Federal Budget 2010

Although most of it holds true, several provisions of the Hospitals & Asylums Political Platform 2009-2012 are reversed in order to more precisely and proportionally neutralize the armed attack by President of the United States and Democratic and Republican (DR) partisans that has needlessly taken an estimated 211,002 lives 2009-2010 and lead the economy from the Great Recession. To make peace on a spirit level the tobacco tax of April 1, 2009 must be amended to provide for a flat 159% increase, reversing the greater than 2,000% increase on hand-rolling tobacco and small cigars and taxing the large cigars favored by investment bankers, while the Economic Stabilization Act of 2008 and the American Recovery Reinvestment Act of 2009, that were formerly called upon for repeal to limit damages there-under to the 111^th Congress, that has been dissolved in its entirety, are herein reconciled. Like in the colony of Virginia, the normalization of tobacco prices can be accepted as payment in lieu of currency, however immediate payment is imperative whereas this work accounts for a deficit of less than 3% of GDP by 2011, otherwise neither the Administration nor Congress will have performed. If the President cannot, henceforth, keep the Peace, to the satisfaction of the Armed Forces Retirement Home Trust Fund, he shall be impeached under Art. 1(6), Art. 2(4) of, and Amendment 25(2), to the US Constitution, by the 111^th Congress, that would otherwise be dissolved, and a Chief Justice, who would otherwise be dismissed. This work, like all of my work, however, is not intended to create strife, it has been carefully crafted, with less than 1% deviance from Office of Management and Budget (OMB) figures, to correct the budgetary imbalances in the Historical Tables of the Office of Management and Budget (OMB), for the vindication of OMB Director Peter Orszag.

I have reviewed the written opinions of the principal officers of the executive departments, relating to their agency budgets under the FY 2011 Federal Budget pursuant to Art. 2(2)(1) of the U.S. Constitution. I have taken the liberty to faithfully transcribe, and in some cases justify, agency budget requests for the realization of our common goal of a balanced federal budget. I brought the federal deficit under 3% of GDP FY 2005-2007, and after taking a leave of absence in FY 2009, I am proud to announce the FY 2011 budget is balanced on paper. The deficit, after being adjusted upward from $1.4 trillion, 9,8% of GDP, to $1.6 trillion, 10.9% of GDP, in 2009, to account for the American Recovery and Reinvestment Act of that year, goes down dramatically. With Recovery Act capital to soften hardship agencies enjoy financial stability under reasonable 1-5% growth rates using 2008 as a base year. Many agencies did this themselves, but several recapitalized upon Recovery Act funding levels, they were corrected. Others, namely OPM with no FY 2011 budget, have been over-reported by OMB for years, others like SSA and DHS are limited to OMB appropriation levels. DOE needs to take responsibility for the Low Income Energy Program to justify budget increases and control energy prices. The entire column Defense – Civil is a duplicate of mostly mandatory VA benefits and the cost of reconstructing my beloved AFRH Gulfport home needs to be put on the VA books to justify its large increases. Congress is punished with 2007 levels of revenue until they produce a deficit less than 3% of GDP. Their social health insurance agenda is censured until its cost would not cause more than a 3% deficit, some talk of nationalizing health insurance to balance the budget is okay. Health and Human Services spending growth is limited to an annual 2.5% from 2008 and health care industry price increases are limited to 3% by law. The $200 billion annual DoD lending is forfeited to the General Fund of the Treasury and the Overseas Contingency Operations fund is terminated in FY 2011 for a DoD budget of $400 billion, world peace and a $214 billion deficit, 1.2% of the GDP, in FY 2012. The $200 billion TARP fund shall be returned in FY 2011 when a disciplined administration would enjoy a $427 billion deficit, 2.8% of GDP, not quite enough for health insurance, but better than one with a $1.067 trillion deficit, 6.9% of GDP. In other words, this document can save FY 2011, FY 2012 and the first term of the President.

Table 1: Federal Budget Master Balance 2009-2012 (in millions)

	2009	2009 s	2010	2010 s	2011	2011 s	2012	2012 s
Legislative Branch	4,702	4,702	5,423	4,294	5,579	4,294	5,292	4,294
Judicial Branch	6,645	6,645	7,159	6,711	7,512	6,777	7,351	6,845
Executive Office of the President	742	742	715	715	501	501	427	427
Agriculture	114,440	100,334	142,016	89,689	145,748	100,452	137,917	105,474
Interior	11,775	11,371	12,042	12,216	14,045	12,177	12,803	12,000
Environmental Protection Agency	8,070	7,600	11,301	10,300	11,177	10,000	9,980	9,624
Energy	23,683	70,581	38,278	26,525	44,390	28,400	34,792	30,311
Commerce	10,718	10,718	16,714	16,714	11,500	8,400	10,430	8,600
Education	53,400	137,600	106,900	59,200	94,300	77,800	85,200	80,000
State	21,472	15,826	25,726	17,613	28,754	16,400	30,065	16,500
International Assistance	14,794	34,308	23,899	35,441	24,343	36,400	28,223	38,500
Homeland Security	51,725	51,725	52,903	52,903	54,723	54,723	46,847	46,847
Housing and Urban Development	61,019	61,811	62,518	49,347	53,082	48,913	48,153	48,153
Transportation	73,004	112,344	90,944	68,899	86,665	70,966	82,817	73,095
Office of Personnel Management	72,302	41,158	71,603	42,200	73,463	44,000	75,956	46,000
General Services Administration	319	319	1,782	1,782	2,279	2,279	2,170	2,170
National Aeronautics and Space Administration	19,168	18,784	19,123	18,724	17,863	19,000	18,953	19,570
National Science Foundation	5,958	6,872	7,819	7,424	7,647	7,500	7,558	7,725
Small Business Administration	2,246	2,127	5,978	5,598	1,388	1,228	1,112	1,112
Justice	27,711	27,711	30,333	23,816	31,924	24,054	33,700	24,295
Labor	138,157	142,503	209,265	162,003	116,902	79,982	90,790	70,000
Treasury	701,775	896,972	502,980	400,472	593,550	560,863	685,279	600,000
Veterans Affairs	95,457	97,000	124,565	111,035	124,215	121,604	122,369	125,252
Defense- Civil	57,276	0	54,317	0	55,719	0	56,457	0
Civil – Corps of Engineers	6,842	5,242	10,536	10,189	6,929	5,438	5,879	5,500
Defense – Military	636,775	464,775	692,031	497,031	721,285	508,000	653,424	400,000
Health and Human Services	796,267	858,953	868,762	735,902	934,426	754,299	911,291	773,157
Social Security Administration (on-budget)	78,657	78,657	85,108	85,108	80,933	80,933	77,304	77,304
Social Security Administration (off-budget)	648,892	683,000	683,867	709,000	708,620	735,000	738,430	773,000
Other Independent Agencies (on-budget)	47,636	47,635	2,001	2,001	31,832	31,832	26,928	26,928
Other Independent Agencies (off-budget)	304	304	6,426	6,426	4,226	4,226	-13	-13
Allowances	-4	-4	18,750	18,750	21,676	21,676	-4,187	-4,187
Undistributed Offsetting Receipts	-274,193	-274,193	-271,127	-271,127	-283,287	-283,287	-288,823	-288,823
Effect of Agency Spending Limits
Total Outlays	3,517,734	3,724,122	3,720,657	3,016,901	3,833,909	3,194,830	3,754,874	3,139,660
Total Receipts	2,105,000	2,105,000	2,165,000	2,165,000	2,567,000	2,567,000	2,926,000	2,926,000
Total Deficit	-1,412,734	-1,619,122	-1,555,657	-851,901	-1,266,909	-627,830	-828,874	-213,660
% GDP	9.8%	11.3%	10.6%	5.8%	8.2%	4.1%	5.1%	1.2%
Total Public Debt	11,876,000	12,082,000	13,787,000	13,289,000	15,144,000	14,008,000	16,336,000	14,584,000
% GDP	83.4%	84.7%	94.3%	90.9%	99.0%	91.6%	100.8%	90.0%
Effect TARP Termination	NA	NA	NA	NA	200,000	200,000	NA	NA
TARP Termination Effect on Deficit	NA	NA	NA	NA	-1,066,909	-427,830	NA	NA
% GDP	NA	NA	NA	NA	6.9%	2.8%	NA	NA
TARP Termination Effect on Debt	NA	NA	NA	NA	14,944,000	13,808,000	16,136,000	14,384,000
% GDP	NA	NA	NA	NA	97.6%	90.3%	99.6%	88.7%
Effect of Revenue Provisions + TARP
No on Make Work Pay Extension	NA	NA	NA	NA	30,132	30,132	31,075	31,075
No on Information Reporting Tax	NA	NA	NA	NA	-326	-326	-1,029	-1,029
Total Effect of Revenue Provisions	NA	NA	NA	NA	29,806	29,806	30,046	30,046
Revenue Provision Effect on Total Deficit	NA	NA	NA	NA	-1,036,000	-398,000	-799,000	-184,000
% GDP	NA	NA	NA	NA	6.7%	2.6%	4.9%	1.1%
Revenue Provision Effect on Public Debt	NA	NA	NA	NA	14,914,000	13,778,000	16,106,000	14,354,000
% GDP	NA	NA	NA	NA	97.5%	90.1%	99.4%	88.6%
Effect of Health Care Proposals + TARP + Rev.
Social Health Insurance Plan	NA	NA	NA	NA	-75,000	-75,000	-80,000	-80,000
Effect of Social Health on Deficit	NA	NA	NA	NA	-1,111	-473,000	-909,000	-294
% GDP	NA	NA	NA	NA	7.2%	3.1%	5.6%	1.8%
Total Effect of Social Health on Debt	NA	NA	NA	NA	14,989,000	13,833,000	16,186,000	14,434,000
% GDP	NA	NA	NA	NA	97.9%	90.5%	99.9%	89.1%
National Health Service	NA	NA	NA	NA	688,000	688,000	709,000	709,000
Effect of NHI on Deficit	NA	NA	NA	NA	-379,000	+261,000	-119,000	+495,000
% GDP					2.5%	+ 1.7%	0.7%	+ 3.1%
Effect NHI on Debt	NA	NA	NA	NA	14,256,000	13,120,000	15,427,000	13,875,000
% GDP	NA	NA	NA	NA	93.2%	85.8%	95.2%	85.6%

Source: Table 31 and Table 34

The correlation between war and debt has haunted the United States Constitution since the Revolutionary War. In the 18^th century both Adam Smith in his Inquiry into the Nature and Causes of the Wealth of Nations (1776) upon which our free market economy is founded and Immanuel Kant in his essay Perpetual Peace (1795) held that nations at war tend to get into debt to evade the people, who quickly tire of such a poor game, and act to end such nonsense. A Balanced Budget Amendment to the United States Constitution is called for in Chapter 8-D of the Constitution of Hospitals & Asylums Non Governmental Economics (CHANGE) that recalls as early as 1798, before the Louisiana purchase, Thomas Jefferson apologized, “I wish it were possible to obtain a single amendment to our Constitution… taking from the Federal Government the power of borrowing. I know that to pay all proper expenses within the year would, in case of war, be hard on us. But not so hard as ten wars instead of one. For wars could be reduced in that proportion”. Unfortunately, James Madison, in drafting the Bill of Rights (1791), aggravated the debasement of the Supremacy clause at Art. 4(2) to public debt, by brandishing an unconstitutional right to bear arms in the face of the First Amendment right to sue the government for a redress of grievances, he and Jefferson had fought so hard to defend. Later Civil War debt was written into the Fourteenth Amendment. Several balanced budget amendments have been proposed however no one proposed Amendment has yet been agreed to, probably because the duty to balance the budget is subjugated by these technical errors in the Constitutional law that need to be repealed, for economic and constitutional law and reason in general to be truly superior to threats of violence, as is the true intention of all law and writing and learning.

While avoiding all contact with the family and government, to escape persecution, in 2009, I took the time, four hours, having already been fully briefed, to fully amend the U.S. Constitution HA-26-7-09, to create a government I could deal with, wherein the Balanced Budget Amendment replaces the Second Amendment right to bear arms. The general idea is the same one that brought immigrants fleeing tyranny to the American continent in the first place. We claim the privilege of worshiping Almighty god according to the dictates of our own conscience, and allow all men the same privilege, let them worship how, where, or what they may (Articles of Faith 1:11). For the most part all the people want is the freedom of the press, trade, speech, religion, association and peaceable assembly. As for government, in the words of Thomas Jefferson, in his inaugural address in 1801, all that is wanted is “for a wise and frugal government, which shall restrain men from injuring one another, and leave them otherwise free to regulate their own affairs and industry”. Milton Friedman and his wife Rose’s classic inquiry into the relationship between freedom and economics Free to Choose (1980) explains the superiority of capitalist self-interest over socialist collectivism whereby “No external force, no coercion, no violation of freedom is necessary to produce cooperation amongst individuals, all of whom benefit.” In other words to enforce the law is to break the law and one would prefer to petition the government rather the barrel of a gun, or General of the United Nations (GUN) for that matter. By associating the First Amendment right to sue the government for a redress of grievances and a Second Amendment duty to balance the budget, rather than a bizarre right to bear arms, never before heard, never again repeated in any other countries and in a strictly legal sense definitely inferior to a constitutional right that is specifically intended to be superior to the awesome power of State sanctioned violence. More than any other Amendment to the U.S. Constitution this duty to balance the budget would bring the government into harmony with the writer rather than the fighter, and thereby forever increasing the peace and prosperity in our society.

The proposed Second Amendment duty to Balance the Budget states:

Section 1 Total outlays for any fiscal year shall not exceed total receipts for that fiscal year.

Section 2 Prior to each fiscal year, the President shall transmit to the Congress a proposed budget for the United States Government for that fiscal year in which total outlays do not exceed total receipts.

Section 3 The Congress shall enforce and implement a balanced budget by appropriate legislation.

II. Economic Damages

As everyone is well aware, the federal government, usually runs on a deficit, with some famous exceptions, such as when Andrew Jackson paid off the federal debt in 1835 and more recently when Bill Clinton ran a surplus in 1998-2000, is running the highest deficit in dollar terms in national history, well over $1 trillion in 2009, 2010 and 2011, the second highest as a percentage of GDP since WWII and the Confederacy during the Civil War. Unless federal spending is corrected the public debt will exceed 100% of GDP as soon as 2012. This 2010 the President and his Cabinet have proposed an FY 2011 budget that, although they freely admit outlays exceed receipts, can theoretically be balanced. At war since 2001, and financially dependant upon Hospitals & Asylums after bombing the largest reparation in world history on the Spring Equinox of 2003, and being directed to international economic cooperation in 2004, and national fiscal responsibility in 2005, by 2006, the war economy had been completely decoded whereas the deficit was neatly financed with bonds issued by the SSA off-budget surplus and military budgetary funds in excess of $300 billion propped up the stock market. The budget could be balanced if the military budget surplus and half of the social security revenue surplus was returned to the federal treasury. Under my command surplus defense spending was called in, by locally infringing OMB Director Robert Portman (now with Squire, Sanders and Dempsey a law firm receiving TARP funds), bringing the deficit from a high of $414 billion in 2004, 3.5% of GDP, to -$318 billion in 2005, 2.5% of GDP, to -$248 billion in 2006, 1.9% of GDP, and more effectively in 2007, when the deficit was reduced to a socially responsible -$161 billion, 1.1% of GDP. But without official acknowledgment of the source of these surplus military revenues, SSA could not be divested of their property, to achieve the common goal of peace and a balanced budget.

Table 2: Overview of the President’s Budget 2005-2012 (in billions)

	2005	2006	2007	2008	2009	2010	2011	2012
GDP	12,638	13,399	14,078	14,441	14,259	14,624	15,299	16,203
% Change		6%	5.1%	2.6%	-1.3%	2.6%	4.6%	5.9%
Receipts	2,154	2,407	2,568	2,524	2,105	2,165	2,567	2,926
% GDP	17%	18%	18.2%	17.5%	14.8%	14.8%	16.8%	18.1%
% Change		11.7%	6.7%	-1.7%	-16.6%	2.9%	18.6%	14%
Outlays	2,472	2,655	2,729	2,983	3,518	3,721	3,834	3,755
% GDP	19.6%	19.8%	19.4%	20.7%	24.7%	25.4%	25.1%	23.2%
% Change		7.4%	2.8%	9.3%	17.9%	5.8%	3%	-2%
Deficit	-318	-248	-161	-459	-1,413	-1,556	-1,267	-828
% GDP	2.5%	1.9%	1.1%	3.2%	9.9%	10.6%	8.3%	5.1%
% Change		22%	35%	-185%	-208%	-10%	18.6%	35%

Sources: OMB Historical Table 1.1 Summary of Receipts, Outlays and Surpluses or Deficits 1780-2015 and BEA Gross Domestic Product 1929-2009

To cover the tracks of his relatively benign stock market speculation, the lame duck Bush administration, with the help of Fed Chairman Bernanke, concocted a scheme to sabotage the economy through a series of bailouts, in the absence of Federal Reserve landing, to allow him and other war criminals and energy tycoons to launder their proceeds in the safety and security of Federal Treasury bonds, and to create such a torturous financial and economic mess, that the subsequent administration of medically abusive Democrats would not have the standing to prosecute the war criminals from the previous administration. After massacring Afghan civilians right after a campaign stop to the extremely corrupt hometown of the former OMB Director, Rob Portman, in July 2008. When Obama was not responsible for his war crime and then selecting the most reprehensible torturer to be his Vice, from a list of chauvinist pigs, open to blackmail by the Secretary of Defense of his predecessor Obama committed himself to continuing the legacy of lies, deception and torture as a defense attorney for the war prosecutor. In self defense Hospitals & Asylums ceased serving the government shortly before the Fall Equinox 2008, and without any accountability, whatsoever, the economy was punished with a parody of robbing from Peter, then CBO Director (the free market), to pay Paulson, the Treasurer (the investment bankers), within days. Both Obama and McCain went along with the bailout propaganda, although it would undermine the budget of their administration, neither are idealists. The $700 cost of Economic Stabilization Act of 2008 broke the camels back as investment capital fled Wall St. to the safety of Treasury securities. The stock market immediately crashed and the shortage of investment capital caused firms to curtail employment and unemployment spread like wildfire. The cost of the bailouts leaves a nearly exact impression on the growth of the GDP from the previous quarter.

Table 3: Gross Domestic Product Annually and Quarterly 2008-2009 (in billions)

	2008 1Q	2008 2Q	2008 3Q	2008 4Q	2008	2009 1Q	2009 2Q	2009 3Q	2009 4Q	2009
GDP	14,374	14,498	14,547	14,347	14,441	14,178	14,151	14,242	14,463	14,259
Growth	1.0	3.5	1.4	-5.4	2.6	-4.6	-0.8	2.6	6.4	-1.3

Source Bureau of Economic Analysis Gross Domestic Product 1930-2009

The effects of stimulus and bailout measures were counterintuitive and immediate. Already stretched beyond capacity, the federal government did not have enough off-budget surpluses to finance more deficit spending, wherefore the cost of the bailout was foisted on the market. The market, struggling with the $165 billion cost of the Recovery Rebates and Economic Stimulus for the American People Act of 2008 P.L. 110-185 of February 13, 2008 and the $250 billion Fannie Mae conservatorship, Housing and Economic Recovery Act (HERA) of 2008 P.L. 110-289 on July 30, 2008, that caused record number of foreclosures and a first negative credit extension in history in August of 2008, could not bear the $700 Troubled Asset Relief Program (TARP) created in the Emergency Economic Stabilization Act (EESA) HR 1424 of October 3, 2008 that immediately triggered -5.4% economic growth and millions of layoffs. Money was being diverted from relatively high levels of employment on the stock market to zero employment in Federal Treasury bonds to very low levels of employment, per dollar, in the largest financial institutions, determined to be “too big to fail” by the Federal Reserve and Democratic and Republican (DR) party, in mockery of a century of anti-trust break-ups of large corporations into smaller, more manageable companies. Panicking, the federal government could not learn from their mistakes. Although the naturally resilient free economy, the United States is so proud of, had nearly recovered, the Obama administration embarked on another stimulus package in the beginning of his administration, the $787 American Recovery and Reinvestment Act (ARRA) P.L. 111-5 of February 17, 2009, assuring an official recession, defined as two quarters of negative growth, triggering -4.6% economic growth in first quarter 2009, and -0.8% in the second quarter and commensurate unemployment. Shortly thereafter the Congress made their fiscal oppressiveness clear with the passage of Children's Health Insurance Program Reauthorization Act of 2009 (Public Law 111-3) that increased the tax on child-proof hand-rolling tobacco 2,159% and the small cigars favored by the poor, 2,653% while the tax on the President’s Taylor made cigarettes went up only 159% and the cigars of investment bankers, not at all. All this while the $8 billion Attorney General Master Tobacco Settlement equal to the demands of CHIP goes un-appropriated. The hypocrisy was enough to fuel a Tea Party to throw the 111^th Congress into the harbor. Without any more bailouts, the economy recovered in the latter half of 2009, but the term “Great Recession” sticks and the laws of the 111^th Congress, which completely abolished torture statute, do not.

Table 4: Revenues 2005-2012 (in billions)

	2005	2006	2007	2008	2009	2010	2011	2012
Individual Income Taxes	927	1,044	1,163	1,146	915	936	1,121	1,326
Corporate Income Taxes	278	354	370	304	138	157	297	366
Social Insurance and Retirement	794	838	870	900	891	875	935	1,005
Excise Tax	73	74	65	67	62	73	74	81
Other	81	97	100	106	98	124	140	148
Total	2,154	2,407	2,568	2,524	2,105	2,165	2,567	2,926
On-Budget	1,576	1,798	1,933	1,866	1,451	1,530	1,893	2,206
Off-Budget	577	608	635	658	654	635	674	720

Source: OMB Historical Tables Table 2.1 Receipts by Source 1934-2015

Despite the massive bailout funding revenues plunged. Every dollar of the bailout came out of the free market to finance the half baked ambitions of the political economy, to be the Chairman of the Federal Reserve, who it turns our had taken 2008 off, neither citing authors in contravention to the Berne Convention, nor more significantly to the financial or economic system lending to those poor bankrupt too big to fail financial institutions usually broken up and sold in these circumstances under bankruptcy and anti-trust statutes or on the free market debt sales. Without private investment financial firms declared losses and had to curtail hiring and in worst case to fire their employees, rising unemployment cut into national income and consumption in the classic economic recession described by John Maynard Keynes in his General Theory on Employment, Money and Interest (1936). The propaganda proliferating in the literature however directs textbook readers to deficit spending although in the economic cannon, so often attributed to being synonymous with deficit spending, in fact complains that deficit spending is unpredictable and often devastatingly counterproductive. As the result of the bailout the fiscal crisis spread to the general economy and this in turn caused a downturn in revenues. This financial crisis weighed particularly hard on corporate income taxes, that plunged from $304 billion in 2008 to $138 billion in 2009. These are the longest downturns in revenues since the OMB began keeping records in 1934. True there were downturns in 1939, a false decline after a massive doubling in 1945-1946 in 1946-1950, 1955, 1958-1959, 1971, 1983, After a massive jump from $879 billion in 1999 individual income tax revenues jumped to $1,004 billion before plunging to $994 in 2001 and not climbing above $1 trillion until 2005 and plunging again to $900s in 2009 and 2010, total receipts were proportionate. The war interested tax cuts and bailouts of the Bush administration have caused two of the longest drops in revenues in U.S. history. The Obama administration needs to be careful to adhere to Pay-go policies in regards to his tax initiatives so as to maintain a profitable margin of rational capitalist self-interest to avoid falling into the deficit trap of his immediate predecessor.

Table 5: Gross Federal Debt 2005-2012 (in billions)

	2005	2006	2007	2008	2009	2010	2011	2012
Gross Federal Debt	7,905	8,451	8,951	9,986	11,876	13,787	15,144	16,336
% GDP	63.5%	63.9%	64.4%	69.2%	83.4%	94.3%	99.0%	100.8%
Change		546	500	1,035	1,890	1,911	1,357	1,192
% Change		6.9%	5.9%	11.6%	18.9%	16.1%	9.8%	7.9%
Federal Reserve Debt	736	769	780	490	769
% GDP	5.9%	5.8%	5.6%	3.4%	5.4%
Change		33	11	-290	279
% Change		4.5%	1.4%	-37%	57%

Source: OMB Historical Table 7.1 Federal Debt at End of Year 1940-2015

The debt to individual, corporate, State and National purchasers of T-bonds is quite real, and the federal government has no intention of defaulting on their debts, in fact, one of the major impulses causing the crisis was an irrational importance, honor and panic tied to credit and the particularly stupid and unjustified debtor way of life. Since 2000, under President Bush, the level of Gross Federal Debt has risen from $5.6 trillion, 57% of GDP, to $9.9 trillion, 69% of GDP in 2008. Under Obama and the bail outs the level of debt has risen alarmingly and threatens to exceed 100% of the GDP by 2012. This is the largest debt incurred in real terms and second only, as a percentage of GDP, to the debt incurred to win World War II that rose to 122% of the GDP. The situation today is however much difference, the United States is fighting neither a real war, nor a real economic crisis, such as the Great Depression, that deficit spending could theoretically alleviate. What occurred is that in his final, lame duck, year in office President Bush with the assistance of Federal Reserve Chairman Bernanke concocted a scheme to sabotage the economy and launder his war chest. In 2008, while publicly illiterate, without any citations in the Federal Reserve newsletter, and lamenting the dastardly state of the credit industry in the free press, the Federal Reserve secretly called in $290 billion more loans than they made, devastating the financial industry that normally benefits from these loans, that went negative for one month in August, whereupon an enormous $700 billion Congressionally sponsored TARP bailout was called for, ostensibly at the taxpayers expense, but actually at the expense of investors. While this great reduction in loans in 2008 might be used as a defense against allegation of conflict of interest in the procurement of Federal Reserve loans, it in fact serves to convict Chairman Bernanke of the market manipulation, the federal reserve procurement and non-procurement, that gave rise not only to the financial crisis, but to the propaganda and bailout that gave rise to the economic crisis, wherefore his loyalty to the previous President is in question and there is sufficient cause for his removal from office. It is the first time since 1949 the Federal Reserve’s loan portfolio went down in value, and although they have sabotaged the economy a number of times, during the recessions of 1920-21 and 1980-82, never so dramatically, or with such ill effect, by means of withholding their pride and joy, lending.

Table 6: Status of the Troubled Asset Relief Program as December 31, 2009 (in billions)

	Authorization	Expenditure	Unspent	Repayments	Dividends	Unpaid	Bankrupt	Proceeds 12/2009	Annual Return
TARP	698.8	549.4	149.4	165.2	16.9	140.7	2.6	321.5	46%

Source: Special Inspector General of the TARP. Quarterly Report to Congress. January 10, 2010

The termination of the Emergency Economic Stabilization Act (EESA) HR 1424 of October 3, 2008, that created the Troubled Asset Relief Program (TARP) and provides the Secretary of the Treasury with various authorities to restore liquidity to the United States financial system and stimulate lending, is a priority. As of December 31, 2009, Treasury had announced programs involving potential spending of $549.4 billion of the $698.8 billion maximum available for the purchase of troubled assets under TARP as authorized by Congress in EESA. Of this amount, Treasury had planned TARP expenditures of approximately $500.1 billion through the 10 implemented programs to provide support for U.S. financial institutions, the automobile industry, and homeowners. As of December 31, 2009, the TARP program had made gross purchases totaling more than $450 billion. After accounting for the roughly $150 billion repaid, the TARP program has net holdings of approximately $300 billion. As of December 31, 2009, there was $140.7 million in outstanding unpaid CPP dividends. Finally, three TARP recipients that received a combined $2.6 billion in TARP funds have filed for bankruptcy. TARP ends on October 3, 2010. The Treasury reports that usage in 2009 was far lower than expected and at the end of TARP, by the beginning of FY 2011, all proceeds and unspent funds, an estimated $400-600 billion should be returned to the General Fund of the Treasury to help offset the deficit. Congress is highly encouraged to pass legislation so that all repayments, interest and dividends on TARP loans are immediately returned to the General Fund to offset the deficit. Recent estimates by the Treasury put the expected fiscal cost of the TARP program at around $120 billion. The president proposes to assess a 0.15 percent fee on the liabilities of all large financial firms operating in the United States, a “too big to fail tax” similar to deposit insurance.

Table 7: State Budget Shortfalls FY2009 (in millions)

	Total State Budget Gap FY2009	Total Gap as % of FY General Fund	Unemployment Rate December 2009	Recovery Act Allocations High Est.
United States	$93,000	14.2%	10.0%	$338,590
Alabama	$1,800	22.2%	11.0%	$4,010
Alaska	$360	6.8%	8.8%	$1,548
Arizona	$3,500	34.5%	9.1%	$5,910
Arkansas	$107	2.4%	7.7%	$2,552
California	$35,900	35.5%	12.4%	$35,400
Colorado	$604	7.7%	7.5%	$4,140
Connecticut	$1,500	8.5%	8.9%	$3,702
Delaware	$43	12.2%	9.0%	$977
Florida	$5,700	22.2%	11.8%	$15,137
Georgia	$2,400	11.5%	10.3%	$8,076
Hawaii	$232	4.0%	6.9%	$1,520
Idaho	$131	7.4%	9.1%	$1,775
Illinois	$3,800	13.4%	11.1%	$12,518
Indiana	$763	5.8%	9.9%	$6,690
Iowa	$484	7.6%	6.6%	$2,674
Kansas	$185	2.9%	6.6%	$2,227
Kentucky	$722	7.8%	10.7%	$3,767
Louisiana	$341	3.7%	7.5%	$3,777
Maine	$265	8.6%	8.3%	$1,521
Maryland	$1,500	10.0%	7.5%	$5,119
Massachusetts	$3,600	12.7%	9.4%	$8,595
Michigan	$672	2.9%	14.6%	$10,908
Minnesota	$1,400	7.9%	7.4%	$5,148
Mississippi	$265	5.2%	10.6%	$2,711
Missouri	$342	3.8%	9.6%	$5,195
Montana	NA	NA	6.7%	$1,472
Nebraska	NA	NA	4.7%	$1,443
Nevada	$1,400	19.6%	13.0%	$2,713
New Hampshire	$250	8.0%	7.0%	$1,490
New Jersey	$4,600	14.2%	10.1%	$9,115
New Mexico	$454	7.5%	8.3%	$2,583
New York	$6,400	11.7%	9.0%	$23,872
North Carolina	$800	3.7%	11.2%	$8,321
North Dakota	NA	NA	4.4%	$867
Ohio	$1,900	6.8%	10.9%	$10,396
Oklahoma	$114	1.7%	6.6%	$3,270
Oregon	$42	6.6%	11.0%	$3,983
Pennsylvania	$2,300	8.1%	8.9%	$12,712
Rhode Island	$802	24.5%	12.9%	$1,360
South Carolina	$804	11.7%	12.6%	$8,321
South Dakota	$27	2.2%	4.7%	$1,080
Tennessee	$1,400	12.0%	10.9%	$5,746
Texas	NA	NA	8.3%	$20,110
Utah	$620	10.4%	6.7%	$2,022
Vermont	$125	10.3%	6.9%	$840
Virginia	$2,300	13.8%	6.9%	$5,666
Washington	$509	3.4%	9.5%	$7,576
West Virginia	NA	NA	9.1%	$1,937
Wisconsin	$998	7.1%	8.7%	$5,493
Wyoming	NA	NA	7.5%	$658

Source: Kaiser Family Foundation. State Health Facts. January 29, 2009; BLS Regional and State Employment and Unemployment Summary January 10, 2010; Recovery.gov Agency Report U.S. Totals. February 16, 2010

III. Operation

The American Recovery and Reinvestment Act of 2009 P.L. 111-5 of February 17, 2009 was not voted for by a single Republican in the House and only three in the Senate. The Act includes federal tax cuts, expansion of unemployment benefits and other social welfare provisions, and domestic spending in education, health care, and infrastructure, including the energy sector. The Congressional Budget Office (CBO) estimated that enacting the bill would increase federal budget deficits by $185 billion over the remaining months of fiscal year 2009, by $399 billion in 2010, by $134 billion in 2011, and by $787 billion over the 2009-2019 period, only $69 billion between 2012-2019. The $787 billion is distributed as follows, $288 billion in tax cuts, $275 billion in contracts, grants and loans, and $224 billion in entitlements. As of February 12, 2010 only $92.8 billion, 32.2%, had been paid in tax cuts, $86.9 billion, 31.6%, in contracts, grants and loans and $109 billion, 48.6%, in entitlements. Despite the massive funding, mostly to stimulate employment, over 2009, jobless rates increased in all 50 states and the District of Columbia. The national unemployment rate was 10.0 percent in December 2009 but was 2.6 percentage points higher than a year earlier. The 600,000 jobs created under the Recovery Act do not compensate for the 7 million lost. The government is simply not more efficient at allocating resources than the free market, from whence the funds were taken. There is however no doubt that the States needed the funds. The Act would have made more sense, and been less controversial, if it was indeed grants, loans and contracts to States to offset their budget deficits. The great mystery of the ARRA, besides where are the funds, and why don’t they just go to the States to offset their budget deficit’s is why does its cost not go away and leave the budget in balance? This is the extraordinarily perplexing question that this work treats upon. How do we account for the stimulus spending? And why doesn’t the budget balance in 2011 when EESA profits should be rolling into the General Fund?

Table 8: Presidential Outlays by Agency, and Annual % Change 2002, 2005-2012 (in millions)

	2002	2005	2006	2007	2008	2009	2010	2011	2012
Legislative Branch	3,187	3,984	4,101	4,294	4,410	4,702	5,423	5,579	5,292
% Change			2.9%	4.7%	2.7%	6.6%	15.3%	2.8%	-5.1%
The Judiciary	4,828	5,547	5,823	6,006	6,347	6,645	7,159	7,512	7,351
% Change			4.9%	3.1%	5.7%	4.7%	7.7%	4.9%	-2.1%
Agriculture	68,622	85,308	93,533	84,427	90,795	114,440	142,016	145,748	137,917
% Change			9.6%	-9.7%	7.5%	26%	24%	2.6%	-5.4%
Commerce	5,312	6,147	6,372	6,475	7,721	10,718	16,714	11,500	10,430
% Change			3.6%	1.6%	19.2%	38.8%	55.9%	-31.9%	-9.3%
Defense – Military	331,845	474,354	499,344	528,578	594,662	636,775	692,031	721,285	653,424
% Change			5.3%	5.9%	12.5%	7.1%	8.7%	4.2%	-9.4
Defense - Civil	35,136	43,481	44,435	47,112	45,785	57,276	54,317	55,719	56,457
% Change			2.2%	6%	-2.8%	25%	-5.1%	2.6%	1.3%
Defense -Total	366,981	517,835	543,779	575,690	640,447	694,051	746,348	777,004	709,881
% Change			5%	5.9%	11.2%	8.4%	7.5%	4.1%	-8.6%
Education	46,474	72,858	93,368	66,372	65,963	53,389	106,944	94,261	85,178
% Change			28.2%	-28.9%	-0.6%	-19.1%	100.3%	-11.9%	-9.6%
Energy	17,669	21,271	19,649	20,116	21,400	23,683	38,278	44,390	34,792
% Change			-7.6%	2.4%	6.4%	10.7%	61.6%	15.9%	-21.6%
Health and Human Services	465,326	581,390	614,274	671,982	700,442	796,267	868,762	934,426	911,291
% Change			5.7%	9.4%	4.2%	13.7%	9.1%	7.6%	-2.5%
Homeland Security	17,583	38,711	69,032	39,172	40,684	51,725	52,903	54,723	46,847
% Change			78.3%	-43.6%	3.9%	27.1%	2.3%	3.4%	-14.4%
Housing and Urban Development	31,788	42,453	42,435	45,561	49,088	61,019	62,518	53,082	48,153
% Change			0%	7.4%	7.7%	24.3%	2.5%	-15.1%	-9.3%
Interior	9,739	9,292	9,037	10,469	9,817	11,775	12,042	14,045	12,803
% Change			-2.7%	15.8%	-6.2%	19.9%	2.3%	16.6%	-8.8%
Justice	21,178	22,361	23,324	23,349	26,545	27,711	30,333	31,924	33,700
% Change			4.3%	0.1%	13.7%	4.4%	9.5%	5.2%	5.6%
Labor	64,686	46,949	43,138	47,544	58,838	138,157	209,265	116,902	90,790
% Change			-8.1%	10.2%	23.8%	134.8%	51.5%	-44.1%	22.3%
State	9,327	12,748	12,953	13,737	17,493	21,427	25,726	28,754	30,065
% Change			1.6%	6.1%	27.3%	22.5%	20.1%	11.8%	4.6%
Transportation	56,252	56,596	60,139	61,697	64,944	73,004	90,944	86,665	82,817
% Change			6.3%	2.6%	5.3%	12.4%	24.6%	-4.7%	-4.4%
Treasury	371,187	410,240	464,675	490,589	548,797	701,775	502,980	593,550	685,279
% Change			13.3%	5.6%	11.9%	27.9%	-28.3%	18.0%	15.5%
Veterans Affairs	50,686	69,815	69,777	72,792	84,749	95,457	124,565	124,215	122,369
% Change			-0.005%	4.3%	16.4%	12.6%	30.5%	0.3%	-1.5%
Corps of Engineers	4,727	4,719	6,944	3,918	5,075	6,842	10,536	6,929	5,879
% Change			47.1%	-43.6%	29.5%	34.8%	53.9%	-34.2%	-15.1%
Environmental Protection Agency	7,451	7,913	8,321	8,259	7,939	8,070	11,301	11,177	9,980
% Change			5.2%	-0.7%	-3.9%	1.7%	40.4%	-1.1%	-10.7%
Executive Office of the President	451	7,686	5,379	2,956	1,173	743	715	501	427
% Change			-30.1%	-45%	-60.3%	-36.7%	-3.8%	-29.9%	-14.8%
General Services Administration	-684	20	24	27	343	319	1,782	2,279	2,170
% Change			20%	12.5%	1,170%	-6.9%	4,586%	27.9%	-4.8%
International Assistance Programs	13,289	15,024	13,917	12,752	11,359	14,797	23,899	24,343	28,223
% Change			-7.3%	-8.4%	-10.9%	30.3%	61.5%	1.9%	15.9%
National Aeronautics and Space Administration	14,405	15,602	15,125	15,861	17,833	19,168	19,123	17,863	18,953
% Change			-3.1%	4.9%	12.4%	7.5%	-0.2%	-6.6%	6.1%
National Science Foundation	4,155	5,403	5,510	5,488	5,785	5,958	7,819	7,647	7,558
% Change			2%	-0.4%	5.4%	3%	31.2%	-2.2%	-1.2%
Office of Personnel Management	52,540	59,500	62,400	58,431	64,393	72,302	71,603	73,463	75,956
% Change			4.9%	-6.4%	10.2%	12.3%	-1%	2.6%	3.4%
Small Business Administration	493	2,502	905	1,175	528	2,246	5,978	1,388	1,112
% Change			-63.8%	29.8%	-95.6%	325%	166%	-76.8%	-19.8%
Social Security Administration (on-budget)	45,816	54,556	53,252	54,917	58,602	78,657	85,108	80,933	77,304
% Change			-2.4%	3.1%	6.7%	34.2%	8.2%	-4.9%	-4.5%
Social Security Administration (off-budget)	442,010	506,779	532,491	566,846	599,197	648,892	683,867	708,620	738,430
% Change			5.1%	6.5%	5.7%	8.3%	5.4%	3.6%	4.2%
Other Independent Agencies (on-budget)	16,705	16,766	14,003	12,913	47,221	47,635	2,001	31,832	26,928
% Change			-16.5%	-7.8%	266%	0.9%	-96%	1,491%	-15.4%
Other Independent Agencies (off-budget)	-651	-1,791	-1,075	5,093	2,417	304	6,426	4,226	-13
% Change			40%	287%	52.5%	-94%	2014%	-34.2%	-100.3%
Allowances						-4	18,750	21,676	-4,187
Undistributed offsetting receipts	-200,706	-226,213	-237,548	-260,206	-277,791	-274,193	-271.127	-283,287	-288,823
(On-budget)	-115,009	-123,436	-128,201	-141,904	-150,928	-142,013	-137,793	-148,634	-150,648
(Off-budget)	-85,697	-102,777	-109,347	-118,302	-126,863	-132,180	-133,334	-134,653	-138,175
Total outlays	2,010,907	2,471,971	2,655,057	2,728,702	2,982,554	3,517,681	3,720,701	3,833,861	3,754,852
Total receipts	1,853,149	2,154,000	2,407,000	2,568,000	2,524,000	2,105,000	2,165,000	2,567,000	2,926,000
Total deficit	-157,758	-318,000	-248,000	-161,000	-459,000	-1,413,00	-1,556,000	-1,267,000	-828,000
% Solvent	92.2%	87%	91%	94%	85%	60%	58%	67%	78%

Source: OMB Historical Budget Table 4.1 Outlays by Agency 1962-2015

In the absence of a decisive veto of bailout legislation, a line item veto must be exercised in the form of impoundment, whereby the executive impounds illicit or unnecessary funds and returns them to the General Fund of the Treasury. As the result of the Obama, big government, style of administration, it is no longer sufficient to merely hold the Department of Defense liable, but where the Department of Defense once needed to be reigned in to leverage a return of Social Security surplus funds, all agencies will need to eliminate waster, fraud and abuse from their budgets. Besides total defense spending, that needs to be reduced from $695 billion to $400, for a saving of $295 billion, there are a number of Departments with alarming budget increases. The Department of Agriculture’s 51% increase from $90.1 billion in 2008 to $142 billion in 2010 should be cut to $100 billion saving $42 billion. The 103% increase in education spending from $53 billion in 2009 to $107 billion in 2010 should be limited to a sustainable $75 billion, saving $32 billion. The 61.6% increase in Energy spending from $24 billion in 2009 to $38 billion should be limited to $25 billion, a savings of $14 billion. Health and Human Services spending needs to be massively cut back from $869 billion to less than $600, for a savings of $269. The 9.5% increase in Justice spending needs to be reigned in from $30.3 billion to $28 billion, saving $2 billion and a lot of souls. The massive increases in Labor spending are not liberating the labor market that continues to shed more jobs than are created, the 186% increase from $59 billion in 2008 to $209 billion in 2010 needs to be reduced to meet the demands of unemployment insurance balance sheets. The 30.5% increase in Veteran’s spending in 2010 needs to be reduced from $124 billion to $100 billion, for a spending increase of 5.2% and savings of $24 billion. The 40.4% increase in Environment Protection Agency spending should be limited to $10 billion, saving $1 billion. The 31.2% increase in National Science Foundation spending should be limited to $6.2 billion, saving $1.5 billion. This dictates a total savings of $756.5 billion from the 2010 budget, theoretically reducing the deficit to -$775 billion, 5.3% of the GDP, but it is in fact the agency dictators who need to impounded. Every agency will have to be carefully audited.

Table 9: Legislative and Judicial Spending FY 2005-2012 (in millions)

	2008	2009	2010	2010	2011	2011	2012	2012
Legislative Branch	4,410	4,702	5,423	4,294	5,579	4,294	5,292	4,294
Savings				1,129		1,285		998
Judicial Branch	6,347	6,645	7,159	6,711	7,512	6,777	7,351	6,845
Savings				446		734		506

Source: OMB Detailed Budget Estimates: Legislative Branch & Judicial Branch. February 2010

To express public outrage at the abuses of the Democratic and Republican (DR) party and to instill a sense of responsibility into the 111^th Congress to achieve a balanced budget, the legislature’s budget should be directly linked to the deficit as punishment for their inability to produce a balanced budget or to pay any petitioners or in fact have any socially redeeming qualities whatsoever that weren’t just a trick. The Executive Office of the President has reduced his expenses to only $715 million from a high of $7.7 billion in 2005 after dramatically rising from $451 million in 2004, the year before. The legislature should similarly tighten their belt to help offset the deficit. Whereas there is little so offensive in their request as to justify impounding any items, it is probably best to freeze legislative spending at 2007 levels, $4.3 billion, a savings of $1.1 billion, a reduction of 14% in 2010, until such a time that they bring the federal budget deficit below 3% of the GDP. The legislative programs particularly in need of reduction are the special funds for leaders, the Vice President, Speaker, Majority and Minority Leaders, Whips, etc. whereas they are particularly unpopular of late, but every appropriation can afford to take a little out of the margin, to reduce the deficit, the Constitution makes them responsible for. The Judicial Branch is not specifically responsible for balancing the budget, they can therefore not be held liable for failing to do so, it is not their power. The Judicial Branch is however extraordinarily delinquent in regards to the balance of prisoners that is the largest and most concentrated in the world. We are not pleased with the judiciary, but as they cannot be held responsible for the balancing of the budget, it seems fair to allow the judiciary a an annual increase of 1%, sparing them the -2/1% decline in 2012, for a savings of $446 million in 2010, $734 million 2011 and $506 million in 2012.

Table 10: Department of Treasury Balance 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Treasury OMB	548,797	701,775	502,980	593,550	685,279
% Change	11.9%	27.9%	-28.3%	18.0%	15.5%
Treasury Operations Budget Justification		14,582	15,591	17,002	17,500
Treasury Net Interest on Debt		372,518	388,637	455,941	500,000
Treasury Mandatory Accounts		511,515	1,717	90,989	91,000
Treasury Total		896,972	400,472	560,863	600,000
Savings		-195,197	102,508	32,697	85,000

Source: US Treasury. Budget Documents. FY 2011. February 1, 2010

The Treasury Department was created at the start of the Republic in a 1789 Act of Congress. Today, the Department of the Treasury remains the premier financial institution of the United States with a full-time agenda of accounting, revenue collection, money production, and economic policy formulation. The actual operations costs of the Treasury, for printing and engraving money, and a myriad of financial security programs, are $14.6 billion in 2009, rising to $15.6 billion in 2011, a 9% increase, future increases must be limited to 3% for $17.5 billion in 2012. The Treasury received $318 million in Recovery Act funds. The workload on the Treasury has increased dramatically because of the economic crisis. The major usual cost of the Treasury is the interest on federal debt, costing $372.5 billion in 2009 and $455.9 billion in 2011, this amount increases with the amount of federal debt ,which has been mounting at a fast rate, growth in interest payment was 4.3% between 2009 and 2010 and 17.3% between 2010 and 2011, future increases are dependent upon the size of the deficit, they will not go down, but their increase can be limited. The mandatory accounts include particularly, the TARP fund and GSE securities, the costs of both of which underwent downward revision in 2010, unspent TARP and GSE funds were returned to the Treasury, returning the mandatory account total balances, back to normal, a little less than $100 billion. The return of the proceeds of TARP at the end of FY2010 might reduce the Treasury accounts by more than $400 billion, but it would probably be better for TARP to offset the government-wide costs of the Recovery Act and the deficit in general. The Treasury must seek financial stability, not incur any more extraordinary obligations, seek to minimize the deficit by minimizing cost inflation and most of all returning investment revenues to the General Fund to reduce the deficit and achieve balance.

Table 11: Department of Justice Spending 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Justice OMB	23,349	27,711	30,333	31,924	33,700
% Change	0.1%	4.4%	9.5%	5.2%	5.6%
Justice Budget Request			27,700	29,200
Savings			2,622	2,724
1 % Growth			23,816	24,054	24,295
Savings			6,517	7,870	9,405

Source: DOJ. FY 2011 Budget and Performance Summary. January 29, 2010

The Office of the Attorney General was created in the Judiciary Act of 1789. In 1870, after the post-Civil War increase in the amount of litigation involving the United States necessitated the very expensive retention of a large number of private attorneys to handle the workload, a concerned Congress set up "an executive department of the government of the United States" with the Attorney General as its head. The President needs use his pardon power, so far he has not pardoned anyone, even Bush pardoned more than a hundred people while in office, Obama should pardon a hundred a day to represent the ideals of racial equality and freedom the people elected him for, to redress the balance of prisoners greater than 750 per 100,000 in the USA, above the legal limit of judicial credibility of 250 and help balance, mostly state budgets and utilize the foreclosed housing, harmless prisoners should be transferred to halfway houses to cut costs from $25,000 to $5,000 annually. Halfway houses should be the only federal finance of local jurisdictions. Because of their poor performance, non-cognizance, drug jurisdiction and all around negative returns, spending growth in the DOJ must limited to 1%. Noting the conflict of interest with the AG and President fiscal discipline will probably need to be enforced. Taking into consideration how subversive the organization is on international affairs and to eliminate conflict of interest with the prior administration the President should appoint his own DEA Administrator, with the intention of transferring the agency to the Food and Drug Administration (FDA). The Office of Violence against Women is propaganda for violence as it is written and needs to be amended to Office of Women’s Rights. Growth should not begin with the $1 billion Recovery Act subsidy in 2009 but from 2008 wherefore savings in 2010 would be $6.5 billion, $7.9 billion in 2011 and $9.4 in 2012.

Table 12: Departments of State, International Assistance and Homeland Security Spending 2009-2012 (in millions)

	2009	2010	2011	2012
State OMB	21,427	25,726	28,754	30,065
State Budget Request	15,826	17,613	16,400	16,500
International Assistance Programs OMB	14,797	23,899	24,343	28,223
International Assistance Budget Request	34,308	35,441	36,400	38,500
Total OMB	36,224	49,625	53,097	58,288
Total Budget Request	52,653	55,028	52,800	55,000
Difference	16,429	5,403	-297	-3,288
Homeland Security OMB	51,725	52,903	54,723	46,847
Homeland Security Budget Request	56,063	55,348	56,345

Source: State. Executive Budget Summary. Function 150 and Other International Programs. FY 2011, Department of Homeland Security. FY 2011 Budget in Brief

The Department of State was one of the original three departments created by the first Congress in 1789. The Department of Homeland Security was created in 2001 to consolidate the immigration service, transportation and emergency management agencies of the federal government. The Department of State and the U.S. Foreign Service costs would not have risen were it not for the $4.4 billion in supplemental funding received in 2010. Foreign assistance, will lessen the costs incurred by war, economic or otherwise, through the peaceful diplomatic channel of international economic cooperation focused on ODA and mutual prosperity. The OMB really needs to account for the division between State and International Assistance programs more accurately for the United States to benefit more from the appreciation of foreign assistance funding. There is little difference between the requests of the Department of Homeland Security and the OMB. The 27% increase in Homeland Security spending in 2009 from $40 billion to $52 billion is the only alarming thing, when in controversy the lower numbers of OMB should be used. Whereas Homeland Security costs fluctuated considerably over the agencies first decade, it seems wise to go with the higher numbers, mitigated by OMB. To make America safe this money must pay for the amendment of Title 22 Foreign Relations and Intercourse (a-FRaI-d) to Title 22 Foreign Relations (FR-ee), USAID ANE Bureau must be divided into the Bureaus for Middle East and Central Asia (MECA) including Indonesia and North Africa and South East Asia (SEA) including Oceania and the Court of International Trade of the United States (CoITUS) needs to be changed to Customs Court (CC).

Table 13: Department of Defense Spending 2008-2012 (in millions)

	2007	2008	2009	2010	2011	2012
Defense – Military OMB	528,578	594,662	636,775	692,031	721,285	653,424
% Change	5.9%	12.5%	7.1%	8.7%	4.2%	-9.4
DoD Budget Request				693,000	708,000
DoD Overseas Contingency Operations				157,400	159,300	0
DoD Lending (Savings)			172,000	195,000	200,000	0
DoD Revised Budget			464,775	497,031	508,000	400,000
DoD Savings			172,000	195,000	200,000	253,424

Source: US DoD. FY 2011 Budget Request. February 2010

Since the creation of America’s first army in 1775, the Department and its predecessor organizations have evolved into a global presence of 3 million individuals, stationed in more than 140 countries. The U.S. Department of Defense is one of the largest organizations in the world. It executes a budget more than twice that of the world’s largest corporation, has more personnel than the populations of a third of the world’s countries, and provides medical care for as many patients as the largest health management organization. The size ($712.1 billion for FY 2011) and complexity of the Defense budget—i.e., $548.9 billion of discretionary base budget authority (BA), $3.9 billion in mandatory base BA, and $159.3 billion of discretionary BA for overseas contingency operations (OCO). The FY 2011 budget includes an increase of 1.4 percent for military basic pay. The number of soldiers is expected to increase from 1.32 million in 2010 to 1.4 million in 2011, plus 845,000 reserves. The request supports average U.S. troop levels of Afghanistan: 102,000; Iraq: 43,000; for a total of:145,000. The FY 2011 budget includes $50.7 billion for the DoD Unified Medical Budget. The American Recovery and Reinvestment Act of 2009 included approximately $7.4 billion in Defense-related appropriations, $4.6 billion for USACE. The DoD budget is so grossly surplus OMB reports they lent $172 billion in 2009, $195 billion in 2010 and $200 billion in 2011; this money needs to be returned to the General Fund of the Treasury. The military is not a financial firm, surplus funds must be returned to the General Fund of the Treasury. The President needs to confidently terminate special funding and offensive military operations for OCOs as scheduled in 2011, afterwards any remaining occupying forces will be funded by regular appropriations, like those on bases in 143 other nations. It is imperative that the President appoint his own Secretary of Defense to eliminate conflict of interest with the prior administration. An estimated $40 billion in maintenance costs can be saved by achieving nuclear nonproliferation goals for 2012 and more closing and selling unnecessary military bases and installations.

Table 14: Veterans Affairs Spending 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Veterans Affairs OMB	84,749	95,457	124,565	124,215	122,369
% Change	16.4%	12.6%	30.5%	0.3%	-1.5%
Veterans Affairs Congressional Submission	90,900	97,000	111,035	121,604	125,252
VA Discretionary (medical)	46,000	50,600	56,100	60,300
VA Entitlement (benefits)	44,900	47,100	58,000	64,700
Defense – Civil (Duplicate of benefits) Savings	45,785	57,276	54,317	55,719	56,457

Source: VA FY 2011 Budget Submission

Although this VA benefits system traces its roots back to 1636, when the Pilgrims of Plymouth Colony were at war with the Pequot Indians and the Pilgrims passed a law which stated that disabled soldiers would be supported by the colony the establishment of the Veterans Administration came in 1930 when Congress authorized the President to "consolidate and coordinate Government activities affecting war veterans" to fulfill President Lincoln’s promise – “To care for him who shall have borne the battle, and for his widow, and his orphan”. VA operates the largest direct health care delivery system in America. On September 30, 2009, there were an estimated 23.1 million living Veterans, with 23 million of them in the U.S. and Puerto Rico, there were an estimated 35.2 million dependents. The enormous budgetary increases create a moral hazard for the federal budget. The VA definitely needs to account for their pension funds better. For their part the OMB is duplicating veterans benefits, burial and other programs in the column titled, Defense – Civil. Therein can saving be found for the federal budget. OMB must eliminate the entire cost of the Defense-Civil column whereas the $179 million for Armed Forces Retirement Home Gulf Port facility renovation is really not much for such an engorged VA budget that duplicates. Spending growth should remain stable at 3% after 2012.

Table 15: Civil Corp of Engineers Spending 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Civil - Corps of Engineers OMB	5,075	6,842	10,536	6,929	5,879
Corps of Engineers Budget Request	5,406	5,242	5,589 + 4,600 ARRA	5,438	5,500
Corps of Engineers Savings		1,600	347	1,491	379

Source: USACE. Program Budget. FY 2011. February 2010

The Army established the Corps of Engineers as a separate, permanent branch on March 16, 1802, the Civil Works Program was founded in 1824. USACE employes 32,400 people, approximately 22,000 of them civilians. From the beginning, many politicians wanted the Corps to contribute to both military construction and works "of a civil nature." In the late 1960s, the Corps became a leading environmental preservation and restoration agency. OMB has overestimated the civil works budget of USACE 2009-2011. The Recovery Ace allocated $4.6 billion to USACE, that appears to have been incorporated into the 2010 OMB figures. 2009 and 2011 remain more than a billion overestimated by OMB.

Table 16: Department of Health and Human Services Spending 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Health and Human Services OMB	700,442	796,267	868,762	934,426	911,291
% Change	4.2%	13.7%	9.1%	7.6%	-2.5%
HHS Budget Authority	ARRA	779,419	800,271	880,861
HHS Recovery Act ARRA Total of 3 yr. spread	121,315	55,087	45,162	21,066
HHS Total Budget Authority ARRA spread		834,506	845,432	901,927
HHS Outlays ARRA spread		794,234	859,763	910,679
HHS Discretionary Outlays		75,603	90,703	92,903
HHS Food and Drug Administration		2,055	2,363	2,508
HHS Health Resources and Resources Administration		9,743	7,483	7,511
HHS Indian Health Service		4,081	4,052	4,406
HHS Centers for Disease Control and Prevention		6,868	6,475	6,432
HHS National Institutes of Health		40,796	31,089	32,089
HHS Substance Abuse Mental Health Services		3,335	3,432	3,541
HHS Agency for Healthcare Research and Quality		700
HHS Centers for Medicare and Medicaid Services		3,230	3,415	3,601
HHS Administration for Children and Family Services		22,457	17,336	17,480
HHS Administration on Aging		1,594	1,516	1,625
HHS General Department Management		382	490	544
HHS Office for Civil Rights		40	41	44
HHS Office of the National Coordinator		2,044	42	78
HHS Medicare Hearing and Appeals		65	71	78
HHS Office of the Inspector General		62	50	52
HHS Health Care Fraud and Abuse Control		198	311	561
HHS Public Health and Social Services Emergency Fund		10,661	738	734
HHS Prevention and Wellness		700
HHS Medicare Eligibility Accruals		35	36	37
HHS Aligning Head Start to Budget Year	ARRA	1,389
HHS Total Discretionary Budget Authority ARRA 2009	22,417	110,412	78,940	81,233
HHS Total Discretionary Inc. Fees ARRA 2009		117,374	87,064	90,252
HHS Discretionary Outlays ARRA spread		75,603	90,703	92,203
HHS Mandatory Outlays	118,984	718,631	859,763	910,679
HHS Medicare		424,747	444,003	468,601
HHS Medicaid		250,924	275,383	296,841
HHS TANF		18,933	22,083	21,001
HHS Foster Care & Adoption Assistance		6,859	7,403	7,442
HHS Children’s Health Insurance Program		7,547	9,103	10,485
HHS Child Support Enforcement		4,352	4,710	4,434
HHS Child Care		2,952	2,925	3,417
HHS Social Services Block Grant		1,854	2,118	1,832
HHS Other Mandatory Programs		1,686	2,340	4,825
HHS Offsetting Collections	ARRA	-1,223	-1,008	-992
HHS Budget Request Total	141,000	779,419	800,271	880,861
HHS Budget 2.5% Growth Limit Inc. ARRA 2009	141,000	717,953	735,902	754,299	773,157
HHS Savings ARRA 2009		-62,686	132,860	189,127	138,134

Source: HHS FY 2011 President’s Budget for HHS. February 1, 2010

The foundation of the public health service is typically attributed to July 16, 1798, when President John Adams signed a bill into law that created the Marine Hospital Service but the increasing involvement of the Service in public health activities led to its name being changed again in 1912 to the Public Health Service (PHS). It was not until the social programs of the 1960, particularly the Medicare and Medicaid legislation of 1965, that health became a major expense of the federal government. Subsequently the DEA was founded, income inequality took off and health care costs have soared, but the United States remains the only industrialized nation with a private health insurance system that fails to provide universal health insurance. As the result health costs more in the US, 16.5% of the GDP, than in any other nation, and healthcare outcomes are consistently better in nations with social insurance or, better yet, national health services, where it is professionally irresponsible for a health care professional to “bill” a patient.. There are also a number of agency names that need to be changed, the whole Department needs to be renamed the Public Health Department, but they must pass the test and transfer the DEA to the FDA and permit the TSDR to prohibit disease pathogens of abuse, SAMHSA needs to be renamed Social Work Administration (SWA) and once it has assumed responsibility for the adjudication of mental illness and substance abuse leave the department with other social and family agencies and CMS needs to be renamed National Health Insurance (NHI). The American Recovery and Reinvestment Act (the Recovery Act) poses a fiscal problem because it provides HHS programs with an estimated $141 billion for Fiscal Years 2009 – 2019. HHS now has a slush fund and must limit their budgetary inflation to less than 2.5% from 2008. This will help to control costs market-wide. OMB needs to transfer the Low Income Home Energy Assistance Act of 1981, $5,100,000,000 in FY 2009 and 2010 and $3.3 billion in 2012 spending $4.5 billion in 2009, $4.9 billion in 2010 and $3.6 billion in 2011 to the Department of Energy. Under current law OMB needs to limit the public health care budgetary cost growth to 2.5% from 2008 and apply the ARRA cost to the 2009 budget. This will save $132 billion in 2010, $189 billion in 2011 and $138 billion in 2012.

Table 17: Department of Interior Budget Authority and Receipts 2009-2011(in millions)

	2009	2010	2011	Change from 2009
OMB Estimates	11,775	12,042	14,045	2,003	Savings 2011
Current Appropriations	11,371	12,216	12,177	-39	1,868
Permanent Appropriations	5,596	7,740	5,780	-1,960
Total Appropriations	16,967	19,956	17,957	-1,999
Receipts	11,291	9,652	13,982	4,330
Balance	5,676	10,304	3,975	-6,329

Source: DOI. FY 2011 Interior Budget in Brief. Department Overview. January 29, 2010 Pg. 7

The Department of the Interior was created by Congress in 1849 to handle domestic matters, it has 70,000 employees. The Department supports over 1.3 million jobs and over $370 billion in economic activity. Parks, refuges, and monuments generate over $24 billion in recreation and tourism. Conventional and renewable energy produced on Interior lands and waters results in $292 billion in economic benefits and the water managed by Interior supports over $25 billion in agriculture. On January 14, 2010 Ken Salazar, Secretary of the Interior famously said, “We do not inherit the Earth from our ancestors,” says a familiar Native American proverb, “we borrow it from our children.” The estimate for revenue collections by the Department in 2011 is $14.0 billion, more than offsetting the budget request for current appropriations. In 2011, Interior will continue an exemplary record of producing revenue for the U.S. Treasury. The estimate for revenue collections by the Department in 2011 is $14.0 billion, more than offsetting the budget request for current appropriations. This presents a problem for the accounting of OMB. Historically OMB estimates cling to the current appropriations, ignoring the permanent appropriations and disregarding the receipts. Does the Treasury include these receipts in revenues? Should OMB use the balance instead, for a better budget? Without making drastic changes, the OMB needs to adhere to the Secretary’s 2011 budget request for $12.2 billion, saving $1.9 billion from than the $14 billion OMB estimate. In the future, DOI requests look reasonable.

Table 18: Department of Agriculture Balance FY 2008-2009 (in millions)

	FY 2008	FY 2009	% Change
Fund Balance	$64,595	$72,334	12%
Accounts Receivable, Net	$10,298	$8,866	-14%
Direct Loan and Guarantee, Net	$81,774	$85,657	5%
General Property, Equipment Net	$2,973	$2,972	0%
Other	$733	$733	11%
Total Assets	$160,373	$170,639	6%
Debt	$77,577	$84,119	8%
Loan Guarantee Liability	$1,333	$1,844	38%
Benefits Due	$2,764	$3,119	13%
Other	$39,298	$36,642	-7%
Total Liability	$120,972	$120,724	4%
Unexpended Appropriations	$30,783	$38,302	24%
Cumulative Results of Operations	$8,618	$6,613	-23%
Total Net Position	$39,401	$44,915	14%
Total Liabilities and Net Position	$160,373	$170,639	6%

Source: USDA 2009 Performance and Accountability Report pg. 10

The U.S. Department of Agriculture (USDA) provides leadership on issues related to food, agriculture, food safety, rural development, and natural resources. It was founded in 1862 by President Abraham Lincoln. The number of food stamp beneficiaries is reported to have risen 22.5% from 31 million to 38 million between November 2008 and 2009. The USDA employs 103,000 workers. USDA receives most of its funding from appropriations authorized by Congress and administered by the U.S. Department of the Treasury. Total budgetary resources consist of the balance at the beginning of the year, appropriations received during the year, spending authority from offsetting collections and other budgetary resources. Total budgetary resources were $208.7 billion for FY 2009 compared to $172.7 billion in FY 2008, an increase of $36 billion. The increase in budget authority was primarily due to $28 billion in appropriations received from ARRA. Net outlays increased $25.6 billion in FY 2009, mostly because of the $18.9 billion increase at FNS for the Women, Infants and Children (WIC) and Supplemental Nutrition Assistance (SNAP) programs. Despite cost increases, according to page 10 of the USDA 2009 Performance and Accountability Report, there were $38.3 billion in unexpended appropriations in FY 2009 and $30.8 billion in FY2008. Furthermore, the cumulative results of operations netted an estimated $8.6 billion in FY 2008 and $6.6 billion in FY 2009. USDA should return surplus funds, to the Treasury, estimated at $42 billion and the OMB should amend budgetary estimates to better reflect the Department balance sheet, after 2010 growth should however be more like 12% during recession and 5%, or less in normal years.

Table 19: Department of Commerce Spending 2008-2012 (in millions)

	2007	2008	2009	2010	2011	2011	2012	2012
Commerce Budget	6,475	7,721	10,718	16,714	11,500	8,400	10,430	8,600
Savings						3,100		1,800

Source: OMB Historical Budget Table 4.1 Outlays by Agency 1962-2015

The Department of Commerce and Labor was created by the Act of February 14, 1903. The cost of the Department of Commerce whose budget increases 19.2% in 2009 to $7.7 billion and 38.8% to 10.7 billion in 2010 before decreasing 31.9% to $11.5 billion in 2011 is explained by the cost of the 2010 Decennial Census Program estimated at $11.25 billion dollars in 2005. Whereas the cost increases between 2009 and 2010 amount to a total of $12 billion over 2008, the extraordinary $11.4 billion cost of the decennial census has been covered. The 49% increase over three years from $7.7 billion to $11.5 billion, 16% annually, however seems too much. 3% annual growth is much more reasonable, wherefore the Department of Commerce budget in 2011 would be $8.4 billion and in 2012 $8.6 billion, for a savings of $3.1 billion in 2011 and $1.8 billion in 2012. Whereas the cost of the decennial Census is exorbitant and needs analysis to reduce per capita costs and the Bureau of Economic Analysis (BEA) needs to change their name to the Bureau of Economics (BE) to escape the infringement of the DEA, growth in the Department budget should not exceed the reasonable GDP growth estimate of 3%.

Table 20: Department of Labor Spending 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Labor OMB	58,838	138,157	209,265	116,902	90,790
Labor Total Budget Request		142,503	162,003	79,982	70,000
Savings		-4,436	47,262	36,920	20,790

Source: DOL. FY 2011 Detailed Budget Documentation

The Department of Labor (DOL) was created in the DOL Organic Act of March 4, 1913. DOL fosters and promotes the welfare of the job seekers, wage earners, and retirees of the United States. DOL received a total of $34.4 billion in Recovery Act funds, including $29.5 billion of that for mandatory UT funds, these have been included in the budget request total for 2009. The FY 2010 President’s Budget request is $13.3 billion in discretionary budget authority and 17,477 full-time equivalent employees (FTE). The vast majority of increased DOL spending is the result of the dramatic increase in unemployment and unemployment insurance costs. The irony is that unemployment insurance comes out of the deficit and the deficit takes money away from higher employment yielding investments, a vicious cycle, but an important social safety net in these hard economic times. Federal unemployment insurance costs an estimated $1 billion annually, it has not been so high as 2004-2005. In FY 2008, state agencies collected $32.2 billion in state unemployment taxes, and paid $42.9 billion in Federal and state unemployment benefits to 8.9 million beneficiaries. During FY 2009 the state agencies are expected to collect $36.7 billion in state unemployment taxes and to pay $102.9 billion in Federal and state unemployment benefits to 12,000,000 beneficiaries. The FY 2010 Budget request for UI State Administration is $3,195,645,000, a decrease of $78,992,000 from the FY 2009 appropriation of $3,274,637. The formula for FY 2010 finances $28,600,000 per 100,000. An extension of the Emergency Unemployment Compensation (EUC08) program through December 31, 2009, with a phase out to May 31, 2010, estimated to cost $23.7 billion providing benefits to 3.4 million unemployed workers. An addition of $25 to all UI checks for weeks of unemployment ending before January 1, 2010, with a phase out ending on June 30, 2010, supplementing the checks for 16.3 million individuals and estimated to cost $8.7 billion. The high cost of unemployment insurance is undeniable, without thoroughly analyzing state UI trust fund balances, however the OMB must defer to the DOL estimates, that are significantly lower.

Table 21: Social Security Administration Balance Sheet 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Social Security Administration (on-budget) OMB	58,602	78,657	85,108	80,933	77,304
Social Security Administration Budget Justification			86,712	87,974
Social Security Administration (off-budget) OMB	599,197	648,892	683,867	708,620	738,430
Social Security Administration Income		819,000	848,000	900,000	946,000
Social Security Administration Expenses		683,000	709,000	735,000	773,000
Social Security Administration Savings		137,000	139,000	155,000	175,000
Social Security Administration Assets	2,203,000	2,340,000	2,479,000	2,634,000	2,809,000

Source: SSA. FY 2011 Budget Overview

The Economic Security Act that created social security was signed by Franklin D. Roosevelt on August 14, 1935. The Department has subsequent evolved into the independent Social Security Administration (SSA) it is today. In 2009, more than 51 million retired or disabled workers, survivors, and their families received over $659 billion in benefit payments. Nearly 8 million Americans received SSI benefits totaling $49 billion. Under the Recovery Act SSA issued a one-time payment of $250 to nearly 55 million Social Security and Supplemental Security Income beneficiaries. The recession has driven up the number of new disability claims from 580,000 to over one million, at any given time, an estimated 5 million claims annually. The Budget proposes $12.5 billion for SSA, an increase of $930 million, or (8 percent), above the 2010 enacted level of $11.6 billion. the increase in staffing in 2011 and will allow SSA to provide services faster. They have already reduced the disability appeals backlog from over 700,000 to 680,000. The pride and joy of Social Security is however the 12.4% payroll tax, split between employer and employee, 6.2%. With income, $819 billion in 2009, exceeding expenses, $683 billion in 2009, by 20% in 2009, for several decades, SSA has accumulated more than $2 trillion in savings, all in safe and secure federal Treasury notes, bonds etc. The SSA surplus is the primary government purchaser of the federal deficit, eg. the Congressional social security “raid”. It is rumored that as the result of the high number of early retirees and disability applicants from the recession expenses have exceeded payroll tax revenues in 2010, but not both payroll and interest income. Social Security has accumulated vast savings and is not in danger of insolvency. Social Security does need to become more accessible to the poor and earn some money, maybe a lot, disciplining medical malpractice, to ultimately liberate government health insurance and social welfare programs, as intended by Social Security Statute. The OMB need make no adjustments; SSA should earn any minor shortfalls settling medical malpractice settlements.

Table 22: Housing and Urban Development Spending 2009-2012 (in millions)

	2009	2010	2011	2012
Housing and Urban Development OMB	61,019	62,518	53,082	48,153
HUD Budget Request	61,811	49,347	48,913	48,153
Savings	-792	13,171	4,169	0

Source: HUD. FY 2011 Budget. February 1, 2010. Pg, 39

The Department of Housing and Urban Development (HUD) was created at the end of the Great Depression in the U.S. Housing Act of 1937. HUD's fiscal year 2010 budget request, $43.72 billion (net of receipts generated by FHA and the Government National Mortgage Association, or "Ginnie Mae") was a 7 percent increase over the fiscal year 2009 enacted level of $40.72 billion In 2008 the HUD budget was $45.6 billion. HUD has now obligated 98 percent of the $13.6 billion in ARRA funds stewarded by the Department - and disbursed $2.9 billion dollars. ARRA funds drove up spending on HUD in 2009 by $16 billion. By all accounts this stimulus was successful in stabilizing the housing market, that was the underlying cause of the financial economic crisis. As measured by the widely referenced FHFA index, home prices have been rising more or less steadily since last April. For 2009 as a whole, the FHFA home price index rose year-to-year for the first time in three years. As recently as January of 2009 house prices had been projected to decline by as much as 5 percent in 2009 by leading major macro-economic forecasters. Americans held roughly $6.2 trillion in home equity in the third quarter of 2009, up from its lowest point of $5.3 trillion in the first quarter of 2009. The housing market seems to be on the rebound. The OMB budget estimates must not be distorted by ARRA disbursements and need to be adjusted to reflect HUD budget requests.

Table 23: General Services Administration Recovery Act Spending 2008-2012 (in millions)

	2007	2008	2009	2010	2011	2012
General Services Administration OMB	27	343	319	1,782	2,279	2,170
% Change	12.5%	1,170%	-6.9%	4,586%	27.9%	-4.8%

Source: GSA. 2009 Agency Financial Report. A Legacy of Service, a Pursuit of Excellence. November 12, 2009

GSA was created by the U.S. Federal Property and Administrative Services Act of 1949, as amended. GSA is a federal agency of about 13,000 people, an annual budget of approximately $16 billion and about $30 billion in federal assets. Usually GSA earns 96 percent of revenues from other federal customers. In FY 2009, GSA was appropriated approximately $5.9 billion under the Recovery Act. The majority of these funds ($5.6 billion) will be used to convert federal buildings into high performance green buildings and to build new energy-efficient federal buildings, courthouses and land ports of entry. By the end of FY 2009, $1.4 billion of the $5.6 billion was obligated.

Table 24: Small Business Administration Budget 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Small Business Administration OMB	528	2,246	5,978	1,388	1,112
SBA Budget Request		2,127	5,598	1,228	1.112

Source: SBA. President’s Proposed FY 2011 Budget for SBA

The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA guarantees a portion of 7(a) loans made and administered by commercial lending institutions. The 504 program, provides long-term, fixed rate financing for major assets such as real estate and heavy equipment. The Microloan Program provides small (up to $35,000) short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. SBA’s Small Business Investment Company program provides venture capital to small firms. The SBA is the smallest of the federal credit agencies. Its budget for FY 2009 was $12.3 billion, with $4.9 billion for budgetary resources and $7.4 billion for loan financing (non-budgetary). As of September 30, 2009, the SBA had guaranteed $62.2 billion of loan principal, up 0.8 percent from the $61.7 billion guaranteed as of September 30, 2008. At the end of FY 2009, the total outstanding balance of SBA’s total loan portfolio was $90.5 billion, an increase of 2.7 percent above FY 2008. SBA’s portfolio has increased 70 percent since FY 2001. The Recovery Act included $730 million for the SBA. SBA is an ideal investment for the economic situation, it is okay for this budget to increase. In the future the General Fund of the Treasury should see returns on this investment in the Historical Tables of OMB.

Table 25: National Aeronautics and Space Administration and National Science Foundation Spending 2009-2012 (in millions)

	2009	2010	2011	2012
NASA OMB	19,168	19,123	17,863	18,953
NASA Budget Request	18,784	18,724	19,000	19,570
Discrepancy	384	-399	-1,137	-617
National Science Foundation OMB	5,958	7,819	7,647	7,558
National Science Foundation Budget Request	6,872	7,424	7,500	7,725
Discrepancy	-947	223	58	-168

Source: NASA. FY 2011 Budget Estimates; NSF. FY 2011 Budget Request to Congress, February 1, 2010

The National Aeronautics and Space Administration (NASA) drives advances in science, technology, and exploration to enhance knowledge, education, innovation, economic vitality, stewardship of the Earth, and solutions to national and global challenges. It was created in 1958. The President’s Budget invests an additional $6 billion in NASA over the next five years – an overall $100 billion commitment to the agency – bringing annual appropriations over the $20 billion mark, for good. NASA’s Constellation Program aiming to send men back to the moon was cancelled. Created in the National Science Foundation Act of 1950 (Public Law 81-507) NSFs mission is to promote the progress of science; to advance the national health, prosperity, and welfare; and to secure the national defense. NSF should not need to fight to keep out of the 6’s. It is unfortunate the entire budget had to become so mathematically deviant to spare the NSF. There is little reason to adjust either NASA or the NSF budget, both should stay on a path of sustainable growth in the vicinity of 3%.

Table 26: Department of Transportation Spending 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Transportation OMB	64,944	73,004	90,944	86,665	82,817
Transportation Budget Request ARRA fund spread		73,004	90,944	86,578
Transportation Budget Request ARRA fund 2009		112,344	78,428	79,176
Savings		-39,340	12,516	7,402
Transportation ARRA + 3% growth	64,944	112,344	68,899	70,966	73,095
Savings		-39,340	22,045	15,699	9,722

Source: DOT. FY 2011 Budget Highlights. February 1, 2010

The Department of Transportation was established by an act of Congress on October 15, 1966. The Department’s first official day of operation was April 1, 1967. The mission of the Department is to serve the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future. The Department of Transportation employs over 57,000 people. Out of the $48.1 billion provided to the Department of Transportation, under ARRA, $34.6 billion (approximately 72 percent) has been obligated and nearly $8.8 billion has been outlayed. For the sake of balancing the budget it is better that ARRA funds be accounted for in 2009 when they were appropriated. Taking into consideration the extremely large amount of capital that injected into DOT in 2009 under ARRA growth must be limited, 3% annually should both offset inflation and not undermine Recovery Act investments in clean energy. Also taking into consideration the fact Secretary LaRood and Obama hail from the same state, it is not unreasonable that budget reductions would be enforced to sustain a reasonable rate of growth. More auditing is recommended whereas the ARRA investment was so large, unspent funds may need to be returned to avoid the financial instability of budget reductions.

Table 27: Environmental Protection Agency Spending 2008-2012 (in millions)

	2008	2009	2010	2011	2012
Environmental Protection Agency OMB	7,939	8,070	11,301	11,177	9,980
% Change	-3.9%	1.7%	40.4%	-1.1%	-10.7%
EPA Budget Request	7,500	7,600	10,300	10,000
Savings		470	1,001	1,177
3% growth from 2004					9,624
Savings					346

Source: EPA. FY 2011 Budget in Brief. February 24, 2010

In July of 1970, the White House and Congress worked together to establish the Environmental Protection Agency (EPA) in response to the growing public demand for cleaner water, air and land. The EPA employs more than 17,000 full time employees. Not only does OMB consistently over-report EPA budgetary costs but the EPA underwent funding cuts during the second term of the Bush Administration that need to be offset to restore EPA to full function. The EPA should not be begrudges their spending increases in 2010 and 2011 that are largely invested in infrastructure. Determining at what level to begin financially stable growth is however difficult. In 2004 funding reached $8.4 billion before being cut to $7.6 billion, when the Bush administration broke with the Kyoto Protocol and environmentalists fell out of favor. Presuming a 3% annual growth from 2004, after a brief Recovery Act apology yields a budget of $9.6 billion in 2012 from whence steady growth of 3% annually can be projected.

Table 28: Department of Energy Budget 2009-2012 (in million)

	2009	2010	2011	2012
OMB Energy Budget	23,683	38,278	44,390	34,792
Department Request	33,856	26,525	28,400	30,311
Savings		11,753	15,990	4,481
Recovery Act	36,725

Source: DOE. FY 2011 Budget Request to Congress

The Department of Energy was activated on October 1, 1977 after decades under the Atomic Energy Act of 1946. The Department of Energy’s Fiscal Year (FY) 2011 budget request of $28.4 billion, is a 6.8 percent or $1.8 billion increase from FY 2010. The FY 2011 budget builds on the $36.7 billion in Recovery Act funding. By the end of FY 2010, the Department expects to obligate 100 percent and outlay roughly 35-40 percent of Recovery Act funds. In developing the FY 2011 budget request, the Department has taken these investments into account. Recovery Act investments in energy conservation and renewable energy sources ($16.8 billion), environmental management ($6 billion), loan guarantees for renewable energy and electric power transmission projects ($4 billion), grid modernization ($4.5 billion), carbon capture and sequestration ($3.4 billion), basic science research ($1.6 billion), and the establishment of the Advanced Research Projects Agency - Energy ($0.4 billion) will continue to strengthen the economy by providing much-needed investment, by saving or creating tens of thousands of direct jobs, cutting carbon emissions, and reducing U.S. dependence on foreign oil. OMB definitely needs to account for DOE budget requests to reduce the deficit and attribute Recovery Act costs to 2009 for a total of $70.6 billion in 2009. Whereas Energy is a priority during this age of global climate change we won’t begrudge DOE their 6.8% annual growth although the Recovery Act does compromise it. Using DOE budget request figures reduces the deficit $11.8 billion in 2010, $15.9 billion in 2011 and $4.5 billion in 2012. DOE should definitely take responsibility for the Low Income Energy Assistance Program in order to keep it rational and provide incentive for DOE to keep energy prices under control, and justify their enormous increases in appropriations. OMB needs to transfer the Low Income Home Energy Assistance Act of 1981, $5,100,000,000 in FY 2009 and 2010 and $3.3 billion in 2012 spending $4.5 billion in 2009, $4.9 billion in 2010 and $3.6 billion in 2011 to the Department of Energy.

Table 29: Office of Personnel Management Budget Appropriations 2008-2012 (in millions)

	2007	2008	2009	2010	2011	2012
Office of Personnel Management OMB	58,431	64,393	72,302	71,603	73,463	75,956
OPM Budget Request		40,138	41,158	42,200	44,000	46,000
Savings		24,255	31,114	29,403	29, 463	29,956

Source: OPM. FY 2009 Agency Financial Report. November 16, 2009. Pg. 51

The U.S. Office of Personnel Management is an independent agency of the U.S. government, established by President James Carter's executive order in 1978. OPM is responsible for recruiting, hiring, and setting benefits policies for 1.9 million Federal civilian employees. OPM’s mission is to ensure the Federal Government has an effective and efficient civilian workforce. OPM administers the retirement program for the Federal Government and its employees. The program is massive in scale and complexity, supporting over 2.5 million annuitants and managing the Federal retirement and disability trust fund, with over $764 billion in assets, including $20 billion in mandatory payments. From the $199.6 billion in budgetary resources OPM had available during FY 2009, it incurred obligations of $150.3 billion less the $31.4 billion transferred from the Treasury’s General Fund for benefits for participants in the Retirement, Health Benefits and Life Insurance Programs. OPM has not produced an FY 2011 Budget Request. OPM budgetary requests are confusing, contradictory and inadequate; they do however agree that OPM receives around $40 billion in budget appropriations and most of their funding comes from payroll deductions from 1.9 million federal workers with an estimated $1.4 trillion in retirement liabilities outstanding. Savings to the federal budget from this discovery are estimated at $24 billion in 2008, $31 billion in 2009, $29 billion in 2010 and 2011. OPM really needs to get a working balance sheet. This audit reveals OMB to be over-reporting OPM costs by more than 50%. OMB should pay closer attention to this account that did not publicly show up for the FY 2011 Budget Request, OPM needs internal controls for OMB budgetary figures. OMB is dramatically over-reporting budgetary costs and must reduce them, Congress may need to shore up retirement benefits.

Table 30: Department of Education Spending 2009-2012 (in billions)

	2009	2010	2011	2012
OMB Education Budget	53.4	106.9	94.3	85.2
ED Budget Summary	137.6	59.2	77.8	80
Savings	-84.2	47.7	16.5	5.2
Discretionary	45.4	46.2	49.7
Pell Grants(Mandatory since 2010)	36.5	27.0	34.9
Other Mandatory	-25.4	-14.0	-6.8

Source: ED. FY 2011 Budget Summary February 1, 2010

The U.S. Department of Education was created in the Education Reorganization Act of 1980 from the Department of Health, Education and Welfare, ED is the agency of the federal government that establishes policy for, administers, and coordinates most federal assistance to education. The American Recovery and Reinvestment Act of 2009 (ARRA) delivered nearly $100 billion to States and school districts to help address budget shortfalls and meet the needs of schools and students in the midst of the most severe financial crisis and economic recession since the Great Depression. This funding helped save or create an estimated 400,000 jobs, including 325,000 education jobs. The Department acted swiftly to provide a large portion of these funds to States in response to drastic budget shortfalls. As of December 31, 2009, the Department had awarded over $69.3 billion to States or 71 percent of its total ARRA funds. The ED budget has a history of leaps and bounds, rising from $46 billion in 2002 to $73 billion in 2005 and then to $93 billion in 2006 before dropping to $66 billion in 2006 and 2007 and to $53 billion in 2009, according to OMB. States are generally obligated to spend 50% of their budgets on education. When states fall short the federal government disburses funds to keep the teachers employed. Whereas the funds have already been appropriated and mostly disbursed it seems wiser, at least better for the budget, to follow the accounting of ED, so that the $100 billion Recovery Act is allocated to FY 2009, so as not to disturb future budgeting. Were ED budget estimates adhered to the $59.2 billion budget in 2010 would yield $47.7 billion in savings, the $77.8 billion in 2011 would yield $16.5 billion in savings.

IV. Concluding Remarks

Table 31: Savings to the Deficit Accrued by Imposing Agency Spending Limits 2009-2012 (in millions)

Legislative Branch	4,702	4,702	5,423	4,294	5,579	4,294	5,292	4,294
Judicial Branch	6,645	6,645	7,159	6,711	7,512	6,777	7,351	6,845
Executive Office of the President	742	742	715	715	501	501	427	427
Agriculture	114,440	100,334	142,016	89,689	145,748	100,452	137,917	105,474
Interior	11,775	11,371	12,042	12,216	14,045	12,177	12,803	12,000
Environmental Protection Agency	8,070	7,600	11,301	10,300	11,177	10,000	9,980	9,624
Energy	23,683	70,581	38,278	26,525	44,390	28,400	34,792	30,311
Commerce	10,718	10,718	16,714	16,714	11,500	8,400	10,430	8,600
Education	53,400	137,600	106,900	59,200	94,300	77,800	85,200	80,000
State	21,472	15,826	25,726	17,613	28,754	16,400	30,065	16,500
International Assistance	14,794	34,308	23,899	35,441	24,343	36,400	28,223	38,500
Homeland Security	51,725	51,725	52,903	52,903	54,723	54,723	46,847	46,847
Housing and Urban Development	61,019	61,811	62,518	49,347	53,082	48,913	48,153	48,153
Transportation	73,004	112,344	90,944	68,899	86,665	70,966	82,817	73,095
Office of Personnel Management	72,302	41,158	71,603	42,200	73,463	44,000	75,956	46,000
General Services Administration	319	319	1,782	1,782	2,279	2,279	2,170	2,170
National Aeronautics and Space Administration	19,168	18,784	19,123	18,724	17,863	19,000	18,953	19,570
National Science Foundation	5,958	6,872	7,819	7,424	7,647	7,500	7,558	7,725
Small Business Administration	2,246	2,127	5,978	5,598	1,388	1,228	1,112	1,112
Justice	27,711	27,711	30,333	23,816	31,924	24,054	33,700	24,295
Labor	138,157	142,503	209,265	162,003	116,902	79,982	90,790	70,000
Treasury	701,775	896,972	502,980	400,472	593,550	560,863	685,279	600,000
Veterans Affairs	95,457	97,000	124,565	111,035	124,215	121,604	122,369	125,252
Defense- Civil	57,276	0	54,317	0	55,719	0	56,457	0
Civil – Corps of Engineers	6,842	5,242	10,536	10,189	6,929	5,438	5,879	5,500
Defense – Military	636,775	464,775	692,031	497,031	721,285	508,000	653,424	400,000
Health and Human Services	796,267	858,953	868,762	735,902	934,426	754,299	911,291	773,157
Social Security Administration (on-budget)	78,657	78,657	85,108	85,108	80,933	80,933	77,304	77,304
Social Security Administration (off-budget)	648,892	683,000	683,867	709,000	708,620	735,000	738,430	773,000
Other Independent Agencies (on-budget)	47,636	47,635	2,001	2,001	31,832	31,832	26,928	26,928
Other Independent Agencies (off-budget)	304	304	6,426	6,426	4,226	4,226	-13	-13
Allowances	-4	-4	18,750	18,750	21,676	21,676	-4,187	-4,187
Undistributed Offsetting Receipts	-274,193	-274,193	-271,127	-271,127	-283,287	-283,287	-288,823	-288,823
Total Outlays	3,517,734	3,724,122	3,720,657	3,016,901	3,833,909	3,194,830	3,754,874	3,139,660
Total Receipts	2,105,000	2,105,000	2,165,000	2,165,000	2,567,000	2,567,000	2,926,000	2,926,000
Total Deficit	-1,412,734	-1,619,122	-1,555,657	-851,901	-1,266,909	-627,830	-828,874	-213,660
% GDP	9.8%	11.3%	10.6%	5.8%	8.2%	4.1%	4.9%	1.2%

Source: OMB Historical Budget Table 4.1 Outlays by Agency 1962-2015

Spending limits cut the federal deficit in half. Whereas the cost of ARRA has already wreaked its havoc on the economy there is no reason to foist it upon further years. Federal agencies must not capitalize upon the spending increase to dramatically increase their budgetary appropriations, reasonable growth of 1-5% from 2008, before ARRA, must be recalculated in many cases the agency did not do so on their own. Tabulating the entire cost of ARRA in FY 2009 did increase the FY 2009 deficit from $1.4 trillion to $1.6 trillion, 9.8% of GDP to 11.3% of GDP. In FY 2010 the $1.5 trillion deficit, 10.6% of GDP, can be reduced to $852 billion, 5.8% of GDP. There is however hope for FY 2011, as the result of an estimated >$200 billion in TARP funds that will be returned to the General Fund of the Treasury on October 3, 2010, at the beginning of FY 2011, the FY 2011 deficit can be brought within 3% of GDP. The spending limits set in this document would bring the deficit down from $1.3 trillion, 8.2% of GDP, to $628 billion, 3.9% of GDP, less $200 billion results in a deficit of $428 billion, a number once thought to be alarming, now a relieving, 2.8% of GDP. Even without expecting the return of any TARP funds, that will be trickling back into the General Fund for more than a decade, with spending limits the budget will be reduced from $829 billion, 4.9% of GDP to an acceptable $214 billion, 1.2% of GDP in FY 2012. The federal government will be able to purchase all of its debt. To achieve a surplus, as must be our goal, more revenues will be needed.

Table 32: Impact of FY 2011 Revenue Proposals 2010-2020 (in millions)

	2010	2011	2012	2011-2020
Temporary Measures	-28,812	-53,319	-19,597	-47,501
Tax Cuts for Individuals and Families	0	-1,736	-13,083	-143,437
Tax Cuts for Business	0	-5,623	-6,195	-93,485
Extending Expiring Provisions 2011	-8,867	-21,539	-11,926	-46,677
Too Big to Fail Fee	52	8,189	8,256	93,282
Reinstate Superfund Taxes	0	1,203	1,608	18,925
Unemployment Surtax	0	0	1,458	14,196
Repeal LIFO Inventory Accounting	0	0	2,667	59,085
U.S. International Tax System	246	6,869	11,878	122,189
Insurance Reform	0	196	558	14,413
Eliminate Fossil Fuel Preferences	10	2,754	4,323	38,819
Tax Carried Profits as Ordinary Income	0	1,452	3,289	23,977
Modify Bio-fuel Credit	784	6,569	8,058	23,987
Repeal Lower-of-cost-or-market Accounting.	0	0	286	7,494
Expand Information Reporting	0	326	1,029	13,800
Improve Business Compliance	0	15	220	7,414
Strengthen Tax Administration	1	29	87	4,379
Expand Penalties	1	371	1,338	25,629
Modify Estate and Gift Discounts	40	816	1,630	23,729
Upper Income Tax Provisions	1,344	41,410	62,461	969,467
Other Initiatives	0	-167	-188	-3,746
Total Effect of Proposals	-38,315	-12,389	57,188	1,103,250
Repeal Make Work Pay Extension 2011	0	30,132	31,075	61,207
Repeal Information Reporting	0	-326	-1,029	-13,800	Revised 10 yr.
Revised Revenue Proposal Totals	0	29,806	30,046	47,407	1,150,657

Source: Treasury Department. General Explanations of the Administration’s FY 2011 Revenue Proposals. February 2010. pg. 150

Under current law, the 2001 and 2003 tax cuts nearly all expire in 2011, returning the individual income tax to its pre-2001 level (except for a few permanent changes). In defining the baseline for his budget, the president assumes that, rather than ending in 2011, the tax cuts will become permanent. From that baseline, he would increase taxes in 2011 for those taxpayers, in the top two tax rates would rise back to their pre-2001 levels, from 33% to 36% for the second bracket and 39.6% in the highest bracket. The president proposes limiting the value of deductions to no more than 28 percent starting in 2011. The President must not seek to renew the ARRA Make Work Pay tax credit of $400 or $800 in 2011 and 2012. The $61 billion cost of the deficit incurred thereby upon the market economy will cost many workers their entire jobs, for a marginal return tarnished by the communist dependency to subsidies that leveraged the fascist TARP fund, in the first place. Stimulus spending is suppose to be targeted and temporary. Other tax credits are more targeted to strengthen the family values, promote small business. Temporary COBRA credits are important to allow temporarily unemployed people not to lose the value of years of health insurance premiums. The revenue proposals are more uplifting, promising to reverse three decades of rising income inequality to 1990s levels. Highlights are a financial crisis responsibility fee on large financial firms raising $93 billion over 10 years, reinstatement of the Superfund excise taxes $19 billion over 10 years, reform US international tax system $122 billion over 10 years from overseas corporations, reform insurance company treatment $14 billion over ten years, eliminate oil and gas preferences $36 billion, eliminate coal preferences $39 billion, the questionably invasive information reporting $14 billion over 10 years, improve business compliance $7 billion over 10 years, strengthen tax administration $4 billion over ten years, expand penalties $25 billion over ten years, close loopholes in estates and gifts $24 billion over 10 years and upper income tax provisions $969 billion over ten years. As the result of the Making Work Pay credit this tax proposal resulted in $38 billion deficit in 2010 a $12 billion deficit in 2011 before turning a $57 billion profit in 2012, rising to $107 billion in 2013 and steadily to a high of $154 billion in 2014, earning $396 billion 2011-2015 and $1.1 trillion 2011-2020. This is a good start on tax reform, the President is headed in the right direction, but more needs to be done taxing the super-rich at 1960 levels, 77%, or more reasonably all income over $1 million could be taxed at 50%.

Table 33: Impact of Universal Health Insurance Options on the Budget 2011-2020 (in billions)

	2011	2012	2013	2014	2015	2020	2011-2020
Social Proposal Outlays	-75	-80	-90	-100	-110	-150	-1,105
No Health Ins. Deduction Tax Receipts	688	709	730	752	774	890	7,813
NHI Added Government Health Costs	-1,412	-1,454	-1,498	-1,543	-1,589	-1,827	-16,037
NHI Health Insurance Assets (est.)	4,000	2,188	743	0	0	0	4,000
NHI Private Insurance Golden Parachute	-400
NHI Medicare Tax Revenues	547	585	623	1,452	2,269	2,609	17,671
NHI Medicare Tax Rate	2.9%	2.9%	2.9%	6.5%	9.6%	9.6%	2.9% - 9.6%
Impact on the Budget	688	709	-25	-791	-815	-937	-4,224

Source: HA. National Health Insurance: Immediately Achievement of Single Payer April 28, 2008

The social universal health insurance plan proposed by American Health Insurance Programs (AHIP) and Democratic Party would cost $75 to $150 billion annually over the next decade. It is not practical to implement a new health insurance program until such a time when the deficit would be less than 3%. The Democratic Party health care agenda must be censured, they are torturing the economy. Nationalizing health insurance to create a national health services might be beneficial while the economy is in a recession and budget in a deficit because for several years the federal government could finance the extra health care costs by nationalizing an estimated $4 trillion in health insurance company assets and in this recovery window of two years, the federal government would be collecting former health insurance premium deductibles as revenues without having to finance the added cost of health insurance from these revenues, while the people would neither have to pay for health insurance premiums nor a Medicare tax increase, theoretically, the economy would flourish, and only one to two million former health insurance workers and administrators with golden parachutes would be out of work. These funds would however soon run out, if they could be easily liquidated in the first place, and the Medicare premium would have to rise dramatically, because the federal share of health care costs would triple and new revenues would not cover half of the increase. Although a longer transition could be planned it is estimated that the ultimate Medicare tax rate would have to be around 9.6%. Exemptions could be given to lower to middle income workers. The cost of health insurance would be cheaper for all but the richest, but it would be a mandatory tax. Health care professionals would be salaried government workers, the government would purchase supplies, patient medical records would not be used to get reimbursements, health prices and wages would be much easier to control, administration more simple, health care would be totally free. In my opinion the government cannot afford the Democratic option at this time and a national health service might be more than the Democratic and Republican (DR) party can afford in the long run. Congress should probably wait until 2012 to enact a universal health insurance option keeping in mind a national health service.

Table 34: Effects of Spending Limit, Revenue and Health Measures 2009-2012 (in millions)

	2009	2009 s	2010	2010 s	2011	2011 s	2012	2012 s
Effect of Agency Spending Limits
Total Outlays	3,517,734	3,724,122	3,720,657	3,016,901	3,833,909	3,194,830	3,754,874	3,139,660
Total Receipts	2,105,000	2,105,000	2,165,000	2,165,000	2,567,000	2,567,000	2,926,000	2,926,000
Total Deficit	-1,412,734	-1,619,122	-1,555,657	-851,901	-1,266,909	-627,830	-828,874	-213,660
% GDP	9.8%	11.3%	10.6%	5.8%	8.2%	4.1%	5.1%	1.2%
Total Public Debt	11,876,000	12,082,000	13,787,000	13,289,000	15,144,000	14,008,000	16,336,000	14,584,000
% GDP	83.4%	84.7%	94.3%	90.9%	99.0%	91.6%	100.8%	90.0%
Effect TARP Termination	NA	NA	NA	NA	200,000	200,000	NA	NA
TARP Termination Effect on Deficit	NA	NA	NA	NA	-1,066,909	-427,830	NA	NA
% GDP	NA	NA	NA	NA	6.9%	2.8%	NA	NA
TARP Termination Effect on Debt	NA	NA	NA	NA	14,944,000	13,808,000	16,136,000	14,384,000
% GDP	NA	NA	NA	NA	97.6%	90.3%	99.6%	88.7%
Effect of Revenue Provisions + TARP
No on Make Work Pay Extension	NA	NA	NA	NA	30,132	30,132	31,075	31,075
No on Information Reporting Tax	NA	NA	NA	NA	-326	-326	-1,029	-1,029
Total Effect of Revenue Provisions	NA	NA	NA	NA	29,806	29,806	30,046	30,046
Revenue Provision Effect on Total Deficit	NA	NA	NA	NA	-1,036,000	-398,000	-799,000	-184,000
% GDP	NA	NA	NA	NA	6.7%	2.6%	4.9%	1.1%
Revenue Provision Effect on Public Debt	NA	NA	NA	NA	14,914,000	13,778,000	16,106,000	14,354,000
% GDP	NA	NA	NA	NA	97.5%	90.1%	99.4%	88.6%
Effect of Health Care Proposals + TARP + Rev.
Social Health Insurance Plan	NA	NA	NA	NA	-75,000	-75,000	-80,000	-80,000
Effect of Social Health on Deficit	NA	NA	NA	NA	-1,111	-473,000	-909,000	-294
% GDP	NA	NA	NA	NA	7.2%	3.1%	5.6%	1.8%
Total Effect of Social Health on Debt	NA	NA	NA	NA	14,989,000	13,833,000	16,186,000	14,434,000
% GDP	NA	NA	NA	NA	97.9%	90.5%	99.9%	89.1%
National Health Service	NA	NA	NA	NA	688,000	688,000	709,000	709,000
Effect of NHI on Deficit	NA	NA	NA	NA	-379,000	+261,000	-119,000	+495,000
% GDP					2.5%	+ 1.7%	0.7%	+ 3.1%
Effect NHI on Debt	NA	NA	NA	NA	14,256,000	13,120,000	15,427,000	13,875,000
% GDP	NA	NA	NA	NA	93.2%	85.8%	95.2%	85.6%

Source: Tables: 2, 5 and 33 15,299; 16,203

As you can see there is hope for a balanced budget. The agencies federal government must however unite under these spending limits. If the spending limits are upheld government performance will yield results, with the return of TARP funds the federal government enjoys the satisfaction of a less than 3% of GDP deficit FY 2011. TARP also spares the federal government the ignominy of a public debt that exceeds 100% of GDP as soon as FY 2012. However, unless spending is restrained even with the return of TARP revenues the public debt will exceed 100% of GDP in FY 2013. With the fiscal discipline of these carefully crafted spending limits and TARP the debt starts to decline as a percentage of GDP in FY 2011 instead of having to wait for FY 2012. As Presidents Johnson and Reagan found if the deficit is a smaller percentage of GDP than economic growth the public debt declines as a percentage of GDP but as Clinton found out even in surplus years the federal government accumulates debt off-budget. For their part Congress must not renew the Make Work Pay tax credit whereas it is imprecise, proven ineffective and better off terminated and also repeal the proposed invasive information reporting tax from the President’s tax proposal because it is the same spy who popped the housing bubble, but pass the rest. Social health insurance of the 111^th Congress threatens to aggravate existing fiscal problems and certainly aggravates Adam Smith’s invisible hand, the Democrats must be censured until it can be afforded with under a 3% deficit, not until FY 2012. If the federal government takes the bold step of nationalizing health insurance the government and people can enjoy a surplus in FY 2011-14, before they are left with a higher tax rate but more efficient and ethical health system and a much freer economy that could be afforded if the federal government were to tax incomes over $1 million at 50%, returning to the progressive tax system of the post-war years, but that is for another day, when the federal government, like an SSA that pays the poor because they are poor, is worth their money.

For the President to take control of the federal budget from the blackmail of his predecessor’s money laundry he must recuse the Vice President, Social Security Commissioner and most importantly Secretary of Defense, and Fed Chairman under 18 USC (11) §203, §205, §207 & §214 respectively, and renounce all forms of extortion, violence, coercion and infringement, to master the political economy of the Democratic and Republican (DR) party. The President must be an idealist and not be blackmailed by the propaganda pertaining to that great Scotsman Keynes, who was not a pillager, is not synonymous with deficit spending, and in fact condemned subsidies, he must also eschew the dangerous propaganda regarding toxic assets, liabilities, and other irrelevant warshipping of health theology, for whereas the government must side with the writer and not the fighter, the government must not pervert Adam Smith’s invisible hand of price controls with bioterrorist population controls. Friedman, a great capitalist proponent of individual self-interest for mutual benefit, warned, “Experience should teach us to be most on our guard to protect liberty when the government’s purposes are beneficial” this is never more true than in regards to the snake oil salesmen of health insurance. But, as Samuel Smiles said, “Where there is a will, there is way”, the federal budget is no exception, although one might append, “where there is an ill will, the government pays”. With a will to balance the budget, the deficit can be brought under control, through agency spending limits alone. If the administration is true to liberal economic theory accounted for in this work, rather than the social liberal propaganda, when the war is terminated in 2012 the deficit will be less than 3% and economic performance will be guaranteed, otherwise is not to be wise.

Balancing the budget must unite the efforts of the federal government. The deficit is a burden on the economy and it is at an all time high, both as a number and as a percentage of the GDP. War and deficit spending are the problem, money laundering, fraud and persecution are not the answer, maintaining the status quo of corruption and conflict of interest will not get us anywhere. The insipid political remedies we see on a daily basis in the new are insufficient and ultimately counterproductive. The federal government must take bold measures to reduce the deficit and achieve balance. This is no easy task, but over the course of this shortest month of the year, I have managed to do exactly that, balance the budget. The federal government must not continue to throw my cure in the trash, where the effectiveness of the cure is reduced to 50% of the damages of their snake oil, 500% more than if none of us had ever been born. The President must relearn his idealism, cease the hostilities he embarked upon to prove to his enemies that he is not an idealist, put aside our differences and our prejudices and most of all our propaganda and work together as self-interested individuals petitioning a self-interested government to achieve the mutually beneficial common goal of balanced federal budget. Because this budget is balanced, as the administration and legislature failed to do, the federal government must concede their victory and grant full faith and credit to this Statement - the federal government must purchase these rights for $1,000 to demonstrate their cognizance, the Treasury can easily earn their money back by charging agencies a $100 compliance fee.

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Bibliography

Laws

Amended United States Constitution HA-26-7-09

American Recovery and Reinvestment Act (ARRA) P.L. 111-5 February 17, 2009

Bribery, Graft and Conflicts of Interest 18 USC Chapter 11 Compensation to Members of Congress, officers and others in matters affecting Government §203, Activities of officers and employees in claims against and other matters affecting the Government §205, Restrictions on former officers, employees, and elected officials of the executive and legislative branches §207 & Offer for procurement of Federal Reserve bank loan and discount of commercial paper §214

Children's Health Insurance Program Reauthorization Act of 2009 Public Law 111-3 April 1, 2009

Constitution of Hospitals & Asylums Non Government Economics (CHANGE) Monkey Day 2009

Emergency Economic Stabilization Act (EESA) HR 1424 October 3, 2008

Housing and Economic Recovery Act (HERA) of 2008 P.L. 110-289 July 30, 2008

Recovery Rebates and Economic Stimulus for the American People Act of 2008 P.L. 110-185 February 13, 2008

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Barofsky, Neil M. Special Inspector General, Troubled Asset Relief Program. Quarterly Report to Congress. January 10, 2010

Bement, Arden L. Director, National Science Foundation. FY 2011 Budget Request to Congress. February 1, 2010

Berry, John. Director Office of Personnel Management. FY 2009 Agency Financial Report. November 16, 2009

Bolden, Charles. Administrator, National Aeronautics and Space Administration. FY 2011 Budget Estimates

Bureau of Labor Statistics. Regional and State Employment and Unemployment Summary. January 10, 2010

Chu, Steven, Secretary, Department of Energy. FY 2011 Budget Request to Congress

Clinton, Hillary. Secretary, Department of State. Executive Budget Summary. Function 150 and Other International Programs. FY 2011

Donovan, Shaun. Secretary, Department of Housing and Urban Development. FY 2011 Budget. February 1, 2010

Duncan, Arne. Department of Education. FY 2011 Budget Summary. February 1, 2010

Food and Nutrition Services. Supplemental Nutrition Assistance Program (SNAP) Program Data

Gates, Robert. Secretary, Department of Defense. US DoD. FY 2011 Budget Request. February 2010

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Geithner, Timothy F. Secretary, Treasury Department. General Explanations of the Administration’s Fiscal Year 2011 Revenue Proposals. February 2010

Government Publishing Office. Budget of the United States Government. 1996-2011

Holder, Eric. Attorney General, Department of Justice. FY 2011 Budget and Performance Summary. January 29, 2010

Jackson, Lisa P. Administrator, Environmental Protection Agency. FY 2011 Budget in Brief. February 24, 2010

Johnson, Martha N. Administrator General Services Administration. 2009 Agency Financial Report. A Legacy of Service, a Pursuit of Excellence. November 12, 2009

LaHood, Ray. Secretary, Department of Transportation. FY 2011 Budget Highlights. February 1, 2010

Locke, Gary. Secretary, Department of Commerce. Bureau of the Census. Estimated Life Cycle Costs for Reengineering the 2010 Decennial Census Program. September 2005

Mills, Karen G. Administrator, Small Business Administration. President’s Proposed FY 2011 Budget for SBA.

McManus, Steve. Chief Operating Officer, Armed Forces Retirement Home. FY 2009 Performance and Accountability Report. November 16, 2009

Napolitano, Janet. Secretary, Department of Homeland Security. FY 2011 Budget in Brief

Orszag, Peter R. Director, Office of Management and Budget. Executive Office of the President. Historical Tables

Orszag, Peter R. Director, Office of Management and Budget. President’s Budget. Appendix. Detailed Budget Estimated by Agency. FY 2011

Recovery.gov Agency Report U.S. Totals. February 16, 2010

Salazar, Ken. Secretary, Department of Interior. FY 2011 Interior Budget in Brief. January 29, 2010

Sanders, Tony J. Secretary, Hospitals & Asylums. Political Platform 2009-2012. HA-16-2-09

Sebelius, Kathleen. Secretary, Department of Health and Human Services. HHS FY 2011 President’s Budget for HHS. February 1, 2010

Shinseki, Eric K. Secretary, Veterans Affairs. FY 2011 Budget Submission. February 3, 2010

Social Security and Medicare Board of Trustees. Status of Social Security and Medicare Programs: A Summary of the 2009 Annual Reports. May 12, 2009

Solis, Hilda L. Secretary, Department of Labor. FY 2011 Detailed Budget Documentation

Treasury Department. Troubled Asset Relief Program Office of Financial Stability. Agency Financial Report 2009. December 10, 2009

Van Antwerp, Robert L. Commanding General, US Army Corp of Engineers. Program Budget. FY 2011. February 2010

Vilsack, Thomas J. Secretary US Department of Agriculture. 2009 Performance and Accountability Report.

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