FY '11 Savings Lost to Continuing Budget Fight

Although congressional combatants believe they are fighting a worthy budget battle, the collateral damage of not coming to agreement is accumulating. Robert Pear at the New York Times and Andy Sullivan at Reuters have reported two noteworthy pieces suggesting that when Congress finally gets its FY 2011 act together, the savings from whatever budget cuts result will significantly eroded by the waste that their dithering has caused.

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On Public Wages, Let's Hear from Business Leaders

A unionized public employee, a teabagger, and a CEO are sitting at a table. In the middle of the table is a plate with a dozen cookies on it. The CEO reaches across and takes 11 cookies, then looks at the teabagger and says, 'Watch out for that union guy – he wants a piece of your cookie!'

An interesting exchange occurred last week between a top government official and a group of corporate leaders attending the first meeting of President Obama's Management Advisory Board. According to Robert Brodsky of Government Executive, Director of the Office of Personnel Management (OPM) John Berry appealed to the board to help set the record straight about "overpaid" public employees.

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Why Are We Only Talking about Spending Cuts?

All the GOP cares about is jobs, jobs, jobs!

With Congress poised to send President Obama another continuing resolution (CR) temporarily keeping the federal government open, Senate Democrats, in conjunction with the administration, have just three weeks to negotiate with House Republicans over a funding bill for the rest of fiscal year (FY) 2011. The negotiations will concentrate on spending cuts made by the Republican House, but they shouldn't.

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House CR Would Cut Nuclear Safety Funding

H.R. 1, the continuing resolution (CR) passed by the House in February that would cut some $61 billion from FY 2010 levels for the remainder of FY 2011 is no friend of nuclear safety. A rundown of the bill reveals the following cuts:

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Special Interest Wish List Goes Along for the Ride on House CR

In the early hours of Saturday, Feb. 19, the House of Representatives passed a budget plan to continue funding the operations of the federal government for the remaining seven months of fiscal year (FY) 2011. In addition to $65.5 billion in cuts to discretionary spending, the bill (H.R.

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Shutdown Averted; Next One Looms

Voting 91-9 on H.J. Res. 44, the Senate postponed the threat of a government shutdown for two weeks.

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Blame Will Avert a Government Shutdown

Unless Congress comes to an agreement over current fiscal year funding soon-- and one acceptable to President Obama -- many operations of the federal government will shut down after March 4. Although what exactly will be shutdown remains uncertain, it's likely the public will notice and be inconvenienced while hundreds of thousands of federal employees will be furloughed. In short, it would be a huge mess and someone will have to take the rap.

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House Budget: More Exemptions and Lower Payments for Big Oil

In the latest issue of The Watcher, OMB Watch discusses (here and here) the recently passed House budget and the many non-budget provisions attached to it, including the anti-environmental riders that prevent the Environmental Protection Agency (EPA) and other agencies from doing this or that.

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A Government Shut Down, One Way or the Other

The 2011 budget has turned into a game of hot potato. With a short-term extension of the current budget increasingly unlikely, it appears as though those holding the decisionmaking authority on March 4 at 11:59 pm, when the current continuing resolution expires, will be forced to make an unpopular decision: passing draconian Republican cuts or forcing the government to shut down.

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Handicapping the Future

As part of his scheme to cater to business interests, President Obama yesterday appointed Intel CEO Paul Otellini to the President's Council on Jobs and Competiveness. The appointment of a corporate leader to such an advisory panel isn't particularly surprising, given that Obama has been bending over backward to make sure the opinions of Big BusinessTM are heard in the White House (you know, because they're soooo underrepresented). What is surprising is that Otellini has a blind spot for honest appraisals of economic policy.

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