The President's Budget: Impact on the States

More budget cuts

The budget request released by the administration proposes cuts in non-security related discretionary spending. Compared to fiscal year 2006, $13 billion would be cut from these programs, or 3 percent, once inflation is taken into account.

More war spending

At the same time, the administration is requesting another $100 billion in war related spending. If Congress passes the war spending request as proposed, another $78 billion would be added to the total cost of the Iraq War. This would bring the Iraq War's cost in fiscal year 2007 to more than $140 billion, and nearly a half trillion ($456 billion) for the entire length of the war. Click here [2]for taxpayer breakdowns by state.

Total 'national defense' spending would reach $647.2 billion in fiscal year 2008. In 2000, the national defense budget was less than half that amount ($304 billion). National defense would comprise 59% of total discretionary spending. Click here [3]to view a pie chart of proposed discretionary spending.

More tax cuts for the wealthy

Even while talking about balanced budgets, the administration proposes to make permanent the very costly tax cuts which primarily benefited the wealthy. In 2008, the richest 20 percent of Americans will receive two-thirds of the tax cuts, or $143 billion. The top 5 percent will receive 44 percent of the tax cuts, or $92 billion, according to the Tax Policy Center. In other words, seven times the amount of money slated for cuts to domestic services will go toward the wealthiest Americans.

State-level tables

Because Congress only just made appropriations for most of the fiscal year 2007 budget, and accurate information is limited, the tables below compare the proposed figures in the fiscal year 2008 budget with fiscal year 2006. The consumer price index (urban) as published in U.S. Budget of the Government, Analytical Perspectives, FY2008, Table 12-1, has been used to adjust for inflation so that the dollar amounts are compared in 2008 dollars. The information for the state-level breakdowns also comes from Analytical Perspectives.

Community Development Block Grant [4]
Head Start [5]
Low-Income Energy Assistance Program (LIHEAP) [6]
Special Education [7]
Child Care & Development Block Grant [8]

Community development: Included in the administration's proposal is a 35 percent cut in Community Development Block Grants (CDBG) compared to fiscal year 2006. The following table shows the cuts for each state.

Head Start: Included in the administration's proposal is a 6 percent cut in Head Start compared to fiscal year 2006. The following table shows the cuts for each state.

Low-income Energy Assistance Program (LIHEAP): Included in the administration's proposal is a more than a 40 percent cut in the Low-income Energy Assistance Program compared to fiscal year 2006. The following table shows the cuts for each state.

Special Education: Included in the administration's proposal is a 6 percent cut in Special Education funding compared to fiscal year 2006. The following table shows the cuts for each state.

Child Care & Development Block Grant: Included in the administration's proposal is a 5 percent cut in Child Care Development Block Grant program compared to fiscal year 2006. (The program is being "level-funded" which means after taking inflation into account, it is being cut.) The following table shows the cuts for each state.