February 22, 2004
America's fiscal noose draws tighter

BY: Bart Jansen staff writer

President Bush's budget has united Congress - in concern.

The $2.4 trillion spending plan anticipates $521 billion in deficit spending. More than one-fifth of the budget isn't paid for. Think of it. How nervous would you be if you could only afford to pay four out of every five bills that arrive in the mail?

Well, it prompted House Republicans to hold a two-hour meeting with mandatory attendance to reinforce how much they will have to rein in spending this year.

"Everything is on the table," House Speaker Dennis Hastert, R-Ill., said after the meeting earlier this month, meaning that even defense and homeland security funding proposals could be trimmed.

Rep. Bill Young, R-Fla., chairman of the Appropriations Committee, warned the budget will be carefully scrutinized.

"While I am dedicated to developing fiscally conservative budgets, no one should expect significant deficit reduction as a result of austere non-defense discretionary spending limits. The numbers simply do not add up," he said. "With a 1 percent growth or freeze in non-defense programs, everyone should have realistic expectations and be prepared to make sacrifices."

THESE ARE BUSH'S friends. House Republicans are the president's most reliable allies, who approve his priorities, from tax cuts to energy policy, and ignore unpalatable bills that emerge from the Senate.

Democrats have already pounced on spending levels for education and veterans. They charge that Bush shortchanges his own reform legislation called No Child Left Behind by $9.4 billion from what was authorized in 2001. Pell Grants to help with college tuition got an $856 million boost, but the maximum award remains flat at $4,050 and the average award of $2,399 will be smaller than this year despite rising college costs.

Rep. Tom Allen, D-Maine, complained that the budget boosts funding for special education by only $900 million, compared with the cost of military operations in Iraq and Afghanistan running $1 billion a week.

"In tandem with slashing federal revenues, the president's proposal slashes investments in our children's future," he said.

Sen. Susan Collins, R-Maine, joined Sen. Edward Kennedy, D-Mass., in criticizing a change in the funding formula for Title I, an education program for the poor. Maine stands to lose $2.6 million, despite a $1 billion increase in Title I overall.

"I question the wisdom of any decisions which would lead to deep cuts in Title I funding in states such as Maine that rely heavily on these dollars," Collins said.

She also criticized a $1 billion cut in grants for emergency first-responders, which would remove nearly half the funding. Maine got $17 million this year under the program, so the loss to the state could be significant.

"Communities use these funds for first-responder preparation activities such as emergency planning, risk assessments, mutual aid agreements, equipment, training and exercises," Collins said.

Democrats focused on proposals for veterans, an important constituency in Maine, where the nearly 155,000 vets rank the state fifth in the country.

Senate leaders cited a $250 user fee for health services that could drive veterans away from health care, and a $50 million cut to prosthetic research at a time when soldiers are returning injured from Iraq and Afghanistan.

More broadly, Democrats complained that the budget failed to reduce the months-long wait for vets to receive health care or correct a policy that cuts a veteran's pension for every dollar of disability compensation.

"Like last year, it looks like we have a lot of work to do to make the president's budget proposal even adequate to provide the care and respect our veterans need," said Rep. Mike Michaud, D-Maine, a member of the Veterans' Affairs Committee.

THE DISPUTES PROMISE a divisive year over the only bills that Congress must approve in one form or another.

Even though Republicans control Congress and the White House, federal spending bills for nearly everything other than defense were approved in late January - nearly four months after the fiscal year began Oct. 1.

This year could be tougher. Because the deficit is ballooning to record levels, the choices will be harder. The election will make the disputes more partisan. Costs could rise even higher.

Changing the Alternative Minimum Tax, which is aimed at the wealthy but will start hitting the middle class next year, would cost billions. The new Medicare drug benefit is projected to cost $534 billion over the next decade, rather than the $400 billion that Congress budgeted last year. And Social Security faces looming insolvency without a fix.

"This year's budget is a validation of my deep concerns that I expressed during the tax cut debate last year that we cannot countenance deficits in perpetuity," Sen. Olympia Snowe, R-Maine, said.

"At a time when the baby boomers are close to retiring, we need to ensure that we are prepared to address such pressing issues as strengthening Social Security and Medicare."

- Staff Writer Bart Jansen can be reached at 202-488-1119 or at bjansen@pressherald.com

 

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