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