Committee for a Responsible Federal Budget

Spending Challenge: Heritage Foundation's $343 Billion Proposal

The Heritage Foundation recently came out with a detailed paper with over $300 billion in spending cuts that can be put in place in FY 2012. Their proposal is broken up into six general categories: eliminating federal programs so the task can be taken up by the states, consolidating duplicative programs, privatizing some government functions, aligning spending programs more closely with national priorities, eliminating outdated and ineffective programs and eliminating waste, fraud and abuse. Breaking their proposals up further, they go into direct government departments from Agriculture to Justice to Veteran’s Affairs.

The following are their proposed cuts with their projected savings amounts.

Spending Cut ($ Millions)
Community Development8,000
Energy and the Environment11,800
Government Reform91,800
Health Care16,600
Homeland Security2,700
Income Security500
National Science Foundation1,800
Cross-Agency and Other80,600

Note: Figures may not add up due to rounding.

Some of their proposals, since they rescind money going to the states, would put additional pressure on cash-strapped states if they keep the programs funded. This is not to say that some of the programs should not be cut, but a reminder that devolving is not so much a money-saver than a funding-shifter. Some of the programs that Heritage poposes to devolve to the states are eliminating most homeland security grands to the states ($2.7 billion), eliminating many justice grants to the states ($7.3 billion) and devolving transportation funding ($45 billion).

The Heritage plan joins a growing list of specific deficit reduction plans--see here, here, here and here for others and try our budget simulator. We are glad to see more groups getting specific and hope that more policymakers will join the trend.