it appears the 5 percent pinch is not mandatory on the bureaucracy. "We are asking each agency to develop a list of their bottom 5 percent performing discretionary programs, as measured by their impact in furthering the agency's mission," Orszag said.
Many Republicans in Congress prefer immediate reductions in spending.
But Orszag told the liberal-leaning center, "Our goal is not to cut for cutting's sake, but to modernize and reform government, to empower people with the information they require to make choices about what's best for them, to make their voices heard by government officials, and to give the American people the data they need to bring about change."
But there are caveats and exceptions. Budget Director Peter Orszag said in a speech Tuesday to the Center for American Progress that the proposed cuts would not begin until 2012 and would apply only to non-defense and non-security-related agencies. In other words, the Pentagon and Department of Homeland Security would be immune -- so too would be entitlements such as Social Security.
In addition, it appears the 5 percent pinch is not mandatory on the bureaucracy. "We are asking each agency to develop a list of their bottom 5 percent performing discretionary programs, as measured by their impact in furthering the agency's mission," Orszag said.
Many Republicans in Congress prefer immediate reductions in spending.
But Orszag told the liberal-leaning center, "Our goal is not to cut for cutting's sake, but to modernize and reform government, to empower people with the information they require to make choices about what's best for them, to make their voices heard by government officials, and to give the American people the data they need to bring about change."