The National Council of Nonprofits released an analysis of President Trump's fiscal year 2018 budget proposal yesterday. The Idaho Nonprofit Center is disseminating this analysis in its entirety. We encourage INC members to take time to understand the breadth and scope of the proposals for cuts to important services, many delivered by nonprofits.
While these cuts give an important view into what the Trump Administration believes is important for the U.S., we remind everyone that the proposals are only a part of the process and the final budget will come from the legislative branch.
Senate Budget Committee Chairman Mike Enzi (R-WY) put yesterday's release in perspective: "I hope that people don't panic over the President's - any President's - budget. They're just suggestions."
We also suggest that Idaho nonprofits not panic, but be vigilant and reach out to your elected officials to express your thoughts on the importance of programs that have been suggested for cuts. Be sure to get your voices heard!
To learn more about the proposed cuts, please review the article below and from The Nonprofit Times.
*Language borrowed from our partner organization: Nonprofit Association of Oregon
Fiscal Year 2018 Federal Budget Proposal
White House Releases FY 2018 Budget Requests
On May 23, the White House made the first full move in the multi-step annual federal budget process by releasing a $4.1 trillion budget blueprint for Fiscal Year 2018 that begins on October 1. Every President’s budget is essentially a wish-list of spending and policy priorities sent to Congress for the remaining steps – approval of a budget resolution that sets spending levels, passage of 12 appropriations bills, and enactment of a budget reconciliation bill that can address hard-to-pass measures such as health care reform and a comprehensive tax overhaul.
As with all White House budget blueprints, it begins with a ten-year scope before focusing on the next Fiscal Year. Broadly, the Trump budget proposal asserts that, if enacted by Congress, federal spending would be cut by $4.5 trillion over a decade and the deficit would go down by $5.6 trillion over that period, potentially producing a slight surplus in 2027. It assumes increasing revenues — even with cuts in tax rates — of $1 trillion. On the spending side, the blueprint calls for increasing defense spending by $500 billion and reducing nondefense discretionary spending, the bucket that funds many programs performed by nonprofits, by $1.5 trillion over the next decade. These cuts include $274 billion in cuts over 10 years to means-tested anti-poverty programs, including food stamps, student loans, and other anti-poverty programs.
The budget proposal claims to reach a balanced budget by 2027 through a number of assumptions. It assumes steady inflation of two percent, an unemployment rate of 4.8 percent, and a growth rate in the gross domestic product of three percent, a rate that economists on the left and right say is overly-optimistic. The Federal Reserve projects the economy will grow at a 1.8 percent annual rate in the coming years, and the Congressional Budget Office projects 1.9 percent growth. Read the Budget Message to Congress(link is external), Budget Summary(link is external), Major Savings and Reforms(link is external), and Appendices(link is external).
As the budget was being prepared for delivery to Congress, numerous former and current policymakers expressed doubts about how much of the President’s plan would be enacted into law. According to the New York Times(link is external), David A. Stockman, a former budget director under President Ronald Reagan, said, “This budget is dead before arrival, so he might as well be out of town,” referring to the President’s international travels this week. Current Representative and former House Appropriations Committee Chairman Hal Rogers (R-KY) told the Wall Street Journal(link is external), “It’ll face a tough sled over here.” According to the Washington Post(link is external), Representative Mark Meadows (R-NC), chairman of the very conservative House Freedom Caucus, said “Meals on Wheels, even for some of us who are considered to be fiscal hawks, may be a bridge too far,” speaking of proposed cuts to nutrition programs. Finally, Senate Budget Committee Chairman Mike Enzi (R-WY) put today’s news in perspective: “I hope that people don’t panic over the president’s — any president’s — budget. They’re just suggestions.”
FY 2018 Budget Proposal Details
The Office of Management and Budget released nearly 2,000 pages of materials today and it will take weeks to sort through all of the winners and losers in the President’s plans. Staffers for 24 appropriations subcommittees in Congress are poring over the details as you read this, making notes on what will and won’t fly with Representatives and Senators. Here is a first look:
Proposed Spending Increases
Proposed Spending Cuts
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