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The Bush administration on February 6 released its $2.77 trillion 2007 fiscal year budget proposal to Capitol Hill, where it generated the predictable caterwauling from Democrats and some moderate Republican lawmakers who dismissed it as unacceptable. Did they find it objectionable because it calls for a projected near-record budget deficit of $354 billion and a projected $9.3 trillion federal debt? No. What they find objectionable is Bush's plan to cut "discretionary" spending outside defense and homeland security, and his request to renew tax cuts while eliminating or limiting spending in over 141 domestic programs. That has alarmed spendthrift lawmakers on the Hill, especially in what is shaping up to be a contentious mid-term election year.
It appears likely that Bush's modest cuts will meet with strong opposition resulting in compromise, despite the fact that the budget will still grow overall even if all the cuts are made.
Is Bush's new 2007 FY budget proposal really fiscally conservative? Much of the outcry from liberal lawmakers has centered on the proposed 28 percent cut in education, but this cut merely reflects a scaling back of the staggering 59 percent increase Bush added to education spending during the past four years. Also, the 2.2 percent increase in projected outlays between FY 2006 and FY 2007 may look modest, but only when considered in light of Bush's record of 7 percent annual average rate of budget growth since 2002. A close look at some parts of the recently proposed budget reveals that despite some modest cuts in some areas, the Bush administration will continue to fund unconstitutional programs and initiatives of dubious value, while increasing the cost of government through continued borrowing. In what has become a pattern for the Bush administration, the requested budget, even despite its limited programs cuts, will continue to add to an exploding national debt.
A Closer Look
Bush's new budget calls for a 7 percent increase in defense spending, up from $412 billion to $441 billion to cover all military operations, not including military action in Afghanistan and Iraq. Those activities are financed through supplemental requests, a practice that has become Bush's preferred method of funding the war. In February, the Bush administration requested its sixth war-related supplemental--$72.4 billion, which includes $4.2 billion for foreign assistance. The White House said it will also request $50 billion in early fiscal year 2007. Lawmakers, reluctant to be seen as short-changing the troops, will likely continue to enact Bush's supplemental requests, possibly bringing the cost of fighting the war to nearly $500 billion by the end of next year.
Supplemental requests such as these are meant to be reserved for emergency or unanticipated requirements that are not part of the regular appropriations process. Bush's liberal use of the supplemental request has raised questions about whether war-funding should fall under the regular appropriations process.
The Department of Homeland Security also benefits from President Bush's FY 2007 budget proposal. A 10 percent increase raises its budget from $28.3 billion to $31 billion. Bush proposes to help fund the growth through an increase in airline security ticket fees, an action that is sure to rankle the airline industry and face stiff congressional opposition. The Homeland Security budget also includes funds to launch Bush's controversial guest worker/ amnesty program. Despite division among the Republican Party over the issue, Bush appears determined to push it through.
Source: HighBeam Research, Spending away our future: despite modest cuts in some government...