The truth behind the $38 billion budget cuts

Before we get too far in the new debate on spending, just a word about last week's news - the so called "historic compromise" that prevented a government shutdown and cut an astounding $38 billion from this year's budget.

Whether or not you thought the cuts came in the right programs, that's a big deal. Thirty-eight billion dollars is a lot of money.

Or is it?

Well, thanks to the Congressional Budget Office and some great reporting by the Washington Post, it turns out the government won't be cutting $38 billion in one year after all.

No, the real cuts will be more like $352 million!

You heard me right, $352 million, NOT $38 billion.

The rest? Mostly smoke, mirrors and accounting gimmicks.

Example: When projects like the Capitol Visitor Center came in under budget - it was supposed to cost $621 million and an actually cost less than $600 - auditors called the unspent, left over money a "spending cut." The Washington Post found that in 98 cases where the government had allotted money to federal agencies that was never spent, in each case it was called a "spending cut."

On big-ticket items like aircraft carriers whose full cost won't come due for five or six years, the entire cost was deducted as a "cut" in this year's budget.

We bemoan the fact that government can't break its spending habits, can't do what it needs to do, but what I find more disappointing - is appalling too strong a word? - is that try as they might, neither side can seem to find a way to tell the truth.

[johnluke1169]

Nothing is final until the bean counters count it. Boy I wish we had this kind of investigative reporting capabilities back during the Cuban Missile Crises, the Reaganomics resurge after the Carter administrations inflation, gas prices and shortages and 444 days in Iran. The immediacy of the internet is bringing us all closer together so the news can turn around what they figure out is the truth. Just remember CBS News, you're just one perspective and Fox News is still out there like a shark on President Obama. I currently deem President Obama and the entire White House out of the loop on national security. Read my facebook wall and notes for more info, and hey Katie Couric, I've invited you or another person from CBS News to come out to New Jersey and visit me somewhere near where I live for an interview. You could private message me on Facebook and provide me with a CBS News telephone number to call. Heck I've got time for a telephone interview.

[Sabiyah]

No smoke and mirrors here. No job since April 2010, my industry practically killed by administration for not being green. Looked into mortgage modification and after eight tries of never being able to satisfy paper work, hand carried it. Final results my mortgage went up $200.00 per month due to mortgage holder coluding with home owners insurance company who doubled my premimum due to falling credit score. I am officially low class now depicting me as requiring higher insurance rates. Further investigation via the white house and subsequent phone numbers sent to me led me to the only place any one was having success at mortgage modification, and that was via the Urban League, & Acorn, neither being to caucasian orientated. Yes, no smoke and mirrors, no work, foreclosure on the horizon, gas at $4.00 with no adverse remarks being heard from the main stream press against this President, yet I remember the crusification of Bush as gas rose. Today Standards and Poors providing us a look at ourselves in the mirror. Failing economy, unemployment truthfully in double digits, inflation out the behind, deficits for as far as you can see, and we (The Press) speak about the possible , even plausible chance of re-election for this complete failure of a President. Smoke and mirrors......

[knewsreply]

Thank you for making any cuts without injuring US's Seniors. Please put the next cut burden on those like the President, who are on a fixed income and don't want to burden our children.

[Mungam44]

Any chance that Paramount Studios could shoot a sequel to the movie, The Sum of All Fears, and use Washington D.C as the primary location?? It would probably be a real Hollywood blockbuster..
To cut down on actors' salaries, they could use existing residents who could play themselves.

[jtdev1]

This just goes to show you that they are not at all serious about dealing with our deficit problem.

They're going to wait until the world (china) cuts us off financially.

We're witnessing the end of the USA.

[Mungam44]

Any chance that Paramount Studios could shoot a sequel to the movie, The Sum of All Fears, and use Washington D.C as the primary location?? It would probably be a real Hollywood blockbuster..
To cut down on actors' salaries, they could use existing residents who could play themselves.

[tsigili]

Government is all smoke and mirrors, and they lie to us, every minute of the day.

[WriterOfMD]

I'm sorry Bob! Are you just now finding this out??? I've known of their lies for about 30 years, and, as one individual, I cannot find a way to penalize them for doing so. Do you know why? Because most Americans either don't know what is going on, don't WANT TO know what is going on, don't give a damn, or would rather form their opinions by listening to their friends who are like all those mentioned above. One can't see the forest if they keep their eyes and minds closed. Research guys. Much research and you will find out all the government's and the politicians dirty little secrets that they swear are not there. Wake up America ... politicians, big business, and foreign entities are taking you over and you don't even know it!!! Lies ... that is just the beginning of the whole awful mess we call home.

[peidmontcitygirl]

This brings up even more questions for me about the accounting end of things. If the government isn't actually spending what is expected on so many of these programs, then is our deficit as high as it is reported to be to start with? (The "smoke and mirrors" of accounting can work both ways..)

Furthermore, which programs are actually effected by the $352M?

[skeezix06]

I'm close to the point of completely giving up. The system is bought out, corrupted, whatever you want to call it, top to bottom. I don't think I believe it can be pulled around.

The only people either party in D.C. cares about are the wealthy and themselves. The rest of us don't exist as far as they're concerned.