8/22/2019 4 Ways that Austerity Demands Have Reached New Extremes

http://slidepdf.com/reader/full/4-ways-that-austerity-demands-have-reached-new-extremes 1/6

1 Center or American Progress |  4 Ways that Austerity Demands Have Reached New Extremes

4 Ways that Austerity Demands

Have Reached New ExtremesHarry Stein September 17, 2013

 Alhough Republicans have called or deep spending cus since aking over he House

o Represenaives in he 2010 miderm elecions, heir auseriy demands became even

more exreme his year. Te spending levels in his year’s House Republican budge

are dramaically lower han he House Republican budges rom he pas wo years. In

ac, las year, he House overwhelmingly rejeced a proposal or severe auseriy nearly idenical o he budge i now embraces. Tis year’s spending cus are so severe ha he

House Republican caucus has been unable o pass acual spending bills o implemen

is own budge plan, since hose bills would have o make deep and specic cus ha are

 beyond he pale o wha even mos conservaives would suppor.

House Republicans claim ha heir demands or more auseriy are a response o explod-

ing budge decis,1 bu in ac, he ederal budge deci is shrinking, no growing, due in

par o massive spending cus ha Congress has already enaced. Tose spending cus were

so large ha Senae Democras now accep spending levels equivalen o previous House

Republican budge proposals. Ye House Republican leaders sill insis on new spendingcus in exchange or prevening a governmen shudown on Ocober 1.

 This year’s Ryan budget cuts spending much more than past Ryan budgets

Te House Republican leadership is asking or spending levels ha are abou 8

percen lower han wha hey asked or in he pas wo years. In ac, i his year’s

spending demands were in line wih heir previous demands, here would be no

 budge gridlock. Ta’s because he proposed level o spending in he Senae budge

resoluion or scal year 2014 is almos idenical o hose endorsed by he Republican

caucus or FY 2012 and 2013.

Mos numbers in a budge resoluion are nonbinding saemens o principle, bu he

major excepion is he overall limi on discreionary spending or he upcoming scal

 year. While spending or some programs such as Social Securiy and Medicare occurs

auomaically, Congress mus approve discreionary spending every year in appro-

8/22/2019 4 Ways that Austerity Demands Have Reached New Extremes

http://slidepdf.com/reader/full/4-ways-that-austerity-demands-have-reached-new-extremes 2/6

2 Center or American Progress |  4 Ways that Austerity Demands Have Reached New Extremes

priaions bills. Tese bills decide how o allocae

unding wihin he budge’s overall spending limi

o a wide variey o services, benes, invesmens,

and programs, including everyhing rom naional

deense o inrasrucure o research o he many 

oher key secors wihin he discreionary budge.2

For FY 2012 and 2013, he House budge reso-

luions auhored by House Budge Commitee

Chairman Paul Ryan (R-WI) and endorsed by he

Republican caucus proposed discreionary spend-

ing levels o $1,062 billion and $1,049 billion,

respecively, adjused o 2014 dollars. Te FY 

2014 Senae budge resoluion auhored by Sen.

Paty Murray (D-WA) and endorsed by Senae

Democras advocaes a discreionary unding level

o $1,058 billion—jus slighly higher han he2013 Ryan budge and acually lower han he 2012

Ryan budge.

I his year’s Ryan budge were in line wih previous

 years, here would be litle chance o a governmen

shudown because Democraic leadership in he

Senae and Republican leadership in he House

 would be in agreemen. Unorunaely, ha is no

he case. Te curren spending disagreemen is

enirely because he House Republican leadership iscurrenly demanding an even lower spending limi

han hey endorsed jus las year.

 The House previously rejected spending

levels similar to this year ’s Ryan budget

Te Republican leadership’s call or an even lower

discreionary spending level is ar more exreme

han previous Ryan budges, bu i is close o he

auseriy previously proposed by he ulra-conser-

 vaive Republican Sudy Commitee, or RSC.

In 2013, he RSC budge called or $931 billion in

discreionary spending, or $951 billion in 2014 dol-

FIGURE 2

This year’s Ryan budget is similar to last year’sultra-conservative Republican Study Committee budget

Base discretionary spending allocations, in 2014 constant dollars

$800,000

$1,000,000

$900,000

$1,100,000

$1,050,000

$950,000

$850,000

2013 Ryan budget 2013 Republican StudyCommittee budget

2014 Ryan budget

Sources: U.S. House of Representatives Committee on Appropriations, “Suballocations to Subcommittees,

Fiscal Year 2014 Budget Authority and Outlays [in millions of dollars]”; U.S. House of Representatives

Committee on Appropriations, “Suballocations of Budget Allocations for Fiscal Year 2013”; Rep Scott Garrett,

“Cut, Cap, and Balance: A Fiscal Year 2013 Budget” ( Washington: The Republican Study Committee, 2012),

available at http://rsc.scalise.house.gov/uploadedles/rsc_fy_2013_bud-

get_cut_cap_and_balance_summary--nal.pdf.

FIGURE 1

This year's Senate budget is similar to previous Ryan budgets

Base discretionary spending allocations, in 2014 constant dollars

$800,000

$1,000,000

$900,000

$1,100,000

2012 Ryanbudget

2013 Ryanbudget

2014 Senatebudget

2014 Ryanbudget

$1,050,000

$950,000

$850,000

Sources: U.S. House of Representatives Committee on Appropriations, “Suballocations to Subcommittees,

Fiscal Year 2014 Budget Authority and Outlays [in m illions of dollars]” (2013), available at http://appropria-

tions.house.gov/uploadedles/05_21_13_fy_2014_report_on_the_suballocation_of_budget

_allocations.pdf; U.S. House of Representatives Committee on Appropriations, “Suballocations of Budget

Allocations for Fiscal Year 2013” (2012), available at http://appropriations.house.gov/uploadedles/fy13-full-

committee302b.pdf; U.S. House Committee on Appropriations, “Suballocation of Budget Allocations for

Fiscal Year 2012” (2011), available at http://appropriations.house.gov/uploadedles/reportonthesub-

allocationofbudgetallocationsforfy2012.pdf; U.S. Senate Committee on Appropriations, “FY 2014

Discretionary—Senate Allocations” (2013), available at http://www.appropriations.senate.gov/news.cfm?-

. i i .

8/22/2019 4 Ways that Austerity Demands Have Reached New Extremes

http://slidepdf.com/reader/full/4-ways-that-austerity-demands-have-reached-new-extremes 3/6

3 Center or American Progress |  4 Ways that Austerity Demands Have Reached New Extremes

lars.3 Te spending level now embraced by House Republicans is jus 1.6 percen more

han he RSC’s FY 2013 budge. Las year, he RSC budge was considered so exreme

ha more han 100 House Republicans voed agains i when i was overwhelmingly 

rejeced on he House oor.4 When he House Appropriaions Commitee considered

only he discreionary spending cap in ha budge, i was soundly rejeced on a commi-

ee voe o 4 o 44.5

Congress has already enacted massive

spending cuts

Senae Democras now accep discreionary spend-

ing levels ha are similar o previous Ryan budges

 because Congress has already cu an enormous

amoun o discreionary spending—$1.5 rillion

over 10 years, no including sequesraion.6 Aer

several ense rounds o negoiaions over spendinglevels conneced o prevening governmen shu-

downs and raising he deb ceiling, Congress agreed

o sric discreionary spending caps in he Budge

Conrol Ac o 2011. Te Senae is working under

hese spending caps, while he House is demanding

a new round o auseriy.

In FY 2014, he Budge Conrol Ac will cu

spending by 11 percen rom inaion-adjused

FY 2010 levels, no including unding or warsand emergencies and no adjusing or oher

acors such as populaion growh.7 Te overall

spending cus have been even deeper when wars

and emergencies are included—so much so

ha we have acually exceeded he Republican

Sudy Commitee’s goal. Te Republican Sudy 

Commitee has consisenly called or reezing

oal discreionary spending a FY 2008 levels.8 

 When all discreionary spending is considered,

including or wars and emergencies, FY 2013’s

enaced spending is already well below FY 2008

levels—even wihou he addiional sequeser

spending cus—boh in overall size and as a share o he economy.

FIGURE 3

Discretionary spending is already below 2008 levels

Total discretionary spending, in 2014 constant dollars

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

2007 2008 2009 2010 2011 2012 2013

Source: Oce of Management and Budget, “Public Budget Database – Budget Authority,” available at

http://www.whitehouse.gov/sites/default/les/omb/budget/fy2014/assets/budauth.xls

FIGURE 4

Discretionary spending is already below 2008 levels

Total discretionary spending as a share of GD P

0%

2%

4%

6%

8%

10%

12%

2007 2008 2009 2010 2011 2012 2013

Source: Oce of Management and Budget, “Public Budget Database – Budget Authority.”

8/22/2019 4 Ways that Austerity Demands Have Reached New Extremes

http://slidepdf.com/reader/full/4-ways-that-austerity-demands-have-reached-new-extremes 4/6

4 Center or American Progress |  4 Ways that Austerity Demands Have Reached New Extremes

New austerity forces House appropriators to cut programs they

previously supported

Te consequences o he new auseriy demanded by his year’s Ryan budge are becom-

ing clear as he House Appropriaions Commitee produces—or in one case ails o pro-

duce—discreionary spending bills or FY 2014. Tese bills make deep cus even when

compared o he ausere unding levels ha he same commitee approved one year ago.o be clear, he House Appropriaions Commitee was operaing under very low spend-

ing caps las year, bu his year’s proposed spending caps are much lower.

Congress approves discreionary 

spending in 12 annual appro-

priaions bills, and he House

reduced unding or some o 

hese spending bills o levels ha

are ar below wha he House

suppored las year. Ta meanHouse members would have o

nd new places o cu, above and

 beyond he large spending cus

ha hey endorsed las year.

Bu here were no easy cus le

 wihin he areas argeed by 

he House. Insead, he House

produced a series o spend-

ing bills ha made deep cuso programs ha even House

Republicans consider successul

or a leas necessary. Te ollowing programs would ake paricularly big his, since

hey are unded by spending bills or which he House has allocaed a leas 5 percen

less money han las year.

• ARPA-E: Te House energy and waer appropriaions bill cus groundbreaking research

a he Advanced Research Projecs Agency - Energy, or ARPA-E, o $50 million9—75

percen less han he House suppored las year.10

• NASA: Te House commerce, jusice, and science appropriaions bill12 provides $1

 billion less or invesmen in exploraion by he Naional Aeronauics and Space

 Adminisraion, or NASA, han he same bill recommended las year.13

FIGURE 5

House spending bills cut far more than the same bills did last year

FY 2014 House appropriations subcommittee allocations relative to FY 2013 levels

-20%

-15%

-10%

-5%

0%

5%

    F    i   n   a   n   c    i   a    l   s   e   r   v    i   c   e   s ,   g   e   n   e   r   a    l   g   o   v   e   r   n

   m   e   n    t

    L   a    b   o   r ,    h   e   a    l    t    h ,

   a   n    d   e    d   u   c

   a    t    i   o   n

    I   n    t   e   r   n   a    t    i   o   n   a    l   a

    ff   a    i   r   s

    T   r   a   n   s   p   o   r    t   a    t    i   o   n   a   n    d    h   o   u   s    i   n   g

    P   u    b    l    i   c    l   a   n    d   s   a   n    d   e   n   v    i   r   o   n

   m   e   n    t

    C   o   m   m   e   r   c   e ,

    j   u   s    t    i   c   e ,

   a   n    d   s   c    i   e   n   c   e

    E   n   e   r   g   y   a   n    d   w   a    t   e   r

    L   e   g    i   s    l   a    t    i   v   e    b   r   a   n   c    h

    D   e    f   e   n   s   e    D   e   p   a   r    t   m   e

   n    t

    M    i    l    i    t   a   r   y   c   o   n   s    t   r   u   c    t    i   o   n   a   n    d   v   e    t

   e   r   a   n   s

    H   o   m   e    l   a   n    d    S   e   c

   u   r    i    t   y

    A   g   r    i   c   u

    l    t   u   r   e

Sources: U.S. House of Representatives Committee on Appropriations, “Suballocations to Subcommittees, Fiscal Year 2014 Budget Authority

and Outlays [in millions of dollars]”; U.S. House of Representatives Committee on Appropriations, “Suballocations of Budget Allocations for

Fiscal Year 2013.”

8/22/2019 4 Ways that Austerity Demands Have Reached New Extremes

http://slidepdf.com/reader/full/4-ways-that-austerity-demands-have-reached-new-extremes 5/6

5 Center or American Progress |  4 Ways that Austerity Demands Have Reached New Extremes

It’s not a pretty bill.

We’re not going to

try and put lipstick 

on this. 

—House Interior and 

Environment Appropriations

Subcommittee Chairman

Mike Simpson (R-ID), on

his subcommittee’s FY 2014

spending bill 11

• EPA: Las year, he House inerior and environmen appropriaions bill suppored

$7 billion or he Environmenal Proecion Agency, or EPA, which was already a 17

percen cu.14 Tis year, he House would cu he EPA budge o $5.5 billion.15

• CDBG: Te House ransporaion and housing appropriaions bill slashes more han

$1 billion rom he Communiy Developmen Block Gran program, or CDBG, bring-

ing i o is lowes level in hisory.16 Jus one year ago, he House suppored an increasein CDBG unding, which suppors sae and local inrasrucure, afordable housing,

and social services.17

• IRS: Las year, he House suppored a unding or he Inernal Revenue Service,

or IRS, in is nancial services appropriaions bill, reusing o provide he addiional

unds needed o implemen healh care reorm bu a leas recognizing he necessiy o 

ax adminisraion.18 Tis year, he House would cu IRS unding by 24 percen.19

Some o hese cus were oo much even or House Republicans. On July 31, House

leaders abandoned efors o pass he ransporaion and housing bill because membersreused o suppor deep cus o programs such as he CDBG.20

 Amazingly, hese examples only scrach he surace o he auseriy demanded by House

Republican leaders. Ta’s because he House has ai led o even dra an appropriaions

 bill or labor, healh, and educaion.21 Ta bill alone was supposed o cu $35 billion,22 

meaning ha he House has ye o deermine where i would make nearly hal o he

discreionary spending cus required by he Ryan budge.

Conclusion

Las year, he House o Represenaives demonsraed an undersanding ha auseriy 

could go oo ar when i rejeced he exreme Republican Sudy Commitee budge.

Senae Democras now accep spending levels in line wih previous Ryan budges, and

he ederal budge is sable over he medium erm. Despie all ha, House Republican

leaders are demanding a new round o discreionary spending cus. Hopeully, he

House will relen on his exreme demand and agree o spending levels similar o hose

in pas Ryan budges, as i is becoming clear ha even conservaives canno suppor he

specic cus demanded by he new Ryan budge. I no, we can expec anoher round o 

dangerous poliical brinksmanship and he specer o a governmen shudown.

Harry Stein is the Associate Director for Fiscal Policy at the Center for American Progress.

8/22/2019 4 Ways that Austerity Demands Have Reached New Extremes

http://slidepdf.com/reader/full/4-ways-that-austerity-demands-have-reached-new-extremes 6/6

6 Center or American Progress |  4 Ways that Austerity Demands Have Reached New Extremes

Endnotes

1 Rep. Paul Ryan, “The Path to Prosperity: A Responsible,Balanced Budget” (Washington: House Budget Committee,2013), available at http://budget.house.gov/uploadedles/y14budget.pd.

2 Michael Linden, “Budget Cuts Set Funding Path to HistoricLows” (Washington: Center or American Progress, 2013),

available at http://www.americanprogress.org/issues/bud-get/report/2013/01/29/50945/budget-cuts-set-unding-path-to-historic-lows/.

3 Rep. Scott Garrett, “Cut, Cap, and Balance: A Fiscal Year 2013Budget” (Washington: The Republican Study Committee,2012), available at http://rsc.scalise.house.gov/uploaded-les/rsc_y_2013_budget_cut_cap_and_balance_summary--nal.pd .

4 Final Vote Results for Roll Call Vote 149, On Agreeing to theGarrett o New Jersey Substitute Amendment to H. Con. Res.112, 112 Cong. 2 sess. (2012), available at http://clerk.house.gov/evs/2012/roll149.xml.

5 U.S. House o Representatives Committee on Appropria-tions, “Full Committee Votes,” Roll Call No. 2, April 25, 2012,available at http://appropriations.house.gov/uploadedles/crpt-112-hmtg-ap00-vote002-20120425.pd. 

6 Michael Linden, “It’s Time to Hit the Reset Button on theFiscal Debate” (Washington: Center or American Progress,2013), available at http://www.americanprogress.org/is-sues/budget/report/2013/06/06/65497/its-time-to-hit-the-reset-button-on-the-scal-debate/.

7 The FY 2014 discretionary spending cap is $1,058 billion.FY 2010 base discretionary spending was $1,089.7 bil-lion—$1,187 billion in 2014 dollars. See  American Taxpayer Relief Act of 2012, Public Law 112-240, 112 Cong., 2d sess.(January 2, 2013), available at http://www.gpo.gov/dsys/pkg/PLAW-112publ240/pd/PLAW-112publ240.pd;U.S.Senate Committee on Appropriations, “302(b) Subcom-mittee Allocations or FY 2013”  (2012), available at http://www.appropriations.senate.gov/news.cm?method=news.view&id=04379cc9-1ce-493b-9cc5-cc6b4e7c2d45.

8 Rep. Garrett, “Cut, Cap, and Balance: A Fiscal Year 2013Budget.”

9 Energy and Water Development Appropriations Bill, 2014,

H. Rept. 113-135, 113 Cong. 1 sess. (Government PrintingOfce, 2013), available at http://www.gpo.gov/dsys/pkg/CRPT-113hrpt135/pd/CRPT-113hrpt135.pd .

10 Energy and Water Development Appropriations Bill, 2013,H. Rept. 112-462, 112 Cong. 2 sess. (Government PrintingOfce, 2012), available at http://www.gpo.gov/dsys/pkg/CRPT-112hrpt462/pd/CRPT-112hrpt462.pd .

11 Zack Colman, “Rep. Simpson deends House EPA, Interiorspending bill,” The Hill, July 23, 2013, available at http://thehill.com/blogs/e2-wire/e2-wire/312959-rep-simpson-deends-house-epa-interior-spending-bill.

12 Commerce, Justice, Science, and Related Agencies Appropria-tions Bill, 2014, H. Rept. 113-171, 113 Cong. 1 sess. (Govern-ment Printing Ofce, 2013), available at http://www.gpo.gov/dsys/pkg/CRPT-112hrpt462/pd/CRPT-112hrpt462.pd .

13 Commerce, Justice, Science, and Related Agencies Appropria-tions Bill, 2013, H. Rept. 112-463, 112 Cong. 2 sess. (Govern-

ment Printing Ofce, 2012), available at http://www.gpo.gov/dsys/pkg/CRPT-112hrpt463/pd/CRPT-112hrpt463.pd .

14 U.S. House o Representatives Committee on Ap-propriations, “Appropriations Committee Releases theFiscal Year 2013 Interior-Environment AppropriationsFunding Bill,” Press release, June 19, 2012, available athttp://appropriations.house.gov/news/documentsingle.aspx?DocumentID=299989.

15 U.S. House o Representatives Committee on Appropria-tions, “Appropriations Committee Releases Fiscal Year 2014Interior and Environment Bill,” Press release, July 22, 2013,available at http://appropriations.house.gov/news/docu-mentsingle.aspx?DocumentID=343384.

16 David Gutman, “House Drops Funding Bill, Capito Amend-ment,” The Charleston Gazette, July 31, 2013, available athttp://www.wvgazette.com/News/201307310213.

17 Departments of Transportation, and Housing and UrbanDevelopment, and Related Agencies Appropriations Bill, 2013,H. Rept. 112-541, 112 Cong, 2 sess. (Government PrintingOfce, 2012), available at http://www.gpo.gov/dsys/pkg/CRPT-112hrpt541/pd/CRPT-112hrpt541.pd .

18 U.S. House o Representatives Committee on Appropria-tions, “Appropriations Committee Releases Fiscal Year 2013Financial Services Ap propriations Bill,” Press release, June 5,2012, available at http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=298250.

19 U.S. House o Representatives Committee on Appropria-tions, “Appropriations Committee Releases Fiscal Year 2014Financial Services Bil l,” Press release, July 9, 2013, availableat http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=341739.

20 Gutman, “House Drops Funding Bill, Capito Amendment.”

21 Niels Lesniewski, “Appropriations Democrats Seek Labor-

HHS-Education Markup,” Roll Call, September 6, 2013,available at http://blogs.rollcall.com/218/appropriations-democrats-seek-labor-hhs-education-markup/.

21 U.S. House o Representatives Committee on Appropria-tions, “Suballocations to Subcommittees - Fiscal Year 2014Budget Authority and Outlays” (2013), available at http://ap-propriations.house.gov/uploadedles/05_21_13_y_2014_report_on_the_suballocation_o_budget_allocations.pd .