Obama's budget cuts take aim at 121 federal programs

May 8, 2009      Boston Globe

WASHINGTON - President Obama sent Congress a detailed budget yesterday boasting of cutting or killing 121 federal programs in a belt-tightening he likened to that of most Americans in difficult times. But the trims amounted to a tiny fraction of the new spending he wants, some have already been nixed by allies on Capitol Hill, and some are recycled from former President Bush's hit list and won't be popular with some fellow Democrats.

Obama said his cuts would total nearly $17 billion - in a budget totaling well over $3 trillion for the fiscal year that begins in October. He's estimating the government's red ink will still be about $1.2 trillion, down only slightly from this year's all-time record. Republicans scoffed that Obama's cuts were not nearly enough.

On the Senate floor, Senator Judd Gregg, Republican of New Hampshire, said the savings wouldn't put a dent in the federal deficit, projected at $1.5 trillion this year. He likened what Obama proposed to taking a "few pieces of sand off the desert."

Answering the GOP criticism, Obama said that while a few of the savings are less than $1 million each, "outside of Washington, that's still considered a lot of money" and that the $17 billion total, "even by Washington standards, that should be considered real money."

The spending cuts for the budget year that begins Oct. 1 were detailed in a supplement to the broader 2010 budget outline that the president proposed in February and which Congress has already acted on.

White House budget director Peter Orszag said the president's plan for program cuts is just a start and that a lot more needs to be done to dig the government out of its fiscal hole, especially curbing the growth of the Medicare and Medicaid healthcare programs for the elderly and the poor. Those savings, however, are far exceeded by a 2 1/2-inch thick volume detailing Obama's generous increases for domestic programs.

And instead of devoting the savings to defray record deficits, the White House is funneling them back into other programs.

The roster of cuts won't be easy for Congress to swallow. Lawmakers from the potent California, New York, and Florida delegations are sure to fight the elimination of a program that gives money to states to help defray the cost of incarcerating illegal immigrants who commit crimes. Bush tried and failed to kill the $400 million program.

And the oil and gas industry is certain to fight to preserve $26 billion in tax breaks over the next 10 years, even though Obama calls them "unjustifiable loopholes" in the tax system that other companies do not get and that "do little to incentivize production or reduce energy prices."

About half the budget savings would come from an effort by Defense Secretary Robert Gates to curb defense programs, including ending production of the F-22 fighter and killing a much-maligned replacement helicopter fleet for the president that's way over budget.

The administration is also proposing curbing subsidies for crop insurance to save $5.2 billion over 10 years and killing a $25 million program that funds the relocation of rail lines.

And the president's proposed budget calls for cutting the Public Safety Officers' Death Benefits Program from $110 million to $60 million.

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