President Obama will propose $20 billion in spending cuts in his FY2011 budget on Monday.
The savings will come from 120 terminations, reductions, and various other savings.
In a blog post today White House communications director Dan Pfeiffer details some of the proposed cuts:
- Consolidating 38 K-12 Education Department programs into 11 new programs;
- Cutting the "Save America’s Treasures" and "Preserve America" grant programs at the National Park Service. Save America's Treasures started the beginning of this century and was supposed to last only two years. "Both programs lack rigorous performance metrics and evaluation efforts so the benefits are unclear," Pfeiffer writes;
- Eliminating the Advanced Earned Income Tax Credit (AEITC). The White House says that only a tiny number — 3 percent — of EITC eligible taxpayers, or 514,000, claim the AEITC, with a high error rate — "80 percent of recipients did not comply with at least one program requirement";
- Terminating the Brownfields Economic Development Initiative, which the president says is a small program that duplicates larger programs. "Instead, the Administration consolidates its support for the brownfield clean-up — funding larger programs and thereby reducing overhead costs," Pfeiffer writes;
- Ending Abandoned Mine Lands Payments to Certified States. Changes made to the Abandoned Mine Land program, established to restore abandoned coal mine lands, permit funds to go to states and tribes who already have cleaned up these mine.
Last year the president proposed cutting $11.5 billion in discretionary, and Congress approved almost 60 percent of those cuts, for a savings of $6.8 billion. As detailed by the Committee for a Responsible Federal Budget and the Washington Times, this rate exceeds the 40 percent rate the Bush White House achieved in its best year.
The $20 billion in budget savings should be seen in the context of the entire budget and the massive national debt, which we took a look at earlier this week on World News. Over the next 10 years, the federal government is projected to take in $36.8 trillion in revenues while spending $42.9 trillion.