Cutting Some Costs, Balking on Others
"What taxpayers need to know is that every single department of government has now been charged by the President to review in detail the nature of contracts that we’ve entered into in order to do what American families are doing, " Agriculture Secretary Tom Vilsack told reporters Wednesday. "American families are sitting down today and trying to decide, how do we save money, how do we eliminate unnecessary spending — their expectation is the government does the same."
The White House brought Vilsack and Janet Napolitano, the Secretary of the Department of Homeland Security, before the White House press corps to highlight cost-cutting measures the Obama administration has started implementing.
The secretaries made it clear that they were trying to trim their budgets, but in another way their commitment served to highlight other ways the administration is avoiding some of the "tough choices" in budgeting that President Obama insists his budget makes.
Vilsack, the former Governor of Iowa, said that officials at his agency have started teleconferencing instead of traveling for meetings, and that they had identified more than $18 million in savings that can be saved from modernizing their financial systems.
More pointedly, Mr. Vilsack said his agency was reviewing procurement and consulting contracts, and had canceled a $400,000 consultancy contract with Stan Johnson, "who had a close connection with the previous administration," Vilsack said.
"A substantial amount of money was spent for foreign travel," said Vilsack, who knew Johnson in his former capacity as vice provost of Iowa State University. "To be honest with you, we saw very little, if any, value to the USDA," Vilsack said. "The career folks who watched this process unfold in the last waning days of this last administration were very concerned about the process, the connections and relationships between people receiving this half-a-million-dollar contract, and what they intended to do with the resource, which the career folks felt was unnecessary and inappropriate. They made a very strong and powerful case to me that the process wasn’t followed as it should have been; their input was not valued as it should be."
Asked if Johnson might sue, resulting in costly litigation, Vilsack said, "I feel fairly confident on this one that we will prevail, and I’d be surprised if it’s questioned."
Napolitano said officials of her department were considering fleet management, use of contract employees, employee travel and cross-training as ways to save taxpayer dollars. She also said $17 million had been identified as a possible cost savings to combine plans to enlarge and improve points of entry being formulated by both the U.S. General Services Administration and Customs and Border Protection.
Additionally, the DHS science and technology unit worked with the Secret Service, said Napolitano, a former Governor of Arizona, to digitize more than 9,000 different types of ink samples.
"Not only will that allow us to improve our investigation of criminal and terrorist activities, but it reduces matching time for prints from days to minutes," Napolitano said.
But Vilsack indicated that he would oppose further efforts to eliminate or reduce agricultural subsidies beyond those President Obama targeted in his budget.
"This is a time when it’s very important for us to maintain the safety net as we look at a number of producers," he said. "I know that I receive probably a letter or two a day from Ag groups indicating the stress; commodity prices have fallen just as stock prices have fallen. And so it’s important and necessary for us to maintain an appropriate safety net."
When White House press secretary Robert Gibbs was asked how President Obama could continue to talk about making tough decisions on budgeting while also pledging to sign an omnibus spending bill he’s expressed reservations about because of the more than $8 billion of earmarks in the bill — a bill he’s been encouraged to veto because of the excess spending by both Republicans such as Sen. John McCain, R-Ariz., and Democrats such as Sens. Russ Feingold of Wisconsin and Evan Bayh of Indiana — he punted.
The omnibus spending bill, which is currently making its way through the Senate, is "the culmination of the legislative business from the previous fiscal year and the previous Congress," Gibbs said. "The president is greatly concerned — and I think that shows in the efforts that he’s taken to illuminate through transparency and accountability — wasteful spending and earmarks in legislation…The president believes that we can work with Congress to reduce wasteful spending in the future."
- jpt
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I guess Stan Johnson isn’t going to be invited to any of the Wednesday Night Austerity Parties at the White House.
Posted by: MayBee | March 4, 2009, 4:02 pm 4:02 pm
I guess Stan Johnson isn’t going to be invited to any of the Wednesday Night Austerity Parties at the White House.
___________________________________
No Conga line dancing at the White House for him.
Posted by: Peace Train | March 4, 2009, 4:14 pm 4:14 pm
It’s funny, out of one side of the mouth, the Obama administration chastises those that focus on $8 billion in earmarks because it only represents a tiny portion of the budget, but they drag Vilsack out to toot his own horn about cancelling a $500k contract and saving a few million. Talk about a tiny scalpel.
Posted by: Aaron | March 4, 2009, 4:14 pm 4:14 pm
Vilsack, the former Governor of Iowa, said that officials at his agency have started teleconferencing instead of traveling for meetings,
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Is this one of the things President Obama will be discussing in Columbus on Friday?
Or will VP Biden talk about it at the AFL-CIO winter conference in Miami tomorrow? Maybe he can talk to the union heads about the benefits of teleconferencing when their members are having to tighten their belts.
Posted by: MayBee | March 4, 2009, 4:14 pm 4:14 pm
The Wall Street Journal suggests that Mr. Obama’s policies are slowing, if not stopping, what would be a normal economic recovery. “From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence,”
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These cats have been sayings this all along. Now, The Journal finally caught up???
Posted by: two cats | March 4, 2009, 4:15 pm 4:15 pm
“they had identified more than $18 million in savings that can be saved from modernizing their financial systems.”
Similar to the plans to save money in Iraq by not continuing the troop level and operational tempo of 2008 indefinitely, they’ve decided to not patch Y2K bugs for the next 20 years, et voila.
Posted by: bgates | March 4, 2009, 4:25 pm 4:25 pm
17 million here, 400k there, but then dime out the Defense Department for 298 Billion over 7 years. Sure, makes sense.
Posted by: KR | March 4, 2009, 4:26 pm 4:26 pm
Obama telling them to check out things when Obama keeps hiring TAX CHEATERS into the top positions of the federal government.
Posted by: pester | March 4, 2009, 4:31 pm 4:31 pm
This is an excellent start and I’m sure we can count on this administration to find more ways to cut excess from their respective agencies. Good job Vilsack and Napolitano!!!
Posted by: eyeonyou | March 4, 2009, 4:38 pm 4:38 pm
We’ve identified this savings and we’ve identified that savings. lol
Oh, look there’s another possible cost savings.
However, no word that any of these “identified and possible” cost savings have actually been cut.
Except the lone 400k USDA contract apparently awarded to a Republican. lol
Posted by: Sigmonde | March 4, 2009, 4:39 pm 4:39 pm
Jake – The $8B in “earmarks” – representing under 2% of the total spending bill – is there any information available on the worthiness of this proposed earmark spending? We keep hearing about these earmarks – 40% of which were request by GOP lawmakers – but I’m seeing little or no reporting on whether or not this spending may actually be, you know, worthwhile. Earmarks aren’t always bad, despite what John McCain would have as us all believe. (We get it, Senator, you don’t request earmarks for your state. Here’s a freaking medal. Now about that Keating fellow…)
Posted by: OGLiberal | March 4, 2009, 4:41 pm 4:41 pm
The future is always tomorrow….
Posted by: TobB | March 4, 2009, 4:41 pm 4:41 pm
’2001, time of mild economic downturn but with a large budget surplus projected as far as the eyes can see, and Democrats stated the tax cuts are bad policy and should not be adopted.’
how’s that ‘invest social security in the stock market’ idea look now….
amazing what short memories Repubs have..
just like Bush & Co. revisionists to the end……
Posted by: Blue | March 4, 2009, 4:42 pm 4:42 pm
“how’s that ‘invest social security in the stock market’ idea look now….”
You obviously don’t even understand what you are criticizing. The plan proposed was for giving anyone the option to participate and participation was limited in the amount you could invest.
What do you see as wrong in letting people make decisions of their own free will? Do you have a nanny who makes all your personal and financial decisions?
Posted by: Sigmonde | March 4, 2009, 4:45 pm 4:45 pm
tx jake for probing the admin. for the moderates of us who prize the investments on healthcare, energy and education, it’s important that we’re serious about reforming the existing system. Currently, obama is a bit too reluctant of stepping on toes. I understand the caution since he’s been in office for only 6 weeks, and he’s feeling the atmospherics in washington. But if we don’t speak out, he won’t have any incentive to push the boundaries on reducing long term discretionary spending. so yeah, tx.
Posted by: lupercal | March 4, 2009, 5:10 pm 5:10 pm
What is wrong with pork spending? The reason people want pork is because of the perception that somebody ELSE is paying for it. A pork project may have some virtue, but that does not mean the federal government should pay for it. For example, spending $300,000 of federal money for the Montana World Trade Center (in the Omnibus bill) may be of benefit to Montana, but even assuming it is, why shouldn’t Montanans pay for it themselves? If it is not worth their tax dollars, then why should it be worth mine. The federal government should spend tax dollars only for things that benefit the nation as a whole or that cannot be effectively done by states or private interests. Sending trillions of dollars to Washington in tax revenues only to have it sent back for parochial projects is unavoidably inefficient and gives politicians the power to control federal largesse, which is what opens the door to corruption. If federal politicans didn’t control so much local spending, there would be far less reason to try to influence them. Another example in the Omnibus bill is $2.2 million for the center for grape genetics in NY. Presumably that will provide some benefit to grape growers and winemakers–let their trade association fund it–especially when we have to borrow the money to do it!
Posted by: John F. | March 4, 2009, 5:17 pm 5:17 pm
“Vilsack…said…that they had identified more than $18 million in savings that can be saved from modernizing their financial systems.”
What?? What kind of “financial systems” is he talking about? It’s the Department of freaking Agriculture for Pete’s sake.
Posted by: KJo | March 4, 2009, 5:26 pm 5:26 pm
As Jake reported earlier today, there is $8 billion in earmarks in the omnibus bill.
Jake further reported that although the administration is acting like there is nothing they can do about those earmarks, the bill is being considered and negotiated right NOW.
So there most certainly input the president COULD have if he chose.
But Obama is once again lying when he says to Americans he will trim the fat and earmarks.
Posted by: Peach | March 4, 2009, 5:29 pm 5:29 pm
OGLiberal tells us that “Earmarks aren’t always bad, despite what John McCain would have as us all believe.” Well, during the campaign, Barack Obama agreed with McCain, neatly stealing the issue from the consistent reformer. And after the election, President Obama promised to reform the system and cut out the earmarks– just not yet. And now we have DEmocrats Evan Bayh and Claire McCaskill supporting McCain’s anti-earmark amendment, which was of course defeated. McCain is hardly a crank crying in the wilderness.
So is this where you break from your president? He’s on record as being opposed to earmarks (now that he’s not in the Senate to request them any more). Somehow, I didn’t think so.
Posted by: GetReal | March 4, 2009, 5:30 pm 5:30 pm
I hope everyone likes that new energy tax we’re all going to pay.
Obama promised last year that electricity prices “would necessarily skyrocket”.
Posted by: Peach | March 4, 2009, 5:32 pm 5:32 pm
Even the MSM is catching on to Obama’s energy tax:
An editorial in this morning’s Las Vegas Review-Journal reaffirms the point, making clear that the “tax the administration proposes for U.S. companies will result in higher energy costs for all consumers and businesses, not just the rich.” According to today’s Wall Street Journal, that’s a fact that Ways & Means Committee Ranking Member Dave Camp (R-MI) made clear during Secretary Geithner’s appearance before the panel yesterday:
Posted by: Peach | March 4, 2009, 5:34 pm 5:34 pm
Is this for real? Team Obama announces TRILLIONS of new spending and then trots out a spokesman to brag about cutting $400k?
This has got to be some sort of political parody.
OBAMA LIED, THE ECONOMY DIED.
Posted by: OL | March 4, 2009, 5:35 pm 5:35 pm
=====Or will VP Biden talk about it at the AFL-CIO winter conference in Miami tomorrow? Maybe he can talk to the union heads about the benefits of teleconferencing when their members are having to tighten their belts.
Posted by: MayBee | Mar 4, 2009 4:14:51 PM=====
Will he have his tin star by then?
Posted by: Axey | March 4, 2009, 5:43 pm 5:43 pm
“Obama promised last year that electricity prices “would necessarily skyrocket”.”
Actual quote:
You know, when I was asked earlier about the issue of coal, uh, you know — Under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.
They — you — you can already see what the arguments will be during the general election. People will say, “Ah, Obama and Al Gore, these folks, they’re going to destroy the economy, this is going to cost us eight trillion dollars,” or whatever their number is. Um, if you can’t persuade the American people that yes, there is going to be some increase in electricity rates on the front end, but that over the long term, because of combinations of more efficient energy usage, changing lightbulbs and more efficient appliance, but also technology improving how we can produce clean energy, the economy would benefit.
Posted by: Ryan C | March 4, 2009, 5:44 pm 5:44 pm
Ryan C,
I just read your post quoting Obama saying exactly what Peach said he said.
Posted by: Axey | March 4, 2009, 5:46 pm 5:46 pm
“I hope everyone likes that new energy tax we’re all going to pay.”
Title of John Boehner’s Leader Alert
“Dems’ Energy Tax: The Administration’s Budget Hikes Taxes on Every Single American ”
Sections are then copy and pasted to this blog.
Posted by: Ryan C | March 4, 2009, 5:51 pm 5:51 pm
Oh Ryan, context is only important when the person you are defending needs it.
Posted by: Axey | March 4, 2009, 5:51 pm 5:51 pm
The omnibus spending bill, which is currently making its way through the Senate, is “the culmination of the legislative business from the previous fiscal year and the previous Congress,” Gibbs said.
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It’s not too late to fix this bill. Our economic situation is different than when this bill was put together last year.
It’s time for change. Change the bill to match current economic conditions and begin the task of better stewardship for the future.
Posted by: mad | March 4, 2009, 5:56 pm 5:56 pm
“Maybe he can talk to the union heads about the benefits of teleconferencing when their members are having to tighten their belts.”
A conference of that size does not easily lend itself to webinars or teleconferences.
Posted by: Ryan C | March 4, 2009, 6:04 pm 6:04 pm
Ryan dear -
Once again, I’m quoting from the newspaper. Maybe they are quoting John Boehner.
Posted by: Peach | March 4, 2009, 6:04 pm 6:04 pm
I LOVE the new energy tax. This is not just a matter of the environment, it’s a matter of national security. We have to reduce our dependencies.
The money may be rebated to stop the regressive nature of the tax. But we have to be weaned off our piggy energy habits.
Wake up, people. We have a crisis that we have ignored for the last 30 years. It’s time to solve it.
Posted by: V | March 4, 2009, 6:38 pm 6:38 pm
Sigmonde:
‘the plan’ was to give their pals on wall street more money to steal, …… just like they gave their
buddies all that mysterious sub contracting war work in Iraq…. you obviously don’t understand the reality of the situation
Posted by: Blue | March 4, 2009, 6:45 pm 6:45 pm
“‘the plan’ was to give their pals on wall street more money to steal,”
Yeah, sure. It was all another conspiracy, huh?
Posted by: Sigmonde | March 4, 2009, 6:59 pm 6:59 pm
President Obama: Please veto
this bill!
Earmarks are for re-election of Congressman and Representatives. Vetoing this bill is a vote for your re-election! Your second term is in the bag – don’t talk us out of it. Follow through on your campaign promises, and fight the old guard. We are with you!
Warmest regards
Posted by: Harold Hannickel | March 4, 2009, 7:00 pm 7:00 pm
OGLiberal
You want to know if the earmarks are “worthy”? You be the judge if these should be priorities:
Congress still found nearly $1 million ($950,000) for Congressman Jose Serrano to build footpaths for bird watching on North Brother Island, an abandoned spit of land in the East River that you can’t even get to without a boat.
And the Italian American Museum is getting $475,000 from Jerrold Nadler and Gary Ackerman to help expand the display of its collection, including a puppet from Sicily and a knife sharpening cart.
$2.2 million to study grape genetics in upstate New York, the pet project of three upstate congressmen
* $693,000 for Congressman James Walsh to control the cormorant bird population in New York, apparently because they eat smallmouth bass.
* $214,000 so Stony Brook University can teach scientists how to communicate with the media, courtesy of Reps. Timothy Bishop and Steve Israel.
* $400,000 for the rotational grazing of cows in New York.
* $451,000 to study cranberry and blueberry disease and breeding in New Jersey.
* $285,000 for Rep. Anthony Weiner to build a lakeside center in Prospect Park.
Posted by: jason | March 4, 2009, 7:01 pm 7:01 pm
Ryan C, glad to see you pulled out the whole quote, so we can clearly see that candidate Obama said EXACTLY what Peach said he said. What point are you making by giving us the context? It does not change the fact that he admitted that what he then wanted to do and now is proposing to do is going to be extremely expensive. Is this something we seriously should be doing in the face of the current extremely fragile economy? He is touting his tax cuts for 95% of working families as a way to help working families deal with the recession and begin to rebuild their economic foundation. Then he turns around and touts a measure, with your apparent approval, that will wipe out any gains from those tax cuts and far more. You do surely agree, as he pointed out, that the costs of the cap and trade system will be passed along to consumers, right?
Posted by: moderate | March 4, 2009, 7:42 pm 7:42 pm
Jason, thanks for the great list– you did a better job than McCain in focusing on really egregious examples of the earmarks in this bill. Nicely done! Hope that answered OGLib’s concerns, but somehow I do not think s/he will be troubled by this list as you and I are.
Posted by: moderate | March 4, 2009, 7:46 pm 7:46 pm
How do we get the tax payers to buy a swing set for our kids?
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I bet you wonder why mo one pays any attention to you. Your so negative I feel sorry for you. Not Really
The playground equipment, paid for by the Obamas, was installed early this afternoon by the South Dakota swing set company, Rainbow.
Posted by: Thinking | March 4, 2009, 8:00 pm 8:00 pm
@ Ryan C
Since you enjoy pulling quotes from The Community Organizer, could you please pull the one where he lectures the American people about keeping our tires properly inflated? I love that one!
Posted by: tjp612 | March 4, 2009, 8:52 pm 8:52 pm
“How do we get the tax payers to buy a swing set for our kids?”
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Again, the swing set purchased by the Obama family – try to get your implications and facts correct. Some people get so much wrong it’s hardly worth reading their comments. Your agenda is showing.
Posted by: Dave Robson | March 4, 2009, 10:07 pm 10:07 pm
Great article in BusinessWeek by Ben Steverman called ‘Did Obama cause the Stocks to Slide’. Worthy & informative read…best bet to google it since this site deletes links.
Posted by: Hope | March 5, 2009, 7:31 am 7:31 am