Obama, Cabinet To Seek $100M Budget Cuts

Washington Post: President To Convene Cabinet For 1st Time; Will Order Team To Find Ways To Trim Federal Budget

(Washingtonpost.com)  This story was written by Washington Post Staff Writer Michael A. Fletcher.

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President Obama plans to convene his Cabinet for the first time today, where he will order members to identify a combined $100 million in budget cuts over the next 90 days, according to a senior administration official.

The budget cuts, while they would account to a minuscule portion of federal spending, are intended to signal the president's determination to cut spending and reform government, the official said.

Obama's order comes as he is under increasing pressure to show momentum toward his goal of eventually reducing the federal deficit, even as he goes about increasing spending in the short run to prop up the economy and support his priorities.

Earlier this month, both chambers of Congress passed Obama's $3.5 trillion budget outline for 2010, which includes unprecedented new investments in health care, education and energy. But the huge budget, which contemplates a $1.2 trillion deficit, has drawn the ire of small-government conservatives who say that the deficits jeopardize the nation's economic future.

Last week, conservative activists organized tea parties to protest Obama's budget which they say "spends too much, taxes too much, and borrows too much from our children and grandchildren," according to House Minority Leader John Boehner (R-Ohio).

"They're really concerned about the amount of spending that's going on in Washington and the amount of debt that is being piled up," Boehner said yesterday on ABC's "This Week." "They know that you can't have trillion dollar deficits for as far as the eye can see without imprisoning the future for our kids and theirs."

In his radio and Internet address Saturday, Obama repeated his vow for his administration to scour the federal budget "line by line" to reduce spending. During an address to Congress in February, Obama said his administration has identified $2 trillion in deficit reduction over the next decade.

That savings projection, however, rests on a dubious baseline, including assuming that the United States would have retained its current troop level in Iraq for the next decade. The reduction also contemplates expiration of tax cuts for the nation's highest income earners.

Still, Obama said he is serious about reining in deficits over the long term, and some agencies are already moving in that direction, the administration said.

Veterans Affairs has canceled or delayed 26 conferences, opting for less costly alternatives such as video conferencing, saving nearly $17.8 million. The Agriculture Department is working to combine 1,500 employees from seven office locations into one facility in 2011, which the agency said would save $62 million over a 15-year lease term. Also, Homeland Security projects that it can save up to $52 million over five years by buying office supplies in bulk, officials said.

The Cabinet meeting comes as the Obama administration has begun speaking more openly about tentative signs of improvement in the economy. But even as glimmers of improvement emerge, it is likely that some of the nation's largest banks will need additional help, which the administration should be able to provide without asking Congress for more money, top White House officials said.

The Obama administration is moving closer to releasing some results of the "stress tests" aimed at projecting how the nation's largest 19 banks would withstand further deterioration in the nation's economic condition.

"We're confident that, yes, some are going to have very serious problems, but we feel that the tools are available to address these problems," David Axelrod, a senior adviser to the president, said yesterday on CBS's Face the Nation.

Click the video player below to see David Axelrod's appearance on Face The Nation.

Officials said that the administration should be able to provide additional bailout money if necessary without returning to an increasingly skeptical Congress for further authorizations.

The administration plans to release guidelines for the stress tests this week, and it hopes to make results available in early May. "It's important that there is disclosure," Axelrod said. "And I think the banks are going to want that because they're going to want the markets and the country and the world to know exactly what their condition is," he added.

Obama yesterday wrapped up a visit to Mexico and the island nation of Trinidad and Tobago, where he attended a summit of Caribbean and Latin American leaders. He then will turn his attention back to domestic issues, aides said.

Chief economic adviser Lawrence H. Summers said Obama would back efforts to tighten regulation for credit card companies. Executives from the nation's largest credit card firms have been summoned to the White House for a meeting with administration officials later this week. Meanwhile, members are Congress are pushing legislation to limit the ability of credit card companies to raise interest rates on existing balances, while requiring clearer disclosure of loan terms.

"He's going to be very focused in the very near term on a whole set of issues having to do with credit card abuses, having to do with the way people have been deceived into paying extraordinarily high rates that they wouldn't have paid if they knew what they were getting themselves into," Summers said on NBC's "Meet the Press."

While officials talked cautiously about the obstacles that stand in the way of a turnaround in an economy that is still shedding more than 600,000 jobs a month and is seeing continued spikes in home foreclosures, they also pointed to some improvements.

Some major banks have reported profits recently, and there are signs of credit thawing in some corners of the economy, officials have said.

"No one is in any position to declare any kind of victory here," Summers said. "But the fact that no one can declare victory doesn't mean that we shouldn't take note of developments as they unfold. And the developments, as I say, are more, are more mixed now."

In the long run, Summers said, the nation's economy is going to have to become less reliant on borrowing and consumption, even if that is what is needed now to prevent the recession from worsening.

"We're going to need a less leveraged economy," he said. " . . . Individuals are going to have to save more." In addition, he said, government is going to have to pivot into a position where it is "a contributor of savings to the economy, rather than a drain," said Summers.

Speaking on ABC, White House Chief of Staff Rahm Emanuel pointed to recent quarterly reports from several major banks that they were turning healthy profits as a bright spot, but he cautioned against reading too much into them.

"That doesn't take away that some are going to need resources," Emanuel said. "We believe we have those resources available in the government as the final backstop to make sure that the 19 are financially viable and effective."

[JasonGG]

Have reporting newsagencies have misunderstood Obama? He said, "I'm asking for all of them to identify at least $100 million in additional cuts to their administrative budgets." Notice the plural "budgets." He wanted EACH of his 15 cabinet members to cut $100 million dollars EACH. That is $1.5 billion dollars! Not $100 million! What do you think about this?

[whosaid1]

'the government doesn't have to become more expensive and filled with mystique. When $100 million is stripped away, the substance remains and goes forward. '
Posted by pensacola8-2009

And what exactly....does that mean??

[pensacola8-2009]

President Obama has sent signals to his cabinet members that they can't have everything they want. $100,000,000 may not sound like much in the government spectrum of things, but what really counts is that it is clear - the government doesn't have to become more expensive and filled with mystique. When $100 million is stripped away, the substance remains and goes forward.

[whosaid1]

Once again.....it's $1.00 for every $35,500......people. Can you imagine your response to the car salesman telling you that he's going to give you a discount of $1.00 on that $35,500. "lemon" he's trying to sell you.....

[speakinup]

"You just have nothing you can hang your hat on against him, so here you go with the 'socialist' nonsense. If Obama is a 'socialist', then Bush was a despot. You know, if you stopped whining so much, maybe you would be able to see things clearly..
Posted by tj217-200


HA HA HA HA HA HA HA HA HA HA HA HA HA HA

You are in denial tj.

When a President lies to his public - over and over and over again - about even the little things like I didn't bow. Selma Got Me Born. I never studied the Koran. My father came here because JFK helped him. Father Was A Goat Herder. A Life Magazine Article Changed My Outlook On Life. My Church Is Like Any Other Christian Church. I Won't Run On A National Ticket In '08 because I won't have enough experience (lie and truth.)

To the larger things: I will stop pork. I will allow off shore drilling. There will be no corruption in my cabinet. I will not employ lobbiests. I will give hope. I know the economy better. I Blame My Early Drug Use On Ethnic Confusion. I Am Stronger On Foreign Affairs. I Wrote A Tough Nuclear Bill. I Am Tough On Terrorism. I will end income tax for seniors making less than $50,000. I will allow five days of public comment before signing bills. I will allow penalty-free hardship withdrawals from retirement accounts in 2008 and 2009.


If you call that whining - you ned to take the same ethics course as Barry.

Are you a recovering drug addict like Barry ?

[schotzy81]

Actually, this is a better way to put it:

It's like a family making $25,000 per year but spending $50,000 taking three months to figure out how to cut less than $145 from their budget. As if that's going to make a difference in bankruptcy court.

[schotzy81]

Let's put this in perspective. This is like a family spending $50,000 per year taking three months to figure out where to cut less than $145. Woop. Dee. Doo.

And this is news, why?

[speakinup]

"but I guess you are STUPID enough to believe these earmarks weren't put in the bill at the last minute, before or after he read it. - tj

Hey liberal - he made the remarks AFTER he signed it. Don't blame me if he is stupid TOO !


A socialistic program - DUH! What about his health plan to be set up by the government ?

Or how about taxing some folks and giving that same money to others ?


You are just too stupid to know he's a socialist, liberal !


What a freak of nature. (Note dangling element was intention - as both of you fit the criteria.)

[tibu987]

A pacifier for the taxpayer?

$100 million dollars is like a drop in tjhe ocean, a figure so small that in the big picture, it is negligible.

Cutting billions and trillions, now that would be impressive.

Gimme a break!

[speakinup]

tj - I'm glad you asked. Try this one on for size:

"I'm proud that we passed the recovery plan free of earmarks" - before the joint session of congress on 2/25.

Comments ?

Or, are you STUPID enough to believe the liar told the truth ?

[speakinup]

Seems to me I remember Barry saying he was going to save enough money out of the budget to pay for his agenda. 100 million is NOT the difference between last years budget and this years.

Caught lying again huh Barry.

It is getting to be so common, I thing he believes people are being lulled to sleep by it, so he can finally start his Socialist agenda.

Once America votes your minions out next election - I wouldn't count on it happening anymore.

And once he is out of office after the next election - I wouldn't count on his socialist plans staying in place.

[speakinup]

"Unlike you, I don't have to lie about anything. - tj



Obama does it all for him.

[far_point200]

Hmmm.... Very interesting.... I wonder how many times a day the Marine pictured above thinks about beating the krap out of Obama?

[sirmarion-2009]

Where were the Budget cuts,earlier? He signed a budget with over 8,500 earmarks now he wants to trim this budget??Obama needs someone to help him with his fuzzy math,even the Congressional Bodget Office(democratic controlled) says Obama's budget is not sustainable...Where is Obama's Brains,does he not think for himself?

[speakinup]

Obama throws out another smoke screen to cover his 3.5 TRILLION budget. President Barack Obama proposed his 2010 budget during February, 2009. He has indicated that health care, clean energy, education, and infrastructure will be priorities. The proposed increases in the national debt exceed $900 billion each year from 2010-2019, following a $2.5 trillion increase in the national debt for FY 2009, more than twice the record $1 trillion increase in 2008.


If your wife ran up the credit card, would you take the other credit card out and run it up because she thought it was ok ?

This is the logic the left would have us believe.

[jwind1]

I know....sorry...the "n" is nowhere near the "a".
Posted by Stuart2560 at 10:08 AM : Apr 20, 2009
Posted by Stuart2560 at 10:15 AM : Apr 20, 2009

and yet your buddy tj spelled money m-o-s-e-y

[jwind1]

dead off?
Posted by jwind1 at 10:12 AM : Apr 20, 2009


As opposed to your posting "dead on". Jwind....don't even attempt it with me. You will lose.
Posted by Stuart2560 at 10:13 AM : Apr 20, 2009

you already did with "dead off"

[jwind1]

I suspect you all are dead off.
Posted by Stuart2560 at 10:03 AM : Apr 20, 20

dead off?

[speakinup]

ENOUGH OF THIS SMOKE SCREEN CBS !!!!!



WHERE IS THE 3.5 TRILLION being spent ?

[jwind1]

Obama just gave AIG the rest of the mosey that was allocated to them in the first place. Now, I know you're slow, so do try to keep up. Moron...
Posted by tj217-2009 at 9:59 AM : Apr 20, 2009

"mosey"? folks the "s" is no where near the "n" on the keyboard