One surprising aspect of the partial federal government “shutdown” is how small a portion of the budget is actually affected, in turn bringing attention to just how little impact Congress can have on spending through the normal budget process.
Some $2.5 trillion of federal outlays — more than 66 percent of all spending — is categorized as so-called “mandatory” spending. This is money that is automatically spent without any vote in Congress.
For the current fiscal year, according to the Office of Management and Budget, this includes Medicaid ($303.6 billion), the Refundable Premium Assistance Tax Credit ($32.2 billion), payments to reduce cost sharing in qualified health plans ($3.9 billion), Children’s Health Insurance ($9.9 billion), other health programs ($35.1 billion) Medicare ($523.8 billion), general retirement and disability ($6.9 billion), Federal employee retirement and disability ($140.7 billion), unemployment compensation ($56.2 billion), food and nutrition assistance ($98 billion), Supplemental Security Income ($53.1 billion), family and other support assistance ($25.1 billion), Earned Income Tax Credit ($55.6 billion), Child Tax Credit ($25.1 billion), payments to states for foster care/adoption assistance ($6.9 billion), housing assistance and other ($7.3 billion), Social Security ($860.3 billion), veterans benefits and services ($85.8 billion), and gross interest owed on the debt ($417.9 billion).
The reason these items on the budget are automatically spent is because they are done on the basis of who qualifies under the law, not on how much Congress appropriates for the programs.
In addition, some 2.6 million out of 3.4 million federal employees remain on the job according to CNN including active duty military. When you add another 589,000 postal employees, in total 3.189 million out of 4.139 million federal workers — a whopping 77 percent — are still working.
These are funded out of the so-called “discretionary” portion of the budget as well as from revenues that many agencies like the postal service take in. Yet, if three out of every four workers remains on the job, one supposes that even this part of the budget — accounting for some $1.2 trillion of spending — is not as “discretionary” as is commonly believed.
Even when the government is supposedly “shut down,” when Congress has not voted to appropriate any money — excepting defense and law enforcement Congress did vote to pay for during the shutdown — they continue working and getting paid. Simply remarkable.
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Robert Romano is the Senior Editor of Americans for Limited Government.
7 comments
“Simply remarkable.” There is nothing simply remarkable about “mandatory spending” i.e.”fixed costs.” What is remarkable is that most don’t understand that there are minimum costs to carry on enterprises, whether business or government.
I know. Our losses have been trimmed from $14,500 losses per month 42 months ago (for 14 months) to $2500 each for 4 months. Finally, two consecutive months of minimal profits. The difference? After months of knowing I should, getting the nerve to whack $6000 per month from expenses (family members: ever dumped your BIL, one of the owners? Oh, by the way, I’m the out-law, not the blood in-law), and generating the balance from increased gross profits thru sales increases of existing business and new offerings. I think the worst is over; one year of historical earnings can recoup the losses, but am vigilant as to the opposite.
It’s not easy, it’s not pleasant, it makes for poor family dynamics and gatherings, and it makes for sleepness nights, but shiite happens for a reason; 52 years of longevity for the company. The company, one of 5 founded by my late FIL, their Dad.
So, cry me a river, Romano and FITS, and then tell me how low your balls hang. The answer is economic growth, not just cuts. Deliberate compromise and wise cooperation, not temper tantrums and obstinance. Prudent management of the balance sheet, not brinksmanship and games of chicken.
The fact is, taxes in this country have been going down for the 52 years of our company’s existence. The fact is that the same founder of this company and his four others was subject to a 60% plus marginal tax rate in its early years and more than 50% in its heyday. The facts are that government grew during all of that period and so did its revenues. So did our company and its revenues.
The fact is that most people don’t have a effin clue as to what really drives companies and individuals in their quest for excellence, profitabllity, and continuity.
Oh, and while I’m at it, screw you Tea Partiers and your simple minded drivel. This Nation did without you for 225 years and won’t miss you when you’re gone.
Call me a wavering, mainstream, traditional Republican.
The income tax has gone down, but debt, government intervention, and inflation been on the rise for at least thirty years. These are the things that poison the health of the economy.
G W Bush doubled the debt in eight years. Obama doubled the debt in five. We’re on a path to financial ruin. How is cutting spending not part of the solution?
You guys read what you want to read, not what is written. Not once did I say cutting spending is not warranted. In fact, on the contrary, I cited a specific example of cutting; painful and personal cutting in our own business.
However, one can’t cut oneself to prosperity (balanced budget, if you will). Sooner or later revenues must factor.
Both parties have shown they can’t spend other people’s money fast enough. Why you’d trust them with any more of your or my cash is beyond me.
Reagan was the first to double the national debt, bush the 2nd from about 5 trillion plus to about 10.7 trillion debt Obama has added as much to the debt in just under 6 years as Bush had in 8 – but he has not yet doubled it. Also, about 1.3 trillion of Obama’s can be attributed to interest payments on Bush’s additional debt.
As usual, toddlers in the playground sandbox are too busy arguing over the toy pail to do anything about playground operators – like political party masters of ALG party whore – stealing the playground from around you. Fiscal policies are irrelevant when gov organization processes under which ALL public monies are managed/allocated/cut, is broken. Posters argue as if numbers produced by a systemically malfunctioning organization are credible. Who knows how much of our money is consumed by private misuse? Org operators expend public resources by direction of highest elected political whore. Politicians work for party masters – or they would be public servants – rendering output of gov orgs unpredictably unreliable. Until citizens understand and move to fix root cause of fiscal disaster (autonomous culture of gov orgs), arguing over marketing ploys of political parties is a distraction.
And while we argue about who added the most debt in the fewest number of years (Obama by far), the Administration continues to make a political charade out of the whole thing. Guess what’s happening on the “closed” National Mall? You guessed it a pro amnesty rally sponsored by the SEIU, AFL-CIO and a bunch of other ultra liberal ultra open borders groups under the shadowy organization Camino Americano.
http://washingtonexaminer.com/signs-say-national-mall-closed-but-immigration-reform-rally-is-a-go/article/2536957