Great Artilce in yesterday's Washington Post that gives a high-level overview of what Obama intends to accomplish
By Philip RuckerWashington Post Staff WriterSunday, January 25, 2009
President Obama pressed aggressively for his massive economic recovery plan yesterday, laying out the most detailed benchmarks to date of a stimulus package that would cost at least $820 billion and warning that the nation's economy could become dramatically worse without major federal investment.
With Congress preparing to take up the stimulus bill this week, Obama described what he would do with a recovery package aimed at saving or creating as many as 4 million jobs. The White House outlined proposals designed to appeal to Republicans who have resisted the scale of federal spending, as well as to average taxpayers, many hit hard by the recession, who have not felt the benefit of earlier government bailouts.
In his first weekly presidential radio and video address, Obama said his American Recovery and Reinvestment Plan is critical to jump-starting the economy, which lost 2.6 million jobs last year. The plan, he said, would protect workers from losing health-care coverage; modernize public schools, roads and sewer systems; lower energy costs and taxes; and make college more affordable.
This week, the new administration will step up its lobbying efforts to ensure that Obama's signature legislation passes Congress by mid-February. The president, who met with his chief economic advisers yesterday, plans to visit Capitol Hill on Tuesday to court Republican leaders, and top administration officials will fan out on today's political talk shows to press their case.
"Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four," Obama said yesterday. "And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future.
"In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse."
Some congressional Republicans remain opposed to his plan, saying it includes too many spending programs that may not provide immediate economic relief and arguing that the roughly $225 billion in tax breaks in the Democrats' package is not enough. Obama wants to cut taxes by $1,000 for 95 percent of workers and their families.
"Unfortunately, the trillion-dollar spending plan authored by congressional Democrats is chock full of government programs and projects, most of which won't provide immediate relief to our ailing economy," House Republican Leader John A. Boehner (Ohio) said yesterday in his party's response address.
Boehner spokeswoman Antonia Ferrier described the White House proposal as "just another unfocused, runaway bill loaded with slow and wasteful Washington spending on every conceivable goal."
Boehner criticized some spending proposals in the House Democratic plan, including $6 billion for colleges and universities, many of which have large endowments, and $50 million for the National Endowment for the Arts. "All told, the plan would spend a whopping $275,000 in taxpayer dollars for every new job it aims to create, saddling each and every household with $6,700 in additional debt," he said.
The White House released a four-page report yesterday outlining spending priorities and accountability measures for the recovery package. Obama wants to double renewable energy capacity within three years, creating enough additional capacity to power 6 million homes, and he plans to leverage $100 billion to finance private-sector clean-energy initiatives.
His plan also calls for an expansion of the child tax credit, which would provide a new tax cut to the families of more than 6 million children and increase the existing credit for the families of more than 10 million children.
"I think there's been a real effort to include proposals that have strong bipartisan support," said Rep. Chris Van Hollen (D-Md.), citing a renewable energy proposal he developed with Rep. Zach Wamp (R-Tenn.) that is included in the stimulus package. "That doesn't mean that Republicans will support the overall package, but I think it will be difficult for them to argue that it does not include provisions that they think are effective in strengthening the economy."
Van Hollen said Obama's proposals, taken together, will help accomplish two goals: "to have an immediate boost to the economy, and the second is to make investments that will ensure greater competitiveness in the 21st century."
A bonus for businesses in Obama's plan is a provision that would allow them to carry back their losses into taxes filed for the previous five years, which would produce a windfall, said C. Clinton Stretch, a tax expert at Deloitte Tax LLP. "That puts cash very quickly in the hands of businesses, which are, by definition, struggling," said Stretch, a contributor to Democratic campaigns.
House Speaker Nancy Pelosi (D-Calif.) said yesterday that she is committed to having a stimulus bill passed and ready for Obama to sign by the President's Day holiday on Feb. 16. On Tuesday, the Senate Appropriations and Finance committees will consider their versions of the package, while the full House is expected to take up the measure Wednesday. The White House said it plans to spend at least 75 percent of the stimulus package in the first 18 months after passage.
House Majority Leader Steny H. Hoyer (D-Md.) said the goals outlined yesterday "will serve as a benchmark of progress to ensure accountability."
Some of Obama's plans are aimed at working-class citizens; one would expand COBRA, the temporary health-care program that newly unemployed workers can get when they lose their health insurance. That expansion is estimated to guarantee coverage for nearly 8.5 million people.
Among the other major goals are laying more than 3,000 miles of electric transmission lines; installing 40 million "smart" utility meters, which help control energy use, in U.S. homes; and weatherizing at least 2 million homes and 75 percent of federal buildings. Major infrastructure investments include enhancing security at 90 major ports and modernizing the nation's water system by launching 1,300 wastewater projects, 380 drinking-water projects, and 1,000 rural water and sewer system projects.
"This is not just a short-term program to boost employment," Obama said. "It's one that will invest in our most important priorities -- like energy and education, health care and a new infrastructure -- that are necessary to keep us strong and competitive in the 21st century."
In the area of education, Obama's plan calls for renovating 10,000 schools and funding the shortfall in Pell Grants, which would increase college affordability for 7 million students. The plan also calls for providing access to quality pre-kindergarten programs to an additional 350,000 children.
Obama's proposal is designed to inject quick investments into programs across priority areas identified during his presidential campaign and transition, said an economic aide to the president. "In order to achieve those levels of investment, you need to look for ways of investing both quickly and efficiently across a broad spectrum," said the official, who spoke on the condition of anonymity to discuss the plan.
But enacting an array of spending programs can be risky, said N. Gregory Mankiw, a Harvard University economist who served as chairman of former president George W. Bush's Council of Economic Advisers. "Fundamentally, you've got to look at these things item by item, and my fear is that since there's this push to do something so fast -- which makes sense, given the crisis -- there won't be a careful vetting to make sure that each item passes a cost-benefit test," Mankiw said.
The White House also spelled out a plan for greater transparency, saying the proposal would include no earmarks and would be subject to oversight by an independent review panel. The administration said it would launch a Web site, www.recovery.gov, which would tell citizens how the recovery funds are being spent.
"Instead of politicians doling out money behind a veil of secrecy, decisions about where we invest will be made public and informed by independent experts whenever possible," Obama said. "We'll launch an unprecedented effort to root out waste, inefficiency and unnecessary spending in our government."
Staff writers Paul Kane and Anne E. Kornblut contributed to this report.
Monday, January 26, 2009
Thursday, January 22, 2009
Which Top Federal Agencies to Watch in 2009
For the past several years during the Bush administration, there were two areas that the federal government couldn't seem to spend enough in; Homeland Security and Defense.
As the Global War on Terror (GWOT) has squeezed domestic budgets, and domestic spending has been dominated by the Department of Homeland Security, it is safe to say that there are not too many programs that won't feel some kind of pressure to perform or else be cut. As President Barack Obama stated in his inaugural address, "If it works, we'll keep it, if not, we'll shut it down."
The first agencies that vendors want to pay close attention to are defense-related. These would include the Office of the Secretary of Defense (OSD), Army, Navy, and Air Force. While the level of spending in expected to decrease, and scrutiny of programs increase, these agencies still comprise the highest levels of spending throughout the government by far. What is driving the OSD in particular is the movement to a better and more focused information age. That is using information not just on an as needed basis but more so allowing individuals to contribute what they know in a timely and efficient manner. As for the service agencies, the focus even in the midst of the GWOT has been to move from a large cumbersome force to a more agile and information-focused force. Vendors that can re-evaluate systems via Business Process Management and Re-engineering are sure to gain a foothold in defense.
As for the civilian side of the government, the largest agency in terms of spending continues to be the Department of Homeland Security. However, DHS finds itself in the midst of multiple consolidation and modernization initiatives while simultaneously seeking to leverage new technologies to improve its mission capabilities. Vendors should keep a good eye on Border Patrol and protection as there is a tremendous amount of money being spent on this initiative.
Finally the Department of Transportation (DOT) should be kept in minds of vendors. President Obama stated often during his campaign that he would spend a significant amount of money to upgrade the nation's highway systems and infrastructure. This along with the NextGen (upgrading the Air Traffic Control Systems) should keep the DOT in the spotlight for years to come.
To summarize, vendors and their respective programs will be scrutinized due to the current economic climate. However, at the same time spending will not cease in the Federal Government. Agencies such as Defense and DHS will continue to undertake important initiatives. And the smart vendors will find a way to take advantage of them.
As the Global War on Terror (GWOT) has squeezed domestic budgets, and domestic spending has been dominated by the Department of Homeland Security, it is safe to say that there are not too many programs that won't feel some kind of pressure to perform or else be cut. As President Barack Obama stated in his inaugural address, "If it works, we'll keep it, if not, we'll shut it down."
The first agencies that vendors want to pay close attention to are defense-related. These would include the Office of the Secretary of Defense (OSD), Army, Navy, and Air Force. While the level of spending in expected to decrease, and scrutiny of programs increase, these agencies still comprise the highest levels of spending throughout the government by far. What is driving the OSD in particular is the movement to a better and more focused information age. That is using information not just on an as needed basis but more so allowing individuals to contribute what they know in a timely and efficient manner. As for the service agencies, the focus even in the midst of the GWOT has been to move from a large cumbersome force to a more agile and information-focused force. Vendors that can re-evaluate systems via Business Process Management and Re-engineering are sure to gain a foothold in defense.
As for the civilian side of the government, the largest agency in terms of spending continues to be the Department of Homeland Security. However, DHS finds itself in the midst of multiple consolidation and modernization initiatives while simultaneously seeking to leverage new technologies to improve its mission capabilities. Vendors should keep a good eye on Border Patrol and protection as there is a tremendous amount of money being spent on this initiative.
Finally the Department of Transportation (DOT) should be kept in minds of vendors. President Obama stated often during his campaign that he would spend a significant amount of money to upgrade the nation's highway systems and infrastructure. This along with the NextGen (upgrading the Air Traffic Control Systems) should keep the DOT in the spotlight for years to come.
To summarize, vendors and their respective programs will be scrutinized due to the current economic climate. However, at the same time spending will not cease in the Federal Government. Agencies such as Defense and DHS will continue to undertake important initiatives. And the smart vendors will find a way to take advantage of them.
Wednesday, January 21, 2009
House Democrats propose tens of billions in new federal programs
An article from the January 19th edition of Federal Times had this to say about a proposed stimulus plan and which Federal agencies it would have a major impact on.
Democrats on the House Appropriations Committee have released details on an $825 billion proposed stimulus plan that promises to pump tens of billions of dollars into a wide array of federal programs.
The programs targeted for big plus-ups oversee everything from food stamps to hazardous waste cleanup, health care, scientific research, park improvements, green buildings and construction projects. Of the $825 billion proposed for economic stimulus, $550 billion would be in the form of new investments while $275 billion would be in the form of tax cuts.
Congressional Democratic leaders have said they want to complete work on the stimulus package by mid-February.
Among the programs targeted for additional funding under the plan:
• $43 billion for increased unemployment benefits and job training programs, administered by the Labor Department.
• $20 billion for additional food stamp benefits, administered by the Agriculture Department.
• $6.7 billion for renovations and repairs to federal buildings, managed by the General Services Administration.
• $600 million to replace older vehicles in the GSA federal fleet with those that use alternative fuels.
• $350 million for Defense Department research on renewable energy that can power weapons systems.
• $3 billion to the National Science Foundation to expand employment opportunities in science and engineering, to build research facilities, and to invest in research equipment shared by universities and other scientists.
• $2 billion for the National Institutes of Health Biomedical Research for studies on Alzheimer’s, Parkinson’s, cancer and heart diseases, and to improve NIH facilities.
• $462 million for building construction at the Centers for Disease Control and Prevention.
• $1.9 billion to the Energy Department for research into high-energy physics, fusion energy and nuclear physics.
• $600 million to NASA for climate change research.
• $900 million to the Health and Human Services Department for pandemic flu preparation; research on countermeasures to biological, chemical and nuclear threats; and cybersecurity protections.
• $600 million to the National Oceanic and Atmospheric Administration for satellite acquisition, climate sensor research and climate modeling.
• $300 million to the National Institute of Standards and Technology for research.
• $209 million for the Agricultural Research Service for facilities maintenance.
• $200 million to the U.S. Geological Survey to modernize facilities and equipment.
• $500 million to the Transportation Security Administration for explosives-detection systems.
• $150 million to the Coast Guard to repair or remove bridges deemed hazardous to maritime navigation.
• $500 million to the Social Security Administration to help process disability and retirement claims.
• $245 million to the Farm Service Agency for technology improvements to handle workload increases.
• $44 million to the Agriculture Department for repairs and security improvements to its headquarters.
• $950 million to the Veterans Affairs Department for medical facilities, including repairs and energy efficiency projects.
• $50 million to VA for cemeteries.
• $1.15 billion to GSA and Customs and Border protection for new border points of entry.
• $3.1 billion to the Interior Department for infrastructure projects on federal lands to improve roads and visitor facilities, preserve landmarks and other projects.
• $4.5 billion to the Army Corps of Engineers for environmental restoration, flood protection, hydropower and navigation infrastructure.
• $300 million for the Forest Service’s wildfire reduction programs.
• $500 million to the Bureau of Indian Affairs to address backlogs in maintenance at schools, dams, law enforcement facilities and roads.
• $800 million to the Environmental Protection Agency for Superfund site cleanup.
Democrats on the House Appropriations Committee have released details on an $825 billion proposed stimulus plan that promises to pump tens of billions of dollars into a wide array of federal programs.
The programs targeted for big plus-ups oversee everything from food stamps to hazardous waste cleanup, health care, scientific research, park improvements, green buildings and construction projects. Of the $825 billion proposed for economic stimulus, $550 billion would be in the form of new investments while $275 billion would be in the form of tax cuts.
Congressional Democratic leaders have said they want to complete work on the stimulus package by mid-February.
Among the programs targeted for additional funding under the plan:
• $43 billion for increased unemployment benefits and job training programs, administered by the Labor Department.
• $20 billion for additional food stamp benefits, administered by the Agriculture Department.
• $6.7 billion for renovations and repairs to federal buildings, managed by the General Services Administration.
• $600 million to replace older vehicles in the GSA federal fleet with those that use alternative fuels.
• $350 million for Defense Department research on renewable energy that can power weapons systems.
• $3 billion to the National Science Foundation to expand employment opportunities in science and engineering, to build research facilities, and to invest in research equipment shared by universities and other scientists.
• $2 billion for the National Institutes of Health Biomedical Research for studies on Alzheimer’s, Parkinson’s, cancer and heart diseases, and to improve NIH facilities.
• $462 million for building construction at the Centers for Disease Control and Prevention.
• $1.9 billion to the Energy Department for research into high-energy physics, fusion energy and nuclear physics.
• $600 million to NASA for climate change research.
• $900 million to the Health and Human Services Department for pandemic flu preparation; research on countermeasures to biological, chemical and nuclear threats; and cybersecurity protections.
• $600 million to the National Oceanic and Atmospheric Administration for satellite acquisition, climate sensor research and climate modeling.
• $300 million to the National Institute of Standards and Technology for research.
• $209 million for the Agricultural Research Service for facilities maintenance.
• $200 million to the U.S. Geological Survey to modernize facilities and equipment.
• $500 million to the Transportation Security Administration for explosives-detection systems.
• $150 million to the Coast Guard to repair or remove bridges deemed hazardous to maritime navigation.
• $500 million to the Social Security Administration to help process disability and retirement claims.
• $245 million to the Farm Service Agency for technology improvements to handle workload increases.
• $44 million to the Agriculture Department for repairs and security improvements to its headquarters.
• $950 million to the Veterans Affairs Department for medical facilities, including repairs and energy efficiency projects.
• $50 million to VA for cemeteries.
• $1.15 billion to GSA and Customs and Border protection for new border points of entry.
• $3.1 billion to the Interior Department for infrastructure projects on federal lands to improve roads and visitor facilities, preserve landmarks and other projects.
• $4.5 billion to the Army Corps of Engineers for environmental restoration, flood protection, hydropower and navigation infrastructure.
• $300 million for the Forest Service’s wildfire reduction programs.
• $500 million to the Bureau of Indian Affairs to address backlogs in maintenance at schools, dams, law enforcement facilities and roads.
• $800 million to the Environmental Protection Agency for Superfund site cleanup.
Sunday, January 18, 2009
Obama is in the White House: Vendors Should be Cautious
Every vendor in the Federal Government market needs to take a deep breath. No, I am not talking about those who are Republicans.
As Barack Obama prepares to take his historic oath of office this coming January 20th, there is a level of enthusiasm that is unlike any other inauguration in recent history. All one has to do is to turn on their local news to see the excitement that is unfolding in the Washington DC area. But the question that vendors need to ponder is whether that level of excitement will carry over to the business-side of the Government.
If you look at any President coming into their first term, there is a natural tendency to attempt to deliver all that was promised during the campaign period in the first few months. Unfortunately, the reality is that this does not always occur. The Congress, even one controlled by the same party does not readily subscribe to new bills coming from the Oval Office.
President Bill Clinton found this out all to well during his first term. During the 1992 Presidential campaign, Clinton made a national health care plan a key issue. Once he took office, he found delivering on this promise to be much more difficult than he imagined. Republicans and Democrats (who controlled Congress at the time) took his health care plan apart and nothing ever materialized. Even Jimmy Carter, who not for lack of effort, lobbied as hard for more bills than any President in recent memory. Congress on the other hand remained skeptical and stubborn on Carter's initiatives.
Will the same happen to Obama? It is hard to say at this point. One aspect that Obama had going for his is his experience in Congress. The last five Presidents to take office have all been state governors where the leverage over the legislatures has been more ample than on the Federal side. Even though Obama's tenure in the Congress as Senator from Illinois was brief, he should have a handle on the inter-workings of Congress more so than the Presidents of years past.
What vendors need to pay attention to is how Obama prioritizes his agenda. Based on the current economic climate, he is coming into office with the pressure to "get something going" with his stimulous bill. However, nothing is guarateed here that Congress will comply here and vendors would be wise to evaluate the climate before moving forward to secure business that may not materialize.
As Barack Obama prepares to take his historic oath of office this coming January 20th, there is a level of enthusiasm that is unlike any other inauguration in recent history. All one has to do is to turn on their local news to see the excitement that is unfolding in the Washington DC area. But the question that vendors need to ponder is whether that level of excitement will carry over to the business-side of the Government.
If you look at any President coming into their first term, there is a natural tendency to attempt to deliver all that was promised during the campaign period in the first few months. Unfortunately, the reality is that this does not always occur. The Congress, even one controlled by the same party does not readily subscribe to new bills coming from the Oval Office.
President Bill Clinton found this out all to well during his first term. During the 1992 Presidential campaign, Clinton made a national health care plan a key issue. Once he took office, he found delivering on this promise to be much more difficult than he imagined. Republicans and Democrats (who controlled Congress at the time) took his health care plan apart and nothing ever materialized. Even Jimmy Carter, who not for lack of effort, lobbied as hard for more bills than any President in recent memory. Congress on the other hand remained skeptical and stubborn on Carter's initiatives.
Will the same happen to Obama? It is hard to say at this point. One aspect that Obama had going for his is his experience in Congress. The last five Presidents to take office have all been state governors where the leverage over the legislatures has been more ample than on the Federal side. Even though Obama's tenure in the Congress as Senator from Illinois was brief, he should have a handle on the inter-workings of Congress more so than the Presidents of years past.
What vendors need to pay attention to is how Obama prioritizes his agenda. Based on the current economic climate, he is coming into office with the pressure to "get something going" with his stimulous bill. However, nothing is guarateed here that Congress will comply here and vendors would be wise to evaluate the climate before moving forward to secure business that may not materialize.
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