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Bush's Budget for 2005 Seeks to Rein In Domestic Costs
NY Times ^ | January.4,2004 | ROBERT PEAR

Posted on 01/03/2004 2:17:20 PM PST by Reagan Man

WASHINGTON, Jan. 3 — Facing a record budget deficit, Bush administration officials say they have drafted an election-year budget that will rein in the growth of domestic spending without alienating politically influential constituencies.

They said the president's proposed budget for the 2005 fiscal year, which begins Oct. 1, would control the rising cost of housing vouchers for the poor, require some veterans to pay more for health care, slow the growth in spending on biomedical research and merge or eliminate some job training and employment programs. The moves are intended to trim the programs without damaging any essential services, the administration said.

Even with the improving economic outlook, administration officials said, the federal budget deficit in the current fiscal year is likely to exceed last year's deficit of $374 billion, the largest on record.

The Congressional Budget Office and the White House budget office have projected a deficit of more than $450 billion this year.

But Joshua B. Bolten, director of the White House Office of Management and Budget, has said the president's policies will cut the deficit in half within five years, through a combination of economic growth and fiscal restraint.

Mr. Bush's budget request, to be sent to Congress by Feb. 2, includes several tax cut proposals, including new incentives for individual saving and tax credits to help uninsured people buy health insurance. The Democratic candidates for president have accused Mr. Bush of doing little to halt the recent rapid increase in the number of uninsured.

Administration officials said the president's budget would call for an overall increase of about 3 percent in appropriations for so-called domestic discretionary spending, which excludes the Department of Homeland Security, the Defense Department and insurance benefits like Medicare and Medicaid.

As he completes work on his budget, Mr. Bush faces criticism from conservatives, who say he has presided over a big increase in federal spending, and liberals, who say his tax cuts have converted a large budget surplus to a deficit.

Total federal revenues have declined for three consecutive years, apparently the first time that has happened since the early 1920's. But in those years, from 2000 to 2003, total federal spending has increased slightly more than 20 percent, to $2.16 trillion last year.

Brian M. Riedl, an economist at the conservative Heritage Foundation, said: "President Bush is not focusing on his fiscal conservative base right now. He's trying to position himself in between conservatives in Congress and the Democratic Party. It may be good politics, but it's bad policy, a lost opportunity to get runaway government spending under control."

White House officials deny that they have acquiesced in a domestic spending spree. They insist, as do some liberal advocacy groups, that appropriations for domestic programs are not exploding.

Such spending, they say, will increase 3 percent in 2004, after increases of 5 percent in 2003, 6 percent in 2002 and 15 percent in 2001. Moreover, they say, increased corporate profits should lead to an increase in corporate tax payments, lifting revenues in the coming years.

Richard Kogan, a budget analyst at the Center on Budget and Policy Priorities, a liberal-leaning research and advocacy group, said the increase in military and domestic security spending in the last two years dwarfed the increase in domestic discretionary programs, which did not quite keep pace with inflation.

"The increases for defense, international affairs and homeland security have been much greater — and thus have played a much larger role in the return to deficits — than the increases for domestic appropriations," Mr. Kogan said.

Housing officials said the administration was alarmed at increases in the cost of vouchers, which provide rental assistance to low-income families, and would take steps to prevent local housing agencies from issuing more vouchers than Congress had authorized. Congress has tentatively decided to provide $14.2 billion for renewal of vouchers this year, an increase of about 15 percent.

Federal officials said they would also require families seeking housing aid to help the government obtain more accurate information on their earnings. As a condition of receiving aid, families would have to consent to the disclosure of income data reported to a national directory of newly hired employees. The directory was created under a 1996 law to help enforce child-support obligations.

Administration officials said the president's budget would also slow the growth of spending at the National Institutes of Health, which doubled in the last five years, reaching $27.1 billion in 2003. Congress has tentatively agreed to provide $28 billion this year, slightly more than Mr. Bush requested, and administration officials said they would seek an increase of 3 percent or less for 2005.

Budget officials defended the proposal, saying they wanted to be sure the agency was properly managing a huge infusion of federal money.

Mr. Bush proposed last year to double co-payments on prescription drugs for many veterans, primarily those with higher incomes and no service-connected disabilities. The White House reaffirmed its support for that proposal in November.

In the last week, the Pentagon has been considering a new proposal to increase pharmacy co-payments for retirees with at least 20 years of military service. Under the proposal, the charge for a generic drug would rise to $10, from $3, while the charge for a brand-name medicine would rise to $20, from $9.

The Military Officers Association of America criticized this as "a grossly insensitive and wrong-headed proposal." In e-mail messages to the White House, members of the association asked Mr. Bush, "Why do your budget officials persist in trying to cut military benefits?"

Col. Steven P. Strobridge, director of government relations at the association, said he understood that the Pentagon was now inclined to study the issue for a year and renew the proposal, as part of a systematic effort to "reduce military health care costs."

Administration officials said they expected Mr. Bush to seek increases of $1 billion, or 10 percent, for the education of children with disabilities and $1 billion, or 8 percent, in Title I grants for schools with high concentrations of students from low-income families.

Budget officials said they were concerned that they did not have enough money for Pell grants to keep pace with a recent surge in low-income students seeking help with college costs. They said Mr. Bush would address that problem in some way, without seeking an increase in the maximum grant, now $4,050.

The budget also seeks money to train more nurses, to encourage sexual abstinence among teenagers and to recruit "volunteers in homeland security," who can respond to emergencies, including terrorist attacks.


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Front Page News; Miscellaneous; News/Current Events; Politics/Elections
KEYWORDS: budget; cbo; domesticspending
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To: pageonetoo
I don't think they even teach Latin, now, do they? Much less, Chaucer, Will'm Shakespeare, or the Bible. Nor, do they allow our children to read good old 'Uncle Remus', regardless of its un-PC structures... Whatever has happened to the public schools (rhetorical question)? They certainly aren't properly educating, nor preparing...

As a recent graduate (2002) of the public school system, let me tell you what my particular high school (which at the time had 6,000+ students, making it the largest in the country, IIRC) featured in its classes, and had as graduation requrements:

-4 English courses. I took the basic course for English I, which featured some grammar education in the first few weeks, then moved on to Romeo and Juliet, as well as a couple of other stories that I forget. Took honors for the other three, and was treated to books such as The Hot Zone, The Great Gatsby, various Edgar Allan Poe stories, Lord of the Flies, A Streetcar Named Desire, and Hamlet. And that's just what I remember.

-2 foreign language courses. There wasn't any Latin (dead language, but the school offered Spanish, German, and French. Due to living in South Florida, I took two Spanish courses. Didn't do too terribly well, but I passed.

-3 math courses, one of which must be an Algebra course (with Algebra II as a graduation requirement). The school offered all the way up to AP Calculus. Didn't take it, but it was there.

-3 social studies courses, one of which must be American History, another which must be a basic economics (how to read the stock market, supply and demand, etc) course. Plenty of AP classes offered here.

-3 science courses. This is where my old high school excelled. I think their science selection outdoes my college's... I personally took geology, biology I, and human anatomy.

That's just the core stuff, in addition to various other requirements... I did pretty well at the various AP classes, psychology especially (I got a 3 on the exam--good when you consider that I didn't do too well in-class, and went in expecting a 1). Public education is better than people give it credit for.

The main problem is the students themselves--they don't want to learn. The school had to rig attendance numbers by taking attendance in second hour (too many people came in late), and skipping was a huge problem. A good number of those who showed up for class were too busy fiddling with their cell phones and talking about who was dating who to pay attention to the lecture.

Rant off.
41 posted on 01/04/2004 6:41:18 AM PST by Terpfen
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To: Terpfen
... As a recent graduate (2002) of the public school system,...

Latin was a dead language when I graduated in 1965, but it is the foundation for much of the worlds' literature, and great writings.

The requirements, to graduate, do not reflect the value of the classes offered. With PCism, much of the good stuff, in literature, is excluded, while "I have two mommies" has been substitued.

Without a doubt, attitude plays a lot in your education, but I have a challenge for you. Without looking them up, please quote for me, the first paragraph of Lincoln's Gettysburg address (and tell me in what state it was given), type the whole Preamble to the Constitution, and The first paragraph of the Declaration of Indepence. If you cannot do it without cheating, please so state, in reply!

My next challenge would be for you to tell me about George Washington Carver, and his impact on society, then name the 23rd President, and Vice President. Then tell me the 49th and 50th states added, without looking them up, in order!

As previously stated, I graduated in 1965. I still remember them...!

42 posted on 01/04/2004 8:00:32 AM PST by pageonetoo (Rights, what Rights'. You're kidding, right?)
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To: Reagan Man

Now that the Geezers get free pills, nobody else is going to want me to pay for theirs.

Yeah, right .

Sure.

Thanks mucho for opening the barn door for Socialized Medicine JorgeCare there, Dubya.

43 posted on 01/04/2004 8:29:21 AM PST by putupon (Jorge only knows how to spell "Right" in Arabic)
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To: jagrmeister
I haven't changed my argument. The debate was about whether PresReagan cut federal spending and the answer is, yes he did cut federal spending. PresReagan cut federal spending by lowering discretionary spending. Specifically, non-military discretionary spending. Both charts and both articles specifically talk about Reagan reducing government spending. Period. You're engaging in sophistry. In both charts, the minuses indicate reductions in spending.

Further, here's what it says in the link you provided to RushLimbaugh.com.

"RNC Chairman Ed Gillespie and a number of Republicans insist they're still the party of Ronald Reagan and smaller government. Well, there's no better way to test that claim than this direct comparison. Example: In Reagan's first three years, spending on energy went down 42.5%; in the first three years of the Bush administration, spending on energy went up 19%. Reagan sent real discretionary spending on "Education, Training, Employment and Social Services" down 32.6%; Bush sent it up 26.8%. On health (before the clamor for national nanny care) Reagan, down 15.6%; Bush up 36.8%. General government went up 4.2% in Reagan's first three years; under Bush, it went up 29.1%. You can say you're Reaganesque all you want; the numbers disagree.

44 posted on 01/04/2004 10:01:02 AM PST by Reagan Man (The few, the proud, the conservatives.)
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To: Jorge
>>>... Reagan had to agree to spending increases in order to get the Dems to pass his programs, including tax cuts.

You're wrong. That was not true in Reagan's first three years in office, which is what this debate is all about. There are mandatory expenditures and discretionary expenditures. Mandatory expenditures can't be touched without Congress changing statutory law through newly enacted legislation. When you take Reagan's defense increases off the table, what's left are all non-mandatory spending on individual departments.

The CATO analysis from August 2003, specifcally indicates PresReagan reduced non-military discretionary spending by 13.5% in his first three years in office. PresBush has increased that same discretionary spending by 20.8%.

45 posted on 01/04/2004 10:44:32 AM PST by Reagan Man (The few, the proud, the conservatives.)
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To: Reagan Man
Yes, you did change your argument. You first claimed discretionary spending was down in Reagan's first 3 years- in fact it increased from 5-6%, depending on whose chart you look at. It's irrelevant that he made some cuts here or there, as Bush has done the same, because in aggregate discretionary spending increased.
46 posted on 01/04/2004 2:51:22 PM PST by jagrmeister (I'm not a conservative. I don't seek to conserve, I seek to reform.)
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To: jagrmeister
You said and I quote:
"Cutting spending is a political impossibility. Reagan could not do it".

The facts speak for themselves. Reagan cut federal spending and there is nothing irrelevent about that. You've been proven wrong. End of discussion.

47 posted on 01/04/2004 3:44:35 PM PST by Reagan Man (The few, the proud, the conservatives.)
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To: Reagan Man
LOL. Discretionary spending went up under Reagan. That's a fact. Are you that dense?
48 posted on 01/04/2004 4:02:29 PM PST by jagrmeister (I'm not a conservative. I don't seek to conserve, I seek to reform.)
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To: jagrmeister
>>>Are you that dense?

I'm not dense at all, but its quite obvious reading comprehension isn't one of your strong suits. As a homework assignment, I want to to go back and reread what I said in RE:#44, first paragraph, sentence 3 & 4. Then proceed to RE:#45 and read the final paragraph. Take you time and concentrate. It's self-explanatory.

49 posted on 01/04/2004 4:36:41 PM PST by Reagan Man (The few, the proud, the conservatives.)
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To: pageonetoo
Without a doubt, attitude plays a lot in your education, but I have a challenge for you. Without looking them up, please quote for me, the first paragraph of Lincoln's Gettysburg address (and tell me in what state it was given), type the whole Preamble to the Constitution, and The first paragraph of the Declaration of Indepence. If you cannot do it without cheating, please so state, in reply! My next challenge would be for you to tell me about George Washington Carver, and his impact on society, then name the 23rd President, and Vice President. Then tell me the 49th and 50th states added, without looking them up, in order!

Alright, here we go.

Gettysburg Address, given at the site of the Battle of Gettysburg, Pennsylvania: "Four score and seven years ago, our forefathers brought forth a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal."

Preamble to the Constitution: "We the people, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty for ourselves and our posterity, establish this Constitution for the United States of America."

Declaration of Independence: "When in the course of human events, it becomes necessary for one people to dissolve the political bands which have connected them to another and to assume the seperate and equal station to which the laws of nature and God entitle them, a decent respect for the opinions of Man requires that they should declare their causes of separation." -- I'm pretty sure I botched this one.

I can't tell you a thing about George Washington Carver, since my AP American History teacher had to skimp on the social history (I could only take the course in the second semester of that year, meaning we had less than the full term to prepare for the exam).

The 23rd President was Harrison (and I don't mean William Henry), though I don't know his VP. As for the states, Alaska was the 49th, Hawaii the 50th.

Again, from first-hand experience, I find that public education suffers most from a lack of willingness on the part of a good amount of students to learn--excessive apathy, the same reason many don't vote. Some of my teachers were terrible, but they were gone the next year, so that said something to me.
50 posted on 01/04/2004 6:48:25 PM PST by Terpfen
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To: Reagan Man
Great post as always, Reagan Man. Looks like LBJ Jr. doesn't have the heart to REALLY cut gov't spending.

Domestically, Bush has been a disaster.

51 posted on 01/04/2004 6:54:13 PM PST by Extremely Extreme Extremist (EEE)
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To: Biblebelter
"When is government going to get productive and efficient and start laying off workers?"

#1) For the government to get productive it would have to produce something besides red tape. That's not what government does, however.

#2) For the government to get efficient it would need incentive, which is non-existent since government, by and large, doesn't have to worry about customer satisfaction or going out of business.

52 posted on 01/04/2004 7:03:28 PM PST by Sofa King (-I am Sofa King- tired of liberal BS! http://www.angelfire.com/art2/sofaking/index.html)
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To: Reagan Man
Here's your homework, go to your local community college and take a class on Philosophy of Logic 101.
53 posted on 01/04/2004 10:01:25 PM PST by jagrmeister (I'm not a conservative. I don't seek to conserve, I seek to reform.)
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To: jagrmeister
Wow. That's it?! LOL You throw around a bunch of incoherent nonsense, then you run for cover. What a cop-out. Its time to face the facts. You lost the argument. I didn't realize "pragmatists" like yourself --- aka. centrist moderates --- could be so gutless and obtuse.
54 posted on 01/04/2004 10:39:08 PM PST by Reagan Man (The few, the proud, the conservatives.)
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To: Reagan Man
Yeah, I really "lost" the argument.

Here's what you said: ""He lowered discretionary spending in his first three years in office."

Your OWN chart showed that Reagan increased discretionary spending 4.2% over three years.

I have debated this to my satisfaction. Have a nice day.
55 posted on 01/05/2004 1:22:23 AM PST by jagrmeister (I'm not a conservative. I don't seek to conserve, I seek to reform.)
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To: Reagan Man
And in related news...pigs started flying yesterday.
56 posted on 01/05/2004 1:30:41 AM PST by Fledermaus (STOP MAD DEMOCRAT DISEASE NOW! INSPECT ALL SCHOOLS!)
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To: byteback
ROFL...I'll know government waste, fraud, abuse and flat out BS is over when Lesky is out of a job!
57 posted on 01/05/2004 1:31:37 AM PST by Fledermaus (STOP MAD DEMOCRAT DISEASE NOW! INSPECT ALL SCHOOLS!)
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To: RJCogburn
Everyone with a brain knows potatoe and tomatoe were spelled that way for centuries. I guess now a political candidate will be considered "stupid" if they now spell "ask" as "ax".

Besides, Quayle never bothered to spell it, he just questioned what was on the flash card the teacher gave him that had the "e" on the word. He even said, "hmm, according to the card you missed a letter". It was a set-up and the liberal media ran with it like they always do.

Fortunately, they don't have a majority in the market any longer.
58 posted on 01/05/2004 1:35:22 AM PST by Fledermaus (STOP MAD DEMOCRAT DISEASE NOW! INSPECT ALL SCHOOLS!)
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To: Beelzebubba
How much of a surplus would we have if he eliminated all unconstitutional spending?

Hopefully none because our taxes would be only enough to cover the constitutionally allowed spending.

59 posted on 01/05/2004 1:36:26 AM PST by Lancey Howard
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To: jagrmeister
Cutting spending is a political impossibility.

Not if we get people off their duffs to vote and counter the LIES the bureaucrats spread.

WAKE UP PEOPLE! YOU HAVE THE POWER TO STOP THIS MESS!

60 posted on 01/05/2004 1:36:53 AM PST by Fledermaus (STOP MAD DEMOCRAT DISEASE NOW! INSPECT ALL SCHOOLS!)
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