Budget Cut Warnings Harsher Than Reality?











Get ready for two weeks of intensifying warnings about how crucial, popular government services are about to wither — including many threats that could eventually come true.



President Barack Obama and congressional Republicans made no progress last week in heading off $85 billion in budget-wide cuts that automatically start taking effect March 1. Lacking a bipartisan deal to avoid them and hoping to heap blame and pressure on GOP lawmakers, the administration is offering vivid details about the cuts' consequences: trimmed defense contracts, less secure U.S. embassies, furloughed air traffic controllers.



Past administrations have seldom hesitated to spotlight how budget standoffs would wilt programs the public values.



When a budget fight between President Bill Clinton and congressional Republicans led to two government shutdowns, in 1995 and 1996, some threats came true, like padlocked national parks.



Others did not.



Clinton warned that Medicare recipients might lose medical treatment, feeding programs for the low-income elderly could end and treatment at veterans hospitals could be curtailed. All continued, thanks to contractors working for IOUs, local governments and charities stepping in and the budget impasse ending before serious damage occurred.






Andrew Harrer/Bloomberg/Getty Imag








This time, at stake is not a federal shutdown but a so-called sequester. Between March 1 and Sept. 30 — the remainder of the government's budget year — it would mean reductions of 13 percent for defense programs and 9 percent for other programs, according to the White House budget office.



The cuts, plus nearly $1 trillion more over the coming decade, were concocted two years ago. Administration and congressional bargainers purposely made them so painful that everyone would be forced to reach a grand deficit-cutting compromise to avoid them.



Hasn't happened.



A look at the sequester and the chilling impact the administration says it would have, based on letters and testimony to Congress:



—A key reminder: Social Security, Medicare and veterans' benefits, Medicaid and a host of other benefit programs are exempted. The cuts take effect over a seven-month period; they don't all crash ashore on March 1. And if a bipartisan deal to ease them is ever reached, lawmakers could restore some or all of the money retroactively.



—On the other hand: Left in effect, these cuts are real even though their program-by-program impact is unclear. The law limits the administration's flexibility to protect favored initiatives, but the White House has told agencies to avoid cuts presenting "risks to life, safety or health" and to minimize harm to crucial services.



—Defense: Troops at war would be protected, but there'd be fewer Air Force flying hours, less training for some Army units and cuts in naval forces. A $3 billion cut in the military's Tricare health care system could diminish elective care for military families and retirees. And, in a warning to the private defense industry, the Pentagon said it would be "restructuring contracts to reduce their scope and cost."



—Health: The National Institutes of Health would lose $1.6 billion, trimming cancer research and drying up funds for hundreds of other research projects. Health departments would give 424,000 fewer tests for the AIDS virus. More than 373,000 people may not receive mental health services.





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Budget Cut Warnings Harsher Than Reality?