• state unemployment insurance and employment service operations: provides administrative grants to state agencies that pay unemployment compensation to eligible workers, and collects state unemployment taxes from employers, and funds a nationwide system that provides no-fee employment services

  • unemployment trust fund: provides support for the financial transaction of the federal-state and railroad unemployment insurance systems

  • federal unemployment benefits and allowances: funds the Trade Adjustment Assistance Program, which provides weekly cash benefits, training, and job search and relocation allowances to certain workers displaced by international trade; and the Alternative Trade Adjustment Demonstration Program of wage insurance for older workers

  • Corporation for National and Community Service operations: provides funds to foster civic engagement and responsibility by working with nonprofit organizations, faith-based groups, schools, and other civic organizations to engage Americans in community service

  • school improvement for Washington, DC: supports efforts to improve the quality of kindergarten through high school education in the District of Columbia

  • social services block grants: funds such services as day care, protective services for children or adults, special services to persons with disabilities, adoption, case management, health-related services, transportation, foster care, substance abuse, housing, home-delivered meals, independent and transitional living, and employment services

To generate cost savings relative to the baseline by 2019, the committee inflated the 2009 budget authority for these programs (taking into account the presumably temporary nature of some of the stimulus spending) at a rate of 2 percent and estimated the lagged outlay effects of cutting the programs by 50 percent starting in 2012.

COMMERCIAL SUBSIDIES AND “LOW-VALUE” ACTIVITIES: OPTIONS 1 AND 2

In addition to possible candidates for devolution to state and local governments, the committee considered candidates for eliminating or reducing commercial subsidies (as well as raising user fees) for a range of programs and activities and for eliminating or reducing “low-value” activities. For its illustrative candidates, the committee drew on a list of potential budget



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