Hospitals & Asylums
Federal Budget Balanced to Prevent Debt from
Exceeding 100% of GDP FY 2012 HA-13-7-12
By Anthony J. Sanders
A.
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, and is currently running the
highest deficit in dollar terms in national history, -$1.4 trillion in 2009,
and -$1.3 trillion in 2010, 2011 and 2012 and is projected to improve to -$900
million in 2013. This deficit is the second highest as a percentage of GDP
since WWII and the Confederacy during the Civil War. The gross federal debt is scheduled reach
104.8% in FY2012 and 107.4% in 2013 unless the United States gets serious about
keeping the federal debt less than 100% of GDP.
1.
The vast majority of the deficit is resolved by re-adding agency budgets after
imposing reasonable spending limits, principally 3% annual growth from FY 2008,
if agency spending is high. Using this
method in the aftermath of the stimulus bills the federal budget was easily
brought within 3% of GDP as early as FY 2011 and balanced in FY 2012. Yet the federal government continues to
declare an enormous deficit although they could buy a balanced budget from
Hospitals & Asylums (HA) for $1,000.
The Democratic-Republican (DR) monopoly is completely insolvent -
regressive taxes, stimulus spending and tax relief must cease; waste, fraud and
abuse must be eliminated. Most of the
budget balancing action occurs at the level of agency leadership, some produce
acceptable budgets, others must be replaced by people who do. An annual report explaining how to balance
the budget is required for candidates to navigate the federal government in
health and safety. Forecasters should
balance the federal budget no less frequently than once every four year
Presidential term if they wish to exhibit any economic accuracy to the
press. Projections through 2020 must
focus on balancing the annual budget.
Federal Budget 2008, 2010; 2012 & 2013 Rebalanced (Millions)
2008 |
2010 |
2012 |
2012 pro |
2013 |
2013 pro |
|
GDP billion |
14,334.4 |
14,359.7 |
15,601.5 |
15,601.5 |
16,335.0 |
16,335.0 |
Total Outlays |
2,982,544 |
3,456,213 |
3,795,547 |
3,205,300 |
3,803,364 |
3,308,600 |
Total Receipts |
2,523,991 |
2,162,724 |
2,468,599 |
2,793,599 |
2,901,956 |
2,901,956 |
Total Deficit |
-458,553 |
-1,293,489 |
-1,326,948 |
-411,700 |
-901,408 |
-406,700 |
% GDP |
-3.2% |
-9.0% |
-8.5% |
2.6% |
-5.5% |
2.5% |
Gross Federal Debt billion |
9,986 |
13,528.8, 2011 14,764.2 |
16,350.8 |
15,175.7 |
17,548 |
15,582 |
% GDP |
69.7% |
94.2% |
104.8% |
97.3% |
107.4% |
95.4% |
Legislative Branch |
4,447 |
4,893 |
4,538 |
4,538 |
4,789 |
4,789 |
Judicial Branch |
6,518 |
7,214 |
7,258 |
7,258 |
7,502 |
7,502 |
Executive Office of the
President |
289 |
432 |
385 |
385 |
392 |
392 |
Agriculture |
92,950 |
130,983 |
147,545 |
147,545 |
154,667 |
154,677 |
Interior |
10,556 |
12,843 |
11,598 |
11,598 |
11,357 |
11,357 |
Environmental Protection
Agency |
7,393 |
10,165 |
8,313 |
8,313 |
8,138 |
8,138 |
Energy |
22,739 |
23,026 |
22,843 |
22,843 |
32,300 |
32,300 |
Commerce |
9,585 |
13,679 |
7,995 |
7,995 |
9,239 |
9,239 |
Education |
65,399 |
62,911 |
116,613 |
73,248 |
55,685 |
75,209 |
State |
23,124 |
30,285 |
30,139 |
30,139 |
31,608 |
31,608 |
International Assistance |
24,008 |
28,127 |
30,487 |
30,487 |
37,399 |
37,399 |
Homeland Security |
50,624 |
45,423 |
47,677 |
47,677 |
45,109 |
45,109 |
Housing and Urban Development |
50,930 |
45,075 |
55,901 |
55,901 |
44,010 |
44,010 |
Transportation |
67,974 |
84,342 |
122,594 |
76,160 |
74,280 |
78,440 |
Office of Personnel
Management |
65,951 |
72,434 |
90,744 |
73,865 |
94,857 |
75,844 |
General Services
Administration |
340 |
261 |
-1,040 |
-1,040 |
-840 |
-840 |
National Aeronautics and
Space Administration |
17,209 |
18,719 |
17,751 |
17,751 |
17,693 |
17,693 |
National Science Foundation |
6,197 |
6,963 |
7,130 |
7,130 |
7,470 |
7,470 |
Small Business Administration
|
1,317 |
6,472 |
2,715 |
2,715 |
1,111 |
1,111 |
Justice |
26,354 |
30,171 |
35,442 |
35,442 |
30,023 |
30,023 |
Labor |
57,973 |
179,228 |
138,389 |
55,000 |
88,993 |
58,000 |
Treasury |
751,174 |
392,169 |
523,679 |
523,679 |
519,490 |
519,490 |
Veterans Affairs |
88,401 |
124,305 |
124,181 |
124,181 |
137,381 |
137,381 |
Defense- Civil (Veterans Off-budget) |
45,430 |
54,786 |
55,524 |
55,524 |
57,416 |
57,416 |
Civil – Corps of Engineers |
9,093 |
5,665 |
6,659 |
6,659 |
4,668 |
4,668 |
Defense – Military |
674,694 |
695,646 |
650,482 |
500,000 |
620,259 |
500,000 |
Health and Human Services
(on-budget) |
700,010 |
889,625 |
888,846 |
824,000 |
921,605 |
845,000 |
Social Security
Administration (on-budget) |
58,500 |
70,198 |
188,749 |
167,100 |
116,657 |
66,000 or 13,700 if SSI paid by SSA |
Social Security
Administration (off-budget) |
601,826 |
683,908 |
641,135 |
733,900 |
768,658 |
870,700 |
Other Independent Agencies
(on-budget) |
31,701 |
17,855 |
39,103 |
39,103 |
29,264 |
29,264 |
Other Independent Agencies
(off-budget) |
9,677 |
4,700 |
1,742 |
1,742 |
n/a |
n/a |
Allowances |
|
18,750 |
500 |
500 |
5,488 |
5,488 |
Undistributed Offsetting
Receipts |
-277,791 |
-267,886 |
-279,289 |
-279,289 |
-269,592 |
-269,592 |
Source:
Sanders, Tony J. Federal Budget in Balance FY 2011: Comparison of Bush and
Obama HA-28-2-10 as
updated by OMB 7/12/12 Historical Table 1.1 Summary of Receipts, Outlays and
Surpluses or Deficits; Table 1.2 As Percent of GDP 1930-2017; Table 5.2 Budget
Authority By Agency 1976-2017; Table 7.1 Federal Debt at End of Year 1940-2017
B. Spending limits for FY2012.
1.The Department of Labor (DOL) and Office of Personnel
Management (OPM) need to be adjusted to reduce the deficit by $100 billion in
FY 2012 and $50 billion in FY 2013.
OMB Labor and OPM Errata 2008,
2010; 2012 & 2013 Adjusted
|
2008 |
2010 |
2012 |
2012 pro |
2013 |
2013 pro |
Total Labor Department |
57,973 |
179,228 |
138,389 |
55,000 |
88,993 |
58,000 |
Unemployment Compensation |
51,467 |
139,979 |
37,938 |
37,938 |
+/- 40,000 |
+/- 40,000 |
Office of Personnel
Management |
65,951 |
72,434 |
90,744 |
73,865 |
94,857 |
75,844 |
Source:
OMB 7/12/12 Historical Table 5.2 Budget Authority By
Agency 1976-2017
a. Department of Labor (DOL) spending statistics are in error now that Unemployment Compensation (UC) spending has
declined from a high of $140 billion in 2010 to $38 billion in 2012. Labor spending other than UC rose from +/-$10
billion annually to +/- $30 billion in 2010 and 2011 before rising to $90
billion in 2012. This is too much for
17,500 full time equivalents, $5.1 million per capita, without any explanation
of their finance in the FY 2013 agency budget proposal. A new acting labor secretary is clearly
needed to produce a $50-58 billion DOL FY 2012 budget. Projected FY 2012 DOL spending must be
reduced to an estimated $55 billion from $138 billion to reduce the deficit by
$83 billion in FY 2012 and $30.9 billion in FY 2014. DOL should hire an Actuary to publish an
annual report on state and federal UC trust funds for Congress.
b. After exhibiting
reasonable growth during the Great Recession 2009-2011 the Office of Personnel
Management (OPM) budget is projected to dramatically increase $12 billion,
14.2%, from $79 billion to $91 billion in FY 2012. OPM spending must be limited to within 3%
annual growth from FY 2008 when spending was $66 billion bringing the OPM to
$74 billion in FY 2012 and $76 billion in FY 2013. These spending limits would save $17 billion
in FY 2012 and $19 billion in FY 2013.
ED and DOT Spending
Errata 2008, 2011; 2012 & 2013 Adjusted
|
2008 |
2011 |
2012 |
2012 pro |
2013 |
2013 pro |
Education |
65,399 |
62,911 |
116,613 |
73,248 |
55,685 |
75,209 |
Transportation |
67,974 |
84,342 |
122,594 |
76,160 |
74,280 |
78,440 |
Source:
OMB 7/12/12 Historical Table 5.2 Budget Authority By
Agency 1976-2017
2. Pardoning former Illinois Governor
Rod Blagovich’s 14 year federal sentence for
attempting to sell the President’s former Senate seat to the highest bidder
poses a budgetary emergency in FY 2012.
Firing Illinois cabinet-members would relieve the budget deficit an estimated
$109 billion in FY 2012 for the price of adding $24 billion to the deficit in
FY 2013. Both the Education and
Transportation Secretaries are from Illinois, the Secretary of Education was
one of the President’s grade school super-intendants and the Secretary of Transportation
is a Republican, both are extremely damaging to the federal budget in FY
2012. Rod Blagovich
must be pardoned right away. Both of
these Secretaries have consistently posed a conflict of interest with the
President, along volatile party and academic lines, failing to produce a
solvent agency budget, must be replaced by someone who does.
a. Transportation spending
unexplainably rises to $123 billion in FY 2012 from $70.5
billion in FY 2011, a $52.5 billion, 74.5% spending increase, after being $3.6
under 3% annual increase from FY 2008 in FY 2011. Transportation spending needs to be reduced
to $76.2 billion in FY 2012 and $78.4 billion in FY 2013, 3% annual budgetary
increase from FY 2008. This saves $46.5
billion FY 2012 but adds $4.2 billion to FY 2013, paving the way for
sustainable 3% annual agency budget growth.
b.
Education spending unexplainably rises to $117 billion in FY 2012 from $43.6
billion in FY 2011 and $65.4 billion in FY 2008, a $73.4 billion, 168% spending
increase. The FY 2011 budgetary figure
of $43.6 billion is $27.7 billion less than the $71.3 billion it would have
been if the agency had stabilized their budget at 3% annual growth from FY 2008
as ordered in 2010 and understood by most other agencies. Because the agency received some $70 billion
in Recovery act funding in FY 2009 we shall not concern ourselves with back-pay
and set ED on the road to sustainable growth at $76.2 billion in FY 2012 and
$78.4 billion in FY 2013, increasing 3% every year thereafter. This saves $43.4 billion in FY 2012 and costs
$19.5 billion in FY 2013 before stabilizing.
3.
Collectively the Social Security Administration and Veterans Affairs / Other
Defense Civil reduce the deficit by improving OMBs understanding of on-budget
and off-budget revenues and spending.
The mathematical error in OMBs SSA on-budget column of $21.6 billion in
FY 2012 and mathematical error of $52 billion in FY 2013 must be corrected, the
2% OASI tax relief did not cost so much.
If OMB
really wants to balance the budget they could take Defense-Civil off-budget in
the custody of the VA budget and save an extra $55.5 billion in FY 2012 and
$57.4 billion in FY 2013 for total savings of $77.1 billion in FY 2012 and
$109.4 billion in FY 2013.
Veterans Affairs
Taking Defense-Civil Off-budget 2008, 2010, 2012, 2013
|
2008 |
2010 |
2012 |
2013 |
Veterans Affairs |
88,401 |
124,305 |
124,181 |
137,381 |
VA Negligence Alternative |
n/a |
n/a |
118,560 |
121,500 |
Defense- Civil (Veterans Off-budget) |
45,430 |
54,786 |
55,524 |
57,416 |
Source:
OMB 7/12/12 Historical Table 5.2 Budget Authority By
Agency 1976-2017
a. The
Other Defense-Civil Column at OMB appears to be mostly a third count of service-member
contributions, although Congress only promises to match contributions. Veterans Affairs (VA) spending growth must be
brought under control. Between FY 2012
and FY 2013 VA spending is projected to increase 10.6% from $124 billion to
$137 billion. The agency is $27.5
billion over the $96.4 billion that would expected for FY 2012 and $35 billion
over $101.6 billion for FY 2013, if the VA held with the 3% from FY 2008
spending increase. If the VA did not sue
OMB to eliminate the Defense-Civil column by taking its assets off-budget we
would be compelled to limit post-Iraq and Afghanistan VA spending to $20
billion plus 3% annual growth from FY 2008 whereby it would be necessary to cut
into the cozy disability and retirement benefits that exceed the $2,500 monthly
Old Age Survivor Insurance (OASI) income limit.
However, if the VA takes responsibility for the +/-$1 billion actual
costs of Defense-Civil, for the Armed Forces Retirement Home and Arlington National
Cemetery, and hires an actuary to account for service-member contributions
off-budget, it would be easy to forgive this overspending as $35,000 per
capita for the 1 million new veterans
from the wars in Afghanistan and Iraq, with room to spare for those destitute
after being discharged Other Than Honorable (OTH) at Supplemental Security
Income (SSI) rates.
OMB On-budget Social Security Spending Errata 2008-2013
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2013 |
SSA Reimbursement From General Fund |
+/-50 n/a |
+/-50 n/a |
2,400 |
102,700 |
112,100 |
2,700 |
0 if 2% OASDI tax relief is terminated FY 2013 Oct. 1,
2012 |
SSI |
42,040 |
45,904 |
47,767 |
49,038 |
52,020 |
55,172 |
55,640 |
Total administrative costs |
9,677 |
10,327 |
11,250 |
11,000 |
10,750 |
11,000 |
11,000 |
Actual on-budget cost |
51,717 |
56,231 |
61,417 |
151,738 |
164,120 |
68,872 |
66,666 or 11,000 if SSA pays SSI |
OMB SSA on-budget figure |
58,500 |
78,406 |
70,198 |
154,714 |
188,749 |
116,657 |
116,657 |
Savings Differential |
6,783 |
22,175 |
8,781 |
2,976 |
24,629 |
47,785 |
50,485 |
Source:
Source: OMB 7/12/12 Historical Table 5.2 Budget Authority By Agency 1976-2017;
2012 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors
Insurance and Disability Insurance Trust Funds, Table IV.A.3 Operations of the
Combined OASI and DI Trust Funds 2007-21; 2012 Annual Report of the SSI
Program, Annual Report of the Advisory Council 2012 and Table C.1 SSI Federal
Payment in Current Dollars 1974-2012
b. The
Social Security Administration (SSA) is an abomination. OMB has never accurately accounted for
on-budget and off-budget SSA spending and must pay closer attention to the
Annual Report of the Trustees to Congress that comes out in April of each year,
that needs to expanded itself to include study of SSI spending, in
consideration of paying for SSI with the combined Old Age Survivor Disability
Insurance (OASDI) trust funds, without raising overall OASDI taxation until
after 2020, and we have satisfactorily made a withdrawal from what has become
over the past decade the largest savings account in the world. In 2012 the annual report of the OASDI trust
funds indicates that off-budget receipts amounted to an estimated $733.9 billion FY 2012, taking into consideration $112.1
billion reimbursed by the General Fund for the unwise and insignificant 2%
OASDI tax relief, and $788.7 billion in expenditures, $777.7 billion for
benefits. In FY 2013 reimbursements are
scheduled to go down to $2.7 billion for total off-budget revenues of $870.7
billion and $832.3 billion in expenditures.
For OMB SSA off-budget column, it is probably best to account for total
revenues, but normally it makes no difference to the federal budget. What then do the on-budget statistics mean
for the federal budget? The on-budget
statistics include the reasonable cost of administration plus SSI, until SSA is
given responsibility for paying for SSI by Act of Congress, and the cost of
reimbursing the unwise 2% OASI tax relief.
The figures provided by OMB are however $6.8 billion over in FY 2008 to
$22.2 billion over in FY 2009, going down to $8.8 billion over in FY 2010 and
$3 billion over in FY 2011 before becoming statistically significant at $24.6
billion in FY 2012 and $47.8 billion in FY 2013. OMB needs to revise on-budget statistics to
reflect actual spending reported in the Annual Reports,
i. The
Commissioner is principally responsible for the +/-$666 ($674) for three years
without Cost-of-Living Adjustment (COLA) December 2008-2012 that caused the
99.9% of the Great Recession by racketeering Hospitals & Asylums (HA),
producer of the highly infringed only balanced budget since 2005 using a
strategy of military spending reduction and OASI surplus return to the General
Fund, now obsolete in favor of total management of all federal agency budgets,
if not committing and covering up mass genocide upon 50 million beneficiaries,
7 million or so marked with the number of the beast 2008-2011 and 1 million
wise afterwards due >$700 a month and settlement of their written claim, to
the degradation of constitutional governance (and national life expectancy in
2008 now covered up). The Commissioner
is not only needs to be removed from office for misconduct, including a
$250,000 fine to compensate HA for use of the interstate commercial facility
for murder for hire in hiring five illiterate administrative law judges (ALJs),
but the Social Security Amendment of 2001 that gave him and his predecessors
six year terms needs to be amended to provide for a reasonable 2 year term, to
maximize political harmonization with the President and majority. SSA may
choose to appoint an Acting Commissioner independent of the President, Congress
and number of the beast.
Changes to OASDI if SSA paid for SSI
anytime 2013-2020
|
2011 |
2012 |
2013 |
2014 |
2015 |
OASDI
Net Increase at end of year |
69,000 |
57,300 |
41,100 |
42,400 |
43,100 |
SSI 7% annual growth from 2012 |
49,038 |
52,010 |
55,650 |
59,546 |
63,714 |
Revised
Net Increase |
n/a |
n/a |
-14,550 |
-17,146 |
-20,614 |
Revised
OASDI Balance |
|
|
2,720,
650 |
2,703,504 |
2,682,890 |
Current
OASDI Balance |
2,677,900 |
2,735,200 |
2,776,300 |
2,818,800 |
2,861,900 |
|
2016 |
2017 |
2018 |
2019 |
2020 |
OASDI
Net Increase at end of year |
46,200 |
49,700 |
48,900 |
36,900 |
17,300 |
SSI 7% annual growth from 2012 |
68,175 |
72,947 |
78,053 |
83,517 |
89,363 |
Revised
Net Increase |
-21,975 |
-23,247 |
-29,153 |
-46,617 |
-72,063 |
Revised
OASDI Balance |
2,660,915 |
2,637,668 |
2,608,515 |
2,561,898 |
2,489,835 |
Current
OASDI Balance |
2,908,100 |
2,957,800 |
3,006,800 |
3,043,700 |
3,061,000 |
Sources:
2012 Annual Report of the Board of Trustees
of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust
Funds, Table IV.A.3 Operations of the Combined OASI and DI Trust Funds 2007-21;
2012 Annual Report of the SSI Program, Annual Report of the Advisory Council
2012 and Table C.1 SSI Federal Payment in Current Dollars 1974-2012; The
Revised OASDI Balance may not take into account adjusted interest earnings.
ii.
The question is when will Congress wise up and require SSA pay for SSI saving
the General Fund $52 billion (base year FY 2012) plus 7% annual growth. It was wrong under antitrust principles for
Congress to reimburse SSA for a 2% OASDI tax reduction and needs to stop at the
soonest possible time October 1, 2012, the first day of FY 2013 is the
time. This harmful error must cease and
must not be remembered by historians and propagandists as anything but a
harmful error that caused massive layoffs and stifled economic growth from
America’s usual 3% 2011-2012 to an anemic 1.4% mid-year 2012. Reason being, we all know, if we haven’t been
brainwashed by trust fund propaganda, we have to make a significant withdrawal
from the largest savings account in the world – the OASDI Trust Fund – and
doctor the deficit, by making OASDI pay for SSI, without increasing the overall
12.4% OASDI tax rate, until after 2020.
The people should be informed of the true cost of disability with a
legislated 3.6% DI+SSI and 8.8% OASI tax split 50/50 between employers and
employees. The SSA Chief Actuary must be
immediately required to include SSI in the Annual Report to Congress, for the
agency to be prepared to withdraw OASDI assets to a $2.4 trillion limit.
5.
Conventional budget balancing wisdom from the
Balanced Budget Act of 1997 (Public
Law 105-33) that sustained military spending cuts was improved in the Balanced
Budget Refinement Act of 1999 limiting medical spending, balancing the budget,
indicates that military and medical spending must be limited to balance the
budget. This might seem dangerous but
these agencies understand that they have extortion and intimidation problems
and generally take well to budgetary guidance, spending only what is
trustworthy and saving the insolvent waste to return to the General Fund if
called upon to reduce the deficit. If
the United States is going to balance the budget Congress and the President
must limit military spending to less than $500 billion until 2020 and medical
spending to 3% annual cost increase from FY2008, $784 billion in FY 2012, $808
billion in FY 2013, and $832 billion plus $50-150 billion
$882-982 billion to expand Medicaid to pay for the health care of all people
133% of poverty line in FY 2014.
Realizing these pre-agreed spending limits that govern their behavior
would save FY 2011 $173 billion, FY 2012 $238.3 billion, and FY 2013 $253.6
billion.
$500 billion military spending limit 2008-2010, 2011-2013 Adjusted
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
Defense – Military |
674,694 |
667,557 |
666,715 |
691,471 |
650,482 |
620,259 |
Revised |
n/a |
n/a |
n/a |
518,000 |
500,000 |
500,000 |
Savings |
n/a |
n/a |
n/a |
173,471 |
150,482 |
120,259 |
Source:
OMB 7/12/12 Historical Table 5.2 Budget Authority By
Agency 1976-2017
a. In the aftermath of
the wars in Afghanistan and Iraq Department of Defense (DoD)
must be limited to less than $500 billion until 2020. In FY 2011 the Secretary of Defense announced
a $518 billion budget which we hold him to reducing to less than $500 billion
any given year. It is presumed that little
over the $400 billion mark is spent on military and all over that is unwisely
invested, lost and stolen. It should not
be difficult for DoD to
comply with a $500 billion peace-time spending limit, saving the budget $173
billion in FY 2011, $150.5 billion in FY 2012 and $120.3 billion in FY 2013.
HHS Spending, 2000 & 2008 Base
Years plus Part D and ACA 2012-2014
|
Base Year |
2012 |
2013 |
2014 |
HHS Spending |
854,059 (2010) |
871,836 |
940,832 |
1,040,661 |
2008 Base Year Revised |
700,442 (2008) |
784,000 |
807,520 |
831,745 + 50,000 – 150,000 = 881,745-981,745 |
Savings |
|
87,836 |
133,312 |
158,916 – 58,916 |
2000 Base Year Revised |
382,311 (2000) |
519,520 + 30,000 |
535,106 + 30,000 |
551,159 + 80,000 – 180,000 |
Source:
Source:
OMB 7/12/12 Historical Table 5.2 Budget Authority By
Agency 1976-2017, Cost of implementing Medicare Part D by HHS, Cost of
implementing the ACA by American Health Insurance Programs (AHIP) 2008
b.
Health and Human Services (HHS) spending needs to be reduced to a high of 3%
annual increase from FY 2008 and low from FY 2000, before the Center for
Medicare-Medicaid Services (CMS) seized the much more literate Health Care
Financing Administration (HCFA) in 2001 and spending exploded, plus spending justified
by the Medicare Part D Drug Plan and the Affordable Care Act (ACA). Inflation in all
medical costs must be limited to 3% and to enforce this critical economic law
that limited global inflation since the confusing times of the 1980s HHS and
CMS must lead by example. The United
States quasi private health insurance system is the only industrialized nation
that doesn’t provide universal medical coverage and is the most extortionate in
the world with rapidly rising costs around 18% of GDP. The Court noted that the ACA must reduce
medical spending while increasing revenues.
>$1 trillion in medical spending in FY 2014 is unacceptable unless
the United States begins to provide genuinely universal health insurance that
is free for the poor and continues to strive to reduce costs to the General
Fund through progressive taxation and the sale of reasonably priced Medicaid
premiums to those earning more than the poverty line. To respect the Court HHS must make immediate
downward revisions in spending in FY 2012.
Until 2014 when Medicaid will be obligated to pay for the medical costs
of the poor the current FY 2008 derived spending limit should be more than
enough to pay for ACA instructional costs until FY 2014. Medicaid enrollment is
expected to be 50% shy of universal coverage of wage earners, only about 24
million of 48 million uninsured are expected to be covered under current law,
but the poor will be covered in FY 2014.
The actual cost of implementing the ACA, or any universal health
insurance program in the United States, is estimated at $50-$150 billion by
American Health Insurance Programs (AHIP) that represents the state regulated
health insurance companies who benefit from the ACA and would be put completely
out of business if their $4 trillion in assets were nationalized by
Medicaid. Using 3% growth from FY 2008,
HHS spending should not exceed $784 billion in FY 2012, $808 billion in FY 2013
and in FY 2014 when the ACA promises Medicaid will be obligated to pay for all
the necessary medical treatment of people 133% of the poverty line, $832
billion plus $50-$150 billion - $882-982 billion. $1 trillion is a reasonable price for
universal health insurance coverage to prohibit medical billing in the United
States but the General Fund seems to overestimate their worth. It is not too late for Medicaid to sell
health insurance premiums to residents with earnings over the poverty line and
put extortionate premiums of private health insurance companies out of business. HHS must limit spending to not more than $784
billion in FY 2012, $808 billion in FY 2013 and $882-982 billion in FY
2014.
HUD 2009-2012 (in millions)
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Housing and Urban
Development OMB |
50,930 |
61,019 |
60,141 |
57,002 |
56,788 |
46,283 |
HUD Budget Request |
|
40,720 |
43,720 |
48,913 |
47,900 |
44,800 |
Savings |
|
|
|
|
8,888 |
1,483 |
Source: HUD. FY
2011 Budget. February 1, 2010. Pg, 39; Housing
and Communities Built to Last: Budget FY
2013
C.
HUD is not under any spending limits. HUD offers to reduce the budget by more
than any other delinquent federal agency by folding TARP returning > $300
billion of TARP repayments, and all future repayments therefrom, to the General
Fund, and claiming <$47 billion in un-administrated distressed homeowner to
pay for HUD’s entire FY 2013 budget on October 1, 2012. Under the current Secretary OMB is improving
their command of HUD’s $700 billion annual loan authorizations and $47.9
billion welfare administration in FY 2012 and $44.8 billion in FY 2013 saving
the deficit $8.8 billion in FY 2012 and $1.5 billion in FY 2013. Like some other agencies HUD is proposing to
reduce their budget, but unlike Education and Transportation does not exhibit a
tendency for a “boom-bust cycle”, just better efficiency. Section 8 vouchers are not universally
accepted by landlords in any state but Connecticut. The Secretary is a Harvard educated
architect. Although his economics may
not be free of subsidy propaganda the HUD budget appears to be. He claims the 2 year wait for Section 8 has
been reduced by over 80%.
1.
Is the HUD Secretary fast enough to save FY 2012 from plunging the nation into
federal debt exceeding 100% of the $15.6 trillion GDP? Not alone, folding TARP can reduce the FY
2012 deficit to $1 trillion by increasing revenues $300 billion. Would it be
better for HUD to wait for FY 2013? $100
billion must be saved prohibiting overspending in DOL and OPM in FY 2012 and
$50 billion in FY 2013. Pardoning former
Illinois Governor Rod Blagovich’s 14 year federal
sentence rather than the “boom bust cycles” of the Secretaries of Education and
Transportation reduces the deficit $109 billion in FY 2012 at the stabilizing
cost of $24 billion in FY 2013.
Correcting SSA’s on-budget OMB account and taking the +/-1 billion real
costs of Defense-Civil for Hospitals & Asylums (HA) properties off-budget
by the VA the deficit would be reduced by $77.1 billion in FY 2012 and $109.4
billion in FY 2013. Holding DOD and HHS to
pre-agreed spending limits would save FY 2011 $173 billion, FY 2012 $238.3
billion, and FY 2013 $253.6 billion.
HUD’s meticulous accounting also reduces the deficit by $8.8 billion in
FY 2012 and $1.5 billion in FY 2013. Is this small enough for HUD to do Aristotelian justice and rally
Cabinet reports around Art. 2(2) of the US
Constitution to keep the federal debt from ever exceeding 100% of GDP in FY
2012 without folding TARP?
Without TARP revenues these reasonable spending limits reduce the
deficit by $540 billion to -$787 billion, 4.7% of GDP, which would increase
federal debt to $15.55 trillion, 99.7% of GDP – disaster averted, mission
accomplished.
a. Would folding TARP balance the FY 2013 budget? Without folding TARP it is estimated that the
FY 2013 deficit could be reduced by an estimated $494.4 billion from -$901
billion, 5.5% of GDP, to -$407 billion, 2.5% of GDP, this would bring the debt
adjusted in the previous paragraph, down to a roughly estimated $15,958
billion, without accounting for interest, 97.8% of GDP. A budget deficit less than 3% does not incur
austerity European Union (EU) measures. Returning TARP FY 2013 would reduce the
deficit to $107 billion, which could be reduced by another $50 billion by
requiring SSA to pay for SSI, to $57 billion which could be easily covered with
the help of $23 billion offered by the Department of Agriculture, a balanced FY
2013 budget would reduce the federal debt to 95.2% of
GDP. Achieving balance would probably be
good for the economy but would be very difficult to sustain with the full costs
of the ACA looming in FY 2014. It is
therefore rewritten that $325 billion in TARP funds be returned to the General
Fund in FY 2012 reducing the deficit to -$412 billion, 2.6% of GDP, which would
reduce the debt as a percentage of GDP 1.4% from the previous year to 97.3%,
and set good precedence for all future years.
In FY 2013 the debt would go down to 95.4% of GDP. Carpe diem.
Bibliography
2012
Annual Report of the Board of Trustees of the Federal Old-Age and Survivors
Insurance and Disability Insurance Trust Funds
2012
Annual Report of the SSI Program
Housing and Urban Development. Housing and Communities Built to Last: Budget FY
2013
Office of Management and Budget. Public Budget Database User’s Guide: Budget of the United
States Government FY 2012. Budget Analysis Branch. February
2011
Sanders, Tony J. Federal Budget in
Balance FY 2011: Comparison of Bush and Obama HA-28-2-10
n As codified in Sec. 148 Balanced Budget Application; Article 11 System of National Accounts. Health and Welfare. Book 3. 8th Ed. Hospitals & Asylums HA-4-7-12