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CBO: Deficit to Shrink to Lowest Level of Obama Presidency

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In this March 4, 2014 file photo, copies of President Barack Obama'’s proposed fiscal 2015 budget are set out for distribution on Capitol Hill in Washington. The Congressional Budget Office says the federal budget deficit will shrink this year to its lowest level since President Barack Obama took office. CBO says the deficit will be $468 billion for the budget year that ends in September. That’s slightly less than last year’s $483 billion deficit. As a share of the economy, CBO says this year’s deficit will be slightly below the historical average of the past 50 years. (AP Photo/J. Scott Applewhite, File)

In this March 4, 2014 file photo, copies of President Barack Obama’’s proposed fiscal 2015 budget are set out for distribution on Capitol Hill in Washington. The Congressional Budget Office says the federal budget deficit will shrink this year to its lowest level since President Barack Obama took office. CBO says the deficit will be $468 billion for the budget year that ends in September. That’s slightly less than last year’s $483 billion deficit. As a share of the economy, CBO says this year’s deficit will be slightly below the historical average of the past 50 years. (AP Photo/J. Scott Applewhite, File)

STEPHEN OHLEMACHER, Associated Press

WASHINGTON (AP) — Solid economic growth will help the federal budget deficit shrink this year to its lowest level since President Barack Obama took office, according to congressional estimates released Monday.

The Congressional Budget Office also projects a 14 percent drop in the number of U.S. residents without health insurance, largely because of Obama’s health law.

In a report released Monday, CBO says the deficit will be $468 billion for the budget year that ends in September. That’s slightly less than last year’s $483 billion deficit.

The official scorekeeper of Congress projects solid economic growth for the next few years, with unemployment dropping slightly.

“In CBO’s estimation, increases in consumer spending, business investment and residential investment will drive the economic expansion this year and over the next few years,” the report said.

CBO also cited wage increases, rising wealth and the recent decline in oil prices.

For future years however, CBO issued a warning: Beyond 2018, deficits will start rising again as more baby boomers retire and enroll in Social Security and Medicare. By 2025, annual budget deficits could once again top $1 trillion, unless Congress acts.

At that point, Social Security benefits would account for one-quarter of all federal spending, said CBO Director Douglas Elmendorf.

“The underlying point is that we have a handful of very large federal programs that provide benefits to older Americans,” Elmendorf said. “And with the rising number of older Americans and a rising cost of health care, those programs get much more expensive.”

CBO says the number of U.S. residents without health insurance will drop from 42 million last year to 36 million this year, largely because of Obama’s health law. These numbers don’t include people who are in the U.S. illegally, who are ineligible for subsidies under the health law.

The report says 19 million people will have health insurance because of the law, which could make it harder for congressional Republicans to make good on promises to repeal it.

Obama inherited an economy in recession when he took office. The annual deficit topped $1 trillion for each of his first four years in office, including a record $1.4 trillion in 2009.

As a share of the economy, CBO says this year’s deficit will be slightly below the historical average of the past 50 years.

The federal budget deficit became a big issue during Obama’s early years in office. In 2011, Obama and congressional Republicans struck a deal that resulted in significant spending cuts at many government agencies. At the start of 2013, Obama persuaded Congress to further address the deficit by raising taxes on top earners.

The White House said Monday that Congress still has more to do. “CBO’s longer-term budget and economic projections confirm the need for Congress to act to strengthen our economy for the middle class while putting our debt and deficits on a sustainable trajectory, including by making the investments that will accelerate economic growth and generate good new jobs for our workers to fill,” Deputy Press Secretary Eric Schultz said in a statement.

Declining budget deficits, however, could reduce pressure on Congress to continue addressing the government’s finances.

“Over the last few years as deficits have fallen, so too has the effectiveness of Republican rhetoric about a ‘big government’ boogeyman,” said Sen. Charles E. Schumer, D-N.Y. “Now is the time for Republicans to join with Democrats to invest in constructive programs that help middle-class Americans climb the ladder and achieve the American dream.”

Republicans, however, signaled that they aren’t done cutting spending.

“Thanks to Republicans’ efforts to cut spending this year’s deficit is projected to be smaller, but in order to balance the budget we must address the true drivers of our debt,” said Cory Fritz, a spokesman for House Speaker John Boehner, R-Ohio. “Real, robust economic growth won’t occur until we solve our government’s spending problem.”

CBO projects that the economy will grow at an annual rate of 3 percent in both 2015 and 2016. In later years, however, CBO projects slower economic growth as more baby boomers retire and the labor force grows more slowly than it did in the 1980s and 1990s.

CBO projects the unemployment rate will gradually decrease to 5.3 percent in 2017. It is now 5.6 percent.

“CBO’s report is important, but it only tells us part of the story,” said Sen. Bernie Sanders, a Vermont independent and the ranking minority member of the Senate Budget Committee. “What we must never forget is that tens of millions of Americans today are struggling to keep their heads above water economically while the disparity between the rich and everyone else is growing wider every day.”

The budget agency bases its budget projections on current law, assuming that temporary provisions will be allowed to expire. However, many temporary laws are routinely extended, including dozens of temporary tax breaks and a provision that prevents steep cuts in Medicare payments to doctors.

Future budget deficits would be higher if those provisions are continued. For example, if dozens of temporary tax breaks are extended, they would add $1 trillion to the deficit over the next decade.

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Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Activism

S.F. Black Leaders Rally to Protest, Discuss ‘Epidemic’ of Racial Slurs Against Black Students in SF Public School System

Parents at the meeting spoke of their children as no longer feeling safe in school because of bullying and discrimination. Parents also said that reported incidents such as racial slurs and intimidation are not dealt with to their satisfaction and feel ignored. 

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Rev. Amos C. Brown, president of the San Francisco NAACP and pastor of Third Baptist Church. Photo courtesy Third Baptist Church.
Rev. Amos C. Brown, president of the San Francisco NAACP and pastor of Third Baptist Church. Photo courtesy Third Baptist Church.

By Carla Thomas

San Francisco’s Third Baptist Church hosted a rally and meeting Sunday to discuss hatred toward African American students of the San Francisco Unified School District (SFUSD).

Rev. Amos C. Brown, president of the San Francisco NAACP and pastor of Third Baptist Church, along with leadership from local civil rights groups, the city’s faith-based community and Black community leadership convened at the church.

“There has been an epidemic of racial slurs and mistreatment of Black children in our public schools in the city,” said Brown. “This will not be tolerated.”

According to civil rights advocate Mattie Scott, students from elementary to high school have reported an extraordinary amount of racial slurs directed at them.

“There is a surge of overt racism in the schools, and our children should not be subjected to this,” said Scott. “Students are in school to learn, develop, and grow, not be hated on,” said Scott. “The parents of the children feel they have not received the support necessary to protect their children.”

Attendees were briefed last Friday in a meeting with SFUSD Superintendent Dr. Matt Wayne.

SFUSD states that their policies protect children and they are not at liberty to publicly discuss the issues to protect the children’s privacy.

Parents at the meeting spoke of their children as no longer feeling safe in school because of bullying and discrimination. Parents also said that reported incidents such as racial slurs and intimidation are not dealt with to their satisfaction and feel ignored.

Some parents said they have removed their students from school while other parents and community leaders called on the removal of the SFUSD superintendent, the firing of certain school principals and the need for more supportive school board members.

Community advocates discussed boycotting the schools and creating Freedom Schools led by Black leaders and educators, reassuring parents that their child’s wellbeing and education are the highest priority and youth are not to be disrupted by racism or policies that don’t support them.

Virginia Marshall, chair of the San Francisco NAACP’s education committee, offered encouragement to the parents and students in attendance while also announcing an upcoming May 14 school board meeting to demand accountability over their mistreatment.

“I’m urging anyone that cares about our students to pack the May 14 school board meeting,” said Marshall.

This resource was supported in whole or in part by funding provided by the State of California, administered by the California State Library via California Black Media as part of the Stop the Hate Program. The program is supported by partnership with California Department of Social Services and the California Commission on Asian and Pacific Islander American Affairs as part of the Stop the Hate program. To report a hate incident or hate crime and get support, go to CA vs Hate.

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Alameda County

Board of Supervisors Accepts Certification of Signatures, Will Schedule Recall Election May 14

The Alameda Board of Supervisors unanimously accepted the certification of the results of the valid signatures submitted for the recall of District Attorney Pamela Price on Tuesday evening. The Board will set the election date at a special meeting on May 14. Before the meeting, recall proponents and opponents held separate press conferences to plead their cases to the Board and residents of Alameda County.

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District Attorney Pamela Price ‘Protect the Win’ supporters held signs outside of the County Administration Office to ask the Board of Supervisors to not schedule a special recall election. Photo by Magaly Muñoz.
District Attorney Pamela Price ‘Protect the Win’ supporters held signs outside of the County Administration Office to ask the Board of Supervisors to not schedule a special recall election. Photo by Magaly Muñoz.

By Magaly Muñoz

The Alameda Board of Supervisors unanimously accepted the certification of the results of the valid signatures submitted for the recall of District Attorney Pamela Price on Tuesday evening. The Board will set the election date at a special meeting on May 14.

Before the meeting, recall proponents and opponents held separate press conferences to plead their cases to the Board and residents of Alameda County.

Price, who up until this point has made little public comment about the recall, held her press conference in Jack London to announce that the California Fair Political Practices Commission has opened an investigation into the finances of the Save Alameda For Everyone (SAFE) recall campaign.

The political action committee (PAC), Reviving the Bay Area, has been the largest contributor to the SAFE organization and has allegedly donated over half a million dollars to the recall efforts.

“Between September 2023 and November 2023, [Revive the Bay Area] donated approximately $578,000 to SAFE without complying with the laws that govern all political committees in California,” Price said.

Price accused the recall campaigns of using irregular signature-gathering processes, such as paying gatherers per signature, and using misleading information to get people to sign their petitions.

SAFE held their own press conference outside of the Alameda County Administration Building at 1221 Oak St. in Oakland, once again calling for the Board to certify their signatures and set a date for the recall election.

Their press conference turned contentious quickly as Price’s “Protect the Win” supporters attempted to yell over the SAFE staff and volunteers. “Stop scapegoating Price” and “Recall Price” chants went on for several moments at a time during this event.

Families of victims urged the Board to think of their loved ones whose lives are worth much more than the millions of dollars that many opponents of the recall say is too much to spend on a special election.

The Registrar of Voters (ROV) estimates the special election could cost anywhere from $15 to $20 million, an amount that is not in their budget.

The Board was presented with several options on when and how to conduct the recall election. They have to set a date no less than 88 days or more than 125 days after May 14, meaning the date could fall anywhere from late July to September.

But the County charter also states that if a general election takes place within 180 days of their scheduling deadline, the Board could choose to use the November ballot as a way to consolidate the two events.

In the event that Price is recalled, the Supervisors would appoint someone to fill the vacancy, though neither the County nor the California charter specifies how long they would have to pick a replacement.

The appointee would serve as district attorney spot until the next election in 2026. Afterwards, either they, if they run and win, or a newly elected candidate would serve the rest of Price’s six-year term until 2029. Price is unique as the only district attorney wo serves a term of six years.

The Board acknowledged that they knew last fall that this recall would come with its own set of complications when Measure B, which changed the local recall charter to match California’s, was first brought to their consideration.

Supervisors Nate Miley and David Haubert opposed discussing the measure, stating that the public would think that the Board was attempting to influence the recall campaign that had already taken off months prior.

“I think ultimately this feels like it’s going to end up in court, one way or the other, depending on who files what,” Haubert said.

Price’s legal team told the Post that the district attorney intended to consider all legal options should the recall election take place.

Miley stated that while he was in support of the amendment to the charter, he did not think it was right to schedule it for the March ballot as it would ultimately cause confusion for everyone involved.

“It has produced some legal entanglements that I think, potentially, could’ve been avoided,” Miley said.

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Commentary

Opinion: Lessons for Current Student Protesters From a San Francisco State Strike Veteran

How the nation’s first College of Ethnic studies came about, bringing together Latino, African American and Asian American disciplines may offer some clues as to how to ease the current turmoil on American college campuses over the Israel-Hamas war. After the deadline passed to end the Columbia University encampment by 2 p.m. Monday, student protesters blockaded and occupied Hamilton Hall in a symbolic move early Tuesday morning. Protesters did the same in 1968.

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iStock Photo
iStock Photo

By Emil Guillermo

How the nation’s first College of Ethnic studies came about, bringing together Latino, African American and Asian American disciplines may offer some clues as to how to ease the current turmoil on American college campuses over the Israel-Hamas war.

After the deadline passed to end the Columbia University encampment by 2 p.m. Monday, student protesters blockaded and occupied Hamilton Hall in a symbolic move early Tuesday morning.

Protesters did the same in 1968.

That made me think of San Francisco State University, 1968.

The news was filled with call backs to practically every student protest in the past six decades as arrests mounted into hundreds on nearly two dozen campuses around the country.

In 1970, the protests at Kent State were over the Vietnam War. Ohio National Guardsmen came in, opened fire, and killed four students.

Less than two weeks later that year, civil rights activists outside a dormitory at Jackson State were confronted by armed police. Two African American students were killed, twelve injured.

But again, I didn’t hear anyone mention San Francisco State University, 1968.

That protest addressed all the issues of the day and more. The student strike at SFSU was against the Vietnam war.

That final goal was eventually achieved, but there was violence, sparked mostly by “outside agitators,” who were confronted by police.

“People used the term ‘off the pigs’ but it was more rally rhetoric than a call to action (to actually kill police),” said Daniel Phil Gonzales, who was one of the strikers in 1968.

Gonzales, known as the go-to resource among Filipino American scholars for decades, went on to teach at what was the positive outcome of the strike, San Francisco State University’s College of Ethnic Studies. It’s believed to be the first of its kind in the nation. Gonzales recently retired after more than 50 years as professor.

As for today’s protests, Gonzales is dismayed that the students have constantly dealt with charges of antisemitism.

“It stymies conversation and encourages further polarization and the possibility of violent confrontation,” he said. “You’re going to be labeled pro-Hamas or pro-terrorist.”

That’s happening now. But we forget we are dealing not with Hamas proxies. We are dealing with students.

Gonzales said that was a key lesson at SF State’s strike. The main coalition driving the strike was aided by self-policing from inside of the movement. “That’s very difficult to maintain. Once you start this kind of activity, you don’t know who’s going to join,” he said.

Gonzales believes that in the current situation, there is a patch of humanity, common ground, where one can be both pro-Palestine and pro-Israel. He said it’s made difficult if you stand against the belligerent policies of Benjamin Netanyahu. In that case, you’re likely to be labeled antisemitic.

Despite that, Gonzales is in solidarity with the protesters and the people of Gaza, generally. Not Hamas. And he sees how most of the young people protesting are in shock at what he called the “duration of the absolute inhumane kind of persecution and prosecution of the Palestinians carried out by the Israeli government.”

As a survivor of campus protest decades ago, Gonzales offered some advice to the student protesters of 2024.

“You have to have a definable goal, but right now the path to that goal is unclear,” he said.

About the Author

Emil Guillermo is a journalist and commentator. A veteran newsman in TV and print, he is a former host of NPR’s “All Things Considered.”

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