- Elizabeth Larson
Thompson and community members talk about federal budget challenges
LAKEPORT, Calif. – The nation's fiscal future – and local residents' concerns and suggestions about how to face it – was the focus of a spirited town hall in Lakeport Tuesday evening.
Congressman Mike Thompson hosted the nearly two-hour-long session – nearly a half-hour longer than originally anticipated due to the numerous questions posed by community members – in the Board of Supervisors' chambers.
About 50 people – including Supervisor Jim Comstock, county Superintendent of Schools Wally Holbrook and County Administrative Office Kelly Cox – attended.
It's one of two such town hall gatherings that Thompson is hosting in his North Coast district this week. Another similar event is planned for Wednesday night in Sonoma.
Residents brought their questions, their challenges – and some even brought their own pie charts.
Several people challenged the budget figures Thompson presented, especially as they related to tax cuts, but Thompson said afterward he thought it was a good gathering.
“The idea tonight is to have a discussion about the debt and the deficit and have some conversation about how we proceed in addressing the debt and the deficit,” he said.
Thompson said he felt the budget finally got the attention it deserved in the November election and as a result of President Barack Obama appointing a fiscal commission to take a hard look at the nation's budgetary health.
Moving through a slide presentation, Thompson reported that the national debt is $14 trillion, and the federal budget for the 2010 fiscal year had a $1.3 trillion deficit, with the nation taking in $2.2 trillion in revenues but spending $3.5 trillion.
“So that's the hurdle that we have to clear,” Thompson said.
The federal budget is broken down in the following categories: defense, 23 percent; Social Security, 20 percent; Medicare, Medicaid and children's health, 21 percent; interest payments, 6 percent; other mandatory spending such as retirement for employees and veterans benefits, 14 percent; and nonsecurity discretionary funding, 15 percent.
Among the numbers also was one interesting figure – foreign aid not connected with defense totals 1 percent of the nation's budget. In recent polling, Thompson said many people believed foreign aid's percentage was much higher, at 25 percent. When asked what it should be, many people said 10 percent, 10 times its real number.
Thompson showed a chart illustrating the nation's spending with an area that showed what he called “a pretty precipitous drop,” which he attributed to $1.5 trillion in tax cuts.
A man in the audience challenged that number, saying the cut was already in effect and was renewed. Thompson compared the tax cut's impact on national spending to making a big payment, such as paying off one's car lease. The man wasn't convinced, calling it “funny numbers.”
In 2001, the nation had a $236 billion budget surplus, which has now turned into a $14 trillion deficit.
“It's pretty obvious how we got here,” said Thompson.
He showed a list of huge national costs – including $1.15 trillion for the wars in Iraq and Afghanistan, $380 billion for Medicare Part D, more than $2 trillion in tax cuts between 2001 and 2010, the $291 billion bailout of Fannie Mae and Freddie Mac, and $479 billion in fallout from the economy downturn – including less tax dollars costs related to the high unemployment .
Asked about the bailout, Thompson said the institutions that took the funds are paying the money back, and it appears that it won't cost the American people anything.
The stimulus bill totaled $862 billion, he said.
Businessman Lowell Grant asked about the changes in corporate tax law that has led from corporations paying less in taxes today than they did in 1980. “When is it someone else's turn to sacrifice other than the working class?” he asked.
Thompson said corporate taxes are now being revisited and reworked. He said he believes corporate tax reform needs to be revenue neutral.
The 18-member bipartisan panel that makes up the president's fiscal commission proposed starting cuts in 2012 in order to balance the budget in 2015.
“I think that reflects a very real concern,” said Thompson, pointing out, “If you start right now you have a pretty fragile recovery.”
Thompson then opened it up to the audience's suggestions about what should be cut and what should be spared.
Audience members pointed out issues with the high cost of health care, tax cuts and the military.
Regarding military spending, Thompson said it should not be exempt from the considerations aimed at other types of spending.
He praised Secretary of Defense Robert Gates for his efforts to cut defense spending, including nixing expensive equipment purchases.
“I think we have someone we can work with in the secretary,” Thompson said.
Infrastructure – which other countries are investing in but is not receiving similar investment in the United States – was another topic raised.
Thompson said he met last week with Treasury Secretary Tim Geithner, who told him that the lack of investment in infrastructure is a tax on business.
One audience member asked about encouraging more offshore oil drilling and building nuclear power plants to cut dependence on foreign oil.
Thompson said no one should even think about drilling off the North Coast for several reasons, including the fact that it's an upwelling that feeds marine life, is geologically unstable and has a huge tourism base.
He said that oil companies currently have so many leases that they don't have the equipment or the personnel to work all of the areas.
“I think nuclear is on the table,” he said, noting the Obama administration has supported nuclear expansion. However, it has to have very high regulatory standards.
The discussion continued on into the need for solar installations, simplifying the tax code and concerns about if the United States was heading for bankruptcy.
To that latter concern, Thompson – noting he's a “glass half full kind of guy” – said, “There's a lot of signs that things are improving,” but that it's a sensitive time in the nation's recovery.
He then held up an empty notepad, reminding them that he still wanted to hear their ideas for what should and shouldn't be cut in the federal budget.
Grant suggested they close 50 foreign military bases, many of which are relics of World War II.
Before anything else was written down on the notepad the group entered a discussion about health care plans, with a woman suggesting a single-payer plan – which would have one entity or “payer” acting as administrator – would be the cheapest. Thompson said that it's actually the most expensive in the beginning.
Currently in Congress Thompson said there is an attempt every day to repeal or defund parts of the health care reform.
“I don't think the American voters are ready to choose single-payer,” said Thompson.
In the First Congressional District, however, Thompson said the overwhelming number of doctors who contacted his office about health care prefer the single-payer proposal.
Thompson partnered with the grassroots group the Concord Coalition – which advocates responsible fiscal policy – to put on the town halls.
The coalition has an online “Federal Budget Challenge” to let people take a turn at deciding how to balance the federal budget. Find it at http://www.federalbudgetchallenge.org/budget_challenge/sim/budget_master.html .
E-mail Elizabeth Larson at
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