Obama To Ask Agency Heads For Budget Cuts

WASHINGTON — Families are making tough decisions about their money and so too will their government, President Barack Obama said Saturday, promising that spending cuts are coming _ and soon.

At a Cabinet meeting Monday, the president will ask department and agency heads for specific proposals for trimming their budgets.

"If we're going to rebuild our economy on a solid foundation, we need to change the way we do business in Washington. We need to restore the American people's confidence in their government _ that it is on their side, spending their money wisely, to meet their families' needs," Obama said in his weekly radio and Internet address, released while he attended the Summit of the Americans in Trinidad.

To help achieve his goal of an efficient government, Obama announced the appointment of Jeffrey Zients, a founder and managing partner of the investment firm Portfolio Logic, as chief performance officer. Zients, who also will serve as deputy director for management of the Office of Management and Budget, will work to streamline processes and cut costs.

On that front, Obama gave notice he wants to act quickly.

"In the coming weeks, I will be announcing the elimination of dozens of government programs shown to be wasteful or ineffective," he said. "In this effort, there will be no sacred cows and no pet projects. All across America, families are making hard choices, and it's time their government did the same."

Homeland Security Secretary Janet Napolitano is ending consulting contracts to create new seals and logos that, Obama said, have cost the department $3 million since 2003. Obama also cited Defense Secretary Robert Gates' plan to overhaul contracting procedures and eliminate billions in wasteful spending and cost overruns.

The president praised Sens. John McCain, R-Ariz., and Carl Levin, D-Mich., who are leading the effort in Congress.

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Republicans have kept up a steady stream of criticism of Obama's spending, both of his $787 billion stimulus plan and his $3.6 trillion budget proposal.

"Earlier this week, President Obama said that we need to get serious about fiscal discipline by trimming waste in the federal budget," Rep. Kevin McCarthy, R-Calif., said in the GOP address. "Republicans couldn't agree more. We want to work with the president to get our financial house back in order."

"It's irresponsible to borrow more than all previous American presidents combined. And it must stop if we want to get our economy moving again," McCarthy said. "When will all this spending and borrowing end?"

Republicans say that budget cuts are a worthwhile effort, but emphasize the size of the Democratic spending bills.

McCarthy singled out "the trillion-dollar 'stimulus' bill the $410 billion dollar 'omnibus' spending bill and the massive, fiscally irresponsible Democratic budget that doubles the debt in just over five years, and triples the debt in just over ten years."

Obama said he's determined to try to cut costs.

"That is why I have assembled a team of management, technology and budget experts to guide us in this work," he said, "leaders who will help us revamp government operations from top to bottom and ensure that the federal government is truly working for the American people."

Along with Zients at chief performance officer, Obama named Aneesh Chopra, currently the technology secretary for Gov. Tim Kaine of Virginia, as the country's chief technology officer.

On Feb. 3, Nancy Killefer withdrew her candidacy to be the first chief performance officer for the federal government, saying she didn't want her mishandling of payroll taxes on her household help to become a distraction for the administration. Killefer was one of several Obama choices for top positions who have dealt with tax problems.

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On the Net:

Obama address: http://www.whitehouse.gov

McCarthy address: http://www.youtube.com/RepublicanConference

Portfolio Logic: http://www.portfoliologic.com

Comments

[logic63]

If all the people who are hiding money in off shore accounts had to pay back taxes and congressmen and senators all were made to take a pay cut until they can agree on getting this country back on it's feet plus the other good suggestions on this site, billions of dollars could be put into the kitty.

[Koreanovice]

Come on repubs, these are your talking points. Take this from the demos, cut programs that don't work, susbsidies, waste....

[vegasobserver]

I don't get this.

The Stimulus was intended to increase government spending on programs to employ people and pump money into the economy, easing the economic downturn.

Now Obama wants to cut other government programs. OK, this might be smart in a normal economy, but if he cuts these programs, doesn't that mean less money is being pumped into the economy, fewer jobs are being provided, and wouldn't that actually work counter to the Stimulus?

Now I'm really confused....

[linton]

Maybe, they want to trim the waste.

[frantaylor]

A Congressman's salary may sound like a lot of money, but remember that the lobbyists that they hang out with are making ten times as much. The lobbyists have money to burn and these congressmen are paying for two domiciles and horrendous transportation costs. The temptation to take a bribe or a gift can be overwhelming.

I'm not saying that Bloomberg is an exceptional mayor by any means, but think about this: he is fabulously wealthy, and he has no use or need to take a bribe.

[frantaylor]

If you cut politician's pay, then they will be even more desperate for money, and they will be all the more willing to take bribes. Pay them well and insist on transparency and results.

[puffhost]

I say pay well based on performance goals. Have a punishment for accepting bribes so severe that they are too afraid to do so! We should not let poor or mediocre public servants shake us down because we are afraid they cheat us. They work for us!

[mltmama]

Finally! I knew he was going to get to this. Have you looked at the salaries on federal govt Websites? These people make a lot of dough for doing what...barely knowing how to turn on a computer. Oldies have been in jobs for 30 and 40 years making a ridiculous amount of money for the work they do. Then you've got the deputy to the deputy to the deputy administrator's deputy to the deputy....so much fat, especially in Washington DC. It is about time! Make them become teachers, police officers, food inspectors. Put people where there are shortages and get rid of the fluff.

[frantaylor]

Got links to go with those assertions?

[schatsie]

Wait a minute, Bush gave the Rich a tax cut, and then he sent the Army to war and spent trillions of dollars..

Obama has given the banks hundreds of billions and now he wants to cut stuff...Well I can tell you, I would bring back the WHISTLEBLOWERS and listen to them.. In fact, I believe that the FEDS should be hiring now instead of cutting back.. We need the rich to pay their fare share and they will not unless they ARE audited.

[Koreanovice]

The bank bail-outs are LOANS! Remember, they are trying to pay them back.

[blurredtruth]

This cannot be taken seriously. Mr. Big Government cutting...not going to happen unless it hammers legal citizens who pay taxes and who go to church on Sunday.

[badtimes]

You have a very accurate screen name.

[thenorthshore]

congress gets full retirement benefits vested at 10 years.

[howcome]

how about if we start looking at pensions of elected government officials, their expenses, staffing and perks ......

[Ghostzapper]

Agree 100%. Also, how about Congress taking a 25% paycut in salaries as a gesture of good faith.

[Irmanator]

There are bigger problems with the system (campaign finances, lobbyists, jobs in industry after leaving congress - in the industry you are supposed to regulate...) than what the members get paid directly.
One argument against paying elected officials poorly is that then only rich people could afford to be politiicians.
I don't have any answers, I'm just saying there are a lot of sides to that issue.

[Badfickle]

Sounds good to me.

[Bill64]

I fully agree, but lets consider term limits and get the professional politicians out of Washington. Also lets requre congress to work forty hours a week like everyone else, and pay for part of their health care.

[frantaylor]

Term limits are pushed by big corporations. They like having newbie politicians that don't know their way around, because corporations can easily take advantage of their naievete.

[1differentdrummer]

Did you bring this up when the R congress was in session Tues. thru Thurs. for several years? The first thing Pelosi did was to bring back the work week.

[tekjensen]

So what should we do? Ignore the 60% of the population and their will to appease the other 30%. They had their opportunity and blew it. Now the majority of America wants to move in a different direction and they lose their minds. It used to be that exercising your right to protest the war was unpatriotic despite the fact that Americans were dying after being sent to war under false pretenses. Now it's patriotic to call for revolution, label the president a fascist/socialist, ect just because people are outraged over a 3% tax hike and the spending in Washington.

I don't remember these protest when taxes were higher or spending was more out of control. It only appeared when the small majority didn't get their way in the election so instead of working together to solve the countries problems they decided to cry about it and further drive a wedge between America.

[ObamacratInCA]

Protesting an illegal, unjust war is un-American. Threatening to secede the United States of America? Well it just doesn't get any more patriotic than that.

[patrickgarret]

Last time I checked Obama was OVERWELMINGLY and democratically elected. They have the right to protest but they ruin any seriousness taken with the Obama isn't an American signs, the racism, etc. They just look like nuts. Good job GOP. Keep it up! LOL

[20090120]

Rep. Kevin McCarthy, R-Calif., said in the GOP address. "Republicans couldn't agree more. We want to work with the president to get our financial house back in order."

AFTER you DESTROYED it, NOW you want to put in back. What a joke!!!!!!! GOParty of NO!!

[ObamacratInCA]

"We’ve got to eliminate programs that don’t work, and I’ll give you an example in the health care area. We are spending a lot of money subsidizing the insurance companies around something called Medicare Advantage, a program that gives them subsidies to accept Medicare recipients but doesn’t necessarily make people on Medicare healthier.

And if we eliminate that and other programs, we can potentially save $200 billion out of the health care system that we’re currently spending."

President-elect Barack Obama, Jan. 12 2009 on This Week with George Stephanopolous (Before he was President and before the tea parties.)

We can save Americans another $25 billion in taxes by eliminating farm subsidies.

Next week, we'll see if congressional representatives who claim they are against all wasteful spending are authentic.

[iceage7]

With all these ideas these cynics have why don't they run for president and do the things they want. TALK IS CHEAP Bulshit walks.

[thenorthshore]

i hope barry can 'cut' more that my tax reduction of $18.

[AlanBJ]

Well since you are whining, why not give that little tax deduction of yours to the wealthy....that's what Bush did. And also, how much of a reduction did Bush give you. Hmmm...we're listening....

[Badfickle]

18 bucks a week eh? Well that's $936 a year. If you don't want it I'll take it.

[billbb]

Me, too! Sort of like the stim money, any state doesn't want it, I will take it right here, right now, no questions asked.

[MaryanneAZ]

First, the respectful title is President Obama, not barry. If you multiply your $18 times the number of working people who are also getting that amount, then you have a substantial amount of money that is being poured back into the economy for consumer spending. This is a Nation and we do things on a national level, including counting the effects of a tax cut.

[Badfickle]

It's not just that. It's that it is every week. They want you to think that all it is that you are getting back is $15 bucks. Their argument is dishonest.

[Irmanator]

I will accept $16 a week and whine twice as much as you. There, you now have competition for the job of "ungrateful d.ick.head".

[badtimes]

Good deal! More bang for the buck. hehehe