Choosing the Nation's Fiscal Future (2010) / Chapter Skim
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Appendix D: Defense and Other Domestic Spending: Program Options
Appendix D: Defense and Other Domestic Spending: Program Options
Pages 261-274
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From page 261... ...
The committee decided that a plausible approach would be to roughly reproduce that ratio in Options 1, 2, and 4. Given Option 3's emphasis upon public investments, however, the committee decided to allocate extra resources to the domestic discretionary category by having defense spending follow the study baseline.
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From page 262... ...
. Correspondingly, spending also fluctuates slightly for Options 1-4, with the defense, domestic discretionary, and other mandatory TABLE D-1 Defense, Domestic Discretionary, and Other Mandatory Spending, as a Percentage of GDP 2008 2019 Study Spending Category Actual Baseline Option 1 Option 2 Option 3 Option 4 Defense 4.3 3.4 2.6 3.1 3.4 4.2 Domestic Discretionary 3.7 3.0 2.3 2.8 3.5 3.7 Other Mandatory 2.8 2.1 2.0 2.0 2.1 2.1 Total 10.8 8.5 6.9 7.9 9.0 10.0 TABLE D-2 Defense Spending, 2008-2019 Year Baseline Option 1 Option 2 Option 3 Option 4 In Billions of Dollars 2008a 609 NA NA NA NA 2009 671 NA NA NA NA 2010 734 NA NA NA NA 2011 755 NA NA NA NA 2012 717 692 707 717 775 2013 684 637 665 684 794 2014 670 601 643 670 812 2015 673 581 637 673 827 2016 683 566 637 683 842 2017 693 551 638 693 856 2018 705 536 639 705 869 2019 717 545 650 717 881 As a Percentage of GDP 2008a 4.3 NA NA NA NA 2009 4.8 NA NA NA NA 2010 5.1 NA NA NA NA 2011 5.0 NA NA NA NA 2012 4.5 4.4 4.5 4.5 4.9 2013 4.1 3.9 4.0 4.1 4.8 2014 3.9 3.5 3.7 3.9 4.7 2015 3.7 3.2 3.5 3.7 4.6 2016 3.7 3.0 3.4 3.7 4.5 2017 3.6 2.8 3.3 3.6 4.4 2018 3.5 2.7 3.2 3.5 4.3 2019 3.4 2.6 3.1 3.4 4.2 NOTE: NA = not applicable.
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From page 263... ...
. DEVOLUTION POLICIES: OPTIONS 1 AND 2 The committee identified illustrative candidates for devolution and budget reduction by selecting from a list of federal grants to state and local governments (U.S.
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From page 264... ...
impact aid: provides money to school districts that are financially • burdened by the presence of tracts of land that do not pay property taxes (such as military bases or Indian lands) education for the disadvantaged: allocates funds for local programs • that provide extra academic support to help raise the achievement of eligible students in high-poverty schools or, in the case of school wide programs, help all students in high-poverty schools to meet challenging state academic standards school improvement programs: includes funds for improving • teacher quality, developing and implementing state assessments, rural education, and other activities innovation and improvement: funds charter school grants and • magnet school assistance, the teaching of American history, teacher incentives, and other activities
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From page 265... ...
APPENDIX D safe schools and citizenship education: funds alcohol abuse reduc • tion, mentoring, character education, elementary and secondary school counseling, physical education, civic education, and other activities English-language acquisition: provides formula grants to states • to improve services for limited-English-proficient and immigrant students special education: assists state and local educational agencies to • provide children with disabilities with access to high-quality educa tion, helps states provide a comprehensive system of early interven tion services, and links states, school systems, and families to best practices to improve results for infants, toddlers, and children with disabilities rehabilitation services and disability research: funds vocational re • habilitation, assistive technology, and rehabilitation research, and other activities American Printing House for the Blind: supports the production • and dissemination of free educational materials for students below the college level who are blind, research related to developing and improving products, and advisory services to consumer organiza tions on the availability and use of materials career, technical, and adult education: provides formula grants to • states to help eliminate functional illiteracy among the nation's adults, to assist adults in obtaining a high school diploma or its equivalent, to promote family literacy, and other activities promoting safe and stable families: funds a broad range of child • welfare services, including family preservation and family support services children and families services programs: funds Head Start, child • welfare services, abstinence education, and other activities aging services programs: provide nutrition, supportive services, and • caregiver support services throughout the aging network operation of American Indian programs: provides a wide range • of services and benefits to Native Americans in the areas of tribal government, human services, natural resources management, edu cation, public safety and justice, and community and economic development training and employment services: funds adult employment and • training, dislocated worker employment and training, youth services, reintegration of ex-offenders, Job Corps, and other activities community service employment for older Americans: provides part • time work experience in community service activities to unem ployed, low-income persons aged 55 and older
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From page 266... ...
COMMERCIAL SUBSIDIES AND "LOW-VALUE" ACTIVITIES: OPTIONS 1 AND 2 In addition to possible candidates for devolution to state and local governments, the committee considered candidates for eliminating or reducing commercial subsidies (as well as raising user fees) for a range of programs and activities and for eliminating or reducing "low-value" activities.
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From page 267... ...
companies subsidized financing for foreign invest ment and insurance against political risks to those investments, including nationalization National Science Foundation National Science Foundation (NSF) spending on elementary and • secondary education -- elimination: supports advanced teacher training and continuing education and is also used for development of instructional and assessment materials Department of Homeland Security research and development programs in the Science and Technology • Directorate -- reduction: includes basic and applied research; devel opment and testing of standards, prototypes, and preproduction hardware; and procurement of products, systems, and equipment Department of Energy applied research for fossil fuels -- elimination: funds research into • applied technologies for finding and producing petroleum, coal, and natural gas ultra-deepwater and unconventional natural gas and other petro • leum research programs -- elimination: funds applied research using federal revenues from old and gas leases nuclear energy research and development -- elimination: three pro • grams seek to develop new ways to generate and harness nuclear energy while reducing radioactive waste and guarding against the potential for nuclear proliferation FreedomCAR and Fuel Partnership -- elimination: a joint effort of • the federal government and private industry to promote research on fuel cells in energy-efficient vehicles applied research on energy-efficiency and renewable-energy tech • nologies -- elimination: support for the development of technology to increase energy conservation and efficiency in the transportation, building, and industrial sectors of the economy and to make greater
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From page 268... ...
APPENDIX D use of such renewable resources as solar, wind, and geothermal energy and biomass-based fuel grants to states for energy conservation and weatherization -- • elimination: support for state and municipal efforts in energy conservation and building weatherization nuclear waste fund fee -- index to inflation: funds the disposal of • the radioactive wastes of civilian nuclear power plants through a fee per kilowatt-hour of electricity that they generate power marketing administrations -- increase rates: generate electric • ity, mainly from hydropower facilities constructed and operated by the Army Corps of Engineers and the Bureau of Reclamation, with rates to customers that are much lower than those of other utilities Southeastern Power Administration (SEPA) and related power • generating assets -- sell: generate and sell electricity from hydro power facilities constructed and operated by the Army Corps of Engineers Tennessee Valley Authority parts of the electric power assets -- sell: now one of the largest pro • ducers of electricity in the nation in contrast to original function of managing the region's hydropower resources Army Corps of Engineers permits for dredging -- increase fees: needed to dredge or place fill • material in navigable waters federal funding for beach replenishment projects -- eliminate: op • erations designed to counter beach erosion, typically by dredging sand from offshore locations and pumping it onshore to rebuild eroded areas Department of the Interior authority to collect maintenance and location fees for hard rock • mining on federal lands -- permanently grant: mineral production on federal lands is less costly than on private lands unlike the ex traction of other minerals or fossil fuels from public lands, royalties are not charged on the value of hard rock minerals grazing fees for federal lands -- use state formulas: grazing fees for • federal lands differ from those for state-owned lands
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From page 269... ...
-- scale back: provides • agricultural producers financial and technical help to promote the conservation and improvement of soil, water, air, energy, and plant and animal life on lands used for agricultural purposes Conservation Reserve Program (CRP) -- limit enrollment: promotes • soil conservation, improved water quality, and protection of wild life habitat by removing land from active agricultural production payments to producers of certain agricultural commodities -- • impose limits: supports producers of various farm commodities (including cotton, feed grains, oilseeds, peanuts, rice, and wheat)
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From page 270... ...
agricultural products export credit guarantees -- limit the repayment period: protects ex • porters and banks in the United States against default on financing they provide to foreign importers and banks to cover purchases of U.S. goods financing of rural water and waste disposal -- create revolving fund: • assists rural communities through a program that provides loans, loan guarantees, and grants for water and water-disposal projects Department of Commerce trade promotion activities of the International Trade Adminis • tration -- eliminate or charge the beneficiaries: trade development programs that assess the competitiveness of U.S.
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-- eliminate: oversees a network of locally initiated and op erated groups called NeighborWorks Organizations engaged in activities involving housing, neighborhood revitalization, and com munity building Treasury Department Community Development Financial Institutions Fund -- eliminate: • expands the availability of credit, investment capital, and financial services in distressed communities Appalachian Regional Commission, the Denali Commission, and the Delta Regional Authority regional development agencies -- eliminate: federally funded re • gional development agencies that attempt, among other things,
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From page 272... ...
APPENDIX D to create jobs, improve rural education and health care, develop utilities and other infrastructure, and provide job training Federal Emergency Management Agency flood insurance subsidy on selected older structures -- eliminate or • reduce: through the National Flood Insurance Program, charges premiums to insure buildings and their contents Department of Education grants for safe and drug-free schools and communities -- eliminate: • support programs to discourage violence and the use of illegal substances -- such as alcohol, cigarettes, and drugs -- among young people in and around schools Even Start Program -- eliminate and redirect some funds to other • education programs: provides education and related services to parents who have not finished high school and to their young children Leveraging Educational Assistance Partnership Program (LEAP) -- • eliminate: helps states provide grants and work-study assistance to financially needy Department of Labor Senior Community Service Employment Program -- eliminate: funds • part-time jobs for people aged 55 and older who have low income and poor prospects for employment Veterans Administration veterans' disability compensation -- reduce to account for Social • Security Disability Insurance payments: disabled veterans eligible for Social Security disability payments receive payments from both programs, with no offset Department of Justice grant -- reduce for selected programs: provide various types of as • sistance to nonprofit community organizations and state and local law enforcement agencies The Congressional Budget Office (2009)
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From page 273... ...
These estimates adjust for the minor overlap with programs targeted for devolution. HUMAN CAPITAL DEVELOPMENT, RESEARCH AND DEVELOPMENT FUNDING, AND INFRASTRUCTURE: OPTIONS 3 AND 4 This section offers illustrative examples of public investments that would be expected to have high payoffs in the future.
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From page 274... ...
. REFERENCES Association of State Dam Safety Officials.
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