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$200 Billion in federal spending cuts suggested

By Doug Caldwell
Central Valley Business Times
November 10, 2010

•  UPDATED with reaction to SBA's future
•  Includes merging SBA into Commerce Department
•  Earmarks and other subsidies cut or eliminated

That wail of an ox being gored you might hear today could be coming from your ox or one you know.

A report Wednesday from the bipartisan National Commission on Fiscal Responsibility and Reform suggests slashing federal spending by at least $200.3 billion by 2015.

The commission was ordered by President Barack Obama to find possible cuts in federal spending. And it has, ranging from folding the Small Business Administration into the Department of Commerce to freezing most federal salaries and benefits for three years to reducing the federal civilian workforce by 10 percent.

Here are some of the other suggestions:

• Eliminate 250,000 non-defense service and staff contractors
• Cut the federal travel budget
• Establish Veterans Administration health co-pays
• Create a Cut-and-Invest Committee charged with trimming waste and targeting investment
• Terminate low-priority Army Corps of Engineers construction projects

Click on the link below to download the full, 24-page list

If all the cuts were made, says the commission, federal spending could be reduced by $3.8 trillion in ten years.

However, the list is just that for now – a list. If 14 of the 18 members of the commission agree with it, it will go to Congress for debate and implementation, if any.

Even if it is a list, it's getting reaction -- and not all positive.

“The Small Business Administration (SBA) is the only federal agency that exists for the expressed purpose of assisting America’s chief job creators, its 27 million small businesses. Trying to save money by combining the SBA with the U.S. Department of Commerce not only has the potential to be devastating to the nation’s small businesses, but it is exactly what small businesses don’t need in these difficult economic times," says Lloyd Chapman, president of the American Small Business League, and a frequent critic of SBA shortcomings.

"I have been predicting that the Obama Administration would try to do this for a long time. This is not a move to save money. This is a move toward winding down federal programs for small businesses,” says Mr. Chapman.


Source: http://www.centralvalleybusinesstimes.com/stories/001/?ID=16816  



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