Based on the fiscal year ended 2010, here is the breakdown on spending
in the Federal Budget:
Mandatory Spending: 55%
Discretionary Spending: 39%
Interest Payments: 6%
Mandatory Spending is controlled by existing laws and that spend is NOT
subject to the annual budgeting process. THESE LAWS NEED TO BE
REVISITED IN ATTEMPTING TO BALANCE OUR BUDGET because
mandatory spending comprises the lions share of our budget spend and
these spending programs are currently running on auto-pilot!!!
Discretionary Spending covers National Defense spending, education,
transportation, training, employment, social services and other earmarks
(non-designated accounts).
Here is the basic 2010 actual problem:
REVENUE: $2.2 billion
EXPENSES: $3.5 billion
THE SHORTFALL: $1.3 billion - THE BUDGET GAP
How do you close this GAP????
Two basic ways: Increase Revenues or Cut Spending
BEST WAY is by doing both!!!!
Cutting spending is NEVER easy and for AMERICA there are some many
consideration to be taken into account. These financial problems did not
surface all of a sudden. The last time when our budget was balanced was
1998!!! This has been going on for 13 years!!!! Where is the oversight,
leadership and accountability!!!!
This country COULD be run as a FOR PROFIT entity and with this
ultimate financial goal in mind we would be operating at a SURPLUS!!!
Considerable change, leadership, deep-dive spend analysis, innovative
revenue generating approaches and literacy are some of the changes
that will provide significant benefits on the road to solvency.
