Wednesday, January 27, 2010

Fwd: Important Points about President Obama's Proposed Three-Year Freeze of Non-Security Discretionary Funding

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James F. Valley, Mayor
(870)817-4035 Cell Phone
(800)517-7240 Fax

---------- Forwarded message ----------
From: "Dora Muhammad" <dmuhammad@ncbm.org>
Date: Jan 27, 2010 12:53 PM
Subject: Important Points about President Obama&apos;s Proposed Three-Year Freeze of Non-Security Discretionary Funding
To: <dmuhammad@ncbm.org>

The White House has issued today the information that follows below regarding the three-year freeze of non-security discretionary funding proposed by President Obama.

 

Dora Muhammad

Director of Communications

The National Conference of Black Mayors

Centennial Tower

101 Marietta Street, Suite 3410

Atlanta, GA 30303

(404) 765-6444 ext. 104

(404) 765-6430 fax

www.ncbm.org

 

 

President Obama Proposes Three-Year Freeze of Non-Security Discretionary Funding

 

When the President took office, the economy was on the brink of a depression. The economic crisis required that we take immediate and extraordinary steps to prevent a further collapse. Not all of these steps were popular, but the President did what was right for our country's future.

 

Without them, we faced the real prospect of a second Great Depression. A year later, the economy is back from the brink - and is growing again.

 

But as every American family and business knows, we have much more to do so that every American who wants to work can find a job - and to begin to reverse the declines middle-class families saw not just these past few years, but for over a decade: working harder for less; college becoming more unaffordable, health care costs skyrocketing; home values plummeting; and retirement savings dwindling and becoming less secure.

 

We also have to change business as usual in Washington. Because of the irresponsibility of the past decade, we've seen a projected 10-year surplus of over $5 trillion at the end of the Clinton administration turn into a projected 10-year deficit of over $8 trillion the day President Obama took office.

 

We'll take the common-sense steps that every family and small businesses take with their budgets and make sure we spend money wisely. We'll end programs that don't work, streamline those that do, crack down on special interest access, and bring a new responsibility for how tax dollars are treated. It's time to get our fiscal house in order so we don't pass on a crippling debt to our children and grandchildren.

 

That is why the President's Budget is proposing to freeze non-security discretionary funding (that is, discretionary funding outside of defense, homeland security, veterans affairs, and international affairs) this year and to maintain the freeze for two more years. 

 

 

 

Here are some important points about the proposal:

 

o   The freeze would not affect mandatory programs such as Medicare, Medicaid, and Social Security, nor our efforts to protect our nation against attack.

 

o   The freeze in the non-security part of the discretionary budget is not an across-the-board one.  Rather, we have gone through the budget carefully and are eliminating programs that don't work while investing in and reforming programs that do. We are investing in the things that help spur job creation and economic growth.

 

o   The freeze would cut $250 billion from the deficit over the next decade.

 

o   Under the 2011 budget, non-security discretionary spending would fall to its lowest share of the economy in more than 50 years by the middle of the decade.