Obama Budget Cuts: Will Order Cabinet to Quickly Cut $100 Million From Department Budgets

WASHINGTON — President Barack Obama on Monday ordered his Cabinet to find ways to slice spending by $100 million, but acknowledged it's a "drop in the bucket" and said there's a "confidence gap" that he needs to overcome. Just back from a Latin America summit, Obama told the first formal Cabinet meeting of his administration that vast spending to combat the economic crisis was "the right thing to do." But he also said taxpayers still need to know that every dollar they give the government is being spent wisely.

"We also have a deficit _ a confidence gap _ when it comes to the American people," he told reporters. "And we've got to earn their trust."

Obama said the $100 million would come from "efficiencies" in agency operations, and would be in addition to future cuts in programs that aren't working.

Yet the red ink in the annual budget is currently in the hundreds of billions. He was asked if the efficiency saving isn't just "a drop in the bucket".

"It is," he replied. "None of these things alone are going to make a difference. But cumulatively, they make an extraordinary difference because they start setting a tone ... $100 million there, $100 million here _ pretty soon, even here in Washington, it adds up to real money."

The federal deficit for March alone was $192.3 billion, and $100 million would represent a minuscule portion of that sum, roughly one-twentieth of 1 percent. Obama in February brought forward a $3.6 trillion budget for the 2010 fiscal year, beginning Oct. 1, a proposal that would produce $9.3 trillion in deficits over the next decade.

Senate Republican leader Mitch McConnell said he applauded all attempts to cut government spending but insisted that a $100 million cut would only cover one day's interest on Obama's $787 billion stimulus spending plan.

White House spokesman Robert Gibbs said later that the cuts were part of a larger cost-cutting effort by Obama. He said the president "has laid out cuts large and small in administrative costs" and in programs throughout the government.

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Earlier this month, both the House and Senate passed companion budget plans giving Obama and his Capitol Hill allies a key victory, but 20 House Democrats from GOP-leaning areas abandoned him on the final vote because of unhappiness over deficits.

The Cabinet meeting came just days after a series of "Tea Party" demonstrations across the country in which protesters challenged the administration over it's massive spending to help pull the country and its financial system out of an economic nose dive unseen in decades.

Even among budget cuts cited in a newly released White House summary, a considerable proportion of the savings would occur over a period of years.

It pointed out projected cuts in office supplies and computer software at the Department of Homeland Services, for instance, noting that the agency spends $100 million a year on this "but virtually none of the supplies are purchased through agreements that leverage the department's collective buying power."

Thus, it said, DHS estimates that it could save up to $51 million over five years by purchasing in bulk.

It said that $62 million could be saved over a 15-year lease term if the Agriculture Department were to combine roughly 1,500 employees from seven leased locations into a single facility by early 2011.

The White House summary also said that $6.7 million could be saved over the first five years by having U.S. attorney offices and the U.S. Marshals Offices' Asset Forfeiture program convert publication of forfeiture notices from newspapers to the Internet.

The worksheet also said that $5 million a year could be saved by consolidating embassy posts at the State Department and U.S. Agency for International Development.

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Associated Press writer Mark S. Smith in Washington contributed to this report.

Comments

[riverrat20009]

Cut a latte?

http://finance.yahoo.com/news/SPIN-METER-Saving-federal-apf-14976290.html?.v=1

[tailgateshirts]

One minute hes doing nothing, next he starts something, its a problem because its not enough.

When will you people ever be happy. You cant just slash budgets indescriminantly and expect things to work effectively (as republicans used to do annually).

The reason so many of our programs are failing is because stuff was just cut without paying attention to detail

[slinkymom]

The goal of the republican party is to make government small enough to dr own in a bathtub. Bush's goal was to put the most inept people in office so that we would all think government is incapable of being efficient.

This game has been played on and off for a very long time, since Ray gun was in office.

It will take a long time to undo the damage of years of ineptitude.

[riverrat20009]

If you are not happy with the services that your state provides, then perhaps you should move to another state.

[bsween]

The reason so many programs are failing is because the gov is totally incompatent please until we get smart people in congress this will go on forever he cuts 100 million which is good but nothing more than another photo op president pelosi spent 30 million on a rat congress spent 8 billion on pork both sidesof the aisle and that was something schumer said no one cared about ,so lets not pretend this is something to brag about the cry should be country first party at the bottom of the list

[Nyla785]

Notice how the Republicans are tearing apart EVERY SINGLE THING THAT OBAMA DOES. Every gesture, every word, every action, no matter how well-intentioned. And then, they are 'churning' in on talk radio, Fox news, and through all their talking heads. THIS is how you stop change, folks. THIS is how you kill national healthcare right in the bud.. THIS is how you freeze out switching to alternative energy. And THIS is how you cripple diplomacy and a new kind of foreign policy. You not only strike at the issue itself--you totally undermine the person on ALL fronts. Cripple them.
Don't be scammed again.

[riverrat20009]

The problem is the congress.

They spend the money.

Take a civics lesson.

[stevespelling]

The problem is that no one has to say anything or make any comments to make this new government look foolish, radical & naive. They're extremely proficient in that department all by themselves!

[bsween]

be careful on national healthcare pal unless you have dealt with our gov idea of healthcare which does exist talk to someone who is on disability that goes to the gov healthcare office its a disgrace and i lived in canada if you have a cold their system is fine go beyond that its a whole different game so take some advice dont you be scammed

[thenorthshore]

go barry

cut, it's a start

cut 1/60000 of what you and the gang just spent.

you rock

[tiotom77]

President Obama wasn't aware of the Tea Parties. Now he wants to cut spending. What brought about the change of heart
TEA PARTIES OF AMERICA...UNITE

[slinkymom]

He said he would be doing this during his campaign. Do try to keep up.

[Georgia1992]

UncleTom77 doesn't know what he's talking about. He needs to stop riding on the short bus.

[myvoice09]

First he expanded spending exponentially into the multi-trillions (he didn't mention THAT part during the campaign), now he says to cut $100 million. That's kind of like a retail store increasing the price of an item 30 or 40% so that we'll be thrilled when they cut the price by 10%. Perhaps it is you who is not keeping up.

[PeacefulRevolution]

Bring it on!

[riverrat20009]

You're about to get it.

[riverrat20009]

Your comment sounds as stupid as when Bushie said it.

[psjones006]

He was aware of the tea parties, he was just too ashamed to admit it.

TEA PARTIES OF AMERICA ...... SIMON SAYS......

[serialcoma]

What a joke you are.... tea parties were nothing but gatherings of whackos ...

[stevespelling]

I agree totally, serialcoma. Only ACORN, Code Pink, Goron environmentalits, & Union sponsored rallies with shills being paid to protest are legitimate forms of dissent!
What's interesting about the Tea Parties is that it's the first time in my lifetime where we actually witness working people protesting instead of the usual unemployed, or students or paid left wing operatives. & That is something that the radicals should take note of.

[dianhow]

TIO Your spreading more mis - information..
That was one of Obama's campaign ' promises ' .

[freedomitchy]

So Obama increases spending by trillions of dollars, then says let's cut one hundred million and Obama lovers are giving him kudos for cutting spending. What's flavor koolaid is that? It must be the most delicious flavor in the universe. Fair is fair, I b tch d like crazy with Bush and all his spending and deficits, so now Obama triples the deficit year to year.

[riverrat20009]

A true, complete answer can not be accomplished here.

Here is a simple, but meaningful start. Shift all personal income taxes to the states. The states will pay the Feds for only the services that the states collectively need.

What a paradigm shift.

[jake1492]

So how would that save money?

[desertman]

Needless programs would be shut down.

[Pablo175]

Obama's budget calls for deficit spending of over $9 trillion over ten years. This is more than all other presidents combined. This cut of $100 million is a diversionary tactic. Wake up people!

[serialcoma]

Make sure you send bush and all the repubs in Congress a thank you note for that....

[myvoice09]

The Repubs haven't been in control of Congress for over 2 years, a fact the blamers choose to overlook!.....the note should be addressed to Pelosi and company.

[dianhow]

Pablo You wake up ! Obama has been ' forced ' by the Bush / REagan sins / policies of deregulation that put this nation into a huge crisis. .We will have to see if his plan works.
IN a crisis this huge - quick ACTION IS REQUIRED. check back in 2 years.

[mike42nola]

dianhow;
You are so misinformed as to what President Reagan did for this country. The economic good times of the last 30 years were a direct result of his policies and tax cuts. The end of the cold war was a direct result of him spending the Soviets into bankruptcy.
I did not agree with the deficits he created but he has been the best President we have had in my lifetime.
You need to study up on what actually happened, what it resulted in and when it happened.
Quit blindly following the Democratic party and think for yourself.
I don't blindy follow any party. I vote for who I think the best candidate is at local, state and federal leves. I am a registered independent and will stay that way.
You have fallen into their trap and every time you point a finger they are laughing at you because they got away with another one.

[jake1492]

The really big problem is the loss of revenue (short term because of the recession) but longer term because of our loss of industrial base.

The kind of bickering that goes on in places like this is also a big problem because it results in hardened positions that get reflected in the political culture, leading to an inability to work together and compromise.

If you had the responsibility to solve this big government debt problem..........and couldn't just duck and hide behind some kind of wall of ideology speak........ how would you do it? Are you even interested? Or do you just want to fight?

[riverrat20009]

Agreed.

[obamaluv]

Political stunt. Thats all. give the man a book.

[Figerre]

I love how the GOP-Gang talks about how puny $100 million in savings is -- probably it is. but it IS a start - and a helluva bigger start than Bush ever did with his no-bid contracts for everything from Katrina to Iraq. Most of us know that if you start with the stuff you CAN do - eventually you start to find bigger and bigger things you can cut back on. It takes STARTING down this path -

A path the Republicans never even looked for - let alone found. Their hypocrisy and gall is phenomenal - these are the Fiscal Conservatives? that drove the train off the cliff and are bitching now? Go home, boys, rustle up a new line - this one is tired, worn out and oh so too late.

[riverrat20009]

Republican suck.

Democrats suck.

We need another answer.

[doctorwang]

who do you want in office?

[theRealAmerica]

You may as well be Republican...lots of scrutiny...no solutions.

[Agentlady007]

Big Deal. We're still in a war. This doesn't impress me.

[riverrat20009]

Yep!

Another broken promise.

Not it's President Obama's Iraq and Afghanistan wars.

[VPN]

Don't like the way things are, too bad, win an election and change it, until then DEAL WITH IT.

[jake1492]

The following is the annual budget:
Social Security: $650 B
Treasury (interest): $550 B
Health: $700 B
Defense: $650 B
Agriculture: $ 90 B
Personnel Mngmnt: $ 60 B
Vetrans $ 90 B
All of the rest $400 B
Above sdds up to Total Expenditures: $3,200 B
Less Total Revenue: $2,300 B
Equals Annual Deficit: $900 B, or about 6.5% of GDP ($13.8B)
How much is sustainable? 2% of GDP? would be about $300 B
So we need to find $900-$300=$600 B.
Inrease revenue by 15% = $350B, so we need spending cuts of $600-$350=$250B
$250 B is 8% of the $3200 total. So, 8% of defence is $51 B, should be do-able.
Likewise with each of the others, meaning expect a bit less health, social security, and so on.
Now all we have to do is deal with jealousy and mistrust and we have it made.

[jake1492]

c'mon riverrat..... give us your honest opinion about this. where would you cut back on government spending......(don't be shy)

[jake1492]

What a comedy act! The closer a discussion gets to reality, the less willing people are to engage...... maybe because they wouldn't want to expose the fact that they honestly don't understand the intricacies of the question at hand?

Each side has certain values it holds dear and a sense of injury about the other side, all with a fair amount of justification (as well as a fair amount of counterproductive misplaced energy). But there is tremendous distrust and lack of respect for the other side. The language used actually multiplies this effect and it becomes dominant. That is one of the better innovations Obama has been doing, to show respect all around (although some republicans may not see it that way).

The bottom line is that we are all fiddling while Rome burns and there are a few different tribes approaching the gates. We have a strong mutual need to be able to deal with these things better together.

No takers in the request to suggest what would be a good way to cut 100's of billions rather than millions. I take that to mean that people really don't, but would prefer to fight.

[tailgateshirts]

my guess is everything except laser weapons for our airplanes so we can fight the bad guys in f-zero

[riverrat20009]

The next Tea Party is on July the 4th. A march on Washington that will shut this country down. How, you might ask? The small business owners will shut down their businesses. All of a sudden, people will know who the real middle class is.

Some idiots think they have a franchise on public demonstration. They are wrong.

You are about to see what happens when the real American taxpayers march on Washington, DC. Peasants do not start a revolution. Never have, never will. A revolution only occurs when the middle class is involved.

We will take this country back or break away.

[iceage7]

I would rather Obama spend trillions of dollars investing in usa.. healthcare, education, energy , infrastucture etc as opposed to spending trillions in iraq and on his rich friends. Bush built deficits but what did he build..did he improve infrastucture, did he invest in healthcare, did he invest in clean energy, did he invest in affordable education. America has been taken for a ride by bushes friends i.e. corporations. Oil companies, health insurance companies, education companies and wallstreet with huge subsidies and tax breaks. These are the companies who were in bushs pocket that he worked for not the american people. We citizens got the raw deal with our taxes being used to prop up these big Titans. Wallstreet gambled with our tax money on worthless paper. The money spent on iraq could have rebuilt katrina and the gulf coast states. GO FIGURE!!!! geez a trillion dollars spent on a fake war cost thousands of iraqis killed and over 5000 usa soldiers killed plus millions of iraqi refugees. Wheres the outrage rethugs.

[mike42nola]

Do you have any idea of how our government works?
Have you been taught about the three, seperate branches of power?
Do you realize that ALL spending bills MUST be passed by the House of Representatives before money is ever appropriated to be spent?
Following along with your argument means that the Democratically controlled House was in cahoots with President Bush and his rich friends.
I always love good stories about big, bad rich people that steal from the poor living in trailer parks.
They just make so much sense.

[theRealAmerica]

Selective Reasoning mike42nola...The Dems didn't control Congress until Bush's last 2 years of his last term...remember the midterm elections turned the tide.

Repuglicans started this non-sense in the midterm eletions of Clintons last 2 years...so for 8 years Bush and his cronies ran the country into the ground...

I mean why would anybody be surprised...Bush ran the country's finances into the ground just like he did every company he ever started...you know what company Bush owns now...NONE...they all failed. He's bankrupted everyone of them and you gave the checkbook to the US Treasury...