Earlier this week, President George W. Bush submitted a $2.9 trillion budget to Congress for the 2008 fiscal year. The budget seeks a 10% increase in the Pentagon's annual budget, an increase that would come at the expense of a variety of government programs that provide assistance to low-income residents. Funding for those programs would be reduced as part of $13 billion in cuts to non-security discretionary. The President also made a separate $103 billion supplemental budget request for this year. The majority of that request is for additional military spending, with $78.1 billion going to fund ongoing operations in Iraq and $21.5 for Afghanistan and other activities pertaining to the "war on terror." As part of his proposed budget, Bush is planning to make permanent the tax cuts that have primarily benefited the wealthy, and in 2008 the richest 20% of taxpayers will receive two-thirds of the tax cuts or $143 billion, with the top 5% receiving 44% of the tax cuts ($92 billion). The tax cuts received by the wealthiest 5% are seven times the amount being cut from domestic services.
The Bush administration is proposing wide-ranging cuts in domestic programs to pay for military operations and tax cuts for the wealthiest Americans. The budget proposes a 35% cut in Community Development Block Grants (CDBG) compared to 2006, cutting a little over $1.4 billion. The Low-Income Energy Assistance Program (LIHEAP) would be cut by 40% or $1.1 billion. The Child Care & Development Block Grant is also slated to be cut by a little over 5%. Funding for Community Oriented Policing Services would be eliminated, while environmental protections would also be reduced through a 20% cut in the Clean Water State Revolving Fund. Aside from the $13 billion in cuts to non-discretionary spending on programs such as those mentioned above, the Bush administration will likely cut billions more by restricting eligibility for the government's Medicare and Medicaid programs.
These cuts will be felt in Michigan, where the state's low-income residents will see millions of dollars in cuts to programs according to an analysis prepared by the National Priorities Project. Money from the Low-Income Energy Assistance Program going to Michigan will be cut by $33.6 million. Less money will be available for services for children, including Head Start ($12.7 million cut), Child Care and Development Block Grants ($3.9 million cut), and Special Education ($23.5 million cut). $282,000 in funding for Community Oriented Policing Services will be removed as part of the administration's elimination of the program. There will also be less federal money for environmental protections, with $8.1 million being eliminated from the Clean Water State Revolving Fund. The National Priorities Project estimates that in addition to these cuts, taxpayers in Michigan will see an increase in the total amount that they have paid for the Iraq War, with Michigan's share reaching $12.1 billion.
