The President's Budget Fiscal Year 2008: Impact on the States

Feb. 5, 2007

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, while another $100 billion would be added for more war spending. State-level tables and other information are now available. State-level factsheets are also available.

For your state-level factsheet, click here.
The administration released a $2.9 trillion budget request for fiscal year 2008 on Monday February 5. Along with the budget request, it submitted supplementary materials for additional war spending.

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 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 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
Head Start
Low-Income Energy Assistance Program (LIHEAP)
Special Education
Child Care & Development Block Grant

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.

Community Development Block Grant
(obligations in thousands)
State or territory FY2008 Proposed Cut (compared to FY06) % Cut (compared to FY06)
Total (U.S.) 4,032,091 1,413,511 35.1%
Alabama 37,198 16,368 30.6%
Alaska 3,555 1,454 29.0%
Arizona 40,787 17,547 30.1%
Arkansas 20,733 8,433 28.9%
California 352,475 153,806 30.4%
Colorado 28,862 13,462 31.8%
Connecticut 31,463 9,894 23.9%
Delaware 5,433 2,229 29.1%
District of Columbia 14,011 8,473 37.7%
Florida 121,452 61,277 33.5%
Georgia 62,208 25,504 29.1%
Hawaii 11,480 4,722 29.1%
Idaho 9,169 2,618 22.2%
Illinois 132,258 61,947 31.9%
Indiana 52,961 32,358 37.9%
Iowa 31,057 12,627 28.9%
Kansas 21,050 5,935 22.0%
Kentucky 34,381 14,878 30.2%
Louisiana 46,869 14,522 23.7%
Maine 14,912 6,224 29.4%
Maryland 41,943 18,280 30.4%
Massachusetts 82,777 44,810 35.1%
Michigan 99,394 46,993 32.1%
Minnesota 43,794 21,504 32.9%
Mississippi 26,527 11,066 29.4%
Missouri 50,854 20,812 29.0%
Montana 6,936 2,805 28.8%
Nebraska 14,634 7,836 34.9%
Nevada 15,261 6,183 28.8%
New Hampshire 9,965 4,039 28.8%
New Jersey 76,148 38,747 33.7%
New Mexico 15,863 6,489 29.0%
New York 263,636 131,497 33.3%
North Carolina 53,695 24,128 31.0%
North Dakota 4,792 1,947 28.9%
Ohio 122,241 51,031 29.5%
Oklahoma 22,827 9,902 30.3%
Oregon 27,637 12,868 31.8%
Pennsylvania 167,473 67,187 28.6%
Rhode Island 12,935 6,195 32.4%
South Carolina 29,303 8,450 22.4%
South Dakota 6,025 2,438 28.8%
Tennessee 37,750 15,433 29.0%
Texas 192,469 87,062 31.1%
Utah 15,528 6,036 28.0%
Vermont 6,293 2,534 28.7%
Virginia 46,208 22,059 32.3%
Washington 46,357 18,713 28.8%
West Virginia 18,938 7,604 28.7%
Wisconsin 50,386 19,116 27.5%
Wyoming 3,172 1,293 29.0%
American Samoa 1,028 48 4.4%
Guam 2,779 129 4.4%
Northern Mariana Islands 1,243 57 4.4%
Puerto Rico 83,505 35,129 29.6%
Virgin Islands 1,950 90 4.4%
Undistributed 200,000 -177,281 -780.3%
Economic Development Initiative Rescission -356,000

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.

Head Start
(obligations in thousands of dollars)
State or Territory FY2008 Proposed Cut (compared to FY06)
Total 6,788,571 436,902
Alabama 105,468 5,768
Alaska 12,337 675
Arizona 102,373 5,599
Arkansas 63,824 3,491
California 822,591 44,990
Colorado 67,594 3,697
Connecticut 51,333 2,808
Delaware 13,092 716
District of Columbia 24,834 1,358
Florida 260,267 14,235
Georgia 166,672 9,116
Hawaii 22,637 1,238
Idaho 22,565 1,234
Illinois 267,812 14,647
Indiana 95,151 5,204
Iowa 50,988 2,789
Kansas 50,372 2,755
Kentucky 106,670 5,834
Louisiana 144,312 7,893
Maine 27,310 1,494
Maryland 77,184 4,221
Massachusetts 107,169 5,861
Michigan 231,993 12,688
Minnesota 71,219 3,895
Mississippi 159,927 8,747
Missouri 117,695 6,437
Montana 20,721 1,133
Nebraska 35,665 1,951
Nevada 24,015 1,313
New Hampshire 13,240 724
New Jersey 127,607 6,979
New Mexico 51,730 2,829
New York 428,470 23,434
North Carolina 139,735 7,643
North Dakota 16,988 929
Ohio 244,205 13,356
Oklahoma 80,166 4,385
Oregon 58,821 3,217
Pennsylvania 225,685 12,343
Rhode Island 21,775 1,191
South Carolina 81,603 4,463
South Dakota 18,620 1,018
Tennessee 118,039 6,456
Texas 473,492 25,897
Utah 37,353 2,043
Vermont 13,412 734
Virginia 98,018 5,361
Washington 99,268 5,429
West Virginia 50,091 2,740
Wisconsin 89,887 4,916
Wyoming 12,236 669
American Samoa 2,127 116
Guam 2,140 117
Northern Mariana Islands 1,646 90
Puerto Rico 246,599 13,487
Virgin Islands 7,910 433
Indian Tribes 185,394 10,140
Palau 1,319 72
Migrant Program 283,371 15,498
Technical Assistance 104,815 68,215
Research, Development, & Education 19,800 1,070
Program Support 38,590 1,701

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.

Low-Income Energy Assistance Program
(obligations in thousands of dollars)
State or Territory FY2008 Proposed Cut (compared to FY06) % Cut (compared to FY06)
Total 1,500,000 1,115,349 42.6%
Alabama 12,574 20,258 61.7%
Alaska 5,594 3,622 39.3%
Arizona 5,617 9,142 61.9%
Arkansas 9,650 14,360 59.8%
California 67,269 93,076 58.0%
Colorado 23,631 9,807 29.3%
Connecticut 30,860 19,564 38.8%
Delaware 4,096 6,600 61.7%
District of Columbia 4,793 3,488 42.1%
Florida 20,006 32,232 61.7%
Georgia 15,822 25,490 61.7%
Hawaii 1,593 1,102 40.9%
Idaho 8,780 5,641 39.1%
Illinois 85,415 68,527 44.5%
Indiana 38,667 18,265 32.1%
Iowa 27,409 11,364 29.3%
Kansas 12,576 15,675 55.5%
Kentucky 20,126 26,646 57.0%
Louisiana 12,929 20,832 61.7%
Maine 19,262 7,986 29.3%
Maryland 23,629 38,069 61.7%
Massachusetts 61,706 25,585 29.3%
Michigan 80,351 33,585 29.5%
Minnesota 58,424 24,225 29.3%
Mississippi 10,822 17,436 61.7%
Missouri 34,118 28,679 45.7%
Montana 8,931 6,071 40.5%
Nebraska 13,546 8,710 39.1%
Nevada 2,873 4,628 61.7%
New Hampshire 11,684 7,508 39.1%
New Jersey 57,164 24,412 29.9%
New Mexico 7,058 4,576 39.3%
New York 187,016 77,230 29.2%
North Carolina 27,390 44,129 61.7%
North Dakota 9,617 5,463 36.2%
Ohio 75,563 53,383 41.4%
Oklahoma 10,552 17,110 61.9%
Oregon 17,809 7,566 29.8%
Pennsylvania 100,509 41,674 29.3%
Rhode Island 10,132 6,511 39.1%
South Carolina 10,044 16,183 61.7%
South Dakota 7,851 5,045 39.1%
Tennessee 20,387 28,512 58.3%
Texas 33,292 53,637 61.7%
Utah 10,734 6,991 39.4%
Vermont 8,758 5,627 39.1%
Virginia 28,783 46,373 61.7%
Washington 28,925 12,087 29.5%
West Virginia 13,319 11,802 47.0%
Wisconsin 52,590 21,806 29.3%
Wyoming 4,191 2,816 40.2%
American Samoa 33 25 43.1%
Guam 72 55 43.1%
Northern Mariana Islands 25 19 43.6%
Puerto Rico 1,795 1,359 43.1%
Virgin Islands 68 52 43.4%
Indian Tribes 16,048 11,516 41.8%
Discretionary Funds 27,225 1,202 4.2%
Technical Assistance 297 13 4.2%

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.

Special Education
(obligations in thousands)
State or Territory FY2008 Proposed Cut ( compared to FY06 )
Total 10,491,941 669,834
Alabama 166,195 10,608
Alaska 32,157 2,070
Arizona 160,852 10,354
Arkansas 102,488 6,567
California 1,120,726 72,069
Colorado 136,232 8,768
Connecticut 121,552 7,719
Delaware 29,471 1,898
District of Columbia 14,818 954
Florida 575,467 36,737
Georgia 282,776 18,201
Hawaii 36,471 2,343
Idaho 49,584 3,189
Illinois 462,872 29,511
Indiana 233,778 14,855
Iowa 111,615 7,082
Kansas 97,661 6,236
Kentucky 144,269 9,194
Louisiana 172,920 11,130
Maine 50,027 3,174
Maryland 183,007 11,662
Massachusetts 259,526 16,467
Michigan 365,972 23,486
Minnesota 173,502 11,053
Mississippi 108,724 6,979
Missouri 207,671 13,182
Montana 33,574 2,158
Nebraska 68,267 4,332
Nevada 60,492 3,893
New Hampshire 43,387 2,754
New Jersey 330,463 20,967
New Mexico 83,315 5,296
New York 693,935 44,128
North Carolina 285,889 18,317
North Dakota 23,930 1,541
Ohio 399,918 25,635
Oklahoma 135,170 8,637
Oregon 117,857 7,532
Pennsylvania 390,290 24,999
Rhode Island 39,980 2,537
South Carolina 160,107 10,189
South Dakota 28,507 1,835
Tennessee 213,139 13,601
Texas 880,215 56,636
Utah 97,444 6,261
Vermont 23,074 1,485
Virginia 257,403 16,439
Washington 202,211 12,985
West Virginia 69,433 4,405
Wisconsin 190,281 12,124
Wyoming 24,206 1,558
American Samoa 6,110 347
Guam 13,547 770
Northern Mariana Islands 4,643 263
Puerto Rico 98,325 6,329
Freely Associated States 6,579 360
Virgin Islands 8,611 489
Indian Tribes 86,306 4,720
Technical Assistance 15,000 820

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.

Child Care and Development Block Grant
( obligations in thousands )
State or Territory FY2008 Proposed Cut (compared to FY06) % Cut (compared to FY06)
Total 2,062,081 111,287 5.1%
Alabama 40,166 2,610 6.1%
Alaska 4,037 214 5.0%
Arizona 50,263 2,437 4.6%
Arkansas 25,039 992 3.8%
California 230,818 10,689 4.4%
Colorado 23,885 1,148 4.6%
Connecticut 14,330 756 5.0%
Delaware 4,408 366 7.7%
District of Columbia 3,057 208 6.4%
Florida 114,080 7,028 5.8%
Georgia 77,908 1,917 2.4%
Hawaii 7,737 805 9.4%
Idaho 11,574 645 5.3%
Illinois 76,663 3,442 4.3%
Indiana 41,684 1,983 4.5%
Iowa 17,763 1,450 7.5%
Kansas 18,656 1,195 6.0%
Kentucky 35,306 2,069 5.5%
Louisiana 45,956 3,605 7.3%
Maine 6,705 522 7.2%
Maryland 25,531 2,172 7.8%
Massachusetts 25,589 1,422 5.3%
Michigan 58,069 3,853 6.2%
Minnesota 25,584 1,624 6.0%
Mississippi 31,879 2,163 6.4%
Missouri 38,680 2,323 5.7%
Montana 5,650 361 6.0%
Nebraska 11,506 1,029 8.2%
Nevada 14,087 182 1.3%
New Hampshire 4,714 266 5.3%
New Jersey 36,730 2,151 5.5%
New Mexico 18,306 1,226 6.3%
New York 107,664 5,678 5.0%
North Carolina 66,549 2,044 3.0%
North Dakota 3,645 397 9.8%
Ohio 67,281 4,086 5.7%
Oklahoma 31,057 1,882 5.7%
Oregon 22,465 1,075 4.6%
Pennsylvania 62,629 3,548 5.4%
Rhode Island 5,497 630 10.3%
South Carolina 36,946 2,126 5.4%
South Dakota 5,416 621 10.3%
Tennessee 44,427 3,136 6.6%
Texas 216,109 6,352 2.9%
Utah 22,349 1,227 5.2%
Vermont 2,898 209 6.7%
Virginia 38,903 3,098 7.4%
Washington 33,070 1,732 5.0%
West Virginia 13,550 876 6.1%
Wisconsin 29,631 1,771 5.6%
Wyoming 2,694 262 8.9%
American Samoa 2,679 149 5.3%
Guam 4,061 225 5.3%
Northern Mariana Islands 1,722 71 4.0%
Puerto Rico 35,432 4,904 12.2%
Virgin Islands 1,847 121 6.2%
Indian Tribes 41,242 2,256 5.2%
Technical Assistance 5,155 -317 -6.6%
Research Set-Aside 9,821 221 2.2%
Child Care Aware 982 54 5.2%