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President's budget proposal and other news from the nation's capitol.(Federal Focus)

Government Finance Review

| April 01, 2008 | Berger, Barrie Tabin | COPYRIGHT 2008 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The president delivered his $3.1 trillion budget proposal to Congress in early February. The budget calls for an increase of less than 1 percent over fiscal year 2008 for domestic, non-security discretionary spending, resulting in significant funding cuts for programs important to states and local governments. Many of these suggested cuts were immediately criticized by members of Congress on both sides of the aisle. As in the past, the budget proposes considerable increases for defense, other security programs, and foreign aid. It also assumes that the 2001 and 2003 tax cuts will be extended beyond 2010, when most are set to expire.

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