Federal Budget - FY 2012

Updated: December 19, 2011


House approves $1 Trillion Omnibus

Today the House approved the $1 trillion omnibus with a 296-121 vote. The bill will now go to the Senate, and then to the White House and avert a government shutdown. After debate, the House approved the bill, funding most areas, including spending for Defense, Energy and Water, Financial Services and General Government, Homeland Security, Interior, Labor/Health and Human Services, Legislative Branch, Military Construction/VA, and State/Foreign Operations through the 2012 fiscal year. The House failed to vote against some areas, such as standards and bans the use of District of Columbia funds for abortion. AAUW will continue monitoring this process for its impact on AAUW priorities and programs that serve students, the elderly, and working families.

- from AAUW's Washington Update for December 16, 2011.

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Time Running Out for Government to Pass Spending Bills

Lawmakers have to complete work on this year’s spending bills by Monday to have them on the floor by next Thursday, the day before the temporary spending bill runs out. Of the nine bills – part of a $1 trillion omnibus package – three remain contentious: those for the departments of Labor and Health and Human Services, for Interior and the Environmental Protection Agency, and for Financial Services. If the omnibus is not enacted by December 17, a stopgap measure will be needed to keep the federal government funded. AAUW is monitoring this process for its impact on AAUW priorities and programs that serve students, the elderly, and working families.

- from AAUW's Washington Update for December 9, 2011.

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$1 Trillion Omnibus Expected

Senate Majority Leader Harry Reid (D-NV) plans to present a $1 trillion omnibus spending bill soon, saying there isn’t enough time to pass necessary spending bills individually. The omnibus will need to be enacted by December 17, or a stopgap measure will be needed to keep the federal government funded. Reid says he hopes to work through this process, which would fund the government for the remainder of its fiscal year, instead of using a short-term continuing resolution. AAUW is monitoring this process for its impact on AAUW priorities and programs that serve students, the elderly, and working families.

- from AAUW's Washington Update for December 2, 2011.

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Federal Education Revenue Loses $9.8 Billion to Corporate Tax Evasion

An analysis from the National Education Association found that from 2008 to 2010 the federal government lost $222.7 billion in corporate tax avoidance, $9.8 billion of which would have gone to public schools and colleges. The analysis, based on a report by the Center for Tax Justice, found that lost revenue could have provided 126,568 new education jobs and enrolled 446,655 impoverished children in preschools around the country.

- from AAUW's Washington Update for November 18, 2011.

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President Obama Proposes $4.4 Trillion in Deficit Reduction

A deficit plan released by the administration on Monday proposes $4.4 trillion in deficit reduction over the next 10 years. This estimate includes the $1.2 trillion in discretionary spending cuts already approved by the president this summer and takes into account the proposed spending in the American Jobs Act. President Barack Obama stated that, if implemented, his plan will cut the deficit to 2.3 percent of GDP by 2021, will reduce the national debt as a share of the economy, and will create a “primary balance” by 2017, when current spending will no longer add to the debt.

The president proposes raising revenue by allowing the “Bush-era tax cuts” to expire, limiting deductions and exclusions for those making more than $250,000 per year, and closing loopholes and eliminating special interest tax breaks.

Specific spending cuts calculated in the president’s plan include $320 billion in Medicare and Medicaid changes that will reduce overspending but will not affect beneficiaries and will not increase the eligibility age for receiving Medicare benefits. The president has indicated his intent to veto any bill that proposes cuts to Medicare without raising taxes on the wealthiest Americans.

AAUW recognizes that these are tough budgetary times. As Congress and the president grapple with budgetary tradeoffs, it is vital that a balanced budget does not come on the backs of students, women, and working families. Americans’ ability to access education, job training, and health care should not be sacrificed by short-sighted, ideologically driven budget cuts.

- from AAUW's Washington Update for September 23, 2011.

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The Debt “Supercommittee” Will Take the Public’s Comments

The Joint Select Committee on Deficit Reduction, or debt supercommittee, launched a website this week that includes an opportunity for the public to submit their ideas on how to reduce our nation’s deficit. The supercommittee, created by the debt ceiling compromise bill and comprised of six members from each party, is charged with issuing a formal recommendation on how to reduce the deficit by at least $1.5 trillion over the next ten years. These recommendation must, by law, receive an up-or-down vote in Congress before December 23, 2011.

AAUW strongly encourages Congress to focus on job creation and training to alleviate the high national unemployment rate. This is a vital issue for all Americans, but AAUW believes this is particularly important to women, who are often the victims of economic insecurity and wage discrimination. Women are a crucial part of the society and AAUW encourages the JSC to pay close attention to them while making their suggestions.

- from AAUW's Washington Update for September 16, 2011.

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Deficit Reduction Committee Chosen

All twelve members of the Joint Select Committee on Deficit Reduction, the so-called “super committee,” were finalized this week. The group will be tasked with finding $1.5 trillion in deficit reductions across the next 10 years. In the Senate, Majority Leader Harry Reid (D-NV) chose Sen. Patty Murray (D-WA) as a committee co-chair and Sens. Max Baucus (D-MT) and John Kerry (D-MA) as panel members. Minority Leader Mitch McConnell (R-KY) selected Minority Whip John Kyl (R-AZ) and Sens. Pat Toomey (R-PA) and Rob Portman (R-OH). In the House, Speaker John Boehner (R-OH) selected Rep. Jeb Hensarling (R-TX) as a co-chair and Reps. Fred Upton (R-MI) and Dave Camp (R-MI) as panelists. Minority Leader Nancy Pelosi (D-CA) named Reps. Jim Clyburn (D-SC), Chris Van Hollen (D-MD) and Xavier Becerra (D-CA).

Because a deficit reduction deal that a majority of committee members supports will be fast-tracked through both houses of Congress with no possibility for amendments, committee membership is vitally important. If a deal is not reached by November 23 or not approved by Congress, then automatic across-the-board spending cuts of at least $1.2 trillion would be enacted over the next decade. The automatic enforcement mechanism excludes cuts to Medicare beneficiaries, low-income programs, and Social Security. However, cuts to these programs can be recommended by the special committee.

Women’s groups have raised concern that reductions in all or some of these programs will be a part of the long-term deal. AAUW is guided by the principle that the nation’s budget should not be balanced at the expense of vulnerable Americans, including students, women, and working families.

- from AAUW's Washington Update for August 12, 2011.

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Debt Crisis Rooted in GOP Transformation?

The Washington Post this week called the debt crisis a “natural outgrowth” of a transformation of the Republican party rather than a routine partisan clash. The article detailed the organizing efforts of the party’s “Young Guns,” such as House Majority Leader Eric Cantor (R-VA), who in recent years traveled the country recruiting candidates for office who were committed to shrinking government spending. The Post chronicled the shift of the debt ceiling vote from a routine measure to the Young Guns’ use of it as a leveraging tool to slash the budget.

AAUW strongly supports public budgets that balance individual rights and responsibility to the community. During the debt ceiling negotiations, AAUW paid close attention to the status of our priorities — especially retirement security and education funding — and AAUW members kept the pressure on their legislators to protect important programs like Social Security, which was signed into law 76 years ago on August 14.

- from AAUW's Washington Update for August 12, 2011.

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Debt Deal Reached

Congress and the White House reached a last-minute agreement earlier this week to avert default on the national debt. The legislation allows President Barack Obama to increase the debt limit by up to $2.4 trillion, with up to $400 billion of that available immediately. The agreement requires that nearly $1 trillion in spending cuts be implemented over 10 years through caps on discretionary spending. This includes programs such as Head Start, K–12 education, family planning, job training, and services for the elderly. However, changes in graduate student loan financing mean that the maximum Pell Grant award level will remain intact for at least the next two years.

The bill creates a special 12-member, bipartisan committee to identify up to $1.5 trillion in deficit reduction through changes to entitlements, discretionary programs, and tax reform. The committee’s proposal is subject to a straight up-or-down vote from Congress. If the package is not completed or not approved by Congress, then automatic across-the-board spending cuts of at least $1.2 trillion would be enacted over the next decade. The automatic enforcement mechanism excludes cuts to Social Security, Medicare beneficiaries, and low-income programs; however, cuts to these programs can be recommended by the special committee. Women’s groups have raised concern that reductions in all or some of these programs will be a part of the long-term deal.

During the debt ceiling negotiations, AAUW paid close attention to the status of our priorities — especially retirement security and education funding — and AAUW members kept the pressure on their legislators to protect important programs like Social Security. AAUW is guided by the principle that balancing the nation’s budget should not come on the backs of vulnerable Americans, including students, women, and working families. AAUW will continue to work to protect women’s opportunities and rights.

- from AAUW's Washington Update for August 5, 2011.

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CBO Predicts Federal Debt Trends

This week the Congressional Budget Office released a report projecting the federal government’s revenue and spending trends in coming years. CBO’s forecast highlights two possible long-term scenarios: an extended baseline scenario in which debt quickly levels off and an alternative fiscal scenario that shows debt rapidly increasing. Politicians would take no action in the extended baseline scenario, including allowing tax cuts from 2001 and 2010 to expire and Medicare payments to doctors to continue to decline. The alternative fiscal scenario has politicians taking action, including extension of these tax cuts. Most budget analysts believe the alternative scenario is likely to happen.

AAUW believes that a balanced budget should not come on the backs of students, women, and working families. Efforts to cut the deficit should include making the income tax system more equitable by letting the Bush tax cuts expire. Restoring our tax system to former tax levels where everyone bears an equal burden will go a long way to restoring our nation’s solvency.

- from AAUW's Washington Update for June 24, 2011.

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Senate Rejects Ryan, Obama Budgets

This week the Senate rejected a controversial House-passed budget plan to overhaul Medicare. Five Republicans joined Democrats in opposition (57-40) of the budget plan proposed by Rep. Paul Ryan (R-WI). The same day, the Senate voted (97-0) to reject President Obama's 2012 budget proposal as well as two other Republican budget plans. House Democratic Whip Rep. Steny H. Hoyer (D-MD) released a statement after the vote on the Ryan budget condemning Senate Republicans for supporting a plan that “puts insurance company bureaucrats in charge of seniors’ health care – a move that will more than double seniors’ health care costs.”

AAUW strongly opposes Ryan’s budget proposal as it is built on the backs of America’s families and robs seniors, students, and workers to help America’s corporations get richer. AAUW remains committed to urging Congress to pass a budget proposal that benefits America’s families.

- from AAUW's Washington Update for May 27, 2011.

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Spending Compromise Prevents Government Shutdown

On Thursday, the House and Senate passed a bill funding the federal government until October 1 and cutting $38.5 billion in spending between now and then. As part of the agreement between the Obama administration and House Republicans that led to the vote on the spending bill, the House and Senate voted on a Republican-supported measure that would ban any federal funds from going to Planned Parenthood. Although this legislation passed the House with a vote of 241-184, it was defeated in the Senate on a procedural vote. Congress will be out on recess for the next week, and when it comes back is expected to take up the contentious issues of raising the debt ceiling and setting the budget for FY2012.

- from AAUW's Washington Update for April 15, 2011.

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Tell Congress: Don't Build a Budget on the Backs of America's Families

Early next week, the House is expected to vote on Rep. Paul Ryan's (R-WI) proposed budget for fiscal year 2012. This plan, which has already passed out of committee, slashes nearly every program which invests in everyday Americans' education, employment opportunities, health care, and housing – while cutting corporate tax rates by ten percent. Ryan's proposal hacks away at Medicaid and Medicare, Pell grants and federal student loans, and eliminates numerous other investments in our country's long-term economic security and strength.

This budget is built on the backs of America's families, robbing seniors, students, and workers in the name of helping America's corporations get richer. AAUW unequivocally opposes Ryan's plan, which relies on flawed math and assumptions, and will do real and lasting harm to families, workers, and retirees.

Take Action! Send a message to your representative and tell him or her that Ryan's proposed budget for 2012 is bad for ordinary Americans and bad for the economy.

- from AAUW's Action Network for April 8, 2011.

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Federal Spending Battle Continues

On Friday, the House of Representatives voted 221-202 to enact a spending bill (H.R. 1) it passed in mid-February that cuts approximately $60 billion from federal spending between now and September 30. Described by House Republicans as the “Government Shutdown Prevention Act,” the legislation states that if the Senate does not pass a spending bill by April 8 (when the current spending bill ends), the cuts approved by the House will be authorized. The constitutionality of this provision has been challenged by many, and the Senate is not expected to take up this bill next week. If the House and Senate do not pass and send spending legislation to President Barack Obama by next Friday, the government could experience a shutdown.

- from AAUW's Washington Update for April 1, 2011.

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The Impact of House Republicans’ Budget Proposal on Women and Families

The National Women’s Law Center recently released state-by-state reports detailing the impact House Republicans’ budget proposal, if passed, would have on women and families. Among the statistics provided for each state, the report indicated the number of children who could lose essential Head Start and child care programs, the number of students who may not have the ability to continue funding their education, and the number of men and women who will lose access to indispensable health services. The report emphasized the impact of these cuts on girls, women, and families. The factsheets also made an apt comparison between the cost of saving these vital services and the cost of tax breaks for corporations and wealthy Americans provided for in H.R.1.

AAUW hopes that critical investments in our country’s future economic strength and in critical programs for women are not short-changed. Such an action would be short-sighted indeed at a critical juncture in our nation’s history.

- from AAUW's Washington Update for March 25, 2011.

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Government Funding Extended Three Weeks

Both legislative chambers passed yet another temporary funding measure this week, preventing a government shutdown. The three-week continuing resolution (C.R.), as this budgeting maneuver is called, passed the House 271-158 and the Senate by a vote of 87-13. Short-term funding measures have become necessary as the parties have been unable to reach an agreement on a longer-term federal budget for the remainder of the fiscal year (through September 30). If no budget is passed before the expiration of this C.R. on April 8th, the House and Senate will need to pass another short-term measure or risk a government shutdown. This most recent C.R. cuts current funding levels by a total of $6 billion, which coupled with previous cuts of $4 billion, meets House Republican’s desired cut levels of $61 billion between now and the end of the fiscal year. However, the programs the Republicans wish to cut, including many critical education, job-training, and health programs (in particular Title X family planning programs), have not yet been severely affected by cuts in the continuing resolutions.

Whether Washington’s next step is short-term or long-term, AAUW hopes that critical investments in our country’s future economic strength and in women’s reproductive health care are not short-changed. Such an action would be short-sighted indeed at a critical juncture in our nation’s history.

- from AAUW's Washington Update for March 18, 2011.

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Senate Votes Down Budget Proposals from Both Parties

This week, the Senate voted pass budget proposals from both Democrats and Republicans. The House-approved H.R. 1, which cuts more than $60 million from numerous federal programs, failed 44-56, with three Republicans, Mike Lee (R-UT), Jim DeMint (R-SC), and Rand Paul (R-KY), breaking with their party and voting against the measure. The alternate proposed by Senate democrats did no better, failing to pass 42-58. Sens. Webb (D-VA), Manchin (D-WV), Levin (D-MI), Mark Udall (D-CO), Hagan (D-NC), Sanders (I-VT), Kohl (D-WI), McCaskill (D-MO), Ben Nelson (D-NE), and Bill Nelson (D-FL) voted against the bill. With both parties’ proposals tried and failed, new opportunities for compromise may lead to a successfully passed budget; until then, short-term continuing resolutions will be required to fund the government and avoid a shutdown.

- from AAUW's Washington Update for March 11, 2011.

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Government Shutdown Averted, for Now

This week, the House and Senate passed a two-week “continuing resolution” (CR), a legislative technique that will allow government funding to continue through March 18. President Obama signed the CR into law later that day, which postponed a government shutdown that would have begun at the end of this week. This stopgap measure still makes about $4 billion in spending cuts from 2010 funding levels, specifically by eliminating earmarks and cutting a number of programs deemed wasteful by the President’s proposed 2012 budget.

However, the short-term measure did not make many of the sweeping cuts supported already by the Republican majority in the House through H.R. 1. One particularly egregious cut in H.R. 1 would prohibit federal funds for Planned Parenthood. If passed by the Senate, this measure which would extend government funding through the end of the fiscal year 2011, with about $60 billion in total budgetary cuts.

AAUW supports the right of every woman to safe, accessible, affordable, and comprehensive family planning and reproductive health care. Whether Washington’s next step is another continuing resolution or a longer term fix through the end of the fiscal year, we hope they leave funding that supports women’s comprehensive reproductive care and education at all levels intact.

- from AAUW's Washington Update for March 4, 2011.

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Reports Show Proposed House Budget Cuts Would Hurt Economy

Two recent economic reports suggest that budget cuts passed by the Republican House in H.R. 1, the Full-Year Continuing Appropriations Act would actually hurt the economy. A report by Mark Zandi, chief economist for Moody Analytics, reveals that the measure would result in a net loss of 700,000 jobs by the end of 2012. Another report prepared by Alec Phillips, an economist for Goldman-Sachs, was sent to clients. It advised that the cuts in H.R. 1 would shrink economic growth by 2 percent of GDP. Predicting that it is unlikely that the full spending cuts will actually be enacted, Phillips estimated that more modest cuts of $25 billion this year and $50 billion next year would lower growth by 1 percent of GDP.

AAUW supports fairness in compensation, equitable access and advancement in employment and vigorous enforcement of antidiscrimination statutes. Yet, in this already tough economy, the House’s proposed cuts would actually cut funding for enforcement of anti-discrimination laws.

Take Action! It is time to send a message to the Senate: You promised to create jobs and strengthen the economy — why would you support legislation that undermines these goals?

- from AAUW's Washington Update for March 4, 2011.

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