July 2005 Budget

[Emsworth]

Honorable Senators,

The Constitution requires the Senate to draft and approve a budget before it may proceed "to any other matter." In the interest of considering legislation and nominees in a timely manner, I suggest that the Senate start the process as soon as possible. Only taxation is to be considered at this time; the appropriations process takes place only in October.

On behalf of the Senate, I request the Game Moderator to provide economic figures, as required by the Constitution.

[jokerman]

I have proposed a tax reform bill that would increase government revenue.

[Sam Spade]

Here's what has been added and cut, per Sixth and Seventh session:

$17.65 billion cut from the Education Sub-Dept. (Repeal of the Education and Child Care in Poverty Act
$2.4 billion added in revenue to the Energy Sub-Dept (which I'll just add in revenue). (ANWR Drilling Authorization Act)
$4 billion cut from one of the budgets, whichever deals with the War on Drugs. (Marijuana Legalization and Taxation Act)

Some other minor things as well which I don't remember, but I sent to John Ford in a PM.

John Ford already put the numbers at:

PROPOSED BUDGET- $2,492.643 Billion Dollars
PROJECTED REVENUES- $1,978.000 Billion Dollars
PROJECTED BUDGET DEFICIT-$514.643 Billion Dollars

Considering the Revenues were at 1.978000 Billion, estimated, and 2.4 billion from ANWR is revenue, I think it should be.

PROPOSED BUDGET- $2,495.043 Billion Dollars
PROJECTED REVENUES- $1,980.400 Billion Dollars
PROJECTED BUDGET DEFICIT-$514.643 Billion Dollars

This means that projected GDP should be 10,988.889 Billion, estimated, and an allowable Budget Deficit should be (@2% of GDP)

219.778 Billion Dollars

We therefore must deal with roughly 294.865 Billion in spending cuts, tax increases, etc..

[Sam Spade]

Emsworth, I PMed you the additions/subtractions, etc.

The earlier Atlasian add-ons were posted here by me for reference.

We never did include the $1.340 billion of cuts approved by me in August to the final numbers.  I will include them now.

They were:
Other Independent Agencies: $417 million
General Service Administration: $20 million
Treasury Sub-Dept.: $55 million
Commerce Sub-Dept.: $848 million

Here are the new cuts/increases we have approved:

-$17.65 billion of spending under the Repeal of the Education and Care for Children in Poverty Act (Education Sub-Dept.)
-$4 billion of spending under the Marijuana Legalization and Taxation Act (don't know where to subtract)
+$2.4 billion of revenue for the Energy Dept. under the ANWR Drilling Authorization Act (Energy Sub-Dept.)
+$25 million through the Anti-Opebo Act to whichever department handles the FBI. (don't know where to subtract)
+10 million to pro-democracy groups in Lebanon and Iran through the Promotion of Democracy Act, probably through the State Dept. (State Dept.)
+5 million for government-owned electric snowmobiles through the Preserving Our National Parks Act (Interior Sub-Dept.)

The ones where I don't know where to put them I will list down at the bottom of the page under unspecified cuts/increases.

The Atlasian Budget FY 2006[/b]

Branches of Government:
1.   Legislative Branch:  $4.376 billion
2.   Judicial Branch:  $6.043 billion
3.      Executive Branch:
         a.  Executive Office of the President:  $0.342 billion
         b.  General Services Administration:  $0.210 billion (-0.020 billion)
         c.  Other Independent Agencies:  $16.717 billion (-0.367 billion)
Total:  $27.688 billion

Cabinet Departments

1.      Defense and Security Department:  $631.641 billion
         a.  Corps of Engineers – Civil Works:  $3.989 billion
         b.  Defense Sub-Dept. (military):  $432.853 billion (+$30.220 billion)
         c.  Energy Sub-Dept.:  $20.718 billion (-1.380 billion)
         d.  Environmental Protection Agency (EPA):  $7.636 billion
         e.  Homeland Security Sub-Dept.:  $31.414 billion
         f.   Interior Sub-Dept.:  $10.596 billion (+0.005 billion)
         g.  National Aeronautics and Space Administration:  $16.245 billion
         h.  Other Defense Civil Programs:  $40.505 billion
         i.   Veterans Affairs Sub-Dept.:  $65.285 billion

2.  Treasury and Social Services Department  $1,899.055 billion ($1.90 trillion)
         a.  Agriculture Sub-Dept.:  $84.283 billion (+$1.000 billion)
         b.  Commerce Sub-Dept:  $4.989 billion (-0.848 billion)
         c.  Education Sub-Dept.:  $66.434 billion
         d.  Health and Human Services Sub-Dept.:  $571.589 billion
         e.  Housing and Urban Development Sub-Dept.:  $34.042 billion
         f.   Labor Sub-Dept.:  $57.321 billion
         g.  National Science Foundation:  $5.770 billion
         h.  Office of Personnel Management:  $63.688 billion
         i.   Small Business Administration:  $0.681 billion
         j.   Social Security Administration:  $555.031 billion
         k.  Transportation Sub-Dept.:  $58.771 billion (+$0.395 billion)
         l.   Treasury Sub-Dept.:  $396.456 billion (-0.055 billion)

3.  Justice Dept:  $21.776 billion

4.  State and International Affairs Dept.  $29.160 billion
         a.  State Sub-Dept.:  $10.903 billion (+0.010 billion)
         b.  International Assistance Programs:  $18.257 billion

Total:  $2,609.320 billion ($2.61 trillion)

Allowances:  -$0.798 billion

Unspecified Cuts: -$4.000 billion
Unspecified Appropriations: +$0.025 billion

Total (BA):  $2,604.547 billion ($2.60 trillion)
Offsetting Receipts:  $111.204 billion

PROPOSED BUDGET
$2,493.343 Billion Dollars[/b][/i]
PROJECTED REVENUES
$1,978.000 Billion Dollars[/i]
PROJECTED BUDGET DEFICIT
$515.343 Billion Dollars[/i]

Per the Constitution, this is the base from which we may produce the Revised Budget.

Food for thought:  The Budget Deficit must be less that $219.778 Billion Dollars.  The amount raised through revenue or cut through spending must be greater than $295.565 billion.

[Emsworth]

I would include the additional $25 million for the FBI under Justice. Drugs are the responsibility of Justice in real life, so the War on Drugs cut should be accounted to Justice as well.

I'd like to thank the distinguished Senator, Sen. Spade, for his work on and his help with the Budget.

[The Duke]

After June's economic numbers, the new GDP figure is $10,953 billion (or $10.953 trillion).

This leaves the government with $1,971 billion (or $1.971 trillion) in revenue.

New deficit is $540 billion.

Text of Sam Spade's PM, detailing budget cuts:

You must be logged in to read this quote.

[Emsworth]

Taking into account GM Ford's update, as well as my suggestion for the unspecified cuts (I'm not sure why this differs from the $540 billion figure for the deficit proposed; I just updated the revenue and based my calculation on it):

The Atlasian Budget FY 2006[/b]

Branches of Government:
1.   Legislative Branch:  $4.376 billion
2.   Judicial Branch:  $6.043 billion
3.      Executive Branch:
         a.  Executive Office of the President:  $0.342 billion
         b.  General Services Administration:  $0.210 billion (-0.020 billion)
         c.  Other Independent Agencies:  $16.717 billion (-0.367 billion)
Total:  $27.688 billion

Cabinet Departments

1.      Defense and Security Department:  $631.641 billion
         a.  Corps of Engineers – Civil Works:  $3.989 billion
         b.  Defense Sub-Dept. (military):  $432.853 billion (+$30.220 billion)
         c.  Energy Sub-Dept.:  $20.718 billion (-1.380 billion)
         d.  Environmental Protection Agency (EPA):  $7.636 billion
         e.  Homeland Security Sub-Dept.:  $31.414 billion
         f.   Interior Sub-Dept.:  $10.596 billion (+0.005 billion)
         g.  National Aeronautics and Space Administration:  $16.245 billion
         h.  Other Defense Civil Programs:  $40.505 billion
         i.   Veterans Affairs Sub-Dept.:  $65.285 billion

2.  Treasury and Social Services Department  $1,899.055 billion ($1.90 trillion)
         a.  Agriculture Sub-Dept.:  $84.283 billion (+$1.000 billion)
         b.  Commerce Sub-Dept:  $4.989 billion (-0.848 billion)
         c.  Education Sub-Dept.:  $66.434 billion
         d.  Health and Human Services Sub-Dept.:  $571.589 billion
         e.  Housing and Urban Development Sub-Dept.:  $34.042 billion
         f.   Labor Sub-Dept.:  $57.321 billion
         g.  National Science Foundation:  $5.770 billion
         h.  Office of Personnel Management:  $63.688 billion
         i.   Small Business Administration:  $0.681 billion
         j.   Social Security Administration:  $555.031 billion
         k.  Transportation Sub-Dept.:  $58.771 billion (+$0.395 billion)
         l.   Treasury Sub-Dept.:  $396.456 billion (-0.055 billion)

3.  Justice Dept:  $17.801 billion (-$3.975 billion)

4.  State and International Affairs Dept.  $29.160 billion
         a.  State Sub-Dept.:  $10.903 billion (+0.010 billion)
         b.  International Assistance Programs:  $18.257 billion

Total:  $2,609.320 billion ($2.61 trillion)

Allowances:  -$0.798 billion

Total (BA):  $2,604.547 billion ($2.60 trillion)
Offsetting Receipts:  $111.204 billion

PROPOSED BUDGET
$2,493.343 Billion Dollars[/b][/i]
PROJECTED REVENUES
$1,971.000 Billion Dollars[/i]
PROJECTED BUDGET DEFICIT
$522.343 Billion Dollars[/i]

[Sam Spade]

I have no objection with what Emsworth has proposed.

Budget Deficit = 2% of GDP will be 219.420 Billion Dollars

Amount to be cut or raised: 302.923 Billion Dollars

[The Duke]

Taking into account GM Ford's update, as well as my suggestion for the unspecified cuts (I'm not sure why this differs from the $540 billion figure for the deficit proposed; I just updated the revenue and based my calculation on it):

Its different because i didn't include the unspecified cuts, I think.

[King]

I'd like to reintroduce my spending cuts (except NASA) that I proposed early in the 7th session:

IN MILLIONS OF DOLLARS:
Corps of Engineers                                  -$4,975;
Agency for International Development                    -$3,390;
International Assistance Programs               -$2,089;
Small Business Administration                    -$1,439;
Export-Import Bank                            -$1,044;
Cargo Preference Program                        -$673;
Assistance for Former Soviet Union                -$484;
Federal Drug Control Program                    -$457;
Corporation for National and Community Service    -$433;
Assistance for Eastern Europe                    -$402;
Corporation for Public Broadcasting                -$375;
Equal Employment Opportunity Commission       -$331;
Legal Services Corporation                        -$329;
Peace Corps                                    -$284;
National Labor Relations Board                   -$238;
Overseas Private Investment Corporation            -$207;
National Endowment for the Humanities            -$125;
National Endowment for the Arts                -$113;
Appalachian Regional Commission                -$109;
Neighborhood Reinvestment Corp.                -$105;
African Development Fund                        -$57;
Trade and Development Agency                   -$55;
Federal Labor Relations Board                    -$29;
Selective Service System                        -$25;
Commission on Civil Rights                        -$9.

[Emsworth]

Some possible cuts:

Legislative Branch: -$86 million
Rationale: This is the amount saved by not having 90 of 100 Senators, a House of Representatives, or Majority or Minority Leaders.

Judicial Branch: -$1 million
Rationale: This is the amount saved by having six fewer Associate Justices. (I have not calculated figures for lower courts. I merely assume that they exist, just as the sub-departments are assumed to exist. For the same reason, I haven't calculated figures for the Cabinet.)

[Sam Spade]

Some possible cuts:

Legislative Branch: -$86 million
Rationale: This is the amount saved by not having 90 of 100 Senators, a House of Representatives, or Majority or Minority Leaders.

Judicial Branch: -$1 million
Rationale: This is the amount saved by having six fewer Associate Justices. (I have not calculated figures for lower courts. I merely assume that they exist, just as the sub-departments are assumed to exist. For the same reason, I haven't calculated figures for the Cabinet.)

These cuts, along with King's look good to me.

[jokerman]

Some possible cuts:

Legislative Branch: -$86 million
Rationale: This is the amount saved by not having 90 of 100 Senators, a House of Representatives, or Majority or Minority Leaders.

Judicial Branch: -$1 million
Rationale: This is the amount saved by having six fewer Associate Justices. (I have not calculated figures for lower courts. I merely assume that they exist, just as the sub-departments are assumed to exist. For the same reason, I haven't calculated figures for the Cabinet.)

That's kind of cheap and unrealistic, though.

[Emsworth]

That's kind of cheap and unrealistic, though.

Hmm, we did the same during the first budget debate, eliminating the Federal Election Commission, the National Archives, etc.

[Gabu]

Some possible cuts:

Legislative Branch: -$86 million
Rationale: This is the amount saved by not having 90 of 100 Senators, a House of Representatives, or Majority or Minority Leaders.

Judicial Branch: -$1 million
Rationale: This is the amount saved by having six fewer Associate Justices. (I have not calculated figures for lower courts. I merely assume that they exist, just as the sub-departments are assumed to exist. For the same reason, I haven't calculated figures for the Cabinet.)

That's kind of cheap and unrealistic, though.

Why is it unrealistic?  We only have ten senators and three justices.  Seems pretty in accordance with reality to me.

[jokerman]

Some possible cuts:

Legislative Branch: -$86 million
Rationale: This is the amount saved by not having 90 of 100 Senators, a House of Representatives, or Majority or Minority Leaders.

Judicial Branch: -$1 million
Rationale: This is the amount saved by having six fewer Associate Justices. (I have not calculated figures for lower courts. I merely assume that they exist, just as the sub-departments are assumed to exist. For the same reason, I haven't calculated figures for the Cabinet.)

That's kind of cheap and unrealistic, though.

Why is it unrealistic?  We only have ten senators and three justices.  Seems pretty in accordance with reality to me.

In a real-life government legislators aren't going to conviene on the internet and they would also need a full salary.

[Emsworth]

In a real-life government legislators aren't going to conviene on the internet and they would also need a full salary.

Just to note, I've left in the salaries for the PPT, nine other Senators, the Chief Justice, and two Associate Justices.

[Colin]

Some possible cuts:

Legislative Branch: -$86 million
Rationale: This is the amount saved by not having 90 of 100 Senators, a House of Representatives, or Majority or Minority Leaders.

Judicial Branch: -$1 million
Rationale: This is the amount saved by having six fewer Associate Justices. (I have not calculated figures for lower courts. I merely assume that they exist, just as the sub-departments are assumed to exist. For the same reason, I haven't calculated figures for the Cabinet.)

That's kind of cheap and unrealistic, though.

Why is it unrealistic?  We only have ten senators and three justices.  Seems pretty in accordance with reality to me.

In a real-life government legislators aren't going to conviene on the internet and they would also need a full salary.

This takes into account the fact that we only have 10 Senators instead of a full Senate and House of Representatives. This still provides for the wages and basic expenditures of a legislature just on a smaller scale.

The King budget cuts along with the cuts proposed by Vice President Emsworth sound very good and are exceptable to me. Do we have any idea what the deficit would be at if these cuts go through? How much money are we going to save in total?

[Emsworth]

We save about $17.864 billion if the cuts go through. The projected deficit would still be over $500 billion, and we would still have to come up with about $200 billion in savings.

[Colin]

We save about $17.864 billion if the cuts go through. The projected deficit would still be over $500 billion, and we would still have to come up with about $200 billion in savings.

Well then we have to cut something very large or seriously think about raising taxes. I hate to say this but the only way to reduce this deficit maybe a slight increase in taxation.

[Emsworth]

Well then we have to cut something very large...

Possible suggestions include:

- Cutting the Medicare drug benefit
- Raising the Social Security retirement age
- Instituting an across-the-board cut of discretionary spending

[King]

Spending cuts will be simply not enough for a deficit $500 billion.  We need to expand the tax base without raising taxes for everybody.  There are two options, either:  (a) we ban any kind of a birth control so we have more taxpayers in 18 years or (b) we encourage commercial growth so everybody has more money to give us and there are more businesses to tax. 

[Sam Spade]

Well then we have to cut something very large...

Possible suggestions include:

- Cutting the Medicare drug benefit
- Raising the Social Security retirement age
- Instituting an across-the-board cut of discretionary spending

The Medicare drug benefit does very little to help with spending cuts this year (about 1.8 billion).  Starting next year, it will start to become a huge chunk of change.

We also need to find $300 billion in revenue/cuts, not $200 billion.

Nonetheless, I will repost here the bill that I started, in order to see if people want to pass it, because it would sure restore some long-term fiscal sanity to government.

Repeal of the Prescription Drug and Medicare Improvement Act of 2003

Section 1:  Definitions

1.  All estimates on projections of spending for the "Medicare Part D benefit" come from CBO estimates listed below.

Testimony on estimating the Cost of the Medicare Modernization Act, circa March 24, 2004

Projection of Spending for the Medicare Part D Benefit, circa February 9, 2005

2.  Through these estimates, it is assumed that the Repeal of the programs created under this Act shall save roughly $557.7 billion dollars over these next 10 years, and that the savings of the Repeal of these programs for FY 2006 shall be roughly $1.8 billion dollars

Section 2: Provisions

1.  The Prescription Drug and Medicare Improvement Act of 2003 is hereby repealed.

2.  All funds previously appropriated by the Senate for FY 2005 to fulfill the requirements of this legislation shall be honored by the Federal Government.

3.  All appropriations and other moneys set to be authorized for fulfillment of this legislation in the Preliminary Version of the Federal Budget for FY 2006 and all future Fiscal Years shall be terminated.

[Sam Spade]

In addition, I think we should also think about creating a small national marijuana tax, now that it's been legalized. 

Don't know how much or how little revenue that would produce, but any little bit helps.

[Emsworth]

King, may I ask what source you are using for your numbers? I just want to keep everything consistent; my source seems to provide different values.