The Friendly Money Making Board

[shermann7]

President Barack Obama asked his Cabinet chiefs on Monday to quickly trim $100 million from their collective agency budgets in an effort to reduce federal spending as the government grapples with the recession.

Obama said the cuts would "start setting a tone" about spending in Washington.

The total would represent a tiny portion of the federal budget. But Obama is asking Cabinet chiefs to look for places to cut as part of his commitment to go "line by line" through the budget. He also said his administration expects to cut at least 100 programs from the federal budget in the next few weeks.

"What we're going to do is line by line, page by page, $100 million there, $100 million here, pretty soon, even in Washington, it adds up to real money," said Obama.

The Cabinet meeting came as Congress returned from its spring recess, and lawmakers are set to take up the fiscal year 2010 budget, among other things. The House and Senate must hammer out a compromise budget to send to Obama for signature.

Obama's fiscal 2010 budget totaled $3.67 trillion, and both the House and Senate approved versions similar to the president's.

Senate Republican Leader Mitch McConnell said he appreciated Obama's efforts but called attention to the deficit.
"Let's not forget that at the same time they're looking for millions in savings, the president's budget calls for adding trillions to the debt," said McConnell in a statement on Monday. "The nation's debt is at its highest level ever, but under the administration's budget, the amount of public debt will double in five years and triple in 10," said McConnell,
of Kentucky.

Obama acknowledged the deficit in his remarks and said his team is mindful of it. Agencies will be required to report back to the White House with their savings plans in 90 days.
Meanwhile, the White House highlighted some savings already underway, including the canceling or delaying of 26 conferences for veterans, the combining of seven Agriculture Department offices into one by 2011 and the purchasing of bulk office supplies.

Differences that remain to be worked out over the House and Senate versions of the budget include the size of the federal budget deficit. The House-passed budget includes a deficit of $598 billion in 2014, while the Senate's budget resolution includes a deficit of $508 billion. Obama's budget had the deficit much higher, at $749 billion in 2014.

Senators return Monday after a two-week break and members of the House return Tuesday. Conferees must still be appointed to hammer out a single version of the budget resolution.

http://www.marketwatch.com/news/story/Obama-orders-100-million-budget/story.aspx?guid=%7B1FBDF5CC%2DECFB%2D49DC%2D89E9%2D2A897FC204A2%7D&dist=hplatest

Shermann