The Bush 2009 budget proposal

02/05/08 Robert Lorei
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President Bush issued a proposed $3.1 trillion budget yesterday that expands funding for the military while cutting projected spending for Medicare and Medicaid.

After years of running budget deficits, Bush's 2009 budget outlines a path to a surplus by 2012, although that assumes higher taxes on the upper middle class and does not include funding for the wars in Iraq and Afghanistan beyond 2009.

Bush's proposal cuts funding to Medicaid, the joint state-federal program that provides health care to the poor. The president would lower Medicaid spending by $1.8 billion in 2009 and would shift some administrative costs to the states.

Our guest was Anita Dancs, an economist with the National Priorities Project.

Dancs said today: "The administration proposes to further increase the military budget by 5 percent, not including war spending (after adjusting for inflation)."

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