Financial Report Y2004

This Author has only begun to skim the Report( with Intent to eventually read it), but finds some disturbing factors. There has been increasing momentum since the start of the Bush administrations to alter established Accounting methods throughout the Government structure. Undertaken as professed streamlining and search for greater accuracy of reportage, most alterations suggest transference of burden elsewhere--hiding the transfer of fund expenditure from established programs to Administration agenda expenditure.
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The final results show a reduction of the accrual-based net
operating cost versus an increase in the budget deficit. This $89.5 billion closing of the gap between the two results
is almost entirely due to a $108.5 billion reduction in the rate of increase in accrual-based cost for pension, health
care, and disability liabilities for civilian and military personnel, and veterans.


The liability for veteran benefits actually decreased in 2004 by 3.1 percent. The decrease was due to a
refinement in the experience assumptions used at the VA to estimate the liability for compensation for male veteran
beneficiaries.
In fiscal year 2000, Medicare and Social Security were about even. It is interesting to note that,
by 2004, Medicare has grown to a level about twice the level of Social Security.
below, the estimated Social Security cost has been growing at a steady pace of less than 10 percent in all of the last 4
years and less than 7 percent in the last 3 years. On the other hand, projected Medicare responsibilities have been
growing at a much faster pace. Parts A and B have increased by over 15 percent in 3 of the last 4 years and by over
60 percent in 2004 with the addition of Part D.

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The closing of the gap between accural-net operating costs and the Deficit could have only been accomplished by reduction of Government liabilities in established Pension-style funding. The DOD is transferring much of their liability to Medicare, begruding Pension and Disability payments to their own personnel, while increasing their basic Outlays for lush military/industrial company contracts; these Instruments and their funding not even sufficiently supplying actual Troops in the field in Iraq and Afghanistan. It is a disgrace to admit a decrease in Veteren benefit liability when Troops in the field incite increased need for Widow and Orphan benefits, medical facility needs, and greater Disability benefits.

The Administration will probably insist they are simply adjusting methodology of Benefit payments for better Accounting, but They are either not providing proper Benefits, or they are artifically inciting Medicare and Medicaid increases to propel support for a shady policy initiative of this Administration to Privatize Social Security--certain only to generate revenues for Fund managers of at least fifteen billion dollars over thirty years. lgl