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Drowning in red ink

01 Mar 2009 - Preaching the News for Sunday

In this Sunday's reading from the Book of Genesis, God establishes a covenant with Noah and his offspring after the Flood. Perhaps thinking of the fiscal covenant the current generation has with its descendants, President Obama this week vowed to cut the federal budget deficit in half by the end of his first term. Tuesday evening he offered a grim portrait of the nation's plight in an address to a joint session of the U.S. Congress, but he promised to lead an economic renewal. Striking an optimistic tone that has been less visible in recent speeches, the president said his stimulus plan, bank bailout proposal, housing programs, and health-care overhaul would help turn around the nation's struggling economy. While he bluntly described a country facing historic economic challenges and continued threats abroad, the president said the solution lies in directly confronting-not ignoring-those problems. "The weight of this crisis will not determine the destiny of this nation," he said. "The answers to our problems don't lie beyond our reach. They exist in our laboratories and universities, in our fields and our factories, in the imaginations of our entrepreneurs and the pride of the hardest-working people on Earth." Obama did seek to temper expectations in his address, acknowledging that he cannot "solve every problem or address every issue." But he promised to deliver a budget Thursday that will serve as a new "vision for America-as a blueprint for our future." Administration officials said Obama sought to strike a balance between hope and realism in an era of serious problems. He sought to juxtapose those ideas repeatedly, saying at one point: "While our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover, and the United States of America will emerge stronger than before." Source: Articles by Michael D. Shear, Anne E. Kornblut, and Steven Pearlstein for the Washington Post

barack obama crisis economic stimulus budget deficit
State programs on the chopping block

28 Jun 2009 - Preaching the News for Sunday

"I will praise you, Lord, for you have rescued me," the psalmist says this Sunday. Facing budget shortfalls that are forcing program cuts, layoffs, and tax increases, state governments can be thankful for federal stimulus money, which has at least temporarily softened the edge of the budget axe. "These are some of the worst numbers we have ever seen," said Scott D. Pattison, executive director of the National Association of State Budget Officers, adding that the federal stimulus money that began flowing this spring was the only thing preventing widespread paralysis, particularly in the areas of education and health care. Nevertheless, the choices are stark. State employees in Hawaii face furloughs of three days a month over the next two years, the equivalent of a 14 percent pay cut. Idaho lawmakers reduced aid to public schools, forcing reduced pay for teachers. Maine is adding taxes on candy and ski tickets, Wisconsin on oil companies, and Kentucky on alcohol and cell phone ring tones. In California, where a $24 billion deficit for the coming fiscal year is the nation's worst, Gov. Arnold Schwarzenegger has proposed releasing thousands of prisoners early and closing more than 200 state parks. Source: An article by Abby Goodnough for the New York Times

states state government budget deficit scott d pattison national association of state budget officers arnold schwarzenegger
California’s budget subjected to school of hard knocks

19 Jul 2009 - Preaching the News for Sunday

Moved to pity by the anxious and leaderless crowd, this Sunday's gospel tells us, Jesus taught the people many things. California legislators announced Wednesday that agreement had finally neared on a series of budget cuts-including contentious cuts in education-needed to close the state's $23.6-billion budget deficit. The progress in negotiations comes as the cash-starved state is issuing IOUs to vendors, college students, and local governments, while a third Wall Street credit rating agency on Tuesday dropped California's bond rating. "I don't think there is anything that would make negotiations shut down at this point," said Assembly Speaker Karen Bass (D-Los Angeles). Senate GOP leader Dennis Hollingsworth (R-Murrieta) agreed that a final budget deal was probably imminent. Fiscal experts have been struggling for days to find a way to cut billions of dollars from schools. The California Teachers Association has been running television advertisements to pressure legislators not to suspend voter-approved funding formulas that guarantee schools a set amount of money each year. Any final deal is expected to include some of the sharpest cutbacks in government services the state has experienced. Programs that have not been cut deeply in years are likely to shrink considerably, with tens of thousands of Californians losing access to programs they have relied on. Some programs, like home health care for senior citizens, may be wiped out entirely. Source: An article by Evan Halper for the Los Angeles Times

california budget deficit programs schools california teachers association dennis hollingsworth karen bass budget cuts
Administration floats new budget with ballooning deficit

07 Feb 2010 - Preaching the News for Sunday

Writing to the early church at Corinth, Saint Paul reminds its members that he has “handed on to you . . . what I also received.” President Barack Obama, who inherited a soaring federal deficit from his predecessor, sent Congress a $3.83 trillion budget for fiscal year 2011 Monday. It would add a record $1.56 trillion in red ink to this year’s unprecedented $1.41 trillion projected deficit. The budget outline drew bipartisan fire on Capitol Hill Tuesday. Republicans complained it doesn’t address deficits soon enough and raises taxes too much, while Democrats balked at some of Obama’s spending cuts. The rocky reception underscored election-year restlessness and rising public anger at bailouts, bonuses, and expanding deficits, observers said. And the complaints across party lines suggested it could be difficult for Obama to win support for key parts of his budget, even from members of his own party. Sen. Bill Nelson (D-Fla.) called Obama’s proposal to cancel NASA’s manned moon return program shortsighted. Sen. Patty Murray (D-Wash.) derided his proposal to include U.S. Army Corps of Engineers projects in a proposed partial three-year spending freeze. Sen. Jay Rockfeller (D-W. Va.) said environmental priorities in the budget would unfairly burden coal states such as his. In one sign of possible common ground, Senate Finance Committee Chairman Max Baucus (D-Mont.) suggested there is support across party lines for Obama’s proposal to give companies a $5,000 tax credit for each new worker they hire in 2010. “We need to work on legislation that will create jobs. And we need to work across the aisle, so that the legislation on which we work can become law,” Baucus said. Source: Articles by Rob Silverblatt for U.S. News & World Report and Tom Raum for Associated Press

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Social insecurity awaits Baby Boom retirees

21 Mar 2010 - Preaching the News for Sunday

"Restore our fortunes, O Lord," the psalmist prays this Sunday. Those coming to retirement age and counting on Social Security benefits may soon be joining in that prayer. For years the federal government borrowed from a $2.5 trillion Social Security nest egg, but starting this year those IOUs are coming due just as the government is racking up record deficits.This year for the first time since Congress last overhauled the system in the 1980s the retirement program is projected to pay out more in benefits than it collects in taxes--nearly $29 billion more. That would be a good time to start tapping the nest egg, but the federal government has already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors.Now it will have to borrow even more money, much of it abroad, to start paying back what it owes, and the timing couldn't be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.It is estimated the trust fund will run out of money by 2037, according to the trustees who oversee the program. "This is not just a wake-up call, this is it. We're here," said Mary Johnson, a policy analyst with The Senior Citizens League, an advocacy group. "We are not going to be able to put it off any more." Source: An article by Stephen Ohlemacher for the Associated Press

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Taxing economic problems dominate national agenda

12 Sep 2010 - Preaching the News for Sunday

Tax collectors gathered around Jesus to hear him speak, raising the ire of the Jewish religious elite, this Sunday’s gospel tells us. Risking the ire of the economically elite, President Barack Obama said Wednesday the nation can’t afford to extend tax cuts for the wealthy that are due to expire next year. The president said letting the cuts expire shouldn't be seen as a form of punishment. "This isn't to punish folks who are better off, God bless 'em—it's because we can't afford the $700 billion price tag," Obama said. Republicans want all the tax cuts extended, while most Democrats want to extend the cuts only for Americans making less than $250,000 a year. Obama also unveiled a series of aggressive, pro-business proposals to lift the economy that the GOP has previously supported. The policies, which include a mix of tax cuts and injections to rebuild outdated infrastructure across the U.S., are aimed at removing enough uncertainty to get banks to increase lending and businesses to increase spending. Addressing those who advocate for steep cuts in domestic spending to close the deficit, Obama said, "I'll be honest—I refuse to cut back on those investments that will grow our economy in the future—investments in areas like education and clean energy and technology." He also pledged to not "pass on the debt we inherited to the next generation." Source: An article by Jared A. Favole for the Wall Street Journal

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Taxing Illinoisans’ patience--and pocketbook

16 Jan 2011 - Preaching the News for Sunday

“Extravagance” is the title of Alice Camille’s Prepare The Word.com reflection on this Sunday’s readings, a commentary on the “high-flying exuberance and over-the-top promises” of salvation on display in this week’s texts. After what many Illinois residents believe was years of extravagant state government spending and over-the-top pension deals, the end result is a huge budget deficit. In a last-minute, lame-duck session, legislators passed the tab on to taxpayers in the form of a major hike in personal and business tax rates. The measure will raise the personal income tax rate by 67 percent and the business income tax rate by 46 percent. “We had an emergency, a fiscal emergency,” said Governor Pat Quinn during a statehouse news conference Wednesday. Many states face deficits brought on by a combination of government growth and economic downturn, but none has resorted to a tax hike approaching the size of Illinois’. Democrats argued the tax increase was needed to rehabilitate the state’s deadbeat image, but Republicans predicted it would drive businesses out of state. They also argued that Democrats who have controlled state government since 2003 should make stringent budget cuts before seeking a massive income tax hike during a struggling economy. “I can’t figure out how this plan does anything for our real problems. Our real problem is spending, the increased spending, the mentality that we have,” said Republican state Rep. Roger Eddy. “We’ll continue to throw money into a hole that has no bottom.” As if to prove the point, state senators also gave final approval to a House-passed plan that would allow the state to borrow nearly $4 billion to make its annual payment for public employee pensions. Source: Articles by Ray Long for the Chicago Tribune and Ilan Brat for the Wall Street Journal

illinois budget deficit roger eddy pat quinn spending tax increase
Remember debt to the poor in debt negotiations, urge religious leaders

31 Jul 2011 - Preaching the News for Sunday

The first reading this Sunday affirms that those who look to God will not want for anything, regardless of their economic status: “You who have no money, come, receive grain and eat!” As Washington struggles to forge a solution to the nation’s debt crisis, religious figures urged the president and congressional officials to protect programs for hungry and poor people. Spiritual leaders met with the president last week to urge him and congressional negotiators to remember the neediest at this time of national economic crisis. The 40-minute meeting included representatives from some of the nation's largest religious denominations and organizations, including the Roman Catholic Church, the National Council of Churches, the National Association of Evangelicals, and the Evangelical Lutheran Church in America as well as deputies of social service groups such as the Salvation Army and Bread for the World. The delegation also met recently with Rep. Paul Ryan, U.S. House budget committee chairman, as well as the staff of House Speaker John Boehner to voice their concerns. The meeting with the president came after more than 5,000 pastors sent him and the congressional leadership a letter last week telling them the "moral measure of the debate is how the most poor and vulnerable fare." The “Circle of Protection” statement has been endorsed by more than 60 heads of Christian denominations and religious organizations as well as 45 heads of development agencies and other faiths. The movement was launched in response to the disproportionate budget reductions proposed for programs benefiting hungry and poor people. “As Christian leaders, we are committed to fiscal responsibility and shared sacrifice. We are also committed to resist budget cuts that undermine the lives, dignity, and rights of poor and vulnerable people,” the statement said. Speaking after the meeting with the president, Bishop Ricardo Ramirez of Las Cruces, New Mexico said: "We came here not to advance a particular plan, but a fundamental moral principle: Put the needs of the poor first in allocating scarce resources. “As religious leaders, our concern is not which party wins the current political battles,” said Ramirez. “But we know if we don't speak up who is likely to lose: the families trying to feed their kids, the jobless looking for work, the children who need health care, the hungry and sick and hopeless around the world." Sources: Articles by Jaweek Kaleem for The Huffington Post and a USCCB News Release

barack obama congress budget deficit budget cuts ricardo ramirez circle of protection
Taxing debate dominates deficit reduction efforts

25 Sep 2011 - Preaching the News for Sunday

The Lord poses a question to the people of Israel in this Sunday’s first reading: “Is it my way that is unfair, or rather, are not your ways unfair?” That is the political question of the moment in negotiations to reduce the federal deficit. Drawing immediate condemnation from congressional Republicans, President Barack Obama unveiled a new deficit reduction plan Monday in which he vowed to veto any package that cuts into Medicare without raising "serious revenues" from wealthy Americans and corporations. "We can't just cut our way out of this hole. It's going to take a balanced approach," Obama said. "It's only right that we ask everyone to pay their fair share." Responding to criticism from some Republican leaders that he is engaging in “class warfare” by targeting the wealthiest for tax increases, the president responded, "If asking a billionaire to pay the same rate as a plumber or a teacher makes me a warrior for the middle class, I wear that charge as a badge of honor." Speaker of the House John Boehner on Wednesday said the president was looking only toward the ballot box in 2012 with his deficit reduction plan. “It’s pretty clear that the president decided to forget his role as president and leader of our nation at a time of economic uncertainty and to begin the campaign for his reelection some 14 months away.” "What is your opinion?” Jesus asks Jewish religious leaders as he challenges them to determine which of the sons in the gospel parable does the will of the father. When asked their opinion of the president’s proposal, the public demonstrates wide support, according a new Gallup poll. By a two-to-one ratio, respondents support Obama's plan to increase taxes on the wealthy and big corporations. The same share believes his proposed stimulus, the American Jobs Act, will create jobs and grow the economy. Sources: Articles by Derek Thompson for The Atlantic, Seung Min Kim for Politico, and David Jackson for USA TODAY

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The economic forecast brightens

19 Jan 2014 - Preaching the News for Sunday

In this Sunday’s second reading Saint Paul wishes grace and peace for the followers of Jesus in Corinth. A steadily improving economy may bring a measure of peace to harried wage-earners and the grace of a new job to more of the long-term unemployed. An improving U.S. federal budget situation offers evidence of the bettering prospects.Rising tax revenues and government spending constraints are expected to trim this year's annual deficit to around $600 billion. That would be lower than last year's deficit of $680 billion, which was the lowest since 2008.The economy has g,radually improved since the recession ended in June, 2009. As more people find jobs, tax revenue rises and the deficit shrinks. So far this year revenue has totaled $664.6 billion. That's 8 percent higher than the first three months of the previous budget year. Government spending meanwhile has fallen 7.8 percent to $838.2 billion.Annual deficits had ballooned above $1 trillion from 2009 through 2012. They peaked at a record $1.4 trillion in 2009, President Barack Obama's first year in office. The 2008-2009 recession led to a drop in tax revenue. At the same time, the government stepped up emergency spending including unemployment benefits for millions who lost their jobs during the downturn.Congress reached agreement in December on a budget deal aimed at bringing some stability to the budget process for the next two years. A battle over the budget resulted in a 16-day partial government shutdown in October.Homily hint: If present trends continue, it may be that the nation is finally able to enjoy a period of relative prosperity and, it is hoped, the domestic tranquility which can accompany it. As we move ahead with recovery, however, let’s do our best to see that no one is left behind. Source: An article by Martin Crutsinger for the Associated Press

budget deficit economy government spending tax revenue