President Obama's fiscal year 2012 budget has been released. The proposal is a mix of cuts and spending. According to the Office of Management and Budget, the proposal would cut the deficit by $1.1 trillion over the next decade.
Some examples of reductions include a $300 million cut to CDBG program, as well as cuts to housing, education and home heating assistance. Also proposed is a five year freeze on all discretionary spending outside of security, for a savings of $400 billion and a 2-year freeze on federal civilian worker salaries, saving $30 billion. Even the Department of Defense does not go unscathed with $78 billion in reductions over the next five years as well.
Investing in areas that he beleives are essential to economic growth, such as transportation and broadband infrastructure, the President calls for a six-year $556 billion transportation funding bill, with a immediate influx of $50 billion to repair, rebuild and modernize transportation infrastructure. Also proposed is establishment of a National Infrastructure Bank and reaching the goal of having 98 percent of Americans connected to broadband.
The President's proposal was immediately lambasted by Republicans in Congress and is but the first step in what will no doubt be a long and difficult discussion about policy priorities for our nation's future. Look for further updates as this debate begins.
Arnold Weinfeld is Director of Strategic Initiatives and Federal Affairs for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.
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