A federal budget is like a cargo ship. A ship leaves port loaded
with goods; a budget leaves the White House loaded with goodies.
Like a ship, the budget makes many stops before it reaches its
final port. And when it arrives, it's usually carrying different
things than when it started.
That's why caution is in order when it comes to President Bush's proposed 2006
budget. It's an excellent step in the right direction. If
implemented, it actually would reduce non-defense discretionary
spending for the first time in years. It also would kill off, or
greatly reduce, some 150 wasteful or redundant programs. That alone
would save $20 billion next year.
Plus, it would begin to address the even greater financial
problems of entitlement programs, such as Social Security and
Medicaid. At the same time, the budget would increase spending in
critical areas, such as homeland security and the military. And it
would make permanent the pro-growth tax cuts enacted during
President Bush's first term.
But now that this ship is underway, the difficult work of
navigating safely begins.
Liberals lined up to condemn the budget as soon as it was released.
House Minority Leader Nancy Pelosi, D-Calif., for example, claimed
it "is fiscally irresponsible, morally irresponsible and a failure
of leadership." That response was predictable. Yet the president's
Republican allies haven't exactly come out in favor of his budget,
either.
House leaders Dennis Hastert, R-Ill., Roy Blunt, R-Mo., and Jim
Nussle, R-Iowa, described the plan as merely a "starting point." As
if that signal wasn't clear enough, Sen. Judd Gregg, R-N.H., of New
Hampshire pointed out that lawmakers may like the "concepts" of the
budget, but "we don't have to follow those programs."
Their message seems to be, "Thank you, Mr. President. We'll take it
from here." But this year, the White House shouldn't let that
happen. If it does, none of the proposed spending cuts are likely
to happen. Here's why.
With the usual budget process, the president proposes a spending
plan in February. It goes to Congress, and lawmakers spend months
working on it. Some time in the fall, the compromise budget
appears. Congress passes it -- in recent years, often as a single
spending bill. The president has no choice but to either sign the
whole thing (even though it no longer resembles his original
proposal) or veto it and risk another government shutdown.
Unfortunately, every program, no matter how small or wasteful, has
at least one supporter on Capitol Hill. So if the president doesn't
fight for his planned spending cuts, some lawmaker will manage to
slip them back into the budget, one by one.
Consider Amtrak. After years of
supporting the railroad through wasteful federal subsidies, the
president finally said, "enough." He eliminated Amtrak's
subsidy.
It's about time. Amtrak has received more than $29 billion in
federal support through the years, including $1.2 billion this
year. The railroad loses money on every route it runs, and it
serves only a tiny fraction of our transportation needs. In fact,
it carries less than 1 percent of the intercity passenger traffic.
That's no way to run a railroad.
But Amtrak has staunch supporters in Congress. As the year
progresses, we'll be able to tell if the president's plan is on
track by watching the railroad. If its usual big subsidies end up
in the final package, it will signal that the president's pitch for
fiscal responsibility has failed.
Another key program to watch is farm subsidies. The
president wants to trim them by $8 billion over the next decade.
That's an excellent idea.
Farm subsidies are little more than corporate welfare. Though
presented as a helping hand for small family farmers, two-thirds of
these subsidies actually go to only 10 percent of the nation's farm
operators. Those aren't families. They're big agribusinesses that
don't need federal help to stay in business.
But on Capitol Hill, the farm lobby already is fighting to keep its
share of the federal pie. As with Amtrak, the amount that Congress
eventually devotes to farm subsidies in the final budget will be a
good indication of whether President Bush got the budget he
wanted.
The president needs to pilot the federal budget ship carefully. If
he turns over the wheel to lawmakers, he won't recognize the budget
when it comes back to him.
However, if he stays involved in the process and insists that
lawmakers work with him, there's no reason we can't arrive safely
in port with a smaller federal budget -- and a lower burden on the
American taxpayer.
Ed Feulner is president of the Heritage Foundation
(heritage.org), a conservative think tank based in
Washington.
COMMENTARY Budget and Spending
Averting a Budgetary Shipwreck
Feb 11, 2005 3 min read
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