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House Budget Committee Chairman Paul Ryan announced another Republican austerity plan Thursday, this one to slash spending for domestic agencies by nearly 20 percent. The proposal stems from the GOP pledge to reduce spending to levels in place before Obama took office. The roughly $168 billion in stimulus money that still hasn't been spent is proof that Obama's program couldn't deliver the immediate economic jolt promised two years ago, Straessle said. "This is not an attempt at economic stimulus. This is just basic government spending." Oxhorn said much of that money -- $53 billion -- is set aside for promised tax relief and government spending to help taxpayers. And $115 billion more is committed in some cases with signed contracts to ongoing programs and projects, like roads and bridges, energy efficiency and education. States, local governments and other recipients have been slow to spend some of that money, according to weekly reports from federal agencies. For example, more than $14 billion remains in the pipeline to help doctors and hospitals providing Medicaid and Medicare services to convert to electronic health records; nearly $5 billion remains to help weatherize homes and to help states and local governments develop energy-efficiency strategies. States also expect to receive continued quarterly Medicaid enhancement payments into the summer, the remainder of an $87 billion recovery program intended to help them through their own financial problems. "Every state in the union has plugged that money into their budgets for the coming year," said Michael Bird, federal affairs counsel for the National Conference of State Legislatures.
In some cases, the money is set aside to reimburse states and local governments for projects under way, like highway and local airport improvements. Administration officials have warned that tampering with any of that money would leave states and municipalities on the hook for the cost of those projects. "You've got some legal issues if this is money that has been obligated by the states already," said Scheppach, of the governor's association. "They're sort of into breaking contracts at that point."
[Associated
Press;
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