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The Honolulu Advertiser
Posted on: Sunday, April 19, 2009

Obama targets programs' wasteful spending

 •  Obama calls for end to hemispheric inequity

By Noam N. Levey
Los Angeles Times

Hawaii news photo - The Honolulu Advertiser
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Obama address: www.whitehouse.gov

McCarthy address: www.youtube.com/RepublicanConference

Portfolio Logic: www.portfoliologic.com

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WASHINGTON — President Obama, whose health-care and economic stimulus initiatives threaten to dramatically inflate the federal budget deficit, heralded a new push yesterday to cut wasteful spending in government.

The president said that in coming weeks he would announce the elimination of "dozens of government programs." And he would ask his Cabinet secretaries tomorrow for specific proposals to slash their departments' budgets — promising "no sacred cows and no pet projects."

"As surely as our future depends on building a new energy economy, controlling healthcare costs and ensuring that our kids are once again the best educated in the world," Obama said, "it also depends on restoring a sense of responsibility and accountability to our federal budget."

The president's declaration, delivered yesterday in his radio address, comes at a time when the administration is working to build support for his budget and his ambitious — and potentially very costly — domestic policy agenda.

Obama, who was in Trinidad yesterday for the fifth Summit of the Americas, did not say how much money he hoped to save with the efficiency campaign.

Since Democrats pushed through the $787 billion stimulus package in February, Republicans on Capitol Hill have accused the administration and its congressional allies of being profligate spenders.

Yesterday, Rep. Kevin McCarthy, R-Calif., kept up the attack.

"Earlier this week, President Obama said that we need to get serious about fiscal discipline by trimming waste in the federal budget," McCarthy said in the GOP response to Obama's address. "Republicans couldn't agree more. We want to work with the president to get our financial house back in order.

"It's irresponsible to borrow more than all previous American presidents combined. And it must stop if we want to get our economy moving again," McCarthy said. "When will all this spending and borrowing end?"

Under President George W. Bush, a budget surplus inherited from the Bill Clinton administration was turned into years of multibillion-dollar deficits. Republicans recently have been working to reclaim the mantle of fiscal responsibility.

Obama has contended that investments in expanding access to healthcare, improving schools and addressing global climate change will save money in the long term. But the president yesterday sought to highlight more immediate efforts as well.

He said "every program, every entitlement, every dollar of government spending" would be examined.

The president singled out a move by Homeland Security Secretary Janet Napolitano to end consulting contracts to create seals and logos that he said cost the department $3 million since 2003.

And Obama commended an effort by Defense Secretary Robert M. Gates — along with Sen. John McCain, R-Ariz., and Sen. Carl Levin, D-Mich. — to reform defense contracting, a longtime target of budget watchdogs.

The president also hinted at broader efforts to cut fraud and abuse in the $500 billion Medicare program and to end tax breaks for companies that send jobs overseas.

To lead the efficiency effort, Obama said he would tap Jeffrey D. Zients, a former corporate executive and founder of the Washington, D.C.-based investment company Portfolio Logic, who is to serve as chief performance officer.

Obama also said yesterday that Aneesh Chopra, currently Virginia Gov. Tim Kaine's secretary of technology, would serve as chief technology officer and assist in the new campaign.